Agenda packet — Redlands City Council, July 7, 2026 (part 2 of 4)

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 (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 and Nevada Street parkway frontages and the Redlands Boulevard raised center median.

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 Pioneer 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 No. 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.

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) to the CFD located at the northeast corner of Wabash Avenue and Sylvan Boulevard for the maintenance of parks, slopes, parkways, and open space within and adjacent to the tract.

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 within and adjacent to the tract.

In September 2020 City 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.

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

In January 2021 City Council approved Annexation No. 24 (CUP No. 1129) to the CFD located at the southeast corner of Eureka Street and Stuart Avenue for the maintenance of parkways.

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 maintenance of infiltration trenches, infiltration basins, storm drain facilities, landscaping, and street trees.

In March 2022 City Council approved Annexation No. 26 (Tract Map No. 20257) to the CFD 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.

In October 2025 City Council approved Annexation No. 28 (Tract Map No. 20473) to the CFD located at the southwest corner of San Bernardino Avenue and Wabash Avenue for the maintenance of street trees.

Annexation No. 29 (Tract Map No. 20336), located on the north side of Domestic Avenue approximately 700 feet west of Texas Street, was approved by Council in February 2024 for the maintenance of parks, infiltration basins, catch basin inlets, fossil filters, landscaping, and street trees.

Annexation No. 30 (Tract Map No. 20528), located at the northeast corner of Tennessee Street and West Pioneer Avenue, was approved by Council in October 2025 for the maintenance of parkways, open space areas, citrus groves, firebreaks, medians, and street trees.

City Council AGENDA ITEM NO. J3.

DATE: July 7, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Public Hearing to consider Resolution No. 8807 - Delinquent Administrative Citations Fine and Weed Abatement Enforcement Cost Report
Resolution No. 8807 will approve the Delinquent Administrative Citation Fine and Weed Abatement Enforcement Costs Report and submittal of the report to the San Bernardino County Auditor-Controller/Treasurer/Tax Collector for Processing *THIS ITEM WAS REMOVED FROM THE AGENDA BY FIRE CHIEF SESSLER AND WILL BE PRESENTED AT THE NEXT REGULARLY SCHEDULED MEETING*
(Fire Chief Sessler)
PROCEDURE FOR PUBLIC HEARING:

1. Mayor declares the meeting open as a public hearing.

2. Mayor calls upon Department Director for report.

3. Mayor calls for questions/comments from members of the City Council.

4. Mayor calls for comments/questions/testimony from members of the public (3 minutes per speaker)

5. Mayor calls upon City Clerk to note any written comments received.

6. Mayor closes the public hearing.

7. City Council considers the motion and votes.

MOTION:

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

I move to adopt Resolution No. 8807.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 8807 and approve the delinquent fines report and submittal of a Notice of Liens to the San Bernardino County Auditor-Controller/Treasurer/Tax Collector for recordation as special assessments on the 2026-2027 tax roll against the properties identified in the report resulting from non-payment of the City of Redlands' administrative citation fines as well as weed abatement enforcement costs.

DISCUSSION:

The property owners identified in the attached report are associated with either unpaid administrative citations or weed abatement enforcement services. The unpaid administrative citations were issued for violations of the Redlands Municipal Code related to the possession, use, discharge, sale, or facilitation of illegal fireworks within the City of Redlands. Citations are issued to individuals determined to be responsible for the violation. At the time the citation is issued, the responsible party is required to provide a residential address. Pursuant to the City's administrative citation process, unpaid fines may be assessed against the property associated with the address provided by the cited individual.

The weed abatement enforcement service costs associated with the attached report are related to the enforcement actions and compliance measures conducted at identified parcels. These costs include weed abatement services performed by the City's contractor, as well as administrative fees associated with City staff time. Pursuant to the City Municipal Code Chapter 8.40, the public hearing and public nuisance declaration associated with weed abatement non-compliance were approved earlier this year with Resolution No. 8758.

As of June 9, 2026, a total of two administrative citations remain unpaid, representing an outstanding balance of $6,700.00, including applicable penalties and interest. Similarly, as of June 9, 2026, a total of three parcels where weed abatement enforcement action was completed by the City contractor remain unpaid, representing an outstanding balance of $7,023.00. The use of illegal fireworks and non-compliance with weed abatement requirements pose significant risks to public safety, including fire hazards, injuries, property damage, and impacts to the quality of life of Redlands residents.

Sections 1.22.140(B) and 8.40.080 of the Redlands Municipal Code provide that unpaid administrative citation fines and weed abatement enforcement costs may be deemed a special assessment against the lot or parcel associated with the violation. Prior to recording a lien, the City Manager is required to prepare a report identifying the outstanding fines, the affected properties, and the nature of the violations. Staff has prepared the attached report on behalf of the City Manager in accordance with the requirements of the Municipal Code.

Property owners were provided notice of the City Council's consideration of this report and advised of their right to submit written objections or appear before the City Council to present objections or protests. The City Council must consider the report together with any objections received and may make corrections, revisions, or modifications as it deems appropriate.

If the City Council adopts the resolution confirming the special assessments, the City Clerk will be directed to record Notices of Lien with the County Auditor-Controller/Treasurer/Tax Collector. Recording a lien secures payment of the outstanding administrative fines and enforcement costs through the property tax roll. The current cost to submit special assessments to the County tax roll is $0.30 per parcel.

The total amount of delinquent administrative fines and enforcement costs proposed for collection through special assessment is $13,723.00. Should additional violations occur or unpaid fines continue to accrue, future special assessments may be presented to the City Council for consideration and placement on the tax roll.

ALTERNATIVES:

The City Council may choose not to adopt Resolution No. 8807 and instead provide alternative direction to staff.

STRATEGIC PLAN:

Priority B - Public Health & Safety
SUBMITTED BY:

Vince Anderson, Fire Marshall
RECOMMENDED BY:

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

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
James Garland, Interim Management Services/Finance Director PREPARED BY:

Bruni Reyes, Management Analyst

FISCAL IMPACT
Fiscal Year: FY 2026/27
Revenue Generating: Yes
Amount: $13,723
Budgeted Y/N: Yes
Account No.:

Additional Appropriation Required: No
Discussion:

To date, two administrative citations have been issued for illegal fireworks violations, and three parcels where weed abatement enforcement action was completed by the City contractor remain unpaid. As of June 9, 2026, the total unpaid balance associated with these citations and weed abatement enforcement actions totals $13,723.00, including accrued penalties and interest. Placement of the delinquent fines and unpaid costs as special assessments on the County tax roll will assist the City in recovering these costs, with an administrative processing fee of only $0.30 per parcel.

Attachments
Resolution_No_8807.pdf
Fire_Special_Assessment_Notice_Letter_Example.pdf
FY2025-2026_Fire_Department_Citation_Spreadsheet.pdf
Resolution No. 8807 Delinquent Administrative Citations.bm.06.16.2026 1 RESOLUTION NO. 8807

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

APPROVING A DELINQUENT ADMINISTRATIVE CITATION FINE AND WEED

ABATEMENT ENFORCEMENT COSTS REPORT AND SUBMITTAL OF A
NOTICE OF LIEN TO THE SAN BERNARDINO COUNTY AUDITORCONTROLLER/TREASURY/TAX COLLECTOR FOR PROCESSING WHEREAS, the City of Redlands has issued administrative citations as well as weed abatement enforcement costs to the owners of various properties located within the City; and
WHEREAS, the property owners identified in the City Manager’s report have failed to pay the delinquent administrative citation fines and/or weed abatement enforcement costs assessed against their properties; and WHEREAS, Section 1.22.140 of the Redlands Municipal Code provides that “…fines levied by administrative citation, or by administrative hearing order, constitute a special assessment against each lot or parcel of and upon which the violation existed, and as thus made and confirmed shall also become the personal obligation of each lot or parcel of land;” and
WHEREAS, Section 8.40.080 of the Redlands Municipal Code authorizes the recovery of weed abatement costs and related administrative fees through liens and special assessments collected on the county property tax roll; and WHEREAS, pursuant to Section 1.22.140 and Section 8.40.080 of the Redlands Municipal Code, on July 7, 2026, a duly noticed public hearing was held at which the property owners were provided the opportunity to object or protest the proposed adoption of this resolution; and
WHEREAS, the City Council of the City of Redlands, having considered the City Manager’s report regarding delinquent administrative citations and the weed abatement enforcement costs, together with any objections and protests by the property owners of various locations, desired to declare the delinquent fines as special assessments and cause such fines to be recorded as a lien against the properties identified in the report; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as follows:

Section 1. The City Council approves the delinquent administrative citation fines and weed abatement enforcement costs report submitted by the City Manager and confirms such delinquent fines to be entered as special assessments on the property tax roll against the properties identified in the report.

Resolution No. 8807 Delinquent Administrative Citations.bm.06.16.2026 2 Section 2. The City Clerk of the City of Redlands, and the City’s Finance Director, are hereby authorized and directed to send a certified copy of this resolution and a Notice of Lien for the delinquent fines (as special assessments), and all other appropriate documentation to place the fines in the tax roll to the San Bernardino County Auditor-Controller/Treasurer/Tax Collector for the County of San Bernardino.

ADOPTED, SIGNED AND APPROVED this 7th day of July, 2026. ___________________________
Mario Saucedo, Mayor
ATTEST:
____________________________
Jeanne Donaldson, City Clerk
Resolution No. 8807 Delinquent Administrative Citations.bm.06.16.2026 3 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 7th day of July, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:
____________________________
Jeanne Donaldson, City Clerk
JUNE 15, 2025
Recipient Address
RE: APN XXXXXXXXXX PREMISE ADDRESS:

DELINQUENT BALANCE AS OF THIS NOTICE: $

NOTICE OF PUBLIC HEARING
This notice is to inform you that on Tuesday, July 7, 2026 at 6:00 p.m., or as soon thereafter as the matter may be heard, in the City of Redlands Council Chambers located at 35 Cajon St., Suite 2, Redlands, California, the Redlands City Council will hold a public hearing to consider the submittal of a report to the Auditor of San Bernardino County for recordation of a Special Assessment on the 2026-2027 tax roll against your property resulting from non-payment of a City of Redlands Administrative Citation or Weed Abatement Enforcement Costs.

Pursuant to Sections 1.22.130 & 8.40.080 of the Redlands Municipal Code, you have the opportunity to present objections to the City Council regarding this matter. Alternatively, you may submit your objections in writing at least five (5) days in advance of the hearing, or by Thursday, July 2, 2026.

To prevent this impending lien action, please remit your past due balance in full no later than 5:00 p.m. on Monday, August 16, 2026.

Please be informed that if the assessment is imposed on your property, that the property may be sold after three years by the tax collector for unpaid delinquent assessments. The tax collector’s power of sale shall not be affected by the failure of a property owner to receive notice. The assessment may be collected at the same time and in the same manner as ordinary municipal taxes are collected, and shall be subject to the same penalties and the same procedure and sale in case of delinquency as provided for ordinary municipal taxes.

For questions regarding this matter, please contact the Community Risk Reduction Division of the Redlands Fire Department at (909) 798-7603.

MISCELLANEOUS
6/9/2026

APN NUMBER N/S/E/W STREET CITY ZIP FIRST LAST NUMBER N/S/E/W STREET CITY STATE ZIP

CITATION /

DEMAND TO

PAY DATE DUE DATE

CITATION/
COST# CASE#

CURRENT
FINE
AMOUNT

DELINQUENT
FINE
AMOUNT
25% LATE

PAYMENT
CHARGE
No. of
months
Deliquent
No. of
months
subject to
interest

INTEREST
(10% PER

MONTH) TOTAL DUE

HEARING

DATE NOTES
016906106 1033 Washington St. Redlands 92374 Michael Galindo Jr. 1033 Washington St. Redlands CA 92374 07/04/25 07/24/25 $1,000 #1077 $1,000 $ 1,000.00 $ 250.00 10.52 11 $ 1,100.00 $ 3,350.00 7/7/2026 Fireworks Citation 016779140 1430 Arlene St. Redlands 92374 Saing Treece 101 1430 Arlene St. Redlands CA 92374 07/04/25 07/24/25 $1,000 #0101 $1,000 $ 1,000.00 $ 250.00 10.52 11 $ 1,100.00 $ 3,350.00 7/7/2026 Fireworks Citation 017415401 FORD STREET TRUST 4-16-03 PO BOX 3070-351 Tustin CA 92721 04/30/26 05/30/26 $2,341 F26-5240 $2,341 $ 2,341.00 $ - 0.33 - $ - $ 2,341.00 7/7/2026 Weed Abatement Costs 017611111 Arianthi Ferronato 4831 N N SKYLINE DR EAGLE ID 83616 04/30/26 05/30/26 $2,341 F26-5241 $2,341 $ 2,341.00 $ - 0.33 - $ - $ 2,341.00 7/7/2026 Weed Abatement Costs 017611112 Arianthi Ferronato 4831 N N SKYLINE DR EAGLE ID 83616 04/30/26 05/30/26 $2,341 F26-5242 $2,341 $ 2,341.00 $ - 0.33 - $ - $ 2,341.00 7/7/2026 Weed Abatement Costs

VIOLATION ADDRESS NAME ADDRESS
Updated as of :

CITY OF REDLANDS

FIRE CITATIONS AND WEED ABATEMENT COSTS
FY: 2025/2026
S:\Admin\Council Reports RCA\2026\7-7-26\FY2025-2026 Fire Department Citation Spreadsheet.xlsx\FY 2025-26 - Council Report 4 of 4 City Council AGENDA ITEM NO. J4.

DATE: July 7, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Public Hearing to consider Resolution No. 8810 - Delinquent Municipal Services Account Report Resolution 8810 will approve the Delinquent Municipal Services Account Report and submittal of the Report to the Auditor of San Bernardino County for Lien Processing (Interim Management Services/Finance Director Garland)
PROCEDURE FOR PUBLIC HEARING:

1. Mayor declares the meeting open as a public hearing.

2. Mayor calls upon Department Director for report.

3. Mayor calls for questions/comments from members of the City Council.

4. Mayor calls for comments/questions/testimony from members of the public (3 minutes per speaker)

5. Mayor calls upon City Clerk to note any written comments received.

6. Mayor closes the public hearing.

7. City Council considers the motion and votes.

MOTION:

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

I move to adopt Resolution No. 8810.

RECOMMENDATION:

Staff recommends that the Council adopt Resolution No. 8810, a resolution of the City Council of the City of Redlands approving the Delinquent Municipal Services Account Report and subsequent submittal of this report to the Auditor-Controller of San Bernardino County for recordation of a Special Assessment on the 2026-2027 tax roll against properties resulting from non-payment of certain City of Redlands municipal services accounts.

DISCUSSION:

To maintain healthy and sanitary conditions, Redlands Municipal Code (RMC) Section 13.64.070 states:
"The fact that any property is occupied shall be prima facie evidence that solid waste is being generated and accumulated upon such property and that service charges for the collection and disposal thereof are due to the City. Every person owning or occupying any property in the City shall keep such property in a clean and sanitary condition and shall not cause or permit solid waste to collect or accumulate upon; provided, however, that this provision shall not be construed to interfere with any customer keeping building materials upon property during the construction, reconstruction, or repair of a building or structure thereon under a valid building permit, nor with the keeping of wood neatly piled upon such property for household use." This section further states:
"Every property shall subscribe to automated or non-automated solid waste services. It is unlawful for any property to keep, accumulate, or permit to be kept or accumulated, any solid waste in or upon any private place unless the same shall be in a container for such as specified in this chapter. It is unlawful for any property to fail or neglect to provide for the removal of solid waste from such property in accordance with the provisions of this chapter." The Customer Service Division's standard procedures include regular bills, reminder notices, final notices, courtesy phone calls, and special certified letters when attempting to collect payment for delinquent municipal service bills, which include solid waste and recycling services, household hazardous waste disposal services, and street cleaning services.

Delinquent accounts are sent letters indicating that the City may move forward with procedures in accordance with the Redlands Municipal Code Section 13.64.060 (B) which states, in part:
"In addition to any other remedies it may have for the collection of delinquent accounts, the city may cause notice of a hearing on delinquent accounts in accordance with Government Code sections 25830.1 and 38790.1. Such notice shall be mailed to property owners listed as delinquent accounts not less than ten (10) days prior to the date of the hearing. At the hearing, the City Council shall hear any objections or protests of such property owners. The City Council may make such revisions, corrections or deletions to the report of delinquent accounts as it deems just, after which, by resolution, the report shall be confirmed. The delinquent charges set forth in the delinquent account report may be placed as a lien on such properties for the amount of such delinquent charges plus legal fees and administration costs. A certified copy of the confirmed report shall be filed with the city clerk, for the current tax roll."
Twenty- nine (29) letters were mailed to property owners on June 25, 2026, providing them with notice that the City Council would hold a public hearing on July 7, 2026 "to consider the submittal of a report to the Auditor-Controller of San Bernardino County for recordation of a special assessment on the 2026-2027 tax roll against [their specific] property resulting from non-payment of a City of Redlands municipal services account." If these delinquent accounts are not paid by August 3, 2026, they will be included on the 2026-2027 tax roll that staff will submit to the County no later than the final deadline of August 10, 2026. Staff will accept payments on delinquent accounts up until August 3, such that any and all accounts that are brought current as a result will be excluded from the list being sent to the County for recordation.

The cost to apply a Special Assessment to the next tax roll is $0.30 per assessment/parcel submission, charged to the property owner. At the time the notices were prepared for mailing, 29 accounts totaling $12,953.28 were delinquent. However, the amounts reported to the County Auditor-Controller for inclusion on the tax roll may be less if any or all of these accounts are paid by August 3, 2026. For accounts that are still active and receiving service, additional bi-monthly charges will continue to accrue and will be billed to the current accounts of record. In the event the accounts fail to pay future bills in a timely manner and additional delinquencies accrue, future special assessments may be placed on the tax roll to secure payment from the customer.

ALTERNATIVES:

The City Council could direct staff to enlist the services of a collection agency for all delinquent accounts, including owner-occupied, that would attempt to collect the delinquent revenues due the City. This option would require the city to forfeit a portion of any amounts the collection agency was successful in collecting on behalf of the City, which is approximately 30% of the total receivable. It may also have an adverse effect on the account holder's credit score.

SUBMITTED BY:

James Garland, Interim Management Services/Finance Director RECOMMENDED BY:

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

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
James Garland, Interim Management Services/Finance Director PREPARED BY:

Ashley Deem-Sepulveda, Administrative Analyst

FISCAL IMPACT
Fiscal Year: 2026-2027
Revenue Generating: Y
Amount: $12,953.28
Budgeted Y/N: Y
Account No.: Various
Additional Appropriation Required: N/A
Discussion:

Approval of this resolution will provide for escalated procedures in an attempt to capture $12,953.28 in lost revenue associated with municipal services rendered.

Attachments
Resolution_No_8810_Delinquent_Municipal_Services.pdf
Customer_LIEN_LETTER_TEMPLATE_FOR_2026.pdf
Special_Assessment_Report_June_25_2026.pdf
1 I:\cmo\Resolutions\Resolution No. 8810 Delinquent Municipal Services.bm.06.25.2026.doc RESOLUTION NO. 8810

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

APPROVING THE DELINQUENT MUNICIPAL SERVICES REPORT AND

SUBMITTAL OF THE REPORT TO THE AUDITOR OF SAN BERNARDINO

COUNTY FOR LIEN PROCESSING
WHEREAS, the City of Redlands has provided service and properly billed and noticed delinquent accounts based on a preliminary report dated June 25, 2026, for solid waste and recycling collection and disposal, household hazardous waste disposal, and street cleaning services; and
WHEREAS, certain property owners receiving such services, as shown on the last available assessment roll, have failed to take action to pay the outstanding delinquent balance owed to the City; and
WHEREAS, measures are being taken in accordance with Chapter 13.64 of the Redlands Municipal Code which states “…in the event of non-payment of any portion of the municipal services statement, any charges for service shall be deemed the responsibility of the property owner and may result in a lien against the property;” and WHEREAS, pursuant to Chapter 13.64 of the Redlands Municipal Code, a duly noticed public hearing was held on July 7, 2026, so that the property owners could object or protest the proposed adoption of this resolution, and
WHEREAS, the City Council of the City of Redlands, having considered the delinquent solid waste service accounts, together with any objections and protests by property owners, desires to declare the delinquent accounts as special assessments and cause such accounts to be recorded as a lien against the properties benefitting from the provision of such services.

NOW, THEREFORE, be it resolved by the City Council of the City of Redlands as follows:

Section 1. The City Council approves the submittal of delinquent solid waste service accounts to the auditor of San Bernardino County, who will record and enter the assessments on the property tax roll against the properties that remain delinquent as of August 4, 2026.

Section 2. The City Clerk of the City of Redlands is hereby authorized and directed to send a certified copy of this resolution, to the auditor, or the officer holding the equivalent position of auditor, for the County of San Bernardino.
2 I:\cmo\Resolutions\Resolution No. 8810 Delinquent Municipal Services.bm.06.25.2026.doc ADOPTED, SIGNED AND APPROVED this 7th day of July, 2026.

Mario Saucedo, Mayor
ATTEST:

Jeanne Donaldson, City Clerk
3 I:\cmo\Resolutions\Resolution No. 8810 Delinquent Municipal Services.bm.06.25.2026.doc 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 7th day of July, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

Jeanne Donaldson, City Clerk
June 25, 2026

CUSTOMER NAME

CUSTOMER ADDRESS

CITY, STATE ZIP
RE: APN # 0123456000000
PREMISE ADDRESS: #### W SAN BERNARDINO AVE
DELINQUENT BALANCE AS OF THIS NOTICE: $XXX.XX

NOTICE OF PUBLIC HEARING
This notice is to inform you that on Tuesday, July 7, 2026, at 6:00 p.m. in the City of Redlands Council Chambers located at 35 Cajon St., Suite 2, Redlands, California, the Redlands City Council will hold a public hearing to consider the submittal of a report to the Auditor of San Bernardino County for recordation of a Special Assessment on the 2026-2027 tax roll against your property resulting from non-payment of a City of Redlands municipal services account.

As the property owner of record, you have the opportunity to present to the City Council comments and/or testimony regarding this matter.

To prevent this impending lien action, please remit your past due balance in full no later than Monday, August 3, 2026.

Please be informed that if the assessment is imposed on your property, the property may be sold after three years by the tax collector for unpaid delinquent assessments. The tax collector’s power of sale shall not be affected by the failure of a property owner to receive notice. The assessment may be collected at the same time and in the same manner as ordinary municipal taxes are collected and shall be subject to the same penalties and the same procedure and sale in case of delinquency as provided for ordinary municipal taxes.

For questions regarding this matter, please contact Elena Pfeifer, Utility Customer Service Supervisor, at (909) 798-7678 Ext. 1, or Aimee Hoover, Revenue Manager at (909) 798-7596.

Sincerely,
Danielle Garcia
Management Services/Finance Director
APN
Total Account
Balance
0169212220000 $ 4,069.70
0294101230000 $ 779.27
0300215240000 $ 764.38
0300161310000 $ 625.76
0300215250000 $ 625.76
0301191120000 $ 625.76
0300131160000 $ 606.36
0300262050000 $ 606.36
0300264060000 $ 450.75
0294081530000 $ 443.28
0300051010000 $ 423.04
0300481060000 $ 423.04
0300262110000 $ 308.57
0301143380000 $ 271.17
0300041060000 $ 220.32
0300201090000 $ 220.32
0300411220000 $ 165.91
0300061360000 $ 154.40
0300461030000 $ 111.84
0300123030000 $ 110.16
0300201180000 $ 110.16
0300215300000 $ 110.16
0300231560000 $ 110.16
0300241320000 $ 110.16
0300393020000 $ 110.16
0300511040000 $ 110.16
0300631080000 $ 110.16
0294081630000 $ 107.67
0300431150000 $ 68.34
Total All Parcels $ 12,953.28
Count 29
June 25, 2026 Report
Preliminary Delinquent
Municipal Services Accounts
City Council AGENDA ITEM NO. J5.

DATE: July 7, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Public Hearing to consider Resolution No. 8808 - Delinquent Administrative Citation and Fine Report
Resolution No. 8808 will approve the Delinquent Administration Citation Fine Report and submittal to the Auditor-Controller of San Bernardino County for Processing (Facilities and Community Services Department Director Crocker)
PROCEDURE FOR PUBLIC HEARING:

1. Mayor declares the meeting open as a public hearing.

2. Mayor calls upon Department Director for report.

3. Mayor calls for questions/comments from members of the City Council.

4. Mayor calls for comments/questions/testimony from members of the public (3 minutes per speaker)

5. Mayor calls upon City Clerk to note any written comments received.

6. Mayor closes the public hearing.

7. City Council considers the motion and votes.

MOTION:

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

I move to adopt Resolution No. 8808.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 8808. Staff further recommends that the City Council approve the Delinquent Administrative Citation Fine Report and authorize filing of Notices of Lien with the San Bernardino County Auditor - Controller/Treasurer/Tax Collector to record special assessments against the properties identified in the report on the 2026-2027 property tax roll as a result of unpaid City of Redlands administrative citation fines.

DISCUSSION:

The properties identified in the attached report have been found in violation of various sections of the Redlands Municipal Code (RMC). As of June 16, 2026, a total of 32 delinquent administrative citations remain unpaid, representing an outstanding balance of $20,092.50.

The violations associated with these citations include:

Property maintenance violations;
Weeds, trash, graffiti, and public nuisance conditions; Unpermitted construction, grading, and demolition activity; Building, electrical, and mechanical code violations;
Inoperative vehicles and prohibited RV/boat parking;
Vacation property registration violations;
Noise disturbances and emergency response violations;
Illegal dumping and prohibited open space activities;
Failure to maintain landscaping and parkway areas;
Unsecured or unsafe structures;
Business license and permit violations; and
Sign and land use violations, including Conditional Use Permit.

Applicable code sections include Chapters 1.22, 2.24, 5.04, 8.04, 8.08, 8.10, 8.20,8.72, 9.16, 9.32, 12.32, 12.46,

13.52, 13.54, 15.04, 15.36, 18.164, 18.168, 18.188, and 18.20 of the RMC, as well as the California Health and Safety Code Section 17920.3.

The Code Enforcement Division follows a progressive compliance process designed to encourage voluntary correction prior to enforcement action. Staff initially conducts inspections to identify violations and educate property owners regarding applicable Municipal Code requirements. When violations are confirmed, a Notice of Violation is issued as a courtesy measure, providing property owners with an opportunity to correct deficiencies without penalty. Notices also include contact information for staff assistance and guidance.

If violations are not corrected within the specified timeframe, the city proceeds with the administrative citation process pursuant to Section 1.22 of the RMC. This process provides additional notices, escalating penalties, and the opportunity to appeal citations before an independent third-party administrative hearing officer. In accordance with Section 1.22.140(b) of the RMC, unpaid administrative citation fines may be imposed as special assessments against the affected properties. The City is required to prepare a report detailing delinquent fines and related property information before liens are recorded.

Property owners identified in the report were provided with notice of the public hearing and informed of their right to submit written objections or appear before the City Council to contest the report. The City Council may consider any objections raised and may make corrections, revisions, or modifications to the report as deemed appropriate. If the Resolution is adopted, the City Clerk will be directed to file Notices of Lien with the San Bernardino County Auditor-Controller/Treasurer/Tax Collector for inclusion on the 2026-2027 property tax roll. Delinquent balances not paid by August 3, 2026, will be submitted to the County for collection through the tax roll process.

Staff will continue to accept payments through August 3, 2026, and any accounts brought current prior to submission will be removed from the final lien list. The County charges an administrative processing fee of $0.30 per parcel, which is passed on to the property owner. Recording a lien does not eliminate the requirement to correct the underlying violations. Properties that remain in violation may be subject to additional enforcement actions and future special assessments if further citations accrue.

ALTERNATIVES:

City Council may elect not to adopt Resolution No. 8808 and provide alternate direction to staff.

STRATEGIC PLAN:

This action supports the City Council’s Strategic Plan goals related to: Community Appearance and Neighborhood Integrity, Public Safety and Quality of Life, and Fiscal Responsibility and Organizational Effectiveness.

SUBMITTED BY:

Tabitha Crocker, Facilities & Community Services Director RECOMMENDED BY:

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

Janice McConnell, Assistant City Manager
James Garland, Interim Management Services/Finance Director PREPARED BY:

David De Los Reyes, Management Analyst

FISCAL IMPACT
Fiscal Year: FY 2026-27
Revenue Generating: Yes
Amount: $20,092.50
Budgeted Y/N: N
Account No.: 101306
Additional Appropriation Required: No
Discussion:

To date, 32 administrative citations have been issued to the property owners listed in the report with a total unpaid fine balance of $20,092.50 as of July 1, 2026. The cost of adding each special assessment to the tax roll is considered nominal at a cost of $0.30 per parcel, charged to the property owner.

Attachments
Resolution_8808_-_Delinquent_Administrative_Citationsbm06252026.pdf Letter_2026.pdf
Citation_Report_2026.pdf
1 I:\cmo\Resolutions\Resolution 8808 - Delinquent Administrative Citations.bm.06.25.2026.docx RESOLUTION NO. 8808

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

APPROVING A DELINQUENT ADMINISTRATIVE CITATION FINE

REPORT AND SUBMITTAL OF A NOTICE OF LIEN TO THE SAN

BERNARDINO COUNTY AUDITOR-CONTROLLER/TREASURER/TAX

COLLECTOR FOR PROCESSING
WHEREAS, the City of Redlands has issued administrative citations to the owners of various properties located within the City; and
WHEREAS, the property owners who received the administrative citations are identified in the City Manager’s report and have failed to pay the delinquent fines for such citations; and WHEREAS, Section 1.22.140 of the Redlands Municipal Code provides that “…fines levied by administrative citation, or by administrative hearing order, constitute a special assessment against each lot or parcel of land upon which the violation existed, and as thus made and confirmed shall also become the personal obligation of each lot or parcel of land;” and WHEREAS, pursuant to Section 1.22.140 of the Redlands Municipal Code, on June 16, 2026, a duly noticed public hearing was held at which the property owners were provided the opportunity to object or protest the proposed adoption of this resolution; and WHEREAS, the City Council of the City of Redlands, having considered the City Manager’s report regarding delinquent administrative citations, together with any objections and protests by the property owners of various locations, desires to declare the delinquent fines as special assessments and cause such fines to be recorded as a lien against the properties identified in the report;
NOW, THEREFORE, be it resolved by the City Council of the City of Redlands as follows:

Section 1. The City Council approves the delinquent administrative citation fines report submitted by the City Manager and confirms such delinquent fines to be entered as special assessments on the property tax roll against the properties identified in the report.

Section 2. The City Clerk of the City of Redlands, and the City’s Finance Director, are hereby authorized and directed to send a certified copy of this resolution and a Notice of Lien for the delinquent fines (as special assessments), and all other appropriate documentation to place the fines in the tax roll to the San Bernardino County Auditor-Controller/Treasurer/Tax Collector for the County of San Bernardino.
2 I:\cmo\Resolutions\Resolution 8808 - Delinquent Administrative Citations.bm.06.25.2026.docx ADOPTED, SIGNED AND APPROVED this 7th day of July, 2026.

Mario Saucedo, Mayor
ATTEST:

Jeanne Donaldson, City Clerk
3 I:\cmo\Resolutions\Resolution 8808 - Delinquent Administrative Citations.bm.06.25.2026.docx 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 7th day of July, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

Jeanne Donaldson, City Clerk
Date: May 21, 2026
Recipient Address
RE: APN XXXXXXXXXX
ADDRESS:

DELINQUENT BALANCE AS OF THIS NOTICE: $

Pursuant to Section 1.22.130 of the Redlands Municipal Code, you may present objections to the City Council at the hearing. Alternatively, you may submit your objections in writing at least five (5) days prior to the hearing date, no later than Thursday, July 2, 2026.

To prevent this impending lien action, payment of the outstanding balance in full must be received no later than 5:00 p.m. on Monday, August 3, 2026.

Please be informed that if the assessment is imposed on your property, the property may be sold by the tax collector after three (3) years for unpaid delinquent assessments. The tax collector’s power of sale shall not be affected by a property owner’s failure to receive notice. The assessment may be collected at the same time and in the same manner as ordinary municipal taxes and shall be subject to the same penalties and procedures, including sale in the event of delinquency, as provided for ordinary municipal taxes.

For questions regarding this matter, please contact Cathy Figueroa, Administrative Assistant II at (909) 307-7339.

City of Redlands
Facilities & Community Services Department
Code Enforcement Division
Office & Mail: 35 Cajon St Suite 222, 2nd Floor
Redlands, CA 92373
Phone: 909-335-4737
Web address: www.Redlands.gov

CITY OF REDLANDS

ADMINISTRATIVE CITATIONS
FY: _____________

MISCELLANEOUS
Updated as of : 5/20/2026

APN NUMBER N/S/E/W STREET CITY ZIP NUMBER STREET CITY STATE ZIP

CITATION
DATE DUE DATE CITATION# CASE#

CURRENT
FINE
AMOUNT

DELINQUENT
FINE
AMOUNT
25% LATE

PAYMENT
CHARGE
No. of months
Deliquent
No. of months
subject to
interest

INTEREST
(10% PER

MONTH) TOTAL DUE NOTES
1212301480000 1309 Jean Ave Redlands 92374 P.O. Box 2183 Rialto CA 92377 07/31/25 08/18/25 A25-018205 V25-000097 $ 100.00 $ 25.00 9.04 9 $ 90.00 $ 215.00 Animal Services 1212271510000 1104 E Pennsylvania Ave Redlands 92374 13059 Turquoise Ave Scottsdale AZ 85259 08/06/25 08/26/25 24-0641-1 24-0641 $ 300.00 $ 75.00 8.78 8 $ 240.00 $ 615.00 0300215770000 31473 Alta Vista Dr Redlands 92373 31473 Alta Vista Dr Redlands CA 92373 12/16/25 01/05/26 22-0648-01 22-0648 $400 $ - 4.44 4 $ - $ 400.00 0292163030000 11030 Nevada St Redlands 92373 11030 Nevada St Redlands CA 92373 08/30/25 09/19/25 V25-000099 A25-018200 $ 250.00 $ 62.50 7.99 7 $ 175.00 $ 487.50 Animal Services 0176392060000 458 Marilyn Ln Redlands 92373 P.O. Box 12084 San Bernardino CA 92423 07/11/25 07/26/25 24-0681-03 24-0681 $ 1,500.00 $ 375.00 9.80 9 $ 1,350.00 $ 3,225.00 0176392060000 458 Marilyn Ln Redlands 92373 P.O. Box 12084 San Bernardino CA 92423 10/06/25 10/26/25 24-0681-04 24-0681 $3,200.00 $ - 6.77 6 $ - $ 3,200.00 0174231190000 1550 Marion Rd Redlands 92374 1309 Coffeen Ave Sheridan WY 14906 04/03/26 04/23/26 23-1100-01 23-1100 $100 $ - 0.89 - $ - $ 100.00 0174034170000 259 E Crescent Ave Redlands 92373 261 Crescent Ave Redlands CA 92373 03/02/26 03/22/26 25-0870-01 25-0870 $300 $ - 1.94 1 $ - $ 300.00 0174034170000 259 E Crescent Ave Redlands 92373 261 Crescent Ave Redlands CA 92373 03/20/26 03/09/26 25-0870-02 25-0870 $700 $ - 2.37 2 $ - $ 700.00 0174034170000 259 E Crescent Ave Redlands 92373 261 Crescent Ave Redlands CA 92373 04/16/26 05/06/26 25-0870-03 25-0870 $1,700 $ - 0.46 - $ - $ 1,700.00 017403120000 117 E Crescent Ave Redlands 92373 117 Crescent Ave Redlands CA 92373 05/06/26 05/21/26 26-0282-01 26-0282 $ 100.00 $ - (0.03) (1) $ - $ 100.00 0172274060000 421 Norwood St Redlands 92373 421 Norwood St Redlands CA 92373 07/17/25 07/31/25 24-0757-01 24-0757 $ 300.00 $ 75.00 9.63 9 $ 270.00 $ 645.00 0170132260000 838 E High Ave Redlands 92374 11669 Anderson St Loma Linda CA 92354 05/06/26 05/21/26 22-0355-01 22-0355 $ 400.00 $ - (0.03) (1) $ - $ 400.00 0170021020000 902 E Brockton Ave Redlands 92374 902 Brockton Redlands CA 92374 02/09/26 03/01/26 25-0729-02 25-0729 $800 $ - 2.63 2 $ - $ 800.00 0169022080000 802 W Colton Redlands 92374 418 Silvertree Ln Redlands CA 92374 04/02/26 04/22/26 22-0080-03 22-0080 $200 $ - 0.92 - $ - $ 200.00 0168521210000 1235 N Lincoln St Redlands 92374 1431 Wicklow Ave Redlands CA 92374 08/06/25 08/25/25 25-0353-02 25-0353 $ 500.00 $ 125.00 8.81 8 $ 400.00 $ 1,025.00 0168521210000 1235 N Lincoln St Redlands 92374 1431 Wicklow Ave Redlands CA 92374 09/09/25 09/23/25 25-0353-03 25-0353 $ 1,200.00 $ - 7.86 7 $ - $ 1,200.00 0168432060000 1514 Clock Ave Redlands 92374 1534 Orilla Ct Redlands CA 92374 07/24/25 08/06/25 25-0246-01 25-0246 $ 200.00 $ 50.00 9.44 9 $ 180.00 $ 430.00 0168071850000 1640 Amie CT Redlands 92374 1640 Amie CT Redlands CA 92374 05/18/26 06/07/26 25-0830-001 25-0830 $ 100.00 $ - (0.59) (1) $ - $ 100.00 0167791010000 1402 Karon St Redlands 92374 PO BOX 9896 Redlands CA 92375 04/15/26 05/05/26 25-0312-01 25-0312 $400 $ - 0.49 - $ - $ 400.00 0167641050000 1898 Marigold Ave Redlands 92374 1800 Wazee St STE 500 Denver CO 80202 08/06/25 08/26/25 24-0899-02 24-0899 $ 100.00 $ 25.00 8.78 8 $ 80.00 $ 205.00 0167641050000 1898 Marigold Ave Redlands 92374 500 Chesterfield PKWY Malvern PA 19355 08/06/25 08/26/25 24-0899-02 24-0899 $ - 8.78 8 $ - $ - 0167641050000 1898 Marigold Ave Redlands 92374 3546 Concours St Suite 100 Ontario CA 91764 08/06/25 08/26/25 24-0899-02 24-0899 $ - 8.78 8 $ - $ - 0167313050000 103 Hartzell Ave Redlands 92374 103 Hartzell Ave Redlands CA 92374 08/19/25 09/08/25 V25-000098 A25-18293 $ 100.00 $ 25.00 8.35 8 $ 80.00 $ 205.00 Animal Services 0167313050000 103 Hartzell Ave Redlands 92374 103 Hartzell Ave Redlands CA 92374 02/04/26 02/24/26 V26-000102 A26-018879 $300.00 $ 75.00 2.79 2 $ 60.00 $ 435.00 Animal Services 0167313050000 103 Hartzell Ave Redlands 92374 103 Hartzell Ave Redlands CA 92374 02/25/26 03/17/26 V26-000103 A26-018879 $400 $ 100.00 2.10 2 $ 80.00 $ 580.00 Animal Services 0167313050000 103 Hartzell Ave Redlands 92374 103 Hartzell Ave Redlands CA 92374 03/11/26 03/31/26 V26-000104 A26-018879 $500 $ 125.00 1.64 1 $ 50.00 $ 675.00 Animal Services 0167292140000 Sun Ave and Columbia Redlands 92374 1149 Clay St Redlands CA 92374 04/25/26 05/15/26 V26-000105 A26-019381 $600 $ 150.00 0.16 - $ - $ 750.00 Animal Services 0167271510000 521 E Brockton Ave Redlands 92374 1520 San Jacinto Ave San Jacinto CA 92583 10/02/25 10/16/25 25-0841-01 25-0841 $ 100.00 $ - 7.10 7 $ - $ 100.00 0167271510000 521 E Brockton Ave Redlands 92374 1520 San Jacinto Ave San Jacinto CA 92583 10/21/25 11/03/25 25-0841-02 25-0841 $ 200.00 $ - 6.51 6 $ - $ 200.00 0167181180000 1429 Calhoun St Redlands 92374 1429 Calhoun St Redlands CA 92374 04/08/26 04/28/26 22-0349-04 22-0349 $200 $ - 0.72 - $ - $ 200.00 0167362100000 225 Doyle Ave Redlands 92374 225 Doyle Ave Redlands CA 92374 5/7/2026 05/27/26 V26-000106 A26-019433 $400 $ 100.00 (0.23) (1) $ - $ 500.00 Animal Services TOTAL $ 20,092.50

VIOLATION ADDRESS ADDRESS
https://redlandsca.sharepoint.com/sites/AgendaLink/Shared Documents/2026 07.07 Council Meeting/7302 Delinquent Administrative Citation Fine Report/Citation Report 2026.xlsx\INITIAL LIST 1 of 1 City Council AGENDA ITEM NO. J6.

DATE: July 7, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Public Hearing to Receive Protests and Introduce Ordinance No. 3003 and Ordinance No. 3004 Amending Chapters 3.52 and 3.62 of the Redlands Municipal Code relating to Water Utility and Wastewater Utility Rate Adjustments (Municipal Utilities and Engineering Director Heredia) PROCEDURE FOR PUBLIC HEARING:

1. Mayor declares the meeting open as a public hearing.

2. Mayor calls upon Department Director for report.

3. Mayor calls for questions/comments from members of the City Council.

4. Mayor calls for comments/questions/testimony from members of the public (3 minutes per speaker)

5. Mayor calls upon City Clerk to note any written comments received.

6. Mayor closes the public hearing.

7. City Council considers the motion and votes.

MOTION:

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

I move to introduce Ordinance No. 3003 and Ordinance No. 3004.

RECOMMENDATION:

Staff recommends that City Council introduce Ordinance No. 3003 and Ordinance No. 3004 to amend Redlands Municipal Code Chapters 3.52 and 3.62 relating to water utility and wastewater utility rate adjustments.

DISCUSSION:

Chapter 2.70 of the Redlands Municipal Code establishes a framework for a citizen committee, the Utility Advisory Committee (UAC), to help develop fair and equitable rates to cover costs of services for the City's water and wastewater utilities. The seven (7)-member UAC was appointed by City Council on January 20, 2026, and worked with Municipal Utilities and Engineering Department (MUED) staff and the City's Utility Rate Consultant, Raftelis, to develop rate recommendations that provide adequate revenue to recover costs for services, are equitable to all customer classes, comply with state and federal laws, and are easily explained to customers. The UAC serves in an advisory capacity to the City Council.

The rate recommendation process began by introducing the UAC to MUED's financial structure, water and wastewater utilities operations, and the associated 6-year Capital Improvement Program (CIP). The UAC reviewed historic and projected operating, maintenance, and CIP costs necessary to provide high-quality services for Redlands' utility customers. Raftelis presented a financial analysis including multi-year revenue projections, target reserve balances, and annual labor and material cost escalations. Several rate scenarios were modeled and considered by the UAC, who ultimately recommended the following rate adjustments:

Potable Water Utility:

2.5% increase effective January 1, 2027, in FY 26/27

2.5% increase effective July 1, 2027, in FY 27/28

2.5% increase effective July 1, 2028, in FY 28/29
Non-Potable Water Utility:
0% increase effective January 1, 2027, in FY 26/27
0% increase effective July 1, 2027, in FY 27/28
0% increase effective July 1, 2028, in FY 28/29
Wastewater Utility:
7% increase effective January 1, 2027, in FY 26/27
7% increase effective July 1, 2027, in FY 27/28
7% increase effective July 1, 2028, in FY 28/29
These increases will be applied to customer classifications proportionally based on the demands placed on each utility, and will generate the additional revenue necessary to continue providing water and wastewater utility services for all Redlands customers.

On April 21, 2026, City Council adopted Resolution No. 8778, a notice of intent to increase water utility and wastewater utility rates, and directed staff to issue a Public Hearing Proposition 218 notice and protest procedures detailed in Resolution No. 7128. The Proposition 218 notice and Resolution No. 7128 were mailed to each Redlands property owner and each water utility and wastewater utility customer on April 30, 2026. The notice provides rate increase protest directions. One (1) written protest per identified parcel or property will be counted when determining whether a majority protest exists.

If City Council introduces Ordinance No. 3003 and Ordinance No. 3004 as proposed, the ordinances will be presented for adoption at a subsequent meeting. The new rates will be implemented no sooner than thirty (30) days after adoption of the ordinances. Staff proposes that the implementation date for these rates will be January 1, 2027. If City Council directs staff to revise either Ordinance, a new Proposition 218 notice must be sent to property owners and customers, and a new public hearing date must be scheduled no sooner than forty-five (45) days after the notices are sent.

The proposed Ordinance No. 3003 and Ordinance No. 3004 are 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 direction. If City Council recommends an alternative rate structure, a new Proposition 218 notice must be sent to property owners and customers, and a new public hearing date must be scheduled no sooner than forty-five (45) days after the notices are sent.

SUBMITTED BY:

Monica Heredia, Municipal Utilities and Engineering Director RECOMMENDED BY:

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

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
James Garland, Interim Management Services/Finance Director PREPARED BY:

Goutam Dobey, City Engineer

FISCAL IMPACT
Fiscal Year: FY 26/27
Revenue Generating: Yes
Amount: N/A
Budgeted Y/N:

Account No.:

Additional Appropriation Required: No
Discussion:

Adoption of the recommended water utility and wastewater utility rates will generate revenues necessary to offset operating, maintenance, and capital improvement costs for each utility.

Attachments
A_Ordinance_No_3003_Amending_Chapter_352_-_Clean.pdf
A_Ordinance_No_3003_Amending_Chapter_352_-_Legislative.pdf B_Ordinance_No_3004_Amending_Chapter_362_-_Clean.pdf
B_Ordinance_No_3004_Amending_Chapter_362_-_Legislative.pdf C_Prop_218_Notice.pdf
D_Redlands_Rate_Study_Final.pdf
E_Resolution_No_7128_Procedure_Prop_218_Protests.pdf
F_Resolution_No_8778_Intention_to_Adjust_Water_and_Wastewater_Rates.pdf 1 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Clean.docx ORDINANCE NO. 3003
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER 3.52

OF THE REDLANDS MUNICIPAL CODE RELATING TO WATER FUND
Section 1. Chapter 3.52 of the Redlands Municipal Code, titled “Water Fund,” is hereby amended to read as follows:
“CHAPTER 3.52

WATER FUND
SECTION:

3.52.010: Establishment

3.52.040: Water Service Rate Schedule

3.52.010: ESTABLISHMENT:

There is established a water fund to provide for administration, operation and maintenance of the Redlands domestic water system and its capacity to serve its existing users. The following rules shall apply:

A. All service charges and all miscellaneous charges not otherwise designated shall be credited to the water fund. The water fund shall be operated as an enterprise fund. All interest on the cash balance of the fund shall accrue to the water fund.

B. Established within the water fund are a reserve for capital and a reserve for legal.

1. The reserve for capital shall be in addition to the annual capital replacement budget, to establish a fund for capital expenditures necessary due to unforeseen or unusual capital costs in any year, necessary to maintain the existing system and its capacity.

2. The reserve for legal shall be in addition to the annual budget for legal costs, to establish a fund for legal expenditures due to unforeseen or unusual legal costs in any one year.

3.62.040: WATER SERVICE RATE SCHEDULE:

Amounts of charges are set out in table 3.52.040 of this section.

TABLE 3.52.040

WATER SERVICE RATE SCHEDULE

BIMONTHLY RATES
A. Potable water rates effective January 1, 2027:

1. Water Usage Charge:
a. Building water use:

Tiers Units1 Rate
Tier 1 1 to 16 hcf $1.59
2 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Clean.docx Tier 2 17 to 27 hcf $1.95
Tier 3 > 27 hcf $3.00
Note: 1 unit equals 100 cubic feet (hcf).
b. Nonbuilding water use:

Tiers Units1 Rate
Tier 1 1 to 27 hcf $1.87
Tier 2 > 27 hcf $2.66
Note: 1 unit equals 100 cubic feet (hcf)

2. Bimonthly Water Service Charge:

Meter Size (inches) Total Water Service Charge1
5/8 $34.09
¾ $45.54
1 $67.76
1 ½ $121.64
2 $179.56
3 $310.22
4 $478.60
6 $882.70
8 $1,300.27
10 $3,078.32
12 $4,048.16

3. Fire Protection Water Service Charge:

Meter Size (inches) Total Fire Protection Water Service Charge (Bimonthly)
2 $12.05
3 $21.39
4 $37.51
6 $95.34
8 $195.09
10 $345.14
12 $553.09

4. Fire Hydrant Construction Water Service:

Water Usage Charge $2.93/100 cubic feet
3 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Clean.docx Monthly water service charge1 $313.62
Fire hydrant construction meter prepayment1,2 $1,200.00 Notes: 1. Minimum water service charge (if less than 30 days) will be $313.62. Repairs to damaged fire hydrant construction meters shall be charged at prevailing time and material rates to repair the meter.

2. Lost or stolen fire hydrant construction meters shall be charged a $1,200.00 replacement charge.

5. Water Meter Installation Charge:

Meter Size (inches) Installation Charge
¾ $175.00
1 $225.00
1 ½ $430.00
2 $595.00

6. Outside City Service Review:
$50.00/unit, $500.00 maximum

7. Miscellaneous Fees:

1. Water Usage Charge:
a. Building water use:

Tiers Units1 Rate
Tier 1 1 to 16 hcf $1.63
Tier 2 17 to 27 hcf $2.00
Tier 3 > 27 hcf $3.08
Note: 1 unit equals 100 cubic feet (hcf).
b. Nonbuilding water use:

Tiers Units1 Rate
Tier 1 1 to 27 hcf $1.92
Tier 2 > 27 hcf $2.73
Note: 1 unit equals 100 cubic feet (hcf)

2. Bimonthly Water Service Charge:

Meter Size (inches) Total Water Service Charge1
5/8 $34.95
¾ $46.68
1 $69.46
1 ½ $124.69
2 $184.05
3 $317.98
4 $490.57
6 $904.77
8 $1,332.78
10 $3,155.28
12 $4,149.37
5 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Clean.docx

3. Fire Protection Water Service Charge:

Meter Size (inches) Total Fire Protection Water Service Charge (Bimonthly)
2 $12.36
3 $21.93
4 $38.45
6 $97.73
8 $199.97
10 $353.77
12 $566.92

4. Fire Hydrant Construction Water Service:

Water Usage Charge $3.01/100 cubic feet
Monthly water service charge1 $321.47
Fire hydrant construction meter prepayment1,2 $1,200.00 Notes: 1. Minimum water service charge (if less than 30 days) will be $321.49. Repairs to damaged fire hydrant construction meters shall be charged at prevailing time and material rates to repair the meter.

2. Lost or stolen fire hydrant construction meters shall be charged a $1,200.00 replacement charge.

5. Water Meter Installation Charge:

Meter Size (inches) Installation Charge
¾ $175.00
1 $225.00
1 ½ $430.00
2 $595.00

6. Outside City Service Review:
$50.00/unit, $500.00 maximum

7. Miscellaneous Fees:

After hours request for turn on service
(standby call)
$60.00
Broken angle meter stop $75.00
Broken lock $15.00
Remove meter after illegal turn on $50.00
Remove straight connection $75.00
6 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Clean.docx Cut service at main Time and Materials
Water meter test charge $40.00, plus cost of new meter
Turn off for nonpayment $46.00
Recheck after turn off for nonpayment $20.00
Returned check $35.00
Check by phone $6.00
Establish new municipal services account $15.00
Failure to notify change of ownership $35.00
Request for same day water turn on after 3:00
P.M.
$26.00
Obstructed meter resulting in an estimated
read or reread trip
$15.00
Jumper fee (for use on buildings under
construction – prelandscape)
$50.00
Submittal to collection agency 40% of outstanding balance submitted for collection action
Unauthorized fire protection water usage $40.00, plus full nonfire protection meter service charge and any applicable wastewater
charge at the prevailing rate
Unauthorized fire hydrant connection $150.00, plus estimated water usage charge at the prevailing usage rate
C. Potable water rates effective July 1, 2028:

1. Water Usage Charge:
a. Building water use:

Tiers Units1 Rate
Tier 1 1 to 16 hcf $1.68
Tier 2 17 to 27 hcf $2.05
Tier 3 > 27 hcf $3.16
Note: 1 unit equals 100 cubic feet (hcf).
b. Nonbuilding water use:

Tiers Units1 Rate
Tier 1 1 to 27 hcf $1.97
Tier 2 > 27 hcf $2.80
Note: 1 unit equals 100 cubic feet (hcf)

2. Bimonthly Water Service Charge:
7 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Clean.docx Meter Size (inches) Total Water Service Charge1
5/8 $35.83
¾ $47.85
1 $71.20
1 ½ $127.81
2 $188.66
3 $325.93
4 $502.84
6 $927.39
8 $1,366.10
10 $3,234.17
12 $4,253.11
Note: Prior agriculture irrigation customers are charged the customer service component of the water service charge only.

3. Fire Protection Water Service Charge:

Meter Size (inches) Total Fire Protection Water Service Charge (Bimonthly)
2 $12.67
3 $22.48
4 $39.42
6 $100.18
8 $204.97
10 $362.62
12 $581.10

4. Fire Hydrant Construction Water Service:

Water Usage Charge $3.09/100 cubic feet
Monthly water service charge1 $329.51
Fire hydrant construction meter prepayment1,2 $1,200.00 Notes: 1. Minimum water service charge (if less than 30 days) will be $329.51. Repairs to damaged fire hydrant construction meters shall be charged at prevailing time and material rates to repair the meter.

2. Lost or stolen fire hydrant construction meters shall be charged a $1,200.00 replacement charge.

5. Water Meter Installation Charge:

Meter Size (inches) Installation Charge
8 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Clean.docx ¾ $175.00
1 $225.00
1 ½ $430.00
2 $595.00

6. Outside City Service Review:
$50.00/unit, $500.00 maximum

7. Miscellaneous Fees:

After hours request for turn on service
(standby call)
$60.00
Broken angle meter stop $75.00
Broken lock $15.00
Remove meter after illegal turn on $50.00
Remove straight connection $75.00
Cut service at main Time and Materials
Water meter test charge $40.00, plus cost of new meter
Turn off for nonpayment $46.00
Recheck after turn off for nonpayment $20.00
Returned check $35.00
Check by phone $6.00
Establish new municipal services account $15.00
Failure to notify change of ownership $35.00
Request for same day water turn on after 3:00
P.M.
$26.00
Obstructed meter resulting in an estimated
read or reread trip
$15.00
Jumper fee (for use on buildings under
construction – prelandscape)
$50.00
Submittal to collection agency 40% of outstanding balance submitted for collection action
Unauthorized fire protection water usage $40.00, plus full nonfire protection meter service charge and any applicable wastewater
charge at the prevailing rate
Unauthorized fire hydrant connection $150.00, plus estimated water usage charge at the prevailing usage rate
9 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Clean.docx Section 2. 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 other provisions or 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 3. Ordinance No. 2964 is rescinded effective January 1, 2027.

Section 4. 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.
__________________________
Mario Saucedo, Mayor
ATTEST:
__________________________
Jeanne Donaldson, City Clerk
10 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Clean.docx I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the 7th day of July, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Jeanne Donaldson, City Clerk
1 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Legislative.docx ORDINANCE NO. 3003
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER 3.52

OF THE REDLANDS MUNICIPAL CODE RELATING TO WATER FUND
Section 1. Chapter 3.52 of the Redlands Municipal Code, titled “Water Fund,” is hereby amended to read as follows:
“CHAPTER 3.52

WATER FUND
SECTION:

3.52.010: Establishment

3.52.040: Water Service Rate Schedule

3.52.010: ESTABLISHMENT:

B. Established within the water fund are a reserve for capital and a reserve for legal.

2. The reserve for legal shall be in addition to the annual budget for legal costs, to establish a fund for legal expenditures due to unforeseen or unusual legal costs in any one year.

3.62.040: WATER SERVICE RATE SCHEDULE:

Amounts of charges are set out in table 3.52.040 of this section.

TABLE 3.52.040

WATER SERVICE RATE SCHEDULE

BIMONTHLY RATES
A. Potable water rates effective January 1, 2027August 5, 2024:

1. Water Usage Charge:
a. Building water use:

Tiers Units1 Rate
Tier 1 1 to 16 hcf $1.5957
2 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Legislative.docx Tier 2 17 to 27 hcf $1.9586
Tier 3 > 27 hcf $3.002.79
Note: 1 unit equals 100 cubic feet (hcf).
b. Nonbuilding water use:

Tiers Units1 Rate
Tier 1 1 to 27 hcf $1.8777
Tier 2 > 27 hcf $2.6649
Note: 1 unit equals 100 cubic feet (hcf)

2. Bimonthly Water Service Charge:

Meter Size
(inches)
Total Water Service Charge1 Customer Service
Component1
5/8 $34.0932.94 $6.85
¾ $45.5444.01 $6.85
1 $67.7665.50 $6.85
1 ½ $121.64117.60 $6.85
2 $179.56173.62 $6.85
3 $310.22299.97 $6.85
4 $478.60462.79 $6.85
6 $882.70853.56 $6.85
8 $1,300.27257.36 $6.85
10 $3,078.322,976.76 $6.85
12 $4,048.163,914.61 $6.85
Note: Prior agriculture irrigation customers are charged the customer service component of the water service charge only.

3. Fire Protection Water Service Charge:

Meter Size (inches) Total Fire Protection Water Service Charge (Bimonthly)
2 $12.0511.81
3 $21.3921.20
4 $37.5137.39
6 $95.3495.48
8 $195.09195.69
10 $345.14346.42
12 $553.09555.33
3 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Legislative.docx

4. Fire Hydrant Construction Water Service:

Water Usage Charge $2.9379/100 cubic feet
Monthly water service charge1$313.62299.97
Fire hydrant construction meter prepayment1,2 $1,200.00 Notes: 1. Minimum water service charge (if less than 30 days) will be $313.62299.97. Repairs to damaged fire hydrant construction meters shall be charged at prevailing time and material rates to repair the meter.

2. Lost or stolen fire hydrant construction meters shall be charged a $1,200.00 replacement charge.

5. Water Meter Installation Charge:

Meter Size (inches) Installation Charge
¾ $175.00
1 $225.00
1 ½ $430.00
2 $595.00

6. Outside City Service Review:
$50.00/unit, $500.00 maximum

7. Miscellaneous Fees:

1. Water Usage Charge:
a. Building water use:

Tiers Units1 Rate
Tier 1 1 to 16 hcf $1.631.61
Tier 2 17 to 27 hcf $2.001.90
Tier 3 > 27 hcf $3.082.85
Note: 1 unit equals 100 cubic feet (hcf).
b. Nonbuilding water use:

Tiers Units1 Rate
Tier 1 1 to 27 hcf $1.921.81
Tier 2 > 27 hcf $2.732.54
Note: 1 unit equals 100 cubic feet (hcf)

2. Bimonthly Water Service Charge:

Meter Size (inches) Total Water Service Charge1 Customer Service Component1
5/8 $34.9533.60 $6.99
¾ $46.6844.90 $6.99
1 $69.4666.81 $6.99
1 ½ $124.69119.96 $6.99
2 $184.05177.10 $6.99
3 $317.98305.97 $6.99
4 $490.57472.05 $6.99
5 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Legislative.docx 6 $904.77870.64 $6.99
8 $1,332.78282.51 $6.99
10 $3,155.28036.30 $6.99
12 $4,149.373,992.91 $6.99
Note: Prior agriculture irrigation customers are charged the customer service component of the water service charge only.

3. Fire Protection Water Service Charge:

Meter Size (inches) Total Fire Protection Water Service Charge (Bimonthly)
2 $12.3612.05
3 $21.9321.63
4 $38.4538.14
6 $97.7397.39
8 $199.97199.61
10 $353.77353.35
12 $566.92566.44

4. Fire Hydrant Construction Water Service:

Water Usage Charge $3.012.85/100 cubic feet
Monthly water service charge1$321.47305.97
Fire hydrant construction meter prepayment1,2 $1,200.00 Notes: 1. Minimum water service charge (if less than 30 days) will be $321.49305.97. Repairs to damaged fire hydrant construction meters shall be charged at prevailing time and material rates to repair the meter.

2. Lost or stolen fire hydrant construction meters shall be charged a $1,200.00 replacement charge.

5. Water Meter Installation Charge:

Meter Size (inches) Installation Charge
¾ $175.00
1 $225.00
1 ½ $430.00
2 $595.00

6. Outside City Service Review:
$50.00/unit, $500.00 maximum

7. Miscellaneous Fees:
6 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Legislative.docx After hours request for turn on service
(standby call)
$60.00
Broken angle meter stop $75.00
Broken lock $15.00
Remove meter after illegal turn on $50.00
Remove straight connection $75.00
Cut service at main Time and Materials
Water meter test charge $40.00, plus cost of new meter
Turn off for nonpayment $46.00
Recheck after turn off for nonpayment $20.00
Returned check $35.00
Check by phone $6.00
Establish new municipal services account $15.00
Failure to notify change of ownership $35.00
Request for same day water turn on after 3:00
P.M.
$26.00
Obstructed meter resulting in an estimated
read or reread trip
$15.00
Jumper fee (for use on buildings under
construction – [prelandscape])
$50.00
Submittal to collection agency 40% of outstanding balance submitted for collection action
Unauthorized fire protection water usage $40.00, plus full nonfire protection meter service charge and any applicable wastewater
charge at the prevailing rate
Unauthorized fire hydrant connection $150.00, plus estimated water usage charge at the prevailing usage rate
C. Potable water rates effective July 1, 2028:

1. Water Usage Charge:
a. Building water use:

Tiers Units1 Rate
Tier 1 1 to 16 hcf $1.68
Tier 2 17 to 27 hcf $2.05
Tier 3 > 27 hcf $3.16
Note: 1 unit equals 100 cubic feet (hcf).
b. Nonbuilding water use:
7 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Legislative.docx Tiers Units1 Rate
Tier 1 1 to 27 hcf $1.97
Tier 2 > 27 hcf $2.80
Note: 1 unit equals 100 cubic feet (hcf)

2. Bimonthly Water Service Charge:

Meter Size (inches) Total Water Service Charge
5/8 $35.83
¾ $47.85
1 $71.20
1 ½ $127.81
2 $188.66
3 $325.93
4 $502.84
6 $927.39
8 $1,366.10
10 $3,234.17
12 $4,253.11

3. Fire Protection Water Service Charge:

Meter Size (inches) Total Fire Protection Water Service Charge (Bimonthly)
2 $12.67
3 $22.48
4 $39.42
6 $100.18
8 $204.97
10 $362.62
12 $581.10

4. Fire Hydrant Construction Water Service:

Water Usage Charge $3.09/100 cubic feet
Monthly water service charge1$329.51
Fire hydrant construction meter prepayment1,2 $1,200.00 Notes: 1. Minimum water service charge (if less than 30 days) will be $329.51. Repairs to damaged fire hydrant construction meters shall be charged at prevailing time and material rates to repair the meter.
8 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Legislative.docx

2. Lost or stolen fire hydrant construction meters shall be charged a $1,200.00 replacement charge.

5. Water Meter Installation Charge:

Meter Size (inches) Installation Charge
¾ $175.00
1 $225.00
1 ½ $430.00
2 $595.00

6. Outside City Service Review:
$50.00/unit, $500.00 maximum

7. Miscellaneous Fees:

After hours request for turn on service
(standby call)
$60.00
Broken angle meter stop $75.00
Broken lock $15.00
Remove meter after illegal turn on $50.00
Remove straight connection $75.00
Cut service at main Time and Materials
Water meter test charge $40.00, plus cost of new meter
Turn off for nonpayment $46.00
Recheck after turn off for nonpayment $20.00
Returned check $35.00
Check by phone $6.00
Establish new municipal services account $15.00
Failure to notify change of ownership $35.00
Request for same day water turn on after 3:00
P.M.
$26.00
Obstructed meter resulting in an estimated
read or reread trip
$15.00
Jumper fee (for use on buildings under
construction – prelandscape)
$50.00
Submittal to collection agency 40% of outstanding balance submitted for collection action
Unauthorized fire protection water usage $40.00, plus full nonfire protection meter service charge and any applicable wastewater
charge at the prevailing rate
9 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Legislative.docx Unauthorized fire hydrant connection $150.00, plus estimated water usage charge at the prevailing usage rate
Section 2. 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 other provisions or 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 3. Ordinance No. 2964 is rescinded effective January 1, 2027.

Section 4. 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.
__________________________
Mario Saucedo, Mayor
ATTEST:
__________________________
Jeanne Donaldson, City Clerk
10 I:\cmo\Ordinances\A. Ordinance No. 3003 Amending Chapter 3.52 - Legislative.docx I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the 7 th day of July,
2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Jeanne Donaldson, City Clerk
1 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Clean.docx ORDINANCE NO. 3004
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER 3.62

OF THE REDLANDS MUNICIPAL CODE RELATING TO SEWER SERVICE FUND
Section 1. Chapter 3.62 of the Redlands Municipal Code, titled “Sewer Service Fund,” is hereby amended to read as follows:
“CHAPTER 3.62

SEWER SERVICE FUND
SECTION:

3.62.010: Establishment

3.62.020: Definitions

3.62.030: Charges

3.62.040: Amount of Charges

3.62.010: ESTABLISHMENT:

There is established the sewer service fund to provide for administration, operation and maintenance of the Redlands domestic sewerage system and its capacity to serve its existing users.

All interest on the cash balance of the fund shall accrue to the sewer service fund. The following rules shall apply:

A. All service charges and all miscellaneous charges not otherwise designated shall be credited to the sewer service fund.

B. Established within the sewer service fund is a reserve for capital. The reserve for capital shall be in addition to annual capital replacement budget, to establish a fund for capital expenditures necessary due to unforeseen or unusual capital costs in any year, necessary to maintain the existing system and its capacity.

3.62.020: DEFINITIONS:

For the purpose of carrying out the intent of this chapter, the following definitions shall apply:

MULTIPLE-FAMILY DWELLING UNIT: A structure designed and used for occupancy of two (2) or more families, but does not include motels, hotels, or rest homes, nursing homes, with common cooking facilities.

PREMISES: A lot, parcel of land, building or establishment.

SEWER CONNECTION OR CONNECTION: Physically tapping into sewer mains or their laterals for the purpose of serving a private sewer line or building sewer from a property or premises.
2 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Clean.docx SEWER RATES: The sewer rates, rate structures and rate classes to be established by the city council to be used as a basis for charging users for service from the sewerage system.

SEWER SERVICE CHARGE: Service charges for the use of the sewerage system based on sewer rates.

SEWERAGE SYSTEM: Those pipelines and appurtenances maintained and operated by the city for the collection and conveyance of sewage to the plant owned and operated by the city, wastewater treatment, and treatment and discharge of such wastewater to required standards.

SINGLE-FAMILY DWELLING UNIT: A structure or portion thereof used exclusively for the occupancy of one family.

3.62.030: CHARGES:

The wastewater service charges for the following categories shall be paid for wastewater service.

Every person whose premises in the city is served by a connection with the wastewater system of the city, whereby the sewage or industrial wastes, or either or both, are disposed of by the city, either through the facilities of the wastewater treatment and sewage disposal works owned by the city, or otherwise, shall pay a sewer service charge which shall be as specified in section 3.62.040 of this chapter.

A. Residential Rates: For all residential dwelling units, including single-family and multiplefamily dwelling units, there shall be a bimonthly charge.

B. Nonresidential Rates: For all nonresidential users there shall be a bimonthly charge based upon the strength of the wastewater discharged for each one hundred (100) cubic feet or fraction thereof. Wastewater strength data is adapted from state water resources control board's "Revenue Program Guidelines for Wastewater Agencies".

1. Large volume users are classified as users with greater than twenty-five thousand (25,000) gallons per day discharge.

2. A minimum bimonthly charge equivalent to the multiple-family dwelling unit rate shall apply to any nonresidential user whose wastewater discharge per one hundred (100) cubic feet or fraction thereof results in a total charge less than the equivalent of the multiple-family dwelling unit rate.

C. School Rates: Each school shall pay a bimonthly charge for each one hundred (100) average daily attendance or part thereof.

3.62.040: AMOUNT OF CHARGES:

Amounts of bimonthly charges are as follows:

Wastewater rates effective January 1, 2027:
3 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Clean.docx City Customers
A. Residential:

Single-family dwelling unit $78.15
Multiple-family dwelling unit $62.01
B. Nonresidential:

Low strength I $3.31/100 cubic feet
Low strength II $3.93/100 cubic feet
Low strength III $4.56/100 cubic feet
Medium strength I $5.18/100 cubic feet
Medium strength II $5.81/100 cubic feet
Medium strength III $6.43/100 cubic feet
High strength I $7.06/100 cubic feet
High strength II $7.69/100 cubic feet

1. Large volume user:
>25,000 gallons per day $4.56/100 cubic feet

2. Nonresidential minimum charge:

All strengths $62.01
C. Schools:

Elementary $165.62/100 ADA1
Secondary and high school $276.04/100 ADA1
D. Septage:

Tank dumping $0.11/gallon
$15.00 minimum
Note:
1 ADA: Average Daily Attendance
Wastewater rates effective July 1, 2027:

City Customers
A. Residential:

Single-family dwelling unit $83.63
Multiple-family dwelling unit $66.36
B. Nonresidential:

Low strength I $3.55/100 cubic feet
Low strength II $4.21/100 cubic feet
Low strength III $4.88/100 cubic feet
Medium strength I $5.55/100 cubic feet
Medium strength II $6.22/100 cubic feet
Medium strength III $6.89/100 cubic feet
High strength I $7.56/100 cubic feet
4 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Clean.docx High strength II $8.23/100 cubic feet

1. Large volume user:
>25,000 gallons per day $4.88/100 cubic feet

2. Nonresidential minimum charge:

All strengths $66.36
C. Schools:

Elementary $177.22/100 ADA1
Secondary and high school $295.37/100 ADA1
D. Septage:

Tank dumping $0.12/gallon
$16.50 minimum
Note:
1 ADA: Average Daily Attendance
Wastewater rates effective July 1, 2028:

City Customers
A. Residential:

Single-family dwelling unit $89.49
Multiple-family dwelling unit $71.01
B. Nonresidential:

Low strength I $3.80/100 cubic feet
Low strength II $4.51/100 cubic feet
Low strength III $5.23/100 cubic feet
Medium strength I $5.94/100 cubic feet
Medium strength II $6.66/100 cubic feet
Medium strength III $7.38/100 cubic feet
High strength I $8.09/100 cubic feet
High strength II $8.81/100 cubic feet

1. Large volume user:
>25,000 gallons per day $5.23/100 cubic feet

2. Nonresidential minimum charge:

All strengths $71.01
C. Schools:

Elementary $189.63/100 ADA1
Secondary and high school $316.05/100 ADA1
D. Septage:

Tank dumping $0.13/gallon
$18.15 minimum
5 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Clean.docx Note:
1 ADA: Average Daily Attendance
Section 2. 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 other provisions or 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 3. Ordinance No. 2965 is rescinded effective January 1, 2027.

Section 4. 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.
__________________________
Mario Saucedo, Mayor
ATTEST:
__________________________
Jeanne Donaldson, City Clerk
6 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Clean.docx I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the 7th day of July, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________
Jeanne Donaldson, City Clerk
1 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Legislative.docx ORDINANCE NO. 3004
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER 3.62

SEWER SERVICE FUND
SECTION:

3.62.010: Establishment

3.62.020: Definitions

3.62.030: Charges

3.62.040: Amount of Charges

3.62.010: ESTABLISHMENT:

There is established the sewer service fund to provide for administration, operation and maintenance of the Redlands domestic sewerage system and its capacity to serve its existing users.

All interest on the cash balance of the fund shall accrue to the sewer service fund. The following rules shall apply:

A. All service charges and all miscellaneous charges not otherwise designated shall be credited to the sewer service fund.

3.62.020: DEFINITIONS:

For the purpose of carrying out the intent of this chapter, the following definitions shall apply:

PREMISES: A lot, parcel of land, building or establishment.

SEWER CONNECTION OR CONNECTION: Physically tapping into sewer mains or their laterals for the purpose of serving a private sewer line or building sewer from a property or premises.
2 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Legislative.docx SEWER RATES: The sewer rates, rate structures and rate classes to be established by the city council to be used as a basis for charging users for service from the sewerage system.

SEWER SERVICE CHARGE: Service charges for the use of the sewerage system based on sewer rates.

SINGLE-FAMILY DWELLING UNIT: A structure or portion thereof used exclusively for the occupancy of one family.

3.62.030: CHARGES:

The wastewater service charges for the following categories shall be paid for wastewater service.

A. Residential Rates: For all residential dwelling units, including single-family and multiplefamily dwelling units, there shall be a bimonthly charge.

1. Large volume users are classified as users with greater than twenty-five thousand (25,000) gallons per day discharge.

C. School Rates: Each school shall pay a bimonthly charge for each one hundred (100) average daily attendance or part thereof.

3.62.040: AMOUNT OF CHARGES:

Amounts of bimonthly charges are as follows:

Wastewater rates effective January 1, 2027August 5, 2024:
3 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Legislative.docx City Customers
A. Residential:

Single-family dwelling unit $78.1566.04
Multiple-family dwelling unit $62.0152.40
B. Nonresidential:

Low strength I $3.312.82/100 cubic feet
Low strength II $3.933.41/100 cubic feet
Low strength III $4.563.99/100 cubic feet
Medium strength I $5.184.58/100 cubic feet
Medium strength II $5.815.16/100 cubic feet
Medium strength III $6.435.75/100 cubic feet
High strength I $7.066.34/100 cubic feet
High strength II $7.696.92/100 cubic feet

1. Large volume user:
>25,000 gallons per day $4.563.99/100 cubic feet

2. Nonresidential minimum charge:

All strengths $62.0152.40
C. Schools:

Elementary $165.62143.11/100 ADA
Secondary and high school $276.04238.52/100 ADA
D. Septage:

Tank dumping $0.110.10/gallon
$15.00 minimum
Note:
 ADA: Average Daily Attendance
Wastewater rates effective July 1, 20272025:

City Customers
A. Residential:

Single-family dwelling unit $83.6372.65
Multiple-family dwelling unit $66.3657.64
B. Nonresidential:

Low strength I $3.553.11/100 cubic feet
Low strength II $4.213.76/100 cubic feet
Low strength III $4.884.39/100 cubic feet
Medium strength I $5.555.04/100 cubic feet
Medium strength II $6.225.68/100 cubic feet
Medium strength III $6.896.33/100 cubic feet
High strength I $7.566.98/100 cubic feet
4 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Legislative.docx High strength II $8.237.62/100 cubic feet

1. Large volume user:
>25,000 gallons per day $4.884.39/100 cubic feet

2. Nonresidential minimum charge:

All strengths $66.3657.64
C. Schools:

Elementary $177.22157.43/100 ADA
Secondary and high school $295.37262.38/100 ADA
D. Septage:

Tank dumping $0.120.11/gallon
$16.50 minimum
Note:
 ADA: Average Daily Attendance
Wastewater rates effective July 1, 2028:

City Customers
A. Residential:

Single-family dwelling unit $89.49
Multiple-family dwelling unit $71.01
B. Nonresidential:

1. Large volume user:
>25,000 gallons per day $5.23/100 cubic feet

2. Nonresidential minimum charge:

All strengths $71.01
C. Schools:

Elementary $189.63/100 ADA
Secondary and high school $316.05/100 ADA
D. Septage:

Tank dumping $0.13/gallon
$18.15 minimum
5 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Legislative.docx Note:
 ADA: Average Daily Attendance
Section 2. 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 other provisions or 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 3. Ordinance No. 2965 is rescinded effective January 1, 2027.

Section 4. 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.
__________________________
Mario Saucedo, Mayor
ATTEST:
__________________________
Jeanne Donaldson, City Clerk
6 I:\cmo\Ordinances\B. Ordinance No. 3004 Amending Chapter 3.62 - Legislative.docx I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the 7 th day of July,
2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________
Jeanne Donaldson, City Clerk

CITY OF REDLANDS
APRIL 2026

NOTICE OF PUBLIC HEARING REGARDING PROPOSED ADOPTION OF WATER AND

WASTEWATER UTILITY RATE INCREASES
The City Council of the City of Redlands is currently considering an increase to its water and wastewater utility rates.

You are receiving this notice because you are a City water and/or wastewater utility customer, or an owner of property receiving water and/or wastewater utility services from the City. This notice describes the proposed rate increases and explains how you may participate in a public hearing and the rate-setting process.

On July 7, 2026, at 6:00 p.m., or as soon thereafter as the matter may be heard, pursuant to Article XIIID of the California Constitution (Proposition 218), a public hearing on the proposed water and wastewater rate increases will be held by the City Council in the Council Chambers, located at 35 Cajon Street, Redlands, CA 92373. The purpose of the hearing is to consider verbal and written testimony, and any written protests relating to the proposed increases to water and wastewater rates.

REDLANDS RATE SETTING BACKGROUND
Water and wastewater rates were last increased in July 2025. Periodic rate increases are necessary to (i) ensure that each water and wastewater service customer bears a fair and proportionate share of the costs of providing services (consistent with Proposition 218 legal requirements); (ii) recoup the rising cost of providing services, including operation and maintenance costs, debt service and capital program needs; and (iii) meet financial, regulatory, and service obligations. Water and wastewater system costs include energy, fuel, and chemical costs; distribution and collection costs; treatment and disposal costs; administrative and customer service account costs, and costs related to facilities replacement, rehabilitation, and upgrades. The City has made significant improvements to its utility infrastructure to ensure continued functionality and reliability, and to meet State and Federal regulatory agency requirements. The City recently expended more than $20,000,000, and will expend an additional $45,000,000 to upgrade its Wastewater Treatment Plant during the next five years. Additionally, antiquated pipelines have been and will continue to be replaced to avoid leaks, overflows, and related potential regulatory penalties. The City recently completed water utility and wastewater utility master plans that identify necessary capital improvements for the efficient and effective operation of the City’s water and wastewater utility infrastructure.

These plans serve as a guide for the efficient and timely replacement, rehabilitation, and/or maintenance of water and wastewater infrastructure.

The proposed increases are
scheduled to go into effect on
January 1, 2027; July 1, 2027,
and July 1, 2028
Redlands Wastewater Treatment Plant as it
stands today.

The table shows the current
and the proposed wastewater
rates which, if approved, will
become effective on January
1, 2027, July 1, 2027, and
July 1, 2028. While modest
rate increases are proposed
to reflect the increased costs
to the City of providing
service and meeting financial
obligations, the basic
wastewater rate structure for
all customer classes remains
unchanged.

PROPOSED BI-MONTHLY SEWER SERVICE CHARGES

CUSTOMER CLASS CURRENT

RATE PROPOSED RATE
January 1,
2027
July 1,
2027
July 1,
2028
Residential
Single Family Dwelling Unit $72.65 $78.15 $83.63 $89.49 Multi-Family Dwelling Unit $57.64 $62.01 $66.36 $71.01

NON-RESIDENTIAL BASED ON WATER USE IN CCF
Low Strength I $3.11 $3.31 $3.55 $3.80
Low Strength II $3.76 $3.93 $4.21 $4.51
Low Strength III $4.39 $4.56 $4.88 $5.23
Medium Strength I $5.04 $5.18 $5.55 $5.94
Medium Strength II $5.68 $5.81 $6.22 $6.66
Medium Strength III $6.33 $6.43 $6.89 $7.38
High Strength I $6.98 $7.06 $7.56 $8.09
High Strength II $7.62 $7.69 $8.23 $8.81
Large Volume User $4.39 $4.56 $4.88 $5.23
Minimum Charge $57.64 $62.01 $66.36 $71.01
Schools ($/100 students)
Elementary School $157.43 $165.62 $177.22 $189.63
Secondary & High School $262.38 $276.04 $295.37 $316.05 Septage ($/gal) $0.11 $0.11 $0.12 $0.13
Minimum Septage Charge $15.00 $16.50 $18.15

CITY OF REDLANDS
APRIL 2026

NOTICE OF PUBLIC HEARING REGARDING PROPOSED ADOPTION OF WATER AND

WASTEWATER UTILITY RATE INCREASES
The table shows the current
and the proposed water
service rate which, if approved,
will become effective on
January 1, 2027, July 1, 2027,
and July 1, 2028. The Water
Service rate is a fixed charge
that does not fluctuate with
increasing and/or decreasing
water usage. While modest
rate increases are proposed to
reflect the increased costs to
the City of providing service
and meeting financial
obligations, the basic water
service rate structures for all
customer classes remains
unchanged.

PROPOSED BI-MONTHLY WATER SERVICE CHARGES

WATER SERVICE CURRENT

RATE PROPOSED RATE
January 1,
2027
July 1,
2027
July 1,
2028
5/8” $33.60 $34.09 $34.95 $35.83
3/4” $44.90 $45.54 $46.68 $47.85
1” $66.81 $67.76 $69.46 $71.20
1 1/2” $119.96 $121.64 $124.69 $127.81
2” $177.10 $179.56 $184.05 $188.66
3” $305.97 $310.22 $317.98 $325.93
4” $472.05 $478.60 $490.57 $502.84
6” $870.64 $882.70 $904.77 $927.39
8” $1,282.51 $1,300.27 $1,332.78 $1,366.10
10” $3,036.30 $3,078.32 $3,155.28 $3,234.17
12” $3,992.91 $4,048.16 $4,149.37 $4,253.11

FIRE PROTECTION SERVICE
2” $12.05 $12.05 $12.36 $12.67
3” $21.63 $21.39 $21.93 $22.48
4” $38.14 $37.51 $38.45 $39.42
6” $97.39 $95.34 $97.73 $100.18
8” $199.61 $195.09 $199.97 $204.97
10” $353.35 $345.14 $353.77 $362.62
12” $566.44 $553.09 $566.92 $581.10
FIRE HYDRANT SERVICE $305.97 $313.62 $321.47 $329.51
The table shows the current
and the proposed water usage
rate which, if approved, will
become effective on January 1,
2027, July 1, 2027, and July 1,
2028. The Water Usage rate
varies with increasing and/or
decreasing water usage. While
modest rate increases are
proposed to reflect the
increased costs to the City of
providing service and meeting
financial obligations, the basic
water usage rate structures for
all customer classes remains
unchanged. Water use is
measured in one hundred
cubic feet increments (CCF).

One (1) CCF equals 748
gallons.

PROPOSED BI-MONTHLY WATER USAGE CHARGES

BUILDING WATER USAGE

CURRENT

RATE PROPOSED RATE
January 1,
2027
July 1,
2027
July 1,
2028
TIER I (≤ 16 ccf) $1.61 $1.59 $1.63 $1.68
TIER II (17 ccf - 27 ccf) $1.90 $1.95 $2.00 $2.05
TIER III (> 27 ccf) $2.85 $3.00 $3.08 $3.16

NON-BUILDING WATER
USAGE
TIER I (≤ 27 ccf) $1.81 $1.87 $1.92 $1.97
TIER II (> 27 ccf) $2.85 $2.66 $2.73 $2.80

FIRE PROTECTION WATER
ALL UNITS $2.85 $2.93 $3.01 $3.09
HOW DO I PROTEST THE RATE CHANGES?
If you wish to oppose the proposed water and wastewater rate increases, you must submit a written protest pursuant to the Resolution No. 7128 which establishes a policy for the submission and tabulation of protests with respect to the public hearings for utility rate adjustments. The written protest must contain the printed name and original wet signature of the property owner or customer, and must include the street address, or the County of San Bernardino Assessor’s parcel number (APN) of the property served. During the public hearing, the City Council will consider all public testimony and all written protests. At the conclusion of the public hearing, the City Council will decide whether to adopt the proposed rate increases. Only one written protest per identified parcel or property will be counted for determining whether a majority protest exists. If valid written protests are received from a majority of the affected property owners, the City Council will not approve the proposed rate increases. Your written protest must be received (not postmarked) by the City Clerk prior to the close of the public hearing on July 7, 2026. Protests should be addressed and mailed to: City Clerk, Redlands City Hall, 35 Cajon Street, Suite 4, Redlands, CA 92373. Written protests may also be presented in-person to the City Clerk prior to the July 7, 2026, meeting. Written protests may also be submitted during the public hearing.

Protests may not be submitted via email or by other electronic means.

Additional information regarding the proposed water and wastewater rate increases is presented in the City of Redlands 2026 Water, Wastewater, and Non-Potable Water Financial Plan & Rate Study which is available for review during business hours at the City Clerk’s Office or you may review the report on the City’s website at www.cityofredlands.org. For questions or additional information regarding the proposed rate increases, you may also contact the City’s Municipal Utilities and Engineering Department at (909) 798-7698.

Exhaustion of Administrative Remedies – Written Objection How do I preserve my ability to judicially challenge the Proposed Rates? Pursuant to California Government Code Sections 53759.1 and 53759.2, a person or entity will be prohibited from bringing a judicial action or proceeding alleging that the proposed rates do not comply with Proposition 218 unless that person or entity has submitted a written Objection to the proposed rates. This is known as an Exhaustion of Administrative Remedies requirement and is separate from the Proposition 218 majority Protest process described above.

To exhaust your administrative remedies, your written Objection must meet the following criteria:
• State that the correspondence is an Objection.
• Include the name and signature of the record property owner or account holder who is submitting the Objection. • Identify the property by street address or other identifying information such as APN. • Include the specific grounds for alleging noncompliance of the proposed rates with Proposition 218 in sufficient detail to allow the City to determine whether any adjustments to the proposed rates are necessary. A statement that the proposed rate adjustments are too high, or that the proposed rates violate Proposition 218 without an explanation as to why, will be insufficient for purposes of exhausting administrative remedies.

Written Objections may be mailed or personally delivered to the City Clerk at a Submittal Location listed below and must be received by the City Clerk by 4 p.m., Monday, June 16, 2026. Note that this deadline for submitting a written Objection is three weeks before the Public Hearing, whereas written Protests may be submitted until the Hearing is closed. Failure to timely submit a written Objection to the proposed rate adjustments in accordance with the requirements above, bars any right to challenge the rate adjustments through a legal proceeding. Finally, please note that any legal proceeding to challenge a new, increased, or extended water or sewer charge is subject to a 120-day statute of limitations pursuant to California Government Code section 53759.

The City will review each written Objection and respond in writing to all timely written submittals. The written basis supporting the proposed rate adjustments can be found on the City’s website at www.cityofredlands.org.

SUBMITTAL LOCATIONS
Mail: City Clerk, ATTN: Utility Rates Protest or Objection, City of Redlands, 35 Cajon Street, Ste 4, Redlands, CA 92373 In Person: Redlands City Hall, City Clerk’s office, 35 Cajon Street, Suite 4, Redlands, CA 92373 Questions? Submit questions and comments via email to Goutam Dobey, [email protected], or call (909) 798-7584 x2.

City of Redlands
Municipal Utilities & Engineering Department
P.O. Box 3005
Redlands, CA 92373

MAIL MERGE

XXXX XXXXXX XX
XXXXXXXXX, XX. XXXXX
APN: XXXXXXXXXXXXXXX

UTILITIES ADVISORY COMMITTEE
In accordance with Chapter 2.70 of the Redlands Municipal Code, every two years the City Council appoints seven utility customers of the City to be members of its Utilities Advisory Committee (UAC). Members of the UAC provide oversight and guidance for the process to assist the City’s financial consultant and staff in establishing water, wastewater and non-potable water rates, charges and revenue requirements. The UAC provides recommendations to the City Council to ensure that water, wastewater, and non-potable water rates and charges (1) recover costs reasonably borne in providing water, wastewater and non-potable water services; (2) are equitable to all customer classes; (3) are in compliance with all state and federal laws; and (4) are easily explained to customers. The UAC was formed by the City Council on January 20, 2026, and the UAC provided its recommendations for City Council consideration on April 21, 2026.

PRESORT STD
U.S. POSTAGE PAID

SAN BERNARDINO, CA
PERMIT 1123

CITY OF REDLANDS
Water, Wastewater, and
Non-Potable Water
Financial Plan and Rate Study
FINAL REPORT / APRIL 16, 2026

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227 W. Trade Street, Suite 1400, Charlotte, NC 28202
www.raftelis.com
April 16, 2026
Monica Heredia, PE
Director of Municipal Utilities and Engineering Department City of Redlands
35 Cajon Street
Redlands, CA 92373
Subject: Water, Wastewater, and Non-Potable Water Financial Plan and Rate Study Report Dear Ms. Heredia:

Raftelis is pleased to provide this Water, Wastewater, and Non-Potable Water Financial Plan Study Report (Report) for the City of Redlands (City). This report presents the analyses, rationales, and methodologies utilized in the study to determine utility rates that align with the requirements of Proposition 218. The study was developed with feedback and input from City staff.

The study involved a comprehensive review of the City’s current water, wastewater, and non-potable water cost requirements to determine rates that meet the City’s objectives. The main objectives that informed the study include:
• Adequately recovering all costs to ensure the financial sufficiency of the City’s utilities • Determining feasible capital financing plans for all three utilities • Developing long-term financial plans for all three utilities • Calculating cost of service-based rates for all three utilities • Minimizing customer impacts from rate adjustments
We are confident that the proposed rates developed during this study are fair and equitable for the City’s customers and are in alignment with the requirements of Proposition 218. We appreciate the input provided by City staff, which helped guide the final recommendations of the financial plan and resulting rates. It was a pleasure working with you and your team, and we wish to express our gratitude for the support you and other City staff provided during the study.

Sincerely,

Sudhir Pardiwala Jeremy Tamargo
Executive Vice President Manager

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City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 5 Contents

1. Executive Summary ................................................................... 11

1.1. Study Background ......................................................................................................11

1.2. Current Rates ..............................................................................................................11

1.3. Process and Approach ...............................................................................................14

1.4. Legal Framework.........................................................................................................15

1.5. Results and Recommendations.................................................................................15

1.5.1. Water Utility................................................................................................................... 15

1.5.2. Wastewater Utility ......................................................................................................... 16

1.5.3. Non-Potable Water Utility .............................................................................................. 16

1.6. Proposed Rates...........................................................................................................16

1.7. Combined Customer Impacts ....................................................................................19

1.8. Regional Rate Survey .................................................................................................20

2. Key Assumptions ....................................................................... 22

2.1. Customer Account Growth.........................................................................................22

2.2. Revenue Inflation Factors ..........................................................................................22

2.3. Expense Inflation Factors...........................................................................................23

3. Water – Financial Plan................................................................ 24

3.1. Projected Revenues....................................................................................................24

3.2. Projected O&M Expenses...........................................................................................25

3.3. Debt Service ................................................................................................................26

3.4. Capital Projects...........................................................................................................26

3.5. Proposed Financial Plan.............................................................................................28

4. Water – Cost-of-Service Analysis and Rates.............................. 32

4.1. Process and Approach ...............................................................................................32

4.2. Revenue Requirement ................................................................................................32

4.3. Allocation of Functionalized Net Revenue Requirements to Cost Components...33

4.3.1. Peaking Factors ............................................................................................................ 33

4.4. Operating and Capital Cost Allocation......................................................................35

4.5. Allocation of Fire Protection Costs – Public vs. Private..........................................38

4.6. Final Cost Allocation of Revenue Requirement .......................................................39 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 6

4.7. Unit Cost Components ...............................................................................................40

4.8. Distribution of Cost Components to Customer Classes .........................................43

4.9. Rate Calculation..........................................................................................................45

4.9.1. Proposed Bi-Monthly Fixed Charges ............................................................................. 45

4.9.2. Proposed Bi-Monthly Fire Service Charges................................................................... 45

4.9.3. Proposed Water Usage Rates....................................................................................... 46

5. Wastewater – Financial Plan...................................................... 51

5.1. Customer Accounts and Usage .................................................................................51

5.2. Current Rates ..............................................................................................................51

5.3. Calculated Rate Revenues at Current Rates.............................................................53

5.4. Projected Revenues at Current Rates .......................................................................54

5.5. Projected O&M Expenses...........................................................................................54

5.6. Debt Service ................................................................................................................55

5.7. Capital Projects...........................................................................................................55

5.8. Proposed Financial Plan.............................................................................................56

6. Wastewater – Cost of Service Analysis and Rates.................... 60

6.1. Process and Approach ...............................................................................................60

6.2. Revenue Requirement ................................................................................................60

6.3. Plant Mass Balance.....................................................................................................61

6.4. Operating and Capital Cost Allocation......................................................................65

6.5. Unit Cost Components ...............................................................................................67

6.6. Revenue Requirement Allocation..............................................................................69

6.7. Rate Calculation..........................................................................................................70

6.8. Proposed Rates...........................................................................................................72

7. Non-Potable Water – Financial Plan........................................... 74

7.1. Projected Revenues....................................................................................................74

7.2. Projected O&M Expenses...........................................................................................75

7.3. Debt Service ................................................................................................................75

7.4. Capital Projects...........................................................................................................75 Proposed Financial Plan.....................................................................................................76

7.5. Proposed Rates...........................................................................................................76

8. Water Rates for Largest Users .................................................. 77 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 7 Tables
Table 1-1: Current Bi-Monthly Water Service Charges ($/meter size) .................................................... 11 Table 1-2: Current Water Usage Rates ($/ccf of water).......................................................................... 12 Table 1-3: Current Bi-Monthly Residential Wastewater Service Charges ($/dwelling unit) ..................... 12 Table 1-4: Current Non-Residential Wastewater Rates ($/ccf of water).................................................. 13 Table 1-5: Current Bi-Monthly Schools Wastewater Service Charge ($/100 students) ........................... 13 Table 1-6: Current Bi-Monthly Non-Potable Water Service Charges ($/meter size)................................ 13 Table 1-7: Current Non-Potable Water Usage Rates ($/ccf of water) ..................................................... 14 Table 1-8: Proposed Bi-Monthly Water Service Charges ($/meter size)................................................. 17 Table 1-9: Proposed Water Usage Rates ($/ccf of water) ...................................................................... 17 Table 1-10: Proposed Bi-Monthly Residential and Schools Wastewater Service Charges ..................... 18 Table 1-11: Proposed Non-Residential Wastewater Usage Rates ($/ccf of water) ................................. 18 Table 1-12: Proposed Bi-Monthly Non-Potable Water Service Charges ($/meter size) .......................... 19 Table 1-13: Proposed Non-Potable Water Usage Rates ($/ccf of water)................................................ 19 Table 1-14: Proposed Single Family Customer Bi-Monthly Impacts (3/4” meter, 40 ccf) ........................ 20 Table 2-1: Customer Account Growth Projections.................................................................................. 22 Table 2-2: Revenue Inflation Factors ..................................................................................................... 22 Table 2-3: Expense Inflation Factors...................................................................................................... 23 Table 3-1: Projected Water Revenues ................................................................................................... 25 Table 3-2: Projected Water O&M Expenses........................................................................................... 26 Table 3-3: Existing Water Debt Service.................................................................................................. 26 Table 3-4: Inflated Water Capital Projects.............................................................................................. 27 Table 3-5: Proposed Water Capital Financing Plan................................................................................ 28 Table 3-6: Proposed Water Revenue Adjustments................................................................................. 28 Table 3-7: Projected Water Financial Plan (Proposed Revenue Adjustments) ....................................... 29 Table 4-1: Water Revenue Requirement Calculation ............................................................................. 33 Table 4-2: System Peaking .................................................................................................................... 34 Table 4-3: Average and Peaking Cost Causation Factors...................................................................... 35 Table 4-4: Water Operating Cost Allocation ........................................................................................... 36 Table 4-5: Water Asset Allocation .......................................................................................................... 37 Table 4-6: Fire Analysis ......................................................................................................................... 38 Table 4-7: Revenue Requirement by Cost Component .......................................................................... 39 Table 4-8: FY 2027 Projected Water Usage by Class ............................................................................ 40 Table 4-9: Derivation of Equivalent Meters............................................................................................. 40 Table 4-10: Derivation of Equivalent Fire Lines...................................................................................... 41 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 8 Table 4-11: Calculation of Peak Capacity .............................................................................................. 42 Table 4-12: Cost Causation Component Unit Cost Calculation .............................................................. 42 Table 4-13: Derivation of Costs to Serve Each Class............................................................................. 44 Table 4-14: Proposed Bi-Monthly Service Charge (FY 2027)................................................................. 45 Table 4-15: Proposed Bi-Monthly Fire Service Charge (FY 2027).......................................................... 46 Table 4-16: Peaking Unit Cost Calculation............................................................................................. 46 Table 4-17: Potable Water Supply Cost ................................................................................................. 47 Table 4-18: Supply Component Calculation ........................................................................................... 48 Table 4-19: Proposed Water Usage Rates (FY 2027)............................................................................ 49 Table 4-20: Proposed Bi-Monthly Service Charges................................................................................ 50 Table 4-21: Proposed Water Usage Rates............................................................................................. 50 Table 5-1: Projected Wastewater Customer Accounts and Usage ......................................................... 52 Table 5-2: Current Bi-Monthly Wastewater Service Charges and Usage Rates ..................................... 52 Table 5-3: Calculated Wastewater Rate Revenues at Current Rates ..................................................... 53 Table 5-4: Projected Wastewater Revenues at Current Rates ............................................................... 54 Table 5-5: Projected Wastewater O&M Expenses.................................................................................. 54 Table 5-6: Proposed Wastewater Debt Service...................................................................................... 55 Table 5-7: Inflated Wastewater Capital Projects..................................................................................... 55 Table 5-8: Proposed Wastewater Capital Financial Plan……………………………………………………….. 56 Table 5-9: Proposed Wastewater Capital Financing Plan....................................................................... 56 Table 5-10: Proposed Wastewater Revenue Adjustments ..................................................................... 56 Table 5-11: Projected Wastewater Financial Plan (Proposed Revenue Adjustments)............................ 57 Table 6-1: Wastewater Revenue Requirement Calculation .................................................................... 61 Table 6-2: Schools Wastewater Flow Estimate ...................................................................................... 62 Table 6-3: Wastewater Plan Balance Calculation................................................................................... 63 Table 6-4: Residential Proportion of Wastewater Flow........................................................................... 64 Table 6-5: Estimated Residential Wastewater Loadings......................................................................... 64 Table 6-6: Wastewater Operating Cost Allocation.................................................................................. 66 Table 6-7: Wastewater Capital Allocation............................................................................................... 67 Table 6-8: Wastewater Service Units by Cost Components ................................................................... 68 Table 6-9: Wastewater Cost of Service and Unit Costs.......................................................................... 69 Table 6-10: Allocation of Wastewater Revenue Requirement to Customer Classes............................... 70 Table 6-11: Wastewater Bi-Monthly Rate Calculation ............................................................................ 71 Table 6-12: Wastewater Bi-Monthly Rate Comparison........................................................................... 72 Table 6-13: Proposed Bi-Monthly Wastewater Service Charges ............................................................ 72 Table 6-14: Proposed Non-Residential Wastewater Rates..................................................................... 73 Table 7-1: Projected Non-Potable Water Revenues............................................................................... 74 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 9 Table 7-2: Projected Non-Potable Water O&M Expenses ...................................................................... 75 Table 7-3: Proposed Non-Potable Water Revenue Adjustments ............................................................ 76 Table 7-4: Proposed Bi-Monthly Non-Potable Water Service Charges ($/meter size) ............................ 76 Table 7-5: Proposed Non-Potable Water Usage Rates ($/ccf of water).................................................. 76 Figures
Figure 1-1: Regional Single Family Customer Bi-Monthly Sewer Bill Comparison.................................. 21 Figure 1-2: Regional Single Family Customer Bi-Monthly Water Bill Comparison .................................. 21 Figure 3-1: Proposed Water Capital Financing Plan............................................................................... 30 Figure 3-2: Projected Water Financial Plan (Proposed Revenue Adjustments)...................................... 30 Figure 3-3: Projected Water Fund Balances (Proposed Revenue Adjustments)..................................... 31 Figure 5-1: Proposed Wastewater Capital Financing Plan ..................................................................... 58 Figure 5-2: Projected Wastewater Financial Plan (Proposed Revenue Adjustments)............................. 58 Figure 5-3: Projected Wastewater Fund Balances (Proposed Revenue Adjustments) ........................... 59 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 10

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City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 11

1. Executive Summary

1.1. Study Background
In 2025, the City of Redlands (City) contracted Raftelis to conduct a Water, Wastewater, and Non-Potable Water Rate Study, which included developing long-term financial plans and cost-of-service rates.

This report presents the three financial plans and resulting rates for the water, wastewater, and non-potable water utilities for a three-year period to ensure fairness and equity for its customers and the financial stability of the three enterprises.

This Executive Summary outlines the proposed financial plans and resulting rates and contains a description of the rate study process, methodology, and recommendations for the City’s rates. The main objectives that informed the Study include:
• Adequately recovering all costs to ensure the financial sufficiency of the City’s utilities • Determining feasible capital financing plans for all three utilities • Developing long-term financial plans for all three utilities • Calculating cost of service-based rates for the three utilities • Minimizing customer impacts from changes to the rate structures

1.2. Current Rates
The City’s current water rates were implemented on July 1, 2025, and include a bi-monthly service charge based on meter size for water service, fire protection service, and tiered water usage rates per hundred cubic feet (ccf) of water by customer class. Table 1-1 shows current bi-monthly service charges and fire protection charges, and Table 1-2 shows the water usage rates by customer class, each unit is one ccf.

Table 1-1: Current Bi-Monthly Water Service Charges ($/meter size) A B C
Line Meter Size Water Service
Charge
Fire Protection
Water Service
Charge
1 5/8" $33.60
2 3/4" $44.90
3 1" $66.81
4 1 1/2" $119.96
5 2" $177.10 $12.05
6 3" $305.97 $21.63
7 4" $472.05 $38.14
8 6" $870.64 $97.39
9 8" $1,282.51 $199.61
10 10" $3,036.30 $353.35
11 12" $3,992.91 $566.44
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 12 Table 1-2: Current Water Usage Rates ($/ccf of water)
A B
Line Customer Class
Water
Usage
Rate
1 Building Water Usage
2 Tier 1 first 16 units $1.61
3 Tier 2 17-27 units $1.90
4 Tier 3 over 27 units $2.85
5 6 Non-Building Water Usage
7 Tier 1 first 27 units $1.81
8 Tier 2 over 27 units $2.85
9 10 Other Water Usage
11 B Contract $100.46
12 Recycled $110.00
13 14 Fire Protection/Fire Hydrant Water Usage
15 All Units $2.85
The current wastewater rates were implemented on July 1, 2025, and include a bi-monthly service charge for residential customers and schools and non-residential wastewater usage rates per ccf of water usage. Table 1-3 shows the current bi-monthly residential service charges, Table 1-4 shows the non-residential wastewater usage rates for all non-residential customer classes, and Table 1-5 shows the bi-monthly schools service charge by school type based on average daily attendance (ADA).

Table 1-3: Current Bi-Monthly Residential Wastewater Service Charges ($/dwelling unit) A B
Line Residential Customer Class Wastewater
Service Rate
1 Single Family $72.65
2 Multiple Family $57.64
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 13 Table 1-4: Current Non-Residential Wastewater Rates ($/ccf of water) A B
Line Non-Residential Customer Class Wastewater
Rate per ccf
1 Low Strength I $3.11
2 Low Strength II $3.76
3 Low Strength III $4.39
4 Medium Strength I $5.04
5 Medium Strength II $5.68
6 Medium Strength III $6.33
7 High Strength I $6.98
8 High Strength II $7.62
9 Large Volume User $4.39
10 Minimum Charge ($) $57.64
11 12 Septage Charge ($/gal) $0.11
Table 1-5: Current Bi-Monthly Schools Wastewater Service Charge ($/100 students) A B
Line Schools Customer Class Wastewater
Service Rate
1 Elementary $157.43
2 Secondary & High $262.38
The current non-potable water rates include a bi-monthly service charge and a usage rate per ccf of nonpotable water usage.

Table 1-6 and Table 1-7 show the bi-monthly non-potable water service charges and non-potable water usage rates, respectively.

Table 1-6: Current Bi-Monthly Non-Potable Water Service Charges ($/meter size) A B
Line Meter Size
Non-Potable
Water Service
Charge
1 3/4" $13.81
2 1" $20.65
3 1 1/2" $37.29
4 2" $55.16
5 3" $95.50
6 4" $147.45
7 6" $272.16
8 8" $401.04
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 14 Table 1-7: Current Non-Potable Water Usage Rates ($/ccf of water) A B
Line Non-Potable Customer Class
Non-Potable
Water Usage Rate
per ccf
1 Non-Potable Water $0.99
2 Conversion Customer $0.64

1.3. Process and Approach
The City’s rate-setting process involves participation and feedback from City staff and the Utilities Advisory Committee (UAC). During the study, Raftelis met with City staff to discuss and understand the challenges the City’s three utilities face and to provide guidance to finalize the rate recommendations, which are detailed in this report.

During meetings with staff and UAC, Raftelis presented the various assumptions, inputs, and scenario analyses that were utilized to determine the water, wastewater, and non-potable water financial plans. City staff discussed the upcoming capital project requirements, which are some of the main drivers for the revenue adjustments in the final recommendations presented in this report. Raftelis designed and presented the financial plan and rate models to analyze various scenarios, such as those related to debt issuances, revenue adjustments, and capital funding.

The proposed financial plans detailed in this report followed industry standard practices for long-term financial planning and utilized commonly accepted assumptions in the absence of specified assumptions from the City, such as general inflation based on the Consumer Price Index (CPI). Raftelis worked closely with City staff to project future revenues and expenses to reinforce sound fiscal management practices.

The cost-of-service analysis utilized to develop the water rates followed the guidelines for allocating costs outlined in the American Water Works Association’s (AWWA) “Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices M1, 6th edition” (M1 Manual). Wastewater rates followed the guidelines for allocating costs outlined in the Water Environment Federation (WEF) Manual of Practice No. 27, Financing and Charges for Wastewater (2018). The cost-of-service analysis and rate design process consists of seven major steps, as outlined below:

1. Determine the revenue requirement from rates to meet operation, capital expenditures, debt financing, and reserves.

2. Functionalize operations and maintenance (O&M) expenses and capital assets into functional categories such as supply, distribution, treatment, laboratory, collection, engineering, etc.

3. Allocate each functional category into cost components such as supply, base delivery, peaking, meter and customer service for water, and wastewater flow and strength, which includes biochemical oxygen demand (BOD) and total suspended solids (TSS) for wastewater.

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

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

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 the City’s objectives.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 15 The financial plans for the three utilities include the three-year Study period from fiscal year (FY) 2027 1 to
FY 2029. The proposed rates were developed for implementation on January 1, 2027 (middle of FY 2027) and in July of every year thereafter (July 1, 2027, through July 1, 2028).

1.4. Legal Framework
California Constitution Article XIII D, Section 6, commonly referred to as Proposition 218, was enacted in 1996 to ensure that rates and fees are reasonable and proportionate to the cost of providing service. The principal requirements for the fairness of the fees, as they relate to public water and wastewater service are as follows:

1. A property-related charge (such as water and wastewater rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property-related service.

2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed.

3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.

4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of the property.

5. A written notice of the proposed charge shall be mailed to the record owner of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge.

Proposition 218 requires that rates cannot be “arbitrary and capricious,” meaning that the rate-setting methodology must be sound and there must be a nexus between the costs and the rates charged. Raftelis follows industrystandard rate-setting methodologies to perform cost-of-service analyses for the water utility based on the M1 Manual and for the wastewater utility based on WEF’s Manual No. 27.

1.5. Results and Recommendations
Raftelis worked closely with City staff to define the final results and recommendations of the water, wastewater, and non-potable water rate Study. The recommendations presented in this report will ensure the financial sufficiency and stability of the City’s three utilities to fund all necessary operating costs, capital costs, and to maintain sufficient cash reserves. To minimize customer impacts due to changes in rate structure, which is a key objective that informed the Study approach, Raftelis recommends that the City maintain the same rate structure for the water, wastewater, and non-potable water systems.

1.5.1. Water Utility
• The water O&M expenses are expected to increase, on average, by approximately 2.8 percent each year of the Study based on the City’s FY 2026 budget and inflationary assumptions. • The City plans to spend approximately $51.5 million on capital projects from FY 2027 to FY 2029. • Raftelis recommends 2.5 percent revenue adjustments per year in FY 2027 through FY 2029 to fund its capital project spending and to maintain sufficient cash reserves. 1 FY 2027 is the period from July 1, 2026, to June 30, 2027.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 16

1.5.2. Wastewater Utility
• The wastewater O&M expenses are expected to increase, on average, by approximately 2.8 percent each year of the Study based on the City’s FY 2026 budget and inflationary assumptions. • The City plans to spend $55.1 million in capital projects from FY 2027 to FY 2029, the majority of which is to refurbish and modify the City’s current wastewater treatment plant. • The City has obtained the State Revolving Fund (SRF) loan of $45 million to fund part of the wastewater treatment plant project costs.
• Raftelis recommends 7 percent revenue adjustments per year in FY 2027 through FY 2029 to fund capital projects and debt service and to meet debt coverage requirements.

1.5.3. Non-Potable Water Utility
• The non-potable O&M expenses are expected to increase, on average, by approximately 3.1 percent each year of the Study based on the City’s FY 2026 budget and inflationary assumptions. • The City does not currently have planned capital projects for the non-potable water utility from FY 2027 to FY 2029.
• Raftelis recommends no revenue adjustments for FY 2027 through FY 2029 as the utility has sufficient cash reserves to fund capital project costs and operating expenses.

1.6. Proposed Rates
Table 1-8 and Table 1-9 show the proposed bi-monthly water service charges and water usage rates for the City’s water utility, respectively, based on the above recommendations. The proposed water rates for FY 2027 are determined by the cost-of-service analysis, and rates for the following years are increased from those rates based on the proposed revenue adjustments.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 17 Table 1-8: Proposed Bi-Monthly Water Service Charges ($/meter size)

A B C D E
Bi-Monthly Water Service
Charges Current Rates January 2027 July 2027 July 2028
Water Service
5/8" $33.60 $34.09 $34.95 $35.83
3/4" $44.90 $45.54 $46.68 $47.85
1" $66.81 $67.76 $69.46 $71.20
1 1/2" $119.96 $121.64 $124.69 $127.81
2" $177.10 $179.56 $184.05 $188.66
3" $305.97 $310.22 $317.98 $325.93
4" $472.05 $478.60 $490.57 $502.84
6" $870.64 $882.70 $904.77 $927.39
8" $1,282.51 $1,300.27 $1,332.78 $1,366.10
10" $3,036.30 $3,078.32 $3,155.28 $3,234.17
12" $3,992.91 $4,048.16 $4,149.37 $4,253.11
Fire Protection Service
2" $12.05 $12.05 $12.36 $12.67
3" $21.63 $21.39 $21.93 $22.48
4" $38.14 $37.51 $38.45 $39.42
6" $97.39 $95.34 $97.73 $100.18
8" $199.61 $195.09 $199.97 $204.97
10" $353.35 $345.14 $353.77 $362.62
12" $566.44 $553.09 $566.92 $581.10
Fire Hydrant Service
All Meters $305.97 $313.62 $321.47 $329.51
Table 1-9: Proposed Water Usage Rates ($/ccf of water)

A B C D E F
Water Usage Rates Bi-Monthly
Tiers
Current
Rates January 2027 July 2027 July 2028
Building Water Usage
Tier 1 16 $1.61 $1.59 $1.63 $1.68
Tier 2 27 $1.90 $1.95 $2.00 $2.05
Tier 3 Over 27 $2.85 $3.00 $3.08 $3.16
Non-Building Water Usage
Tier 1 27 $1.81 $1.87 $1.92 $1.97
Tier 2 Over 27 $2.85 $2.66 $2.73 $2.80
Fire Protection Water Usage
All Units $2.85 $2.93 $3.01 $3.09
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 18 Table 1-10 and Table 1-11 show the proposed bi-monthly residential and schools wastewater service charges and non-residential water usage rates for the wastewater utility, respectively. The proposed wastewater rates are based on the cost-of-service analysis.

Table 1-10: Proposed Bi-Monthly Residential and Schools Wastewater Service Charges

A B C D E
Bi-Monthly Wastewater
Service Charges Current Rates January 2027 July 2027 July 2028 Residential ($/dwelling unit)
Single Family $72.65 $78.15 $83.63 $89.49
Multiple Family $57.64 $62.01 $66.36 $71.01
Schools ($/100 students)
Elementary $157.43 $165.62 $177.22 $189.63
Secondary & High $262.38 $276.04 $295.37 $316.05
Table 1-11: Proposed Non-Residential Wastewater Usage Rates ($/ccf of water)

A B C D E
Wastewater Usage Rates Current Rates January 2027 July 2027 July 2028 Non-Residential Usage ($/ccf)
Low Strength I $3.11 $3.31 $3.55 $3.80
Low Strength II $3.76 $3.93 $4.21 $4.51
Low Strength III $4.39 $4.56 $4.88 $5.23
Medium Strength I $5.04 $5.18 $5.55 $5.94
Medium Strength II $5.68 $5.81 $6.22 $6.66
Medium Strength III $6.33 $6.43 $6.89 $7.38
High Strength I $6.98 $7.06 $7.56 $8.09
High Strength II $7.62 $7.69 $8.23 $8.81
Large Volume User $4.39 $4.56 $4.88 $5.23
Minimum Charge ($) $57.64 $62.01 $66.36 $71.01
Septage Charge ($/gal) $0.11 $0.11 $0.12 $0.13
Table 1-12 and Table 1-13 show the bi-monthly non-potable water service charges and non-potable water usage rates, respectively. Raftelis recommends no revenue adjustments for the study period. The proposed rates for FY 2027 are based on the cost of service analysis and remain the same through FY 2029.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 19 Table 1-12: Proposed Bi-Monthly Non-Potable Water Service Charges ($/meter size)

A B C D E
Line Bi-Monthly Non-Potable
Water Service Charges
Current
Rates
January
2027 July 2027 July 2028
1 Non-Potable Water Service
2 3/4" $13.81 $13.81 $13.81 $13.81
3 1" $20.65 $20.65 $20.65 $20.65
4 1 1/2" $37.29 $37.29 $37.29 $37.29
5 2" $55.16 $55.16 $55.16 $55.16
6 3" $95.50 $95.50 $95.50 $95.50
7 4" $147.45 $147.45 $147.45 $147.45
8 6" $272.16 $272.16 $272.16 $272.16
9 8" $401.04 $401.04 $401.04 $401.04
Table 1-13: Proposed Non-Potable Water Usage Rates ($/ccf of water)

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

1.7. Combined Customer Impacts
Table 1-14 outlines the proposed customer bi-monthly impacts for a Single Family customer with a ¾” meter using 40 ccf of water each billing period. The customer impacts show the water, wastewater, non-potable water, and combined bill impacts. A typical Single Family customer will have water and wastewater service, and the total impact for this typical customer is $8.32 per bi-monthly billing period in the first year (Column B, last row).

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 20 Table 1-14: Proposed Single Family Customer Bi-Monthly Impacts (3/4” meter, 40 ccf)

A B C D
Bi-Monthly Impacts Proposed
January 2027
Proposed
July 2027
Proposed
July 2028
Current Water Bill $128.61 $128.61 $128.61
Proposed Water Bill $131.43 $134.80 $138.36
Difference ($) $2.82 $6.19 $9.75
Current Wastewater Bill $72.65 $72.65 $72.65
Proposed Wastewater Bill $78.15 $83.63 $89.49
Difference ($) $5.50 $10.98 $16.84
Current Non-Potable Water Bill $53.41 $53.41 $53.41
Proposed Non-Potable Water Bill $53.41 $53.41 $53.41
Difference ($) $0.00 $0.00 $0.00
Current Water and Wastewater Bill $201.26 $201.26 $201.26 Proposed Water and Wastewater
Bill $209.58 $218.43 $227.85
Difference ($) $8.32 $17.17 $26.59
Current Combined Bill $254.67 $254.67 $254.67
Proposed Combined Bill $262.99 $271.84 $281.26
Difference ($) $8.32 $17.17 $26.59

1.8. Regional Rate Survey
Figure 1-1 shows the bi-monthly sewer bill comparison for a Single Family Dwelling Unit customer. The graph shows the City’s proposed wastewater charge to be implemented in January of 2027.

Figure 1-2 shows the bi-monthly water bill comparison for a Single Family Dwelling Unit customer using a 3/4” meter and 40 ccf of water use per bi-monthly billing period. The graph shows the City’s proposed water rates to be implemented in January of 2027.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 21 Figure 1-1: Regional Single Family Customer Bi-Monthly Sewer Bill Comparison Figure 1-2: Regional Single Family Customer Bi-Monthly Water Bill Comparison $0
$20
$40
$60
$80
$100
$120
$140
$160
Bi-Monthly Sewer Charges for SFR
$0
$50
$100
$150
$200
$250
Yucaipa Valley Water
District
City of San
Bernardino
City of Colton City of Rialto City of Redlands
(Current)
City of Redlands
(Proposed)
City of Loma Linda
Bi-Monthly Water Charges for SFR
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 22

2. Key Assumptions
The key assumptions outlined in this section of the report represent the global assumptions utilized in the Study to project the number of customer accounts, revenues, and expenses for future years. City staff provided data on customer accounts, usage, and actual revenues and expenses for FY 2025 and budgeted revenues and expenses for FY 2026. The remaining years of the Study, from FY 2027 to FY 2029, were projected based on this information and the key assumptions shown in this section.

2.1. Customer Account Growth
Table 2-1 shows the customer account growth projections for each customer class based on input from City staff. The values from the 2020 Urban Water Management Plan (UWMP) were maintained for this rate study cycle. These conservative growth values were used as a prudent fiscal practice to ensure that adequate revenues are collected to fund the City’s utilities.

Table 2-1: Customer Account Growth Projections

A B C D E
Line Customer Account
Growth FY 2026 FY 2027 FY 2028 FY 2029
1 Single Family 0.5% 0.5% 0.5% 0.5%
2 Multiple Family 0.5% 0.5% 0.5% 0.5%
3 Commercial 0.5% 0.5% 0.5% 0.5%
4 Municipal 0.5% 0.5% 0.5% 0.5%
5 Non-Building 0.6% 0.6% 0.5% 0.5%
6 Fire Service 0.5% 0.5% 0.5% 0.5%
7 School 0.5% 0.5% 0.5% 0.5%
8 Non-Potable 0.5% 0.5% 0.5% 0.5%

2.2. Revenue Inflation Factors
Table 2-2 shows the revenue inflation factors utilized to project future revenues and calculate investment income. Projections assume no increase in miscellaneous and non-rate revenues throughout the study period.

The reserve interest rate is used to calculate the investment income based on projected fund balances and is based on conservative estimates.

Table 2-2: Revenue Inflation Factors

A B C D E
Line Revenue Inflation
Factors FY 2026 FY 2027 FY 2028 FY 2029
1 Non-Rate Revenues 0.0% 0.0% 0.0% 0.0%
2 Reserve Interest Rate 4.0% 3.5% 3.5% 3.5%
1 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 23

2.3. Expense Inflation Factors
Table 2-3 shows the expense inflation factors, which are used to project future operating and capital project expenses for the study period. These factors were determined with input from City staff and reference industry standard escalations and commonly used price indices. The general inflation factor is based on the long-term change in the CPI. Water supply, utilities, power, and chemical costs are based on industry averages. Capital was provided in already-inflated dollars.

Table 2-3: Expense Inflation Factors

A B C D E
Line Expense Inflation
Factors FY 2026 FY 2027 FY 2028 FY 2029
1 General 3.0% 3.0% 3.0% 3.0%
2 Salary/Benefits 3.0% 3.0% 3.0% 3.0%
3 Water Supply 5.0% 5.0% 5.0% 5.0%
4 Utilities/Power 5.0% 5.0% 5.0% 5.0%
5 Chemicals 4.0% 4.0% 4.0% 4.0%
6 Supplies/Materials 2.0% 2.0% 2.0% 2.0%
7 Capital 0% 0% 0% 0%
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 24

3. Water – Financial Plan
This section of the report details the water 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 water utility. The results of the water financial plan are the proposed rates for three years based on the proposed revenue adjustments.

3.1. Projected Revenues
City staff provided the actual FY 2025 revenues and budgeted FY 2026 and FY 2027 revenues for the water utility, which were used to project revenues for the remainder of the study period. Table 3-1 shows the projected water revenues for each of the water funds.

The water rate revenues (Lines 1-4) are calculated for future years based on the weighted customer account growth assumptions for each customer class (Table 2-1). The City expects modest increases in water rate revenues for all years of the study based on the growth assumptions. The investment income (Lines 13, 21) is calculated using the reserve interest rate (Table 2-2 , Line 2) and we see a reduction in interest based on the conservative assumption of the interest rate and a reduction in the reserve balance. The remaining revenues are inflated using the non-rate revenue inflation factor (Table 2-2, Line 1).

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 25 Table 3-1: Projected Water Revenues
Line A B C D E
No. Projected Revenues FY 2026 FY 2027 FY 2028 FY 2029
1 Water Service (501)
2 Water Usage $28,231,718 $28,372,877 $28,514,741 $28,657,315 3 Fire Hydrant Water Usage $100,000 $100,500 $101,003 $101,508 4 Fire Protection Water Usage $450,000 $452,250 $454,511 $456,784 5 Irrigation Water Usage $3,100,000 $3,115,500 $3,131,078 $3,146,733 6 Cost Recover/Reimb Expenditure $15,000 $15,075 $15,150 $15,226 7 Plan Check $0 $0 $0 $0
8 Fire Flow Testing $1,500 $1,508 $1,515 $1,523
9 "B" Contract Water Usage $60,000 $60,300 $60,602 $60,905 10 Water Meter Install $30,000 $30,150 $30,301 $30,452
11 Transfers in from Other Funds $637,000 $640,185 $643,386 $646,603 12 Frontage Charge $20,000 $20,100 $20,201 $20,302
13 Investment Income $2,018,746 $1,477,396 $1,172,291 $1,318,224 14 Returned Check Charge $0 $0 $0 $0
15 Rental Income $100,000 $100,500 $101,003 $101,508
16 Miscellaneous Receipts $250,000 $251,250 $252,506 $253,769 17 Total - Water Service (501) $35,013,964 $34,637,590 $34,498,286 $34,810,849 18 Water CIP (509)
19 Capital Improv Chrg Non-Res $400,000 $402,000 $404,010 $406,030 20 Capital Improv Chrg Resident $250,000 $251,250 $252,506 $253,769 21 Investment Income $0 $0 $0 $0
22 Total - Water CIP (509) $650,000 $653,250 $656,516 $659,799 23 Total - Revenues $35,663,964 $35,290,840 $35,154,802 $35,470,648

3.2. Projected O&M Expenses
City staff provided the actual FY 2025 and budgeted FY 2026 O&M expenses for the water utility. Table 3-2 shows the projected O&M expenses for the study period, inflated for FY 2027 and beyond using the expense inflation factors (Table 2-3).

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 26 Table 3-2: Projected Water O&M Expenses

A B C D E
Line Projected O&M Expenses FY 2026 FY 2027 FY 2028 FY 2029 1 Water Service (501)
2 Salaries and Benefits $9,697,424 $9,988,346 $10,287,997 $10,596,637 3 Services - Power $2,568,963 $2,646,032 $2,725,413 $2,807,175 4 Services $12,135,086 $12,476,754 $12,828,518 $13,190,677 5 Supplies - Purchased Water $294,770 $300,665 $306,678 $312,812 6 Supplies - Treatment $651,500 $664,530 $677,821 $691,377 7 Supplies $3,073,733 $3,135,208 $3,197,912 $3,261,870
8 Total - Water Service (501) $28,421,475 $29,211,535 $30,024,338 $30,860,548

3.3. Debt Service
The City currently has two existing debt issues for the water utility. Table 3-3 shows the annual principal and interest payments for the existing debts.

Table 3-3: Existing Water Debt Service

A B C D E
Line Existing Debt Service FY 2026 FY 2027 FY 2028 FY 2029 1 Safe Drinking Water (Tate)
2 Principal $372,727 $189,641 $0 $0
3 Interest $10,992 $2,219 $0 $0
4 Total - Safe Drinking Water (Tate) $383,719 $191,859 $0 $0 5 6 Hinkley SRF Loan
7 Principal $525,439 $538,666 $552,226 $566,127
8 Interest $127,678 $114,450 $100,890 $86,989
9 Total - Hinkley SRF Loan $653,116 $653,116 $653,116 $653,116 10 11 Total - Existing Debt Service $1,036,835 $844,976 $653,116 $653,116 The City plans to debt finance the Sunset Reservoir project with a $26 million bond. The projected debt service for that bond is $1,526,480 per year starting in FY 2029.

3.4. Capital Projects
City staff provided the Capital Improvement Plan (CIP) for the water utility for the study period.

Table 3-4 shows the CIP costs for the study period, which per the City are already inflated.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 27 Table 3-4: Inflated Water Capital Projects

A B C D E
Line Capital Projects (Inflated) FY 2026 FY 2027 FY 2028 FY 2029 1 Replacement
2 Joint Utility Lab (Design, Bidding & Construction Support) $200,000 $200,000 $200,000 $0 3 Joint Utility Lab Phases (Construction) $1,800,000 $1,500,000 $1,500,000 $0 4 CIP Waterline Replacements (Construction) $4,500,000 $4,500,000 $4,500,000 $4,500,000 *5 Highline Replacement $0 $0 $0 $0
*6 AWIA Security Fencing (HWTP, TWTP, HAWC, Maguet 2, E.L. 6) $0 $0 $0 $0 *7 Fixed Generator - 5th Ave., Country Club, Texas St., Agate (Equipment) $0 $0 $0 $0 8 Fixed Generator - 5th Ave., Country Club, Texas St., Agate (Construction) $3,500,000 $0 $0 $0 *9 Hinckley WTP Sludge Press (Equipment Purchase) $0 $0 $0 $0 10 Hinckley WTP Sludge Press (Construction) $0 $3,815,000 $0 $0 11 Hinckley WTP Parking Improvements (Design) $225,000 $0 $0 $0 12 Hinckley WTP Parking Improvements (Construction) $0 $750,000 $0 $0 13 Well 38 & 39 Wellhead Treatment System (Construction) $0 $9,000,000 $0 $0 14 Drill New Well (Construction) $0 $3,000,000 $0 $0
15 Sunset Reservoir (Design) $1,305,910 $0 $0 $0
16 Sunset Reservoir (Construction) $0 $0 $0 $10,000,000 17 Tate Transmission Line Replacement (Phase 1) $0 $0 $0 $8,000,000 **18 Tate Transmission Line Replacement (Phase 2) $0 $0 $0 $0 **19 Tate WTP Upgrades (Design) $0 $0 $0 $0
**20 Tate WTP Upgrades (Construction) $0 $0 $0 $0
21 Total - Replacement $11,530,910 $22,765,000 $6,200,000 $22,500,000 * Completed
** Future projects beyond FY 2029
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 28 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) through rates, reserves and debt. The inflated project costs (Line 3) are the total project costs (Table 3-4, Line 21).

Table 3-5: Proposed Water Capital Financing Plan

A B C D E
Line Capital Financing Plan FY 2026 FY 2027 FY 2028 FY 2029 1 CIP to Spend 100% 100% 100% 100%
2 3 Inflated Project Costs $11,530,910 $22,765,000 $6,200,000 $22,500,000 4 5 Bond Proceeds $0 $0 $0 $26,000,000
6 Balance $0 $0 $0 $26,000,000
7 8 Capital Financing
9 Rate Funded $11,530,910 $22,765,000 $6,200,000 $12,500,000 10 Bond Funded $0 $0 $0 $10,000,000
11 12 Total - Capital Financing $11,530,910 $22,765,000 $6,200,000 $22,500,000

3.5. Proposed Financial Plan
Table 3-6 shows the proposed revenue adjustments for the study period, which will allow the City to fund all necessary operating expenses with debt financing of major capital costs.

Table 3-6: Proposed Water Revenue Adjustments
A B C
Line Fiscal Year Revenue
Adjustment Month Effective
1 FY 2027 2.5% January
2 FY 2028 2.5% July
3 FY 2029 2.5% July
Table 3-7 shows the projected water financial plan with the proposed revenue adjustments from FY 2027 through FY 2029. The net cash flow (Line 22) is negative for all years (except for FY 2029, which includes debt proceeds) as the water utility draws down cash reserves to fund capital projects. The ending cash balance (Line 27) is drawn down; however, it remains positive throughout the study period and exceeds the required target. It should be noted that revenue adjustments are required to ensure the ability to meet expenses in future years based on the City’s projected capital improvement program.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 29 Table 3-7: Projected Water Financial Plan (Proposed Revenue Adjustments)

A B C D E
Line Water Financial Plan FY 2026 FY 2027 FY 2028 FY 2029 1 Revenues
2 Rate Revenues $31,881,718 $32,041,127 $32,201,333 $32,362,339 3 Revenue Adjustments $0 $400,514 $1,630,192 $2,488,360 4 Investment Income $2,018,746 $1,477,396 $1,172,291 $1,318,224 5 Other Revenues $1,763,500 $1,772,318 $1,781,179 $1,790,085 6 Debt Proceeds $ $0 $0 $26,000,000
7 Total - Revenues $35,663,964 $35,691,354 $36,784,995 $63,959,009 8 9 O&M Expenses
10 Salaries and Benefits $9,697,424 $9,988,346 $10,287,997 $10,596,637 11 Services - Power $2,568,963 $2,646,032 $2,725,413 $2,807,175 12 Services $12,135,086 $12,476,754 $12,828,518 $13,190,677 13 Supplies - Purchased Water $294,770 $300,665 $306,678 $312,812 14 Supplies - Treatment $651,500 $664,530 $677,821 $691,377 14 Supplies $3,073,733 $3,135,208 $3,197,912 $3,261,870 15 Total - O&M Expenses $28,421,475 $29,211,535 $30,024,338 $30,860,548 16 Debt and Capital
18 Existing Debt Service $1,036,835 $844,976 $653,116 $653,116 17 Proposed Debt Service $0 $0 $0 $1,526,480
18 Rate Funded Capital Projects $11,530,910 $22,765,000 $6,200,000 $12,500,000 19 Debt Funded Capital Projects $0 $0 $0 $10,000,000
20 DIF Funded Capital Projects $0 $0 $0 $0
21 Total - Debt and Capital $12,567,745 $23,609,976 $6,853,116 $24,679,596 22 Net Cash Flow ($5,325,255) ($17,130,156) ($92,459) $8,418,865 23 Net Operating Revenue $7,242,490 $6,479,820 $6,760,657 $7,098,461 24 Calculated Debt Coverage 6.99 7.67 10.35 3.26
25 Required Debt Coverage 1.25 1.25 1.25 1.25
26 Beginning Balances $56,297,272 $50,972,017 $33,841,861 $33,749,402 27 Ending Balances $50,972,017 $33,841,861 $33,749,402 $42,168,267 28 Reserve Target $19,604,551 $19,195,884 $16,546,085 $16,755,137 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 30 Figure 3-1 shows the proposed water capital financing plan in graphical format, based on the capital financial plan shown in Table 3-5.

Figure 3-1: Proposed Water Capital Financing Plan
Figure 3-2 shows the proposed financial plan in graphical format with the revenue adjustments in Table 3-6.

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 3-2: Projected Water Financial Plan (Proposed Revenue Adjustments) City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 31 The City’s current policy is to target operating reserves at 25% of the operating expenses and the capital reserve at 100% of the 5-yr rolling average rate funded CIP. Figure 3-3 shows the projected water fund balances with the proposed revenue adjustments in Table 3-6. 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 unrestricted reserves are being drawn down through the study period, the ending balance remains at or above target through FY 2029.

Figure 3-3: Projected Water Fund Balances (Proposed Revenue Adjustments) $0
$10
$20
$30
$40
$50
$60
FY 2026 FY 2027 FY 2028 FY 2029
Millions
Water - Ending Balances
Cash Balance Reserve Target
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 32

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 the 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 ratemaking year. The test year of this study is FY 2027. Table 4-1shows the revenue requirement calculations for the water utility. The revenue requirements (Lines 2-4) are equal to the O&M expense and debt and capital costs for FY 2027 (Table 3-7, Column C ). The revenues from other sources (Lines 8-12), also known as nonrate revenues or revenue offsets, are equal to all non-rate revenues (Table 3-7, Column C). The adjustment for cash from/(to) reserves (Line 14) is equal to the negative value of net cash flow (Table 3-7, Column C), which excludes the source acquisition fund revenue. Line 15 reflects that revenue adjustments occur partway through the first year.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 33 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 $29,211,535 $0 $29,211,535
3 Capital $0 $22,765,000 $22,765,000
4 Debt $844,976 $844,976
5 Total - Revenue Requirements $29,211,535 $23,609,976 $52,821,510 6 Revenue from Other Sources
7 Investment Income (501 & 508) $486,443 $0 $486,443
8 Investment Income (503) $0 $990,953 $990,953
9 Water Service (501) $1,058,768 $0 $1,058,768
10 Water Capital Improvement (509) $0 $653,250 $653,250 11 B Contract Water Revenue $60,300 $0 $60,300
12 Total - Revenue from Other Sources $1,605,511 $1,644,203 $3,249,713 13 Less Adjustments
14 Cash from Reserves $0 $17,130,156 $17,130,156
15 Midyear Increase ($400,514) $0 ($400,514)
16 Subtotal - Adjustments $0 $17,130,156 $16,729,642
17 Revenue to be Recovered from Rates $28,006,538 $4,835,617 $32,842,155

4.3. Allocation of Functionalized Net Revenue
Requirements to Cost Components
After functionalizing the net revenue requirements, the next step is to allocate the functionalized net revenue requirements to the following cost components.
• Base–fixed costs associated with providing service under average demand conditions • Peaking (Max Day and Peak Hour) – costs associated with meeting demand in excess of average use • Customer Service– the costs associated with meter reading, billing, and customer service • Equivalent Meters– costs associated with meter capacity, maintenance, and replacement

4.3.1. Peaking Factors
Water demand varies from parcel to parcel. Water systems have to be designed to meet the highest levels of demand placed on the system. Components of the water system are therefore oversized compared to the requirement for average demands. For example, reservoirs are designed to meet maximum day requirements, and distribution lines are designed to meet instantaneous peak demands or peak hour demands. Therefore, peaking plays a significant part in the costs of operating and constructing a water system. Demonstrating that rates are proportional to the demands and associated costs that customer classes place on the utility system is critical to ensure that rates align with the intent of Proposition 218. The capital and operating costs of the system must then be allocated to customer classes in proportion to the demands they place on the system. For costs recovered through a water utility’s fixed meter charge, costs are allocated either over all accounts or by meter size, depending on the type of expense. Variable costs are allocated among customer classes based on the demands they place on the water system and the cost of water supplies.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 34 One of the major factors in cost allocation is allocation of peaking costs. To do so, we must identify systemwide 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. This method is consistent with AWWA Manual M1 and is widely used in the water industry for cost-of-service analyses. Importantly, it ensures that average and below-average users pay rates that reflect the level of capital investment necessary to serve them.

The system-wide factors for maximum day and maximum hour were provided in Section 4.1 of the City’s 2022 Water Master Plan. 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
The system-wide peaking factors from Table 4-2 are used to derive the cost causation component allocation base, maximum day, and maximum hour percentages shown 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 1.7. 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 2.75
» 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 peak 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 the average daily demand during the year. These allocation bases are used to spread the functionalized costs for reservoir, transmission, treatment, and distribution functions to the cost causation components.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 35 Table 4-3: Average and Peaking Cost Causation 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 causation component. The cost causation components for water include Base, Max Day, Max Hour, Meters, Customer, Fire Protection, Conservation and General.

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). 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 multiplying each cost component's percentage allocation by total operating costs.

Adjustments for fire and meters were made to max day and max hour. Reservoirs and distribution lines are designed for max day plus fire flow and max hour plus fire flow, respectively. For purposes of allocating costs to fire flow for expenses related to these two assets, we need to modify the allocation factors shown above in Table 4-3 to include fire flow. For the large number of fire hydrants and private fire lines in the City, we have used the ISO standards to allocate 15% of the costs to fire and an additional 5% to meter for max day, and 15% to meters for distribution-related max hour costs. This ensures that larger meters, which would need more fire capacity, are paying their fair share of fire hydrant costs.

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.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 36 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% 10% 0% 0% 90% 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 $926,202 $0 $0 $8,335,822 $9,262,025 15 Water Engineering Max Hour Fire $333,527 $234,370 $349,753 $196,639 $0 $196,639 $0 $0 $1,310,929 16 Water Production & Operations - General Max Day $3,324,898 $2,336,415 $0 $0 $0 $0 $0 $0 $5,661,313 17 Water Production Maintenance Max Day $2,047,073 $1,438,484 $0 $0 $0 $0 $0 $0 $3,485,557 18 Water Treatment - HTWTP Max Day $543,659 $382,031 $0 $0 $0 $0 $0 $0 $925,690 19 Water Treatment - HHWTP Max Day $750,848 $527,623 $0 $0 $0 $0 $0 $0 $1,278,471 20 Water Quality - General Base $504,585 $0 $0 $26,557 $0 $0 $0 $0 $531,142 21 Water Distribution - General Max Hour Fire $1,559,500 $1,095,865 $1,635,368 $919,443 $0 $919,443 $0 $0 $6,129,619 22 Water Conservation Program Conservation $0 $0 $0 $0 $0 $0 $498,725 $0 $498,725 23 B' Contract (Reimbursable) Base $103,121 $0 $0 $5,427 $0 $0 $0 $0 $108,548 24 B' Contract (City) Base $13,667 $0 $0 $719 $0 $0 $0 $0 $14,387 25 South Mountain Water (Reimbursable) Base $4,872 $0 $0 $256 $0 $0 $0 $0 $5,129 26 Total O&M Expenses $9,185,751 $6,014,788 $1,985,121 $1,149,043 $926,202 $1,116,082 $498,725 $8,335,822 $29,211,535 27 O&M Allocation 31% 21% 7% 4% 3% 4% 2% 29% 100%
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 37 Table 4-5: Water Asset Allocation

A B C D E F G H I J
Line Assets Allocation Allocation Basis Base Max Day Max Hour Meters Customer Fire
Protection General Total
1 Source of Supply Base 95% 0% 0% 5% 0% 0% 0% 100%
2 Wells Max Day 59% 41% 0% 0% 0% 0% 0% 100%
3 Pumping Max Day 59% 41% 0% 0% 0% 0% 0% 100%
4 Treatment Max Day 59% 41% 0% 0% 0% 0% 0% 100%
5 Transmission Max Day Fire 47% 33% 0% 5% 0% 15% 0% 100% 6 Distribution Max Hour Fire 25% 18% 27% 15% 0% 15% 0% 100% 7 Storage Max Day Fire 47% 33% 0% 5% 0% 15% 0% 100%
8 Meters Meters 0% 0% 0% 100% 0% 0% 0% 100%
9 Fire Protection Fire Service 0% 0% 0% 0% 0% 100% 0% 100% 10 Customer Billing Billing & Customer Service 0% 0% 0% 0% 100% 0% 0% 100% 11 Land Max Day Fire 47% 33% 0% 5% 0% 15% 0% 100%
12 Building and Improvements General 0% 0% 0% 0% 11% 0% 89% 100% 13 Rolling Stock (Vehicles) Base 95% 0% 0% 5% 0% 0% 0% 100% 14 General Plant Max Day 59% 41% 0% 0% 0% 0% 0% 100%
15 16 Source of Supply Base $9,387,387 $0 $0 $494,073 $0 $0 $0 $9,881,460 17 Wells Max Day $1,504,123 $1,056,951 $0 $0 $0 $0 $0 $2,561,074 18 Pumping Max Day $329,162 $231,303 $0 $0 $0 $0 $0 $560,466 19 Treatment Max Day $42,208 $29,660 $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 $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 $8,804,388 22 Storage Max Day Fire $2,815,532 $1,978,482 $0 $299,626 $0 $898,878 $0 $5,992,518 23 Meters Meters $0 $0 $0 $0 $0 $0 $0 $0
24 Fire Protection Fire Service $0 $0 $0 $0 $0 $0 $0 $0 25 Customer Billing Billing & Customer Service $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 $7,039,545 27 Building and Improvements General $0 $0 $0 $0 $1,562,036 $0 $12,638,289 $14,200,325 28 Rolling Stock (Vehicles) Base $383,718 $0 $0 $20,196 $0 $0 $0 $403,913 29 General Plant Max Day $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 $12,638,289 $111,714,296 31 Asset Allocation 44% 25% 2% 5% 1% 11% 11% 100%

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 buildings and other structure sprinkler systems for fire suppression within private improvements.

To determine the share of total fire costs attributable to each, Raftelis performed an analysis of the public hydrants and private fire lines.

Table 4-6 shows the basis for 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" 38.32 155 5,933
5 6" 111.31 153 17,002
6 8" 237.21 185 43,871
7 10" 426.58 129 54,961
8 12" 689.04 0 0
9 Total Fire Lines 632 121,831
10 25%
11 Public Fire Hydrant Size
12 6" 111.31 3,236 360,202
13 75%
2 Hazen-Williams equation via AWWA M1 Manual

4.6. Final Cost Allocation of Revenue Requirement
The total revenue recoverable from each cost causation component through water rates is shown in Table 4-7 using the revenue requirement from Table 4-1 the O&M and Capital allocations in Table 4-4 and 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 31 percent of Peaking costs (Max Day plus Max Hour) are allocated to the meter charge to cover the fixed costs and preserve the utility’s current fixed revenue recovery of 31 percent.

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 $9,185,751 $6,014,788 $1,985,121 $1,149,043 $926,202 $1,116,082 $498,725 $8,335,822 $0 $29,211,535 2 Capital Revenue Requirement $2,131,085 $1,200,313 $101,677 $242,246 $61,467 $545,627 $0 $553,202 $0 $4,835,617 3 Revenue Offset -$682,626 $0 $0 -$35,928 $0 $0 $0 $0 -$486,443 -$1,204,997 4 Total Cost of Service $10,634,210 $7,215,100 $2,086,798 $1,355,361 $987,669 $1,661,709 $498,725 $8,889,024 -$486,443 $32,842,155 5 Allocation of General Cost $4,030,707 $2,734,755 $790,963 $513,725 $0 $629,841 $189,033 -$8,889,024 $0 $0 6 Allocation to Public Fire $0 $0 $0 $1,712,374 $0 -$1,712,374 $0 $0 $0 $0 7 Allocation of Base to Meter -$733,246 $0 $0 $733,246 $0 $0 $0 $0 $0 $0 8 Allocation of Peak to Meter $0 -$3,084,455 -$892,106 $3,976,561 $0 $0 $0 $0 $0 $0 9 Total Adjusted Cost of
Service $13,931,671 $6,865,400 $1,985,656 $8,291,267 $987,669 $579,176 $687,758 $0 -$486,443 $32,842,155 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 40

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 2027 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 2027 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 3,250,414 8,905
3 Tier 2 285,707 783
4 Tier 3 4,716,622 12,922
5 Non-Building Water
Usage
6 Tier 1 77,000 211
7 Tier 2 1,131,591 3,100
8 Total 9,461,335 25,921
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 Bimonthly Bills
1 5/8" 181 1.00 181 1,085
2 3/4" 8,375 1.43 11,935 50,251
3 1" 12,113 2.25 27,254 72,676
4 1 1/2" 787 4.25 3,343 4,720
5 2" 783 6.40 5,014 4,701
6 3" 79 11.25 888 474
7 4" 55 17.50 964 330
8 6" 28 32.50 912 168
9 8" 14 48.00 648 81
10 10" 0 114.00 0 0
11 12" 1 150.00 156 6
12 Total 22,415 51,294 134,492
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 41 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 Bimonthly Bills
1 2" 10 6.19 64 62
2 3" 0 17.98 0 0
3 4" 155 38.32 5,933 929
4 6" 153 111.31 17,002 916
5 8" 185 237.21 43,871 1,110
6 10" 129 426.58 54,961 773
7 12" 0 689.04 0 0
8 Total 632 121,831 3,790
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 in FY 2025 for the City’s customers. 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.

Utilizing the final cost of service from Table 4-11 as the numerator and Table 4-8, Table 4-9, Table 4-10, and Table 4-11, as the denominators allows us to derive the unit costs of service in 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.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 42 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 3,250,414 8,905 1.33 11,812 2,907 2.14 19,086 7,275 3 Tier 2 285,707 783 1.48 1,162 379 2.40 1,877 715
4 Tier 3 4,716,622 12,922 2.41 31,081 18,158 3.89 50,222 19,142 5 Non-Building
Water Usage
6 Tier 1 77,000 211 1.55 326 115 2.50 527 201
7 Tier 2 1,131,591 3,100 2.26 7,000 3,900 3.65 11,311 4,311 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 $13,931,671 $6,865,400 $1,985,656 $8,291,267 $987,669 $579,176 $687,758 ($486,443) 2 Units of
Service 9,461,335 25,458 31,643 307,767 138,283 730,987 4,716,622 3,250,414 3 Unit of
Measure ccf ccf/day ccf/day
equiv.
meter/yr bills/yr equiv. line/yr ccf
4 Unit Cost $1.47 $269.67 $62.75 $26.94 $7.14 $0.79 $0.15 ($0.15) City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 43

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 Table 4-12. This is the end goal of a cost-of-service analysis and yields the cost to serve each class. 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 the 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 Table 4-12 are multiplied by the respective units of service for each class (Table 4-8, Table 4-9, Table 4-10, and 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.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 44 Table 4-13: Derivation of Costs to Serve Each Class

A B C D E F G H I
Line
Customer
Class Base Max Day Max Hour Meters Customer
Fire
Protection Conservation Offset
1 Building
Water Usage $8,291,267 $960,596
2 Tier 1 $4,786,185 $783,813 $456,485 ($486,443)
3 Tier 2 $420,699 $102,140 $44,889
4 Tier 3 $6,945,155 $4,896,793 $1,201,160 $687,758
5 Non-Building
Water Usage
6 Tier 1 $113,382 $31,042 $12,602
7 Tier 2 $1,666,251 $1,051,612 $270,520
8 Fire
Protection $0 $0 $0 $27,073 $579,176
9 Total Cost of
Service $13,931,671 $6,865,400 $1,985,656 $8,291,267 $987,669 $579,176 $687,758 ($486,443) City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 45

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 2027)

A B C D E F
Line Bi-Monthly
Service Charge
Capacity
Ratio Meter Customer Proposed Charge Current Charge
1 5/8" 1.00 $26.94 $7.14 $34.09 $33.60
2 3/4" 1.43 $38.39 $7.14 $45.54 $44.90
3 1" 2.25 $60.62 $7.14 $67.76 $66.81
4 1 1/2" 4.25 $114.50 $7.14 $121.64 $119.96
5 2" 6.40 $172.42 $7.14 $179.56 $177.10
6 3" 11.25 $303.08 $7.14 $310.22 $305.97
7 4" 17.50 $471.45 $7.14 $478.60 $472.05
8 6" 32.50 $875.55 $7.14 $882.70 $870.64
9 8" 48.00 $1,293.12 $7.14 $1,300.27 $1,282.51
10 10" 114.00 $3,071.17 $7.14 $3,078.32 $3,036.30
11 12" 150.00 $4,041.01 $7.14 $4,048.16 $3,992.91

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).

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 46 Table 4-15: Proposed Bi-Monthly Fire Service Charge (FY 2027)

A B C D E F
Line Bi-Monthly Fire Service
Charge
Capacity
Ratio Fire Customer Proposed Charge
Current
Charge
1 2" 6.19 $4.90 $7.14 $12.05 $12.05
2 3" 17.98 $14.25 $7.14 $21.39 $21.63
3 4" 38.32 $30.36 $7.14 $37.51 $38.14
4 6" 111.31 $88.19 $7.14 $95.34 $97.39
5 8" 237.21 $187.94 $7.14 $195.09 $199.61
6 10" 426.58 $337.99 $7.14 $345.14 $353.35
7 12" 689.04 $545.94 $7.14 $553.09 $566.44

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 3,250,414 $1,240,298 $0.38
3 Tier 2 285,707 $147,029 $0.51
4 Tier 3 4,716,622 $6,097,952 $1.29
5 Non-Building Water
Usage
6 Tier 1 77,000 $43,644 $0.57
7 Tier 2 1,131,591 $1,322,132 $1.17

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 purchase costs (provided by City staff) on Line 4 are divided by the estimated potable demand (Line 3) to City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 47 calculate the unit costs in Line 6. Table 4-18 shows the 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 2,317,185 2,221,738 4,376,777 545,634 9,461,335
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 $0.19 $0.33 $0.37 $0.24
The tiers were designed to provide low-cost water from the lowest cost source, which is the Mill Creek (MC) surface water. Since the wildfires of 2024, this source does not provide all the water used in Tier 1 anymore.

However, the turbidity levels of Mill Creek surface water are returning to normal, and the City expects to return to typical historical use of this water source. Therefore, the City has decided to retain that tier definition to provide indoor water use. The second tier basically provides water from the Santa Ana River (SAR) and provide the average water use for irrigation. Tier 3 then uses any remaining water from SAR, groundwater and State Water Project Water.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 48 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 3,250,414 34% 2,021,188 1,229,226 0 0 3,250,414 368,169 $0.11 3 Tier 2 27 285,707 3% 0 285,707 0 0 285,707 55,525 $0.19 4 Tier 3 Over 27 4,716,622 50% 0 423,000 3,817,688 475,935 4,716,622 1,524,533 $0.32 5 Non-Building
Water Usage
6 Tier 1 27 77,000 1% 77,000 0 0 0 77,000 4,925 $0.06
7 Tier 2 Over 27 1,131,591 12% 218,997 283,805 559,090 69,699 1,131,591 280,387 $0.25 8 Total Potable
Use 9,461,335 100% 2,317,185 2,221,738 4,376,777 545,634 9,461,335 2,233,539 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 49

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 2027)

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 $1.24 $0.38 $0.00 ($0.15) $1.59
3 Tier 2 27 $0.19 $1.24 $0.51 $0.00 $0.00 $1.95
4 Tier 3 Over 27 $0.32 $1.24 $1.29 $0.15 $0.00 $3.00
5 Non-Building Water Usage
6 Tier 1 27 $0.06 $1.24 $0.57 $0.00 $0.00 $1.87
7 Tier 2 Over 27 $0.25 $1.24 $1.17 $0.00 $0.00 $2.66

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 2027 test year are increased across the board by the revenue adjustments in Table 3-6.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 50 Table 4-20: Proposed Bi-Monthly Service Charges

A B C D E
Line Bi-Monthly Water Service
Charges
Current
Rates
January
2027 July 2027 July 2028
1 Water Service
2 5/8" $33.60 $34.09 $34.95 $35.83
3 3/4" $44.90 $45.54 $46.68 $47.85
4 1" $66.81 $67.76 $69.46 $71.20
5 1 1/2" $119.96 $121.64 $124.69 $127.81
6 2" $177.10 $179.56 $184.05 $188.66
7 3" $305.97 $310.22 $317.98 $325.93
8 4" $472.05 $478.60 $490.57 $502.84
9 6" $870.64 $882.70 $904.77 $927.39
10 8" $1,282.51 $1,300.27 $1,332.78 $1,366.10
11 10" $3,036.30 $3,078.32 $3,155.28 $3,234.17
12 12" $3,992.91 $4,048.16 $4,149.37 $4,253.11
13 14 Fire Protection Service
15 2" $12.05 $12.05 $12.36 $12.67
16 3" $21.63 $21.39 $21.93 $22.48
17 4" $38.14 $37.51 $38.45 $39.42
18 6" $97.39 $95.34 $97.73 $100.18
19 8" $199.61 $195.09 $199.97 $204.97
20 10" $353.35 $345.14 $353.77 $362.62
21 12" $566.44 $553.09 $566.92 $581.10
22 23 Fire Hydrant Construction
Service Charge
24 All Meters $305.97 $313.62 $321.47 $329.51
Table 4-21: Proposed Water Usage Rates

A B C D E F
Line Water Usage Rates
BiMonthly
Tiers
Current
Rates
January
2027 July 2027 July 2028
1 Building Water Usage
2 Tier 1 16 $1.61 $1.59 $1.63 $1.68
3 Tier 2 27 $1.90 $1.95 $2.00 $2.05
4 Tier 3 Over 27 $2.85 $3.00 $3.08 $3.16
5 6 Non-Building Water Usage
7 Tier 1 27 $1.81 $1.87 $1.92 $1.97
8 Tier 2 Over 27 $2.85 $2.66 $2.73 $2.80
9 10 Fire Protection Water Usage
11 All Units $2.85 $2.93 $3.01 $3.09
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 51

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 2024, 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

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, 2025.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 52 Table 5-1: Projected Wastewater Customer Accounts and Usage

A B C D E
Line Wastewater Customer Data FY 2026 FY 2027 FY 2028 FY 2029 1 Residential (dwelling units)
2 Single Family 16,844 16,937 17,030 17,123
3 Multiple Family 10,127 10,183 10,239 10,295
4 Total - Residential 26,971 27,119 27,268 27,418
5 6 Non-Residential (ccf)
7 Low Strength I 44,333 44,576 44,821 45,067
8 Low Strength II 415,541 417,821 420,114 422,419
9 Low Strength III 90,314 90,810 91,308 91,809
10 Medium Strength I 26,341 26,486 26,631 26,777
11 Medium Strength II 38,299 38,509 38,721 38,933
12 Medium Strength III 19,797 19,906 20,015 20,125
13 High Strength I 10,329 10,386 10,443 10,500
14 High Strength II 137,263 138,016 138,774 139,535
15 Large Volume User 33,481 33,664 33,849 34,035
16 Total - Non-Residential 815,699 820,175 824,675 829,200 17 18 Schools (students)
19 Elementary 4,875 4,901 4,928 4,955
20 Secondary & High 8,234 8,279 8,325 8,371
21 Total - Schools 13,109 13,181 13,253 13,326
Table 5-2: Current Bi-Monthly Wastewater Service Charges and Usage Rates A B
Line Current Wastewater Rates FY 2026
1 Bi-Monthly Residential Rate ($/dwelling unit)
2 Single Family $72.65
3 Multiple Family $57.64
4 5 Non-Residential Rate ($/ccf water)
6 Low Strength I $3.11
7 Low Strength II $3.76
8 Low Strength III $4.39
9 Medium Strength I $5.04
10 Medium Strength II $5.68
11 Medium Strength III $6.33
12 High Strength I $6.98
13 High Strength II $7.62
14 Large Volume User $4.39
15 16 Bi-Monthly Schools Rate ($/100 students)
17 Elementary $157.43
18 Secondary & High $262.38
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 53

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

A B C D E
Line Calculated Rate Revenues FY 2026 FY 2027 FY 2028 FY 2029 1 Residential (dwelling units)
2 Single Family $7,342,382 $7,382,681 $7,423,200 $7,463,942 3 Multiple Family $3,502,352 $3,521,567 $3,540,886 $3,560,312 4 Total - Residential $10,844,734 $10,904,247 $10,964,086 $11,024,254 5 6 Non-Residential (ccf)
7 Low Strength I $137,875 $138,632 $139,393 $140,158
8 Low Strength II $1,562,435 $1,571,008 $1,579,628 $1,588,296 9 Low Strength III $396,480 $398,655 $400,843 $403,042
10 Medium Strength I $132,761 $133,490 $134,222 $134,958 11 Medium Strength II $217,539 $218,732 $219,932 $221,139 12 Medium Strength III $125,318 $126,005 $126,697 $127,392 13 High Strength I $72,096 $72,492 $72,890 $73,290
14 High Strength II $1,045,945 $1,051,684 $1,057,454 $1,063,257 15 Large Volume User $146,980 $147,786 $148,597 $149,412 16 Total - Non-Residential $3,837,428 $3,858,484 $3,879,656 $3,900,944 17 18 Schools (students)
19 Elementary $46,044 $46,297 $46,551 $46,806
20 Secondary & High $129,631 $130,342 $131,057 $131,776 21 Total - Schools $175,674 $176,638 $177,608 $178,582
22 23 Total - Non-Residential and
Schools $4,013,103 $4,035,123 $4,057,263 $4,079,526
24 Total Revenue at Current Rates $14,857,837 $14,939,370 $15,021,350 $15,103,780 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 54

5.4. Projected Revenues at Current Rates
Table 5-4 shows the all projected wastewater revenues for the study period. City staff provided actual revenues for FY 2025 and budgeted revenues for FY 2026. The wastewater rate revenues (Lines 3-4) from FY 2027 and beyond are from the rate revenue calculations (Table 5-3, Lines 4 and 23). Investment income (Line 8) is 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).

Table 5-4: Projected Wastewater Revenues at Current Rates

A B C D E
Line Projected Revenues FY 2026 FY 2027 FY 2028 FY 2029 1 Wastewater Service (521)
2 Cost Recover/Reimb Expenditure $1,500 $1,508 $1,515 $1,523 3 Sewer Residential $10,844,734 $10,904,247 $10,964,086 $11,024,254 4 Sewer Non-Residential $4,013,103 $4,035,123 $4,057,263 $4,079,526 5 Recycled Water Usage $375,000 $376,875 $378,759 $380,653 6 Septage Charge $55,000 $55,275 $55,551 $55,829
7 Frontage Charge $30,000 $30,150 $30,301 $30,452
8 Investment Income $565,512 $446,861 $355,289 $329,257 9 Total - Wastewater Service (521) $15,884,849 $15,850,038 $15,842,766 $15,901,494

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 2025 and budgeted O&M expenses for FY 2026, which are escalated for future years of the study based on the expense inflation factors (Table 2-3).

Table 5-5: Projected Wastewater O&M Expenses

A B C D E
Line Projected O&M Expenses FY 2026 FY 2027 FY 2028 FY 2029 1 Wastewater Service (521)
2 Salaries and Benefits $5,245,925 $5,352,199 $5,461,661 $5,574,407 3 Services - Power $1,250,000 $1,287,500 $1,326,125 $1,365,909 4 Services $6,467,494 $6,654,692 $6,847,506 $7,046,104
5 Supplies - Treatment $1,252,500 $1,315,125 $1,380,881 $1,449,925 6 Supplies $1,231,672 $1,268,622 $1,306,681 $1,345,881
7 Total - Wastewater Service
(521) $15,447,591 $15,878,138 $16,322,854 $16,782,226
8 Total - O&M Expenses $15,447,591 $15,878,138 $16,322,854 $16,782,226 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 55

5.6. Debt Service
The City currently has no existing debt issue for the wastewater utility. To fund the wastewater capital program, the City has obtained an SRF loan of $ 45 million. 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 5-6. Because the SRF loan payments start after completion of the project it is funding, repayment will start in FY 2029.

Table 5-6: Proposed Wastewater Debt Service

A B C D E
Line Proposed Debt Service FY 2026 FY 2027 FY 2028 FY 2029 1 Proposed SRF Loan $0 $45,000,000 $0 $0
2 Loan Proceeds $0 $45,000,000 $0 $0
3 4 Annual Debt Service $1,927,962
5 Total - Proposed Debt
Service $0 $0 $0 $1,927,962

5.7. Capital Projects
City staff provided the CIP for the wastewater utility for the study period. Table 5-7 shows the CIP costs for the study period, which were provided by the client in inflated dollars. The CIP provided consists of projects totaling $55.1 million for the three years FY 2027 through FY 2029. Projects are funded through a combination of wastewater rate revenues, cash reserves, DIF revenues, and debt proceeds.

Table 5-7: Inflated Wastewater Capital Projects

A B C D E
Line Capital Projects (Inflated) FY 2026 FY 2027 FY 2028 FY 2029 1 Replacement
2 CIP Sewerline Replacement $1,000,000 $1,000,000 $1,000,000 $1,000,000 3 Citywide Sewer Manhole Rehabilitation $500,000 $500,000 $500,000 $500,000 4 Alabama Septage Pond Remediation $0 $650,000 $50,000 $50,000 5 WWTP Drying bed leachate remediation $0 $0 $500,000 $0 6 Joint Utility Lab (Design, Bidding &
Construction Support) $200,000 $200,000 $200,000 $0
7 Joint Utility Lab Phases (Construction) $1,800,000 $1,500,000 $1,500,000 $0 8 WWTP Rehabilitation - Phase 2 (Construction) $1,000,000 $45,000,000 $0 $0 9 Total - Replacement $4,500,000 $48,850,000 $3,750,000 $1,550,000 10 11 Expansion
12 Pipeline Upsizing - Cajon St (Cypress to Fern) $0 $0 $0 $827,000 13 Pipeline Upsizing - Cajon St @ Citrus Avenue $0 $0 $0 $141,000 14 Total - Expansion $0 $0 $0 $968,000
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 56 Table 5-8 shows the proposed wastewater capital financing plan based on the CIP Table 5-7. 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 5-6, Line 2).

Table 5-8: Proposed Wastewater Capital Financing Plan

A B C D E
Line Capital Financing Plan FY 2026 FY 2027 FY 2028 FY 2029 1 CIP to Spend 100% 100% 100% 100%
2 3 Inflated Project Costs $4,500,000 $48,850,000 $3,750,000 $1,550,000 4 5 Capital Financing
6 Rate Funded $4,500,000 $3,850,000 $3,750,000 $1,550,000 7 Bond Funded $0 $0 $0 $0
8 Loan Funded $0 $45,000,000 $0 $0

5.8. Proposed Financial Plan
Table 5-9 shows the proposed revenue adjustments necessary to maintain the financial sufficiency of the City’s wastewater utility. The revenue adjustments will be effective starting January 2027 and in July each year thereafter.

Table 5-9: Proposed Wastewater Revenue Adjustments
A B C
Line Fiscal Year Revenue
Adjustment Month Effective
1 FY 2027 7.0% January 2027
2 FY 2028 7.0% July 2027
3 FY 2029 7.0% July 2028
Table 5-10 shows the projected wastewater financial plan with the proposed revenue adjustments (Table 5-9).

The net cash flow (Line 25) 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 29) and have positive ending balances (Line 32).

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 57 Table 5-10: Projected Wastewater Financial Plan (Proposed Revenue Adjustments)

A B C D E
Line Wastewater Financial Plan FY 2026 FY 2027 FY 2028 FY 2029 1 Revenues
2 Rate Revenues $14,912,837 $14,994,645 $15,076,901 $15,159,609 3 Revenue Adjustments $0 $524,813 $2,184,643 $3,411,564 4 Investment Income $416,893 $314,286 $220,760 $207,562 5 Sale of Surplus Property $375,000 $375,000 $375,000 $375,000 6 Other Revenues $1,261,500 $1,387,808 $1,274,147 $1,280,517 7 Total - Revenues $16,966,230 $17,596,551 $19,131,451 $20,434,252 8 9 O&M Expenses
10 Salaries and Benefits $5,245,925 $5,352,199 $5,461,661 $5,574,407 11 Services - Power $1,250,000 $1,287,500 $1,326,125 $1,365,909 12 Services $6,467,494 $6,654,692 $6,847,506 $7,046,104 14 Supplies - Treatment $1,252,500 $1,315,125 $1,380,881 $1,449,925 15 Supplies $1,231,672 $1,268,622 $1,306,681 $1,345,881 16 Total - O&M Expenses $15,447,591 $15,878,138 $16,322,854 $16,782,226 17 18 Debt and Capital
19 Existing Debt Service $0 $0 $0 $0
20 Proposed Debt Service $0 $0 $0 $1,927,962
21 Rate Funded Capital Projects $4,500,000 $3,850,000 $3,750,000 $1,550,000 22 DIF Funded Capital Projects $0 $0 $0 $968,000
23 Total - Debt and Capital $4,500,000 $3,850,000 $3,750,000 $4,445,962 24 25 Net Cash Flow ($2,981,361) ($2,251,587) ($941,403) ($793,936) 26 Net Operating Revenue $1,518,639 $1,598,413 $2,808,597 $3,652,026 27 28 Calculated Debt Coverage #N/A #N/A #N/A 1.76
29 Required Debt Coverage 1.25 1.25 1.25 1.25
30 31 Beginning Balances $15,844,918 $12,863,557 $10,611,971 $9,670,567 32 Ending Balances $12,863,557 $10,611,971 $9,670,567 $8,876,631 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 58 Figure 5-1 shows the proposed wastewater capital financing plan in graphical format, based on the capital financial plan shown in Table 5-8. 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 2027 are funded from SRF Loan proceeds.

Figure 5-1: Proposed Wastewater Capital Financing Plan
Figure 5-2 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.

Figure 5-2: Projected Wastewater Financial Plan (Proposed Revenue Adjustments) City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 59 Figure 5-3 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 2027, FY 2028, and FY 2029.

Figure 5-3: Projected Wastewater Fund Balances (Proposed Revenue Adjustments) $0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
FY 2026 FY 2027 FY 2028 FY 2029
Millions
Wastewater - Ending Balances
Cash Balance Reserve Target
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 60

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 ratemaking year. The test year of this study is FY 2027. Table 6-1 shows the revenue requirement calculation for the wastewater utility.

The revenue requirements (Lines 2-3) are equal to the O&M expenses and debt and capital costs for FY 2027 (Table 5-10, Column C, Lines 16 and 23). The revenues from other sources (Lines 7-10), also known as nonrate revenues or revenue offsets, are equal to all non-rate revenues (Table 5-10, 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 5-10, Column C, Line 25).

The revenue to be recovered from rates (Line 18) 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 for a full year of the revenue adjustment for FY 2027.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 61 Table 6-1: Wastewater Revenue Requirement Calculation

A B C D
Line Revenue Requirement (FY 2027) Operating Capital Total 1 Revenue Requirements
2 O&M Expenses $15,878,138 $0 $15,878,138
3 Debt and Capital $0 $3,850,000 $3,850,000
4 Total - Revenue Requirements $15,878,138 $3,850,000 $19,728,138 5 6 Revenue from Other Sources
7 Investment Income $0 $314,286 $314,286
8 Recycled Water $375,000 $0 $375,000
9 Wastewater Service (521) $463,808 $0 $463,808
10 Transfer from (to) Capital
Improvement Fund (529) $0 $924,000 $924,000
11 Total - Revenue from Other Sources $838,808 $1,238,286 $2,077,094 12 13 Less Adjustments
14 Cash from Reserves $0 $2,251,587 $2,251,587
15 Midyear Increase ($524,813) $0 ($524,813)
16 Subtotal - Less Adjustments ($524,813) $2,251,587 $1,726,774 17 18 Revenue to be Recovered from Rates $15,564,143 $360,127 $15,924,270

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 is not metered, the total amount of flow and strength entering the treatment plant is a known quantity. The quantity entering into the wastewater treatment plant 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 City-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 C, 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.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 62 Table 6-2: Schools Wastewater Flow Estimate
A B C
Line Schools Elementary Secondary
1 Per Student Flow (gcpd) 5 8
2 Students 4,901 8,279
3 Annual Flow (gal) 8,050,355 22,665,011
4 Annual Flow (ccf) 10,763 30,301
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 units. 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 seven percent (7%) 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 6-17) - are based on industry standards. The non-residential return factors, which represent the wastewater generated from water use (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 6-17), septage (Line 20), and I&I (Line 2) from total plant influent (Line 1).

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 63 Table 6-3: Wastewater Plant 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 5.86 309 312 2,859,492 5,515,643 5,569,193 2 Less: I&I 0.41 100 100 200,164 124,950 124,950
3 Net Plant Influent 5.45 325 328 2,659,328 5,390,693 5,444,243 4 5 Non-Residential
6 Low Strength I 0.08 50 50 84% 37,444 11,687 11,687
7 Low Strength II 0.72 150 150 84% 350,970 328,632 328,632 8 Low Strength III 0.16 250 250 84% 76,280 119,042 119,042 9 Medium Strength I 0.05 350 350 84% 22,248 48,609 48,609 10 Medium Strength II 0.07 450 450 84% 32,348 90,867 90,867 11 Medium Strength III 0.03 550 550 84% 16,721 57,408 57,408 12 High Strength I 0.02 650 650 84% 8,724 35,398 35,398 13 High Strength II 0.24 750 750 84% 115,934 542,775 542,775 14 Large Volume User 0.06 250 250 84% 28,278 44,130 44,130 15 16 Elementary School 0.02 130 130 100% 10,763 8,734 8,734 17 Secondary & High School 0.06 130 130 100% 30,301 24,589 24,589 18 Subtotal Non-Residential Flow 1.50 288 288 730,010 1,311,871 1,311,871 19 20 Septage 0.001 5,400 12,000 488 16,449 36,553
21 22 Net Residential Flow 3.95 337 340 1,928,829 4,062,373 4,095,819 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 64 The plant mass balance analysis in 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 American Community Survey (ACS) 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 families.

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 16,937 1.00 16,937 67.7%
2 Multiple Family 10,183 0.79 8,079 32.3%
3 Total - Residential 27,119 25,016 100.0%
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 (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 approximately 70,130 people, to determine that each resident in the City uses approximately 56 gpcd. The residential wastewater strength, in mg/l, 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 1,305,878 2,750,354 2,772,998
2 Multiple Family 622,951 1,312,019 1,322,821
3 Total - Residential 1,928,829 4,062,373 4,095,819
The estimated flow from a single family dwelling unit is approximately 158 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:
1,305,878 ccf per year / 16,937 units x 748 gallons per ccf / 365 days per year = 158 gpd City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 65

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.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 66 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 95% 2.5% 2.5% 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 $3,809,968 $3,809,968 14 Wastewater Engineering $0 $0 $0 $831,036 $831,036
15 Wastewater Treatment and Operations $2,686,067 $1,343,034 $1,343,034 $0 $5,372,135 16 Wastewater Treatment Plant
Maintenance $684,383 $342,192 $342,192 $0 $1,368,766
17 Wastewater Quality Control $0 $408,646 $408,646 $0 $817,291 18 Wastewater Industrial Waste
Monitoring $1,000,947 $26,341 $26,341 $0 $1,053,628
19 Wastewater Collection System -
General $2,252,964 $0 $0 $0 $2,252,964
20 WW Joint Laboratory - Water $0 $181,233 $181,233 $0 $362,465 21 WW Joint Laboratory - Solid Waste $0 $4,942 $4,942 $0 $9,9885 22 Total - O&M Expenses $6,624,361 $2,306,386 $2,306,386 $4,641,004 $15,878,138 23 O&M Expense Allocation 41.7% 14.5% 14.5% 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). 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.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 67 Table 6-7: Wastewater Capital Costs 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) 30% 40% 30% 100%
3 Wastewater Facilities/Plant 45% 30% 25% 100%
4 Construction in Progress 100% 100%
5 Machinery and Equipment 45% 30% 25% 100%
6 Collection System 100% 100%
7 Vehicles 100% 100%
8 9 Dollar Allocation
10 Land (For WWTP and Perc Ponds) $1,331,650 $1,775,533 $1,331,650 $0 $4,438,832 11 Wastewater Facilities/Plant $4,776,426 $3,184,284 $2,653,570 $0 $10,614,280 12 Construction in Progress $0 $0 $0 $0 $0
13 Machinery and Equipment $74,556 $49,704 $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 $24,590,309 $5,009,521 $4,026,640 $0 $33,626,469 17 Capital Expense Allocation 73% 15% 12% 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 (Table 6-3).

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 68 Table 6-8: Wastewater Service Units by Cost Component

A B C D
Line Customer Class WW Flow (ccf) BOD (lbs/yr) TSS (lbs/yr) 1 Residential
2 Single Family Residence 1,305,878 2,750,354 2,772,998 3 Multi-Family Residence 622,951 1,312,019 1,322,821
4 Total - Residential 1,928,829 4,062,373 4,095,819
5 6 Non-Residential
7 Low Strength I 37,444 11,687 11,687
8 Low Strength II 350,970 328,632 328,632
9 Low Strength III 76,280 119,042 119,042
10 Medium Strength I 22,248 48,609 48,609
11 Medium Strength II 32,348 90,867 90,867
12 Medium Strength III 16,721 57,408 57,408
13 High Strength I 8,724 35,398 35,398
14 High Strength II 115,934 542,775 542,775
15 Large Volume User 28,278 44,130 44,130
16 Total - Non-Residential 688,947 1,278,548 1,278,548
17 18 Schools
19 Elementary School 10,763 8,734 8,734
20 Secondary & High School 30,301 24,589 24,589
21 Total - Schools 41,063 33,323 33,323
22 23 Septage 488 16,449 36,553
24 25 Total 2,659,328 5,390,693 5,444,243
Table 6-9 shows the calculation of unit costs by cost component. The operating revenue requirement (Table 6-1, Column B, Line 18) 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 costs 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.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 69 Table 6-9: Wastewater Cost of Service and Unit Costs

A B C D E F
Lin
e
Cost of Service
Allocation WW Flow BOD TSS General Total
1 Operating Cost $6,493,363 $2,260,777 $2,260,777 $4,549,226 $15,564,143 2 Capital Cost $263,353 $53,650 $43,124 $0 $360,127
3 Total Cost of Service $6,756,716 $2,314,427 $2,303,901 $4,549,226 $15,924,270 4 Allocation of General
Costs $2,702,216 $925,610 $921,400 ($4,549,226) $0
5 Adjusted Cost of Service $9,458,932 $3,240,037 $3,225,301 $0 $15,924,270 6 7 Units of Service 2,659,328 5,390,693 5,444,243
8 ccf lbs/yr lbs/yr
9 10 Unit Cost $3.56 $0.60 $0.59
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, Line 10 ) 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 18). The calculations in the table may not be equal to the precise number shown due to rounding within the tables.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 70 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 $4,644,863 $1,653,081 $1,642,791 $7,940,735 3 Multi-Family Residence $2,215,768 $788,579 $783,671 $3,788,018 4 Total - Residential $6,860,632 $2,441,660 $2,426,462 $11,728,754 5 6 Non-Residential
7 Low Strength I $133,184 $7,024 $6,924 $147,132
8 Low Strength II $1,248,361 $197,522 $194,690 $1,640,572 9 Low Strength III $271,320 $71,549 $70,523 $413,393
10 Medium Strength I $79,135 $29,216 $28,797 $137,147
11 Medium Strength II $115,057 $54,615 $53,832 $223,504 12 Medium Strength III $59,475 $34,505 $34,010 $127,990 13 High Strength I $31,030 $21,276 $20,971 $73,276
14 High Strength II $412,363 $326,231 $321,553 $1,060,147 15 Large Volume User $100,582 $26,524 $26,144 $153,250
16 Total - Non-Residential $2,450,507 $768,462 $757,443 $3,976,412 17 18 Schools
19 Elementary School $38,281 $5,249 $5,174 $48,705
20 Secondary & High School $107,777 $14,779 $14,567 $137,123 21 Total - Schools $146,058 $20,029 $19,741 $185,828
22 23 Septage $1,736 $9,886 $21,655 $33,277
24 25 Total $9,458,932 $3,240,037 $3,225,301 $15,924,270

6.7. Rate Calculation
Table 6-11 shows the rate calculation for the City’s proposed wastewater rates for the FY 2027 test year.

Bi-monthly residential service charge = Residential cost of service / dwelling units / 6 billing periods Non-residential wastewater 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 6). The additional costs are calculated as follows:
$30 per hour x 0.25 hours x 2 for overhead costs = $15 per load City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 71 Table 6-11: Wastewater Bi-Monthly Rate Calculation

A B C D
Line Customer Class Cost of Service FY 2027 Units Proposed BiMonthly Rate 1 Residential dwelling units per dwelling unit
2 Single Family Residence $7,940,735 16,937 $78.15
3 Multi-Family Residence $3,788,018 10,183 $62.01
4 5 Non-Residential ccf of water per ccf
6 Low Strength I $147,132 44,576 $3.31
7 Low Strength II $1,640,572 417,821 $3.93
8 Low Strength III $413,393 90,810 $4.56
9 Medium Strength I $137,147 26,486 $5.18
10 Medium Strength II $223,504 38,509 $5.81
11 Medium Strength III $127,990 19,906 $6.43
12 High Strength I $73,276 10,386 $7.06
13 High Strength II $1,060,147 138,016 $7.69
14 Large Volume User $153,250 33,664 $4.56
15 16 Schools students per 100 students
17 Elementary School $48,705 4,901 $165.62
18 Secondary & High School $137,123 8,279 $276.04
19 20 Septage gallons per gallon
21 Cost of Service $33,242 329,455 $0.11
22 Additional Costs $2,471 329,455 $0.01
23 Total Septage $35,713 329,455 $0.11
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 72 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.

Table 6-12: Wastewater Bi-Monthly Rate Comparison

A B C D
Line Customer Class Proposed BiMonthly Rate
Current BiMonthly Rate Difference ($)
1 Residential per dwelling unit
2 Single Family Residence $78.15 $72.65 $5.50
3 Multi-Family Residence $62.01 $57.64 $4.37
4 5 Non-Residential per ccf
6 Low Strength I $3.31 $3.11 $0.20
7 Low Strength II $3.93 $3.76 $0.17
8 Low Strength III $4.56 $4.39 $0.17
9 Medium Strength I $5.18 $5.04 $0.14
10 Medium Strength II $5.81 $5.68 $0.13
11 Medium Strength III $6.43 $6.33 $0.10
12 High Strength I $7.06 $6.98 $0.08
13 High Strength II $7.69 $7.62 $0.07
14 Large Volume User $4.56 $4.39 $0.17
15 16 Schools per 100 students
17 Elementary School $165.62 $157.43 $8.19
18 Secondary & High School $276.04 $262.38 $13.66
19 20 Septage per gallon
21 Septage Charge * $0.11 $0.11 $0.00
* 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 January 2027 are from Table 6-11. The proposed wastewater rates in the following years are increased across the board by the revenue adjustments in Table 5-9.

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

A B C D E
Line Bi-Monthly Wastewater
Service Charges
Current
Rates
January
2027 July 2027 July 2028
1 Residential ($/dwelling unit)
2 Single Family $72.65 $78.15 $83.63 $89.49
3 Multiple Family $57.64 $62.01 $66.36 $71.01
4 5 Schools ($/100 students)
6 Elementary $157.43 $165.62 $177.22 $189.63
7 Secondary & High $262.38 $276.04 $295.37 $316.05
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 73 Table 6-14: Proposed Non-Residential Wastewater Rates

A B C D E
Line Wastewater Usage Rates Current
Rates January
2027 July 2027 July 2028
1 Non-Residential Usage ($/ccf)
2 Low Strength I $3.11 $3.31 $3.55 $3.80
3 Low Strength II $3.76 $3.93 $4.21 $4.51
4 Low Strength III $4.39 $4.56 $4.88 $5.23
5 Medium Strength I $5.04 $5.18 $5.55 $5.94
6 Medium Strength II $5.68 $5.81 $6.22 $6.66
7 Medium Strength III $6.33 $6.43 $6.89 $7.38
8 High Strength I $6.98 $7.06 $7.56 $8.09
9 High Strength II $7.62 $7.69 $8.23 $8.81
10 Large Volume User $4.39 $4.56 $4.88 $5.23
11 Minimum Charge ($) $57.64 $62.01 $66.36 $71.01
12 13 Septage Charge ($/gal) $0.11 $0.11 $0.12 $0.13
14 Minimum Septage Charge $15.00 $16.50 $18.15
City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 74

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 2025 revenues and budgeted FY 2026 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 nonpotable 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
Line Projected Revenues FY 2026 FY 2027 FY 2028 FY 2029 1 Non-Potable Water Service (531)
2 Non-Potable Water Usage $325,000 $326,625 $328,258 $329,899 3 Non-Potable Water Service Chrg $250,000 $251,250 $252,506 $253,769 4 Investment Income $139,197 $149,953 $140,610 $149,282 5 Total - Non-Potable Water Service
(531) $714,197 $727,828 $721,374 $732,951
6 7
Non-Potable Capital Improvement
(549)
8 Capital Improv Chrg Non-Res $125,000 $128,750 $132,613 $136,591 9 Investment Income $52,230 $37,549 $28,583 $18,995
10 Total - Non-Potable Capital
Improvement (549) $125,000 $128,750 $132,613 $136,591
11 12 Total - Revenues $839,197 $856,578 $853,987 $869,541 City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 75

7.2. Projected O&M Expenses
City staff provided the non-potable water O&M actual expenses for FY 2025 and budgeted O&M expenses for FY 2026. Table 7-2 shows the projected O&M expenses for the study period, inflated for FY 2027 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
Line Projected O&M Expenses FY 2026 FY 2027 FY 2028 FY 2029 1 Non-Potable Water Service (531)
2 Salaries and Benefits $103,312 $106,411 $109,603 $112,891 3 Services - Power $22,271 $23,384 $24,553 $25,781
4 Services $265,180 $273,135 $281,329 $289,769
5 Supplies $175,270 $180,529 $185,944 $191,523
6 Total - Non-Potable Water Service
(531) $566,033 $583,459 $601,430 $619,964
7 8 Non-Potable Projects (543)
9 Salaries and Benefits $0 $0 $0 $0
10 Services - Power $0 $0 $0 $0
11 Services $0 $0 $0 $0
12 Supplies $0 $0 $0 $0
13 Total - Non-Potable Projects (543) $0 $0 $0 $0
14 15 Total - O&M Expenses $566,033 $583,459 $601,430 $619,964

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
The City currently does not have any capital improvement projects planned for the study period.

City of Redlands / Water, Wastewater, and Non-Potable Water Rate Study 76 Proposed Financial Plan
Table 7-3 shows the proposed non-potable water revenue adjustments over the study period. Currently, Raftelis does not recommend any revenue adjustments.

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

7.5. 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 Table 7-4 and
Table 7-5.

Table 7-4: Proposed Bi-Monthly Non-Potable Water Service Charges ($/meter size)

A B C D E
Line Bi-Monthly Non-Potable
Water Service Charges
Current
Rates
January
2027 July 2027 July 2028
1 Non-Potable Water Service
2 3/4" $13.81 $13.81 $13.81 $13.81
3 1" $20.65 $20.65 $20.65 $20.65
4 1 1/2" $37.29 $37.29 $37.29 $37.29
5 2" $55.16 $55.16 $55.16 $55.16
6 3" $95.50 $95.50 $95.50 $95.50
7 4" $147.45 $147.45 $147.45 $147.45
8 6" $272.16 $272.16 $272.16 $272.16
9 8" $401.04 $401.04 $401.04 $401.04
Table 7-5: Proposed Non-Potable Water Usage Rates ($/ccf of water)

8. 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 approximately 22,415 accounts; the top 10% of users represent 2,241 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 4-21 are the most efficient and fairest way to allocate the City’s costs among those who create those costs.

RESOLUTION NO. 7128

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

ESTABLISHING A POLICY FOR THE SUBMISSION AND TABULATION OF PROTESTS WITH

RESPECT TO PUBLIC HEARINGS FOR PROPOSED UTILITY RATE ADJUSTMENTS WHEREAS, Article XIIID, section 6 of the Califomia Constitution requires the City to consider written protests to certain proposed increases to utility rates; and WHEREAS, the California Constitution does not offer specific guidance as to who is allowed to submit protests, how written protests are submitted, or how the city is to tabulate the protests;
BE IT RESOLVED by the City Council ofthe City of Redlands as follows:

Section 1. When notice of a public hearing with respect to a utility or other rate adjustments has been given by the City pursuant to Article XIIID, Section 6 of the California Constitution, the following guidelines shall apply:

A. Submission of Protests

1. Any property owner or utility customer may submit a written protest to the City Clerk, either by mail or delivery to the City Clerk's Office, 35 Cajon Street, Suite #4, Redlands, CA 92373 or by submitting the protest at the public hearing.

Protests must be received by the end of the public hearing.

2. Each protest must state that it is a protest (or indicate opposition to the proposed rates). Ifthe City has given notices for the public hearings regarding rates for both sewer and water service, and those hearings are to be held on the same date, then the protest may indicate whether it is made (i) with respect only to water rates, (ii) with respect only to sewer rates, or (iii) with respect to both water and sewer rates. If no limitation is indicated. the City will interpret the protest as covering all rates to be considered on the hearing date. Email or facsimile protests cannot be accepted. Although oral comments at the public hearing will not qualify as a formal protest unless accompanied by a written protest, the City Council welcomes input from the community during the public hearing on proposed fees.

3. A protest by a property owner that is a trust must be signed by the Trustee and identified as such with the signature (i.e_ John Smith. Trustee for Smith Family trust). Protests by property owners that are corporations, partnerships, or similar entitles must be signed by a person authorized to execute documents on behalf of the property owner.

4. If a parcel served by the City is owned by more than a single record owner, or more than one name appears on the City's records as the customer for the property, or the customer is not the record owner, each owner or customer may I:\cclerk\Resolutions\Res 7100-7200\7128 Guidelines Submission Tabulation Protests.doc submit a protest, but only one protest will be counted per parcel and any one protest submitted in accordance with these rules will be sufficient to count as a protest for that property.

5. In order to be valid, a protest must bear date. designation of parcel address or parcel number, printed name. and original signature of the record owner or customer of record with respect to the property identified on the protest. The customer of record is the name of the person whose name is printed on the utility bills for the parcel. Except as set forth in paragraph 3 above, protests not bearing the original signature of a record owner or customer of record shall not be counted. Protests which have been altered by someone other than the person who signed them shall not be counted.

6. Any person who submits a protest may withdraw it by submitting to the City Clerk a dated. written request that the protest be withdrawn. The withdrawal of a protest shall contain sufficient information to identify the affected parcel and the name of the record owner or record customer who submitted both the protest and the request that it be withdrawn.

7. A fee protest proceeding is not an election.

8. To ensure transparency and accountability in the fee protest tabulation, protests shall constitute disclosable public records from and after the close of the public hearing.

B. Tabulation ofProtests

1. The City Clerk shall determine the validity of all protests. The City Clerk shall not accept as valid any protest if the City Clerk determines that any of the following conditions exist:
a. The protest does not identify a property that will be subject to proposed fees.
b. The protest does not bear an original signature of a record owner or identified as trustee of the parcel identified on the protest or of a record customer of that parcel.
c. The protest does not state its opposition to the proposed fees or is illegible. d. The protest has been altered in any way by someone other than the person who is signed to it.
e. The protest was not received by the City Clerk before close of the public hearing on the proposed fees.
f. A request to withdraw the protest was received by the City Clerk prior to the close of the public hearing on the proposed fees.

2. The City Clerk's decision that a protest is not valid shall constitute a final action ofthe City and shall not be subjected to any internal appeal.

I:\cclerk\Resolutions\Res 7100-7200\7128 Guidelines Submission Tabulation Protests.doc 2

3. A majority protest exists (50% plus one) if written protests are timely submitted and not withdrawn by the record owners. trustee. or customers with respect to, a majority of the properties subject to the proposed fee. If both water and sewer rates are being considered, a separate determination will be made for with respect to each ofthese two types of fees.

4. At the conclusion of the public hearing, the City Clerk shall count all protests received, including those received during the public hearing, and shall report the results to the City Council upon completion. If review of the protests received demonstrates that the number received is manifestly less than one-half of the parcels served by the City with respect to the fee which is the subject of the protest, then the City Clerk may advise the City Council of the absence of a majority protest without determining the validity of all protests.

5. If, at the conclusion of the public hearing, the City Clerk determines that the City Clerk will require additional time to count the protests, the City Clerk shall so advise the City Council, which may adjourn the meeting to allow the count to be completed on another day or days. If so, the City Council shall declare the time and place of the count, which shall be conducted in a place where interested members of the public may observe the counting, and the City Council shall declare the time at which its meeting shall be resumed to receive an act in the report ofthe City Clerk.

Section 2. The City Council hereby directs City staff to include the requirements described in Section 1.A of this Resolution, which govern the submission of written protests, within all notices of protest hearings that are mailed to property owners and customers of City utility services.

ADOPTED, SIGNED AND APPROVED this 6* day of March, 2012.

Peté Aguilar, Mayor
ATTEST:

Sam Irwin ity'Clerk
I celerk R emlutions\Res 7100-7200\7128 Guidelines Submission Tabulation Protests.doc 3 I, Sam Irwin, 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 6* day of March 2012. by the following vote:

AYES: Councilmembers Harrison, Bean, Gardner; Mayor Aguilar NOES: Councilmember Foster
ABSTAIN: None
ABSENT: None
Sam Irwin, City Clerk
I:\cclerk\Resolutions\Res 7100-7200\7128 Guidelines Submission Tabulation Protests.doc 4

City Council AGENDA ITEM NO. K1.

DATE: July 7, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Consider Resolution No. 8811 to Rename a Segment of Ninth Street in Honor of Pastor Anthony W. Green (Mayor Saucedo)
MOTION:

If the City Council desires to rename the affected segment of Ninth Street, the following motion is provided:

I move to approve Resolution No. 8811.

RECOMMENDATION:

No recommendation is provided. See analysis in section below.

DISCUSSION:

This item is put forth to the City Council for discussion and possible action regarding the renaming of the northerly segment of Ninth Street to "Pastor Green Street." The segment of the street to be renamed is between High Avenue to the north and the railroad right-of-way to the south (Attachment A). Mayor Mario Saucedo initiated this street renaming in honor of the late Anthony W. Green, a local pastor.

California Government Code Section 34091.1 authorizes local legislative bodies to rename public streets by resolution. Furthermore, City Council Resolution No. 7711 (2017) establishes local procedures for the naming of public facilities including streets within the City (Attachment B). Resolution No. 7711 allows facilities to be named for a person who has made a significant contribution to the Redlands community, provided such person has been deceased for at least three (3) years unless waived by the City Council.

A brief biography and summary of Green's contributions to the Redlands community have been submitted by Mayor Saucedo and are included in the draft approval resolution (Attachment C). Furthermore, since Pastor Green passed away in February of this year, the draft resolution also proposes to waive the three-year limit on the street renaming, as required by City Council Resolution No. 7711.

Upon review, the Post Office advised that it had no concerns with the proposed street name. There appear to be no residences or businesses on the affected street segment with a Ninth Street street number; therefore, readdressing does not appear necessary. Staff has not identified potential conflicts with or duplicates of existing street names that might cause confusion or interfere with emergency response services. On June 3, 2026, the department conducted public outreach by mailing a notice of the proposed street renaming to interested parties, including owners of property with frontage along the affected segment of the street, to invite feedback on the proposal. As of the date of the writing of this report, no communication from the public has been received.

ALTERNATIVES:

Alternative actions include:

Approve the proposal with modifications
Deny the proposal
Continue consideration of the proposal to a future meeting and/or provide staff direction STRATEGIC PLAN:

Not applicable.

SUBMITTED BY:

Sean Reilly, Director
REVIEWED BY:

Charles M. Duggan Jr., City Manager
Janice McConnell, Assistant City Manager
James Garland, Interim Management Services/Finance Director Tabitha Crocker, Facilities and Community Services Director PREPARED BY:

Kevin Beery, Senior Planner

FISCAL IMPACT
Fiscal Year: 2026/2027
Revenue Generating: No
Amount: 0
Budgeted Y/N: No
Account No.: N/A
Additional Appropriation Required: No
Discussion: There will be direct costs associated with replacing street name signs at up to two affected intersections (Stuart Avenue and High Avenue). Facilities and Community Services (FCS) staff estimate the material cost to be approximately $735. These costs will be covered in the departments budget.

Attachments
Attachment_A_-_Location_Map.pdf
Attachment_B_-_Council_Resolution_7711.pdf
Attachment_C_-_Resolution_No_8811_Street_Renaming.pdf
10 10
Ave E S tuart Ave
Ave E High Ave 7th St
Metrolink
7th S t 7th St
11th S t
10 10
10 9th St
E S tuart Ave
E Stuart Ave
E High Ave
11th St
11th S t
79 Metrolink
9th S t
11th St
E
0 170 340 510 680 85
US Feet
³
Author: Redlands DSD Date: 2026-05-29
Legend
Major Streets
Class
Major Street
Minor Streets
Class
Minor Street
Minor Street (Private)
City of Redlands
Proposed Location of Street Renaming to
Commemorate Anthony W. Green

1 I:\cmo\Resolutions\Resolution No. 8811 Street Renaming.bm.06.18.2026.docx RESOLUTION NO. 8811

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

RENAMING A SEGMENT OF NINTH STREET TO PASTOR GREEN STREET WHEREAS, Mayor Mario Saucedo has initiated a proposal (“the proposal”) for renaming a segment of Ninth Street to Pastor Green Street in honor of Anthony W. Green, who died on February 26, 2026; and
WHEREAS, Mayor Saucedo has submitted a brief biography of Anthony W. Green and his contributions to the Redlands community (attached hereto as Exhibit A) in support of the proposal; and
WHEREAS, Government Code Section 34091.1 and Streets and Highways Code Sections 970.5, 971, and 5026 authorize local jurisdictions to rename public streets; and WHEREAS, City Council Resolution No. 7711 establishes procedures for the renaming of City streets and other public facilities, and states that public facilities may be named for a person who has made a significant contribution to the Redlands community, provided such person shall be deceased for at least three years prior to designating the person’s name for a public facility, unless waived by the City Council; and WHEREAS, activities that will not result in direct or reasonably foreseeable indirect physical changes in the environment are not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guideline Sections 15060(c)(2) and 15378.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:

Section 1. Anthony W. Green made a significant contribution to the Redlands community, and the requirement under Section 4.B of City Council Resolution No. 7711 that a person must be deceased for at least three years prior to designating a person’s name for a public facility is hereby waived with respect to the proposal.

Section 2. The segment of Ninth Street between High Avenue to the north and the Metrolink railway to the south is hereby renamed Pastor Green Street in commemoration of Anthony W. Green.

Section 3. The City Clerk shall promptly forward copies of this resolution to the Board of Supervisors, Assessor-Recorder-County Clerk and Surveyor of the County of San Bernardino.

Section 4. The Facilities and Community Services Department shall prepare new street name signs and take all appropriate and necessary actions to implement this resolution. 2 I:\cmo\Resolutions\Resolution No. 8811 Street Renaming.bm.06.18.2026.docx Section 5. The proposed action is limited to street renaming and does not authorize any construction, expansion of use, or other physical change to the environment and, therefore, it is not a ‘project’ under CEQA Guidelines Sections 15060(c)(2) and 15378 because there is no potential for it to cause direct or reasonably foreseeable indirect physical change in the environment.

Section 6. This resolution shall take effect upon adoption.

ADOPTED, SIGNED AND APPROVED this 7th day of July, 2026. ______________________________
Mario Saucedo, Mayor
ATTEST:
__________________________________
Jeanne Donaldson, City Clerk
3 I:\cmo\Resolutions\Resolution No. 8811 Street Renaming.bm.06.18.2026.docx I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was adopted by the City Council at a regular meeting thereof held on the 7th day of July, 2026.

AYES:

NOES:

ABSENT:

ABSTAINED:
____________________________
Jeanne Donaldson, City Clerk
4 I:\cmo\Resolutions\Resolution No. 8811 Street Renaming.bm.06.18.2026.docx EXHIBIT “A”
Pastor Green’s Biography
Pastor Green passed February 26, 2026, after serving in the City of Redlands as Senior Pastor and Pastor Emeritus of The Village (Second Baptist Church) for 39 years and preaching the Gospel for 57 years. A graduate from Howard University, Pastor Green held a Master of Divinity (MDiv) degree when he arrived in Redlands in 1983 with his wife Jackie and two young children. Ready to fill a pastoral vacancy with the Church, his impact upon the City of Redlands was led by love and desire for community unity.

Pastor Green dedicated his life’s work as one of the longest serving African-American Pastors in Redlands’ history and is recognized as a “City Father,” for his extraordinary leadership as one of the founding members of Inland Empire Concerned African American Churches (IECAAC). His faithful leadership as a member of the Redlands Human Relations Commission, Cops and Clergy member, Co-Chair of Unity in the Community, Israel Beal Park Dedication Committee, Pioneer of Redlands Juneteenth Celebrations, and a Midnite Hoopz Creator in collaboration with the Redlands, P.D. for almost thirty years providing programs for at risks youth; highlight his longstanding dedication to the City. During his time serving as Pastor and Police Chaplain, Pastor Green was often called in to help de-escalate racial tensions on Redlands school campuses and help counsel youth and adults involved with gang life.

His faithful volunteer work with the Redlands Police Department as a Police Chaplain spans six Police Chiefs and years of rehabilitation work advocating for cops of color in Redlands. As a history maker in the City of Redlands protecting the rights of African Americans and people of Color, Pastor Green helped build a future by mentoring people of all backgrounds through the Dr. Martin Luther King, Jr. History Camps. In the past ten years he taught young people how to build bridges across communities to inspire hope and a better future.

Pastor Green was also an advocate for women in leadership and their humanity. He was the first African-American Pastor to license and ordain women in the City of Redlands. This came at the cost of being dismissed and ostracized by other local pastors and churches. Even in this, he did not waiver or quit. He consistently until his death found ways to maintain, create and uplift bridges of reconciliation and hope for women, youth and people of color in the City of Redlands.

It is an appropriate recognition to Name a Street in his honor where the Redlands African-American Historical District has been preserved for 134 years by the Second Baptist Church (The Village SBC), along with other local churches, organizations and pastors in the city, breaking down racism and building bridges for the future of the City of Redlands. 5 I:\cmo\Resolutions\Resolution No. 8811 Street Renaming.bm.06.18.2026.docx Submitted by:

Bishop Dr. Jackie L. Green, D. Min.

Senior Pastor, The Village SBC
May 27, 2026
City Council AGENDA ITEM NO. K2.

DATE: July 7, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of Memoranda of Understanding between the City of Redlands and the Redlands Association of Department Directors, Redlands Association of Mid-Management Employees, Redlands Association of Safety Management Employees, Redlands Association of Fire Management Employees, and Redlands Civilian Safety Employees Association (Assistant City Manager McConnell)
MOTION:

I move to approve the Memorandum of Understanding between the City of Redlands and the Redlands Association of Department Directors, the Redlands Association of Mid-Management Employees, the Redlands Association of Safety Management Employees, the Redlands Association of Fire Management Employees, and the Redlands Civilian Safety Employees Association.

RECOMMENDATION:

Staff recommends that the City Council approve the Memorandum of Understanding between the City of Redlands and the Redlands Association of Department Directors, Redlands Association of Mid-Management Employees, Redlands Association of Safety Management Employees, Redlands Association of Fire Management Employees, and Redlands Civilian Safety Employees Association.

DISCUSSION:

The City's negotiating team and the following bargaining units: The Redlands Association of Department Directors (RADD), the Redlands Association of Mid-Management Employees (RAMME), the Redlands Association of Safety Management Employees (RASME), the Redlands Association of Fire Management Employees (RAFME), and the Redlands Civilian Safety Employees Association (RCSEA), have met to negotiate their Memorandum of Understanding (MOUs) for the period of July 1, 2026, through June 30, 2029. The parties have reached an agreement and the attached MOUs have been prepared for the City Council's consideration.

RAMME and RCSEA unit members will receive a four percent (4%) salary increase for the first year of the contract and three percent (3%) salary increases in both years two and three. RASME and RAFME unit members will receive a seven percent (7%) salary increase for the first year of the contract and three percent (3%) salary increases in both years two and three. Other changes include three additional steps (Steps 5, 6, and 7) at two and one-half percent (2.5%) each to the top of the RAMME, RASME, RAFME and RCSEA salary ranges, increases to bilingual pay, medical contributions, and incentive pays. Language revisions have also been made within the MOU for the purpose of cleanup and to reduce ambiguity and/or clarify how a benefit is administered.

RADD unit members will receive a four percent (4%) salary increase for the first year of the contract and three percent (3%) salary increases in both years two and three. Tuition reimbursement for conference and training purposes will increase from $1,000 to $2,000 per fiscal year. The Director of Municipal Utilities and Engineering position has been changed to receive a $500 monthly auto allowance rather than a City take home vehicle. Unit employees who opt out of vision benefits will receive an annual stipend of $350. Annual Leave accrual will increase from 430 hours to 440 hours with a maximum bank of 1,000 hours. The Fire and Police Chiefs are offered a Public Safety specific Employee Assistance Program in lieu of the general employees' Employee Assistance Program.

Unit employees will receive 4 working days of paid Bereavement Leave. Language revisions have also been made within the MOU for the purpose of clean-up and to reduce ambiguity and/or clarify how an existing benefit is administered. All other provisions of the MOU remain unchanged.

ALTERNATIVES:

N/A
STRATEGIC PLAN:

N/A
SUBMITTED BY:

Janice McConnell, Assistant City Manager
RECOMMENDED BY:

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

Danielle Garcia, Assistant City Manager
Rachel Tolber, RADD President
Stephen Crane, RASME President
Bruni Reyes, RAMME Secretary
Joshua Hannan, RAFME President
Aubrey Colerick, RCSEA Vice President
PREPARED BY:

Jenna Yorck, HR Manager

FISCAL IMPACT
Fiscal Year: FY2026-2027, 2027-2028, 2028-2029
Revenue Generating: No
Amount: $
Budgeted Y/N: Yes
Account No.: Various
Additional Appropriation Required: No
Discussion:

Approval of the Memoranda of Understanding will increase the City’s personnel costs. While portions of the negotiated compensation and benefit changes were included in the adopted Fiscal Year 2026-27 and Fiscal Year 2027-28 Budget, the agreements also include changes that exceed the amounts budgeted or have not yet been fully incorporated into the City’s financial forecast.

The total fiscal impact cannot be fully separated by individual provision at this time because the agreements include multiple changes affecting wages, benefits, payroll implementation, classifications, and future fiscal years.

Staff will continue to evaluate the cumulative impact of the approved agreements and will return to the City Council with any necessary budget adjustments.

Attachments
RADD_MOU_2026-2029_Signed.pdf
RADD_Redline_MOU_2026-2029.pdf
RAFME_MOU_2026-2029_Signed.pdf
RAFME_Redline_MOU_2026-2029.pdf
RAMME_MOU_2026-2029_Signed.pdf
RAMME_Redline_MOU_2026-2029.pdf
RASME_Redline_MOU_2026-2029.pdf
RASME_MOU_2026-2029_Signed.pdf
RCSEA_Redlined_MOU_2026-2029.pdf
RCSEA_MOU_2026-2029_Signed.pdf
f

MEMORANDUM OF UNDERSTANDING

BETWEEN THE

CITY OF REDLANDS

AND THE

REDLANDS ASSOCIATION OF

DEPARTMENT DIRECTORS
JULY 1, 2026 - JUNE 30, 2029

MEMORANDUM OF UNDERSTANDING
Between
The City of Redlands
And
Redlands Association of Department Directors
July 1, 2026 – June 30, 2029

TABLE OF CONTENTS
Article 1. Term of Memorandum of Understanding..............................................................1 Article 2. Preamble..............................................................................................................1 Article 3. Terms and Conditions of Employment ..................................................................1 Article 4. Salaries and Additional Compensation Adjustments .............................................1 Article 5. Retirement...........................................................................................................2 Article 6. Tuition Reimbursement........................................................................................3 Article 7. Cell Phone Allowance ...........................................................................................3 Article 8. Auto Allowance....................................................................................................3 Article 9. Uniform Allowance...............................................................................................4 Article 10. Benefits................................................................................................................4 Article 11. Lifetime medical...................................................................................................5 Article 12. Holidays...............................................................................................................5 Article 13. Annual Leave........................................................................................................6 Article 14. Accrual Payment on Retirement ...........................................................................6 Article 15. Employee Severance Compensation .....................................................................7 Article 16. Family Medical Care Leaves..................................................................................8 Article 17. Deferred Compensation .......................................................................................8 Article 18. Flexible Savings Plan.............................................................................................8 Article 19. Employee Assistance Program ..............................................................................9 Article 20. Bereavement Leave..............................................................................................9 Article 21. Management Rights .............................................................................................9 Article 22. Savings Clause ......................................................................................................9 Article 23. Zipper Clause........................................................................................................9 Article 24. Signatures............................................................................................................9 Article 1. TERM OF MEMORANDUM OF UNDERSTANDING
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Department Directors (“Unit”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 2026 and shall expire on June 30, 2029.

Article 2. PREAMBLE
It is the intent and purpose of this MOU to set forth the understanding of the parties reached as a result of meeting and conferring in good faith regarding, but not limited to, matters relating to the wages, hours, and terms and conditions of employment between the City and the Unit.

Article 3. TERMS AND CONDITIONS OF EMPLOYMENT
A. Unit employees serve at the will and pleasure of the City Manager. The appointment of a person to a Department Director position will be made by the City Manager.

B. The various forms of compensation and benefits described in this MOU are the result of the City’s recognition that Unit employees should be compensated appropriately for exhibiting accountability, cost effectiveness, the ability to apply new technologies and maximize the utilization of human, physical and fiscal resources to enhance the mission of the City; and for stimulating the development of people and establishing methods which facilitate the meeting of City goals and objectives.

Article 4. SALARIES AND ADDITIONAL COMPENSATION ADJUSTMENTS A. All Unit Employees shall receive the following salary increases. The Salary Range Table is established to provide the minimum and maximum salary levels for each Unit employee position. Further, all Unit employees are responsible for the employee contribution to Social Security and Medicare.

1. Effective the first payroll period following July 1, 2026, all Unit employees will receive a four percent (4%) increase to base salary.

2. Effective the first payroll period following July 1, 2027, all Unit employees will receive a three percent (3%) increase to base salary over the prior year.

3. Effective the first payroll period following July 1, 2025, all Unit employees will receive a three percent (3%) increase to base salary over the prior year.

B. The City recognizes that to recruit and retain well-qualified Department Directors and enhance their management capabilities in areas such as leadership and accountability, Unit employees should be compensated appropriately for exhibiting accountability, cost effectiveness, the ability to apply new technologies and maximize the utilization of human, physical and fiscal resources; for exerting leadership to enhance the mission of the City; and for stimulating the development of people and methods which will facilitate the meeting of City goals and objectives.

C. To facilitate and enhance effectiveness and productive efforts of Unit employees, salary and benefit levels will be reviewed on a periodic basis and may be adjusted from time to time, within the budget appropriation levels established by the City Council. This review will consist of the following two components.

1. Performance Evaluations:

Progression in the salary range for all Unit Employees shall be based on the employee’s performance. The City Manager shall be responsible for evaluating such performance.

2. Compensation (Salary and Fringe Benefits) Survey:

City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
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2 The compensation philosophy of the City is to establish a compensation package that will attract the highest caliber individuals. Therefore, the second component will contain comparisons with other similar agencies within the appropriate job market. These factors will be utilized to consider salary and benefit levels that will facilitate continuation of this philosophy.

D. Eligibility for one-time per year performance-based distributions. The City shall make available for the purpose described herein, the cash equivalent of the value of a 2% base salary increase for all filled positions within the Unit. Prior to the conclusion of the applicable fiscal year, the City Manager shall in his or her sole discretion have the authority to utilize any or all of the allocated funds to provide a one-time cash distribution to any one or more Unit members. Subject to the limitation that the cumulative value of the City Manager-distributed one-time payments shall not exceed the total value of allocated funds for that fiscal year, there is no minimum or maximum amount that the City Manager may award to any individual Unit employee. Additionally, the City Manager also has discretion to issue one-time awards.

In exercising his discretion in this regard, only employees in the Unit that have exhibited what the City Manager in his or her sole discretion determines to be “exceptional” performance during the applicable fiscal year, shall be eligible for receipt of a one-time distribution. The distribution shall not impact the Unit employee’s salary range or step.

Available one-time payment funds not distributed in the designated fiscal year, shall not accumulate and carry over into any future fiscal year and instead, shall be returned to the City for other Councildetermined uses.

Article 5. RETIREMENT
A. Classic Members
All “classic” Unit employees shall personally fund 100% of the 7% of compensation earnable as and for the individual employee’s normal employee PERS contribution. (The term “classic” member is defined in the Public Employee’s Pension Reform Act of 2013 “PEPRA.”) All “classic” employee normal contributions required to be paid by the employee, whether paid by the employer or the employee, shall be credited to the member’s CalPERS account.

Whether as authorized by Government Code § 20692, 20636(c)(4) or any other statutory or legal basis, the City shall not report to CalPERS as any type of compensation, any portion of the normal employee PERS contributions required by PERS which are funded by the employee.

The City shall continue to include in this contract with CalPERS, the following provisions.

HIGHEST SINGLE YEAR

SURVIVOR CONTINUANCE
2% @ 55 RETIREMENT FORMULA
(MISCELLANEOUS)
3% at 50 RETIREMENT FORMULA
(SAFETY)
City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
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3 B. New Members
The Public Employee’s Pension Reform Act of 2013 – “PEPRA” (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist, during and after the term of this MOU, as described below.

Unit employees who are “new members” as defined in the PEPRA, shall individually pay an initial member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said newly hired member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (Government Code section 7522.30)
Unit employees who are “new members,” as defined in the PEPRA, on and after January 1, 2013, shall be enrolled in the retirement plan of 2%@62 (Government Code section 7522.20(a), for “miscellaneous” new members, or the 2.7% at 57 retirement plans for “safety” new members (Section 7522.25) with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a).) Article 6. TUITION REIMBURSEMENT
A. The City will reimburse each Unit employee for actual costs of fees, tuition and books, for such employee’s attendance at an accredited institution of higher learning, at the rate up to the cost at University of California, Riverside (UCR) for the same or similar course.

B. Unit employees must submit a request form with documents describing the course and program and cost to the Human Resources Director for approval prior to beginning class.

C. To be eligible for reimbursement, a Unit employee must submit evidence of actual payment of expenses incurred and satisfactory completion of course work with a grade of “C” or better or equivalent.

D. Unit employees may use up to two thousand dollars ($2000) of tuition assistance per fiscal year to attend training, conferences, and/or seminar of their choosing.

Article 7. CELL PHONE ALLOWANCE
Unit employees shall be provided a city-issued cell phone. In lieu of a city issued cell phone, unit members may opt for a cell phone allowance in the amount of $100 per month.

Article 8. AUTO ALLOWANCE
Unit employees shall receive a $500 per month vehicle allowance, except the following positions shall be provided vehicles:

Police Chief
Fire Chief
Unit employees must participate in the City DMV Pull Notice Program. Unit members receiving an Auto Allowance or utilizing their personal vehicle for business reasons must provide the following:

1. Proof of valid insurance with acceptable levels as set by the City.

2. Proof of valid, class C California driver license.

3. If assigned, a City‐owned vehicle may be used by a Unit employee for City business and for commuting to and from the employee’s residence, including de minimis personal use during the employee’s commute. De minimis personal use shall be defined as occasional or City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
4 infrequent use during the course of the employee’s regular commute so small as to be unreasonable or administratively impracticable to account for. The City will incur all costs related to the provision of the vehicle, including maintenance and insurance. The Unit employee shall be responsible for ensuring the City’s vehicle is appropriately secured when parked at the employee’s residence.

Article 9. UNIFORM ALLOWANCE
The Police Chief and Fire Chief who wear their uniforms for public ceremonies or for operational necessity are entitled to a stipend equal to that received by the respective safety management employees.

Article 10. BENEFITS
A. MEDICAL INSURANCE
The City shall contribute directly to CalPERS on behalf of each employee three hundred and ninetyseven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989. In addition, the City shall contribute an amount through the City’s cafeteria plan that is equal to the difference between $397.00 per month and the cost of the medical premium selected by the unit employee.

The City agrees to provide a stipend of $350, on a monthly basis, for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.

Insurance Adjustment: In July of each year, the City shall pay each Unit employee a cash payment in the amount of one hundred and fifty dollars ($150) to offset the co-payments and deductibles for medical insurance plans.

B. DENTAL INSURANCE
The City shall pay the full monthly premium for dental insurance under the Principal Financial dental plan or its equivalent for each Unit employee and all eligible dependents.

C. VISION
The City shall contribute the entire monthly premium for Unit employees and their eligible dependents for a vision insurance plan with VSP or an equivalent insurance plan as approved by the City. Unit employees who opt out of this vision benefit will receive a $350 annual stipend.

D. DISABILITY
All unit employees shall pay the premium for the State Disability Insurance Program.

E. LIFE AND ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE
All unit employees shall be covered by the City’s group term life insurance and accidental death and dismemberment (AD&D) insurance plan. The City will pay the premiums for life insurance coverage amounts of $25,000 for basic life and $25,000 for accidental death and dismemberment policies.

F. YMCA MEMBERSHIP
In an effort to support a healthy life-style for all Unit employees, the City will provide a paid annual membership for Unit employees and their families to the Redlands YMCA.

City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
5 Article 11. LIFETIME MEDICAL
Unit employees who achieve fifteen (15) years of service with the City shall be entitled to Lifetime Medical coverage for themselves and their dependents upon separation of service from the City. “Lifetime Medical” means health insurance and dental insurance as provided by the City to its then existing Unit employees through the CalPERS or similar group medical plan as determined by the City which does not exceed the cost to the City of the CalPERS plan. After completion of fifteen (15) years of continuous service with the City a Unit employee hired prior to January 1, 2009 who qualifies as an annuitant under PEMHCA may elect to receive as a City contribution to a retiree health reimbursement account the difference between the PEMHCA minimum and the cost of fully paid medical insurance under the City’s medical insurance program for the Unit employee and their eligible dependents
Employees hired after January 1, 2009 shall not be entitled to this benefit. Any employee who is promoted into the Unit shall maintain any Lifetime medical benefit such employee has previously accrued with the City and/or eligibility to earn the Lifetime Medical benefit if they had that right under their previous Memorandum of Understanding
Unit members hired after January 1, 2009 with ten (10) years of continuous employment with the City who concurrently retire from the City and the CalPERS system who qualify as an annuitant under PEMHCA may elect to receive the “Medical Bridge.” Under the “Medical Bridge,” the City will contribute the difference between the PEMHCA minimum and the cost of single party coverage for the retired unit member only for the lowest cost medical and dental insurance plans as provided by the City to its then existing Unit members until the member reaches the age of Medicare eligibility at which time the benefit will cease and unit members will only receive the PEMHCA minimum contribution. Unit members who receive the medical bridge can select higher cost plans offered by the City to its then existing members and/or coverage for dependents, however, the additional cost for the plan or additional dependents shall be paid for by the Unit member and not by the City.

Unit members hired prior to January 1, 2009 who have achieved ten (10) years of service with the City, shall be entitled to the medical bridge insurance upon retirement from the City if the employee failed to achieve the fifteen (15) years of service required for the Lifetime medical benefit.

Article 12. HOLIDAYS
A. The following paid holidays will be observed on the day specified.

New Year’s Day January 1st
Martin Luther King’s Birthday 3rd Monday in January
Presidents’Day 3rd Monday in February
Farm Workers Day March 31st
Memorial Day Last Monday in May
Juneteenth June 19th
Independence Day July 4th
Labor Day 1st Monday in September
Columbus Day 2nd Monday in October
City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
6 Veteran's Day November 11th
Thanksgiving Day 4th Thursday in November
Day After Thanksgiving Day Day After 4th Thursday in November Christmas Eve December 24th
Christmas Day December 25th
B. Any holiday listed in this Section which falls on Sunday will be observed on the following Monday.

C. Any holiday listed in this Section which falls on Saturday will be observed on Friday.

D. In any instance where a Unit employee is required during a designated holiday to render services during any or all of what would have been regularly scheduled hours, the paid holiday shall be banked and the employee shall have the option of utilizing the holiday during the thirty (30) calendar day period immediately following the holiday. Failure to timely take the banked holiday off, shall result in loss of the holiday, with no cash or other compensation for the holiday.

Article 13. ANNUAL LEAVE
A. Unit employees shall combine existing Sick Leave and vacation balances as well as Floating Holidays and Executive Leave to Annual Leave.

B. The purpose of Annual Leave is to provide Unit employees the ability to accrue time for Vacation, Sick Leave and personal leave situations.

C. Unit employees shall accrue Annual Leave hours at a rate of 440 hours per year (16.92 hours per payroll period), regardless of years of service, whether at the City or elsewhere.

D. T he maximum annual leave balance shall be 1000 hours. No Unit employee shall accrue annual leave above 1000 hours.

E. As a matter of City policy, Unit employees are encouraged to use annual leave.

Unit employees may elect to convert up to 430 hours of annual leave earned in the following calendar year to cash to be paid during the first week of May, the first week of September, and the last week of December of each year. For every subsequent year, such election by a unit employee shall be made in November of such year. This election is irrevocable and may not be changed after the election is made.

Only amounts earned in the current year prior to the cash out date may be elected to convert to cash.

A total of 50 hours of annual leave must be on the books at the time of the “cashout” date in order for payment to be made. If a unit employee does not have the elected amount of hours available at the time of payout, they will be paid the hours that are available above the 50 hours required to remain on the books.

Article 14. ACCRUAL PAYMENT ON RETIREMENT
Upon service or medical retirement under the PERS retirement plan, or in the event of the death of a Unit employee prior to retirement, PERS members with less than fifteen (15) years ofservice with the City may elect one of the following options for payment of unused annual leave:

A. Convert all remaining annual leave accrued at the time of retirement to cash value at the final rate of pay and apply said cash value to applicable premiums payable under the City’s medical insurance program for the Unit employee and eligible dependents until the cash value is exhausted. This amount is subject to all applicable taxes. In the event that the Unit employee dies prior to exhaustion of the cash value of said benefits, the remaining cash value may be applied towards the premiums of City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
7 covered dependents until exhausted, subject to the conditions and limitations of the applicable insurance policy.

B. At the time of service retirement, disability retirement, or at the death of an active Unit employee, one hundred percent (100%) of accrued annual leave may be converted to cash or applicable deferred compensation plan at the prevailing hourly rate.

Article 15. EMPLOYEE SEVERANCE COMPENSATION
Unit employees may terminate from employment at any time, provided the unit employee provides the City with at least thirty (30) days prior written notice, unless such notice is waived in whole or in part by the City Manager.

Unit employees may be terminated from employment at any time with or without cause, by providing written notice to unit employee of the same. The City’s right to terminate unit employee shall not be subject to, or in any way limited by, the City’s Personnel Rules and Regulations, or any subsequent related resolutions, or past City practices related to the employment, discipline or termination of the City’s unit employees. Unit employee expressly waives any rights provided for under the City’s Personnel Rules and Regulations, Municipal Code, or under other local, state or federal law related to any form of pre- or post-termination hearing, appeal, or other administrative process pertaining to termination. Nothing in this article shall be construed to create a property interest, where one does not exist by rule of law.

Unit employees may be terminated at any time by providing unit employee with prior written notice of the termination for cause and the facts and grounds constituting such cause. The term “cause” shall be defined to include any sustained finding of misconduct materially related to performance of official duties, including, but not be limited to, any of the following: (1) willful or persistent material breach of duties or inattention to duties, (2) résumé fraud or other acts of material dishonesty, (3) unauthorized or excessive absence or leave, (4) conviction of a misdemeanor involving moral turpitude (i.e., offenses contrary to justice, honesty, or morality) or abuse of position, (5) conviction of a felony under California law, (6) violation by Unit employee of the City’s anti-harassment and anti-discrimination policies, as may be amended, (7) violation of state law or the RMC or any City ordinance, rule or regulation, (8) use or possession of illegal drugs in violation of state law and/or City policy, (9) continued abuse of nonprescription drugs or alcohol that materially affects the performance of required duties, (10) engaging in conduct unbecoming for a public official or which brings disrepute to the City, (11) any illegal or unethical act involving personal gain, including conviction of theft or attempted theft, (12) Unit employee’s significant mismanagement of City finances, (13) any pattern of repeated, willful and intentional insubordination of the City Manager’s lawful directives, (14) gross misfeasance or gross malfeasance, (15) failure to comply with the ICMA Code of Ethics, as may be amended; or (16) any similar lawful cause. For any of the foregoing, the City may, in its discretion, place unit employee on paid or unpaid administrative leave until resolution. If a unit employee is terminated for cause, then the City shall have no obligation to pay unit employee any severance.

The City may terminate unit employee without cause, but rather based upon any lawful management reason such as implementing the City’s goals or policies, including, but not limited to: (i) change of administration, or (ii) incompatibility of management styles, or for any other lawful reason, or no publicly stated reason.

City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
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8 In the event Unit employee is terminated without cause and Unit employee does not challenge such termination, including, but not limited to, by means of appeal or civil or administrative claim or “libertyinterest” hearing, then the City shall pay to unit employee severance in an amount determined by the City Manager that shall not be less than three months of the unit employee’s monthly base salary and shall not exceed six months of the unit employee’s monthly base salary. The severance payment shall not include the monetary value of benefits during said time, but salary only. In exchange for receiving severance, unit employee will execute a waiver and release of any and all claims against the City.

If unit employee is terminated for cause or if the unit employee initiates termination of employment, then the City shall have no obligation to pay severance.

Article 16. FAMILY MEDICAL CARE LEAVES
A. Family Leave shall be granted in accordance with the California Rights Act of 1991 (CFRA) and the Family and Medical Leave Act of 1993 (FMLA), and any amendments thereto and implementing regulations for those respective statutes. The City’s Human Resources Department shall be responsible for administration of all leave taken pursuant to this Article 16.

B. Unit employees may utilize up to twelve weeks of Annual Leave for leaves of absence that fall under the provisions of the FMLA and CFRA. This Annual Leave is in addition to any other paid or unpaid leave, which may be granted under the provisions of FMLA and CFRA. Annual Leave shall be used prior to the unpaid leave provisions of FMLA and CFRA.

Article 17. DEFERRED COMPENSATION
All Unit employees are eligible to participate in the City’s Deferred Compensation Plans, 457 (B) and 401 (A), as provided for in State and Federal Tax Codes. The City will contribute $1,125 per year plus 4% of salary to a 401 (A) plan for each Unit employee in January of each year. The full contribution amount to 401 (A) shall be provided based on a complete one year of service in the preceding year. For new Unit employees, and employees transferring into the Unit in the preceding year, the amount shall be prorated on a monthly basis for period of service within the unit. In the event that an employee leaves the Unit, they shall receive a final contribution in a prorated amount up to $1,125 per year plus 4% of salary based on their period of service in their final year in the Unit and shall not receive any additional contribution in January. Each Unit employee may contribute additional deferred compensation to the 457 (B) Plan in accordance with Plan provisions.

Unit employees hired before December 31, 2005 shall convert all annual leave in excess of 450 hours into the 401(a) program on the first pay period of August each year. Any amount in excess of the maximum amount allowable will remain in the unit members annual leave bank.

Upon retirement from the City, Unit employees shall deposit the cash value of annual leave to the 401(a) program in the maximum amount allowable. Any leave over the maximum allowable amount will be paid out in cash.

Article 18. FLEXIBLE SAVINGS PLAN
The City offers Flexible Spending Accounts (FSA) to all Unit employees. An FSA allows an employee to make pre-tax deductions for qualifying medical, dental and vision expenses, and dependent care expenses. The plan is established and administered in accordance with Section 125 of the Internal Revenue Service code.

City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
9 Article 19. EMPLOYEE ASSISTANCE PROGRAM
The City offers all Unit employees an employee assistance program. The Police Chief and Fire Chief are offered the Public Safety specific Employee Assistance Program. Confidentiality regarding a Unit employee’s use of this program will be maintained in full compliance with State and Federal Regulations.

Article 20. BEREAVEMENT LEAVE
All Unit employees receive four (4) working days of paid Bereavement Leave for the death of a member of an employee’s immediate family (defined as spouse, state-registered domestic partners, children, parents, brother, sister, grandfather, grandmother, mother-in-law, father-in-law, step-father, stepmother, and step-children).

Article 21. MANAGEMENT RIGHTS
Management rights shall consist of the exclusive right to determine the mission of its constituent departments, commissions, boards; set standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficient of work; maintain the efficient of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content of job classifications; take all necessary actions to carry out its mission in emergencies; exercise complete control and discretion over its organization and the technology of performing its work.

Article 22. SAVINGS CLAUSE
If any provision of this MOU, or the application of any provision, should be rendered invalid by court or legislative action, the remaining portions of this Agreement shall remain in full force and effect.

Article 23. ZIPPER CLAUSE
The City and the Unit agree that all negotiable items have been discussed during the negotiations leading to this MOU, including salaries and benefits, and conditions of employment, and therefore the City and the Unit further agree that negotiations will not be reopened on any item during the term of this MOU, except by mutual agreement of the City and the Unit, or as expressly provided otherwise in this MOU.

Article 24. SIGNATURES

CITY OF REDLANDS

REDLANDS ASSOCIATION OF

DEPARTMENT DIRECTORS - RADD

MARIO SAUCEDO , MAYOR RACHEL TOLBER, PRESIDENT DATE
ADOPTED, SIGNED AND APPROVED THIS 7TH DAY
OF JULY, 2026
ATTEST:
06/26/2026
City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
10 _______________________________________
Jeanne Donaldson, City Clerk
f

MEMORANDUM OF UNDERSTANDING

BETWEEN THE

CITY OF REDLANDS

AND THE

REDLANDS ASSOCIATION OF

DEPARTMENT DIRECTORS
JULY 1, 202623 - JUNE 30, 202926

MEMORANDUM OF UNDERSTANDING
Between
The City of Redlands
And
Redlands Association of Department Directors
July 1, 202623 – June 30, 202926

TABLE OF CONTENTS
Article 1. Term of Memorandum of Understanding .............................................................. 1 Article 2. Preamble .............................................................................................................. 1 Article 3. Terms and Conditions of Employment .................................................................. 1 Article 4. Salaries and Additional Compensation Adjustments ............................................. 1 Article 5. Retirement ........................................................................................................... 2 Article 6. Tuition Reimbursement ........................................................................................ 3 Article 7. Cell Phone Allowance ........................................................................................... 3 Article 8. Auto Allowance .................................................................................................... 3 Article 9. Uniform Allowance ............................................................................................... 4 Article 10. Benefits ................................................................................................................ 4 Article 11. Lifetime medical ................................................................................................... 5 Article 12. Holidays ................................................................................................................ 5 Article 13. Annual Leave ........................................................................................................ 6 Article 14. Accrual Payment on Retirement ........................................................................... 6 Article 15. Employee Severance Compensation ..................................................................... 7 Article 16. Family Medical Care Leaves .................................................................................. 8 Article 17. Deferred Compensation ....................................................................................... 8 Article 18. Flexible Savings Plan ............................................................................................. 8 Article 19. Employee Assistance Program .............................................................................. 9 Article 20. Bereavement Leave .............................................................................................. 9 Article 21. Management Rights ............................................................................................. 9 Article 22. Savings Clause ...................................................................................................... 9 Article 23. Zipper Clause ........................................................................................................ 9 Article 24. Signatures ............................................................................................................ 9 Article 1. TERM OF MEMORANDUM OF UNDERSTANDING
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Department Directors (“Unit”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 202623 and shall expire on June 30, 202926.

1. Effective the first payroll period following July 1, 202623, all Unit employees will receive a seven four percent (74%) increase to base salary.

2. Effective the first payroll period following July 1, 20274, all Unit employees will receive a two three percent (23%) increase to base salary over the prior year.

3. Effective the first payroll period following July 1, 2025, all Unit employees will receive a two three percent (23%) increase to base salary over the prior year.

1. Performance Evaluations:

Progression in the salary range for all Unit Employees shall be based on the employee’s performance. The City Manager shall be responsible for evaluating such performance.

2. Compensation (Salary and Fringe Benefits) Survey:

The City shall continue to include in this contract with CalPERS, the following provisions.

HIGHEST SINGLE YEAR

B. Unit employees must submit a request form with documents describing the course and program and cost to the Human Resources Director for approval prior to beginning class.

D. Unit employees may use up to one two thousand dollars ($10002000) of tuition assistance per fiscal year to attend training, conferences, and/or seminar of their choosing.

Article 8. AUTO ALLOWANCE
Unit employees shall receive a $500 per month vehicle allowance, except the following positions shall be provided vehicles:

Police Chief
Fire Chief
Director, Municipal Utilities and Engineering
Unit employees must participate in the City DMV Pull Notice Program. Unit members receiving an Auto Allowance or utilizing their personal vehicle for business reasons must provide the following:

1. Proof of valid insurance with acceptable levels as set by the City.

2. Proof of valid, class C California driver license.

3. If assigned, a City-owned vehicle may be used by a Unit employee for City business and for commuting to and from the employee’s residence, including de minimis personal use during City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
4 the employee’s commute. De minimis personal use shall be defined as occasional or infrequent use during the course of the employee’s regular commute so small as to be unreasonable or administratively impracticable to account for. The City will incur all costs related to the provision of the vehicle, including maintenance and insurance. The Unit employee shall be responsible for ensuring the City’s vehicle is appropriately secured when parked at the employee’s residence.

The City agrees to provide a stipend of $350, on a monthly basis, for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.

B. DENTAL INSURANCE
The City shall pay the full monthly premium for dental insurance under the Principal Financial dental plan or its equivalent for each Unit employee and all eligible dependents.

D. DISABILITY
All unit employees shall pay the premium for the State Disability Insurance Program.

F. YMCA MEMBERSHIP
In an effort to support a healthy life-style for all Unit employees, the City will provide a paid annual membership for Unit employees and their families to the Redlands YMCA.

After completion of fifteen (15) years of continuous service with the City a Unit employee hired prior to January 1, 2009 who qualifies as an annuitant under PEMHCA may elect to receive as a City contribution to a retiree health savings account the difference between the PEMHCA minimum and the cost of fully paid medical insurance under the City’s medical insurance program for the Unit employee and their eligible dependents
Employees hired after January 1, 2009 shall not be entitled to this benefit. Any employee who is promoted into the Unit shall maintain any Lifetime medical benefit such employee has previously accrued with the City and/or eligibility to earn the Lifetime Medical benefit if they had that right under their previous Memorandum of Understanding
Unit members hired after January 1, 2009 with ten (10) years of continuous employment with the City who concurrently retire from the City and the CalPERS system who qualify as an annuitant under PEMHCA may elect to receive the “Medical Bridge.” Under the “Medical Bridge,” the City will contribute the difference between the PEMHCA minimum and the cost of single party coverage for the retired unit member only for the lowest cost medical and dental insurance plans as provided by the City to its then existing Unit members until the member reaches the age of Medicare eligibility at which time the benefit will cease and unit members will only receive the PEMHCA minimum contribution. Unit members who receive the medical bridge can select higher cost plans offered by the City to its then existing members and/or coverage for dependents, however, the additional cost for the plan or additional dependents shall be paid for by the Unit member and not by the City.

Article 12. HOLIDAYS
A. The following paid holidays will be observed on the day specified.

New Year’s Day January 1
st
Martin Luther King’s Birthday 3
rd
Monday in January
Presidents’ Day 3
rd
Monday in February
Cesar Chavez DayFarm Workers Day March 31st
Memorial Day Last Monday in May
Juneteenth June 19th
Independence Day July 4th
Labor Day 1st Monday in September
City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
6 Columbus Day 2nd Monday in October
Veteran's Day November 11th
Thanksgiving Day 4thThursday in November
Day After Thanksgiving Day Day After 4thThursday in November Christmas Eve December 24th
Christmas Day December 25th
B. Any holiday listed in this Section which falls on Sunday will be observed on the following Monday.

C. Any holiday listed in this Section which falls on Saturday will be observed on Friday.

Article 13. ANNUAL LEAVE
A. Unit employees shall combine existing Sick Leave and vacation balances as well as Floating Holidays and Executive Leave to Annual Leave.

B. The purpose of Annual Leave is to provide Unit employees the ability to accrue time for Vacation, Sick Leave and personal leave situations.

C. Unit employees shall accrue Annual Leave hours at a rate of 430 440 hours per year (16.54 92 hours per payroll period), regardless of years of service, whether at the City or elsewhere.

D. T he maximum annual leave balance shall be 900 1000 hours. No Unit employee shall accrue annual leave above 900 1000 hours.

E. As a matter of City policy, Unit employees are encouraged to use annual leave.

Only amounts earned in the current year prior to the cash out date may be elected to convert to cash.

Article 14. ACCRUAL PAYMENT ON RETIREMENT
Upon service or medical retirement under the PERS retirement plan, or in the event of the death of a Unit employee prior to retirement, PERS members with less than fifteen (15) years of service with the City may elect one of the following options for payment of unused annual leave:

A. Convert all remaining annual leave accrued at the time of retirement to cash value at the final rate of pay and apply said cash value to applicable premiums payable under the City’s medical insurance program for the Unit employee and eligible dependents until the cash value is exhausted. This amount is subject to all applicable taxes. In the event that the Unit employee dies prior to exhaustion City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
7 of the cash value of said benefits, the remaining cash value may be applied towards the premiums of covered dependents until exhausted, subject to the conditions and limitations of the applicable insurance policy.

If unit employee is terminated for cause or if the unit employee initiates termination of employment, then the City shall have no obligation to pay severance.

Article 20. BEREAVEMENT LEAVE
All Unit employees receive four (4) two working days of paid Bereavement Leave for the death of a member of an employee’s immediate family (defined as spouse, state-registered domestic partners, children, parents, brother, sister, grandfather, grandmother, mother-in-law, father-in-law, step-father, step-mother, and step-children).

Article 24. SIGNATURES

CITY OF REDLANDS

REDLANDS ASSOCIATION OF

DEPARTMENT DIRECTORS - RADD

EDDIE TEJEDAMARIO SAUCEDO , MAYOR CHRISTOPHER BOATMANRACHEL

TOLBER, PRESIDENT
DATE
ADOPTED, SIGNED AND APPROVED THIS 20TH
XXTH DAY OF JUNE, 20263
City of Redlands | DEPARTMENT DIRECTORS MOU 2023-2026
RADD Approval _____
10 ATTEST:
_______________________________________
Jeanne Donaldson, City Clerk

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF REDLANDS
AND
Redlands Association
of
Fire Management Employees
JULY 1, 2026 – JUNE 30, 2029
City of Redlands & Redlands Association of Fire Management Employees MOU – 2026~2029 Page 2

MEMORANDUM OF UNDERSTANDING

BETWEEN
City of Redlands
AND
Redlands Association of Fire Management Employees
July 1, 2026 – June 30, 2029
Table of Contents
Article 1: Term Of Agreement.............................................................................................................................. 3 Article 2: Preamble............................................................................................................................................... 3 Article 3: Recognition........................................................................................................................................... 3 Article 4: Management Rights.............................................................................................................................. 3 Article 5: Salaries.................................................................................................................................................. 3 Article 6: Retirement............................................................................................................................................ 4 Article 7: Medical Insurance................................................................................................................................. 4 Article 8: Vision Care ............................................................................................................................................ 5 Article 9: Dental Insurance................................................................................................................................... 5 Article 10: Life Insurance........................................................................................................................................ 5 Article 11: Deferred Compensation ....................................................................................................................... 6 Article 12: Educational Incentive............................................................................................................................ 6 Article 13: Certification Pay.................................................................................................................................... 6 Article 14: Uniform Allowance ............................................................................................................................... 6 Article 15: Bilingual Pay.......................................................................................................................................... 6 Article 16: Incident Accommodations.................................................................................................................... 6 Article 17: Longevity Pay ........................................................................................................................................ 6 Article 18: Shift Exchange....................................................................................................................................... 7 Article 19: Shift Differential Pay for Fire Members................................................................................................ 7 Article 20: Holidays................................................................................................................................................. 7 Article 21: Sick Leave.............................................................................................................................................. 8 Article 22: Defined Contribution & Contribution Plans ......................................................................................... 8 Article 23: Vacation................................................................................................................................................ 9 Article 24: Bereavement Leave .............................................................................................................................. 9 Article 25: Personal Leave...................................................................................................................................... 9 Article 26: Executive Leave..................................................................................................................................... 9 Article 27: Compensatory Time Off And Overtime ................................................................................................ 9 Article 28: Workweek...........................................................................................................................................10 Article 29: Fire Battalion Chief Staffing ................................................................................................................10 Article 30: No Strike Provisions............................................................................................................................10 Article 31: Prevailing Benefits..............................................................................................................................10 Article 32: Savings Clause.....................................................................................................................................10 Article 33: Equivalent Benefits.............................................................................................................................10 Article 34: Death Of Employee.............................................................................................................................10 Article 35: Drop Program .....................................................................................................................................11 City of Redlands & Redlands Association of Fire Management Employees MOU – 2026~2029 Page 3 Article 36: Zipper Clause ......................................................................................................................................11 Article 37: Signature.............................................................................................................................................11 Article 1: TERM OF AGREEMENT
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Fire Management Employees (“Association”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 2026 and shall expire on June 30, 2029.

Article 2: PREAMBLE
It is the intent and purpose of this MOU to set forth the understanding of the parties reached as a result of meeting and conferring in good faith regarding, but not limited to, matters relating to the wages, hours, and terms and conditions of employment between the City and the Association.

Article 3: RECOGNITION
The Association is the recognized employee organization for the personnel employed in the Fire Department occupying the classifications of Fire Battalion Chief and Deputy Fire Chief.

Article 4: MANAGEMENT RIGHTS
The authority of the City includes the exclusive right to determine the mission of its constituent departments, commissions and boards; set standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficiency of work or for other legitimate reasons; maintain the efficiency of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content of job classifications; take all necessary actions to carry out its mission in emergencies; exercise complete control and discretion over its organization and the technology of performing its work, provided, however, that the exercise and retention of such rights does not preclude employees or their representatives from meeting and conferring on the effects that decisions on these matters may have on wages, hours and working conditions.

Article 5: SALARIES
All Unit members will receive the following salary increases:

A. Effective the first pay period following approval and adoption of this Agreement: All members will receive a base salary increase of 7%.

B. Effective the first pay period following July 1, 2027: All members will receive a base salary increase of 3%.

C. Effective the first pay period following July 1, 2028: All members will receive a base salary increase of 3%.

D. Salary Range Restructure:
a. Effective the first full pay period after July 1, 2026, the City shall eliminate Step 0 and Step 1 on the salary range for each classification. Employees on Step 0 or 1 at that time shall immediately be placed on the new Step 1. For those employees being advanced to new Step 1, service hours for the purpose of receiving their next merit increase shall not reset. b. Effective the first full pay period after July 1, 2026, the City shall establish three new steps (Steps 5, 6, & 7) at the top of the salary range for each classification. Each of the new steps shall be two and a half percent (2.5%) higher than the preceding step.
c. Advancement to the new Steps 5, 6, & 7 shall continue to occur upon an employee’s anniversary date.

City of Redlands & Redlands Association of Fire Management Employees MOU – 2026~2029 Page 4 Unit members shall not receive any increase to base salary or other compensation during the term of this MOU, other than those increases and compensation expressly set forth in this MOU. Further, all Unit members are responsible for the employee contribution to Social Security and Medicare.

The salary ranges for unit classifications shall be set to the closest rage that ensures a minimum salary differential between unit classifications as follows:

Between Captain and Battalion Chief 15%
Between Battalion Chief and Deputy Chief 21%
Between Deputy Chief and Chief 13%
Article 6: RETIREMENT
A. Only as to unit members hired by the City in any role prior to January 1, 2013 (“Classic Members”), the City shall individually provide the following provisions in its contract with the PERS retirement system:

1. 3% @ 50 Retirement Formula

2. Survivor Continuance

3. Highest Single Year

4. All classic unit members, including those employed by the City prior January 1, 2013, shall individually pay the Government Code section 20678 CALPERS Local Safety Member Contribution as follows: 9% of “compensation” as defined in the Government Code.

B. The Public Employees’ Pension Reform Act (PEPRA) and application to PEPRA defined “New Members”.

Unit members who are “new members” as defined by the PEPRA (California Government Code section 7522.04(f)), shall be required to pay a PERS member contribution in an amount equal to 50% of the normal cost rate for the Defined Benefit Plan provided for by PEPRA, in which the new member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater, pursuant to Government Code section 7522.30.

Those new members shall be enrolled in the 2.7% at 57 benefit plan, as provided for in Government Code section 7522.25(f), with a final compensation measurement period of 36 consecutive months as set forth in Government Code Section 7522.32(a), and their retirement benefits shall be calculated based on “pensionable compensation” (Section 7522.10) rather than compensation earnable (Section 20636).

C. To the extent permitted by law, retirement contributions herein made by the employees shall be made on a pre-tax basis. The City shall report to CalPERS as compensation only the percent, if any, of the member contribution funded by the City.

Article 7: MEDICAL INSURANCE
A. The City shall contribute directly to CalPERS on behalf of each employee three hundred and ninetyseven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989. In addition, the City shall contribute an amount through the City’s cafeteria plan that is equal to the difference between the City’s minimum contribution and the following amounts effective July 1, 2026:

Employee Only $900
Employee +1 $1,700
City of Redlands & Redlands Association of Fire Management Employees MOU – 2026~2029 Page 5 Family $2,200
B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post-employment health plan.

C. The city agrees to provide a stipend of $350.00 on a monthly basis for those employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.

D. RETIREE HEALTH

1. For all unit members who qualify as an “annuitant” under PEMHCA, the City will contribute directly to CalPERS on behalf of each annuitant three hundred and ninety-seven dollars ($397) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989.

2. For unit members hired prior to October 16, 2012, upon service or disability retirement under the PERS retirement plan, or in the event of the death of an employee prior to retirement, employees who have served a minimum of fifteen (15) years of services with the City of Redlands and who qualify as annuitants under PEMHCA, the City shall contribute to a retiree health savings account the difference between the PEMHCA minimum and the cost of medical, dental and vision insurance premiums for the employee, spouse and eligible dependents (“lifetime health insurance”) under the Association’s current medical insurance program existing at the time of retirement. Lifetime health insurance shall be at no cost to the retired employee and shall cover the employee and eligible dependents. The plan shall be equal to that provided from time to time to fulltime employees. Lifetime health insurance includes medical, dental, vision care as provided in the unit MOU.

Unit members hired on and/or after October 16, 2012, shall be ineligible to receive this postretirement benefit.

3. Unit members hired after October 16, 2012 who achieve fifteen (15) years of service and who qualify as an annuitant under PEMHCA shall be entitled to a “medical bridge” program for themselves upon retirement from the City until they become Medicare-eligible. Under the “Medical Bridge,” the City will contribute the difference between the PEMHCA minimum and the cost of employee-only coverage for the least expensive equivalent health, vision and dental insurance plan as provided by the City to its then existing unit members through the CalPERS medical plan until the annuitant reaches the age of Medicare eligibility at which time the benefit will cease and annuitants will only receive the PEMHCA minimum contribution. Unit members who receive the medical bridge program can select coverage for dependents, however, the additional cost must be paid for by the annuitant and will not be paid for by the City.

Article 8: VISION CARE
The City agrees to contribute the entire monthly premium for Association employees and their eligible dependents for a vision insurance plan with Medical Eye Services, or its equivalent.

Article 9: DENTAL INSURANCE
The City shall pay the full monthly premium for dental insurance under the Principal Financial dental plan, or its equivalent, for Association employees and all eligible dependents.

Article 10: LIFE INSURANCE
The City provides Association employees with $25,000 of life insurance. Employees may also purchase additional increments of life insurance at the City’s group rate.

City of Redlands & Redlands Association of Fire Management Employees MOU – 2026~2029 Page 6 Article 11: DEFERRED COMPENSATION
Each January, the City of Redlands shall make an annual contribution to deferred compensation on behalf of each Association employee in the amount of up to $1125 per year + 3% of gross annual salary. The full contribution amount shall be provided based on a complete one year of service in the preceding year. For new Unit employees and employees transferring into the Unit, the amount shall be prorated on a monthly basis for period of service within Unit in the preceding year. In the event that an employee leaves the Unit, they shall receive a final contribution in a prorated amount of up to $1,125 + 3% of salary based on their period of service in their final year in the Unit and shall not receive an additional contribution in January.

Article 12: EDUCATIONAL INCENTIVE
Unit members in the classification of Battalion Chief will qualify for a 10% increase in base salary upon submitting satisfactory proof of completion of a Bachelor’s degree (i.e., official transcripts). Existing unit members as of the adoption of the 2023-2026 Memorandum of Understanding are eligible for a 7.5% increase in base salary upon submitting satisfactory proof of completing of an Associate’s degree (i.e., official transcripts). Unit members in the classification of Deputy Fire Chief will qualify for a 10% increase in base salary upon submitting satisfactory proof of completion of a Master’s degree (i.e., official transcripts).

Article 13: CERTIFICATION PAY
Unit members in the classification of Battalion Chief with a minimum of 6 months as a Chief Officer, Chief Fire Officer, or Fire Officer 3 with the City of Redlands and certified as a Chief Officer by the Office of the State Fire Marshall shall be compensated ten percent (10%) of the employee’s base monthly salary upon submitting satisfactory proof of the Chief Officer Certification.

Unit members in the classification of Deputy Chief with a minimum of 6 months as a Executive Chief Fire Officer or Fire Officer 4 with the City of Redlands and certified as an Executive Chief Fire Officer by the Office of the State Fire Marshall shall be compensated five percent (5%) of the employee’s base monthly salary upon submitting satisfactory proof of the Chief Officer Certification.

Unit members are eligible to receive certification pay for either Chief Officer or Executive Chief Officer, which may not be combined.

Article 14: UNIFORM ALLOWANCE
Association employees shall receive a uniform allowance in the amount of $1700 per year.

Article 15: BILINGUAL PAY
Employees are eligible for bilingual pay in accordance with the City’s Bilingual Pay Program and upon approval by the Department Head and City Manager. Authorized employees shall receive additional compensation in the amount of seventy five dollars ($75) per pay period.

Article 16: INCIDENT ACCOMMODATIONS
Unit members assigned to emergency incidents for extended periods shall be reimbursed for hotel/motel accommodations or other comparable facilities for sleeping and freshening up. With approval of the Fire Chief, the unit member may be reimbursed for up to 1 day prior to the incident to 1 day after the incident assignment. Unit members must comply with requirements related to expense and travel reimbursement as outlined in the City’s Personnel Rule and Regulations.

Article 17: LONGEVITY PAY
City of Redlands & Redlands Association of Fire Management Employees MOU – 2026~2029 Page 7 A. Employees with fourteen (14) years of continuous service with the City shall receive compensation in the amount of five percent (5%) of base salary, effective at the beginning of the pay period closest to completion of their fourteenth (14th) year of service.

B. Employees with nineteen (19) years of continuous service with the City shall receive an additional three percent (3%), effective at the beginning of the pay period closest to completion of their nineteenth (19th) year of service.

C. The 14-year longevity percentages shall be compounded with the 19-year longevity pay. Incentives and leave cash out shall be calculated based on the combination of base salary and longevity pay.

D. The change in the manner in which longevity pay is administered and paid shall not result in any loss of compensation to any member.

Article 18: SHIFT EXCHANGE
Employees shall have the right to exchange shifts on an "unlimited freedom of trade” basis as long as the trade does not interfere with the normal operation of the Fire Department. The Fire Chief shall approve such procedure.

Article 19: SHIFT DIFFERENTIAL PAY FOR FIRE MEMBERS
The Fire Battalion Chiefs who are assigned to a forty (40) hour workweek (or 9/80 schedule) shall be compensated at seven and one half percent (7.5%) times the base hourly rate for Shift Differential Pay. This benefit does not apply to Battalion Chiefs who are assigned to the twenty-four (24) hour shift work schedule.

Article 20: HOLIDAYS
A. The City of Redlands currently observes the following holidays, established by Resolution:

New Year’s Day January 1
Martin Luther King, Jr. Day Third Monday in January
President’s Day Third Monday in February
Farm Workers Day March 31st
Memorial Day Last Monday in May
Juneteenth June 19th
Independence Day July 4th
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11th
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day Fourth Friday in November Christmas Eve December 24th
Christmas Day December 25th
B. In lieu of the above, Shift Battalion Chiefs shall be compensated with fourteen 12-hour holidays per year. This compensation shall be based on 6.46 hours per 14-day pay period.

C. Association employees shall also receive two (2) floating holidays annually. Fire Battalion Chiefs assigned to a twenty-four (24) hour schedule shall receive two (2) twelve (12) hour floating holidays. Floating holidays accrued but not used shall be paid in January of the following year.

D. Holidays shall be paid at a rate of pay applicable to the shift to which the employee is regularly assigned and shall be include supplemental pay (shift differential, education incentive) which may apply to the specific Association employee. The City will report to CalPERS the Holiday Cash Out amounts. This amount is derived from an employee’s left over Holiday Cash Out amount and paid at regular rate, which includes base pay rate and shift differential and educational incentive. The City will report the Holiday Cash Out on an annual basis to CalPERS in January of each year.

City of Redlands & Redlands Association of Fire Management Employees MOU – 2026~2029 Page 8 E. Unit employees that are eligible for and have CTO leave banks may convert their holiday pay hours to their CTO leave bank for the ensuing calendar year.

Article 21: SICK LEAVE

ACCRUAL
Association employees who work a forty (40) hour week shall accrue sick leave at a rate of 3.7 hours per pay period.

Shift employees shall accrue sick leave at a rate of 5.6 hours per pay period; sick leave shall be taken in twenty-four (24) hour shifts.

SICK LEAVE BUY-BACK PROGRAM
Association employees may accumulate sick leave from calendar year to calendar year to an unlimited amount, or participate in the City’s Sick Leave Buy Back program. In order to participate in the buy-back, the employee must have a minimum of 96 hours of sick leave on the books. In November of each year, Association employees may elect to be paid cash at their current hourly rate for any hours earned in the following year in accordance with the schedule below, less any sick leave hours used during that period. The payment will occur in November of the following year.

The election is irrevocable and may not be changed after the election is made.

MAXIMUM BUY-BACK HOURS PER YEAR
40 hour personnel 96
Shift Personnel 144

ACCRUAL PAYMENT UPON RETIREMENT
A. Upon service or medical retirement under the PERS retirement plan, or in the event of the death of an Association employee prior to retirement, members with less than fifteen (15) years’ of service with the City may elect one of the following options for payment of unused sick leave:

1. Convert all remaining sick leave accrued at the time of retirement to cash value at the final rate of pay and deposit in the Post Employment Health Plan (PEHP) where it can be used for applicable premiums payable under the City’s medical insurance program for the Association member and eligible dependents.

In the event that the member dies prior to exhaustion of the cash value of said benefits, the remaining cash value may be applied towards the premiums of covered dependents until exhausted, subject to the conditions and limitations of the PEHP.

2. At the time of service retirement, disability retirement, separation, or at the death of an active Association employee, one hundred percent (100%) of accrued sick leave may be cashed out at the prevailing hourly rate.

3. At the time of retirement or disability retirement extend service credit equal to one hundred percent (100%) of accrued sick leave on the books.

B. In addition, affected Association employees also have the option of being compensated for unused sick leave on the books at the time of retirement by either option A2 or A3 above.

Article 22: DEFINED CONTRIBUTION & CONTRIBUTION PLANS
A. The City shall make available to Association employees a qualified 401a, 401 Defined Contribution, Defined Distribution plan(s) and a Retirement Health Savings Plan, as allowed by law. All programs shall be structured in accordance with the latest IRS rulings.

B. Upon retirement, Association employees shall deposit the cash value of their leave accruals into the 401(a) program up to the maximum allowed by law.

C. Association employees who meet the following requirements the first day afterthe last pay period in October:

1. 24 hours of available floating holiday for shift personnel or 20 hours of floating holiday for 40 hour personnel; and

2. Have a 401(a) account in place with the City
Shall contribute to the 401(a) program leave accruals in the order listed below up to the IRS maximum City of Redlands & Redlands Association of Fire Management Employees MOU – 2026~2029 Page 9 allowed. Deposits will be made on a pre-tax basis.

All sick leave hours in excess of 1350 hours;
All comp time in excess of 24 hours;
All vacation hours in excess of 400 hours.

Conversion and deposit of available time shall occur during the last pay period in November.

Article 23: VACATION
A. Vacation shall accrue for Association employees based on the following schedule:

YEARS OF SERVICE HOURS
1 - 5 (0-59 Mos) 80
6 - 7 (60-83 Mos) 120
8 - 9 (84-107 Mos) 128
10–11 (108-131 Mos) 136
12–13 (132-155 Mos) 144
14–15 (156-179 Mos) 152
16–20 (180-239 Mos) 160
21 (240-251 Mos) 168
22 (252-263 Mos) 176
23 (264-275 Mos) 184
24 (276-287 Mos) 192
25 (288+ Mos) 200
B. Vacation shall accrue for Association members on the 24-hour shift based on the following schedule:

YEARS OF SERVICE SHIFTS
1 – 5 (0-59 Mos) 5
6 – 7 (60-83 Mos) 6
8 – 9 (84-107 Mos) 7
10–13 (108-155 mos) 8
14–15(156-179 Mos) 9
16–19(180-239 Mos) 10
20 + (240+ Mos) 11
Article 24: BEREAVEMENT LEAVE
In the event of the death in the immediate family, Association employeesshall be compensated with two (2) days paid leave. In addition, eligible employees may be allowed to use accrued sick leave with full pay not to exceed three (3) days.

Article 25: PERSONAL LEAVE
Association employees may use up to a maximum of eight (8) hours of accrued sick leave per year for personal leave, subject to advance approval by his/her supervisor.

Article 26: EXECUTIVE LEAVE
Association employees (with the exception of the shift B.C.’s) shall receive one hundred and twenty (120) hours of executive leave annually. Shift B.C.’s shall receive twenty-four (24) hours of executive leave annually. This leave must be used within the calendar year, or it will be removed from the books as of December 31st of each year.

Article 27: COMPENSATORY TIME OFF AND OVERTIME
City of Redlands & Redlands Association of Fire Management Employees MOU – 2026~2029 Page 10 A. Forty (40) hour Chiefs are exempt from the requirements of the FLSA and therefore ineligible to accrue compensatory time off or earn overtime pay at 1 ½ times their hourly rate. Fire Battalion Chiefs shall earn overtime at time and one half for those hours worked in excess of fifty-three (53) hours in one week, only when assigned to and actually working as suppression shift personnel. Fire classifications eligible to receive Compensatory Time shall have a maximum accrual of two hundred-forty (240) hours.

B. Association employeesineligible to receive overtime compensation may receive overtime pay at time and one half of salary in certain situations ONLY if the hours are reimbursed by a third party, such as reimbursable mutual aid calls or billable contracts.

C. Computation of overtime for eligible Association employees shall exclude time paid for holidays, vacation, sick leave, military leave, administrative leave, workers’ compensation, and compensatory time off.

D. Compensation for overtime for eligible employees shall be paid the payday following the seven (7) day work period in which the overtime is earned.

Article 28: WORKWEEK
Association members may be eligible to work a 4/10 schedule. This schedule shall be approved by the Fire Chief.

Article 29: FIRE BATTALION CHIEF STAFFING
The City agrees that a minimum of one (1) Battalion Chief shall be on staff per twenty-four (24) shift.

Article 30: NO STRIKE PROVISIONS
The Association agrees that it shall not authorize, instigate, aid, condone, or engage in any strike which will interrupt or interfere with the operation of the City. The City places the Association on notice of its intention and right to terminate any employee who instigates or engages in any strike or work stoppage which interrupts or interferes with the operation of the City.

Article 31: PREVAILING BENEFITS
All terms and conditions of employment set forth in this MOU, including past practices defined as such by prevailing law and which clarify the meaning of a contract provision, will remain in full force and effect for the term of this MOU unless modified by mutual agreement of the parties. All other matters affecting terms and conditions of employment and which constitute actual past practices defined as such by prevailing law, shall be subject to change during the term of this MOU either by mutual agreement or by virtue of the meet and confer process and any applicable impasse resolution procedures being completed.

Article 32: SAVINGS CLAUSE
Should any provision of this MOU or the application of such provision be rendered or declared invalid by any court action or by reason of any existing or subsequently enacted legislation, the City and Association shall meet and confer immediately upon what constitutes an equivalent benefit to that which was determined to be unlawful. Such equivalent benefit will be implemented retroactive to the date the old benefit ceased. The remaining parts or portions of this MOU shall remain in full force and effect.

Article 33: EQUIVALENT BENEFITS
If during the term of this MOU, another Redlands safety unit negotiates an increase to compensation in the following areas: base salary, tuition reimbursement, education incentive or leave accrual, such terms shall become applicable to Association members who shall receive an equivalent increase in compensation, only if the change in compensation results in a net increase in total compensation (i.e. the value of City provided benefits) to any unit member in the other safety unit.

Article 34: DEATH OF EMPLOYEE
A. If an Association employee dies while on duty, the City shall calculate compensation for the entire shift. The

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF REDLANDS
AND
Redlands Association
of
Fire Management Employees
JULY 1, 202623 – JUNE 30, 202926
City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 2

MEMORANDUM OF UNDERSTANDING

BETWEEN
City of Redlands
AND
Redlands Association of Fire Management Employees
July 1, 202623 – June 30, 202926
Table of Contents
Article 1: Term Of Agreement .............................................................................................................................. 3 Article 2: Preamble ............................................................................................................................................... 3 Article 3: Recognition ........................................................................................................................................... 3 Article 4: Management Rights .............................................................................................................................. 3 Article 5: Salaries .................................................................................................................................................. 3 Article 6: Retirement ............................................................................................................................................ 4 Article 7: Medical Insurance ................................................................................................................................. 4 Article 8: Vision Care ............................................................................................................................................ 5 Article 9: Dental Insurance ................................................................................................................................... 5 Article 10: Life Insurance ........................................................................................................................................ 5 Article 11: Deferred Compensation ....................................................................................................................... 6 Article 12: Educational Incentive ............................................................................................................................ 6 Article 13: Certification Pay .................................................................................................................................... 6 Article 14: Uniform Allowance ............................................................................................................................... 6 Article 15: Bilingual Pay .......................................................................................................................................... 6 Article 16: Incident Accommodations .................................................................................................................... 6 Article 17: Longevity Pay ........................................................................................................................................ 6 Article 18: Shift Exchange ....................................................................................................................................... 7 Article 19: Shift Differential Pay for Fire Members ................................................................................................ 7 Article 20: Holidays ................................................................................................................................................. 7 Article 21: Sick Leave .............................................................................................................................................. 8 Article 22: Defined Contribution & Contribution Plans .......................................................................................... 8 Article 23: Vacation ................................................................................................................................................ 9 Article 24: Bereavement Leave .............................................................................................................................. 9 Article 25: Personal Leave ...................................................................................................................................... 9 Article 26: Executive Leave ................................................................................................................................... 10 Article 27: Compensatory Time Off And Overtime .............................................................................................. 10 Article 28: Workweek ........................................................................................................................................... 10 Article 29: Fire Battalion Chief Staffing ................................................................................................................ 10 Article 30: No Strike Provisions ............................................................................................................................ 10 Article 31: Prevailing Benefits .............................................................................................................................. 10 Article 32: Savings Clause ..................................................................................................................................... 10 Article 33: Equivalent Benefits ............................................................................................................................. 11 Article 34: Death Of Employee ............................................................................................................................. 11 Article 35: Drop Program ..................................................................................................................................... 11 City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 3 Article 36: Zipper Clause ...................................................................................................................................... 11 Article 36: Signature ............................................................................................................................................. 11 Article 1: TERM OF AGREEMENT
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Fire Management Employees (“Association”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 202623 and shall expire on June 30, 202926.

Article 5: SALARIES
All Unit members will receive the following salary increases:

A. Effective the first pay period following approval and adoption of this Agreement: All members will receive a base salary increase of 7 7%.

B. Effective the first pay period following July 1, 20274: All members will receive a base salary increase of 2 3%.

C. Effective the first pay period following July 1, 20285: All members will receive a base salary increase of 2 3%.

D. Salary Range Restructure:
a. Effective the first full pay period after July 1, 2026, the City shall eliminate Step 0 and Step 1 on the salary range for each classification. Employees on Step 0 and Step 1 at that time shall immediately be placed on the new Step 1. For those employees being advanced to the new Step 1, service hours for the purpose of receiving their next merit increase shall not reset. b. Effective the first full pay period after July 1, 2026, the City shall establish three new steps (Steps 5, 6, & 7) at the top of the salary range for each classification. Each of the new steps shall be two and a half percent (2.5%) higher than the preceding step.
a.c. Advancement to the new Steps 5, 6, & 7 shall continue to occur upon an employee’s anniversary date.

Unit members shall not receive any increase to base salary or other compensation during the term of this MOU, other than those increases and compensation expressly set forth in this MOU. Further, all Unit members are responsible for the employee contribution to Social Security and Medicare.

City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 4 The salary ranges for unit classifications shall be set to the closest rage that ensures a minimum salary differential between unit classifications as follows:

1. 3% @ 50 Retirement Formula

2. Survivor Continuance

3. Highest Single Year

B. The Public Employees’ Pension Reform Act (PEPRA) and application to PEPRA defined “New Members”.

July 1, 20232026 January 1, 20242027
January 1, 2025
2028
Employee Only $ 800 900 $ 800 900 $ 800900
Employee +1 $ 1,600 1,700 $ 1,600 1,700 $ 1,700600
Family $ 2,100 2,200 $ 2,100 2,200
City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 5 $ 2,200100
B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post-employment health plan.

C. The city agrees to provide a stipend of $350.00 on a monthly basis for those employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.

D. RETIREE HEALTH

Unit members hired on and/or after October 16, 2012, shall be ineligible to receive this postretirement benefit.

Article 10: LIFE INSURANCE
The City provides Association employees with $25,000 of life insurance. Employees may also purchase additional increments of life insurance at the City’s group rate.

City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 6 Article 11: DEFERRED COMPENSATION
Each April January, the City of Redlands shall make an annual contribution to deferred compensation on behalf of each Association employee in the amount of up to $1125 per year + 3% of gross annual salary. The full contribution amount shall be provided based on a complete one year of service in the preceding year. For new Unit employees and employees transferring into the Unit, the amount shall be prorated on a monthly basis for period of service within Unit in the preceding year. In the event that an employee leaves the Unit, they shall receive a final contribution in a prorated amount of up to $1,125 + 3% of salary based on their period of service in their final year in the Unit and shall not receive an additional contribution in January.

Article 13: CERTIFICATION PAY
Unit members in the classification of Battalion Chief with a minimum of 1 year6 months as a Chief Officer, Chief Fire Officer, or Fire Officer 3 with the City of Redlands and certified as a Chief Officer by the Office of the State Fire Marshall shall be compensated ten percent (103%) of the employee’s base monthly salary upon submitting satisfactory proof of the Chief Officer Certification.

Unit members in the classification of Deputy Chief with a minimum of 1 year6 months as a Chief OfficerExecutive Chief Fire Officer or Fire Officer 4 with the City of Redlands and certified as an Executive Chief Fire Officer by the Office of the State Fire Marshall shall be compensated five percent (5%) of the employee’s base monthly salary upon submitting satisfactory proof of the Chief Officer Certification.

Unit members are eligible to receive certification pay for either Chief Officer or Executive Chief Officer, which may not be combined.

Article 14: UNIFORM ALLOWANCE
Association employees shall receive a uniform allowance in the amount of $1700 per year.

Article 15:Article 16: INCIDENT ACCOMMODATIONS
Unit members assigned to emergency incidents for extended periods shall be reimbursed for hotel/motel accommodations or other comparable facilities for sleeping and freshening up. With approval of the Fire Chief, the unit member may be reimbursed for up to 1 day prior to the incident to 1 day after the incident assignment. Unit members must comply with requirements related to expense and travel reimbursement as outlined in the City’s Personnel Rule and Regulations.

Article 16:Article 17: LONGEVITY PAY
City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 7 Employees in the unit with 19 years of continuous service with the City of Redlands shall advance to Step 7 on the salary schedule. In the event that a unit member is not at Step 6 when he/she is eligible for Step 7, the unit member will advance to the next step in their salary range and continue to advance based on merit until the unit member reaches Step 7.

Employees in the unit with 14 years of continuous service with the City of Redlands shall advance to Step 6 on the salary schedule. In the event that a unit member is not at Step 5 when he/she is eligible for Step 6, the unit member will advance to the next step in their salary range and continue to advance based on merit until the unit member reaches Step 6.

A. Employees with fourteen (14) years of continuous service with the City shall receive compensation in the amount of five (5) percent (5%) of base salary, effective at the beginning of the pay period closest to completion of their fourteenth (14th) year of service.

B. Employees with nineteen (19) years of continuous service with the City shall receive an additional three (3) percent (3%), effective at the beginning of the pay period closest to completion of their nineteenth (19th) year of service.

C. The 14-year longevity percentages shall be compounded with the 19-year longevity pay. Incentives and leave cash out shall be calculated based on the combination of base salary and longevity pay.

D. The change in the manner in which longevity pay is administered and paid shall not result in any loss of compensation to any member.

Article 17:Article 19: SHIFT DIFFERENTIAL PAY FOR FIRE MEMBERS The Fire Battalion Chiefs who are assigned to a forty (40) hour workweek (or 9/80 schedule) shall be compensated at seven and one half percent (7.5%) times the base hourly rate for Shift Differential Pay. This benefit does not apply to Battalion Chiefs who are assigned to the twenty-four (24) hour shift work schedule.

Article 18:Article 20: HOLIDAYS
A. The City of Redlands currently observes the following holidays, established by Resolution:

New Year’s Day January 1
Martin Luther King, Jr. Day Third Monday in January
President’s Day Third Monday in February
Cesar Chavez DayFarm Workers Day March 31st
Memorial Day Last Monday in May
Juneteenth June 19th
Independence Day July 4th
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11th
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day Fourth Friday in November Christmas Eve December 24th
Christmas Day December 25th
B. In lieu of the above, Shift Battalion Chiefs shall be compensated with fourteen 12-hour holidays per year. This compensation shall be based on 6.46 hours per 14-day pay period.

City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 8 C. Association employees shall also receive two (2) floating holidays annually. Fire Battalion Chiefs assigned to a twenty-four (24) hour schedule shall receive two (2) twelve (12) hour floating holidays. Floating holidays accrued but not used shall be paid in January of the following year.

E. Unit employees that are eligible for and have CTO leave banks may convert their holiday pay hours to their CTO leave bank for the ensuing calendar year.

Article 19:Article 21: SICK LEAVE

ACCRUAL
Association employees who work a forty (40) hour week shall accrue sick leave at a rate of 3.7 hours per pay period.

Shift employees shall accrue sick leave at a rate of 5.6 hours per pay period; sick leave shall be taken in twenty-four (24) hour shifts.

The election is irrevocable and may not be changed after the election is made.

MAXIMUM BUY-BACK HOURS PER YEAR
40 hour personnel 96
Shift Personnel 144

3. At the time of retirement or disability retirement extend service credit equal to one hundred percent (100%) of accrued sick leave on the books.

B. In addition, affected Association employees also have the option of being compensated for unused sick leave on the books at the time of retirement by either option A2 or A3 above.

Article 20:Article 22: DEFINED CONTRIBUTION & CONTRIBUTION PLANS A. The City shall make available to Association employees a qualified 401a, 401 Defined Contribution, Defined City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 9 Distribution plan(s) and a Retirement Health Savings Plan, as allowed by law. All programs shall be structured in accordance with the latest IRS rulings.

B. Upon retirement, Association employees shall deposit the cash value of their leave accruals into the 401(a) program up to the maximum allowed by law.

C. Association employees who meet the following requirements the first day after the last pay period in October:

1. 24 hours of available floating holiday for shift personnel or 20 hours of floating holiday for 40 hour personnel; and

2. Have a 401(a) account in place with the City
Shall contribute to the 401(a) program leave accruals in the order listed below up to the IRS maximum allowed. Deposits will be made on a pre-tax basis.

All sick leave hours in excess of 1350 hours;
All comp time in excess of 24 hours;
All vacation hours in excess of 400 hours.

Conversion and deposit of available time shall occur during the last pay period in November.

Article 21:Article 23: VACATION
A. Vacation shall accrue for Association employees based on the following schedule:

YEARS OF SERVICE SHIFTS
1 – 5 (0-59 Mos) 5
6 – 7 (60-83 Mos) 6
8 – 9 (84-107 Mos) 7
10–13 (108-155 mos) 8
14–15(156-179 Mos) 9
16–19(180-239 Mos) 10
20 + (240+ Mos) 11
Article 22:Article 24: BEREAVEMENT LEAVE
In the event of the death in the immediate family, Association employees shall be compensated with two (2) days paid leave. In addition, eligible employees may be allowed to use accrued sick leave with full pay not to exceed three (3) days.

Article 23:Article 25: PERSONAL LEAVE
City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 10 Association employees may use up to a maximum of eight (8) hours of accrued sick leave per year for personal leave, subject to advance approval by his/her supervisor.

Article 24:Article 26: EXECUTIVE LEAVE
Association employees (with the exception of the shift B.C.’s) shall receive one hundred and twenty (120) hours of executive leave annually. Shift B.C.’s shall receive twenty-four (24) hours of executive leave annually. This leave must be used within the calendar year, or it will be removed from the books as of December 31st of each year.

Article 25:Article 27: COMPENSATORY TIME OFF AND OVERTIME A. Forty (40) hour Chiefs are exempt from the requirements of the FLSA and therefore ineligible to accrue compensatory time off or earn overtime pay at 1 ½ times their hourly rate. Fire Battalion Chiefs shall earn overtime at time and one half for those hours worked in excess of fifty-three (53) hours in one week, only when assigned to and actually working as suppression shift personnel. Fire classifications eligible to receive Compensatory Time shall have a maximum accrual of two hundred-forty (240) hours.

B. Association employees ineligible to receive overtime compensation may receive overtime pay at time and one half of salary in certain situations ONLY if the hours are reimbursed by a third party, such as reimbursable mutual aid calls or billable contracts.

D. Compensation for overtime for eligible employees shall be paid the payday following the seven (7) day work period in which the overtime is earned.

Article 26:Article 28: WORKWEEK
Association members may be eligible to work a 4/10 schedule. This schedule shall be approved by the Fire Chief.

Article 27:Article 29: FIRE BATTALION CHIEF STAFFING
The City agrees that a minimum of one (1) Battalion Chief shall be on staff per twenty-four (24) shift.

Article 28:Article 30: NO STRIKE PROVISIONS
The Association agrees that it shall not authorize, instigate, aid, condone, or engage in any strike which will interrupt or interfere with the operation of the City. The City places the Association on notice of its intention and right to terminate any employee who instigates or engages in any strike or work stoppage which interrupts or interferes with the operation of the City.

Article 29:Article 31: PREVAILING BENEFITS
All terms and conditions of employment set forth in this MOU, including past practices defined as such by prevailing law and which clarify the meaning of a contract provision, will remain in full force and effect for the term of this MOU unless modified by mutual agreement of the parties. All other matters affecting terms and conditions of employment and which constitute actual past practices defined as such by prevailing law, shall be subject to change during the term of this MOU either by mutual agreement or by virtue of the meet and confer process and any applicable impasse resolution procedures being completed.

Article 30:Article 32: SAVINGS CLAUSE
Should any provision of this MOU or the application of such provision be rendered or declared invalid by any court action or by reason of any existing or subsequently enacted legislation, the City and Association shall meet and confer immediately upon what constitutes an equivalent benefit to that which was determined to be unlawful. Such equivalent benefit will be implemented retroactive to the date the old benefit ceased. The remaining parts or portions of this MOU shall remain in full force and effect.

City of Redlands & Redlands Association of Fire Management Employees MOU – 20263~20296 Page 11 Article 31:Article 33: EQUIVALENT BENEFITS
If during the term of this MOU, another Redlands safety unit negotiates an increase to compensation in the following areas: base salary, tuition reimbursement, education incentive or leave accrual, such terms shall become applicable to Association members who shall receive an equivalent increase in compensation, only if the change in compensation results in a net increase in total compensation (i.e. the value of City provided benefits) to any unit member in the other safety unit.

Article 32:Article 34: DEATH OF EMPLOYEE
A. If an Association employee dies while on duty, the City shall calculate compensation for the entire shift. The eligible dependents of deceased employees shall be entitled to benefits as follows:

1. Sick leave accruals, lifetime medical insurance and other applicable benefits shall be calculated and/or compensated according to the eligibility requirements stated in the current MOU.

2. In the event the deceased employee qualified for a service retirement (i.e. age 50 and with a minimum of five (5) years of service with the City), the City shall calculate and/or compensate benefits in the same manner as an employee service retirement.

B. The City will inter at Hillside Cemetery, at no cost to the firefighter or his/her family, any active firefighter who dies in the line of duty or dies from any diseases that is recognized by the State of California as being associated with the job of being a firefighter.

Article 33:Article 35: DROP PROGRAM
Should the Deferred Retirement Optional Program (DROP) become available, upon the request of the Association, the City agrees to meet regarding the possible implementation of the program.

Article 34:Article 36: ZIPPER CLAUSE
The parties agree that all negotiable items have been discussed during negotiations leading to this MOU, including salaries and benefits, and conditions of employment and therefore further agree that negotiations will not be reopened on any item during the life of this MOU except my mutual agreement or as provided elsewhere in this MOU.

Article 3735: SIGNATURE

CITY OF REDLANDS

REDLANDS ASSOCIATION OF FIRE MANAGEMENT

EMPLOYEES

Joshua Hannan, President Date
Mario Saucedo, Mayor Date
Attest:

Jeanne Donaldson, City Clerk Date

57481131.1/006103.00032

MEMORANDUM OF UNDERSTANDING

BETWEEN THE

CITY OF REDLANDS

AND THE

REDLANDS ASSOCIATION OF

MID-MANAGEMENT EMPLOYEES
July 1, 2012 - June 30, 2015

MEMORANDUM OF UNDERSTANDING

BETWEEN THE

CITY OF REDLANDS

AND THE

REDLANDS ASSOCIATION OF

MID-MANAGEMENT EMPLOYEES
JULY 1, 2023 2026 - JUNE 30, 20262029
City of Redlands | RAMME MOU 20232026-20262029
RAMME Approval _____
2 MEMORANDUM OF UNDERSTANDING
Between
The City of Redlands
And
Redlands Association of Mid-Management Employees
July 1, 2023 2026 – June 30, 20262029

TABLE OF CONTENTS
Article 1. Term of Memorandum of Understanding ............................................................... 4 Article 2. Preamble ................................................................................................................ 4 Article 3. Recognition ............................................................................................................ 4 Article 4. Management rights ................................................................................................ 5 Article 5. Probationary Period ............................................................................................... 6 Article 6. Salaries ................................................................................................................... 6 Article 7. Retirement ............................................................................................................. 6 Article 8. Deferred Compensation ......................................................................................... 7 Article 9. 401 A PLAN ............................................................................................................. 7 Article 10. Uniform Allowance ................................................................................................. 8 Article 11. Education Incentive Pay ......................................................................................... 8 Article 12. Longevity Pay ......................................................................................................... 8 Article 13. Working Out Of Classification Pay .......................................................................... 9 Article 14. Special Assignment Pay .......................................................................................... 9 Article 15. Health Insurance .................................................................................................... 9 Article 16. Dental Insurance .................................................................................................. 11 Article 17. Vision Care ........................................................................................................... 11 Article 18. Life Insurance ....................................................................................................... 11 Article 19. Vacation ............................................................................................................... 11 Article 20. Sick Leave ............................................................................................................. 11 Article 21. Bereavement Leave .............................................................................................. 12 Article 22. Executive Leave .................................................................................................... 12 Article 23. Leave Of Absence Without Pay ............................................................................. 13 Article 24. Military Leave....................................................................................................... 13 Article 25. Holidays ............................................................................................................... 13 Article 26. Tuition Reimbursement ........................................................................................ 14 Article 27. State Disability Insurance (S.D.I.) .......................................................................... 14 Article 28. Personnel File ....................................................................................................... 14 Article 29. Employees Organization Rights ............................................................................ 14 Article 30. Direct Deposit ...................................................................................................... 16 City of Redlands | RAMME MOU 20232026-20262029
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3 Article 31. Fair Labor Standards Act ....................................................................................... 16 Article 32. Prevailing Benefits ................................................................................................ 16 Article 33. Savings Clause ...................................................................................................... 16 Article 34. Bilingual Pay ......................................................................................................... 16 Article 35. Disciplinary Procedure .......................................................................................... 16 Article 36. Grievance Procedure ............................................................................................ 21 Article 37. Layoff Procedure .................................................................................................. 25 Article 38. Zipper Clause ........................................................................................................ 27 City of Redlands | RAMME MOU 20232026-20262029
RAMME Approval _____
4 Article 1. TERM OF MEMORANDUM OF UNDERSTANDING
The City of Redlands (City) and the Redlands Association of Mid-Management Employees (RAMME) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 2023 2026 and shall expire on June 30, 20262029.

Article 3. RECOGNITION
A unit employee shall be defined as an employee of the City and assigned to the RAMME unit by the City Manager in accordance with City policies and procedures. The following classifications are assigned to the Association’s Unit:

Accountant
Administrative Analyst
Adult Literacy Coordinator
Airport Supervisor
Assistant Engineer
Associate Engineer
Budget Analyst
Assistant City Clerk
Cemetery Manager
Civil Engineer
Code Enforcement Supervisor
Communications Specialist
Construction Manager
Deputy Fire Marshal
Economic Development Coordinator
Emergency Operations Specialist
EMS Coordinator
Facilities and Community SServices Manager
Field Services CoordinatorSupervisor
Field Services Project Supervisor
Field Services Superintendent
Fleet Services CoordinatorSupervisor
GIS Supervisor
Grants Coordinator
Homeless Solutions CoordinatorManager
Human Resources AnalystCoordinator
Human Resources Specialist
IT Systems Supervisor
Laboratory Quality Manager
City of Redlands | RAMME MOU 20232026-20262029
RAMME Approval _____
5 Laboratory Manager
Management Analyst
Network Engineer
Payroll Coordinator
Police Operations Coordinator
Principal Accountant
Principal Librarian
Principal Planner
Project Manager
Recreation Supervisor
Revenue SupervisorManager
Risk Management Specialist
Senior Accountant
Senior Civil Engineer
Senior Librarian
Senior Planner
Senior Plans Examiner
Solid Waste Manager
Solid Waste Collections Supervisor
Special Collections Manager
Sr. Accountant
Sr. Civil Engineer
Sr. Librarian
Sr. Plans Examiner
Substance Use Navigator
Support Services Supervisor
Sustainability Coordinator
Technical Services Coordinator
Utilities Customer Service Supervisor
Water Distribution Superintendent
Water Production/Maintenance Superintendent
Article 4. MANAGEMENT RIGHTS
The authority of the City includes the exclusive right to:

A. determine the mission of its constituent departments, commissions and boards, with the exception of boards or commissions granted authority under State Law, per City of Redlands Resolution 6757;
B. set standards of service;
C. determine the procedures and standards of selection for employment and promotion; D. direct its employees;
E. take disciplinary action;
F. relieve its employees from duty because of lack of work or for other legitimate reasons; G. maintain the efficiency of work;
H. maintain the efficiency of governmental operations;
I. determine the methods, means and personnel by which government operations are to be conducted;
City of Redlands | RAMME MOU 20232026-20262029
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6 J. determine the content of job classifications; and
K. Take all necessary actions to carry out its mission in emergencies; exercise complete control and discretion over its organization and the technology of performing its work, provided, however, that the exercise and retention of such rights does not preclude employees or their representatives from meeting and conferring over the effects that decisions on these matters may have on wages, hours and other terms and conditions of employment.

Article 5. PROBATIONARY PERIOD
Unit employees hired by the City, shall serve a probationary period of twelve (12) months. Unit employees who are promoted shall serve a probationary period of six (6) months. Probationary periods may be extended as set forth in the City's Personnel Rules and Regulations.

Article 6. SALARIES
All Unit employees will receive the following salary increases:

A. Effective the first full payroll period following July 1, 20232026, all Unit employees will receive a four seven X percent (74%) increase to base salary.

B. Effective the first full payroll period following July 1, 20242027, all Unit employees will receive a two three percent (23%) increase to base salary over the prior year.

C. Effective the first full payroll period following July 1, 20252028, all Unit employees will receive a two three X percent (23X%) increase to base salary over the prior year.

D. Salary Range Restructure:
a. Effective the first full pay period after July 1, 2026, the City shall eliminate Step 0 on the salary range for each classification. Employees on Step 0 at that time shall immediately be placed on Step 1. For those employees being advanced to Step 1, service hours for the purpose of receiving their next merit increase shall not reset.
b. Effective the first full pay period after July 1, 2026, the City shall establish three new steps (Steps 5, 6 and 7) at the top of the salary range for each classification. Each of the new steps shall be approximately two and a half percent (2.5%) higher than the preceding step. a.c.Advancement to the new Steps 5, 6, and 7 shall continue to occur upon an employee’s anniversary date.

Article 7. RETIREMENT
A. Classic Members

1. All “classic” unit members including those first employed on and after March 11, 2010, shall personally fund 100% of the 7% of compensation earnable as and for the individual member’s normal employee PERS contribution. (The term “classic” member is defined in the Public Employee’s Pension Reform Act of 2013 (“PEPRA.”)
All “classic” member normal contributions required to be paid by the member, whether paid by the employer or the member, shall be credited to the member’s CalPERS account.

City of Redlands | RAMME MOU 20232026-20262029
RAMME Approval _____
7 To the extent that this MOU mandates payment by the City of a part of the above “classic” unit member’s normal employee PERS contribution, the City shall make said payments on a pre-tax basis to the extent authorized to do so by the IRS and the Franchise Tax Board.

2. The City shall continue to include in this contract with CalPERS, the following provisions:

B. New Members

1. The Public Employee’s Pension Reform Act of 2013 – “PEPRA” (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist, during and after the term of this MOU, as described below.

2. Unit employees who are “new members” as defined in the PEPRA, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said newly hired member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (Government Code section 7522.30)

3. Unit employees who are “new members,” as defined in the PEPRA, on and after January 1, 2013, shall be enrolled in the retirement plan of 2%@62 (Government Code section 7522.20(a), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a).)
Article 8. DEFERRED COMPENSATION
The City will provide a 457 (b) deferred compensation plan to Unit employees. Unit employees may make voluntary contributions to the 457 (b) plan up to the maximum allowed by law. Participation by Unit employees is optional and all costs shall be borne by the participating employee.

Article 9. 401 A PLAN
City shall pay the cost to administer a 401 A Retirement Plan. The City agrees to make a contribution in January of each year, on behalf of each Unit employee in the amount of up to one thousand two hundred dollars ($1,200) per year to the City’s 401(a) deferred compensation plan. The full contribution amount to 401 (A) shall be provided based on a complete one year of service in the preceding year. For new Unit employees, and and employees transferring into the Unit, and employees separating from City service before the scheduled payment date, the amount shall be prorated on a monthly basis for period of service within Unit. In the event that an employee leaves the Unit, they shall receive a final contribution in a prorated amount up to one thousand two hundred dollars ($1,200) of salary based on their period of service in their final year in the Unit and shall not receive any additional contribution in January.

HIGHEST SINGLE YEAR

SURVIVOR CONTINUANCE
2% @ 55 RETIREMENT FORMULA
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8 Upon retirement from the City, Unit employees shall deposit the cash value of vacation leave, floating holidays, and eligible sick leave into the 401(a) deferred compensation account in the maximum amount allowable by the IRS.

Article 10. UNIFORM ALLOWANCE
A. The Deputy Fire Marshall and Emergency Services Coordinator who are on payroll at the time the check is issued shall receive a uniform allowance of one thousand one hundred dollars ($1,100) per year. Two checks of five hundred fifty dollars ($550) each shall be issued each year, one in July and one in January.

B. The City will provide a required footwear allowance in the amount of twoone hundred and fifty dollars ($2150) to be paid in July of each year to the following classifications, provided they are on payroll at the time the check is issued: Airport Supervisor, Cemetery Manager, Construction Manager, Deputy Fire Marshal, Emergency Operations Specialist, Field Services Superintendent, Homeless Solutions Coordinator, Laboratory Quality Manager, Field Services Coordinator, Field Services Project Supervisor, Laboratory Manager, Solid Waste Manager, Solid Waste Supervisor,Substance Use Navigator, Water Production Maintenance Superintendent, Water Distribution Superintendent, and Fleet Services Coordinator.

Article 11. EDUCATION INCENTIVE PAY
Employees will qualify for a three percent (3%) increase in base salary upon submitting satisfactory proof of a Master or Doctoral degree (i.e., official transcripts) where such degree is not required as part of the employee’s minimum job qualifications. If a Master’s degree is required as part of the employee’s minimum job qualifications, the employee will only be eligible for education incentive pay upon submitting satisfactory proof of a Doctoral degree.

Article 12. LONGEVITY PAY
A. Employees with fifteen (15) years continuous service with the City, shall receive compensation in the amount of three (3) percent (3%) of base salary, effective the beginning of the pay period closest to completion of their fifteenth (15th) year of service.advance to Step “5” on the salary schedule which shall be a minimum of three percent (3%) higher than Step “4,” effective at the beginning of the pay period closest to completion of their fifteenth (15th) year of service.

B. Employees with twenty (20) years continuous service with the City, shall receive compensation of compensation of an additional two (2) percent (2%), effective the beginning of the pay period beginning closest to completion of their twentieth (20th) year of service.advance to Step “6” on the salary schedule which shall be a minimum of two percent (2%) higher than Step “5,” effective at the beginning of the pay period closest to completion of their twentieth (20th) year of service.

C. The 15- year longevity percentages shall be compounded with the 20- year longevity pay. Incentives and leave cash out shall be calculated based on the combination of base salary and longevity pay.

C. In the event that an employee is not at Step 4 when he/she is eligible for Step 5, at the completion of fifteen (15) years of service, the Unit employee will advance to the next step in their salary range, and continue to advance within the range based on merit until the employee reaches Step 5.

City of Redlands | RAMME MOU 20232026-20262029
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9 D. In the event that an employee is not at Step 5 when he/she is eligible for Step 6, at the completion of twenty (20) years of service, the Unit employee will advance to the next step in their salary range, and continue to advance within the range based on merit until the employee reaches Step 6.

Article 13. INSURANCE ADJUSTMENT
The City agrees to pay each Unit employee a cash payment in the amount of one hundred fifty dollars ($150) to offset the co-payments and deductibles payable under their medical insurance plan. This insurance adjustment shall be pro-rated at twelve dollars and fifty cents ($12.50) per month.

Article 14.Article 13. WORKING OUT OF CLASSIFICATION PAY Whenever the needs of the City require a Unit employee to temporarily perform the duties of a higher classification than that in which the employee is currently employed, said employee shall be entitled to receive out of classification pay for the period of time that the employee works out of classification.

Employees approved to work out of class shall be placed at Step 0 of the classification in which they are working. If Step 0 does not provide a five-percent (5%) increase, the employee will be placed at the step on the range that provides a 5% increase. Placement will not exceed Step 4 of the range.

In order to receive out of classification pay the following provisions must occur:

A. A vacancy or absence must exist for out of classification pay to be paid.

B. The employee receiving out of classification pay must perform essentially all of the functions of the higher classification in order to receive compensation.

C. The employee shall meet the minimum qualifications for the higher classification in order to be eligible for out of classification pay.

D. The employee shall have completed five (5) consecutive full work days in the higher classification and shall then be eligible for out of classification pay commencing with the sixth (6th) consecutive day working out of classification and continuing for all consecutive days worked thereafter.

Working out of class pay will only be authorized upon recommendation by the Department Director and advanced approval by to the Human Resources/Risk Management Director by the Department Director, and will require a Personnel Action Form with supporting documentation justifying the assignment.

Article 15.Article 14. SPECIAL ASSIGNMENT PAY
Special assignment pay will only be authorized upon recommendation to the City Manager by the Department Head and will require a Personnel Action Form with supporting documentation justifying the special assignment. Unit employees performing in a capacity beyond the normal scope of their duties, and with increased and direct responsibility and personal liability for City operations shall be eligible for Special Assignment Pay. Special Assignment Pay shall be at a flat rate not to exceed ten percent (10%) of base salary. Special Assignment Pay will only be authorized upon Department Head recommendation, Human Resources Director concurrence and City Manager approval.

Article 16.Article 15. HEALTH INSURANCE
A. The City shall contribute directly to CalPERS on behalf of each employee three hundred and ninetyseven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989. In addition, the City shall contribute an amount through the City’s cafeteria plan City of Redlands | RAMME MOU 20232026-20262029
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10 that is equal to the difference between the City’s minimum PEMHCA contribution and the following amounts:

B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post employment health plan.

C. The City agrees to provide a stipend of $350.00 on a monthly basis for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.

C.D. Insurance Adjustment: In July of each year, the City shall pay each unit employee a cash payment in the amount of one hundred and fifty dollars ($150) to offset the co-payments and deductibles for medical insurance plans.

RETIREE INSURANCE BENEFITS

2. After completion of twenty (20) years of continuous service with the City, and upon service retirement under the CalPERS retirement plan, a Unit employee hired prior to March 11, 2010 who qualifies as an annuitant under PEMHCA may elect to receive as a City contribution to a retiree health savings account the difference between the PEMHCA minimum and the cost of fully paid medical insurance under the City’s medical insurance program for the Unit employee and their eligible dependents. Unit employees hired on or after March 11, 2010 are not eligible for this benefit.

3. Unit members with ten (10) years of continuous employment with the City who concurrently retire from the City and the CalPERS system who qualify as an annuitant under PEMHCA may elect to receive the “Medical Bridge.” Under the “Medical Bridge,” the City will contribute the difference between the PEMHCA minimum and the cost of single party coverage for the retired unit member only for the lowest cost medical and dental insurance plans as provided by the City to its then existing Unit members until the member reaches the age of Medicare eligibility at which time the benefit will cease and unit members will only receive the PEMHCA minimum contribution. Unit members who receive the medical bridge can select higher cost plans offered by the City to its then existing members and/or coverage for dependents, however, the additional cost for the plan or additional dependents shall be paid for by the Unit member and not by the City.

COVERAGE LEVEL

TOTAL CITY CONTRIBUTION
EFFECTIVE JULY 1, 20232026

EFFECTIVE
JANUARY 1, 20242027

EFFECTIVE
JANUARY 1, 20252028
Employee Only: $750800 $900 $800$775 $800
Employee Plus One Dependent: $1,500600 $1700 $1,600$1,550 $1,600 Employee plus Two or more
Dependents:
$1,9502,100$2200 $2,100$2,025 $2,100
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11 Article 17.Article 16. DENTAL INSURANCE
The City agrees to pay the full monthly premium for dental insurance under the City’s dental plan or its equivalent for each Unit employee and all eligible dependents.

Article 18.Article 17. VISION CARE
The City shall reimburse Unit employees an amount up to three hundred dollars ($300) per year for the purchase of frames and lenses or contact lenses for the Unit employee or their eligible dependents.

Article 19.Article 18. LIFE INSURANCE
The City shall contribute the monthly premium for a life insurance policy in the amount of twenty five thousand dollars ($25,000) for all Unit employees.

Article 20.Article 19. VACATION
A. The vacation accrual for employees in the unit shall be as follows:

YEARS/MONTHS OF SERVICE ANNUAL
ACCRUAL RATE – HOURS
0 – 5 (0-59 months) 80
6 – 7 (60-83 months) 120
8 – 10 (84-119 months) 140
11–14 (120-167 months) 160
15+ (168 months+) 200
B. Effective December 1, 2023, the maximum vacation accrual leave balance shall be 1000 hours. In November of each calendar year, all vacation hours over 800 will be paid off at the Unit employee’s current hourly rate.

Article 21.Article 20. SICK LEAVE
A. ACCRUAL
Sick leave shall accrue on an hourly basis at the rate of eight (8) hours per calendar month of service.

B. BUY BACK
In December November of each calendar year, each affected unit employee may elect to be paid cash at his/her current hourly rate for each sick leave day accumulated during the following calendar year in excess of six (6) sick leave days to be paid in November of the following year. A total of one (1) year’s accumulation of ninety-sick (96) hours must be on the books prior to any compensation being paid. This election is irrevocable and may not be changed once the election is made. In lieu of this buy back, Unit employees may choose to accumulate all sick leave days, from calendar year to calendar year, to an unlimited amount.

C. SICK LEAVE USE UPON RETIREMENT

1. Unit employees taking service retirement under the PERS retirement plan may elect to have all sick leave accrued at the time of retirement converted to cash value at their final rate of pay and deposited in the Post Employment Health Plan (PEHP) where it can be used for applicable medical City of Redlands | RAMME MOU 20232026-20262029
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12 insurance premiums for the Unit employee and their eligible dependents. In the event that the employee dies prior to the exhaustion of the cash value of said benefits, the remaining cash value may be applied toward the premiums of covered dependents until exhausted, subject to the conditions and limitations of the PEHP.

2. After completion of twenty (20) years of continuous service with the City, and upon service retirement under the PERS retirement plan, a Unit employee hired prior to March 11, 2010 may elect fully paid medical insurance under the City’s medical insurance program for the Unit employee and their eligible dependents. Unit employees hired after March 11, 2010 shall not be eligible for this benefit
D. SICK LEAVE CASH OUT
Upon voluntary separation of service or layoff with the City, Unit employees with ten (10) or more years of continuous service will be eligible to cash in unused sick leave at the following formula:

YEARS OF SERVICE PERCENT
10 – 15 25 %
16 – 1920 35 %
201+ 50 %
Unit employees electing this option shall be responsible for any and all future health premiums, i.e.

Unit employees shall exercise this option in lieu of the Sick Leave Use Upon Retirement option as described in Article 19.C.1.

E. SICK LEAVE CONVERSION
Unit employees shall have the option of converting one hundred percent (100%) of individual sick leave accruals to service credit. This option shall be exercised in lieu of conversion to cash value.

Article 22.Article 21. BEREAVEMENT LEAVE
In the event of a death in the immediate family, a Unit employee shall be compensated with four (4) days paid leave. In addition, Unit employees may be allowed to use accrued sick leave with full pay not to exceed three (3) days. Immediate family shall be defined as the following relatives to either the Unit employee or spouse or registered domestic partner: spouse, registered domestic partner, significant other of the employee (provided the employee shows proof of cohabitation), child (including foster child or ward of the court), parent, grandparent, brother, sister, niece, nephew, step-parent, step-children, and grandchildren. The definition of immediate family shall also include the aunt and uncle of the Unit employee only.

Article 23.Article 22. EXECUTIVE LEAVE
Unit employees shall receive Executive Leave in the amount of one hundred twenty hours (120) per year.

On January 1 of each calendar year, each full-time Unit employee shall be credited with one hundred twenty (120) hours of executive leave. Unit employees hired between July 1 and October 31 of any calendar year shall be credited with sixty (60) hours of executive leave for that year, and Unit employees hired between November 1 and December 31 will not be credited with executive leave for that year. All accumulated executive leave hours not taken by December 31st of each calendar year will be forfeited.

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13 Article 24.Article 23. LEAVE OF ABSENCE WITHOUT PAY
If a Unit employee takes more than five (5) accumulated days of leave without pay in a calendar year, commencing at the beginning of the sixth day of leave without pay and any day of leave without pay thereafter during the calendar year; sick leave and vacation accruals shall be adjusted proportionately to eliminate benefit accruals for any day a Unit employee is on leave without pay status.

Article 25.Article 24. MILITARY LEAVE
Military leave shall be granted in accordance with applicable State and Federal law. All Unit employees entitled to military leave shall give their department head an opportunity, within the limits of military regulations, to determine when such leave shall be taken. Copies of the Unit employee’s official military orders may be requested.

Article 26.Article 25. HOLIDAYS
Those holidays which shall be honored for Unit employees include:

New Year’s Day January 1
Martin Luther King Day Third Monday in January
President’s Day Third Monday in February
Cesar ChavezFarm Workers Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11
Thanksgiving Day Third Fourth Thursday in
November
Friday after Thanksgiving Day Third Fourth Friday in November Christmas Eve December 24
Christmas Day December 25
When a holiday falls on a Saturday, Friday shall be designated as the holiday. When the holiday falls on a Sunday, Monday shall be designated as the holiday.

Banked holidays may be carried over from year to year. If a holiday falls on a city closure Friday, the employee shall bank eight hours of holiday. If a holiday falls on a Unit employee’s regular day off, the employee shall bank the holiday at their regularly scheduled hours to be used at a later date or will be entitled to take another day off during the pay period with mutual consent of the Unit employee and department head. Employees on a 9-80 schedule shall bank 8 hours of holiday if the holiday lands on a closed Friday.

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14 Unit employees are entitled to receive twenty hours of floating holidays annually. Floating holidays shall not carry over from one calendar year to the next. Floating holidays accrued but not taken by December 31 of each calendar year shall be paid off in January of the year following the year in which the holidays were accrued.

Article 27.Article 26. TUITION REIMBURSEMENT
Each Unit employee shall be entitled to tuition reimbursement for courses, books and other learning aids while attending an accredited school of higher learning. The course must be career related, pre-approved by the Unit employee’s department head and the Unit employee must earn a passing grade to receive reimbursement.

Employees shall be reimbursed up to the dollar amount charged for the same number of units per term by the University of California, Riverside. An employee shall not receive reimbursement in excess of Five Thousand dollars ($5,000) in any one fiscal year. The difference between the City’s maximum obligation during any fiscal year and the amount of any actual reimbursement received by the employee during that fiscal year shall not be carried over or be available to use by the employee in any subsequent fiscal year.

Upon the approval of the department head and Human Resources, a Unit employee may use up to five hundred dollars ($500) per year of their Tuition Reimbursement for attendance at a seminar or conference for the purpose of professional development.

Article 28.Article 27. STATE DISABILITY INSURANCE (S.D.I.) The City agrees to allow members of Unit to participate in State Disability Insurance (S.D.I.) if they choose to do so at the Unit employee’s expense.

Article 29.Article 28. PERSONNEL FILE
No material, which can reasonably be construed, interpreted, or acknowledged to be derogatory, shall be placed in a Unit employee’s personnel file unless the Unit employee has been allowed to read such material and respond to it, in writing. The written response will also be placed in the personnel file.

Upon request, any Unit employee shall have access to their personnel file, and shall have the right of reproduction, at cost, of their personnel file, in full or in part. No portion of a Unit employee’s personnel file shall be transmitted to anyone other than the City Manager, the Human Resources Director, or Department Head.

Article 30.Article 29. EMPLOYEES ORGANIZATION RIGHTS
Time Off for Association Reps: The Association may designate up to seven (7) representatives to attend Association meetings on City time, including new employee orientations, provided that no designated Unit employee shall be released for more than four (4) hours per month. The time must be scheduled in advance and the supervisor must be notified.

New Employees: The City agrees to furnish each new employee in the bargaining unit with a copy of the MOU at the commencement of his/her employment.

Orientations: In accordance with Government Code §3555 3559, the City shall provide written notice to City of Redlands | RAMME MOU 20232026-20262029
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15 Association Representatives when a new employee is hired or promoted into the bargaining unit and provide reasonable release time for an Association Representative to meet with the new employee for the purpose of discussing membership in the Association. This new employee orientation should take place as promptly as possible on or after the first day of employment. New employees shall be advised of the potential release of personal information, identified in Demographic Reports, below, and shall have the option to request in writing to Human Resources that the City refrain from disclosing such personal information.

Demographic Reports: In accordance with Government Code §3555 3559, the City shall provide to Association Representatives the name, hire date, job title, department, work location, work, home, and personal cellular telephone numbers, personal email addresses on file with the City, and home address of any newly hired employee within 30 days of the date of hire or by the first pay period of the month following hire, and the City shall also provide to Association Representatives with a list of that information for all employees in the bargaining unit at least every 120 days. The City shall provide the information identified herein regardless of whether the newly hired employee was previously employed by the City.

Pursuant to Gov. Code 6254.3(c), an employee may request that the City refrain from disclosing the employee’s home address, home telephone number, personal cellular telephone number, personal email address, or birth date to the Association upon written request to Human Resources.

Visits by Association Representatives: Accredited representatives of the Association will be granted reasonable access to City facilities and employees for purposes of investigation of grievances and official Association business, provided Association representatives shall provide twenty-four (24) hours advance notice to the supervisor in charge of the work area that is being visited. Such visits shall not interfere with normal operation of the department. In case of an emergency, the twenty-four (24) hour advance notice will not be required, provided the Association representative provides advance notice to the supervisor in charge as soon as reasonably possible.

Contract Negotiations: The negotiating team for the Association, to be comprised of no more than five(5) employees, shall be permitted to attend negotiating sessions during work hours with pay. There shall be no compensation for meetings held outside scheduled work hours of members of the bargaining team.

Dues Deduction: The City shall deduct dues on a regular payroll basis from the pay of all Association members. Such deductions shall be authorized in writing on a form approved and provided by the Association for this purpose. The membership forms shall be retained by the Association. The City shall rely on a certification from the Association for the authorization, modification, or cancellation of any/all dues deductions. The City shall remit such funds to the Association within thirty (30) days following their deduction.

In accordance with SB 866, Gov’t Code §1157.12, the City shall rely on a certification from the Association Representatives requesting a deduction or reduction that they have and will maintain an authorization, signed by the individual from whose salary or wages the deduction or reduction is to be made. An Association that certifies that it has and will maintain individual employee authorizations shall not be required to provide a copy of an individual authorization to the City unless a dispute arises about the existence or terms of the authorization. The employee organization shall indemnify the City for any claims made by the employee for deductions made in reliance on that certification.

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16 The City shall direct employee requests to cancel or change deductions to the Association. The City shall rely on information provided by the Association regarding whether deductions for Association membership were properly canceled or changed, and the Association shall indemnify the City for any claims made by the employee for deductions made in reliance on that information. Deductions may be revoked only pursuant to the terms of the employee’s written authorization, Association Bylaws, and this MOU.

In accordance with SB 866, Gov’t Code §3550-3553, the City shall not deter or discourage employees or applicants from becoming or remaining members of the Association, or from authorizing representation by the Association, or from authorizing dues or fee deductions to the Association.

Article 31.Article 30. DIRECT DEPOSIT
Direct deposit of employee paychecks shall be available to Unit employees.

Article 32.Article 31. FAIR LABOR STANDARDS ACT
Unit employees shall be classified as “exempt” from the overtime provisions of the Fair Labor Standards Act (FLSA).

Article 33.Article 32. PREVAILING BENEFITS
All benefits, privileges and working conditions enjoyed by Unit employees at the present time shall remain in full force, unchanged and unaffected in any manner, during the term of this MOU unless changed by mutual consent.

Article 34.Article 33. SAVINGS CLAUSE
If any provision of this MOU, or the application of such provision, should be rendered or declared invalid by any court action or by reason of any existing or subsequently enacted legislation, the remaining parts or portions of this MOU shall remain in full force and effect.

Article 35.Article 34. BILINGUAL PAY
Unit employees shall be eligible for bilingual pay in accordance with the City’s Bilingual Pay Program and upon approval by the Department Head and Human Resources/Risk Management Director. Authorized employees shall receive additional compensation in the amount of one hundred fifty dollars ($100150) per month. Authorized employees shall receive additional compensation in the amount of seventy- five dollars ($75) per pay period.

Article 36.Article 35. DISCIPLINARY PROCEDURE
A. The Investigatory Interview Process
Prior to any investigatory interview or consultation between a Unit employee and the Department Head or City Manager, that could reasonably be construed to result in disciplinary action against the employee, the employee shall be given notice of the interview or consultation as soon as reasonably practical, and shall be advised of his or her right to representation under this section; and upon request shall be afforded an opportunity to contact and consult privately with a representative of the Association. If requested, the employee may have an Association representative present during any such investigatory interview or consultation, and, to the extent practicable, such interviews or City of Redlands | RAMME MOU 20232026-20262029
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17 consultations shall be conducted during an employee’s working hours. Only those persons reasonably necessary to the conduct of the interview shall be present.

The employee or the City may elect to record any such investigatory interview or consultation, unless the parties mutually agree not to record such interview or consultation; however, in the event the City elects to record such an interview or consultation, it shall upon request provide the employee with a copy of said recording. The cost of providing a copy of the recording to the employee shall be borne by the employee.

B. Disciplinary Procedures
No non-probationary Unit employee shall be disciplined without cause. Disciplinary action shall be defined to include: oral warnings, written reprimands, suspensions, demotions (non-probationary), reduction in pay and discharge. Oral and written reprimands may be initiated at the supervisor/Division Manager level. Disciplinary action more serious than a written reprimand must be initiated at the Department Head level.

1. Notice of Proposed Action
Whenever an employee is to be discharged, suspended (for more than five (5) working days) demoted (non-probationary), or reduced in step, for disciplinary purposes, written notice of at least five(5)1 days of the proposed disciplinary action shall be given before such action is to be taken and must include:
a. Notice of proposed action;
b. Reasons for proposed action;
c. A copy of charges stating specific incidents or specific courses of conduct, e.g. as evidenced by work performance evaluations, and a copy of the written materials upon which the decision to take proposed disciplinary action is based; and
d. A notice to the employee of the right to respond in writing or orally within the five (5) day period.

In the case of a suspension of five (5) working days or less, the foregoing procedures shall be afforded the employee either before or during the suspension, or within a reasonable time thereafter.

2. Limitations and Exceptions
a. Oral notice is insufficient as full notice to an employee and may be given only as the initial notice in extraordinary circumstances which call for immediate action. b. Prior written notice is required in each case, unless provided otherwise herein, regardless of seriousness unless extraordinary circumstances are involved. c. Employees may be suspended without prior written notice in extraordinary circumstances when it is essential to avert harm to the public, other employees, or to avert serious disruption of governmental business. The appointing authority may schedule an employee for vacation or holiday leave as the circumstances may warrant. Extraordinary circumstances include but are not limited to situations involving misappropriation of public funds or property; working while under the influence of alcohol or intoxicating drugs; open insubordination; commission 1 Unless specifically noted to be "working days," any reference to days is calendar days.

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18 of a crime involving moral turpitude punishable by imprisonment for six (6) months or more; and disruption of City business through willful misconduct (altercations, etc.) d. Oral notice is insufficient as full notice for proposed disciplinary action. In extraordinary circumstances when immediate suspension, demotion, removal, or reduction in step is warranted, initial notice may be given orally. The employee should be told when the initial action is taken what the reasons for the actions are and, in addition, the employee will have an opportunity to respond in writing and/or orally to those charges. The written charges in the case of an immediate disciplinary action must be prepared as soon as possible and normally within a day or two (2) of the initial oral notice.

3. Employee's Response to Proposed Discipline
a. An employee receiving a Notice of Proposed action shall have the right to respond to the Department Head from a different Department. An employee’s opportunity to respond to the Department Head is not intended to be an adversary hearing. An employee has the right to have a representative of his/her own choosing at the meeting. The employee shall not be accorded the opportunity to cross-examine a department’s witnesses, nor to present a formal case in opposition to the proposed discipline. However, the limited nature of this response does not obviate the Department Head’s responsibility to initiate further investigation if the employee’s version of the facts raises doubts as to the accuracy of the Department Head’s information leading to the discipline proposal. An employee may elect not to respond, thereby waiving any further pre-disciplinary response.
b. The Department Head from a different Department will evaluate the proposed discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response, or deadline for response, a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.

4. City Manager Level Appeal
a. Any permanent employee shall have the right to appeal any termination, suspension, reduction in salary, or non-probationary demotion. The appeal process shall not be applicable to those positions which may be deemed exempt or to probationary employees. The appeal process shall not be applicable to verbal and written reprimands, probationary demotions, performance evaluations and denial of performance increases. An employee desiring to appeal the Department Head’s decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the City Manager and received in the City Manager’s office so that same is date stamped by the City Manager’s office within the ten (10) day period.
b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the Department Head shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal meeting shall be scheduled.
c. The meeting with the City Manager shall be conducted in the same manner as the Response to Proposed Discipline set forth in paragraph 2(C) above.

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19 d. The City Manager will evaluate the discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.

5. Advisory Arbitration
a. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee's request for appeal must be addressed to the City Manager and received in the City Manager's office so that same is date stamped by the City Manager’s office within the ten (10) day period. b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the City Manager shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal hearing shall be established as follows:
i. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee.

Within ten (10) days following receipt of the list of hearing officers, the parties shall confer to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer. ii. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the City Manager. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. iii. All hearings shall be private provided, however, that the hearing officer shall, at the request of the employee, open the hearing to the public. iv. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
v. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence. vi. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first City of Redlands | RAMME MOU 20232026-20262029
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20 called him/her to testify; and to rebut the evidence against him/her. If the employee does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. vii. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:

1. The party imposing discipline shall be permitted to make an opening statement;

2. The appealing party shall then be permitted to make an opening statement;

3. The party imposing disciplinary action shall produce the evidence on his/her part; the City bears the burden of proof and burden of producing evidence;

4. The party appealing from such disciplinary action may then open his/her defense and offer his/her evidence in support thereof; the employee bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;

5. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case;

6. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
c. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. His/her decision shall set forth which charges, if any, are sustained and the reasons therefore. The opinion shall set forth findings of fact and conclusions. d. The hearing officer may recommend sustaining or rejecting any or all of the charges filed against the employee. He/she may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee. He/she may not recommend discipline more stringent than that issued by the City Manager.
e. The hearing officer’s opinion and recommendation shall be filed with the City Council, with a copy sent to the charged employee, and shall set forth his/her findings and recommendations.

If it is a dismissal hearing and a dismissal is not the hearing officer’s recommendation, the opinion shall set forth the date the employee is recommended to be reinstated and/or other recommended action. The reinstatement date, if appropriate, may be any time on or after the date of disciplinary action.
f. Within sixty (60) days of the receipt of the hearing officer’s findings, recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the City of Redlands | RAMME MOU 20232026-20262029
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21 transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing officer’s recommendation(s), shall be filed where appropriate, including the employee’s personnel file, unless no discipline is upheld by the City Council. g. Each party shall equally bear the cost and fees of the hearing officer, the cost of facilities, the court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in a hearing officer fee. h. In the case of suspension, demotion, reduction in salary, or dismissal prescribed by the City Council, the time of such suspension, demotion or dismissal shall be effective from the first day after such delivery of said decision or shall relate back to and be effective as of the date the employee was disciplined pending hearing before and decision by the City Council, whichever is applicable. If discipline imposed resulted in loss of pay, and the decision results in reduction or elimination of loss of pay, the pay loss shall be restored to the employee based on the number of standard work hours lost computed at his/her then base hourly rate. i. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.

Article 37.Article 36. GRIEVANCE PROCEDURE
A. Definition
A “grievance” is a formal, written allegation by a grievant that he/she has been adversely affected by an existing violation, misinterpretation or misapplication of the specific provisions of the Memorandum of Understanding, provisions of the Personnel Rules and Regulations, and/or written City Policy. Other matters for which a special method of review is provided by law, ordinance, resolution, or by administrative regulations and procedures of the City, are not within the scope of this procedure. This procedure is not to be used in lieu of the Disciplinary Appeal Procedure set forth.

B. Procedure

1. Every effort shall be made to resolve a grievance through discussion between the employee and his/her immediate supervisor. It is the spirit and intent of this procedure that all grievances are settled quickly and fairly without subsequent discrimination against employees who may seek to adjust a grievance. Every effort should be made to find an acceptable solution at the lowest level of supervision. Within fifteen (15) days2 after a grievant knew, or by reasonable diligence should have known, of the condition upon which a grievance may be based, the grievant shall attempt to resolve it by an informal conference with the grievant’s immediate supervisor. A supervisor shall render a verbal decision within seven (7) days of the conclusion of the informal conference.

2. If the problem cannot be resolved between the employee and the supervisor, the employee may, within seven (7) days from the date of receiving the answer from his/her supervisor, file a written 2 Days refer to calendar days.

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22 grievance and request a meeting with the Division Manager, if one exists, in order to discuss the grievance. The written grievance shall contain the following information:
a. Name of grievant and job title;
b. Department/Section;
c. Clear and concise statement of the nature of the grievance including the circumstances and dates involved;
d. The specific provision(s) of the MOU, City Policy or Personnel rules alleged to have been violated;
e. Requested remedy;
f. Name of the grievant’s Labor Representative, if any; and g. Date and signature of the grievant or Labor Representative.

3. The Division Manager shall render a decision and comments in writing and return them to the grievant within ten (10) days after receiving the written grievance.

4. If the Division Manager and employee cannot reach a solution to the grievance (or if a Division Manager does not exist), the employee may, within seven (7) days from the date of receiving the answer from the Division Manager, request, in writing, a meeting with the Department Head.

5. The Department Head shall render his/her decision in writing within fifteen (15) days of receiving the appeal. If the Department Head and employee are unable to arrive at a satisfactory solution, the employee may, within ten (10) days from the date of the decision by the Department Head, submit a written appeal to the Human Resources Director.

6. The City Manager shall review the grievance and respond to the employee within twenty (20) days of receiving the appeal. The response shall be in writing.

7. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the Human Resources Director and received in the Human Resources office so that same is date stamped by the Human Resources office within the ten (10) day period.

8. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the grievance shall be considered conclusive as set forth in the City Manager's decision and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the Human Resources Director, an appeal hearing shall be established as follows:
a. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee. Within ten (10) days following receipt of the list of hearing officers, the parties shall confer to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer.

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23 b. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the Human Resources Director. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. c. All hearings shall be private provided, however, that the hearing officer shall, at the request of the grievant, open the hearing to the public.
d. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing.

After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
e. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence.
f. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the grievant does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. g. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
i. The grievant shall be permitted to make an opening statement; ii. The City shall then be permitted to make an opening statement; iii. The grievant shall produce the evidence on his/her part; the grievant bears the burden of proof and burden of producing evidence;
iv. The City may then open its defense and offer its evidence in support thereof; the City bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
v. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case; vi. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
h. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the City of Redlands | RAMME MOU 20232026-20262029
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24 examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. The opinion shall set forth findings of fact and conclusions.
i. The hearing officer may recommend sustaining or rejecting any or all of the grievance. j. The hearing officer’s opinion and recommendation shall be filed with the Human Resources Director, with a copy sent to the grievant, and shall set forth his/her findings and recommendations.
k. Within sixty (60) days of the receipt of the hearing officer’s findings recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing officer’s recommendation(s) shall be filed where appropriate, including the grievant's personnel file.
l. Each party shall bear equally the cost of facilities, fees and expenses of the hearing officer, including the court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in an arbitration fee. m. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.

9. If the time limits for employees’ appeals at any step should elapse, the grievance shall be considered withdrawn. Time limits may be extended by mutual consent. If the City fails to respond within the prescribed time limits, the grievance will be deemed to have been denied and the employee may go to the next step. If the City Manager fails to respond within the prescribed time limit, the grievance will be deemed to have been denied and the employee will be deemed to have exhausted his/her administrative remedy.

10. The employee may request the assistance of another person of his/her own choosing in preparing and presenting his/her grievance at any level of review. In the event the employee desires the presence of a representative who is an employee of the City, he/she shall make such request through the supervisor and the supervisor shall make the necessary arrangements for the employee representative to be present.

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25 11. The employee and/or his/her representative may use a reasonable amount of work time as determined by the appropriate supervisor or Department Head in presenting the grievance.

However, no employee shall absent himself/herself without first being excused by his/her supervisor.

12. No employee shall be required to be represented by an employee organization in processing a grievance.

13. Employees shall be assured freedom from reprisal for using the grievance procedures by both the City and the employee organization.

14. The settlement terms of a grievance which is processed by an employee individually or by a recognized employee organization shall not conflict with the express provisions of a Memorandum of Understanding between the City and the formally recognized employee organization for such unit.

15. A group grievance may be filed when one (1) set of circumstances or occurrences affects more than one (1) employee in the same manner or to the same extent. The group may file one (1) document which all members of the group have read and signed. Members of the group shall be limited to those who have signed the grievance. The resolution of a group grievance may not be consistent among all employees in the group grievance due to differences in the circumstances or occurrences that brought about the grievance.

16. A group grievance affecting all members of an employee organization may be brought by the employee organization itself. In such case the procedure shall be commenced directly at the City Manager level within fifteen (15) days after authorized representatives of the employee organization knew, or by reasonable diligence should have known, of the condition giving rise to the grievance and shall be subject to all applicable time limitations and the provisions set forth above.

Article 38.Article 37. LAYOFF PROCEDURE
A. Should the City Manager determine reductions in force to be necessary due to lack of work or for financial reasons, he/she may initiate Layoffs. Classifications to be affected and the number of Unit employees included will be determined by the City.

B. In determining the order of Layoffs, a combination of factors shall be considered, including but not limited to: qualifications, productivity, general performance, seniority with the City of Redlands, seniority in job classification, and needs of the City. Variations from the order of Layoffs and recall from Layoff may occur when the City deems such variations appropriate under the circumstances.

C. The factors the City, in its discretion, may use to determine include but are not limited to the following:

1. An employee's last four performance evaluations, if any;

2. Any history of employee commendations, awards, etc.;

3. Any history of employee disciplinary action;
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26 4. Attendance record, including tardiness and unexcused absences;

5. Safety record, including personal injury and damage to city property;

6. Probationary and temporary employees shall be laid off before a regular employee in the same classification;

7. Between two regular appointees in the same classification with the same skills, abilities, qualifications, merit and/or record, the employee with lesser seniority in the classification may be laid off first;

8. Between two regular appointees in the same classification the employee with lesser skills, abilities, qualifications, merit and\or record than may be laid off first, without regard to seniority;

9. Memoranda of Understanding ("MOU") between the City and effected bargaining units.

D. BUMPING

1. “Bumping” means the displacement of an employee from his/her position by an employee in a higher classification who formerly held the same position.

2. Where two or more employees are laid off from the same position, the employee with the greatest seniority in that classification shall have the first opportunity to bump as set forth below.

3. A laid-off employee shall be entitled to bump an employee in the same position previously held by the laid off employee. Alternatively, an employee may "bump" into a position in a different department which he/she held within the prior five (5) years. The laid off employee must be able to perform the essential job functions of the former position and possess the minimum qualifications of the position as specified by the job classification specification. A laid-off employee shall not bump an employee with greater skills, abilities, qualifications, merit and/or record. Laid off employees may also be placed in a vacant lower classification for which they meet the minimum qualifications. Employees must utilize the option that places them in the highest available position.

4. The City will notify laid-off employees of any positions available for bumping. Following such notification, the employee must notify the Human Resources Director in writing of his/her intent to exercise the bumping rights within seven (7) calendar days, and the position and classification in to which he/she intends to bump. Failure to provide such notification will be deemed a waiver of bumping rights by the employee.

5. Where there is more than one employee in a position available for bumping, the factors in paragraph C of this Section, will be used to determine which employee, if any, will be bumped.

6. The process will be repeated at the next classification level where an employee bumps in and creates an overage in that classification.

7. Any displaced employee shall be considered as laid-off for the same reason as the person who displaced them and shall in the same manner be eligible to displace another employee based on the criteria specified in paragraph C of this Section.

E. REINSTATEMENT FROM LAYOFF

1. The names of probationary and regular employees who have been laid off shall be placed on appropriate reemployment lists. Such names shall remain thereon for a period of one year unless such persons are sooner reemployed.

2. When a reemployment list is to be used to fill vacancies, the Human Resources Director shall certify from such lists the number of names equal to the number of vacancies. An employee who is reemployed shall receive credit for former service for purposes of seniority, benefit compensation, and salary advancement.

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27 Employees who are laid off from City employment, may be reinstated within one year of the date of layoff upon the recommendation of the Department Head and with the approval of the Human Resources Director, to the position from which they were laid off based on their qualifications, availability, and the needs of the organization pursuant to this paragraph.

Article 39.Article 38. ZIPPER CLAUSE
The City and the Unit agree that all negotiable items have been discussed during the negotiations leading to this MOU, including salaries and benefits, and conditions of employment, and therefore the City and the Unit further agree that negotiations will not be reopened on any item during the term of this MOU, except by mutual agreement of the City and the Unit, or as expressly provided otherwise in this MOU.

CITY OF REDLANDS

REDLANDS ASSOCIATION OF

MID-MANAGEMENT EMPLOYEES - RAMME

EDDIE TEJEDAMARIO SAUCEDO, MAYOR PRESIDENT, MICHAEL FOSTERARMANDO VALLES
DATE

ADOPTED, SIGNED AND APPROVED
THIS 20 XX7 TH DAY OF JULY, 20263

VICE PRESIDENT, KEVIN JOHNSTON GREG
MORAN
DATE
ATTEST:
_______________________________________

JEANNE DONALDSON, CITY CLERK

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF REDLANDS
AND
Redlands Association
of
Safety Management Employees
JULY 1, 202623 – JUNE 30, 202926
City of Redlands & Redlands Association of Safety Management Employees MOU – 20263~20296 Page 2

MEMORANDUM OF UNDERSTANDING

BETWEEN
City of Redlands
AND
Redlands Association of Safety Management Employees
July 1, 20263 – June 30, 20296
Table of Contents
Article 1: Term Of Agreement .................................................................................................................................. 3 Article 2: Preamble ................................................................................................................................................... 3 Article 3: Recognition ............................................................................................................................................... 3 Article 4: Salaries ...................................................................................................................................................... 3 Article 5: Retirement ................................................................................................................................................ 3 Article 6: Medical Insurance ..................................................................................................................................... 4 Article 7: Retiree Insurance Benefits ........................................................................................................................ 4 Article 8: State Disability Insurance.......................................................................................................................... 5 Article 9: Vision Care ................................................................................................................................................ 5 Article 10: Dental Insurance ....................................................................................................................................... 5 Article 11: Life Insurance ............................................................................................................................................ 6 Article 12: Deferred Compensation ............................................................................................................................ 6 Article 13: Post Certification Pay ................................................................................................................................ 6 Article 14: Reimbursement of Educational Expenses ................................................................................................. 6 Article 15: Uniform Allowance ................................................................................................................................... 6 Article 16: Longevity Pay ............................................................................................................................................ 6 Article 17: Mobile Device Pay ..................................................................................................................................... 6 Article 18: Legal Defense Insurance ........................................................................................................................... 6 Article 19: Holidays..................................................................................................................................................... 6 Article 20: Sick Leave .................................................................................................................................................. 7 Article 21: Vacation .................................................................................................................................................... 7 Article 22: Accrued Vacation Time Sell Back .............................................................................................................. 8 Article 23: Bereavement Leave ................................................................................................................................... 8 Article 24: Personal Leave .......................................................................................................................................... 8 Article 25: Executive Leave ......................................................................................................................................... 8 Article 26: Compensatory Time Off And Overtime ..................................................................................................... 8 Article 27: Workweek ................................................................................................................................................. 8 Article 28: Police Vehicle Usage ................................................................................................................................. 9 Article 29: No Strike Provisions .................................................................................................................................. 9 Article 30: Prevailing Benefits .................................................................................................................................... 9 Article 31: Savings Clause ........................................................................................................................................... 9 Article 32: Death Of Employee ................................................................................................................................... 9 Article 33: Zipper Clause……………………………………………………………………………………………………………………………………….9 Article 34: Signatures ................................................................................................................................................. 9

City of Redlands & Redlands Association of Safety Management Employees MOU – 20263~20296 Page 3 Article 1:TERM OF AGREEMENT
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Safety Management Employees (“Association”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 2023 2026 and shall expire on June 30, 20262029.

Article 2:PREAMBLE
It is the intent and purpose of this MOU to set forth the understanding of the City and the Association reached as a result of meeting and conferring in good faith regarding, but not limited to, matters relating to the wages, hours, and terms and conditions of employment between the City and the Association.

Article 3:RECOGNITION
The Association is the recognized employee organization for the personnel employed in the Police Department and occupying the classifications of Deputy Police Chief and Police Commander.

Article 4:SALARIES
All Association employees shall receive the following salary increases:

A. Effective the first full pay period following July 1, 202623, all Association employees will receive a five fourseven percent (475%) increase to base salary.

B. Effective the first full pay period following July 1, 202724, all Association employees will receive a three percent (3%) increase to base salary over the prior year.

C. Effective the first full pay period following July 1, 202825, all Association employees will receive a three percent (3%) increase to base salary over the prior year.

D. Salary Range Restructure:

1. Effective the first full pay period after July 1, 2026, the City shall eliminate Step 0 on the salary range for each classification. Employees on Step 0 at that time shall immediately be placed on Step 1. For those employees being advanced to Step 1, service hours for the purpose of receiving their next merit increase shall not reset.

2. Effective the first full pay period after July 1, 2026, the City shall establish three new steps (Steps 5, 6 and 7) at the top of the salary range for each classification. Each of the new steps shall be two and a half percent (2.5%) higher than the preceding step.

1.3.Advancement to the new Steps 5, 6, and 7 shall continue to occur upon an employee’s anniversary date.

The City shall maintain the following salary differentials at all times during the term of this MOU:

Between bottom step Sergeant and bottom step Commander 30% Between bottom step Commander and bottom step Deputy Chief 10% Article 5:RETIREMENT

1. Only as to unit members hired by the City in any role prior to January 1, 2013, the City shall individually provide the following provisions in its contract with the PERS retirement system:
3% @ 50 Retirement Formula
Survivor Continuance
Highest Single Year

2. The Public Employees’ Pension Reform Act (PEPRA) and application to PEPRA defined “New Members”.

Unit members who are “new members” as defined by the PEPRA and/or California Government Code section 7522.04(f), shall be required to pay a PERS member contribution in an amount equal to 50% of the normal City of Redlands & Redlands Association of Safety Management Employees MOU – 20263~20296 Page 4 cost rate for the Defined Benefit Plan provided for by PEPRA, in which the new member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater, pursuant to Government Code section 7522.30.

3. To the extent permitted by law, retirement contributions herein made by the employees shall be made on a pre-tax basis. The City shall report to CalPERS as compensation only the percent, if any, of the member contribution funded by the City.

Article 6:MEDICAL INSURANCE
A. The City shall contribute directly to CalPERS on behalf of each employee three hundred and ninety-seven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989. In addition, the City shall contribute an amount through the City’s cafeteria plan that is equal to the difference between the City’s minimum PEMHCA contribution and the following amounts:

B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post-employment health plan.

C. The City agrees to provide a stipend of $350.00 on a monthly basis for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.

Article 7:RETIREE INSURANCE BENEFITS
A. For all unit members who qualify as an “annuitant” under PEMHCA, the City will contribute directly to CalPERS on behalf of each annuitant three hundred and ninety-seven dollars ($397) per month pursuant to Resolution No. 4572, adopted by the city council on September 5, 1989.

B. For existing RASME members hired by the City prior to June 2, 2015, who have served a minimum of 15 years of service with the City of Redlands and who qualify as annuitants under PEMHCA, upon separation other than for service or disability retirement under the PERS retirement plan, or in the event of the death of an employee prior to retirement, the City shall contribute to a retiree health savings account the difference between the PEMHCA minimum and the cost of “Lifetime medical” for the employee, spouse and eligible dependents. Lifetime medical means equivalent health, dental, and vision insurance as provided by the City to its existing members through the CalPERS or similar group medical plan up to the cost of similar CalPERS plans. Employees who promote into the RASME unit shall maintain any lifetime medical benefit such employee has previously accrued with the City and/or eligibility to earn lifetime medical if they had that right under their previous memorandum of understanding.

COVERAGE LEVEL

TOTAL CITY CONTRIBUTION
EFFECTIVE JULY 1, 2023

EFFECTIVE
JANUARY 1, 2024

EFFECTIVE
JULY 1, 20265
Employee Only: $750 $775 $900 800
Employee Plus One Dependent: $1,500 $1,550 $1,700 600
Employee plus Two or more
Dependents:
$1,950 $2,025 $2,200 100
City of Redlands & Redlands Association of Safety Management Employees MOU – 20263~20296 Page 5 cost of lifetime medical, dental and vision insurance for the employee, spouse, and eligible dependents under the association’s current medical insurance program existing at the time of retirement. This health insurance shall be at no cost to the retired employee and shall cover the employee, spouse, and eligible dependents. Employees who promote into the RASME unit shall maintain any lifetime medical benefit such employee has previously accrued with the City and/or eligibility to earn lifetime medical if they had that right under their previous memorandum of understanding.

In addition, for existing Association employees as of the adoption of the 2018-2023 MOU (December 5, 2017), or employees who promote into the RASME unit with eligibility for lifetime medical, who have served a minimum of 15 years of service with the City of Redlands, upon service or disability retirement under the PERS retirement plan, or in the event of the death of an employee prior to retirement may elect to:
a. Convert all remaining sick leave accrued at the time of retirement to cash value at the current rate of pay and apply said cash value to applicable premiums payable under the City’s medical insurance program for the employee, spouses, and eligible dependents until the cash value is exhausted. This cash value is subject to all applicable taxes;
b. Calculate the value of all accrued sick leave at the current hourly rate of pay and convert it into a cash payment;
c. Convert all remaining sick leave accrued at the time of retirement to PERS service credit; or d. A combination of options b and c.

C. Employees hired on or after adoption of the 2018-2023 MOU (December 5, 2017) shall not be eligible for conversion of accrued sick leave to cash value.

D. Unit members who do not qualify for life-time medical and retire with fifteen (15) years of service and who qualify as an annuitant under PEMHCA shall be entitled to a “medical bridge” program for themselves upon retirement from the City until they become Medicare-eligible. Under the “Medical Bridge” the City will contribute the difference between the PEMHCA minimum and the cost of employee-only coverage for the least expensive equivalent health and dental insurance plan as provided by the City to its existing unit members through the CalPERS medical plan until the employee reaches the age of Medicare eligibility at which time the benefit will cease, and employees will only receive the PEMHCA minimum contribution. Unit members who receive the medical bridge program can select coverage for dependents, however, the additional cost must be paid for by the respective unit member and will not be paid for by the City.

Article 8:STATE DISABILITY INSURANCE
Participation in the State Disability Insurance (SDI) program shall be optional, and all costs, funding, and premiums associated with participation in SDI shall be paid entirely by the participating Association employees.

Article 9: VISION CARE
The City agrees to contribute the entire monthly premium for Association employees and their eligible dependents for a vision insurance plan with VSP Vision Plan, or its equivalent.

Article 10: DENTAL INSURANCE
The City shall pay the full monthly premium for dental insurance under the Principal Financial dental plan, or its equivalent, for Association employees and all eligible dependents. Association employees may select from dental plans that are offered to members of the RPOA.

Article 11: LIFE INSURANCE
The City provides Association employees with $25,000 of life insurance. Employees may also purchase additional increments of life insurance at the City’s group rate.

Article 12: DEFERRED COMPENSATION
The City shall make available to Association employees a qualified 457(b) plan and 401(a) plan. All plans will be City of Redlands & Redlands Association of Safety Management Employees MOU – 20263~20296 Page 6 structured in accordance with the latest IRS rulings. Each AprilJanuary, the City shall make an annual contribution to the 401(a) deferred compensation on behalf of each Association employee in the amount of up to $1125 1,200 per year + 3% of gross annual salary. The full contribution amount to 401 (A) shall be provided based on a complete one year of service in the preceding year. For new Unit employees, and employees transferring into the Unit in the preceding year, the amount shall be prorated on a monthly basis for period of service within the unit. In the event that an employee leaves the Unit, they shall receive a final contribution in a prorated amount up to $1,200 per year plus 4%3% of salary based on their period of service in their final year in the Unit and shall not receive any additional contribution in January.

Article 13: POST CERTIFICATION PAY
Association employees shall receive POST certificate pay in the amount of 12.5% of base salary for an Advanced POST certificate. Additionally, Association employees shall also receive POST Supervisory or Management certificate pay in the amount of 1013% of base salary. The maximum amount any Association employee shall receive in certificate pay shall be 22.5%25.5% of base salary.

Article 14: REIMBURSEMENT OF EDUCATIONAL EXPENSES
Association employees enrolled in a degree program shall be reimbursed up to the dollar amount charged for the same number of units per term by the University of California, Riverside. However, any such employee shall not receive reimbursement in excess of Five Thousand dollars ($5,000) in any one fiscal year. The difference between the City’s maximum obligation during any fiscal year and the amount of any actual reimbursement received by the employee during that fiscal year shall not be carried over or be available to use by the employee in any subsequent fiscal year.

Upon the approval of the department head and human resources, an Association employee may use up to two hundred fifty dollars ($250.00) one thousand dollars($1,000) per year of their available $5,000 per fiscal year tuition reimbursement for attendance at a seminar or conference for the purpose of professional development . That $1,000 per year amount may be applied for hotel and travel expenses related to the attendance at such a seminar or conference.

Article 15: UNIFORM ALLOWANCE
Association employees shall receive a uniform allowance in the amount of $3,200 per year. The uniforms allowance shall be paid as follows: fifty percent (50%) paid the first week in January of each year and fifty percent (50%) paid the first week in July of each year.

Article 16: LONGEVITY PAY
Association employees with twenty (20) years of continuous service with the City of Redlands shall receive compensation of five (5%) percent, effective the beginning of the pay period beginning closest to completion of their twentieth (20th) year of service.shall advance to Step “5” on the current salary schedule.

Incentives and leave cash out shall be calculated based in the combination of base salary and longevity pay. In the event that an Association employee is not at Step “4” when he/she is eligible for Step 5, at the completion of twenty (20) years of service, the employee shall advance to the next step in their salary range and continue to advance based on merit until the employee reaches Step 5.

Article 17: MOBILE DEVICE PAY
Association employees shall receive Mobile Device Pay in the amount of $100 per month in addition to their regular base pay. All employees receiving this incentive are required to carry a mobile device at all times.

Article 18: LEGAL DEFENSE INSURANCE
The City shall pay the premium for CPOA legal defense insurance for Association employees.

City of Redlands & Redlands Association of Safety Management Employees MOU – 20263~20296 Page 7 Article 19: HOLIDAYS
A. The City of Redlands currently observes the following holidays, established by Resolution:

New Year’s Day January 1
Martin Luther King, Jr. Day Third Monday in January
President’s Day Third Monday in February
Cesar ChavezFarm Workers Day March 31st
Memorial Day Last Monday in May
Juneteenth June 19th
Independence Day July 4th
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11th
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day Fourth Friday in November Christmas Eve December 24th
Christmas Day December 25th
B. Association employees shall “bank” holiday hours at the rate of ten (10) hours for each holiday and be paid for them in January of the following year.

C. Association employees that work on a recognized holiday shall receive half time premium for all hours worked.

D. In addition to the recognized holidays listed above, Association employees shall receive two (2) floating holidays per year. Floating holidays accrued but not taken shall be paid in January of the following year in which they were accrued.

E. Holidays shall be paid at a rate of pay applicable to the shift to which the Association employee is regularly assigned and shall be include supplemental pay (POST Certification pay) which may apply to the specific Association employee. The City will report to CalPERS the Holiday Cash Out amounts. This amount is derived from an employee’s left over Holiday Cash Out amount and paid at regular rate, which includes base pay rate and POST Certification pay. The City will report the Holiday Cash Out on an annual basis to CalPERS in January of each year.

Article 20: SICK LEAVE

ACCRUAL
Association members shall receive eight (8) hours of sick leave per month.

YEARS OF

SERVICE

MAXIMUM BUY-BACK

HOURS PER YEAR
2-6 48
7 56
8 64
9 72
10 80
11 88
City of Redlands & Redlands Association of Safety Management Employees MOU – 20263~20296 Page 8 12 96
Article 21: VACATION
A. Vacation shall accrue for Association employees based on the following schedule:

YEARS/MONTHS

OF SERVICE
HOURS
1 - 5 (0-71 months) 80
6 - 7 (72–95 months) 120
8 -9 (96-119 months) 128
10–11 (120-143 mos) 136
12–13 (144-167 mos) 144
14–15 (168-191 mos) 152
16–20 (192-251 mos) 160
21 (252-263 months) 168
22 (264-275 months) 176
23 (276-287 months) 184
24 (288-299 months) 192
25 (300 months+) 200
Article 22: ACCRUED VACATION TIME SELL BACK
Association employees with a minimum of three hundred (300) hours of accumulated vacation time shall sell back vacation time in excess of the 300 hours accumulation and deposit into a qualified 401(a) plan. The conversion and deposit of available vacation time shall occur during the third week of September each year. Employees shall contribute up to 100% of accrued vacation time in excess of the 300 hours accumulation up to the IRS maximum allowed.

Article 23: BEREAVEMENT LEAVE
In the event of the death in the immediate family, Association employees shall be compensated with four (4) days paid leave. In addition, eligible employees may be allowed to use accrued sick leave with full pay not to exceed three (3) days. Immediate family shall be defined as the following relatives to either the employee or spouse/registered domestic partner: spouse, child, parent, grandparent, grandchild, brother and sister.

Article 24: PERSONAL LEAVE
Association employees may use up to a maximum of eight (8) hours of accrued sick leave per year for personal leave, subject to advance approval by his/her supervisor.

Article 25: EXECUTIVE LEAVE
Association employees shall receive one hundred twenty (120) hours of executive leave annually. Employees will be paid for up to twenty (20) hours of unused executive leave that is on the books as of December 31st of each year. Any leave above 20 hours remaining on the books will be removed and not carried over to the next year.

Article 26: COMPENSATORY TIME OFF AND OVERTIME
A. Association members are exempt from the requirements of the FLSA and therefore ineligible to accrue compensatory time off or earn overtime pay at 1 ½ times their hourly rate.

B. Members are ineligible to receive overtime compensation and may therefore receive the equivalent of overtime pay at time and one half of salary ONLY if the hours are reimbursed by a third party, such as reimbursement mutual aid calls or billable contracts.

Article 27: WORKWEEK
City of Redlands & Redlands Association of Safety Management Employees MOU – 20263~20296 Page 9 Association employees shall have a standard workweek consisting of four ten-hour days followed by three consecutive days off unless an alternate schedule is agreed upon by the employee(s) and department head.

Article 28: POLICE VEHICLE USAGE
Upon authorization by the Police Chief, Association employees may utilize department vehicles for personal use.

Article 29: NO STRIKE PROVISIONS
The Association agrees that it shall not authorize, instigate, aid, condone, or engage in any strike which will interrupt or interfere with the operation of the City. The City places the Association on notice of its intention and right to terminate any employee who instigates or engages in any strike or work stoppage which interrupts or interferes with the operation of the City.

Article 30: PREVAILING BENEFITS
All terms and conditions of employment set forth in this MOU and all past practices recognized under prevailing law will remain in full force and effect for the term of this MOU unless modified by mutual agreement of the parties. All other matters affecting terms and conditions of employment shall be subject to change during the tem of this MOU either by mutual agreement or by virtue of the meet and confer processes and any applicable impasse resolution procedures being completed.

Article 31: SAVINGS CLAUSE
Should any provision of this MOU or the application of such provision be rendered or declared invalid by any court action or by reason of any existing or subsequently enacted legislation, the City and Association shall meet and confer immediately upon what constitutes an equivalent benefit to that which was determined to be unlawful. Such equivalent benefit will be implemented retroactive to the date the old benefit ceased. The remaining parts or portions of this MOU shall remain in full force and effect.

Article 32: DEATH OF EMPLOYEE
In the event an Association employee dies while on duty, the City shall calculate compensation for the entire shift.

The eligible dependents of the deceased employee shall be entitled to benefits as follows: sick leave accruals, vacation accruals, medical benefits, and any other applicable benefits. All benefits shall be calculated and compensated in accordance with the requirements of this MOU and PERS contracts.

In the event the deceased employee qualified for a service retirement (i.e. age 50 with a minimum of five years of service in CalPERS), the City shall calculate and compensate benefits in the same manner as an employee service retirement. If the death of the employee is job related, benefits may be calculated and compensated in the same manner as a disability retirement.

The City will inter at Hillside Cemetery, at no cost to the public safety officer or his/her family, any active public safety officer who dies in the line of duty, or dies from any disease that is recognized by the State of California as being associated with the job of being a public safety officer.

Article 33: ZIPPER CLAUSE
The City and the Association agree that all negotiable items have been discussed during the negotiations leading to this MOU, including salaries and benefits, and conditions of employment, and therefore the City and the Association further agree that negotiations will not be reopened on any item during the term of this MOU, except by mutual agreement of the City and the Association, or as expressly provided otherwise in this MOU.

Article 34: SIGNATURES
City of Redlands & Redlands Association of Safety Management Employees MOU – 20263~20296 Page 10

CITY OF REDLANDS

REDLANDS ASSOCIATION OF SAFETY MANAGEMENT

EMPLOYEES

Stephen Crane, President Date
Eddie TejedaMario Salcedo, Mayor Date
Attest:

Jeanne Donaldson, City Clerk Date

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF REDLANDS
AND
Redlands Association
of
Safety Management Employees
JULY 1, 2026 – JUNE 30, 2029
City of Redlands & Redlands Association of Safety Management Employees MOU – 2026~2029 Page 2

MEMORANDUM OF UNDERSTANDING

BETWEEN
City of Redlands
AND
Redlands Association of Safety Management Employees
July 1, 2026 – June 30, 2029
Table of Contents
Article 1: Term Of Agreement .................................................................................................................................. 3 Article 2: Preamble ................................................................................................................................................... 3 Article 3: Recognition ............................................................................................................................................... 3 Article 4: Salaries ...................................................................................................................................................... 3 Article 5: Retirement ................................................................................................................................................ 3 Article 6: Medical Insurance ..................................................................................................................................... 4 Article 7: Retiree Insurance Benefits ........................................................................................................................ 4 Article 8: State Disability Insurance.......................................................................................................................... 5 Article 9: Vision Care ................................................................................................................................................ 5 Article 10: Dental Insurance ....................................................................................................................................... 5 Article 11: Life Insurance ............................................................................................................................................ 6 Article 12: Deferred Compensation ............................................................................................................................ 6 Article 13: Post Certification Pay ................................................................................................................................ 6 Article 14: Reimbursement of Educational Expenses ................................................................................................. 6 Article 15: Uniform Allowance ................................................................................................................................... 6 Article 16: Longevity Pay ............................................................................................................................................ 6 Article 17: Mobile Device Pay ..................................................................................................................................... 6 Article 18: Legal Defense Insurance ........................................................................................................................... 6 Article 19: Holidays..................................................................................................................................................... 6 Article 20: Sick Leave .................................................................................................................................................. 7 Article 21: Vacation .................................................................................................................................................... 7 Article 22: Accrued Vacation Time Sell Back .............................................................................................................. 8 Article 23: Bereavement Leave ................................................................................................................................... 8 Article 24: Personal Leave .......................................................................................................................................... 8 Article 25: Executive Leave ......................................................................................................................................... 8 Article 26: Compensatory Time Off And Overtime ..................................................................................................... 8 Article 27: Workweek ................................................................................................................................................. 8 Article 28: Police Vehicle Usage ................................................................................................................................. 9 Article 29: No Strike Provisions .................................................................................................................................. 9 Article 30: Prevailing Benefits .................................................................................................................................... 9 Article 31: Savings Clause ........................................................................................................................................... 9 Article 32: Death Of Employee ................................................................................................................................... 9 Article 33: Zipper Clause……………………………………………………………………………………………………………………………………….9 Article 34: Signatures ................................................................................................................................................. 9 City of Redlands & Redlands Association of Safety Management Employees MOU – 2026~2029 Page 3 Article 1:TERM OF AGREEMENT
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Safety Management Employees (“Association”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 2026 and shall expire on June 30, 2029.

Article 4:SALARIES
All Association employees shall receive the following salary increases:

A. Effective the first full pay period following July 1, 2026, all Association employees will receive a seven percent (7%) increase to base salary.

B. Effective the first full pay period following July 1, 2027, all Association employees will receive a three percent (3%) increase to base salary over the prior year.

C. Effective the first full pay period following July 1, 2028, all Association employees will receive a three percent (3%) increase to base salary over the prior year.

D. Salary Range Restructure:

3. Advancement to the new Steps 5, 6, and 7 shall continue to occur upon an employee’s anniversary date.

The City shall maintain the following salary differentials at all times during the term of this MOU:

Between bottom step Sergeant and bottom step Commander 30% Between bottom step Commander and bottom step Deputy Chief 10% Article 5:RETIREMENT

2. The Public Employees’ Pension Reform Act (PEPRA) and application to PEPRA defined “New Members”.

Unit members who are “new members” as defined by the PEPRA and/or California Government Code section 7522.04(f), shall be required to pay a PERS member contribution in an amount equal to 50% of the normal City of Redlands & Redlands Association of Safety Management Employees MOU – 2026~2029 Page 4 cost rate for the Defined Benefit Plan provided for by PEPRA, in which the new member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater, pursuant to Government Code section 7522.30.

COVERAGE LEVEL

EFFECTIVE
JULY, 2026
Employee Only: $900
Employee Plus One Dependent: $1,700
Employee plus Two or more
Dependents:
$2,200
B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post-employment health plan.

C. The City agrees to provide a stipend of $350.00 on a monthly basis for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.

For existing RASME members, hired by the City prior to June 2, 2015, who have served a minimum of 15 years of service with the City of Redlands and who qualify as annuitants under PEMHCA, upon service or disability retirement under the PERS retirement plan, or in the event of the death of an employee prior to retirement, the City shall contribute to a retiree health savings account the difference between the PEMHCA minimum and the cost of lifetime medical, dental and vision insurance for the employee, spouse, and eligible dependents under the City of Redlands & Redlands Association of Safety Management Employees MOU – 2026~2029 Page 5 association’s current medical insurance program existing at the time of retirement. This health insurance shall be at no cost to the retired employee and shall cover the employee, spouse, and eligible dependents. Employees who promote into the RASME unit shall maintain any lifetime medical benefit such employee has previously accrued with the City and/or eligibility to earn lifetime medical if they had that right under their previous memorandum of understanding.

C. Employees hired on or after adoption of the 2018-2023 MOU (December 5, 2017) shall not be eligible for conversion of accrued sick leave to cash value.

Article 11: LIFE INSURANCE
The City provides Association employees with $25,000 of life insurance. Employees may also purchase additional increments of life insurance at the City’s group rate.

Article 12: DEFERRED COMPENSATION
The City shall make available to Association employees a qualified 457(b) plan and 401(a) plan. All plans will be structured in accordance with the latest IRS rulings. Each January, the City shall make an annual contribution to the City of Redlands & Redlands Association of Safety Management Employees MOU – 2026~2029 Page 6 401(a) deferred compensation on behalf of each Association employee in the amount of up to $1,200 per year + 3% of gross annual salary. The full contribution amount to 401 (A) shall be provided based on a complete one year of service in the preceding year. For new Unit employees, and employees transferring into the Unit in the preceding year, the amount shall be prorated on a monthly basis for period of service within the unit. In the event that an employee leaves the Unit, they shall receive a final contribution in a prorated amount up to $1,200 per year plus 3% of salary based on their period of service in their final year in the Unit and shall not receive any additional contribution in January.

Article 13: POST CERTIFICATION PAY
Association employees shall receive POST certificate pay in the amount of 12.5% of base salary for an Advanced POST certificate. Additionally, Association employees shall also receive POST Supervisory or Management certificate pay in the amount of 13% of base salary. The maximum amount any Association employee shall receive in certificate pay shall be 25.5% of base salary.

Upon the approval of the department head and human resources, an Association employee may use up to one thousand dollars($1,000) per year of their available $5,000 per fiscal year tuition reimbursement for attendance at a seminar or conference for the purpose of professional development That $1,000 per year amount may be applied for hotel and travel expenses related to the attendance at such a seminar or conference.

Article 17: INCENTIVES AND LEAVE CASH OUT SHALL BE CALCULATED BASED IN THE COMBINATION OF BASE SALARY AND LONGEVITY PAY. MOBILE DEVICE PAY
Association employees shall receive Mobile Device Pay in the amount of $100 per month in addition to their regular base pay. All employees receiving this incentive are required to carry a mobile device at all times.

Article 18: LEGAL DEFENSE INSURANCE
The City shall pay the premium for CPOA legal defense insurance for Association employees.

Article 19: HOLIDAYS
A. The City of Redlands currently observes the following holidays, established by Resolution:

New Year’s Day January 1
Martin Luther King, Jr. Day Third Monday in January
President’s Day Third Monday in February
Farm Workers Day March 31st
City of Redlands & Redlands Association of Safety Management Employees MOU – 2026~2029 Page 7 Memorial Day Last Monday in May
Juneteenth June 19th
Independence Day July 4th
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11th
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day Fourth Friday in November Christmas Eve December 24th
Christmas Day December 25th
B. Association employees shall “bank” holiday hours at the rate of ten (10) hours for each holiday and be paid for them in January of the following year.

C. Association employees that work on a recognized holiday shall receive half time premium for all hours worked.

Article 20: SICK LEAVE

ACCRUAL
Association members shall receive eight (8) hours of sick leave per month.

YEARS OF

SERVICE

MAXIMUM BUY-BACK

HOURS PER YEAR
2-6 48
7 56
8 64
9 72
10 80
11 88
12 96
Article 21: VACATION
A. Vacation shall accrue for Association employees based on the following schedule:

YEARS/MONTHS

OF SERVICE
HOURS
City of Redlands & Redlands Association of Safety Management Employees MOU – 2026~2029 Page 8 1 - 5 (0-71 months) 80
6 - 7 (72–95 months) 120
8 -9 (96-119 months) 128
10–11 (120-143 mos) 136
12–13 (144-167 mos) 144
14–15 (168-191 mos) 152
16–20 (192-251 mos) 160
21 (252-263 months) 168
22 (264-275 months) 176
23 (276-287 months) 184
24 (288-299 months) 192
25 (300 months+) 200
Article 22: ACCRUED VACATION TIME SELL BACK
Association employees with a minimum of three hundred (300) hours of accumulated vacation time shall sell back vacation time in excess of the 300 hours accumulation and deposit into a qualified 401(a) plan. The conversion and deposit of available vacation time shall occur during the third week of September each year. Employees shall contribute up to 100% of accrued vacation time in excess of the 300 hours accumulation up to the IRS maximum allowed.

Article 24: PERSONAL LEAVE
Association employees may use up to a maximum of eight (8) hours of accrued sick leave per year for personal leave, subject to advance approval by his/her supervisor.

Article 27: WORKWEEK
Association employees shall have a standard workweek consisting of four ten-hour days followed by three consecutive days off unless an alternate schedule is agreed upon by the employee(s) and department head.

Article 28: POLICE VEHICLE USAGE
Upon authorization by the Police Chief, Association employees may utilize department vehicles for personal use.

City of Redlands & Redlands Association of Safety Management Employees MOU – 2026~2029 Page 9 Article 29: NO STRIKE PROVISIONS
The Association agrees that it shall not authorize, instigate, aid, condone, or engage in any strike which will interrupt or interfere with the operation of the City. The City places the Association on notice of its intention and right to terminate any employee who instigates or engages in any strike or work stoppage which interrupts or interferes with the operation of the City.

Article 30: PREVAILING BENEFITS
All terms and conditions of employment set forth in this MOU and all past practices recognized under prevailing law will remain in full force and effect for the term of this MOU unless modified by mutual agreement of the parties. All other matters affecting terms and conditions of employment shall be subject to change during the term of this MOU either by mutual agreement or by virtue of the meet and confer processes and any applicable impasse resolution procedures being completed.

Article 32: DEATH OF EMPLOYEE
In the event an Association employee dies while on duty, the City shall calculate compensation for the entire shift.

Article 34: SIGNATURES
Mario Saucedo, Mayor
Attest:

Jeanne Donaldson, City Clerk
Date
Date
Stephen Crane, President Date
City of Redlands & Redlands Association of Safety Management Employees MOU - 2026~2029 Page 10 RE035\044\10246050.v2

MEMORANDUM OF UNDERSTANDING

BETWEEN THE

CITY OF REDLANDS

AND THE

REDLANDSCIVILIAN

SAFETY EMPLOYEE ASSOCIATION
JULY 1, 20263 - JUNE 30, 20296
City of Redlands | RCSEA - MOU 20263-20296 2
Between

The City of Redlands
And The
Redlands Civilian Safety
Employee Association
July 1, 20263– June 30, 20296
Article 1. Preamble _____________________________________________________________________________________ 5 Article 2. Term of Memorandum of Understanding _________________________________________________ 5 Article 3. Recognition __________________________________________________________________________________ 5 Article 4. Management Rights _________________________________________________________________________ 5 Article 5. Salaries _______________________________________________________________________________________ 6 Article 6. Retirement ___________________________________________________________________________________ 6 Article 7. Education Incentive pay ____________________________________________________________________ 7 Article 8. Longevity Pay ________________________________________________________________________________ 7 Article 9. Overtime _____________________________________________________________________________________ 8 Article 10. Working Out of Classification Pay __________________________________________________________ 8 Article 11. Special Assignment Pay _____________________________________________________________________ 9 Article 12. Call Back Pay _________________________________________________________________________________ 9 Article 13. Stand-by Pay _________________________________________________________________________________ 9 Article 14. Mobile Device Pay ___________________________________________________________________________ 9 Article 15. Matron Pay _________________________________________________________________________________ 10 Article 16. Training Pay _______________________________________________________________________________ 10 Article 17. Shift Differential ___________________________________________________________________________ 10 Article 18. Uniform Allowance ________________________________________________________________________ 10 Article 19. Deferred compensation ___________________________________________________________________ 11 Article 20. Rideshare Program ________________________________________________________________________ 12 City of Redlands | RCSEA - MOU 20263-20296 3
Article 21. Tuition Reimbursement ___________________________________________________________________ 12 Article 22. Bilingual Pay _______________________________________________________________________________ 12 Article 23. Death of Employee ________________________________________________________________________ 12 Article 24. Health Insurance __________________________________________________________________________ 12 Article 25. Dental Insurance __________________________________________________________________________ 14 Article 26. Vision Care _________________________________________________________________________________ 14 Article 27. Life Insurance ______________________________________________________________________________ 14 Article 28. Workers’ Compensation/SDI _____________________________________________________________ 14 Article 29. Vacation ____________________________________________________________________________________ 14 Article 30. Sick Leave __________________________________________________________________________________ 14 Article 31. Bereavement Leave _______________________________________________________________________ 15 Article 32. Leave of Absence Without Pay ___________________________________________________________ 15 Article 33. Military Leave ______________________________________________________________________________ 16 Article 34. Holidays ____________________________________________________________________________________ 16 Article 35. Compensatory Time Off ___________________________________________________________________ 17 Article 36. Employee Organization Rights ___________________________________________________________ 17 Article 37. Meal Periods _______________________________________________________________________________ 18 Article 38. Rest Periods ________________________________________________________________________________ 18 Article 39. Catastrophic Leave ________________________________________________________________________ 19 Article 40. Employee Assistance Program ___________________________________________________________ 19 Article 4041. Leave Time Reporting _____________________________________________________________________ 19 Article 4142. Driver’s License Physical Exams _________________________________________________________ 19 Article 4243. Employment Examination Procedures __________________________________________________ 19 Article 4344. Probation ___________________________________________________________________________________ 19 Article 4445. Workweek /Work Schedule ______________________________________________________________ 19 Article 4546. Promotional Positions ____________________________________________________________________ 20 Article 4647. No Strike Provision ________________________________________________________________________ 20 Article 4748. Direct Deposit ______________________________________________________________________________ 20 Article 4849. Personnel File ______________________________________________________________________________ 20 Article 4950. Copy of MOU to Each Employee __________________________________________________________ 20 Article 5051. Rules, Regulations and Resolutions ______________________________________________________ 21 Article 5152. Disciplinary Procedure ____________________________________________________________________ 21 City of Redlands | RCSEA - MOU 20263-20296 4
Article 5253. Grievance Procedure ______________________________________________________________________ 26 Article 5354. Demotion/Non-Disciplinary ______________________________________________________________ 30 Article 5455. Layoff Procedure __________________________________________________________________________ 30 Article 5556. Unit Modification __________________________________________________________________________ 32 Article 5657. Communications ___________________________________________________________________________ 32 Article 5758. Use of Bulletin Boards _____________________________________________________________________ 32 Article 5859. Prevailing Benefits ________________________________________________________________________ 32 Article 5960. Extension of MOU__________________________________________________________________________ 33 Article 6061. Savings Clause _____________________________________________________________________________ 33 Article 6162. Zipper clause _______________________________________________________________________________ 33 Article 6263. Signatures __________________________________________________________________________________ 33 City of Redlands | RCSEA - MOU 20263-20296 5
Article 1. PREAMBLE
It is the intent and purpose of this Memorandum of Understanding (hereinafter “MOU”) to set forth the understanding of the City of Redlands (hereinafter “City”) and the Redlands Civilian Safety Employees Association (hereinafter “Association” or the “Unit”) reached as a result of meeting and conferring in good faith regarding, but not limited to, matters relating to the wages, hours, and terms and conditions of employment between the City and the Association.

Article 2. TERM OF MEMORANDUM OF UNDERSTANDING
Except where expressly stated otherwise herein, the City and the Association agree that the provisions of this MOU shall become effective as of July 1, 20263 and shall expire on June 30, 20296.

Article 3. RECOGNITION
A Unit employee shall be defined as an employee of the City and assigned to the Association’s Unit by the City Manager in accordance with City policies and procedures. The following classifications are assigned to the Association’s Unit:

Animal Services Officer
Animal Services Supervisor
Community Service Officer I/II
Crime Analyst
Digital Forensic Examiner
Dispatch Supervisor
Dispatcher I/II/III
Executive Police Assistant
Fire Prevention Inspector
Forensic Specialist
Kennel Attendant
Police Recruit
Property and Evidence Technician
Records Specialist I/II
Records Supervisor
Senior Community Services Officer

Article 4. MANAGEMENT RIGHTS
The authority of the City includes:
• The exclusive right to determine the mission of its constituent departments, commissions and boards;
• Set standards of service;
• Determine the procedures and standards of selection for employment and promotion; • Direct its employees;
City of Redlands | RCSEA - MOU 20263-20296 6
• Take disciplinary action;
• Relieve its employees from duty because of lack of work or for other legitimate reasons; • Maintain the efficiency of work;
• Maintain the efficiency of governmental operations;
• Determine the methods, means and personnel by which government operations are to be conducted;
• Determine the content of job classifications;
• Take all necessary actions to carry out its mission in emergencies; • Exercise complete control and discretion over its organization and the technology of performing its work, provided, however, that the exercise and retention of such rights does not preclude employees or their representatives from meeting and conferring over effects on matters within the scope of representation.

Article 5. SALARIES
A. All Unit employees are responsible for the employee contribution to Social Security and Medicare.

B. Effective the first full pay period following July 1, 20263, all Unit employees will receive a seven four percent (74%) increase to base salary.

C. Effective the first full pay period following July 1, 20247, all Unit employees will receive a two three percent (23%) increase to base salary over the prior year.

D. Effective the first full pay period following July 1, 20258, all Unit employees will receive a two three percent (32%) increase to base salary over the prior year.

E. Salary Range Restructure:
1) Effective the first full pay period after July 1, 2026, the City shall eliminate Step 0 on the salary range for each classification. Employees on Step 0 at that time shall immediately be placed on Step 1. For those employees being advanced to Step 1, service hours for the purpose of receiving their next merit increase shall not reset.
2) Effective the first full pay period after July 1, 2026, the City shall establish three new steps (Steps 5, 6 and 7) at the top of the salary range for each classification. Each of the new steps shall be two and a half percent (2.5%) higher than the preceding step. 0)3) Advancement to the new Steps 5, 6, and 7 shall continue to occur upon an employee’s anniversary date.

Article 6. RETIREMENT
A. Classic Members

1. All “classic” Unit members shall personally fund 100% of the 7% of compensation earnable as and for the individual member’s normal employee PERS contribution. (The term “classic” member is defined in the Public Employee’s Pension Reform Act of 2013-“PEPRA.”) All “classic” member normal contributions required to be paid by the member, whether paid by the employer or the member, shall be credited to the member’s CalPERS account.

City of Redlands | RCSEA - MOU 20263-20296 7
The City shall adopt the necessary resolution(s) so that individual member contributions made by the employee may be excluded from taxable income pursuant to Section 414(h)(2) of the United States Internal Revenue Code.

2. The City shall continue to include in this contract with CalPERS, the following provisions:

B. New Members

1. PEPRA shall in its entirety be given full force and effect as it may from time to time exist, during and after the term of this MOU, as described below. Any provision in this MOU which contradicts any provision of PEPRA shall be deemed null and void, with the contrary PEPRA provision(s) being given full force and effect.

2. Unit employees who are “new members” as defined in PEPRA, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said newly hired member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (PEPRA – Government Code section 7522.30)

3. Unit employees who are “new members,” as defined in PEPRA, on and after January 1, 2013, shall be enrolled in the PEPRA retirement plan of 2%@62 (Government Code section 7522.20(a), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a).) Article 7. EDUCATION INCENTIVE PAY
Employees will qualify for a three percent (3%) increase in base salary upon submitting satisfactory proof of a Master or Doctoral degree (i.e., official transcripts) where such degree is not required as part of the employee’s minimum job qualifications. If a Master’s degree is required as part of the employee’s minimum job qualifications, the employee will only be eligible for education incentive pay upon submitting satisfactory proof of a Doctoral degree.

Article 8. LONGEVITY PAY
A. Employees with fifteen (15) years of continuous service with the City shall receive compensation in the amount of three percent (3%) percent of base salary, effective with the beginning of the pay period closest to completion of their 15th year of service.

HIGHEST SINGLE YEAR

SURVIVOR CONTINUANCE
2% @ 55 RETIREMENT FORMULA
City of Redlands | RCSEA - MOU 20263-20296 8
B. Employees with twenty (20) years of continuous service with the City shall receive compensation of two percent (2%) percent, effective at with the beginning of the pay period beginning closest to completion of their 20th year of service.

C. The 15-year longevity shall be compounded with the 20-year longevity pay. Incentives and leave cash out shall be calculated based on the combination of base salary and longevity pay.

B. Employees with fifteen (15) years continuous service with the City, shall advance to Step “5” on the salary schedule which shall be a minimum of three percent (3%) higher than Step “4,” effective with the beginning of the pay period closest to completion of their fifteenth (15th) year of service.

C. Employees with twenty (20) years continuous service with the City, shall advance to Step “6” on the salary schedule which shall be a minimum of two percent (2%) higher than Step “5,” effective with the beginning of the pay period closest to completion of their twentieth (20th) year of service.

D. In the event that an employee is not at Step 4 when he/she is eligible for Step 5, at the completion of fifteen (15) years of service, the employee will advance to the next step in the salary range and continue to advance based on merit until the employee reaches Step 5.

E. In the event that an employee is not at Step 5 when he/she is eligible for the Step 6, at the completion of twenty (20) years of service, the employee will advance to the next step in the salary range and continue to advance based on merit until the employee reaches Step 6.

Article 9. OVERTIME
A. Overtime pay shall be earned at time and one-half for all hours. A Unit employee may elect to earn compensatory time off, at one and one-half time, in lieu of overtime pay. Overtime must be paid at the time it is worked or accrued as compensatory time. Accrued compensatory time will not be paid off in lump sum except at termination and only for those hours on the official payroll records.

B. Paid leave time, which encompasses floating holiday, vacation, sick, and compensatory time, shall not be considered hours worked for the computation of overtime. Paid holiday time and jury duty shall be considered hours worked for the computation of overtime.

C. Any Unit employee who works overtime in excess of three and one-half (3½) hours, provided that employee has worked eight (8) hours in addition to the three and one-half (3½) hours, will be entitled to have a meal at the expense of the City or be entitled to go home and eat, which will be at the discretion of the supervisor in charge.

Article 10. WORKING OUT OF CLASSIFICATION PAY
A. Whenever the needs of the City require a Unit employee to temporarily perform the duties of a higher classification than that in which the employee is currently employed, said employee shall be entitled to receive out of classification pay for the period of time that the Unit employee works out of classification. Employees approved to work out of class shall be placed at Step 10 of the classification in which they are working. If Step 10 does not provide a 5% increase, the employee will be placed at the step on the range that provides a 5% increase. Placement will not exceed Step 4 7 of the range.

B. In order to receive out of classification pay the following provisions must occur:

1. A vacancy or absence must exist for out of classification pay to be paid.

City of Redlands | RCSEA - MOU 20263-20296 9

2. The employee receiving out of classification pay must perform essentially all of the functions of the higher classification in order to receive compensation.

3. The employee shall meet the minimum qualifications for the higher classification in order to be eligible for out of classification pay.

4. The employee shall have completed five (5) consecutive full workdays in the higher classification and shall then be eligible for out of classification pay commencing with the sixth (6th) consecutive day working out of classification and continuing for all consecutive days worked thereafter.

C. Working out of classification pay will only be authorized upon recommendation to the Human Resources/Risk Management Director by the Department Director and will require a Personnel Action Form with supporting documentation justifying the special assignment.

Article 11. SPECIAL ASSIGNMENT PAY
Unit employees performing in a capacity beyond the normal scope of their duties, and with increased and direct responsibility and personal liability for City operations shall be eligible for Special Assignment Pay.

Special Assignment Pay shall be at a flat rate not to exceed ten percent (10%) of base salary. Special Assignment Pay will only be authorized upon Department Director recommendation, Human Resources Director concurrence, and City Manager approval.

Article 12. CALL BACK PAY
A. Call back time will be reimbursed based on a minimum two (2) hour block at time and one-half, with the exception that Unit employees will be reimbursed based on a minimum three-hour block at time and one-half if the call back is between the hours of 12:00 a.m. and 7:00 a.m. Any Unit employee who is unable to respond within thirty (30) minutes may be eliminated from the standby rotation.

B. A Unit employee working a continuous call back of at least four (4) hours that ends within eight (8) hours of the employee’s regular job starting time is not required to report to duty at the employee’s regularly scheduled time. When a Unit employee has worked at least two (2) hours during the eight (8) hours prior to the commencement of the regular work schedule, the employee shall automatically report to duty on the employee’s regularly scheduled shift immediately commencing ten (10) hours after the end of the call-back assignment.

Article 13. STAND-BY PAY
A. Unit Employees assigned to standby duty shall receive one (1) hour of pay at straight time for standby duty on a regularly scheduled work day and four (4) hours of straight time pay for standby duty on a regularly scheduled day off or holiday.

B. In order to qualify for standby pay, a Unit employee must:

1. Be required to carry a telephone at all times;

2. Be able to report to the worksite within thirty (30) minutes; and,

3. Not consume alcoholic beverages or any other debilitating drug while on standby.

Article 14. MOBILE DEVICE PAY
City of Redlands | RCSEA - MOU 20263-20296 10
The Police Chief may assign unit members in the classifications of Crime Analyst, Dispatch Supervisor, and Executive Police Assistant to carry a mobile device for the benefit of the City. Unit members assigned to carry a mobile device shall receive one hundred dollars ($100) per month in addition to their regular base salary. All employees receiving this incentive shall be required to carry the mobile device at all times.

Article 15. MATRON PAY
A. Female Community Service Officers, Senior Community Service Officer, Dispatchers and Records Specialists who are assigned to the position after July 1, 2004, shall receive a 2.5% salary differential in recognition of the fact that they may be required to perform matron duties. This differential shall only be paid for actual hours worked when matron duties are performed.

B. Female Records Specialists assigned to the position prior to July 1, 2004, shall receive a 2.5% salary differential in recognition of the fact that they were required to perform matron duties. This differential shall continue to be paid for all hours worked until the incumbent employee transfers or promotes. If an employee leaves the position and later returns, she shall be considered to be newly assigned and shall receive the salary differential only when matron duties are actually performed as described in the previous paragraph of this Article.

Article 16. TRAINING PAY
When a dispatcher is assigned a trainee during the initial training period, the assigned training dispatcher shall be eligible to receive training pay in the amount of five percent (5%) of base salary at straight time.

A dispatcher is only eligible for training pay when actively training a probationary dispatcher.

When a forensic specialist or community service officer is assigned a trainee during the initial training period, the assigned training employee shall be eligible to receive training pay in the amount of two and one half percent (2.5%) of base salary at straight time. An employee is only eligible for training pay when actively training a probationary forensic specialist or community service officer.

Article 17. SHIFT DIFFERENTIAL
The City agrees to provide a five percent (5%) shift differential to those Unit employees who work onehalf of their regularly scheduled shifts after 7:00 p.m., not to include overtime, special assignments, emergency hours, etc. worked after 7:00 p.m. The shift differential shall apply to the full regularly scheduled shift.

Article 18. UNIFORM ALLOWANCE
A. The City shall provide a clothing allowance of three hundred twenty-five dollars ($325) in the form of a check, to all non-uniformed Unit employees on payroll as of June 1st of each year. This allowance shall be paid in July of each year.

B. Unit employees in the following classifications shall receive a uniform allowance of one thousand seven hundred dollars ($1,700) per year. Two checks of eight hundred fifty dollars ($850) each shall be issued each year, one in July and one in January for unit employees employed as of June 1 and December 1, respectively.

Animal Services Officer
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Animal Services Supervisor
Community Services Officer I/II/Sr.

Digital Forensic Examiner
Dispatch Supervisor
Dispatcher I/II/III
Fire Prevention Inspector
Forensic Specialist
Property & Evidence Technician
C. City agrees to provide newly hired employees in the following classifications with a one-time custom-fitted load-bearing vest carrier, not to exceed seven hundred dollars ($700), of similar quality to the Blankenship Police Supply Tactical vest:

Community Services Officer I, II, Sr.

Forensic Specialist
Digital Forensic Examiner
Property and Evidence Technician
Fire Investigator
C.D. The Kennel Attendant shall receive a boot allowance in the amount of two hundred twenty-five dollars ($225) to be paid in July of each year.

D.E. Uniforms are to be presentable at all times. Cleaning and maintenance of uniforms shall be the responsibility of the employee.

E.F.The parties recognize that their best efforts have been made to list the appropriate job classifications and uniform entitlement. In the event there is a change to job duties or an error has been made and a classification has been misidentified, that classification will be added to the above appropriate category. If new classifications are added during the term of this MOU (20236-20269), the City and the unit will meet and confer on whether the newly added classification will receive a uniform allowance or a clothing allowance.

Article 19. DEFERRED COMPENSATION
Unit employees are eligible to participate in City Deferred Compensation Plans 457 (B) and 401 (A) as provided for in State and Federal Tax Codes. Each January, The City will contribute Eight Hundred Sixty Dollars ($860) per year to a 401(A) program for Unit employees who receive a uniform allowance. The City will contribute and One Thousand Five Hundred Sixty Dollars ($1560) per year to a 401(A) program for Unit employees who do not receive a uniform allowance. The full contribution amount shall be provided based on a complete one year of service in the preceding year. For new employees and employees transferring into the unit the amount will be prorated on a monthly basis for period of service within the unit in the preceding year. In the event that an employee leaves the Unit, they shall receive a final contribution in a prorated amount of up to Eight Hundred Sixty Dollars ($860) for Unit employees who receive a uniform allowance and a City of Redlands | RCSEA - MOU 20263-20296 12
prorated amount up to One Thousand Five Hundred Sixty Dollars ($1560) for Unit employees who do not receive a uniform allowance. Unit employees may individually contribute additional deferred compensation to the 457 (B) Plan in accordance with Plan provisions.

Article 20. RIDESHARE PROGRAM
A. All Unit employees are eligible for participation in the City’s ridesharing program. Participation in the program is voluntary and shall be in full compliance of Redlands Ridesharing Program Policy.

Approved participants shall receive fifteen (15) minutes of accrued compensatory time off for each rideshare day. Ridesharing shall be reported on individual employee timesheets.

B. The program shall be monitored by the Program Coordinator. Participants in violation of the Ridesharing Policy, including falsification of reporting, shall be permanently dismissed from the program and subject to disciplinary action.

Article 21. TUITION REIMBURSEMENT
A. Unit employees shall be reimbursed up to the dollar amount charged for the same number of units per term by the University of California, Riverside. An employee shall not receive reimbursement in excess of five thousand dollars ($5,000) in any one fiscal year. The difference between the City’s maximum obligation during any fiscal year and the amount of any actual reimbursement received by the employee during that fiscal year shall not be carried over or be available to use by the employee in any subsequent fiscal year.

B. The course must be satisfactorily completed with a minimum grade of “C” or equivalent.

Article 22. BILINGUAL PAY
Unit employees are eligible for bilingual pay in accordance with the City’s Bilingual Pay Program, and upon approval by the Department Director and City Manager. Authorized employees shall receive additional compensation in the amount of seventy-five one hundred dollars ($75) ($100) per month per pay period.

Article 23. DEATH OF EMPLOYEE
If a Unit employee dies while on duty, the City shall calculate compensation for the entire shift.

A. The eligible dependents of deceased employees shall be entitled to benefits as follows:

B. Sick leave accruals, lifetime medical insurance and other applicable benefits shall be calculated and/or compensated according to the eligibility requirements stated in the current MOU.

C. In the event the deceased Unit employee qualified for a service retirement (i.e. age 50 and with a minimum of five (5) years of service with the City), the City shall calculate and/or compensate benefits in the same manner as an employee service retirement.

Article 24. HEALTH INSURANCE
A. The City shall contribute directly to CalPERS on behalf of each employee three hundred and ninetyseven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989. In addition, the City shall contribute an amount through the City’s cafeteria plan City of Redlands | RCSEA - MOU 20263-20296 13
that is equal to the difference between the City’s minimum PEMHCA contribution and the following amount:

B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post-employment health plan.

C. The City agrees to provide a stipend of three hundred and fifty dollars ($350), on a monthly basis, for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.

D. RETIREE INSURANCE BENEFITS

1. For all unit members who qualify as an “annuitant” under PEMHCA, the City will contribute directly to CalPERS on behalf of each annuitant three hundred and ninety-seven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989.

2. Upon service retirement and completion of twenty (20) cumulative years of service with the City, a Unit employee hired prior to March 11, 2010, who qualifies as an annuitant under PEMHCA, may elect to receive as a City contribution to a retiree health savings account the difference between the PEMHCA minimum and the cost of fully paid medical insurance (excludes vision coverage) for the employee and eligible dependents, under the City’s medical insurance program. Employees hired on or after March 11, 2010 are not eligible for this benefit.

3. Unit employees with ten (10) years of continuous employment with the City who concurrently retire from the City and the CalPERS system and who qualify as an annuitant under PEMHCA may elect to receive “Medical Bridge.” Under the “Medical Bridge,” the City will contribute to a retiree health savings account the difference between the PEMHCA minimum and the cost of single party coverage for the retired unit member only for the lowest cost medical and dental insurance plans as provided by the City to its then existing Unit members until the member reaches the age of Medicare eligibility at which time the benefit will cease and unit members will only receive the PEMHCA minimum contribution.

Unit members who receive the medical bridge can select higher cost plans offered by the City to its then existing members and/or coverage for dependents, however, the additional cost for the plan or additional dependents shall be paid for by the unit member and not by the City.

COVERAGE LEVEL

TOTAL CITY CONTRIBUTION
EFFECTIVE JULY 1, 20263

EFFECTIVE
JANUARY 1, 2024

EFFECTIVE
JANUARY 1, 2025
Employee Only: $900800$750 $775 $800
Employee Plus One Dependent: $1700$1,500 $1,550 $1,600
Employee plus Two or more
Dependents:
$2200$1,950 $2,025 $2,100
City of Redlands | RCSEA - MOU 20263-20296 14
Article 25. DENTAL INSURANCE
The City agrees to pay the full monthly premium for dental insurance under the Principal Financial dental plan or its equivalent for each Unit employee in the unit and all eligible dependents of such employee.

Article 26. VISION CARE
The City agrees to reimburse each Unit employee up to three hundred dollars ($300) every fiscal year for the purchase of frames and lenses or contact lenses and the cost of eye examinations for the employee and/or his/her dependent.

Article 27. LIFE INSURANCE
The City shall contribute the monthly premium for term life insurance in the amount of twenty-five thousand dollars ($25,000) for all Unit employees.

Article 28. WORKERS’ COMPENSATION/SDI
A. The City agrees to provide City paid State Disability Insurance coverage to all Unit employees.

B. Sick leave or compensatory time may be used to supplement a Worker’s Compensation or State Disability Insurance check, not to exceed the Unit employee’s regular rate of pay. Prior to use of accrued sick leave or compensatory time for this purpose, the State Disability Insurance check stub must be submitted to Payroll.

Article 29. VACATION
A. The vacation accrual for Unit employees shall be as follows:

YEARS/MONTHS OF SERVICE ANNUAL
ACCRUAL RATE – HOURS
0 – 5 (0-59 months) 80
6 – 7 (60-83 months) 120
8 – 10 (84-119 months) 140
11–14 (120-167 months) 160
15+ (168 months+) 200
B. The maximum vacation accrual shall be three (3) years. In November of each calendar year all vacation hours in excess of three (3) years accrual will be paid off at the Unit employee’s current hourly rate.

Article 30. SICK LEAVE
A. ACCRUAL: Sick leave shall be accrued on an hourly basis at the rate of eight (8) hours per calendar month of service.

B. USE: Unit employees may use up to half of their annual sick leave accrual, forty-eight (48) hours, to care for ill family members.

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C. BUY BACK: In November of each calendar year, each Unit employee may elect to be paid at his/her current hourly rate for each sick leave day accumulated during the following calendar year in excess of six (6) sick leave days in November of the following year. A total of one (1) year’s accumulation, ninety-six (96) hours, must be on the books prior to any compensation being paid. This election is irrevocable and may not be changed once the election is made. Unit employees may also choose to accumulate all sick leave days, from calendar year to calendar year, to an unlimited amount.

D. AT SEPARATION OF SERVICE: Upon voluntary separation of service or layoff with the City, Unit employees with ten (10) or more years of continuous service will be eligible to cash in unused sick leave at the following formula:

YEARS OF SERVICE PERCENT
10 – 15 25 %
16 – 20 35 %
21+ 50 %

E. UPON SERVICE RETIREMENT: In lieu of the benefit D of this Article, and upon service retirement under the PERS retirement plan, Unit employees may elect to have all remaining sick leave accrued at the time of retirement converted to cash value at their final rate of pay, and deposited in the Post Employment Health Plan (PEHP) where it can be used for covered expenses such as applicable premiums payable under the City’s medical insurance program for the employee and the employee’s eligible dependents. In the event that the employee dies prior to exhaustion of the cash value of said benefits, the remaining cash value may be applied toward the premiums of covered dependents until exhausted, subject to the conditions and limitations of the PEHP.

F. CONVERSION TO SERVICE CREDIT: In lieu of benefits D and E cited above, Unit employees may elect to have all remaining sick leave accrued at the time of service retirement converted to PERS service credit.

Article 31. BEREAVEMENT LEAVE
In the event of a death in the immediate family, an eligible Unit employee will be compensated with four (4) days paid leave. In addition, eligible Unit employees may be allowed to use accrued sick leave with full pay not to exceed three (3) days. Immediate family shall be defined as the following relatives to either the employee or spouse or registered domestic partner: spouse, registered domestic partner, child (including foster child or ward of the court), parent, grandparent, brother, sister, niece, nephew, stepchildren, and grandchildren. The definition of immediate family will also include the aunt and uncle of the employee only. Bereavement leave may also be used for the significant other of the employee provided the employee shows proof of cohabitation.

Article 32. LEAVE OF ABSENCE WITHOUT PAY
If a Unit employee takes more than five (5) accumulated days of leave without pay in a calendar year, commencing at the beginning of the sixth (6th) day of leave without pay and any day of leave without pay thereafter during the calendar year; sick leave and vacation accruals will be adjusted proportionately to eliminate benefit accruals for any day an employee is on leave without pay status.

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Article 33. MILITARY LEAVE
Military leave shall be granted in accordance with the provisions of State and Federal law. The Department Director may request copies of the Unit employee’s official military orders.

Article 34. HOLIDAYS
A. The holidays which will be honored for Unit employees will include the following, along with any additional day as designated by action of the City Council:

HOLIDAY DAY OBSERVED
New Year’s Day January 1
Martin Luther King Day Third Monday in January
President’s Day Third Monday in February
Cesar Chavez Farm Workers Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11
Thanksgiving Day Third Fourth Thursday in
November
Friday after Thanksgiving Day Friday after Thanksgiving Day Christmas Eve December 24
Christmas Day December 25
B. If the holiday falls on Saturday, Friday shall be designated as the holiday and if the holiday falls on Sunday, Monday shall be designated as the holiday.

C. If a scheduled holiday falls on an employee’s regular day off, the Unit employee shall be given the option of being compensated or banking the time as Compensatory Time Off (CTO) for one day of holiday compensation at straight time. Employees should not be scheduled to work both the designated holiday and the actual holiday. Employees on a 9-80 schedule shall bank or be compensated for 8 hours of a holiday if the holiday lands on a closed Friday.

D. Holiday pay shall be compensated in accordance with the Unit employee’s standard work schedule.

E. Unit employees are entitled to receive:

1. Two (2) Floating Holidays per calendar year; and

2. Twenty (20) Hours of Additional Floating Holidays per calendar year.

F. Unit employees shall not be allowed to carry floating holidays over from one calendar year to the next. Holidays not taken by December 31st of any given year will be forfeited.

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Article 35. COMPENSATORY TIME OFF
A. Compensatory Time Off (CTO) shall accrue at the rate of one and one-half (1-1/2) hours for each overtime hour worked in accordance with the Fair Labor Standards Act. CTO shall not accumulate in excess of three hundred (300) hours at any given time. Use of compensatory time-off earned shall be granted so that it does not unduly disrupt the operations of the City. Terminating Unit employees shall be compensated for accrued compensatory hours.

Article 36. EMPLOYEE ORGANIZATION RIGHTS
Time Off for Association Reps: The Association may designate up to seven (7) representatives to attend Association meetings on City time, including new employee orientations, provided that no designated Unit employee shall be released for more than four (4) hours per month. The time must be scheduled in advance and the supervisor must be notified.

New Employees: The City agrees to furnish each new employee in the bargaining unit with a copy of the MOU at the commencement of his/her employment.

Orientations: In accordance with Government Code §3555 3559, the City shall provide written notice to Association Representatives when a new employee is hired or promoted into the bargaining unit and provide reasonable release time for an Association Representative to meet with the new employee for the purpose of discussing membership in the Association. This new employee orientation should take place as promptly as possible on or after the first day of employment. New employees shall be advised of the potential release of personal information, identified in Demographic Reports, below, and shall have the option to request in writing to Human Resources that the City refrain from disclosing such personal information.

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Contract Negotiations: The negotiating team for the Association, to be comprised of no more than five (5) employees, shall be permitted to attend negotiating sessions during work hours with pay. There shall be no compensation for meetings held outside scheduled work hours of members of the bargaining team.

Redlands City CouncilJuly 7, 2026

Redlands City Council
July 7, 2026