HomeMy WebLinkAbout _ 4.11(c)--COVID-19 Economic Stimulus Package Projects Update GI �" Y � F
� � � ° � � � " � � CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: September 19,2023 FROM: Chuck Aukland, Public
ITEM NO. 4.11(c) Works Director
***APPROVED BY***
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caulcland@ci.redding.ca.us btippin@cityofredding.org
SUBJECT: 4.11(c)--COVID-19 Economic Stimul�us Package Projects
Recommendation
Accept update regarding the City of Redding's COVID-19 Economic Stimul�us Package projects.
Fiscal Impact
The City Council (Council) previously approved an allocation of$9 million in Greenhouse Gas
Cap and Trade auction proceeds to be used for projects that reap an energy savings benefit to the
City of Redding (City). To date, the City Manager has authorized purchases and projects totaling
over $3.6 million and a consulting services agreement for engineering and construction
management support of more than $1.2 million. There is no fiscal impact to the General Fund.
Alternative Action
The Council may choose not to accept the project status report and provide further direction to
staff.
Background/Analysis
On April 21, 2020, the Council unanimously approved the City's Economic Response Plan.
Included in the plan, is the allocation of$9 million in Cap and Trade auction proceeds to be used
for several projects associated with the Local Economic Stimulus Package that equates to a
savings in energy costs for the City. On 1VIay 5, 2020, the Council authorized the City Manager
to execute agreements, purchase orders, and contracts associated with the program to ensure an
expedited delivery schedule. The Council also directed staff to provide regular status updates on
the program and ratify all City Manager awards.
Report to Redding City Council September 23,2023
Re: 4.11(c)--COVID-29 Economic Stimulus Package Projects Update Page 2
As directed by the City Manager, staff has endeavored to break up most of the work into smaller
contracts, with values lower than $500,000, with the idea that local contractors and vendors will
compete better due to lack of mobilization costs and other local advantages. However, the City
has liinited control because these are Public Works contracts and must be awarded to the lowest
responsible and responsive bidder in accordance with State of California law.
To date, staff has awarded 15 projects totaling more than $3.6 million that include:
• Projects for lighting improvements at sport fields, the Library, Corporation Yard, City
Hall, the Police Department, the Civic Auditorium, fire stations, and various other City
buildings;
• Projects to install solar power generation systems;
• Replacing roofs at various fire stations; and
• Purchase orders and on-call contract services for lighting, plumbing, mechanical work,
and equipment.
Thirteen projects have been completed, and nine of the 15 projects have been awarded to
contractors with local offices.
The design consultant and staff are finalizing bid packages for the Aquatic Center Pumping
System Upgrades Project and for heating, ventilation, and air conditioning projects at City Hall,
the Police Department, and the Corporation Yard. Construction of the lighting project at the
Civic Auditorium continues to experience delays as a result of long lead times for material. The
attached Project Status Report provides more detailed information on project status and costs.
Staff will continue to return to the Council quarterly to provide progress updates, with the next
update is anticipated to be December 19, 2023.
EnviNonmental Review
Accepting the project status report is not a project as defined by the California Environmental
Quality Act (CEQA), and no further action is required, The individual projects within this report
may be subject to CEQA guidelines and are individually analyzed.
Council Pr�iority/City Manager Goals
� Budget and Financial Management — "Achieve balanced and stable 10-year Financial
Plans for all funds."
� Communication and Transparency — "Improve the quality of communication with the
public and City employees to enhance knowledge and increase transparency to improve
public trust."
� Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
� Economic Deve�opment — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community."
Attachments
^Project Status Report
Previous Staff Report OS-OS-20
Previous Staff Report 04-21-20
Energ� Efficiency Eccanc�mic Re�pc�r�se Plan (EEERP) Prc,j�ct �t�tus R�pc�rt
Estimated
Award/PO Ratification Local Contractor, $to Local Completion Acceptance
Project# Description Project Type Contract Method Date Date Contractor Sub,or Supplier? Cost Est Actual Cost Contractors Date Date Project Status
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C19-S-02 Solar PV&Replace Roofs at Various Fire Stations(Stations 2,4,5, and 6) Solar Standard Bid 11/23/2021 12/21/2021 Harbert Roofing,Inc. Yes $ 525,610 $ 426,213 $ 426,213 9/30/2023 Completing inspections and punch-list items.
C19-L-06 LED lighting Retrofit at Civic Auditorium Lighting Standard Bid 11/23/2021 12/21/2021 Fluoresco Services,LLC No $ 162,111 $ 77,387 $ - 12/1/2023 Construction delayed due to material lead times.
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C19-M-03 Upgrade HVAC at City Hall&Police Department NVAC Standard Bid $ 888,430 2/1/2024 Jacobs's preparing final design package.
C19-M-04 Upgrade HVAC at Caldwell Park Rec Center NVAC Standard Bid $ 120,000 2/1/2024 City working with on-call contractor for improvement options.
C19-M-O5 Upgrade HVAC at Corp Yard NVAC Standard Bid $ 195,000 3/15/2024 Jacobs preparing design package.
C19-P-03 Upgrade Pumping Control System at the Aquatic Center Plumbing Standard Bid $ 150,000 3/1/2024 Jacobs preparing final design package.
C19-5-03 Solar PV&Replace Roofs-Fire Stations 1 and 3 Solar Standard Bid $ 250,000 TBD
Design on hold until future plan for these fire stations is
determined.
City working on a purchase order with a local contractor to
C19-W-04a Replace Windows at Fire Station 5 Windows Standard Bid $ 16,000 11/1/2023
perform this work.
C19-W-04b Replace Windows at Fire Stations 1,2,3,4,and 6 Windows Standard Bid $ 153,000 TBD
Design on hold until future plan for the fire stations is
determined.
C19-M-06 Replace HVAC at Civic Auditorium HVAC Standard Bid $ 3,500,000 TBD flesign on hold until City can determine if budget will'be
available. ��
besign on hold until Ciry can deterrnine if ktudget will'be
C19-5-04 Instal)Solar and Replace Roof at Civic Auditorium Solar Standard Bid $ 1,600,000 TBD auailable.
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C19-L-Ol LED lighting Retrofit at three Non Profit Buildings at Diestelhorst Landing. Lighting On-Call Contract 6/9/2020 7/21/2020 B&C Yes $ 48,000 $ 13,000 $ 13,000 7/9/2020 7/31/2020 Construction completed.
C19-L-02 LED Lighting Retrofit at Library Lighting Standard Bid 11/19/2020 12/15/2020 Clear Blue Energy Corp. No $ 194,263 $ 53,633 $ - 3/1/2021 2/22/2021 Construction completed.
C19-L-03 LED Lighting Retrofit at Corp Yard Lighting Standard Bid 12/15/2020 1/19/2021 Fluoresco Services,LLC No $ 391,117 $ 137,294 $ - 6/22/2021 8/6/2021 Construction completed.
C19-L-04 LED Lighting Retrofit at City Hall and Police Station Lighting Standard Bid 8/2/2021 8/17/2021 Fluoresco Services,LLC No $ 519,000 $ 189,367 $ - 10/1/2022 9/20/2022 Construction completed.
LED lighting Retrofit at Various Locations(Aquatic Center,Caldwell Park,Fire
Advanced Lighting Services,
C19-L-OS Stations,MLKlr Center,Enterprise Park,Old City Hall,Senior Citizens Hall,and Lighting Standard Bid 6/2/2022 6/21/2022 No $ 386,077 $ 145,255 $ - 1/31/2023 2/1/2023 Construction completed.
California Soccer Park) Inc.
Sourcewell purchase order for stadium lighting(Equipment Only)at Alta Mesa Purchase Order
C19-PO-01 Stadium Lighting 7/16/2020 7/21/2020 Musco No $ 1,227,941 $ 1,227,941 $ - 12/31/2022 2/8/2023 Purchase order with Musco for equipment.Projects complete.
Park,Softball Park,South City Park,Buckeye Park,and Caldwell Park (Equipment Only)
Installation of City purchased stadium lighting equipment at Alta Mesa Park, Standard Bid
C19-LS-01 Stadium Lighting 3/31/2021 4/20/2021 Builders Solutions,Inc. Yes $ 465,014 $ 750,691 $ 750,691 12/31/2022 2/8/2023 Construction completed.
Softball park,South City Park Kiwanis 1,and Tiger Field (Installation Only)
Installation of City purchased stadium lighting equipment at Buckeye Park and Standard Bid
C19-LS-02 Stadium Lighting 2/17/2021 3/16/2021 Builders Solutions,Inc. Yes $ 341,500 $ 319,647 $ 319,647 4/25/2022 5/10/2022 Construction completed.
Caldwell Park (Installation Only)
C19-P-01 Replace Water Heaters in Fire Stations 2,3,4,and 6 Plumbing On-Call Contract 6/30/2020 7/21/2020 American leak Detection Yes $ 49,000 $ 13,050 $ 13,050 9/16/2020 10/2/2020 Construction completed.
C19-P-02 Replace Laundry Facilities in Fire Stations 2,3,5,7,and 8 Plumbing On-Call Contract 6/25/2020 7/21/2020 American Leak Detection Yes $ 17,000 $ 12,759 $ 12,759 9/16/2020 10/2/2020 Construction completed.
C19-M-01 Replace HVAC Units in Fire Stations 1,2,4,6 HVAC On-Call Contract 6/9/2020 7/21/2020 ACCO Yes $ 92,109 $ 95,278 $ 95,278 12/1/2020 11/30/2020 Construction completed.
C19-M-02 Replace HVAC Units in Old City Hall HVAC On-Call Contract 6/15/2020 7/21/2020 ACCO Yes $ 135,755 $ 97,985 $ 97,985 1/20/2021 1/13/2021 Construction completed.
C19-S-01 Solar PV at Fire Stations 7&8 Solar Standard Bid 9/29/2021 10/19/2021 B&B Solar Inc. Yes $ 100,529 $ 98,900 $ 105,900 8/1/2023 8/30/2023 Construction completed.
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Sub Total: $11,527,456 $ 3,658,399 $ 1,834,523
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G19-DG01 Project Management,Design and Construction Services Engineering Consultant PSA 6/9/2020 7/21/2020 Jacobs Engineering Yes $ 1,240,816 On-going design and construction management services
Project Budget$9 M.Projects will be prioritized and delivered to
Total $12,768,272 $ 3,658,399 $ 1,834,523 fit within approved budget
�
� � ��" CITY OF REDDING
� � `y REPORT TO THE CITY COUNCIL
MEETING DATE: May 5, 2020 FROM: Barry Tippin, City Manager
ITEM NO. 9.1(b)
***APPROVED BY***
btippin@cityofredding.org
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btippin@cityofredding.org
SUBJECT: 91(b)--Consider authorizing the City Manager to award energy savings contracts,
purchase orders, and agreements related to the Green House Gas (GHG) funding approved by
the City Council as part of the Local Economic Stimulus.
Recommendation
Authorize the City Manager to award any public works contract, purchase order, or agreements,
of any value, associated with the $9.5 million GHG funding approved as part of the Local
Economic Stimul�us Package.
Fiscal Impact
The City Council has previously approved the allocation of $9.5 million in Cap and Trade
auction proceeds to be used for projects that reap an energy savings benefit to the City of
Redding. There is no further fiscal impact to granting authority to the City Manager to execute
the agreements, purchase orders, and contracts associated with these projects. There may,
however, be an added benefit of seeing the money infused more rapidly into the local economy.
AlteNnative Action
The City Council could choose to not authorize the City Manager to execute the agreements,
purchase orders, or contracts associated with the Cap and Trade distribution funds to expedite
delivery of the work. This would lengthen the process to use the authorized funding.
Background/Analysis
On Tuesday, April 21, 2020, the City Council unanimously approved the Economic Response
Plan. Included in the plan is the allocation of$9.5 million in Cap and Trade auction proceeds to
be used for projects associated with the Local Economic Stimulus Package that eguate to a
savings in energy costs for the City of Redding. By authorizing the City 1Vlanager to negotiate,
execute, and direct the agreements, purchase orders and contracts, staff can proceed with rapidly
assigning the work and awarding bids. The benefit to this is being able to see the Cap and Trade
action proceeds go to work as soon as possible in the community, and thereby providing the local
Report to Redding City Council Apri128, 2020
Re: 9.1(b)--Authorize City Manager to award energy savings contracts Page 2
economy a direct opportunity to see a quick positive impact to jobs and business activity. The
projects within the package may include, , LED light replacement in City facilities, reroofing and
some solar installation at Fire Stations, replacing largely older and heavy energy using
equipment with newer more efficient equipment, and additional energy saving projects to be
determined
Council Priority/City Manager Goals
• Budget and Financial Management — "Achieve balanced and stable 10-year Financial
Plans for all funds."
• Public Safety — "Work to improve all aspects of public safety to help people feel secure
and safe where they live, work, and play in the City of Redding."
• Communication and Transparency — "Improve the quality of communication with the
public and City employees to enhance knowledge and increase transparency to improve
public trust."
• Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
• Economic Development — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community."
�
� � ��" CITY OF REDDING
� � `y REPORT TO THE CITY COUNCIL
MEETING DATE: Apri121, 2020 FROM: Barry Tippin, City Manager
ITEM NO. 9.1(b}
***APPROVED BY***
btippin@cityofredding.org
r}f ip�in,Ci� a�r����� �� 4J15r'2C12t�
btippin@cityofredding.org
SUBJECT: 91(b)--Consider Economic Response Plan related to the Covid-19 pandemic's
impact on the City and provide direction regarding mitigation measures.
Recommendation
Accept the City of Redding Economic Response Plan and provide direction to staff as follows:
(1) Approve deferral of Transient Occupancy Tax (TOT)hotels and motels.
(2) Approve modification of existing Community Assistance for Redding Electric Services
(CARES) guidelines.
(3) Approve modification of amortization policy for City of Redding utility bills.
(4) Approve the refund of all City of Redding utility deposits.
(5) Rescind approval of allocation of Cap and Trade funds for the Wildfire Mitigation and
Building Electrification programs; approve Cap and Trade auction proceeds to be
distributed to electric customers; and adopt Resolution approving and adopting the 32nd
Amendment to City of Redding Budget Resolution No. 2019-050 to appropriate a total of
$9 million in Greenhouse Gas allotment for utility rebates.
(6) Approve adoption of a utility grant program for sma11 businesses utilizing $600,000 of
Community Development Block Grant (CDBG) funding.
(7) Economic Stimulus Package
a. Approve additional use of $5 million of Greenhouse Gas allotment and adopt
Resolution approving and adopting the 33rd Amendment to City of Redding
Budget Resolution No. 2019-050 allocating money for projects designated as
providing energy savings for the general fund.
b. Provide direction on projects involving utilities funding and borrowing.
Fiscal Impact
The amount of impact of this proposal depends on the City Council's (Council) direction for
staf£ The programs implemented thus far are expected to impact the General Fund due to
approximately $500,000 in missed revenue projections. Programs such as modifying the
Amortization Program guidelines and deferring Transient Occupancy Tax will reduee reserves in
the short term by providing cash flow relief to businesses. Using restricted revenue funds to
modify existing CARES program guidelines, and also refunding City of Redding utility deposits
Report to Redding City Council Apri116, 2020
Re: 9.1(b)--Economic Response Plan Page 2
and creating a utility grant program for sma11 business will not impact unrestricted reserves. If
the additional utility credit is approved, $9 million in Cap and Trade auction proceeds would
need to be allocated, some of which would be reallocated from previously funded projects, to
bring the total allocation to $ll million for utility rebates. To complete projects listed in the
Local Economic Stimulus Package, $5 million in Cap and Trade auction proceeds would need to
be allocated in addition to the $4 million already allocated. The Council could also, through
approval of this report, provide direction and identify an ainount of money to reserve to pay for
any potential borrowing for projects that would be approved through the Local Economic
Stimulus Package.
Alternative Action
The Council has multiple options with this report. If it chooses to not accept the report in its
entirety, a11 currently implemented programs would cease and no additional community
assistance programming would take place at this time. The Council could choose to accept the
report, and therefore a11 of the currently implemented projects as well, and provide direction to
staff regarding which new projects to move forward.
Background/Analysis
The Covid-19 global pandemic has been a health catastrophe causing significant disruption in
individual, community and societal norms while devastating the economy. The City of Redding,
as the local governmental entity, needs to take bold action in line with the State and Federal
Government to not only protect the health and welfare of the individual but also of the economy.
The City of Redding City Council will be presented with a number of proposed initiatives and
projects to help individuals and businesses through this difficult time. The attached City of
Redding Economic Response Plan is a report detailing programming currently implemented, as
well as programming that could be implemented to assist the community. These items are varied
in cost and source of funding.
Currentl_ ���lementin�
• Maintain City services
� Suspend Return to Owner fees for impounded animals
� Suspend late fees and interest on payments due to the City of Redding
� Suspend City of Redding utility shut-offs due to non-payment
� Suspend City of Redding utility payment late fees
� Cap and Trade distribution of $50 to every Redding Electric Utility (REU) account
holder
Pendin�pproval
• Deferral of Transient Occupancy Tax payment from hotel and motel businesses
• Modify existing —Community Assistance for Redding Electric Services (CARES)
program guidelines to provide opportunity for additional financial assistance to
qualifying utility customers
• Modify Utilities Amortization program guidelines to extend the amortization period, and
extend the program to commercial customers
� Refund City of Redding utility deposits to residential and commercial customers
� Additional Cap and Trade distribution of$200 to every REU account holder
� Utility grant program for sma11 businesses
• Local Economic Stimulus Package containing multiple projects that will result in local
contract work opportunities and energy savings to the City of Redding
Report to Redding City Council Apri116, 2020
Re: 9.1(b)--Economic Response Plan Page 3
Council P�iority/City Manager Goals
• Budget and Financial Management — "Achieve balanced and stable 10-year Financial
Plans for all funds."
• Public Safety — "Work to improve all aspects of public safety to help people feel secure
and safe where they live, work, and play in the City of Redding."
• Communication and Transparency — "Improve the quality of communication with the
public and City employees to enhance knowledge and increase transparency to improve
public trust."
� Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
• Economic Development — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community."
Attachments
Resolution - GHG Customer Distribution
Resolution- Green House Gas Allotment
COR Economic Response Plan 2020
Resolution No. 2020 -
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE
32ND AMENDMENT TO CITY BUDGET RESOLUTION NO. 2019-050 RESCINDING
APPROVAL OF ALLOCATION OF CAP AND TRADE FUNDS FOR THE WILDFIRE
MITIGATION AND BUILDING ELECTRIFICATION PROGRAMS; APPROVE THE
APPROPRIATION O� �9,000,000 OF CAP AND TRADE AUCTION PROCEEDS TO BE
DISTRIBUTED TO RATEPAYERS FOR FISCAL YEAR 2019-20.
BE IT RESOL VED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2019-050 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION 1NCREASE DECREASE
142 854 GHG Customer Distribution $9,000,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
O� FUNDS OF FUNDS
Decrease in Be�inning Balance
142-851-01-0001-01 Beginning Balance $ 1,077,910
Decrease in Cap and Trade Revenues
142-851-01-4400-01 Environmental Attributes $ 2,022,090
Elimination of Building Electrification Project
142-854-8908-98 Building Electrification $ 4,000,000
Elimination of'VVildfire Mitigation Project
142-854-8908-99 Wildfire Mitigation $ 1,900,000
Increase in GHG Customer Distribution
142-854-8908-90 GHG Customer Distribution $ 9,000,000
Total $ 9,000,000 $ 9,000,000
THAT the purpose is to rescind approval of allocation of Cap and Trade funds for the Wildfire
Mitigation and Building Electrification programs; approve the appropriation of $9,000,000 of
Cap and Trade auction proceeds to be distributed to ratepayers for fiscal year 2019-20.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the
City Council of the City of Redding on the 21st day of Apri1, 2020 and was duly adopted at said
meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ADAM McELVAIN, Mayor
ATTEST: FORM APPROVAL:
PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
Resolution No. 2020 -
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE
33RD AMENDMENT TO CITY BUDGET RESOLUTION NO. 2019-050 APPROVE AND
APPROPRIATE ADDITIONAL USE OF $5,000,000 OF GREENHOUSE GAS
ALLOTMENT FOR PROJECTS DESIGNED AS PROVIDING ENERGY SAVINGS FOR
THE GENERAL FUND FOR FISCAL YEAR 2019-20.
BE IT RESOL VED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2019-050 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION 1NCREASE DECREASE
142 854 Ener�y Efficiency Measures $5,000,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Decrease in Beginning Balance
142-851-01-0001-01 Beginning Balance $ 5,000,000
Increase in Energy Efficiency Measures
142-854-8908-96 Energy Efficiency Measures $ 5,000,000
Total $ 5,000,000 $ 5,000,000
THAT the purpose is to approve and appropriate additional use of $5,000,000 of Greenhouse
Gas allotment allocating money for projects designed as providing energy savings for the
General Fund for fiscal year 2019-20.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the
City Council of the City of Redding on the 21St day of April, 2020 and was duly adopted at said
meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ADAM McELVAIN, Mayor
ATTEST: FORM APPROVAL:
PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
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City of Redding Economic Response Plan—April 2020
��bl� ��Cont��t�
ExecutiveSummary.......................................................................................................................................2
PlanElements................................................................................................................................................2
Elements currently implemented.............................................................................................................2
MaintainCity Services..........................................................................................................................2
Suspend Return to Owner fees............................................................................................................3
Suspend Late Fees and Interest on City Payments .............................................................................3
SuspendUtility Shut-Off......................................................................................................................4
SuspendUtility Late Fees.....................................................................................................................4
Distribution of$50 to REU Account Holders.......................................................................................4
Pending the City Council's approva) .........................................................................................................4
Deferral of Transient Occupancy Tax...................................................................................................5
Modify Existing CARES Program Guidelines........................................................................................5
Modify Utilities Amortization Program Guidelines.............................................................................5
Refund City of Redding Utilities Deposits............................................................................................6
Additional Cap and Trade Distribution................................................................................................6
Utility Grant Program for Small Businesses ........................................................................................6
Local Economic Stimulus Package........................................................................................................7
1
City of Redding Economic Response Plan—April 2020
E���tztiv� Su ��°�
The Covid-19 global pandemic is a health catastrophe causing significant disruption in
individual, community and societal norms. While the direct human suffering owed to the disease
itself is horrific, the damage to the economy due to necessary health precautions is equally
devastating. The City of Redding (City), as the local governmental entity, needs to take bold
action in line with the State and Federal Government to not only protect the health and welfare of
the individual but also that of the local economy. The City of Redding City Council (Council)
has directed that a plan be developed to assist the community in economic recovery to coincide
with the cessation of the pandelnic. This report provides detailed information on the various
programs that have been developed to help foster the economy through this economic disaster.
Some programs have already been implemented while others still need final approval from the
City Council. In brief, the programs are listed below.
Currentl im lement P1an Element Value
Suspend Ret�urn to Owner fees $200
Suspend late fees and interest on City of $60,000
Redding payments
Sus end Cit of Reddin utility sh�ut-offs Increased Cash F1ow
Suspend Cit of Reddin utility late fees $425,000
Distribution of$50 to REU account holders $2,200,000
Plan Element Pendin a roval
Deferral of Transient Occupancy Tax $250,000 Est. deferred
Modify existing CARES program guidelines $1,500,000
Modify existing Utilities amortization Increased Cash Flow
program guidelines
Refund City of Redding utility deposits $3,400,000
Additional Cap and Trade distribution $9,000,000
Utility grant program for small businesses $600,000
Local Economic Stimulus Package $20,000,000
Total Value of Cit Res onse Plan Est $37,500,000
l�I�r� E1�rr��r�t�
EI� ��ts ��zrr�ntly i��pt� �n��d
� tai i�y rvic��
City services provided to the community are critical in nature and are unable to cease in
functionality. A multitude of projects, already in the works, have to continue processing in spite
of the pandemic that has affected the nation. In order to keep projects moving forward, and to
2
City of Redding Economic Response Plan—April 2020
continue to serve the community in this critical capacity, City departments implemented
immediate changes to comply with State and Federal directives. Personnel able to work from
home were provided resources to do so. Meetings of large groups of staff and/or the public were
eliminated, and preparations were made to provide access to public meetings without further
endangering the community. As a result of the rapid response o�staff, City services continue to
function for the bulk of the community. In spite of the closure of City Hall and the diminished
personnel in the Avtech and Corp Yard buildings, and the Trans�er Station, critical City services
such as police, fire, electric, solid waste removal, water and wastewater maintenance, and parks
services still operate to the benefit of the community. Each position, whether working from home
or in the office, is a critical component of maintaining the support of these services. Department
directors monitor work product and load to ensure the City continues to function efficiently. The
City is providing increased availability of cleaning supplies and sanitizing materials to offices
and meeting spaces to maintain worker health.
To provide additional relief to residents and business owners, several programming decisions
were implemented. Taking into consideration the varied economic status of Redding residents
and businesses, the following steps were taken to provide some help financially.
Sax�p�r�d R�turn to Ow��r���e�
Effective March 23, 2020, Haven Humane Society suspended the charging of return to owner
fees for animals impounded for running at large. A small portion of the fee is typically returned
to the City to recoup costs of providing animal regulation services for the community. The total
cost is expected to be less than $200 for the City. This allows Haven to reduce the number of
animals left in the shelter while it is being operated at minimum capacity, and it is a benefit for
community members who are unable to make the payment at this time.
S��p�nd La�e ��e� and In��r�st on Ci�g�1'a��ents
The City has initiated the suspension of late fees and penalties for payments and all General
Accounts Receivable for items like hangar rents and imposed fines. This is made possible
through individual review of accounts as payments are submitted and the reporting is
analyzed. Both systems are housed in the legacy system so adjustments are applied manually to
individual accounts. The $35 returned check and returned ACH payment fees have been
suspended as well. Returned check and ACH fees are charged on an individual basis, and
returned items are reported from the City's banking system daily. When applicable, the returned
item amount with the additional fee are typically charged back to established accounts. The fee
will be eliminated from these charge backs.
The current plan is to suspend penalties and interest for receivables due in March and April
2020, which would include payments due in April and May. Based on last year's activities, it is
estimated that the loss of revenue to the general fund from the suspensions wi11 be $55,000. The
suspension of the returned check and ACH fees is estimated to be $5,000 for the same time
period. T�f extended an additional month through the end of the fiscal year (June 30, 2020), the
savings to the community equates to an estimated $60,000 which wi11 result in an equal amount
of lost revenue for the City.
3
City of Redding Economic Response Plan—April 2020
� � tiTity t� f
Effective March 18, 2020, the City of Redding Utilities Customer Service suspended the practice
of utility shut-offs due to non-payment. Each month, under normal circumstances, approximately
220 utility accounts are disconnected after failure to pay for utility service received over the
previous 60 days. Typically, 75 percent of these customers pay their past due amount and have
their utilities reconnected within two weeks. With the Covid-19 pandemic and the anticipated
increase in the number of utility customers having difficulty keeping up with a11 of their monthly
expenses, it was decided that loss of utility service should not contribute to the stress and anxiety
already experienced. Once the pandemic has passed, the Customer Services division will work
with customers using various tools to bring the accounts into good standing. It is known that this
effort will result in a temporary increase in accounts receivable and decreased cash flow for all
utilities — resulting in an equal amount of temporary financial relief to residents of the City of
Redding. This measure may result in an increase in bad debt expense, however, additional
proposed measures, listed later in this report, could assist in reducing bad debt expense.
Furthermore, bad debt would be sent to a collection agency with a recovery rate of
approximately 30 percent.
Sr�s��nd�til�ty�Lat� F���
Like shut-offs, late fees for utility payments have been suspended. Late fees, historically, amount
to $1.7 million per year. While late fee collections are not always linear, it is a close
approximation that the suspension will save customers in excess of $425,000 due to the high
potential that there will be an increase in late payments. Late fees are an administrative penalty,
and therefore, are deposited in the General Fund. If it is assumed that there wi11 be no attempt to
collect the past-due late fees, the General Fund wi11 miss revenue projections in this category by
at least $425,000.
I�i�tributi�n�f�5�t� �EiJ Ac�oua��I�e��d�r�
The City Council approved the distribution of excess reserves to be credited to every Redding
Electric Utility customer in December 2019 in the amount of $50 per account. The funding
source for the distribution is the Greenhouse Gas Allowance Auction Proceeds (also referred to
as GHG or Cap and Trade), in an amount equal to about $2.2 million, and will be accomplished
via a bill credit.
P�ndir�,�th� Cit�r C��n�il"s appr°€�vai
The following programming ideas were developed to provide additional options to provide
financial relief to residents and businesses. These plan elements vary in how they target a diverse
set of community members. Reaching as much of the community as possible is crucial for
Redding to solidify its economic foundation. These proposals require the City Council's
approval to proceed. Some of the following items can be implemented immediately, while others
will need to be further developed and brought back to the Council for further direction.
4
City of Redding Economic Response Plan—April 2020
�ferr r �i� t cc �y x
Defer payinent o�TOT from hotel and motel business until August l, 2020 (payment due August
19, 2020). This deferral would be interest free and full payback would be made by November 1,
2020. The TOT deferral program could provide for much need cash flow for the Hotel and
Motel industry by allowing an estimated$250,000 to remain with the business for operating
expense. This program would be li�nited to Hotels/Motels with Business Licenses of 65-40-1 or
65-50-1.
M�d�fy�xisti�g�ARES Pr�gr�� ��id�i����
Community Assistance for Redding Electric Services (CARES) provides up to $300 of
emergency assistance for the electric portion of bills for City o�Redding utility customers. The
intent of the CARES program is to help customers who have suffered a temporary financial
hardship and to bring their account to a current status. Customers are eligible for CARES
assistance once every 12 months. This program is funded out of the Public Benefits charges
included in each ratepayers' bill. Staff recommends applying a $300 CARES credit to all
residential customers enrolled in the Residential Energy Discount Program (REU's low income
program). This would provide $1.2 million of immediate utility cost relief to our lowest-income
customers with an additional $600,000 of additional relief available to those who may apply d�ue
to becoming eligible due to impacts from covid-19. These funds would be replenished with the
new budget year beginning on July 1, 2020. Should the Council choose to do this, staff
recommends providing the Electric Utility Director authority to repeat this process, should the
Stay at Home order continue through the summer, and also suspend the once-per-year limitation
for applicants. This would have no impact on the Electric Utility's financial metrics as defined in
Council Policy 1414, as Public Benefit Programs are restricted.
�I�dify Utiliti�s Arn�r�iza�ie�n Prc��r�rn �uid�Iin��
The City of Redding Utilities Customer Service provides amortization for residential customer
bills that are past due. This allows customers to "catch-up" on their bill for up to 12 months by
amortizing the past-due balance. Staff recommends temporarily expanding this to commercial
customers and temporarily extending the amortization for a period of up to 24 months, which
would essentially provide a zero percent loan to customers that are past-due and having trouble
paying their bill. In addition, this would a11ow commercial customers who receive Small
Business Administration Loans to focus on other essential costs. This would have a temporary
impact on City of Redding Utilities, as cash would not be received for up to two years. The risk
to the utilities would be any eventual non-performance of these loans; non-performance would
mean not paying the fu11 amortization over the 24-month period. Therefore, staff recommends
establishing an "eligibility criteria" that the customer must have not been disconnected for non-
payment of utilities in the previous year to be automatically approved for the amortization.
Customers not eligible for automatic amortization may still request it and approval will be
granted on a case by case basis. Should the Council choose to do this, Staff recommends
providing the Electric Utility Director administrative authority to modify program elements as
necessary. As this could affect water, wastewater, and solid waste utilities, the Public Works
5
City of Redding Economic Response Plan—April 2020
Director would collaborate in these decisions. This plan element will potentially provide
millions of dollars in available cash flow for residents and businesses.
Ref�nd City�f�i�ddin�U��iiti�� ��p��its
Staff recolnmends returning all customer deposits held by Utilities Customer Services. This
would return approximately $3.4 million to customers, including approximately $600,000 to
commercial customers. The City holds utility deposits on customer accounts that present a higher
credit risk to the utilities. By returning deposits, the City is returning monies to customers most
in need. This would have no immediate impact on the Electric Utility's financial metrics as
defined in Council Policy 1414 as customer deposits are not included in unrestricted reserves for
the purpose of calculating days of cash on hand. The risk to the utilities would be future bad debt
accruals of non-payment of utilities by customers who have demonstrated difficulty paying bills.
However, this bad debt would be sent to a collection agency with a recovery rate of
approximately 30 percent. Should the Council choose to do this, Staff recommends providing the
Electric Utility Director authority to modify administrative processes for billing future utility
deposits as defined in City Council Policy 1404. The deposit requirement will be reinstated at an
unknown time in the future.
t�cldit��n�l ��p �nd°�'t�ad� I�istril��zt��r�
Staff recommends a $200 credit on Electric utility bills to all customers out of Cap and Trade
auction proceeds, which is similar to the $50 refund recently approved by CounciL This would
provide an additional $9 million in rebates to electric utility customers, bringing the total rebate
amount, including the Council's action on March 26, 2020, to approximately $11 million. To
fund this program, the Council would need to allocate the balance of current year Cap and Trade
revenues and cancel two Council-approved programs that have yet to launch: Wi1df"ire Mitigation
and Building Electrification. Wildfire Mitigation has yet to start due to the California Air
Resources Board not providing a quanti�cation methodology for reduced greenhouse gasses
achieved through fuels reduction, thus the Cap and Trade funds are not available for this
purpose. Building Electrification has yet to start due to staffmg limitations. This would have no
impact on the Electric Utility's fmancial metrics as defined in Council Policy 1414 as Cap and
Trade revenues are restricted.
[Jti��ty�r�nt I'rc��r�rn fc�r Sr�all ���in�s�e�
As an entitlement city for the U.S. Department of IIousing and Urban Development (HUD) the
City receives an annual allocation of Community Development Block Grant funding which is
used for public service and public improvements. Due to the Federal CARES act the City
received an additional allocation of $447,450. This funding, combined with unused funding
from past projects, for a total of$600,000 provides the City an opportunity to provide funding
toward eligible sma11 business utility payments for those in the most need or are unable to
receive Federal assistance or grants. If approved, staff will present the program and the amount
available as part of the required public hearing to approve the use of the funding.
6
City of Redding Economic Response Plan—April 2020
cal � i� ti I � � a
The Local Economic Stimulus Package is composed of inulti-departmental projects intended to
result in a combination of benefits to the City. In its infancy, this was a mass project designed to
create an energy savings with each completed project. The City, however, has multiple deferred
maintenance projects that must be completed to maintain the infrastructure stability of its assets.
Staff developed the following plan in a response to a need to merge the energy savings needs of
the City with its deferred maintenance needs and infuse much needed capital into the local
economy.
The projects in this package were specifically chosen as critical needs either in the realm o�
energy savings, which qualifies the project to be paid for through GHG auction proceeds, or for
its contribution to eliminating the deferred maintenance needs of the City. A combination of
GHG funding, utility reserves, municipal bond, and energy cost savings would be used to fund
the package with little or no net budgetary impact to the General Fund. The total value of the
economic stimulus package is estimated at approximately $20 million. Approximately $9.5
million of GHG money could be allocated for the completion of the projects that realize an
energy savings for the City. The energy savings over time for the General Fund could be used to
fund the deferred maintenance needs.
Several of the anticipated projects such as the work at various fire stations and lighting upgrades
would be started immediately and put out to bid as soon as possible. Other projects, such as the
replacement of the heating and air conditioning system at the Civic Auditorium will need to be
analyzed further. The intent is to move quickly to infuse available GHG funds and provide
economic benefit for the community.
The calculated energy savings from the energy savings projects could be used to secure bond
funding to accelerate up to another $10 million in local projects including improvements to the
Redding Aquatic Center, park facilities, required building maintenance, and other amenities.
Staff will ret�urn to the City Council with a full project list and borrowing options should the City
Council provide direction to do so.
Completion of projects totaling up to $20 million is quite a large endeavor. However, the plan
would be to bid multiple smaller projects to provide the best opportunity for local contractors to
participate in the process, and thereby providing the local economy a direct opportunity to see
guick and significant economic benefit in jobs and business activity. According to multipliers
provided by the Shasta County Economic Development Corporation, the City of Redding would
see a direct bene�it equal to 328 jobs and$30 million of economic impact.
7