Redlands City Council
July 2, 2024

Table 3-3: Existing Water Debt Service

A B C D E F G
Line Existing Debt Service FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Safe Drinking Water (Tate)
2 Principal $355,782 $364,156 $926,522 $0 $0 $0
3 Interest $27,937 $19,563 $32,773 $0 $0 $0
4 Total - Safe Drinking Water
(Tate) $383,719 $383,719 $959,295 $0 $0 $0
5 6 Hinkley SRF Loan
7 Principal $499,951 $512,536 $525,439 $538,666 $552,226 $566,127 8 Interest $153,165 $146,912 $134,169 $121,105 $107,713 $93,983 9 Total - Hinkley SRF Loan $653,116 $659,448 $659,607 $659,771 $659,938 $660,110 10 11 Total - Existing Debt Service $1,036,834 $1,043,167 $1,618,902 $659,771 $659,938 $660,110

3.4. Capital Projects
City staff provided the capital improvement plan (CIP) for the water utility for the study period.

Redlands Regular Meeting of 07-02-24
591 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 3-4 shows the CIP costs for the study period, escalated by the capital expense inflation factor (Table 2-3, Line 7) to determine CIP costs in future years’ dollars. Replacement projects are funded through a combination of water rate revenues, cash reserves, and bond proceeds, and expansion projects are funded entirely through Development Impact Fee (DIF) revenues.

Redlands Regular Meeting of 07-02-24
592 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 2

Table 3-4: Inflated Water Capital Projects

A B C D E F G
Line Capital Projects (Inflated) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Replacement
2 Annual Citywide Water Pipeline Replacement $4,635,000 $4,774,050 $4,917,272 $5,064,790 $5,216,733 $5,373,235 3 Highline Replacement Project - Final Phase $206,000 $3,182,700 $0 $0 $0 $0 4 Citywide Pavement Repair for Water $309,000 $318,270 $327,818 $0 $0 $0 5 Water System SCADA Design & Integration (14 sites) $0 $0 $0 $0 $0 $0 6 Water System SCADA Design & Integration (18 sites fy 21/22; 13 sites fy 22/23) $0 $0 $0 $0 $0 $0
7 Annual Citywide Potable Water Meter Replacements $0 $0 $0 $0 $0 $0 8 Water Infrastructure Seismic Assessment $0 $0 $0 $0 $0 $0 9 HAWC Booster Pump Rehab $515,000 $0 $0 $0 $0 $0
10 1750 Blend Manifold Replacement $0 $0 $0 $0 $0 $0 11 Booster #2310 Replacement $0 $0 $0 $0 $0 $0
12 Booster #2311 Replacement $0 $0 $0 $0 $0 $0
13 Booster Stations & MCC Upgrade Master Plan - Tesco $0 $318,270 $546,364 $844,132 $869,456 $895,539 14 Booster Pump Replacement (Booster Pump Repl Order TBD) $0 $530,450 $546,364 $337,653 $347,782 $358,216 15 Sunset Reservoir Rehab / Repl to meet current seismic standards $0 $6,365,400 $0 $0 $0 $0 16 Margarita, Sand Cyn., Smiley, 5th Ave. Tank Mixers Installation $0 $0 $0 $0 $0 $0 17 Texas Grove Reservoir stair installation & mixer $0 $0 $0 $0 $0 $0 18 AWIA Reservoir Risk Mitigation (R3 Thru R7) $0 $0 $0 $1,042,221 $0 $0 19 AWIA Reservoir Risk Mitigation (R8 Thru R13) $0 $0 $0 $0 $585,433 $0 20 Agate Reservoir curtin anchor replacement $0 $0 $0 $0 $98,538 $298,513 21 Hinckley WTP Transmission Line Repl (Cost shared with B.V.) $2,060,000 $0 $0 $0 $0 $0 22 Hinckley/Tate Roof Repair $0 $0 $0 $0 $0 $0
23 Hinckley WTP Safety Fencing $0 $0 $0 $0 $0 $0
24 Hinckley Sludge Press $0 $0 $0 $0 $0 $0
25 Hinckley Generator Replacement $0 $0 $0 $0 $0 $0 26 Hinckley WTP Paving $0 $0 $0 $0 $0 $0
27 AWIA HWTP Resilience Improvements (R1) $0 $0 $0 $272,373 $0 $0 28 Tate WTP Transmission Line Assessment $4,120,000 $0 $0 $0 $0 $0 29 Tate ACH Tank Replacement $0 $0 $0 $0 $0 $0
30 Tate WTP Clarifier Recoating & Cover Installation $0 $0 $0 $0 $0 $0 31 Tate Influent Static Mixer $0 $0 $163,909 $0 $0 $0 32 Tate PLC Replacement (End of Life Hardware) $0 $0 $0 $0 $0 $0 Redlands Regular Meeting of 07-02-24
593 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 3

A B C D E F G
Line Capital Projects (Inflated) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 33 PRV Station Replacement (Redlands Blvd. & New Jersey) $257,500 $0 $0 $0 $0 $0 34 AWIA TWTP Resilience Improvements (R2) $257,500 $0 $0 $160,948 $0 $0 35 Tate Disinfection System Upgrade Cl2 Gas to NaOCl $257,500 $0 $163,909 $1,688,263 $0 $0 36 Maint. - Airport 1 $0 $0 $0 $168,826 $0 $0
37 Maint. - S.B. MUNI $0 $0 $0 $258,867 $0 $0
38 Maint. - E.L. 3 $0 $0 $0 $47,271 $0 $0
39 Maint. - E.L. 6 $0 $0 $0 $92,292 $0 $0
40 Maint. - N. Orange 1 $0 $0 $0 $174,454 $0 $0
41 Maint. - Madeira $0 $0 $0 $0 $165,776 $0
42 Maint. - Mentone 2 $0 $0 $0 $0 $192,439 $0
43 Maint. - Well 38 $0 $0 $0 $0 $173,891 $0
44 Maint. - Well 39 $0 $0 $0 $0 $185,484 $0
45 Maint. - Airport 2 $137,773 $0 $0 $0 $0 $191,048 46 Maint. - Mill Creek 2A $69,216 $0 $0 $0 $0 $95,524 47 Maint. - Rees $116,019 $0 $0 $0 $0 $161,197
48 Maint. - Church St. $143,483 $0 $0 $0 $0 $202,989 49 Maint. - Crafton $0 $196,267 $0 $0 $0 $0
50 Maint. - Orange ST $0 $201,571 $0 $0 $0 $0
51 Maint. - N. Orange 2 $0 $212,180 $0 $0 $0 $0
52 Maint. - Well 10 $0 $0 $218,545 $0 $0 $0
53 Maint. - Well 13 $0 $0 $218,545 $0 $0 $0
54 Maint. - Mill Creek 2 $0 $0 $147,518 $0 $0 $0
55 Agate 2 Liner $0 $249,312 $0 $0 $0 $0
56 E.L. 6 Liner $0 $201,571 $0 $196,964 $0 $0
57 E.L.3 Drill New Well $103,000 $2,652,250 $0 $0 $0 $0 58 AWIA Resilience Improvements (R18) $0 $58,350 $0 $0 $0 $0 59 Wellhead Perchlorate Treatment Evaluation - Church
Street/Orange/Well #38/Well #39 $0 $0 $0 $0 $0 $0
60 Wellhead Perchlorate Treatment Evaluation - Well #10/Well #13/Agate #1/Agate #2/Crafton $0 $0 $0 $0 $0 $0
61 Entrained Air Treatment System Assessment $0 $530,450 $0 $0 $0 $0 62 Total - Replacement $13,186,991 $19,791,090 $7,250,244 $10,349,054 $7,835,533 $7,576,262 Redlands Regular Meeting of 07-02-24
594 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 3-5 shows the proposed capital financing plan for the water utility. The City plans to fully fund its water CIP for all years of the study (Line 1). The inflated project costs (Line 3) are the total project costs ( Redlands Regular Meeting of 07-02-24
595 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 3-4, Line 13). The CIP expenditures will be funded through rate revenue and reserves.

Table 3-5: Proposed Water Capital Financing Plan

A B C D E F G
Line Capital Financing Plan FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 CIP to Spend 100% 100% 100% 100% 100% 100%
2 3 Inflated Project Costs $13,186,991 $19,791,090 $7,250,244 $10,349,054 $7,835,533 $7,576,262 4 5 Bond Proceeds $0 $0 $0 $0 $0 $0
6 Balance $0 $0 $0 $0 $0 $0
7 8 Capital Financing
9 Rate Funded $13,186,991 $19,791,090 $7,250,244 $10,349,054 $7,835,533 $7,576,262 10 Bond Funded $0 $0 $0 $0 $0 $0
11 Loan Funded $0 $0 $0 $0 $0 $0
12 13 Total - Capital Financing $13,186,991 $19,791,090 $7,250,244 $10,349,054 $7,835,533 $7,576,262

3.5. Current Financial Plan – Status Quo
Table 3-6 shows the projected water financial plan without revenue adjustments (also referred to as status quo). Rate revenues and other revenues are derived from projected revenues (Table 3-1). O&M expenses are derived from projected O&M expenses (Table 3-2); existing debt service is from the annual debt service payments for outstanding debt (Table 3-3); rate funded capital projects (Line 22) are from the capital financing plan (Table 3-5, Line 9).

The net cash flow (Line 26) is calculated by subtracting O&M expenses (Line 17) and debt and capital costs (Line 24) from the total revenues (Line 6). Net operating revenue (Line 27) is equal to total revenues (Line 6) less O&M expenses (Line 17). Debt coverage (Line 29) is calculated by dividing the net operating revenue (Line 27) by the total debt service (Lines 20 and 21) and is well over the required debt coverage (Line 30).

Net cash flow is negative for all years of the rate study, which means that the water utility does not have enough revenue from rates to fund its operating expenses, debt, and capital costs. If there are no revenue adjustments for the water utility, the fund cash balance (Line 33) will be depleted by FY 2030.

Table 3-6: Projected Water Financial Plan (Status Quo)

A B C D E F G
Redlands Regular Meeting of 07-02-24
596 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Line Water Financial Plan FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Revenues
2 Rate Revenues $30,012,835 $30,311,138 $30,473,330 $30,636,390 $30,800,322 $30,965,132 3 Revenue Adjustments $0 $0 $0 $0 $0 $0
4 Investment Income $510,297 $283,902 $215,366 $187,208 $152,218 $121,950 5 Other Revenues $4,702,600 $4,680,023 $4,680,460 $4,680,899 $4,681,341 $4,681,785 6 Total - Revenues $35,225,731 $35,275,063 $35,369,156 $35,504,497 $35,633,881 $35,768,867 7 8 O&M Expenses
9 Salaries and Benefits $7,685,771 $7,993,202 $8,312,930 $8,645,447 $8,991,265 $9,350,916 10 Services - Power $2,330,125 $2,459,708 $2,596,497 $2,740,467 $2,892,419 $3,052,796 11 Services $11,941,234 $12,299,471 $12,668,455 $13,048,509 $13,439,964 $13,843,163 12 Supplies - Purchased Water $0 $0 $0 $0 $0 $0
13 Supplies - Treatment $475,500 $501,944 $529,858 $559,237 $590,245 $622,973 14 Supplies $3,179,750 $3,275,143 $3,373,397 $3,474,599 $3,578,837 $3,686,202 15 Fixed Assets $0 $0 $0 $0 $0 $0
16 Debt Service $0 $0 $0 $0 $0 $0
17 Total - O&M Expenses $25,612,380 $26,529,467 $27,481,137 $28,468,258 $29,492,730 $30,556,049 18 19 Debt and Capital
20 Existing Debt Service $1,036,834 $1,043,167 $1,618,902 $659,771 $659,938 $660,110 21 Proposed Debt Service $0 $0 $0 $0 $0 $0
22 Rate Funded Capital Projects $13,186,991 $19,791,090 $7,250,244 $10,349,054 $7,835,533 $7,576,262 23 DIF Funded Capital Projects $0 $0 $0 $0 $0 $0
24 Total - Debt and Capital $14,223,825 $20,834,256 $8,869,146 $11,008,824 $8,495,472 $8,236,372 25 26 Net Cash Flow ($4,480,474) ($11,958,659) ($851,127) ($3,842,585) ($2,224,320) ($2,893,554) 27 Net Operating Revenue $9,743,351 $8,875,597 $8,018,019 $7,166,239 $6,271,152 $5,342,818 28 29 Calculated Debt Coverage 9.40 8.51 4.95 10.86 9.50 8.09 30 Required Debt Coverage 1.25 1.25 1.25 1.25 1.25 1.25 31 32 Beginning Balances $55,254,771 $36,741,518 $24,805,159 $23,981,386 $20,171,257 $17,984,549 33 Ending Balances $36,741,518 $24,805,159 $23,981,386 $20,171,257 $17,984,549 $15,133,812

Figure 3-1 shows the proposed water capital financing plan in graphical format, based on the capital projects shown in
Redlands Regular Meeting of 07-02-24
597 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 3-4 and with no debt issuances. The dark teal bars represent the rate funded CIP costs.

Figure 3-1: Proposed Water Capital Financing Plan (Status Quo)

Figure 3-2 shows the projected water financial plan under the status quo scenario in graphical format. The stacked bars represent the O&M expenses (light gray), supply, treatment, and power (dark teal), debt service (yellow), and capital projects (dark gray). The green bars show the changes to cash balances: if the green bars are below the stacked bars, then the City will be drawing from cash reserves, and vice versa. The current and proposed revenue lines overlap since there is no revenue adjustment. Since the line, which represents current revenues, is below the stacked bars, this means that the City’s current water revenues are not sufficient to fund its costs.

Figure 3-2: Projected Water Financial Plan (Status Quo)

Redlands Regular Meeting of 07-02-24
598 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Figure 3-3 shows the projected water fund cash balance under the status quo scenario in graphical format.

Without revenue adjustments, the cash balances (shown as turquoise bars) will be significantly drawn down over the Study period and will be depleted by FY 2030.

Figure 3-3: Projected Water Fund balances (Status Quo)

3.6. Proposed Financial Plan
The projected financial plan under the status quo scenario in Table 3-6 shows that the City’s current water rate revenues are not sufficient to sustain financial sufficiency for the water utility beginning in FY 2027.

Table 3-7 shows the proposed revenue adjustments for the study period, effective in July of each fiscal year, which will allow the City to fund all necessary operating and capital costs.

Table 3-7: Proposed Water Revenue Adjustments
A B C
Line Fiscal Year Revenue
Adjustment Month Effective
1 FY 2025 2.0% July
2 FY 2026 2.0% July
3 FY 2027 2.0% July
4 FY 2028 2.0% July
5 FY 2029 2.0% July

Table 3-8 shows the projected water financial plan with the proposed revenue adjustments from FY 2025 through FY 2029. The net cash flow (Line 26) is negative for all years as the water utility draws down cash reserves to minimize rate impacts. The ending cash balance (Line 33) is positive throughout the study period.

Redlands Regular Meeting of 07-02-24
599 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 3-8: Projected Water Financial Plan (Proposed Revenue Adjustments)

A B C D E F G
Line Water Financial Plan FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Revenues
2 Rate Revenues $30,012,835 $30,311,138 $30,473,330 $30,636,390 $30,800,322 $30,965,132 3 Revenue Adjustments $0 $606,223 $1,231,123 $1,875,192 $2,538,937 $3,222,876 4 Investment Income $510,297 $286,933 $227,614 $215,110 $202,470 $201,514 5 Other Revenues $4,702,600 $4,680,023 $4,680,460 $4,680,899 $4,681,341 $4,681,785 6 Total - Revenues $35,225,731 $35,884,317 $36,612,527 $37,407,592 $38,223,070 $39,071,306 7 8 O&M Expenses
9 Salaries and Benefits $7,685,771 $7,993,202 $8,312,930 $8,645,447 $8,991,265 $9,350,916 10 Services - Power $2,330,125 $2,459,708 $2,596,497 $2,740,467 $2,892,419 $3,052,796 11 Services $11,941,234 $12,299,471 $12,668,455 $13,048,509 $13,439,964 $13,843,163 12 Supplies - Purchased Water $0 $0 $0 $0 $0 $0
13 Supplies - Treatment $475,500 $501,944 $529,858 $559,237 $590,245 $622,973 14 Supplies $3,179,750 $3,275,143 $3,373,397 $3,474,599 $3,578,837 $3,686,202 15 Fixed Assets $0 $0 $0 $0 $0 $0
16 Debt Service $0 $0 $0 $0 $0 $0
17 Total - O&M Expenses $25,612,380 $26,529,467 $27,481,137 $28,468,258 $29,492,730 $30,556,049 18 19 Debt and Capital
20 Existing Debt Service $1,036,834 $1,043,167 $1,618,902 $659,771 $659,938 $660,110 21 Proposed Debt Service $0 $0 $0 $0 $0 $0
22 Rate Funded Capital Projects $13,186,991 $19,791,090 $7,250,244 $10,349,054 $7,835,533 $7,576,262 23 DIF Funded Capital Projects $0 $0 $0 $0 $0 $0
24 Total - Debt and Capital $14,223,825 $20,834,256 $8,869,146 $11,008,824 $8,495,472 $8,236,372 25 26 Net Cash Flow ($4,480,474) ($11,349,406) $392,244 ($1,939,491) $364,869 $408,885 27 Net Operating Revenue $9,743,351 $9,484,850 $9,261,390 $9,069,333 $8,860,341 $8,645,257 28 29 Calculated Debt Coverage 9.40 9.09 5.72 13.75 13.43 13.10 30 Required Debt Coverage 1.25 1.25 1.25 1.25 1.25 1.25 31 32 Beginning Balances $55,254,771 $36,741,518 $25,414,413 $25,834,010 $23,926,976 $24,329,457 33 Ending Balances $36,741,518 $25,414,413 $25,834,010 $23,926,976 $24,329,457 $24,781,159

Figure 3-4 shows the proposed water capital financing plan in graphical format, based on the capital financial plan shown in Table 3-5. The dark teal bars show that all CIP is funded by rates and reserves.

Redlands Regular Meeting of 07-02-24
600 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Figure 3-4: Proposed Water Capital Financing Plan

Figure 3-5 shows the proposed financial plan in graphical format with the revenue adjustments in Table 3-7.

The proposed revenues shown as the dark teal line, along with the drawdown of the reserves (green bars), allow the City to fund its operating and capital costs for the study period.

Figure 3-5: Projected Water Financial Plan (Proposed Revenue Adjustments)

Figure 3-6 shows the projected water fund balances with the proposed revenue adjustments in Table 3-7. The City’s restricted reserves are for the source acquisition fund and are represented by the gray bars. The unrestricted reserves or cash balance is comprised of operating and capital reserves. The blue bars represent the unrestricted cash balance available to finance operating expenses and capital projects. While the Redlands Regular Meeting of 07-02-24
601 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

unrestricted reserves are being drawn down through the study period, the ending balance remains at or above target through FY 2029.

Figure 3-6: Projected Water Fund Balances (Proposed Revenue Adjustments)

Redlands Regular Meeting of 07-02-24
602 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

4. Water – Cost-of-Service Analysis
and Rates
This section of the report details the cost-of-service analysis and rate calculation process to determine the proposed water rates. The goal of this process is to determine the cost of providing water service to each of the City’s water customer classes and to ensure equity and fairness among the various classes.

4.1. Process and Approach
The cost-of-service analysis utilized to develop the water rates followed the guidelines for allocating costs outlined in the AWWA M1 manual. The cost of service analysis and rate design process consists of seven major steps, as outlined below:

1. Determine the revenue requirement, equal to the revenue to be recovered from rates

2. Functionalize O&M expenses and capital assets into functional categories such as supply, pumping, transmission & distribution, customer service & billing, etc.

3. Allocate each functional category into cost components such as supply, meters, customer service, conservation, base delivery, etc.

4. Develop customer class characteristics and units of service by cost component

5. Calculate the cost component unit rates by dividing the total cost in each cost component by the total units of service for that component. For example, base delivery costs are divided by the annual water demand and customer billing costs are divided by the annual number of bills.

6. Calculate the cost for each customer class by multiplying the unit cost by the units of service for each customer class.

7. Design rates to meet City’s objectives.

4.2. Revenue Requirement
The first step of the cost-of-service analysis is to determine the revenue requirement for the test year, or rate- making year. The test year of this study is FY 2025.

Table 4-1 shows the revenue requirement calculations for the water utility.

The revenue requirements (Lines 2-3) are equal to the O&M expense and debt and capital costs for FY 2025 (Table 3-8, Column C, Lines 17 and 24). The revenues from other sources (Lines 7-10), also known as non- rate revenues or revenue offsets, are equal to all non-rate revenues (Table 3-8, Column C, Lines 4-5). The adjustment for cash from/(to) reserves (Line 14) is equal to the negative value of net cash flow (Table 3-8, Column C, Line 26) excluding the source acquisition fund revenue of $437,000.

The revenue to be recovered from rates excluding interest income (Line 19) is divided between operating (Column B) and capital (Column C) based on the function of each line item. For example, debt and capital costs (Line 3) are allocated to capital, while O&M expenses (Line 2) are allocated to operating. Note that the total revenue requirement (Column D, Line 18) is equal to rate revenues increased by a full year of the revenue adjustment for FY 2025. Interest income is excluded in Line 19 to be used as an offset for the Tier 1 building variable rate and therefore is excluded from the total rate revenue requirement for FY 2025.

Redlands Regular Meeting of 07-02-24
603 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-1: Water Revenue Requirement Calculation

A B C D
Line Revenue Requirement Calculation Operating Capital Total 1 Revenue Requirements
2 O&M Expenses $26,529,467 $0 $26,529,467
3 Debt and Capital $0 $20,834,256 $20,834,256
4 Total - Revenue Requirements $26,529,467 $20,834,256 $47,363,723 5 6 Revenue from Other Sources
7 Investment Income $0 $286,933 $286,933
8 Water Service (501) $2,242,023 $0 $2,242,023
9 Water Capital Improvement (509) $0 $1,955,000 $1,955,000 10 B Contract Water Revenue $130,000 $0 $130,000
11 Total - Revenue from Other Sources $2,372,023 $2,241,933 $4,613,957 12 13 Adjustments
14 Cash from Reserves $0 $11,832,406 $11,832,406
15 Midyear Increase $0 $0 $0
16 Subtotal - Adjustments $0 $11,832,406 $11,832,406
17 18 Revenue to be Recovered from Rates $24,157,443 $6,759,917 $30,917,361 19 Revenue to be recovered Excluding
Interest Income $24,157,443 $7,046,850 $31,204,294

4.3. Peaking Factors
One of the major factors in cost allocation is allocation of peaking costs. To do so, we must identify system- wide peaking factors. The maximum day demand is the maximum amount of water used in a single day in a year. The maximum hour demand is the maximum usage in an hour on the maximum usage day. Different facilities, such as distribution and storage facilities and infrastructure, and the capital and O&M costs associated with those facilities, are designed to meet the peak demands placed on the system by customers.

Therefore, extra capacity costs include the O&M and capital costs associated with meeting peak customer demand in excess of average rate of use, or base use, requirements. The system-wide factors for maximum day and maximum hour were provided by the City’s UWMP. Maximum day and maximum hour factors are shown in Table 4-2 relative to the base factor. Base, or average daily demand, is represented by the factor of

1.00. Table 4-2: System Peaking
A B
Line Allocation Factor System Peaking
Factor
1 Base 1.00
2 Max Day 1.70
3 Max Hour 2.75

Calculated water system peaking factors from Table 4-2 are shown in Column B of Table 4-3. The system- wide peaking factors are used to derive the cost causation component allocation base (i.e., percentages) shown Redlands Regular Meeting of 07-02-24
604 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

in Columns of Table 4-3. The numbers and calculations outlined in the following sections are rounded and may not be equal to the exact amounts shown.

Line 1 “Base” represents the average day demand throughout the year and is, therefore assigned a factor of

1.00. » Base = 1.00 / 1.00 = 100%
Line 2 “Max Day” is the ratio of maximum day demand relative to base demand, or 1.33. The percentage allocated to maximum day is the incremental responsibility above base demand. » Base = 1.00 / 1.70 = 59%
» Max Day = (1.70 – 1.00) / 1.70 = 41%
Similarly, Line 3, “Max Hour” is the ratio of maximum hour demand, on the maximum day, relative to base demand. The max hour factor is 1.65.
» Base = 1.00 / 2.75 = 36%
» Max Day = (1.70 – 1.00) / 2.75 = 26%
» Max Hour = (2.75 – 1.70) / 2.75 = 38%
These factors indicate how much additional capacity is required to meet demand above average daily use. As demand, and therefore capacity, increases, so must the sizing of facilities and pipelines, which incur greater costs to construct, maintain, and replace. To understand the interpretation of the percentages shown in columns C through E, “Base” is established as the average daily demand during the year. These allocation bases are used to assign certain functionalized costs to the cost causation components including reservoir, transmission, treatment, and distribution functions.

Table 4-3: System-Wide Peaking Factors

A B C D E F
Line Allocation Factor System Peaking
Factor Base Max Day Max Hour Total
1 Base 1.00 100% 0% 0% 100%
2 Max Day 1.70 59% 41% 0% 100%
3 Max Hour 2.75 36% 26% 38% 100%
4 Average Max Day/Max Hour 48% 33% 19% 100%

4.4. Operating and Capital Cost Allocation
The next step in the cost-of-service analysis is to determine the operating and capital cost allocations by cost component. The cost components for water include Base, Max Day, Max Hour, Meters, Customer, Fire Protection, Conservation and General.

Redlands Regular Meeting of 07-02-24
605 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-4 shows the water operating cost allocation. The allocation basis for each function is listed in Column B. For the purpose of allocating operating costs, City staff provided the O&M expense budget estimates by function (Column A, Lines 14-25). This is representative of the distribution of operating costs shown in Table 3-2. Functions include General and Administration, Engineering, Production & Operations, Production Maintenance, Water Treatment, Water Quality, Water Distribution, Water Conservation Program, B Contract (Reimbursable and City), and South Mountain Water. The operating costs are allocated to each cost component based on the percentage allocation (Lines 1-12) for each component. The final O&M expense allocation (Line 27) is determined by taking the weighted proportion of total operating costs by cost component based on the percentage allocations.

Redlands Regular Meeting of 07-02-24
606 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-4: Water Operating Cost Allocation

A B C D E F G H I J K
Line O&M Allocation Allocation Basis Base Max Day Max Hour Meters Customer Fire Protection Conservation General Total 1 Water Admin & General General 0% 0% 0% 0% 11% 0% 0% 89% 100% 2 Water Engineering Max Hour Fire 25% 18% 27% 15% 0% 15% 0% 0% 100% 3 Water Production & Operations - General Max Day 59% 41% 0% 0% 0% 0% 0% 0% 100% 4 Water Production Maintenance Max Day 59% 41% 0% 0% 0% 0% 0% 0% 100% 5 Water Treatment - HTWTP Max Day 59% 41% 0% 0% 0% 0% 0% 0% 100% 6 Water Treatment - HHWTP Max Day 59% 41% 0% 0% 0% 0% 0% 0% 100% 7 Water Quality - General Base 95% 0% 0% 5% 0% 0% 0% 0% 100% 8 Water Distribution - General Max Hour Fire 25% 18% 27% 15% 0% 15% 0% 0% 100% 9 Water Conservation Program Conservation 0% 0% 0% 0% 0% 0% 100% 0% 100% 10 B' Contract (Reimbursable) Base 95% 0% 0% 5% 0% 0% 0% 0% 100% 11 B' Contract (City) Base 95% 0% 0% 5% 0% 0% 0% 0% 100% 12 South Mountain Water (Reimbursable) Base 95% 0% 0% 5% 0% 0% 0% 0% 100% 13 14 Water Admin & General General $0 $0 $0 $0 $925,279 $0 $0 $7,486,349 $8,411,628 15 Water Engineering Max Hour Fire $302,904 $212,852 $317,640 $178,585 $0 $178,585 $0 $0 $1,190,566 16 Water Production & Operations - General Max Day $3,019,621 $2,121,896 $0 $0 $0 $0 $0 $0 $5,141,518 17 Water Production Maintenance Max Day $1,859,120 $1,306,409 $0 $0 $0 $0 $0 $0 $3,165,529 18 Water Treatment - HTWTP Max Day $493,743 $346,954 $0 $0 $0 $0 $0 $0 $840,697 19 Water Treatment - HHWTP Max Day $681,909 $479,179 $0 $0 $0 $0 $0 $0 $1,161,088 20 Water Quality - General Base $458,256 $0 $0 $24,119 $0 $0 $0 $0 $482,375 21 Water Distribution - General Max Hour Fire $1,416,314 $995,248 $1,485,216 $835,024 $0 $835,024 $0 $0 $5,566,826 22 Water Conservation Program Conservation $0 $0 $0 $0 $0 $0 $452,935 $0 $452,935 23 B' Contract (Reimbursable) Base $93,653 $0 $0 $4,929 $0 $0 $0 $0 $98,582 24 B' Contract (City) Base $12,412 $0 $0 $653 $0 $0 $0 $0 $13,066 25 South Mountain Water (Reimbursable) Base $4,425 $0 $0 $233 $0 $0 $0 $0 $4,658 26 Total O&M Expenses $8,342,358 $5,462,538 $1,802,856 $1,043,543 $925,279 $1,013,609 $452,935 $7,486,349 $26,529,467 27 O&M Allocation 31% 21% 7% 4% 3% 4% 2% 28% 100%
Redlands Regular Meeting of 07-02-24
607 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Redlands Regular Meeting of 07-02-24
608 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-5 shows the water capital cost allocation. To minimize fluctuations in the capital cost allocation as capital projects change from year to year, capital costs are allocated on the basis of capital assets. For the purpose of allocating capital costs, City staff provided the water capital assets listed by function (Column A, Lines 16-29). This is representative of the distribution of capital costs shown in Table 3-5. Functions include Source of Supply, Wells, Pumping, Treatment, Transmission, Distribution, Storage, Meters, Fire Protection, Customer Billing, Land, Building Improvements, Rolling Stock (Vehicles), and General Plant. The capital asset costs are allocated into each cost component based on the percentage allocation (Lines 1-14) for each component. The final capital expense allocation (Line 31) is determined by taking the weighted proportion of total capital asset costs by cost component.

Redlands Regular Meeting of 07-02-24
609 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-5: Water Asset Allocation

A B C D E F G H I J K
Line Assets Allocation Allocation Basis Base Max Day Max Hour Meters Customer Fire Protection Conservation General Total 1 Source of Supply Base 95% 0% 0% 5% 0% 0% 0% 0% 100%
2 Wells Max Day 59% 41% 0% 0% 0% 0% 0% 0% 100%
3 Pumping Max Day 59% 41% 0% 0% 0% 0% 0% 0% 100%
4 Treatment Max Day 59% 41% 0% 0% 0% 0% 0% 0% 100%
5 Transmission Max Day Fire 47% 33% 0% 5% 0% 15% 0% 0% 100% 6 Distribution Max Hour Fire 25% 18% 27% 15% 0% 15% 0% 0% 100% 7 Storage Max Day Fire 47% 33% 0% 5% 0% 15% 0% 0% 100%
8 Meters Meters 0% 0% 0% 100% 0% 0% 0% 0% 100%
9 Fire Protection Fire Service 0% 0% 0% 0% 0% 100% 0% 0% 100% 10 Customer Billing Billing & Customer Service 0% 0% 0% 0% 100% 0% 0% 0% 100% 11 Land Max Day Fire 47% 33% 0% 5% 0% 15% 0% 0% 100%
12 Building and Improvements General 0% 0% 0% 0% 11% 0% 0% 89% 100% 13 Rolling Stock (Vehicles) Base 95% 0% 0% 5% 0% 0% 0% 0% 100% 14 General Plant Max Day 59% 41% 0% 0% 0% 0% 0% 0% 100% 15 16 Source of Supply Base $9,387,387 $0 $0 $494,073 $0 $0 $0 $0 $9,881,460 17 Wells Max Day $1,504,123 $1,056,951 $0 $0 $0 $0 $0 $0 $2,561,074 18 Pumping Max Day $329,162 $231,303 $0 $0 $0 $0 $0 $0 $560,466 19 Treatment Max Day $42,208 $29,660 $0 $0 $0 $0 $0 $0 $71,867 20 Transmission Max Day Fire $29,223,535 $20,535,457 $0 $3,109,937 $0 $9,329,811 $0 $0 $62,198,740 21 Distribution Max Hour Fire $2,240,016 $1,574,065 $2,348,990 $1,320,658 $0 $1,320,658 $0 $0 $8,804,388 22 Storage Max Day Fire $2,815,532 $1,978,482 $0 $299,626 $0 $898,878 $0 $0 $5,992,518 23 Meters Meters $0 $0 $0 $0 $0 $0 $0 $0 $0
24 Fire Protection Fire Service $0 $0 $0 $0 $0 $0 $0 $0 $0 25 Customer Billing Billing & Customer Service $0 $0 $0 $0 $0 $0 $0 $0 $0 26 Land Max Day Fire $3,307,469 $2,324,167 $0 $351,977 $0 $1,055,932 $0 $0 $7,039,545 27 Building and Improvements General $0 $0 $0 $0 $1,562,036 $0 $0 $12,638,289 $14,200,325 28 Rolling Stock (Vehicles) Base $383,718 $0 $0 $20,196 $0 $0 $0 $0 $403,913 29 General Plant Max Day $0 $0 $0 $0 $0 $0 $0 $0 $0
30 Total Assets $49,233,150 $27,730,086 $2,348,990 $5,596,467 $1,562,036 $12,605,279 $0 $12,638,289 $111,714,296 31 Asset Allocation 44% 25% 2% 5% 1% 11% 0% 11% 100%

Redlands Regular Meeting of 07-02-24
610 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

4.5. Allocation of Fire Protection Costs – Public vs.

Private
Water systems provide two types of fire protection: public fire protection for firefighting, which is generally visible as hydrants on a street, and private fire protection which provides fire flow to building and other structure sprinkler systems for fire suppression within private improvements. To determine the share of total fire costs responsible to each, Raftelis performs an analysis of the public hydrants and private fire lines.

Table 4-6 shows the steps of allocating costs between public and private fire service Each fire connection size has a fire flow demand factor similar to a hydraulic capacity factor of a water meter. The diameter of the connection is raised to the 2.63 power to determine the fire flow demand factor 2. The number of connections of a specific size is multiplied by the fire flow demand factor to derive total equivalent fire connections. Total fire costs are allocated based on the percentage share of total equivalent fire connections between public and private. The analysis estimates that 75 percent of fire costs relate to public fire and will be included and recovered on the monthly fixed charges. The remaining 25 percent is attributable to private fire service and will be recovered through private fire service charges.

Table 4-6: Fire Analysis

A B C D
Line Fire Line/Hydrant
Size Fire Ratio Number of
Lines/Hydrants
Equivalent
Demand
1 Private Fire Line Size
2 2" 6.19 10 64
3 3" 17.98 0 0
4 4" 38.32 153 5,868
5 6" 111.31 151 16,817
6 8" 237.21 183 43,394
7 10" 426.58 127 54,363
8 12" 689.04 0 0
9 Total Fire Lines 0.00 625 120,505
10 25%
11 Public Fire Hydrant Size
12 6" 111.31 3,236 360,202
13 75%

4.6. Final Cost Allocation of Revenue Requirement
The total revenue recoverable from each cost causation component through water rates is shown in

2 Hazen-Williams equation via AWWA M1 Manual
Redlands Regular Meeting of 07-02-24
611 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-7 using the revenue requirement from
Table 4-1, the O&M and Capital allocations in
Redlands Regular Meeting of 07-02-24
612 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-4 and
Redlands Regular Meeting of 07-02-24
613 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-5, and the fire cost analysis in Table 4-6. Since public fire protection costs are a function of system capacity, they are reallocated to the Meter component. Interest earnings, shown separately, will be used to offset some rates. Five percent of Base costs and 33 percent of Peaking costs (Max Day plus Max Hour) are allocated to the meter charge to preserve the utility’s current fixed revenue recovery of 30 percent.

Redlands Regular Meeting of 07-02-24
614 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-7: Revenue Requirement by Cost Component

A B C D E F G H I J K
Line Cost Allocation Base Max Day Max Hour Meters Customer Fire Protection Conservation General Offset Total
1 Operating Revenue
Requirement $7,596,460 $4,974,127 $1,641,661 $950,239 $842,549 $922,981 $412,437 $6,816,988 $0 $24,157,443 2 Capital Revenue Requirement $3,105,589 $1,749,192 $148,172 $353,021 $98,532 $795,131 $0 $797,213 $0 $7,046,850 3 Revenue Offset $0 $0 $0 $0 $0 $0 $0 $0 -$286,933 -$286,933 4 Total Cost of Service $10,702,049 $6,723,320 $1,789,834 $1,303,259 $941,081 $1,718,112 $412,437 $7,614,201 -$286,933 $30,917,361 5 Allocation of General Cost $3,597,842 $2,260,262 $601,711 $438,133 $0 $577,599 $138,654 -$7,614,201 $0 $0 6 Allocation to Public Fire $0 $0 $0 $1,720,216 $0 -$1,720,216 $0 $0 $0 $0 7 Allocation of Base to Meter -$714,995 $0 $0 $714,995 $0 $0 $0 $0 $0 $0 8 Allocation of Peak to Meter $0 -$2,964,582 -$789,210 $3,753,792 $0 $0 $0 $0 $0 $0 9 Total Adjusted Cost of
Service $13,584,896 $6,019,000 $1,602,335 $7,930,394 $941,081 $575,496 $551,092 $0 -$286,933 $30,917,361

Redlands Regular Meeting of 07-02-24
615 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

4.7. Unit Cost Components
Unit costs for each component must be calculated, which starts by assessing the total water demand (or equivalent service units) for each cost component. Projected water use (base units of service) for FY 2025 is shown in Table 4-8. Daily use is calculated as annual use is divided by 365 days. Demand is detailed by rate class. Values are rounded to the nearest ccf and may not be equal to the exact values shown.

Table 4-8: FY 2025 Projected Water Usage by Class
A B C
Line Customer Class Annual Use
(ccf)
Average Daily Use
(ccf/day)
1 Building Water Usage
2 Tier 1 3,215,034 8,808
3 Tier 2 282,597 774
4 Tier 3 4,665,284 12,782
5 Non-Building Water
Usage
6 Tier 1 76,156 209
7 Tier 2 1,119,180 3,066
8 Total 9,358,251 25,639

Table 4-9 shows the total equivalent meters and annual number of bills. Table 4-10 shows the total equivalent fire line connections. These totals are used as the denominator in developing unit costs for the rate components of the monthly fixed service charges and private fire service charges.

Table 4-9: Derivation of Equivalent Meters

A B C D E
Line Meter
Size
Meter
Count
Hydraulic
Capacity
Factor
Equivalent
Meters
Annual Bi-
monthly Bills
1 5/8" 179 1.00 179 1,073
2 3/4" 8,284 1.43 11,804 49,703
3 1" 11,981 2.25 26,957 71,884
4 1 1/2" 778 4.25 3,307 4,668
5 2" 775 6.40 4,960 4,650
6 3" 78 11.25 879 469
7 4" 54 17.50 953 327
8 6" 28 32.50 902 166
9 8" 13 48.00 641 80
10 10" 0 114.00 0 0
11 12" 1 150.00 154 6
12 Total 22,171 50,735 133,026

Redlands Regular Meeting of 07-02-24
616 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-10: Derivation of Equivalent Fire Lines

A B C D E
Line Fire Line
Size
Fire Line
Count
Demand
Factor
Equivalent Fire
Lines
Annual Bi-
monthly Bills
1 2" 10 6.19 64 62
2 3" 0 17.98 0 0
3 4" 153 38.32 5,868 919
4 6" 151 111.31 16,817 906
5 8" 183 237.21 43,394 1,098
6 10" 127 426.58 54,363 765
7 12" 0 689.04 0 0
8 Total 625 120,505 3,749

Redlands Regular Meeting of 07-02-24
617 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-11 shows the total and extra capacity calculation by class and tier for maximum day and maximum hour demand. The class and tier specific maximum day peaking factors were calculated by dividing the maximum billing period usage by the average billing period usage. The class and tier specific maximum hour peaking factors were calculated by multiplying the maximum day peaking factors by the ratio of the system- wide maximum hour to maximum day peaking factors shown in Table 4-3.

Redlands Regular Meeting of 07-02-24
618 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-11: Calculation of Peak Capacity

A B C D E F G H I
Max Day Max Hour
Line Customer
Class
Annual
Use (ccf)
Average Daily
Use (ccf/day)
Capacity
Factor
Total Capacity
(ccf/day)
Extra Capacity
(ccf/day)
Capacity
Factor
Total Capacity
(ccf/day)
Extra Capacity
(ccf/day)
1 Building Water
Usage
2 Tier 1 3,215,034 8,808 1.33 11,683 2,875 2.14 18,879 7,195 3 Tier 2 282,597 774 1.48 1,149 375 2.40 1,856 708 4 Tier 3 4,665,284 12,782 2.41 30,742 17,961 3.89 49,676 18,933 5 Non-Building
Water Usage
6 Tier 1 76,156 209 1.55 322 114 2.50 521 199
7 Tier 2 1,119,180 3,066 2.26 6,923 3,857 3.65 11,187 4,264

Redlands Regular Meeting of 07-02-24
619 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Utilizing the final cost of service from
Redlands Regular Meeting of 07-02-24
620 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-7 as the numerator and Table 4-8, Table 4-9, Table 4-10, and Redlands Regular Meeting of 07-02-24
621 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-11 as the denominators allows us to derive the unit costs of service in Redlands Regular Meeting of 07-02-24
622 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-12. The total cost of service is divided by the respective units of service to calculate the unit cost of each cost component.

Meter costs are divided by the total meter equivalencies from Table 4-9 multiplied by 6 bi-monthly bills to determine a cost per equivalent meter and annual customer costs are divided by the estimated number of annual monthly bills, also from Table 4-9. Fire protection costs are divided by total fire line equivalencies from Table 4-10 to determine a cost per equivalent inch of fire line. Base delivery costs are divided by total annual water demand from Table 4-8 to determine a cost per unit of water usage. Similarly, Conservation costs are divided by annual Tier 3 water demand and Offset savings are divided by Building Tier 1 usage as those are the units from Table 4-8 over which those costs and savings, respectively, are being recovered. The unit costs are used to distribute the cost components to the meter classes and commodity classes and tiers.

Redlands Regular Meeting of 07-02-24
623 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-12: Cost Causation Component Unit Cost Calculation

A B C D E F G H I
Line Cost of
Service Base Max Day Max Hour Meters Customer Fire
Protection Conservation Offset
1 Cost of Service $13,584,896 $6,019,000 $1,602,335 $7,930,394 $941,081 $575,496 $551,092 ($286,933) 2 Units of
Service 9,358,251 25,181 31,299 304,412 136,775 723,031 4,665,284 3,215,034 3 Unit of
Measure ccf ccf/day ccf/day
equiv.
meter/yr bills/yr equiv. line/yr ccf
4 Unit Cost $1.45 $239.03 $51.19 $26.05 $6.88 $0.80 $0.12 ($0.09)

Redlands Regular Meeting of 07-02-24
624 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

4.8. Distribution of Cost Components to Customer
Classes
The final step in a cost-of-service analysis is to distribute the cost components to the customer classes using the unit costs derived in
Redlands Regular Meeting of 07-02-24
625 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-12. This is the end goal of a cost-of-service analysis and yields the cost to serve each class.

Redlands Regular Meeting of 07-02-24
626 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-13 shows the derivation of the costs to serve each class. The supply, base, max day, max hour, conservation, and offset cost components are collected through the commodity charges ($/ccf). Fire protection, meters, and customer cost components are collected through the City’s bi-monthly fixed service charge ($/2 months) and private fire service charge ($/2 months). The interest revenue, which is a non-rate revenue and over which the City Council has discretion, is applied as an offset to Tier 1 rate for building usage to provide affordability for low volume customers. All building users will benefit from the lower rate in Tier 1.

To derive the cost to serve each class, the unit costs from Redlands Regular Meeting of 07-02-24
627 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-12 are multiplied by the respective units of service for each class (Table 4-8, Table 4-9, Table 4-10, and
Redlands Regular Meeting of 07-02-24
628 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-11). With the cost to serve each user class calculated, we can proceed to derive rates to collect the cost to serve each commodity class, tier, and meter size.

Redlands Regular Meeting of 07-02-24
629 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-13: Derivation of Costs to Serve Each Class

A B C D E F G H I J
Line Customer Class Base Max Day Max Hour Meters Customer Fire Protection Conservation Offset Total
1 Building Water Usage $7,930,394 $915,285 $8,845,679 2 Tier 1 $4,667,102 $687,190 $368,367 ($286,933) $5,435,726 3 Tier 2 $410,232 $89,549 $36,224 $536,005
4 Tier 3 $6,772,354 $4,293,149 $969,294 $551,092 $12,585,888 5 Non-Building Water
Usage
6 Tier 1 $110,551 $27,213 $10,168 $147,933 7 Tier 2 $1,624,657 $921,899 $218,282 $2,764,838 8 Fire Protection $0 $0 $0 $25,796 $575,496 $601,292 9 Total Cost of Service $13,584,896 $6,019,000 $1,602,335 $7,930,394 $941,081 $575,496 $551,092 ($286,933) $30,917,361

Redlands Regular Meeting of 07-02-24
630 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

4.9. Rate Calculation

4.9.1. Proposed Bi-Monthly Fixed Charges
Table 4-14 shows the bi-monthly service charge calculation, which consists of the Meter and Customer cost components. The Meter cost component is derived based on total equivalent meters. Therefore, the meter unit cost (Table 4-12, Column E, Line 4) is multiplied by the capacity ratio for each meter size (Column B) to appropriately reflect the share of cost by meter size (Column C). The Customer cost does not vary with meter size, and therefore the Customer unit cost (Table 4-12, Column F, Line 4) is applied uniformly across all meter sizes (Column D). These components added together determine the proposed bi-monthly service charge (Column E).

Table 4-14: Proposed Bi-Monthly Service Charge (FY 2025)

A B C D E F
Line Bi-Monthly Service
Charge
Capacity
Ratio Meter Customer Proposed
Charge
Current
Charge
1 5/8" 1.00 $26.05 $6.88 $32.94 $32.10
2 3/4" 1.43 $37.12 $6.88 $44.01 $43.17
3 1" 2.25 $58.62 $6.88 $65.50 $64.67
4 1 1/2" 4.25 $110.72 $6.88 $117.60 $116.79
5 2" 6.40 $166.73 $6.88 $173.62 $172.83
6 3" 11.25 $293.08 $6.88 $299.97 $299.23
7 4" 17.50 $455.90 $6.88 $462.79 $462.10
8 6" 32.50 $846.67 $6.88 $853.56 $853.02
9 8" 48.00 $1,250.47 $6.88 $1,257.36 $1,256.97
10 10" 114.00 $2,969.87 $6.88 $2,976.76 $2,977.00
11 12" 150.00 $3,907.73 $6.88 $3,914.61 $3,915.20

4.9.2. Proposed Bi-Monthly Fire Service Charges
Table 4-15 shows the bi-monthly service charge calculation, which consists of the Private Fire and Customer cost components. The Private Fire unit cost (Table 4-12, Column G, Line 4) is multiplied by the fire ratio for each fire line diameter (Column B) to appropriately reflect the share of cost by fire line (Column C). A connection’s share of the Customer cost does not vary with fire line size, and therefore the Customer unit cost (Table 4-12, Column F, Line 4) is applied uniformly across all meter sizes (Column D). These components added together arrive at the proposed bi-monthly fire service charge (Column E).

Redlands Regular Meeting of 07-02-24
631 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-15: Proposed Bi-Monthly Fire Service Charge (FY 2025)

A B C D E F
Line Bi-Monthly Fire Service
Charge
Capacity
Ratio Fire Customer Proposed
Charge
Current
Charge
1 2" 6.19 $4.93 $6.88 $11.81 $10.19
2 3" 17.98 $14.31 $6.88 $21.20 $18.10
3 4" 38.32 $30.50 $6.88 $37.39 $31.75
4 6" 111.31 $88.60 $6.88 $95.48 $80.73
5 8" 237.21 $188.80 $6.88 $195.69 $165.22
6 10" 426.58 $339.54 $6.88 $346.42 $292.32
7 12" 689.04 $548.44 $6.88 $555.33 $468.46

4.9.3. Proposed Water Usage Rates
The City’s water usage rates consist of five components: Base, Peaking, Supply, Conservation, and Offset.

The following subsections will present the calculations for each of the components.

4.9.3.1. Base Component
The Base component is applied uniformly across all units of water and is equal to the Base unit cost (Table 4-12, Column B, Line 4).

4.9.3.2. Peaking Component
Table 4-16 shows the Peaking unit cost calculation for each customer class and tier. Peaking costs (Column C) are the sum of Max Day and Max Hour costs for each class and tier (Table 4-13, Columns C and D).

Peaking costs are divided by annual use (Column B) to determine the Peaking unit cost for each class and tier (Column D).

Table 4-16: Peaking Unit Cost Calculation

A B C D
Line Customer Class Annual Use
(ccf)
Peaking
Costs
Unit
Cost
1 Building Water Usage
2 Tier 1 3,215,034 $1,055,557 $0.33
3 Tier 2 282,597 $125,773 $0.45
4 Tier 3 4,665,284 $5,262,443 $1.13
5 Non-Building Water
Usage
6 Tier 1 76,156 $37,381 $0.49
7 Tier 2 1,119,180 $1,140,181 $1.02

4.9.3.3. Supply Component
Table 4-17 shows the calculation of the unit cost for each source of water (Line 6). The percentage from each source (Line 2) is determined by the proportion of volume purchased from each source in Line 1. These proportions are used to determine the proportion of demand from each source (Line 3). The direct water Redlands Regular Meeting of 07-02-24
632 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

purchase costs (provided by City staff) on Line 4 are divided by the estimated potable demand (Line 3) to calculate the unit costs in Line 6.

Redlands Regular Meeting of 07-02-24
633 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-18 shows supply component unit cost calculation for each customer class and tier. The lowest cost water source is used for Tier 1, if that source does not meet the demand, then water from the next lowest source is used and so on. Once the Tier 1 demand is met then Tier 2 is allocated the remaining lowest cost water and so on. The uses for each class and tier from each source (Columns E through H) are multiplied by their respective unit costs (Table 4-17, Line 6) to calculate the total supply cost for each class and tier in Column J. The total costs (Column J) are divided by the total use (Column I) to calculate the supply unit cost for each class and tier (Column K).

Table 4-17: Potable Water Supply Cost

A B C D E F
Line Potable Water Supply
Cost
MC
Surface
SAR Surface
(BV) Groundwater SWP
Water Total
1 Volume (AF) 5,700 5,466 10,767 1,342 23,275
2 % from Source 24% 23% 46% 6% 100%
3 Estimated Potable
Demand 2,291,939 2,197,531 4,329,091 539,690 9,358,251 4 Direct Water Purchase
Costs $148,209 $431,779 $1,453,551 $200,000 $2,233,539 5 % of Water Purchase Costs 7% 19% 65% 9% 100%
6 Unit Cost ($/ccf) $0.06 $0.20 $0.34 $0.37 $0.24

Redlands Regular Meeting of 07-02-24
634 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-18: Supply Component Calculation

A B C D E F G H I J K
Line Customer Class Tier
Definitions
Annual Use
(ccf)
% of
Annual Use
MC
Surface
SAR
Surface
(BV)
Groundw
ater
SWP
Water
Total Use
(ccf) Total Cost Supply
Unit Cost
1 Building Water
Usage
2 Tier 1 16 3,215,034 34% 1,999,188 1,215,847 0 0 3,215,034 $368,173 $0.11 3 Tier 2 27 282,597 3% 0 282,597 0 0 282,597 $55,526 $0.20 4 Tier 3 Over 27 4,665,284 50% 0 418,395 3,776,134 470,755 4,665,284 $1,524,549 $0.33 5 Non-Building
Water Usage
6 Tier 1 27 76,156 1% 76,156 0 0 0 76,156 $4,925 $0.06 7 Tier 2 Over 27 1,119,180 12% 216,595 280,692 552,958 68,935 1,119,180 $280,367 $0.25 8 Total Potable
Use 9,358,251 100% 2,291,939 2,197,531 4,329,091 539,690 9,358,251 $2,233,539

Redlands Regular Meeting of 07-02-24
635 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

4.9.3.4. Conservation Component
The Conservation component is applied to Building Tier 3 use and is equal to the Conservation unit cost (Table 4-12, Column H, Line 4) for that class and tier only.

4.9.3.5. Offset Component
The Offset component is applied to Building Tier 1 use and is equal to the Offset unit cost (Table 4-12, Column I, Line 4) for that class and tier only. The offset helps to provide affordability in Tier 1 and benefits all building customers.

4.9.3.6. Water Usage Rates
Table 4-19 shows the calculation of proposed water usage rates (Column H) for each customer class and tier based on the five rate components (Columns C through G) described previously.

Table 4-19: Proposed Water Usage Rates (FY 2025)

A B C D E F G H
Line Customer
Class
Bi-monthly
Tiers, ccf Supply Base
Delivery Peaking Conservation Offset Proposed
Rate
1 Building Water Usage
2 Tier 1 16 $0.11 $1.21 $0.33 $0.00 ($0.09) $1.57
3 Tier 2 27 $0.20 $1.21 $0.45 $0.00 $0.00 $1.86
4 Tier 3 Over 27 $0.33 $1.21 $1.13 $0.12 $0.00 $2.79 5 Non-Building Water Usage
6 Tier 1 27 $0.06 $1.21 $0.49 $0.00 $0.00 $1.77
7 Tier 2 Over 27 $0.25 $1.21 $1.02 $0.00 $0.00 $2.49

4.9.3.7. Proposed Rate Schedule
Table 4-20 and Table 4-21 show the proposed bi-monthly water service charges, private fire service charges, and water usage rates, respectively. The proposed water rates after the FY 2025 test year are increased across the board by the revenue adjustments in Table 3-7.

Redlands Regular Meeting of 07-02-24
636 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 4-20: Proposed Bi-Monthly Service Charges

A B C D E F G
Line Bi-Monthly Water Service
Charges
Current
Rates July 2024 July 2025 July 2026 July 2027 July 2028 1 Water Service
2 5/8" $32.10 $32.94 $33.60 $34.28 $34.97 $35.67
3 3/4" $43.17 $44.01 $44.90 $45.80 $46.72 $47.66
4 1" $64.67 $65.50 $66.81 $68.15 $69.52 $70.92
5 1 1/2" $116.79 $117.60 $119.96 $122.36 $124.81 $127.31 6 2" $172.83 $173.62 $177.10 $180.65 $184.27 $187.96 7 3" $299.23 $299.97 $305.97 $312.09 $318.34 $324.71 8 4" $462.10 $462.79 $472.05 $481.50 $491.13 $500.96 9 6" $853.02 $853.56 $870.64 $888.06 $905.83 $923.95 10 8" $1,256.97 $1,257.36 $1,282.51 $1,308.17 $1,334.34 $1,361.03 11 10" $2,977.00 $2,976.76 $3,036.30 $3,097.03 $3,158.98 $3,222.16 12 12" $3,915.20 $3,914.61 $3,992.91 $4,072.77 $4,154.23 $4,237.32 13 14 Fire Protection Service
15 2" $10.19 $11.81 $12.05 $12.30 $12.55 $12.81
16 3" $18.10 $21.20 $21.63 $22.07 $22.52 $22.98
17 4" $31.75 $37.39 $38.14 $38.91 $39.69 $40.49
18 6" $80.73 $95.48 $97.39 $99.34 $101.33 $103.36
19 8" $165.22 $195.69 $199.61 $203.61 $207.69 $211.85 20 10" $292.32 $346.42 $353.35 $360.42 $367.63 $374.99 21 12" $468.46 $555.33 $566.44 $577.77 $589.33 $601.12 22 23 Fire Hydrant Service
24 All Meters $73.60 $299.97 $305.97 $312.09 $318.34 $324.71

Table 4-21: Proposed Water Usage Rates

A B C D E F G H
Line Water Usage Rates
Bi-
Monthly
Tiers
Current
Rates July 2024 July 2025 July 2026 July 2027 July 2028 1 Building Water Usage
2 Tier 1 16 $1.46 $1.57 $1.61 $1.65 $1.69 $1.73
3 Tier 2 27 $1.78 $1.86 $1.90 $1.94 $1.98 $2.02
4 Tier 3 Over 27 $2.69 $2.79 $2.85 $2.91 $2.97 $3.03 5 6 Non-Building Water Usage
7 Tier 1 27 $1.78 $1.77 $1.81 $1.85 $1.89 $1.93
8 Tier 2 Over 27 $2.69 $2.49 $2.54 $2.60 $2.66 $2.72 9 10 Fire Protection Water Usage
11 All Units $2.69 $2.79 $2.85 $2.91 $2.97 $3.03

Redlands Regular Meeting of 07-02-24
637 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

5. Wastewater – Financial Plan
This section of the report details the wastewater enterprise’s long-term financial plan, based on the projected revenues, expenses, debt service, and capital project costs. Raftelis modeled the financial plan without revenue adjustments (status quo) and with proposed revenue adjustments to ensure the financial sustainability and solvency of the wastewater utility. The result of the wastewater financial plan is the total revenue requirement utilized as the basis for the cost-of-service analysis and resulting rates in the next section of the report.

5.1. Customer Accounts and Usage
Table 5-1 shows the projected wastewater customer accounts and water usage for the study period. City staff provided wastewater customer accounts and usage data for FY 2022, which are then projected based on the customer account growth rates from Table 2-1. Typical types of users that fall within the non-residential classes include:
» Low Strength I – Car Wash
» Low Strength II – Office Building
» Low Strength III – Hotel (rooms only, no restaurant)
» Medium Strength I – Laundromat (linen & general)
» Medium Strength II – Mini-Mall
» Medium Strength III – Hotel (with restaurant)
» High Strength I – Laundry (industrial)
» High Strength II - Bakery

Redlands Regular Meeting of 07-02-24
638 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-1: Projected Wastewater Customer Accounts and Usage

A B C D E F G
Line Wastewater Customer Data FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Residential (dwelling units)
2 Single Family 16,661 16,752 16,842 16,932 17,022 17,113 3 Multiple Family 10,017 10,072 10,126 10,180 10,234 10,289 4 Total - Residential 26,678 26,824 26,967 27,111 27,256 27,402 5 6 Non-Residential (ccf)
7 Low Strength I 43,850 44,091 44,328 44,567 44,806 45,047 8 Low Strength II 411,018 413,274 415,497 417,732 419,979 422,239 9 Low Strength III 89,331 89,821 90,305 90,790 91,279 91,770 10 Medium Strength I 26,055 26,198 26,339 26,480 26,623 26,766 11 Medium Strength II 37,882 38,090 38,295 38,501 38,708 38,916 12 Medium Strength III 19,582 19,689 19,795 19,902 20,009 20,117 13 High Strength I 10,217 10,273 10,328 10,383 10,439 10,495 14 High Strength II 135,769 136,514 137,248 137,987 138,729 139,475 15 Large Volume User 33,116 33,298 33,477 33,657 33,838 34,020 16 Total - Non-Residential 806,821 811,248 815,612 820,000 824,411 828,846 17 18 Schools (students)
19 Elementary 4,821 4,848 4,874 4,900 4,927 4,953
20 Secondary & High 8,145 8,189 8,233 8,278 8,322 8,367 21 Total - Schools 12,966 13,037 13,107 13,178 13,249 13,320

5.2. Current Rates
The City’s current wastewater rates include bi-monthly wastewater service charges for residential customers by type of dwelling unit, a non-residential wastewater usage rate based on ccf of water usage per customer class, and for schools by 100 students. Table 5-2 shows the current wastewater rates effective July 1, 2021.

Redlands Regular Meeting of 07-02-24
639 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-2: Current Bi-Monthly Wastewater Service Charges and Usage Rates A B
Line Current Wastewater Rates FY 2024
1 Bi-Monthly Residential Rate ($/dwelling unit)
2 Single Family $62.43
3 Multiple Family $48.08
4 5 Non-Residential Rate ($/ccf)
6 Low Strength I $2.42
7 Low Strength II $2.87
8 Low Strength III $3.32
9 Medium Strength I $3.77
10 Medium Strength II $4.22
11 Medium Strength III $4.67
12 High Strength I $5.12
13 High Strength II $5.56
14 Large Volume User $3.32
15 16 Bi-Monthly Schools Rate ($/100 students)
17 Elementary $134.38
18 Secondary & High $215.02

5.3. Calculated Rate Revenues at Current Rates
Table 5-3 shows the calculated wastewater rate revenues by customer class. To calculate rate revenues, the current wastewater rates (Table 5-2) are multiplied by the customer account and usage data (Table 5-1) for all years of the study.

Residential rate revenues (Lines 2-3) = Residential wastewater service charge x Residential dwelling units x 6 billing periods

Non-residential rate revenues (Lines 7-15) = Non-residential wastewater usage rate x Non-residential water usage in ccf

Schools rate revenues (Lines 19-20) = Schools wastewater service charge x (Number of students / 100 students) x 6 billing periods

Redlands Regular Meeting of 07-02-24
640 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-3: Calculated Wastewater Rate Revenues at Current Rates

A B C D E F G
Line Calculated Rate Revenues FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Residential (dwelling units)
2 Single Family $6,240,804 $6,275,056 $6,308,577 $6,342,276 $6,376,156 $6,410,216 3 Multiple Family $2,889,669 $2,905,522 $2,921,037 $2,936,634 $2,952,315 $2,968,079 4 Total - Residential $9,130,473 $9,180,579 $9,229,613 $9,278,910 $9,328,470 $9,378,295 5 6 Non-Residential (ccf)
7 Low Strength I $106,118 $106,700 $107,274 $107,851 $108,432 $109,015 8 Low Strength II $1,179,622 $1,186,095 $1,192,476 $1,198,891 $1,205,340 $1,211,825 9 Low Strength III $296,580 $298,207 $299,811 $301,424 $303,046 $304,676 10 Medium Strength I $98,227 $98,765 $99,297 $99,831 $100,368 $100,908 11 Medium Strength II $159,863 $160,740 $161,605 $162,474 $163,348 $164,227 12 Medium Strength III $91,448 $91,949 $92,444 $92,941 $93,441 $93,944 13 High Strength I $52,309 $52,596 $52,879 $53,163 $53,449 $53,737 14 High Strength II $754,876 $759,018 $763,101 $767,206 $771,334 $775,483 15 Large Volume User $109,946 $110,549 $111,144 $111,741 $112,343 $112,947 16 Total - Non-Residential $2,848,988 $2,864,620 $2,880,031 $2,895,524 $2,911,101 $2,926,762 17 18 Schools (students)
19 Elementary $38,875 $39,088 $39,298 $39,510 $39,722 $39,936 20 Secondary & High $105,076 $105,652 $106,221 $106,792 $107,367 $107,944 21 Total - Schools $143,950 $144,740 $145,519 $146,302 $147,089 $147,880 22 23 Total - Non-Residential and
Schools $2,992,938 $3,009,360 $3,025,550 $3,041,826 $3,058,190 $3,074,642

5.4. Projected Revenues at Current Rates
Table 5-4 shows the projected wastewater revenues for the study period. City staff provided actual revenues for FY 2022 and budgeted revenues for FY 2023 and FY 2024. The wastewater rate revenues (Lines 3-4) from FY 2024 and beyond are from the rate revenue calculations (Table 5-3, Lines 4 and 23). Investment income (Lines 8, 16, 23, and 27) are calculated using the reserve interest rate (Table 2-2, Line 2). All other revenues are inflated for future years based on the non-rate revenue inflation factor (Table 2-2, Line 1).

Redlands Regular Meeting of 07-02-24
641 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-4: Projected Wastewater Revenues at Current Rates

A B C D E F G
Line Projected Revenues FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Wastewater Service (521)
2 Cost Recover/Reimb
Expenditure $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 3 Sewer Residential $9,130,473 $9,180,579 $9,229,613 $9,278,910 $9,328,470 $9,378,295 4 Sewer Non-Residential $2,992,938 $3,009,360 $3,025,550 $3,041,826 $3,058,190 $3,074,642 5 Recycled Water Usage $330,000 $330,000 $330,000 $330,000 $330,000 $330,000 6 Septage Charge $48,000 $48,000 $48,000 $48,000 $48,000 $48,000 7 Frontage Charge $69,000 $69,000 $69,000 $69,000 $69,000 $69,000 8 Investment Income $164,714 $137,328 $104,710 $83,431 $79,585 $75,754 9 Miscellaneous Receipts $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 10 Total - Wastewater Service
(521) $12,763,225 $12,802,367 $12,834,973 $12,879,268 $12,941,345 $13,003,791 11 12 Wastewater Project (523)
13 State Grants $0 $0 $0 $0 $0 $0
14 Federal Grants $0 $0 $0 $0 $0 $0
15 Other Grants $0 $0 $0 $0 $0 $0
16 Investment Income $0 $0 $0 $0 $0 $0
17 Sale of Surplus Property $0 $0 $0 $0 $0 $0
18 Miscellaneous Receipts $0 $0 $0 $0 $0 $0
19 Misc Taxable Sales $0 $0 $0 $0 $0 $0
20 Total - Wastewater Project
(523) $0 $0 $0 $0 $0 $0
21 22 Wastewater Debt Service (526)
23 Investment Income $0 $0 $0 $0 $0 $0
24 Total - Wastewater Debt
Service (526) $0 $0 $0 $0 $0 $0
25 26 Wastewater Capital
Improvement (529)
27 Investment Income $18,297 $18,480 $18,665 $18,852 $19,040 $19,231 28 Total - Wastewater Capital
Improvement (529) $18,297 $18,480 $18,665 $18,852 $19,040 $19,231 29 30 Total - Revenues $12,781,523 $12,820,848 $12,853,639 $12,898,120 $12,960,385 $13,023,022

5.5. Projected O&M Expenses
Table 5-5 shows the projected wastewater O&M expenses for the study period. City staff provided the actual O&M expenses for FY 2022 and budgeted O&M expenses for FY 2023 and FY 2024, which are escalated for future years of the study based on the expense inflation factors (Table 2-3).

Redlands Regular Meeting of 07-02-24
642 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-5: Projected Wastewater O&M Expenses

A B C D E F G
Line Projected O&M Expenses FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Wastewater Service (521)
2 Salaries and Benefits $4,660,205 $4,846,613 $5,040,478 $5,242,097 $5,451,781 $5,669,852 3 Services - Power $850,000 $897,270 $947,169 $999,687 $1,055,118 $1,113,621 4 Services $5,440,159 $5,500,364 $5,665,375 $5,835,336 $6,010,396 $6,190,708 5 Supplies - Treatment $1,054,400 $1,113,037 $1,174,936 $1,240,083 $1,308,842 $1,381,414 6 Supplies $1,353,450 $1,394,054 $1,435,875 $1,478,951 $1,523,320 $1,569,019 7 Total - Wastewater Service
(521) $13,358,214 $13,751,338 $14,263,832 $14,796,154 $15,349,457 $15,924,615 8 9 Wastewater Project (523)
10 Services $250,000 $257,500 $265,225 $273,182 $281,377 $289,819 11 Supplies $0 $0 $0 $0 $0 $0
12 Total - Wastewater Project
(523) $250,000 $257,500 $265,225 $273,182 $281,377 $289,819 13 14 Wastewater Debt Service
(526)
15 Services $17,590 $18,117 $18,661 $19,221 $19,797 $20,391 16 Total - Wastewater Debt
Service (526) $17,590 $18,117 $18,661 $19,221 $19,797 $20,391 17 18 Total - O&M Expenses $13,625,804 $14,026,955 $14,547,718 $15,088,557 $15,650,631 $16,234,825

5.6. Debt Service
The City currently has one existing debt issue for the wastewater utility. Table 5-6 shows the annual principal and interest payments for the existing debt. This debt will be paid off in FY 2025.

Table 5-6: Existing Wastewater Debt Service

A B C D E F G
Line Existing Debt Service FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 CA Recycled Water Project
2 Principal $347,449 $356,136 $0 $0 $0 $0
3 Interest $17,590 $8,903 $0 $0 $0 $0
4 Total - CA Recycled Water
Project $365,039 $365,039 $0 $0 $0 $0
5 6 Total - Existing Debt Service $365,039 $365,039 $0 $0 $0 $0

To fund the wastewater capital program, the City plans on obtaining an SRF loan in FY 2026. The SRF loan is a 30-year term at 2.1% interest. The proposed loan proceeds would be used to fund most of the wastewater treatment plant rehabilitation capital costs. The proposed annual debt service is shown in Table 5-7. Because the SRF loan is paid off after completion of the project it is funding, repayment will start in FY 2028.

Redlands Regular Meeting of 07-02-24
643 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-7: Proposed Wastewater Debt Service

A B C D E F G
Line Proposed Debt Service FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Proposed Loan Issuance $0 $0 $45,000,000 $0 $0 $0 2 Loan Proceeds $0 $0 $45,000,000 $0 $0 $0
3 4 Annual Debt Service
5 FY 2024 Bond Issuance $0 $0 $0 $0 $0 $0
6 FY 2025 Bond Issuance $0 $0 $0 $0 $0
7 FY 2026 Bond Issuance $0 $0 $2,036,979 $2,036,979 8 FY 2027 Bond Issuance $0 $0 $0
9 FY 2028 Bond Issuance $0 $0
10 FY 2029 Bond Issuance $0
11 12 Total - Proposed Debt
Service $0 $0 $0 $0 $2,036,979 $2,036,979

5.7. Capital Projects
City staff provided the CIP for the wastewater utility for the study period.

Redlands Regular Meeting of 07-02-24
644 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-8 shows the CIP costs for the study period, escalated by the capital expense inflation factor (Table 2-3, Line 7) to determine CIP costs in future years’ dollars. The CIP provided consists of projects totaling $66.3 million for the five years FY 2025 through FY 2029. Projects are funded through a combination of wastewater rate revenues, cash reserves, DIF revenues, and debt proceeds.

Redlands Regular Meeting of 07-02-24
645 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-8: Inflated Wastewater Capital Projects

A B C D E F G
Line Capital Projects (Inflated) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Replacement
2 Annual Citywide Sewer Pipeline Replacement $3,090,000 $3,182,700 $3,278,181 $3,376,526 $3,477,822 $3,582,157 3 Citywide Sewer Manhole Adjustment $0 $318,270 $0 $0 $0 $0 4 WWTP Rehabilitation - MBR System Equipment - Phase 1 $0 $0 $0 $0 $0 $0 5 WWTP Rehabilitation - MBR System Equipment Installation- Phase 1A $0 $0 $0 $0 $0 $0
6 WWTP Rehabilitation - MBR & Digester Improvements - Phase 1B $0 $0 $0 $0 $0 $0 7 WWTP Rehabilitation - Phase 2 (Design) $0 $0 $0 $0 $0 $0 8 WWTP Rehabilitation - Phase 2A, 2B, 2C & 2D (Construction) $0 $0 $48,565,640 $0 $0 $0 9 Alabama Septage Pond Remediation $0 $0 $0 $0 $0 $0 10 WWTP Drying bed leachate remediation $0 $0 $0 $0 $0 $0 11 Brine Cap Rehabilitation $0 $0 $0 $112,551 $0 $0 12 Storm water-Hillside stabilization and parking lot rehab/expansion $103,000 $0 $0 $0 $0 $0 13 WW Composite Samplers $0 $0 $0 $0 $0 $0
14 Laboratory Instruments $56,650 $63,654 $71,027 $78,786 $86,946 $95,524 15 Centrifuge Conveyor $0 $0 $0 $0 $0 $0
16 Chemical Tank Lining Project $0 $0 $0 $0 $0 $0
17 Centrifuge HMI Upgrade Phase 1&2 $0 $0 $0 $0 $0 $0 18 WWTP Sign- Front Entrance $0 $31,827 $0 $0 $0 $0 19 Chemical Feed Skids (Polymer/Sodium Hypochlorite/Ferric) $0 $0 $0 $0 $0 $0 20 WW Operations Facility Improvement $0 $0 $0 $0 $0 $0 21 Climate Controlled Storage Units $0 $0 $0 $0 $0 $0 22 Chemical Storage Tank (Ferric) $0 $0 $0 $0 $0 $0 23 Citywide Sewer Manhole REHAB $515,000 $0 $0 $0 $0 $0 24 Total - Replacement $3,764,650 $3,596,451 $51,914,848 $3,567,863 $3,564,768 $3,677,681

Redlands Regular Meeting of 07-02-24
646 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-9 shows the proposed wastewater capital financing plan based on the CIP ( Redlands Regular Meeting of 07-02-24
647 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-8). The City plans to fully fund its wastewater CIP for all years of the study (Line 1). The debt proceeds (Line 11) are from the proposed Debt issues (Table 5-7, Line 2).

Table 5-9: Proposed Wastewater Capital Financing Plan

A B C D E F G
Line Capital Financing Plan FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 CIP to Spend 100% 100% 100% 100% 100% 100%
2 3 Inflated Project Costs $3,764,650 $3,596,451 $51,914,848 $3,567,863 $3,564,768 $3,677,681 4 5 Bond Proceeds $0 $0 $0 $0 $0 $0
6 Balance $0 $0 $0 $0 $0 $0
7 8 Capital Financing
9 Rate Funded $3,764,650 $3,596,451 $6,914,848 $3,567,863 $3,564,768 $3,677,681 10 Bond Funded $0 $0 $0 $0 $0 $0
11 Loan Funded $0 $0 $45,000,000 $0 $0 $0

5.8. Current Financial Plan – Status Quo
Table 5-10 shows the projected wastewater financial plan under the status quo scenario. Revenues (Lines 2-7) are equal to projected revenues (Table 5-4). The O&M expenses (Lines 10-18) are equal to projected O&M expenses for the study period (Table 5-5). Existing debt service (Line 21) is equal to the principal and interest payments for the City’s outstanding wastewater debt (Table 5-6). Rate funded CIP (Line 23) is derived from the capital financing plan (Table 5-9).

The net cash flow (Line 27) is negative for all years of the Study under the status quo scenario, signifying that the City’s current wastewater rate revenues are not sufficient to fund the operating expenses, debt and capital costs associated with the proposed CIP. In addition, the calculated debt coverage (Line 30) is well below the required coverage (Line 31), which will put the City’s wastewater utility into technical default. In FY 2026 and FY 2027, there is no calculated debt coverage because the wastewater utility will not have any debt service payments.

Redlands Regular Meeting of 07-02-24
648 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-10: Projected Wastewater Financial Plan (Status Quo)

A B C D E F G
Line Wastewater Financial Plan FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Revenues
2 Rate Revenues $12,171,411 $12,237,939 $12,303,163 $12,368,736 $12,434,660 $12,500,937 3 Revenue Adjustments $0 $0 $0 $0 $0 $0
4 Investment Income $183,011 $149,690 $98,158 $43,425 $19,040 $19,231 5 Sale of Surplus Property $0 $0 $0 $0 $0 $0
6 Other Revenues $2,152,100 $2,152,100 $2,152,100 $2,152,100 $2,152,100 $2,152,100 7 Total - Revenues $14,506,523 $14,539,729 $14,553,421 $14,564,261 $14,605,801 $14,672,268 8 9 O&M Expenses
10 Salaries and Benefits $4,660,205 $4,846,613 $5,040,478 $5,242,097 $5,451,781 $5,669,852 11 Services - Power $850,000 $897,270 $947,169 $999,687 $1,055,118 $1,113,621 12 Services $5,707,749 $5,775,981 $5,949,261 $6,127,738 $6,311,570 $6,500,918 13 Supplies - Purchased Water $0 $0 $0 $0 $0 $0
14 Supplies - Treatment $1,054,400 $1,113,037 $1,174,936 $1,240,083 $1,308,842 $1,381,414 15 Supplies $1,353,450 $1,394,054 $1,435,875 $1,478,951 $1,523,320 $1,569,019 16 Fixed Assets $0 $0 $0 $0 $0 $0
17 Debt Service $0 $0 $0 $0 $0 $0
18 Total - O&M Expenses $13,625,804 $14,026,955 $14,547,718 $15,088,557 $15,650,631 $16,234,825 19 20 Debt and Capital
21 Existing Debt Service $365,039 $365,039 $0 $0 $0 $0 22 Proposed Debt Service $0 $0 $0 $0 $2,036,979 $2,036,979 23 Rate Funded Capital Projects $3,764,650 $3,596,451 $6,914,848 $3,567,863 $3,564,768 $3,677,681 24 DIF Funded Capital Projects $0 $0 $0 $0 $0 $0
25 Total - Debt and Capital $4,129,689 $3,961,490 $6,914,848 $3,567,863 $5,601,747 $5,714,660 26 27 Net Cash Flow ($3,248,970) ($3,448,717) ($6,909,145) ($4,092,158) ($6,646,577) ($7,277,217) 28 Net Operating Revenue $880,719 $512,773 $5,703 ($524,295) ($1,044,830) ($1,562,557) 29 30 Calculated Debt Coverage 2.41 1.40 #N/A #N/A (0.51) (0.77) 31 Required Debt Coverage 1.25 1.25 1.25 1.25 1.25 1.25 32 33 Beginning Balances $20,017,133 $16,768,163 $13,319,447 $6,410,302 $2,318,143 ($4,328,434) 34 Ending Balances $16,768,163 $13,319,447 $6,410,302 $2,318,143 ($4,328,434) ($11,605,650)

Figure 5-1 shows the proposed wastewater capital financing plan in graphical format, based on the capital projects shown in
Redlands Regular Meeting of 07-02-24
649 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-8. The dark teal bars represent the portion of CIP funded by rates.

Figure 5-1: Proposed Wastewater Capital Financing Plan

Figure 5-2 shows the projected wastewater financial plan without revenue adjustments in graphical format.

The turquoise line, representing current wastewater revenues, is well below the stacked bars representing the O&M (light grey), treatment and power (teal), debt service (yellow), and capital (dark grey) expenses. The green bars, which are below the stacked bars, show that the City will be drawing down its wastewater cash balances significantly without revenue adjustments.

Figure 5-2: Projected Wastewater Financial Plan (Status Quo)

Redlands Regular Meeting of 07-02-24
650 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Figure 5-3 shows the projected wastewater fund cash balance without revenue adjustments in graphical format. In FY 2028, the wastewater unrestricted cash balance (shown as turquoise bars) will be negative and become further depleted at the end of the study period. The grey bars represent the restricted reserves including operating, capital, equipment replacement and treatment plant reserves.

Figure 5-3: Projected Wastewater Fund Balances (Status Quo)

5.9. Proposed Financial Plan
Table 5-11 shows the proposed revenue adjustments necessary to maintain the financial sufficiency of the City’s wastewater utility. The revenue adjustments will be effective starting July 2024 and in July every year thereafter.

Table 5-11: Proposed Wastewater Revenue Adjustments
A B C
Line Fiscal Year Revenue
Adjustment Month Effective
1 FY 2025 10.0% July
2 FY 2026 10.0% July
3 FY 2027 10.0% July
4 FY 2028 10.0% July
5 FY 2029 8.0% July

Table 5-12 shows the projected wastewater financial plan with the proposed revenue adjustments (Table 5-11). The net cash flow (Line 27) is negative in some years of the study period but will reduce the wastewater cash balances significantly less than under the status quo scenario. With the proposed revenue adjustments and debt issuance, the wastewater utility will meet its debt coverage ratio requirements (Line 30) and have positive ending balances (Line 34).

Redlands Regular Meeting of 07-02-24
651 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-12: Projected Wastewater Financial Plan (Proposed Revenue Adjustments)

A B C D E F G
Line Wastewater Financial Plan FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Revenues
2 Rate Revenues $12,171,411 $12,237,939 $12,303,163 $12,368,736 $12,434,660 $12,500,937 3 Revenue Adjustments $0 $1,223,794 $2,583,664 $4,094,052 $5,770,926 $7,265,895 4 Investment Income $183,011 $155,809 $123,375 $102,283 $98,625 $94,985 5 Sale of Surplus Property $0 $0 $0 $0 $0 $0
6 Other Revenues $2,152,100 $2,152,100 $2,152,100 $2,152,100 $2,152,100 $2,152,100 7 Total - Revenues $14,506,523 $15,769,642 $17,162,303 $18,717,171 $20,456,311 $22,013,917 8 9 O&M Expenses
10 Salaries and Benefits $4,660,205 $4,846,613 $5,040,478 $5,242,097 $5,451,781 $5,669,852 11 Services - Power $850,000 $897,270 $947,169 $999,687 $1,055,118 $1,113,621 12 Services $5,707,749 $5,775,981 $5,949,261 $6,127,738 $6,311,570 $6,500,918 13 Supplies - Purchased Water $0 $0 $0 $0 $0 $0
14 Supplies - Treatment $1,054,400 $1,113,037 $1,174,936 $1,240,083 $1,308,842 $1,381,414 15 Supplies $1,353,450 $1,394,054 $1,435,875 $1,478,951 $1,523,320 $1,569,019 16 Fixed Assets $0 $0 $0 $0 $0 $0
17 Debt Service $0 $0 $0 $0 $0 $0
18 Total - O&M Expenses $13,625,804 $14,026,955 $14,547,718 $15,088,557 $15,650,631 $16,234,825 19 20 Debt and Capital
21 Existing Debt Service $365,039 $365,039 $0 $0 $0 $0 22 Proposed Debt Service $0 $0 $0 $0 $2,036,979 $2,036,979 23 Rate Funded Capital
Projects $3,764,650 $3,596,451 $6,914,848 $3,567,863 $3,564,768 $3,677,681 24 DIF Funded Capital Projects $0 $0 $0 $0 $0 $0
25 Total - Debt and Capital $4,129,689 $3,961,490 $6,914,848 $3,567,863 $5,601,747 $5,714,660 26 27 Net Cash Flow ($3,248,970) ($2,218,804) ($4,300,263) $60,752 ($796,066) $64,432 28 Net Operating Revenue $880,719 $1,742,686 $2,614,585 $3,628,615 $4,805,680 $5,779,092 29 30 Calculated Debt Coverage 2.41 4.77 #N/A #N/A 2.36 2.84 31 Required Debt Coverage 1.25 1.25 1.25 1.25 1.25 1.25 32 33 Beginning Balances $20,017,133 $16,768,163 $14,549,359 $10,249,096 $10,309,848 $9,513,781 Redlands Regular Meeting of 07-02-24
652 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

34 Ending Balances $16,768,163 $14,549,359 $10,249,096 $10,309,848 $9,513,781 $9,578,214

Figure 5-4 shows the proposed wastewater capital financing plan in graphical format, based on the capital financial plan shown in Table 5-9. The dark teal bars represent the portion of replacement CIP funded by rates and the turquoise bars represent the portion of replacement CIP funded by bond proceeds. Most of the capital projects in FY 2026 are funded from SRF Loan proceeds.

Figure 5-4: Proposed Wastewater Capital Financing Plan

Figure 5-5 shows the projected wastewater financial plan with the proposed revenue adjustments. Although the net cash flow is still negative in some years of the study, shown by the green bars under the stacked grey, yellow, and teal bars, the additional revenue will allow the wastewater utility to meet its debt coverage requirements and fund its operating and capital costs for the Study period.

Redlands Regular Meeting of 07-02-24
653 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Figure 5-5: Projected Wastewater Financial Plan (Proposed Revenue Adjustments)

Figure 5-6 shows the projected wastewater fund balances with the proposed revenue adjustments. The cash balances are positive for all years of the Study. These balances are drawn down to fund the City’s capital projects in FY 2025, FY 2026, and FY 2028.

Figure 5-6: Projected Wastewater Fund Balances (Proposed Revenue Adjustments)

Redlands Regular Meeting of 07-02-24
654 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

6. Wastewater – Cost of Service
Analysis and Rates
This section of the report details the cost-of-service analysis and rate calculation process to determine the proposed wastewater rates. The goal of this process is to determine the cost of providing wastewater service to each of the City’s wastewater customer classes and to ensure equity and fairness among the various classes.

6.1. Process and Approach
The cost-of-service analysis utilized to develop the wastewater rates followed the guidelines for allocating costs outlined in the WEF Manual No. 27. The cost-of-service analysis and rate design process consists of eight major steps, as outlined below:

1. Determine the revenue requirement, equal to the revenue to be recovered from rates.

2. Conduct a treatment plant mass balance analysis to estimate the flows and strength characteristics of each customer class.

3. Functionalize O&M expenses and capital assets into functional categories such as treatment, laboratory, collection, engineering, etc.

4. Allocate each functional category into cost components such as wastewater flow and strength, which includes BOD and TSS.

5. Develop customer class characteristics and units of service by cost component.

6. Calculate the cost component unit rates by dividing the total cost in each cost component by the total units of service for that component. For example, wastewater flow is measured in ccf and BOD and TSS are measured in lbs per year.

7. Calculate the cost for each customer class by multiplying the unit cost by the units of service for each customer class.

8. Design rates to meet City’s objectives.

6.2. Revenue Requirement
The first step of the cost-of-service analysis is to determine the revenue requirement for the test year, or rate- making year. The test year of this study is FY 2025. Table 6-1 shows the revenue requirement calculation for the wastewater utility.

The revenue requirements (Lines 2-4) are equal to the O&M expenses and debt and capital costs for FY 2025 (Table 5-12, Column C, Lines 18 and 25). The revenues from other sources (Lines 7-11), also known as non- rate revenues or revenue offsets, are equal to all non-rate revenues (Table 5-12, Column C, Lines 4-6). The adjustment for cash from/(to) reserves (Line 15) is equal to the negative value of net cash flow (Table 5-12, Column C, Line 27).

The revenue to be recovered from rates (Line 19) is divided between operating (Column B) and capital (Column C) based on the function of each line item. For example, debt and capital costs (Line 3) are allocated to capital, while O&M expenses (Line 2) are allocated to operating. Note that the total revenue requirement (Column D, Line 19) is equal to rate revenues for a full year of the revenue adjustment for FY 2025.

Redlands Regular Meeting of 07-02-24
655 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-1: Wastewater Revenue Requirement Calculation

A B C D
Line Revenue Requirement (FY 2025) Operating Capital Total 1 Revenue Requirements
2 O&M Expenses $14,008,838 $0 $14,008,838
3 Debt and Capital $0 $3,979,607 $3,979,607
4 Total - Revenue Requirements $14,008,838 $3,979,607 $17,988,445 5 6 Revenue from Other Sources
7 Investment Income $0 $137,328 $137,328
8 Sale of Surplus Property $0 $0 $0
9 Other Revenues $0 $0 $0
10 Wastewater Service (521) $427,100 $0 $427,100
11 Wastewater Project (523) $0 $0 $0
12 Total - Revenue from Other Sources $427,100 $137,328 $564,428 13 14 Adjustments
15 Cash from Reserves $0 $3,962,284 $3,962,284
16 Midyear Increase $0 $0 $0
17 Subtotal - Adjustments $0 $3,962,284 $3,962,284
18 19 Revenue to be Recovered from Rates $13,581,738 ($120,005) $13,461,733

6.3. Plant Mass Balance
The second step of the cost-of-service analysis is to conduct a plant mass balance analysis. The plant mass balance analysis is used to estimate and validate the wastewater loadings (flow and strength) generated by each customer class. While wastewater discharged into sewers for most users is not metered when it enters the wastewater system, the total amount of flow and strength entering the treatment plant is a known quantity.

The quantity entering into the wastewater system is called total plant influent.

From the total plant influent, a portion is subtracted for inflows and infiltration (I&I). Non-residential customer flows can be estimated based on their water usage and using industry-accepted return factors. From there, residential customer loadings can be calculated by subtracting I&I and estimated non-residential loadings from total plant influent to determine the reasonableness of residential loadings.

Table 6-2 shows the wastewater flow estimates for elementary and secondary schools. The estimated wastewater flow per student (Line 1) in gallons per capita per day (gpcd) is based on industry standards, with some conservation factored in for secondary schools. This is multiplied by the projected number of students for FY 2025 (Table 5-1, Column D, Lines 19-20). The annual flow in gallons (Line 3) is converted to ccf (Line 4) to determine the total wastewater flow in ccf for elementary and secondary schools.

Redlands Regular Meeting of 07-02-24
656 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-2: Schools Wastewater Flow Estimate
A B C
Line Schools Elementary Secondary
1 Per Student Flow (gcpd) 5 8
2 Students 4,848 8,189
3 Annual Flow (gal) 7,962,732 22,418,316
4 Annual Flow (ccf) 10,645 29,971

Redlands Regular Meeting of 07-02-24
657 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-3 shows the plant balance analysis for all customer classes. There is no change to the customer classes which are grouped by the strength of their wastewater flow. The left-most columns (Columns B to D) represent the same values as the right-most columns (Columns F to H) in converted values. Flow is measured in million gallons per day (MGD) and converted to ccf per year. BOD and TSS are measured in milligrams per liter (mg/L) and converted to lbs per year.

City staff provided total plant influent (Line 1) and estimated approximately 7 percent of total influent to be from I&I (Line 2). Customers are grouped based on their strength and estimated strength - BOD and TSS in mg/L (Columns C and D, Lines 2-17) - are based on industry standards. The non-residential return factors (Column E) are estimated for the City’s characteristics. The wastewater flows for non-residential customers (Column F, Lines 6-14) are calculated by multiplying the non-residential water usage (Table 5-1, Column C, Lines 7-15) by the return factors. The estimated wastewater flows for schools (Column D, Lines 16-17) were calculated in

Table 6-2. Septage loadings (Line 20) represent a small portion of total plant loadings; flow is derived from data provided by City staff, and strength is based on industry standards.

The net residential loadings (Line 22) are determined by subtracting non-residential loadings (Lines 5-17), septage (Line 20), and I&I (Line 2) from total plant influent (Line 1).

Redlands Regular Meeting of 07-02-24
658 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-3: Wastewater Plan Balance Calculation

A B C D E F G H
Line Plant Balance Flow (MGD) BOD (mg/L) TSS (mg/L) Return Factor Flow (ccf) BOD (lbs/yr) TSS (lbs/yr)
1 Total Plant Influent 5.85 329 248 2,852,760 5,863,450 4,423,940 2 Less: I&I 0.41 100 100 199,693 124,656 124,656 3 Net Plant Influent 5.44 346 260 2,653,067 5,738,795 4,299,284 4 5 Non-Residential
6 Low Strength I 0.08 50 50 84% 37,036 11,560 11,560 7 Low Strength II 0.71 150 150 84% 347,150 325,055 325,055 8 Low Strength III 0.15 250 250 84% 75,450 117,747 117,747 9 Medium Strength I 0.05 350 350 84% 22,006 48,079 48,079 10 Medium Strength II 0.07 450 450 84% 31,996 89,878 89,878 11 Medium Strength III 0.03 550 550 84% 16,539 56,784 56,784 12 High Strength I 0.02 650 650 84% 8,629 35,013 35,013 13 High Strength II 0.23 750 750 84% 114,672 536,867 536,867 14 Large Volume User 0.06 250 250 84% 27,970 43,650 43,650 15 16 Elementary School 0.02 130 130 100% 10,645 8,639 8,639 17 Secondary & High School 0.06 130 130 100% 29,971 24,322 24,322 18 Subtotal Non-Residential Flow 1.48 288 288 722,064 1,297,592 1,297,592 19 20 Septage 0.001 5,400 12,000 583 19,665 43,700 21 22 Net Residential Flow 3.96 367 245 1,930,419 4,421,538 2,957,993

Redlands Regular Meeting of 07-02-24
659 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

The plant mass balance analysis in
Redlands Regular Meeting of 07-02-24
660 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-3 results in total estimated residential loadings. Table 6-4 shows the number of total single family and multiple family dwelling units. To allocate the total flow and strength between single and multiple family customers, the dwelling units (Table 5-1, Column D, Lines 2-3) are multiplied by the dwelling unit (DU) ratio (Column C) to determine the adjusted units (Column D). The dwelling unit ratio represents the amount of wastewater flow compared to the average flow from a single family customer. The ratio for multiple family dwelling units is lower than that of single family because multiple family units tend to have a smaller household size based on housing density data. The proportion of adjusted units (Column E), or equivalent dwelling units (EDU), is used to allocate the estimated residential loadings between single and multiple family.

Table 6-4: Residential Proportion of Wastewater Flow

A B C D E
Line Residential Customer
Classes
Dwelling
Units DU Ratio Adjusted
Units
Proportion of
Total Units
1 Single Family 16,752 1.00 16,752 67.7%
2 Multiple Family 10,072 0.79 7,991 32.3%
3 Total - Residential 26,824 24,744 100.0%

Table 6-5 shows the estimated residential wastewater loadings, allocated using the EDU ratios (Table 6-4, Column E). The total residential flow (Line 3) is equal to that calculated in the plant mass balance analysis ( Redlands Regular Meeting of 07-02-24
661 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-3, Columns F to H, Line 22). To validate the results of the plant mass balance analysis, the total estimated residential flow is divided by the total population estimate, equal to 70,130 people, to determine that each resident in the City uses 56 gpcd. The residential wastewater strength shown in Table 6-3, Line 22, is also reasonable given the reduced wastewater flow. This is a reasonable estimate based on industry standard wastewater flow and strength estimates.

Table 6-5: Estimated Residential Wastewater Loadings

A B C D
Line Residential Customer
Classes Flow (ccf) BOD (lbs/yr) TSS (lbs/yr)
1 Single Family 1,306,953 2,993,516 2,002,651
2 Multiple Family 623,467 1,428,022 955,342
3 Total - Residential 1,930,419 4,421,538 2,957,993

The estimated flow from a single family dwelling unit is 160 gpd. The wastewater strength is higher because of lower wastewater flow due to conservation. This is now common for residential flow and strength. The estimated flow is calculated as follows:

1,306,953 ccf per year / 16,752 units x 748 ccf per gallon / 365 days per year = 160 gpd

6.4. Operating and Capital Cost Allocation
The next step in the cost-of-service analysis is to determine the operating and capital cost allocations by cost component. The cost components in this Study include flow, BOD, TSS, and general.

Table 6-6 shows the wastewater operating cost allocation. The flow cost component represents costs associated with wastewater flow, such as collection. The BOD and TSS cost components represent costs associated with wastewater strength, such as treatment and laboratory analyses. General costs, such as administration or engineering costs, do not have a specific function.

For the purpose of allocating operating costs, City staff provided the O&M expense budget estimates by function (Column F, Lines 13-21). This is representative of the distribution of operating costs shown in Table 5-5. Functions include administration, engineering, treatment and operations, treatment plant maintenance, quality control, industrial waste monitoring, collection, and laboratory. The operating costs are allocated to each cost component based on the percentage allocation (Lines 2-10) for each component. The final O&M expense allocation (Line 23) is determined by taking the weighted proportion of total operating costs by cost component based on the percentage allocations.

Redlands Regular Meeting of 07-02-24
662 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-6: Wastewater Operating Cost Allocation

A B C D E F
Line O&M Expense Allocation Flow BOD TSS General Total
1 Percentage Allocation
2 Wastewater Admin & General 100% 100%
3 Wastewater Engineering 100% 100%
4 Wastewater Treatment and Operations 50% 25% 25% 100% 5 Wastewater Treatment Plant
Maintenance 50% 25% 25% 100%
6 Wastewater Quality Control 50% 50% 100%
7 Wastewater Industrial Waste
Monitoring 100% 100%
8 Wastewater Collection System -
General 100% 100%
9 WW Joint Laboratory - Water 50% 50% 100%
10 WW Joint Laboratory - Solid Waste 50% 50% 100%
11 12 Dollar Allocation
13 Wastewater Admin & General $0 $0 $0 $3,365,775 $3,365,775 14 Wastewater Engineering $0 $0 $0 $734,148 $734,148 15 Wastewater Treatment and Operations $2,372,907 $1,186,454 $1,186,454 $0 $4,745,814 16 Wastewater Treatment Plant
Maintenance $604,593 $302,297 $302,297 $0 $1,209,186 17 Wastewater Quality Control $0 $361,003 $361,003 $0 $722,006 18 Wastewater Industrial Waste
Monitoring $930,789 $0 $0 $0 $930,789
19 Wastewater Collection System -
General $1,990,298 $0 $0 $0 $1,990,298
20 WW Joint Laboratory - Water $0 $160,103 $160,103 $0 $320,206 21 WW Joint Laboratory - Solid Waste $0 $4,366 $4,366 $0 $8,732 22 Total - O&M Expenses $5,898,587 $2,014,222 $2,014,222 $4,099,924 $14,026,955 23 O&M Expense Allocation 42.1% 14.4% 14.4% 29.2% 100.0%

Table 6-7 shows the wastewater capital cost allocation. To minimize fluctuations in the capital cost allocation as capital projects change from year to year, capital costs are allocated on the basis of capital assets. For the purpose of allocating capital costs, City staff provided the wastewater capital assets listed by function (Column F, Lines 10-15). This is representative of the distribution of capital costs shown in Redlands Regular Meeting of 07-02-24
663 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 5-8. Functions include land, wastewater facilities, construction in progress, machinery and equipment, collection system, and vehicles. The capital asset costs are allocated into each cost component based on the percentage allocation (Lines 2-7) for each component. The final capital expense allocation (Line 17) is determined by taking the weighted proportion of total capital asset costs by cost component.

Table 6-7: Wastewater Capital Allocation

A B C D E F
Line Capital Expense Allocation Flow BOD TSS General Total 1 Percentage Allocation
2 Land (For WWTP and Perc Ponds) 50% 25% 25% 100%
3 Wastewater Facilities/Plant 50% 25% 25% 100%
4 Construction in Progress 100% 100%
5 Machinery and Equipment 50% 25% 25% 100%
6 Collection System 100% 100%
7 Vehicles 100% 100%
8 9 Dollar Allocation
10 Land (For WWTP and Perc Ponds) $2,219,416 $1,109,708 $1,109,708 $0 $4,438,832 11 Wastewater Facilities/Plant $5,307,140 $2,653,570 $2,653,570 $0 $10,614,280 12 Construction in Progress $0 $0 $0 $0 $0
13 Machinery and Equipment $82,840 $41,420 $41,420 $0 $165,680 14 Collection System $18,220,858 $0 $0 $0 $18,220,858 15 Vehicles $186,819 $0 $0 $0 $186,819
16 Total - Capital Assets $26,017,073 $3,804,698 $3,804,698 $0 $33,626,469 17 Capital Expense Allocation 77% 11% 11% 0% 100%

6.5. Unit Cost Components
Table 6-8 shows the wastewater service units by cost component, which are from the plant mass balance analysis (
Redlands Regular Meeting of 07-02-24
664 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-3).

Redlands Regular Meeting of 07-02-24
665 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-8: Wastewater Service Units by Cost Components

A B C D
Line Customer Class Flow (ccf) BOD (lbs/yr) TSS (lbs/yr) 1 Residential
2 Single Family Residence 1,306,953 2,993,516 2,002,651 3 Multi-Family Residence 623,467 1,428,022 955,342
4 Total - Residential 1,930,419 4,421,538 2,957,993
5 6 Non-Residential
7 Low Strength I 37,036 11,560 11,560
8 Low Strength II 347,150 325,055 325,055
9 Low Strength III 75,450 117,747 117,747
10 Medium Strength I 22,006 48,079 48,079
11 Medium Strength II 31,996 89,878 89,878
12 Medium Strength III 16,539 56,784 56,784
13 High Strength I 8,629 35,013 35,013
14 High Strength II 114,672 536,867 536,867
15 Large Volume User 27,970 43,650 43,650
16 Total - Non-Residential 681,448 1,264,632 1,264,632 17 18 Schools
19 Elementary School 10,645 8,639 8,639
20 Secondary & High School 29,971 24,322 24,322
21 Total - Schools 40,616 32,960 32,960
22 23 Septage 583 19,665 43,700
24 25 Total 2,653,067 5,738,795 4,299,284

Table 6-9 shows the calculation of unit costs by cost component. The operating revenue requirement (Table 6-1, Column B, Line 19) is allocated based on the O&M expense allocation (Table 6-6, Line 23) for each cost component. Similarly, the capital revenue requirement (Table 6-1, Column C, Line 19) is allocated based on the capital asset allocation (Table 6-7, Line 17). Then, the general costs (Column E, Line 3) are reallocated to the flow, BOD, and TSS cost components proportionately to the remaining cost of service. The adjusted cost of service for each cost component (Line 5) is divided by the units of service (Line 7) derived from Table 6-8, resulting in the unit cost component.

Redlands Regular Meeting of 07-02-24
666 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-9: Wastewater Cost of Service and Unit Costs

A B C D E F
Line Cost of Service Allocation Flow BOD TSS General Total 1 Operating Cost $5,711,365 $1,950,291 $1,950,291 $3,969,792 $13,581,738 2 Capital Cost ($92,849) ($13,578) ($13,578) $0 ($120,005) 3 Total Cost of Service $5,618,516 $1,936,713 $1,936,713 $3,969,792 $13,461,733 4 Allocation of General Costs $2,349,818 $809,987 $809,987 ($3,969,792) $0 5 Adjusted Cost of Service $7,968,335 $2,746,699 $2,746,699 $0 $13,461,733 6 7 Units of Service 2,653,067 5,738,795 4,299,284
8 ccf lbs/yr lbs/yr
9 10 Unit Cost $3.00 $0.48 $0.64
11 ccf lbs/yr lbs/yr

6.6. Revenue Requirement Allocation
The final step in the cost-of-service analysis is to allocate the revenue requirement to each customer class based on their share of burden in the wastewater system. Table 6-10 shows the revenue requirement allocated to each customer class based on the cost components, which is calculated by multiplying the unit costs of each cost component (Table 6-9, Line10 ) by the units of service for each customer class (Table 6-8). Note that the total cost of service (Column E, Line 25) is equal to the total revenue required from rates (Table 6-1, Column D, Line 19). The calculations in the table may not be equal to the precise number shown due to rounding within the tables.

Redlands Regular Meeting of 07-02-24
667 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-10: Allocation of Wastewater Revenue Requirement to Customer Classes

A B C D E
Line Customer Class Flow BOD TSS Total
1 Residential
2 Single Family Residence $3,925,357 $1,432,755 $1,279,441 $6,637,553 3 Multi-Family Residence $1,872,546 $683,479 $610,342 $3,166,368 4 Total - Residential $5,797,903 $2,116,234 $1,889,783 $9,803,921 5 6 Non-Residential
7 Low Strength I $111,237 $5,533 $7,385 $124,155
8 Low Strength II $1,042,644 $155,578 $207,669 $1,405,891 9 Low Strength III $226,610 $56,356 $75,225 $358,191 10 Medium Strength I $66,094 $23,012 $30,717 $119,823 11 Medium Strength II $96,097 $43,017 $57,421 $196,535 12 Medium Strength III $49,674 $27,178 $36,278 $113,130 13 High Strength I $25,917 $16,758 $22,369 $65,043
14 High Strength II $344,410 $256,955 $342,990 $944,355 15 Large Volume User $84,007 $20,892 $27,887 $132,785 16 Total - Non-Residential $2,046,690 $605,277 $807,940 $3,459,907 17 18 Schools
19 Elementary School $31,973 $4,135 $5,519 $41,627
20 Secondary & High School $90,016 $11,641 $15,538 $117,196 21 Total - Schools $121,989 $15,776 $21,058 $158,822 22 23 Septage $1,752 $9,412 $27,918 $39,083
24 25 Total $7,968,335 $2,746,699 $2,746,699 $13,461,733

6.7. Rate Calculation
Table 6-11 shows the rate calculation for the City’s proposed wastewater rates for the FY 2025 test year.

Bi-monthly residential service charge = Residential cost of service / dwelling units / 6 billing periods

Non-residential wastewater usage rate = Non-residential cost of service / ccf of water usage

Bi-monthly schools service charge = Schools cost of service / students x 100 students / 6 billing periods

The City’s wastewater utility incurs additional costs (Line 22) to serve septage customers above and beyond the allocated cost of service. These additional costs are equal to the total burdened labor cost for administrative work related to collecting septage. Note that the revenues from septage charges were estimated in the projected wastewater revenues (Table 5-4, Line 5). The additional costs are calculated as follows:

Redlands Regular Meeting of 07-02-24
668 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

$30 per hour x 0.25 hours x 2 for overhead costs / 2,000 gallons per load x 363,636 gallons of septage per year

Table 6-11: Wastewater Bi-Monthly Rate Calculation

A B C D
Line Customer Class Cost of Service FY 2025 Units Proposed Bi- Monthly Rate
1 Residential dwelling units per dwelling unit
2 Single Family Residence $6,637,553 16,752 $66.04
3 Multi-Family Residence $3,166,368 10,072 $52.40
4 5 Non-Residential ccf of water per ccf
6 Low Strength I $124,155 44,091 $2.82
7 Low Strength II $1,405,891 413,274 $3.41
8 Low Strength III $358,191 89,821 $3.99
9 Medium Strength I $119,823 26,198 $4.58
10 Medium Strength II $196,535 38,090 $5.16
11 Medium Strength III $113,130 19,689 $5.75
12 High Strength I $65,043 10,273 $6.34
13 High Strength II $944,355 136,514 $6.92
14 Large Volume User $132,785 33,298 $3.99
15 16 Schools students per 100 students
17 Elementary School $41,627 4,848 $143.11
18 Secondary & High School $117,196 8,189 $238.52
19 20 Septage gallons per gallon
21 Cost of Service $39,083 436,364 $0.09
22 Additional Costs $3,273 436,364 $0.01
23 Total Septage $42,355 436,364 $0.10

Redlands Regular Meeting of 07-02-24
669 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-12 shows the bi-monthly rate comparison between the proposed rates calculated in Table 6-11 and the City’s current wastewater rates.

Redlands Regular Meeting of 07-02-24
670 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-12: Wastewater Bi-Monthly Rate Comparison

A B C D
Line Customer Class Proposed Bi-
Monthly Rate
Current Bi-
Monthly Rate Difference ($)
1 Residential per dwelling unit
2 Single Family Residence $66.04 $62.43 $3.61
3 Multi-Family Residence $52.40 $48.08 $4.32
4 5 Non-Residential per ccf
6 Low Strength I $2.82 $2.42 $0.40
7 Low Strength II $3.41 $2.87 $0.54
8 Low Strength III $3.99 $3.32 $0.67
9 Medium Strength I $4.58 $3.77 $0.81
10 Medium Strength II $5.16 $4.22 $0.94
11 Medium Strength III $5.75 $4.67 $1.08
12 High Strength I $6.34 $5.12 $1.22
13 High Strength II $6.92 $5.56 $1.36
14 Large Volume User $3.99 $3.32 $0.67
15 16 Schools per 100 students
17 Elementary School $143.11 $134.38 $8.73
18 Secondary & High School $238.52 $215.02 $23.50
19 20 Septage per gallon
21 Septage Charge * $0.10 $0.11 ($0.01)
* minimum septage charge is $15

6.8. Proposed Rates
Table 6-13 and Table 6-14 show the proposed bi-monthly wastewater service charges and the non-residential wastewater rates, respectively. The proposed wastewater rates for July 2024 are from Table 6-11. The proposed wastewater rates in the following years are increased across the board by the revenue adjustments in Table 5-11.

Table 6-13: Proposed Bi-Monthly Wastewater Service Charges

A B C D E F G
Line Bi-Monthly Wastewater
Service Charges
Current
Rates July 2024 July 2025 July 2026 July 2027 July 2028 1 Residential ($/dwelling unit)
2 Single Family $62.43 $66.04 $72.65 $79.92 $87.92 $94.96 3 Multiple Family $48.08 $52.40 $57.64 $63.41 $69.76 $75.35 4 5 Schools ($/100 students)
6 Elementary $134.38 $143.11 $157.43 $173.18 $190.50 $205.74 7 Secondary & High $215.02 $238.52 $262.38 $288.62 $317.49 $342.89 Redlands Regular Meeting of 07-02-24
671 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 6-14: Proposed Non-Residential Wastewater Rates

A B C D E F G
Line Wastewater Usage Rates Current
Rates
July 2024 July 2025 July 2026 July 2027 July 2028
1 Non-Residential Usage ($/ccf)
2 Low Strength I $2.42 $2.82 $3.11 $3.43 $3.78 $4.09 3 Low Strength II $2.87 $3.41 $3.76 $4.14 $4.56 $4.93 4 Low Strength III $3.32 $3.99 $4.39 $4.83 $5.32 $5.75 5 Medium Strength I $3.77 $4.58 $5.04 $5.55 $6.11 $6.60 6 Medium Strength II $4.22 $5.16 $5.68 $6.25 $6.88 $7.44 7 Medium Strength III $4.67 $5.75 $6.33 $6.97 $7.67 $8.29 8 High Strength I $5.12 $6.34 $6.98 $7.68 $8.45 $9.13 9 High Strength II $5.56 $6.92 $7.62 $8.39 $9.23 $9.97 10 Large Volume User $3.32 $3.99 $4.39 $4.83 $5.32 $5.75 11 Minimum Charge ($) $48.08 $52.40 $57.64 $63.41 $69.76 $75.35 12 13 Septage Charge ($/gal) $0.11 $0.10 $0.11 $0.13 $0.15 $0.17 14 Minimum Septage Charge $15.00 $16.50 $18.15 $19.97 $21.57

Redlands Regular Meeting of 07-02-24
672 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

7. Non-Potable Water – Financial
Plan
This section of the report details the non-potable enterprise’s long-term financial plan, based on the projected revenues, expenses, debt service, and capital project costs. Raftelis modeled the financial plan without revenue adjustments (status quo) and with proposed revenue adjustments to ensure the financial sustainability and solvency of the non-potable water utility.

7.1. Projected Revenues
City staff provided the actual FY 2022 revenues and budgeted FY 2023 and FY 2024 revenues for the non- potable water utility, which were used to project revenues for the remainder of the Study period. Table 7-1 shows the projected water revenues for each of the non-potable water funds.

The non-potable water rate revenues (Lines 2-3) are inflated for future years based on the weighted customer account growth assumptions for each customer class (Table 2-1). The City expects modest increases in non- potable water rate revenues for all years of the Study. The investment incomes (Lines 4 and 9) are calculated using the reserve interest rate (Table 2-2, Line 2). The remaining revenues are inflated using the non-rate revenue inflation factor (Table 2-2, Line 1).

Table 7-1: Projected Non-Potable Water Revenues

A B C D E F G
Line Projected Revenues FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Non-Potable Water Service (531)
2 Non-Potable Water Usage $360,000 $608,911 $612,105 $615,315 $618,542 $621,785 3 Non-Potable Water Service Chrg $230,000 $47,990 $48,241 $48,494 $48,749 $49,004 4 Investment Income $21,034 $17,488 $17,202 $15,547 $13,559 $11,281 5 Total - Non-Potable Water Service
(531) $611,034 $674,389 $677,548 $679,356 $680,850 $682,071 6 7 Non-Potable Capital Improvement
(549)
8 Capital Improv Chrg Non-Res $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 9 Investment Income $12,987 $13,117 $13,248 $13,381 $13,515 $13,650 10 Total - Non-Potable Capital
Improvement (549) $92,987 $93,117 $93,248 $93,381 $93,515 $93,650 11 12 Total - Revenues $704,022 $767,506 $770,796 $772,737 $774,364 $775,721

Redlands Regular Meeting of 07-02-24
673 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

7.2. Projected O&M Expenses
City staff provided the non-potable water O&M actual expenses for FY 2022 and budgeted O&M expenses for FY 2023 and FY 2024. Table 7-2 shows the projected O&M expenses for the study period, inflated for FY 2025 and beyond using the expense inflation factors (Table 2-3).

Table 7-2: Projected Non-Potable Water O&M Expenses

A B C D E F G
Line Projected O&M Expenses FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Non-Potable Water Service (531)
2 Salaries and Benefits $100,356 $104,370 $108,545 $112,887 $117,402 $122,098 3 Services - Power $20,200 $21,323 $22,509 $23,757 $25,075 $26,465 4 Services $175,740 $181,012 $186,443 $192,036 $197,797 $203,731 5 Supplies $50,000 $51,500 $53,045 $54,636 $56,275 $57,964 6 Total - Non-Potable Water Service
(531) $346,296 $358,206 $370,542 $383,316 $396,549 $410,258 7 8 Non-Potable Projects (543)
9 Salaries and Benefits $0 $0 $0 $0 $0 $0
10 Services - Power $0 $0 $0 $0 $0 $0
11 Services $150,000 $154,500 $159,135 $163,909 $168,826 $173,891 12 Supplies $44,542 $45,878 $47,255 $48,672 $50,132 $51,636 13 Total - Non-Potable Projects (543) $194,542 $200,378 $206,390 $212,581 $218,959 $225,527 14 15 Total - O&M Expenses $540,838 $558,584 $576,931 $595,898 $615,508 $635,785

7.3. Debt Service
The City does not have any existing debt for the non-potable water utility and does not plan to incur new debt to fund capital projects for the study period.

7.4. Capital Projects
Table 7-3 shows the inflated non-potable water capital project costs, based on CIP provided from City staff inflated by the capital expense inflation factor (Table 2-3, Line 7). The City plans to fund all CIP for the non- potable water system through rates.

Redlands Regular Meeting of 07-02-24
674 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 7-3: Inflated Non-Potable Water Capital Projects

A B C D E F G
Line Capital Projects (Inflated) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Replacement
2 Texas St. Reservoir & booster station $51,500 $0 $0 $0 $0 $0 3 Recycled Water Reservoirs $824,000 $0 $0 $0 $0 $0 4 Well 31A maintenance rehab $0 $0 $0 $0 $0 $0
5 Redlands Heights Well Rehabilitation $77,250 $0 $0 $0 $0 $0 6 California Street Well Rehab $0 $106,090 $0 $0 $0 $0 7 Citywide Non-Potable Water Meter
Replacements $0 $0 $0 $0 $0 $0
8 Chicken Hill Well Rehabilitation $0 $0 $109,273 $0 $0 $0 9 Well #30A Rehabilitation $0 $0 $109,273 $0 $0 $0 10 Well 32 liner rehab $0 $0 $109,273 $348,908 $0 $0 11 Projection $0 $0 $0 $0 $359,375 $370,156
12 Total - Replacement $952,750 $106,090 $327,818 $348,908 $359,375 $370,156

7.5. Current Financial Plan – Status Quo
Table 7-4 shows the projected non-potable water financial plan under the status quo scenario. Revenues (Line 6) are derived from Table 7-1. O&M expenses (Line 15) are from Table 7-2. Rate funded capital projects (Line 12) are from Table 7-3. The net cash flow (Line 18) is positive for FY 2025 through FY 2029, indicating that the City’s non-potable water revenues are sufficient to fund operating and capital project costs and the cash balance at or above the target over the Study period. Therefore, Raftelis does not recommend any rate increases for the Non-Potable water rates for the next five years.

Redlands Regular Meeting of 07-02-24
675 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 7-4: Projected Non-Potable Water Financial Plan (Status Quo)

A B C D E F G
Line Non-Potable Water
Financial Plan FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Revenues
2 Rate Revenues $590,000 $656,901 $660,346 $663,809 $667,290 $670,790 3 Revenue Adjustments $0 $0 $0 $0 $0 $0
4 Investment Income $34,022 $30,605 $30,450 $28,928 $27,074 $24,931 5 Other Revenues $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 6 Total - Revenues $704,022 $767,506 $770,796 $772,737 $774,364 $775,721 7 8 O&M Expenses
9 Salaries and Benefits $100,356 $104,370 $108,545 $112,887 $117,402 $122,098 10 Services - Power $20,200 $21,323 $22,509 $23,757 $25,075 $26,465 11 Services $325,740 $335,512 $345,578 $355,945 $366,623 $377,622 12 Total - O&M Expenses $446,296 $461,206 $476,632 $492,589 $509,100 $526,185 13 14 Debt and Capital
15 Rate Funded Capital
Projects $952,750 $106,090 $327,818 $348,908 $359,375 $370,156 16 Total - Debt and Capital $952,750 $106,090 $327,818 $348,908 $359,375 $370,156 17 18 Net Cash Flow ($789,566) $102,832 ($133,953) ($172,069) ($200,519) ($230,221) 19 Net Operating Revenue $163,184 $208,922 $193,865 $176,839 $158,856 $139,935 20 21 Beginning Balances $3,853,955 $3,064,389 $3,167,221 $3,033,268 $2,861,199 $2,660,680 22 Ending Balances $3,064,389 $3,167,221 $3,033,268 $2,861,199 $2,660,680 $2,430,460

Figure 7-1 shows the proposed non-potable water capital financing plan in graphical format, based on the capital projects shown in Table 7-3 and with no debt issues. The dark teal bars represent the rate funded replacement CIP costs.

Redlands Regular Meeting of 07-02-24
676 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Figure 7-1: Proposed Water Capital Financing Plan (Status Quo)

Figure 7-2 shows the projected non-potable water financial plan under the status quo scenario. The green bars, which represent net cash flow, are below the stacked gray bars from FY 2025 to FY 2029, which represents the reduction to the cash balance in those years of the study.

Figure 7-2: Projected Non-Potable Water Financial Plan (Status Quo)

Figure 7-3 shows the projected non-potable water fund cash balance under the status quo scenario. The turquoise bars, which represent the ending cash balance for the non-potable water system, fall above target in FY 2025 through FY 2029.

Redlands Regular Meeting of 07-02-24
677 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Figure 7-3: Projected Non-Potable Water Fund Balances (Status Quo)

7.6. Proposed Financial Plan
Table 7-5 shows the proposed non-potable water revenue adjustments over the study period. Currently, Raftelis does not recommend any revenue adjustments.

Table 7-5: Proposed Non-Potable Water Revenue Adjustments A B C
Line Fiscal Year Revenue
Adjustment
Month
Effective
1 FY 2025 0.0% July
2 FY 2026 0.0% July
3 FY 2027 0.0% July
4 FY 2028 0.0% July
5 FY 2029 0.0% July

7.7. Proposed Rates
Since there are no revenue adjustments proposed for the non-potable system, the current non-potable water rates will remain in effect as shown in in Table 7-6 and Table 7-7.

Redlands Regular Meeting of 07-02-24
678 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

Table 7-6: Proposed Bi-Monthly Non-Potable Water Service Charges ($/meter size)

A B C D E F G
Line Bi-Monthly Non-Potable
Water Service Charges
Current
Rates July 2024 July 2025 July 2026 July 2027 July 2028 1 Non-Potable Water Service
2 3/4" $13.81 $13.81 $13.81 $13.81 $13.81 $13.81
3 1" $20.65 $20.65 $20.65 $20.65 $20.65 $20.65
4 1 1/2" $37.29 $37.29 $37.29 $37.29 $37.29 $37.29 5 2" $55.16 $55.16 $55.16 $55.16 $55.16 $55.16
6 3" $95.50 $95.50 $95.50 $95.50 $95.50 $95.50
7 4" $147.45 $147.45 $147.45 $147.45 $147.45 $147.45 8 6" $272.16 $272.16 $272.16 $272.16 $272.16 $272.16 9 8" $401.04 $401.04 $401.04 $401.04 $401.04 $401.04

Table 7-7: Proposed Non-Potable Water Usage Rates ($/ccf of water)

A B C D E F G
Line Non-Potable Water Usage
Rates
Current
Rates July 2024 July 2025 July 2026 July 2027 July 2028 1 Non-Potable Water Usage
2 Non-Potable Water $0.99 $0.99 $0.99 $0.99 $0.99 $0.99 3 Conversion Customer $0.64 $0.64 $0.64 $0.64 $0.64 $0.64

Redlands Regular Meeting of 07-02-24
679 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

8. Appendix A – Alternative
Wastewater Rate Scenario
Raftelis is proposing a second financial plan and rates scenario for the wastewater utility. This scenario includes an additional $3 million bond issuance in FY 2025 to pay for capital expenditures. The purpose of this scenario is to spread costs out over a longer period of time to reduce the necessary rate increase. This scenario would lower the rate revenue increase in FY 2027 and FY 2028 from 10 percent to 8 percent. Table 8-1 and Table 8-2 show the proposed wastewater rates under this alternative scenario.

Table 8-1: Proposed Bi-Monthly Residential and Schools Wastewater Service Charges

A B C D E F G
Line Bi-Monthly Wastewater
Service Charges
Current
Rates July 2024 July 2025 July 2026 July 2027 July 2028 1 Residential ($/dwelling unit)
2 Single Family $62.43 $66.04 $72.65 $78.47 $84.75 $91.53 3 Multiple Family $48.08 $52.40 $57.64 $62.26 $67.25 $72.63 4 5 Schools ($/100 students)
6 Elementary $134.38 $143.11 $157.43 $170.03 $183.64 $198.34 7 Secondary & High $215.02 $238.52 $262.38 $283.38 $306.06 $330.55

Table 8-2: Proposed Non-Residential Wastewater Usage Rates ($/ccf of water)

A B C D E F G
Line Wastewater Usage Rates Current
Rates July 2024 July 2025 July 2026 July 2027 July 2028 1 Non-Residential Usage ($/ccf)
2 Low Strength I $2.42 $2.82 $3.11 $3.36 $3.63 $3.93 3 Low Strength II $2.87 $3.41 $3.76 $4.07 $4.40 $4.76 4 Low Strength III $3.32 $3.99 $4.39 $4.75 $5.13 $5.55 5 Medium Strength I $3.77 $4.58 $5.04 $5.45 $5.89 $6.37 6 Medium Strength II $4.22 $5.16 $5.68 $6.14 $6.64 $7.18 7 Medium Strength III $4.67 $5.75 $6.33 $6.84 $7.39 $7.99 8 High Strength I $5.12 $6.34 $6.98 $7.54 $8.15 $8.81 9 High Strength II $5.56 $6.92 $7.62 $8.23 $8.89 $9.61 10 Large Volume User $3.32 $3.99 $4.39 $4.75 $5.13 $5.55 11 Minimum Charge ($) $48.08 $52.40 $57.64 $62.26 $67.25 $72.63 12 13 Septage Charge ($/gal) $0.11 $0.10 $0.11 $0.12 $0.13 $0.15

Redlands Regular Meeting of 07-02-24
680 of 864
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 1

9. Addendum – Water Rates for
Largest users
Recent regulatory changes detailed in AB 755 passed in 2023 and codified in Water Code, §§ 390 & 390.1 require us to identify the costs to serve the largest 10 percent of the users in the City. Proposition 218 requires rates that allocate costs of service proportionately, not special rates for the top 10% of consumers regardless of other factors.

The City currently has 22,050 accounts; the top 10%of users represent 2,205 accounts and 54.6% of total water use. These large users are primarily non-residential accounts. The City sells water from local sources and has adequate supplies from various sources so that it does not need to purchase water. The lowest cost water is shared in proportion by both classes of customers. The 10% largest users use most of their water in Tier 3 and pay for the more expensive water sources. Based on the preceding factors, it is our professional judgment that the rate tiers proposed in Table 4-19Table 4-21 are the most efficient and fairest way to allocate the City’s costs among those who create those costs.

Redlands Regular Meeting of 07-02-24
681 of 864
Redlands Regular Meeting of 07-02-24
682 of 864
Redlands Regular Meeting of 07-02-24
683 of 864
Redlands Regular Meeting of 07-02-24
684 of 864
City Council Meeting L. 1.

DATE: 07/02/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Receive and file the Greenhouse Gas (GHG) Inventory Update and Progress Report related to the Climate Action Plan Update project (Development Services/ Director Desatnik)
MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:

I move to accept and file the Climate Action Plan progress report.

RECOMMENDATION:

Staff recommends that the City Council accept and file the Climate Action Plan progress report.

DISCUSSION:

A) Background
The City’s first Climate Action Plan (click here for link) was adopted in December 2017 in conjunction with the 2035 General Plan and provides projections for the years 2030 and 2035. The Climate Action Plan provides goals and recommendations to reduce emissions of greenhouse gases (GHG) into the atmosphere, thus helping to improve air quality as well as slow the progression of warming temperatures in the climate. The goals and recommendations include actions by the City, developers, residents, and businesses in Redlands that will result in incremental reductions to GHG emissions over the next 20 years or more. The Climate Action Plan can also help with streamlining environmental review of proposed development projects under the California Environmental Quality Act (CEQA).

At the time the Climate Action Plan was prepared, the State of California had Redlands Regular Meeting of 07-02-24
685 of 864
At the time the Climate Action Plan was prepared, the State of California had established statewide goals and objectives to reduce GHG emissions, through the passage of the California Global Warming Solutions Act of 2006 (AB 32), the Governor’s Executive Order (EO) S-3-05 in 2005, and the passage of the California Global Warming Solutions Act of 2016 (SB 32). The California Air Resources Board also established GHG and air quality guidelines in 2017, which were considered during the preparation of the City’s Climate Action Plan.

Since 2017, the State Legislature has passed laws that establish more aggressive targets. Executive Order (EO) B-55-18, issued in 2018, outlines the State’s objective to achieve carbon neutrality no later than 2045. In addition, AB 1279 (2022) directed that the State should achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and reduce GHG emissions by 85 percent below 1990 levels by 2045. These targets extend and expand previous targets set by EO B-30-15 and the California Global Warming Solutions Act of 2016 (SB 32) as well as past goals established by AB 32 and EO S-3-05.

As more than five years have passed since the adoption of the Climate Action Plan in 2017, together with new GHG emissions reduction goals established by the State, the document is due for an update and progress report. Urban planning consultant Dyett & Bhatia prepared the Climate Action Plan as well as the 2035 General Plan. Subconsultant Fehr & Peers, a transportation planning consultant, also worked with Dyett & Bhatia on preparing the 2035 General Plan and the Climate Action Plan.

B) Climate Action Plan Update

The two primary objectives of the Climate Action Plan Update are the following:

1. To monitor/benchmark progress toward the 2030 and 2035 GHG reduction targets established in the City’s 2017 Climate Action Plan, which was prepared concurrently with the 2035 General Plan and consistent with (previous) State GHG reduction goals.

2. To update the 2017 Climate Action Plan to reflect the latest climate science and State guidance, as well as align with new City and State targets for 2030 and 2045. As a “qualified” GHG reduction plan, the updated Climate Action Plan will provide unified City actions, and CEQA clearance for streamlining future projects.

Major tasks for this project will include: GHG-related data collection and analysis; preparation of a baseline community GHG inventory; transportation modeling; development of updated GHG forecasts; preparation of a GHG inventory and reduction progress report; public outreach (to include stakeholder meetings, community workshops, and survey); development of new strategies and GHG reduction measures in compliance with new State goals; a future Redlands Regular Meeting of 07-02-24
686 of 864
study session with the Planning Commission; prepare an updated Climate Action Plan; preparation of an Initial Study for CEQA compliance; and public hearings to review the final plan with the Planning Commission and the City Council.

C) Greenhouse Gas Inventory Update and Progress Report

The first deliverable is the GHG Inventory Update and Progress Report (see Attachment A). The document summarizes the GHG emissions inventory for related emission sectors within the City of Redlands, such as potable water, solid waste, wastewater, electricity generation or consumption, natural gas usage, and transportation. The report also updates the City’s GHG forecasts based on the data, citywide population growth, and employment growth estimates. The report provides an assessment of Redlands’ trajectory toward GHG reduction targets established in the 2017 CAP and identifies the need for additional GHG reduction.

The Progress Report is organized into five sections:

1. Methodology

2. Baseline Emissions Inventory

3. Business-As-Usual Forecast

4. Adjusted Forecast

5. Summary

Baseline Emissions Inventory: After compiling data from all related emission sectors, the annual GHG emissions calculated for the baseline year 2022 total is 556,310 metric tons of carbon dioxide equivalent (MTCO2e). The primary producers of GHG emissions are the Transportation and Built Environment sectors, as seen below (Figure 1 from Attachment A).

Figure 1: 2022 Baseline GHG Emissions by Sector
Source: Dyett & Bhatia, 2024
Redlands Regular Meeting of 07-02-24
687 of 864
As reported in the 2017 CAP, the 2015 baseline inventory for Redlands was 419,417 MTCO2e. The large difference in total GHG emissions is due partially to the differences in data collection methodologies. The tools and data sources used to prepare the 2015 baseline have changed or are no longer available, and the updated 2022 baseline inventory recategorized the emissions sectors to better align with recent State recommendations for local government actions for GHG reductions. To enable a valid comparison between 2015 and 2022 and assess progress, the 2015 baseline inventory has been adjusted using the new methodology and based on inputs reported in the 2017 CAP. The resulting 2015 adjusted baseline inventory is 499,157 MTCO2e (i.e., after adjusting for the methodology changes).

Although the relatively moderate level of GHG emissions generated by Redlands is comparable to neighboring jurisdictions based on a comparison of per capita emissions (such as its geographic location and population size), the updated baseline GHG Inventory for 2022 shows an overall increase in community-wide GHG emissions since 2015, and therefore, additional GHG reduction is recommended.

Business-As-Usual Forecast: The business-as-usual forecast estimates emissions through years 2030 and 2050, utilizing the land use and circulation model used by the San Bernardino County Transportation Authority (SBCTA), and the predicted effects of key climate regulations at the federal and State levels, which will primarily affect the Built Environment and Transportation sectors.

Under the business-as-usual scenario, growth in annual GHG emissions in Redlands is predicted to continue, except for a slight fluctuation in 2030 when the decrease in transportation emissions is forecast to outweigh growth-induced increases in emissions from other sectors which would continue this downward trend to 2050, as seen below (Figure 4 from Attachment A):

Figure 4: Business-As-Usual GHG Emission Per Capita, 2015 - 2050 Source: Dyett & Bhatia, 2024
Redlands Regular Meeting of 07-02-24
688 of 864
The Transportation sector would continue to represent the greatest source of community-wide emissions, with the Built Environments sector continuing as the second largest, as seen below (Figure 5 from Attachment A).

Figure 5: 2030 and 2050 Business-As-Usual GHG Emissions by Sector Source: Dyett & Bhatia, 2024
Adjusted Forecast: The adjusted business-as-usual forecast reflects GHG reductions resulting from State actions that could be quantified independently from growth assumptions (such as electricity emissions from Renewable Portfolio Standards (RPS), natural gas emissions reductions from Renewable Gas Standards (RGS) and built environment reductions from new Building Energy Efficiency requirements in the California Building Code).

Under the adjusted business-as-usual scenario, annual community-wide GHG emissions are estimated to decrease to 4.9 MTCO2e per capita in 2050 (or a 20% reduction from 2015 levels). These significant reductions, particularly in the Built Environment and Potable Water sectors, reflect the anticipated achievement of 100% carbon-free electricity from Southern California Edison by 2045 plus 20% renewable gas delivered by Southern California Gas Company by 2030.

In the Transportation sector, an increase in overall Vehicle Miles Traveled (VMT) will occur in Redlands. However, Transportation sector emissions are expected to decrease slightly due to other State efforts such as the increased use of electric vehicles, the Advanced Clean Cars Program, and EO N-79-20 (2020).

Redlands Regular Meeting of 07-02-24
689 of 864

Despite the increase between 2015 and 2022 baseline conditions (7.1 MTCO2e per capita to 7.7 MTCO2e per capita), future per capita emissions under the adjusted business-as-usual scenario would decrease as seen below (Table 15 from Attachment A).

Table 15: Summary of Adjusted Business-As-Usual Community-wide GHG Emissions Inventory, 2015-2050
Source: Dyett & Bhatia, 2024
Conclusion: Based on the current measures, the City would not meet its adopted targets as contained in the adopted 2017 Climate Action Plan (6.0 MTCO2e per capita by the year 2030, and 5.0 MTCO2e per capita by the year 2035). Under the current assessment described above, the target of 5.0 MTCO2e per capita would not be met until the year 2050. Therefore, additional reductions would be necessary to reduce current and future GHG emissions, especially in the Transportation and Built Environment sectors.

C) Next Steps

At this time, the City Council is being asked to: 1) concur with the GHG reduction targets; and 2) identify any potential strategies to further reduce local GHG emissions. The Planning Commission also reviewed the Progress Report on June 11, 2024, to provide comments and input.

The overall scope of work for the consultant includes the following tasks:

Confirm GHG reduction targets;a.

Community outreach to identify candidate strategies;b.

Develop candidate strategies to further reduce local GHG emissions;c.

Evaluate potential GHG reduction measures;d.

Online community survey on climate action strategies;e.

Identify the preferred strategy;f.

Prepare draft Climate Action Plan;g.

Prepare environmental review; and,h.

Public hearings to adopt final draft Climate Action Plan.i.

Following the conclusion of the community outreach phase and the preparation Redlands Regular Meeting of 07-02-24
690 of 864
Following the conclusion of the community outreach phase and the preparation of a Draft Climate Action Plan Update document by the consultant, additional meetings and hearings will be scheduled with the Planning Commission and the City Council.

ALTERNATIVES:

The City Council can direct staff to address or clarify any further issues.

STRATEGIC PLAN:

The proposal is consistent with Priority D (Sustainability), Strategic Objective No. 5 (Climate Change) which states, “Explore City initiatives to address the effect of climate change.” The CAP Update project includes reviewing and revising City goals, programs, and initiatives for the purpose of reducing GHG emissions and addressing climate change.

SUBMITTED BY:

Brian Desatnik, Development Services Director
RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Chris Boatman, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:

Jazmin Serrato, Assistant Planner
Brian Foote, City Planner/Planning Manager
Fiscal Impact
Fiscal Year: 23-24
Revenue Generating: No
Appropriation Required Y/N: No
Discussion:

The Climate Action Plan Update project was previously funded and there will be no fiscal impacts at this time.

Attachments
Attachment A: Greenhouse Gas (GHG) Inventory & Progress Report Redlands Regular Meeting of 07-02-24
691 of 864

MEMORANDUM
To: Brian Foote, City Planner/Planning Manager, City of Redlands From: Mayu Tanaka, Senior Associate, and Rajeev Bhatia, Principal Re: Redlands CAP Update - Greenhouse Gas Inventory Methodology and Progress Report Date: May 14, 2024
1 INTRODUCTION
In 2017, t he City of Redlands adopted its first Climate Action Plan (CAP) concurrently with the 2035 General Plan Update. The CAP demonstrates how actions by the City of Redlands are consistent with statewide greenhouse gas (GHG) reduction targets, in accordance with State law.

In addition to establishing GHG reduction strategies to support achievement of the City’s GHG reduction targets, the CAP also helps with streamlining environmental review of projects under the California Environmental Quality Act (CEQA).

The City is now interested in evaluating its progress toward meeting targets established under the 2017 CAP and updating the plan to respond to new State goals and mandates. The 2017 CAP includes a 2015 baseline GHG emissions inventory and projections for the years 2030 and 2035.

The City has not monitored progress since the 2017 CAP was prepared to ensure that it is on the path to attaining the GHG reduction targets for 2030 and 2035.

Additionally, the State has since passed laws that establish more aggressive long-term targets. The Governor’s Executive Order (EO) B-55-18 outlines the State’s objective to achieve carbon neutrality no later than 2045 . This goal was codified in 2022 by Assembly Bill (AB) 1279, which further clarifies that statewide GHG emissions should be reduced to at least 85 percent below 1990 levels by 2045. These targets extend and expand previous targets set by EO B -30-15 and Senate Bill (SB) 32 as well as past goals established by AB 32 and EO S-3-05.

This memo outlines the methodology and data sources used in preparation of the GHG Inventory for the Redlands CAP Update and presents the results of the draft inventory. This memo identifies the major sources and the overall magnitude of GHG emissions in the City of Redlands for the year 2022, which is the most recent year for which there is complete data available (at the time the CAP Update was initiated). The inventory follows the standards developed by the International Council for Local Environmental I nitiatives - Local Governments for Sustainability USA (ICLEI). The inventory methodology is described first, followed by the inputs, and results.

Section 2 will discuss the methodology, Section 3 discusses the baseline emission inventory, Section 4 discusses the business -as-usual forecast, Section 5 discusses the adjusted business -as-usual forecast, and Section 6 summarizes the findings.

Redlands Regular Meeting of 07-02-24
692 of 864

- 2 -
2 METHODOLOGY

2.1 Framework and Included Emissions
The emissions inventory covers direct GHG emissions from sources within the boundaries of Redlands, including fuel combusted and solid waste generated within the city. Indirect emissions associated with the consumption of energy in Redlands that is generated outside the borders of the city (such as electricity, with no end point emissions) are also included. The emissions inventory is calculated for the year 2022.

While the methodology for the updated GHG inventory is broadly c onsistent with the approach used for the current CAP (adopted in 2017), the 10 emissions sectors ( Residential, Commercial, Industrial, Transportation, Solid Waste , Water, Wastewater, Agriculture, Off-Road Equipment, and Public Lighting) have been consolidated to better align with available data, types of emissions sources or activities, and the anticipated framework for potential GHG reduction strategies. The resulting five sectors are : Built Environment (including electricity and natural gas usage from residential, commercial, industrial uses and public lighting), Transportation, Solid Waste, Potable Water, and Wastewater. (See Section 2.2 for more information about excluded emissions.) ICLEI U.S. Community Protocol (version 1.2, July 2019) methods and assumptions were used to estimate emissions from electricity and natural gas usage, solid waste generation, potable water delivery, and wastewater treatment. Although the 2017 CAP used ICLEI’s ClearPath model to estimate emissions from these sources, the updated inventory follows the quantification methods described in the U.S. Community Protocol appendices that correspond to each applicable sector because the model is no longer available for public use.1 The California Air Resources Board’s (CARB’s) Emissions Factor (EMFAC) 2021 model was used to calculate on-road transportation emissions, and the companion OFFROAD2021 model was used for the off-road equipment sector. Unlike the previous version used to prepare the GHG inventory for the 2017 CAP, EMFAC 2021 is offered as a web -based tool and includes a Scenario Analysis option that directly calculates emissions specific to the selected location and year for the input vehicle miles traveled (VMT). The result includes total emissions from on -road vehicles during start-up, running, and idling phases and is therefore more comprehensive than the on -road emissions estimated for the 2017 CAP, which only included running emissions. The methodology for off-road transportation is unchanged.

The basic approach to calculate emissions is based on activity data and emissions factors, using the following equation:
[Activity Data] x [Emissions Factor] = Emissions
Activity data refers to a measurement of energy use or another GHG -generation process, such as electricity consumption or decomposition of landfilled solid waste . Emissions factors are used to

1 ClearPath is a web-based model developed by ICLEI in 2013 to inventory, forecast, and manage GHG emissions. Use of the ClearPath model was available for any U.S. city, county, or regional government for free between 2015 and 2018 due to grant funding by Bloomberg Philanthropies. Since 2019, ClearPath is only available through paid ICLEI membership.

Redlands Regular Meeting of 07-02-24
693 of 864

- 3 -
convert activity data to emissions and are usually expressed as emissions per unit of activity data (e.g., metric tons of carbon dioxide equivalent [MTCO 2e] per kilowatt hour [kWh] of electricity).

As an example, multiplying the total amount of electricity consumed (i.e., activity data, expressed in kWh) by the emissions factor ( in MTCO2e per kWh) produces the GHG emissions from electricity consumption. Inputs for the emissions inventory based on activity data (or usage) for baseline year 2022 are described in the next section.

Although there are six internationally recognized GHGs that directly impact the climate — carbon dioxide (CO 2), methane (CH 4), nitrous oxide (N 2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF 6)— the GHG inventory quantifies only the weighted sum of CO2, CH4, and N2O as carbon dioxide equivalents ( CO2e) due to lack of reliable data about sources of HFCs, PFCs, and SF 6 (broadly referred to as fluorinated gases) , which are typically emitted by leaking refrigerants and fire suppressants. Further, the City has little to no control over this emissions source, so these GHGs are excluded from the inventory, consistent with the significant influence reporting framework of the ICLEI U.S. Community Protocol. Where CO 2,
CH4, and N 2O emissions are calculated separately (e.g., when there is no CO2e emission factor available), the 100-year Global Warming Potential (GWP) factors are used to convert CH4 and N2O emissions to CO2e. According to the International Panel on Climate Change (IPCC), the GWP of CH4 is 27, and the GWP of N2O is 293.2

2.2 Excluded Emissions
Consistent with the current 2017 CAP, the updated baseline and forecasted community-wide GHG inventories are intended to encapsulate emissions generated by sources and activities within Redlands over which the City has significant influence to measure prog ress of existing local GHG reduction strategies, or revise/develop new strategies as necessary, that support short - and long- term climate objectives established by the State. The GHG inventories are as comprehensive as possible; however, some emissions are excluded because sufficient, accurate data was unavailable; there is no established method for quantification; or the scope or applicability to the City of Redlands was inappropriate or irrelevant. The following emissions were excluded from the GHG inventories:

2.2.1 Consumption-Based Emissions
Although emissions related to solid waste generated by residents and businesses in Redlands account for some of the goods consumed within the city, there is no widely accepted standard methodology for reporting consumption -based inventories or reliable database for tracking consumption (i.e., all the consumer goods of a household). ICLEI Community Protocol also notes that inclusion of consumption-based reporting frameworks may also increase potential for double- counting. As such, the prepared inventories are prepared at the community (citywide) level.

2 Intergovernmental Panel on Climate Change, Climate Change 2021: The Physical Science Basis [Table 7.15], Working Group I Contribution to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, [Masson-Delmotte, V., P. Zhai, A. Pirani, S.L. Connors, C. Péan, S. Berger, N. Caud, Y. Chen, L. Goldfarb, M.I.

Gomis, M. Huang, K. Leitzell, E. Lonnoy, J.B.R. Matthews, T.K. Maycock, T. Waterfield, O. Yelekçi, R. Yu, and B.

Zhou (eds.)] (Cambridge, United Kingdom and New York, NY, USA: Cambridge University Press): 2021, https://doi.org/10.1017/9781009157896.

Redlands Regular Meeting of 07-02-24
694 of 864

- 4 -

2.2.2 Emissions from Mountainview Generating Station
Consistent with the 2017 CAP, emissions related to the Southern California Edison (SCE) Mountainview Generating Station— including embodied or “upstream” emissions from energy generation, in addition to emissions associated with consumption of the electricity itself — were excluded from the community-wide GHG inventory because these emissions are included at the points where energy is consumed (some of which are in Redlands) rather than where it is simply produced. Exclusion of emissions from the Mountainview Generating Station therefore ensures that they would not be double counted within the data provided by SCE for the Built Environment (electricity) sector. Additionally, large stationary sources (which are considered part of the Built Environment sector by ICLEI) are generally regulated at the state level, and the City has little to no influence over the facility. Finally, emissions from this production source are excluded because they would otherwise inflate emissions from electricity consumption, which is already the second largest contributor to GHG (as discussed in Section 3.6), such that it would critically undermine local climate action planning.

2.2.3 Natural and Working Lands
Although the City of Redlands is located within a context of significant natural and agricultural resources, a majority of land within city limits is classified as urban and built-up (developed) land.

CARB’s 2022 update of the AB 32 Scoping Plan (2022 Scoping Plan) emphasize the importance of natural and working lands to achieving statewide carbon neutrality; however, sufficient data and tools are not available to quantify local levels of carbon sinks and sources in this sector.

2.2.4 Emissions from Agricultural Operations
Agricultural land located within city limits is relatively limited and does not include major commercial-scale livestock activity, which would generate substantial emissions. Existing General Plan policies and other regulations allow certain urban agriculture activities within Redlands, and many of the emissions from these activities are covered by other sectors included in the inventory, such as off -road equipment within the Transportation sector . It is noted that the 2017 CAP included an Agriculture secto r, which included electricity consumption by agricultural users.

However, this data was not available for 2022 due to data aggregation laws, and therefore, an accurate estimate of agricultural emissions could not be quantified . Given that emissions from agricultural operations makes up only 0.13 percent of the 2015 baseline inventory, as presented in the 2017 CAP, this amount is considered relatively negligible for the CAP Update.

2.2.5 High-Global Warming Potential Greenhouse Gases
High-GWP GHGs, including sulfur hexafluoride (SF 6), chlorofluorocarbons (CFCs), hydrofluorocarbons (HFCs), and other fluorinated gases, are most commonly generated in urban environments by refrigerant leakage and fire suppressant emissions. Although these GHGs contribute a significant effect to climate c hange, there is no reliably accurate data source for this information, and the City has limited control over the issue. For these reasons, high -GWP GHGs are generally excluded from local community inventories.

Redlands Regular Meeting of 07-02-24
695 of 864

- 5 -
3 BASELINE EMISSIONS INVENTORY

3.1 Built Environment
Emissions from electricity consumption were calculated using information provided by Southern California Edison (SCE), including electricity usage for the residential, commercial, and industrial (RCI) sectors and for public lighting . The electricity emissions factor is from SCE’s 2022 Sustainability Report.3
Emissions from natural gas consumption were calculated using information from the Southern California Gas Company (SoCalGas), including natural gas usage for the RCI sectors. The natural gas emissions factor for SoCalGas is based on the metric reported to the California Public Utilities Commission (CPUC) in correspondence on February 25, 2019.4 Consumption data and emission factors for electricity and natural gas are provided in Table 1, which includes electricity consumption in kWh and natural gas consumption in therms. Given that one therm is approximately 29.3 kWh, the fuel sources for energy consumed by Redlands are roughly comparable, with electricity representing a slightly larger share.

Table 1: Electricity and Natural Gas Activity Data and Emission Factors, 2022 Consumption Sector SCE Electricity (kWh) SoCalGas Natural Gas (therms) Utility Emission Factor1,2 0.00020 MTCO2e per
kWh 0.0005464 MTCO2e per therm
Total Consumption3 479,469,550 15,250,617
Residential 215,097,648 10,252,027
Commercial 200,275,449 4,900,806
Industrial 58,092,046 97,764
Public Lighting 3,004,407 n/a

1. SCE emission factor as reported in their 2022 Sustainability Report: https://download.edison.com/406/ files/20237/eix-2022-sustainability-report.pdf.

2. SoCalGas emission factor as reported to the CPUC in correspondence on February 25, 2019 (Advice No. 5426) in Attachment C Table A:
https://tariff.socalgas.com/regulatory/tariffs/tm2/pdf/submittals/GAS_5426.pdf.

3. Consumption data for the City of Redlands provided from SCE and SoCalGas for 2022.

Sources: Southern California Edison, 2024; Southern California Gas Company, 2024

3.2 Transportation
Transportation emissions from on-road vehicles are based on Redlands’ share of on-road emissions within the southwestern portion of San Bernardino County under the authority of the South Coast

3 Edison International, 2022 Sustainability Report, 2023, https://download.edison.com/406/files/20237/eix-2022- sustainability-report.pdf.
4 Ronald van der Leeden, correspondence with California Public Utilities Commission: Rate Update to Include Costs for Greenhouse Gas Compliance and the 2018 California Climate Credit in Accordance with Decision (D.)15-10- 032, D.18-03-017, and Resolution G-3547, Advice No. 5426 (U 904 G), Southern California Gas Company, February 25, 2019, https://tariff.socalgas.com/regulatory/tariffs/tm2/pdf/submittals/GAS_5426.pdf.

Redlands Regular Meeting of 07-02-24
696 of 864

- 6 -
Air Quality Management District (SCAQMD) (“San Bernardino (SC) Sub-Area” in EMFAC 2021) estimated by CARB , calculated using the Scenario Analysis for total daily VMT attributed to Redlands (as described in the Methodology section) modeled by Fehr & Peers (see Attachment A).

VMT estimates were modeled using the San Bernardino County Transportation Authority’s (SBCTA’s) San Bernardino Transportation Analysis Model Plus (SBTAM+), which was recently updated in preparation for the 2024 Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS, also known as Connect SoCal) for the Southern California Association of Governments (SCAG) region. SBTAM+ estimated VMT generated by land uses in Redlands (available through 2050, consistent with growth projections in Connect SoCal).

Consistent with CARB’s Regional Targets Advisory Committee (RTAC) accounting method established for SB 743 as well as ICLEI guidance, 100 percent of the length of trips beginning and ending in Redlands and 50 percent of the length of trips that either begin or end in Redlands are included in the VMT totals and therefore counted toward Redlands’ transportation emissions; however, trips that just pass through Redlands are excluded, as their emissions would be reflected at their trip ends. Furthermore, althoug h pass-through trips contribute a substantial amount to VMT totals, the City has limited ability to influence them.

The Scenario Analysis was run for annual (not seasonal) conditions in 2022 without SB 375 Analysis, which deactivates the State’s Advanced Clean Cars and Pavley regulations to better characterize benefits from SB 375-related community strategies but only includes emissions and related activity for certain vehicle types (passenger cars, certain light duty trucks, and medium-duty trucks) and two fuel types (gasoline and diesel).

Off-road exhaust emissions in Redlands were modeled for all 19 equipment sectors — such as agricultural, construction, industrial, and lawn and garden equipment, among others — modeled using OFFROAD 2021. The CO2 emissions were calculated for the entire San Bernardino County area in calendar year 2022, all equipment and fuels, and aggregate model year and horsepower bin.

These emissions were then pro- rated by Redlands’ share of the county population, according to Population and Housing Estimates for 2020 -2023 (Table E -5) by the California Department of Finance, multiplied by 310 days (the operational period used for transportation modeling, consistent with California Department of Transportation and SCAG re commendations), and converted to metric tons.

VMT input and EMFAC 2021 Scenario Analysis results for on-road emissions, population, and off- road emissions results for 2022 are shown in Table 2.

Table 2: On-Road and Off-Road Transportation Inputs and EMFAC Results, 2022 Metric Value Units
Redlands total daily vehicle miles traveled (VMT) 2,447,632 VMT per day Total Daily CO2 Emissions
Redlands on-road transportation1 1,133.69 tons per day
San Bernardino County off-road equipment2 1,713.17 tons per day Population
City of Redlands 72,259 people
Redlands Regular Meeting of 07-02-24
697 of 864

- 7 -
Metric Value Units
San Bernardino County 2,180,777 people

1. Estimated for the San Bernardino (SC) Sub-Area using the EMFAC 2021 Scenario Analysis tool without SB 375 analysis, scaled to Redlands using total daily VMT as prepared by Fehr & Peers.

2. Estimated for the entire San Bernardino County, then prorated to Redlands based on Redlands’ share of countywide population.

Sources: California Air Resources Board (EMFAC 2021), 2024; California Department of Finance, 2023; Fehr & Peers, 2024

3.3 Solid Waste
Fugitive methane emissions generated from decomposition of landfilled solid waste disposed of by Redlands and sent to California Street Landfill (for residential and commercial/industrial waste) and San Timoteo Landfill (for bulk waste) were calculated using data from the U.S. Environmental Protection Agency (EPA) GHG Reporting Program ( pursuant to the Mandatory Reporting Rule, 40 CFR Part 98) Facility Level Information on Greenhouse gases Tool (FLIGHT) tool, scaled to the specific quantity of solid waste generated by Redlands in 2022 as provided by the City of Redlands Facilities and Community Services Department (FCS) and converted to MTCO2e.

A large majority of Redlands’ waste is sent to the City-owned and operated California Street Landfill facility, which is located within the city boundary. It is noted that San Timoteo Landfill is also located within the city boundary but is owned and operated by the County of San Bernardino. Bulk waste from the City of Redlands contributes a very small fraction of the total solid waste sent to the County landfill; emissions associated with waste generated outside of Redlands are not included in the inventory.

Process and collection/transport emissions related to solid waste are not quantified because specific information about energy consumption and transportation for operation of the landfill facilities is not available and are assumed to be included within the energy consumption data provided by SCE for the Built Environment sector as well as reflected in the VMT used to calculate emissions for the Transportation sector. This is consistent with ICLEI recommendations, especially for landfills that are located within a community boundary (i.e., California Street Landfill).

Solid waste disposal data and facility-level emissions used to estimate GHG emissions for Redlands are shown in Table 3.

Table 3: Solid Waste Activity Data and Facility-Level Emissions, 2022 Metric Value Units
California Street Landfill
Total Redlands waste sent to California Street Landfill 48,291.80 tons Residential solid waste 15,454.06 tons
Commercial/Industrial solid waste 32,837.74 tons
California Street Landfill total annual disposal quantity1 46,226 tons California Street Landfill CH4 emissions2 262.31 MT CH4 San Timoteo Landfill
Redlands Regular Meeting of 07-02-24
698 of 864

- 8 -
Metric Value Units
Total Redlands waste sent to San Timoteo Landfill (Bulk waste) 158.95 tons San Timoteo Landfill total annual disposal quantity3 369,577.09 tons San Timoteo Landfill CH4 emissions2 1,140.38 MT CH4

1. As reported to EPA under the GHG Reporting Program, pursuant to the requirements of the Mandatory Reporting Rule (40 CFR Part 98). Total annual landfill solid waste does not match City data due to difference in accounting methods.

2. CH
4 emissions as calculated for the disposal quantity reported to EPA. GHG emissions, in metric tons of CO2 equivalent, were calculated using the same GWP as other sectors and scaled to Redlands using the annual disposal data provided by the Facilities and Community Services Department.

3. Includes all waste at the County-owned facility, as reported to EPA under the GHG Reporting Program, pursuant to the requirements of the Mandatory Reporting Rule (40 CFR Part 98).

Sources: City of Redlands Facilities and Community Services Department, 2024; U.S. Environmental Protection Agency (FLIGHT), 2024.

3.4 Potable Water
Emissions from energy used to treat and deliver potable water were calculated based on the volume of potable water consumed in 202 2 provided by the City of Redlands Municipal Utilities and Engineering Department (MUED). It is noted that this total volume of potable water is for the entire City of Redlands service area, which includes some land outside of city boundaries such as the unincorporated Mentone area. However, emissions corresponding to water consumption outside of Redlands are not excluded in this case because the City is the water provider and therefore has full control over the system. This is consistent with the “significant influence” framework recommended by ICLEI and therefore better characterizes the effect that City actions would have on GHG emissions in this sector. Consistent with the 2017 CAP, specific information about water supplied by the Western Heights Mutual Water Company to a small part in the southeastern portion of Redlands is not available and is small enough to be considered negligible for emissions accounting purposes.

Energy used to deliver potable water was calculated by multiplying t his volume by the energy intensity factor of water delivery reported in the City’s 2020 Urban Water Management Plan (UWMP) (Part 2, Chapter 4 of the San Bernardino Valley Municipal Water District’s 2020 Integrated Regional Urban Water Management Plan). Energy used to treat surface water supply is a product of this volume and default energy intensity from ICLEI U.S. Protocol Appendix F. Energy consumed to treat and distribute potable water were then multiplied by SCE’s electricity emissions factor, consistent with the Built Environment sector. Emissions from electricity (locally supplied by SCE to the Hinckley and Tate water treatment plants) used to treat and deliver potable water were subtracted from commercial electricity in the Built Environment sector to avoid double counting.

Emissions from embodied energy used for extraction and conveyance processes were calculated separately using ICLEI U.S. Protocol Appendix F. According to data from MUED , groundwater sources account for about 69 percent of the City of Redlands’ water supply, and surface water contributes 31 percent. Although the City has purchased supplemental water from the State Water Project (SWP) from the Valley District when needed (i.e., when surface water is inadequate to meet demand, surface water supply is turbid and requires blending, or for other operation al purposes), Redlands Regular Meeting of 07-02-24
699 of 864

- 9 -
the City generally receives sufficient surface water from local sources, including the Mill Creek and Santa Ana watersheds. Inputs for 2022 are summarized in Table 4.

Although the local utility (i.e., SCE) electricity emissions factor was used to calculate emissions generated by energy used for surface water conveyance, as consistent with ICLEI methodology, this amount was not removed from the energy sector because it is not included in the data provided by SCE; therefore, there is no double counting.

Table 4: Potable Water Activity Data and Energy Intensity Factors, 2022 Metric Value Units
Total volume of water delivered1 7,786.6 million gallons (MG) Groundwater supply 5,391.8 MG
Surface water supply 2,394.8 MG
Energy Intensity
Groundwater extraction2 540 kWh per MG
Surface water conveyance (local) 2 110 kWh per MG
Surface water treatment2,3 210 kWh per MG
Water delivery4 421.2 kWh per acre-foot

1. Total volume of water delivered is the volume for the entire water service area, which includes portions of land outside of city boundaries (i.e., unincorporated Mentone area).

2. Defaults from ICLEI U.S. Community Protocol Appendix F: Wastewater and Water Emission Activities and Sources.

3. Median value for a wastewater treatment plant with less than 20 MG per day, as calculated based on the total volume of water delivered (in MG per year) divided by 365.25 days per year.

4. As reported in the Redlands 2020 UWMP; converted to 1,292.62 kWh per MG using standard conversion factors and multiplied by the SCE electricity emission factor to calculate GHG emissions.

Sources: ICLEI U.S. Community Protocol Appendix F, 2013; City of Redlands Urban Water Management Plan, 2020; City of Redlands Municipal Utilities and Engineering Department, 2024.

3.5 Wastewater
Emissions from energy used to collect and treat wastewater were calculated using energy usage provided by MUED; these are combined because the City does not distinguish energy usage by process. The local utility energy emission factors were used to convert to MTCO2e. Emissions from energy use (locally supplied by SCE and SoCalGas to the Redlands Wastewater Treatment Facility) for collection/treatment of wastewater were subtracted from the commercial energy categories of the Built Environment sector to avoid double counting.

MUED also provided information about the Redlands Wastewater Treatment Facility, which is a centralized system with lagoons, practices nitrification/denitrification without methanol for nitrogen removal, and produces digester gas (practices anaerobic digestion). As shown in Table 5, stationary emissions of CH
4 and N 2O from the treatment plant were calculated based on the volume, CH4 content, and energy content of digester gas produced in 2022 from MUED and the ICLEI U.S. Protocol Appendix F default CH4 emission factor, converted to MTCO2e.

Redlands Regular Meeting of 07-02-24
700 of 864

- 10 -
Process and fugitive emissions from treatment of wastewater were calculated based on the population served by the treatment plant (provided by MUED for 2022), using methods from the ICLEI U.S. Protocol Appendix F with significant inputs from industrial and commercial sources, and converted into MTCO 2e. It is noted that MUED provided an approximation for population served by the wastewater treatment plant, which may not necessarily be the same as the population served by the City’s potable water system. Howe ver, it is assumed that this input is sufficiently accurate to represent N2O generated from process and fugitive emissions in the absence of known nitrogen (N) content of the wastewater. Emissions and conversion factors are from ICLEI, except for the average total N load, which was updated using the latest protein consumption and fraction non-consumed protein entering water from the EPA’s Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2021.5
Activity data and factors used to calculate wastewater emissions for 2022 are summarized in Table

5. Table 5: Wastewater Activity Data and Emission Factors, 2022 Metric Value Units
Population served by the wastewater treatment
plant1
72,000 people
Volume of wastewater 70,024,444 gallons
Factor for high N loading of industrial/commercial
discharge2

1.25 (no units)
Process N2O emission factor for treatment with
nitrification/denitrification2
7 (no units)
Fraction of N removed from the plant with
nitrification/denitrification2

0.7 (no units)
Average total N load in wastewater3 0.01703 kg N per person per day Digester Gas
Volume of digester gas produced 1,400,146 standard cubic feet (scf) per day
CH4 content in digester gas 55% percent
Energy content of digester gas 500 British thermal units (BTU) per scf
Digester gas combustion CH4 emission factor2 0.0032 kg CH4 per million BTU Digester gas combustion N2O emission factor2 0.00063 kg N2O per million BTU Energy used for wastewater treatment
Electricity 6,016,844 kWh
Natural gas 2,073,000 therms

5 U.S. Environmental Protection Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2021 (EPA 430- R-23-002), April 13, 2023, https://www.epa.gov/system/files/documents/2023-04/US-GHG-Inventory-2023-Main- Text.pdf.

Redlands Regular Meeting of 07-02-24
701 of 864

- 11 -

1. Population served by the wastewater treatment plant is an approximated value provided by the City MUED and is assumed to reflect nitrogen inputs to the entire wastewater system.

2. Defaults from ICLEI U.S. Community Protocol Appendix C: Built Environment Emission Activities and Sources (for digester gas emission factors) and Appendix F: Wastewater and Water Emission Activities and Sources (for all other defaults).

3. Updated factor based on information from EPA’s Inventory of GHG Emissions and Sinks: 1990-2021 (EPA 430-R-23-002, April 13, 2023: https://www.epa.gov/system/files/documents/2023-04/US-GHG- Inventory-2023-Main-Text.pdf) Table 7-34 and calculated using the equation for total nitrogen load provided in footnote #34 in ICLEI U.S. Protocol Appendix F.

Sources: ICLEI U.S. Community Protocol Appendix F, 2013; City of Redlands Municipal Utilities and Engineering Department, 2024.

3.6 Total Emissions
The annual GHG emissions for baseline year 2022 total 556, 310 MTCO2e. Table 6 details the emissions by sector, and Figure 1 depicts the distribution of emissions by sector. The largest sector is Transportation (66 percent), followed by Built Environment (30 percent).

Table 6: 2022 Baseline Community-wide GHG Emissions Inventory by Sector Sector Source/Activity Details
MTCO2e per year
Emissions Subtotal
Built
Environ-
ment
Energy - Electricity Residential 43,020
91,750
(16.5%)
Commercial 36,512
Industrial 11,618
Public Lighting 601
Energy - Natural Gas Residential 56,017
72,002
(12.9%) Commercial 15,451
Industrial1 534
Transpor-
tation
Fugitive/Energy On-Road 351,444 369,041
(66.3%) Off-Road 17,597
Solid
Waste
Fugitive - Landfill Residential 2,368
7,412
(1.3%) Commercial/Industrial 5,031
Bulk Waste 13
Potable
Water
Energy - Supply Extraction 582
2,975
(0.5%)
Conveyance 53
Energy – Treatment2 327
Energy – Distribution2 2,013
Waste-
water
Stationary - Treatment 38
13,129
(2.4%)
Process - Treatment 185
Fugitive - Treatment 376
Energy - Collection,
Treatment3
Electricity 1,203
Natural Gas 11,327
Redlands Regular Meeting of 07-02-24
702 of 864

- 12 -
Grand Total 556,310

1. Industrial natural gas emissions may be underestimated due to unavailability of data from large facilities (customer confidentiality laws).

2. Emissions from electricity used to treat and distribute potable water are subtracted from the commercial category in the Built Environment sector to avoid double counting; emissions from water supply represent embodied energy and are not included in the SCE report for consumption by Redlands and therefore do not need to be subtracted.

3. Energy for wastewater collection and treatment is reported together and cannot be separated. Emissions are subtracted from the commercial electricity and natural gas categories in the Built Environment sector to avoid double counting.

Dyett & Bhatia, 2024.

Figure 1: 2022 Baseline GHG Emissions by Sector

Dyett & Bhatia, 2024
In 2021, the San Bernardino County Transportation Authority (SBCTA) led preparation of the San Bernardino Regional Greenhouse Gas Reduction Plan, which includes GHG inventories and potential reduction measures to serve as a guide for more detailed communit y-level CAPs throughout the county. The Regional GHG Reduction Plan provides context for neighboring jurisdictions in the county; for example, the 2016 baseline was 203,924 MTCO 2e for the City of Loma Linda, 218,940 MTCO2e for the City of Highland, and 1,440,525 MTCO2e for the City of San Bernardino.6
Likewise, neighboring cities in Riverside County have also prepared GHG inventories. According to their Economic Prosperity Action Plan and Climate Action Plan (2016), the 2020 forecasted business-as-usual GHG inventory for the City of Riverside was 1,045, 427 MTCO2e.7 The City of

6 San Bernardino County Transportation Authority/San Bernardino Council of Governments, San Bernardino County Regional Greenhouse Gas Reduction Plan, March 2021, https://www.gosbcta.com/wp- content/uploads/2019/09/San_Bernardino_Regional_GHG_Reduction_Plan_Main_Text_Mar_2021.pdf. 7 City of Riverside, Economic Prosperity Action Plan and Climate Action Plan, January 2016, https://corweb.riversideca.gov/cedd/sites/riversideca.gov.cedd/files/pdf/planning/other- Redlands Regular Meeting of 07-02-24
703 of 864

- 13 -
Moreno Valley also adopted a CAP in 2021, which estimates a 2018 baseline inventory of 866,410 MTCO2e.8
As reported in the 2017 CAP, the 2015 baseline inventory for Redlands was 419,417 MTCO 2e.

However, as noted in the Methodology section, tools and data sources used to prepare the 2015 baseline have changed or are no longer available. In addition, the updated 2022 baseline inventory recategorizes the emissions sectors to better align with recen t State recommendations for local government actions for GHG reductions that support State efforts to decarbonize the built environment, electrify transportation, and reduce VMT. To enable valid comparison between 2015 and 2022 and assess progress, the 2015 baseline inventory has been adjusted using the new methodology and based on inputs reported in the 2017 CAP; the resulting 2015 adjusted baseline inventory is 499,157 MTCO
2e.

Given its geographic and population size, the relatively moderate level of GHG emissions generated by Redlands is comparable to neighboring jurisdictions based on a comparison of per capita emissions, shown in Figure 2. However, the updated baseline GHG Inventory for 2022 shows an increase in community -generated GHG emissions since 2015 (discussed further in Section 4.6), and therefore GHG reduction is recommended.

Figure 2: Annual GHG Emissions Per Capita Comparison with Neighboring Jurisdictions

Sources: City of Riverside Economic Prosperity Action Plan and Climate Action Plan, 2016; City of Moreno Valley Climate Action Plan, 2021; SBCTA San Bernardino County Regional Greenhouse Gas Reduction Plan, 2021; California Department of Finance Table E-4; Dyett & Bhatia, 2024

plans/2016%20Riverside%20Restorative%20Growthprint%20Economic%20Proposerity%20Action%20Plan%20and %20Climate%20Action%20Plan.pdf.
8 City of Moreno Valley, City of Moreno Valley Climate Action Plan, Adopted June 15, 2021, https://moval.gov/city_hall/general-plan2040/MV-CAP.pdf.

Redlands Regular Meeting of 07-02-24
704 of 864

- 14 -
4 BUSINESS-AS-USUAL FORECAST
As was done for the baseline inventory (see Section 3), the forecasted GHG inventories project all direct emissions from sources within Redlands city limits, including fuel combusted in the city, as well as indirect emissions associated with the consumption of energy that is generated outside the borders of the city. Included and excluded GHGs are as described in Section 2. The emissions inventories tally emissions from the same five sectors as the baseline inventory.

The emissions projected in the forecast use the activity data (or usage) from the 2022 baseline inventory as an initial value, then predicted growth in each sector is projected to scale with various Redlands characteristics, such as population and housing growth and increase in non-residential development in 2030 and 2050 , unless specific growth projections (e.g., water use or energy demand) are otherwise provided.

The business-as-usual forecast estimates emissions through the years 2030 and 2050, assuming the land use and circulation system incorporated into the SBTAM+ regional transportation model, which is consistent with regional growth projections under the 2024 update to Connect SoCal that is currently underway . The growth assumptions, as shown in Table 7, include the housing and employment inputs for SBTAM+ provided by Fehr & Peers, as well as population estimates and projections from the California Department of Finance. This approach was used to model growth assumptions in absence of specific buildout projections that align with the target years 2030 and 2050. This methodology differs from the 2017 CAP, which used the 2035 General Plan buildout.

Where possible, 2022 values were validated against or supplemented by the most recent estimates from the California Department of Finance.

As described in Attachment A, SBTAM+ models existing conditions under the base year 2019 and future conditions projected under the 2024 Connect SoCal RTP for 2050. VMT estimates for 2022 and 2030 were interpolated between 2019 and 2050, and as such, reflect the general trajectory between the base and future years, rather than exact estimates of a single point in time. For example, the housing units for 2030 shown in Table 7 do not necessarily match the amount of housing development anticipated by Redlands’ 2021-2029 Housing Element. However, the SBTAM+ socioeconomic data inputs assumptions are used because (1) buildout projections for Redlands in 2030 and 2050 are unavailable; (2) these inputs are consistent with the most recent regional (SCAG) and subregional (SBCOG/SBCTA) projections; and (3) growth assumptions would be consistent across all emissions sectors (e.g., VMT estimates used to calculate Transportation sector emissions are appropriately scaled with energy demand in the Built Environment sector, and so on).

It is also important to note that the non- retail category for employment include s all occupation sectors (agriculture and mining, construction, manufacturing, wholesale trade, transportation/warehousing/utility, information, financial activity, professional and business services, education and health, art/entertainment, other service, a nd public administration) other than retail trade. Retail trade employment is scaled using a local input determined by the San Bernardino Council of Governments (SBCOG) and S BCTA, while non -retail employment is estimated by the ratio of non-retail jobs from SCAG’s Connect SoCal projections. 9 The decrease in

9 San Bernardino County Transportation Authority, San Bernardino County Transportation Analysis Model – SBTAM: Model Development and Validation Report and User’s Guide, December 2019, https://www.gosbcta.com/wp-content/uploads/2019/10/SBTAM-Documentation-and-User%E2%80%99s-Guide.pdf.

Redlands Regular Meeting of 07-02-24
705 of 864

- 15 -
retail jobs shown in Table 7 therefore are likely a reflection of transferred growth in all other occupational sectors.

Table 7: Population, Housing, and Employment Growth Assumptions, 2022-2050 2022 2030 2050
Metric
Estimate Projection
Growth,
2022-2030 Projection
Growth,
2030-2050
Population1
City of Redlands 72,259 75,243 4.1% 82,228 9.3%
San Bernardino
County 2,180,777 2,368,002 8.6% 2,681,796 13.3%
Redlands Housing
Units2 27,580 28,321 2.7% 32,849 16.0%
Single-family 17,766 18,024 1.5% 18,903 4.9%
Multifamily 9,814 10,297 4.9% 13,947 35.4%
Redlands
Employment3 50,400 52,803 4.8% 60,103 13.8%
Retail jobs 9,474 9,232 -2.6% 8,499 -7.9%
Non-retail jobs 40,926 43,571 6.5% 51,604 18.4%

1. Population estimates for 2022 from California Department of Finance Table E-5 (May 2023 release), and 2030 and 2050 County population projections from Table P-2B. City of Redlands population projections for 2030 and 2050 as used in regional modeling and as provided by Fehr & Peers.

2. Housing for 2030 and 2050 calculated based on the number of households provided by Fehr & Peers and maintaining Redlands’ vacancy rate in 2022 (5.14%) as estimated by California Department of Finance Table E-5 (May 2023 release).

3. Employment estimates and projections are provided by Fehr & Peers, consistent with inputs to the SBTAM+ used to calculate VMT. SBTAM+ is consistent with regional projections (by SCAG) under the 2024 Connect SoCal RTP/SCS but are locally scaled by SBCOG/SBCTA. Employment is categorized into retail (including retail trade) and non-retail (including all occupational sectors other than retail trade); the decrease in retail jobs is likely a result of both growth projections as well as the categorization method.

Sources: California Department of Finance, 2023; Fehr & Peers, 2024; Dyett & Bhatia, 2024 In addition, the business -as-usual scenario includes the effects of key climate regulations at the federal and State levels , primarily affecting the Built Environment and Transportation sectors.

These effects are incorporated into the energy demand forecasts prepared by the California Energy Commission (CEC) and used to project growth in electricity and natural gas consumption, as well as EMFAC 2021 (and the corresponding OFFROAD 2021 model) used to model future transportation emissions. For example, both sources account for the impact of Executive Order (EO) N-79-20, which calls for 100 percent of passenger vehicle sales to be zero -emission by 2035 and all on-road trucks to be zero-emission where feasible by 2045, in addition to Advanced Clean Cars, Advanced Clean Fleets, and related Pavley regulations. A full description of the regulations incorporated into the CEC’s energy demand forecast are described in the 2023 Integrated Energy Redlands Regular Meeting of 07-02-24
706 of 864

- 16 -
Policy Report (IEPR) 10, and regulatory assumptions for EMFAC 2021 are as described in the EMFAC 2021 Volume III Technical Document11.

State actions that do not underlie growth assumptions were quantified separately and are reflected in the adjusted business -as-usual forecast (described in Section 5). These include Renewables Portfolio Standards (RPS) under SB 100 and SB 1020 , 2022 Title 24 Building Energy Efficiency Standards, and Renewable Gas Standards (RGS) under SB 1440 . Local actions that would be implemented by the City, such as increasing solid waste diversion in line with the statewide goal under AB 341, are not included but would instead be credited as a GHG reduction measure (to be developed) in the updated CAP.

The following sections describe how assumed growth w as applied to each sector to calculate business-as-usual forecast emissions.

4.1 Built Environment
Built Environment emissions are from energy consumption and are proportional to the electricity and natural gas demand forecasted by CEC for the SCE and SoCalGas planning areas as part of the 2023 IEPR. This demand forecast has a 2023 baseline and is projected out to 2040, which includes year 2030; however, energy demand in 2050 was linearly extrapolated based on the change between 2030 and 2040.

Future residential electricity consumption was calculated based on the household consumption rate for the SCE area, multiplied by the number of households projected for Redlands . Electricity consumption for the commercial, industrial, and public lighting categories were assumed to grow in proportion with electricity consumption in those sectors, according to the electricity demand forecast for the SCE area. Future residential, commercial, and industrial natural gas consumption were likewise assumed to grow in proportion with the natural gas demand in the SoCalGas area forecasted by CEC for those categories.

As described above, the business-as-usual scenario (without adjustments) does not include changes to SCE’s electricity emission factor (which would be affected by RPS, SB 100, and SB 1020) or SoCalGas’ natural gas emission factor (which would change according to the SoCalGas 2021 Climate Commitment) . B usiness-as-usual built environment sector emissions were calculated using the inputs shown in Table 8.

10 California Energy Commission, Adopted 2023 Integrated Energy Policy Report with Errata, February 14, 2024, https://www.energy.ca.gov/data-reports/reports/integrated-energy-policy-report/2023-integrated-energy-policy- report.
11 California Air Resources Board, EMFAC2021 Volume III Technical Document (Version 1.0.1), April 2021, https://ww2.arb.ca.gov/sites/default/files/2021-08/emfac2021_technical_documentation_april2021.pdf.

Redlands Regular Meeting of 07-02-24
707 of 864

- 17 -
Table 8: Business-As-Usual Electricity and Natural Gas Activity Data, 2030-2050 SCE Electricity (kWh) SoCalGas Natural Gas (therms)
Consumption Sector 2030 2050 2030 2050
Utility Emission
Factor1 0.00020 MTCO2e per kWh 0.0005464 MTCO2e per therm Total
Consumption2 534,973,435 740,460,494 15,792,936 19,657,823 Residential 236,630,473 317,001,286 10,263,164 13,648,861 Commercial 237,503,986 362,465,137 5,431,192 5,909,408 Industrial 58,119,940 58,749,240 98,580 99,555
Public Lighting 2,719,037 2,244,832 n/a n/a

1. Consistent with 2022 emission factors.

2. Residential electricity consumption based on household consumption rate as calculated from the CEC’s electricity demand forecast for the SCE planning area and projected number of households provided by Fehr & Peers (consistent with SBTAM+). All other energy consumption assumed to grow from the 2022 baseline in proportion with CEC energy demand forecasts.

Sources: Dyett & Bhatia, 2024

4.2 Transportation
Transportation emissions are based on the emissions associated with VMT. As discussed above and consistent with the baseline inventory, VMT estimates were provided by Fehr & Peers using the SBTAM+ regional model, which is aligned with Connect SoCal (2024 update, currently underway).

As was conducted for the baseline, EMFAC 2021 Scenario Analysis and OFFROAD 2021 were used to quantify on-road and off-road total daily CO2 emissions for Redlands using updated VMT and population inputs, as shown in Table 9.

As noted above, EMFAC 2021 includes the effect of transportation regulations and programs that would increase the share of electric vehicles through 2050 and would therefore decrease CO 2 emissions despite an increase in VMT. These changes would decrease on -road emissions but are not as evident for off-road equipment.

Table 9: Business-As-Usual On-Road and Off-Road Transportation Inputs and EMFAC Results, 2030-2050
Metric 2030 2050
Redlands total daily vehicle miles traveled (VMT) 2,551,867 2,812,455 Total Daily CO2 Emissions (tons per day)
Redlands on-road transportation1 995.07 952.23
San Bernardino County off-road equipment2 1,826.86 2,158.89 Population
City of Redlands 75,243 82,228
San Bernardino County 2,368,002 2,681,796
Redlands Regular Meeting of 07-02-24
708 of 864

- 18 -

1. Estimated for the San Bernardino (SC) Sub-Area using the EMFAC 2021 Scenario Analysis tool without SB 375 analysis, scaled to Redlands using total daily VMT as prepared by Fehr & Peers.

2. Estimated for the entire San Bernardino County, then prorated to Redlands based on Redlands’ share of countywide population.

Sources: California Air Resources Board (EMFAC 2021), 2024; California Department of Finance, 2023; Fehr & Peers, 2024

4.3 Solid Waste
Emissions from decomposition of landfilled solid waste generated in Redlands was assumed to scale with population growth , calculated based on a consistent per capita disposal rate (tons of waste divided by population). Like the baseline inventory, the facility-level CH4 emissions from California Street and San Timoteo landfills were scaled to the disposal quantity specific to Redlands. The proportion of residential versus commercial/industrial solid waste sent to California Street Landfill and the ratio of bulk waste sen t to San Timoteo Landfill relative to waste sent to California Street Landfill were assumed to stay the same as for 2022. Inputs for 2030 and 2050 are summarized in Table 10.

Table 10: Business-As-Usual Solid Waste Activity Data and Facility-Level Emissions, 2030-2050
Metric 2030 2050
California Street Landfill
Total Redlands waste sent to California Street Landfill1 (tons) 50,286 54,954 Residential solid waste (tons) 16,092 17,586
Commercial/Industrial solid waste (tons) 34,194 37,368
California Street Landfill total annual disposal quantity2 (tons) 48,135 52,603 California Street Landfill CH4 emissions3 (MT CH4) 273.14 298.50 San Timoteo Landfill
Total Redlands waste sent to San Timoteo Landfill4 (tons) 166 181 San Timoteo Landfill total annual disposal quantity2 (tons) 384,839 420,565 San Timoteo Landfill CH4 emissions3 (MT CH4) 1,187.47 1,297.71

1. Corresponds to solid waste disposal quantity provided by the City FCS Department, scaled to population growth; distribution between residential and commercial/industrial is the same as provided for 2022.

2. Corresponds to the facility-level total disposal quantity from EPA’s GHG Reporting Program, per requirements of the Mandatory Reporting Rule (40 CFR Part 98), scaled to population growth.

3. CH4 emissions relative to the facility-level disposal quantity.

4. Corresponds to bulk waste disposal quantity provided by the City FCS Department, assumed to be the same proportion of waste sent to California Street Landfill in 2022.

Sources: Dyett & Bhatia, 2024

4.4 Potable Water
The increased demand for electricity usage for supplying , treating, and distributing potable water was assumed to be proportional to the water demand projections according to the Redlands 2020 UWMP, excluding water losses and converted from acre -feet (AF) to million gallons (MG) .

Redlands Regular Meeting of 07-02-24
709 of 864

- 19 -
Projected water demand for 2050 was linearly interpolated based on the growth rate between 2040 and 2045. The proportion of groundwater and surface water supply is based on the 10-year average reported in the 2020 UWMP. Energy intensities and the corresponding electricity emission factor were assumed to remain the same as was used for the baseline.

Table 11: Business-As-Usual Potable Water Activity Data, 2030-2050 Metric 2030 2050
Total volume of water delivered1 (MG) 7,956.6 9,091.1
Groundwater supply 4,933.1 5,636.5
Surface water supply 3,023.5 3,454.6

1. Total water demand as projected in the Redlands 2020 UWMP, excluding water losses, and interpolated for 2050. Groundwater and surface water volume based on the 10-year average distribution reported in 2020 UWMP.

Sources: City of Redlands Urban Water Management Plan, 2020; Dyett & Bhatia, 2024

4.5 Wastewater
Forecasted emissions from wastewater treatment reflect increases in the volume of wastewater, corresponding volume of digester gas and effluent discharge, and energy required to collect and treat wastewater. Process and fugitive N2O emissions are a product of the population served by the wastewater treatment plant and are consistent with the growth assumptions shown in Table 7. As shown in Table 12, digester gas was calculated to scale with this population growth, while electricity and natural gas used for collection and treatment of wastewater was assumed to change according to CEC energy demand forecast for the SCE/SoCalGas area in the Agriculture and Water Pumping (AGWP) sector. Consistent with the Built Environment sector, these energy demand forecasts were linearly interpolated for 2050 based on the growth rate between 2030 and 2040. All other inputs, including the electricity and natural gas emission factors, are the same as the baseline.

Table 12: Business-As-Usual Wastewater Activity Data, 2030-2050 Metric 2030 2050
Volume of digester gas produced (scf per day) 1,463,211 1,599,045 Energy used for wastewater treatment1
Electricity (kWh) 5,850,648 6,382,510
Natural gas (therms) 2,106,226 3,206,583

1. Assumed to change in proportion with the CEC’s electricity demand forecast for the SCE area and natural gas demand forecast for the SoCalGas area in the Agriculture and Water Pumping (AGWP) sector.

Sources: Fehr & Peers, 2024; Dyett & Bhatia, 2024

4.6 Total Emissions
Table 13 compares the GHG emissions inventories by sector for the adjusted 2015 baseline, 2022 baseline, and 2030 and 2050 business-as-usual forecasts without reductions from State actions. As shown in Figure 3, annual GHG emissions in Redlands is estimated to continue increasing since 2015, except for a slight fluctuation in 2030, when the decrease in transportation emissions Redlands Regular Meeting of 07-02-24
710 of 864

- 20 -
outweighs growth-induced increases in emissions from other sectors. In absolute terms, t otal annual emissions in the business-as-usual scenario are projected to increase from 499,157 MTCO2e in 2015 to 562,707 MTCO2e in 2050 (an increase of 13 percent).

Figure 3: Change in Total Annual Business- As-Usual GHG Emissions, 2015 -2050

Dyett & Bhatia, 2024
Table 13: Baseline and Business-As-Usual Detailed Community-wide GHG Emissions Inventories by Sector, 2015-2050
Source/Activity Details
Annual Emissions (MTCO2e)
20151
Baseline
2022
Baseline
2030
BAU Forecast
2050
BAU Forecast
Built Environment
Energy -
Electricity
Residential 46,892 43,020 47,326 63,400
Commercial 50,240 36,512 43,9678 68,187
Industrial 19,306 11,618 11,624 11,750
Public Lighting 747 601 544 449
Energy - Natural
Gas
Residential 49,983 56,017 56,078 56,266
Commercial 23,362 15,451 18,404 21,017
Industrial2 331 534 539 544
Subtotal 190,861 163,753 178,193 221,613
Transportation
Fugitive/Energy
On-Road 259,239 351,444 308,472 295,192
Off-Road 14,847 17,597 17,995 20,520
Redlands Regular Meeting of 07-02-24
711 of 864

- 21 -
Source/Activity Details
Annual Emissions (MTCO2e)
20151
Baseline
2022
Baseline
2030
BAU Forecast
2050
BAU Forecast
Subtotal 274,086 369,041 326,467 315,712
Solid Waste
Fugitive -
Landfill
Residential 14,741 2,368 2,466 2,694
Commercial/
Industrial 10,184 5,031 5,239 5,725
Bulk Waste 8 13 14 15
Subtotal 24,933 7,412 7,718 8,435
Potable Water
Energy - Supply
Extraction 621 582 533 609
Conveyance 77 53 67 76
Energy –
Treatment3
— 4 327 334 382
Energy –
Distribution3
2,490 2,013 2,057 2,350
Subtotal 3,189 2,975 2,990 3,417
Wastewater
Stationary -
Treatment
1 38 40 44
Process -
Treatment
180 185 193 211
Fugitive -
Treatment
402 376 393 430
Energy -
Collection,
Treatment5
Electricity 1,345 1,203 1,431 1,574
Natural Gas 4,161 11,327 11,272 11,272
Subtotal 6,088 13,129 13,329 13,530
Grand Total 499,157 556,310 528,698 562,707
Percent Change from 2015 - +11% +6% +13%
Per capita emissions 7.1 7.7 7.0 6.8
Redlands Regular Meeting of 07-02-24
712 of 864

- 22 -
Source/Activity Details
Annual Emissions (MTCO2e)
20151
Baseline
2022
Baseline
2030
BAU Forecast
2050
BAU Forecast
BAU = Business-As-Usual

1. Emissions for 2015 are adjusted from the 2015 GHG Inventory included in the 2017 CAP using the same methodology as the 2022 baseline inventory to allow for valid comparison. Emissions from the Residential, Commercial, Industrial, Agricultural, and Public Lighting sectors of the 2015 GHG Inventory were combined into the Built Environment sector; 2015 commercial electricity includes agriculture electricity, which is not available for other years.

2. Industrial natural gas emissions may be underestimated due to unavailability of data from large facilities (customer confidentiality laws).

3. Emissions from electricity used to treat and distribute potable water are subtracted from the commercial category in the Built Environment sector to avoid double counting; emissions from water supply represent embodied energy and are not included in the SCE report for consumption by Redlands and therefore do not need to be subtracted.

4. Energy (electricity) used for treatment and distribution of potable water were reported together for the 2015 GHG Inventory and are shown combined under distribution.

5. Energy for wastewater collection and treatment is reported together and cannot be separated. Emissions are subtracted from the commercial electricity and natural gas categories in the Built Environment sector to avoid double counting.

Dyett & Bhatia, 2024
When evaluated based on an efficiency metric, business -as-usual forecast emissions are expected to improve compared to the 2022 baseline emissions level, which is substantially higher than in 2015 (as adjusted for valid comparison). As shown in Figure 4, the total annual emissions of 528,698 MTCO2e in 2030 would correspond to 7.0 MTCO 2e per capita, decreasing from 7.7 MTCO2e per capita in 2022 as well as decreasing from 7.1 MTCO 2e per capita in 2015 . The efficiency metric for 2050 would also continue this downward trend to 6.8 MTCO2e per capita.

Figure 4: Business- As-Usual GHG Emissions Per Capita, 2015 -2050

Dyett & Bhatia, 2024
Redlands Regular Meeting of 07-02-24
713 of 864

- 23 -
As shown in Figure 5, the transportation sector continues to represent the greatest source of community-wide emissions, accounting for 61.7 percent of emissions in 2030 and 56.1 percent in 2050. Built environment emissions remain as the second largest sector, making up 33.7 percent of emissions in 2030 and 39.4 percent in 2050.

Figure 5: 2030 and 2050 Business- As-Usual GHG Emissions by Sector

Dyett & Bhatia, 2024

Redlands Regular Meeting of 07-02-24
714 of 864

- 24 -
5 ADJUSTED BUSINESS-AS-USUAL FORECAST
Reductions from State actions that could be quantified independently from growth assumptions are reflected in the adjusted business-as-usual forecast, as described in the following sections. Local actions that would be implemented by the City, such as increasing solid waste diversion in line with AB 341 or establishing a local food recovery goal as outlined by SB 1383, are not included but would instead be credited as a GHG reduction measure in the CAP.

5.1 Electricity Emissions Reductions from Renewables Portfolio Standards Renewables Portfolio Standards (RPS), established in 2002 by SB 1078 with the initial requirement that 20 percent of electricity retail sales (such as by investor-owned utilities like SCE) must be served by renewable resources by 2017. RPS requirements were accelerated in 2015 with SB 350 to 50 percent by 2030, then again in 2018 with SB 100, which increased the 2030 target to 60 percent and requires all of the state’s electricity to come from carbon-free resources by 2045. In 2022, SB 1020 clarified interim RPS targets: 90 percent by 2035, 95 percent by 2040, and 100 percent by 2045.

Quantified reductions in the adjusted business -as-usual forecast reflect the latest RPS consistent with SB 100 and SB 1020.

5.2 Natural Gas Emissions Reductions from Renewable Gas Standards CPUC Decision 22-02-02512 requires California’s four largest investor-owned utilities providing natural gas (one of which is SoCalGas) to meet collective biomethane procurement targets for 2025 and 2030 to implement SB 1440 (2022) and support California’s organic waste diversion goal under SB 1383 (2016). Under this decision, SoCalGas is responsible for procuring its proportionate share of Cap-and-Trade allowances (49.26 percent) of the collective renewable natural gas procurement target of 17.6 billion cubic feet (Bcf) annually by 2025 , as well as contributing its proportionate share of 2020 annual bundled core natural gas demand forecasted in the 2020 California Gas Report13 of the collective 72.8 Bcf annually by 2030. The latter target is referred to as the “Renewable Gas Standard” (RGS) and applies to 2030 and beyond, but CPUC will re-evaluate and revise, as necessary, this standard for the longer term in 2025.

SoCalGas’ Aspire 2045 Sustainability Strategy establishes a goal of delivering 20 percent renewable natural gas to core customers by 2030,14 in line with these regulations. According to the Aspire 2045 Factsheet, SoCalGas is currently (as of August 2023) providing five percent renewable gas.15 Given this direction, q uantified reductions in the adjusted business -as-usual forecast reflect SoCalGas’ goal for 2030 and assume this goal would be maintained thereafter (through 2050). Although SoCalGas is the locally specific utility for Redlands, SoCalGas’ compliance with RGS is included as

12 California Public Utilities Commission, Decision 22-02-025: Decision Implementing Senate Bill 1440 Biomethane Procurement Program (Rulemaking 13-02-008), February 24, 2022, https://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M454/K335/454335009.PDF 13 California Gas and Electric Utilities, 2020 California Gas Report, October 2020, https://www.socalgas.com/sites/default/files/2020-
10/2020_California_Gas_Report_Joint_Utility_Biennial_Comprehensive_Filing.pdf. 14 Southern California Gas Company, Aspire 2045: SoCalGas Sustainability Strategy, February 2022, https://www.socalgas.com/sites/default/files/2022-02/SoCalGas_Sustainability_Strategy_final.pdf. 15 Southern California Gas Company, Aspire 2045 Factsheet, August 2023, https://www.socalgas.com/sites/default/files/2023-08/ASPRIE_2045_Factsheet.pdf.

Redlands Regular Meeting of 07-02-24
715 of 864

- 25 -
a state-level (rather than local) action because it is directly tied to SB 1440 and the City has no influence over this action.

5.3 Built Environment Reductions from Title 24
The Title 24 Building Energy Efficiency Standards (Part 6, Energy Code) are updated every three years and set increasingly stringent standards to reduce wasteful, uneconomical, and unnecessary uses of energy in residential and non- residential buildings. The 2022 standards are effective as of January 1, 2023. The CEC estimated annual savings over the previous (2019) standards in the 2022 Energy Code Impact Analysis. 16 Quantified reductions in the adjusted business -as-usual forecast reflect these estimates for climate zone 10 (Riverside County), applied to electricity and natural gas consumption of residential and non -residential new construction and alterations, using the same assumptions as the CEC. Savings from Title 24 due to avoided electricity and natural gas consumption are in addition to reductions from RPS and RGS.

Table 14 summarizes the estimated reductions from RPS, RGS, and Title 24 by sector.

Table 14: Reductions from State Actions included in Adjusted Business-As-Usual Scenario, 2030-2050
Annual Emissions Reductions (MTCO2e)
Year 2030 2050
Sector/Action RPS RGS Title 24 RPS RGS Title 24
Built
Environment 29,032 13,625 253 147,643 14,068 71
Electricity 29,032 - 220 147,643 - -
Natural Gas - 13,625 33 14,068 71
Potable Water 816 - - 3,417 - -
Electricity 816 - - 3,417 - -
Wastewater 390 1,780 1,574 1,780 -
Electricity 390 - - 1,574 - -
Natural Gas - 1,780 - - 1,780 -
Total
Reductions 30,238 15,405 253 152,634 18,740 71

1. Reductions from Title 24 are beyond (distinct from) reductions from RPS and RGS.

Sources: Dyett & Bhatia, 2024
Figure 6 summarizes the changes in GHG emissions for each sector over time under the business- as-usual scenario, with and without adjustments from State actions. Decarbonization of electricity through RPS would be the main contributor to emissions reductions, particularly in the Built Environment sector. As described in Section 4 , reductions from regulations affecting the transportation sector are already included in the business-as-usual scenario due to their inclusion

16 California Energy Commission, 2022 Energy Code Impact Analysis, June 30, 2023, https://www.energy.ca.gov/publications/2023/impact-analysis-2022-update-california-energy-code.

Redlands Regular Meeting of 07-02-24
716 of 864

- 26 -
in EMFAC 2021 and are not quantified in the adjustments. Additionally, reductions in the solid waste sector are not quantified in the adjustments because these would be credited as a GHG reduction measure (to be developed) in the City’s updated CAP. Therefore, both of these sectors do not have dashed lines for adjusted business-as-usual trajectories in Figure 6.

Figure 6: Changes in Business-As-Usual and Adjusted Business-As-Usual GHG Emissions by Sector, 2015-2050

Note: Reductions from State actions in the Transportation sector are already included in the Business-As- Usual scenario due to their inclusion in CARB’s EMFAC 2021 and therefore cannot be quantified separately in the adjustments (shown in dashed line).

Redlands Regular Meeting of 07-02-24
717 of 864

- 27 -

Note: Reductions due to local actions affecting the Solid Waste sector are not quantified as adjustments (shown in dashed line) because they would be credited as a GHG reduction measure (to be developed) in the City’s updated CAP.

Dyett & Bhatia, 2024
Redlands Regular Meeting of 07-02-24
718 of 864

- 28 -
6 SUMMARY
As shown in Figure 7, annual community-wide GHG emissions in Redlands have increased since 2015, rising about 1 1 percent from 499,157 MTCO2e in 2015 (adjusted using the methodology described in this report using inputs from the 2017 CAP for valid comparison) to 556,310 MTCO2e in 2022. Without State actions to decarbonize electricity and natural gas GHG emissions generated by Redlands would continue to increase to 562,707MTCO2e in 2050 under the business -as-usual scenario, representing a 13-percent rise above 2015 levels.

However, annual community-wide GHG emissions are estimated to decrease under the adjusted business-as-usual scenario to 399,791 MTCO2e in 2050, representing a 20-percent reduction from 2015 levels. These significant reductions, particularly in the Built Environment and Potable Water sectors, reflect the achievement of 100 -percent carbon- free electricity from SCE by 2045 (supporting RPS) and 20 -percent renewable gas delivered by SoCalGas by 2030 and beyond (supporting RGS). In fact, emissions in the Potable Water sector would virtually be reduced to zero, based on the carbon- free energy used to supply, treat, and deliver potable water. In addition, Transportation sector emissions are expected to decrease slightly due to State efforts such as the Advanced Clean Cars Program and EO N -79-20, despite an absolut e increase in VMT within Redlands.

Meanwhile, emissions from the Solid Waste sector would continue to increase in proportion with increasing solid waste disposed by the growing population of Redlands. However, emissions quantified in this report do not include the impact of increasing solid waste diversion in line with the statewide target under AB 341 or establishing a local food recovery goal under SB 1383, which would be implemented as a City action and credited under the updated CAP. Inclusion of these GHG reduction measures, to be developed as part of the updated CAP’s GHG Reduction Strategy, is recommended to offset increasing emissions in this sector.

Redlands Regular Meeting of 07-02-24
719 of 864

- 29 -
Figure 7: Change in Total Annual Adjusted Business -As-Usual GHG Emissions, 2015-2050

Dyett & Bhatia, 2024
Despite the increase between 2015 and 2022 baseline conditions, future per capita emissions under the adjusted business -as-usual scenario would also decrease to about 6.5 MTCO2e per capita in 2030 and 4.9 MTCO2e in 2050, as shown in Table 15. Based on this efficiency metric, the City would not meet its adopted target for 2030 of 6.0 MTCO2e per capita contained in the adopted 2017 CAP, and additional reductions would be required, especially in the Transportation and Built Environment sectors. Prioritization of GHG reduction measures will be developed with the GHG Reduction Strategy.

Table 15: Summary of Adjusted Business-As-Usual Community-wide GHG Emissions Inventory, 2015-2050
Metric 2015 Baseline 2022 Baseline 2030 Adj.

BAU
2050 Adj.

BAU
Total Annual GHG Emissions
(MTCO2e) 499,157 556,310 485,476 399,791
Percent change from 2015 levels - +11% -3% -20%
Per capita emissions1 7.1 7.7 6.5 4.9
Adj. BAU = Adjusted Business-As-Usual (includes reductions from State actions, including RPS, RGS, and Title 24)

1. Per capita emissions calculated based on population shown in Table 7.

Sources: Dyett & Bhatia, 2024

Redlands Regular Meeting of 07-02-24
720 of 864

- 30 -
ATTACHMENT A: Fehr & Peers Memorandum - Vehicle Miles Traveled Inventory for City of Redlands Climate Action Plan, March 27, 2024.

Redlands Regular Meeting of 07-02-24
721 of 864
3750 University Avenue | Suite 225 | Riverside, CA 92501 | (951) 274-4800 | Fax (951) 684-4324 www.fehrandpeers.com
Memorandum
Date: March 27, 2024
To: Rajeev Bhatia, Dyett & Bhattia
Mayu Tanaka, Dyett & Bhattia
From: Paul Herrmann, P.E.

Marsha Phillips
Raymond Poss
Subject: Vehicle Miles Traveled Inventory for City of Redlands Climate Action Plan OC24-1042
Fehr & Peers has completed Vehicle Miles Traveled (VMT) inventory for the City of Redlands Climate Action Plan (CAP). This memorandum summarizes the methodology of VMT preparation and key findings.

Methodology
Travel Demand Model
Fehr & Peers utilized the latest version of the San Bernardino Transportation Analysis Model (SBTAM+) to estimate VMT for the City of Redlands. SBTAM+ is the most appropriate travel demand model for forecasting traffic volumes and VMT in San Bernadino County and reflects the most recent Southern California Association of Governments (SCAG) Regional Transportation Plan (RTP) and associated Sustainable Communities Strategy (SCS) from 2024. The travel demand model produces weekday VMT for a typical Tuesday through Thursday, therefore Fehr & Peers annualized the VMT data in the inventory for use in the GHG assessment.

VMT Methodology
Fehr & Peers utilized the Regional Transportation Advisory Committee (RTAC) VMT calculation methodology, also referred to as the half-accounting method, to prepare VMT forecasts. Using this methodology, 100% of the VMT with two trip ends within a jurisdiction is attributed to that agency, 50% of the VMT with only one trip end is allocated to the jurisdiction (the other 50% is allocated to the jurisdiction where the other trip end is located), and no VMT for trips that simply pass-through the City is included in the accounting methodology. This method is considered

ATTACHMENT A
Redlands Regular Meeting of 07-02-24
722 of 864

March 27, 2024

state-of-the-practice for use in CAPs as it allocates the VMT that specific agencies can control to that specific agency as part of the inventory.

As noted, the SBTAM+ model was used to assist in this accounting to track trips and allocation.

This was completed for both the model base year (2019) and model future year (2050).

Additionally, 2022 and 2030 years were interpolated to align with the CAP scenarios.

VMT Results
Table 1 shows the socioeconomic data inputs assumptions in SBTAM+. Table 2 shows the daily VMT by vehicle class for year 2022, 2030, and 2050 in City of Redlands. The daily VMT by speed bin is provided in Tables 3, 4, and 5 for years 2022, 2030, and 2050, respectively.

Please note that, if you are using the VMT by speed bin information, the speed bins are representative of typical weekday conditions – if you are using the annualized speed bin information, it would be assuming similar congestion profiles for all days of the week and all periods of the year are the same as a typical Tuesday through Thursday.

Table 1: Redlands Socioeconomic Data Summary
Category 20191 20222 20302 20501
Population 71,948 72,943 75,243 82,228
Households 25,644 26,186 27,439 31,244
Single-Family Units 16,749 16,868 17,143 17,979
Multi-Family Units 8,895 9,318 10,296 13,265
Retail Employment 9,578 9,474 9,232 8,499
Non-retail Employment 39,782 40,926 43,571 51,604
Total Employment 49,360 50,400 52,803 60,103
Notes:

1. 2019 and 2050 data are consistent with the 2020 SCAG RTP/SCS base year and future year land use assumptions in SBTAM+.

2. Interim years were interpolated between base and future.

Source: SBTAM+, 2024

Redlands Regular Meeting of 07-02-24
723 of 864

March 27, 2024

Table 2: Redlands Daily VMT by Vehicle Class (RTAC Methodology) Year
Auto1 LHDT2 MHDT3 HHDT4 Total VMT RTAC
VMT Annual
RTAC VMT i x i x i x i x i x
100% ii
+50% ix
& xi
2022
i 277,485 1,976,456 1,878 28,842 1,723 25,645 1,055 121,788 282,140 2,152,731 2,447,632 758,765,921
x 2,001,753 - 28,920 - 25,689 - 121,891 - 2,178,252 -
2030
i 281,731 2,067,410 1,819 30,143 1,653 26,654 1,070 126,272 286,272 2,250,479 2,551,867 791,078,754
x 2,097,331 - 30,240 - 26,706 - 126,432 - 2,280,710 -
2050
i 292,346 2,294,797 1,671 33,394 1,478 29,176 1,108 137,483 296,603 2,494,850 2,812,455 871,861,080
x 2,336,278 - 33,540 - 29,251 - 137,785 2,536,854 -
Note:

1. Auto = passenger cars.

2. LHDT = Light heavy-duty trucks.

3. MHDT = Might heavy-duty trucks.

4. HHDT = Heavy heavy-duty trucks.

Source: SBTAM+, 2024

Redlands Regular Meeting of 07-02-24
724 of 864

March 27, 2024

Table 3: 2022 Daily VMT by Speed Bin (RTAC Methodology) Speed Total VMT RTAC VMT Annual RTAC VMT i x 100% ii +50% ix & xi 0-5 MPH i 0 0 58 17,970 x 116
5-10 MPH i 0 0 0 0 x 0
10-15 MPH i 0 179 1,104 342,136 x 2,028
15-20 MPH i 1,415 59 2,883 893,829 x 2,877
20-25 MPH i 10,941 2,584 17,992 5,577,571 x 11,517
25-30 MPH i 111,762 41,063 167,827 52,026,397 x 71,067
30-35 MPH i 116,111 217,172 354,264 109,821,717 x 259,133 35-40 MPH i 27,193 309,908 346,446 107,398,378 x 328,598 40-45 MPH i 11,144 440,926 391,877 121,481,773 x 320,539 45-50 MPH i 3,438 506,214 461,812 143,161,699 x 410,534 50-55 MPH i 135 404,517 445,712 138,170,650 x 486,636
55-60 MPH i 0 195,091 217,684 67,482,140 x 240,278
60-65 MPH i 0 35,017 39,973 12,391,660 x 44,929
65-70 MPH i 0 0 0 0 x 0
70-75 MPH i 0 0 0 0 x 0
75-80 MPH i 0 0 0 0 x 0
Total VMT i 282,140 2,152,731 2,447,632 758,765,921 x 2,178,253 - Source: SBTAM+, 2024

Redlands Regular Meeting of 07-02-24
725 of 864

March 27, 2024

Table 4: 2030 Daily VMT by Speed Bin (RTAC Methodology) Speed Total VMT RTAC VMT Annual RTAC VMT i x 100% ii +50% ix & xi 0-5 MPH i 0 0 213 65,874 x 425
5-10 MPH i 0 0 0 0 x 0
10-15 MPH i 0 657 4,047 1,254,383 x 7,436
15-20 MPH i 1,011 101 6,260 1,940,646 x 10,397
20-25 MPH i 9,215 3,554 24,130 7,480,448 x 26,276
25-30 MPH i 109,942 57,555 186,536 57,826,031 x 95,632
30-35 MPH i 125,146 277,340 413,096 128,059,812 x 298,560 35-40 MPH i 26,924 392,935 397,544 123,238,583 x 348,305 40-45 MPH i 10,535 458,855 428,607 132,867,964 x 377,288 45-50 MPH i 3,362 481,656 452,555 140,291,825 x 416,729 50-55 MPH i 137 373,330 416,763 129,196,396 x 459,921
55-60 MPH i 0 168,473 183,454 56,870,686 x 198,435
60-65 MPH i 0 36,023 38,665 11,986,105 x 41,307
65-70 MPH i 0 0 0 0 x 0
70-75 MPH i 0 0 0 0 x 0
75-80 MPH i 0 0 0 0 x 0
Total VMT i 286,272 2,250,479 2,551,867 791,078,754 x 2,280,710 - Source: SBTAM+, 2024

Redlands Regular Meeting of 07-02-24
726 of 864

March 27, 2024

Table 5: 2050 Daily VMT by Speed Bin (RTAC Methodology) Speed Total VMT RTAC VMT Annual RTAC VMT i x 100% ii +50% ix & xi 0-5 MPH i 0 0 598 185,465 x 1,197
5-10 MPH i 0 0 0 0 x 0
10-15 MPH i 0 1,852 11,404 3,535,183 x 20,955
15-20 MPH i 1 206 14,702 4,557,767 x 29,197
20-25 MPH i 4,900 5,977 39,476 12,237,490 x 63,174
25-30 MPH i 105,393 98,784 233,308 72,325,364 x 157,045 30-35 MPH i 147,734 427,758 560,177 173,654,735 x 397,128 35-40 MPH i 26,251 600,501 525,287 162,839,060 x 397,572 40-45 MPH i 9,012 503,680 520,431 161,333,745 x 519,160 45-50 MPH i 3,172 420,262 429,410 133,117,148 x 432,215 50-55 MPH i 141 295,363 344,389 106,760,623 x 393,134
55-60 MPH i 0 101,929 97,878 30,342,260 x 93,828
60-65 MPH i 0 38,538 35,394 10,972,241 x 32,251
65-70 MPH i 0 0 0 0 x 0
70-75 MPH i 0 0 0 0 x 0
75-80 MPH i 0 0 0 0 x 0
Total VMT i 296,603 2,494,850 2,812,455 871,861,080 x 2,536,854 - Source: SBTAM+, 2024

Redlands Regular Meeting of 07-02-24
727 of 864
City Council Meeting L. 2.

DATE: 07/02/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Introduction of Ordinance No. 2972 levying special taxes within the City of Redlands Community Facilities District No. 2004-1 (Development Services Director Desatnik)
MOTION(S):

If City Council determines the staff recommendation is appropriate, the following motion is provided:

I move to introduce Ordinance No. 2972.

RECOMMENDATION:

Staff recommends City Council introduce Ordinance No. 2972 establishing the maximum tax rates for Community Facilities District No. 2004-1, and authorizing the City Clerk to file necessary information with the County Auditor/Controller for Fiscal Year 24/25.

DISCUSSION:

In 2004, City Council approved the formation of Community Facilities District (CFD) No. 2004-1, which was established to maintain landscaping and other improvements associated with various properties annexed into the CFD. The CFD tax collected provides funding for labor, material, and equipment costs associated with the maintenance services. Since its inception, twenty-nine (29) applications for annexation have been received, and twenty-four (24) have been successfully added to the CFD, which are described in Attachment B.

Introduction of Ordinance No. 2972 is required to levy the special tax in accordance with the California Streets and Highways Code. This Ordinance sets the maximum FY 24/25 CFD tax rates, and authorizes the City Clerk to file all necessary information to levy the tax with the County Auditor/Controller no later Redlands Regular Meeting of 07-02-24
728 of 864
necessary information to levy the tax with the County Auditor/Controller no later than the deadline of August 10, 2024.

ALTERNATIVES:

City Council may deny the staff recommendation. However, introduction of the ordinance is necessary to collect revenues to offset landscape maintenance expenses within CFD 2004-1.

STRATEGIC PLAN:

N/A
SUBMITTED BY:

Brian Desatnik, Development Services Director
RECOMMENDED BY:

Charles M. Duggan, Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Christopher Boatman, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:

Donald Young, One Stop Permit Center Manager
Fiscal Impact
Fiscal Year: FY 2024-25
Revenue Generating: Y
Appropriation Required Y/N: No
Discussion:

The special tax revenue and related expenses are included in the FY 24/25 budget. No general fund contributions are required for maintenance of CFD.

Attachments
Ordinance No. 2972
Exhibit "A" to Ord.

Exhibit "B" to Ord.

Attachment B- List of Annexations
Redlands Regular Meeting of 07-02-24
729 of 864

1 I:\cmo\Ordinances\2972 CFD_2004-1_Levy.FY_24-25.docx-jm

ORDINANCE NO. 2972

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

LEVYING SPECIAL TAXES WITHIN CITY OF REDLANDS COMMUN ITY FACILITIES DISTRICT NO. 2004 -1 (TRACT MAP NO. 16408; TRACT MAP NO. 16287; TENTATIVE TRACT MAP NO . 17253; PARCEL MAP NO . 17353; COMMISSION REVIEW AND APPROVAL (CRA) NO . 826 ; TRACT MAP NO . 16806; PARCEL MAP NO . 18208; PARCEL MAP NO . 1937 1; TRACT MAP NO . 16465; TRACT MAP NO. 16627; TRACT MAP NO. 18979; TRACT MAP NO. 19975; TRACT MAP NO . 20079; TRACT MAP NO. 18882; PARCEL MAP NO . 19496 ; PARCEL MAP NO. 18536-1; TRACT MAP NO . 18988; TRACT MAP NO . 17022; PARCEL MAP NO . 19465 ; TRACT MAP NO. 19942; TRACT MAP NO . 19956 ; TRACT MAP NO. 20126; PARCEL MAP NO. 19981 ; PARCEL MAP NO. 18536; CONDITIONAL USE PERMIT (CUP) NO. 1129 ; TRACT MAP NO. 20065; TRACT MAP NO. 20257 , PLANNED DEVELOPMENT NO. 4 .. TRACT MAP NO. 20065, AND TRACT MAP NO. 20336.

WHEREAS, the City Council of the City of Redlands (the “City”) has formed City of Redlands Community Facilities District No. 2004-1 (Tract Map No. 16408 – Centex Homes) and annexed Tract Map No. 16287 (Annexation No. 1), Tentative Tract Map No. 17253 (Annexation No. 3), Parcel Map No. 17353 (Annexation No. 4), CRA No. 826 (Annexation No. 5), Tract Map No. 16806 (Annexation No. 8), Parcel Map No. 18208 (Annexation No. 9), Parcel Map No. 19371 (Annexation No. 11), Tract Map No. 16465, Tract Map No. 16627, Tract Map No. 18979, Tract Map No. 19975 and Tract Map No. 20079 (Annexation No. 12), Tract Map No. 18882 (Annexation No. 13), Parcel Map No. 19496 (Annexation No. 14) , Parcel Map No. 18536-1 (Annexation No. 15), Tract Map No. 18988 (Annexation No. 16), Tract Map No. 17022 (Annexation No. 17), Parcel Map No. 19465 (Annexation No. 18), Tract Map No. 19942 (Annexation No. 19), Tract Map No. 19956 (Annexation No. 20) , Tract Map No . 20126 (Annexation No. 21), Parcel Map No. 19981 (Annexation No. 22) , Parcel Map No. 18536 (Annexation No. 23), CUP No. 1129 (Annexation No. 24), Tract Map No. 20065 (Annexation No. 25), Tract Map No. 20257 (Annexation No. 26), Planned Development No. 4 (Annexation No. 27), and Tract Map No. 20336 (Annexation No. 29) into the City of Redlands Community Facilities District No. 2004 -1 (the “Community Facilities District”), under and pursuant to the Mello -Roos Community Facilities Act of 1982 (the “Act”); and
WHEREAS, the City Council, as the legislative body of the Community Facilities District, is authorized under the Act to levy special taxes (the “Special Taxes”) to pay for the costs of certain facilities and to authorize the issuance of bonds secured by the Special Taxes under the Act; and WHEREAS, the City Council , pursuant to Ordinance No. 2584, adopted by the City Council of the City on August 3 , 2004, and Resolution No. 6481, adopted on May 2, 2006, authorized and levied the Special Taxes within the Community Facilities District; and WHEREAS, Section 53340 of the Act provides that the legislative body of a community facilities district may provide, by resolution, for the levy of the special tax in the current year or future tax years at the same rate or at a lower rate than the rate pr ovided by ordinance, if the resolution is adopted and a certified list of all parcels subject to the special tax levy including the amount of the tax to be levied on each parcel for the applicable tax year, is filed by the clerk or other official designated by the legislative body with the county auditor on or before the 1 0th day of August of that tax year; and
Redlands Regular Meeting of 07-02-24
730 of 864

2 I:\cmo\Ordinances\2972 CFD_2004-1_Levy.FY_24-25.docx-jm

WHEREAS, the City Council desires to levy the Special Taxes within the Community Facilities District for Fiscal Year 2024-2025;
NOW, THEREFORE, the City Council of the City of Redlands ORDAINS as follows:

Section 1. All of the above recitals are true and correct.

Section 2. The City Council hereby levies the Special Taxes for the Fiscal Year 2024- 2025 at the applied rates, up to the maximum, and with respect to the parcels as set forth in Exhibit A and Exhibit B hereto; provided, however, that the City Manager or the Finance Director of the City is hereby authorized, prior to the submission to the San Bernardino County Auditor/Controller and upon consultation with the City’s special tax consultant, Webb Municipal Finance, LLC (a) to make any necessary modifications to such Special Taxes to correct any errors, omissions or inconsistencies in the listing or categorization of parcels to be taxed (provided that any such modifications shall not result in an increase in the Special Tax applicable to any category of parcels), or (b) to lower such Special Tax rates to the extent such officer deems necessary upon receipt of the final pricing information. The City Clerk of the City is hereby authorized and directed to file with the San Bernardino County Auditor/Controller no later than August 10, 2022, a certified list of all parcels subject to the Special Tax levy including the amount of the Special Tax to be levied on each parcel for Fiscal Year 2024-2025.

Section 3. The officers and agents of the City are, and each of them hereby is, authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the le vy of the Special Taxes for Fiscal Year 2024-2025 as provided in this Resolution.

Section 4. All actions heretofore taken by the officers and agents of the City with respect to the levy of the Special Taxes for Fiscal Year 2024-2025 are hereby approved, confirmed and ratified.

Section 5. All of the collections of the special tax shall be used as provided for in the Act and the Resolution of Formation.

Section 6. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes, as such procedure may be modified by law from time to time.

Section 7. The City Council hereby determines that the adoption of this ordinance is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines section 15061(b)(3) because this City Council determines that it can be s een with certainty that approval of this ordinance will have no direct or indirect impact on the physical environment, and that approval of this ordinance is not a “project” under CEQA as that term is defined in Public Resources Code section 21065.

Section 8. Severability. If any section, sentence, clause or phrase of this ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect ot her provisions or Redlands Regular Meeting of 07-02-24
731 of 864

3 I:\cmo\Ordinances\2972 CFD_2004-1_Levy.FY_24-25.docx-jm

applications of this ordinance which can be given effect without the invalid provisions or application, and to this end the provisions of this ordinance are severable. The City Council of the City of Redlands hereby declares that it would have adopted this ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 9. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of this ordinance and shall cause it, or a summary of it, to be published once in a newspaper of general circulation within the City, and thereafter, this ordinance shall take effect as provided by law.

Eddie Tejeda, Mayor

ATTEST:

Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-02-24
732 of 864

I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing Ordinance was duly adopted at a regula r meeting thereof, held on the ________day of _____________, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Jeanne Donaldson, City Clerk

Redlands Regular Meeting of 07-02-24
733 of 864

2 EXHIBIT A
Annexation Levy Summary by Assessor’s Parcel Number

Redlands Regular Meeting of 07-02-24
734 of 864

3 EXHIBIT B
Annexation Listing with Maximum and Applied Rates

Redlands Regular Meeting of 07-02-24
735 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
1 0174651010000 $1,859.38 Original
2 0174651020000 $1,859.38
3 0174651030000 $1,859.38
4 0174651040000 $1,859.38
5 0174651050000 $1,859.38
6 0174651060000 $1,859.38
7 0174651070000 $1,859.38
8 0174651080000 $1,859.38
9 0174651090000 $1,859.38
10 0174651100000 $1,859.38
11 0174651110000 $1,859.38
12 0174651120000 $1,859.38
13 0174651130000 $1,859.38
14 0174651140000 $1,859.38
15 0174651150000 $1,859.38
16 0174651160000 $1,859.38
17 0174651170000 $1,859.38
18 0174651180000 $1,859.38
19 0174651190000 $1,859.38
20 0174651200000 $1,859.38
21 0174651210000 $1,859.38
22 0174651220000 $1,859.38
23 0174651230000 $1,859.38
24 0174651240000 $1,859.38
25 0174651250000 $1,859.38
26 0174651260000 $1,859.38
27 0174651270000 $1,859.38
28 0174651280000 $1,859.38
29 0174651290000 $1,859.38
30 0174651300000 $1,859.38
31 0174651310000 $1,859.38
32 0174651320000 $1,859.38
33 0174651330000 $1,859.38
34 0174651340000 $1,859.38
35 0174661010000 $1,859.38
36 0174661020000 $1,859.38
37 0174661030000 $1,859.38
38 0174661040000 $1,859.38
39 0174661050000 $1,859.38
40 0174661060000 $1,859.38
41 0174661070000 $1,859.38
42 0174661080000 $1,859.38
43 0174661090000 $1,859.38
44 0174661100000 $1,859.38
45 0174661110000 $1,859.38
46 0174661120000 $1,859.38
47 0174661130000 $1,859.38
48 0174661140000 $1,859.38
49 0174661150000 $1,859.38
50 0174661160000 $1,859.38
51 0174661170000 $1,859.38
52 0174661180000 $1,859.38
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 1 of 13 Redlands Regular Meeting of 07-02-24
736 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
53 0174661190000 $1,859.38
54 0174661200000 $1,859.38
55 0174661210000 $1,859.38
56 0174661220000 $1,859.38
57 0174661230000 $1,859.38
58 0174661240000 $1,859.38
59 0174661250000 $1,859.38
60 0174661260000 $1,859.38
61 0174661270000 $1,859.38
62 0174661280000 $1,859.38
63 0174661290000 $1,859.38
64 0174661300000 $1,859.38
65 1212371080000 $475.00 Annex No. 1
66 1212371090000 $475.00
67 1212371100000 $475.00
68 1212371110000 $475.00
69 1212371120000 $475.00
70 1212371130000 $475.00
71 1212371140000 $475.00
72 1212371150000 $475.00
73 1212371160000 $475.00
74 1212371170000 $475.00
75 1212371180000 $475.00
76 1212371190000 $475.00
77 0174252200000 $4,094.82 Annex No. 4
78 0174691060000 $247.84
79 0174691070000 $247.84
80 0174691080000 $247.84
81 0174691090000 $247.84
82 0174691100000 $247.84
83 0174691110000 $247.84
84 0174691120000 $247.84
85 0174691130000 $247.84
86 0174691140000 $247.84
87 0174691150000 $247.84
88 0174691160000 $338.67
89 0174691170000 $338.67
90 0174691180000 $338.67
91 0174691190000 $338.67
92 0174691200000 $338.67
93 0174691210000 $338.67
94 0174691220000 $338.67
95 0174691230000 $247.84
96 0174691240000 $247.84
97 0174691250000 $247.84
98 0174691260000 $247.84
99 0174691270000 $247.84
100 0174691280000 $247.84
101 0174691290000 $247.84
102 0174691300000 $247.84
103 0174691310000 $247.84
104 0174691320000 $247.84
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 2 of 13 Redlands Regular Meeting of 07-02-24
737 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
105 0174691330000 $269.40
106 0174691340000 $269.40
107 0174691350000 $269.40
108 0174691360000 $269.40
109 0292061490000 $7,012.76 Annex No. 5
110 0292061500000 $3,287.24
111 0292631020000 $435.48 Annex No. 9
112 0292631030000 $435.48
113 0292631040000 $435.48
114 0292631050000 $435.48
115 0292631060000 $435.48
116 0292631070000 $435.48
117 0292631080000 $435.48
118 0292631090000 $435.48
119 0292631100000 $435.48
120 0292631110000 $435.48
121 0292631120000 $435.48
122 0292631130000 $435.48
123 0292631140000 $435.48
124 0292631150000 $435.48
125 0292631160000 $435.48
126 0292631170000 $435.48
127 0292631180000 $435.48
128 0292631190000 $435.48
129 0292631200000 $435.48
130 0292631210000 $435.48
131 0292631220000 $435.48
132 0292631230000 $435.48
133 0292631240000 $435.48
134 0292631250000 $435.48
135 0292631260000 $435.48
136 0292631270000 $435.48
137 0292631280000 $435.48
138 0292631290000 $435.48
139 0292631300000 $435.48
140 0292631310000 $435.48
141 0292631320000 $435.48
142 1212451010000 $1,008.20 Annex No. 12a
143 1212451020000 $1,008.20
144 1212451030000 $1,008.20
145 1212451040000 $1,008.20
146 1212451050000 $1,008.20
147 1212451060000 $1,008.20
148 1212451070000 $1,008.20
149 1212451080000 $1,008.20
150 1212451090000 $1,008.20
151 1212451100000 $1,008.20
152 1212451110000 $1,008.20
153 1212451120000 $1,008.20
154 1212451130000 $1,008.20
155 1212451140000 $1,008.20
156 1212451150000 $1,008.20
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 3 of 13 Redlands Regular Meeting of 07-02-24
738 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
157 1212451160000 $1,008.20
158 1212451170000 $1,008.20
159 1212451180000 $1,008.20
160 1212451190000 $1,008.20
161 1212451200000 $1,008.20
162 1212451210000 $1,008.20
163 1212451220000 $1,008.20
164 1212451230000 $1,008.20
165 1212451240000 $1,008.20
166 1212451250000 $1,008.20
167 1212451260000 $1,008.20
168 1212451270000 $1,008.20
169 1212451280000 $1,008.20
170 1212451290000 $1,008.20
171 1212451300000 $1,008.20
172 1212451310000 $1,008.20
173 1212451320000 $1,008.20
174 1212451330000 $1,008.20
175 1212451340000 $1,008.20
176 1212451350000 $1,008.20
177 1212451360000 $1,008.20
178 1212451370000 $1,008.20
179 1212451380000 $1,008.20
180 1212451390000 $1,008.20
181 1212451400000 $1,008.20
182 1212451410000 $1,008.20
183 1212451420000 $1,008.20
184 1212451430000 $1,008.20
185 1212451440000 $1,008.20
186 1212451450000 $1,008.20
187 1212451460000 $1,008.20
188 1212451470000 $1,008.20
189 1212451480000 $1,008.20
190 1212451490000 $1,008.20
191 1212451500000 $1,008.20
192 1212451510000 $1,008.20
193 1212451520000 $1,008.20
194 1212451530000 $1,008.20
195 1212451540000 $1,008.20
196 1212451550000 $1,008.20
197 1212451560000 $1,008.20
198 1212451570000 $1,008.20
199 1212451580000 $1,008.20
200 1212451590000 $1,008.20
201 1212451600000 $1,008.20
202 1212451610000 $1,008.20
203 0168891010000 $1,112.50 Annex. No. 12b
204 0168891020000 $1,112.50
205 0168891030000 $1,112.50
206 0168891040000 $1,112.50
207 0168891050000 $1,112.50
208 0168891060000 $1,112.50
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 4 of 13 Redlands Regular Meeting of 07-02-24
739 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
209 0168891070000 $1,112.50
210 0168891080000 $1,112.50
211 0168891090000 $1,112.50
212 0168891100000 $1,112.50
213 0168891110000 $1,112.50
214 0168891120000 $1,112.50
215 0168891130000 $1,112.50
216 0168891140000 $1,112.50
217 0168891150000 $1,112.50
218 0168891160000 $1,112.50
219 0168891170000 $1,112.50
220 0168891180000 $1,112.50
221 0168891190000 $1,112.50
222 0168891200000 $1,112.50
223 0168071170000 $979.51 Annex. No. 12c
224 0168071180000 $979.51
225 0168071190000 $979.51
226 0168071200000 $979.51
227 0168071210000 $979.51
228 0168071220000 $979.51
229 0168071230000 $979.51
230 0168071240000 $979.51
231 0168071250000 $979.51
232 0168071260000 $979.51
233 0168071270000 $979.51
234 0168071280000 $979.51
235 0168071290000 $979.51
236 0168071300000 $979.51
237 0168071310000 $979.51
238 0168071320000 $979.51
239 0168071330000 $979.51
240 0168071340000 $979.51
241 0168071350000 $979.51
242 0168071360000 $979.51
243 0168071370000 $979.51
244 0168071380000 $979.51
245 0168071390000 $979.51
246 0168071400000 $979.51
247 0168071410000 $979.51
248 0168071420000 $979.51
249 0168071430000 $979.51
250 0168071440000 $979.51
251 0168071450000 $979.51
252 0168071460000 $979.51
253 0168071470000 $979.51
254 0168071480000 $979.51
255 0168071490000 $979.51
256 0168071500000 $979.51
257 0168071510000 $979.51
258 0168071520000 $979.51
259 0168071530000 $979.51
260 0168071540000 $979.51
261 0168071550000 $979.51
262 0168071560000 $979.51
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 5 of 13 Redlands Regular Meeting of 07-02-24
740 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
263 0168071570000 $979.51
264 0168071580000 $979.51
265 0168071590000 $979.51
266 0168071600000 $979.51
267 0168071610000 $979.51
268 0168071620000 $979.51
269 0168071630000 $979.51
270 0168071640000 $979.51
271 0168071650000 $979.51
272 0168071660000 $979.51
273 0168071670000 $979.51
274 0168071680000 $979.51
275 0168071690000 $979.51
276 0168071700000 $979.51
277 0168071710000 $979.51
278 0168901010000 $979.51
279 0168901020000 $979.51
280 0168901030000 $979.51
281 0168901040000 $979.51
282 0168901050000 $979.51
283 0168901060000 $979.51
284 0168901070000 $979.51
285 0168901080000 $979.51
286 0168901090000 $979.51
287 0168901100000 $979.51
288 0168901110000 $979.51
289 0168901120000 $979.51
290 0168901130000 $979.51
291 0168901140000 $979.51
292 0168901150000 $979.51
293 0168901160000 $979.51
294 0168901170000 $979.51
295 0168901180000 $979.51
296 0168901190000 $979.51
297 0168901200000 $979.51
298 0168901210000 $979.51
299 0168901220000 $979.51
300 0168901230000 $979.51
301 0168901240000 $979.51
302 0168901250000 $979.51
303 0168901260000 $979.51
304 0168901270000 $979.51
305 0168901280000 $979.51
306 0168901290000 $979.51
307 0168901300000 $979.51
308 0168901310000 $979.51
309 0168901320000 $979.51
310 0168901330000 $979.51
311 0168901340000 $979.51
312 0168901350000 $979.51
313 0168901360000 $979.51
314 0168901370000 $979.51
315 0168901380000 $979.51
316 0168901390000 $979.51
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 6 of 13 Redlands Regular Meeting of 07-02-24
741 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
317 0168901400000 $979.51
318 0168901410000 $979.51
319 0168901420000 $979.51
320 0168901430000 $979.51
321 0168901440000 $979.51
322 0168901450000 $979.51
323 0168901460000 $979.51
324 0168901470000 $979.51
325 0168901480000 $979.51
326 0168901490000 $979.51
327 0168901500000 $979.51
328 0168901510000 $979.51
329 0168901520000 $979.51
330 0168901530000 $979.51
331 0168901540000 $979.51
332 0168901550000 $979.51
333 0168901560000 $979.51
334 0168901570000 $979.51
335 0168901580000 $979.51
336 0168901590000 $979.51
337 0168901600000 $979.51
338 0168901610000 $979.51
339 0168901620000 $979.51
340 0168901630000 $979.51
341 0168901640000 $979.51
342 0168901650000 $979.51
343 0168901660000 $979.51
344 0168901670000 $979.51
345 0168071760000 $1,000.00 Annex No. 12d
346 0168071770000 $1,000.00
347 0168071780000 $1,000.00
348 0168071790000 $1,000.00
349 0168071800000 $1,000.00
350 0168071810000 $1,000.00
351 0168071820000 $1,000.00
352 0168071830000 $1,000.00
353 0168071840000 $1,000.00
354 0168071850000 $1,000.00
355 0168071860000 $1,000.00
356 0168071870000 $1,000.00
357 0168071880000 $1,000.00
358 0168071890000 $1,000.00
359 0292053160000 $20,499.84 Annex No. 14
360 0167422010000 $1,231.71 Annex No. 16
361 0167422020000 $1,231.71
362 0167422030000 $1,231.71
363 0167422040000 $1,231.71
364 0167422050000 $1,231.71
365 0167422060000 $1,231.71
366 0167422070000 $1,231.71
367 0167422080000 $1,231.71
368 0167422090000 $1,231.71
369 0167422100000 $1,231.71
370 0167422110000 $1,231.71
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 7 of 13 Redlands Regular Meeting of 07-02-24
742 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
371 0167422120000 $1,231.71
372 0167422130000 $1,231.71
373 0167422140000 $1,231.71
374 0167422150000 $1,231.71
375 0167422160000 $1,231.71
376 0167422170000 $1,231.71
377 0167422180000 $1,231.71
378 0167422190000 $1,231.71
379 0167422200000 $1,231.71
380 0167422210000 $1,231.71
381 0167422220000 $1,231.71
382 0167422230000 $1,231.71
383 0167422240000 $1,231.71
384 0167422250000 $1,231.71
385 0167422260000 $1,231.71
386 0167422270000 $1,231.71
387 0167422280000 $1,231.71
388 0167422290000 $1,231.71
389 0167422300000 $1,231.71
390 0167422310000 $1,231.71
391 0167422320000 $1,231.71
392 0167422330000 $1,231.71
393 0167422340000 $1,231.71
394 0167422350000 $1,231.71
395 0167422360000 $1,231.71
396 0167422370000 $1,231.71
397 0167422380000 $1,231.71
398 0167422390000 $1,231.71
399 0167422400000 $1,231.71
400 0167422410000 $1,231.71
401 0167422420000 $1,231.71
402 0167432010000 $1,231.71
403 0167432020000 $1,231.71
404 0167432030000 $1,231.71
405 0167432040000 $1,231.71
406 0167432050000 $1,231.71
407 0167432060000 $1,231.71
408 0167432070000 $1,231.71
409 0167432080000 $1,231.71
410 0167432090000 $1,231.71
411 0167432100000 $1,231.71
412 0167432110000 $1,231.71
413 0167432120000 $1,231.71
414 0167432130000 $1,231.71
415 0167432140000 $1,231.71
416 0167432150000 $1,231.71
417 0167432160000 $1,231.71
418 0167432170000 $1,231.71
419 0167432180000 $1,231.71
420 0167432190000 $1,231.71
421 0167432200000 $1,231.71
422 0167432210000 $1,231.71
423 0167432220000 $1,231.71
424 0167432230000 $1,231.71
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 8 of 13 Redlands Regular Meeting of 07-02-24
743 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
425 0167432240000 $1,231.71
426 0167432250000 $1,231.71
427 0167432260000 $1,231.71
428 0167432270000 $1,231.71
429 0167432280000 $1,231.71
430 0167432290000 $1,231.71
431 0167432300000 $1,231.71
432 0167432310000 $1,231.71
433 0167432320000 $1,231.71
434 0167432330000 $1,231.71
435 0167432340000 $1,231.71
436 0167432350000 $1,231.71
437 0167432360000 $1,231.71
438 0167432370000 $1,231.71
439 0167432380000 $1,231.71
440 0167432390000 $1,231.71
441 0167432400000 $1,231.71
442 0299431010000 $1,272.06 Annex No. 19
443 0299431020000 $1,272.06
444 0299431030000 $1,272.06
445 0299431040000 $1,272.06
446 0299431050000 $1,272.06
447 0299431060000 $1,272.06
448 0299431070000 $1,272.06
449 0299431080000 $1,272.06
450 0299431090000 $1,272.06
451 0299431100000 $1,272.06
452 0299431110000 $1,272.06
453 0299431120000 $1,272.06
454 0299431130000 $1,272.06
455 0299431140000 $1,272.06
456 0299431150000 $1,272.06
457 0299431160000 $1,272.06
458 0299431170000 $1,272.06
459 0299431180000 $1,272.06
460 0299431190000 $1,272.06
461 0299431200000 $1,272.06
462 0299431210000 $1,272.06
463 0299431220000 $1,272.06
464 0299431230000 $1,272.06
465 0299431240000 $1,272.06
466 0299431250000 $1,272.06
467 0299431260000 $1,272.06
468 0299431270000 $1,272.06
469 0299431280000 $1,272.06
470 0299431290000 $1,272.06
471 0299431300000 $1,272.06
472 0299431310000 $1,272.06
473 0299431320000 $1,272.06
474 0299431330000 $1,272.06
475 0299431340000 $1,272.06
476 0299421010000 $1,075.00 Annex No. 20
477 0299421020000 $1,075.00
478 0299421030000 $1,075.00
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 9 of 13 Redlands Regular Meeting of 07-02-24
744 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
479 0299421040000 $1,075.00
480 0299421050000 $1,075.00
481 0299421060000 $1,075.00
482 0299421070000 $1,075.00
483 0299421080000 $1,075.00
484 0299421090000 $1,075.00
485 0299421100000 $1,075.00
486 0299421110000 $1,075.00
487 0299421120000 $1,075.00
488 0299421130000 $1,075.00
489 0299421140000 $1,075.00
490 0299421150000 $1,075.00
491 0299421160000 $1,075.00
492 0299421170000 $1,075.00
493 0299421180000 $1,075.00
494 0299421190000 $1,075.00
495 0299421200000 $1,075.00
496 0299421210000 $1,075.00
497 0299421220000 $1,075.00
498 0299421230000 $1,075.00
499 0299421240000 $1,075.00
500 0299421250000 $1,075.00
501 0299421260000 $1,075.00
502 0299421270000 $1,075.00
503 0299421280000 $1,075.00
504 0299421290000 $1,075.00
505 0299421300000 $1,075.00
506 0299421310000 $1,075.00
507 0299421320000 $1,075.00
508 0299421330000 $1,075.00
509 0299421340000 $1,075.00
510 0299421350000 $1,075.00
511 0299421360000 $1,075.00
512 0299421370000 $1,075.00
513 0299421380000 $1,075.00
514 0299421390000 $1,075.00
515 0299421400000 $1,075.00
516 0168911010000 $1,304.76 Annex No. 21
517 0168911020000 $1,304.76
518 0168911030000 $1,304.76
519 0168911040000 $1,304.76
520 0168911050000 $1,304.76
521 0168911060000 $1,304.76
522 0168911070000 $1,304.76
523 0168911080000 $1,304.76
524 0168911090000 $1,304.76
525 0168911100000 $1,304.76
526 0168911110000 $1,304.76
527 0168911120000 $1,304.76
528 0168911130000 $1,304.76
529 0168911140000 $1,304.76
530 0168911150000 $1,304.76
531 0168911160000 $1,304.76
532 0168911170000 $1,304.76
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 10 of 13 Redlands Regular Meeting of 07-02-24
745 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
533 0168911180000 $1,304.76
534 0168911190000 $1,304.76
535 0168911200000 $1,304.76
536 0168911210000 $1,304.76
537 0168911220000 $1,304.76
538 0168911230000 $1,304.76
539 0168911240000 $1,304.76
540 0168911250000 $1,304.76
541 0168911260000 $1,304.76
542 0168911270000 $1,304.76
543 0168911280000 $1,304.76
544 0168911290000 $1,304.76
545 0168911300000 $1,304.76
546 0168911310000 $1,304.76
547 0168911320000 $1,304.76
548 0168911330000 $1,304.76
549 0168911340000 $1,304.76
550 0168911350000 $1,304.76
551 0168911360000 $1,304.76
552 0168911370000 $1,304.76
553 0168911380000 $1,304.76
554 0168911390000 $1,304.76
555 0168911400000 $1,304.76
556 0168911410000 $1,304.76
557 0168911420000 $1,304.76
558 0168911430000 $1,304.76
559 0168911440000 $1,304.76
560 0168911450000 $1,304.76
561 0168911460000 $1,304.76
562 0168911470000 $1,304.76
563 0168911480000 $1,304.76
564 0168911490000 $1,304.76
565 0168911500000 $1,304.76
566 0168911510000 $1,304.76
567 0168911520000 $1,304.76
568 0168921010000 $1,304.76
569 0168921020000 $1,304.76
570 0168921030000 $1,304.76
571 0168921040000 $1,304.76
572 0168921050000 $1,304.76
573 0168921060000 $1,304.76
574 0168921070000 $1,304.76
575 0168921080000 $1,304.76
576 0168921090000 $1,304.76
577 0168921100000 $1,304.76
578 0168921110000 $1,304.76
579 0168921120000 $1,304.76
580 0168921130000 $1,304.76
581 0168921140000 $1,304.76
582 0168921150000 $1,304.76
583 0168921160000 $1,304.76
584 0168921170000 $1,304.76
585 0168921180000 $1,304.76
586 0168921190000 $1,304.76
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 11 of 13 Redlands Regular Meeting of 07-02-24
746 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
587 0168921200000 $1,304.76
588 0168921210000 $1,304.76
589 0168921220000 $1,304.76
590 0168921230000 $1,304.76
591 0168921240000 $1,304.76
592 0168921250000 $1,304.76
593 0168921260000 $1,304.76
594 0168921270000 $1,304.76
595 0168921280000 $1,304.76
596 0168921290000 $1,304.76
597 0168921300000 $1,304.76
598 0168921310000 $1,304.76
599 0168921320000 $1,304.76
600 0168921330000 $1,304.76
601 0168921340000 $1,304.76
602 0168921350000 $1,304.76
603 0168921360000 $1,304.76
604 0168921370000 $1,304.76
605 0168921380000 $1,304.76
606 0168921390000 $1,304.76
607 0168921400000 $1,304.76
608 0168921410000 $1,304.76
609 0168921420000 $1,304.76
610 0168921430000 $1,304.76
611 0168921440000 $1,304.76
612 0168921450000 $1,304.76
613 0168921460000 $1,304.76
614 0168921470000 $1,304.76
615 0168921480000 $1,304.76
616 0168921490000 $1,304.76
617 0168921500000 $1,304.76
618 0168921510000 $1,304.76
619 0168921520000 $1,304.76
620 0168921530000 $1,304.76
621 0174711010000 $448.28 Annex No. 25
622 0174711020000 $448.28
623 0174711030000 $448.28
624 0174711040000 $448.28
625 0174711050000 $448.28
626 0174711060000 $448.28
627 0174711070000 $448.28
628 0174711080000 $448.28
629 0174711090000 $448.28
630 0174711100000 $448.28
631 0174711110000 $448.28
632 0174711120000 $448.28
633 0174711130000 $448.28
634 0174711140000 $448.28
635 0174711150000 $448.28
636 0174711160000 $448.28
637 0174711170000 $448.28
638 0174711180000 $448.28
639 0174711190000 $448.28
640 0174711200000 $448.28
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 12 of 13 Redlands Regular Meeting of 07-02-24
747 of 864
Line Assessor's Special Tax
No. Parcel No. Levy
EXHIBIT "A"

ANNEXATION LEVY SUMMARY
City of Redlands
Community Facilities District No. 2004-1
Fiscal Year 2024-2025 Special Tax Levy
641 0174711210000 $448.28
642 0174711220000 $448.28
643 0174711230000 $448.28
644 0174711240000 $448.28
645 0174711250000 $448.28
646 0174711260000 $448.28
647 0174711270000 $448.28
648 0174711280000 $448.28
649 0174711290000 $448.28
649 Parcels Totals $736,000.61
M:\CITIES\Redlands\LEVY\FY 24-25\FY 24-25 Annexation Levy Breakdown Ex A.xlsSheet1 Page: 13 of 13 Redlands Regular Meeting of 07-02-24
748 of 864
Maintenance
Category
Tract/ Parcel
Map No. Landscape Areas BUs
FY 24-25
Maximum Rates
per Benefit Unit (1)
FY 24-25
Maximum Total
Assessment
FY 24-25
Applied Rates
per Benefit Unit
FY 24-25
Total Levy
per Annexation (2)
FY 24-25
Percent of
Max Tax

4.26% inc.
$2,357.86 $150,902.81 $1,859.38

4.57% inc.
$608.88 $7,306.59 $475.00
n/a n/a n/a

4.26% inc.
$404.32 $14,959.96 $0.00

4.26% inc.
$2,616.21 $15,174.01 $2,155.17

4.26% inc.
$1,030.63 $12,109.88 $876.60
n/a n/a n/a
n/a n/a n/a

4.26% inc.
$389.16 $2,334.94 $0.00

4.26% inc.
$363.08 $15,449.05 $317.27
n/a n/a n/a

4.26% inc.
$348.98 $13,924.34 $0.00

4.26% inc.
$1,132.87 $69,104.95 $1,008.20

4.26% inc.
$1,266.15 $25,322.93 $1,112.50

4.26% inc.
$1,132.87 $138,209.89 $979.51

4.26% inc.
$1,132.87 $15,860.15 $1,000.00

4.26% inc.
$2,064.52 $53,677.53 $0.00

4.26% inc.
$342.14 $24,353.40 $288.00

4.26% inc.
$186.90 $9,438.63 $0.00

4.26% inc.
$1,371.99 $112,502.81 $1,231.71

4.26% inc.
$1,262.27 $15,147.22 $0.00

4.26% inc.
$849.32 $15,117.97 $0.00

4.26% inc.
$1,428.82 $48,580.00 $1,272.06

4.26% inc.
$1,207.52 $48,300.91 $1,075.00

4.26% inc.
$1,461.74 $153,482.50 $1,304.76

4.26% inc.
$310.61 $4,808.30 $0.00
EXHIBIT "B"

CITY OF REDLANDS
CFD 2004-1
Annexation 20 H TTM 19956
Highland Ave. & Wabash St.-
Ground cover, shrubs, turf,
trees and palm trees

40.00 Annexation 12c G
TR 18979, 19975
&
20079
Street trees, parkways, basin,
proposed Orange groves 122.00
Street trees, parkways, basin,
proposed Orange groves
M
(HOA Maintained)
Annexation 12d G
TR 18979, 19975
&
20079
A PM 18536-1
Street trees, parkways, basin,
proposed Orange groves 14.00
TR 18882
Ground cover, shrubs, turf,
trees and palm trees 50.50

64.00 TR 16586
TR 16408 Please see Orig. ER
Annexation 10 On Hold TR 18762
Annexation
California Street center
Median 11.75

5.80 37.00
Annexation 8
TR 14790-1
5 Annexation 3
K
E
Annexation 6 Failed

42.55Redlands Median
n/a
n/a

6.00 A PM 18208
TTM 16806
Parcel 2 of
PM 15573On Hold
A
(Construction has
not started)
n/a

12.00 Annexation
A
(Construction has
not started)
0 Annexation
2 Annexation 4
B
On Hold
TTM 17253
A
(BOA Maintained)
TR 16287
Annexation 12b H TR 16627
Drainage Basin
Ford Street Median
CRA 826
PM 17353
n/a

20.00 Street trees, parkways, basin,
proposed Orange groves 61.00

39.90Street Trees on Lugonia &
Wabash
Annexation 16 I TR 18988
G TR 16465
Riverview & Texas St.- Parks,
slopes, parkways, median,
open space, seating and
monument structures

82.00 Annexation 14 A Planned Dev. # 1
PM 19496
California Median
Owner to maintain Parkways 71.18
Annexation Street Trees 26.00
PM 19371
District
Landscaping
Annexation 12a
Annexation 11
Annexation 18
Orig.
1 Annexation
9 Annexation 7
13 15
CFD 2004-1
Annexation
E
(Owner Maintained) PM 19465 Ground cover, shrubs, turf, trees and palm trees 17.80
Annexation 17 H TR 17022 Ground cover, shrubs, citrus
and palm trees 12.00
Annexation 19 J TTM 19942
Sylvan Blvd & Wabash St.-
Mulch, shrubs, trees, orange
groves, trees and palm trees

34.00 Annexation 22 A
(Owner Maintained)
PM 19981
CRA 900 Parkway 15.48
Annexation 21 J TR 20126
Judson St & Lugonia Ave.-
Ground cover, mulch, shrubs,
orange groves, trees and basin
105.00
$119,000.00 78.86%
$5,700.00 78.01%
n/a n/a
$0.00 0.00%
$12,500.00 82.38%
$10,300.00 85.05%
n/a n/a
n/a n/a
$0.00 0.00%
$13,500.00 87.38%
n/a n/a
$0.00 0.00%
$61,500.00 89.00%
$22,250.00 87.87%
$119,500.00 86.46%
$14,000.00 88.27%
$0.00 0.00%
$20,500.00 84.18%
$0.00 0.00%
$101,000.00 89.78%
$0.00 0.00%
$0.00 0.00%
$43,250.00 89.03%
$43,000.00 89.03%
$137,000.00 89.26%
$0.00 0.00%
Page: 1 of 2
Redlands Regular Meeting of 07-02-24
749 of 864
Maintenance
Category
Tract/ Parcel
Map No. Landscape Areas BUs
FY 24-25
Maximum Rates
per Benefit Unit (1)
FY 24-25
Maximum Total
Assessment
FY 24-25
Applied Rates
per Benefit Unit
FY 24-25
Total Levy
per Annexation (2)
FY 24-25
Percent of
Max Tax
EXHIBIT "B"

CITY OF REDLANDS
CFD 2004-1
District
Landscaping

4.26% inc.
$419.90 $4,010.00 $0.00

4.26% inc.
$779.81 $3,080.23 $0.00

4.26% inc.
$886.19 $25,699.45 $448.28

4.26% inc.
$381.57 $78,985.67 $0.00

4.26% inc.
$272.55 $12,303.01 $0.00
$550.00 $174,350.00 $0.00
(1) The percentage increase listed is rounded to two decimal places, but has not been rounded when calculating the maximum rates for Fiscal Year 2024-25. (2) Amount may be slightly off due to rounding.
$13,000.00 50.58%
Annexation 27 A
Mountain View
Building
Planned Dev. #4
Split Rail Fence & Concrete 45.14
Annexation 26
Annexation 24 E CUP 1129 Parkway 3.95
Annexation 23 B PM 18536 Parkway 9.55
B TR 20257 Texas & Pioneer - Parkway
trees 207.00
Annexation 25 G TTM 20065
Letter Lot A, infiltration nasin,
trenches, storm drain facilities,
and street trees

29.00 $0.00 0.00%
$0.00 0.00%
$0.00 0.00%
$0.00 0.00%
$0.00 0.00%Annexation 29 D TR 20336 Parkways, Sports Park, and drainage basins 317.00
District Max Rates A pplied Rates Notes
Original District (TR 16408) $2,357.86 $1, 859.38
Annexation No. 1 (TR 16287) $608.88 $475. 00
Annexation No. 2 (TR 16586) n/a n /a Annexation is on Hold Annexation No. 3 (TTM 17253) $404.32 $0. 00
Annexation No. 4 (PM 17353) $2,616.21 $2, 155.17
Annexation No. 5 (CRA 826) $1,030.63 $876. 60
Annexation No. 6 (TR 14790-1) n/a n /a Annexation Failed Annexation No. 7 (PM 15573) n/a n /a Annexation is on Hold Annexation No. 8 (TR 16806) $389.16 $0. 00
Annexation No. 9 (PM 18208) $363.08 $317. 27
Annexation No. 10 (TR 18762) n/a n /a Annexation is on Hold Annexation No. 11 (PM 19731) $348.98 $0. 00 Business Owner's Association maintained.

Annexation No. 12a (TR 16465) $1,132.87 $1, 008.20
Annexation No. 12b (TR 16627) $1,266.15 $1, 112.50
Annexation No. 12c (TR 18979, 19975 & 20079) $1,132.87 $979. 51 Annexation No. 12d (TR 18979, 19975 & 20079) $1,132.87 $1, 000.00 Annexation No. 13 (TR 18882) $2,064.52 $0. 00 HOA Maintained Annexation No. 14 (PM 19496) $342.14 $288. 00
Annexation No. 15 (PM 18536-1) $186.90 $0. 00
Annexation No. 16 (TR 18988) $1,371.99 $1, 231.71
Annexation No. 17 (TR 17022) $1,262.27 $0. 00
Annexation No. 18 (PM 19465) $849.32 $0. 00 Owner Maintained Annexation No. 19 (PM 19942) $1,428.82 $1, 272.06
Annexation No. 20 (TM 19956) $1,207.52 $1, 075.00
Annexation No. 21 (TR 20126) $1,461.74 $1, 304.76
Annexation No. 22 (PM 19981 CRA 900) $310.61 $0. 00 Owner Maintained Annexation No. 23 (PM 18536) $419.90 $0. 00
Annexation No. 24 (CUP 1129) $779.81 $0. 00
Annexation No. 25 (TTM 20065) $886.19 $448. 28
Annexation No. 26 (TR20257 ) $381.57 $0. 00
Annexation No. 27 (Planned Dev #4) $272.55 $0. 00
Annexation No. 29 (TR 20036) $550.00 $0. 00
Max/Applied Tax Rates per Benefit Unit for FY 24-25
Page: 2 of 2
Redlands Regular Meeting of 07-02-24
750 of 864

CFD 2004-1 Annexations List

In August 2004 Council approved the establishment of community facilities d istrict (CFD) No. 2004-1, for Tract No. 16408, the Centex tract located at the southwest corner of Fifth Avenue and Wabash Avenue in the City of Redlands. The CFD was developed to cover the ongoing cost of maintenance of street trees, citrus groves landscaping and other appurtenances located along Fifth Avenue and Wabash Avenue.

In May 2006 Council approved Annexation No. 1 (Tract No. 16287) to the CFD, located at Occidental Drive and Crystal Court for the maintenance of landscaping and water quality treatment devices in the open space lots. During this last year, Annexation No. 1 subdivided the properties on site from two lots to twelve lots.

Annexation No. 2 (Tentative Tract No. 16586), located north of I-10 and both sides of the proposed Wabash Street alignment has been on hold since October 2006.

In July 2006 Council approved Annexation No. 3 (Tentative Tract No. 17253) to the CFD, located at the southwest corner of Lugonia Avenue and Church Street for the maintenance of the landscape and the associated irrigation equipment on Lugonia Avenue parkway frontages. This project has not yet begun construction.

In October 2008 Council approved Annexation No. 4 (Parcel Map No. 17353) to the CFD, located at Ford Street and Interstate 10 for the maintenance of the landscape in the median island and the associated irrigation equipment.

In October 2008 Council approved Annexation No. 5 (Commission Review and Approval No. 826) to the CFD, located at California Street and Orange Tree Lane for the maintenance of the landscape in the median island and the associated irrigation equipment on Ca lifornia Street and the parkway frontages along both streets.

Annexation No. 6 (Tract No 14790-1), located adjacent to Sunset Hills Lane, west of Alessandro Road did not receive sufficient votes needed to annex into the CFD in June 2009.

Annexation No. 7 (Parcel 2 of Parcel Map No. 15573) , located at the northeast corner of San Bernardino Avenue and Mountain View Avenue, has been on hold since February 2011.

In February 2011 Council approved Annexation No. 8 ( Tentative Tract No. 16806) to the CFD, located at southeast corner of Pennsylvania Avenue and Texas Street for the maintenance of the landscape and the associated irrigation equipment on Pennsylvania Avenue and Texas Street parkway frontages. This project has not yet begun construction.

In November 2012 Council approved Annexation No. 9 (Parcel Map No, 18208) to the CFD located at the southeast corner of Redlands Boulevard and Nevada Street for the maintenance of landscaping and the associated irrigation equipment on Redlands Boulevard an d Nevada Street parkway frontages and the Redlands Boulevard raised center median.

Redlands Regular Meeting of 07-02-24
751 of 864

Annexation No. 10 (Tract No. 18762 -1), located at the northeast corner of Orange Street and Lugonia Avenue, has been completed since July 2016. Annexation No. 10 is dormant because the property owners have agreed to be responsible for all landscaping and irrigation efforts themselves; therefore the annexations are not being assessed.

In June 2014 Council approved Annexation No. 11 (Parcel Map No. 19371) to the CFD located at the northwest corner of Lugonia Avenue and Wabash Avenue for the maintenance of landscaping and the associated irrigation equipment on Lugonia Avenue and Wabash Avenue Street parkway frontages. Annexation No. 11 is dormant because the property owners have agreed to be responsible for all landscaping and irrigation efforts themselves; therefore the annexations are not being assessed.

In June 2014 Council approved Annexation No. 12 (Tract Map Nos. 16465 and 16627) to the CFD located at the southwest and southeast corners of Pioneer Avenue and Judson Street, respectively, for the maintenance of landscaping and the associated irrigation equipment on Pi oneer Avenue and Judson Street parkway frontages, maintenance of landscaping and water quality treatment devices in the open space lots, and for the maintenance of landscaping and the associated irrigation equipment on the common area lots. Annexation No. 12a (Tract No. 16465) is nearly complete.

A 50 % assessment is being proposed to establish a reserve fund. Annexation No. 12b was completed in July 2016 and is being assessed. Annexation No. 12c (Tract Map Nos. 18979 and 19975) located east of Tract Map No. 16627 and between Pioneer Avenue and Pennsylvania Avenue was approved by City Council in June 2016. A 50 % assessment is being proposed to establish a reserve fund. Annexation No. 12d (Tract Map No. 20079) was approved by Council in May 2018. A 50% assessment is being proposed to establish a reserve fund.

In June 2014 Council approved Annexation No. 13 (Tract Map No. 18882) to the CFD located at the southwest corner of San Bernardino Avenue and Dearborn Street, respectively, for the maintenance of landscaping and the associated irrigation equipment on San Bernardino Avenue and Dearborn Street parkway frontages and for the maintenance of landscaping and the associated irrigation equipment on the common area lots with the exception of Lot B. Annexation No. 13 is dormant because the property owners have agreed to be responsible for all landscaping and irrigation efforts themselves; therefore the annexation is not being assessed.

In September 2015 Council approved Annexation N o. 14 (Parcel Map No. 19496 ) to the CFD located at the northeast corner of California Street and Lugonia Avenue for the maintenance of landscaping and associated irrigation equipment on the California Street center median. The maintenance of landscaping and associated irrigation equipment on California Street and Lugonia Avenue parkway frontages will be maintained by the property owner and will not be assessed.

In December 2017 Council approved Annexation No. 15 (Parcel Map No. 18535 -1) to the CFD located at the northwest corner of Eureka Street and Stuart Avenue for the maintenance of street trees, landscaping and irrigation in the rights -of-way and landscape maintenance along the property frontage. Annexation No. 15 will be dormant because the property owners have agreed to be responsible for all landscaping and irrigation efforts themselves; therefore the annexation is not being assessed.

Redlands Regular Meeting of 07-02-24
752 of 864

In April 2017 Council approved Annexation No, 16 (Tract Map No. 18988) to the CFD located on the north side of Pioneer Avenue, east of Texas Street for the maintenance of parks, slopes, parkways, median, open space, shade and seating structures, and monuments within and adjacent to said tract.

In July 2017 Council approved Annexation No. 17 (Tract Map No. 17022) to the CFD located at the northeast corner of Pioneer Avenue and Texas Street for the maintenance of slopes, parkways, open space and citrus trees within and adjacent to the tract . This project has not yet begun construction.

In May 2018 Council approved Annexation No. 18 (Parcel Map No. 19465) to the CFD located at the southeast corner of Alabama Street and Park Avenue for the maintenance of street trees, landscaping and irrigation in the rights -of-way and landscape maintenance easement along the property frontage within and in the parcel map. The maintenance of landscaping and associated irrigation equipment on Alabama Street and Park Avenue parkway frontages and landscape maintenance easement will be maintained by the property owner and will not be assessed.

In January, 2020 Council approved Annexation No. 19 ( Tract Map No. 19942) located at the northeast corner of Wabash Avenue and Sylvan Boulevard was approved for the maintenance of parks, slopes, parkways, and open space.

In May 2019 Council approved Annexation No. 20 (Tract Map No. 19956) to the CFD located at the southeast corner of Wabash Avenue and Citrus Avenue for the maintenance of slopes, parkways, and open space within and adjacent to the tract.

In September 2019 City Council approved Annexation No. 21 (Tract Map No. 20126) to the CFD located on the north side of Lugonia Avenue, south of Pennsylvania Avenue, east of Judson Street for the maintenance of parks, slopes, parkways, open space, and citrus groves.

In June 2020 Council approved Annexation No. 22 (Parcel Map No. 19981) to the CFD located at the northwest corner of Alabama Street and Park Avenue for the maintenance of parkways.

Parkways will be maintained by the property owner and will not be assessed.

In April 2021 Council approved Annexation No. 23 (Parcel Map No. 18536) to the CFD located at the southwest corner of Eureka Street and Stuart Avenue for maintenance of parkways.

In January 2021 Council approved Annexation No. 24 (Conditional Use Permit No. 1129) located at the southeast corner of Eureka Street and Stuart Avenue for maintenance of parkways. The maintenance of landscaping and associated irrigation equipment on Eureka Street and Stuart Avenue parkway frontages will be maintained by the property owner and will not be assessed.

In June 2023 City Council approved Annexation No. 25 (Tract Map No. 20065) located on the south side of East Highland Avenue and west of Redlands Street for the maintenance of infiltration trenches, infiltration basins, storm drain facilities, landscaping, and street trees . This project is currently on hold.

Redlands Regular Meeting of 07-02-24
753 of 864

In March 2022 Council approved Annexation No . 26 (Tract Map No. 20257) located at the northwest corner of San Bernardino Avenue and Texas Street for the maintenance of perimeter lettered lots, retention basins, and street trees.

In October 2022 City Council approved Annexation No. 27 (Planned Development No. 4) to the CFD located at the northeast corner of Mountain View Avenue and I-10 for maintenance of public trails and trail fences.

Annexation No. 28 (Tract Map No. 20473) located at the southwest corner of San Bernardino Avenue and Wabash Avenue is currently on hold.

In February 2024 City Council approved Annexation No. 29 (Tract Map No. 20336) located on the north side of Domestic Avenue approximately 700 feet west of Texas Street for maintenance of parks, infiltration basins, catch basin inlets, fossil filters, landscaping, and street trees . This project is currently under construction.

Redlands Regular Meeting of 07-02-24
754 of 864
City Council Meeting L. 3.

DATE: 07/02/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of an agreement with Schaefer Plastics North America, LLC for supply and delivery of residential refuse bins in an amount not-to-exceed $536,984.64 for a period of one year, with two additional one-year renewal options, for a total amount not-to-exceed $1,610,953.92 (Facilities and Community Services Director Crocker)
MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:

I move to approve the agreement with Schaefer Plastics North America, LLC.

1. RECOMMENDATION:

Staff recommends City Council approve an agreement with Schaefer Plastics North America, LLC, for the supply and delivery of residential refuse bins in an amount not-to-exceed $536,984.64 for a period of one year, with two additional one-year renewal options, for a possible agreement total amount not-to-exceed $1,610,953.92.

DISCUSSION:

The City of Redlands Solid Waste Division utilizes specialized refuse bins for the curbside collection of trash, green waste, organic food waste, and commingled recyclables. The City implemented an automated service for curbside collection of refuse in 1986 and possesses approximately 60,000 bins in the current inventory. Due to the nature of refuse collection, the automated containers are subject to continual contact with the metal arms of the collection vehicles, which results in wear and tear over time. Numerous containers have reached the end of their service life and are in need of replacement.

Redlands Regular Meeting of 07-02-24
755 of 864
City staff prepared a bid request based on unit pricing. With unit pricing, bidders are asked to provide a price per bin based on an estimated quantity that the City may need in a given year. For example, during fiscal year 2023-24, the Solid Waste Division replaced approximately 7,000 residential waste bins. Therefore, the City included an estimated annual purchase quantity of 11,000 in the request for bids. However, the City is not bound to purchase a specific quantity as long as that quantity does not exceed the contract amount of $536,984.64 per year and $1,610,953.92 for the potential full term of the contract.

On May 1, 2024, the City Clerk received and opened five bids. Staff evaluated the bids for conformance with the purchasing guidelines and verified the total price as shown in the table below. The lowest bidder, Schaefer Plastics North America, LLC, submitted a bid with no requested exceptions and met the bid requirements.

Staff is recommending that the City Council approve an agreement with Schaefer Plastics North America, LLC, in the amount of $536,984.64 for a period of one year, with two additional one-year renewal options, for a possible total amount not-to-exceed $1,610,953.92. The agreement will allow staff to purchase bins of various sizes and commodities based on customer needs at the unit prices provided. The total annual purchase order will not exceed the amount of $536,984.64 per year.

Vendor Name Bid Amount
Schaefer Plastics North America, LLC $536,984.64
IPL Macro Inc. $542,820.96
Toter LLC $554,731.20
Otto Environmental Systems $603,072.00
Cascade Engineering, Inc. No Bid Response
ALTERNATIVES:

City Council may choose not to enter into the proposed agreement; however, the current inventory of collection bins would be depleted resulting in the inability to perform refuse collection services.

Redlands Regular Meeting of 07-02-24
756 of 864
STRATEGIC PLAN:

Supports Priority D- Sustainability.

SUBMITTED BY:

Tabith Crocker, Facilities and Community Services Department Director RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Christopher Boatman, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Dana Abramovitz-Daniel, Procurement Manager
PREPARED BY:

Nathalie Ayala, Senior Administrative Assistant
Fiscal Impact
Fiscal Year: FY 2024-25
Revenue Generating: No
Appropriation Required Y/N: N
Amount: $536,984.64
Budgeted Y/N: Y
Account No.: 511900
Discussion:

Sufficient funding for the purchase order is included in the Solid Waste Division's (511900) budget for Fiscal Year 2024-26 as approved by City Council.

Attachments
A. Agreement with Schaefer Plastics
B. City Clerk Bid Report
C. Bid Analysis
Redlands Regular Meeting of 07-02-24
757 of 864

1 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM

AGREEMENT TO PERFORM NON-PROFESSIONAL SERVICES

FOR EQUIPMENT AND SUPPLIES

This agreement for the provision of automated refuse bin containers and associated services (“Agreement”) is made and entered in this 2nd day of July, 2024 (“Effective Date”), by and between the City of Redlands, a municipal corporation (“City”) and Schaefer Plastics North America, LLC, a North Carolina limited liability company (“Contractor”). City and Consultant are sometimes individually referred to herein as a “Party” and, together, as the “Parties.” In consideration of the mutual promises contained herein, City and Consultant agree as follows:

ARTICLE 1 – ENGAGEMENT OF CONTRACTOR

1.1 City hereby engages Contractor to perform the supply and delivery of automated refuse bin containers and associated services for City (the “Services”).

1.2 The Services shall be performed by Contractor in a professional manner, and Contractor represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional Contractors in the industry providing like and similar types of Services.

ARTICLE 2 – SERVICES OF CONTRACTOR

2.1 The Servi ces that Contractor shall perform are more particula rly described in Exhibit “A,” titled “Scope of Servi ces,” which is attached hereto and incorporated herein by this reference.

2.2 Contractor shall comply with applicable federal, state and local laws and regulations in the performance of this agreement including, but not limited to , any applicable State prevailing wage laws.

ARTICLE 3 – RESPONSIBILITIES OF CITY

3.1 City shall make available to Contractor information in its possession that may reasonably assist Contractor in performing the Services.

3.2 City designates Tabitha Crocker, Facilities and Community Services Director, as City’s representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to performance of the Services.

ARTICLE 4 – PERFORMANCE OF SERVICES

4.1 Contractor shall perform and complete the Services in a prompt and diligent manner in accordance with the schedule set forth in Exhibit “ A,” titled “ Scope of Services ,” which is attached hereto and incorporated herein by this reference.

4.2 The term of this Agreement shall be for a period of one (1) year commencing on September 9, 2024 (the "Initial Term") . The City shall have the option to extend the Redlands Regular Meeting of 07-02-24
758 of 864

2 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM Initial Term of this Agreement by two (2) additional one -year terms (each, an “Extended Term”), on the same terms and conditions, by providing written notice to Contractor at least thirty (30) days prior to the expiration of the Initial Term or any Extended Term.

The Initial Term and the Extended Terms are hereby collectively, referred to herein as the “Term” of this Agreement.

4.3 If Contractor’s Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to Cit y, consistent with City Council-adopted policy for the same. It shall be the obligation of Contractor to obtain a copy of such policy from City staff.

ARTICLE 5 – PAYMENTS TO CONTRACTOR

5.1 The compensation for Contractor’s performance of the Services shall not exceed the amount of Five Hundred Thirty -Six Thousand Nine Hundred Eighty -Four Dollars and Sixty-Four Cents ($536,984.64) for the Services provided during the Initial Term. Should this Agreement be renewed, the compensation for Contractor’s performance for the Services shall not exceed the amount of Five Hundred Thirty -Six Thousand Nine Hundred Eighty-Four Dollars and Sixty -Four Cents ($536,984.64) for the first Extended Term; and Five Hundred Thirty -Six Thousand Nine Hundred Eighty -Four Dollars and Sixty-Four Cents ($536,984.64) for the second Extended Term, bringing the total possible amount of compensation to a not -to-exceed amount of One Million Six Hundred Ten Thousand Nine Hundred Fifty -Three Dollars and Ninety -Two Cents ($1,610,953.92). For the Initial Term and each Extended Term, City shall pay Contractor on a time and materials basis up to the not to not -to-exceed amount in accordance with the rates specified in Exhibit “B,” titled “Price and Fee Bid,” which is attached hereto and incorporated herein by reference.

5.2 Contractor shall submit monthly invoices to City describing the Services performed during the preceding month. Contractor’s invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom. City shall pay Contractor no later than thirty (30) days after receipt and approval by City of Contractor’s invoice.

5.3 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic mail transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section:

CITY CONTRACTOR
City Clerk Maria Frizzell, CEO
City of Redlands Schaefer Plastics North America, LLC Redlands Regular Meeting of 07-02-24
759 of 864

3 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM 35 Cajon Street 10301 Westlake Dr.

P.O. Box 3005 (mailing) Charlotte, NC 28273
Redlands, CA 92373 [email protected]

[email protected] Phone: (704) 588-2150
(909) 798-7531 Fax: (704) 588-1862

ARTICLE 6 – INSURANCE AND INDEMNIFICATION

6.1 The following insurance coverage required by this Agreement shall be maintained by Contractor for the duration of its performance of the Services. Contractor shall not perform any Services unless and until the required insurance listed below is obtained by Contractor. Contractor shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City.

A. Workers’ Compensation and Employer’s Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Contractor is self-insured or exempt from the workers’ compensation laws of the State of California. Contractor shall execute and provide City with Exhibit “C,” titled “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference, prior to performance of the Services.

B. Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non -contributing to any insurance or self -insurance maintained by City.

C. Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all Contractor owned vehicles used in connection with Contractor’s provision of the Services, hired and non -owned vehicles, and employee non-ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non -contributing to any insurance or self-insurance maintained by City.

6.2 Contractor shall defend, indemnify, and hold harmless City and its elected and appointed officials, employees and agents from and against any and all claims, losses and liability, including attorneys’ fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Contractor, or its officers, employees and agents in performing the Services.

Redlands Regular Meeting of 07-02-24
760 of 864

4 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM ARTICLE 7 – CONFLICTS OF INTEREST

7.1 Contractor covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of Contractor’s Services. Contractor further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement.

7.2 Contractor agrees it is not a designated employee within the meaning of the Political Reform Act because Contractor:

A. Does not make a governmental decision whether to:

(i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item; (vi) adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof.

B. Does not serve in a staff capacity with City and , in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City’s Conflict of Interest Code under Government Code section 87302.

7.3 In the event City determines that Contractor must disclose its financial interests, Contractor shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests , with the City Clerk ’s office pursuant to the written instructions provided by the City Clerk.

ARTICLE 8 – GENERAL CONSIDERATIONS

8.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys’ fees, including fees for the use of in-house counsel by a Party.

8.2 Contractor shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, results in City’s immediate termination of this Agreement.

Redlands Regular Meeting of 07-02-24
761 of 864

5 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM

8.3 Contractor is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any of its agents shall have control over the conduct of Contractor or Contractor’s employees, except as herein set forth. Contractor shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Contractor are for its account only, and in no event shall Contractor or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Contractor have any authority, express or implied, to bind City to any obligation.

8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less than ten (10) days prior written notice to Contractor of City’s intent to terminate. If this Agreement is terminated by City, an adjustment to Contractor’s compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment du e Contractor at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Contractor. Upon receipt of a termination notice, Contractor shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project re lated data, drawings, specifications, reports, summaries and such other information and materials as may have been accumulated by Contractor in performing the Services. Contractor shall be compensated on a pro-rata basis for Services completed up to the date of termination.

8.5 Contractor shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Contractor.

8.6 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, an y amendment to this Agreement shall be in writing, approved by City and signed by City and Contractor.

8.7 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California.

8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or Redlands Regular Meeting of 07-02-24
762 of 864

6 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement.

IN WITNESS WHEREOF, duly authorized representatives of City and Contractor have signed in confirmation of this Agreement.

CITY OF REDLANDS SCHAEFER PLASTICS NORTH

AMERICA, LLC

By: ___________________________ By: _________________________ Eddie Tejeda. Barich, Mayor Maria Frizzell, CEO

ATTEST:

___________________________
Jeanne Donaldson, City Clerk

Redlands Regular Meeting of 07-02-24
763 of 864

7 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM EXHIBIT "A"

SCOPE OF SERVICES

Provide automated refuse containers on a per unit need-by-need basis.

DELIVERY

All refuse, yard waste, and recyclables containers shall be delivered complete and ready to assemble and shall be shipped and delivered in a new unused state. Containers shall be molded from a fully recyclable material supplied from a national petrochemical manufacturer; certifications by manufacturer and prior approval of said material by the City is required.

Assemblies, subassemblies, and component parts shall be standard and interchangeable throughout the entire quantity of containers delineated in the bid.

Manufacturer shall supply the names of all sublet vendors from which they procure finished parts or materials used in the assembly of containers, including but not limited to, appurtenant hardware.

Containers shall be delivered to the City of Redlands within 30 days after issuance of order. Each order will be in increments of 504 units.

WARRANTY

"Container" is defined as a complete unit including all lids and appurtenant hardware. All containers furnished shall be unconditionally (100%) warrantied for a minimum of ten (10) years after physical delivery and acceptance by the City. The unconditional warranty shall include, but not be limited to, such items as cracking, chipping, peeling, and other types of distortion; failures at attachment points for lids, hinges or other points of attachment; weathering, degrading, defective or insufficient materials; poor workmanship on the part of manufacturer; lowered ultraviolet resistance during normal usage as the container ages, and placement of all warnings and directions for use upon the lid/container as specified. Defective containers, which are replaced under warranty provisions, shall be replaced as complete containers (including lids and hardware) within thirty (30) working days from notification of defect by the City. Contractor agrees to reimburse the City for any loss which may be incurred by the City incidental to the loading, shipping, and disposal of defective containers. All costs, including shipping costs for delivery to Redlands, incurred in the replacement of said defective units or parts shall be fully borne by the Contractor. In addition to the warranty implied by fact or law, proposer expressly warrants all items to be new, free from defect in design, materials, construction and workmanship and to be fit and sufficient for their intended purpose. Contractor shall not be responsible for damage or destruction caused by fire, vandalism, abuse, neglect, or acts of God after containers have been delivered and accepted.

DESIGN SPECIFICATIONS

Universal Type Automated Refuse Containers

Redlands Regular Meeting of 07-02-24
764 of 864

8 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM - Container capacity (large refuse, green waste, and recyclables): 95-gallon (U.S. liquid gallons in container base).
- Container capacity (small refuse, green waste, organic, and recyclables): 65-gallon (U.S liquid gallons in container base).
- Container configuration and color: Refuse, round/Grey; Green Waste, round/green; Recyclables, round/blue, and Organics; round/Tan.
- Dimensions: 27.5” maximum width at widest point including lid; hip or gripping surface diameter must be compatible with City of Redlands automated side-loading vehicles. - Lid: Each container shall be furnished with a water-tight lid molded from the same material as the container; lid shape shall feature overlapping “flared” sides in order not to bind against the sides when container is distorted by gripping devices. Primary lid attachment to container shall NOT feature metal hinge, tubes, P.V.C. plastic, or glued connections. The primary lid shall open to a minimum 270 degrees measuring from the closed position to the full open position. The minimum material thickness shall not be more than 0.12”. - Weight: no more than 4lbs.
- Handle: Each container shall feature a cart handle which is an integral part of the body of the cart, and not the lid. Diameter: shall be 1.2” and provide 1.87” clearance for hands. - Identification: A numbering system shall be utilized that can identify containers by year and month of manufacture; a Serial number tracking system in 1-1 ½ inch size numbers shall be hot stamped into the front body wall. All containers shall be identified with the wording “City of Redlands” inscribed and molded into the lid: additional standard safety information provided by manufacturer shall be included if deemed standard.
- Finish: Interior surfaces shall be molded with a smooth finish, with exterior surfaces featuring a non-slip texture finish.
- Hardware: All metal hardware shall be zinc plated or stainless steel to prevent corrosion; hardware packaging shall be approved by the buyer in an acceptable form to facilitate unloading and handling in a safe manner.
- Stability: Containers shall be stable and self-balancing when in the upright position, whether loaded or empty.
- Containers shall be designed and rated to handle a 230-pound load (65-gallon), and 335-pound load (95-gallon).
- Carts will be injection molded only (No rotationally molded carts). - Carts must have a contoured shape and rounded edges to create fewer stress points. - Compressive force: Each container shall be capable of withstanding a compressive force of 200 pounds anticipated in the process of lifting and dumping without sustaining damage, deformation, or structural failure, side wall thickness NO GREATER THAN 0.15 INCH AND

0.15 ON THE BOTTOM SECTION.
- Containers shall be designed to be picked up and dumped by a clasping arm mechanism that applies force at a point approximately 1/3 of the height below the top edge. Containers shall be adequately designed to prevent sliding through lifting arm when lifted and turned upside down to be emptied: City testing has revealed that full length rectangular shaped carts(European style) are incompatible with City automated equipment and therefore unacceptable. Container body shall be designed without cavities or partitions, which could retain refuse after dumping. Loading Height: 41.75”, Overall Depth: 33.25”, Overall Height: 45.375” - Wording: the existing wording and graphics shall be in both English and Spanish and shall be molded into the lids of each container.

Redlands Regular Meeting of 07-02-24
765 of 864

9 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM - Markings: Refuse carts shall be hot stamped on both sides with the City of Redlands logo.

Green Waste carts shall be hot stamped with the City of Redlands “Recycling” logo. Organics carts shall be hot stamped with City of Redlands “Organics Food Waste Only” logo.

ENVIRONMENTAL AND SAFETY AND HEALTH STANDARDS COMPLIANCE

Contractor shall comply with applicable environmental statues, regulations & guidelines in performing the work required under this agreement. Contractor shall also comply with applicable Occupational Safety and Health standards, regulations, and guidelines in performing the work required under this agreement.

Redlands Regular Meeting of 07-02-24
766 of 864

10 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM EXHIBIT "B"

PRICE AND FEE BID

RESIDENTIAL CONTAINER PURCHASE PRICE

Per Unit Purchase Price
Product Description Unit Price 95 gal. Automated containers
(gray refuse)
$48.77
95 gal. Automated containers
(green-green waste)
$48.77
95 gal. Automated containers
(blue-recyclable)
$48.77
65 gal. Automated containers
(gray, green, blue, tan)
$43.77

ESCALATION AND DE-ESCALATION OF BID PRICE

During the term of this Agreement, there may be a general published manufacturer's price change OR a general market change, as evidenced by prices paid by other governmental entities or private organizations, in either the cost of materials or labor of the product or service specified herein. Within thirty (30) calendar days of a DECREASE in price, Contractor shall have an AFFIRMATIVE DUTY to (1) notify the City of market, manufacturer or laborer decreases in prices; and (2) to extend the full decrease to the City. Failure of Contractor to notify the City and/or extend such decrease(s) may be considered a breach of contract.

Contractor is allowed to increase price once a year, upon contract term renewal ONLY. In event of an INCREASE in price, the City may allow, upon presentation of suitable proof and thirty (30) calendar days' advanced written notice, an increase over bid price. Increases will apply only to products or services affected by an increase in raw material, labor, or other like cost factors.

No increase will be allowed earlier than (365) calendar days from date of contract award, including thirty (30) calendar days' advanced written notice and written approval by authorized City Staff.

If the Contractor proposed a price increase, the Contractor shall be required to submit any price increases to authorized City staff. Said notice shall show item number, current price, suggested price increase, and purchase order number. The City reserves the right to accept or reject any price increase, and to cancel the contract if price increases are not acceptable. Documentation may be required to provide justification for any increases based on the US Bureau of Labor Statistics, Consumer Price Index increases or manufacturer increases that are out of control of the Contractor.

Redlands Regular Meeting of 07-02-24
767 of 864

11 I:\cmo\Agreements\Schaefer Plastics North America LLC FY23-0119.doc-JM EXHIBIT "C"
WORKERS’ COMPENSATION INSURANCE CERTIFICATION

Every employer, except the State, shall secure the payment of compensation in one or more of the following ways:

(a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self-insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees.

CHECK ONE

_____I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers’ Compensation or to undertake self - insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861).

_____I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers’ compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers’ compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers’ compensation insurance.

I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct.

SHAEFER PLASTICS NORTH AMERICA, LLC

By: Date: ___________________
Maria Frizzell, CEO

Redlands Regular Meeting of 07-02-24
768 of 864
Redlands Regular Meeting of 07-02-24
769 of 864

AUTOMATED REFUSE CONTAINERS
FCS04012024NA
Item
No. BID ITEM QTY
Unit Price Item Price Unit Price Item Price Unit Price Item Price Unit Price Item Price Unit Price Item Price Unit Price Item Price 1 95 GAL. Automated
Containers (gray refuse)
3,024 48.77$ 147,480.48$ 54.35$ 164,345.40$ 50.35$ 152,258.40$ 49.88$ 150,837.12 $ No Bid No Bid 2 95 GAL. Automated
Containers (green-green
waste) 3,024 48.77$ 147,480.48$ 54.35$ 164,345.40$ 50.35$ 152,258.40$ 49.88$ 150,837.12 $ No Bid No Bid 3 95.GAL Automated
Containers (blue-recyclables) 3,024 48.77$ 147,480.48$ 54.35$ 164,345.40$ 50.35$ 152,258.50$ 49.88$ 150,837.12 $ No Bid No Bid 4 65 GAL Automated
Containers (grey, green,

2,160 43.77$ 94,543.20$ 50.93$ 110,008.80$ 45.35$ 97,956.00$ 41.81$ 90,309.60$ No Bid No Bid 536,984.65$ 603,072.00$ 554,731.30$ 542,820.96 $ -$ -$ 536,984.64$ 603,072.00$ 554,731.20$ 542,820.96 $ -$ -$ -$ -$ 0.10$ -$ -$ -$ NOTES Lowest Bid 10 cent difference when totaled

CASCADE ENGINEERING,
INC.

BASE BID - AUTOMATED REFUSE

CONTAINERS

SCHAEFER PLASTICS

NORTH AMERICA, LLC

OTTO ENVIRONMENTAL
SYSTEMS TOTER, LLC IPL MACRO INC.

TOTAL FOR ALL BID ITEMS

WRITTEN ON BID

DIFFERENCE
Redlands Regular Meeting of 07-02-24
770 of 864

AUTOMATED REFUSE CONTAINERS
FCS04012024NA
Item
No. QTY
Unit Price Item Price Unit Price Item Price Unit Price Item Price Unit Price Item Price Unit Price Item Price Unit Price Item Price -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ NOTES

TOTAL FOR ALL BID ITEMS

DIFFERENCE

WRITTEN ON BID
Redlands Regular Meeting of 07-02-24
771 of 864
City Council Meeting L. 4.

DATE: 07/02/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of the Professional Services Agreement with West Yost & Associates, Inc. for recycled water, non-potable water, and cross-connection program support services with an initial term of one (1) year and a value not-to-exceed $355,000, with options to extend for two (2) additional one-year terms for a total potential amount not-to-exceed $1,065,000; approve an exception to Redlands Municipal Code Section 2.16.180(B); and determine that approval of the Professional Services Agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris)
MOTION(S):

If City Council determines the staff recommendation is appropriate, the following motions are provided:

I move that City Council determine approval of the Professional Services Agreement with West Yost & Associates, Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and

1. I move to approve an exception to Redlands Municipal Code Section

2.16.180(B) and not require MUED staff to solicit additional Request for Bid; and

2. I move that City Council approve the Professional Services Agreement with West Yost & Associates, Inc. for recycled water, non-potable water, and cross-connection program support services with an initial term of one (1) year and a value not-to-exceed $355,000, with options to extend for two (2) additional one-year terms.

3. Redlands Regular Meeting of 07-02-24
772 of 864
RECOMMENDATION:

Staff recommends that City Council approve an exception to Redlands Municipal Code Section 2.16.180(B) and approve that the Professional Services Agreement with West Yost & Associates, Inc. for recycled water, non-potable water, and cross-connection program support services is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act, and approve the Professional Services Agreement with West Yost & Associates, Inc. with an initial term of one (1) year and a value not-to-exceed $355,000, with options to extend for two (2) additional one-year terms for a total potential amount not-to-exceed $1,065,000.

DISCUSSION:

The Municipal Utilities and Engineering Department (MUED) owns, operates, and maintains water and wastewater utility infrastructure and facilities throughout the city. This infrastructure includes thirty-eight (38) potable and non-potable groundwater wells, two (2) surface water treatment plants, and one (1) wastewater treatment plant (WWTP). Additionally, MUED manages a distribution pipeline system consisting of 385 miles of potable water, 26 miles of non-potable water, and 14 miles of recycled water. The WWTP provides disinfected tertiary recycled water for irrigation, local cooling towers, and the city's landfill, while the non-potable water wells supply water for landscape and agricultural irrigation.

MUED staff developed and issued a Request for Bid (RFB) for recycled water, non-potable water, and cross-connection support services. On April 15, 2024, the City Clerk's office received and opened one (1) bid from West Yost & Associates, Inc. for an amount of $521,000. Per Redlands Municipal Code

2.16.180(B), a Request for Proposal (RFP) must be prepared, solicited, received, and ranked by the department for professional services. The purpose of the RFP is to review the qualifications and competence of the vendor(s) to perform professional services. Given that only one (1) bid was received for the RFB, MUED staff has determined that re-soliciting is unlikely to yield different results.

Additionally, following the bid opening, MUED staff reviewed the bid from West Yost & Associates, Inc. and determined that they are qualified to perform the project scope of services for recycled water, non-potable water, and cross-connection control program support services. Since 2019, the City has partnered with West Yost & Associates, Inc. to ensure compliance with recycled water, non-potable water, and cross-connection control programs. The agreement compensation is lower than the total bid price since these support services from West Yost & Associates, Inc. will be provided on an on-call and as-needed basis.

Redlands Regular Meeting of 07-02-24
773 of 864
Approval of the Professional Services Agreement with West Yost & Associates Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act since it can be seen with reasonable certainty that doing so will not cause any significant environmental impact.

ALTERNATIVES:

City Council may deny the staff recommendation and provide alternate direction.

STRATEGIC PLAN:

Strategic Priority D, Strategic Objective 3- Environmental. Expand the non-potable water system.

SUBMITTED BY:

John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Danielle Garcia, Management Services/Finance Director
Dana Abramovitz-Daniel, Procurement Manager
PREPARED BY:

Ashley Rosario, Senior Administrative Assistant
Fiscal Impact
Fiscal Year: FY 24/25
Revenue Generating: N
Appropriation Required Y/N: N
Amount: 155,000.00
Budgeted Y/N: Y
Account No.: 501900
Discussion:

Sufficient funding is included in the FY 24/25 Water Service (501900) budget.

Redlands Regular Meeting of 07-02-24
774 of 864

Fiscal Year: FY 24/25
Revenue Generating: N
Appropriation Required Y/N: N
Amount: 200,000.00
Budgeted Y/N: Y
Account No.: 521900
Discussion:

Sufficient funding is included in the FY 24/25 Wastewater Service (521900) budget.

Attachments
Agreement
Bid Report & Bid Analysis Recycled Water
Redlands Regular Meeting of 07-02-24
775 of 864
1 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM

AGREEMENT TO PERFORM PROFESSIONAL SERVICES

This agreement for the provision of Recycled Water, Non -Potable Water, and Cross - Connection Control Program Support Services (“Agreement”) is mad e and entered in this 2nd day of July, 20 24 (“Effective Date”), by and between the City of Redlands, a mun icipal corporation (“City”) and West Yost & Associates, Inc. , a California corporation (“Consultant”).

City and Consultant are sometimes individually referred to herein as a “Party” and, together, as the “Parties.” In consideration of the mutual promises contained herein, City and Consultant agree as follows:

ARTICLE 1 – ENGAGEMENT OF CONSULTANT

1.1 City hereby engages Consultant to provide Recycled Water, Non -Potable Water, and Cross-Connection Control Program Support Services services for City (the “Services”).

1.2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services.

ARTICLE 2 – SERVICES OF CONSULTANT

2.1 The Servi ces that Consultant shall perform are more particularly described in Exhibit “A,” titled “Scope of Servi ces,” which is attached hereto and incorporated herein by this reference.

2.2 Consultant shall comply with applicable federal, state and local laws and regulati ons in the performance of this A greement including, but not limited to , any applicable State prevailing wage laws.

ARTICLE 3 – RESPONSIBILITIES OF CITY

3.1 City designates John R. Harris , Municipal Utilities & Engineering Director, as City’s representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to performance of the Services.

ARTICLE 4 – PERFORMANCE OF SERVICES

4.1 Contractor shall perform and complete the Services in a prompt and diligent manner in accordance with the schedule set forth in Exhibit “ A,” titled “ Scope of Services ,” which is attached hereto and incorporated herein by this reference.

4.2 The term of this Agreement shall be for a period of one (1) year from the Effective Date of this Agreement (the “Initial Term”). The City shall have the option to extend the Initial Term of this Agreement by two (2) additional one-year terms (each, an “Extended Redlands Regular Meeting of 07-02-24
776 of 864
2 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM Term”), on the same terms and conditions, by providing written notice to Consultant at least thirty (30) days prior to the expiration of the Initial Term or any Extended Term.

4.3 If Consultant’s Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to Cit y, consistent with City Council-adopted policy for the same. It shall be the obligation of Consultant to obtain a copy of such policy from City staff.

ARTICLE 5 – PAYMENTS TO CONSULTANT

5.1 The compensation for Consultant’s performance of the Services shall not exceed the amount of Three Hundred Fifty-five Thousand Dollars ($355,000) for the Services provided during the Initial Term. Should this Agreement be extended, the compensation for Consultant’s performance for the Services shall not exceed the amount of Three Hundred Fifty-five Thousand Dollars ($355,000) for the first Extended Term; and Three Hundred Fifty-five Thousand Dollars ($355,000) for the second Extended Term, bringing the total possible amount of compensation to a not -to-exceed amount of One Million Sixty-five Thousand Dollars ($1,065,000). For the Initial Term and each Extended Term, City shall pay Consultant on a time and materials basis up to the not to not -to-exceed amount in accordance with the rates specified in Exhibit “ B,” titled “Price and Fee Bid and Billing Rate Schedule ,” which is attached hereto and incorporated herein by this reference.

5.2 Consultant shall submit monthly invoices to City describing the Services performed during the preceding month. Consultant’s invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom, and a description of reimbursable expenses related to the Services. City shall pay Consultant no later than thirty (30) days after receipt and approval by City of Consultant’s invoice.

5.3 Any n otice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic mail transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section:

CITY: CONSULTANT:

City Clerk Greg Chung, Vice President
City of Redlands West Yost & Associates, Inc.
35 Cajon Street 11545 West Bernardo Court Suite 209
P.O. Box 3005 (mailing) San Diego, CA 92127
Redlands Regular Meeting of 07-02-24
777 of 864
3 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM Redlands, CA 92373 [email protected]
[email protected] Phone: (858) 505-0075
Phone: (909) 798-7531 Fax: (530) 756-5991

ARTICLE 6 – INSURANCE AND INDEMNIFICATION

6.1 The following insurance coverage required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services. Consultant shall not perform any Services unless and until the required insurance listed below is obtained by Consultant. Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City.

A. Workers’ Compensation and Employer’s Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Consultant is self -insured or exempt from the workers’ compensation laws of the State of California. Consultant shall execute and provide City with Exhibit “C,” titled “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference, prior to performance of the Services.

B. Comprehensive General L iability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate , for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non -contributing to any insurance or self -insurance maintained by City.

C. Consultant shall secure and maintain professional liability insurance throughout the term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made.

D. Business Auto L iability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all Consultant owned vehicles used in connection with Consultant’s provision of the Services, hired and non -owned vehicles, and employee non-ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non -contributing to any insurance or self-insurance maintained by City.

E. Consultant is expressly prohibited from assigning or subcontracting any of the Services without the prior written consent of City. In the event of mutual agreement by the Parties to assign or subcontract a portion of the Services, Consultant shall add such assignee or subcontractor as an additional insured to the insurance policies required hereby and provide City with the insurance endorsements prior to any Services being performed by the assignee or subcontractor.

Redlands Regular Meeting of 07-02-24
778 of 864
4 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM

6.2 Consultant shall defend, indemnify and hold harmless City and its elected and appointed officials, employees and agents from and against any and all claims, losses or liability, including attorneys’ fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in performing the Services.

ARTICLE 7 – CONFLICTS OF INTEREST

7.1 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of Consultant’s Services. Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement.

7.2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant:

A. Does not make a governmental decision whether to:

(i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item; (vi) adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof.

B. Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City’s Conflict of Interest Code under Government Code section 87302.

7.3 In the event City determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests , with the City Clerk’s office pursuant to the written instructions provided by the City Clerk.

ARTICLE 8 – GENERAL CONSIDERATIONS

8.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other Redlands Regular Meeting of 07-02-24
779 of 864
5 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM relief, be entitled to the recovery of its reasonable attorneys’ fees, including fees for the use of in-house counsel by a Party.

8.2 Consultant shall not assign any of the Services, except with the prior written approval of City and in s trict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, result in City’s immediate termination of this Agreement.

8.3 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any its agents shall have control over the conduct of Consultant or Consultant’s employees, except as herein set forth. Consultant shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation.

8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City’s intent to terminate. If this Agreement is terminated by City, an adjustment to Consultant’s compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed S ervices, and (2) any payment du e Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant. Upon receipt of a termination notice, Consultant shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination.

8.5 Consultant shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Consultant.

8.6 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, an y amendment to this Agreement shall be in writing, approved by City and signed by City and Consultant.

Redlands Regular Meeting of 07-02-24
780 of 864
6 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM

8.7 This Agreement shall be governed by and construed in accordance with the laws of the State of California , without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California.

8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement.

IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement.

CITY OF REDLANDS WEST YOST & ASSOCIATES, INC.

By: ___________________________ By: _________________________ Eddie Tejeda, Mayor Greg Chung, Vice President

ATTEST:

___________________________
Jeanne Donaldson, City Clerk

Redlands Regular Meeting of 07-02-24
781 of 864
7 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM

EXHIBIT "A"

SCOPE OF SERVICES

• Task 1. Project Management
• Task 2. Recycled Water Annual Inspections
• Task 3. Recycled Water Cross-Connection Quadrennial Testing • Task 4. Recycled Water Inspection and Cross-Connection Testing for New Construction Projects
• Task 5. Recycled Water Irrigation Plan Review
• Task 6. Additional Recycled Water Services
• Task 7. Non-Potable Water Irrigation Plan Review
• Task 8. Non-Potable Water Inspection and Cross-Connection Testing for New Construction Projects
• Task 9. Additional Non-Potable Water Services
• Task 10. Preparation of the Cross-Connection Control Plan • Task 11. Additional Cross-Connection Control Program Services

Task 1. Project Management

Project management includes general management activities that are not specific to any one task, including overall project management; coordination of activities and communication with City staff; quality control and quality assurance activities; and invoicing.

This task involves monthly meetings between the Project Manager and the City, held either at the city office or via video conferencing, to discuss the overall project status, potential delays, and budget updates. The Consultant's Project Manager is responsible for providing monthly invoices.

Monthly one-hour collaboration session between the Project Manager and city staff to cover the following:
o Identification and resolution of any project issues or roadblocks, along with discussion of upcoming deadlines and regulations.
o Evaluation of proposed changes to project scope, timeline, or budget. o Dialogue on necessary resources, equipment, or materials for the project. o Preparation for next month's meeting, including the identification of agenda items and action items.

Task 2. Recycled Water Annual Inspections

A certified American Water Works Association (AWWA) Cross-Connection Specialist Inspector (Inspector) will contact the customer to schedule the annual inspection. This inspection will provide general recycle water (RW) inspection services for existing irrigation systems as part of the annual inspection and coverage test requirements. The inspection services will be performed in general compliance with City and State Water Resources Control Board (SWRCB) requirements.

Redlands Regular Meeting of 07-02-24
782 of 864
8 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM

The inspections will include, at a minimum, a visual examination of all backflow prevention assemblies, exposed piping, valves, pressure reducing valves, sprinklers, controllers, signs, labels, tags, and all points of connection. The Inspector will observe the irrigation system to assess any modifications (e.g., new mainline/valves). If changes are detected, they will be documented in the Inspection Report. If significant system alterations are noted, requiring construction changes, proper processes will be followed for re -review and re -approval by all regulatory entities.

As part of this task, the Inspector will conduct a coverage test to ensure the proper operation of the irrigation system(s). Additionally, they will need to schedule and coordinate with the customer for a final walk -through to check for completion of punch list items. The city anticipates up to 70 sites that are due for the annual inspection once this contract is executed. It is the responsibility of the Inspector to schedule and coordinate all inspections. If a customer is non-responsive, the Inspector must notify the city and proceed to the next customer to avoid any delays.

Task 3. Recycled Water Cross-Connection Quadrennial Testing

The cross-connection control shutdown test is based in law on Section 13521 and 13523 of the California Water Code; Sections 60314 and 60316 of Title 22; Section 7604 of Title 17 of the California Code of Regulations and Chapter 7, Sections 116800 and 116805 of the California Health and Safety Code. The individual overseeing the cross -connection control test will hold a current State of California recognized certification as a Cross -Connection Control Specialist. All cross-connection testing will be conducted in accordance with Method 1 as specified in the latest edition of the San Diego County Department of Environmental Health and Quality Recycled Water and Inspection Manual, which serves as the guiding framework for the city. The test will include two phases: (1) a 4 -hour domestic (potable) water use phase shutdown test and (2) a 4 - hour irrigation (recycled water) use phase shutdown test. The Inspector is responsible for ensuring that if a cross -connection is identified at the user's site, immediate action is taken. The user must promptly discontinue the use of potable water and isolate the on -site potable water system from the public supply at the point of connection. Before potable water service can be resumed, the cross-connection must be removed, and the site inspected and approved by the city.

If it is determined that RW has entered the user’s potable water system, the system must also be disinfected and tested before service can be resumed. Within the contract duration, a minimum of thirty-five (35) cross-connection tests are anticipated. The contractor will provide Cross - Connection test results per site.

Task 4. Recycled Water Inspection and Cross-Connection Testing for New Construction Projects

The Consultant is expected to reach out to the customer to arrange a preconstruction meeting.

This meeting will cover the City’s rules and regulations, construction requirements, and inspection notices for mainline pressure testing. It is the Consultant's responsibility to schedule and coordinate a preliminary walk -through with the customer and prepare a punch list of any items to be completed before the final inspection. The inspection will include observing the irrigation system for general compliance wit h plans and specifications. If the system is not in Redlands Regular Meeting of 07-02-24
783 of 864
9 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM general compliance, the Inspector will inform the customer of any necessary changes. If the customer fails to comply with the requirements, this activity may require repeat visits to the site.

If minor system changes are necessary during construction, the Inspector will coordinate changes with the customer and have those changes noted on the as -built drawings. If major system changes are necessary during construction the Inspector will require a re -submittal of the plans for re-review and re-approval.

Once complete, the Inspector will schedule and coordinate with the customer a final walk through and check for completion of punch list items. Note*Cross -Connection testing of the site will be conducted as described in Task 3. Test results will be submitted to the SWRCB and to the City via email. The Consultant is responsible for providing detailed reports for each site, which must be submitted to the City upon completion of the project.

The Inspector is also responsible for recording the site’s potable and RW feature locations and types, such as meters, meter sizes, backflow device models and sizes, water features, quick coupler valves, remote control valves, recycled water signs, gate valves, and other related features in the City’s GIS using Field Maps.

Note* The successful Consultant will have the appropriate credentials to input this data into the City’s GIS portal. Within the contract duration, a minimum of seven (7) inspections for recycled water and cross-connection tests are anticipated.

Task 5. Recycled Water Irrigation Plan Review

The city is expected to have at least seven (7) RW irrigation plan reviews. • Evaluate irrigation plans for general compliance with the City and SWRCB requirements.

If plans are not in general compliance, annotate the plans and/or provide correspondence to the owner identifying the necessary changes.
• Review revised plans for conformance to comments and for potential changes made which were not illustrated on the original plan review submittal. • Submit final plans and Supplemental Title 22 Engineering Report to the SWRCB for approval.
• Once approved by the SWRCB, submit final plans in PDF format to the City for approval.

Task 6. Additional Recycled Water Services

The city may request additional task(s) related to RW services such as review of current and future Ordinance, retrofit plans, guidance for converting city -owned orchards to recycle water irrigation, updating RW documents, conducting and coordinating Site Supervisor training, as needed.

Note* The Consultant will wait to initiate work on this Task until they receive a specific request and a notice to proceed from the city.

Redlands Regular Meeting of 07-02-24
784 of 864
10 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM Task 7. Non-Potable Water Irrigation Plan Review

The City is expected to have at least thirteen (13) NP water irrigation plan reviews. • Evaluate irrigation plans for general compliance with the City and SWRCB requirements.

If plans are not in general compliance, annotate the plans and/or provide correspondence to the owner identifying the necessary changes.
• Review revised plans for conformance to comments and for potential changes made which were not illustrated on the original plan review submittal. • Submit final plans and Supplemental Title 22 Engineering Report to the SWRCB for approval.
• Once approved by the SWRCB, submit final plans in PDF format to the City for approval.

Task 8. Non-Potable Water Inspection and Cross-Connection Testing for New Construction Projects

It is expected that the Consultant will contact the customer to schedule a preconstruction meeting to discuss the City’s rules and regulations, construction requirements, and inspection notices for mainline pressure testing. It is the consultant's responsibility to schedule and coordinate a preliminary walkthrough with the customer and prepare a punch list of any items to be completed prior to the final inspection. The inspection will include observing the irrigation system for general compliance with plans and specifications. If the system is not in general compliance, the Inspector will inform the customer of any necessary changes. If the customer fails to comply with the requirements, this activity may require repeat visits to the site. If minor system changes are necessary during construction, the Inspector will coordinate changes with the customer and have those changes noted on the as -built drawings. If major system changes are necessary during construction the Inspector will require a re -submittal of the plans for re -review and re-approval.

Once complete, the Inspector will schedule and coordinate with the customer a final walk through and check for completion of punch list items. Note*Cross -Connection testing of the site will be conducted as described in Task 3. Test results will be submitted to the SWRCB and to the city via email. The Consultant is responsible for providing detailed reports for each site, which must be submitted to the City upon completion of the project.

The Inspector is also responsible to record in the City’s GIS using Field Maps the site’s potable and recycled water feature locations and types such as meter(s), meter size(s), backflow device model(s) and size(s), drinking fountain(s), quick coupler valves, remote control valves, recycled water signs, gate valves, and other related features. Note* The successful Consultant will have the appropriate credentials to input this data into the City’s GIS portal. The city is expected to have at least thirteen (13) NP water inspections and cross -connection tests for new construction projects.

Redlands Regular Meeting of 07-02-24
785 of 864
11 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM Task 9. Additional Non-Potable Water Services

The City may request additional task(s) related to NP water services, such as retrofit plans, site surveys of existing users located within the NP water service area that will eventually receive RW, updating NP water documents, conducting and coordinating Site Supervisor training, conducting cross-connection testing and annual inspection of existing NP water users, as needed.

Note* The Consultant will wait to initiate work on this Task until they receive a specific request and a notice to proceed from the city.

Task 10. Preparation of the Cross-Connection Control Plan

The Cross-Connection Control Policy Handbook (CCCPH), when adopted, will require a Public Water System (PWS) to submit, within one year, a written Plan to the SWRCB that describes the PWS current Program and how the PWS will meet and maintain compliance with the requirements of the CCCPH. As part of this effort, the Consultant must be a certified AWWA Cross-Connection Control Specialist and is expected to will review the City’s current Cross- Connection Control Program (Program) and provide recommendations for improvements that will be included in the Plan. Task 10 will be split into sub tasks to enhance clarity, efficiency, and thorough understanding of the City’s PWS Program and Plan.

o 10.1 Meetings
One (1) In -person Kick -off Meeting (1.5 hrs.): Overview of the purpose and objective of the CCCPH requirements, Information gathering and request, discussion/collaboration, and next steps.

Three (3) virtual meetings (1.0 hrs./meeting): These meetings will provide an opportunity for in-depth discussions, allowing for a comprehensive exploration of the Program's status, challenges, and potential areas for improvement. Through these collaborative sessions, the Consultant and City staff will closely collaborate to ensure alignment on objectives, identify any necessary adjustments, and develop a clear roadmap for moving forward effectively.

One (1) In -person meeting (1.5 Hrs.) to discuss and review the Consultants recommendations.

One (1) virtual meeting (1.5 hrs.) with the SWRCB and the City to discuss the adopted CCCPH and Plan expectations and format.

Two (2) virtual meetings to (1.0 hrs./meeting) to discuss required information outlined in the Plan. These virtual sessions serve as a platform for thorough discussions and exchanges of pertinent details, ensuring a comprehensive understanding of the Plan's requirements.

Redlands Regular Meeting of 07-02-24
786 of 864
12 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM One (1) In -person meeting (1.5 hrs.) will be arranged to facilitate a detailed discussion of the Draft Plan. During this meeting, participants will have the chance to provide feedback, raise any concerns, and collaborate on refining the Plan to ensure it aligns effectively with project objectives and stakeholder requirements.

o 10.2 Data Collection
Collect and review relevant project data provided by the City. Data to be provided, but not limited to:

City’s current cross-connection control ordinance
City’s current customer inventory/database
Access to the backflow software
Current cross-connection and backflow test report forms Current City’s approved backflow tester list

o 10.3 Cross-Connection Control Plan
The Consultant to review the current City’s Program to assess potential deficiencies and improvements. Findings will be summarized in a Technical Memorandum (TM).

The Consultant will be responsible for preparing a Cross-Connection Control Plan based on the adopted CCCPH. Elements of the Plan, as outlined in the draft CCCPH, will include a discussion of:

City’s Operating Rules and Ordinances
Cross-Connection Control Program Coordinator
Hazard Assessments
Backflow Prevention
Certified Backflow Prevention Assembly Testers and Specialists Backflow Prevention Assembly Testing
Recordkeeping
Backflow Incident Response, Reporting, and Notification Public Outreach and Education
Local Entity Coordination
The schedule for all deliverables (i.e., Draft and TM) will be discussed during the Draft Plan meeting.

Task 11. Additional Cross-Connection Control Program Services

The city may request additional task(s) related to Cross -Connection Program services, such as updating the City’s Ordinance Chapter 13.20; conducting site hazard assessment; backflow Redlands Regular Meeting of 07-02-24
787 of 864
13 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM protection compliance at existing sites; or verification of backflow testers test results by visiting the user premise and confirming backflow prevention assembly serial number and size.

Note* The Consultant will wait to initiate work on this Task until they receive a specific request and a notice to proceed from the City.

Redlands Regular Meeting of 07-02-24
788 of 864
14 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM

EXHIBIT "B"

PRICE AND FEE BID AND BILLING RATE SCHEDULE

Recycle Water, Non-Potable Water, and Cross-Connection Control Program Support Services Task UoM Qty. Unit Price ($) Extended Price ($)
Task 1. Project
Management T&M Fiscal Year − 13,000
Task 2. Recycled Water
Annual Inspections Lump Sum/Site 70  87,500
Task 3. Recycled Water
Cross-Connection
Quadrennial Testing
Lump Sum/Site 35  59,500
Task 4. Recycled Water
Inspection and Cross-
Connection Testing for New
Construction Projects
T&M 7  63,000
Task 5. Recycled Water
Irrigation Plan Review Lump Sum/Plan 7 3,000 21,000
Task 6. Additional Recycled
Water Services T&M Fiscal Year − 20,000
Task 7. Non-Potable Water
Irrigation Plan Review Lump Sum/Plan 13 3,000 39,000
Task 8. Non-Potable Water
Inspection and Cross-
Connection Testing
T&M 13  117,000
Task 9. Additional Non-
Potable Water Services T&M Fiscal Year − 
Task 10. Preparation of the
Cross-Connection Control
Plan
T&M Fiscal Year − 71,000
Task 11. Additional Cross-
Connection Control
Program Services
T&M Fiscal Year − 10,000
TOTAL SUM BID (EXTENDED PRICE) 521,000

Redlands Regular Meeting of 07-02-24
789 of 864
15 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM

Redlands Regular Meeting of 07-02-24
790 of 864
16 I:\cmo\Agreements\West_Yost_&_Associates_Agreement-FY23-0121.doc-JM EXHIBIT "C"

WORKERS’ COMPENSATION INSURANCE CERTIFICATION

Every employer, except the State, shall secure the payment of compensation in one or more of the following ways:

(a) By being insured against liability to pay compensation by one or more insurer s duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self-insure, either as an individual employer , or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees.

CHECK ONE

_____I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers’ Compensation or to undertake self - insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861).

_____I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers’ compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers’ compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers’ compensation insurance.

I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct.

West Yost & Associates, Inc.

By: Date: ___________________
Greg Chung, Vice President

Redlands Regular Meeting of 07-02-24
791 of 864
Redlands Regular Meeting of 07-02-24
792 of 864
BID NO. BID DATE: 03/27/2024
ANNUAL PO FISCAL YEAR: 2024-2025
Unit Price Extended Price ($)
Task 1. Project Management T & M Fiscal Year - $ 13,000.00 Task 2. Recycled Water Annual Inspections Lump Sum/Site 70 $ 1,250.00 $ 87,500.00 Task 3. Recycled Water Cross-Connection Quadrennial Testing Lump Sum/Site 35 $ 1,700.00 $ 59,500.00 Task 4. Recycled Water Inspection and Cross-Connection Testing for New Construction Projects T & M 7 $ 9,000.00 $ 63,000.00 Task 5. Recycled Water Irrigation Plan Review Lump Sum/Plan 7 $ 3,000.00 $ 21,000.00 Task 6. Additional Recycled Water Services T & M Fiscal Year - $ 20,000.00 Task 7. Non-Potable Water Irrigation Plan Review Lump Sum/Plan 13 $ 3,000.00 $ 39,000.00 Task 8. Non-Potable Water Inspection and Cross-Connection Testing T & M 13 $ 9,000.00 $ 117,000.00 Task 9. Additional Non-Potable Water Services T & M Fiscal Year - $ 20,000.00 Task 10. Preparation of the Cross-Connection Control Plan T & M Fiscal Year - $ 71,000.00 Task 11. Additional Cross-Connection Control Program Servcies T & M Fiscal Year - $ 10,000.00 TOTAL SUM BID (EXTENDED PRICE) $ 26,950.00 $ 521,000.00

CITY OF REDLANDS

MUNICIPAL UTILITIES AND ENGINEERING DEPARTMENT

BID ANALYSIS

PRICE AND FEE BID
PART 4
BID # 20240327-FM
Recycle, Water, Non-Potable Water, and Cross-Connection Control Program Support Services UoM Qty.

WEST YOST
TASK
Redlands Regular Meeting of 07-02-24
793 of 864
City Council Meeting L. 5.

DATE: 07/02/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of the $120,000 Professional Services Agreement with Eurofins Eaton Analytical, LLC for support services at the Joint Utility Laboratory for a total potential amount not-to-exceed $360,000, and determine that this action is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act. (Municipal Utilities and Engineering Director Harris)
MOTION(S):

If City Council determines the staff recommendation is appropriate, the following motions are provided:

1. I move that City Council determine approval of a Professional Services Agreement with Eurofins Eaton Analytical, LLC. is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and

2. I move to approve a Professional Services Agreement with Eurofins Eaton Analytical, LLC for Joint Utility Laboratory support services.

RECOMMENDATION:

Staff recommends that the City Council determine that approval of a Professional Services Agreement with Eurofins Eaton Analytical, LLC is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act, and approve a Professional Services Agreement with Eurofin Eaton Analytical, LLC for Joint Utility Laboratory support services with an initial term of one-year and an annual amount not to exceed $120,000, with the option to extend for two additional one-year terms.

Redlands Regular Meeting of 07-02-24
794 of 864
DISCUSSION:

The California State Water Resources Control Board and the U.S.

Environmental Protection Agency require the City to regularly monitor various elements in its water and wastewater. The City operates the Joint Utilities Laboratories (JUL) to analyze water and wastewater samples, and reports the results at the mandated frequencies. Occasionally, the JUL requires support from a consulting laboratory to analyze samples for the presence of new and emerging contaminants.

On May 4, 2024, staff issued a Request for Bids (RFB) for on-call Joint Utility Laboratory support services. Bids were received from the following two (2) laboratory service providers prior to the May 22, 2024 submittal deadline.

Vendor Location Total Bid Amount
Eurofins Eaton Analytical, LLC. Pomona, CA $120,408
Babcock Laboratories, Inc. Riverside, CA $135,727
Staff reviewed each bid and determined that Eurofins Eaton Analytical, LLC (Eurofins) submitted the lowest responsive and responsible bid and recommends City Council approval of a Professional Services Agreement with Eurofins, with an initial term of one-year and a not-to-exceed amount of $120,000. If approved, the Agreement may be extended for two additional one-year terms, each with a not-to-exceed amount of $120,000 per year, resulting in a total potential agreement value of $360,000. Approval of the Professional Services Agreement with Eurofins is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act, as the proposed action is not expected to cause any significant environmental impact.

ALTERNATIVES:

City Council may deny the staff recommendation and provide alternate direction.

STRATEGIC PLAN:

N/A
Redlands Regular Meeting of 07-02-24
795 of 864
SUBMITTED BY:

John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Danielle Garcia, Management Services/Finance Director
PREPARED BY:

Jungjoon Park, Laboratory Manager
Fiscal Impact
Fiscal Year: FY 24/25
Appropriation Required Y/N: No
Amount: $25,000
Budgeted Y/N: Yes
Account No.: 521900
Discussion:

Sufficient funding is allocated in the Fiscal Year 24/25 Wastewater Service (521900) budget.

Fiscal Year: FY 24/25
Appropriation Required Y/N: No
Amount: $95,000
Budgeted Y/N: Yes
Account No.: 501900
Discussion:

Sufficient funding is allocated in the Fiscal Year 24/25 Water Service (501900) budget.

Attachments
Bid Report
Eurofins Agreement
Redlands Regular Meeting of 07-02-24
796 of 864
Redlands Regular Meeting of 07-02-24
797 of 864
1 Eurofins Eaton Analytical, LLC-FY23-0122-msv2

AGREEMENT TO PERFORM PROFESSIONAL SERVICES

This agreement for the provision of Laboratory Services for Water and Wastewater (“Agreement”) is made and entered in this 2nd day of July, 2024 (“Effective Date”), by and between the City of Redlands, a mun icipal corporation (“City ”) and Eurofins Eaton Analytical , LLC, a Delaware limited liability company . (“Consultant”). City and Consultant are sometimes individually referred to herein as a “Party” and, together, as the “Parties.” In consideration of the mutual promises contained herein, City and Consultant agree as follows:

ARTICLE 1 – ENGAGEMENT OF CONSULTANT

1.1 City hereby engages Consultant to provide laboratory services for City (the “Services”).

1.2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practici ng professional consultants in the industry providing like and similar types of Services.

ARTICLE 2 – SERVICES OF CONSULTANT

2.1 The Services that Consultant shall perform are more particularly described in Exhibit “A,” titled “Scope of Servi ces,” which is attached hereto and incorporated herein by this reference.

2.2 Consultant shall comply with applicable federal, state and local laws and regulations in the performance of this A greement including, but not limited to , any applicable State prevailing wage laws.

ARTICLE 3 – RESPONSIBILITIES OF CITY

3.1 City designates John R. Harris, Municipal Utilities and Engineering Director , as City’s representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to performance of the Services.

ARTICLE 4 – PERFORMANCE OF SERVICES

4.1 Consultant shall perform and complete the Services in a prompt and diligent manner in accordance with the schedule set forth in Exhibit “A,” titled “Scope of Services,” which is attached hereto and incorporated herein by reference

4.2 The term of this Agreement shall be for a period of one (1) year from the Effective Date of this Agreement (the “Initial Term”). The City shall have the option to extend the Initial Term of this Agreement by two (2) additional one-year terms (each, an “Extended Term”), on the same terms and conditions, by providing written notice to Consultant at least thirty (30) days prior to the expiration of the Initial Term or any Extended Term.

Redlands Regular Meeting of 07-02-24
798 of 864
2 Eurofins Eaton Analytical, LLC-FY23-0122-msv2

4.3 If Consultant’s Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to Cit y, consistent with City Council-adopted policy for the same. It shall be the obligation of Consultant to obtain a copy of such policy from City staff.

ARTICLE 5 – PAYMENTS TO CONSULTANT

The compensation for Consultant’s performance of the Services shall not exceed the amount of One Hundred Twenty Thousand Dollars ($120,000) for the Services provided during the Initial Term. Should this Agreement be extended, the compensation for Consultant’s performance for the Services shall not exceed the amount of One Hundred Twenty Thousand Dollar s ($120,000) for the first Extended Term; and One Hundred Twenty Thousand Dollars ($120,000) for the second Extended Term, bringing the total possible amount of compensation to a not -to-exceed amount of Three Hundred Sixty Thousand Dollars ($360,000). For the Initial Term and each Extended Term, City shall pay Consultant on a time and materials basis up to the not to not -to-exceed amount in accordance with the rates specified in Exhibit “B,” titled “Price and Fee Bid ,” which is attached hereto and incorporated herein by this reference.

5.1 Consultant shall submit monthly invoices to City describing the Services performed during the preceding month. Consultant’s invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom, and a description of reimbursable expenses related to the Services. City shall pay Consultant no later than thirty (30) days after receipt and approval by City of Consultant’s invoice.

5.3 Any n otice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic mail transmission (including PDF) , if confirmed with a copy sent contemporaneously by fir st class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section:

CITY: CONSULTANT:

City Clerk Caroline Sangari, Business Unit Manager
City of Redlands Eurofins Eaton Analytical, LLC
35 Cajon Street 941 Corporate Center Drive
P.O. Box 3005 (mailing) Pomona, CA, 91768
Redlands, CA 92373 [email protected] [email protected] 626-827-9817
Phone: (909) 798-7531 866-988-3757

Redlands Regular Meeting of 07-02-24
799 of 864
3 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
ARTICLE 6 – INSURANCE AND INDEMNIFICATION

6.1 The following insurance coverage required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services. Consultant shall not perform any Services unless and until the required insurance listed below is obtained by Consultant.

Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance po licies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City.

A. Workers’ Compensation and Employer’s Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Consultant is self-insured or exempt from the workers’ compensation laws of the State of California. Consultant shall execute and provide City with Exhibit “ C,” titled “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference, prior to performance of the Services.

B. Comprehensive General L iability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate , for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City.

C. Consultant shall secure and maintain professional liability insurance throughout the term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made.

D. Business Auto L iability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all Consultant owned vehicles used in connection with Consultant’s provision of the Services, hired and non-owned vehicles, and employee non -ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non -contributing to any insurance or self - insurance maintained by City.

E. Consultant is expressly prohibited from assigning or subcontracting any of the Services without the prior written consent of City. In the event of mutual agreement by the Parties to assign or subcontract a portion of the Services, Consultant shall add su ch assignee or subcontractor as an additional insured to the insurance policies req uired hereby and provide City with the insurance endorsements prior to any Services being performed by the assignee or subcontractor.

6.2 Consultant shall defend, indemnify and hold harmless City and its elected and appointed officials, employees and agents from and against any and all claims, losses or liability, including attorneys’ fees, arising from injury or death to persons or damage to property Redlands Regular Meeting of 07-02-24
800 of 864
4 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in performing the Services.

ARTICLE 7 – CONFLICTS OF INTEREST

7.1 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of Consultant’s Services. Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement.

7.2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant:

A. Does not make a governmental decision whether to:

(i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item; (vi) adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof.

B. Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position s pecified in City’s Conflict of Interest Code under Government Code section 87302.

7.3 In the event City determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fair Political Practices Commission Form 700, State ment of Economic Interests , with the City Clerk’s office pursuant to the written instructions provided by the City Clerk.

ARTICLE 8 – GENERAL CONSIDERATIONS

8.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys’ fees, including fe es for the use of in - house counsel by a Party.

Redlands Regular Meeting of 07-02-24
801 of 864
5 Eurofins Eaton Analytical, LLC-FY23-0122-msv2

8.2 Consultant shall not assign any of the Services, except with the prior written approval of City and in s trict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, result in City’s immediate termination of this Agreement.

8.3 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any its agents shall have control over the conduct of Consultant or Consultant’s employees, except as herein set forth. Consultant shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant or personnel retained by it be deem ed to have been employed by City or engaged by City for the account of, or on behalf of City. Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation.

8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City’s intent to terminate. If this Agreement is terminated by City, an adjustment to Consultant’s compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed S ervices, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant. Upon receipt of a termination notice, Consultant shall immediately discontinue its provisio n of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination.

8.5 Consultant shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Consultant.

8.6 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein , an y amendment to this Agreement shall be in writing, approved by City and signed by City and Consultant.

8.7 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and Redlands Regular Meeting of 07-02-24
802 of 864
6 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California.

8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement.

IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement.

CITY OF REDLANDS EUROFINS EATON ANALYTICAL, LLC

By: ___________________________ By: _________________________ Eddie Tejeda, Mayor Caroline Sangari, Business Unit
Manager

ATTEST:

___________________________
Jeanne Donaldson, City Clerk

Redlands Regular Meeting of 07-02-24
803 of 864
7 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
EXHIBIT "A"

SCOPE OF SERVICES

The Consultant must possess the skills, licenses, certifications, and professional expertise necessary to provide analytical services to the City with a level of competency maintained by other environmental testing laboratories in the industry that offer similar types of services. To this end, Babcock Laboratory shall be certified by ELAP and NELAP.

Provide updated/renewed laboratories certification and Field of Accreditation to City staff. (Including subcontracted laboratories’ certification and FOAs).

Furthermore, at least 95% of lab analyses listed in the fee schedule shall be conducted in-house without subcontracting.

The quality of laboratory tests shall be governed by the NELAP-Approved Quality Assurance Manual and adhere to a strict Code of Ethics, policies, minimum detection limits (MDLs) below the Method Reporting Limit (MRL), Laboratory Control Sample (LCS), and Matrix Spike (MS) shall be conducted with each sample batch (for selected tests), and MRL check shall be performed with each sample batch (for selected tests).

The laboratory shall maintain accreditation and a laboratory license to perform testing, audit the most recent third-party audit report of quality systems (required as part of accreditation), and the most recent third-party proficiency test results (required as part of accreditation).

The laboratory shall have a Quality Assurance (QA) Manual with a table of contents that illustrates the depth of policies and procedures, Standard Operating Procedures (SOPs) for laboratory procedures for analysis according to approved test methods, Method Acceptance Limits (MALs) for each analytical method to demonstrate precision and accuracy, and MDLs for annual demonstration of capability to meet specific reporting limits.

The laboratory shall have documentation of the laboratory's investments in and commitment to technological advancements in instrumentation. Eurofins shall dedicate at least one instrument for each analysis, and a minimum of two dedicated instruments and two dedicated staff members for Volatiles, Perchlorate, Nitrate.

Consultant shall be available for deliveries and pick-ups five days per week and on weekends when required.

Consultant shall utilize a web-based data reporting system with Environmental Data Transfer (EDT, CLIP, and SWRCB) capability, Electronic Data Deliverable (EDD) (Laboratory Information Management System and HACH-WIMS) capability.

Eurofins shall provide waterproof labels on pre-labeled containers that are color-coded according to preservatives, with lot numbers and expiration dates of preservatives.

Redlands Regular Meeting of 07-02-24
804 of 864
8 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
Consultant shall provide ice packs and packaging materials for sample transportation and a customized chain of custody form for every sample point.

Consultant shall deliver reports with the proper project name and identification of either drinking water, wastewater, industrial monitoring, stormwater, SSOs, or sludge, and provide laboratory reports to the appropriate designated city staff within a ten (10) business day timeframe or sooner, unless it is considered a rush sample, which shall be submitted within the approved turnaround time by Eurofins. If there is any delay in reporting, promptly communicate with City staff.

The report should also include all following information but not limited to: 1) Project Name, 2) Report Date, 3) Date Sampled, 4) Date Submitted, 4) Chain of Custody, 5) Analyst Name, 6) Matrix, 7) Sample ID, 8) RDL, 9) MDL, 10) Units 11) Analysis Date, 12) Analyte(s), 13) Result, 14) Flag for any QC failures, 15) Blank and QC batch result, and 16) Method(s)

Provide Wastewater Report result with Reporting Limit/MDLs value rather than RDL.

If Consultant staff notices abnormal data results, they need to notify city staff within 48 hours of findings. (Certain analyses are required within 24 hours of finding the result. Those analyses will be agreed upon between City and Eurofins.)

Consultant shall provide reports in PDF and CSV formats (EDT format when necessary) when reports are delivered to City staff.

Consultant shall provide a description of the sample kits to be used, and the sample return method shall meet analytical hold times and cost implications.

Consultant shall provide order login and acknowledgment, the method for organizing work orders, communicate with the City any issue at onset, QA/QC measures taken to assure accuracy, precision, completeness, and correctness.

When requested, provide the entire sample data that the City has sent out in an Excel file to be used for the Consumer Confidence Report.

Consultant shall submit invoices to the City within 30 days of the report.

Redlands Regular Meeting of 07-02-24
805 of 864
9 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
EXHIBIT "B"

PRICE AND FEE BID

ITEM
NO.

EST.

QTY DRINKING WATER TEST METHOD UNIT
PRICE
*EXTENDED
PRICE
(QTY X UNIT
PRICE)
1 1 Total Alkalinity SM2320B $12.00 $12.00
2 1 Apparent Color SM 2120B $10.00 $10.00
3 1 Asbestos EPA 100.2 $250.00 $250.00
4 1 Carbamates EPA 531.1 $65.00 $65.00
5 1 Chloride EPA 300.0 $12.00 $12.00
6 1 Chlorinated Acid
Herbicides by GC-ECD EPA 515.4 $90.00 $90.00
7 1
Coliform,
Presence/Absence by
Colilert
SM 9223B $15.00 $15.00
8 1 Cyanide (Free) SM 4500-CN G $30.00 $30.00
9 1 Dioxin EPA 1613 $225.00 $225.00
10 1 Diquat and Paraquat EPA 549 $100.00 $100.00
11 80 EDB and DBCP by GC-
ECD
EPA 504.1 or
EPA 524.2 $60.00 $4,800
12 1 Endothall by GC-MS EPA 548.1 $75.00 $75.00
13 1 Fluoride EPA 300.0 $20.00 $20.00
14 1 General Minerals See Appendix A $150.00 $150.00
15 700 General Physicals See Appendix B $25.00 $17,500
16 20 Glyphosate by HPLC EPA 547 $75.00 $1,500.00
17 50 Gross Alpha by Co-
precipitation SM 7110C $65.00 $3,250.00
18 100 Haloacetic Acids SM6251B $70.00 $7,000.00
19 50 Hexavalent Chromium
(20 ppt MRL)
EPA 218.7 $45.00 $2,250.00
20 1 Inorganics See Appendix C $160.00 $160.00
21 1 Langelier’s Saturation
Index (see Appendix-
Langelier Saturation
Index)
SM 2330B(no
add'I cost for calc.
if all required
elements
requested
$5.00 $5.00
Redlands Regular Meeting of 07-02-24
806 of 864
10 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
22 30 Lead and Copper EPA 200.8 $25.00 $750.00
23 1 MPN ( TOTAL & Fecal
Coliform)
SM9221B,C,E $20.00 $20.00
24 1 MPN(Total Coliform &
E.coli 10test tube)
SM9223B $20.00 $20.00
25 1 Mercury EPA 245.1 $25.00 $25.00
26 25 Metals by ICP
Aluminum, Barium,
Boron, Calcium,
Copper, Iron,
Magnesium,
Manganese, Potassium,
Silica, Silver, Sodium,
Zinc (per element)
EPA 200.7 $12.00 $300.00
27 25 Metals by ICPMS
Antimony, Arsenic,
Beryllium, Cadmium,
Chromium, Cobalt,
Copper, Iron, Lead,
Manganese, Mercury,
Nickel, Silver,
Selenium, Thallium,
Uranium, and Zinc (per
element)
EPA 200.8 $12.00 $300.00
28 20 Nitrate as N EPA 300.0 $15.00 $15.00
29 1 Nitrite as N EPA 300.0 $15.00 $15.00
30 1 Odor (TON) EPA 140.1M $10.00 $10.00
31 1 Organohalide Pesticides
and PCBs
EPA 505 or EPA
508.1
$75.00 $75.00
32 20 Perchlorate (1.0 ppb
MRL)
EPA 331 $75.00 $1500.00
33 50 pH SM 4500-H+B $10.00 $10.00
34 25 Rad226-228 RA 226GA RA
228GA
$175.00 $4,375.00
35 1 Semi-Volatiles Organics
by GC-MS
EPA 525.3 $100.00 $100.00
36 1 Specific Conductance SM 2510B $12.00 $12.00
37 1 Sulfate EPA 300.0 $15.00 $15.00
38 1 Surfactants SM 5540C $30.00 $30.00
39 25 Title-22 (Full) See Appendix D $1,800.00 $45,000.00 40 50 1,2,3-Trichloropropane
(TCP)
EPA 524 $60.00 $3,000.00
Redlands Regular Meeting of 07-02-24
807 of 864
11 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
41 25 Total Dissolved Solid
(TDS)
SM 2540C $15.00 $375.00
42 25 Total Hardness SM 2340C $12.00 $300.00
43 20 Total Organic Carbon SM 5310B $35.00 $700.00
44 50 Trihalomethanes EPA 524 $50.00 $2,500.00
45 10 Turbidity EPA 180.1 $12.00 $120.00
46 20 Volatile Organics EPA 524 $75.00 $1,500.00
47 1 Water Suitability Ratio SM 9020 $350.00 $350.00
DRINKING WATER SUBTOTAL $4,614.00 $99,221.00
ITEM
NO.

EST.

QTY WASTEWATER TEST METHOD UNIT
PRICE
*EXTENDED
PRICE
(QTY X UNIT
PRICE)
48 25 Anions (Cl, F, NO2-
N,NO3-N,SO4 &PO4-
P)
EPA-300 $65.00 $1625.00
49 20 Antimony EPA 7062, EPA
200.5, EPA
200.7, EPA
200.8, EPA
200.9, SM 3111B
OR SM 3113B
$18.00 $360.00
50 20 Ammonia SM 4500 NH-D $35.00 $700.00
51 1 Biochemical Oxygen
Demand (BOD)
SM 5210 $40.00 $40.00
52 1 Chemical Oxygen
Demand (COD)
HACH 8000 or
SM 5220 B,C or
D or EPA 410.4
$25.00 $25.00
53 20 Chloride EPA 300.0 $23.00 $23.00
54 20 Fluoride EPA 300.0 $15.00 $300.00
55 10 Hexavalent Chromium
(20 ppt MRL)
EPA 218.6 $60.00 $600.00
56 10 Mercury EPA 245.1 $25.00 $250.00
57 1 MPN(Total & Fecal
coliform)
SM9221B,C,E $30.00 $30.00
58 10 Metals by ICP Sodium
and Boron (per element)
EPA 200.7 $18.00 $180.00
59 75 Metals by ICPMS
Sodium and Boron (per
element)
EPA 200.8 $18.00 $180.00
Redlands Regular Meeting of 07-02-24
808 of 864
12 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
60 10 Metals by ICP Arsenic,
Barium, Cadmium,
Cobalt, Copper,
Chromium Total, Iron,
Lead, Manganese,
Mercury, Selenium,
Silver, Sodium, Boron,
Nickel, Zinc, Chromium
VI as a package
EPA 200.7 $175.00 $1,750.00
61 5 Metals by ICPMS
Arsenic, Barium,
Cadmium, Cobalt,
Copper, Chromium
Total, Iron, Lead,
Manganese, Mercury,
Selenium, Silver,
Sodium, Boron, Nickel,
Zinc, Chromium VI as a
package
EPA 200.8 $175.00 $875.00
62 20 Nitrate as N EPA 300.0 $25.00 $500.00
63 20 Nitrite as N EPA 300.0 $25.00 $500.00
64 20 Orthophosphate as P EPA 300.0 $15.00 $300.00
65 15 Phenolic Compounds EPA 420.4 $40.00 $600.00
66 15 Silica EPA 200.7 $18.00 $270.00
67 1 Strontium by ICPMS EPA 200.8 $18.00 $18.00
68 25 Sulfate EPA 300.0 $30.00 $750.00
69 10 Cyanide Free SM4500CNF $30.00 $300.00
70 10 Cyanide Total EPA 335.4 $35.00 $350.00
71 20 Total Alkalinity SM2320B $20.00 $400.00
72 25 Total Dissolved Solid SM2540C $20.00 $500.00
73 5 Total Hardness SM 2340C $20.00 $100.00
74 1 Total Kjeldahl Nitrogen EPA 351.2 $30.00 $30.00
75 50 Total Organic Carbon SM 5310B $33.00 $1650.00
76 20 Total Suspended Solids SM 2540D $15.00 $300.00
77 30 Turbidity SM 2130B or
EPA 180.1
$15.00 $450.00
78 5 Volatile Organic
Compounds
EPA 624.1 $85.00 $425.00
WASTEWATER SUBTOTAL $1,196.00 $14,818.00
Redlands Regular Meeting of 07-02-24
809 of 864
13 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
ITEM
NO.

EST.

QTY
SLUDGE
(ACCORDING TO
METHODS IN SW-846,

EXCEPT TOTAL

COLIFORM)

TEST METHOD UNIT
PRICE
*EXTENDED
PRICE
(QTY X UNIT
PRICE)
79 8 Ammonia as N EPA 350.1 $30.00 $240.00
80 1 Dioxin/Dibenzofurans EPA 1613B $600.00 $600.00
81 8 Hexavalent Chromium
(20 ppt MRL)
EPA 7196 $35.00 $280.00
82 8 Mercury EPA 7471A $36.00 $288.00
83 8 Metals by ICPMS
Antimony, Arsenic,
Barium, Beryllium,
Cadmium, Total
Chromium, Cobalt,
Copper, Lead,
Molybdenum, Nickel,
Selenium, Silver,
Thallium, Vanadium,
and Zinc (per element)
EPA 6020 or
EPA SW846
Series
$18.00 $144.00
84 8 Nitrate as N EPA 9056 $25.00 $200.00
85 8 Paint Filter Test EPA 9095 $25.00 $160.00
86 8 Percent Solids SM 2540B $20.00 $160.00
87 2 Organochlorine
Pesticides and PCBs
EPA 8082 $125.00 $250.00
88 8 Total Kjeldahl Nitrogen EPA 351.2 $30.00 $240.00
89 2 Toxicity Characteristics
Leaching Procedure –
Arsenic, Barium,
Cadmium, Chromium
(total), lead, mercury
(total), selenium, and
silver.

EPA Method
1311 or EPA
6020
$130.00 $260.00
Sludge SUBTOTAL $1,069.00 $2,822.00
ITEM
NO.

EST.Q
TY

SSO SAMPLING
(SSMP) TEST METHOD UNIT
PRICE
*EXTENDED
PRICE
(QTY X UNIT
PRICE)
90 1 Total Coliforms and E.
coli
Quantitray $30.00 $30.00
SM9223 B
91 1 Ammonia, (Total) SM4500 NH3N $15.00 $15.00
SSO Sampling SUBTOTAL $45.00 $45.00
Redlands Regular Meeting of 07-02-24
810 of 864
14 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
ITEM
NO.

EST.Q
TY

INDUSTRIAL

MONITORING

AND TRUNK-LINE

MONITORING

TEST METHOD UNIT
PRICE
*EXTENDED
PRICE
(QTY X UNIT
PRICE)
92 1 Aluminum EPA200.7 or
EPA200.8
$9.60 $9.60
93 1 Ammonia EPA 350.1 or SM
4500 NH-D
$18.00 $18.00
94 1 Arsenic EPA200.7 or
EPA200.8
$9.60 $9.60
95 1 Barium EPA200.7 or
EPA200.8
$9.60 $9.60
96 1 Biochemical Oxygen
Demand (BOD)
SM 5210 $48.00 $48.00
97 1 Boron EPA200.7 or
EPA200.8
$9.60 $9.60
98 1 Cadmium EPA200.7 or
EPA200.8
$9.60 $9.60
99 1 Chemical Oxygen
Demand
EPA approved
method
$24.00 $24.00
100 1 Chloride EPA 300.0 $9.60 $9.60
101 1 Chromium (Total) EPA200.7 or
EPA200.8
$9.60 $9.60
102 1 Color SM 2120B $8.00 $8.00
103 1 Copper EPA200.7 or
EPA200.8
$9.60 $9.60
104 1 Cyanide SM4500-CN
C,D,E
$30.00 $30.00
105 1 Fluoride EPA 300.0 $9.60 $9.60
106 1 Total Hardness SM 2340C $19.20 $19.20
107 1 MBAS (Methylene Blue
Active Substances)
EPA 425.1 $30.00 $30.00
108 1 Magnesium SM4500 NH3H $9.60 $9.60
109 1 Iron EPA200.7 or
EPA200.8
$9.60 $9.60
110 1 Lead EPA200.7 or
EPA200.8
$9.60 $9.60
111 1 Manganese EPA200.7 or
EPA200.8
$9.60 $9.60
112 1 Mercury EPA 200.8 $19.20 $19.20
113 1 Nickle EPA200.7 or
EPA200.8
$9.60 $9.60
114 1 Oil & Grease EPA 1664A $66.00 $66.00
Redlands Regular Meeting of 07-02-24
811 of 864
15 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
115 1 Selenium EPA200.7 or
EPA200.8
$9.60 $9.60
116 1 Silica EPA200.7 or
EPA200.8
$9.60 $9.60
117 1 Silver EPA200.7 or
EPA200.8
$9.60 $9.60
118 1 Sodium EPA200.7 or
EPA200.8
$9.60 $9.60
119 1 Sulfate EPA 300.0 $9.60 $9.60
120 1 Total Dissolved Solids SM2540C $15.00 $15.00
121 1 Total Suspended Solids SM2540B $18.00 $18.00
122 1 Zinc EPA200.7 or
EPA200.8
$9.60 $9.60
123 1 Items 92-123 as a
package
Method indicated
in items 92-123
$600.00 $600.00

INDUSTRIAL TRUNK LINE
MONITORING SUBTOTAL $1,265.00 $1,265.00
ITEM
NO.

EST.Q
TY

STORMWATER-

WWTP TEST METHOD UNIT
PRICE
*EXTENDED
PRICE
(QTY X UNIT
PRICE)
124 1 Enterococci SM9230B $60.00 $60.000
125 1 E. coli SM9221F $30.00 $30.00
126 1 Iron (Total) EPA200.7 or
EPA200.8
$18.00 $18.00
127 1 Cadmium (Total) EPA200.7 or
EPA200.8
$18.00 $18.00
128 1 Copper (Total) EPA200.7 or
EPA200.8
$18.00 $18.00
129 1 Lead (Total) EPA200.7 or
EPA200.8
$18.00 $18.00
130 1 Total Suspended Solids
(TSS)
SM2540B $15.00 $15.00
131 1 Oil & Grease EPA 1664A $60.00 $60.00
132 10 Items 124-131 as a
package
Method indicated
in items 124-131
$200.00 $2,000.00
STORMWATER - WWTP SUBTOTAL $414.80 $2,281.40

This contract does not constitute an obligation for the City to purchase the quantities indicated herein. The quantities are estimates and are based on the most accurate information available. The purpose of this contract is to establish prices for the commodities or services required, in the event that the City needs to purchase such commodities or services. The needs of the City shall govern the amount to be purchased, and the City reserves the right to purchase quantities in excess of the estimates, in shortfall of the estimates, or not to purchase any quantities at all. The contractor shall offer the best government pricing for test method that are not included in the price list.

Redlands Regular Meeting of 07-02-24
812 of 864
16 Eurofins Eaton Analytical, LLC-FY23-0122-msv2
EXHIBIT "C"

WORKERS’ COMPENSATION INSURANCE CERTIFICATION

Every employer, except the State, shall secure the payment of compensation in one or more of the following ways:

(a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self-insure, either as an individual employer , or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees.

CHECK ONE

_____I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with suc h provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861).

_____I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers’ compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers’ compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers’ compensation insurance.

I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct.

EUROFINS EATON ANALYTICAL, LLC

By:____________________________________ Date: ___________________ Caroline Sangari, Business Unit Manager

Redlands Regular Meeting of 07-02-24
813 of 864
City Council Meeting L. 6.

DATE: 07/02/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of adoption of Resolution No. 8609 providing notice of intent to increase solid waste utility service rates, to direct staff to issue the required Proposition 218 notice establishing a public hearing date and location, and determine that consideration of the proposed rate increases is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Assistant City Manager Boatman)
MOTION(S):

If the City Council determines that staff recommendation is appropriate, the following motions are provided:

I move to determine that the adoption of Resolution No. 8609 is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and

1. I move that the City Council adopt Resolution No. 8609 providing notice of intent to increase solid waste utility service rates; and

2. Direct staff to issue the required Proposition 218 notice for a public hearing.

3. RECOMMENDATION:

Staff recommends that City Council determine that the adoption of Resolution No. 8609 is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act, and to adopt Resolution No. 8609 providing notice of the City's intent to increase solid waste utility service rates, and directing staff to issue the Proposition 218 notice establishing a date and location for a public hearing.

Redlands Regular Meeting of 07-02-24
814 of 864
DISCUSSION:

BACKGROUND
The City of Redlands, Facilities and Community Service Department provides solid waste collection, including recycling, composting and disposal services.

The City periodically adjusts solid waste service rates to keep pace with the increasing cost of providing these services. The last time that the City reviewed Solid Waste Rates was 2017 and it has only adjusted solid waste rates ten times over the last thirty years.

Senate Bill (SB) 1383 is State of California legislation approved in 2016 that requires a reduction in organic waste (food waste, green waste, paper products, etc.) disposed of in landfills by seventy-five percent (75%), and an increase in edible food recovery by twenty percent (20%) by 2025. Local municipalities, including the City, are responsible for achieving these targets by requiring mandatory recycling and organic collection, requiring color and labeling changes for carts and bins, purchase and use of compost and mulch, as well as outreach, reporting, contamination monitoring, inspections, and enforcement.

In 2023, the City contracted with R3 Consulting Group, Inc. (R3) to complete a solid waste financial plan and rate study (Study) of the expenses and revenues in the City’s Solid Waste Services Enterprise Fund (Solid Waste Fund) and to make recommendations about adjustments to solid waste rates necessary to fund projected expenses. Staff and R3 held two meetings with the Municipal Utilities Commission (Commission), on March 18, 2024 and April 15, 2024 to present draft findings and to receive feedback and recommendations. The Commission voted unanimously on April 15, 2024 to forward R3’s recommended adjustments to the City’s solid waste services to the City Council.

The Commission and staff are recommending the following solid waste utility service rate increases:

A nine percent (9%) rate increase January 1, 2025
A nine percent (9%) rate increase January 1, 2026
A nine percent (9%) rate increase January 1, 2027
A four percent (4%) rate increase January 1, 2028
The action before the Council is to set a public hearing regarding adjustments to rates for solid waste utility service for September 3, 2024 and to direct staff to provide notice of the public hearing. Recommended rates for fiscal year (FY) 2024-25 through FY 2027-28 are included in R3’s report of Solid Waste Financial Plan and Rate Study.

RATE MODEL
On March 18, 2024 the Commission received a comprehensive overview of Redlands Regular Meeting of 07-02-24
815 of 864
solid waste operations, including an analysis of revenues and expenses presented by R3. It was underscored that the last rate adjustment occurred in 2021 (and was approved in 2017), highlighting the necessity to adjust rates to ensure the sustainability of the operation. The Commission discussed various rate adjustment scenarios presented by R3, with a specific focus on maintaining any proposed rate adjustments below ten percent (<10%) in any given year.

Based on this direction, City staff worked with R3 to develop revised scenarios for adjustments to solid waste rates that adhered to the Commission's request while also addressing the operational needs of the division. The revised scenarios resulted in lower rate adjustments than were presented to the Commission in March. The March projections included rate adjustments in FY 2024-25 and FY 2025-26 that each exceeded ten percent (>10%), the revised scenarios resulted in rate adjustments that were lower than 10 percent (<10%) in all years.

At the April 15, 2024 meeting with the Commission, staff and R3 presented a revised recommended rate adjustment scenario covering the next four years with nine percent (9%) adjustments for each of the first three years and a four percent (4%) adjustment in the fourth year. The revisions to the recommended adjustments to solid waste rates were made possible due to adjustments to projected operating and capital expenses. Staff identified revisions for staffing allocations to the Solid Waste Fund that are estimated to reduce personnel costs in the Fund by $750,000 annually starting in FY 2024-25. Staff also identified revised fleet maintenance costs which are estimated to cost the Fund $750,000 annually starting in FY 2024-25. Finally, the time frame for replacement of 5 of the 17 vehicles scheduled to be replaced by FY 2028-29 was adjusted. While it is important that the City maintain its replacement schedule, replacement of these vehicles can be deferred by a few years without impacting operations.

The first three years of the recommended rate adjustments are comprised of four percent (4%) COLA/inflation, three percent (3%) vehicle replacement, and two percent (2%) for new SB 1383 regulations, with the final year only projected to need a four percent (4%) adjustment for COLA/inflation. These rate adjustments are designed to fully cover the costs of the Solid Waste Fund while also maintaining a stable operating reserve. It is further recommended by R3 that the City re-analyze actual and projected expenses in the Solid Waste Fund in FY 2027-28 to establish recommended rates effective FY 2028-29 (and up to four additional fiscal years thereafter).

The Commission recommended moving forward with R3’s recommended solid waste rates for the next four years (FY 2024-25 through FY 2027-28). The recommended rate adjustments are to be proposed to the City Council and solid waste customers through a Proposition 218 noticing process, with a notice being mailed to customers by July 2, 2024, regarding the public hearing on September 3, 2024. If approved by City Council, the first annual adjustment to solid waste rates would be on January 1, 2025.

Redlands Regular Meeting of 07-02-24
816 of 864

LEGAL CONSIDERATIONS
The R3 Study constitutes a detailed analysis of the City’s solid waste revenue and expense projections. R3 found that recommended adjustments to solid waste utility rates will recover sufficient revenue to support this service within the parameters set by relevant law, including article XIII D, section 6 of the California Constitution (“Proposition 218”).

The City Attorney has advised that the City comply with the requirements of Proposition 218 in authorizing the proposed adjustments to the solid waste utility rates. Those requirements include issuance of the recommended 45-day written notice to solid waste utility customers. The notice informs solid waste utility users about the reasons for proposed rates, the date and location of the public protest hearing (September 3, 2024), and how they can provide a written protest of the proposed rates. If more than 50 percent of solid waste utility users protest in writing, then the City Council will not be able to authorize the proposed solid waste utility rates.

Furthermore, approval of solid waste utility rate increases is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act since it will not result in a direct or reasonably foreseeable indirect physical change in the environment.

ALTERNATIVES:

City Council may deny the staff recommendation and provide alternate directions.

STRATEGIC PLAN:

N/A
Redlands Regular Meeting of 07-02-24
817 of 864
SUBMITTED BY:

Tabitha Crocker, Facilities and Community Services Department Director RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Christopher Boatman, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:

Nathalie Ayala, Senior Administrative Assistant
Fiscal Impact
Discussion:

There is no fiscal impact associated with authorizing staff to issue a Proposition 218 notice of intent to increase rates other than printing costs for the notice, which are included in the current budget. The notice will set a public hearing date of September 3, 2024, at which time the City Council will consider a solid waste rate increase. Should the City Council approve the recommendation, rates will take effect in January of 2025.

Attachments
A. Resolution No. 8609
B. Proposed Proposition 218 Notice
C. Recommended Rate Tables
D. R3 Report Solid Waste Financial Plan
Redlands Regular Meeting of 07-02-24
818 of 864
1 I:\cmo\Resolutions\8609 Intention to Adjust Rates for Solid Waste Utility Service and Setting Prop 218 Protest Hearing.docx-ms

RESOLUTION NO. 8609

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

DECLARING ITS INTENTION TO ADJUST RATES FOR SOLID WASTE UTILITY SERVICE; SETTING THE TIME AND PLACE FOR A PROPOSITION 218 MAJORITY PROTEST PUBLIC HEARING; AND AUTHORIZING THE CITY

MANAGER OR DESIGNEE TO PROVIDE THE RELATED NOTICE IN

COMPLIANCE WITH THE STATE-MANDATED TIMING REQUIREMENTS

WHEREAS, the City provides solid waste utility service as a municipally run operation ; and
WHEREAS, the City has not adjusted solid waste utility service rates since October 2021; and
WHEREAS, the City engaged R3 Consulting Group, Inc., to review and analyze the City’s solid waste revenue and expense projections and recommend adjustments to solid waste utility service rates to maintain sustainable funding for solid waste services; and WHEREAS, R3 Consulting Group, Inc. found that, without recommended adjustments to solid waste utility service rates, the City’s Solid Waste Service Fund will be depleted by the end of fiscal year (FY) 2025-26; and
WHEREAS, R3 Consulting Group, Inc. found that recommended adjustments to solid waste utility service rates recover sufficient revenue within the parameters set by relevant law, including article XIII D, section 6 of the California Constitution; and WHEREAS, the City Council intends to hold a protest hearing on the solid waste utility rates in accord with article XIII D, section 6(a) of the California Constitution; and WHEREAS, the City’s local procedures to conduct such a hearing are set forth in Resolution No. 8609.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:

Section 1. The above recitals are true and correct and are incorporated by this reference.

Section 2. A Proposition 218 Public Hearing is hereby set and will be held before the City Council on September 3, 2024, in order for the City Council to consider adjustments to solid waste utility rates; and
Section 3. The City Manager, or designee, is hereby authorized and directed to cause a notice of Public Hearing that provides detail s related to adjustments to solid waste utility service fees, rates, and/or charges being proposed to be mailed no later than July 19, 2024, in a manner that Redlands Regular Meeting of 07-02-24
819 of 864
2 I:\cmo\Resolutions\8609 Intention to Adjust Rates for Solid Waste Utility Service and Setting Prop 218 Protest Hearing.docx-ms complies with applicable laws, in cluding without limitation, the State -mandated 45-day required notice under Proposition 218.

Section 4. At the Public Hearing, the City Council shall consider objections and protests, if any, to the proposed rate adjustments, and Resolution No. 7128 shall govern the submission and tabulation of written protests with respect to the proposed rate adjustments.

ADOPTED, SIGNED AND APPROVED this 2nd day of July, 2024.

________________________
Eddie Tejeda, Mayor

ATTEST:

____________________________
Jeanne Donaldson, City Clerk

Redlands Regular Meeting of 07-02-24
820 of 864
3 I:\cmo\Resolutions\8609 Intention to Adjust Rates for Solid Waste Utility Service and Setting Prop 218 Protest Hearing.docx-ms I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 2nd day of July, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

______________________________
Jeanne Donaldson, City Clerk

Redlands Regular Meeting of 07-02-24
821 of 864

City of Redlands
Solid Waste Collection Customers

Public Hearing
September 3, 2024, 6:00 PM

City Council Chambers
35 Cajon Street, Suite 2
Redlands, CA 92373

Protests to proposed rates must
be submitted in writing. See
inside for information about how
to submit written protest.

For questions or more information,
please contact:
909-798-7529 or
[email protected]

City of Redlands
35 Cajon St, Suite 4, Redlands, Ca 92373
Recipient Name
Address
City, ST ZIP Code

PUBLIC NOTICE
Proposed
Solid Waste
Service Rates
& Public
Hearing
New City of Redlands
Solid Waste Service Rates
Includes Funding For:
 Inflationary Cost Increases
for Labor, Fuel, Disposal,
Recycling and Composting
 Replacement of Aging Solid
Waste Collection Vehicles
 Additional Landfill Capacity
 Compliance with Unfunded
State Mandate SB 1383

NOTICE OF PROPOSED

SOLID WASTE SERVICE

RATES AND

PUBLIC HEARING

Redlands Regular Meeting of 07-02-24
822 of 864

Why Am I Receiving This Notice?
This notice is being furnished to you as a solid waste
services customer in the City of Redlands regarding
proposed new bi-monthly rates for solid waste
services. This serves as notice that the Redlands
City Council will conduct a Public Hearing at the
time, date, and location enclosed to consider
recommended solid waste service rates.

All those interested are invited to appear at the time
and place of the Public Hearing enclosed to give oral
or written testimony or to submit written protests
regarding the proposed rates. The City Council will
hear and consider written materials submitted
regarding proposed rates at the Public Hearing. The
City Council has the authority to adjust the proposed
rate changes in response to oral testimony and
written materials submitted for consideration,
provided that any adjustments cannot increase rates
beyond those listed in this Notice.

Why Are New Solid Waste Service
Rates Needed?
The City of Redlands provides municipal solid waste
services (garbage, recycling, organics and other) in
the City. The City has conducted a study of its solid
waste rate revenues and projected expenses for
fiscal years (FYs) 2024-25 through 2027-28 which
concluded that adjustments to solid waste rates are
necessary to cover the cost of providing solid waste
services. Solid waste service have not been adjusted
since October 2021.

Adjustments to solid waste service rates will enable
the City to continue to provide solid waste collection
services by funding inflation-driven changes in costs
for labor, fuel, disposal, and recycling. Adjustments
will also fund needed replacement of aging solid
waste collection vehicles. Finally, adjustments will
fund compliance with the mandatory requirements of
Senate Bill 1383 which will reduce greenhouse
emissions related to organic waste disposal. Without
adjustments to rates the City will need to implement
cuts in solid waste services and programs.

NEW RATES WILL KEEP SERVICES WHOLE
The City currently provides solid waste services to
residents and business in the City, as listed online at cityofredlands.org/solid-waste-recycling-services.

If the new solid waste service rates are authorized
by City Council, the rates will recover revenues
necessary to fund:
 Inflationary increases in the cost of labor, fuel,
disposal and recycling.
 Necessary replacement of an aging solid waste
collection vehicle fleet.
 Compliance with the mandatory and unfunded
requirements of State Law SB 1383.

New Bi-Monthly Residential Cart Rates
Refuse
Cart
Size*
Current
Rates Proposed Rates
10/1/2021 1/1/2025 1/1/2026 1/1/2027 1/1/2028
60-Gallon $ 78.93 $ 86.03 $ 93.77 $ 102.21 $ 106.30
90-Gallon $ 81.54 $ 88.88 $ 96.88 $ 105.60 $ 109.82
* Rates shown include 60- or 90-Gallon Green Cart.

New Bi-Monthly Commercial Cart & Bin Rates
Refuse
Cart/Bin
Size
Current
Rates Proposed Rates
10/1/2021 1/1/2025 1/1/2026 1/1/2027 1/1/2028
60-Gallon $ 66.05 $ 71.99 $ 78.47 $ 85.53 $ 88.95
90-Gallon $ 73.65 $ 80.28 $ 87.51 $ 95.39 $ 99.21
1-Yard** $ 191.47 $ 208.70 $ 227.48 $ 247.95 $ 257.87
2-Yards** $ 325.69 $ 355.00 $ 386.95 $ 421.78 $ 438.65
** Rates shown are for once weekly collection.

The full list of current and proposed residential and
commercial solid waste service rates can be found online at www.cityofredlands.org/solid-waste-recycling-services.

How Do I Protest The Proposed
Solid Waste Service Rates?
You have the right to protest the proposed solid
waste service rates. The protest must be in
writing, and it must be submitted by either the
property owner or a current ratepaying tenant. It
must include the property service address and/or
the assessor’s parcel number, the eligible
individual’s name (property owner or tenant), a
statement to the effect of “I protest the proposed
solid waste service rates,” and an original signature.

Written protests may only be submitted by mail or
in-person to the Office of the City Clerk, City of
Redlands, 35 Cajon Street, Suite 4, Redlands CA,
92373, or during the Public Hearing on Tuesday,
September 3, 2024. All protests must be received
by the City Clerk before the conclusion of the
Public Hearing. The Clerk will not accept or
consider any protest received after the conclusion of
the Public Hearing.

Only one written protest per affected property
will be counted. Telephone, e-mail, and fax
protests will not be accepted. At the Public
Hearing on September 3, 2024, the City Council will
accept and consider all written protests and hear all
oral comments on the proposed solid waste service
rate changes. Oral comments will not be counted as
protests unless accompanied by a written protest as
outlined within this notice.

What is Organic Waste?
→ Food Scraps, Coffee Grounds, Tea Bags
→ Food-Soiled Paper Products
Pizza Boxes, Coffee Filters, Napkins,
To-go Bags/Boxes (no Styrofoam or Plastic)
→ Green Waste
Landscape & Pruning, Leaves, Flowers
→ Lumber, Wood
》

Redlands Regular Meeting of 07-02-24
823 of 864
Attachment 1
City of Redlands Solid Waste Service Rates
CURRENT Proposed Proposed Proposed Proposed
Effective Effective Effective Effective Effective
Bi-Monthly Rates 10/1/2021 1/1/2025 1/1/2026 1/1/2027 1/1/2028 1 extra 60 gallon refuse $26.72 $29.12 $31.74 $34.60 $35.98 1 extra 60 gallon greenwaste1 $26.72 $29.12 $31.74 $34.60 $35.98 1 extra 90 gallon refuse $33.85 $36.90 $40.22 $43.84 $45.59 1 extra 90 gallon greenwaste1 $33.85 $36.90 $40.22 $43.84 $45.59 2 60-gallon refuse $105.65 $115.16 $125.52 $136.82 $142.29 1 90-gallon refuse $81.54 $88.88 $96.88 $105.60 $109.82 1 60-gallon refuse $78.93 $86.03 $93.77 $102.21 $106.30 1 60-gallon refuse and 1-90-gallon refuse $108.26 $118.00 $128.62 $140.20 $145.81 1 60-gallon refuse commercial $66.05 $71.99 $78.47 $85.53 $88.95 1 90-gallon refuse commercial $73.65 $80.28 $87.51 $95.39 $99.21 2 90-gallon refuse commercial $107.50 $117.18 $127.73 $139.23 $144.80 Pull down service 1-90 RF $137.36 $149.72 $163.19 $177.88 $185.00 Pull down service 1-60 RF $134.75 $146.88 $160.10 $174.51 $181.49 1 90-gallon refuse shared by 2 units - multi-family $43.66 $47.59 $51.87 $56.54 $58.80 1 60-gallon refuse for each unit - multi- family $36.11 $39.36 $42.90 $46.76 $48.63 1 90-gallon refuse for each unit - multi- family $46.32 $50.49 $55.03 $59.98 $62.38 1 60-gallon refuse shared by 2 units -
multi-family $29.12 $31.74 $34.60 $37.71 $39.22
HHW $1.00 $1.00 $1.00 $1.00 $1.00
Note: 1. Charge for 4 or more GW carts.

Automated And Pull-Down Service