Jeff Slowey, Mayor Steve Miller, Vice Mayor Jeannie Bruins ...

Printed on Recycled Paper

Jeff Slowey, Mayor

Steve Miller, Vice Mayor

Jeannie Bruins, Council Member

Bret Daniels, Council Member

Porsche Middleton, Council Member

CITY OF CITRUS HEIGHTS

CITY COUNCIL

Special/Regular Meeting of Thursday, January 23, 2020

City Hall Council Chambers

6360 Fountain Square Dr., Citrus Heights, CA

Special Meeting 6:15 p.m.

Regular Meeting 7:00 p.m.

PLEASE NOTE: The Council may take up any agenda item at any time, regardless of the order

listed. Action may be taken on any item on the agenda. The City Council has established a

procedure for addressing the Council. Speaker Identification Sheets are provided on the table

inside the Council Chambers. If you wish to address the Council during the meeting, please

complete a Speaker Identification Sheet and give it to the City Clerk. So that everyone who

wishes may have an opportunity to speak, there is a five-minute maximum time limit when

addressing the Council. Audio/Visual presentation material must be provided to the City Clerk’s

Office at least 48 hours prior to the meeting.

Any writings or documents provided to a majority of the City Council regarding any item on this

agenda will be made available for public inspection at City Hall located at 6360 Fountain Square

Drive, Citrus Heights during normal business hours. Email subscriptions of the agenda are

available online by signing up with the City’s Notify Me service.

City Council meetings are televised live on Metro Cable 14, the government affairs channel on

the Comcast, Consolidated Communications, and AT&T U-Verse cable systems and replayed

on the following Monday at 9:00 a.m. Meetings are also webcast live at www.citrusheights.net.

The Agenda for this meeting of the City Council for the City of Citrus Heights was posted in the

following listed sites before the close of business at 5:00 p.m. on the Friday preceding the

meeting.

1. City of Citrus Heights, 6360 Fountain Square Drive, Citrus Heights, CA

2. Rusch Park Community Center, 7801 Auburn Boulevard, Citrus Heights, CA

If you need a disability-related modification or accommodation, including auxiliary aids or

services, to participate in this meeting, please contact the City Clerk’s Office 916-725-2448,

6360 Fountain Square Drive at least 48 hours prior to the meeting. TDD: California Relay

Service 7-1-1.

January 17, 2020

_______________________

Amy Van, City Clerk

Citrus Heights City Council Thursday, January 23, 2020

Page 2 of 5


Please turn off all cellular phones while the City Council meeting is in session.

CALL SPECIAL MEETING TO ORDER

1. Roll Call: Council Members: Bruins, Daniels, Middleton, Miller, Slowey

PUBLIC COMMENT

STUDY SESSION

2. Organics and Recycling Update

ADJOURMENT

REGULAR MEETING

7:00 PM

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Bruins, Daniels, Middleton, Miller, Slowey

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Recognition of San Juan High School Football Players

5. Presentation by San Juan Unified School District – District Strategic Planning Efforts

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

PUBLIC COMMENT Under Government Code Section 54954.3, members of the audience may address the Council

on any item of interest to the public and within the Council’s purview, or on any Agenda Item

before or during the Council’s consideration of the Item. If you wish to address the Council

during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk.

SPECIAL MEETING

6:15 PM


Page 3 of 5


When you are called upon to speak, step forward to the podium and state your name for the

record. Normally, speakers are limited to five minutes each with 30 minutes being allowed for

all comments. Any public comments beyond the initial 30 minutes may be heard at the

conclusion of the agenda. The Mayor has the discretion to lengthen or shorten the allotted

times.

CONSENT CALENDAR It is recommended that all consent items be acted on simultaneously unless separate discussion

and/or action are requested by a Council Member.

6. SUBJECT: Approval of Minutes

RECOMMENDATION: Approve the Minutes of the Regular Meeting of January 9,

2020

7. SUBJECT: Approval of Public Utility Easement and Storm Water Facility

Maintenance Agreement with Dignity Health Medical Office Building at 7115

Greenback Lane

STAFF REPORT: S. Hodgkins / A. Flores / D. Medema

RECOMMENDATION: Adopt Resolution No. 2020-___; A Resolution of the City

Council of the City of Citrus Heights, California, Authorizing the City Manager to

Execute a Public Utility Easement and Storm Water Facilities Maintenance Agreement

with the Dignity Health Medical Foundation

8. SUBJECT: Mariposa Safe Routes to School, Phase 3 PN 20-14-003 Approval of

Amendment No. 2 to Construction Management & Inspection Services Agreement

STAFF REPORT: S. Hodgkins



Execute Amendment 2 to the Agreement for Professional Services with Ghirardelli

Associates for the Mariposa Avenue Safe Routes to School, Phase 3 Project

9. SUBJECT: Electric Greenway Trail Project ATPSB1L-5475(042)

Approval of Contract Amendment No. 3

STAFF REPORT: S. Hodgkins / L. Blomquist

RECOMMENDATION: Adopt Resolution No. 2020-____; A Resolution of the City


Execute Amendment No. 3 to the Contract for Professional Services with GHD, Inc. for

the ‘Electric Greenway Trail Project’ After Obligation of Funds by the California

Transportation Commission

10. SUBJECT: Contract Amendment for Professional Services with the Lew Edwards

Group

STAFF REPORT: K. Cooley



Execute a Contract Amendment with the Lew Edwards Group

STRATEGIC PLANNING GOAL: Improve Community Vibrancy and Engagement


Page 4 of 5 Printed on Recycled Paper

11. SUBJECT: Letter of Support for American River Collegiate Academy

STAFF REPORT: K. Cooley

RECOMMENDATION: The City Council direct the City Manager, on behalf of the

City of Citrus Heights, to submit a letter of support to the Sacramento Board of

Education on behalf of the American River Collegiate Academy in bringing this

academic option to the Citrus Heights community.

12. SUBJECT: Resolution of Intention to Modify the Sunrise MarketPlace Property and

Business Improvement District

STAFF REPORT: M. Huber


Council of the City of Citrus Heights, California, Declaring its Intention to Modify the

Sunrise MarketPlace Property and Business Improvement District

13. SUBJECT: Quarterly Treasurer’s Report

STAFF REPORT: R. Rivera / T. Nossardi

RECOMMENDATION: The City Council receive and file the Quarterly Treasurer’s

Report for the quarter ending December 31, 2019.

PUBLIC HEARING

14. SUBJECT: Municipal Code and Zoning Code Update - Marijuana Delivery

STAFF REPORT: C. McDuffee / C. Kempenaar / A. Bermudez

RECOMMENDATION: the Following Motions are Recommended:

Motion 1: Move to Determine the Proposed Amendments are Exempt from the

California Environmental Quality Act (CEQA) Under Section 15061(B)(3)

of the Guidelines.

Motion 2: Move to Introduce for a First Reading, Read by Title Only and Waive

the Full Reading of Ordinance No. 2020 -___; An Ordinance of the City

Council of the City of Citrus Heights, to Amend Chapter 47 and Chapter

106 (Zoning Code Section) of the Municipal Code.

REGULAR CALENDAR

15. SUBJECT: Adopt A Resolution Approving An Additional $2,280,000 Allocation of

HOME Investment Partnership Program Funds for a Total Allocation of $3,580,000 to the Sunrise Pointe Apartments at 7424 Sunrise Boulevard, Thereby Committing the City’s Future HOME Partnership Program Allocations for Approximately Ten Years STAFF REPORT: C. McDuffee / S. Cotter

RECOMMENDATION: Adopt Resolution No. 2020-___; A Resolution of the City Council of the City of Citrus Heights, California, Approving an Additional $2,280,000 Allocation of Home Investment Partnerships Program Funds for a Total Allocation of

$3,580,000 in Home Investment Partnerships Program Funds to the Sunrise Pointe Apartments at 7424 Sunrise Boulevard , Thereby Committing the City's Future Home Investment Partnerships Program Allocations for Approximately Ten Years


Page 5 of 5


16. SUBJECT: Approval of Economic Development Support Fund for the Citrus Heights

Chamber of Commerce



Council of the City of Citrus Heights, California, Approving a $10,000 Sponsorship to

the Citrus Heights Chamber of Commerce from the Economic Development Support

Fund – Part I

DEPARTMENT REPORTS

17. SUBJECT: Economic Development and Communications Division Update

DEPARTMENT: City Manager’s Department

18. SUBJECT: Rental Housing Inspection Program Update

DEPARTMENT: Police Department

STRATEGIC PLANNING GOAL: Enhance and Expand Public Safety

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS/ FUTURE AGENDA ITEMS

ADJOURNMENT


CITY COUNCIL

MINUTES

Regular Meeting of Thursday, January 9, 2020

City Hall Council Chambers

6360 Fountain Square Dive, Citrus Heights, CA

CALL REGULAR MEETING TO ORDER

The regular meeting was called to order at 7:00 p.m. by Mayor Slowey.

1. The Flag Salute was led by Council Member Bruins.

2. Roll Call: Council Members present: Bruins, Daniels, Miller, Slowey

Council Members absent: Middleton

Staff present: Boyd, Chow, Cooley, Huber, Jones, Kempenaar, Van

and department directors.

3. The video statement was read by City Clerk Van.

APPROVAL OF AGENDA

ACTION: On a motion by Council Member Bruins, seconded by Vice Mayor Miller, the City

Council approved the agenda.

AYES: Daniels, Bruins, Miller, Slowey

NOES: None

ABSENT: Middleton

PRESENTATIONS

4. Recognition of Outgoing Mayor Jeannie Bruins

Mayor Slowey presented Jeannie Bruins with a plaque and flowers in recognition of her service as

Mayor in 2019.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

Council Member Bruins commented on the events she attended, which included the Sylvan Old

Auburn Road Neighborhood Association meeting, the Sacramento Transportation Authority Board

meeting, and the Sacramento Area Association of Realtors Annual Luncheon. She also attended the

events hosted by the American Legion Post 637, and the Citrus Heights Community Band. She

provided an update from the REACH Board meeting and announced that Rocklin Academy is

interested in opening an institute in Citrus Heights.

Council Member Daniels commented on the Citrus Heights Tree Lighting event held at City Hall.

He also provided an update on the Martin v. Boise case and expressed his desire to have the city’s

anti-camping ordinance re-examined.

Citrus Heights City Council Minutes Thursday, January 9, 2020

Page 2

Vice Mayor Miller provided an update from the Sacramento Transportation Authority Board

workshop and promoted the upcoming Regional Transit Board meeting.

Mayor Slowey announced the intersection changes at Fair Oaks and Old Auburn Boulevard. The

city has reduced the northbound turning lane to one lane only. He provided reports from the

Sacramento Transportation Authority Board workshop and the Sunrise Mall 2x2 meeting. Residents

who are interested in providing suggestions on the development of the Sunrise Mall can visit

www.sunrisetomorrow.net and submit their feedback online

PUBLIC COMMENT

Soan Fisher expressed concerns regarding homeless issues within the city.

Michael Retzlaff expressed concerns regarding homeless issues within the city.

Jayna Karpinski-Costa, President of the Sylvan Old Auburn Road Neighborhood Association

provided a report on the annual Neighborhood Improvement Project funds from the city.

Gus Chaveste with Asian Resources Inc. announced the 18th Annual Lunar New Year Dinner to be

held on January 16, 2020.

CONSENT CALENDAR

5. SUBJECT: Approval of Minutes

RECOMMENDATION: Approve the Minutes of Special/Regular Meeting of December

12, 2019

6. SUBJECT: Second Reading – Ordinance Adopting Zoning Map Amendment and Rezone –

Fair Oaks Senior Affordable Housing - 12057 Fair Oaks Boulevard

STAFF REPORT: C. McDuffee / C. Kempenaar

RECOMMENDATION: Adopt Ordinance No. 2019-007; An Ordinance Adopting a Zoning

Map Amendment to Rezone Three Parcels of Land from RD-10 to RD-20


Council approved Consent Calendar Items 5 and 6.


NOES: None

ABSENT: Middleton

PUBLIC HEARING

None

REGULAR CALENDAR

7. SUBJECT: Liquidation of Sacramento Regional County Sanitation District Economic

Development Bank Credits and Allocation of Funds

http://www.sunrisetomorrow.net/


Page 3


RECOMMENDATION: Adopt Resolution No. 2020-001; A Resolution of the City

Council of the City of Citrus Heights, California, Authorizing the Liquidation of Economic

Development Bank Credits and Allocation of Funds

Economic Development and Communications Manager Huber stated that on October 11, 2019 staff

presented a recommendation to hire the consultant Gensler to execute the Sunrise Mall Specific

Plan process. As a part of the specific plan process, staff presented a funding solution to liquidate

the city’s sewer credit account. The city partners with Sacramento Regional County Sanitation

District for the Economic Development Treatment Capacity Bank and as a part of the agreement,

the city may liquidate available credits to reduce sewer impact fees and use toward economic

development purposes. Currently the city has 298 credits with a value of $436,658.46; any unused

credits will be liquidated when the program sunsets on December 31, 2020. Liquidation of these

credits will provide $436,658.46 to the city, which will be allocated to the Development Fund to be

used to fund the Sunrise Mall Specific Plan.

ACTION: On a motion by Council Member Bruins, seconded by Council Member Daniels, the City

Council adopted Resolution No. 2020-001; A Resolution of the City Council of the City of Citrus

Heights, California, Authorizing the Liquidation of Economic Development Bank Credits and

Allocation of Funds.


NOES: None

ABSENT: Middleton

8. SUBJECT: Appointments to Regional Boards and Committees

STAFF REPORT: A. Van

RECOMMENDATION: Following Council Discussion, Staff Recommends that the City

Council Ratify the Appointments by Adopting the Following:

a) Resolution No. 2020 - 002; A Resolution of the City Council of the City of Citrus

Heights, California, Appointing a Citrus Heights Member to Serve as the

Representative on the Sacramento Metropolitan Air Quality Management District

(SMAQMD) Board of Directors, and Appointing a Member to Serve as the Alternate

b) Resolution No. 2020 - 003; A Resolution of the City Council of the City of Citrus


Representative on the Sacramento Regional County Sanitation District (SRCSD) and

Sacramento Area Sewer District (SASD) Boards of Directors, and Appointing a

Member to Serve as the Alternate

c) Resolution No. 2020 - 004; A Resolution of the City Council of the City of Citrus


Representative on the Sacramento Transportation Authority (STA), and Appointing a

Member to Serve as the Alternate

d) Resolution No. 2020 - 005; A Resolution of the City Council of the City of Citrus

Heights, California, Appointing a Citrus Heights Member to Serve as a Director to


Page 4

the Sacramento Area Council of Governments (SACOG) Board of Directors, and

Appointing a Member to Serve as the Alternate

Mayor Slowey announced the appointments to the following regional boards and commissions:

Sacramento Metropolitan Cable Television

Commission

Porsche. Middleton

Steve Miller (Alternate)

Sacramento Public Library Authority Jeff Slowey

Porsche Middleton (Alternate)

Sacramento Area Sewer District Jeannie Bruins

Bret Daniels (Alternate)

Sacramento Regional County Sanitation

District

Jeannie Bruins

Bret Daniels (Alternate)

Sacramento Transportation Authority Steve Miller

Porsche Middleton (Alternate)

Sacramento Area Council of Governments Jeff Slowey

Jeannie Bruins (Alternate)

Regional Transit Steve Miller

Jeff Slowey (Alternate)

Sacramento Metropolitan Air Quality

Management District

Bret Daniels

Steve Miller (Alternate)

Sacramento Steps Forward

Homelessness Policy Council

Porsche Middleton

Liaisons to Local Entities

Education and Community Programs Jeannie Bruins

Jeff Slowey

Sacramento Metropolitan Fire District Jeff Slowey

Porsche Middleton

Inter-governmental Relations Steve Miller

Bret Daniels

Sunrise MarketPlace Jeannie Bruins

Porsche Middleton

Mayors’ & Board Chair Forum Collaborative Jeff Slowey

Steve Miller


Page 5

Council Ad Hoc Subcommittees

Finance/Administration Jeff Slowey

Steve Miller

Quality of Life Jeannie Bruins

Steve Miller


Council adopted Resolution No. 2020 - 002; A Resolution of the City Council of the City of Citrus

Heights, California, Appointing a Citrus Heights Member to Serve as the Representative on the

Sacramento Metropolitan Air Quality Management District (SMAQMD) Board of Directors, and

Appointing a Member to Serve as the Alternate.


NOES: None

ABSENT: Middleton

ACTION: On a motion by Vice Mayor Miller, seconded by Council Member Bruins, the City



Sacramento Regional County Sanitation District (SRCSD) and Sacramento Area Sewer District

(SASD) Boards of Directors, and Appointing a Member to Serve as the Alternate.


NOES: None

ABSENT: Middleton

ACTION: On a motion by Council Member Bruins, seconded by Council Member Daniels, the City



Sacramento Transportation Authority (STA), and Appointing a Member to Serve as the Alternate.


NOES: None

ABSENT: Middleton

ACTION: On a motion by Vice Mayor Miller, seconded by Counicl Member Daniels, the City


Heights, California, Appointing a Citrus Heights Member to Serve as a Director to the Sacramento

Area Council of Governments (SACOG) Board of Directors, and Appointing a Member to Serve as

the Alternate.


NOES: None

ABSENT: Middleton


Page 6

DEPARTMENT REPORTS

9. SUBJECT: Sunrise Mall Specific Plan Project Update

DEPARTMENT: Community Development Department

Planning Manager Kempenaar and Economic Development and Communications Manager Huber

stated that in October, council approved the contract with international architecture and planning

firm Gensler to assist with the Sunrise Mall Specific Plan. Over the past three months, Gensler and

staff have met with the five owners of the mall and stakeholders to engage and understand their

visions for the revitalization for the property. Residents can visit sunrisetomorrow.net to give

feedback and learn more or attend the Community Vision Workshop on February 11 at 5:00 p.m. in

the Sears building at Sunrise Mall.

10. SUBJECT: Youth and Family Program Update

DEPARTMENT: Police Department

Officers Chow and Hancock provided updates on the Citrus Heights Youth & Family Service

programs. The programs specialize in mentoring students who are interested in working in the

criminal justice field. Students enrolled in this course receive knowledge, skills, and experiences to

aid them in a future career in the field of law enforcement.

CITY MANAGER ITEMS

None

ITEMS REQUESTED BY COUNCIL MEMBERS/ FUTURE AGENDA ITEMS

11. SUBJECT: Kindergarten to College Education Program

Assistant to the City Manager provided a report on the Kindergarten to College Education Program.

The program is locally funded college savings program that partners with the city, county, and

school district. A kindergarten college savings account is automatically opened for students entering

kindergarten and would be made available when they attend college. She provided data from the

San Francisco Kindergarten Program and stated that the city of San Francisco spends approximately

$900,000 annually to fund the program for 46,000 students in their school districts. This year

Governor Newsom allocated funding for similar programs statewide, however the state has not yet

released a request for proposals, therefor there is not any funding details yet, accept that the

program will require local match of funding.

Council Member Daniels requested staff to report back on the number of children who live in Citrus

Heights and have enrolled in kindergarten this year.

Mayor Slowey requested staff to bring the report back at the city’s next Strategic Planning Retreat.

Council Member Bruins explained that the Rocklin Academy Family of Schools’ application for a

charter was denied by the San Juan Unified School District. The Academy has appealed the

decision to the Sacramento County Board of Education and she requests that the City Council send

a letter of support in bringing this academic option to the Citrus Heights community.


Page 7

Council Member Daniels supported Council Member’s Bruins request.

Council Member Daniels requested to add the following items to a future agenda for discussion:

1) Explore amending the city’s anti-camping ordinance as it relates to public property.

2) Explore amending the city’s nuisance abatement ordinance as it relates to the removal of camps

that pose a threat to the public.

City Manager Boyd suggested that staff set up a meeting with Counicl Member Daniels prior to

adding to a future agenda.

ADJOURNMENT

Mayor Slowey adjourned the regular meeting at 8:18 p.m.

Respectfully submitted,

__________________________

Amy Van, City Clerk

CITY OF CITRUS HEIGHTS CITY COUNCIL STAFF REPORT

MEMORANDUM

DATE: January 23, 2020

TO: Mayor and City Council Members Christopher W. Boyd, City Manager

FROM: Stuart Hodgkins, City Engineer Ardelyn Flores, Associate Civil Engineer Dirk Medema, Associate Civil Engineer

SUBJECT: Approval of Public Utility Easement and Storm Water Facility Maintenance Agreement with Dignity Health Medical Office Building at 7115 Greenback Lane

Summary and Recommendation

Construction of the Dignity Health Medical Foundation’s (DHMF) new medical office building on the City of Citrus Heights (City) owned parcel at 7115 Greenback Lane (Property) included installation of a number of drainage facilities designed to reduce the amount of storm water runoff and improve the quality of the water leaving the site. As owners of the property and as required by the Central Valley Regional Water Quality Control Board (CVRWQCB), the City has recorded a Declaration of Covenants Regarding Maintenance of Storm Water BMP Facilities (Maintenance Declaration) with the Sacramento County Recorder committing to perpetual operation and maintenance of these storm water management facilities on the site. The City now desires to enter into an agreement with DHMF, as holder of a lease on the property, to establish the duties and obligations of DHMF (or any successors) for maintenance of these facilities.

In anticipation of the future conveyance of the Property to DHMF, the agreement also stipulates that DHMF will dedicate, to the City, a 12.5-foot Public Utility Easement (PUE) along the Fountain Square Drive frontage of the Property. This PUE is a standard easement and provides for the construction, maintenance, and repair of public utilities. Dedication of the PUE must coincide with transfer of the Property because under State statute, a property owner is not permitted to grant an easement to itself.

Staff recommends the City Council approve Resolution 2020-____ , a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Public Utility Easement and Storm Water Facilities Maintenance Agreement with Dignity Health Medical Foundation.

Item 7

Subject: Approval of Storm Water Facility Maintenance Agreement with Dignity Health Medical Foundation Date: January 23, 2020 Page 2 of 2 Fiscal Impact There is no fiscal impact associated with this action. DHMF will be responsible for the full costs associated with maintenance of the storm water management facilities. Background and Analysis The City’s National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) permit, issued by the CVRWQCB, requires the City to implement and enforce best management practices (BMP) for development, redevelopment, and other applicable projects. BMPs apply to the construction and maintenance of onsite storm water management facilities. The goal of BMPs is to mitigate impacts to storm water quality and runoff volume discharges into the regional creek and river system. Accordingly, the final improvement plans for DHMF’s medical office building called for the construction and maintenance of BMP facilities on the Property. The BMP Facilities required include both built and landscaping features and must be maintained in perpetuity. The site improvements have been constructed and field accepted. As required by CVRWQCB to finalize the Construction General Permit obtained prior to construction starting on the site, the City, as owner of the Property, has prepared an Operations and Maintenance Manual for the BMP’s on the site and recorded a Maintenance Declaration with the Sacramento County Recorder. The Maintenance Declaration commits the City and all future owners/lessees of the Property to maintain the BMPs in perpetuity. Additionally, the City wishes to formalize a 12.5’ PUE along the Fountain Square Drive frontage of the Property to allow for the construction, maintenance, and repair of public utilities. However, under State statute the owner of a property may not grant an easement to itself and therefore the City desires to have DHMF dedicate the PUE upon future conveyance of the Property. The City and DHMF now propose to enter into an agreement to formalize the obligation for BMP maintenance and dedication of the PUE. The attached agreement has been negotiated to include the desired terms and conditions and is agreeable to both parties. Attachments

(1) Resolution 2020-____ , a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Public Utility Easement and Storm Water Facility Maintenance Agreement with Dignity Health Medical Foundation

(2) Public Utility Easement and Storm Water Facilities Maintenance Agreement Between Sacramento Municipal Utility District and the City of Citrus Heights

RESOLUTION NO. 2020-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC UTLITY

EASEMENT AND STORM WATER FACILITIES MAINTENANCE AGREEMENT WITH THE DIGNITY HEALTH MEDICAL FOUNDATION

WHEREAS, the City of Citrus Heights (City) has leased the property at 7115 Greenback Lane to the Dignity Health Medical Foundation (DHMF) for construction of a new medical office facility;

WHEREAS, DHMF has completed construction of the new medical office facility and associated site improvements, including storm water management facilities as required under the City’s Municipal Separate Storm Sewer System (MS4) Permit;

WHEREAS, the City, as owner of the subject property, has recorded a Declaration of Covenants Regarding Maintenance of Storm Water Best Management Practice Facilities with the Sacramento County Recorder, providing for perpetual maintenance of the required storm water management facilities;

WHEREAS, the City desires to have a Public Utility Easement (PUE) for the construction,

maintenance, and repair of public utilities along the Fountain Square Drive frontage of the subject property dedicated to the City upon the future conveyance of the subject property; and

WHEREAS, the City proposes to enter into an agreement with DHMF to establish the duties and

obligations of DHMF for maintenance of the storm water management facilities and to dedicate the proposed PUE upon conveyance of the property.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City of Citrus Heights, that the City Manager is hereby authorized to execute a Public Utility Easement and Storm Water Facilities Maintenance Agreement with Dignity Health Medical Foundation, in a form approved by the City Attorney.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 23rd day of January 2020 by the following vote, to wit: AYES: Council Members: NOES: Council Members: ABSTAIN: Council Members: ABSENT: Council Members:

Jeff Slowey, Mayor

ATTEST: Amy Van, City Clerk

[PHX-228485].1169808

PUBLIC UTILITY EASEMENT AND STORM WATER FACILITIES MAINTENANCE AGREEMENT

January 23, 2020

Exh. A

PUBLIC UTILITY EASEMENT AND STORM WATER FACILITIES MAINTENANCE AGREEMENT (7115 Greenback Lane; Citrus Heights, CA)

This Public Utility Easement and Storm Water Facilities Maintenance Agreement (this

"Agreement") by and between DIGNITY HEALTH MEDICAL FOUNDATION, a California nonprofit public benefit corporation ("DHMF") and the City of Citrus Heights, a municipal corporation ("City"), is effective as of the last date on which this Agreement has been executed by both Parties as indicated under the signature lines for each of the Parties (the “Execution Date”). . City and DHMF are referred to herein individually as a "Party" and collectively as the "Parties."

RECITALS

1.1 City Property. City owns a fee simple interest in certain real property located in the City of Citrus Heights, California located at or near the intersection of Fountain Square Drive and Greenback Lane (the "Property"). The Property is more fully described in Exhibit A, which is incorporated herein by this reference.

1.2 Existing Ground Lease of the Property.

(a) City and DHMF entered into a Ground Lease dated February 13, 2017 for the Property whereby DHMF leased the Property from the City for a period of One Hundred Eighty Months (the “Ground Lease”).

(b) The stated purpose of the Ground Lease is to provide the Property for development as a medical building, consisting of approximately 66,500 square feet and related on and off site improvements in accordance with the preliminary site plan (as may be amended from time to time), for the operation of hospital outpatient services and other medical and ancillary uses to the residents of the City and surrounding areas (the “DHMF Project”).

(c) Article Six, Section 6.1 of the Ground Lease obligates DHMF to at all times during the Term of the Ground Lease, at its own cost and expense, keep and maintain the Property and all Improvements (as defined in the Ground Lease) and facilities hereafter constructed on the Property by Lessee.

(d) Article Ten of the Ground Lease sets forth the terms and conditions for conveyance of the Property by the City to DHMF in fee at the end of the Term of the Ground Lease.

1.3 Purpose. In anticipation of the future conveyance of the Property to DHMF, City and DHMF desire to establish a public utility easement for the benefit of City in the location depicted on Exhibit B and legally described on Exhibit C located on the Property to allow for the construction, maintenance, and repair of public utilities. City and DHMF further desire to set forth the duties and obligations of DHMF to maintain improvements for storm water

management facilities, all as set forth in this Agreement. Therefore, City and DHMF hereby establish the covenants, conditions, restrictions and easements set forth in this Agreement, upon and subject to which all of the Property, or any part thereof, shall be improved, held, leased, sold and/or conveyed. Such covenants, conditions, restrictions and easements shall run with the land and inure and pass with the Property and shall apply to and bind the respective successors and interests thereof, and all and each thereof is imposed upon the Property as a mutual and reciprocal equitable servitude in favor of the Grantee Property and any portion thereof.

NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is acknowledged, the parties agree as follows:

PUBLIC UTILITY EASEMENT AREA.

1.4 DHMF Obligation to Convey a Public Utility Easement to City. City and DHMF agree that a Public Utility Easement area in the location depicted on Exhibit B and legally described on Exhibit C, and as identified on the final design and construction documents prepared by DHMF consistent with the site plan and development approvals approved by City, will be formally conveyed by a Public Utility Easement Deed from DHMF to the City in substantially the form attached as Exhibit D, concurrently with the close of escrow of the conveyance of the Property to DHMF as set forth in Article 10 of the Ground Lease.

1.5 DHMF will conduct all site development activities and improvements in the Public Utility Easement area consistent with the standard City restrictions placed on public utility easements in the City as reasonably determined by the City Engineer, and any conditions of approval related to the development of the DHMF Project prior to conveyance of the Public Utility Easement.

MAINTENANCE, REPAIR AND REPLACEMENT OF STORM WATER FACILITIES.

1.6 Inspection and Maintenance. DHMF agrees to, at DHMF’s sole cost and expense, construct, inspect, and maintain the BMP Facilities in accordance with the approved SWMP. DHMF shall assure that, during the term of the Ground Lease and continuing upon conveyance of the Property to DHMF from the City and as specified in the SWMP, all BMP Facilities remain functional and that all areas identified in the SWMP for treatment and/or volume capture discharge to the specified BMP as designed.

1.7 Recordation of Declaration of Restrictive Covenants. DHMF is aware that City recorded in the Office of the Sacramento County Recorder, a Declaration of Restrictive Covenants in substantially the form attached hereto as Exhibit E.

INDEMNIFICATION.

1.8 Indemnification by DHMF. DHMF shall defend, indemnify, protect and hold City, its elected officials, officers and employees harmless for, from and against any and all damages,

liabilities, losses, actions, claims, costs and expenses (including reasonable attorneys' fees and court costs and reasonable attorneys' fees and court costs on appeal) (collectively, "Claims"), which Claims are directly caused by (a) the failure of DHMF to construct, install, inspect, maintain and repair any or all of the storm water management facilities and BMP Facilities as required under this Agreement or (b) the negligent acts or omissions or willful misconduct of DHMF or its employees, licensees, agents, contractors, subcontractors or consultants; provided that, however, the foregoing indemnity does not apply to any Claims caused by or related to the negligent acts or willful misconduct of City or its invitees, employees, licensees, agents, contractors, subcontractors or consultants. Indemnity Agreement.

1.9 City hereby agrees to protect, defend, indemnify and save and hold Lessee harmless from all damage, liability, loss, cost and expense resulting from grossly negligent acts or omissions or willful misconduct of City or its employees and agents. City shall not be liable for any damage to BMP Facilities on the Property, except to the extent caused by City's gross negligence or willful misconduct.

GENERAL PROVISIONS.

1.10 Covenants Run with the Land. To the fullest extent allowed by law, this Agreement and the easements and restrictions contained herein shall be appurtenant to and for the benefit of the City of Citrus Heights and the public, and, shall be a burden on all portions of the Property occupied and controlled by DHMF under the terms of the Ground Lease or as subsequent landowner in fee, and shall run with the land.

1.11 Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon all owners, leaseholders, successors, assigns, transferees of the Property and the parties hereto.

1.12 Modification and Termination. This Agreement may not be modified in any respect whatsoever or terminated, in whole or in part, except with the consent of the Parties, and then only by written instrument duly executed and acknowledged by both parties and recorded in the Official Records of the County of Sacramento. Upon recordation of the PUE and recordation of a Grant Deed transferring ownership of the Property to DHMF, this agreement shall terminate and be of no further force and effect.

1.13 Breach Shall Not Permit Termination. It is expressly agreed that no breach of this Agreement shall entitle any Person to terminate this Agreement, but such limitation shall not affect in any manner any other rights or remedies which such Person may have hereunder by reason of any breach of this Agreement. Any breach of this Agreement shall not defeat or render invalid the lien of any mortgage or deed of trust made in good faith for value, but this Agreement shall be binding upon and be effective against any Person whose title is acquired by foreclosure, trustee's sale or otherwise.

1.14 Notices. All notices, demands, consents, requests or other communications required to or permitted to be given pursuant to this Agreement shall be in writing, shall be

given only in accordance with the provisions of this Section, shall be addressed to the parties in the manner set forth below, and shall be conclusively deemed to have been properly delivered: (a) upon receipt when hand delivered during normal business hours (provided that, notices which are hand delivered shall not be effective unless the sending party obtains a signature of a person at such address that the notice has been received); (b) upon the day of delivery if the notice has been deposited in a authorized receptacle of the United States Postal Service as first-class, registered or certified mail, postage prepaid, with a return receipt requested (provided that, the sender has in its possession the return receipt to prove actual delivery); or (c) one (1) business day after the notice has been deposited with either Golden State Overnight, FedEx or United Parcel Service to be delivered by overnight delivery (provided that, the sending party receives a confirmation of actual delivery from the courier). The addresses of the parties to receive notices are as follows:

To City: City of Citrus Heights Attention: City Manager 6360 Fountain Square Drive Citrus Heights, CA 95621

To Lessee: Dignity Health Medical Foundation c/o Dignity Health

10901 Gold Center Drive, Suite 300 Rancho Cordova, CA 95670 Attn: Corporate Real Estate With copy to:

Dignity Health Attention: Legal Department 3200 N. Central Avenue, 23rd Floor Phoenix, AZ 85012

until such time as any party shall notify the others in writing that its address is changed.

1.15 Waiver. The failure of a Person to insist upon such performance of any of the obligations, duties or restrictions contained herein shall not be deemed a waiver of any rights or remedies that said Person may have, and shall not be deemed a waiver of any subsequent breach or default in the performance of any of the restrictions contained herein by the same or any other Person. As used herein, "Person" shall mean any individual, partnership, firm, association, trust, corporation, limited liability company, trust, governmental agency, administrative tribunal or any other form of business or legal entity.

1.16 Attorneys' Fees. If any Person initiates or defends any legal action or proceeding to enforce or interpret any of the terms of this Agreement, the prevailing party in any such

action or proceeding shall be entitled to recover from the losing party in any such action or proceeding its reasonable costs including expert witness fees, and attorneys' fees (including its reasonable costs including expert witness fees, and attorney's fees on any appeal and in enforcing any judgment awarded to it).

1.17 Severability. If any term or provision of this Agreement or the application of it to any person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances, other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and shall be enforced to the extent permitted by law.

1.18 Not a Partnership. The provisions of this Agreement are not intended to create, nor shall they be in any way interpreted or construed to create, a joint venture, partnership, or any other similar relationship between the parties. Each party shall be considered a separate party and no party shall have the right to act as agent for another, unless expressly authorized to do so herein or by separate written instrument signed by the party to be charged.

1.19 Third-Party Beneficiary Rights. This Agreement is not intended to create, nor shall it be in any way interpreted or construed to create, any third-party beneficiary rights in any person not a party hereto unless otherwise expressly provided herein.

1.20 Captions and Headings. The captions and headings in this Agreement are for reference only and shall not be deemed to define or limit the scope or intent of any of the terms, covenants, conditions or agreements contained herein.

1.21 Interpretation. Whenever the context requires in construing the provisions of this Agreement, the use of a gender shall include both genders, use of the singular shall include the plural, and the use of the plural shall include the singular. The word "including" shall be construed inclusively, and not in limitation, whether or not the words "without limitation" or "but not limited to" (or words of similar importance) are used with respect thereto. The provisions of this Agreement shall be construed as a whole and not strictly for or against any party. Unless otherwise provided, references to Articles and Sections refer to the Articles and Sections of this Agreement.

1.22 Entire Agreement. This Agreement contains the entire agreement between the parties hereto and supersedes all prior agreements, oral or written, with respect to the Public Utility Easement and obligations to maintain BMP Facilities affecting the Property.

1.23 Joint and Several Obligations. If any party hereto is composed of more than one person, the obligations of said party shall be joint and several.

1.24 Recordation. As referenced in Section 1.7, the Declaration of Covenants Regarding Maintenance of Storm Water BMP Facilities has been recorded in the Official Records of the County of Sacramento on _____________, 20___ as Document No.

_________________. Moreover, when the Public Utility Easement referenced in Sections 1.4 and 1.5 is conveyed to the City, it will be recorded in the Official Records of the County of Sacramento.

1.25 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signature pages may be detached from the counterparts and attached to a single copy of this Agreement to physically form one document.

1.26 Remedies Cumulative. City and DHMF, respectively, shall be entitled to enforce this Agreement and shall have all remedies provided by law or equity to the same extent as if fully set forth herein. No remedy herein conferred upon, or reserved to any Person shall exclude any other remedy herein or by law provided, but each shall be cumulative.

NOW THEREFORE, the undersigned have executed this Agreement as of the Execution Date.

“DHMF" “CITY” DIGNITY HEALTH MEDICAL FOUNDATION, a California nonprofit public benefit corporation Name: Title: Date signed: Approved as to Form (Dignity Health Legal): Name: Joseph Y. Viola Title: Senior Counsel, Real Estate Date signed:

City of Citrus Heights By: Christopher W. Boyd, City Manager Date signed: Approved as to Form: Ryan R. Jones, City Attorney

EXHIBIT A

Legal Description

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CITRUS HEIGHTS, COUNTY OF SACRAMENTO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

All that certain real property located in the State of California, County of Sacramento, City of Citrus Heights, being a portion of Rancho San Juan located in the Northwest Quarter of Section 35, Township 10 North, Range 6 East, M.D.M., also being a portion of Parcel 1 and Parcel 2 as shown and so designated on that certain Parcel Map that filed for record in the Office of the Sacramento County Recorder on November 19, 1980, in Book 61 of Parcel Maps, at Page 36, more particularly described as follows:

BEGINNING at a point on the Northerly right of way line of Greenback Lane and the Westerly boundary line as said line is delineated on the above mentioned Parcel Map, from which point the West Quarter Comer of Section 35 bears South 01 °00'49" East a distance of 75.33 feet, thence around the perimeter of the herein described parcel the following ten (10) courses as said courses are delineated on Exhibit B attached hereto; (1.) thence leaving said Northerly right of way line and along said Westerly boundary line of the aforesaid Parcel 1 and Parcel 2, North 01°00'49" West a distance of 611 .56 feet; (2.) thence leaving said Westerly boundary line North 88°59'08" East a distance of26.50 feet; (3.) thence South 82°02'01" East a distance of 49.54 feet; (4.) thence South 84°00'49" East a distance of229.53 feet to a point on the Westerly right of way line of Fountain Square Drive; (5.) thence along the aforesaid Westerly right of way line on the arc of a 542.00 foot radius curve to the left, through a central angle of 05°52'27", subtended by a chord bearing South 02°43'39" West a distance of 55.54 feet; (6.) thence continuing along the aforesaid Westerly right of way line, South 00°12'34" East a distance of 365.00 feet; (7.) thence continuing along the aforesaid Westerly right of way line on the arc of a 153.00 foot radius tangent curve to the right, through a central angle of23°53'42", subtended by a chord bearing South 11°44'17" West a distance of 63.35 feet to a point of reverse curvature; (8.) thence continuing along the aforesaid Westerly right of way line on the arc of a 237.00 foot radius tangent curve to the left, through a central angle of 18°12'30", subtended by a chord bearing South 14°34'53" West a distance of 75.00 feet to a point of reverse curvature; (9.) thence continuing along the aforesaid Westerly right of way line on the arc of a 25.00 foot radius tangent curve to the right, through a central angle of 83°41'12", subtended by a chord bearing South 47°19'14 West a distance of 33.35 feet to a point on the aforementioned Northerly right of way line of Greenback Lane; (10.) thence along the aforesaid Northerly right of way South 89°09'50" West a distance of235.45 feet to the Point of Beginning, containing 3.986 acres, more or less.

As shown as "Resultant Parcel B" in Lot Line Adjustment-LLA-13-0016, recorded April 29, 2016, in Book 20160429, Page 536 of Official Records.

APN: 243-0020-055 ptn. (Old Assessor Parcel No.)

APN: 243-0020-067 (New Assessor Parcel No.)

Exh. B

EXHIBIT B

Location of Public Utility Easement (Plat)

Exh. C

EXHIBIT C

Legal Description of Public Utility Easement Area

Exh. D

EXHIBIT D

RECORDED REQUESTED BY AND WHEN RECORDED, PLEASE RETURN TO: City Clerk CITY OF CITRUS HEIGHTS 6360 Fountain Square Drive Citrus Heights, CA 95621 DOCUMENTARY TRANSFER TAX: $NONE [Rev. & Tax Code Section 11922, Government Agency Acquiring Title] Signature of Declarant or Agent determining tax: __________________________ City Clerk City of Citrus Heights

Project: Dignity Health Medical Building APN: 243-0020-067

PUBLIC UTILITY EASEMENT

FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Dignity Health Medical Foundation, a California nonprofit public benefit corporation, grantor(s), hereby grant(s) to the City of Citrus Heights, grantee, and to is successors and assigns, a non-exclusive Public Utility Easement, together with all rights necessary or incidental thereto, on, over, under and across that certain real property in the City of Citrus Heights, County of Sacramento, State of California, described in Exhibit “A” and Exhibit “B” attached hereto and by reference made a part hereof. Grantor also grants to Grantee, its agents, employees, successors, and assigns the right of ingress to and egress from the easement and right-of-way for the purpose of exercising the rights granted herein. Grantee shall be responsible for damage caused intentionally or by any negligent act or omission of Grantee, its agents or employees while exercising the rights granted herein, and will indemnify grantor(s) and their heirs, administrators, executors, and assigns of grantor(s). Executed this _______________ day of ________ 202___. Dignity Health Medical Foundation c/o Dignity Health

Exh. D

10901 Gold Center Drive, Suite 300 Rancho Cordova, CA 95670 By:____________________________________ Its: ____________________________________

Exh. D – Page 2 of 2

EXHIBIT E

[see final declaration, separate document that will be attached here]



MEMORANDUM



FROM: Stuart Hodgkins, City Engineer

SUBJECT: Mariposa Safe Routes to School, Phase 3 PN 20-14-003 Approval of Amendment No. 2 to Construction Management & Inspection Services Agreement


On July 26, 2018, City Council authorized an Agreement for Professional Services (Agreement) with Ghirardelli Associates (Ghirardelli) to provide construction management, inspection, and materials testing services for the Mariposa Avenue Safe Routes to School, Phase 3 Project (Project). In October 2019, Contract Amendment No. 1 (Amendment 1) to the Agreement was approved by the City Council to cover increased inspection and construction management costs associated with a delay to the start of construction (to obtain more favorable construction bids) and an increase in the construction working days allotted to the contractor.

After approval of Amendment 1, some late design modifications to address a private driveway re-design and a drainage modification at the Mariposa-Kensington intersection further extended the duration of construction. As a result, inspection and construction management expenses will increase concurrently. To ensure that Ghirardelli has sufficient funding to see the project through to completion and assist the city with Caltrans’ closeout process, it is necessary to amend the Agreement. Staff has negotiated Amendment No. 2 to the Agreement (Attachment 2) with Ghirardelli to provide compensation for the extended duration of the Project.

Staff recommends the City Council adopt Resolution No. 2020-____ A Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute Amendment No. 2 to the agreement for professional services with Ghirardelli Associates for the Mariposa Avenue Safe Routes to School, Phase 3 Project.

Fiscal Impact

There is no fiscal impact to the General Fund associated with this action. The not-to-exceed fee for services under the original Agreement and Amendment 1 is $271,339.37. Proposed

Item 8

Subject: Mariposa Avenue. Safe Routes to School Phase 3 – CML 5475(039) Approval of Contract Amendment No. 2 to Construction Management Agreement with Ghirardelli Assoc. Date: January 23, 2020 Page 2 of 2


Amendment 2 will increase the not-to-exceed fee for services by $34,516.78 to $305,856.15. Sufficient funding is included in the FY 2019/2020 budget and the 2019-2024 Capital Improvement Program to cover the costs of this Amendment 2 as follows:

Source Fund Funding Percentage FY 2019/2020 Measure A Capital (Bike/Ped Safety) [310] 25.0

8,629.20 Measure A Capital (Traffic Safety) [310] 25.0 8,629.19 Stormwater Utility Fund [209] 21.0 7,248,52 Transportation Development Act (TDA) [212] 22.2 7,662.73 Roadway Impact Fee Fund [262] 6.8 2,347.14 Total 100% $34,516.78

Background and Analysis Phase 1 of the Project, which constructed continuous sidewalk on the west side of Mariposa Avenue between Skycrest School and Grace Ellen Court, was completed in 2008. Phase 2, completed in 2013, constructed continuous sidewalk on the west side from Limerick Court to Greenback Lane and on the east side from Northridge Drive to Greenback Lane. Phase 3 of the Project continues this larger vision of continuous pedestrian/bicycle infrastructure between Skycrest Elementary and San Juan High schools and along Farmgate Avenue. It is constructing curb, gutter, sidewalk, bike lanes, curb access ramps and eight street lights on the east side of Mariposa Avenue between Northridge Drive and Eastgate Avenue, and will construct curb, gutter and sidewalk along the north side of Farmgate Avenue from Mariposa Avenue to Our Way. Caltrans authorized the City to proceed with construction in March 2018. In April of that year the City issued a Request for Proposals (RFP) seeking a qualified firm to provide construction management, inspection, and materials testing services for the project. From this process a contract was awarded to Ghirardelli in July 2018. Subsequent to the award of the professional services agreement to Ghirardelli, the City postponed construction on the Project about eight (8) months to obtain more favorable bids and the design team increased the allotted working days by one month (20%) to ensure adequate time for the contractor to complete the work. Amendment No. 1 to Ghirardelli’s contract was executed in October 2019 to cover the increased costs associated with the delayed project start and increased working days. Shortly after approval of contract Amendment 1, Staff determined some late design modifications were necessary to address a private driveway re-design and a drainage modification at the Mariposa-Kensington intersection. Ultimately, these changes have further extended the duration of construction resulting in additional inspection and construction management expenses. To ensure that Ghirardelli has sufficient funding to see the project through to completion and assist the city with Caltrans’ closeout process, it is necessary to

Subject: Mariposa Avenue. Safe Routes to School Phase 3 – CML 5475(039) Approval of Contract Amendment No. 2 to Construction Management Agreement with Ghirardelli Assoc. Date: January 23, 2020 Page 3 of 2


amend the Agreement. Staff has negotiated Amendment 2 to the Agreement (Attachment 2) with Ghirardelli to provide compensation for the extended duration of the Project.

Attachments

(1) Resolution No. 2020-____ A Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to Execute Amendment 2 to the Agreement for Professional Services with Ghirardelli Associates for the Mariposa Avenue Safe Routes to School, Phase 3 Project.

(2) Amendment 2 to the contract for professional services between the City of Citrus Heights and Ghirardelli Associates for the Mariposa Avenue Safe Routes to School, Phase 3 Project.


RESOLUTION NO. 2020-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT

2 TO THE AGREEMENT FOR PROFESSIONAL SERVICES WITH GHIRARDELLI ASSOCIATES FOR THE MARIPOSA AVENUE SAFE ROUTES TO SCHOOL, PHASE

3 PROJECT

WHEREAS, on July 26, 2018, the City Council of the City of Citrus Heights, California authorized execution of an agreement with Ghirardelli Associates in the amount of $210,763.23 for the Mariposa Avenue Safe Routes to School, Phase 3 Project;

WHEREAS, On October 24, 2019, the City Council authorized execution of Amendment

1 in the amount of $60,576.14, increasing the not-to-exceed fee to $271,339.37; WHEREAS, the City wishes to amend the agreement again to provide for additional

compensation associated with unforeseen changes in the project which further extended the duration of project construction;

WHEREAS, said Amendment 2, in the amount of $34,516.78 will increase the total not-

to-exceed contract fee to $305,856.15; and WHEREAS, the additional services will be funded with Roadway Impact Fees (262), the

Transportation Development Act fund (212), the Stormwater Utility Fund (209), and the Measure A Capital fund (310).

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the

City of Citrus Heights, the City Manager is hereby authorized to execute Contract Amendment No. 2, in the amount not to exceed $34,516.78, for the Mariposa Avenue Safe Routes to School, Phase 3 Project.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 23rd day of January, 2020, by the following vote, to wit: AYES: Council Members: NOES: Council Members: ABSTAIN: Council Members: ABSENT: Council Members:

____________________________________ Jeff Slowey, Mayor


AMENDMENT NO. 2 TO CONTRACT FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE MARIPOSA AVENUE SAFE ROUTES TO

SCHOOL PHASE 3 PROJECT BETWEEN THE CITY OF CITRUS HEIGHTS AND GHIRARDELLI ASSOCIATES

This Amendment (the “Amendment”) is entered into by and between the City of Citrus Heights (“City”), a municipal corporation in the State of California, and Ghirardelli Associates, as of October 24, 2019.

RECITALS

WHEREAS, the City and Consultant previously entered into that Contract for Construction Management and Inspection (CMI) Services for the Mariposa Avenue Safe Routes to School Phase 3 dated July 26, 2018 (the “Agreement”); WHEREAS, on October 24, 2019 Contract Amendment No. 1 in the amount of $60,576.14, was executed to provide for additional inspection and construction management services related to a project delay; WHEREAS, subsequent to the approval of Amendment No. 1 unforeseen design changes and modifications further extended the duration of the project construction; WHEREAS, City and Consultant now wish to amend the Scope of Services of the Agreement to provide continued services through the completion of the project; and WHEREAS, City and Consultant also agree to increase the maximum compensation allowed under the Agreement by thirty-four thousand, five hundred sixteen dollars and seventy-eight cents ($34,516.78), for an amended total compensation of not-to-exceed three hundred five thousand, eight hundred and fifty-six dollars and fifteen cents ($305,856.15). NOW, THEREFORE, the City and Consultant agree as follows:

1. Introduction. The City and Consultant agree to modify the Agreement to provide for the extended project duration and increased personnel costs resulting from the delayed construction start. Article I, Section A of the Agreement, “INTRODUCTION,” is hereby amended to read as follows:

“A. The work to be performed under this contract is described in Article II entitled Statement of Work and the approved CONSULTANT’s Cost Proposals dated April 11, 2019 and January 2, 2020. The approved CONSULTANT’s Cost Proposals is are attached hereto as Exhibit A-Revised and A2 and incorporated by reference. If there is any conflict between the approved Proposals and this contract, the contract shall take precedence.”

2. Compensation. City and Consultant also agree to increase the maximum compensation allowed under the Agreement by thirty-four thousand, five hundred sixteen dollars and seventy-eight cents ($34,516.78), for an amended total compensation of not-to-exceed three hundred five thousand, eight hundred and fifty-six dollars and fifteen cents

Page 2

($305,856.15). Article V, Section H of the Agreement “ALLOWABLE COSTS”, is hereby amended to read as follows:

“H. The total amount payable by CITY including the fixed fee shall not exceed $305,856.15.”

3. Exhibits. The revised scope described under Sections 1 and 2 of this Amendment and the fee estimate of such work described under Section 2 of this Amendment are attached hereto as Attachment 1 and shall become Exhibit A2 to the Agreement.

4. All other terms and conditions of the Agreement shall remain unchanged and in full force and effect, including but not limited to, the terms and conditions regarding timing of payment, insurance and indemnification, and standard of care.

CITY OF CITRUS HEIGHTS By: Date: Christopher W. Boyd, City Manager Attest Amy Van, City Clerk Approved as to Form Ryan Jones, City Attorney GHIRARDELLI ASSOCIATES By: Date: Title:

Page 3



MEMORANDUM



FROM: Stuart Hodgkins, City Engineer Leslie Blomquist, Principal Civil Engineer

SUBJECT: Electric Greenway Trail Project ATPSB1L-5475(042) Approval of Contract Amendment No. 3


On June 28, 2018, the City Council authorized an Agreement for Professional Services (Agreement) with GHD, Inc. (GHD) to provide support for the Project Approval/Environmental Documentation (PA/ED) phase of the Electric Greenway Trail Project (Project). On February 28, 2019, and on April 11, 2019, the City Council authorized amendments to the Agreement for additional professional services and technical studies necessary for the environmental review.

The current Agreement and amendments authorized work associated with the PA/ED phase only. This phase is substantially complete and staff has requested the California Transportation Commission (CTC) obligate funding for the Right-of-Way (ROW) and final design phases. Staff anticipates CTC will obligate the funds at their January 30, 2020 meeting.

In addition to CTC’s obligation of funds, the City must amend the Agreement with GHD to proceed with the ROW and final design phases of the Project. Staff has negotiated the scope and fee of $386,662.78 for Contract Amendment No. 3 to provide for the next phases of work.

Staff recommends the City Council adopt Resolution No. 2020-____ A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Amendment No. 3 to the Contract for Professional Services with GHD, Inc. for the ‘Electric Greenway Trail Project’ after obligation of funds by the California Transportation Commission.

Fiscal Impact

The current not-to-exceed fee for the PA/ED phase of the Project is $495,217.97. Proposed Amendment No. 3, for services associated with the ROW and final design phases will increase the not-to-exceed fee for services by $386,662.78 to $881,880.75. In addition to the amendment of

Item 9

Subject: Electric Greenway Trail Project ATPSB1L-5475(042), Approval of Contract Amendment No. 3 Date: January 23, 2020 Page 2 of 3


the Agreement with GHD, purchase of various easements will be required for Project construction. The cost of the easements is currently estimated at $31,932.92. Although not programmed in the 2019-2020 Capital Improvement Program (CIP), there are sufficient Measure A Capital (Pedestrian Safety) and Stormwater Utility funds available to supplement the programmed project funding and cover the additional professional services. The full funding for the ROW and final design phases of the project are outlined in the table below:

Funding Source Amount ATP Grant 311,000.00 ATP Grant (Transfer of remaining funds from previous project phase)

13,935.09

Sunrise Recreation and Park District - Park Facilities Impact Fees*

5,000.00

Sunrise Recreation and Park District - Park Facilities Impact Fees* (Transfer of remaining funds from previous project phase)

1,592.58

Stormwater Utility Funds (Fund 209) (Amendment 3) 17,257.07 Measure A Capital-Pedestrian Safety (Fund 310) (Transfer of remaining funds from previous project phase)

1,863.75

Measure A Capital-Pedestrian Safety (Fund 310) (Amendment 3)

67,947.21

Total Project Funding (ROW & Final Design Phases Only) 418,595.70 *Use of funds approved by City Council at the June 14, 2018 meeting.

Background and Analysis The Electric Greenway is a 2.9 mile multi-use trail between Sunrise Boulevard and Wachtel Way, largely following an existing Sacramento Municipal Utility District (SMUD) electric corridor easement. The Project is located in the city and unincorporated Orangevale, and connects several neighborhoods to seven parks, several schools, and the Sunrise MarketPlace. In addition to a paved multi-use trail, this Project also includes the following:

• A new signalized crossing of Fair Oaks Boulevard; • Pathway lighting; • Sidewalk, curb and gutter along a segment of Oak Avenue; • Drainage improvements; • Traffic signal modifications; and • Landscaping.

On June 27, 2019, the City Council adopted resolutions adopting the Initial Study/Mitigated Negative Declaration, Mitigation Monitoring Plan and directing staff to proceed with final engineering design and ROW phases of the Project.

Subject: Electric Greenway Trail Project ATPSB1L-5475(042), Approval of Contract Amendment No. 3 Date: January 23, 2020 Page 3 of 3


Staff has requested CTC obligate funding for the ROW and final engineering design phases. It is anticipated this will occur at their January 30, 2020 meeting. Staff originally received a proposed scope and fee for the ROW and final design phases from GHD at the time of the initial contract award. However, as negotiations progressed at that time, both parties agreed to postpone negotiations of the final design and ROW phases until completion of the PA/ED phase and to a time when more detailed information regarding the needs and scope for professional services would be available. Now that the PA/ED phase is substantially complete, staff and GHD have finalized the negotiations needed to proceed with the next two phases of the Project. Amendment No. 3 to the Agreement (Attachment 2) with GHD is to continue with the final design and ROW phases. This project aligns with the City Council’s three-year strategic planning goal to “improve streets and infrastructure”.

Attachments

(1) Resolution No. 2020-____ A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Amendment No. 3 to the Contract for Professional Services with GHD, Inc. for the ‘Electric Greenway Trail Project’ after obligation of funds by the California Transportation Commission.

(2) Amendment No. 3 to the contract for professional services between the City of Citrus Heights and GHD, Inc. for the ‘Electric Greenway Trail Project’.


RESOLUTION NO. 2020-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 TO THE CONTRACT FOR PROFESSIONAL SERVICES WITH GHD, INC. FOR THE ‘ELECTRIC GREENWAY TRAIL PROJECT’ AFTER OBLIGATION OF FUNDS

BY THE CALIFORNIA TRANSPORTATION COMMISSION

WHEREAS, in November 2016, the city received a $350,000 ($7,015,000 total project cost) regional Active Transportation Program (ATP) grant for the preliminary engineering of the Electric Greenway Trail Project;

WHEREAS, in September 2017, the city received a $5,866,000 state Active

Transportation Program SB1 Augmentation (ATPSB1) grant for the right-of-way, design, and construction phases of the Electric Greenway Project;

WHEREAS, on June 28, 2018, the City Council of the City of Citrus Heights, California

authorized execution of an agreement with GHD, Inc. in the amount of $470,076.63 for the preliminary engineering phase of the Electric Greenway Trail Project;

WHEREAS, on February 28, 2019, the City Council of the City of Citrus Heights,

California authorized execution of Contract Amendment No. 1 with GHD, Inc. in the amount of $7,534.36;

WHEREAS, on April 11, 2019, the City Council of the City of Citrus Heights, California

authorized execution of Contract Amendment No. 2 with GHD, Inc. in the amount of $17,606.98; WHEREAS, on June 27, 2019, City Council adopted a Resolution directing staff to

proceed with the right-of-way and final design phases of the Electric Greenway Trail Project; WHEREAS, it is anticipated that the California Transportation Commission (CTC) will

obligate funding for the right-of-way and final design phases of the Electric Greenway Trail Project at their January 30, 2020 meeting;

WHEREAS, the city wishes to amend the agreement to provide professional services

associated with the right-of-way (ROW) and final engineering design (PS&E) phases, immediately after CTC obligates funds;

WHEREAS, said Amendment No. 3, in the amount of $386,662.78 will increase the total

not-to-exceed contract fee to $881,880.75; and WHEREAS, the proposed professional services will be paid for with ATP grant funds,

Park Facility Impact Fees, Stormwater Utility funds (Fund 209) and Measure A Capital funds (Fund 310).

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the

City of Citrus Heights, the City Manager is hereby authorized to execute Contract Amendment


No. 3, in the amount not to exceed $386,662.78, for the Electric Greenway Trail Project after obligation of funds by the California Transportation Commission.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 23rd day of January, 2020, by the following vote, to wit: AYES: Council Members: NOES: Council Members: ABSTAIN: Council Members: ABSENT: Council Members:

____________________________________ Jeff Slowey, Mayor


AMENDMENT NO. 3 TO CONTRACT FOR PROFESSIONAL SERVICES FOR THE ELECTRIC GREENWAY TRAIL PROJECT BETWEEN THE

CITY OF CITRUS HEIGHTS AND GHD, INC. This Amendment No. 3 (the “Contract Amendment No. 3”) is entered into by and between the City of Citrus Heights (“City”), a municipal corporation in the State of California, and GHD, Inc., as of ____________________, 2020.

RECITALS

WHEREAS, the City and Consultant previously entered into that Contract for Professional Design Services for the Project Approval/Environmental Documentation (PA/ED) phase of the Electric Greenway Trail Project dated June 28, 2018 (the “Agreement”); WHEREAS, on February 28, 2019, Contract Amendment No. 1 in the amount of $7,534.36, was executed to perform additional environmental studies; WHEREAS, on April 11, 2019, Contract Amendment No. 2 in the amount of $17,606.98, was executed to perform additional technical reports and environmental studies; WHEREAS, City and Consultant now wish to execute Contract Amendment No. 3 to provide services for the final engineering design (PS&E) and right-of-way (ROW) phases of the Electric Greenway Trail Project (the “Additional Work”); and WHEREAS, City and Consultant also agree to increase the maximum compensation allowed under the Agreement by three hundred eighty-six thousand, six hundred sixty-two dollars and seventy-eight cents ($386,662.78), for an amended total compensation of not-to-exceed eight hundred eighty-one thousand, eight hundred eighty dollars and seventy-five cents ($881,880.75). NOW, THEREFORE, the City and Consultant agree as follows:

1. Introduction. The City and Consultant agree to modify the Agreement to include the Additional Work. Article I, Section A of the Agreement, “INTRODUCTION,” is hereby amended to read as follows:

“A. The work to be performed under this contract is described in Article II entitled Statement of Work and the approved CONSULTANT’s Cost Proposals dated June 6, 2018, January 21, 2019, March 19, 2019 and December 20, 2019. The approved CONSULTANT’s Cost Proposals are attached hereto as Exhibits A, A1, A2 and A3 and incorporated by reference. If there is any conflict between the approved Proposals and this contract, the contract shall take precedence.”

2. Statement of Work. The City and Consultant agree to modify the Agreement to include the Additional Work. The first paragraph of Article II, of the Agreement, “STATEMENT OF WORK,” is hereby amended to read as follows:

“Subject to the terms and conditions set forth in this Agreement, CONSTULTANT shall provide to City the services described in the Scope of Work attached as Exhibits A, A1

Page 2

A2 and A3, and incorporated herein, at the time and place and in the manner specified therein.

3. Performance Period. City and Consultant agree to extend the expiration date of the contract. Article IV, Section A of the Agreement “PEROFORMANCE PERIOD”, is hereby amended to read as follows:

“A. This contract shall go into effect on August 1, 2018, contingent upon approval by the CITY, and CONSULTANT shall commence work after notification to proceed by CITY’S Contract Administrator. The contract shall end on June 30, 2022, unless extended by contract amendment.”

4. Compensation. City and Consultant also agree to increase the maximum compensation allowed under the Agreement by three hundred eighty-six thousand, six hundred sixty-two dollars and seventy-eight cents ($386,662.78). Article V, Section H of the Agreement “ALLOWABLE COSTS”, is hereby amended to read as follows:

“B. In addition to the allowable incurred costs, CITY will pay CONSULTANT a fixed fee of $32,796.48. The fixed fee is nonadjustable for the term of the contract, except in the event of a significant change in the scope of work and such adjustment is made by contract amendment. “H. The total amount payable by CITY including the fixed fee shall not exceed $881,880.75.”

5. Exhibits. The Additional Work described under Sections 1 and 2 of this Amendment and

the fee estimate of such work described under Section 3 of this Amendment are attached hereto as Attachment 1 and shall become Exhibit A3 to the Agreement.

6. All other terms and conditions of the Agreement shall remain unchanged and in full force

and effect, including but not limited to, the terms and conditions regarding timing of payment, insurance and indemnification, and standard of care.

CITY OF CITRUS HEIGHTS By: Date:

Christopher W. Boyd, City Manager Attest Amy Van, City Clerk Approved as to Form

Page 3

Ryan Jones, City Attorney GHD, INC. By: Date: Title:

Scope of Work Citrus Heights Electric Greenway Project I City of Citrus Heights

Omini-Means Scope of Work I Type Date l M2523SCP001.docx l Page 26

Phase 2 - Plans, Specifications, and Estimate (PS&E) The following Scope of Services outlines tasks necessary to deliver the Plans, Specifications and Estimate (PS&E) Phase of the Project, including all supporting services described below. The following scope of work is based on the alignment discussed in the RFP. If the selected alternative differs significantly from the Trail represented in the RFP or the assumptions stated below, this scope and fee will need to be revisited. Task A - Project Management and Coordination GHD will serve as the overall Project Manager during the PS&E Phase of the Project. GHD will serve as the primary point of contact to the City and other Project partners. Coordination and communication will play a vital role in the successful completion of the Project on schedule and within budget. A.1 - Project Management GHD will serve as the overall Project Manager during the entire duration of the Project. Project Management respon-sibilities under this phase includes:

Oversee the delivery of the components listed in the contract and this scope of work Maintain an up to date master Project schedule Manage the Project budget Manage Subconsultants Quality assurance and quality control for Project deliverables Coordinate with Project stakeholders Coordinate Project status meetings Prepare and submit monthly invoices and progress reports

• Products: Monthly schedule updates, invoices, and progress reports. Includes preparing agendas and

meeting notes from Project status meetings. A.2 - Progress Meetings Under this task, GHD will conduct Project Development Team (PDT) meetings. GHD will provide meeting coordina-tion and oversight and will prepare agendas and meeting minutes highlighting decisions made and action items. During the PS&E phase, a PDT meeting will be held at the onset of the phase and then subsequent meetings will be conducted at the 35%, 65%, and 95% PS&E delivery milestone to discuss review comments and other Project con-cerns, plus one additional meeting to cover miscellaneous Project matters. A total of five (5) PDT meetings have been assumed for this phase. Appropriate Subconsultants will be in attendance at up to three (3) meetings and where possible by teleconference to save cost. In addition to the face-to-face meetings teleconferences and net-meetings will be conducted as necessary, a total of twenty-four (24) man hours has been budgeted for these meetings. Additional meetings can be conducted on a time and materials basis.

• Products: Coordinate and attend PDT meetings. Includes communication (email and phone), preparing

agendas, and meeting record notes. A.3 – Presentations to City Council (1) Under this task, GHD will conduct one (1) presentation to City Council. GHD will provide presentation materials and document or follow up on action items that may follow from the comments provided by the council.

Additional meetings can be conducted on a time and materials basis.



• Products: Coordinate and attend one (1) presentation to City Council. Includes hard and electronic cop-

ies of the presentation materials. A.4 - Agency Coordination Under this task, GHD will conduct coordination meetings with the Project’s “Key” partners as well as the “Notable” Project partners as identified in Phase 1. This scope assumes two (2) meetings will be held with each key partner. For budgeting purposes it is assumed that meetings with both parks districts will be conducted together, and meetings with the County, school district and SMUD will be conducted separately, resulting in a total of 8 meetings.

• Products: Coordinate and attend Project partner coordination meetings. Includes communication (email

and phone), preparing agendas, and meeting record notes. A.5 - General QA/QC Review GHD will review the Project documentation including: Reports, Memorandums, exhibits, checklists, and PS&E. All comments from these reviews will be addresses prior to the submittal to the City. The following QA/QC reviews have been planned for this Project:

Meeting Record Notes (Project status, Project partner, and community meetings) All technical documents and reports Materials prepared for Community Outreach Project PS&E (35%, 65%, 95%, and 100% design level) Construction Bid Set (Final PS&E, permit applications)

• Products: Comments distributed to the Project Team in advance of or concurrent with submittals to the

City and/or public. Task B - Preliminary Engineering and Research B.1.3 – Preliminary Site Investigation (Aerially Deposited Lead Survey) WRECO will perform a PSI-ADL Study in shallow soil within areas proposed for excavation for the proposed bike trail. The PSI will be performed in accordance with the American Society for Testing and Materials (ASTM) International, Standard Practice for Environmental Site Assessments: Phase II Environmental Site Assessment Process, E1903-11, and Caltrans District 3 ADL study standards successfully applied in this region by WRECO. The ADL study will con-sist of a collecting shallow soil samples in areas within 50 feet of a roadway, along the trail/street crossings, to verify the presence/absence of ADL along the Project corridor. Prior to field work, WRECO will develop a sampling and analysis plan and a site-specific health and safety plan. Although leaded fuel has been prohibited in California since the 1980s, ADL from vehicle emissions may still be pre-sent in shallow exposed soils adjacent to roadways that were in use during this time period. The sampling plan for ADL will determine if lead concentrations exceed regulatory levels (greater than 80 milligrams of lead per kilogram of soil) in soil along the roadway. Samples will be taken from various depths in ADL risk areas (exposed soil areas within 50 feet of the roadway during the leaded fuel era). One boring (in exposed soil areas only) will be collected every 500 feet, over 2.9 miles, which is approximately 26 soil borings and 15 ADL borings for the project footprint. Each boring will be sampled to 5-feet below ground surface (ft bgs) using a Direct Push Technology (DPT) rig with an acetate liner. The acetate liner will be cut into specific sections, between 0-1 ft, 1-2 ft, and 2-3 ft, and analyzed for lead using EPA 6010B. Groundwater is not anticipated to be encountered during this study. Because the project is



located along the Sacramento Municipal Utility District (SMUD) electric transmission corridor, and former Ranch’s and agricultural areas, it is likely this area has been exposed to metals, polychlorinated biphenyls (PCBs), polynu-clear aromatic hydrocarbons (PNAs), Organochlorine pesticides, chlorinated herbicides, and petroleum hydrocarbons such as Total Petroleum Hydrocarbons (TPH) as motor oil, diesel, and hydraulic oil, along the Project corridor. The PSI will also prescribe waste management and worker safety measures for managing identified hazards and pre-sumed hazards such as recycled asphalt concrete waste and roadway striping waste.

• Products: Draft/Final PSI-ADL Study (PDF). • Assumptions: Access to the project area will be provided to WRECO at no-cost, City will pay for all drill-

ing fees. Final scope and delineations of limits will vary based on the results of the soil testing and budget/scope may need revisiting at a later date.

B.2 - Utility Identification GHD will coordinate with all utilities to accurately locate and map the existing utilities within the Project boundaries. The following scope of services assumes the only utility relocation work needed for the project will be adjusting man-holes and vaults to grade. Should linear underground relocation of utilities or utility pole relocation be required, a scope and fee amendment will be requested. B.2.1 - Utility Conflict Maps GHD will prepare Utility Conflict Maps in conformance with the Local Assistance Procedures Manual (LAPM) for use by the City and the utility companies in determining liability (cost share) of the utility relocations. One Conflict Map will be prepared for each utility involvement. The maps will be provided to the City. It is assumed the Relocation Letter (“B” Letter) will be prepared by the City and mailed to each utility by the City.. B.2.2 – Utility Relocation Plan Coordination This task addresses coordination of the utility relocation plans with the plans for the Project. This assumes only ad-justments to grade will be needed for the project and therefore, the project utility plans will be used as the relocation plan. GHD will coordinate with the utilities to ensure the adjustments meet their standards and incorporate details into the plan sheets. It is assumed the details provided by the utility will be able to be inserted into the plans as pro-vided and redrafting is not necessary. B.2.3 - Utility Potholing After the City’s review of the 35% plans, GHD will develop a utility potholing plan for the City’s review. Upon approval of the pothole plan, GHD will seek a minimum of two (2) and maximum of four (4) estimates from utility locating con-tractors to perform the utility potholing work for the City’s review and selection. GHD will contract with the selected utility locator to provide the potholing services. The extent of the potholing effort will be based on the selected align-ment and the existing utility location, therefore as cost for this task has not been provided. This cost is assumed to be a contract augmentation. B.2.4 - Draft Utility Agreements and Notice to Owner “C” Letters Support It is assumed the City will draft the utility agreements and Notice to Owner Letters. GHD will be available to support the City in the effort by reviewing the language and/or agreements, a maximum of six (6) man hours will be allocated for this task. B.2.5 - Utility Certification The Report of Investigation package will be done by the City and GHD will prepare and sign the Project Engineer’s Certification of Utility Facilities form. It is assumed the City will prepare the Right of Way/Utility Certification.

• Products: Utility Conflict Maps and “B” letters and certification for E-76.



Task C - Public Outreach and Engagement AIM Consulting (AIM), supported by GHD and Alta, will lead the public outreach and engagement tasks for the pro-posed Project. C.1 - Public Outreach and Management (PS&E Phase) AIM will provide strategic advice and counsel, review Project materials and reports, coordinate with the City and Pro-ject Team, and monitor team communications throughout the Project. In addition, AIM will attend coordination meet-ings by phone with the City and Project Team Staff, as needed. C.3 - Communication Collateral AIM will develop outreach materials to inform the community about the Project and the design and environ-mental review process. These materials may include information brochures, comment cards, fact sheets, and FAQ’s. A template for each collateral item will be developed consistent with a Project brand, easily up-dated, and either printed on a laser printer or distributed through electronic means. AIM will provide two ver-sions of each developed collateral material: one in English and one in Spanish.

• Products: Project webpage management and updates outreach materials (English and Spanish) Task D - Right of Way Engineering GHD and Interwest will perform right of way engineering services during the PS&E Phase. D.1 –Right of Way Mapping, Plats and Legals This budget reflects the need to acquire additional right of way/easements for one parcel. Sufficient boundary control will be located in areas identified as requiring additional right of way and used to resolve boundary lines in question. GHD will utilize these resolved boundaries to prepare legal descriptions and plats D.2 - Right of Entry Process GHD will assist the City in preparing the documents necessary for acquiring “Right-of-Entry” agreements with SRPD, ORPD, and SJUSD. It is assumed the assistance required will consist of putting together one exhibit for each en-croachment, totaling three exhibits. D.3 - Right of Way Acquisition Services Interwest will perform the planned Right of Way Acquisition Services as a part of this project. It is understood that a partial acquisition, involving one (1) permanent easement and one (1) temporary construction easement, from the property listed below is necessary to complete the Electric Greenway Trail Project. The property impacted is vested in the owner noted below: APN 224-0300-009 Jouaf and Emily Tarverdi 8265 Olivine Avenue, Citrus Heights The lnterwest team will manage the right of way services on behalf of the City from start to finish. Our appraisal sub-consultant, lntegra Realty Resources, will prepare a succinct narrative appraisal report for the subject property, and our appraisal review subconsultant, Henry Spoto, will perform the appraisal review. lnterwest will perform all acquisition services of the real property interests within the subject property identified above, which include: • Securing preliminary title report for the subject property. • Initiating and maintaining contact with the property owner and/or tenant for negotiating the acquisition. • Meeting with the impacted property owner to explain the right of way process and the project in general.



• Drafting offer letter based upon the value to be determined as Just Compensation by the City. • Preparing acquisition agreement and other necessary conveyance documents. • Providing progress reports regarding the status of all right of way activities, (e.g., appraisal, negotiations, and/or tenant interests). • Preparing the Right of Way Certification (Caltrans) Once negotiations with the property owner is complete and acquisition documents are signed, the lnterwest team will initiate the closing (escrow) process with the designated title company and work with them to clear any title issues.

• Products: right of way/easement acquisition services through Caltrans Right of Way Certification

Task E - Environmental E.4 - Mitigation and Monitoring Program (MMP) E.4.1 - MMP and Reporting Program Document Bargas will take the MMP prepared for the City’s “Bikeway Master Plan and General Plan Bikeway Map Update” and update it for Electric Greenway project specific mitigation measures as documented in the findings in from the CEQA IS and NEPA EA analysis.

Products: MMP Document.

Task F - Resource Agency Permitting There are no anticipated items of work included in Phase 2 PS&E of this Project. Refer to Phase 1 - PA/ED, Task F. If significant changes to the design require updated to the environmental permits acquired in Phase 1. Task G - Plans, Specifications, and Estimate (PS&E) GHD will prepare and package all necessary documents in order for the City to advertise, bid, and award a contract for construction of the Project. The selected alignments from Task B (incorporating input from the public in Task C) will be incorporated into the final alignment for the proposed trail. The design will be submitted to the City for review at 35%, 65%, and 95% design phases. Each phase will incorporate comments and input from the previous reviews, ultimately resulting in the Bid Package for Construction. This scope assumes the trail will only be lit in “key” locations for a total length of illumination of one (1) mile or less. G.2 - 65% PS&E Package GHD and appropriate Subconsultants will incorporate the selected alignment into a geometric design level based on the topographic mapping completed in Phase 1. The design will include horizontal and vertical alignments to estab-lish: cut/fill limits, right of way needs, impacts to creeks and waterways, preliminary wayfinding design, and prelimi-nary lighting. Landscape planting will comply with the City’s plant palate and replace landscaping impacted by construction. Y&C will prepare photometric analysis for trail lights and prepare 65% plans, specifications, and cost esti‐mates (PS&E) for PHB at Fair Oaks Blvd crossing, RRFB at Wachtel Way crossing, and street lighting at Wachtel, Villa Oaks, and Streng crossings as well as Oak Avenue where sidewalk is constructed. The 65% plan will also include lights for certain sections of trail, which will be selected by City staff. Y&C will also coordinate with SMUD in identifying the electrical service point locations.



G.2.1 - 65% Plans The following plan sheets are anticipated for 65% Plan Submittal:

Title (1) Notes (1) Demolition and Tree Removal Plans (18) Plan, Typical Section and Profile (18) Construction Details (5) Drainage Profiles (4) Retaining Wall Geometry and Aesthetic Fea-

tures (2) Pre-Fabricated Structures (2) Structural Key Sheet (1)

Structural Project Layout - Bridge (2) Structural Typical Sections (1) Structures Retaining Wall Details (1) Mid-Block Crossing (3) Pavement Delineation and signing (18) Signing Details (4) Stage Construction/Traffic Handling (8) Erosion Control (10) Lighting (Detailed Design) (10) Landscaping and Irrigation (40)

G.2.2 - 65% Specifications GHD will compile a Draft Specifications package to the City. The specifications will be compiled from the most recent versions of the County of Sacramento, Public Works Agency Improvement Standard Construction Specifications and supported by the State of California Department of Transportation Standard Specifications. G.2.3 - 65% Estimate GHD will prepare an itemized list in accordance with City Standards; including a Draft bid schedule with estimated quantities and unit prices. Unit prices will be prepared using the most recent and relevant Caltrans Cost Data, as well as the City’s recent bid prices, if available.

G.2.4 - 65% Supporting Documents The following supporting documents are anticipated for 65% PS&E Submittal:

Draft Drainage/Hydrology Report Utility Conflict Maps (Detailed) Structural Type Selection Report Preliminary Structural Design Calculations Draft Storm Water Quality Management Plan (SWQMP)

• Products: 65% PS&E, comment response/resolution letter, and supporting documents (electronic and

hard copy) G.3 - 95% PS&E Package GHD and Subconsultants will prepare the Final Draft version of the construction documents incorporating comments and input received in the 65% PS&E package. G.3.1 - 95% Plans GHD will update the plans provided at 65% PS&E and incorporate comments and modified design elements. G.3.2 - 95% Specifications GHD will update the Draft specifications provided at 65% PS&E and incorporate comments and modified design ele-ments. G.3.3 - 95% Estimate



GHD will update the detailed estimate provided at 65% PS&E and incorporate comments and modified design ele-ments. G.3.4 - 95% Supporting Documents The following supporting documents are anticipated for 95% PS&E Submittal:

Final Drainage/Hydrology Report Final SWQMP Comment Response/Resolution letter from 65% submittal comments

• Products: 95% PS&E, comment response/resolution letter, and supporting documents (electronic and

hard copy) G.4 - Final PS&E Package GHD and Subconsultants will prepare the final version of the construction documents incorporating comments and input received in the 95% PS&E package. This package will result in the Final Bid Documents. G.4.1 - Final Plans GHD will update the plans provided at 95% PS&E and incorporate comments and modified design elements. G.4.2 - Final Specifications GHD will update the Draft Specifications provided at 95% PS&E and incorporate comments and modified design ele-ments. G.4.3 - Final Estimate GHD will update the detailed estimate provided at 95% PS&E and incorporate comments and modified design ele-ments. G.4.4 - Supporting Documents The following supporting documents are anticipated for 95% PS&E Submittal:

Final Drainage/Hydrology Report Comment response/resolution letter from 95% submittal comments

• Products: Final Bid Documentation, including PS&E, comment response/resolution letter, and support-

ing documents (electronic and hard copy) G.5 - Encroachment Permits The City will obtain all encroachment permits.

Task H - Bidding and Construction Assistance GHD will assist the City during the bidding phase and provide construction support necessary for the successful com-pletion of the Project. It is assumed that GHD will serve as support to City or other third party staff who will administer and oversee the construction of the Project (Resident Engineer and Inspections). The following tasks are anticipated to provide the support during bidding and construction. H.1 - Pre-Bid Meeting GHD will attend the pre-bid meeting to answer any technical questions and explain key design issues.

• Products: Written responses to Bidder’s technical questions



H.2 - Requests for Information and Addenda Preparation GHD will assist City staff by answering technical questions from potential bidders. If necessary, provide Draft ad-denda to the bid package for the City’s approval and release of the revised information. For budgeting purposes, it is assumed one (1) addendum will be prepared by GHD. Products: Written responses to Bidder’s technical questions. One (1) Bid Package Addendum H.3 - Construction Submittal Reviews Although the Resident Engineer (RE) typically reviews most material submittals, GHD will review specific material submittals for specialty items and substitutions as requested by the RE. For budget purposes, a total of twenty (20) submittals have been budgeted. Products: Review of up to twenty (20) specialty submittals H.4 - Support of Contract Change Orders GHD will provide advice and technical support for Construction Contract Change Orders (CCOs). For budget pur-poses, a total of ten (10) CCOs have been budgeted. Products: Review of up to ten (10) CCOs.

Local Assistance Procedures Manual EXHIBIT 10-H1

Cost Proposal

Note: Markups are Not Allow Prime Consultant Subconsultant 2nd Tier SubconsultantConsultant GHD Inc. Contract No. 20-18-002 Date 12/20/2019Consultant OMNI-MEANS, A GHD COMPANY Contract No. 20-18-002 Date 5/30/2018

DIRECT LABORhours Actual Hourly Rate Total

12 $ 102.99 1,235.88$

212 $ 71.46 15,149.52$

262 $ 59.06 15,473.72$

2 $ 52.36 104.72$

30 $ 63.62 1,908.60$

256 $ 39.42 10,091.52$

280 $ 38.87 10,883.60$

236 $ 38.46 9,076.56$

116 $ 28.13 3,263.08$

40 $ 52.21 2,088.40$

2 $ 47.27 94.54$

4 $ 63.57 254.28$

12 $ 27.85 334.20$

4 $ 20.00 80.00$ LABOR COSTSa) Subtotal Direct Labor Costs $71,127.10b) Anticipated Salary Increases (see page 2 for calculation) $1,422.54

c) TOTAL DIRECT LABOR COSTS [(a) + (b)] $72,549.64

INDIRECT COSTSd) Fringe Benefits (Rate: 33.8%) e) Total Fringe Benefits [(c) x (d)] $24,521.78f) Overhead & G&A (Rate: 133.18%) g) Overhead [(c) x (f)] $96,621.61h) General and Administrative (Rate: %) i) Gen & Admin [(c) x (h)] $0.00

j) TOTAL INDIRECT COSTS [(e) + (g) + (i)] $121,143.39

FIXED FEE k) TOTAL FIXED FEE [(c) + (j)] x fixed fee 10.0%] 19,369.30$

l) CONSULTANT'S OTHER DIRECT COSTS (ODC) - ITEMIZE (Add additional pages if necessary)Quantity Unit Unit Cost Total

0 mile 0.545 -$ 1 LS $0.00 -$

200 ea $0.12 24.00$ 500 ea $0.25 125.00$

0 ea $35.00 -$ 0 ea $1.25 -$

l) TOTAL OTHER DIRECT COSTS 149.00$

m) SUBCONSULTANT'S COSTS (Add additional pages if necessary)Subconsultant 1: Interwest Consulting 16,045.00$ Subconsultant 2: AIM Consulting 2,757.00$ Subconsultant 2: Alta Planning & Design 54,306.00$ Subconsultant 3: WRECO 47,318.64$ Subconsultant 4: Y&C Transportation 51,500.00$ Subconsultant 5: Bargas Environmental Group 1,524.81$

m) TOTAL SUBCONSULTANTS' COSTS 173,451.45$

n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l)+(m)] 173,600.45$

TOTAL COST [(c)+(j)+(k)+(n)] 386,662.78$

NOTES:ꞏ Employees subject to prevailing wage requirements to be marked with an *.ꞏ ODC items should be based on actual costs and supported by historical data and other documentation.ꞏ ODC items that would be considered “tools of the trade” are not reimbursable.ꞏ ODC items should be consistently billed directly to all clients, not just when client will pay for them as a direct cost.ꞏ ODC items when incurred for the same purpose, in like circumstances, should not be included in any indirect

cost pool or in overhead rate.

Plots (Color oversize)Plots (24"x36")

Brian Howard

Copies (11x17")

Administration Various

Description of ItemMileagePostageCopies (8.5x11)

Survey Technician Jackie Bohannon

Haytham DaasEngineer Steffen BerrEngineer Cristen Alvarez

Survey Manager

Snr. Enviro. Planner Brian BaccariniSnr. Engineer Heather Anderson

Engineer Kevin San

Engineer Nathan TowlertonEnviro. Planner Chryss Meier

Engineer

EXHIBIT 10-H1 COST PROPOSAL Page 1 of 3ACTUAL COST-PLUS-FIXED FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS

(DESIGN, ENGINEERING AND ENVIRONMENTAL STUDIES)

Costs for Phase 2 - PS&E

Classification/Title Name

Principal Douglas RiesProject Manager Lindsey VanParys

Assistant PM Daniel Kehrer

X

1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours)

Avg Hourly 2 Year Contract Rate Duration

$71,127.10 = $47.04 Year 1 Avg Hourly Rate

2. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation %)

Avg Hourly Rate

Year 1 $47.04 + = $49.39 Year 2 Avg Hourly RateYear 2 $49.39 + = $51.86 Year 3 Avg Hourly RateYear 3 - + = - Year 4 Avg Hourly Rate

Total Hours per Year

Year 1 60.00% * = 907.2 Estimated Hours Year 1Year 2 40.00% * = 604.8 Estimated Hours Year 2Year 3 0.00% * = 0.0 Estimated Hours Year 3

Total 100% = 1512.0

Year 1 $47.04 * = $42,676.26 Estimated Hours Year 1Year 2 $49.39 * = $29,873.38 Estimated Hours Year 2Year 3 $51.86 * = $0.00 Estimated Hours Year 3

= $72,549.64 = $71,127.10 = Transfer to Page 1

Increase $1,422.54

NOTES:1 This is not the only way to estimate salary increases. Other methods will be accepted if they clearly

indicate the % increase, the # of years of the contract, and a breakdown of the labor to be performed each yr. 2 An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years

is not acceptable. (i.e. $250,000 x 2% x 5 yrs = $25,000 is not an acceptable methodology)3 This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted.4 Calculations for anticipated salary escalation must be provided

Estimated Total of Direct Labor Salary

907605

0

Direct Labor Subtotal before Escalation

1512.0

Total Direct Labor Cost with Escalation

1512.0

4. Calculate Total Costs including Escalation (Multiply Average Hourly Rate by the number of hours)

Avg Hourly Rate Estimated hours Cost per Year(calculated above) (calculated above)

Estimated % Total Hours Completed Each Year per Cost Proposal

3. Calculate estimated hours per year (Multiply estimate % each year by total hours)

Direct Labor Subtotal Total Hoursper Cost Proposal per Cost Proposal

1,512

Proposed Escalation

5%5%

EXHIBIT 10-H1 COST PROPOSAL PAGE 2 OF 3

ACTUAL COST-PLUS-FIXED FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS(CALCULATIONS FOR ANTICIPATED SALARY INCREASES

Local Assistance Procedures Manual EXHIBIT 10-H1Cost Proposal

Prime Consultant Subconsultant 2nd Tier Subconsultant

Consultant: AIM Consulting, Inc.

Project No. Contract No. Date 1/8/2020

Hours Actual Hourly Rate Total8.00 48.08$ 384.64$ 1.00 35.00$ 35.00$ 0.00 36.50$ -$ 7.00 26.44$ 185.08$ 3.00 19.95$ 59.85$ 2.00 16.92$ 33.84$

LABOR COSTS698.41$

c) TOTAL DIRECT LABOR COSTS [(a) + (b)] 698.41$ INDIRECT COSTS

31% ) e) Total Fringe Benefits [(c) x (d)] 216.51$ 160% ) g) Overhead [(c) x (f)] 1,117.46$ 64% ) i) Gen & Admin [(c) x (h)] 446.98$

j) TOTAL INDIRECT COSTS [(e) + (g) + (i)] 1,780.95$ FIXED FEE k) TOTAL FIXED FEE [(c) + (j)] x fixed fee: 10% 247.94$

l) CONSULTANT'S OTHER DIRECT COSTS (ODC) - ITEMIZE (Add additional pages if necessary)Quantity Unit Unit Cost Total

55.00 per mile 0.545$ 29.98$ -$ -$ -$ -$ -$ -$

l) TOTAL OTHER DIRECT COSTS 29.98$

m) SUBCONSULTANTS' COSTS (Add additional pages if necessary)-$ -$ -$ -$

m) TOTAL SUBCONSULTANTS' COSTS -$

n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l) + (m)] 29.98$ TOTAL COST [(c) + (j) + (k) + (n)] 2,757.27$

NOTES:1.

2.

3.

Page 1 of 3

Anticipated salary increases calculation (page 2) must accompany.

ATPSB1L-5475(042)

DIRECT LABORClassification/Title NameOutreach Manager Gladys CornellGraphics Designer

Electronic Communications DesignerSenior Project Coordinator

Project CoordinatorProject Administrator

a) Subtotal Direct Labor Costsb) Anticipated Salary Increases (see page 2 for calculation)

d) Fringe Benefits (Rate: f) Overhead & G&A (Rate: h) General & Admin (Rate:

Description of ItemMileage / Parking

Subconsultant 1:Subconsultant 2:Subconsultant 3:

Key personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two asterisks (**). All costs must comply with the Federal cost principles. Subconsultants will provide their own cost proposals.

The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant's annual accounting period and established by a cognizant agency or accepted by Caltrans.

Subconsultant 4:

Note: Mark-ups are Not Allowed

StaffStaffStaffStaffStaff

X

Consultant

Project No. Contract No. Date 4/10/2018


Avg Hourly 5 Year Contract

Rate Duration

$ 698.41 = $ 33.26 Year 1 Avg Hourly Rate

Avg Hourly Rate

Year 1 $ 33.26 + = $ 33.26 Year 2 Avg Hourly Rate




Total Hours

per Year

Year 1 20.00% * = 4.2 Estimated Hours Year 1





Total 100% = 21.0

Year 1 * = $ - Estimated Hours Year 1





= $ -

= $ 698.41

= $ (698.41) Transfer to Page 1

NOTES:1.

2.

3.

4.

Page 2 of 3

ATPSB1L-5475(042)

Calculations for anticipated salary escalation must be provided.

This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the # of years of the contract, and a breakdown of the labor to be performed each year.

An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years is not acceptable. (i.e. $250,000 x 2% x 5 yrs = $25,000 is not an acceptable methodology).

This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted.

21.0

Direct Labor Subtotal Total Hours

AIM Consulting, Inc.

CALCUATIONS FOR ANTICIPATED SALARY INCREASES

per Cost Proposal per Cost Proposal

21


Proposed Escalation


Estimated % Total Hours

Completed Each Year per Cost Proposal

21.0

21.0


Estimated total of Direct Labor Salary Increase


Avg Hourly Rate Estimated hours Cost per Year

(calculated above) (calculated above)

21.0

Total


21.0

I, the undersigned, certify to the best of my knowledge and belief that all direct costs identified on the cost proposal(s) in this contractare actual, reasonable, allowable, and allocable to the contract in accordance with the contract terms and the following requirements:

1. Generally Accepted Accounting Principles (GAAP)2. Terms and conditions of the contract3. Title 23 United States Code Section 112 - Letting of Contracts4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Proceedures5. 23 Code of Federal Regulations Part 172 - Procurement, Management and Administration of Engineering and Design Related Service6. 48 Ccode of Federal Regulations Part 9904 - Cost Accounting Standards Board (when applicable)

All costs must be applied consistently and fairly to all contracts. All documentation of compliance must be retained in the project filesand be in compliance with applicable federal and state requirements. Costs that are noncompliant with the federal and state requirementsare not eligible for reimbursement.Local governments are responsible for applying only cognizant agency or Caltrans accepted Indirect Cost Rate(s).

List services the consultant is providing under the proposed contract:

Public outreach and community engagement, including:-Outreach Management-Communication Collateral-Project Webpage

Certification of Direct Costs:

Prime Consultant or Subconsultant Certifying:

* An individual executive or financial officer of the consultant's or subconsultant's organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

Name: ____Gladys Cornell____________________________________________

Signature: _________________________________________________

Email: [email protected]_______________________________

Title *: ___President_____________________________________

Date of Certification: ___4/12/18____________________________

Phone number: ____(916) 442-1168______________________

Address: ___2523 J Street, Suite 202, Sacramento, CA 95816__________________________________________________________

Local Assistance Procedures Manual Exhibit 10-H1

Cost Proposal

Prime Consultant X Subconsultant 2nd Tier SubconsultantNote: Mark-ups are Not Allowed

Consultant

Project No. Contract No. PO #11179688 Date 1/8/2020

DIRECT LABOR

LABOR COSTSa) Subtotal Direct Labor Costs $16,715.98b) Anticipated Salary Increases (see page 2 for calculations) $716.28

c) TOTAL DIRECT LABOR COSTS [(a) + (b)] $17,432.26INDIRECT COSTSd) Fringe Benefits (Rate 42.23% ) e) Total Fringe Benefits [(c) x (d)] $7,361.64f) Overhead (Rate 138.37% ) g) Overhead [(c) x (f)] $24,121.02h) General and Administrative (Rate: 0.00% ) Gen & Admin [(c) x (h)] $0.00

j) TOTAL INDIRECT COSTS [(e) + (g) + (i)] $31,482.66

FIXED FEE k) TOTAL FIXED FEE [(c) + (j)] x fixed fee 10.00% ] $4,891.49

l) CONSULTANT’S OTHER DIRECT COSTS (ODC) – ITEMIZE (Add additional pages if necessary)Unit Cost

$500$0$0$0$0

l) TOTAL OTHER DIRECT COSTS $500

m) SUBCONSULTANTS’ COSTS (Add additional pages if necessary) Subconsultant 1: $0 Subconsultant 2: $0 Subconsultant 3: $0 Subconsultant 4: $0

m) TOTAL SUBCONSULTANTS’ COSTS $0

n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l)+(m)] $500

TOTAL COST [(c) + (j) + (k) + (n)] $54,306NOTES:

3. Anticipated salary increases calculation (page 2) must accompany.

Page 1 of 9

January 2018

1. Key personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two asterisks (**). All costs must comply with the Federal cost principles. Subconsultants will provide their own cost proposals.2. The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant’s annual accounting period and established by a cognizant agency or accepted by Caltrans.

$500$0$0$0$0

Equipment Rental and SuppliesPermit FeesPlan SheetsTest

1Description of Item Quantity Unit Total

Mileage Costs EACH

$1,589.06$6,541.92$4,620.00$3,965.00

$72.23$45.43$35.00$32.50

22144132122Designer Molly McNally

Principal* Emily DuchonProject Manager* Brian BurchfieldSenior Designer Ryan Booth

EXHIBIT 10-H1 COST PROPOSAL PAGE 1 OF 3ACTUAL COST-PLUS-FIXED FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS


Classification/Title Name

Alta Planning + Design, Inc.

Hours Actual Hourly Rate Total

Citrus Heights Electric Greenway

Local Assistance Procedures Manual Exhibit 10-H1

Cost Proposal

1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) 43838

Avg Hourly 5 Year Contract Rate Duration

$16,715.98 = 39.79995238 Year 1 Avg Hourly Rate

Avg Hourly Rate Year 1 $39.80 + = $41.79 Year 2 Avg Hourly RateYear 2 $41.79 + = $43.88 Year 3 Avg Hourly RateYear 3 $43.88 + = $46.07 Year 4 Avg Hourly RateYear 4 $46.07 + = $48.38 Year 5 Avg Hourly Rate

Total Hours per Year

Year 1 29.00% * = 121.8 Estimated Hours Year 1Year 2 57.00% * = 239.4 Estimated Hours Year 2Year 3 14.00% * = 58.8 Estimated Hours Year 3Year 4 0.00% * = 0.0 Estimated Hours Year 4Year 5 0.00% * = 0.0 Estimated Hours Year 5

Total 100% = 420.0

Year 1 $39.80 * = $4,847.63 Estimated Hours Year 1Year 2 $41.79 * = $10,004.51 Estimated Hours Year 2Year 3 $43.88 * = $2,580.11 Estimated Hours Year 3Year 4 $46.07 * = $0.00 Estimated Hours Year 4Year 5 $48.38 * = $0.00 Estimated Hours Year 5

= $17,432.26

= $16,715.98

= $716.28 Transfer to Page 1

NOTES: This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase,

the # of years of the contract, and a breakdown of the labor to be performed each year. An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years is not acceptable.

(i.e. $250,000 x 2% x 5 yrs = $25,000 is not an acceptable methodology) This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted. Calculations for anticipated salary escalation must be provided.

Page 2 of 9

January 2018

EXHIBIT 10-H1 COST PROPOSAL PAGE 2 OF 3

ACTUAL COST-PLUS-FIXED FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS(CALCULATIONS FOR ANTICIPATED SALARY INCREASES)


2. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation %

Cost per Year


Direct Labor Subtotal before EscalationEstimated total of Direct Labor Salary

Increase

5900

(calculated above)Avg Hourly Rate(calculated above)

122239

Estimated hours


Total Hours

420

Proposed Escalation 5%5%5%5%

Direct Labor Subtotalper Cost Proposal per Cost Proposal

Total Hours per Cost ProposalCompleted Each Year

Estimated %

420.0420.0420.0420.0

Total420.0

Local Assistance Procedures Manual Exhibit 10-HCost Proposal

Page 1 of 3

Note: Mark-ups are Not Allowed ☐ Prime Consultant ☒ Subconsultant ☐ 2nd

Tier Subconsultant

Consultant: Project No.: Contract No.: Date: 1/8/2020

DIRECT LABOR

Actual Hourly Rate

98.24$ 81.23$ 71.86$ 64.67$ 45.06$ 28.81$ 30.90$ 26.85$

LABOR COSTSa) Subtotal Direct Labor Costsb) Anticipated Salary Increases (see page 2)

7,218.46$

INDIRECT COSTSd) Fringe Benefits Rate: 71.95% 5,193.68$ f) Overhead Rate: 40.10% 2,894.60$ h) General and Administrative Rate: 28.10% 2,028.39$

10,116.67$

FIXED FEE Rate: 10.00% 1,733.51$

l) CONSULTANT’S OTHER DIRECT COSTS (ODC) – ITEMIZE Description Quantity Unit(s) Unit Cost Total

517 Miles 0.580$ 300.00$ 2 EA 75.00$ 150.00$ 4 EA 25.00$ 100.00$ 1 LS 1,200.00$ 1,200.00$ 1 LS 13,500.00$ 13,500.00$ 1 LS 13,000.00$ 13,000.00$

LS -$ -$

28,250.00$ m) SUBCONSULTANTS’ COSTS

Subconsultant 1: -$ -$

n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS 28,250.00$

47,318.64$

NOTES:

Page 1LPP 17-01

Associate Engineer60

1,982.75$ TBDTBD

81.23$

Senior Geologist TBD 18 1,164.13$ TBD

TBD 58 1,792.20$ Staff Geologist1,728.55$ Staff Environmental Scientist

6

January 2018

EXHIBIT 10-H1 COST PROPOSAL

Travel/Mileage/Vehicle (supported by consultant

actual costs)ReproductionsOvernight Delivery/Shipment

Name

Han-Bin Liang

7,008.21$ 210.25$

161.11$

ACTUAL COST-PLUS-FIXED-FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS


Total

98.24$

-$

i) Gen & Adminj) TOTAL INDIRECT COSTS

k) TOTAL FIXED FEE

1. Key personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two

asterisks (**). All costs must comply with the Federal cost principles. Subconsultants will provide their own cost proposals.

2. The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant’s

annual accounting period and established by a cognizant agency or accepted by Caltrans.


WRECO

HoursClassification/Title

Principal Engineer

Senior Geotechnical Engineer

1

0Supervising Engineer TBD 1

44

TOTAL COST

m) TOTAL SUBCONSULTANTS’ COSTS

Technical Editor

Permitting/Drilling InspectionLaboratory Testing (PSI)

Potholing & Roadway Patching

TBD

Drilling/Field Sampling (PSI)

e) Total Fringe Benefits

l) TOTAL OTHER DIRECT COSTS

c) TOTAL DIRECT LABOR COSTS

g) Overhead

Local Assistance Procedures Manual Exhibit 10-H

Cost Proposal


5 YearContractDuration

=


Year 1 + =Year 2 + =Year 3 + =Year 4 + =


Year 1 * =Year 2 * =Year 3 * =Year 4 * =Year 5 * =

Total =


Year 1 * =Year 2 * =Year 3 * =Year 4 * =Year 5 * =

===

NOTES:

Page 2

LPP 17-01

Page 2 of 3EXHIBIT 10-H1 COST PROPOSAL

ACTUAL COST-PLUS-FIXED-FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS

(SAMPLE CALCULATIONS FOR ANTICIPATED SALARY INCREASES)

AvgHourlyRate37.28 Year 1 Avg

Proposed Escalation3%3%3%3%

Hourly Rate

Direct LaborSubtotal per Cost

Proposal$7,008.21

Total Hours perCost Proposal

188.0

Avg Hourly Rate

Each Year Proposal0.0% 188.00 0.00 Estimated Hours Year 1

$38.40$39.55$40.73$41.96

Year 2 Avg Hourly RateYear 3 Avg Hourly RateYear 4 Avg Hourly RateYear 5 Avg Hourly Rate

$37.28$38.40$39.55$40.73

100% Total 188.0

Estimated % Completed Total Hours per Cost Total Hours perYear

0.0% 188.00 0.00 Estimated Hours Year 40.0% 188.00 0.00 Estimated Hours Year 5

100.0% 188.00 188.00 Estimated Hours Year 20.0% 188.00 0.00 Estimated Hours Year 3

$37.28 0.00 $0.00 Estimated Hours Year 1$38.40 188.00 $7,218.46 Estimated Hours Year 2

Avg Hourly Rate Estimated hours Cost per(calculated above) (calculated above) Year

$41.96 0.00 $0.00 Estimated Hours Year 5

$39.55 0.00 $0.00 Estimated Hours Year 3$40.73 0.00 $0.00 Estimated Hours Year 4

January 2018

1. This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the # of

years of the contract, and a breakdown of the labor to be performed each year. 2. An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years is not acceptable.

(i.e. $250,000 x 2% x 5 yrs = $25,000 is not an acceptable methodology)

3. This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted.4. Calculations for anticipated salary escalation must be provided.

Total Direct Labor Cost with EscalationDirect Labor Subtotal before Escalation

Estimated total of Direct Labor SalaryIncrease

$7,218.46$7,008.21

$210.25Transfer to Page 1

Local Assistance Procedures Manual Exhibit 10-H

Cost Proposal


1. Generally Accepted Accounting Principles (GAAP)2. Terms and conditions of the contract3. Title 23 United States Code Section 112 - Letting of Contracts4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Procedures5. 23 Code of Federal Regulations Part 172 - Procurement, Management, and Administration of Engineering and Design Related Service 6. 48 Code of Federal Regulations Part 9904 - Cost Accounting Standards Board (when applicable)

Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Rate(s).


Name: Han-Bin Liang, Ph.D., P.E. Title:

Signature: Date of Certification (mm/dd/yyyy):

Email: [email protected] Phone Number:

Address: 1243 Alpine Road, Suite 108, Walnut Creek, CA 94596


Page 3

LPP 17-01

EXHIBIT 10-H1 COST PROPOSAL Page 3 of 3

January 2018

I, the undersigned, certify to the best of my knowledge and belief that all direct costs identified on the cost proposal(s) in this contract are actual, reasonable,

allowable, and allocable to the contract in accordance with the contract terms and the following requirements:

All costs must be applied consistently and fairly to all contracts. All documentation of compliance must be retained in the project files and be in compliance with

applicable federal and state requirements. Costs that are noncompliant with the federal and state requirements are not eligible for reimbursement.

*An individual executive or financial officer of the consultant’s or subconsultant’s organization at a level no lower than a

Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information

utilized to establish the cost proposal for the contract.

Preiminary Site Investigation & PSI Report

1/8/2020

President

(925) 941-0017

https://www.gpo.gov/fdsys/pkg/USCODE-2011-title23/pdf/USCODE-2011-title23-chap1-sec112.pdf

http://www.ecfr.gov/cgi-bin/text-idx?SID=7d7984e723af183358e1cb797a78877f&mc=true&node=sp48.1.31.31_12&rgn=div6

http://www.ecfr.gov/cgi-bin/text-idx?rgn=div5&node=23:1.0.1.2.3

https://www.gpo.gov/fdsys/pkg/CFR-2010-title48-vol7/xml/CFR-2010-title48-vol7-part9904.xml

mailto:[email protected]

Local Assistance Procedures Manual EXHIBIT 10-H1

Cost Proposal

Note: Mark-ups are Not Allowed | | Prime Consultant

Consultant: Y&C Transportation Consultants, Inc.

Project No. 20-18-002 Contract No.

DIRECT LABOR

J Subconsultant [ j 2nd Tier Subconsultant

ATPSBIL-5475(042) Date 12/10/2019

Classification/Title

Engineer XII

Engineer XI

Engineer VII

Engineer VI

Engineer II

Engineer I

Technician II

Name

Daniel Yau

Kin Chan

Ernesto Casillas

Meng Yang

Randy Tun

Shannon Liao

William Chan

Hours

20.0

78.0

74.0

71.0

86.0

85.0

96.0

Actual Hourly Rate

$ 99.68

$ 92.18

$ 63.00

$ 55.00

$ 32.00

$ 31.00

$ 18.00

Total

$ 1,993.60

$ 7,190.04

$ 4,662.00

$ 3,905.00

$ 2,752.00

$ 2,635.00

$ 1,728.00

$

$

$

LABOR COSTS

a) Subtotal Direct Labor Costs

b) Anticipated Salary Increases (see page 2 for calculation)

24,865.64

c) TOTAL DIRECT LABOR COSTS [(a) + (b)] $

INDIRECT COSTS

d) Fringe Benefits

f) Overhead & G&A

h) General & Admin

(Rate:

(Rate:

(Rate:

51.98%

35.44%

0%

e) Total Fringe Benefits [(c) x (d)] $ 12,925.16

g) Overhead [(c) x (f)] $ 8,812.38

i) Gen & Admin [(c) x (h)] $

24,865.64

FIXED FEE

j) TOTAL INDIRECT COSTS [(e) + (g) + (!)]_$ 21,737.53

k) TOTAL FIXED FEE [(c) + (j)] x fixed fee: 10% $ 4^60.32

I) CONSULTANT'S OTHER DIRECT COSTS (ODC) - ITEMIZE (Add additional pages if necessary)

Description of Item

Auto Mileage

Express Mail

Outside Copying

Quantity

250

1

1

Unit

Mile '

each

each

Unit Cost

$ 0.580

$ 50.00

$ 41.51

Total

$ 145.00

$ 50.00

$ 41.51

$

$

$

I) TOTAL OTHER DIRECT COSTS $

m) SUBCONSULTANTS1 COSTS (Add additional pages if necessary)

Subconsultant 1:

Subconsultant 2:

Subconsultant 3:

Subconsultant 4:

m) TOTAL SUBCONSULTANTS' COSTS $

n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(I) + (m)] $

TOTAL COST [(c) + (j) + (k) + (n)] $

236.51

236.51

51,500.00NOTES:

1. Key personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with twoasterisks (**). All costs must comply with the Federal cost principles. Subconsultants will provide their own cost proposals.

2. The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant's- annual accounting period and established by a cognizant agency or accepted by Caltrans.


Page 1 of 3

CALCUATIONS FOR ANTICIPATED SALARY INCREASES

Consultant Y&C Transportation Consultants, Inc.

Project No. 20-18-002 Contract No. ATPSBIL-5475(042) Date 12/10/2019


Direct Labor Subtotal

per Cost Proposal

$ 24,865.64

Total Hours

per Cost Proposal

510

Avg Hourly 5 Year Contract

Rate Duration

48.76 Year 1 Avg Hourly Rate


Yearl

Year 2

Year3

Year 4

Avg Hourly Rate

$ 48.76

$ 48.76

$ 48.76

$ 48.76

Proposed Escalation

0%

0%

0%

0%






Estimated %

Completed Each Year

Year 1 50.00%

Year 2 40.00%

Years 10.00%

Year 4 0.00%

Year 5 0.00%

Total 100%

Total Hours

per Cost Proposal

510.0

510.0

510.0

510.0

510.0

Total

Total Hours

per Year

255.0

204.0

51.0

0.0

0.0

510.0

Estimated Hours Year 1






Avg Hourly Rate Estimated hours

(calculated above) (calculated above)

Yearl $ 48.76 * 255

Year 2 $ 48.76 * 204

YearS $ 48.76 * 51

Year 4 $ 48.76 * 0

Years $ 48.76 * 0



Estimated total of Direct Labor Salary Increase

Cost per Year

$

$

$

$

$

12,432.82 Estimated Hours Year 1



- Estimated Hours Year 4

- Estimated Hours Year 5

24,865.64

24,865.64

- Transfer to Page 1

NOTES:1. This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the # of years of the contract, and a

breakdown of the labor to be performed each year.

2. An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years is not acceptable, (i.e. $250,000 x 2% x 5 yrs = $25,000 is notan acceptable methodology).

3. This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted.

4. Calculations for anticipated salary escalation must be provided.

Page 2 of 3


I, the undersigned, certify to the best of my knowledge and belief that all direct costs identified on the cost proposal(s) in this contract

are actual, reasonable, allowable, and allocable to the contract in accordance with the contract terms and the following requirements:

1. Generally Accepted Accounting Principles (GAAP)

2. Terms and conditions of the contract

3. Title 23 United States Code Section 112 - Letting of Contracts

4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Proceedures

5. 23 Code of Federal Regulations Part 172 - Procurement, Management and Administration of Engineering and

Design Related Service

6. 48 Ccode of Federal Regulations Part 9904 - Cost Accounting Standards Board (when applicable)

All costs must be applied consistently and fairly to all contracts. All documentation of compliance must be retained in the project files

and be in compliance with applicable federal and state requirements. Costs that are noncompliant with the federal and state requirements

are not eligible for reimbursement.

Local governments are responsible for applying only cognizant agency or Caltrans accepted Indirect Cost Rate(s).


Name: Daniel Yau Title*: President

Signature: I Date of Certification: December 10, 2019

Email: [email protected] Phone number: (916) 366-8000x305

Address: 3250 Ramos Circle. Sacramento. CA 95827

* An individual executive or financial officer of the consultant's or subconsultant's organization at a level no lower than a VicePresident or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish thecost proposal for the contract.


Prepare electrical plans, specifications, and cost estimates for Pedestrian Flashing Beacons, Rectangular Rapid Flashing Beacons, and trail &street lights.

Page 3 of 3

PrincipalRies

Project Manger

Van Parys

Assist. PM

Kehrer

Enviro. Bacciarini

EngineerAnderson

Engineer San

EngineerDaas

EngineerBerr

EngineerAlvarez

EngineerTowlerton

Enviro. PlannerMeier

Survey ManagerHoward

Survey Tech.

BohannonAdmin

$ 302.46 $ 209.86 $ 173.45 $ 153.77 $ 186.84 $ 115.77 $ 114.15 $ 112.95 $ 82.61 $ 153.33 $ 138.82 $ 186.69 $ 81.79 $ 58.74 ITEM OF WORK DESCRIPTION

$ 48,936.82

A.1 Project Management 4 60 24 88 $ 17,964.24

A.2 Progress Meetings (5 Meetings + 24 hrs for Teleconf.) 32 32 16 80 $ 14,092.32

A.3 Presentation to City Council (1) 2 2 2 6 $ 884.10

A.4 Agency Coordination (8 meetings) 24 32 56 $ 10,587.04

A.5 Quality Assurance/Quality Control 8 16 24 $ 5,409.12

$ 26,086.16

B.1 Geotechnical 0 $ -

1.2 Geotechnical Engineering Study Report 0 $ -

1.3 Phase 2 PSI 0 $ - $ 19,068.64

B.2 Utility Identification 0 $ -

2.1 Utility Conflict Maps 2 4 8 16 30 $ 3,833.92

2.2 Utility Relocation Plan Coordination 2 4 8 14 $ 2,026.72

2.4 Draft Utility Agreements and Notice to Owner "C" Letter Support 2 4 6 $ 809.98

2.5 Utility Certification 2 2 $ 346.90

$ 4,333.06

C.1 Outreach Management 2 2 4 $ 766.62 $ 1,455.00

C.3 Communication Collateral 4 4 $ 839.44 $ 1,272.00

$ 20,976.70 D.1 Right of Way Mapping, Plats and Legals 2 2 4 12 64 $ 2,494.86 D.2 Right of Entry Process 4 4 8 16 $ 2,436.84

D.3 Right of Way Acquisition Services 0 $ - $ 16,045.00

$ 2,529.71

E4.1 Mitigation Monitoring Program and Reporting Document 2 2 2 6 $ 1,004.90 $ 1,524.81

$ -

$ 241,697.78

G.2 65% PS&E Package 40 8 48 $ 9,889.12 $ 18,890.00 $ 26,000.00

2.1 65% Plans 40 72 72 72 16 8 280 $ 34,173.04

2.2 65% Specifications 24 24 24 8 80 $ 10,584.48

2.3 65% Estimate 8 16 24 48 $ 5,924.80

2.4 65% Supporting Documents 24 16 24 20 60 16 160 $ 18,423.60

G.3 95% PS&E Package 24 4 28 $ 5,784.00 $ 20,110.00 $ 15,000.00

3.1 95% Plans 16 40 40 48 16 8 168 $ 19,942.00

3.2 95% Specifications 4 32 16 52 $ 6,224.84

3.3 95% Estimate 8 8 8 12 4 40 $ 4,831.60

3.4 95% Supporting Documents 4 12 8 16 40 $ 4,803.44

G.4 Final PS&E Package 8 2 2 12 $ 2,170.04 $ 14,806.00 $ 7,500.00

4.1 Final Plans 4 12 16 24 12 4 72 $ 8,224.88

4.2 Final Specifications 8 16 8 32 $ 4,153.12

4.3 Final Estimate 2 4 4 10 $ 1,266.58

4.4 Final Supporting Documents 4 12 8 24 $ 2,996.24

$ 5,799.82

H.1 Pre-Bid Meeting 2 2 4 $ 766.62

H.2 Requests for Information and Addenda Preparation 2 4 4 4 14 $ 2,033.20 $ 3,000.00

$ 149.00 $ 30.00 $ 500.00 $ 28,250.00 $ 28,929.00

$ 7,022.62

SUB-TOTAL HOURS 12 212 262 2 30 256 280 236 116 40 2 4 12 4 1512 $ 205,837.60 $ 16,045.00 $ 2,757.00 $ 54,306.00 $ 47,318.64 $ 51,500.00 $ 1,524.81 $ 386,311.67

TOTAL NOT-TO-EXCEED COST $ 386,662.78 Total from 10-H Form

AIM Consulting

Public Outreach

Task A: Project Management and Coordination

Task I: Direct Costs

Task H: Bidding and Construction Assistance

Task B: Preliminary Engineering and Research

Task C: Public Outreach and Management

Task G: Plans, Specifications, and Estimate (PS&E)

Task F: Resource Agency Permitting

Task E: Environmental

Task D: Right of Way Mapping (Right of Way Funding)

Rate Increases

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LABOR RATE

GHD Subconsultant Staffing

Cost Proposal for Phase 2 - PS&E

Total Hours

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Group

Alta Planning & DesignPreliminary

Engineering & Landscaping

WRECOGeotech. /

Hydrology & Hydraulics

Y&C Transport-ation Consultants

Electrical

Bargas Envion-mental

ConsultingEviro.

Services



MEMORANDUM



FROM: Katherine Cooley, Assistant to the City Manager

SUBJECT: Contract Amendment for Professional Services with the Lew Edwards Group


On April 22, 2019, the City Manager executed an Agreement with the Lew Edwards Group in an amount not to exceed $50,000 to conduct polling and public outreach related to developing a community outreach process to gauge community priorities and gathering community feedback for maintaining essential services, local control, and fiscal stability. Staff recommends the Council approve an Agreement amendment for $53,500 to expand and further localize this process. This item accomplishes a City Council Strategic Planning goal to “identify and launch an initial outreach process to gauge community priorities for maintaining essential services and fiscal stability” from both the April 2019 and October 2019 strategic planning sessions.

Staff recommends the City Council adopt Resolution No. 2020-___ A Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute a contract amendment with The Lew Edwards Group.

Fiscal Impact

Funding for the Agreement and proposed amendment for $103,500 is included in the FY 2019/20-20/21 budget in the General Fund (Non-Departmental - Fund 100).

Background and Analysis

The City of Citrus Heights has a long history of fiscal responsibility while still providing excellent quality-of-life services that residents expect and deserve. In order to further this philosophy, the City Council developed a strategic planning goal at its April 24, 2019 retreat to “identify and launch an initial outreach process to gauge community priorities for maintaining essential services and fiscal stability.” To accomplish this goal, the City Manager executed a

Item 10

Subject: Contract Amendment for Professional Services with the Lew Edwards Group Date: January 23, 2020 Page 2 of 2


contract with the Lew Edwards Group in an amount not to exceed $50,000 to conduct initial polling and public outreach activities. Initial Public Opinion Research Under the scope of the initial contract, the Lew Edwards Group and EMC Research conducted an objective, statistically valid, live telephone survey from July 9 to 16, 2019. This was an updated community satisfaction and priorities survey to build on previous efforts for the City in 2017. The purpose of the survey was to evaluate current constituent priorities and their views on the City’s long-term fiscal sustainability. EMC Research identified the following key findings:

• Constituents perceive the City government to be doing a good job, with favorable ratings in the mid-70 percentiles for City services and quality of life. The City also receives high ratings for overall safety.

• Constituents prioritize many issues, including keeping City government transparent and accountable, providing 911 emergency response services, maintaining school safety and security, and reducing homelessness.

• Constituents overwhelmingly feel the City needs additional funding to maintain essential services with nearly two in three saying the City has at least some need for additional funding.

• Up to 71% of respondents are interested in conceptual additional locally-controlled funding to maintain essential City services in Citrus Heights.

Due to the results of this research, staff has moved forward with an initial outreach program entitled “Join the Conversation” which is an effort to engage the community around resident priorities. This is the largest survey effort the City has ever undertaken to continue to engage residents and ensure responsive and accountable planning. Attachments

1. Resolution No. 2020 -___ A Resolution of the City Council of the City of Citrus Heights, California, adopt resolution authorizing the City Manager to execute a contract amendment with The Lew Edwards Group.


RESOLUTION NO. 2020 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT

AMENDMENT WITH THE LEW EDWARDS GROUP

WHEREAS, City Council developed a strategic planning goal at its April 24, 2019 retreat to “identify and launch an initial outreach process to gauge community priorities for maintaining essential services and fiscal stability”; WHEREAS, to accomplish this goal the City Manager executed an Agreement with the Lew Edwards Group in an amount not to exceed $50,000 to conduct independent public opinion research and public outreach related to developing a community outreach process to gauge community priorities and gathering community feedback for maintaining essential services, local control, and fiscal stability; WHEREAS, the Lew Edwards Group has completed initial outreach and identified, to a statistically significant degree:

• Constituents perceive the City government to be doing a good job, with favorable ratings in the mid-70 percentiles for City services and quality of life;

• Constituents prioritize many issues, including keeping City government transparent and accountable, providing 911 emergency response services, maintaining school safety and security, and reducing homelessness;

• Constituents overwhelmingly feel the City needs additional funding to maintain essential services with nearly two in three saying the City has at least some need for additional funding; and

• Up to 71% of respondents are interested in conceptual additional locally-controlled funding to maintain essential City services in Citrus Heights.

WHEREAS, the City desires to expand and further localize this process. NOW THEREFORE BE IT RESOLVED AND ORDERED that the City of Citrus Heights does hereby authorize the City Manager to execute a contract amendment with The Lew Edwards Group to continue community outreach, assessment of community priorities and planning efforts related to potential future revenue options to fund community priorities in the amount of $53,500 for a total contract amount of $103,500. The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 23rd day of January 2020 by the following vote, to wit: AYES: Council Members: NOES: Council Members: ABSTAIN: Council Members: ABSENT: Council Members:

Jeff Slowey, Mayor ATTEST: Amy Van, City Clerk



MEMORANDUM



FROM: Katherine Cooley, Assistant to the City Manager

SUBJECT: Letter of Support for American River Collegiate Academy


The American River Collegiate Academy, part of the Rocklin Academy Family of Schools, is planning to bring a campus to, or near, the City of Citrus Heights. Staff recommends the City Council direct the City Manager, on behalf of the City of Citrus Heights, to submit a letter of support to the Sacramento Board of Education on behalf of the American River Collegiate Academy in bringing this academic option to the Citrus Heights community.

Fiscal Impact

There is no fiscal impact associated with this action.


The Rocklin Academy Family of Schools has a strong track record of academic success, and American River Collegiate Academy would like to continue that legacy of quality education by offering Citrus Heights parents, and their students, more education options. The Academy’s petition for application of a charter was denied by the San Juan Unified School District. The Academy is appealing this decision to the Sacramento County Board of Education.

Attachments

1. Draft Letter of Support

Item 11

January 23, 2020 Sacramento County Board of Education P.O. Box 269003 Sacramento, CA 95826 Dear Sacramento County Board of Education Trustees, The American River Collegiate Academy, part of the Rocklin Academy Family of Schools, is planning to bring a campus to, or near, the City of Citrus Heights. The Rocklin Academy Family of Schools has a strong track record of academic success. The Citrus Heights City Council are strong supporters of public education and believe in high-quality public school choice in the City of Citrus Heights that will benefit students, families, and the community as a whole. On behalf of the City of Citrus Heights, the City Council supports the Academy in bringing this academic option to our community. Sincerely, Jeff Slowey Mayor City of Citrus Heights



MEMORANDUM



FROM: Meghan Huber, Economic Development & Communications Manager

SUBJECT: Resolution of Intention to Modify the Sunrise MarketPlace Property and Business Improvement District


The Sunrise MarketPlace Property and Business Improvement District (SMPPBID) Owners’ Association has requested that City Council modify the prior SMPPBID Management District Plan to amend the budget allocations and services to include public safety services. Adoption of this Resolution will result in the modification of the SMPPBID Management District Plan. Adoption of this Resolution will result in a public hearing on February 27, 2020 on the modification of the SMPPBID Management District Plan. The modified SMPPBID would be effective February 27, 2020 and ending December 31, 2021.

Staff recommends the City Council adopt Resolution No. 2020-___ A Resolution of the City Council of the City of Citrus Heights, California, Declaring its Intention to Modify the Sunrise MarketPlace Property and Business Improvement District

Fiscal Impact

There is no fiscal impact of this recommendation.


Below is a timeline of the Management District Plan Modification Process to proceed with the inclusion of public safety services:

DISTRICT MODIFICATION PROCESS

January 23, 2020 RESOLUTION OF INTENTION HEARING Upon the conclusion of the SMPPBID renewal process and the written request of the Sunrise MarketPlace Owners’ Association, the City Council

Item 12

Subject: Adopt a Resolution of Intention to Modify the Sunrise MarketPlace Property and Business Improvement District Date: January 23, 2020 Page 2 of 2


may adopt a resolution expressing its intention to modify the existing SMPPBID Management District Plan. The proposed modification will amend the SMPPBID’s budget allocations and services to combine certain service categories previously provided and include public safety services.

February 17, 2020 NOTICE The modification resolution of intention shall be mailed to all property owners at least ten (10) days before the public hearing on the proposed modification.

February 20, 2020 NOTICE

The modification resolution of intention shall be published at least seven (7) days before the public hearing on the proposed modification.

February 27, 2020 PUBLIC HEARING Council will open a public hearing and receive public testimony. At the end of testimony, Council may adopt a resolution modifying the existing SMPPBID’s Management District Plan.

Attachments

(1) Resolution No. 2020-__: A Resolution of the City Council of the City of Citrus Heights, California, Declaring its Intention to Modify the Sunrise MarketPlace Property and Business Improvement District (2) Sunrise Marketplace PBID Management District Plan and Engineers Report


RESOLUTION NO. 2020- ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, DECLARING ITS INTENTION TO MODIFY THE SUNRISE MARKETPLACE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT

WHEREAS, the City Council of the City of Citrus Heights renewed the Sunrise MarketPlace

Property and Business Improvement District (SMPPBID) for a seven (7) year term beginning January 1, 2015 through December 31, 2021; WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., allows cities to modify the Management District Plan (MDP) of a District at the request of the Owners’ Association; and WHEREAS, the SMPPBID Owners’ Association has requested a modification of the SMPPBID Management District Plan.

NOW THEREFORE BE IT RESOLVED AND ORDERED The City Council declares its intention to modify the SMPPBID MDP and the proposed modification of the SMPPBID MDP will amend the budget allocations and services to combine certain service categories previously provided and include public safety services.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 23 day of January 2020 by the following vote, to wit: AYES: Council Members: NOES: Council Members: ABSTAIN: Council Members: ABSENT: Council Members:

Jeff Slowey, Mayor ATTEST: Amy Van, City Clerk Exhibit

A. Sunrise Marketplace PBID Management District Plan and Engineers Report

Sunrise MarketPlace PBID Management District Plan & Engineer’s Report

January 6, 2020

Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

Sunrise MarketPlace PBID Management District Plan ii

Sunrise MarketPlace PBID Management District Plan & Engineer’s Report

CONTENTS

I. Overview 3

II. PBID Background 5

III. Sunrise MarketPlace Accomplishments 6

IV. Boundaries 8

V. Service Plan & Budget 10 A. Establishment 10 B. Improvements and Activities 10 C. Annual Assessment Budget 12 D. Service Budget 12 E. Annual Maximum Assessment Budget 14

VI. Governance 15 A. Owners’ Association 15 B. Brown Act & Public Records Act Compliance 15 C. Annual Report 15

VII. 2015 Engineer’s Report 16 A. Assessment Methodology 16 B. Separation of Special and General Benefit 16 C. Assessment Notice 19 D. Tax Bills 20 E. Bonds 20 F. Engineer’s Certification 20

VIII. 2020 Engineer’s Report 21

Appendix 1 – PBID Law 33

Appendix 2 – 2015 Assessment Calculation Table 44

Appendix 3 – District Boundary Map 48

Appendix 4 – Intercept Survey Results 49

Appendix 5 – 2020 Assessment Calculation Table 59

Appendix 6 – 2021 Maximum Annual Assessment Rates 63

Appendix 7 – 2021 Total Estimated Maximum Cost Of Improvements, Maintenance, And Activities 64

Prepared by Civitas

www.civitasadvisors.com

(800)999-7781

http://www.civitasadvisors.com/

Sunrise MarketPlace PBID Management District Plan 3

I. OVERVIEW Developed by a coalition of property owners, the Sunrise MarketPlace Property and Business Improvement District (“PBID” or “District”) is a benefit assessment district whose purpose is to provide improvements and activities which constitute and create a special benefit to assessed parcels. This approach has been successful in providing special benefits to Sunrise MarketPlace properties over several years, namely increased sales, attraction of new tenants, increased occupancies, and specifically increased property values. As required by state law, property owners have created this Management District Plan (Plan) to renew the PBID.

Location: The PBID includes approximately ten blocks along Sunrise Boulevard and Greenback Lane. The PBID includes parcels along both sides of Sunrise Boulevard between Madison Avenue in the south and Arcadia Drive in the north; parcels along the east side of Sunrise Boulevard north of Arcadia Drive to south of Unnamed Road; and parcels along both sides of Greenback Lane between Birdcage Street in the west and Fair Oaks Boulevard in the east. See Section IV for a more detailed boundary description and map.

Purpose: The purpose of the PBID is to provide activities and improvements that constitute and create a special benefit to assessed parcels. The PBID will provide District enhancement programs economic development, and advocacy on such issues as safety, maintenance, and ensuring the city remains business friendly, directly and only to assessed parcels within its boundaries.

Budget: The total PBID assessment for the initial year of its seven (7) year operation is anticipated to be $753,231.99. The assessment may be subject to an annual increase in the assessment rate, and may reach up to $1,129,847.99 in year 7. Assessment funding will be supplemented by non-assessment funds so that the annual service plan budget for the initial year of the PBID’s 7-year operation is anticipated to be $800,099.59.

Now in the sixth year of its term, the total PBID assessment budget for the sixth year is anticipated to be $755,882.52. Additionally, assessment funding will be supplemented by non-assessment funds so that the annual service plan budget for the sixth year of the PBID’s operation is anticipated to be $839,374.70. Differences in the initial year and sixth year’s budget is reflective of changes in parcel type and size occurring over the course of the five (5) previous years to the initially assessed parcels.

Cost: The annual cost to the parcel owner is a rate of $0.03 per parcel square foot per year for office parcels and $0.06 per parcel square foot per year for retail parcels. Assessment rates may be subject to an annual increase of no more than $0.0025 per parcel square foot per year for office parcels and $0.005 per parcel square foot per year for retail parcels.

Renewal: PBID renewal requires submittal of petitions from property owners representing more than 50% of the total assessment. The “Right to Vote on Taxes Act” (also known as Proposition 218) requires a ballot vote in which more than 50% of the ballots received, weighted by assessment, be in support of the PBID.


Duration: The PBID will have a seven (7)-year-life starting January 1, 2015 and ending December 31, 2021. After seven (7) years, the petition, ballot, and City Council hearing process must be repeated for the PBID to be renewed.

Management: Sunrise MarketPlace Inc. will continue to serve as the Owners’ Association for the PBID.


II. PBID BACKGROUND The International Downtown Association estimates that more than 1,500 Property and Business Improvement Districts (PBIDs) currently operate throughout the United States and Canada. PBIDs are a time-tested tool for property owners who wish to come together and obtain collective services which benefit their properties. PBIDs provide supplemental services in addition to those provided by local government. They may also finance physical and capital improvements. These improvements and activities are concentrated within a distinct geographic area and are funded by a special parcel assessment. Services and improvements are only provided to those who pay the assessment. Although funds are collected by the local government, they are then directed to a private nonprofit. The nonprofit implements services and provides day-to-day oversight. The nonprofit is managed by a Board of Directors representing those who pay the assessment, to help ensure the services meet the needs of property owners and are responsive to changing conditions within the PBID. PBIDs all over the globe have been proven to work by providing services that improve the overall viability of business districts, resulting in higher property values, lease rates, occupancy rates, and sales volumes. The PBID will be renewed pursuant to a state law that took effect in January of 1995. The “Property and Business Improvement District Law of 1994,” which was signed into law by Governor Pete Wilson, ushered in a new generation of Property and Business Improvement Districts in California. Key provisions of the law include:

➢ Allows a wide variety of services which are tailored to meet specific needs of assessed properties in each individual PBID;

➢ Requires property owner input and support throughout the renewal process;

➢ Requires written support on both a petition and ballot from property owners paying 50% of proposed assessments;

➢ Allows for a designated, private nonprofit corporation to manage funds and implement programs, with oversight from property owners and the City;

➢ Requires limits for assessment rates to ensure that they do not exceed the amount owners are willing to pay; and

➢ Requires the PBID be renewed after a certain time period, making it accountable to property owners.

The “Property and Business Improvement Business District Law of 1994” is provided in Appendix 1 of this document.


III. SUNRISE MARKETPLACE ACCOMPLISHMENTS

The Sunrise MarketPlace PBID was formed in 1999 for a five-year term. In the years since, the PBID has been renewed twice, in 2005 and 2010. Over the last fifteen years, the PBID has provided an unprecedented level of marketing, branding, and advocacy services to benefit the assessed properties. As the area and economy have shifted, so too have SMP’s programs. The Board of Directors has carefully and consistently managed programs to ensure property owners enjoy a high return on investment. In past years, the PBID focused on

branding, signage and streetscape improvements in order to define and create a distinct identity for the Sunrise/Greenback corridor. In this term (2010-2014), SMP has focused more aggressively on driving traffic, increasing sales, generating awareness and providing a safe, attractive and entertaining environment. There have been many accomplishments in this term, a few highlights are noted below.

• In 2010, SMP opened an office in Sunrise Mall. The office has given the PBID great visibility and allowed for a higher level of interaction with business and property owners. It has also provided for more engagement with consumers. This year, SMP unveiled an exciting, high tech web site which featured a complete directory of all businesses, along with information on businesses’ sales, promotions and events. These are updated regularly and automatically by Placewise – which works with several hundred retailers across the country. SMP worked with police to pass a Solicitation Ordinance restricting panhandling activity in the PBID.

• In 2011, SMP scored a major victory by bringing the Sacramento Capitals back home to Citrus Heights. The team, which played in the PBID from 2001-2005, has had a positive impact for property owners. In 2011, 41% of attendees shopped or ate at an assessed property prior to attending a match, spending an average of $67.03. In 2012, these numbers increased to 43% of attendees shopping or eating, and spending an average of $71.45. SMP events generated 17,240,464 media impressions for a value of $223,265.

• In 2012, SMP leveraged the highly successful Capitals tennis event and created the Sunrise At Night Concert Series. The concert series attracted more than 10,000 visitors to SMP, many of them from beyond normal trade zone (potential new customers). Of those attending concerts, 48% dined or shopped on an assessed parcel, spending an average of $71.11. The Capitals and the Concert Series generated 22,852,918 media impressions. These events resulted in a 285% increase in visits to the website, and a 47% increase in Facebook likes. In 2013,businesses became concerned with aspects of the City’s sign regulations. Together with the City, SMP successfully advocated for a sign exception ordinance, which provides for a special approval process for some currently prohibited signs.


In 2013, both events returned to SMP with similarly outstanding results. These events concerts animated an asphalt space bringing texture and vitality, fostering social engagement, and creating memorable experiences for customers. SMP is now firmly rooted in the fabric of the community and positively connected to customers. After the State eliminated redevelopment funds, SMP encouraged the City to secure alternative funding for economic

development. These efforts resulted in the City’s innovative Economic Development Funding program. Businesses can submit applications for a variety of grants and assistance available for projects and events. After hearing of concerns regarding homeless activity in the PBID, SMP created a Public Safety Committee. Partners include CHPD, Sacramento Self Help homeless outreach, Sunrise Recreation and Parks along with business and property owners. A homeless camp was identified as the source of illegal activity in the PBID. Through the work of the landowner, CHPD and the committee, the camp has been nearly eliminated. This year, 2014, SMP is working with the Citrus Heights Chamber of Commerce on signage and zoning code regulations. SMP will continue to work with community partners including the Chamber, City of Citrus Heights, CHPD, Citrus Heights Rotary, and others to leverage services and create benefit and value for assessed properties. SMP will work closely with property owners to create a business-friendly environment for potential businesses. SMP initiated a rezone request of several parcels in the PBID making the land more flexible and attractive to a broader number of new businesses.


IV. BOUNDARIES The PBID includes approximately ten blocks along Sunrise Boulevard and Greenback Lane. The PBID includes parcels along both sides of Sunrise Boulevard between Madison Avenue in the south and Arcadia Drive in the north; parcels along the east side of Sunrise Boulevard north of Arcadia Drive to south of Unnamed Road; and parcels along both sides of Greenback Lane between Birdcage Street in the west and Fair Oaks Boulevard in the east. Specifically, the PBID boundary is as follows: Beginning at the southeast corner of Assessor Parcel Number (APN) 233-0044-009 (Map ID 50), west along the north edge of Madison Avenue, across Sunrise Boulevard, to the southwest corner of APN 233-0440-027 (Map ID 154). North along the western boundary of said parcel and continuing north along the western boundary of APN 233-0440-024 (Map ID 153) to Uplands Way. East along the south edge of Uplands Way to Birdcage Street. North across Uplands Way and continuing north along the east edge of Birdcage Street to the northwest corner of APN 233-0680-022 (Map ID 244). East along the northern boundary of said parcel, north along the western boundary of APNs 233-0680-013 and 233-0680-012 (Map IDs 238 and 237), then west along the southern boundary of APN 233-0680-011 (Map ID 236) to Birdcage Street. North along the east edge of Birdcage Street to Kingswood Drive. East along the south edge of Kingswood Drive to a point opposite the southwest corner of APN 233-680-019 (Map ID 241), then north across Kingswood Drive, and north along the western boundary of parcels fronting the west edge of Sunrise Boulevard to the southern boundary of APN 243-0191-026 (Map ID 310). West along the southern boundary of parcels fronting the south edge of Macy Plaza Drive to Birdcage Street. North along the east edge of Birdcage Street, across Macy Plaza Drive and Birdcage Center Lane, to Greenback Lane. West along the north edge of Greenback Lane to the southwest corner of APN 243-0060-013 (Map ID 249). North along the western boundary of parcels fronting the west edge of Birdcage Street to the northwest corner of APN 243-0060-012 (Map ID 248). East along the northern boundary of said parcel to Birdcage Street, then east along the northern boundary of parcels fronting the north edge of Greenback Lane to the western boundary of APN 243-0060-039 (Map ID 257). North along the western boundary of said parcel to Sun Hill Drive, then east along the south edge of Sun Hill Drive to Sunrise Boulevard. North along the east edge of Sunrise Boulevard to the northwest corner of APN 243-0480-032 (Map ID 369). East along the northern boundary then south along the eastern boundary of APN 243-0480-032 (Map ID 369) and continuing south along the eastern boundary of APN 243-0480-030 (Map ID 367). Continuing south along the eastern boundary of parcels fronting the east edge of Sunrise Boulevard to Arcadia Drive. Southeast along the south edge of Arcadia Drive to a point opposite the southwest corner of APN 243-0480-019 (Map ID 357). North along the western boundary, east along the northern boundary, and south along the eastern boundary of said parcel, then continuing south along the eastern boundary of APNs 243-0480-020 and 243-0480-014 (Map IDs 358 and 354) to Arcadia Drive. South along the east edge of Arcadia Drive to the northwest corner of APN 243-0082-004 (Map ID 288). East along the northern boundary of said parcel; continuing east along the northern boundary of APNs 243-0082-024, 243-0082-003, 243-0082-010, and 243-0082-013 (Map IDs 304, 287, 294, and 297); and east along the northern boundaries of parcels fronting the north edge of Greenback Lane to Fair Oaks Boulevard. South along the west edge of Fair Oaks Boulevard, across Greenback Lane, to the southeast corner of APN 243-0350-028 (Map ID 335). West along the southern boundary of said parcel to Sunrise Vista Drive. South along the west edge of Sunrise Vista Drive to the southeast corner of APN 243-0350-025 (Map ID 334). West along the southern boundary of said parcel, then south along the eastern


boundary and west along the southern boundary of APN 243-0192-012 (Map ID 321). Continue west along the southern boundary of APN 243-0192-013 (Map ID 322) to the northeast corner of APN 233-0680-004 (Map ID 231). South along the eastern boundary of parcels fronting the east edge of Sunrise Boulevard, across Kingswood Drive, to the southeast corner of APN 233-0680-010 (Map ID 235). Continuing south along the eastern boundary of APN 233-0680-008 (Map ID 233), across Pebble Beach Drive, along the eastern boundary of APN 233-0044-002 (Map ID 45), across Alta Sunrise Drive, and along the eastern boundary of APNs 233-0044-006, 233-0044-007, and 233-0044-009 (Map IDs 47, 48, and 50) to Madison Avenue, the point of beginning. The PBID service area includes approximately 135 parcels with 65 property owners. The PBID boundary is illustrated by the map below. A larger map is available on request by calling (916)437-4300 or (800)999-7781. It is the intent of the Engineer’s Report that each parcel included in the PBID can be clearly identified. Every effort has been made to ensure that all parcels included in the PBID are consistent in the boundary description, the Boundary Map (included as Appendix III), and the Assessment Calculation Table (included as Appendix II). However, if inconsistencies arise, the order of precedence shall be: 1) the Assessment Calculation Table, 2) the Boundary Map, and 3) this boundary description. If the ownership, use, or size of a parcel changes during the term of this PBID, the assessment calculation may be modified accordingly.


V. SERVICE PLAN & BUDGET

A. Establishment A service plan to provide special benefits to assessed properties was developed using several methods. A series of property owner meetings, a review of historic service data, a survey of property owners, an analysis of current property conditions and needs, and an intercept survey of visitors were all conducted. The primary needs identified were District enhancement programs, economic development, and advocacy. To meet those needs, the PBID will provide District enhancement programs, economic development, and advocacy to assessed parcels within its boundaries.

B. Improvements and Activities The PBID will provide supplemental improvements and activities directly to assessed parcels that are above and beyond those provided by the City and other government agencies. None of the services to be provided by the PBID are provided by the City or other government agencies. The improvements and activities will be provided directly and only to assessed parcels; they will not be provided directly to the public-at-large or parcels that are not assessed. Each and every service is unique to the PBID, thus the benefits provided are particular and distinct to each assessed parcel. The same improvements and activities will be provided for each year of the PBID’s 7-year term. Services provided will include:

1. District Enhancement Programs The District Enhancement Programs will promote and provide services, activities, and improvements to assessed properties through the implementation of three sub-programs: marketing & special events, public safety, and public area improvements. A summary of each sub-program is provided below:

Marketing & Special Events The PBID will continue to aggressively market the PBID to its primary trade zone, while continuing to expand efforts to penetrate the important secondary trade zones needed for long term growth and viability. The marketing program will continue to create awareness for the District and its businesses, positioning SMP as an attractive, convenient, value-filled shopping and business destination. The PBID manages a strong social media program including platforms such as Facebook and Instagram, fostering loyalty and engagement with consumers for District businesses. The PBID will also continue to promote businesses on digital platforms, utilizing sophisticated programs such as geo fencing and targeting to reach customers in the most effective manner. The PBID will continue to support the District with contests and promotions featuring businesses and their products. Signage, collateral material (fliers and brochures) will be utilized to promote the area. Additionally, all businesses and their events are included on the website and are highlighted on their own page. The PBID will continue to track analytics, objectives and benchmarks for marketing programs; and will continue Market Research programs that identify customer demographics, behaviors and other metrics. Special events will continue to be an important pillar of PBID programs. Events create positive awareness, drive traffic to the area and cultivate a positive emotional connection with customers. Industry research has shown that people look for experiences when patronizing businesses and shopping centers. These will include both small and larger signature events;


along with sponsorship of third-party events and events hosted by businesses within the PBID. All programs will continue to be designed to promote the assessed parcels, increase sales, and occupancy and lease rates. Public Safety Security services will focus on making the District a safer place to do business. Security services may include dedicated patrols by officers of the Citrus Heights Police Department or supplemental private security patrols. A regular patrol schedule will be established to serve properties throughout the District. The schedule will take into consideration those times of day in which incidents are most likely to occur. The patrol will seek to serve as both a deterrent by creating a visible presence, and a respondent to incidences that occur. These services may include, but are not limited to, a security navigator, lot cops, drones and bait material. Public Area Improvements Sunrise MarketPlace Inc. has leveraged the PBID to generate more than $5 million of public area signage and improvements over the life of the PBID. SMP will continue to work with the City to ensure the public areas remain well-groomed and attractive. The PBID may also partner with local and regional organizations to facilitate public and private area improvement projects. Festive street banners promoting District attributes, entryway and wayfinding signage will be maintained. Holiday décor will continue to accompany holiday events to create a desirable shopping destination for the important holiday season. The PBID will continue to partner with SMUD rolling out additional phases of “MasterPieces in the MarketPlace”- District utility boxes wrapped in both local and famous works of art. The PBID will work with the City on special lighting programs for the palm trees and medians along Sunrise Boulevard.

2. Economic Development Economic development activities will be aimed at attracting and retaining tenants. Efforts will also be undertaken to work with the City of Citrus Heights on programs and vision plans that promote the needs of assessed parcels. SMP will continue to work closely with the broker community to promote vacancies and developments in the PBID. Staff will continue to work closely with business and property owners, assisting in the planning and entitlement phase of projects as well as supporting potential tenant negotiations.

3. Advocacy & Administration The PBID will facilitate a unified voice for assessed properties. The administration portion of the budget will be utilized for administrative costs associated with providing the services. Those costs may include rent, telephone charges, legal fees, accounting fees, postage, administrative staff, insurance, and other general office expenses. Advocacy efforts are widespread and include alerts regarding, city, region and state news affecting business and property owners; advocating for business friendly regulations and for capital improvements and safety. SMP will continue to host seminars with the Secret Service, CHPD, ADA Consultants, marketing experts and others.


C. Annual Assessment Budget A projected seven (7)-year assessment budget for the PBID is provided on the following page. The overall assessment budget shall remain consistent with this Plan. In the event of a legal challenge, assessment funds may be used to defend the PBID. The annual assessment budget is based on the following assumptions:

1. The cost of providing improvements and activities may vary depending upon the market cost for those improvements and activities. Expenditures may require adjustment up or down to continue the intended level of improvements and activities. Funds not spent in any given year may be rolled over to the next year.

2. Assessment rates may be subject to an annual increase of no more than $0.0025 per year for office parcels and $0.005 per year for retail parcels. Increases will be determined by the Sunrise MarketPlace Inc. Board of Directors and may vary each year. The projections below illustrate the maximum annual increase for all budget items.

3. The Sunrise MarketPlace Inc. Board of Directors shall annually have the ability to re-allocate up to fifteen percent (15%) of the budget allocation by line item within the budgeted categories. Any change will be approved by the Sunrise MarketPlace Inc. Board of Directors and submitted with the Annual Report.

4. The annual budget may include a contingency reserve. Changes in data and other issues may change the revenue and expenses. If there are contingency funds remaining at the end of the PBID’s term, those funds may be used for the costs of renewing the PBID.

D. Service Budget The total assessment for 2015 is $753,231.99. The assessment funding will be supplemented by non-assessment funds so that the annual service plan improvement and activity budget for the initial year of the PBID’s seven-year operation is anticipated to be $800,099.59. The total assessment may be subject to an annual increase in the assessment rate. Now in the sixth year of its term, the total PBID assessment budget for 2020 is anticipated to be $755,882.52. Additionally, assessment funding will be supplemented by non-assessment funds so that the annual service plan budget for the sixth year of the PBID’s operation is anticipated to be $839,374.70. Differences in the initial year and sixth year’s budget is reflective of changes in parcel type and size occurring over the course of the five (5) previous years to the initially assessed parcels. Below are the service budget category allocations for both the initial year of the PBID’s term and the sixth year of the term.


$512,197.75 , 68%

$75,323.20 , 10%

$37,661.60 , 5%

$120,517.12 , 16%

$7,532.32 , 1%

2015 Assessment Budget

Marketing & Special Events

Signage & Seasonal Décor

Economic Development

Advocacy & Administration

Contingency

$566,911.89 , 75%

$37,794.13 , 5%

$136,058.85 , 18%

$15,117.65 , 2%

2020 Assessment Budget

District Enhancement Programs

Economic Development

Advocacy & Administration

Contingency


E. Annual Maximum Assessment Budget The budget below assumes the maximum annual increase is enacted and that there are no changes to the categorical budget allocations, the annual maximum assessment fund budget for each year of the PBID’s seven-year term is below. The total assessment budget for each year was calculated by applying each year’s maximum rate to the Assessment Calculation Table in Appendix 2.

Year Marketing Signage Economic

Development Advocacy &

Administration Contingency Total

68% 10% 5% 16% 1% 100%

2015 $512,197.75 $75,323.20 $37,661.60 $120,517.12 $7,532.32 $753,231.99

2016 $554,880.90 $81,600.13 $40,800.07 $130,560.21 $8,160.01 $816,001.32

2017 $597,564.05 $87,877.07 $43,938.53 $140,603.30 $8,787.71 $878,770.66

2018 $640,247.19 $94,154.00 $47,077.00 $150,646.40 $9,415.40 $941,539.99

2019 $682,930.34 $100,430.93 $50,215.47 $160,689.49 $10,043.09 $1,004,309.32

2020 $725,613.48 $106,707.87 $53,353.93 $170,732.58 $10,670.79 $1,067,078.65

2021 $768,296.63 $112,984.80 $56,492.40 $180,775.68 $11,298.48 $1,129,847.99

To date, no increase to assessment rates have been adopted by SMP’s Board for the years of 2015-2020. The assessment budget for the seventh year (2021) may experience an increase if SMP’s Board approves an increase to assessment rates. The table below demonstrates the maximum assessment budget for the seventh year (2021), as it is required disclosure but is not the anticipated course of action.

Estimated 2021 Annual Budget If Maximum Assessment Rates Are Adopted

Year

District Enhancement

Programs Economic



75% 5% 18% 2% 100%

2021 $682,543.56 $44,914.52 $163,678.07 $18,186.45 $909,322.60


VI. GOVERNANCE

A. Owners’ Association The City Council has the right, pursuant to Streets and Highways Code §36651 to identify the body that shall implement the proposed programs, which shall be the Owners’ Association. The City Council has identified Sunrise MarketPlace Inc. as the nonprofit that shall serve as the Owners’ Association, with oversight from the Citrus Heights City Council. The Board of Directors of Sunrise MarketPlace Inc. and its staff are charged with the day-to-day operations of the PBID. A majority of the Board of Directors of Sunrise MarketPlace Inc. must be parcel owners paying the assessment. In addition, the Board of Directors must represent a variety of interests within the PBID and respond to the needs of property owners. The Board of Directors shall act in the best interests of all of the properties and businesses within the PBID.

B. Brown Act & Public Records Act Compliance An Owners' Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association is considered a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of Sunrise MarketPlace Inc. board of directors and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report Sunrise MarketPlace Inc. shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report is a prospective report for the upcoming year and must include:

1. Any proposed changes in the boundaries of the PBID or in any benefit zones or classification of property within the District;

2. The improvements and activities to be provided for that fiscal year; 3. An estimate of the cost of providing the improvements and activities for that fiscal year. 4. The method and basis of levying the assessment in sufficient detail to allow each real property

owner to estimate the amount of the assessment to be levied against his or her property for that fiscal year;

5. The amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and 6. The amount of any contributions to be made from sources other than assessments levied

pursuant to this Plan.


VII. 2015 ENGINEER’S REPORT

A. Assessment Methodology

1. Base Formula Property owners have emphasized that an assessment formula for the PBID be fair, balanced, and commensurate with benefits received. Each parcel will be assessed based on benefits received. The variables used for the annual assessment formula are parcel use and size (square feet). The annual assessment on parcels throughout the PBID is a rate of $0.03 per parcel square foot for office parcels and $0.06 per parcel square foot for retail parcels. Retail parcels are assessed at a higher rate because they have a higher need for and volume of foot traffic, which also causes them to need a higher level of services. Assessment rates may be subject to an annual increase of no more than $0.0025 per parcel square foot per year for office parcels and $0.005 per parcel square foot per year for retail parcels. For example, in 2015 a retail parcel with 1,000 square feet would pay $60.00 (1,000 * $0.06). The same parcel, if used for offices, would pay $30.00 (1,000 * $0.06). If you would like more information about parcel assessments, please call Civitas at (916)437-4300 or (800)999-7781. Parcel square footage is the size of the parcel, measured in square feet. It is an appropriate measure of special benefit because it reflects the long-term value implications of the PBID. The larger a parcel is, the more services and benefit it will receive. “Because not all parcels in the District are identical in size…some will receive more special benefit than others.”1

2. Government-Owned Parcels Under “The Right to Vote on Taxes Act” (also known as Proposition 218) all public parcels are required to pay assessments unless they can demonstrate by clear and convincing evidence that their parcels do not receive a special benefit. Government parcels will receive and specially benefit from all of the PBID’s services, thus they will pay the full assessment rate applicable to their use code.

3. Residential Parcels The state legislature has conclusively presumed that parcels zoned exclusively for residential uses do not benefit from PBID services. The PBID’s services are not designed to benefit parcels with single-family residential uses or residential portions of mixed-use parcels, thus those parcels will neither be assessed nor receive services.

B. Separation of Special and General Benefit

1. Introduction The assessment will be imposed in accordance with the provisions of Article XIII D of the California Constitution. The law provides that only special benefits are assessable and requires the City to separate the general benefits from the special benefits conferred on the public at large and real property within and surrounding the PBID. Assessment law requires that the assessment on an individual parcel may not exceed the reasonable cost of the proportional special benefit conferred upon that parcel. Services provided to the public by the City and other public agencies are considered a general benefit; the general enhancement of property value does not constitute a special benefit.

1 Dahms v. Downtown Pomona (2009) 173 Cal.App.4th 1201.


The services to be provided by the PBID are supplemental services provided directly to assessed parcels, above and beyond those provided by the City and other public agencies. The PBID’s services will provide a “direct advantage”2 to each individually assessed parcel and “affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share.”3 The determination of general benefit versus special benefit is detailed below.

2. Determination of General Benefit Unlike special benefits, a general benefit is “derivative and indirect”4 and “conferred on real property located in the District or to the public at large.”5 Existing public services, which are provided to every person and parcel, everywhere within the City, are an example of a general benefit. Although the PBID s programs have been carefully designed to provide special benefits, it is acknowledged that there may be derivative and indirect general benefits created as a result of the PBID’s programs.

General Benefits to the Public At Large Although they are narrowly designed and carefully implemented to benefit the assessed parcels, and only provided directly to assessed parcels, the programs may generate a general benefit to the public at large within the PBID. To quantify the amount of general benefit to the public-at-large within the PBID, an intercept survey was conducted to determine the purpose of the public-at-large within the PBID6. Survey results are attached as Appendix 4. Those members of the public who were within the PBID to conduct some sort of business, or were likely to conduct some sort of business, on assessed parcels (shopping, dining, personal business) are considered special benefit. Those members of the public who were merely passing through, and not conducting or likely to conduct any sort of business on assessed parcels, are considered general benefit. Of 237 respondents, 9 indicated that they were not likely or only slightly likely to conduct any business within the PBID. Therefore, it is estimated that 3.8% (9/237) of the benefit created by the PBID’s improvements and activities is provided to the public-at-large. To ensure that the assessment dollars do not fund general benefits to the public-at-large, that portion of the cost of services will be paid for with funds not obtained through assessments. Using the 3.8% figure, based on the 2015 budget, the value of general benefit to the public-at-large is $30,403,78 ($800,099.59 * 3.8%).

General Benefit to Surrounding Parcels The PBID’s services will not be provided directly to parcels outside the boundaries. One study examining property values in PBID areas found “no evidence of spill-over impacts (either good or bad) on retail properties located just outside the BID’s boundaries.”7 It is, nonetheless, reasonable to conclude that the improvements and activities to be provided in the PBID may have a derivative and indirect impact on non-assessed parcels immediately adjacent to the PBID boundaries. A review of the PBID boundaries reveals that it is surrounded by 90 parcels with various zoning as follows: retail and office (31) and residential (59). The residential parcels are zoned exclusively for residential use. These parcels have been conclusively presumed by the legislature not to benefit from services provided through PBID assessments, and therefore have a benefit factor of 0.

2 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057, 1077. 3 Silicon Valley Taxpayers’ Association Inc. v. Santa Clara County Open Space Authority (2008) 44 Cal.4th 431, 452. 4 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057, 1077. 5 Cal. Const., art. XIII D, §2(i) 6 [CITE SMP SURVEY] 7 Furman Center for Real Estate & Urban Policy; The Impact of Business Improvement Districts on Property Values: Evidence from New York City (2007) p. 4


The remaining non-assessed parcels surrounding the PBID can reasonably be assumed to receive some derivative and indirect general benefit as a result of the PBID’s services. It is estimated that parcels surrounding the PBID will receive a general benefit equal to ten percent (10%) of the special benefit received by similarly zoned parcels within the PBID. It can also be reasonably assumed, that the average size of parcels surrounding the PBID is equivalent to the average size of similarly zoned parcels within the PBID. Therefore, based on the 2015 budget, the general benefit value to parcels surrounding the PBID is $16,463.83 as detailed below.

TABLE A

Parcel Location & Use

No. of Parcels

Avg. Size of Parcels

(sqft)1

Benefit Factor2

Benefit Units3

Benefit Percent4

Benefit Value5

Inside Retail Parcels 117 102,904 1.00 12,039,728 93.853% $722,383.68

Inside Office Parcels 118 57,127 0.50 514,139 4.008% $30,848.31

Inside Residential Parcels 227 n/a 0.00 0 0.000% $0.00

Special Benefit to Inside Parcels 362 12,553,867 97.861% $753.231.99

Surrounding Retail Parcels 25 102,904 0.10 2.005% $15,435.55

Surrounding Office Parcels 6 57,127 0.05 0.134% $1,028.28

Surrounding Residential Parcels 59 n/a 0.00 0.000% $0.00

General Benefit to Surrounding Parcels 90 274,397 2.174% $16,463.83 1 Average Size of Parcels = the total parcel square feet within the PBID divided by the total number of parcels within the PBID for each parcel use 2 Benefit Factor = The benefit ratio described in the paragraph above for each parcel location & use 3 Benefit Units = The number of parcels, multiplied by the average size of parcels, multiplied by the benefit factor for each parcel location & use 4 Benefit Percentage = The benefit units for each parcel location & use divided by the total benefit units for the PBID 5 Benefit Value = The total budget less General Benefit to the Public-at-Large multiplied by the benefit percentage for each parcel location & use

Total General Benefit Based upon the previous evaluation, in this Engineer’s professional estimation, the total value of general benefit provided to the public-at-large and to parcels surrounding the PBID is $46,867.61.

General Benefit to Public $30,403.78

General Benefit to Surrounding Parcels $16,463.83

Total General Benefit $46,867.61

Non-Assessment Funding The programs provided with PBID funding receive non-assessment funding in the form of grants, corporate sponsorships, event income, and other miscellaneous funds. During the term of the PBID, these funding sources are expected to exceed $46,867.61 annually. These funds will pay for the general benefit provided by the PBID services. This level of non-assessment funding ensures that funds received from assessments are only spent on special benefits for assessed parcels.

3. Determination of Special Benefit A special benefit is defined as “a particular and distinct benefit over and above general benefits conferred on real property located in the District or to the public at large.”8 The services provided by the PBID are all “over and above those already provided by the City [and other public agencies] within the boundaries of the PBID. And they are particular and distinct benefits to be provided only to the parcels within the PBID, not to the public at large – they ‘affect the assessed property in a way that is particular and distinct

8 Cal. Const., art. XIII D, §2(i)


from [their] effect on other parcels and that real property in general and the public at large do not share.’”9 The PBID services constitute special benefits to all of the assessed parcels. Further, each and every parcel assessed within the PBID receives a particular and distinct benefit from the improvements and activities of the PBID, over and above general benefits conferred upon those parcels by the general activities of the City and other public agencies. The marketing, signage, economic development, and advocacy services will improve marketing, signage improvements, economic development, and advocacy on the assessed parcels, thereby specially benefitting the assessed parcels. Studies have found that “businesses consider quality-of-life issues to be more important factors in choosing a location than they do tax rates and real-estate prices;”10 and that “customers and residents may feel more comfortable and safer within BIDs that have less obvious signs of litter, graffiti, and abandoned cars. A stronger sense of place that accompanies cleaner streets encourages … patronage and has increasingly positive repercussions in a BID.”11 Following these studies, the PBID’s services are designed to address parcel-specific issues to increase commerce, tenant retention and attraction, and utilization for the special benefit of assessed parcels. Assessment law also requires the determination of the proportionate special benefit derived by each parcel in relationship to the entirety of the cost of improvement(s) or the maintenance and operation expenses or the cost of the parcel-related service being provided. In addition, no assessment may exceed the reasonable cost of the proportional special benefit conferred on parcel(s). The proportionate special benefit accruing to each parcel has been allocated based on parcel use and size of each parcel, thus the total amount to be assessed will not exceed the estimated reasonable cost of the activities and improvements to be provided, and no assessment will exceed the reasonable cost of the proportional special benefit conferred on the parcel. The assessment will only fund that portion of the value which represents special benefits. In this Engineer’s professional judgment, the value of the special benefit to be provided by the PBID services to assessed parcels inside the PBID is $753,231.99 as detailed in Table A on page 15.

4. Summary of Special and General Benefits Therefore, based upon previous evaluations, in this Engineer’s professional estimation, the total value of the services to be provided by the PBID, and therefore the total budget, is $800,099.59.

Special Benefit to Inside Parcels $753,231.99

General Benefit to Surrounding Parcels $16,463.83

General Benefit to Public-at-Large $30,403.78

Total District Budget $800,099.59

C. Assessment Notice During the hearing process, an Assessment Notice will be sent to owners of each parcel outlined in the Boundary Description and Boundary Map and included in the Assessment Calculation Table. The

9 Dahms v. Downtown Pomona (2009) 173 Cal.App.4th 1201. 10 RAND Corporation; Neighborhood Effects on Crime and Youth Violence: The Role of Business Improvement Districts in Los Angeles (2009) p. 8 11 RAND Corporation; Neighborhood Effects on Crime and Youth Violence: The Role of Business Improvement Districts in Los Angeles (2009) p. 40

Assessment Notice provides an estimated assessment based on parcel use and size. The final individual assessment for any particular parcel may change, up or down, if the parcel use and size differ from those found on the Assessment Notice.

D. TaxBillsAs provided by State Law, the PBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Sacramento. Parcels which do not receive property tax bills will be invoice by the City. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Sacramento shall distribute funds collected to the City of Citrus Heights, which will forward funds to Sunrise MarketPlace Inc. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the PBID assessments.

E. BondsBonds will not be issued to finance services as a part of this Sunrise MarketPlace PBID.

F. Engineer's CertificationI hereby certify, to the best of my knowledge and experience, that each of the identified benefiting parcels located within the Sunrise MarketPlace Property and Business Improvement District will receive a special benefit over and above the general benefits conferred and that the amount of the assessment is no greater than the proportional special benefits conferred on each assessed parcel, as described in this Engineer's Report.

Review of this PBID Management District Plan and preparation of the Engineers Report was completed by:

,

Orin

State of California Registered Civil Engineer No. 25169

Date

T

f

BEN:EN

This Engineer's Report is intended to be distributed as part of the Management District Plan in its entire(], including the Boundary Description (Section IV), the Assessment Cahtlation Table (Appendix II), and the Boundary Map (Appmdix III). &production and dishib11tion of 011/y Section VII of this Management District Plan violates the intent of this stamp and sig11at11T'C.



VIII. 2020 ENGINEER’S REPORT

The District’s parcel assessments will be imposed in accordance with the provisions of Article XIII D of the California Constitution. Article XIII D provides that “only special benefits are assessable,”12 and requires the City to “separate the general benefits from the special benefits conferred on a parcel.”13 Special benefits are a “particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public-at-large.”14 Conversely, a general benefit is “conferred on real property located in the district or to the public-at-large.”15 Assessment law also mandates that “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”16 The Engineer determined the total cost of the improvements and activities, quantified the general benefit accruing to the public-at-large and non-assessed parcels adjacent to and within the District, and separated that amount from the special benefit accruing to the assessed parcels. Then, the Engineer determined the proportional special benefit derived by each parcel and allocated the special benefit value of the improvements and activities accordingly. The Engineer’s determinations and detailed calculations are summarized in this report.

A. Separation of General and Special Benefits Each of the improvements and activities, and the associated costs and assessments within the PBID, were reviewed, identified, and allocated based on special and general benefits pursuant to Article XIII D of the California Constitution. The assessment has been apportioned based on the proportional special benefits conferred to the assessed parcels located within the PBIDPBID boundaries as determined below.

1. General Benefits Unlike special benefits, which are conferred directly and only upon assessed parcels, a general benefit is conferred on the general public or non-assessed parcels. Existing City and other public services, which are provided to every person and parcel, everywhere within the City, are an example of a general benefit. Although the PBID’s boundaries have been narrowly drawn, programs have been carefully designed to provide special benefits, and activities and improvements will only be provided directly to assessed parcels, it is acknowledged that there will be general benefits as a result of the PBID’s activities and improvements. The California Constitution mandates that “only special benefits are assessable, and an agency shall separate the general benefits from the special benefits.”17 “Generally, this separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.”18 The first step that must be undertaken to separate general and special benefits provided by the PBID’s activities and improvements is to identify and quantify the general benefits. There are two bodies who can receive general benefits: the public-at-large within the PBID, and non-assessed parcels within and surrounding the PBID.

12 Cal. Const., art. XIII D, §4(a) 13 Cal. Const., art. XIII D, §4(a) 14 Id, §2(i) 15 Cal Const., art XIII D §2(i) 16 Cal. Const., art. XIII D, §4(a) 17 Cal. Const., art XIII D §4(a) 18 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal.App.4th 416


a. General Benefit to the Public-at-Large Although the activities and improvements are narrowly designed and carefully implemented to specially benefit the assessed parcels, and only provided directly to assessed parcels, they will generate a general benefit to the public-at-large within the PBID. State law indicates that “Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.”19 However, “the mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.”20 Further, “the value of any incidental or collateral effects that arise from the improvements, maintenance or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.”21 Thus, although there may be some incidental benefit to persons engaged in business on the assessed parcels, that incidental benefit is not considered general benefit because it is inherently produced by activities and improvements that provide special benefits to the assessed parcels. There is, however, a general benefit to persons not engaged in business on the assessed parcels. To quantify the amount of general benefit to the public-at-large within the PBID, an intercept survey was conducted to determine the purpose of the public-at-large within the PBID22. Survey results are attached as Appendix 4. Those members of the public who were within the PBID to conduct some sort of business, or were likely to conduct some sort of business, on assessed parcels (shopping, dining, personal business) are considered special benefit. Those members of the public who were merely passing through, and not conducting or likely to conduct any sort of business on assessed parcels, are considered general benefit. Of 237 respondents, 9 indicated that they were not likely or only slightly likely to conduct any business within the PBID. Therefore, it is estimated that 3.8% (9/237) of the benefit created by the PBID’s improvements and activities is provided to the public-at-large. To ensure that the assessment dollars do not fund general benefits to the public-at-large, that portion of the cost of services will be paid for with funds not obtained through assessments. Using the 3.8% figure, based on the 2020 budget, the value of general benefit to the public-at-large is $31,896.24 ($839,374.70* 3.8%).

b. General Benefit to Non-Assessed Parcels Although they are only provided directly to the assessed parcels, the PBID’s activities and improvements may also confer general benefits upon non-assessed parcels within and surrounding the PBID. One study examining property values in PBID areas found “no evidence of spill-over impacts (either good or bad) on commercial properties located just outside the BID’s boundaries;”23 however, the California Court of Appeals has stated that “services specifically intended for assessed parcels concomitantly confer collateral general benefits to surrounding properties.”24 It is reasonable to conclude that activities and improvements within the PBID will have an incidental impact on non-assessed parcels surrounding or within the PBID boundaries. Although the legislature has indicated that “the value of any incidental or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of

19 Streets and Highways Code section 36601(h)(2) 20

Ibid 21 Streets and Highways Code Section 36622(k)(2) 22 [CITE SMP SURVEY] 23 Furman Center for Real Estate & Urban Policy; The Impact of Business Improvement Districts on Property Values: Evidence from New York City (2007) p. 4 24 Beutz v. Riverside (2010) 184 Cal.App.4th 1516


any special benefit,”25 the California Court of Appeals has noted that “the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement…or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement.”26 Those derivative and indirect impacts are considered general benefits and will be quantified and separated. In this Engineer’s opinion, because activities and improvements are provided only within the PBID and on its perimeter, parcels separated from the PBID by either at least one intervening parcel or an impassable physical barrier such as a wall, freeway, or ditch will not receive spill over benefits. Parcels separated from the PBID will not benefit because they are physically removed from the actual location of activities and improvements provided, and do not face serviced parcels. Therefore, this analysis considers non-assessed parcels within the PBID’s boundaries and surrounding parcels that are immediately adjacent to and accessible from the PBID’s boundaries. The total PBID activity and improvement budget for year 2020 is $839,374.70. After reducing the activity and improvement budget by the general benefit to the public-at-large ($31,896.24), the remaining benefit to parcels is $807,478.46. This benefit has been distributed to both assessed and non-assessed parcels using the following methodology. The general benefit to the public-at-large has been proportionally allocated to the District’s activity and improvement categories as shown in the following table.

Category Benefit to Parcels Benefit to Public-at-Large

Total

District Enhancement Programs $606,098.68 $23,941.53 $630,040.21

Economic Development $39,884.09 $1,575.46 $41,459.55

Advocacy & Administration $145,346.12 $5,741.33 $151,087.45

Contingency $16,149.57 $637.92 $16,787.49

Total $807,478.46 $31,896.24 $839,374.70

To determine the general benefit to parcels, the Engineer assigned each parcel group a benefit factor, determined the appropriate parcel characteristic to use in the calculation, multiplied the benefit factor by the benefit characteristic to determine the benefit units attributable to each parcel group, and apportioned the remaining service cost (service cost minus general benefit to the public) in accordance with the benefit units derived by each parcel group. i. Benefit Factors All parcels within and adjacent to the PBID have been assigned a benefit factor to mathematically represent the proportional special and general benefit and quantify the value of each. The determination of benefit factors for each type of activity and improvement follows. Improvements The improvements to be provided by the PBID provide two types of special benefits:

• Improvement – The primary special benefit provided by the PBID’s improvements is the improvements themselves, which are available to tenants and customers of assessed parcels.

25 Streets and Highways Code section 36622(k)(2) 26 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057, 1077


• Proximity – The PBID’s improvements also provide the special benefit of being in proximity to a parcel that is benefitting from an improvement, as parcels will enjoy the spillover benefits of neighboring parcels utilizing the improvements.

The majority of the benefit is the improvements themselves; proximity is a lesser benefit. It is this Engineer’s estimation that eighty-five percent (85%) of the special benefit from the PBID’s improvements is the improvement, while the proximity special benefit accounts for fifteen percent (15%) of the special benefit. Assessed parcels will receive both benefits; non-assessed parcels within and adjacent to the PBID will not be directly improved, and therefore only receive the general benefit of proximity. Tangible Activities The tangible activities (those that are physically provided via a person or people working throughout the district) to be provided by the PBID generate three types of special benefits:

• Service – The primary special benefit provided by the PBID’s physical activities is the actual service. That is, the actual cleanliness and safety created by security and maintenance clean and safe personnel.

• Presence – The PBID’s physical activities also provide the special benefit of an individual’s presence on the assessed parcel as the activities are provided, which can have a deterrent effect and creates a positive impression that the area is well-maintained and safe. The “Disneyland effect” is the benefit the parcels receive from the observation that parcels are being maintained. There are studies which link the perception of cleanliness to a perception of increased security.

• Proximity – The PBID’s physical activities also provide the special benefit of being in proximity to a cleaner, safer parcel. Neighboring parcels enjoy the spillover benefits of being adjacent to increased safety and cleanliness.

The majority of the benefit received by the parcels is the results of the PBID’s services; onsite presence and proximity are lesser benefits. It is this Engineer’s estimation that seventy-five percent (75%) of the special benefit from the PBID’s physical activities is the service, while the presence and proximity benefits each account for twelve and one-half percent (12.5% presence, 12.5% proximity) of the special benefit. Assessed parcels will receive all three benefits; non-assessed parcels within and adjacent to the District will not be directly serviced and therefore only receive the general benefit of proximity. Intangible Activities Some of the PBID’s activities, such as marketing, are distinct in that they are not provided to a targeted area within the PBID, rather they are provided via internet, radio, and other forms of media and targeted at an audience outside the PBID in an effort to bring the audience into the PBID. These activities provide two types of special benefits:

• Direct Exposure – The primary special benefit provided by the PBID’s intangible activities is exposure. The intangible activities increase awareness of the PBID as a commercial and business destination and lead to increased patronage.


• Incidental Exposure – The PBID’s intangible activities will also have a secondary special benefit of incidental exposure, such as word-of-mouth exposure, that results from the direct exposure and increases awareness of the PBID as a commercial and business destination.

The majority of the benefit from these activities is the direct exposure; the incidental exposure is a lesser benefit. It is this Engineer’s estimation that ninety percent (90%) of the special benefit from the intangible activities is direct exposure, while ten percent (10%) is incidental exposure. Assessed parcels will receive both as special benefits; non-assessed parcels within and adjacent to the PBID will not be directly marketed and therefore only receive the general benefit of incidental exposure. Factors Determined Based on the foregoing analysis, all assessed parcels within the PBID specially benefit from the PBID’s activities and improvements, and have been assigned a benefit factor of 1.0. Parcels that are not assessed have been assigned benefit factors based on the portion of the benefit they will receive, as described above. None of the PBID budget categories have been designated an “improvement” benefit factor. Therefore, the fifteen percent (15%) improvement benefit factor was not used in the calculations of this Engineer’s Report. Instead, the non-assessed parcels will benefit from twelve and one-half percent (12.5%) of the tangible activities and ten percent (10%) of the intangible activities; therefore they have been assigned benefit factors of 0.125 and 0.10 respectively. ii. Non-Assessed Benefit Characteristics There are two types of parcels that are not assessed; those within the PBID and those immediately adjacent to and accessible from the PBID. Because they generally benefit in a differing manner, distinct parcel characteristics are used to quantify the general benefit to each type.

• Inside – Non-assessed parcels inside of the PBID are surrounded by parcels that are assessed and receiving the full special benefits; they will, therefore, receive the general benefit of proximity. These parcels are impacted on more than one side by the PBID’s activities and improvements and activities and improvements are provided all around them. Because these parcels are surrounded by specially benefitted parcels, it is appropriate that parcel square footage be used to measure the general benefit they receive.

• Adjacent – Adjacent parcels are those that are immediately adjacent to or directly across the street from specially benefitted parcels, and accessible from specially benefitted parcels. These parcels generally benefit differently than those inside the PBID, because these parcels are adjacent to, rather than surrounded by, specially benefitted parcels. Square footage is not an appropriate measure of benefit to these parcels. Because the parcels are not surrounded by serviced parcels, a long, shallow parcel with the same square footage as a deep, narrow parcel will receive a different level of general benefit. Likewise, two parcels with the same depth but a different width adjacent to serviced parcels will benefit differently. To account for this difference, it is appropriate that parcel linear frontage be used to measure the general benefit the adjacent parcels receive. The linear footage is the length of parcels fronting public streets. The amount listed for “assessed linear feet” is the value for all assessed parcels within the PBID and the amount listed for “non-assessed linear feet” is the value for all non-assessed parcels adjacent to the district boundary.

iii. Calculations To quantify and separate the general benefit to non-assessed parcels, the following calculations were undertaken for each budget category.


1. The total service budget for each category was determined and the amount of general

benefit to the public-at-large was subtracted from the category budget. 2. The benefit factor applicable to each activity or improvement was multiplied by the parcel

square footage or linear frontage of assessed and non-assessed parcels, to determine the number of benefit units received by each parcel group.

3. The benefit units for all parcel groups were summed, and the percentage of benefit units attributable to each parcel group was calculated.

4. The total remaining activity and improvement budget, less the amount already determined to be general benefit to the public-at-large, was allocated to general and special benefit categories for each parcel group using the calculated benefit percent and applicable benefit characteristic methodology.

5. The special and general benefit resulting from the administration and contingency / reserve portions of the budget were determined based on the proportional allocation of benefits derived from activities and improvements.

District Enhancement Programs The district enhancement programs budget, minus the amount of general benefit to the public-at-large, is $606,098.68. The calculations below determine the amount of general benefit to non-assessed parcels within the PBID.

Parcel Type Square Footage

Benefit Factor Benefit Units

Benefit Percent

Remaining Budget

Assessed 13,062,768.00 X 1.000 =13,062,768.00 100.00% X $606,098.68 = $606,098.68

Non-Assessed 0.00 X 0.125 = 0 0.00% X $606,098.68 = $0.00

The district enhancement programs budget, minus the amount of general benefit to the public and non-assessed parcels within the PBID, is $606,098.68. The calculations below determine the amount of general benefit to parcels adjacent to the PBID.

Parcel Type Linear Frontage


Benefit Percent

Remaining Budget

Inside 45,446.00 X 1.000 = 45,446.00 93.535% X $606,098.68 = $566,911.89

Adjacent 25,131.00 X 0.125 = 3,141.38 6.465% X $606,098.68 = $39,186.79

Therefore, the allocation of the district enhancement programs budget is as follows:

General Benefit – Public At Large $23,941.53

General Benefit – Inside Parcels $0.00

General Benefit – Adjacent Parcels $39,186.79

Special Benefit $566,911.89

Total $630,040.21


Economic Development The economic development budget, minus the amount of general benefit to the public-at-large, is $39,884.09. The calculations below determine the amount of general benefit to non-assessed parcels within the PBID.

Parcel Type Square Footage


Benefit Percent

Remaining Budget

Assessed 13,062,768.00 X 1.000 =13,062,768.00 100.00% X $39,884.09 = $39,884.09

Non-Assessed 0.00 X 0.100 = 0 0.00% X $39,884.09 = $0.00

The economic development budget, minus the amount of general benefit to the public and non-assessed parcels within the PBID, is $39,884.09. The calculations below determine the amount of general benefit to parcels adjacent to the PBID.

Parcel Type Linear Frontage


Benefit Percent

Remaining Budget

Inside 45,446.00 X 1.000 = 45,446.00 94.760% X $39,884.09 = $37,794.13

Adjacent 25,131.00 X 0.100 = 2,513.10 5.240% X $39,884.09 = $2,089.96

Therefore, the allocation of the economic development budget is as follows:

General Benefit – Public At Large $1,575.46

General Benefit – Inside Parcels $0.00

General Benefit – Adjacent Parcels $2,089.96

Special Benefit $37,794.13

Total $41,459.55

Administration and Contingency / Reserve The advocacy & administration and contingency budget line items relate to the activities and improvements provided. These costs have been allocated proportionally based on the special and general benefit provided by each category.

Special Benefit to Parcels

General Benefit to Parcels

District Enhancement Programs $566,911.89 $39,186.79

Economic Development $37,794.13 $2,089.96

Activity Totals $604,706.02 $41,276.75

Percent 93.610% 6.390%

Advocacy & Administration, Contingency

$151,176.50 $10,319.19

Total Parcel Benefits $755,882.52 $51,595.94


iv. Total Benefits Based on the foregoing calculations, the total benefits to assessed parcels, non-assessed parcels, and the general public are:

Special Benefit to Parcels

General Benefit to Parcels

General Benefit to Public Total

District Enhancement Programs $566,911.89 $39,186.79 $23,941.53 $630,040.21

Economic Development $37,794.13 $2,089.96 $1,575.46 $41,459.55

Advocacy & Administration, Contingency

$151,176.50 $10,319.19 $6,379.25 $167,874.94

Total $755,882.52 $51,595.94 $31,896.24 $839,374.70

c. Non-Assessment Funding

The programs funded by the PBID receive additional non-assessment funding in the form of grants, corporate sponsorships, event income, and other miscellaneous funds. These funding sources are anticipated to equal or exceed the amount of general benefit conferred annually by the PBID’s activities and improvements, $83,492.18. These non-assessment funds will be used to pay for the general benefit provided by the PBID’s activities and improvements, ensuring that parcel assessments will only be used to provide special benefits and “any additional costs of providing general benefits [are] not included in the amounts assessed.”27

2. Special Benefit The activities and improvements to be provided by the PBID constitute and convey special benefits directly to the assessed parcels. Assessment law requires that “the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided.”28 Further, “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”29 Special benefit “includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed.”30 To determine the total special benefit value to be conveyed to the assessed parcels, we deduct the general benefit value ($83,492.18) from the total value of the activities and improvements ($839,374.70). The remaining $755,882.52 is considered the special benefit to assessed parcels (the “Total Assessment”). The Total Assessment represents the total value of the special benefit to be provided by the activities and improvements. The Total Assessment has been proportionally divided among the assessed parcels so that no assessment exceeds the reasonable cost of the proportional special benefit conferred on a parcel. The assessment rate has been designed to ensure that “properties that receive the same proportionate special benefit pay the same assessment.”31

27 Streets and Highways Code section 36632(a) 28 Cal. Const., art XIII D §4(a) 29 Ibid 30 Streets and Highways Code section 36615.5 31 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057


Service Provided Total Benefit Value

General Benefit Value to Public

Benefit Value to Parcels (Special & General)

Special Benefit to Assessed Parcels

District Enhancement Programs $630,040.21 $23,941.53 $606,098.68 $566,911.89

Economic Development $41,459.55 $1,575.46 $39,884.09 $37,794.13

Advocacy & Administration $151,087.45 $5,741.33 $145,346.12 $136,058.85

Contingency $16,787.49 $637.92 $16,149.57 $15,117.65

TOTAL $839,374.70 $31,896.24 $807,478.46 $755,882.52

B. Assessment Methodology

1. Base Formula

Each parcel will be assessed based on proportional special benefits received. The variables used for the annual assessment formula are parcel type and parcel square footage. These variables are appropriate measures of the proportional special benefit because the need for services, level of services, and quantity of services are all relative to these variables; thus the special benefit provided to each parcel by the services can be proportionally measured using these variables. Determination of Assessment Rates “Because not all parcels in the district are identical in size…some will receive more special benefit than others.”32 Each of the variables used relates directly to the service level and special benefit provided to each parcel. Parcel square footage is the size of the parcel, measured in square feet. Size is an appropriate measure of proportional special benefit because it relates directly to the quantity of services provided to the parcel, the highest and best use of a parcel, and reflects the long-term value implications of the PBID. The larger a parcel, the more services and benefit the parcel will receive. Because not all parcels in the PBID are identical in use, some will receive more special benefit than others. For example, an office use parcel will benefit to a lesser degree than a retail use parcel, because it will not enjoy an equivalent amount of benefit from the increased commerce resulting from the services. Further detail on the benefit to each parcel type is in the following pages. To determine the assessment rates, the assessed parcels were classified by the estimated benefit each type of parcel receives, the estimated special benefit value of the activities and improvements provided to each type was determined based on approximate cost of service provision, and an assessment rate that is proportional to the estimated proportional benefit received by each parcel type was determined. To determine the assessment rates, the estimated special benefit value for each parcel type was divided by the total assessable parcel square footage and parcel type as shown in the tables below. Parcel Type Parcel types were categorized based on their typical amount of foot and vehicle traffic on the various parcels. Retail use parcels will receive the highest level of services because their owners aim to benefit from increased customers or increased use by visitors and receive the highest volume of foot and vehicle traffic. However, office use parcels will receive a reduced level of services because their owners primarily aim to benefit from increased cleanliness and security and receive a lower level of foot and vehicle traffic. The approximate cost of special benefit services by parcel type was determined. Then, the special benefit

32 Dahms v. Downtown Pomona (2009) 174 Cal.App.4th 708


cost of services by type was divided by the square footage of those parcels to determine the assessment rates. Parcel Size The PBID’s services will benefit each assessed parcel as a whole. The service budget which, in this Engineer’s estimation, represents special benefits to the parcels, has been allocated based on parcel size.

Parcel Type

Initial Parcel Size Budget

Parcel Square Footage

Initial Parcel Assessment Rate ($/sqft/yr)

Retail $727,998.96 ÷ 12,133,316 = $0.06

Office $27,883.56 ÷ 929,452 = $0.03

Summary of Assessment Rates Therefore, for year 2021, the maximum annual assessment rates to parcels are as shown below and in Appendix 6. Maximum annual assessment rates may be subject to annual increase of no more than $0.0025 per year for office parcels and $0.005 per year for retail parcels, as shown in Appendix 6. If you would like more information about parcel assessments, please call Civitas at (916) 437-4300 or (800) 999-7781.

Parcel Type Lot Rate per Square Foot

Retail $0.06

Office $0.03

2. Retail Use Parcels

Retail use parcels will receive and most benefit from all PBID services, which are aimed to attract and increase customers and visitors to assessed parcels. These parcels have a commercial component because their owners aim to benefit from increased customers or increased use by visitors. Additionally, these parcels require the greatest level of services, specifically from the district enhancement programs and economic development categories, due to the volume of foot and vehicle traffic.

3. Office Use Parcels

Office use parcels will benefit from PBID services aimed to attract customers and retain tenants to assessed parcels. Due to the nature of office use parcels, they do not receive as much foot traffic, which primarily consist of tenants or employees within the parcel or those patrons seeking a specific service. These parcels will benefit by being safer and maintained, thus attracting customers, new tenants, and retaining existing tenants, but will not benefit to the same degree as retail parcels.

4. Publicly Owned Parcels

The California Constitution, in Article XIII D, provides that “parcels within a district that are owned or used by any agency, [or by] the State of California…shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” No public agency owning parcels in the PBID has made such a demonstration. Therefore, publicly owned parcels will be assessed at the full office use rate. Although these publicly owned parcels do not have a commercial component, they will benefit from certain PBID activities and improvements. These parcels will receive and benefit from district enhancement programs services.


5. Non-Assessed Parcel

There are currently zero (0) parcels within the PBID that will not be assessed. A non-assessed parcel are those parcels that do not qualify as a retail or office use parcel and would not specially benefit from or directly receive the PBID’s activities and improvements. Because there are no non-assessed parcels within the boundaries of the PBID, there are no inside, non-assessed parcels accounted for in the analysis of general benefit.

6. Changes in Data Every effort has been made to ensure each parcel included in the PBID is clearly identified and that all parcels included in the PBID are consistent in the boundary map and the assessment calculation table. However, errors in data can and may arise or data may change after formation of the PBID. Inconsistencies may include updated parcel sizes or parcel splits. If inconsistencies arise, the order of precedence shall be: 1) the assessment calculation table and 2) the boundary map. Based on the assessment calculation table, a parcel owner could calculate if the appropriate assessment amount was charged. Additionally, using the boundary map, a parcel owner could determine if its APN was correctly identified. If the parcel size or type of a parcel changes during the term of the PBID, the assessment calculation may be modified accordingly.

C. Assessment Notice During the hearing process, an Assessment Ballot will be sent to owners of each parcel in the PBID. The Assessment Ballot provides an estimated assessment. The final individual assessment for any particular parcel may change, up or down, if the parcel square footage or type differ from those used to calculate the amount shown on the notice, which can be found in Appendix 5.

D. Time and Manner for Collecting Assessments As provided by State Law, the PBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Sacramento. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The City of Citrus Heights shall distribute funds collected to SMP. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the PBID assessments.


E. Engineer’s Certification I hereby certify, to the best of my knowledge and experience, that each of the identified assessed parcels located within the Stockton Boulevard Property and Business Improvement District will receive a special benefit over and above the general benefits conferred and that the amount of the assessment is no greater than the proportional special benefits conferred on each parcel, as described in this Engineer’s Report. Review of this Stockton Boulevard Property and Business Improvement District Management District Plan and preparation of the Engineer’s Report was completed by: __________________________ Ross Peabody State of California __January 6, 2020____________________ Date This Engineer’s Report is intended to be distributed as part of the Management District Plan in its entirety, including the Assessment Calculation Table (Appendix 5) and the Boundary Map. Reproduction and distribution of only Section VII of this Management District Plan violates the intent of this stamp and signature.


APPENDIX 1 – PBID LAW

Property and Business Improvement District Law of 1994 Streets and Highways Code section 36600 et seq.

*** This document is current through the 2014 Supplement *** (All 2013 legislation)

ß 36600. Citation of part

This part shall be known and may be cited as the "Property and Business Improvement District Law of 1994."

ß 36601. Legislative findings and declarations

The Legislature finds and declares all of the following: (a) Businesses located and operating within the business districts of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of the business districts of its cities in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow cities to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that benefits from those improvements. (d) Assessments levied for the purpose of providing improvements and promoting activities that benefit real property or businesses are not taxes for the general benefit of a city, but are assessments for the improvements and activities which confer special benefits upon the real property or businesses for which the improvements and activities are provided.

ß 36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within a business improvement area. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.

ß 36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).

ß 36603.5. Part prevails over conflicting provisions

Any provision in this part that conflicts with any other provision of law shall prevail over the other provision of law.

ß 36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ß 36605. [Section repealed 2001.]


ß 36606. "Assessment"

"Assessment" means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and promoting activities which will benefit the properties or businesses located within a property and business improvement district.

ß 36607. "Business"

"Business" means all types of businesses and includes financial institutions and professions.

ß 36608. "City"

"City" means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.

ß 36609. "City council"

"City council" means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.

ß 36610. 'Improvement"

"Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: (a) Parking facilities. (b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms. (d) Lighting and heating facilities. (e) Decorations. (f) Parks. (g) Fountains. (h) Planting areas. (i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the area. (k) Ramps, sidewalks, plazas, and pedestrian malls. (l) Rehabilitation or removal of existing structures.

ß 36611. "Property and business improvement district"; "District"

"Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part.

ß 36612. "Property"

"Property" means real property situated within a district.

ß 36613. "Activities"

"Activities" means, but is not limited to, all of the following: (a) Promotion of public events which benefit businesses or real property in the district. (b) Furnishing of music in any public place within the district. (c) Promotion of tourism within the district. (d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Activities which benefit businesses and real property located in the district.


ß 36614. "Management district plan"; "Plan"

"Management district plan" or "plan" means a proposal as defined in Section 36622.

ß 36614.5. "Owners' association"

"Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all documents relating to activities of the district.

ß 36615. "Property owner"; "Business owner"; "Owner"

"Property owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. "Business owner" means any person recognized by the city as the owner of the business. "Owner" means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.

ß 36616. "Tenant"

"Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ß 36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

ß 36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter.

ß 36620.5. Requirement of consent of city council

A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.

ß 36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or


business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following: (1) A map showing the boundaries of the district. (2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following: (1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.

ß 36622. Contents of management district plan

The management district plan shall contain all of the following: (a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district. (c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected lands and businesses included. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements and activities proposed for each year of operation are the same, a description of the first year's proposed improvements and activities and a statement that the same improvements and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. (e) The total annual amount proposed to be expended for improvements, maintenance and operations, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to


be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements. (g) The time and manner of collecting the assessments. (h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) A list of the properties or businesses to be assessed, including the assessor's parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof, including operation and maintenance. (l) Any other item or matter required to be incorporated therein by the city council.

ß 36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.


ß 36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements or activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

ß 36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish the proposed property and business improvement district, the city council shall adopt a resolution of formation that shall contain all of the following: (1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement about whether bonds will be issued, and a description of the exterior boundaries of the proposed district. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received. (5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements and activities funded by the assessments proposed to be levied. (b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.

ß 36626. Resolution establishing district

If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in paragraphs (1) to (8), inclusive, of subdivision (b) of Section 36625, but need not contain information about the preliminary resolution if none has been adopted.

ß 36626.5. [Section repealed 1999.]




ß 36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

ß 36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.

ß 36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements and activities.

ß 36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.

ß 36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and a new district established pursuant to this part.

ß 36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part shall be charged interest and penalties.

ß 36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.


(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

ß 36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

ß 36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.

ß 36635. Request to modify management district plan

The owners' association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.

ß 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention; Modification of improvements and activities by adoption of resolution after public hearing

(a) Upon the written request of the owners' association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public meetings and public hearings pursuant to this section shall comply with both of the following: (1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public meeting. (2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public meeting, to each business owner or property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

ß 36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

ß 36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although


proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.




ß 36650. Report by owners' association; Approval or modification by city council

(a) The owners' association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The owners' association's first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used. (b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information: (1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements and the activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6) The amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c) The city council may approve the report as filed by the owners' association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.

ß 36651. Designation of owners' association to provide improvements and activities

The management district plan may, but is not required to, state that an owners' association will provide the improvements or activities described in the management district plan. If the management district plan


designates an owners' association, the city shall contract with the designated nonprofit corporation to provide services.

ß 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

ß 36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances: (1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the area who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

ß 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected


after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.


APPENDIX 2 – 2015 ASSESSMENT CALCULATION TABLE

Map ID

Assessor Parcel Number (APN)

Parcel Size (sqft)1

Parcel Use Code2

Initial Assessment

Rate ($/sqft/yr)

Initial Total Annual

Assessment ($/yr)

44 23300440010000 63,598 R $0.06 $3,815.88

45 23300440020000 67,082 O $0.03 $2,012.46

46 23300440050000 60,548 R $0.06 $3,632.88

47 23300440060000 38,333 O $0.03 $1,149.99

48 23300440070000 37,026 O $0.03 $1,110.78

49 23300440080000 37,026 O $0.03 $1,110.78

50 23300440090000 249,163 R $0.06 $14,949.78

51 23300440100000 22,366 R $0.06 $1,341.96

54 23300440130000 54,450 R $0.06 $3,267.00

145 23304400010000 37,026 R $0.06 $2,221.56

146 23304400020000 41,305 R $0.06 $2,478.30

147 23304400030000 16,811 R $0.06 $1,008.66

148 23304400040000 27,996 R $0.06 $1,679.76

149 23304400050000 23,795 R $0.06 $1,427.70

150 23304400060000 26,922 R $0.06 $1,615.32

151 23304400070000 111,514 R $0.06 $6,690.84

152 23304400080000 23,258 R $0.06 $1,395.48

153 23304400240000 2,880 R $0.06 $172.80

154 23304400270000 288,367 R $0.06 $17,302.02

155 23304400280000 73,616 R $0.06 $4,416.96

156 23304400290000 49,223 R $0.06 $2,953.38

231 23306800040000 89,298 O $0.03 $2,678.94

232 23306800050000 60,548 R $0.06 $3,632.88

233 23306800080000 49,223 O $0.03 $1,476.69

234 23306800090000 43,560 R $0.06 $2,613.60

235 23306800100000 96,703 R $0.06 $5,802.18

236 23306800110000 109,336 R $0.06 $6,560.16

237 23306800120000 73,616 R $0.06 $4,416.96

238 23306800130000 73,181 R $0.06 $4,390.86

239 23306800140000 67,518 R $0.06 $4,051.08

240 23306800150000 63,598 R $0.06 $3,815.88

241 23306800190000 28,750 O $0.03 $862.50

242 23306800200000 40,075 O $0.03 $1,202.25

243 23306800210000 23,522 O $0.03 $705.66

244 23306800220000 41,200 O $0.03 $1,236.00

245 23306800230000 38,500 O $0.03 $1,155.00


Map ID


Parcel Size (sqft)1

Parcel Use Code2

Initial Assessment

Rate ($/sqft/yr)


Assessment ($/yr)

248 24300600120000 17,860 R $0.06 $1,071.60

249 24300600130000 23,830 R $0.06 $1,429.80

250 24300600160000 102,802 R $0.06 $6,168.12

251 24300600180000 41,260 O $0.03 $1,237.80

252 24300600210000 152,895 R $0.06 $9,173.70

253 24300600230000 22,660 R $0.06 $1,359.60

254 24300600270000 30,290 R $0.06 $1,817.40

255 24300600330000 32,359 R $0.06 $1,941.54

256 24300600340000 34,664 R $0.06 $2,079.84

257 24300600390000 266,587 R $0.06 $15,995.22

258 24300600400000 42,558 R $0.06 $2,553.48

259 24300600410000 48,787 R $0.06 $2,927.22

260 24300600420000 65,776 R $0.06 $3,946.56

261 24300600430000 40,075 R $0.06 $2,404.50

262 24300600490000 6,214 R $0.06 $372.84

263 24300600500000 25,656 R $0.06 $1,539.36

267 24300810010000 9,505 R $0.06 $570.30

268 24300810070000 40,641 R $0.06 $2,438.46

269 24300810120000 27,007 R $0.06 $1,620.42

270 24300810130000 60,548 R $0.06 $3,632.88

271 24300810140000 1,360 R $0.06 $81.60

272 24300810160000 1,753 R $0.06 $105.18

273 24300810180000 139,828 R $0.06 $8,389.68

274 24300810190000 10,940 R $0.06 $656.40

275 24300810200000 30,056 R $0.06 $1,803.36

276 24300810210000 16,117 R $0.06 $967.02

277 24300810220000 75,794 R $0.06 $4,547.64

278 24300810250000 33,932 R $0.06 $2,035.92

279 24300810260000 24,935 R $0.06 $1,496.10

280 24300810270000 43,341 R $0.06 $2,600.46

281 24300810320000 40,187 R $0.06 $2,411.22

282 24300810330000 240,016 R $0.06 $14,400.96

283 24300810340000 15,787 R $0.06 $947.22

284 24300810350000 25,077 R $0.06 $1,504.62

287 24300820030000 31,688 R $0.06 $1,901.28

288 24300820040000 6,985 R $0.06 $419.10

289 24300820050000 1,176 R $0.06 $70.56

290 24300820060000 26,303 R $0.06 $1,578.18


Map ID


Parcel Size (sqft)1

Parcel Use Code2

Initial Assessment

Rate ($/sqft/yr)


Assessment ($/yr)

291 24300820070000 37,773 R $0.06 $2,266.38

292 24300820080000 6,534 R $0.06 $392.04

293 24300820090000 36,234 R $0.06 $2,174.04

294 24300820100000 50,965 R $0.06 $3,057.90

295 24300820110000 19,468 R $0.06 $1,168.08

296 24300820120000 14,810 R $0.06 $888.60

297 24300820130000 49,658 R $0.06 $2,979.48

298 24300820140000 22,696 R $0.06 $1,361.76

299 24300820150000 38,852 R $0.06 $2,331.12

300 24300820160000 10,171 O $0.03 $305.13

304 24300820240000 44,867 R $0.06 $2,692.02

306 24300820340000 38,332 R $0.06 $2,299.92

307 24300820350000 63,162 R $0.06 $3,789.72

308 24301910150000 39,708 R $0.06 $2,382.48

309 24301910230000 217,800 R $0.06 $13,068.00

310 24301910260000 57,064 R $0.06 $3,423.84

311 24301910290000 11,761 R $0.06 $705.66

312 24301910360000 72,310 R $0.06 $4,338.60

313 24301910370000 45,302 R $0.06 $2,718.12

314 24301910410000 41,248 R $0.06 $2,474.88

315 24301910430000 66,647 R $0.06 $3,998.82

316 24301910440000 560,617 R $0.06 $33,637.02

317 24301910450000 87,120 R $0.06 $5,227.20

318 24301910460000 516,622 R $0.06 $30,997.32

319 24301910470000 41,242 R $0.06 $2,474.52

320 24301910480000 1,258,448 R $0.06 $75,506.88

321 24301920120000 553,648 R $0.06 $33,218.88

322 24301920130000 926,521 R $0.06 $55,591.26

323 24301920140000 788,436 R $0.06 $47,306.16

324 24301920150000 538,402 R $0.06 $32,304.12

325 24301920160000 121,968 R $0.06 $7,318.08

326 24301920170000 1,104,682 R $0.06 $66,280.92

327 24301920180000 139,828 R $0.06 $8,389.68

328 24301920190000 22,659 R $0.06 $1,359.54

331 24303500020000 22,366 R $0.06 $1,341.96

332 24303500070000 60,113 R $0.06 $3,606.78

333 24303500080000 60,113 R $0.06 $3,606.78

334 24303500250000 122,839 O $0.03 $3,685.17


Map ID


Parcel Size (sqft)1

Parcel Use Code2

Initial Assessment

Rate ($/sqft/yr)


Assessment ($/yr)

335 24303500280000 264,845 O $0.03 $7,945.35

336 24303500290000 8,251 R $0.06 $495.06

337 24303500300000 44,431 R $0.06 $2,665.86

338 24303500340000 62,291 R $0.06 $3,737.46

339 24303500350000 14,309 R $0.06 $858.54

340 24303500360000 64,904 R $0.06 $3,894.24

341 24303500370000 31,363 R $0.06 $1,881.78

342 24303500380000 36,590 R $0.06 $2,195.40

343 24303500410000 81,893 R $0.06 $4,913.58

344 24303500420000 35,734 R $0.06 $2,144.04

350 24304700740000 4,356 O $0.03 $130.68

354 24304800140000 850 R $0.06 $51.00

357 24304800190000 55,321 O $0.03 $1,659.63

358 24304800200000 39,450 O $0.03 $1,183.50

360 24304800220000 4,562 R $0.06 $273.72

361 24304800230000 27,124 R $0.06 $1,627.44

362 24304800240000 32,452 R $0.06 $1,947.12

364 24304800260000 32,896 R $0.06 $1,973.76

365 24304800270000 38,192 R $0.06 $2,291.52

366 24304800280000 7,067 R $0.06 $424.02

367 24304800300000 18,000 R $0.06 $1,080.00

368 24304800310000 12,840 R $0.06 $770.40

369 24304800320000 131,116 R $0.06 $7,866.96 TOTALR 13,068,005 $753,231.99

Notes: 1 Assessed parcel size was determined by others. 2 The following parcel use codes apply to the assessment formula:

R = Retail Parcel O = Office Parcel


APPENDIX 3 – DISTRICT BOUNDARY MAP


APPENDIX 4 – INTERCEPT SURVEY RESULTS I am going to read a short list of activities. For each one, please tell me how likely it is that you will do that activity either today or at any point in the future while in Sunrise MarketPlace.

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No Not at All

Likely Not at All

Likely Not at All

Likely Not at All

Likely Not at All

Likely Not at All

Likely Not at All

Likely G

No Slightly Likely Very Likely Slightly Likely

Very Likely Slightly Likely

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APPENDIX 5 – 2020 ASSESSMENT CALCULATION TABLE

Map ID


Parcel Size (sqft)

Assessment Rate

($/sqft/yr)

2020 Total Annual Assessment ($/yr)

Parcel Use Code

1 23300440010000 63,598.00 $0.06 $3,815.88 RETAIL

2 23300440020000 67,082.00 $0.03 $2,012.46 OFFICE

3 23300440050000 60,548.00 $0.06 $3,632.88 RETAIL

4 23300440060000 38,333.00 $0.03 $1,149.99 OFFICE

5 23300440070000 37,026.00 $0.03 $1,110.78 OFFICE

6 23300440080000 37,026.00 $0.03 $1,110.78 OFFICE

7 23300440100000 22,366.00 $0.06 $1,341.96 RETAIL

8 23300440130000 54,450.00 $0.06 $3,267.00 RETAIL

9 23300440140000 119,354.00 $0.06 $7,161.24 RETAIL

10 23300440170000 45,738.00 $0.06 $2,744.28 RETAIL

11 23300440180000 26,082.00 $0.06 $1,564.92 RETAIL

12 23300440190000 23,766.00 $0.06 $1,425.96 RETAIL

13 23300440200000 22,564.00 $0.06 $1,353.84 RETAIL

14 23300440210000 16,243.00 $0.06 $974.58 RETAIL

15 23304400010000 36,450.00 $0.06 $2,187.00 RETAIL

16 23304400020000 41,967.00 $0.06 $2,518.02 RETAIL

17 23304400030000 16,811.00 $0.06 $1,008.66 RETAIL

18 23304400040000 27,996.00 $0.06 $1,679.76 RETAIL

19 23304400050000 23,795.00 $0.06 $1,427.70 RETAIL

20 23304400060000 26,922.00 $0.06 $1,615.32 RETAIL

21 23304400070000 111,514.00 $0.06 $6,690.84 RETAIL

22 23304400080000 23,258.00 $0.06 $1,395.48 RETAIL

23 23304400240000 2,880.00 $0.06 $172.80 RETAIL

24 23304400270000 288,367.00 $0.06 $17,302.02 RETAIL

25 23304400280000 73,616.00 $0.06 $4,416.96 RETAIL

26 23304400290000 49,223.00 $0.06 $2,953.38 RETAIL

27 23306800040000 89,298.00 $0.03 $2,678.94 OFFICE

28 23306800050000 60,548.00 $0.06 $3,632.88 RETAIL

29 23306800080000 49,223.00 $0.03 $1,476.69 OFFICE

30 23306800090000 43,560.00 $0.06 $2,613.60 RETAIL

31 23306800100000 96,703.00 $0.06 $5,802.18 RETAIL

32 23306800110000 109,336.00 $0.06 $6,560.16 RETAIL

33 23306800120000 73,616.00 $0.06 $4,416.96 RETAIL

34 23306800130000 73,181.00 $0.06 $4,390.86 RETAIL

35 23306800140000 67,518.00 $0.06 $4,051.08 RETAIL

36 23306800150000 63,598.00 $0.06 $3,815.88 RETAIL

37 23306800190000 28,750.00 $0.03 $862.50 OFFICE

38 23306800200000 40,075.00 $0.03 $1,202.25 OFFICE

39 23306800210000 22,771.00 $0.03 $683.13 OFFICE

40 23306800220000 37,897.00 $0.03 $1,136.91 OFFICE

41 23306800230000 38,500.00 $0.03 $1,155.00 OFFICE


Map ID


Parcel Size (sqft)

Assessment Rate

($/sqft/yr)


Parcel Use Code

42 24300600120000 17,860.00 $0.06 $1,071.60 RETAIL

43 24300600130000 23,830.00 $0.06 $1,429.80 RETAIL

44 24300600160000 102,802.00 $0.06 $6,168.12 RETAIL

45 24300600180000 41,260.00 $0.03 $1,237.80 OFFICE

46 24300600210000 138,956.00 $0.06 $8,337.36 RETAIL

47 24300600230000 22,660.00 $0.06 $1,359.60 RETAIL

48 24300600270000 30,290.00 $0.06 $1,817.40 RETAIL

49 24300600330000 32,359.00 $0.06 $1,941.54 RETAIL

50 24300600340000 34,664.00 $0.06 $2,079.84 RETAIL

51 24300600390000 266,587.00 $0.06 $15,995.22 RETAIL

52 24300600400000 42,558.00 $0.06 $2,553.48 RETAIL

53 24300600410000 48,787.00 $0.06 $2,927.22 RETAIL

54 24300600420000 65,776.00 $0.06 $3,946.56 RETAIL

55 24300600430000 40,075.00 $0.06 $2,404.50 RETAIL

56 24300600490000 6,214.00 $0.06 $372.84 RETAIL

57 24300600500000 25,656.00 $0.06 $1,539.36 RETAIL

58 24300810010000 9,505.00 $0.06 $570.30 RETAIL

59 24300810070000 40,641.00 $0.06 $2,438.46 RETAIL

60 24300810120000 27,007.00 $0.06 $1,620.42 RETAIL

61 24300810130000 60,548.00 $0.06 $3,632.88 RETAIL

62 24300810140000 1,360.00 $0.06 $81.60 RETAIL

63 24300810160000 1,753.00 $0.06 $105.18 RETAIL

64 24300810180000 138,521.00 $0.06 $8,311.26 RETAIL

65 24300810190000 10,940.00 $0.06 $656.40 RETAIL

66 24300810200000 30,056.00 $0.06 $1,803.36 RETAIL

67 24300810210000 16,117.00 $0.06 $967.02 RETAIL

68 24300810220000 75,794.00 $0.06 $4,547.64 RETAIL

69 24300810250000 33,932.00 $0.06 $2,035.92 RETAIL

70 24300810260000 24,935.00 $0.06 $1,496.10 RETAIL

71 24300810270000 43,341.00 $0.06 $2,600.46 RETAIL

72 24300810320000 40,187.00 $0.06 $2,411.22 RETAIL

73 24300810330000 240,016.00 $0.06 $14,400.96 RETAIL

74 24300810340000 15,787.00 $0.06 $947.22 RETAIL

75 24300810350000 25,077.00 $0.06 $1,504.62 RETAIL

76 24300820030000 30,056.00 $0.06 $1,803.36 RETAIL

77 24300820040000 6,985.00 $0.06 $419.10 RETAIL

78 24300820050000 1,176.00 $0.06 $70.56 RETAIL

79 24300820060000 26,303.00 $0.06 $1,578.18 RETAIL

80 24300820070000 37,773.00 $0.06 $2,266.38 RETAIL

81 24300820080000 6,534.00 $0.06 $392.04 RETAIL

82 24300820090000 36,234.00 $0.06 $2,174.04 RETAIL

83 24300820100000 50,965.00 $0.06 $3,057.90 RETAIL

84 24300820110000 19,468.00 $0.06 $1,168.08 RETAIL


Map ID


Parcel Size (sqft)

Assessment Rate

($/sqft/yr)


Parcel Use Code

85 24300820120000 14,810.00 $0.06 $888.60 RETAIL

86 24300820140000 22,696.00 $0.06 $1,361.76 RETAIL

87 24300820150000 38,852.00 $0.06 $2,331.12 RETAIL

89 24300820240000 46,609.00 $0.06 $2,796.54 RETAIL

90 24300820340000 38,332.00 $0.06 $2,299.92 RETAIL

91 24300820350000 63,162.00 $0.06 $3,789.72 RETAIL

92 24300820380000 60,984.00 $0.06 $3,659.04 RETAIL

93 24301910150000 39,708.00 $0.06 $2,382.48 RETAIL

94 24301910230000 217,800.00 $0.06 $13,068.00 RETAIL

95 24301910260000 55,757.00 $0.06 $3,345.42 RETAIL

96 24301910290000 11,761.00 $0.06 $705.66 RETAIL

97 24301910360000 72,310.00 $0.06 $4,338.60 RETAIL

98 24301910370000 45,302.00 $0.06 $2,718.12 RETAIL

99 24301910410000 41,248.00 $0.06 $2,474.88 RETAIL

100 24301910430000 66,647.00 $0.06 $3,998.82 RETAIL

101 24301910440000 560,617.00 $0.06 $33,637.02 RETAIL

102 24301910450000 87,120.00 $0.06 $5,227.20 RETAIL

103 24301910460000 558,004.00 $0.06 $33,480.24 RETAIL

104 24301910470000 25,260.00 $0.06 $1,515.60 RETAIL

105 24301910490000 44,867.00 $0.06 $2,692.02 RETAIL

106 24301910500000 167,270.00 $0.06 $10,036.20 RETAIL

107 24301910510000 1,025,402.00 $0.06 $61,524.12 RETAIL

108 24301920120000 553,648.00 $0.06 $33,218.88 RETAIL

109 24301920130000 926,521.00 $0.06 $55,591.26 RETAIL

110 24301920140000 788,436.00 $0.06 $47,306.16 RETAIL

111 24301920150000 538,402.00 $0.06 $32,304.12 RETAIL

112 24301920160000 121,968.00 $0.06 $7,318.08 RETAIL

113 24301920170000 1,104,682.00 $0.06 $66,280.92 RETAIL

114 24301920180000 139,828.00 $0.06 $8,389.68 RETAIL

115 24301920190000 22,659.00 $0.06 $1,359.54 RETAIL

116 24303500020000 22,366.00 $0.06 $1,341.96 RETAIL

117 24303500070000 60,113.00 $0.06 $3,606.78 RETAIL

118 24303500080000 60,113.00 $0.06 $3,606.78 RETAIL

119 24303500250000 122,839.00 $0.03 $3,685.17 OFFICE

120 24303500280000 264,845.00 $0.03 $7,945.35 OFFICE

121 24303500290000 8,251.00 $0.06 $495.06 RETAIL

122 24303500300000 44,431.00 $0.06 $2,665.86 RETAIL

123 24303500340000 57,064.00 $0.06 $3,423.84 RETAIL

124 24303500350000 14,309.00 $0.06 $858.54 RETAIL

125 24303500360000 64,904.00 $0.06 $3,894.24 RETAIL

126 24303500370000 31,363.00 $0.06 $1,881.78 RETAIL

127 24303500380000 36,590.00 $0.06 $2,195.40 RETAIL

128 24303500410000 81,893.00 $0.06 $4,913.58 RETAIL


Map ID


Parcel Size (sqft)

Assessment Rate

($/sqft/yr)


Parcel Use Code

129 24303500420000 35,734.00 $0.06 $2,144.04 RETAIL

130 24304700740000 4,356.00 $0.03 $130.68 OFFICE

134 24304800220000 4,562.00 $0.06 $273.72 RETAIL

135 24304800230000 27,124.00 $0.06 $1,627.44 RETAIL

136 24304800240000 32,452.00 $0.06 $1,947.12 RETAIL

137 24304800260000 32,896.00 $0.06 $1,973.76 RETAIL

138 24304800270000 38,192.00 $0.06 $2,291.52 RETAIL

139 24304800280000 7,067.00 $0.06 $424.02 RETAIL

140 24304800300000 18,000.00 $0.06 $1,080.00 RETAIL

141 24304800310000 12,840.00 $0.06 $770.40 RETAIL

158 24304800320000 131,116.00 $0.06 $7,866.96 RETAIL

159 24304800190000 55,321.00 $0.06 $3,319.26 RETAIL

160 24304800200000 39,450.00 $0.06 $2,367.00 RETAIL

161 24304800140000 850.00 $0.06 $51.00 RETAIL

162 24300820160000 10,171.00 $0.03 $305.13 OFFICE

Total: 142 13,062,768.00 $755,882.52


APPENDIX 6 – 2021 MAXIMUM ANNUAL ASSESSMENT RATES The table below illustrates the maximum annual assessment rate with the assumption that the rate will be increased in 2021 by no more than $0.0025 per year for office parcels and $0.005 per year for retail parcels. The maximum rates listed are a required disclosure and not the anticipated course of action.

Year Retail Office

2021 (if maximum increases are not approved) $0.06 $0.03

2021 (if maximum increases are approved) $0.065 $0.0325


APPENDIX 7 – 2021 TOTAL ESTIMATED MAXIMUM COST OF IMPROVEMENTS, MAINTENANCE, AND ACTIVITIES The estimated maximum cost of the line items below was developed based on the estimated costs of providing services in the proposed PBID. The costs below are estimated, the actual line item costs will fluctuate. The table below shows expenditures from assessment and non-assessed funds. Assessment funds are governed by Section V. There is no limit on reallocation of non-assessment funds by SMP. The total maximum budget may exceed the maximum listed in this table if parcel ownership changes results in parcels being assessed at a higher rate due to a higher estimated benefit.

Estimated 2021 Annual Budget If Maximum Assessment Rates Are Adopted

Year

District Enhancement

Programs Economic



75% 5% 18% 2% 100%

2021 $682,543.56 $44,914.52 $163,678.07 $18,186.45 $909,322.60


CITY COUNCIL STAFF REPORT MEMORANDUM

DATE: January 23, 2020 TO: Mayor and City Council Members

Christopher W. Boyd, City Manager

FROM: Ronda Rivera, Assistant City Manager Tammy Nossardi, Finance Manager SUBJECT: Quarterly Treasurer’s Report Summary and Recommendation Staff recommends the City Council receive and file the Quarterly Treasurer’s Report for the quarter ending December 31, 2019. Fiscal Impact There is no fiscal impact associated with this action. Background and Analysis California Government Code Section 53646(b) states the “treasurer or chief fiscal officer may render a quarterly report to the chief executive officer, internal auditor, and the legislative body” within 30 days of the quarter’s end. On December 31, 2019, the market value of the city’s cash and investments was $10,421,168 down from $12,896,392 at the quarter ended September 30, 2019. This report satisfies California Government Code Section 53646(b). Attachments

1. Treasurer’s Report as of December 31, 2019

Item 13

RCM Robinson Capital Management LLC

27 Reed Boulevard

Mill Valley, CA 94941

Phone: 415-771-9421

Fax: 415-762-1980

City of Citrus Heights

Report period December 1, 2019 – December 31, 2019

The Treasurer's investment portfolio is in compliance with the California Government Code Section 53601.

*LAIF apportionment rate.

Retail sales

Holiday retail sales from November through December 24th,

2019 grew 3.5 percent with the bulk of the growth coming

from online sales, up 18 percent.

Employment

The U.S. created 145k in December, below the consensus

estimate of 160k. The reading follows a 256k gain in

November. The previous two months were revised down by

14k on net. After revisions, the average pace of job gains in the

last three months was 184k compared to 233k in the same

period a year ago. Average hourly earnings climbed 3.8 percent

from a year earlier, exceeding projections.

Trade

U.S. and Chinese trade negotiators announced they had reached

an agreement on the first phase ending the current trade war.

The trade deficit, exports minus imports, fell 8.2 percent to

$43.1bil at the end of 2019.

Equity prices

The Dow Jones and S&P 500 indexes gained 25.34 and 31.48

(including dividends), while the local California Bloomberg

Silicon Valley High Tech Index surged 54.93 percent in 2019.

Fed watch

To satisfy the demand for overnight liquidity, the Federal

Reserve has recently provided an additional $500bil through its

repo program (short for repurchase agreements, or

collateralized short-term loans), which targets mostly banks

and investment funds that carry leveraged positions.

According to the Bloomberg Fed Funds futures implied rates

function, there is no expected rate change at the January

meeting and less than 15 percent probability of a cut by the

June 2020 meeting.

Institutional Fixed Income Market Review

December 31, 2019

Source: Bloomberg; rates as of market close 12/31/19.

Month of December change in treasury rates

(3 month through 5 year maturities)

CITY OF CITRUS HEIGHTS SUMMARY OF INVESTMENTSINVESTMENT PORTFOLIO DECEMBER 31, 2019

COST FACE MARKET PERCENT DAYS TO YIELD TO WEIGHTED

MATURITY MATURITY YIELD

STATE-LOCAL AGENCY INVESTMENT FUNDS 9,939,061.41 9,939,061.41 9,939,061.41 95.4% 1 2.290% 2.184%

GENERAL ACCOUNT/US BANK 482,107.23 482,107.23 482,107.23 4.6% 1 0.000% 0.000%

FEDERAL AGENCIES/TREASURIES/CD'S/SCHWAB 0.00 0.00 0.00 0.0%

GRAND TOTAL INVESTMENT PORTFOLIO 10,421,168.64 10,421,168.64 10,421,168.64 100% 1 2.259% 2.184%

LOCAL AGENCY INVESTMENT FUND (LAIF) RATE OF RETURN 2.290%

CITY WEIGHTED AVERAGE RATE OF RETURN (including non-interest bearing checking) 2.184% CITY EFFECTIVE RATE OF RETURN DECEMBER 2019 2.780% (includes realized capital gain)

CITY EFFECTIVE RATE OF RETURN FISCAL YEAR TO DATE 2.360%

CITY INTEREST EARNINGS FISCAL YEAR TO DATE 151,770.86

In accordance with California Government Code Section 53646 as amended, the following certification accompanies this report:

The Finance Director of the City of Citrus Heights hereby certifies that sufficient investment liquidity exists and anticipated revenues are available to meet the City's

budgeted expenditure requirements for the next six months. In addition, it is hereby certified that investments in the City's portfolio comply with the requirementsof the City of Citrus Height's adopted investment policy.

Respectfully submitted,

Ronda RiveraFinance Director

CITY OF CITRUS HEIGHTS DETAIL OF PORTFOLIO INVESTMENTS

DECEMBER 2019

SymPro Cusip Moody's S & P Book Value Face Value Market Value Rate YTM Purchase Maturity Maturity/Call

Number Rating Rating Date Date Days

LOCAL AGENCY INVESTMENT FUND

Local Agency Investment Fund 9,939,061.41 9,939,061.41 9,939,061.41 2.290% 2.290% 1

TOTAL 9,939,061.41 9,939,061.41 9,939,061.41 1

GENERAL ACCOUNT/US BANK

US Bank Corporate Checking 482,107.23 482,107.23 482,107.23 0.000% 0.000% 1

TOTAL 482,107.23 482,107.23 482,107.23 1

CUSTODY ACCOUNT/SCHWAB

Schwab Bank Sweep (FDIC) - 0.00 0.00 0.060% 0.060% 1

TOTAL 0.00 0.00 0.00 1

MEDIUM TERM NOTES/FEDERAL AGENCY/CERTIFICATES OF DEPOSIT/ TREASURY COUPON SECURITIES

TOTAL 0.00 0.00 0.00

TOTAL INVESTMENT PORTFOLIO 10,421,168.64 10,421,168.64 10,421,168.64

City of Citrus Heights

Sorted By Investment TypeSales/Calls/Maturities: December 1, 2019 - December 31, 2019

Realized Gains and Losses

Investment #

Maturity DateCurrent Rate

Par Value

Book ValueMaturity/Sale

ProceedsRealized

Gain/Loss

Sale DateTotal

Earnings Yield 365Inv.Type

PurchaseDate Term

Days Held

Net EarningsTotal Total

Issuer

Federal Agency Coupon Securities

107,617.231,850,000.0011082.000 03/29/2022

1,845,110.51 1,850,000.00 4,889.49FAC 12/29/2019 112,506.7203/30/2017 2.2171,8251,004

Freddie Mac (c)

107,617.231,845,110.51 1,850,000.00 4,889.49 112,506.72 2.217Federal Agency Coupon Securities Subtotals

107,617.231,845,110.51 1,850,000.00 4,889.49 112,506.72 2.217Total Realized Gains/Losses

Portfolio CHTSAP

Run Date: 01/15/2020 - 15:53 CG (PRF_CGR1) 7.1.1Report Ver. 7.3.5

City of Citrus HeightsPortfolio Management

Portfolio Statistics and PerformanceDecember 31, 2019

Portfolio Liquidity Portfolio Composition

Aging Interval Par Value Investment Type Market Value1 - 90 Days 10,421,169 Managed Pools/Checking 10,421,169

91 Days - 1 Year 0 Federal Agency Issues 0

1 - 2 Years 0 U.S. Treasuries 0

2 - 3 Years 0 Corporate Notes 0

3 - 4 Years 0 Certificates of Deposit 0

4 - 5 Years 0

TOTAL 10,421,169

*To maturity (does not include call date)

Run Date:

1/15/2020 16:16 Portfolio CHTS

Managed Pools/Checking

100%

1.4

1.7

1.9

2.2

2.4

2.7

2.9

Dec'18 Jan'19 Feb'19 Mar'19 April'19 May'19 June'19 July'19 Aug'19 Sept'19 Oct'19 Nov'19 Dec'19

Benchmark and Portfolio Yields

CityPortfolio

2-YearTreasury

*LAIFMonthlyRate

Local Agency Investment Fund (LAIF) average monthly effective yield2 Year US Treasury notes month-end yield

Portfolio yield month-end effective rate of return

% Y

ield

Local Agency Investment Fund (LAIF) average monthly effective yield2 Year US Treasury notes month-end yield

Portfolio yield month-end effective rate of return

% Y

ield

Disclosures:

Advisory services offered through RCM Robinson Capital Management LLC, SEC Registered Investment Advisor. Securities offered

through Securities America, Inc., Member FINRA/SIPC. Douglas C. Robinson, Registered Representative. RCM Robinson Capital

Management LLC and Securities America, Inc. are separate entities.

Information contained herein is based on sources and data believed to be reliable but is not guaranteed. This is not an offer to buy or

sell securities. This data is for informational purposes and is not intended to replace statements, confirms, or 1099 Forms distributed

by the custodian(s) of your assets. Past performance does not guarantee future results. This report is a combination of multiple account

registrations and/or positions from various product sponsors and entities and may include assets not held by Securities America. Values

for “held away assets” have not been verified. These assets may not be covered by SIPC coverage. Securities America’s SIPC coverage

extends only to assets held at our firm. For assets held away from Securities America, contact your financial representative at those

entities with questions regarding their SIPC membership and coverage, and/or the accuracy of positions, share prices and share

amounts.



MEMORANDUM



FROM: Colleen McDuffee, Community Development Director Casey Kempenaar, Planning Manager Alison Bermudez, Associate Planner

SUBJECT: Municipal Code and Zoning Code Update - Marijuana Delivery


Due to regulatory changes at the State level, updates to the city’s marijuana regulations related to marijuana delivery are needed. All proposed changes are in compliance with state law and none of the proposed changes are more or less strict than permitted by state law.

Both the Zoning Code and the Municipal Code contain sections related to marijuana delivery. Therefore, the proposed Zoning Code updates were presented to the Planning Commission on December 11, 2019. The Planning Commission unanimously recommended the City Council approve the proposed amendments.

The following motions are recommended to amend both the Zoning Code and the Municipal Code in regard to the delivery of marijuana:

Motion 1: Move to determine the proposed amendments are exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the Guidelines.

Motion 2: Move to introduce for a first reading, read by title only and waive the full reading of Ordinance No. 2020 - _____, an Ordinance of the City Council of the City of Citrus Heights to amend Chapter 47 and Chapter 106 (Zoning Code Section) of the Municipal Code as shown in Attachment 1.

Fiscal Impact

There is no fiscal impact associated with this action.

Item 14

Subject: Municipal Code and Zoning Code Update – Marijuana Delivery Date: January 23, 2020 Page 2 of 3


Background and Analysis In 1996, California voters approved Proposition 215, also known as “The Compassionate Use Act of 1996”. The purpose of this proposition was to enable persons who are in need of marijuana for specified medical purposes to obtain and use it under certain situations. In 2004, SB 420 was enacted to clarify implementation of Proposition 215. In 2004, Citrus Heights adopted comprehensive regulations regarding medical marijuana. These regulations allowed for one medical marijuana dispensary to locate in Citrus Heights, subject to numerous standards and criteria. Following adoption of these regulations, a Use Permit was approved for one medical marijuana dispensary – however, it never opened. In 2012, the Municipal Code was amended to prohibit medical marijuana dispensaries. In 2013, the Municipal Code was amended to allow, subject to certain standards, the cultivation of medical marijuana in residential zones. Through a series of bills passed by the California State Legislature in 2015 and 2016, the Medical Cannabis Regulation and Safety Act (MCRSA) was established. This created the state’s first framework for the licensing, regulation, and enforcement of commercial medicinal cannabis activity. In November 2016, voters approved Proposition 64, the Adult Use of Marijuana Act (AUMA), allowing adults 21 years of age or older to legally grow, possess, and use cannabis for non-medicinal purposes, with certain restrictions, and also made it legal to sell and distribute cannabis through a regulated business as of January 2, 2018. MCRSA did not prevent a city from prohibiting marijuana businesses and deliveries, which the city did in 2016. In June 2017, the California State Legislature passed a budget trailer bill, Senate Bill 94 that integrated MCRSA and AUMA to create the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Under MAUCRSA, a single regulation system governs the medicinal and adult recreational cannabis industry in the state. In January 2019, the Bureau of Cannabis Control (BCC), the state agency that oversees marijuana, amended regulations in regard to marijuana delivery. The updated regulations allow marijuana delivery, even in jurisdictions such as Citrus Heights where marijuana businesses are banned. These revisions are necessary for compliance with state law and does not impact any existing businesses since the operation of marijuana businesses are currently, and will remain prohibited in Citrus Heights.

Subject: Municipal Code and Zoning Code Update – Marijuana Delivery Date: January 23, 2020 Page 3 of 3


Environmental Review The proposed project would not, in and of itself, have a material change to the environment. Projects subject to the amended provisions would be subject to a separate CEQA review. Therefore pursuant to the California Environmental Quality Act (CEQA), it was determined that the project is exempt from CEQA pursuant to Article 5, Section 10561(b)(3), under the common sense exemption that CEQA only applies to projects which have the potential for causing a significant effect on the environment. Attachments

1. Ordinance 2020-_____ to amend Chapter 47 and Chapter 106 (Zoning Code Section) of the Municipal Code in regard to Marijuana Deliveries

2. Planning Commission Staff Report (without attachments)

ORDINANCE NO. 2020-___

AN ORDINANCE OF THE CITY OF CITRUS HEIGHTS AMENDING CHAPTER 47, SECTION 106.42.120, AND SECTION 106.80.20 OF THE CITRUS HEIGHTS CODE

RELATING TO MARIJUANA BUSINESSES

WHEREAS, the Medical Cannabis Regulation and Safety Act (MCRSA) was established through a series of bills passed by the California State Legislature in 2015 and 2016, and created the state’s first framework for the licensing, regulation, and enforcement of commercial medicinal cannabis activity. In November 2016, voters approved Proposition 64, the Adult Use of Marijuana Act (AUMA), allowing adults 21 years of age or older to legally grow, possess, and use cannabis for non-medicinal purposes, with certain restrictions, and also made it legal to sell and distribute cannabis through a regulated business as of January 2, 2018. In June 2017, the California State Legislature passed a budget trailer bill, Senate Bill 94, which integrated MCRSA and AUMA to create the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Under MAUCRSA, a single regulation system governs the medicinal and adult recreational cannabis industry in the state. In 2016, the City amended its Municipal Code regulations of marijuana cultivation and business activity to comply with state law, and when appropriate, MCRSA and AUMA were referenced. Since the state legislature has repealed MCRSA and combined it with AUMA under the new division of state law cited collectively as the “Medicinal and Adult-Use Cannabis Regulation and Safety Act,” the City now desires to update references to the state’s cannabis regulatory framework where appropriate, and

WHEREAS, the City Council desires to update the Municipal Code regulations on deliver of

marijuana products within its jurisdiction, since the finalization of state regulations adopted pursuant to MAUCRSA which prohibit the City from prohibiting deliveries of marijuana that are done in compliance with state law. Namely, the California Code of Regulations, Title 16, Division 42, § 5416(d) states that “[a] delivery employee may deliver to any jurisdiction within the State of California provided that such delivery is conducted in compliance with all delivery provisions of this division.”

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

SECTION 1. Amendment. Chapter 47, Article I, Sections 47-1 through 47-10 of the Citrus Heights Municipal Code is hereby amended to read as set forth below:

“ARTICLE I. - MEDICAL MARIJUANACOMMERCIAL CANNABIS BUSINESSES

Sec. 47-1. - Findings and purpose.

(a) In enacting this article, it is the intent of the City Council of the City of Citrus Heights to protect the safety and welfare of the general public. The Federal Controlled Substances Act, 21 U.S.C. section 841, prohibits the possession, sale and distribution of marijuana, and the city council finds that sanctioning the opening or establishment of medical marijuana dispensaries or other commercial medical or adult-use marijuana businesses or allowing the delivery of medical marijuana within the city would be inconsistent with federal law. Further, the California State Legislature, in enacting the Medicinal and Adult-Use Cannabis Regulation and Safety Act (SB 94, 2017) has affirmed the City’s authority to prohibit all commercial marijuana businesses within its jurisdiction.

(b) Furthermore, the city council finds that medical marijuana dispensaries marijuana businesses are public nuisances in that many violent crimes have been committed that can be traced back to the

Attachment 1

proliferation of marijuana dispensariesthese businesses, including armed robberies and murders. Increased noise and pedestrian traffic, including nonresidents in pursuit of marijuana, and out of area criminals in search of prey, are commonly encountered near marijuana collectives, cooperatives and dispensaries and other marijuana businesses. The city council further finds that it is reasonable to conclude that medical marijuana deliveries and commercial medical marijuana businesses are likely to cause many of these same adverse impacts.

(c) Allowing medical marijuana collectives, cooperatives and dispensaries, or allowing any commercial medical marijuana businesses or medical marijuana deliveries, would be inconsistent with the city's mission to be the city of choice for residents and businesses to prosper and thrive and be a model of "neighborhood engagement" because medical marijuana dispensaries attract crime and detract from legitimate businesses. Therefore, in order to protect the integrity of the city and the goals upon which this city were founded, the city council finds that it is in the best interest of the residents of the city to prohibit marijuana dispensaries, and other medicinal and adult-use commercial medical marijuana businesses and medical marijuana deliveries.

(d) The purpose of this article is to prohibit medical marijuana dispensaries and commercial medical marijuanaall marijuana-related businesses (whether for medicinal or adult-use) from being opened or established in the city, and to prohibit medical marijuana deliveries from occurring in the city. Nothing in this article shall be deemed to permit or authorize any use or activity which is otherwise prohibited by any state or federal law.

Sec. 47-2. - Definitions.

For the purpose of this article, unless the context clearly requires a different meaning, the words, terms and phrases hereinafter shall have the meaning given them in this section.

City means the City of Citrus Heights.

Commercial medical marijuana business means any activity licensed pursuant to the Medical Cannabis Regulation and Safety ActMedicinal and Adult-Use Cannabis Regulation and Safety Act, Business and Professions Code § 19300 26000 et seq., including but not limited to medical marijuana cultivation, distribution, manufacturing, transporting and testing.

Commercial non-medical or adult-use marijuana business means any activity licensed by Business and Professions Code § 26000 et seq., including but not limited to non-medical marijuana cultivation, distribution, manufacturing, retail, testing, and operation of a microbusiness.

Medical marijuana means marijuana used for medical purposes in accordance with the Compassionate Use Act (Health and Safety Code § 11362.5) and the Medical Marijuana Program Act (Health and Safety Code § 11362.7 et seq.).

Medical marijuana delivery means the transfer of medical marijuana or medical marijuana products from a medical marijuana dispensary to a qualified patient or primary caregiver, as well as the use by a dispensary of any technology platform to arrange for or facilitate the transfer of medical marijuana or medical marijuana products.

Medical marijuana dispensary or dispensary means:

(1) Any facility, building, structure or location, whether fixed or mobile, where a primary caregiver makes available, sells, transmits, gives or otherwise provides medical marijuana to two or more of the following: A qualified patient or a person with an identification card, or a primary caregiver, in strict accordance with Health and Safety Code § 11362.5 et seq.; or

(2) Any facility, building, structure or location where qualified patients and/or persons with identification cards and/or primary caregivers meet or congregate in order to collectively or cooperatively, distribute, sell, dispense, transmit, process, deliver, exchange or give away marijuana for medicinal purposes pursuant in Health and Safety Code § 11362.5 et seq., and such group is organized as a medical marijuana cooperative or collective as set forth in the attorney general guidelines. The terms "primary caregiver," "qualified patient," and "person with an identification card" shall be as defined in Health and Safety Code § 11362.5 et seq.

For purposes of this article, a "medical marijuana dispensary" shall not include the following uses, as long as the location of such uses are otherwise regulated by applicable law and complies strictly with applicable law, including but not limited to, Health and Safety Code § 11362.5 et seq.:

(1) A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code;

(2) A health care facility licensed pursuant to Chapter 2 of Division 2 of the Health and Safety Code;

(3) A residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code;

(4) A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code;

(5) A residential hospice, or a home health agency licensed pursuant to Chapter 8 of the Health and Safety Code.

Medical marijuana products means medical marijuana that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or tropical product containing marijuana or concentrated cannabis and other ingredients.

Person means any individual, partnership, co-partnership, firm, association, joint stock company, corporation, limited liability corporation, collective, cooperative, or combination thereof in whatever form or character.

Sec. 47-3. - Medical marijuana dispensaries prohibited. Medical marijuana dispensaries are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, the operation of a medical marijuana dispensary. Marijuana-related businesses prohibited. Marijuana-related business are prohibited to locate or operate within the City of Citrus Heights, except marijuana deliveries may be made in accordance with Section 47-4 below. Marijuana-related business includes both medical and adult-use marijuana businesses described in the Medicinal and Adult-Use Cannabis Regulation and Safety Act as cultivators, manufacturers, retailers, microbusinesses distributors, testing facilities, or delivery businesses. Sec. 47-4. - Delivery of marijuana to locations within the city permitted. Lawfully licensed marijuana dispensaries (either medical or adult-use) from jurisdictions outside the City of Citrus Heights may make deliveries of marijuana or marijuana products pursuant to state law. Sec. 47-4. - Medical marijuana deliveries prohibited.

Medical marijuana deliveries are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, medical marijuana deliveries. This section shall not be interpreted to prohibit the transportation of medical marijuana through the city on public roads, as long as such transportation does not involve the delivery of medical marijuana within the city. Sec. 47-5. - Commercial medical marijuana businesses prohibited.

Commercial medical marijuana businesses are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, a commercial medical marijuana business.

Sec. 47-56. - Penalty.

(a) Violation of this article is a public nuisance and shall be a misdemeanor.

(b) Nothing in this article in any way limits any other remedy that may be available to the city, or any penalty that may be imposed by the city, for violations of this article. Such additional remedies, include, but are not limited to, injunctive relief, administrative citations, or a cause of action under the California Narcotics Nuisance Abatement Act (Health and Safety Code § 11570). “

Secs. 47-67—47-10. - Reserved. Section 2. Amendment. Chapter 47, Article II, Sections 47-11 through 47-14 of the Citrus

Heights Municipal Code shall repealed in their entirety.

ARTICLE II. - NON-MEDICAL MARIJUANA Sec. 47-11. - Purpose.

In enacting this article, it is the intent of the city council of the City of Citrus Heights to protect the safety and welfare of the general public. The Federal Controlled Substances Act, 21 U.S.C. section 841, prohibits the possession, sale and distribution of marijuana, and the city council finds that sanctioning the establishment of non-medical marijuana businesses or allowing the delivery of non-medical marijuana within the City would be inconsistent with federal law. The purpose of this article is to prohibit commercial non-medical marijuana businesses from being opened or established in the city, and to prohibit non-medical marijuana deliveries from occurring in the city.

Sec. 47-12. - Definitions. For the purpose of this article, unless the context clearly requires a different meaning, the words,

terms and phrases hereinafter shall have the meaning given them in this section.

City means the City of Citrus Heights.

Commercial non-medical marijuana business means any activity licensed by Business and Professions Code § 26000 et seq., including but not limited to non-medical marijuana cultivation, distribution, manufacturing, retail, testing, and operation of a microbusiness.

Non-medical marijuana means marijuana that is intended to be used for non-medical purposes pursuant to Health and Safety Code § 111362.1 et seq.

Non-medical marijuana delivery means the commercial transfer of non-medical marijuana or non-medical marijuana products to a person, including any technology that enables persons to arrange for or facilitate the commercial transfer of non-medical marijuana or non-medical marijuana products.

Non-medical marijuana products means non-medical marijuana that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or tropical product containing marijuana or concentrated cannabis and other ingredients.

Person means any individual, partnership, co-partnership, firm, association, joint stock company, corporation, limited liability corporation, collective, cooperative, or combination thereof in whatever form or character.

Sec. 47-12.1. - Non-medical marijuana deliveries prohibited. Non-medical marijuana deliveries are prohibited in the city. It shall be unlawful for any person to

engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, non-medical marijuana deliveries. This section shall not be interpreted to prohibit the transportation of non-medical marijuana through the city on public roads, as long as such transportation does not involve the delivery of non-medical marijuana within the city.

Sec. 47-13. - Commercial non-medical marijuana businesses prohibited. Commercial non-medical marijuana businesses are prohibited in the city. It shall be unlawful for any

person to engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, a commercial non-medical marijuana business.

Sec. 47-14. - Penalty. (a) Violation of this article is a public nuisance and shall be a misdemeanor.

(b) Nothing in this article in any way limits any other remedy that may be available to the city, or any penalty that may be imposed by the city, for violations of this article. Such additional remedies, include, but are not limited to, injunctive relief and administrative citations.

Section 3. Amendment. Section 106.42.120 of the Citrus Heights Municipal Code is hereby amended to read as set forth below:

“Sec. 106.42.120. - Marijuana Dispensaries, Deliveries and Businesses A. Purpose and intent. This section identifies that marijuana dispensaries and other, deliveries and

businesses, are not permitted uses in any zone of the city, and therefore, such use will not appear as an allowed use anywhere in the city.

B. Medical marijuana dispensary as a prohibited use. A medical marijuana dispensary, as defined in Section 106.80.20 is prohibited in all zones of the city. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of a medical marijuana dispensary.

C. Medical marijuana deliveries as a prohibited use. Medical marijuana deliveries, as defined in Section 106.80.20 are prohibited in all zones of the city. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of medical marijuana deliveries.

D. Commercial medical marijuana businesses as a prohibited use. A commercial medical marijuana business, as defined in Section 106.80.20 is prohibited in all zones of the city. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of a commercial medical marijuana business.

DE. Non-medical marijuana deliveries as a prohibited use. Non-medical marijuana deliveries, as defined in Section 106.80.20 are prohibited in all zones of the city. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of non-medical marijuana deliveries.

F. Commercial non-medical marijuana businesses as a prohibited use. A commercial non-medical marijuana business, as defined in Section 106.80.20 is prohibited in all zones of the city. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of a commercial non-medical marijuana business.”

Section 4. Amendment. Section 106.80.20, “Definitions of Specialized Terms and Phrases,” subdivision C. “Definitions ‘C’” of Citrus Heights Municipal Code shall be amended with respect to the following definitions only, to read as follows:

“Commercial Medical Marijuana Business. Any activity licensed pursuant to the Medical Cannabis Regulation and Safety Act, Business and Professions Code § 19300 et seq., including but not limited to medical marijuana cultivation, distribution, manufacturing, transporting and testing.

Commercial Non-Medical Marijuana Business. Any activity licensed by Business and Professions Code § 26000 et seq., including but not limited to non-medical marijuana cultivation, distribution, manufacturing, retail, testing, and operation of a microbusiness.

Commercial Medical Marijuana Business. Any commercial medicinal cannabis business activity regulated by the state under the Medicinal and Adult-Use Cannabis Regulation and Safety Act, found at California Business and Professions Code § 26000 et seq., including but not limited to medical marijuana cultivation, retail, distribution, manufacturing, transporting and testing. Commercial Non-Medical Marijuana Business. Any non-medicinal or adult-use cannabis business activity regulated by the state under the Medicinal and Adult-Use Cannabis Regulation and Safety Act, found at California Business and Professions Code § 26000., including but not limited to non-medical marijuana cultivation, distribution, manufacturing, retail, testing, and operation of a microbusiness.”

SECTION 5. Severability. If any section, subdivision, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof.

SECTION 6. Effective Date and Notice. This ordinance shall take effect thirty (30) days after its adoption, provided it is published in full or in summary within fifteen (15) days of its adoption, in a newspaper of general circulation published and circulated in the City of Citrus Heights.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights this _____ day of ______ 2020 by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members:

Jeff Slowey, Mayor


Prepared by: Alison Bermudez, Associate Planner

REQUEST The Planning Division requests the Planning Commission review the attached Zoning Code Amendment (File # OTA-19-02) concerning marijuana and forward their recommendation to the City Council. SUMMARY RECOMMENDATION The Planning Division recommends the Planning Commission make the following motions:

1. Recommend the City Council find the proposed amendments are exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the CEQA Guidelines; and

2. Recommend the City Council approve the proposed amendments to the Zoning Code in

regard to marijuana, as shown in Attachment 1. BACKGROUND In 1996, California voters approved Proposition 215, also known as “The Compassionate Use Act of 1996”. The purpose of this Proposition was to enable persons who are in need of marijuana for specified medical purposes to obtain and use it under certain situations. In 2004, SB 420 was enacted to clarify implementation of Proposition 215. In 2004, Citrus Heights adopted comprehensive regulations regarding medical marijuana. These regulations allowed for one medical marijuana dispensary to locate in Citrus Heights, subject to numerous standards and criteria. Following adoption of these regulations, a Use Permit was approved for one medical marijuana dispensary – however, it never opened. In 2012, the Municipal Code was amended to prohibit medical marijuana dispensaries. In 2013, the Municipal Code was amended to allow, subject to certain standards, the cultivation of medical marijuana in residential zones. Through a series of bills passed by the California State Legislature in 2015 and 2016, The Medical Cannabis Regulation and Safety Act (MCRSA) was established. This created the state’s first framework for the licensing, regulation, and enforcement of commercial medicinal cannabis activity. In November 2016, voters approved Proposition 64, the Adult Use of Marijuana Act (AUMA), allowing adults 21 years of age or older to legally grow, possess, and use cannabis for non-medicinal purposes, with certain restrictions, and also made it legal to sell and distribute cannabis through a regulated business as of January 2, 2018. MCRSA did not prevent a city from prohibiting marijuana businesses and deliveries, which the city did in 2016. In June 2017, the California State Legislature passed a budget trailer bill, Senate Bill 94 that integrated MCRSA and AUMA to create the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Under MAUCRSA, a single regulation system governs the medicinal and adult recreational cannabis industry in the state.

CITY OF CITRUS HEIGHTS PLANNING DIVISION STAFF REPORT

PLANNING COMMISSION MEETING December 11, 2019

Attachment 2

Zoning Code Update June 26, 2019 Page 2

In January 2019, the Bureau of Cannabis Control (BCC), the state agency that oversees marijuana, amended regulations in regard to marijuana delivery. The updated regulations allow marijuana delivery, even in jurisdictions such as Citrus Heights where marijuana business are banned. The amendments proposed are to bring the city’s Zoning Code in compliance with updated these state regulations in regard to delivery of marijuana. PROJECT DESCRIPTION Over the past few years, a number of legislative updates have been adopted at the state level pertaining to cannabis (marijuana). In response to these changes, staff has prepared updates to the marijuana sections of the Zoning Code. All proposed changes are in compliance with state law. None of the proposed changes are more or less strict than permitted by state law. The proposed changes to the Zoning Code are provided in Attachment 1 and summarized below:

• Section 106.42.120 - Deliveries: While a local government may prohibit commercial marijuana businesses such as dispensaries and delivery operations, the state no longer allows local governments to prohibit a person within its jurisdiction to “receive” deliveries of marijuana (both medical and non-medical). Therefore, this section was amended for consistency. It should be noted this amendment does not change the city’s current prohibition on all marijuana businesses types, the amendment only allows a personal delivery from a business originating outside city limits.

• Definitions – Section 106.80.020: The existing definition of “commercial medical

marijuana business” and “commercial non-medical marijuana business” have been updated with correct citations.

ANALYSIS The revisions are necessary in order to provide consistency with MAUCRSA. The proposal does not impact any existing businesses since the operation of marijuana businesses are currently, and will remain prohibited in Citrus Heights. ENVIRONMENTAL DETERMINATION The proposed project is an update to the Zoning Ordinance for consistency with existing state law. The proposed project would not, in and of itself, have a material change to the environment. Projects subject to the amended provisions would be subject to a separate CEQA review. Therefore pursuant to the California Environmental Quality Act (CEQA), it was determined that the project is exempt from CEQA pursuant to Article 5, Section 10561(b)(3), under the common sense exemption that CEQA only applies to project which have the potential for causing a significant effect on the environment. RECOMMENDATION The Planning Division recommends the Planning Commission make the following motions:

1. Recommend the City Council find the proposed amendments are exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the Guidelines; and

Zoning Code Update June 26, 2019 Page 3

2. Recommend the City Council approve the proposed amendments to the Zoning Code in regard to marijuana, as shown in Attachment 1.

Attachment:

1. Redline/Strikeout of Sections 106.42.120 and 108.80.020



MEMORANDUM



FROM: Colleen McDuffee, Community Development Director Stephanie Cotter, Housing and Human Services Program Coordinator

SUBJECT: Adopt a Resolution Approving an Additional $2,280,000 Allocation of HOME Investment Partnership Program Funds for a Total Allocation of $3,580,000 to the Sunrise Pointe Apartments at 7424 Sunrise Boulevard, Thereby Committing the City’s Future HOME Partnership Program Allocations for Approximately Ten Years


Staff recommends the City Council adopt Resolution No. 2020-___ Approving an additional $2,280,000 allocation of HOME Investment Partnership Program funds for a total allocation of $3,580,000 in HOME Investment Partnerships Program funds to the Sunrise Pointe Apartments at 7424 Sunrise Boulevard, thereby committing the city’s future HOME Investment Partnerships Program allocations for approximately ten years; and authorizing the City Manager to take such other steps as reasonably necessary to carry out the intent of this Resolution.

The County of Sacramento, City of Citrus Heights, and the City of Rancho Cordova are currently members of a HOME Consortium. The consortium combines jurisdictions under the federal HOME Investment Partnerships Program (HOME Program) to be entitled to receive funds jointly from the U.S. Department of Housing and Urban Development (HUD) to undertake essential housing activities by combining HOME funds with private and/or other public dollars. The Sacramento Housing and Redevelopment Agency (SHRA) administers these funds on behalf of the members of the HOME Consortium in accordance with the procedures outlined in the existing Memorandum of Understanding.

On January 10, 2019, the City Council approved entitlements for the Jamboree Housing Corporation (Jamboree) Sunrise Pointe Apartments at 7424 Sunrise Blvd in the City of Citrus Heights (Project). Also on January 10, 2019, the City of Citrus Heights approved a gap financing loan commitment of $1,300,000 of the city’s allocation of HOME funds for the acquisition and permanent financing of the Project.

Item 15

Subject: Sunrise Pointe HOME Fund Allocation Date: January 23, 2020 Page 2 of 4


Despite these efforts, the Project was not successful in securing competitive nine percent tax credits in 2019. In order to make the Project more competitive for future rounds of nine percent tax credits, Jamboree has requested an increased loan amount from the city’s allocation of HOME funds. SHRA has agreed to provide the city a $2,280,000 advance of its future HOME fund allocations with the city’s support. If approved, this will increase the total loan commitment to $3,580,000 of the city’s allocation of HOME funds for the acquisition and permanent financing of the Project. The city’s approval of the HOME funding allocation for this Project would expire with the Project’s entitlement approvals. The City Council approved entitlements for the Jamboree Sunrise Pointe Apartments Project on January 10, 2019. The city’s entitlement approvals for this project are set to expire on January 10, 2021, with the potential for two additional one-year extensions. Fiscal Impact There is no impact to the city’s General Fund associated with this action. This action would allocate $2,280,000 in future HOME funds for use within the City of Citrus Heights to Jamboree Housing Corporation for construction and permanent financing of the Sunrise Pointe Apartments at 7424 Sunrise Blvd. This is in addition to the $1,300,000 HOME fund allocation to this Project on January 10, 2019. The proposed additional commitment of $2,280,000 in HOME funds will be deducted from the city’s annual HOME fund allocations and loan repayments beginning January 1, 2020, and ending when the $2,280,000 million advance has been repaid. If approved, this action will increase the total loan commitment to $3,580,000 of the city’s allocation of HOME funds for the acquisition and permanent financing of the Project. Background and Analysis Approved in January 2019, the Sunrise Pointe (Project) will be located at 7424 Sunrise Boulevard in the City of Citrus Heights. The site is currently vacant and is surrounded by residential and commercial offices. The development will include 47 apartments, including one-, two- and three-bedroom units. The Project will add 46 units to the city’s affordable housing inventory. In addition, there will be one market-rate unit for the property manager. The Project is consistent with several policies listed in the city’s General Plan, including:

• Policy 25.1: Promote development of a variety of housing types in terms of location, cost, design, style, type, and tenure, while ensuring compatibility with adjacent land uses

• Policy 25.4: Support a variety of housing opportunities on vacant or under-utilized lands

• Policy 28.7, Action C: Continue to use density bonuses, federal funds and other available resources to promote housing opportunities, especially for low-income persons and those with special needs, including development disabilities



Developer The developer for this project is a partnership between Jamboree Housing Corporation and TLCS. Jamboree is an affordable housing developer with 28 years of experience in residential development, including 91 developments consisting of more than 8,200 homes and an asset portfolio of $1.1 billion across California. TLCS is a private, non-profit, psychosocial rehabilitation agency with 37 years of experience. TLCS provides permanent supportive housing, interim housing, and a variety of mental health services. In addition, TLCS owns or operates five special needs residential facilities in the County of Sacramento. Sayonara Replacement Obligation In 2010, the former Citrus Heights Community Redevelopment Agency demolished 15 multi-family structures on Sayonara Drive and Ming Way between Sunrise Boulevard and Lialana Way as part of the Sayonara Drive Project. The Community Redevelopment Law requires that the demolished units be replaced with affordable housing units. Following the dissolution of the former Redevelopment Agency, the city assumed all of its housing obligations. In total, the city must replace 35 units or 70 bedrooms by September 2022. As a condition of the HOME fund allocation, Jamboree will record a regulatory agreement (see attached) with covenants and restrictions against the property to ensure the city’s compliance with Health and Safety Code Section 33413 for 23 of the units (35 bedrooms). Completion of this Project will reduce the city’s replacement obligation to 12 units or 24 bedrooms. This Project will provide a total of 46 affordable units with 93 bedrooms toward the city’s replacement obligations. As outlined in Table 1, this Project will reduce the city’s remaining replacement housing need to 12 units or 24 bedrooms. The city has a requirement to replace all of the affordable units demolished as part of the Sayonara Drive Project by September 2022. As a condition of the HOME fund allocation, Jamboree has agreed to execute the attached regulatory agreement for the Project to ensure the units remain affordable consistent with the city’s replacement requirement.

Table 1 Sayonara Replacement Credits and Remaining Obligation

Housing Units Total Bedrooms

Total Sayonara Replacement Obligation

35 Units 70 Bedrooms

Sunrise Pointe Replacement Credits


Remaining Sayonara Replacement Obligation




HOME Program In 2000, the city joined with Sacramento County in a HOME Consortium to receive federal HOME funds issued by the U.S. Department of Housing and Urban Development (HUD). As a member of the Consortium, the city is able to undertake housing assistance programs. The city previously used these funds for its First-Time Home Buyer Program. However, the city now offers the First-Time Homebuyer Program utilizing other funding sources, such as state CalHome funds. The city determines annually the purpose for which the city’s federal HOME funds will be used in partnership with SHRA in accordance with the existing Memorandum of Understanding. On January 10, 2019, the City of Citrus Heights approved a gap financing loan commitment of $1,300,000 of the city’s allocation of HOME funds for the acquisition and permanent financing of the Project. This amount equaled the balance of the city’s HOME funds through December 31, 2019. Despite these efforts, the Project was not able to secure federal nine percent tax credits in 2019. In order to make the Project more competitive for future rounds of nine percent tax credits, Jamboree has requested an additional $2,280,000 loan from the city’s allocation of HOME funds. The additional HOME loan would be deducted from the city’s future allocations of HOME funds until the city’s advance is repaid, over a period of about ten years. Given the city’s annual HOME fund allocation amount of approximately $250,000, we estimate the loan will be repaid by program year 2030. If approved, this action will increase the total loan commitment to $3,580,000 of the city’s allocation of HOME funds for the acquisition and permanent financing of the Project. This additional local funding will increase local leverage points and greatly increase the projects chances of receiving an award of competitive nine percent tax credit. The city’s entitlement approvals for this project are set to expire on January 10, 2021, with the potential for two additional one-year extensions. The city’s approval of the HOME funding allocation for this Project will expire with the Project’s entitlement approvals. If this project does not materialize prior to the expiration of the Project’s entitlement approvals, the city’s annual HOME fund allocation will be restored. Attachments

1. Resolution No. 2020-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving an Additional $2,280,000 Allocation of HOME Investment Partnerships Program Funds for a Total Allocation of $3,580,000 in HOME Investment Partnerships Program Funds to the Sunrise Pointe Apartments at 7424 Sunrise Boulevard, Thereby Committing the City’s Future Home Investment Partnerships Program Allocations for Approximately Ten Years

2. Regulatory Agreement and Declaration of Restrictive Covenants

1063\01\2509707.1

RESOLUTION NO. 2020-_____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, APPROVING AN ADDITIONAL $2,280,000 ALLOCATION OF HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDS FOR A TOTAL ALLOCATION

OF $3,580,000 IN HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDS TO THE SUNRISE POINTE APARTMENTS AT 7424 SUNRISE BOULEVARD, THEREBY

COMMITTING THE CITY’S FUTURE HOME INVESTMENT PARTNERSHIPS PROGRAM ALLOCATIONS FOR APPROXIMATELY TEN YEARS

WHEREAS, the Home Investment Partnerships Program (HOME Program) provides

funds to state and local governments for acquisition, rehabilitation, and new construction of affordable housing and tenant-based rental assistance;

WHEREAS, the Sacramento Housing and Redevelopment Agency (SHRA) is the lead administrative entity for the allocation of federal HOME funds designated to benefit the City of Citrus Heights;

WHEREAS, on January 10, 2019, the city approved an initial gap financing loan

commitment of One Million Three Hundred Thousand Dollars ($1,300,000) for the acquisition and permanent financing of the Project;

WHEREAS, Jamboree Housing Corporation (Owner) has applied to SHRA for an

additional gap financing loan commitment of Two Million Two Hundred Eighty Thousand Dollars ($2,280,000) for a total loan commitment of Three Million Five Hundred Eighty Thousand Dollars ($3,580,000) of the city’s allocation of HOME funds for the acquisition and permanent financing of Sunrise Pointe Apartments located at 7424 Sunrise Boulevard (Project);

WHEREAS, the Project qualifies for funding under SHRA’s Multifamily Lending and

Mortgage Revenue Bond Policies; WHEREAS, the city’s approval of the total gap financing loan commitment of Three

Million Five Hundred Eighty Thousand Dollars ($3,580,000) of the Citrus Heights allocation of HOME funds for this Project will expire with the Project’s entitlement approvals;

WHEREAS, the city, as the housing successor to the Community Redevelopment

Agency of the City of Citrus Heights, has a statutory obligation to replace the affordable housing units demolished in 2010 as part of the Sayonara Drive Project;

WHEREAS, the Project will replace twenty-three units (23) or forty-six (46) bedrooms toward the city’s replacement housing obligation in accordance with Health and Safety Code Section 33413;

WHEREAS, the project is consistent with several policies of the General Plan, including

the following: • Policy 25.1: Promote development of a variety of housing types in terms of

location, cost, design, style, type, and tenure, while ensuring compatibility with adjacent land uses;

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• Policy 25.4: Support a variety of housing opportunities on vacant or under-utilized lands; and

• Policy 28.7, Action C: Continue to use density bonuses, federal funds and other available resources to promote housing opportunities, especially for low-income persons and those with special needs, including development disabilities; and

WHEREAS, the Project will provide additional housing options at affordable rates

within the City of Citrus Heights on a currently vacant parcel.

NOW THEREFORE BE IT RESOLVED AND ORDERED by the City Council of the City of Citrus Heights that the Council:

1. Approves an additional gap financing loan commitment of Two Million Two Hundred Eighty Thousand Dollars ($2,280,000) for a total loan commitment of Three Million Five Hundred Eighty Thousand Dollars ($3,580,000) of the city’s allocation of HOME funds for the acquisition and permanent financing of the Sunrise Pointe Apartments located at 7424 Sunrise Boulevard, thereby committing the city’s future HOME Investment Partnerships Program allocations for approximately ten years; and

2. Authorizes the City Manager to take such other steps as reasonably necessary to carry out the intent of this Resolution.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights the 23rd day of January, 2020 by the following roll call vote: Ayes: Council Members: Noes: Council Members: Abstain: Council Members: Absent: Council Members: ________________________________________ Jeff Slowey, Mayor ATTEST: _________________________________ Amy Van, City Clerk

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RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Citrus Heights 6360 Fountain Square Dr. Citrus Heights, California 95621 Attn: City Manager ______________________________________________________________________________ APN.______________________

REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS

This Regulatory Agreement and Declaration of Restrictive Covenants (the "Agreement")

is made and entered into as of __________, by and between the City of Citrus Heights, a municipal corporation (the "City") and Jamboree Housing Corporation, a California nonprofit public benefit corporation ("Owner").

RECITALS A. The City Council of the City of Citrus Heights has adopted the Redevelopment Plan for the Citrus Heights Commercial Corridor Project Area (the "Redevelopment Area"). The Community Redevelopment Agency of the City of Citrus Heights (the "Agency") was charged with implementation of the Redevelopment Plan. The Agency was dissolved by operation of State Law effective February 1, 2012. The City of Citrus Heights elected to be the housing successor to the Agency, succeeding to all of the former Agency's housing rights and obligations.

B. Prior to the dissolution of the Agency, the Agency acquired and demolished certain dwelling units occupied by very low and low income households. Pursuant to Health and Safety Code Section 33413(a) the former Agency had an obligation to replace the destroyed dwelling units with housing units affordable to very low and low income households. Upon the dissolution of the Agency, the City succeeded to the former Agency's replacement housing obligations. C. Owner owns, or simultaneously with recordation of these Affordability Covenants will own, that certain real property which is described in Exhibit A attached hereto and incorporated herein (the "Property"). The Owner intends to develop on the Property forty seven (47) units of housing. D. Pursuant to Health and Safety Code Sections 33413, 33334.3 and 33334.14(b), the City must require the recordation of covenants or restrictions which ensure that the replacement housing units constructed in satisfaction of Health and Safety Code Section 33413(a) remain available for occupancy by very low, low and moderate income households at

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affordable housing cost for fifty-five (55) years. E. The following covenants and restrictions are recorded against the Property to ensure compliance with Health and Safety Code Section 33413.

THEREFORE, the City and Owner hereby agree as follows.

ARTICLE 1. DEFINITIONS

1.1 Definitions. When used in this Agreement, the following terms shall have the respective meanings assigned to them in this Article 1.

(a) "Adjusted Income" shall mean the total anticipated annual income of all persons in a household, as calculated in accordance with 25 California Code of Regulations Section 6914 or pursuant to a successor State housing program that utilizes a reasonably similar method of calculation of adjusted income. In the event that no such program exists, the City shall provide the Owner with a reasonably similar method of calculation of adjusted income as provided in Section 6914.

(b) "Agency" shall mean the former Community Redevelopment Agency of the City of Citrus Heights, a public body, corporate and politic.

(c) "Agreement" shall mean this Regulatory Agreement and Declaration of Restrictive Covenants.

(d) "City" shall mean the City of Citrus Heights, a municipal corporation.

(e) "Development" shall mean the Property and the 47 units to be constructed on the Property, as well as all landscaping, roads and parking spaces existing thereon, as the same may from time to time exist.

(f) "Extremely Low-Income Household" shall mean a household with an Adjusted Income which does not exceed thirty percent (30%) of Median Income.

(g) "Extremely Low-Income Units" shall mean the Units, which pursuant to Section 2.2 below are required to be occupied by Extremely Low Income Households.

(h) "Low Income Household" shall mean a household with an Adjusted Income,

which does not exceed eighty percent (80%) of Median Income.

(i) "Low Income Units" shall mean the Units which, pursuant to Section 2.2 below, are required to be occupied by Low Income Households.

(j) "Median Income" shall mean the median gross yearly income adjusted for actual household size, in the County of Sacramento, California, as published from time to time

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by the State of California. In the event that such income determinations are no longer published, or are not updated for a period of at least eighteen (18) months, the City shall provide the Owner with other income determinations which are reasonably similar with respect to methods of calculation to those previously published by the State.

(k) "Owner" shall mean Jamboree Housing Corporation, a California nonprofit public benefit corporation, and its successors and assigns to the Development.

(l) "Property" shall mean the real property described in Exhibit A attached hereto and incorporated herein.

(m) "Rent" shall mean the total of monthly payments by the tenants of a Unit for the following: use and occupancy of the Unit and land and associated facilities, including parking; any separately charged fees or service charges assessed by Owner which are required of all tenants, other than security deposits; the cost of an adequate level of service for utilities paid by the tenant, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuel, but not telephone, cable or internet service; any other interest, taxes, fees or charges for use of the land or associated facilities and assessed by a public or private entity other than Owner, and paid by the tenant.

(n) "Term" shall mean the period of time beginning on the date of issuance by the City of a Certificate of Occupancy for the Development following its construction by Owner, and ending fifty-five (55) years following the date of issuance of the Certificate of Occupancy.

(o) "Units" shall mean the forty-seven (47) rental units located on the Property to be constructed by the Owner.

(p) "Very Low Income Household" shall mean a household with an Adjusted Income that does not exceed the qualifying limits for very low income households as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, and as published by the State of California Department of Housing and Community Development.

(q) "Very Low Income Units" shall mean the Units which, pursuant to Section 2.2 below, are required to be occupied by Very Low Income Households.

ARTICLE 2. AFFORDABILITY COVENANTS

2.1 Occupancy Requirements.

Ten (10) one-bedroom Units shall be rented and occupied by or, if vacant, available for rental and occupancy by Low-Income Households. Three (3) two-bedroom Units shall be rented and occupied by or, if vacant, available for rental and occupancy by Extremely Low-Income Households. Five (5) two-bedroom Units shall be rented and occupied by or, if vacant, available for rental and occupancy by Very Low-Income Households. Sixteen (16) two-bedroom Units

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shall be rented and occupied by or, if vacant, available for rental and occupancy by Low-Income Households. Five (5) three-bedroom Units shall be rented and occupied by or, if vacant, available for rental and occupancy by Extremely Low-Income Households. One (1) three-bedroom Unit shall be rented and occupied by or, if vacant, available for rental and occupancy by Very Low-Income Households. Six (6) three-bedroom Units shall be rented and occupied by or, if vacant, available for rental and occupancy by Low-Income Households.

2.2 Allowable Rent.

(a) Subject to Section 2.3 below, the monthly Rent charged the occupants of the Low Income Units shall not exceed one-twelfth (1/12th) of thirty percent (30%) of sixty percent (60%) of Median Income, adjusted for household size appropriate for the unit; the monthly Rent charged the occupants of the Very Low Income Units shall not exceed one-twelfth (1/12th) of thirty percent (30%) of fifty percent (50%) of Median Income, adjusted for household size appropriate for the unit; and the monthly Rent charged the occupants of the Extremely Low Income Units shall not exceed one-twelfth (1/12th) of thirty percent (30%) of thirty percent (30%) of Median Income, adjusted for household size appropriate for the unit.

(b) Subject to Section 2.3 below, in calculating rent for the Extremely Low Income Units, Low Income Units, and the Very Low Income Units, the following assumed household sizes shall be utilized:

Number of Bedrooms Assumed Household Size

Studio 1 One 2 Two 3 Three 4 Four 5

2.3 Increased Income of Occupying Households

(a) In the event, upon recertification of an occupant household's income, the Owner discovers that an Extremely Low Income Household no longer qualifies as an Extremely Low Income Household (but does qualify as a Very Low Income Household), such household's Unit shall be considered a Very Low Income Unit (and the monthly Rent may be increased to one-twelfth (1/12th) of thirty percent (30%) of fifty percent (50%) of Median Income upon sixty (60) days written notice to the household) and the Owner shall rent the next available Unit to an Extremely Low Income Household to comply with the requirements of Section 2.1 above.

(b) In the event, upon recertification of an occupant household's income, the Owner discovers that an Extremely Low Income Household's or a Very Low Income Household's income increases above the qualifying limit for a Very Low Income Household (but does qualify as a Low Income Household), such household's Unit shall be considered a Low Income Unit (and the monthly Rent may be increased to one-twelfth (1/12th) of thirty percent (30%) of sixty percent (60%) of Median Income upon sixty (60) days written notice to the

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household) and the Owner shall rent the next available Unit to an Extremely Low Income Household or Very Low Income Household as necessary to comply with the requirements of Section 2.1 above.

(c) In the event that, upon recertification of an occupant household's income, the income of an Extremely Low Income Household, a Very Low Income Household or a Low Income Household increases above the qualifying limit for a Low Income Household, the rent shall remain at the Rent required pursuant to Section 2.2 for a Low Income Unit, the Unit shall continue to qualify as a Low Income Unit, and the next available Unit shall be rented to an Extremely Low Income Household, Very Low Income Household, or Low Income Household, as necessary to meet the requirements of Section 2.1 above. Moreover, a Unit occupied by an Extremely Low Income, Very Low Income Household, or Low Income Household, shall be deemed, upon the termination of such Household's occupancy, to be continuously occupied by the same income classification of tenant as the vacating tenant until reoccupied, at which time the character of the Unit shall be redetermined.

(d) If the Development is subject to federal low-income housing tax credit requirements, the provisions of those requirements regarding assumed household size and continued occupancy by households whose incomes exceed the eligible income limitations shall apply in place of the provisions set forth in subsections 2.2(b) and 2.3(a) above.

2.4 Lease Provisions. Owner shall include in leases for all Units provisions which authorize Owner to immediately terminate the tenancy of any household where one or more of whose members misrepresented any fact material to the household's qualification as an Extremely Low Income Household, Very Low Income Household, or a Low Income Household. Each lease or rental agreement shall also provide that the household is subject to annual certification in accordance with Section 4.1 below, and that, if the household's income increases above the applicable limits for an Extremely Low Income Household, Very Low Income Household, or a Low Income Household, as applicable, such household's Rent may be subject to increase.

2.5 Condominium Conversion. The Owner shall not convert Units to condominium or cooperative ownership or sell condominium or cooperative conversion rights to the Property during the Term of this Agreement.

ARTICLE 3. INCOME CERTIFICATION AND REPORTING

3.1 Income Certification. The Owner will obtain, complete and maintain on file, immediately prior to initial occupancy and annually thereafter, income certifications from each household renting any of the Units. The Owner shall make a good faith effort to verify that the income provided by an applicant or occupying household in an income certification is accurate by taking one or more of the following steps as a part of the verification process: (1) obtain a pay stub for the most recent pay period; (2) obtain an income tax return for the most recent tax year; (3) conduct a credit agency or similar search; (4) obtain an income verification form from

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the applicant's current employer; (5) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies; or (6) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. Copies of tenant income certifications shall be available to the City upon request. As an alternative to the Owner obtaining and verifying the required income certification information, the City and the Owner may agree to contract with an outside party to provide these services, in which event the Owner shall be responsible for paying the costs associated with obtaining and verifying the income certification information.

3.2 Annual Report to City. Each year Owner shall submit an annual report to the City, in a form approved by the City. The annual report shall include for each Unit covered by this Agreement, the Rent and the income and household size of the household occupying the Unit. The report shall also state the date the tenancy commenced for each rental Unit and such other information as the City may be required by law to obtain.

3.3 Additional Information. Owner shall provide any additional information reasonably requested by the City. The City shall have the right to examine and make copies of all books, records or other documents of Owner which pertain to any Unit.

3.4 Records. Owner shall maintain complete, accurate and current records pertaining to the Units, and shall permit any duly authorized representative of the City to inspect records, including records pertaining to income and household size of tenant households.

ARTICLE 4.

OPERATION OF THE DEVELOPMENT

4.1 Residential Use. The Development shall be operated only for residential use. No part of the Development shall be operated as transient housing.

4.2 Property Tax Exemption. Owner may apply for a property tax exemption for the Property under any provision of law other than Revenue and Taxation Section 214(g). Owner shall not apply for any other property tax exemption without the City's prior written consent.

4.3 Taxes and Assessments. Owner shall pay all real and personal property taxes, assessments, if any, and charges and all franchise, income, employment, old age benefit, withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing, or any line or charge from attaching to the Property; provided, however, that Owner shall have the right to contest in good faith, any such taxes, assessments, or charges. In the event Owner exercises its right to contest any tax, assessment, or charge against it, Owner, on final determination of the proceeding or contest, shall immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and interest.

4.4 Nondiscrimination. All of the Units shall be available for occupancy on a continuous basis to members of the general public who are income eligible. Owner shall not give preference

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to any particular class or group of persons in renting or selling the Units, except to the extent that the Units are required to be leased to Extremely Low Income, Very Low Income Households, or Low Income Households or except as set forth in Section 4.5 below.. There shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of any Unit nor shall Owner or any person claiming under or through the Owner, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of any Unit or in connection with the employment of persons for the operation and management of the Development.

4.5 Preference to City and Agency Displacees and San Juan Unified School District Attendance Area. Owner shall give a preference in the rental of any Units to eligible households displaced by activity of the City or the Agency. The Owner shall give preference in occupancy of the Units to households that live or work within the attendance boundaries of the San Juan Unified School District, unless compliance with the foregoing criteria is prohibited by law, including applicable federal and state fair housing laws or state or federal sources of financing for the Project.

ARTICLE 5.

PROPERTY MANAGEMENT AND MAINTENANCE

5.1 Management Responsibilities. The Owner is responsible for all management functions with respect to the Development, including without limitation the selection of tenants, certification and recertification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. The City shall have no responsibility over management of the Development. The Owner shall employ a professional property management company approved by the City in its reasonable discretion to perform its management duties hereunder. A resident manager shall also be required.

5.2 Management Agent; Periodic Reports. The Development shall at all times be managed by an experienced management agent reasonably acceptable to the City, with demonstrated ability to operate residential facilities like the Development in a manner that will provide decent, safe, and sanitary housing (as approved, the "Management Agent"). The Owner shall submit for the City's approval the identity of any proposed Management Agent. The Owner shall also submit such additional information about the background, experience and financial condition of any proposed Management Agent as is reasonably necessary for the City to determine whether the proposed Management Agent meets the standard for a qualified Management Agent set forth above. If the proposed Management Agent meets the standard for a qualified Management Agent set forth above, the City shall approve the proposed Management Agent by notifying the Owner in writing. Unless the proposed Management Agent is disapproved by the City within thirty (30) days, which disapproval shall state with reasonable specificity the basis for disapproval, it shall be deemed approved.

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5.3 Performance Review. The City reserves the right to conduct an annual (or more frequently, if deemed reasonably necessary by the City) review of the management practices and financial status of the Development. The purpose of each periodic review will be to enable the City to determine if the Development is being operated and managed in accordance with the requirements and standards of this Agreement. The Owner shall cooperate with the City in such reviews.

5.4 Replacement of Management Agent. If, as a result of a periodic review, the City determines in its reasonable discretion that the Development is not being operated and managed in accordance with any of the material requirements and standards of this Agreement, the City shall deliver notice to Owner of its intention to cause replacement of the Management Agent, including the reasons therefor. Within fifteen (15) days of receipt by Owner of such written notice, City staff and the Owner shall meet in good faith to consider methods for improving the financial and operating status of the Development. If after a reasonable period as determined by the City (not to exceed sixty (60) days), the City determines that the Owner is not operating and managing the Development in accordance with the material requirements and standards of this Agreement, the City may require replacement of the Management Agent subject to obtaining any requisite approvals of all lenders, investors and governmental agencies.

If, after the above procedure, the City requires in writing the replacement of the Management Agent, Owner shall promptly dismiss the then Management Agent, and shall appoint as the Management Agent a person or entity meeting the standards for a Management Agent set forth in Section 5.2 above and approved by the City pursuant to Section 5.2 above.

Any contract for the operation or management of the Development entered into by Owner shall provide that the contract can be terminated as set forth above. Failure to remove the Management Agent in accordance with the provisions of this Section shall constitute default under this Agreement, and the City may enforce this provision through legal proceedings as specified in Section 6.2.

5.5 Approval of Management Policies. The Owner shall submit its written management policies with respect to the Development to the City for its review, and shall amend such policies in any way necessary to ensure that such policies comply with the provisions of this Agreement.

ARTICLE 6. MISCELLANEOUS

6.1 Term. The provisions of this Agreement shall apply to the Property for the entire Term; provided, however, that the provisions of Section 4.4 of the Agreement shall run with the Property and shall remain in effect in perpetuity. This Agreement shall bind any successor, heir or assign of Owner, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, except as expressly released by the City.

6.2 Covenants to Run With the Land. The City and Owner hereby declare their express intent that the covenants and restrictions set forth in this Agreement shall run with the land, and shall bind all successors in title to the Property, provided, however, that on the expiration of the Term of this Agreement said covenants and restrictions shall expire. Each and every contract,

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deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument, unless the City expressly releases such conveyed portion of the Property from the requirements of this Agreement. City shall approve an assignment of this Agreement to a limited partnership formed by the Owner for the purposes of securing an investment from a low income housing tax credit investor, provided that the general partner of such limited partnership is an affiliate of Owner, controlled by the Owner.

(a) Enforcement by the City. If Owner fails to perform any obligation under this Agreement, and fails to cure the default within 30 days after the City has notified the Owner in writing of the default or, if the default cannot be cured within 30 days, fails to commence to cure within 30 days and thereafter diligently pursue such cure, the City shall have the right to enforce this Agreement and may bring an action at law or in equity to compel the Owner's performance of its obligations under this Agreement and/or for damages and recover its attorney’s fees.

6.3 Attorneys’ Fees and Costs. In any action brought to enforce this Agreement, the prevailing party shall be entitled to all costs and expenses of suit, including attorneys' fees. This section shall be interpreted in accordance with California Civil Code Section 1717 and judicial decisions interpreting that statute.

6.4 Recording and Filing Subordination. The City and Owner shall cause this Agreement, and all amendments and supplements to it, to be recorded against the Property in the Official Records of the County of Sacramento. The City may agree to subordinate this Agreement to a lien securing a loan to finance the Property and any refinancing thereof, provided that the conditions for subordination set forth in Health and Safety Code Section 33334.14 are met and any such subordination agreement is approved by the City.

6.5 Governing Law. This Agreement shall be governed by the laws of the State of California.

6.6 Amendments. This Agreement may be amended only by a written instrument executed by all the parties hereto or their successors in title, and duly recorded in the real property records of the County of Sacramento, California.

6.7 Notice. All notices given or certificates delivered under this Agreement shall be in writing and be deemed received on the delivery or refusal date shown on the delivery receipt, if: (i) personally delivered by a commercial service which furnishes signed receipts of delivery or (ii) mailed by certified mail, return receipt requested, postage prepaid, addressed as shown on the signature page. Any of the parties may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or communications shall be sent.

6.8 Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions of this Agreement shall not in any way be affected or impaired thereby.

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IN WITNESS WHEREOF, the City and Owner have executed this Agreement by duly authorized representatives, all on the date first written above.

Address: 6360 Fountain Square Dr. Citrus Heights, CA 95621 Attention: City Manager

AGENCY: THE CITY OF CITRUS HEIGHTS, a municipal corporation By: City Manager Attest: _____________________________ City Clerk APPROVED AS TO FORM: ___________________________ City Attorney

OWNER: JAMBOREE HOUSING CORPORATION, a California nonprofit public benefit corporation By: __________________________________ Its:

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EXHIBIT A Property Description

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MEMORANDUM



FROM: Meghan Huber, Economic Development & Communications Manager

SUBJECT: Approval of Economic Development Support Fund for the Citrus Heights Chamber of Commerce


The city’s Economic Development Support Fund – Part I provides grants and sponsorships to business associations, businesses, and other economic development-related organizations for events, marketing and promotions, studies to further economic development, and other economic development-related activities that promote the program goals. Per the program, applications are received on an on-going basis and require City Council approval.

The Citrus Heights Chamber of Commerce has submitted an application for $10,000 for the city to participate in the Chairman’s Circle sponsorship program. The sponsorship meets the goals of the Economic Development Support Fund including improving the perception of the city as business friendly and increasing job base. The sponsorship also aligns with City Council’s strategic goal of diversifying the local economy. By supporting the Chamber of Commerce, we are ensuring local businesses have a place to connect and be active in the community.

Economic Development staff reviewed the application per the program’s funding criteria and the application was reviewed by the Finance Committee. The Finance Committee has recommended the application for $10,000 be forwarded to the City Council for consideration.

Staff recommends the City Council approve Resolution No. 2020____, A Resolution of the City Council of the City of Citrus Heights, approving a $10,000 sponsorship to the Citrus Heights Chamber of Commerce from the Economic Development Support Fund – Part I.

Fiscal Impact

The City Council allocated $150,000 for FY 2019-2020 to the Economic Development Support Fund (100-51-140-53450). To date, $47,555.50 has been paid in allocations. Upon approval of

Item 16

Subject: Economic Deevlopment Support Fund Application – Chamber Sponsorship Date: January 23, 2020 Page 2 of 3


this sponsorship for the requested amount and already committed funds, $92,444.50 will remain available in the fund. Background and Analysis The city created the Economic Development Support Fund Part I and II to improve economic development in the city by providing funding for special events, marketing activities, sign and design assistance, and other related activities that provide a public benefit to the city. Part I of the program is available to business associations, individual businesses, and economic development-related organizations or efforts that meet the program goals for event sponsorships, grants for marketing and promotions, studies to further economic development, and other economic development-related activities that promote program goals. The city requires applicants to submit an application along with any supporting documentation as appropriate. Upon receipt, staff reviews the application per the following funding criteria:

1. Program Goals: Meet one or more of the program goals. 2. Targeted Areas: Applications are not limited to specific geographical areas in the city,

but applications benefiting Antelope Crossing, Auburn Boulevard Specific Plan Area, former Redevelopment Area, or the Sunrise MarketPlace are emphasized.

3. Projected Outcome: Each application must describe the expected outcome of the project, program or event (e.g., expect 1,000 attendees; increased awareness of area/city; expand trade zone).

4. Leveraging Investment: Funding from the city cannot be the sole funding source. Favorable applications will demonstrate how funds are affectively leveraging public or private investment (i.e., grant match).

5. Sustainability: Ability of the association, business, or group to carry out the described program, project or event over time without continuous financial support from the city.

6. Public Benefit: Description of how the proposed program, project, or event is a benefit to the city/community.

The Citrus Heights Chamber of Commerce applied for a $10,000 Economic Development Support Grant Part I on November 14, 2019. The application is included as Attachment 2 and was reviewed by staff against the funding criteria. The application adequately meets the program funding criteria. The City of Citrus Heights and the Citrus Heights Chamber of Commerce have benefited from a productive partnership over the past several years. The Chamber has supported and promoted City programs in addition to working on projects through its overall mission, and through the Economic Development Committee, the Education Committee, and the Government Issues Committee. The Finance Committee reviewed the funding request and recommended it for approval.

Subject: Economic Deevlopment Support Fund Application – Chamber Sponsorship Date: January 23, 2020 Page 3 of 3


Attachments: (1) Resolution No. 2020-__: A Resolution of the City Council of the City of Citrus Heights, Approving a $10,000 Sponsorship to the Citrus Heights Chamber of Commerce from the Economic Development Support Fund – Part I

(2) Citrus Heights Chamber of Commerce Part 1 Funding Application

Attachment 1


RESOLUTION NO. 2020- ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, APPROVING A $10,000 SPONSORSHIP TO THE CITRUS HEIGHTS CHAMBER OF COMMERCE FROM THE ECONOMIC DEVELOPMENT SUPPORT

FUND – PART I

WHEREAS, in May 2017, the City Council created a new three-year Strategic Goal entitled

“Diversify the local economy”; WHEREAS, the City of Citrus Heights offers the Economic Development Support Program to provide funding for special events, marketing activities, or other economic development related activities that provide a public benefit to the City; WHEREAS, the City Council approved $150,000 for the Economic Development Support Fund for Fiscal Year 2019-2020; WHEREAS, the Citrus Heights Chamber of Commerce has submitted an application for $10,000 to the Economic Development Support Fund – Part I; and WHEREAS, the Finance Committee reviewed the application and recommended to the City Council that the application be approved in the amount of $10,000. NOW THEREFORE BE IT RESOLVED AND ORDERED that the City of Citrus Heights does hereby approve a sponsorship in the amount of $10,000 for the Citrus Heights Chamber of Commerce from the Economic Development Support Fund (100-51-140-53450). The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this

23rd day of January 2020 by the following vote, to wit: AYES: Council Members: NOES: Council Members: ABSTAIN: Council Members: ABSENT: Council Members:

Jeff Slowey, Mayor ATTEST: Amy Van, City Clerk

APPLICATION FOR ECONOMIC DEVELOPMENT SUPPORT FUND – PART I FUNDING

Part One – General Information

Organization Name: Citrus Heights Chamber Project Name: Chairman’s Circle Sponsorship

Address: PO Box 191

Citrus Heights CA 95611

Phone:

916-722-4545

Website: chchamber.com

Contact Person

(Name/Title):

Ilene Martzen, Board Chair Phone:

916-722-4545 Ext. 25

Email:

[email protected]

Amount of Funding Requested: $10,000

Part Two – Project Specifics The Citrus Heights Chamber is requesting the City participate in the Chairman’s Circle sponsorship program. The City has participated as a sponsor for many years in the past. Support for the previous seven fiscal years is outlined below: 2018/19 $10,000 Chairman’s Circle Diamond Sponsorship awarded through the City’s Economic Development Support Fund. 2017/18 $10,000 Chairman’s Circle Diamond Sponsorship awarded through the City’s Economic Development Support Fund. 2016/17 $10,000 Chairman’s Circle Diamond Sponsorship awarded through the City’s Economic Development Support Fund. 2015/16 $10,000 Chairman’s Circle Diamond Sponsorship awarded through the City’s Economic Development Support Fund. 2014/15 $10,000 Chairman’s Circle Diamond Sponsorship awarded through the City’s Economic Development Support Fund. 2013/14 $10,000 Chairman’s Circle Diamond Sponsorship awarded through the City’s Economic Development Support Fund. 2012/13 $7,500 Community Support Funding. The City of Citrus Heights and the Citrus Heights Chamber of Commerce have benefited from a productive partnership over the past several years. The Chamber has supported and promoted City programs in addition to working on projects through its overall mission, and through the Economic Development Committee, the Education Committee, and the Government Issues Committee. Those programs include:

Continued efforts to support ABBA (Auburn Boulevard Business Association), Antelope Crossing Business Association and Sunrise Market Place. Helping coordinate community connections, student job readiness program, student recognition at monthly Chamber luncheons, conducted annual supply drives for the City’s schools. Participated in the Holiday Referral Program, yearly. Hosted the Annual Elected Officials Reception in August. The Chamber is requesting the City participate as a Diamond Level Sponsor, valued at more than $15,000. In exchange for the Sponsorship, the City will receive the following assets: 2 seats per month at the Monthly Luncheons Luncheon Sponsorship (State of the City) - June 5 minutes at the microphone Placement of brochures at each table setting Lunch for 8 (excludes speaker, who is free) A display table to display brochures and flyers Name on the lunch flyer/website as a sponsor Luncheon Sponsorship (State of CHPD) – September 5 minutes at the microphone Placement of brochures at each table setting Lunch for 8 (excludes speaker, who is free) A display table to display brochures and flyers Name on the lunch flyer/website as a sponsor Event Sponsorship Installation Dinner – 2 Tables of 8 (16 seats) Conduct a Business Summit, spring 2020 Participate in Biz Walk, fall 2020 Rotating Logo link on Website 16x20 Diamond Sponsor Plaque on the Chamber Wall Listing as Diamond Sponsor on all PPTs Diamond Level Tile on all e-blasts with logo link 2). PROGRAM PURPOSE: Describe which of the following program objective your project meets. More than one project objective may be identified.

• Increase Job Base: Through the Chamber’s programs, committees and activities, the Chamber supports business growth and expansion. The Chamber provides networking,

education and business-to-business opportunities through its luncheons, breakfasts and mixers. The Chamber’s Education Committee continues to prepare high school students for the workplace with two Job Readiness Training Programs. Finally, school administrators and Principals are given much needed resources through its monthly meetings.

• Increase tax base: Through our Government Issues Committee, the Chamber supports

local and state legislation that is business friendly and opposes measures that would provide obstacles to a business’ success. Through the Economic Development Committee, the Chamber promotes strategies that will attract new business and retain existing business in the City. The Committee provides an open forum for elected officials and utilities and service providers to update and share upcoming initiative and activities in the government arenas.

• Promote/Market specific commercial areas of the City: The Chamber continues to

support the local business associations; Auburn Boulevard Business Association., Antelope Crossing and Sunrise Marketplace. When the Chamber and City’s annual Business walk occurs, the Chamber targets specific commercial corridors each year. The Chamber works with the City to address concerns and issues affecting the business community and follows-up with the businesses it visits to resolve problems.

• Attract new shoppers and visitors to the City: The Chamber partners with other

Chambers in the area to provide venues for members to engage other members from outside the City limits. The quarterly Sunrise Corridor Chambers’ Power Luncheon brings members from the Rancho Cordova, Carmichael, Fair Oaks and Orangevale Chambers together. Selecting a City restaurant to host the event provides local businesses opportunities to showcase their services. Members are encouraged to participate in the annual Multi-Cultural Business and Career Expo, held at the Community Center, which allows Chamber members to network with a variety of industries.

• Create or enhance a sense of place: The Chamber will continue to work with the CHPD

and City on managing those issues that concern and impact our businesses; homelessness, graffiti, illegal signs and other quality of life issues. The chamber will work closely with the Navigator Program and HART to resolve the City’s homeless issues.

• Improve perception and promote the City as business friendly: The chamber invites

the City and CH Police department to be guest speakers at a monthly chamber Luncheon so that the business community can hear about updates, ask questions and have access to the City’s Mayor, City Council Members and City Manager. The Chamber also hosts an annual Elected Officials Reception which allows businesses to network directly with local, county and state officials. In summary, our active committees, regular and special

events, along with established programs help make this an attractive location for regional businesses.

3) PROJECTED OUTCOME / BENEFIT. What is expected to result from this project? Describe how accurate record of this was obtained and will be maintained. Also, using the objectives listed in #2 above; describe how the proposed program, project or event is providing a benefit to the City / community? (No more than 1 page, typed). In addition to the services outlined above, the Chamber will provide a strategic plan for 2020 Economic Development efforts to meet the overall goal of providing relevant and useful training and information to business owners. A commitment to continually improve the Biz Walk to ensure the Chamber’s programs are all designed and geared towards creating a healthy economic environment for the City’s businesses. 4) LEVERAGING OF FUNDS. What is the total project cost? How much of this is the City being asked to fund? Does your organization have any other funds or funding commitments to assist in the funding of the project? The Chamber has a current operating budget of $200,000. The Sponsorship requested is a small percentage of the overall funding sources. The Chamber receives a regular stream of revenue from membership dues, event sponsorships and luncheon fees. 5) SUSTAINABILITY. In almost all cases the City’s support of an outside organization should be considered a temporary or one-time commitment. Does your organization or event have a plan to become financially self-sustaining? The Chamber activity pursues new corporate sponsorships (Chairman Circle Program) to fund special events and provide services to its members. The Chamber leverages the City’s support as an example to the value of partnerships for a stronger business economy within the City. The sponsorship is evaluated each year to meet the City’s and Chamber’s changing needs and priorities. The City / Chamber partnership has been productive since the incorporation of the City of Citrus Heights. The Chamber anticipates that this mutually beneficial partnership will continue and indeed expand through the future years. 6) SCHEDULE. Provide a schedule indicating when funds will be needed, when the project is to be implemented, and when it will be completed. Funding is requested within the next month so that the Chamber can begin to prepare and allocate assets for the City. By signing this document, I certify that I will only use the City funds for what has been outlined in this application.

Signature Date: *if approved, the applicant must provide a summary of the award, no later than 30-days after the end of the program, project or event.

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