HomeMy WebLinkAbout _ 4.5(a)--Award of Bid Schedule No. 5401 - 115kV Circuit Switcher Retrofit
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following relative to Bid Schedule No. 5401, 115kV Circuit Switcher Retrofit for
the Redding Electric Utility:
(1) Award Bid Group I (115kV circuit switchers and support structures) and exercise the
City’s purchase option for Bid Group II (Spare parts: seismic analysis item 1 and seismic
analysis item 2) to Southern States, LLC for an evaluated price of $563,429.38;
(2) Authorize an additional project amount of $141,000 (25 percent of the Contract amount)
for additional materials to complete the project and project contingency;
(3) Authorize the City Manager, or designee, to approve project construction change orders
up to and not to exceed the total project budget; and
(4) Adopt Resolution approving and adopting the 18th Amendment to City Budget
Resolution 2023-060 appropriating $204,500 for increased costs of materials and supplies
for the Substation Circuit Switchers capital project.
Fiscal Impact
The City Council approved $500,000 for replacing the aging Substation Circuit Sw itchers in
Redding Electric Utility’s (REU) Fiscal Year 2024-25 Biennial Budget. However, due to
increased costs of materials and supplies, staff estimates the updated total project cost to be
approximately $704,500 (including an additional $141,000 for project completion and project
contingency). REU has adequate reserves to fund the additional cost of $204,500 for this capital
project.
Alternative Action
The City Council could choose not to award the bid to Southern States, LLC, and provide
alternative direction to staff.
MEETING DATE: November 7, 2023
ITEM NO. 4.5(a)
FROM:
***APPROVED BY***
nzettel@cityofredding.org
btippin@cityofredding.org
SUBJECT: 4.5(a)--Award of Bid Schedule No. 5401 - 115kV Circuit Switcher Retrofit
Nick Zettel, Director of
Redding Electric Utility
Report to Redding City Council November 1, 2023
Re: 4.5(a)--Award of Bid Schedule No. 5401 - 115kV Circuit Switcher Retrofit Page 2
Background/Analysis
REU’s system has five “line-backer” style circuit switchers that have been in service for over 30
years. This style circuit switcher is outdated and no longer manufactured. Spare parts are
increasingly difficult to find, introducing the risk of being unable to repair failures. Failure of a
circuit switcher would significantly affect system reliability, and the current lead time on this
equipment is 56 weeks.
Staff separated Bid Schedule No. 5401 into two separate groups: (1) Bid Group I - 115kV circuit
switchers and support structures, and (2) Bid Group II – Spare parts. On September 14, 2023,
staff opened one bid proposal. Based on bid proposals and experience with the company, staff
recommends awarding Bid Group I and exercising the City’s purchase option of Bid Group II’s
seismic analysis item 1 and item 2 to Southern States, LLC. Due to the custom foundations of the
circuit switchers ordered, seismic analysis and design are necessary to ensure the equipment
complies with the Institute of Electrical and Electronics Engineers standards.
The original bid request included the Moore Road substation in the scope, but after additional
field review, REU staff discovered there was no need to replace the equipment due to it being a
newer model with available market support.
Environmental Review
On June 20, 2023, the City Council determined the REU Substation Facility Maintenance Project
is categorically exempt from review under the California Environmental Quality Act Guidelines,
pursuant to Section 15301 - Existing Facilities. No further action is required.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
^Resolution
Southern States Bid Proposal-Schedule No. 5401
Previous Staff Report 6-20-2023
Resolution No. 2023 - ____________
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE
18TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060
APPROPRIATING $204,500 FOR THE REDDING ELECTRIC UTILITY SUBSTATION
CIRCUIT SWITCHER RETROFIT PROJECT FOR FISCAL YEAR 2023-2024.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2023-060 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
211
8091 REU - Capital
$204,500
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Decrease (Increase) Fund Balance
211-8091-2910000-00000 Fund Balance 204,500$
Increase Expenditures
211-8091-7500002-00000 Equipment - Equipment 204,500$
Total 204,500$ 204,500$
THAT the purpose is to appropriate $204,500 for the Redding Electric Utility substation circuit
switcher retrofit project for fiscal year 2023-2024.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the
City Council of the City of Redding on the ______day of __________, 2023 and was duly
adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVAL:
SHARLENE TIPTON, City Clerk BARRY E. DeWALT, City Attorney
Bid Proposal
- 1 -
BID
FOR FURNISHING
FIVE (5) 115KV CIRCUIT SWITCHERS WITH
CUSTOM SUPPORT STRUCTURES TO FIT EXISTING FOUNDATION
(Schedule Number 5401)
To: City of Redding
Michelle Kempley, Purchasing Officer
Date
The undersigned agrees to furnish for the City of Redding, California,
(Corporate Name of Bidder)
at the prices quoted below, in accordance with the Circuit Switcher Retrofit Information Statement (CSRIS),
the Specifications, and General Conditions on file in the office of the Purchasing Division of the City of
Redding, copies of which are attached hereto and are hereby made a part of this proposal:
BID GROUP I
Item Qty Description Unit Price Price
1 5 115kV circuit switcher and support structure to match
existing foundation anchor patterns per attached
Specifications.
$ $
2 1 115kV circuit switcher and support structure to match
existing foundation anchor patterns with an integrated
disconnect switch per attached Specifications.
$ $
Sales Tax for items 1 & 2 @ 7.25% $
3 3 Service Engineer to instruct REU personnel in the field
assembly and gassing of the first installed unit. Price
shall include Field Service Engineer to be onsite for up
to three days inclusive of travel and per diems. See
Technical Specifications section 2.7.
$ ______ $
Total Cost of Bid Group I $
10-12-23
Southern States, LLC
95,750.00 478,750.00
34,709.38
13,970.00 13,970.00
527,429.38
Alternate #2 10-12-2023
N/A N/A
Bid Proposal
- 2 -
BID GROUP II - Spare Parts
Item
4
Qty
1
Description
Single pole SF6 interrupter unit
Price
$
5 1 Motor $
6 1 lot Contactor and auxiliary relay of each type furnished $
7 1 Trip coil $
8 1 Anti-pump relay $
9 1 Time delay relay $
10 - recommended spare parts
Seismic Analysis Item 1
$
$
Subtotal Bid Group II (Items 4 - 10)
Sales Tax @ 7.25%
Net Cost Delivered Bid Group II
$
$
$
TOTAL NET COST DELIVERED BID GROUPS I & II $
All prices quoted herein are firm, and are not subject to change. An hourly rate for Field Service Engineer is
unacceptable. The City reserves the right to reject any or all bids and to waive minor irregularities.
For items one and two, the total will equal the unit price times the quantity listed on the bid form. The total bid
group price will be the total of each item comprising the bid group. Bid Group II Spare Parts items are
optional and will not be used to determine evaluated totals for award.
The Bidder hereby acknowledges that he has received Addenda Nos. , , to these
Specifications. (Bidder insert No. of each Addendum received.) Failure to acknowledge receipt of addenda, if any
were issued, may cause bid to be considered non-responsive. Bidder may check the to confirm the
addenda, if any, which have been sent. www.CityofRedding.org/PurchasingBids
It is understood that this bid shall remain open and shall not be withdrawn for a period of ninety (90) calendar days
from the date prescribed for the opening of this bid.
It is further agreed that the materials to be furnished under this proposal will be delivered per the delivery schedule
outlined in the bid documents. f.o.b. Redding Power Substation, 17120 Clear Creek Road Redding, CA 96001.
Supplier shall bear all freight charges from plant to destinations, including U. S. Customs, if applicable.
N/A
P/N: 08240386 7,865.00
P/N: 01470095 667.00
P/N: 01491048 140.00
1,245.00/lot
P/N: 01491133 440.00
P/N: 01491066 280.00
48,387.00
771.18
49,158.18
576,587.56
Freight - Bid Group II Items - No Sales Taxes 1,750.00
18,000.00
Seismic Analysis Item 2 18,000.00
Bid Proposal
- 3 -
Respectfully submitted,
Mailing Address Corporate Name of Manufacturer
City, State, Zip Signature
/
Telephone/Fax Print Name and Title
______________________________
Email Address
Jason Cunningham
Southern States, LLC30 Georgia Ave.
Hampton, GA 30228
678-773-9036
j.cunningham@southernstatesllc.com
CSRIS
-1-
CIRCUIT SWITCHER RETROFIT INFORMATION STATEMENT (CSRIS)
Important: The following information and data sheets must be submitted with the circuit switcher bid.
Failure to include this information may result in the bid being considered non-responsive.
The Proposal for the equipment and/or material specified in the attached Specification shall contain the
following specific information as a minimum and shall be supplied in the following manner. All proposal
drawings and information furnished shall be in English. Dimensions shall be in U. S. Standard Measure.
If desired, or where additional space is required by the Bidder, references may be given on the CSRIS indicating
specifically where in the Proposal, the required information may be found.
A. GENERAL
1. Any and all exceptions to this Specifications and General Conditions must be listed individually
and accompany the proposal. If there are no exceptions the words "No Exceptions" must
be written below.
2. Attach information, including pricing, on any alternate construction or revision(s) being
proposed by the Manufacturer, if any.
3. Number of years of experience making circuit switchers similar to the one required in this
Specification.
4. Attach information describing the availability of spare parts, service, and engineering support
within the United States. Assurance of long-term commitment to product support must be
provided. Specify how quickly spare parts and field support can be provided under
emergencies. Spare parts must be available within 24 hours.
5. Description and location of service shop and personnel under direct ownership and control of
the Manufacturer which is the closest to the City of Redding and which will be available for
service work on the equipment if requested by the Owner. The description shall also state the
length of time this service shop has been in operation.
6. Location where the circuit switcher will be assembled and factory tested.
7. Attach proof that the Manufacturer has furnished at least ten circuit switchers of similar design
to that in this specification which have been in successful operation within the United States
for at least two years.
See document: "SFO72930 R4 - REU -Bid 5401 - CSV 123kV-40kA-2000A 10-2-23"
20 years
Hampton, GA (USA)
Hampton, GA (USA)
CSRIS
-2-
B. TECHNICAL DATA - Submit all of the following with your bid:
1. Attach a complete description of general design, including dimensions and weights, rating data,
drawings, catalog information of equipment and/or material being proposed, description of
interrupter construction and materials, description of operating mechanism.
2. Attach a separate outline drawing for each location as described in Technical Specification
Section 2.4 showing detail that proposed circuit switcher will correctly align with existing
foundation piers and anchor studs. Each outline drawing shall be labeled according to
destination as detailed in Section 2.4 of the Technical Specifications.
3. Attach reference data of operating and inrush currents for the motor operator, trip coil, and
heaters.
4. Attach a description of any special tools or equipment that are necessary for the installation
or maintenance of the circuit switcher. One set of special tools or equipment shall be
provided and shall be included in the lump sum price.
5. List recommended but not required special tools and prices (to be purchased at the City's
option). Also, describe the interchangeability of spare parts listed under Bid Group III with
previous circuit switcher models supplied to the City of Redding.
6. Attach a verification statement of circuit switcher and support structure withstand capability
seismic ratings in accordance with IEEE 693 high.
C. WARRANTY INFORMATION
1. Description of warranty on the circuit switcher, spare parts, and accessories.
D. TESTS
1. List specific factory tests to be performed on the equipment.
Previously supplied job order 605477 / dwg 83050168 / PO 109220
Special Tools: N/A
See attached warranty terms.
IEEE Standard C37.016 testing will be conducted.
Southern States Standard CSV Warranty of 66 months after shipment or 60
months from installation applies
Contents of the Contract Documents
-1-
2. List specific tests recommended by the Manufacturer to be made in the field at the time of
energization.
E. SHIPPING
1. Describe the proposed manner of shipment (type of truck, packaging, and unloading
method).
2. State whether the circuit switcher pole assemblies will be shipped assembled or partially
assembled. Describe extent of field assembly required.
N/A
Flat bed truck
Interrupters and support structures will need to be installed on the base frame.
Southern States agrees to ship Qty 2 CSVs by quoted Lead Time. We will then ship
Qty 2 CSVs every two/three weeks following the first shipment thereafter until order is fulfilled.
30 Georgia Avenue • Hampton, GA 30228
Phone 770-946-4562 • Fax 770-946-8106
www.southernstatesllc.com
Date: 10/16/2023
Attn: Clinton Torrence
City of Redding Electric Utility
Proposal Number: SFO72930-R5
Project Name: Bid 5401 - CSV 123kV-40kA-2000A Proposal
Southern States is pleased to provide the following proposal per your request.
• Drawings can be submitted approximately 8-10 weeks after receipt of order.
• Estimated shipment is 56-58 weeks after receipt of order.
• Prices are FOB Hampton, GA Freight Prepaid and Added to Invoice .
• Our proposal is valid till 11/10/2023.
• Payment terms are Net 30 Days after receipt of invoice.
• The proposed equipment is covered by Southern States Limited Warranty.
• The equipment listed in this proposal is subject to the Southern States standard
terms and conditions, https://www.southernstatesllc.com/ssllc-terms-and-
conditions-of-sale.
Note: Pricing does not include applicable sales tax unless specifically itemized in the
proposal. If a current tax exemption certificate has not been provided, the applicable
sales tax will be added to the invoice.
Your consideration of Southern States equipment is much appreciated. We trust you will
find our bid favorable and look forward to working with you on this requirement.
Sincerely,
Darin Jensen
Area Sales Manager - PSD West
Office: (770) 946-4562 , Ext:10235
Mobile: (801) 499-3410
Email: d.jensen@southernstatesllc.com
Pricing Summary
Proposal Number: SFO72930-R5 Pricing Date: 10/6/2023
Project Name/RFQ #: Bid 5401 - CSV 123kV-
40kA-2000A Proposal
Expiration Date: 11/10/2023
Currency: US Dollars
Bid Item: 1.0 CSV Unit Price: $ 100,250.00 Qty: 4.0 Ext. Price: $ 401,000.00
Customer Item:
Ships with positive pressure of SF6
Porcelain Interrupters
125 VDC Control Voltage
-40 C to +50 C
50 kA 3 sec / 130 kA Peak Withstand Rating
Dual Trip Coil
123 kV Rated Maximum Voltage
Circuit Breakers
3 Cycle Interrupt Time
Local - Remote Selector Switch
Trip - Neutral - Close Switch
Manual Charging Handle
Manual Trip Close Levers
Door Actuated Cabinet Light
Mechanical Open-Close Position Indicator
Spring Charged-Discharged Indicator
Spring Charge Fail Alarm
Trip Circuit Monitoring Relay
Independent Trip Coil Circuit
Duplex Receptacle with GFCI
Position Indicating Lights
SF6 Gas (25 lb) and Fill Kit
Chase and Lubricated Galvanized Nuts (Structure)
CA Department of Industrial Relations Certificate
Column Spacing = 9' - 0" (CL/CL)
Separate Control Cabinet
Upper Terminal Height at 20ft
125 VDC Motor Voltage
550 kV BIL
120 VAC Thermostat Controlled Heater(s)
2000 A Continuous Current Rating
12 x 12 Anchor Bolt Layout
120 VAC Utility Voltage (1-Phase)
2 Column Structure
Customer Specified Low Voltage Protection
145 kV / 138 kV (Max Design / Nominal Voltage)
40 kA Primary Bus Fault Interrupting Rating
102" Phase Spacing
FOB Redding, CA - Freight Prepaid and Allowed
Independent Gas System
Third Party Seismic Analysis
Bid Item: 3.0 CSV Unit Price: $ 113,750.00 Qty: 1.0 Ext. Price: $ 113,750.00
Customer Item:
Ships with positive pressure of SF6
Porcelain Interrupters
125 VDC Control Voltage
-40 C to +50 C
50 kA 3 sec / 130 kA Peak Withstand Rating
Dual Trip Coil
123 kV Rated Maximum Voltage
Circuit Breakers
3 Cycle Interrupt Time
Local - Remote Selector Switch
Trip - Neutral - Close Switch
Manual Charging Handle
Manual Trip Close Levers
Door Actuated Cabinet Light
Mechanical Open-Close Position Indicator
Spring Charged-Discharged Indicator
Spring Charge Fail Alarm
Trip Circuit Monitoring Relay
Independent Trip Coil Circuit
Duplex Receptacle with GFCI
Position Indicating Lights
SF6 Gas (25 lb) and Fill Kit
Chase and Lubricated Galvanized Nuts (Structure)
CA Department of Industrial Relations Certificate
Column Spacing = 13' - 4" (CL/CL)
Separate Control Cabinet
Upper Terminal Height at 20ft
125 VDC Motor Voltage
550 kV BIL
120 VAC Thermostat Controlled Heater(s)
2000 A Continuous Current Rating
11 x 11 Anchor Bolt Layout
120 VAC Utility Voltage (1-Phase)
2 Column Structure
Customer Specified Low Voltage Protection
FOB Redding, CA - Freight Prepaid and Allowed
145 kV / 138 kV (Max Design / Nominal Voltage)
102" Phase Spacing
40 kA Primary Bus Fault Interrupting Rating
Independent Gas System
Third Party Seismic Analysis
Proposal Number: SFO72930-2-1 TOTAL: $ 514,750.00
Comments & Clarifications:
Section 1.10 - Southern States agrees to REU T&C's except LD's are not accepted.
Section 2.3.1 - Interrupters and support insulators will be porcelain.
Section 2.3.4.5 - Cabinet heaters are not forced air type.
Section 2.3.4.8 - Control cabinet height will vary based on column heights.
Section 2.4 - All phase spacing will be 102" (CL/CL).
Section 2.4.9.4 - Due to various column width and heights, in order for IEEE 693 seismic rating to apply, an
independent seismic study must be performed.
•Approval Drawings must be accepted by City of Redding prior to the seismic study being performed by
the independent 3rd party.
Section 2.4.12 - Indenting type marking will not be provided.
GI " Y F
CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: June 20,2023 FROM: Barry Tippin, City Manager
ITEM NO. 9.1(c)
APPROVED BY***
btippin@cityofredding.org
ry ippin,Ci an 6lIS"2023
btippin@cityofredding.org
SUBJECT: 9.1(c)--Consider Resol ution adopting and approving the City of Redding Biennial
Bud et 2023-25
Recommendation
Authorize the following actions:
1) Adopt Resolution approving and adopting the City of Redding Biennial Budget for
Fiscal Years ending June 30, 2024 and June 30, 2025.
2) Find that the general maintenance activities performed by various City departments on
City facilities/equipment over the course of iscal years 2023-2024 and 2024-2025 are
categorically exempt from review under the California Environmental Quality Act
Guidelines,per Section 15301 - Existing Facilities.
Fiscal Impact
The Biennial Budget 2023-2025 (Budget) is the expenditure plan for the City of Redding (City).
Approving the budget will provide the opportunity for City staff to perform the duties and pursue
the strategies as outlined in the document and as directed by the City Council (Council). The
proposed budget for the first year is $397,489,150 and$423,277,400 for the second year.
Alter native Action
The Council could choose to not approve the budget, adjust the budget, adjust the budget through
future Council action after approving the budget, and/or direct staff to bring back the budget for
re-consideration at a future special meeting
Background/Analysis
The City operates on a budget approved by the Council in J une of each odd numbered year. The
budget is developed over the span of several months. Each department establishes neeessary
staffing and funding required to achieve its core functions including that which would be
reguired to complete additional efforts as direeted by the CounciL This budget refleets the
information pr sented and discussed at three budget workshops conducted in February, April,
Report to Redding City Council June 20,2023
Re: 9.1(c)--Consider Resolution adopting and approving City of Redding Biennial BudgetPage 2
and May 2023. The workshops provided the Council with an opportunity to provide direction
relative to the budget development process. Within the budget document (and copied below) is
the City Manager Budget Message.
As Council reviews the attached proposed budget document it is important to note this document
will look dif erent than the fmal published document. The final published document will be
completed with the assistance of the Communications Team and be enhanced and optimized for
online viewing and usage.
City Mana er Bud et Messa e
Introduction
The City of Redding (City) Biennial budget for Fiscal Year 2023-24 and Fiscal Year 2024-25 is
focused on maintaining the gains the City has made over the past four years. Over the past four
years, the economy was better than expected and through fiscal discipline and a focus on priority
goals and objectives, the City made great strides in many areas, incl uding the following:
a) Increased Fire Department staffing to include three fire personnel on every fire apparatus
for the first time in City history, working towards a four-person per fire apparatus on
three separate engines, utilizing grant funding.
b) Increased Police staffing across the board with 122 budgeted sworn officers allowing for
the re-establishment of Beat No. 8, the creation of two Crisis Intervention Response
Teams (with two officers per team), adopting and staffing a Park Ranger program with
four Park Rangers, and the addition of a bike team. This provides far more resources to
police our city not only responding to calls for service but increasing the time available
for proactive policing.
c) Provided market-based salary and benefit packages to several employee groups and
continuing the progress in this area.
d) Investment in technology upgrades including a new Enterprise Resource Planning
platform with accessory mod ules, vetting, implementing and installing a new City-wide
phone system, new facility access control system, new radios for public-safety groups,
and a new computer aided dispatch system.
e) Invested in infrastructure ranging from painting City Ha11, to the Caldwell Park Skate
Park along with large investments in utility equipment replacement, upgrade and
modernization.
Review and updating of City policies and procedures such as the travel policy, alternative
work schedules, hybrid/remote work policy and the program review of the City's
workforce management system and methods.
g) Continuation of the downtown revitalization with the completion of the high-profile
Block 7 project and the implementation of the Downtown Parking System.
h) Completion of the updated Downtown Specific Plan, in-process of the General Plan
update, and launching the Redding Riverfront Speci c Plan update.
Maintaining these gains while developing this budget and grappling with a slowing economy
required grit, creativity, and a willingness to push against some norms associated with typical
budget development. City Council insight was necessary to develop the budget and was
provided at three workshops with the City Council providing solid direction on various topics
resulting in the proposed budget. With this guidance the proposed budget maintains all
advancements the City has achieved and provides some additional areas of growth. The path
Report to Redding City Council June 20,2023
Re: 9.1(c)--Consider Resolution adopting and approving City of Redding Biennial BudgetPage 3
forward is treacherous and will require continual vigilance and perhaps swift action to maintain
the solid financial footing that has always been the City's strength.
Revenue
The City of Redding sales tax revenue for Fiscal Year 2022 — 2023 is estimated to be below
projections by over $2 million with total General Fund tax revenues estimated to be below
projections by $1.7 million. This budget "loss" combined with the corresponding impact to the
City's 10-year plan has been the largest obstacle in the creation of this budget. To put this in
perspective, a $1.7 million loss is equivalent to eight lnid-level police officer positions. The $2
million loss in sales tax represents a reduction of approximately 6 percent in that single funding
source. Future revenue has also proven very difficult to project given the uncertain economy
with high inflation, low unemployment and increasing interest rates. Many economists are
predicting a recession while others disagree with this thought. Based on the uncertainty, staff
recommended that the City Council approve modest increases in the major General Fund tax
categories. These revenue forecasts are as follows: Sales tax slightly above a 2.5 percent
increase in FY 2024 and slightly above 2.5 percent in FY 2025; Property tax with a slight
increase above 3 percent in FY 2024 and above 3 percent in FY 2025; Transient Occupancy tax
above 4 percent in FY 2024 and above 4 percent in FY 2025; Cannabis tax and other taxes with
an increase of just over 4 percent in FY 2024 and above 4 percent in FY 2025.
ARPA Funding
The City of Redding was provided $18.6 million in funds from the American Rescue Plan Act
ARPA) to be utilized in the flexible manner as established in the United States Treasury Fina1
Rule. The City Council provided initial direction in fund spending in February 2022,prior to the
downturn in the economy. With the downturn and the noted loss of General Fund Revenues the
City Council has redirected a portion of this funding to assist in maintaining the newly
established public services that have been put into place. More particularly, this funding will be
used to pay for officers assigned to Beat No. 8 and the Park Rangers through the Fiscal Year
2026-2027 and will be used to augment the Police and Fire Departments rolling stock budgets by
1 million each. Additionally, $750,000 wi11 be used to maintain/replace General Fund facilities.
While it is not normally prudent to cover personnel expenses by "one-time funding" it is
recommended to do so in order to maintain services while providing an opportunity to observe
the health of the economy utilizing this additional rime to make other adjustments in the budget
and 10-year plan to maintain the minimum 10 percent reserve.
Regulatory Pressure and Modern Requirements
The regulatory nature of California is in full swing and the development of this budget takes this
into account. Ranging from transportation electrification to wildfire protection to organic
diversion, the pace is fast and furious. Equally challenging is the threat created by cyber attacks
and technology obsolescence. The proposed budget accounts for these, both in the short term
and long term.
Cyber security threats continue to grow and the cost of defending against them grows as well.
The Information Technology Department (IT) takes the lead in combating this threat. Over the
past f w years, signi cant progress has been made by changes to process, staff augmentation and
technology investment, adding a Cyber Security Officer, increased security for passwords, and
deploying a dual authentication program. This budget continues this trend in an effort to balance
Report to Redding City Council June 20,2023
Re: 9.1(c)--Consider Resolution adopting and approving City of Redding Biennial BudgetPage 4
fiscal prudence and continue to reduce risk. Similar improvements wi11 take place in the next
two years as well as increased physical security in the form of security cameras and facility
access control. Consequently, the IT budget has expanded to account for these necessary actions
yet even with this increase, we still remain short of truly ineeting the need, due to funding
constraints.
Public works is another department significantly impacted during this budget cycle, from a
regulatory perspective, with all utilities having pressure to comply. Iowever, the Solid Waste
and Storm Drain Divisions are the hardest hit and the respective Division budget requests reflect
this. The Storm Drain Utility is facing ever increasing restrictions on pollutants entering the
water way creating a need for large investment in infrastructure and personnel. The Solid Waste
Division is impacted by the recently required Organics Diversion Program as we11 as City
growth. Both of these issues are more fully explained in the Public Works overview.
Lastly, while the substantive requirements of the mandates of electrifying the City's fleet will not
occur during this budget cycle, continuing to prepare and plan for this eventuality is prudent.
Staff continues to support statewide efforts to put some common sense into this discussion and
has initiated a fleet development study along with the continued enhancement of the electric grid
to handle the future load created by the conversion from fossil fuels to "clean"power.
Unfunded Needs and Other Challenges
As with previous budgets, the City of Redding struggles to obtain the funding necessary to
maintain its infrastructure. With the City being more than 60 square miles, and a low population
density, the traditional funding schemes employed in California generally fall short of providing
adequate funding. The City relies heavily on grant revenue to construct improvements such as
bike lanes, housing, and parks, but these expenses generally fall to General Fund tax revenues to
maintain this infrastructure. The same General Fund tax revenues also must provide for general
government services such as Public Safety. This, coupled with recent inflationary pressures,
inventory shortages, insurance increases and the cost of employee benefits, makes balancing this
budget a challenge.
Pension
The cost of employee pensions continues to impact the available resources to provide City
services. These pension costs come in two forms; one is the annual cost and the other is the
unfunded liability expense. While the former has increased due to a change in assumptions by
the California Public Employees' Retirement System (Ca1PERS) the latter is a key cause of
budget difficulties. Due to changes in 2017 by CaIPERS, the unfunded liability cost skyrocketed.
The unfunded pension liability cost to the General Fund in this budget is $13.6 and $14.6 million
in FY 2024 and FY 2025 respectively. The Budget Summary section contains much more detail
related to the pension costs for the City
Workforce
There has been good success in stabilizing and growing the City's workforce over the past two
years but it remains imperative that the City continues to focus on recruiting, retaining, training
and supporting employees. With the completion of the personnel process report, the
implementation of the new Enterprise Resource Planning program and human capital
Report to Redding City Council June 20,2023
Re: 9.1(c)--Consider Resolution adopting and approving City of Redding Biennial BudgetPage 5
management software, there wi11 be ample opportunities to modernize the tools and protocols
which should enhance employee satisfaction.
The City's workforce is aging with a high percentage of staff at, or nearing, retirement age,
particularly at the Director level. Therefore, focus on succession planning will remain a high
priority. Additional funding has been added to departments for training and efforts are being
focused on preparing staff for future opportunities. Some of these opportunities will be driven by
the ever-increasing regulatory environment in which we work. New regulation usually requires
new expenses often in the form of staffing. By focusing on training and succession planning, the
City will be better able to continue to offer quality services to the City's residents.
EnviNonmental Review
Staff has reviewed the budget and the associated general maintenance activities of various
departments and determined that the general maintenance activities are Categorically Exempt
from review under the California Environmental Quality Act Guidelines, per Section 15301 -
Existing Facilities. Class 1 exemptions include the operation, repair, maintenance, or minor
alteration of existing public structures, facilities and equipment. City facilities/equipment will
undergo general maintenance activities throughout the course of the 2023/24 and 2024/25 fiscal
years; however, the maintenance activities will result in negligible or no expansion of use. The
proposed activities and action areas have been reviewed for sensitive resources and will not have
a significant effect on biological or cult ural resources such as threatened or endangered species
or their habitats, sensitive vegetation communities, tribal lands, or tribal cultural resources. The
maintenance activities have no potential to have a signi cant effect on the environment.
Council Pr 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 eommunity."
Attachments
Proposed Reso - WIP 6-12-23
Proposed Biennial Budget FY 23-24 & 24-25
CEQA Exemption Budget 23-25