Agenda packet, regular meeting, fourth session — Citrus Heights City Council Meetings, August 14, 2024

AGENDA
AUGUST 14, 2024

CITY OF CITRUS HEIGHTS CITY COUNCIL
6:00 PM REGULAR MEETING
City Hall Council Chambers
6360 Fountain Square Drive, Citrus Heights, CA
Teleconference Location – The Citizen Hotel, 926 J Street, Sacramento, CA 95814
This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953, Teleconferencing. Any member of the public may attend this meeting either at the Council Chambers or at the teleconference location.

HOW TO PARTICIPATE:

The Mayor has the discretion to lengthen or shorted the allotted times. Alternatively, you may submit your comment by 4:00 p.m. on the meeting day by completion of an online Speaker Card at https://www.citrusheights.net/FormCenter/City - Council- Meetings - Speaker- Card - 30. Written public comments shall be limited to 250 words or less. Each comment will be read aloud by the City Clerk.

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 during normal business hours at City Hall, located at 6360 Fountain Square Drive. Audio / Visual presentation material must be provided to the City Clerk's Office at least 48 hours prior to the meeting.

Email subscriptions of the agenda are available online by signing up with the City's Notify Me service.

If you need a disability- related modification or accommodation, to participate in this meeting, please contact the City Clerk ’s Office 916- 725- 2448, [email protected], or City Hall 6360 Fountain Square Drive at least 48 hours prior to the meeting. TDD: California Relay Service 7- 1 - 1.

Email subscriptions of the agenda are available online by signing up with the City's Notify Me service.

August 14, 2024 City Council Agenda Packet
08-14-24 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Lopez- Taff, Middleton, Schaefer, Karpinski- Costa, Daniels

3. Video Statement

APPROVAL OF AGENDA

PUBLIC COMMENT
Members of the public are entitled to address the City Council concerning any item within the City Council ’s subject matter jurisdiction. Pursuant to the Brown Act, the City Council is prohibited from discussing or acting on any item raised during “Public Comment” not appearing on the posted agenda.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

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.

4. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of July 10, 2024

5. SUBJECT: Auburn Boulevard Phase 2 Temporary Sign Enforcement Resolution STAFF REPORT: C. Kempenaar / A. Turcotte / R. Cave
RECOMMENDATION: Adopt Resolution No. 2024- ___ a Resolution of the City Council of the City of Citrus Heights, California, Temporarily Ceasing Enforcement of Temporary Sign Regulations During the Construction of the Auburn Boulevard Complete Streets Project- Phase 2

6. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Staff recommend the following:
aReceive and file the Quarterly Treasurer’s Report for the quarter ending Documents:

6. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Staff recommend the following:
a. Receive and file the Quarterly Treasurer’s Report for the quarter ending June 30, 2024
b. Adopt Resolution No. 2024- ___ a Resolution of the City Council of the City of Citrus Heights, California, Allocating American Rescue Plan Act (ARPA) Funds for General Government Services and Critical Projects

7. SUBJECT: Authorize City Manager To Execute A Purchase Agreement For The Acquisition Of A Portion Of 6498 Sylvan Rd., APN 243-0031-023-0000 STAFF REPORT: A. Feeney
RECOMMENDATION: Adopt Resolution No. 2024- ___ a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Purchase Agreement and Joint Escrow Instructions with Bayside Covenant Church of Citrus Heights for the Acquisition of a Portion of APN 243- 0031- 023- 0000

PUBLIC HEARINGS

8. SUBJECT: 5425 Sunrise Boulevard – Request For Letter Of Public Convenience And Necessity (PLN-24-11)
STAFF REPORT: C. Kempenaar / S. Lui
RECOMMENDATION: Move to approve the Letter of Public Convenience and Necessity to allow the issuance of a Type 21 and Type 86 alcohol license for the sale of beer/wine/spirits and instructional tastings at the proposed grocery store located at 5425 Sunrise Boulevard

REGULAR CALENDAR

9. SUBJECT: Resolution Authorizing The City Manager To Execute A Grant Recipient Agreement Between The City Of Citrus Heights And TLCS, Inc Dba Hope Cooperative For The Auburn Oaks Project
STAFF REPORT: C. Kempenaar / N. Piva
RECOMMENDATION: Adopt Resolution No. 2024- ___ a Resolution of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc dba Hope Cooperative for the Auburn Oaks Project

10. SUBJECT: County Of Sacramento – Animal Shelter Services Agreement STAFF REPORT: A. Turcotte / K. Frey / T. Campbell
RECOMMENDATION: Adopt Resolution No. 2024- ___ a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with the County of Sacramento for Animal Shelter Services

11. SUBJECT: Sunrise Boulevard Resurfacing Project – Award Of Construction Contract STAFF REPORT: RCave / LBlomquist

11. SUBJECT: Sunrise Boulevard Resurfacing Project – Award Of Construction Contract STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2024- ___ a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with VSS International, Inc. for the Sunrise Boulevard Resurfacing Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) Under Section 15301

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
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City Council meetings take place in
the City Hall Council Chambers.

Bret Daniels, Mayor
Dr. Jayna Karpinski-Costa, Vice Mayor
MariJane Lopez-Taff, Council Member
Porsche Middleton, Council Member
Tim Schaefer, Council Member

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Regular Meeting of Wednesday, August 14, 2024
City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA Teleconference Location – The Citizen Hotel, 926 J Street, Sacramento, CA 95814 Regular Meeting 6:00 p.m.

This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953, Teleconferencing. Any member of the public may attend this meeting either at the Council Chambers or at the teleconference location.

HOW TO PARTICIPATE:

The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process. The Council may take up any agenda item at any time, regardless of the order listed. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk. 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. Alternatively, you may submit your comment by 4:00 p.m. on the meeting day by completion of an online Speaker Card at https://www.citrusheights.net/FormCenter/City-Council-Meetings-Speaker-Card-30. Written public comments shall be limited to 250 words or less. Each comment will be read aloud by the City Clerk.

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 during normal business hours at City Hall, located at 6360 Fountain Square Drive. Audio/Visual presentation material must be provided to the City Clerk’s Office at least 48 hours prior to the meeting. Email subscriptions of the agenda are available online by signing up with the City’s Notify Me service.

The City provides three ways to watch a City Council meeting.

IN PERSON ONLINE ON TELEVISION
If you need a disability-related modification or accommodation, to participate in this meeting, please contact the City Clerk’s Office 916-725-2448, [email protected], or City Hall 6360 Fountain Square Drive at least 48 hours prior to the meeting. TDD: California Relay Service 7-1-1.

August 9, 2024
_______________________
Amy Van, City Clerk
Watch the livestream and replay past
meetings on the City website.

Watch live and replays of meetings
on Sac Metro Cable, Channel 14.

Agenda Packet Page 1
Citrus Heights City Council Wednesday, August 14, 2024

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REGULAR CITY COUNCIL MEETING
6:00 PM

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels

3. Video Statement

APPROVAL OF AGENDA

PUBLIC COMMENT
Members of the public are entitled to address the City Council concerning any item within the City Council’s subject matter jurisdiction. Pursuant to the Brown Act, the City Council is prohibited from discussing or acting on any item raised during “Public Comment” not appearing on the posted agenda.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

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.

4. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of July 10, 2024

5. SUBJECT: Auburn Boulevard Phase 2 Temporary Sign Enforcement Resolution STAFF REPORT: C. Kempenaar / A. Turcotte / R. Cave
RECOMMENDATION: Adopt Resolution No. 2024-___ a Resolution of the City Council of the City of Citrus Heights, California, Temporarily Ceasing Enforcement of Temporary Sign Regulations During the Construction of the Auburn Boulevard Complete Streets Project- Phase 2

6. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Staff recommend the following:
a. Receive and file the Quarterly Treasurer’s Report for the quarter ending June 30, 2024 b. Adopt Resolution No. 2024-___ a Resolution of the City Council of the City of Citrus Heights, California, Allocating American Rescue Plan Act (ARPA) Funds for General Government Services and Critical Projects
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Citrus Heights City Council Wednesday, August 14, 2024

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7. SUBJECT: Authorize City Manager to Execute a Purchase Agreement for the Acquisition of a Portion of 6498 Sylvan Rd., APN 243-0031-023-0000
STAFF REPORT: A. Feeney
RECOMMENDATION: Adopt Resolution No. 2024-___ a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Purchase Agreement and Joint Escrow Instructions with Bayside Covenant Church of Citrus Heights for the Acquisition of a Portion of APN 243-0031-023-0000

PUBLIC HEARINGS

8. SUBJECT: 5425 Sunrise Boulevard – Request for Letter of Public Convenience and Necessity (PLN-24-11)
STAFF REPORT: C. Kempenaar / S. Lui
RECOMMENDATION: Move to approve the Letter of Public Convenience and Necessity to allow the issuance of a Type 21 and Type 86 alcohol license for the sale of beer/wine/spirits and instructional tastings at the proposed grocery store located at 5425 Sunrise Boulevard

REGULAR CALENDAR

9. SUBJECT: Resolution Authorizing the City Manager to Execute a Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc dba Hope Cooperative for the Auburn Oaks Project
STAFF REPORT: C. Kempenaar / N. Piva
RECOMMENDATION: Adopt Resolution No. 2024-___ a Resolution of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc dba Hope Cooperative for the Auburn Oaks Project

10. SUBJECT: County of Sacramento – Animal Shelter Services Agreement STAFF REPORT: A. Turcotte / K. Frey / T. Campbell
RECOMMENDATION: Adopt Resolution No. 2024-___ a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with the County of Sacramento for Animal Shelter Services

11. SUBJECT: Sunrise Boulevard Resurfacing Project – Award of Construction Contract STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2024-___ a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with VSS International, Inc. for the Sunrise Boulevard Resurfacing Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) Under Section 15301

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Agenda Packet Page 3
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CITY OF CITRUS HEIGHTS

CITY COUNCIL

MINUTES
Special and Regular Meetings of Wednesday, July 10, 2024 City Hall Council Chambers
6360 Fountain Square Dr., Citrus Heights, CA

CALL SPECIAL MEETING TO ORDER
The special meeting was called to order at 5:00 p.m. by Mayor Daniels.

1. Roll Call: Council Members present: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels Council Members absent: None
Staff Members present: Feeney, Pucci and Van

PUBLIC COMMENT

CLOSED SESSION

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: APN 211-0051-019-0000 and 211-0051-020-0000
Agency Negotiator: Ashley Feeney, City Manager and Dean Pucci, Assistant City Attorney Negotiating Parties: Stoney Investments, LLC
Under Negotiation: Price, terms of payment, or both

3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: APN 243-0031-023-000
Agency Negotiator: Ashley Feeney, City Manager and Dean Pucci, Assistant City Attorney Negotiating Parties: Bayside Covenant Church Citrus Heights Under Negotiation: Price, terms of payment, or both
The City Council, City Manager and Assistant City Attorney participated in the closed session.

REPORT OUT OF CLOSED SESSION
There was no reportable action from closed session.

ADJOURNMENT
Mayor Daniels adjourned the meeting at 5:45 p.m.

CALL REGULAR MEETING TO ORDER
The regular meeting was called to order at 6:00 p.m. by Mayor Daniels.

1. The Flag Salute was led by Mayor Daniels.

2. Roll Call: Council Members present: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels ITEM 4 Agenda Packet Page 4
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Council Members absent: None
Staff Members present: Blomquist, Cave, Feeney, Lofas, Piva, Poole, Pucci, Shoberg, Van and department directors.

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

APPROVAL OF AGENDA
ACTION: On a motion by Council Member Schaefer, seconded by Council Member Middleton, the City Council approved the agenda.

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None

PRESENTATIONS

4. Proclamation of the City of Citrus Heights Proclaiming July 2024 as “Parks and Recreation Month”
Vice Mayor Karpinski-Costa read and presented the proclamation to Sunrise Recreation and Park District staff.

5. Presentation by the Citrus Heights Police Department for National Night Out on August 6, 2024 Chief of Police Executive Assistant Lofas announced the annual community event, National Night Out (NNO), to be held August 6.

IMPACT Sergeant Shoberg stated the event gives the Police Department and City the opportunity to answer community questions in various neighborhoods. He said the easiest way to register for NNO is visit citrusheightspd.net and complete the online form.

PUBLIC COMMENT
Linda Maxson spoke on safety of the Arcade-Cripple Creek Trail. She said we now see people using the path as an opportunity for crime and graffiti. She believes the Police Department should have a plan for routine patrol of the pathway, for example, officers on bike or foot.

David Shelton asked “what is Citrus Heights’ practice on illegal fireworks?” He stated there were illegal fireworks on his street and behind the houses on the street and expressed concerns with the possibility of a fire spreading to his home.

Melissa Hayden spoke on behalf of Karen Beerman, who volunteered at the Police Department over the Fourth of July to assist with loose and lost dogs. Beerman was pleased with the number of Animal Services Officers on duty during the holiday, she thinks more communication between the City and the public would have been beneficial as she felt the public was greatly unaware that Animal Control was on duty until midnight and that they had temporary holding facilities at the police station. Beerman noticed a lack of communication internally between Animal Control dispatchers and the police officers. Beerman ITEM 4 Agenda Packet Page 5
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appreciated the time and energy that it took to undertake the pilot program and the only thing she would change is mass communication internally and with the residents who took in many lost pets over the weekend but just didn’t know there was a place to take them. Hayden then spoke on her own behalfand stated their volunteer group assisted with 29 lost and found dogs on the Fourth of July. On July 3 she called into dispatch to report a loose dog and the dispatcher said they did not have Animal Control on duty. She said in the meantime she was able to contact an Animal Control Officer and explained the situation to Police Services Manager Tiffany Campbell. She said everything went great and they had three amazing RTOs..

David Warren said on the Fourth of July as he drove drown Crosswords Parkway there were people throwing M80s onto the land across from the apartments adjacent to the creek in the park land which is dry grass. He said he asked them to stop and they laughed at him. He said we need to establish a reserve police officer corps to be available for such events to expand the number of people out on patrol.

City Clerk Van read the following written public comment submitted by Holli Dae, “Disregard for homeless rights is inhumane. Homeless people are human. They may not look like you, but they are not animals.

They cry and feel sad like everybody else! To take the few things they have is cruel. I hope Citrus Heights can set an example in treating fellow humans with some dignity and respect.!” City Clerk Van read the following written public comment submitted by Serena Ostrowski, “I am writing this statement on behalf of our homeless community in Citrus Heights. I am asking for a safe place for them to sleep. It is dangerous to have homeless women hiding in secluded areas because they are afraid of getting tickets they are not able to pay for. It's even unsafe for males. These people are someone's daughter, son, sister, brother, father, mother, aunty, or uncle. Please practice compassion when making decisions affecting these individuals.”

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES
Council Member Middleton attended a League of California Cities Sacramento Valley Division Meeting and announced the July 19 meeting in Elk Grove with the topic on Police Recruit and Retention. She announced the October 16 League of California Cities Annual Expo in Long Beach and highlighted topics the African American Caucus will be discussing.

Council Member Lopez-Taff enjoyed a quiet Fourth of July in her neighborhood.

Council Member Schaefer attended a Sacramento Area Council of Governments (SACOG) meeting. He visited Denver, Colorado with SACOG and would like to give a presentation to Council to provide more details. He attended the Stars and Stripes event.

Vice Mayor Karpinski-Costa worked a safe-and-sane fireworks booth for Neighborhood Area 10 that raises funds to support food for seniors and other community needs. She attended a Sacramento Area Sewer District meeting. She provided an update on West Nile virus from the Sacramento-Yolo Mosquito and Vector Control district. She announced she will be sitting in for the next Monday with the Mayor.

Mayor Daniels attended the Stars and Stripes event.

ITEM 4 Agenda Packet Page 6
Citrus Heights City Council Wednesday, July 10, 2024

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CONSENT CALENDAR

6. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of June 27, 2024

7. SUBJECT: Sunrise Tomorrow Hotel Parcel Map Development Agreement STAFF REPORT: C. Kempenaar / M. Huber
RECOMMENDATION: Adopt Ordinance No. 2024-004 An Ordinance of the City Council of the City of Citrus Heights Adopting and Approving the Sunrise Tomorrow Hotel Development Agreement

8. SUBJECT: Dewey Drive/Van Maren Lane Enhancement Project – Award of Construction Contract
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2024-068 A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with JPB Designs, Inc. for the Dewey Drive/Van Maren Lane Enhancement Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) Under Section 15301 and Exempt from the National Environmental Policy Act (NEPA) Under 24 CFR 58.34(a)(12) and

58.35(a)(2)

9. SUBJECT: California Highway Patrol Cannabis Tax Fund Grant Program Funding Acceptance STAFF REPORT: A. Turcotte / M. Wells
RECOMMENDATION: Resolution No. 2024-069 A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager, or His Designee, to Accept Funding and Execute All Agreements and Purchasing Associated with the California Highway Patrol Cannabis Tax Fund Grant Program

10. SUBJECT: Auburn Boulevard Complete Streets Revitalization Project – Phase 2 – Federal Project CML 5475 (038) – Approval of Contract Amendment No. 4 STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2024-070 A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Amendment No. 4 to the Agreement for Professional Services with Bennett Engineering Services, Inc. for the Auburn Boulevard Complete Streets Revitalization Project – Phase 2 ACTION: On a motion by Vice Mayor Karpinski-Costa, seconded by Council Member Middleton, the City Council adopted Consent Calendar Items as follows:

Items 7, 8, 9 and 10
AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None
ITEM 4 Agenda Packet Page 7
Citrus Heights City Council Wednesday, July 10, 2024

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Item 6
AYES: Lopez-Taff, Middleton, Karpinski-Costa, Daniels
NOES: None
ABSTAIN: Schaefer
ABSENT: None

PUBLIC HEARINGS

11. SUBJECT: Draft Citizen Participation Plan Amendment and 2025-2029 Consolidated Plan Update for the Community Development Block Grant Program STAFF REPORT: C. Kempenaar / N. Piva
RECOMMENDATION: Staff recommends the following:
a. Conduct a public hearing regarding the Citizen Participation Plan amendment and 2025- 2029 Consolidated Plan update for the Community Development Block Grant Program b. Adopt Resolution No. 2024-071 A Resolution of the City Council of the City of Citrus Heights, California, Approving the Amended Citizen Participation Plan for the Community Development Block Grant Program
Housing and Human Services Program Coordinator Piva introduced the item.

Heidi Aggeler with Root Policy Research gave an overview of the Citizen Participation Plan (CPP). She noted there are three plans as part of the Federal grant requirements. The Five-Year Consolidated Plan, required by the U.S. Department of Housing and Urban Development (HUD) to receive Community Development Block Grant (CDBG) funding, helps set the stage for how the City will invest its $600,000 that it gets annually over a five-year period. The Annual Action Plan is a one-year spending plan that will set the allocation priorities for the next year. The CPP talks about how the public and stakeholders will be involved in forming the Consolidated Plan goals and action plan priorities. Elements of community engagement include: an online resident survey, virtual stakeholder interviews, “pop up” activities and events, and public hearings and opportunities for comment. She gave an overview of some updates they have made to the 2024 CPP.

Mayor Daniels opened the public hearing, and hearing no speakers he closed the public hearing.

City Council questions and comments followed.

Heidi Aggeler responded to questions.

ACTION: On a motion by Council Member Schaefer, seconded by Vice Mayor Karpinski-Costa, the City Council adopted Resolution No. 2024-071 A Resolution of the City Council of the City of Citrus Heights, California, Approving the Amended Citizen Participation Plan for the Community Development Block Grant Program.

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None
ITEM 4 Agenda Packet Page 8
Citrus Heights City Council Wednesday, July 10, 2024

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12. SUBJECT: Landscape Maintenance Assessment District 97-01 (Zones 1, 2, 3 & 4) – Levy of Fiscal Year 2024/2025 Assessments
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the following:
a. Convene the public hearing for the district regarding the proposed annual assessment for Fiscal Year 2024/2025; and
b. Adopt Resolution No. 2024-072 A Resolution of the City Council of the City of Citrus Heights, California, to Confirm the Diagram and Assessment and to Levy Fiscal Year 2024/2025 Assessments for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3 & 4) General Services Director Cave introduced the item as the second step in proceeding with the approval of the levying of assessments for the FY 2024/25 Landscape Maintenance and Assessment District. She presented a map of the zones in the assessed district.

Mayor Daniels opened the public hearing, and hearing no speakers he closed the public hearing.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Middleton, the City Council adopted Resolution No. 2024-072 A Resolution of the City Council of the City of Citrus Heights, California, to Confirm the Diagram and Assessment and to Levy Fiscal Year 2024/2025 Assessments for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3 & 4).

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None

13. SUBJECT: Landscape Maintenance Assessment Districts 98-01, 98-02 and 03-01 – Levy of Fiscal Year 2024/2025 Assessments
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the following:
a. Convene the public hearing for the district regarding the proposed annual assessment for Fiscal Year 2024/2025; and
b. Adopt Resolution No. 2024-073 A Resolution of the City Council of the City of Citrus Heights, California, to confirm the diagram and assessment and to levy Fiscal Year 2024/2025 assessments for Landscape Maintenance Assessment District No. 98-01 (Stock Village Units Nos. 1 and 2)
c. Adopt Resolution No. 2024-074 A Resolution of the City Council of the City of Citrus Heights, California, to confirm the diagram and assessment and to levy Fiscal Year 2024/2025 assessments for Landscape Maintenance Assessment District No. 98-02 (Zone 1: Sorenson Ranch, Zone 2: Autumnwood, Zone 3: Mariposa Creek and Zone 4: Wyatt Ranch) d. Adopt Resolution No. 2024-075 A Resolution of the City Council of the City of Citrus Heights, California, to confirm the diagram and assessment and to levy Fiscal Year 2024/2025 ITEM 4 Agenda Packet Page 9
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assessments for Landscape Maintenance Assessment District No. 03-01 (Stock Ranch Zones 1: Stock Ranch North, Zone 2: Stock Ranch South and Zone 3: Mitchell Farms) General Services Director Cave introduced the item as the second step in proceeding with the approval of the levying of assessments for the FY 2024/25 Landscape Maintenance and Assessment Districts.

She outlined the zones in the assessed district.

City Council questions and comments followed.

General Services Director Cave responded to questions.

Mayor Daniels opened the public hearing, and hearing no speakers he closed the public hearing.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Middleton, the City Council adopted Resolution No. 2024-073 A Resolution of the City Council of the City of Citrus Heights, California, to confirm the diagram and assessment and to levy Fiscal Year 2024/2025 assessments for Landscape Maintenance Assessment District No. 98-01 (Stock Village Units Nos. 1 and 2).

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None
ACTION: On a motion by Council Member Schaefer, seconded by Council Member Middleton, the City Council adopted Resolution No. 2024-074 A Resolution of the City Council of the City of Citrus Heights, California, to confirm the diagram and assessment and to levy Fiscal Year 2024/2025 assessments for Landscape Maintenance Assessment District No. 98-02 (Zone 1: Sorenson Ranch, Zone 2:

Autumnwood, Zone 3: Mariposa Creek and Zone 4: Wyatt Ranch).

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None
ACTION: On a motion by Council Member Schaefer, seconded by Council Member Lopez-Taff, the City Council adopted Resolution No. 2024-075 A Resolution of the City Council of the City of Citrus Heights, California, to confirm the diagram and assessment and to levy Fiscal Year 2024/2025 assessments for Landscape Maintenance Assessment District No. 03-01 (Stock Ranch Zones 1: Stock Ranch North, Zone 2: Stock Ranch South and Zone 3: Mitchell Farms).

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None

14. SUBJECT: Citrus Heights Lighting Assessment District – Levy of Fiscal Year 2024/2025 Annual Assessments
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the following:

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a. Convene a public hearing for the District regarding the proposed annual assessment for Fiscal Year 24/25; and
b. Adopt Resolution No. 2024-076 A Resolution of the City Council of the City of Citrus Heights, California, to confirm the diagram and assessment and to levy Fiscal Year 24/25 assessments for the Citrus Heights Lighting Assessment District City Engineer Blomquist introduced the item as the second step in proceeding with the approval of the levying of assessments for the FY 2024/25 Citrus Heights Lighting Assessment District. She explained the district includes all parcels in the city and funds the operation and maintenance of the 4,820 street and safety lights located in the city. She stated no changes are recommended to the assessment rates this year in conjunction with the annual update.

City Council questions and comments followed.

City Engineer Blomquist responded to questions.

Mayor Daniels opened the public hearing, and hearing no speakers he closed the public hearing.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Lopez-Taff, the City Council adopted Resolution No. 2024-076 A Resolution of the City Council of the City of Citrus Heights, California, to confirm the diagram and assessment and to levy Fiscal Year 24/25 assessments for the Citrus Heights Lighting Assessment District.

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None

15. SUBJECT: Resolution Confirming Report of Delinquent Solid Waste Charges and Ordering Collection of Delinquencies on the Property Tax Roll
STAFF REPORT: R. Cave / M. Poole
RECOMMENDATION: Staff recommends the following:
a. Conduct a Public Hearing on the Report of Delinquent Solid Waste Charges; and b. Adopt Resolution No. 2024-077 A Resolution of the City Council of Citrus Heights Confirming a Report of Delinquent Solid Waste Charges and Ordering Collection of Delinquencies on the Property Tax Roll
Operations Manager Poole introduced the item with the recommendation to approve a resolution to record delinquent residential solid waste charges on the County tax roll. This is an action the City takes on an annual basis to assist Republic Services in collecting passed due charges associated with the residential garbage and recycling services agreement. She summarized there is approximately $669,088.24 in amounts past due. The City mailed public hearing notices to affected property owners as well as published the hearing notice in the Citrus Heights Messenger in June. She noted in August there will be a final reconciliation with Republic Services to make sure the record of delinquencies is up to date and submitted to the County to be placed on the tax roll.

ITEM 4 Agenda Packet Page 11
Citrus Heights City Council Wednesday, July 10, 2024

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Mayor Daniels opened the public hearing, and hearing no speakers he closed the public hearing.

City Council questions and comments followed.

Operations Manager Poole responded to questions.

ACTION: On a motion by Council Member Middleton, seconded by Council Member Lopez-Taff, the City Council adopted Resolution No. 2024-077 A Resolution of the City Council of Citrus Heights Confirming a Report of Delinquent Solid Waste Charges and Ordering Collection of Delinquencies on the Property Tax Roll.

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None

DEPARTMENT REPORTS

16. SUBJECT: Update on Partnership with Neighborhood Areas to Identify Locations for Placemaking Assets Promoting Historic Lincoln Highway or Similar Areas of Interest DEPARTMENT: GSD
General Services Director Cave stated she has been working with a local resident and the Lincoln Highway Association California Chapter to help identify locations in the city and create specifications for historic signs along Auburn Boulevard.

City Council comments followed.

CITY MANAGER ITEMS
City Manager Feeney announced today’s release of the quarterly City Manager Message. He recapped prior messages on key initiatives including March 2024: Infrastructure and December 2023: Community Image. This quarter’s message highlights the City’s homelessness prevention response reflecting the recent Grants Pass ruling impact, enforcement and policy initiatives, collaboration on services and resources, and how the community can help. He announced the July 11 City Scoop is cancelled due to extreme heat advisory. The next City Scoop is August 8 at Lichen K-8 at 6:30 pm. He gave a reminder that the Citrus Heights Cooling Center is open at the Police Department lobby from 12-8 p.m. on days 100 degrees or hotter. Pets are not permitted. He also announced SacRT is offering free rides to cooling centers throughout the region. He highlighted the Stars and Stripes event on June 29. He announced the July 24 City Council meeting will not be held due to summer recess and the next meeting will be held August 14.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS Council Member Schaefer requested to give a formal presentation to the Council at a future meeting, regarding his Sacramento Area Council of Governments (SACOG) trip in Denver. Mayor Daniels supported the request.

ITEM 4 Agenda Packet Page 12
Citrus Heights City Council Wednesday, July 10, 2024

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Vice Mayor Karpinski-Costa requested a future agenda item to consider an ordinance reflecting a notolerance stance on illegal fireworks. Council Member Lopez-Taff supported the request.

ADJOURNMENT
Mayor Daniels adjourned the meeting at 7:26 p.m.

Respectfully submitted,
__________________________
Amy Van, City Clerk
ITEM 4 Agenda Packet Page 13
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CITY OF CITRUS HEIGHTS

CITY COUNCIL

MINUTES
Special Meeting of Thursday, July 10, 2024
City Hall Council Chambers
6360 Fountain Square Dr., Citrus Heights, CA

CALL SPECIAL MEETING TO ORDER
The special meeting was called to order at 7:26 p.m. by Mayor Daniels.

1. Roll Call: Council Members present: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels Council Members absent: None
Staff Members present: Feeney, Pucci, and Van

PUBLIC COMMENT
None

REGULAR CALENDAR

2. SUBJECT: Purchase Agreement for 7555 and 7569 Old Auburn Road, APNs 211-0051-019-0000 and 211-0051-020-0000
STAFF REPORT: A. Feeney
RECOMMENDATION: Adopt Resolution No. 2024-078, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Purchase Agreement and Joint Escrow Instructions with Stoney Investments LLC for the Acquisition of 7555 and 7569 Old Auburn Road, Citrus Heights, CA 95610, APNs 211-0051-019-0000 and 211-0051-020-0000 City Manager Feeney stated this item would authorize the City Manager to enter into a purchase agreement to acquire 7555 and 7569 Old Auburn Road, formerly a preschool that recently closed. He stated the site has two existing buildings on two parcels that total about 1.74 acres and public facilities are a permitted use in the Zone. He explained the acquisition provides a strategic opportunity as staff reviews options related to the Council’s strategic objective to look at the feasibility of increased local sheltering and reunification of lost pets.

He noted that the costs for animal sheltering is increasing and the City is seeing over 100% increase in the contract for sheltering services. The acquisition price would be $1,200,000 with an escrow period envisioned to be 130 days from a purchase agreement execution.

City Council comments followed.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Lopez-Taff, the City Council adopted Resolution No. 2024-078 A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Purchase Agreement and Joint Escrow Instructions with Stoney Investments LLC for the Acquisition of 7555 and 7569 Old Auburn Road, Citrus Heights, CA 95610, APNs 211-0051-019-0000 and 211-0051-020-0000.

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels NOES: None
ABSENT: None

ADJOURNMENT
ITEM 4 Agenda Packet Page 14
Citrus Heights City Council Wednesday, July 10, 2024

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Mayor Daniels adjourned the special meeting at 7:32 p.m.

Respectfully submitted,
__________________________
Amy Van, City Clerk
ITEM 4 Agenda Packet Page 15
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: August 14, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Casey Kempenaar, Community Development Director
Alex Turcotte, Police Chief
Regina Cave, General Services Director
SUBJECT: Auburn Boulevard Phase 2 Temporary Sign Enforcement Resolution Summary and Recommendation
On May 9, 2024, the City Council awarded a construction contract to George Reed, Inc. for the Construction of the Auburn Boulevard Complete Streets – Phase 2 project. This project is the City’s largest public works project since Phase 1 (Sylvan Corners to Rusch Park) was completed in 2014.

Phase 2, between Rusch Park and Orlando Drive, is slated to begin construction in the coming months, and construction is anticipated to last 18 to 24 months. Businesses along Auburn Boulevard will be affected by ongoing construction during this period. Temporary signage will be an important tool for businesses during this construction period. As a result, staff recommends the following resolution:

1. Adopt Resolution No. 2024-___ a Resolution of the City Council of the City of Citrus Heights, California, Temporarily Ceasing Enforcement of Temporary Sign Regulations During the Construction of the Auburn Boulevard Complete Streets Project- Phase 2.

City Council Strategic Goal/Objective
This staff report aligns with the following Citrus Heights City Council Strategic Plan Goals:

Goal: Maintain Public Infrastructure and Enhance All Modes of Transportation Goal: Enhance Community Vibrancy and Engagement
ITEM 5 Agenda Packet Page 16
Subject: Temporary Sign Enforcement Resolution – Auburn Boulevard Phase 2 Date: August 14, 2024

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Fiscal Impact
There is no fiscal impact for this item.

Background and Analysis
The City’s Zoning Ordinance regulates signage to ensure that permanent and temporary signs meet safety standards and maintain the aesthetic appearance of the City, while providing businesses an advertising venue. Temporary signage is permitted for a limited period, generally for special events and similar occasional promotions.

On May 9, 2024, the City Council awarded a construction contract to George Reed, Inc. for the Construction of the Auburn Boulevard Complete Streets – Phase 2 project. This project is the City’s largest public works project since Phase 1 (Sylvan Corners to Rusch Park) was completed in 2014.

Phase 2, between Rusch Park and Orlando Drive, is slated to begin construction in the coming months, and construction is anticipated to last 18 to 24 months. Businesses along Auburn Boulevard will be affected by ongoing construction during this period. Temporary signage will be an important tool for businesses during this construction period. Temporary signage will allow for enhanced visibility during the construction period.

The City’s Code Enforcement Unit is responsible for the enforcement of the City’s Zoning Ordinance, including sign regulations. Currently, the Zoning Ordinance limits the timeframe for temporary signage to a maximum of 30 days. Given the long-term nature of the proposed construction of Auburn Boulevard Complete Streets – Phase 2, staff believes increased timeframes for temporary signage is warranted.

Staff recommends the City Council adopt the attached resolution, which limits enforcement of Temporary Signage during the construction of the Phase 2 project. The resolution will maintain the City’s ability to enforce standards for signage that would otherwise impact health and safety; however, general enforcement for temporary signage would no longer take place. At the end of the construction period, the temporary signage requirements would revert to the standards in place as part of the Zoning Ordinance.

Attachments

1. Resolution 2024-___, a Resolution of the City Council of the City of Citrus Heights, California, Temporarily Ceasing Enforcement of Temporary Sign Regulations During the Construction of the Auburn Boulevard Complete Streets Project- Phase 2.

ITEM 5 Agenda Packet Page 17
Attachment 1
RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE CITY OF CITRUS

HEIGHTS, CALIFORNIA, TEMPORARILY CEASING ENFORCEMENT OF

TEMPORARY SIGN REGULATIONS DURING THE CONSTRUCTION OF THE AUBURN BOULEVARD COMPLETE STREETS PROJECT- PHASE 2

THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS DOES HEREBY RESOLVE AS FOLLOWS:

WHEREAS, on May 9, 2024, the City Council awarded a construction contract to George Reed, Inc. for the construction of the Auburn Boulevard Complete Streets (ABSC) – Phase 2 project between Rusch Park and Orlando Drive;
WHEREAS, Phase 2 of the ABSC project will include significant roadwork that could temporarily reduce access and visibility to over 100 businesses along the Auburn Boulevard Corridor; WHEREAS, the Zoning Ordinance includes standards for Temporary Signage which limits the use of temporary signage to a maximum of 30 days in a row; WHEREAS, the City’s Code Enforcement Unit is responsible for the enforcement of the Zoning Ordinance, and recognizes the need for additional visibility for Auburn Boulevard Businesses during the Construction of ABSC-Phase 2 throughout the 18–24-month term of construction; WHEREAS, the City Council wishes to ensure businesses within the construction zone for ABSC-Phase 2 are provided ample opportunity to advertise their businesses with tasteful temporary signage; that would otherwise not be permitted; and
WHEREAS, it is prudent for the City to establish temporary regulations, so that businesses can operate in a reasonable and safe manner during construction, and all temporary signage will be removed upon the completion of the ABSC-Phase 2 project.

NOW, THEREFORE, IT IS ORDERED by the City Council of the City of Citrus Heights as follows:

A. A limited temporary pause of enforcement of the Zoning Ordinance related to temporary signage is desired by the City Council adjacent to the Auburn Boulevard Complete Streets – Phase 2 project construction limits. The program shall be operative immediately upon execution of this resolution until terminated by the City Engineer and Police Chief or the City Council and shall generally conform to the following:
• All temporary signage should be tasteful in design and placed in a safe manner that does not impede vehicular or pedestrian safety. Temporary signs shall be limited to the extent feasible to ensure visibility during construction. Temporary signage will be required to not impede accessible pedestrian access along the sidewalk or into the business. • Nothing within this resolution shall limit the City’s ability to enforce public health and safety standards related to temporary signage or permanent signage. • This temporary pause will end upon completion of the ABCS-Phase 2 project as determined by the City Engineer, and enforcement of the City’s temporary signage standards will be enforced as outlined in the Municipal Code.

ITEM 5 Agenda Packet Page 18
PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 14th day of August 2024 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: CouncilMembers:

Bret Daniels, Mayor
ATTEST:

Amy Van, City Clerk
ITEM 5 Agenda Packet Page 19
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: August 14, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Susan K. Talwar, Administrative Services Director Alberto Preciado, 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 June 30, 2024. This report is a standard quarterly report submitted in accordance with the provisions of California Government Code Section 53646(b) whereas it states the treasurer or chief fiscal officer may render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency.

Included in this report is an update on American Rescue Plan Act Funds and staff’s recommendations on remaining uncommitted funds, which includes adoption of Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Allocating American Rescue Plan Act Funds for General Government Services and Critical Projects.

Fiscal Impact
The use of American Rescue Plan Act Funds would result in a positive impact to general funds over the remainder of the program through 2026 in the amount of $2.85 million.

Background and Analysis
The market value of cash and investments for all City funds on June 30, 2024, was $68,084,169, up from $59,829,961 on March 31, 2024. The increase is largely a result of the receipt of property tax distributions from Sacramento County.

Significant deposits for the FY 2023/24 fourth quarter (April through June 2024) included:

Property Tax In-Lieu of Motor Vehicle Revenue $5,548,129 Property Tax $4,747,093
ITEM 6 Agenda Packet Page 20
Subject: Quarterly Treasurer’s Report
Date: August 14, 2024

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Sales Tax $3,294,632
The breakdown of the City’s investment portfolio and current rate of return is as follows:

As of 06/30/2024
Description Par Value Cost Basis Market
Value
Avg.

Rate of
Return
% of
Total
Portfolio
Local Agency Investment Funds (LAIF) $56,731,869 $56,731,869 $56,522,871 4.48% 83.02% US Bank – General Account $1,165,697 $1,165,697 $1,165,697 0.00% 1.71% Investment Accounts $10,436,318 $10,470,851 $10,395,600 5.00% 15.27% Total Portfolio $68,333,884 $68,368,417 $68,084,169 4.48% A portion of the City’s investments are under management by Chandler Asset Management as of March 2023. For more information regarding the City’s investments, see schedules included as Attachment 2.

The report includes all securities managed by the City and its Investment Manager (excluding bond proceeds) and provides information on the values (par, fair, and cost), term, and yield of each security. Please note that because the safe-keeping custodian and the Investment Manager may use different pricing sources to determine the market value of the securities, there can be minor differences in market values shown on the custodian’s monthly statement as compared to the Investment Manager’s monthly statement.

Fair Value of individual securities has been provided by Chandler Asset Management. The City uses US Bank as its third-party custodian for safekeeping of all investments except for the Local Agency Investment Fund (LAIF). LAIF is a money market fund administered by the State Treasurer that has many governmental agency participants and holds securities through its own administrator.

The value of fixed-income securities may fluctuate with changes in interest rates. As interest rates go up, the market value of the securities may go down, and the reverse is true; when interest rates go down, the market value of the securities may go up. The difference between the book and fair market value is considered an unrealized gain or loss. The unrealized loss for this reporting period is $75,251. It is important to note that a loss or gain is realized when an investment is redeemed or sold before its maturity date. The City’s investments are typically retained until the maturity date, at which point the City’s full investment is returned.

Nonetheless, the City may elect to sell an investment before its maturity and record a capital gain or loss to manage the portfolio’s quality, liquidity or yield in response to market conditions or the City’s risk preferences.

Compliance
All investment transactions were executed in accordance with the California Government Code and the City’s Investment Policy. In accordance with California Government Code section 53646(b)(3), staff believes that the investments and budgeted revenues for the City will provide ITEM 6 Agenda Packet Page 21
Subject: Quarterly Treasurer’s Report
Date: August 14, 2024

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sufficient cash flow to meet the anticipated cash flow requirements of each entity for the next six months.

Pooled cash and investments book balances are adjusted annually to reflect fair value as required by Generally Accepted Accounting Principles (GAAP). The term fair value was formerly known as market value and became effective with the mandatory implementation of the Governmental Accounting Standards Board (GASB) Statement No. 31 in fiscal year 1998. The attached investment schedules meet these requirements.

American Rescue Plan Act Summary
Included in the City’s investment portfolio are the American Rescue Plan Act (ARPA) funds.

The City received an ARPA allocation of $15.7 million, of which Council approved the use of $14 million. The actual use of the approved amount is projected to be $12.8 million. As of June 30, 2024, an uncommitted amount of $2.85 million remains that will need to be obligated and reported to the US Treasury by December 2024. Funds need to be expended by December 31, 2026. Staff is recommending allocating the remaining funds towards general government services and critical projects, in accordance with the US Treasury guidelines, including but not limited to the following:
• necessary improvements to infrastructure such as sidewalks, pedestrian safety features like crosswalks, streetlights, neighborhood cleanup, and other projects to revitalize public spaces;
• replace and update technology tools to effectively develop, execute, and evaluate government programs;
• general government services such as rehire public safety to pre-pandemic levels.

ITEM 6 Agenda Packet Page 22
Subject: Quarterly Treasurer’s Report
Date: August 14, 2024

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The following is a breakdown of the current Council-approved committed ARPA funds:

Attachments

1. Chandler Asset Management Portfolio Summary, Statement of Compliance, and Holdings Report

2. Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Allocating American Rescue Plan Act Funds for General Government Services and Critical Projects
Total Award $ 15,676,972
Approved
Projected
Actual
Expended thru
06/30/24
Remaining
balance
1/13/2022 Small Business COVID Recovery Grant $ 320,000 $ 281,111 $ 281,111 $ - 6/23/2022 Block Party Trailer - Economic Development+ $ 50,000 $ 35,000 $ 26,052 $ 8,948 6/23/2022 Beautification Crew Pilot Program + $ 875,000 $ 875,000 $ 350,036 $ 524,964 6/23/2022 Police Fleet Vehicles & Equipment $ 1,800,000 $ 1,800,000 $ 1,226,055 $ 573,945 6/23/2022 Public Safety Communications Center Critical Needs $ 600,000 $ 435,000 $ 136,490 $ 298,510 9/22/2022 Community Projects Grant Program**+ $ 72,400 $ 72,400 $ 72,400 $ - 10/27/2022 I.T. Critical, Major Projects; Execute Contract Tyler Technologies+ $ 1,198,350 $ 1,198,350 $ 818,325 $ 380,025 1/26/2023 Patriotic Event+ $ 80,000 $ 68,438 $ 68,438 $ - 2/23/2023 Cares Commuinity Pride and Cleanliness Campaign+ $ 47,000 $ 47,000 $ 38,607 $ 8,393 3/23/2023 Business Attraction Incentive Program**+ $ 1,000,000 $ 87,393 $ 524 $ 86,869 4/27/2023 Sound Wall Beautification+ $ 155,000 $ 122,000 $ 88,601 $ 33,399 5/11/2023 Proposed Grant Strategy+ $ 60,000 $ 60,000 $ 55,000 $ 5,000 7/1/2023 Public Safety Positions to PrePandemic Levels $ 7,749,590 $ 7,749,590 $ 6,013,764 $ 1,735,826 \
Approved committed funds $ 14,007,340
Spent $ 9,175,403
Remaining Committed $ 3,655,879
Balance to Obligate $ 2,845,690
+ City Council Strategic Objective
* dependent on successful award of grant
** dependent on program subscription
ARPA Approved Committed Funds
ITEM 6 Agenda Packet Page 23
CONFIDENTIAL | 2
City of Citrus Heights | Account #11026 | As of June 30, 2024 Execution Time: 07/03/2024 07:41:23 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

PORTFOLIO SUMMARY
Portfolio Characteristics
Sector Allocation
Performance Review
Account Summary
Maturity Distribution
Top Issuers
Credit Quality
Total Rate of Return 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (04/01/23)
City of Citrus Heights 0.55% 0.98% 1.45% 4.97% -- -- -- -- 4.11% Benchmark Return* 0.57% 0.94% 1.25% 4.54% -- -- -- -- 3.15% Average Modified Duration 1.85
Average Coupon 4.15%
Average Purchase YTM 4.56%
Average Market YTM 5.00%
Average Quality AA
Average Final Maturity 2.23
Average Life 2.02
Beg. Values as of
06/01/2024
End Values as of
06/30/2024
Market Value 10,331,288.05 10,396,569.53
Accrued Interest 87,941.57 78,830.08
Total Market Value 10,419,229.62 10,475,399.61
Income Earned 39,754.26 33,976.07
Cont/WD 0.00 0.00
Par 10,489,174.28 10,535,195.92
Book Value 10,425,412.81 10,470,820.07
Cost Value 10,392,933.93 10,436,287.44
United States 34.41%
Farm Credit System 12.69%
Federal Home Loan Banks 9.59%
FHLMC 6.21%
Toyota Motor Corporation 2.35%
John Deere Owner Trust 1.92%
Toyota Auto Receivables Owner Trust 1.90%
American Express Credit Master Trust 1.69%
*Periods over 1 year are annualized.

Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index Secondary Benchmark:
*See Footnote
The credit quality is a weighted average calculation of the highest of S&P, Moody’s’ and Fitch ITEM 6 Agenda Packet Page 24
CONFIDENTIAL | 3
City of Citrus Heights | Account #11026 | As of June 30, 2024 Execution Time: 07/03/2024 07:41:23 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

STATEMENT OF COMPLIANCE
Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES (CMOS)
Max % (MV) 100.0 6.2 Compliant
Max % Issuer (MV) 30.0 6.2 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 11.7 Compliant
Max % Issuer (MV) 5.0 1.9 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV; FDIC & Collateralized CD) 20.0 0.0 Compliant Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 25.0 1.2 Compliant
Max % Issuer (MV) 5.0 1.2 Compliant
Max Maturity (Days) 270 172 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 24.0 Compliant
Max % Issuer (MV) 5.0 1.5 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/
TD)
Max % (MV; FDIC & Collateralized CD) 20.0 0.0 Compliant Max Maturity (Years) 5 0.0 Compliant

STATEMENT OF COMPLIANCE
Rules Name Limit Actual Compliance
Status Notes
Max % (MV) 100.0 22.3 Compliant
Max % Issuer (MV) 30.0 12.7 Compliant
Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years)54 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 0.0 Compliant

LOCAL GOVERNMENT INVESTMENT POOL (LGIP)
Max % (MV) 100.0 0.0 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.2 Compliant
Max % Issuer (MV) 20.0 0.2 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE-BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUTUAL FUNDS
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
ITEM 6 Agenda Packet Page 26
CONFIDENTIAL | 5
City of Citrus Heights | Account #11026 | As of June 30, 2024 Execution Time: 07/03/2024 07:41:23 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

STATEMENT OF COMPLIANCE
Rules Name Limit Actual Compliance
Status Notes
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 34.4 Compliant
Max Maturity (Years) 5 2 Compliant
ITEM 6 Agenda Packet Page 27
CONFIDENTIAL | 7
City of Citrus Heights | Account #11026 | As of June 30, 2024 Execution Time: 07/03/2024 07:41:23 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
448979AD6 HART 2023-A A3 4.58
04/15/2027 50,000.00 04/04/20235.14%
49,995.12
49,996.67

99.12 5.24%
49,560.62
101.78

0.48%
(436.05)
NA/AAA
AAA

2.79 1.47
36269WAD1 GMALT 2024-2 A3 5.39
07/20/2027 40,000.00 05/07/20245.85%
39,997.68
39,997.77
100.29

5.30%
40,115.88

65.88 0.39%
118.11
NA/AAA
AAA

3.05 1.71
47800CAC0 JDOT 2023 A3 5.01 11/15/2027 100,000.00 04/17/2023

4.63%
101,019.53
100,678.20

99.54 5.38%
99,543.93
222.67

0.96%
(1,134.27)
Aaa/NA
AAA

3.38 1.52
58770JAD6 MBALT 2024-A A3 5.32
01/18/2028 25,000.00 05/17/2024

5.73%
24,997.08
24,997.17
100.29

5.25%
25,071.59

59.11 0.24%

74.42 Aaa/NA
AAA

3.55 2.00
891941AD8 TAOT 2023-B A3 4.71
02/15/2028 200,000.00 10/03/20235.68%
196,039.06
196,720.73

98.97 5.29%
197,937.56
418.67

1.90%
1,216.83
Aaa/NA
AAA

3.63 2.02
362583AD8 GMCAR 2023-2 A3 4.47
02/16/2028 35,000.00 04/04/20234.51%
34,999.04
34,999.29

98.90 5.10%
34,613.77

65.19 0.33%
(385.52)
Aaa/AAA
NA

3.63 1.96
05522RDF2 BACCT 2022-2 A 5.0 04/17/2028 100,000.00 04/18/2023

4.59%
101,093.75
100,651.36

99.62 5.37%
99,623.98
222.22

0.96%
(1,027.38)
Aaa/AAA
NA

3.80 1.29
47787CAC7 JDOT 2023-C A3 5.48
05/15/2028 100,000.00 09/12/20235.40%
99,993.13
99,994.29
100.32

5.40%
100,323.61
243.56

0.96%
329.32
Aaa/NA
AAA

3.88 2.01
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 150,000.00 12/07/20235.10%
152,244.13
151,918.06
100.88

5.37%
151,322.51
236.25

1.46%
(595.55)
Aaa/NA
AAA

3.98 2.28
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 110,000.00 09/07/2023

5.17%
109,969.51
109,974.35
100.26

5.11%
110,280.81
252.27

1.06%
306.46
NR/AAA
AAA

4.21 2.03
02582JKD1 AMXCA 2023-3 A 5.23
09/15/2028 175,000.00 09/12/20235.29%
174,992.18
174,993.41
100.33

5.14%
175,579.02
406.78

1.69%
585.62
NA/AAA
AAA

4.21 2.03
448973AD9 HART 2024-A A3 4.99
02/15/2029 40,000.00 03/11/20245.05%
39,991.18
39,991.69

99.63 5.24%
39,852.92

88.71 0.38%
(138.77)
NA/AAA
AAA

4.63 2.05
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 45,000.00 06/04/20245.18%
44,993.17
44,993.25
100.10

5.21%
45,044.46
129.50

0.43%

51.21 Aaa/AAA
NA

4.66 2.10
05522RDJ4 BACCT 2024-1 A 4.93
03/15/2029 55,000.00 06/06/20244.93%
54,996.91
54,996.94
100.04

4.99%
55,021.81
135.58

0.53%

24.87 Aaa/AAA
NA

4.71 2.61
Total ABS 1,225,000.00 5.19%
1,225,321.47
1,224,903.16

99.91 5.26%
1,223,892.46
2,648.15

11.77%
(1,010.70)
Aaa/AAA
AAA

3.89 1.95
AGENCY
3130AWER7 FEDERAL HOME LOAN BANKS

4.625 06/06/2025 200,000.00 06/09/20234.67%
199,834.00
199,922.15

99.49 5.19%
198,982.00
642.36

1.91%
(940.15)
Aaa/AA+
AA+

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3133EPW68

FEDERAL FARM CREDIT
BANKS FUNDING CORP 4.125
01/22/2026
200,000.00 01/24/2024

4.40%
198,980.00
199,201.37

98.83 4.91%
197,655.90
3,643.75

1.90%
(1,545.48)
Aaa/AA+
AA+

1.56 1.46
3133EPCR4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 03/09/2026 375,000.00 --3.99%
382,886.25
379,492.57

99.77 4.89%
374,145.97
5,541.67

3.60%
(5,346.60)
Aaa/AA+
AA+

1.69 1.58
3133EPHH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.0 04/28/2026 200,000.00 05/15/20233.85%
200,814.00
200,502.90

98.54 4.84%
197,085.01
1,400.00

1.90%
(3,417.88)
Aaa/AA+
AA+

1.83 1.73
3133EPNG6

FEDERAL FARM CREDIT
BANKS FUNDING CORP 4.375
06/23/2026
250,000.00 06/22/2023

4.43%
249,630.00
249,756.26

99.29 4.75%
248,235.75
243.06

2.39%
(1,520.51)
Aaa/AA+
AA+

1.98 1.87
3130AXU63 FEDERAL HOME LOAN BANKS

4.625 11/17/2026 200,000.00 12/18/20234.23%
202,130.00
201,739.63

99.90 4.67%
199,798.97
1,130.56

1.92%
(1,940.66)
Aaa/AA+
AA+

2.38 2.22
3130AXQL5 FEDERAL HOME LOAN BANKS

4.875 12/11/2026 200,000.00 02/05/20244.29%
203,068.00
202,636.89
100.42

4.69%
200,842.46
541.67

1.93%
(1,794.43)
Aaa/AA+
AA+

2.45 2.28
3130AVBC5 FEDERAL HOME LOAN BANKS 4.5
03/12/2027 200,000.00 04/04/2024

4.53%
199,826.00
199,840.13

99.80 4.58%
199,609.77
2,725.00

1.92%
(230.36)
Aaa/AA+
AA+

2.70 2.48
3133EP6K6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 03/26/2027 100,000.00 03/25/20244.45%
100,145.00
100,132.16

99.77 4.59%
99,772.39
1,187.50

0.96%
(359.76)
Aaa/AA+
AA+

2.74 2.52
3130ATUS4 FEDERAL HOME LOAN BANKS

4.25 12/10/2027 200,000.00 05/15/20233.66%
204,924.00
203,708.49

99.11 4.53%
198,223.23
495.83

1.91%
(5,485.26)
Aaa/AA+
AA+

3.45 3.16
3133ERDH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 04/30/2029 200,000.00 05/22/20244.50% 202,184.00
202,136.76
101.45

4.41%
202,905.84
1,609.72

1.95%
769.08
Aaa/AA+
AA+

4.83 4.25
Total Agency 2,325,000.00 4.25%
2,344,421.25
2,339,069.31

99.67 4.75%
2,317,257.29
19,161.11

22.29%
(21,812.02)
Aaa/AA+
AA+

2.34 2.16

AGENCY CMBS
3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 150,000.00 06/07/2023

4.53%
144,544.92
146,161.71

96.36 4.98%
144,537.65
428.75

1.39%
(1,624.06)
Aaa/AA+
AAA

2.57 2.27
3137FBBX3 FHMS K-068 A2 3.244
08/25/2027 100,000.00 06/08/20234.34%
95,808.59
96,874.49

95.27 4.87%
95,265.10
270.33

0.92%
(1,609.39)
Aaa/AA+
AA+

3.15 2.86
3137FBU79 FHMS K-069 A2 3.187
09/25/2027 150,000.00 06/09/20234.41%
142,980.47
144,726.24

95.02 4.89%
142,524.18
398.38

1.37%
(2,202.06)
Aaa/AAA
AA+

3.24 2.89
3137FETN0 FHMS K-073 A2 3.35 01/25/2028 75,000.00 05/24/2023

4.27%
72,082.03
72,774.55

95.10 4.87%
71,326.72
209.38

0.69%
(1,447.83)
Aaa/AA+
AAA

3.57 3.18
3137FG6X8 FHMS K-077 A2 3.85 05/25/2028 100,000.00 05/24/2023

4.24%
98,164.06
98,570.46

96.44 4.85%
96,440.28
320.83

0.93%
(2,130.18)
Aaa/AA+
AAA

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FKUP9 FHMS K-087 A2 3.771
12/25/2028 100,000.00 06/05/20244.70%
96,203.12
96,261.03

95.88 4.80%
95,875.04
314.25

0.92%
(385.99)
Aaa/AAA
AA+

4.49 3.95
Total Agency
CMBS 675,000.00 4.43%
649,783.19
655,368.47

95.70 4.89%
645,968.96
1,941.92

6.21%
(9,399.51)
Aaa/AA+
AA+

3.40 3.02
CASH
CCYUSD Receivable 5,598.16 --

0.00%
5,598.16
5,598.16

1.00 0.00%
5,598.16

0.00 0.05%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 5,598.16 0.00%
5,598.16
5,598.16

1.00 0.00%
5,598.16

0.00 0.05%

0.00 Aaa/AAA
AAA

0.00 0.00

COMMERCIAL
PAPER
89233GMK9 Toyota Motor Credit Corporation
12/19/2024 125,000.00 04/08/20245.37%
120,395.83
121,912.50

97.48 5.40%
121,848.63

0.00 1.17%
(63.87)
P-1/A-1+
F1

0.47 0.46
Total Commercial
Paper 125,000.00 5.37%
120,395.83
121,912.50

97.48 5.40%
121,848.63

0.00 1.17%
(63.87)
P-1/A-1+
F1

0.47 0.46

CORPORATE
61761JVL0 MORGAN STANLEY 3.7
10/23/2024 150,000.00 06/28/20235.57%
146,488.50
149,167.75

99.41 5.59%
149,107.87
1,048.33

1.43%
(59.88)
A1/AA+0.31

0.31 89236TKF1 TOYOTA MOTOR CREDIT CORP

3.65 08/18/2025 125,000.00 06/12/20234.94%
121,710.00
123,293.00

98.18 5.32%
122,722.55
1,685.59

1.18%
(570.45)
A1/A+
A+

1.13 1.08
24422EWP0 JOHN DEERE CAPITAL CORP 4.8
01/09/2026 35,000.00 03/17/20234.45%
35,322.35
35,175.17

99.38 5.23%
34,781.66
802.67

0.33%
(393.51)
A1/A
A+

1.53 1.42
78016FZT4 ROYAL BANK OF CANADA 4.875
01/12/2026 150,000.00 06/28/20235.25%
148,672.50
149,198.06

99.26 5.39%
148,884.62
3,432.81

1.43%
(313.44)
A1/A
AA1.541.42
756109BQ6 REALTY INCOME CORP 5.05
01/13/2026 100,000.00 06/12/20235.49%
98,941.00
99,370.66

99.33 5.51%
99,334.72
2,356.67

0.96%
(35.94)
A3/ANA1.54

1.42 037833BY5 APPLE INC 3.25 02/23/2026 125,000.00 03/23/2023

4.10%
122,103.75
123,361.33

97.20 5.04%
121,495.47
1,444.44

1.17%
(1,865.87)
Aaa/AA+
NA

1.65 1.56
00440EAV9 CHUBB INA HOLDINGS LLC 3.35
05/03/2026 125,000.00 10/19/2023

5.85%
117,758.75
119,735.78

96.76 5.21%
120,955.47
674.65

1.16%
1,219.70
A3/A
A

1.84 1.75
14913UAA8 CATERPILLAR FINANCIAL
SERVICES CORP 4.35 05/15/2026 100,000.00 06/12/20234.71% 99,031.00
99,379.15

98.65 5.11%
98,653.52
555.83

0.95%
(725.63)
A2/A
A+

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
341081GR2 FLORIDA POWER & LIGHT CO

4.45 05/15/2026 125,000.00 05/18/20234.65%
124,325.00
124,576.65

98.78 5.14%
123,479.88
710.76

1.19%
(1,096.78)
A1/A
A+

1.87 1.76
24422EWX3 JOHN DEERE CAPITAL CORP 4.75
06/08/2026 100,000.00 06/05/20234.72%
100,094.00
100,060.64

99.37 5.09%
99,368.10
303.47

0.96%
(692.54)
A1/A
A+

1.94 1.82
69371RS56 PACCAR FINANCIAL CORP 5.05
08/10/2026 75,000.00 08/03/20235.07%
74,962.50
74,973.65

99.90 5.10%
74,923.13
1,483.44

0.72%
(50.53)
A1/A+
NA

2.11 1.94
74340XBK6 PROLOGIS LP 3.25 10/01/2026 125,000.00 01/16/2024

4.53%
120,963.74
121,638.49

95.90 5.20%
119,881.16
1,015.63

1.15%
(1,757.33)
A3/A
WR

2.25 2.12
26442CAS3 DUKE ENERGY CAROLINAS LLC

2.95 12/01/2026 100,000.00 04/10/20234.43%
95,073.00
96,726.46

95.27 5.05%
95,273.63
245.83

0.92%
(1,452.83)
Aa3/A
WR

2.42 2.29
06051GLE7 BANK OF AMERICA CORP 5.08
01/20/2027 100,000.00 --5.60%
98,714.80
99,253.70

99.40 5.93%
99,399.82
2,271.89

0.96%
146.12
A1/AAA2.56

1.44 17275RBQ4 CISCO SYSTEMS INC 4.8
02/26/2027 120,000.00 --4.98%
119,441.00
119,480.28

99.73 4.91%
119,675.50
2,000.00

1.15%
195.22
A1/AANA2.66

2.43 857477CL5 STATE STREET CORP 4.993
03/18/2027 120,000.00 03/13/20244.99%
120,000.00
120,000.00

99.88 5.04%
119,854.88
1,714.26

1.15%
(145.12)
A1/A
AA2.712.48
89115A2W1 TORONTO-DOMINION BANK

4.98 04/05/2027 90,000.00 03/26/20244.98%
90,000.00
90,000.00

99.47 5.19%
89,518.56
1,070.70

0.86%
(481.44)
A1/A
AA2.762.52
06406RBQ9 BANK OF NEW YORK MELLON
CORP 4.947 04/26/2027 110,000.00 --5.13%
109,476.40
109,665.73

99.39 5.68%
109,323.63
982.53

1.05%
(342.10)
A1/A
AA2.821.71
74456QBS4 PUBLIC SERVICE ELECTRIC AND
GAS CO 3.0 05/15/2027 75,000.00 04/18/20234.48%
70,921.50
72,123.64

94.77 4.97%
71,079.32
287.50

0.68%
(1,044.32)
A1/A
WR

2.87 2.70
91324PEG3 UNITEDHEALTH GROUP INC 3.7
05/15/2027 100,000.00 03/23/20234.28%
97,802.00
98,474.50

96.77 4.92%
96,772.14
472.78

0.93%
(1,702.36)
A2/A+
A

2.87 2.67
22160KAM7 COSTCO WHOLESALE CORP 3.0
05/18/2027 40,000.00 03/17/20234.28%
38,067.20
38,662.69

95.59 4.65%
38,235.02
143.33

0.37%
(427.67)
Aa3/A+
WR

2.88 2.71
437076DB5 HOME DEPOT INC 4.875
06/25/2027 135,000.00 06/20/20244.92%
134,821.80
134,822.78

99.80 4.95%
134,724.92
109.69

1.30%
(97.86)
A2/A
A

2.99 2.75
06368LAQ9 BANK OF MONTREAL 4.7
09/14/2027 125,000.00 11/14/20235.56%
121,346.25
121,942.14

98.71 5.14%
123,387.49
1,746.18

1.19%
1,445.35
A2/AAA3.21

2.90 46647PEA0 JPMORGAN CHASE & CO 5.04
01/23/2028 75,000.00 01/17/20244.99%
75,109.50
75,093.51

99.46 5.61%
74,594.10
1,659.00

0.72%
(499.41)
A1/AAA3.57

2.32 Total Corporate 2,525,000.00 4.97%
2,481,146.54
2,496,175.77

98.46 5.22%
2,485,427.14
28,217.99

23.91%
(10,748.62)
A1/A
A+

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration

MONEY MARKET
FUND
31846V203 FIRST AMER:GVT OBLG Y 19,597.76 --

4.92%
19,597.76
19,597.76

1.00 4.92%
19,597.76

0.00 0.19%

0.00 Aaa/
AAAm
AAA

0.00 0.00
Total Money
Market Fund 19,597.76 4.92%
19,597.76
19,597.76

1.00 4.92%
19,597.76

0.00 0.19%

0.00 Aaa/
AAAm
AAA

0.00 0.00

US TREASURY
91282CFA4 UNITED STATES TREASURY 3.0
07/31/2024 125,000.00 06/12/20235.16%
122,065.43
124,787.35

99.80 5.26%
124,753.45
1,565.93

1.20%
(33.90)
Aaa/AA+
AA+

0.08 0.08
91282CFN6 UNITED STATES TREASURY 4.25
09/30/2024 250,000.00 04/12/20234.33%
249,707.03
249,950.26

99.72 5.30%
249,311.52
2,670.77

2.40%
(638.74)
Aaa/AA+
AA+

0.25 0.25
91282CGD7 UNITED STATES TREASURY 4.25
12/31/2024 250,000.00 05/18/20234.48%
249,111.33
249,725.29

99.46 5.36%
248,645.02

28.87 2.39%
(1,080.27)
Aaa/AA+
AA+

0.50 0.49
91282CGN5 UNITED STATES TREASURY 4.625
02/28/2025 250,000.00 04/12/20234.07%
252,460.94
250,866.88

99.59 5.25%
248,972.17
3,864.64

2.39%
(1,894.71)
Aaa/AA+
AA+

0.67 0.64
91282CGX3 UNITED STATES TREASURY 3.875
04/30/2025 250,000.00 06/08/2023

4.55%
246,962.89
248,668.24

98.92 5.20%
247,309.57
1,632.13

2.38%
(1,358.67)
Aaa/AA+
AA+

0.83 0.80
91282CEU1 UNITED STATES TREASURY 2.875
06/15/2025 250,000.00 05/18/20234.19%
243,544.92
247,027.94

97.88 5.17%
244,704.59
314.21

2.35%
(2,323.35)
Aaa/AA+
AA+

0.96 0.93
91282CFK2 UNITED STATES TREASURY 3.5
09/15/2025 250,000.00 06/08/20234.35%
245,439.45
247,573.94

98.20 5.05%
245,498.05
2,567.93

2.36%
(2,075.89)
Aaa/AA+
AA+

1.21 1.15
91282CFW6 UNITED STATES TREASURY 4.5
11/15/2025 250,000.00 05/18/20234.05%
252,646.48
251,458.32

99.39 4.96%
248,486.33
1,436.82

2.39%
(2,972.00)
Aaa/AA+
AA+

1.38 1.31
91282CGL9 UNITED STATES TREASURY 4.0
02/15/2026 250,000.00 06/08/20234.22%
248,613.28
249,161.19

98.65 4.87%
246,621.10
3,763.74

2.37%
(2,540.09)
Aaa/AA+
AA+

1.63 1.53
91282CGV7 UNITED STATES TREASURY 3.75
04/15/2026 250,000.00 04/12/20233.75%
250,029.30
250,017.27

98.21 4.80%
245,527.35
1,972.34

2.36%
(4,489.92)
Aaa/AA+
AA+

1.79 1.70
91282CHB0 UNITED STATES TREASURY 3.625
05/15/2026 250,000.00 06/08/20234.15%
246,435.55
247,726.87

97.96 4.77%
244,902.35
1,157.44

2.36%
(2,824.53)
Aaa/AA+
AA+

1.87 1.78
91282CJC6 UNITED STATES TREASURY 4.625
10/15/2026 150,000.00 10/19/20235.05%
148,265.63
148,671.01

99.91 4.66%
149,865.23
1,459.53

1.44%
1,194.23
Aaa/AA+
AA+

2.29 2.13
912828U24 UNITED STATES TREASURY 2.0
11/15/2026 250,000.00 05/18/20233.83%
235,195.31
239,940.70

94.10 4.65%
235,253.91
638.59

2.26%
(4,686.80)
Aaa/AA+
AA+

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CEF4 UNITED STATES TREASURY 2.5
03/31/2027 250,000.00 03/24/20233.52%
240,556.64
243,534.68

94.79 4.54%
236,962.89
1,571.04

2.28%
(6,571.79)
Aaa/AA+
AA+

2.75 2.60
91282CKJ9 UNITED STATES TREASURY 4.5
04/15/2027 200,000.00 04/24/20244.80%
198,351.56
198,453.35

99.85 4.55%
199,703.12
1,893.44

1.92%
1,249.77
Aaa/AA+
AA+

2.79 2.57
91282CKV2 UNITED STATES TREASURY 4.625
06/15/2027 160,000.00 06/20/20244.48%
160,637.50
160,631.65
100.29

4.52%
160,462.50
323.50

1.54%
(169.15)
Aaa/AA+
AA+

2.96 2.73
Total US Treasury 3,635,000.00 4.25%
3,590,023.24
3,608,194.95

98.43 4.95%
3,576,979.13
26,860.91

34.41%
(31,215.82)
Aaa/AA+
AA+

1.49 1.41
Total Portfolio 10,535,195.92 4.56%
10,436,287.44
10,470,820.07

98.47 5.00%
10,396,569.53
78,830.08
100.00%
(74,250.54)
Aa2/AAAA2.23

1.85 Total Market
Value + Accrued 10,475,399.61
ITEM 6 Agenda Packet Page 33
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RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, ALLOCATING AMERICAN RESCUE PLAN ACT (ARPA) FUNDS FOR

GENERAL GOVERNMENT SERVICES AND CRITICAL PROJECTS
WHEREAS, the City of Citrus Heights received an American Rescue Plan Act (ARPA) allocation of $15.7 million in May 2021 to meet the City’s operational needs; WHEREAS, uncommitted funds in the amount of $2,845,690 must be obligated by December 2024;
WHEREAS, the City will utilize funds to make necessary improvements to infrastructure such as sidewalks, pedestrian safety features like crosswalks, streetlights, neighborhood cleanup, and other projects to revitalize public spaces;
WHEREAS, the City will utilize the funds to replace and update technology tools to effectively develop, execute, and evaluate government programs; WHEREAS, the City will utilize the funds towards technology infrastructure to adapt government operations to the pandemic (e.g., video-conferencing software, improvements to case management systems or data sharing resources), reduce government backlogs, or meet increased maintenance needs; and
WHEREAS, the City will utilize the funds towards general government services such as rehire public safety to pre-pandemic levels; and
WHEREAS, the City will utilize the funds towards any general government services as permitted in the guidelines provided by the United States Department of the Treasury.

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby allocate $2,845,690 in American Rescue Plan Act funds, in accordance with the Coronavirus State and Local Fiscal Recovery Fund guidelines, for general government services and critical projects.

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 14th day of August 2024 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Bret Daniels, Mayor
ATTEST:

ITEM 6 Agenda Packet Page 34

Amy Van, City Clerk
ITEM 6 Agenda Packet Page 35
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: August 14, 2024
TO: Mayor and City Council Members
FROM: Ashley J. Feeney, City Manager
SUBJECT: Authorize City Manager to Execute a Purchase Agreement for the Acquisition of a Portion of 6498 Sylvan Rd., APN 243-0031-023-0000 Summary and Recommendation
The purpose of this item is to seek authorization for the City Manager to execute a Purchase and Sale Agreement with Bayside Covenant Church of Citrus Heights (commonly known as Heights Church) to purchase a portion of land located at 6498 Sylvan Rd.

Staff recommends the City Council adopt Resolution No. 2024-___ a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Purchase Agreement and Joint Escrow Instructions with Bayside Covenant Church of Citrus Heights for the Acquisition of a Portion of APN 243-0031-023-0000.

Fiscal Impact
The City has negotiated a purchase price of $2.16 per square foot. During the escrow period the City will initiate a lot line adjustment consisting of 76,590± square feet; the final square footage as determined by the lot line adjustment shall in no event exceed 80,000 square feet. The estimated purchase price is $165,434 (76,590 sq ft) with a not to exceed purchase price of $172,800 (80,000 sq ft). Staff anticipates related ancillary costs associated with due diligence efforts, engineering and surveying for the lot line adjustment and transactional closing costs. The City intends to utilize General Funds for the purchase of the Property.

Background and Analysis
The City was approached by Heights Church, the owner of 6498 Sylvan Road, APN 243-0031- 023-0000 (“Property”), regarding the prospect of selling a portion of the Property to the City.

The Property consists of a vacant parcel of land to be created through a lot line adjustment consisting of 76,590± square feet. The Property is currently unoccupied and San Juan Creek crosses through the Property in an east-west orientation. Additionally, the Property abuts two City owned parcels (approximately 2.2 acres in area) to the west that were gifted to the City by ITEM 7 Agenda Packet Page 36
Subject: Authorize City Manager to Execute a Purchase Agreement for the Acquisition of a Portion of 6498 Sylvan Rd., APN 243-0031-023-0000
Date: August 14, 2024

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Mr. Robert Coronado. The proximity of this Property to the City owned parcels provides a strategic acquisition opportunity that would increase the size and potential for future community enhancements when combined with the proposed Property being considered for acquisition. The Property under consideration also includes sewer, water and electric utilities.

Agreement for Purchase
Key components of the Agreement include:
• A deposit of $25,000 within two business days of both parties signing the agreement. • A 60-day feasibility period whereby the City can review the property and conduct any necessary inspections. The City can terminate the agreement for any reason during the feasibly period and receive the return of its deposit.
• A Lot Line Adjustment to the Property consisting of 76,590± square fee will be required as a condition of closing escrow.
• Close of escrow to occur once the Lot Line Adjustment is ready to record with an outside date of close to be November 27, 2024.

Environmental Review
The City has reviewed the acquisition and analyzed it based upon the provisions in Section 15061(b)(3) (Common Sense Exemption) of Title 14 of the California Code of Regulations (State CEQA Guidelines. Section 15061(b)(3) of the State CEQA Guidelines states that an activity is covered by the Common Sense Exemption that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. Based on staff’s review, there is no possibility that the proposed property acquisition will result in a physical change in the environment because the parcel acquisition does not propose any changes to the existing use.

Attachments

1. Resolution No. 2024-___ Authorizing the City Manager to Execute a Purchase Agreement and Joint Escrow Instructions with Bayside Covenant Church of Citrus Heights for the Acquisition of a Portion of APN 243-0031-023-000

2. Map of 6498 Sylvan Rd
ITEM 7 Agenda Packet Page 37
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RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PURCHASE

AGREEMENT AND JOINT ESCROW INSTRUCTIONS WITH BAYSIDE COVENANT

CHURCH OF CITRUS HEIGHTS FOR THE ACQUISITION OF A PORTION OF APN 243-0031-023-0000

WHEREAS, the proposed purchase of certain real property to be created through a lot line adjustment consisting of 76,590± square feet commonly known as 6498 Sylvan Road, APN 243-0031- 023-0000 (“Property”) offers a strategic acquisition opportunity to allow for future opportunities for community enhancement near City Hall;
WHEREAS, the Purchase Agreement would include an escrow period of 70 days from a fully executed Agreement; and a $25,000 applicable deposit;
WHEREAS, the City of Citrus Heights (City) is requesting a General Plan Consistency review for the proposed acquisition of a portion of 6498 Sylvan Road (Project); WHEREAS, the proposed Project is located on real property in the incorporated portions of the City more particularly described as APN 243-0031-023-0000; WHEREAS, the acquisition qualifies as a project under the California Environmental Quality Act (California Public Resources Code §21000 et seq., hereafter CEQA); WHEREAS, the City has reviewed the Project and analyzed it based upon the provisions in Section 15061(b)(3) (Common Sense Exemption) of Title 14 of the California Code of Regulations (State CEQA Guidelines);
WHEREAS, Section 15061(b)(3) of the State CEQA Guidelines states that an activity is covered by the Common Sense Exemption that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review;
WHEREAS, based on staff’s review, there is no possibility that the proposed property acquisition will result in a physical change in the environment because the parcel acquisition does not propose any changes to the existing use;
WHEREAS, State law (Government Code Section 65402(a)) requires that the City planning agency review property acquisitions for conformity with the adopted General Plan; WHEREAS, it has been determined that the proposed acquisition is in conformance with the goals and policies of the General Plan and a report of such finding shall be filed; and WHEREAS, City Council considered all of the information presented by staff and public testimony presented in writing and at the meeting prior to issuing its report in the form of this resolution.

ITEM 7 Agenda Packet Page 38

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights resolves as follows:

1. The City of Citrus Heights finds that the purchase of the Property as proposed is consistent with the General Plan, and hereby authorizes the City Manager to execute a Purchase Agreement and related documents, consistent with the terms identified herein, for the City’s purchase of the property, to be created through a lot line adjustment consisting of 76,590± square fee, located at 6498 Sylvan Road and identified as Assessor Parcel Numbers 243-0031-023-0000, including any minor amendments if needed inclusive of escrow extension if mutually agreeable, all subject to approval as to form by the City Attorney; and

2. The City Council authorizes the utilization of General Funds in an amount not to exceed $165,434 (76,590 sq ft) with a not to exceed purchase price of $172,800 (80,000 sq ft) for the base purchase price. Staff anticipates related ancillary costa associated with due diligence efforts, engineering and surveying for the lot line adjustment and transactional closing costs.

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 14th day of August 2024 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Bret Daniels, Mayor
ATTEST:

Amy Van, City Clerk
ITEM 7 Agenda Packet Page 39
ITEM 7 Agenda Packet Page 40
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: August 14, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Casey Kempenaar, Community Development Director
Steffane Lui, Assistant Planner
SUBJECT: 5425 Sunrise Boulevard
Request for Letter of Public Convenience and Necessity (PLN-24-11) Summary and Recommendation
A Letter of Public Convenience and Necessity (PCN) offers the City Council the ability to approve or deny alcohol license applications when a census tract area is considered “overconcentrated” by the Department of Alcoholic Beverage Control (ABC). A new grocery store is proposing to locate at 5425 Sunrise Blvd., within a census tract (81.38) that ABC has determined can only allow two off-sale establishments without being considered over-concentrated. As shown in Attachment 1A, nine off-sale locations are currently within census tract 81.38 (a mixture of supermarkets, liquor stores, drug/variety stores).

A new grocery store is proposed within the Sunrise Village Shopping Center (5425 Sunrise Boulevard). The location will offer a wide assortment of national brands and high-quality produce, meat, and seafood as well as offer a range of prepared foods made fresh in store every day. The store is requesting an alcohol license (Type 21-off-sale beer/wine/spirits and Type 86 instructional tasting of beer/wine/spirits).

Their proposal includes selling alcoholic beverages alongside their regular grocery items.

Instructional tastings will be conducted in a designated alcohol sampling area, exclusively for customers aged 21 and above. These tastings will be led by grocery employees or certified supplier partners who are certified in accordance with ABC’s Responsible Beverage Service training program.

Although the census tract has nine off-sale locations as shown in Attachment 1A, most locations are supermarkets, or drug/variety stores where a variety of other products are sold in addition to alcohol. The proposed project has been reviewed by the Police Department with no identifiable concerns (Attachment 3). The Sunrise MarkePlace (SMP) Board of Directors has submitted a letter of support (Attachment 4) emphasizing the benefits to the existing shopping center. SMP ITEM 8 Agenda Packet Page 41
Subject: 5425 Sunrise Boulevard- Letter of Public Convenience and Necessity Date: August 14, 2024

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asserts that approving the PCN will enhance consumer convenience and establish equitable opportunities for the grocer in relation to nearby grocery options. Staff recommends the City Council find the PCN will not be detrimental to the health, safety, or welfare of the community and approve the PCN.

Staff recommends the following motion:

Move to approve the Letter of Public Convenience and Necessity to allow the issuance of a Type 21 and Type 86 alcohol license for the sale of beer/wine/spirits and instructional tastings at the proposed grocery store located at 5425 Sunrise Boulevard.

City Council Strategic Goal/Objective
This staff report aligns with the following Citrus Heights City Council Strategic Plan Objective:

Goal: Diversify for a vibrant economy
Fiscal Impact
The proposed grocery store is anticipated to generate approximately $3,500 in quarterly sales tax revenue.

Background and Analysis
Letter of Public Convenience and Necessity (PCN)
The California Department of Alcoholic Beverage Control (ABC) requires an applicant to obtain a letter of “public convenience and necessity” (PCN) from the affected jurisdiction (the City of Citrus Heights) because the area is deemed “over concentrated” by ABC standards. Over concentration is based on the number of existing licenses within each census tract with a maximum number assigned per tract.

The applicant is required to obtain a “letter of public convenience” from the City Council because the number of alcohol licenses in the area exceeds ABC’s standards (one per 2,000 capita). As part of their request, the applicant is required to demonstrate the alcohol license request would serve the public’s convenience and necessity.

Chapter 6 of the Citrus Heights Municipal Code regulates the issuance of “letters of public convenience”. The Chapter outlines a process by which a variety of departments and agencies review applications for “letters of public convenience”. Department review is related to current and past concerns at the location, including criminal activity, building code violations, business license renewal, zoning approval, health violations, zoning enforcement, and complaints to the ABC.

ITEM 8 Agenda Packet Page 42
Subject: 5425 Sunrise Boulevard- Letter of Public Convenience and Necessity Date: August 14, 2024

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Each department reviews the application and can recommend denial of the application based on problems with the site. The City Council is not obligated to approve the license request even if the business has not violated any department’s provisions. While Chapter 6 contains standards for reviewing departments to recommend denial of an application of this type, it does not contain any standards for approving such applications and determining that the “public convenience and necessity” standard is met. There are no criteria for spacing of these uses or other limitations found within the Code. The Council has the full discretion to approve or deny the “Letter of Public Convenience” request.

Project Description
A new grocery store is proposed to open within the Sunrise Village Shopping Center at 5425 Sunrise Boulevard. This location will offer a wide assortment of national brands and high-quality produce, meat, and seafood as well as offer a range of prepared foods made fresh in store every day. The new grocery store will be open daily between the hours of 8 am to 10 pm.

The grocery store is requesting a Letter of Public Convenience and Necessity to allow for offsale beer/wine/spirits (Type 21) and instructional tasting of beer/wine/spirits (Type 86). Tastings will be offered in small sample sizes in accordance with ABC regulations to customers aged 21 years and older and served by certified employees and supplier partners. Alcoholic beverages will be under constant employee and video surveillance, and employees and service partners offering tastings will be certified in accordance with ABC’s Responsible Beverage Service training program. The applicant has stated that the proposed grocery store operates 21 additional locations with ABC licenses within California, where alcohol is only a small percentage of sales (approximately 8%).

Letter of Public Convenience and Necessity Analysis
Based on an analysis of the surrounding ABC licenses, staff determined there are a total of nine off-sale licenses within Census Tract 81.38. Three locations less than one mile from the vicinity are grocery stores or department store uses, and only one is a liquor store.

As required by Chapter 6 of the Municipal Code the Police Department has reviewed the request to provide off-sale beer, wine and distilled spirits. The Police Department reviewed the proposed location and does not object to the issuance of the Letter of Public Convenience for this location (Attachment 3).

As part of the City’s outreach program, staff informed the Sunrise MarketPlace (SMP) Board of Directors and the Birdcage Heights Neighborhood Area 11 of the request for a Letter of Public Convenience and Necessity. SMP has reviewed the request and provided a letter showing their support for this proposal (Attachment 4). As of August 9, 2024 no response has been received from the Neighborhood Area or any other party.

ITEM 8 Agenda Packet Page 43
Subject: 5425 Sunrise Boulevard- Letter of Public Convenience and Necessity Date: August 14, 2024

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Attachments:
1A. Map & List of Active Off-Sale Licenses in Census Tract 81.38 1B. Map & List of Active Off-Sale Licenses in a 1,000 ft radius of 5425 Sunrise Blvd

2. 5425 Sunrise Blvd PCN Application Information

3. Police Department Report

4. Future Grocery PCN Application SMP Support
ITEM 8 Agenda Packet Page 44
Project Location
Existing Off-Sale Licenses
ITEM 8 Agenda Packet Page 45
Map of Exis�ng Off-Sale ABC Licenses within a 1,000 � Radius of Project Site ITEM 8 Agenda Packet Page 46
CITRUS HEIGHTS PCN Application- Statement of Justification Amazon Retail LLC D/B/A AMAZON FRESH
APN: 233-044-027
Premises Address: 5425 Sunrise Blvd., CITRUS HEIGHTS CA 95610 Section 23958.4 of the Business and Professions Code states that if a premises is located in a census tract that has an “undue concentration” of off-sale licenses, a determination by the governing body that public convenience or necessity (“PCN”) would be served by the issuance of the new license is required.

The California Department of Alcoholic Beverage Control (“ABC”) has advised that the new Amazon Retail LLC premises, dba “Amazon Fresh,” located at 5425 Sunrise Blvd., Citrus Heights, is in a census tract that requires a finding of PCN.

Amazon Fresh is requesting a finding that PCN will be served by allowing it to sell alcoholic beverages in addition to its full line of grocery items. Adding beer, wine and spirits to its full line of grocery items will allow this Amazon Fresh store to better serve its customers, who want to be able to purchase alcoholic beverages when they shop for other items. While other stores in the area sell alcoholic beverages, customers find it inconvenient to make a second stop just to purchase alcoholic beverages. Although alcohol sales will only be a small percentage of the store’s business (approximately 8%), having the ability to sell alcoholic beverages will allow Amazon Fresh to meet the needs of its customers and provide them with the convenience of one-stop shopping.

Customers enjoy shopping at Amazon Fresh because of the selection and convenience. Amazon Fresh’s competitive prices and integrated technology make it a unique shopping experience, different from more traditional grocery stores in the vicinity. Amazon integrates technology into various stages, leading to a more personalized and convenient shopping experience.

Amazon Fresh has 21 stores throughout California that are licensed to sell alcoholic beverages. Amazon Fresh prides itself on being a responsible licensee and is committed to serving the community in a positive and responsible manner. Amazon strives to be a good neighbor, and the Citrus Heights store will be no different.

For these reasons, we are requesting a determination that PCN will be served by allowing Amazon Fresh to obtain an alcoholic beverage license to sell beer, wine and spirits in addition to the full line of grocery products it will offer.

ITEM 8 Agenda Packet Page 47
CITRUS HEIGHTS PCN Application- Proposed Use Statement
Amazon Retail LLC D/B/A AMAZON FRESH
APN: 233-044-027
Premises Address: 5425 Sunrise Blvd., CITRUS HEIGHTS CA 95610 Amazon Retail LLC is seeking to open a new Amazon Fresh full-service grocery store at 5425 Sunrise Blvd. in Citrus Heights. Hours of operations will be daily from 8:00 am to 10:00 pm. Customers shopping at, or choosing to pick-up from, Amazon Fresh will find a wide assortment of national brands and highquality produce, meat, and seafood. The Amazon Fresh culinary team offers customers a range of delicious prepared-foods made fresh in store every day.

This location will sell beer, wine and spirits for off-sale as well as provide limited alcohol instructional tastings in the cordoned off alcohol sampling area, as permitted by the Department of Alcoholic Beverage Control (“ABC”) pursuant to Type 21 and 86 licenses. Tastings will be offered by beverage suppliers to customers aged 21+, which offers customers an opportunity for product education as well as an opportunity to taste merchandise before purchasing to ensure complete satisfaction. Tastings are served in small sample sizes in accordance with ABC regulations.

All employees and supplier partners who engage in instructional tastings will be certified in accordance with the ABC’s Responsible Beverage Service training program. Likewise, store employees will be trained in proper ID verification. Alcoholic beverages are under constant employee and video surveillance, and as such, Amazon Fresh stores have a low incidence of alcoholic beverage thefts and underage sales.

Amazon Fresh currently operates 21 grocery stores with ABC licenses in California. Amazon has a strong history of ABC compliance and store leaders take measures to keep all locations looking clean and nice, including litter removal and signage to prevent loitering.

ITEM 8 Agenda Packet Page 48
ITEM 8 Agenda Packet Page 49
ITEM 8 Agenda Packet Page 50

ADA CART
42 42

ADA CART
ADA

PRODUCE
COOLER
24 MEAT
COOLER
19 MDF ROOM
21 FREEZER
22 OFFICE
15 BREAK
ROOM
14 OFFICE
16 RECEIVING
17 PRODUCE
PREP
25 VESTIBULE
ENTRY
1 COUNTING /
IT
WOMEN'S 12

RESTROOM
11 MEN'S

RESTROOM
10 STAGING
13 EXIT
EXIT
EXIT
ENTRY

CHECKOUT

KITCHEN
COOLER
9 SUSHI PREP
32 KITCHEN

FREEZER
8 PIZZA PREP
31 ALCOHOL

STORAGE
DAIRY
COOLER
29 ADJACENT TENANT

ADJACENT TENANT

READY TO

COOK PREP
33 READY TO

EAT PREP
34 EXIT
ENTRY

EXITEXIT
25' - 11"
48' - 2"
11' - 3 1/4"
6' - 9 3/8"

LOCKING
CAGE
18 SCULLERY
SALES 30
FLOOR
2 FIRE RISER
ROOM N.I.C.

ITEM 8 Agenda Packet Page 51
Citrus Heights Police Department
6315 Fountain Square Drive  Citrus Heights, CA 95621  (916) 727-5500 Alexander A. Turcotte, Chief of Police
CHPD Mission: To safeguard the people we serve and enhance quality of life by impacting crime with skilled policing professionals and community partnerships.

DATE: July 29, 2024
TO: Steffane Lui, Assistant Planner
City of Citrus Heights – Planning Division
FROM: Wesley Herman, Lieutenant
Citrus Heights Police Department – Special Services Division SUBJECT: Amazon Fresh – 5425 Sunrise Blvd: Letter of Public Convenience & Necessity The Citrus Heights Police Department has reviewed the proposed Letter of Public Convenience and Necessity for the proposed Amazon Fresh to be located at 5425 Sunrise Blvd. in Citrus Heights. The review process included an external inspection of the proposed location, a review of surrounding businesses with alcohol licenses, a CPTED evaluation, and an analysis of calls for service in the area.

The proposed location is within an existing retail center and issatisfactory regarding environmental design and lighting. Several other tenants within the center operate as compatible users, including restaurants, retail stores, a fitness facility, and a Starbucks. The store has yet to be opened for business. However, it will be well-lit, with bright lights near the entrances and exits. The parking lot will have lighting in numerous and strategic areas to ensure security during nighttime hours. The interior of the store will be brightly lit and well visible. Shrubbery and vegetation will be trimmed and maintained to ensure natural surveillance of the property.

We will ask that the security plan for the grocer mirrors that of the other users in the city with similar operations and will be consistent with the general security plans and practices of similar operators.

An analysis was conducted of calls for service at 5425 Sunrise Blvd during the past year. There appeared to be no noticeable trends nor any above-average number of calls for service at the location, and as compared to other similar businesses in Citrus Heights.

The Citrus Heights Police Department recommends approval of the proposed request for Amazon Fresh to obtain a Type 21 and Type 86 ABC license for this location.

ITEM 8 Agenda Packet Page 52
July 25, 2024
City of Citrus Heights
6360 Fountain Square Drive
Citrus Heights, CA 95621
RE: Future Grocer at 5425 Sunrise Blvd.

To: Mayor Bret Daniels and City Councilmembers,
As you are aware, Merlone Geier Partners has spent millions of dollars renovating an aging shopping center in Sunrise MarketPlace (SMP) bringing exciting new tenants to the area such as Club Studio Fitness. The center will also be home to a future grocer. The grocer tenant has applied for an application for a Letter of Public Convenience & Necessity (PCN) for the sale of beer, wine, and distilled spirits for off-premise consumption (Type 21) and instructional tasting (Type 86).

On behalf of the SMP Board of Directors, we highly encourage you to approve this application.

Please consider these benefits during your deliberations:
• Competition: To be successful, and add another choice for shoppers, the grocer tenant must be able to have equity with all other grocery options in the MarketPlace (all of which currently sell alcohol.)
• Convenience: It’s more convenient to pick up alcohol along with your regular grocery shopping, saving a trip to and saving on fuel consumption and greenhouse gas emissions. • Expectations: Customers have come to expect a full-service offering, including alcohol at their local grocery store. This allows the tenant to meet the needs of their customers. • A Unique Offering- unlike other grocers in the area, the tenant will also provide instructional tastings adding an experiential component to the store.

Overall, the integration of alcohol sales into grocery stores enhances convenience and accessibility, making it easier for people to manage their shopping needs. We appreciate your consideration of our support for this tenant’s application for a PCN.

Warmest Regards,
Kathilynn Carpenter
Executive Director
Sunrise MarketPlace Business Improvement District
ITEM 8 Agenda Packet Page 53
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: August 14, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Casey Kempenaar, Community Development Director
Nicole Piva, Housing and Human Services Program Coordinator

SUBJECT: Resolution Authorizing the City Manager to Execute a Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc dba Hope Cooperative for the Auburn Oaks Project
Summary and Recommendation
Hope Cooperative (Hope) is a nonprofit organization that provides behavioral health and supportive housing services in the Sacramento region. Staff recommends approval of a Grant Recipient Agreement (Agreement) to partner with Hope to provide funding in the amount of $500,000 to acquire and develop the property at 7501 Sunrise Blvd., Citrus Heights, into an eighty-eight (88) unit senior permanent supportive housing project.

Staff recommends the following motion:

Motion: Move to adopt Resolution No. 2024- ___ A Resolution of the City of Citrus Heights, California, authorizing the City Manager to execute a Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc dba Hope Cooperative for the Auburn Oaks Project.

City Council Strategic Goal/Objective
This staff report aligns with the following Citrus Heights City Council Strategic Goals to Preserve and Enhance Public Safety and Enhance Community Vibrancy and Engagement.

Fiscal Impact
Hope has received an approximately $25M Community Care Expansion (CCE) Capital Expansion grant from the California Department of Social Services (CDSS). Hope has identified a shortfall in funding and requested the City provide gap funding of $500,000 to support the project as outlined in the Agreement (Exhibit A).

ITEM 9 Agenda Packet Page 54
Subject: Resolution Authorizing the City Manager to Execute a Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc dba Hope Cooperative for the Auburn Oaks Project Date: August 14, 2024

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The Agreement includes the City’s gap funding contribution to the project as up to $500,000.

There are no General Fund dollars allocated to this project. The funding amount is anticipated to consist of the City’s Permanent Local Housing Allocation (PLHA) funding.

The City’s proposed primary role in the project is a financial contributor, Hope is the developer and operator of the project.

Background and Analysis
The City of Citrus Heights is dedicated to compassionately supporting unhoused and housinginsecure individuals and families while upholding our steadfast commitment to the health and safety of the entire community. Citrus Heights city staff, police, and program representatives regularly collaborate to connect unhoused and housing-insecure individuals to essential services, including housing. There is a significant shortage of housing in the vicinity that prioritizes unhoused and housing-insecure seniors who receive Social Security income.

On July 8, 2024, Hope Cooperative announced that it has been selected to receive a Community Care Expansion (CCE) Capital Expansion grant from the California Department of Social Services (CDSS). This award is based on the application package Hope submitted for the Auburn Oaks Project in Citrus Heights.

The total awarded fund for this project is $24,776,946, which will include a Capitalized Operating Subsidy Reserve (COSR) award of $2,492,682. This funding will enable Hope to purchase the property, rehabilitate, and operate Auburn Oaks, providing essential Permanent Supportive Housing for seniors in our community.

Project Description
This project is a collaborative effort with Sacramento County Behavioral Health and the Department of Child, Family and Adult Services. The project will be professionally managed with onsite supervision and wrap-around services.
• The project will remain as a 55+ senior serving facility. • Household income must not exceed 50% of the Area Median Income. • Head of household must be homeless or at-risk of homelessness. • A property management firm will operate the property. Property management and/or resident services staff will be present and on duty at the property 24 hours per day 7 days a week. • Hope Cooperative will provide resident services/case management oversight on site at the property.
• 30 units from County of Sacramento Behavioral Health. • 30 units from Sacramento County Department of Family Child and Adult Services. • 28 units from the Coordinated Access System managed by Sacramento Steps Forward.

ITEM 9 Agenda Packet Page 55
Subject: Resolution Authorizing the City Manager to Execute a Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc dba Hope Cooperative for the Auburn Oaks Project Date: August 14, 2024

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This project will expand community capacity to serve vulnerable seniors who are experiencing homelessness or are at risk of homelessness. This includes seniors who have a serious mental illness or those who have Adult Protective Services involved. There is a shortage of housing capacity that gives priority to applicants and recipients of social security income specifically focused on seniors.

Hope Cooperative Funding Gap
Despite best efforts to simultaneously conduct due diligence and prepare a grant application for the project, Hope has identified a significant funding gap to complete the rehabilitation of the Auburn Oaks property. A new HVAC system and a new roof for the entire facility will be required resulting in a funding gap of $4.8 million. They are seeking additional funding from the State and Sacramento County to close the gap. In addition, Hope requested the City’s participation to close the funding gap.

Grant Recipient Agreement Requirements
The Agreement for consideration (Exhibit A) will commit the City of Citrus Heights to contributing $500,000 to the Auburn Oaks project in exchange for rehabilitation and operation of the facility as outlined in the Draft Grant Recipient Agreement. The agreement requires recordation of a subsequent Regulatory Agreement for the long term (minimum of 20 years) operation and maintenance of the facility in accordance with funding requirements and the stipulations contained in the Grant Recipient Agreement. Upon recordation of the Regulatory Agreement, the Grant Recipient Agreement will terminate.

The City anticipates funding this project using Permanent Local Housing Allocation (PLHA) funding. The funding plan may vary as funding sources have their own set of restrictions, reporting requirements, and expenditure deadlines; however, adequate funding and flexibility exist to fund the $500,000 contribution to the funding gap.

The attached resolution authorizes the City Manager to execute the Draft Grant Recipient Agreement with minor modifications and a future Regulatory Agreement as stipulated in the Draft Grant Recipient Agreement.

Attachments

1. Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute a Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc dba Hope Cooperative for the Auburn Oaks Project Exhibit A: Draft Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc dba Hope Cooperative
ITEM 9 Agenda Packet Page 56
RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT

RECIPIENT AGREEMENT BETWEEN THE CITY OF CITRUS HEIGHTS AND TLCS, INC

DBA HOPE COOPERATIVE FOR THE AUBURN OAKS PROJECT
WHEREAS, The City of Citrus Heights is dedicated to compassionately supporting unhoused and housing-insecure individuals and families while upholding our steadfast commitment to the health and safety of the entire community.

WHEREAS, There is a significant shortage of housing in the vicinity that prioritizes unhoused and housing-insecure seniors who receive Social Security income.

WHEREAS Hope Cooperative (Hope) is a nonprofit organization that provides behavioral health and supportive housing services in the Sacramento region; WHEREAS, Hope received a Community Care Expansion grant from the California Department of Social Services. The funding will enable Hope to acquire and develop the property located at 7501 Sunrise Blvd., Citrus Heights into an eighty-eight (88) unit senior permanent supportive housing project;
WHEREAS, the City of Citrus Heights commits to provide Hope funding in the amount of Five Hundred Thousand Dollars ($500,000). The funding is anticipated to consist of the City’s Permanent Local Housing Allocation (PLHA) funds;
WHEREAS, the City Manager is granted authority to amend the funding sources as needed to fulfill the City’s contributions.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby declare, find, determine and order as follows:

A) The Recitals set forth above are true and correct and incorporated herein by this reference.

B) The City Council supports the acquisition and rehabilitation of the property into 88 studio and one-bedroom apartments for seniors who are homeless or at-risk of homelessness.

C) The City Council authorizes the City Manager or designee to make minor modifications to and execute the Draft Grant Recipient Agreement attached hereto as Exhibit A and a future Regulatory Agreement as described within the Grant Recipient Agreement.

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

E) This resolution shall take effect immediately.

ITEM 9 Agenda Packet Page 57
PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 14th day of August 2024, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: CouncilMembers:

Bret Daniels, Mayor
ATTEST:

Amy Van, City Clerk
Exhibits
A. Draft Grant Recipient Agreement between the City of Citrus Heights and TLCS, Inc, dba Hope Cooperative
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GRANT RECIPIENT AGREEMENT

BETWEEN THE CITY OF CITRUS HEIGHTS
AND
TLCS, INC dba HOPE COOPERATIVE
THIS GRANT AGREEMENT ("Agreement") entered into as of _________ (the “Effective Date”) by and between the CITY OF CITRUS HEIGHTS, a California municipal corporation ("City"), and TLCS, INC dba HOPE COOPERATIVE, a California non-profit public benefit corporation ("Hope") and 7501 Sunrise Blvd. LLC, a California limited liability company ("LLC" and together collectively with Hope, "Recipient").

R E C I T A L S
A. City desires to provide funding to acquire and develop real property located at 7501 Sunrise Blvd, Citrus Heights (“Property”) into an eight-eight (88) unit senior permanent supportive housing project (“Project”), a description of which is presented in Exhibit A, attached hereto; and B. Hope is a non-profit organization that provides behavioral health and supportive housing services in the greater Sacramento region and is willing and able to perform duties and render services that are determined by the City Council to be necessary or appropriate for the welfare of residents of the City; and
C. Hope is sole member and manager of LLC, an entity formed for the single purpose of acquiring, owning and operating the Project. on the parties hereto anticipate that the LLC will acquire the Property on or about October 25, 2024 (“Acquisition Closing”); and D. Funding for this project is through the State of California’s Permanent Local Housing Allocation Program (“PLHA”), which funds local governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities; and
E. City desires that such duties and services be provided by Recipient, and Recipient agrees to perform such duties and render such services, as more particularly set forth below:

NOW, THEREFORE, the parties hereto agree as follows:

1.0 TERM OF AGREEMENT. This Agreement shall continue in force and effect until the earlier of December 31, 2026, or recordation of the Regulatory Agreement in accordance with Section 2.3 of this Agreement unless earlier terminated in accordance with Section 8.4 of this Agreement,

2.0 RECIPIENT OBLIGATIONS

2.1 Use of Funds. Recipient hereby agrees to use the funds provided to Recipient by the City solely for the project pursuant to all of the terms and conditions of this Agreement. The ITEM 9 Agenda Packet Page 59
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project is more particularly set forth in Exhibit A, attached hereto and incorporated herein by reference (the “Scope of Work”). Use of funds will be in compliance with all the State of California PLHA funding requirements.

2.2 Representation and Warranties. Recipient hereby represents and warrants to the City that Recipient will perform the project in a manner consistent with the standard of care and skill ordinarily exercised by members of the profession practicing under similar conditions in the geographic vicinity and at the time the Project is performed.

2.3 Compliance with Law. Recipient shall perform the project and operate the facility, if applicable, in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency having jurisdiction in effect at the time service is rendered. Recipient shall comply with all applicable PLHA requirements, including the requirement for the LLC to record a regulatory agreement against the Property. The Regulatory Agreement shall commit the LLC to the scope of work identified in Exhibit A. The term of the Regulatory Agreement shall be a minimum of 20 years and the Agreement shall be subject to City review and approval prior to recordation.

2.4 Licenses, Permits, Fees and Assessments. Recipient shall obtain, at its sole cost and expense, such licenses, permits and approvals as may be required by law for the performance of the project and the operation of the facility.

2.5 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the obligations of the other.

3.0 DISBURSEMENT OF FUNDS

3.1 Maximum Amount of Funds. The = amount of funds to be provided to Recipient is Five Hundred Thousand Dollars ($500,000.00) (“Grant Amount”). City shall pay Recipient for services rendered pursuant to this Agreement at the time and in the manner set forth herein. =

3.2 Termination of Fund Obligation. The services to be provided under this Agreement may be terminated without cause at any point in time in the sole and exclusive discretion of City, if the Recipient does not comply with the standards set forth under the PLHA Program. In this event, City shall compensate the Recipient for all outstanding costs incurred for work satisfactorily completed as of the date of written notice thereof. Recipient shall maintain adequate logs and timesheets in order to verify costs incurred to date.

3.3 Method of Payment. Recipient anticipated acquisition, construction, and permanent funding sources are set forth in Exhibit B, “Project Sources.” City will place the entirety of the Grant Amount ($500,000) in escrow at least two (2) days prior to Acquisition Closing date, upon at least three (3) days’ notice from Recipient to City.

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4.0 PERFORMANCE SCHEDULE
Recipient shall commence, prosecute and complete the project within the time periods established in the "Scope of Work" attached hereto as Exhibit A and incorporated herein by this reference.

5.0 COORDINATION OF WORK

5.1 Representative of Recipient. The Chief Executive Officer of Hope is hereby designated as being the representative of Recipient authorized to act in its behalf with respect to this Agreement and make all decisions in connection therewith.

5.2 Contract Officer. Contract Officer shall be the Community Development Director, or such person as may be designated by the City Manager. It shall be the Recipient's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Recipient shall refer any decisions that must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

5.3 Assignment. Neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty-five percent (25%) of the present ownership and/or control of Recipient, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Recipient or any surety of Recipient of any liability hereunder without the express consent of City.

5.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Recipient, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Recipient's employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Recipient shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with the role.

Recipient shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Recipient in its business or otherwise of a joint venture or a member of any joint enterprise with Recipient.

5.5 Conflict of Interest. Recipient may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Recipient in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California ITEM 9 Agenda Packet Page 61
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Government Code Section 81000 et seq.

Recipient shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. Recipient hereby warrants that it is not now, nor has it been in the previous 12 months, an employee, agent, appointee, or official of the City. If Recipient was an employee, agent, appointee, or official of the City in the previous twelve months, Recipient warrants that it did not participate in any manner in the forming of this Agreement.

Recipient understands that, if this Agreement is made in violation of Government Code § 1090 et seq., the entire Agreement is void and Recipient will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Recipient will be required to reimburse the City for any sums paid to the Recipient. Recipient understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California.

5.6 Solicitation. Recipient agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

6.0 INSURANCE REQUIREMENTS. All Insurance coverage shall be in compliance with City of Citrus Heights Policies.

7.0 ADMINISTRATIVE REQUIREMENTS

7.1 Records Created as Part of Recipient’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Recipient prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Recipient hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use.

City and Recipient agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

7.2 Recipient’s Books and Records. Recipient shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment to the Recipient to this Agreement.

Any records or documents that this Agreement requires Recipient to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if ITEM 9 Agenda Packet Page 62
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the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of 3 years after final payment under the Agreement.

7.3 Client Data. The Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to City of Citrus Heights monitors or their designees for review upon request.

7.4 Disclosure. The Recipient understands that client information collected under this Agreement is private and the use or disclosure of such information, when not directly connected with the administration of the City of Citrus Heights's or Recipient's responsibilities with respect to services provided under this Agreement, is prohibited by law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.

7.5 Performance Monitoring. The City of Citrus Heights will monitor the performance of the Recipient against goals and performance standards required herein. Substandard performance as determined by the City of Citrus Heights will constitute non-compliance with this agreement. If action to correct such substandard performance is not taken by the Recipient within a reasonable period of time after being notified by the City of Citrus Heights, contract suspension or termination procedures will be initiated. The City may conduct an evaluation of the Recipient’s performance, at any time, in its sole discretion.

7.6 Close-Outs. Recipient obligation to the City of Citrus Heights shall not end until all closeout requirements are completed. Activities during this closeout period shall include, but are not limited to making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and receivable accounts to the City of Citrus Heights and determining the custodianship of records.

8.0 ENFORCEMENT OF CONTRACT

8.1 Applicable Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California and the United States, as applicable. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Alameda, State of California, the United States District Court for the Northern District of California, or any other appropriate court in Alameda County, and Recipient covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the insuring party in writing of its contentions by submitting a claim therefore.

The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the ITEM 9 Agenda Packet Page 63
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cure of such default within thirty (30) days after service of the notice, or such longer period as may be permitted by the injured party; provided that if the default is an immediate danger to the health, safety and general welfare, such immediate action may be necessary. Notwithstanding the foregoing, the City may suspend any further payment of funds until Recipient is in compliance with this Agreement. Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the depute is not cured.

8.3 Remedies Upon Default by Recipient. In addition to any other rights or remedies available at law or in equity, if Recipient fails to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 8.2:
a. Temporarily withhold payment of funds pending correction of the default by Recipient;
b. Refuse to advance all or any part of the funds for the project and reallocate said funds to another activity;
c. Wholly or partially suspend or terminate the award and this Agreement; and d. Withhold further awards for the project and/or the facility; and e. Require Recipient to repay any funds that the City determines were not expended in compliance with the requirements of this Agreement, the Act or the Regulations.

8.4 Termination for Cause. City or Recipient may terminate this Agreement, for cause, subject to the notice and cure periods set forth in Section 8.2 of this Agreement, upon thirty (30) days' written notice to the non-terminating party.

8.5 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

8.6 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

8.7 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to complete specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of the Agreement.

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8.8 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

9.0 CITY OFFICERS AND EMPLOYEES

9.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Recipient, or any successor in interest, in the event of any default or breach by the City or for any amount that may become due to the Recipient or to its successor, or for breach of any obligation of the terms of this Agreement.

9.2 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the contract which affects his/her financial interest or the financial interest of any corporation, partnership or association in which s/he is, directly or indirectly, interested, in violation of any State statute or regulation. The Recipient warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

9.3 Indemnify and Hold Harmless. Recipient agrees to indemnify, defend, and hold harmless City and its officers, agents and employees, from any liabilities, claims, suits or actions, losses or expenses, including attorney fees, caused by, arising out of, or in connection with, either directly or indirectly, Recipient's performance under this Agreement. Nothing herein shall be construed to require Recipient to indemnify the City, its officers, agents and employees against any responsibility or liability in contravention of Section 2782 of the California Civil Code. With respect to third party claims against the Recipient, the Recipient waives any and all rights of any type to express or implied indemnity against the Indemnitees.

10.0 MISCELLANEOUS PROVISIONS

10.1 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid first-class mail ITEM 9 Agenda Packet Page 65
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To the City: City of Citrus Heights
6360 Fountain Square Drive
Citrus Heights, CA 95621
Attention: Community Development
Director
To the Recipient: TLCS, Inc dba Hope Cooperative
650 Howe Avenue, Bldg 400-4
Sacramento, CA 95825
Attention: Chief Executive Officer
7501 Sunrise Blvd. LLC
c/o TLCS, Inc dba Hope
Cooperative
650 Howe Avenue, Bldg 400-4
Sacramento, CA 95825
Attention: Chief Executive Officer
at his/her address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

10.3 Integration; Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing.

10.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement that are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.

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10.5 Corporate Authority. The persons executing this Agreement on behalf of the parties hereby warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and, (iv) the entering into this Agreement does not violate any provision of any other agreement to which said party is bound.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties hereto caused this Agreement to be executed the day and year above written.

CITY: RECIPIENT:

CITY OF CITRUS HEIGHTS TLCS, Inc dba HOPE COOPERATIVE, a California nonprofit public benefit corporation
Ashley J. Feeney, City Manager April Ludwig, CEO
7501 Sunrise Blvd. LLC
By: TLCS, Inc. dba Hope Cooperative,
a California nonprofit public benefit corporation,
its sole member and manager
_____________________________________
April Ludwig, CEO
Attest:

Amy Van, City Clerk
Approved as to Form:

Ryan R. Jones, City Attorney
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EXHIBIT A

SCOPE OF WORK
The project includes the acquisition of property improved with an existing 81-room assisted living facility and an attached 48-unit apartment wing, and conversion/rehabilitation of the property into 88 units of permanent supportive housing consisting of studio and one-bedroom apartments. The existing 80 assisted living rooms will be combined/reconfigured into 40 apartments. Other modifications will be made to accommodate offices, meeting rooms and recreation for the support and staff and use by residents. The existing 48 apartments will be updated throughout with modern systems and finishes. Other systems throughout the building will be updated as needed and required by code.

Residents will be referred from partner agencies only, which include the following:
- No more than 30 units from County of Sacramento Behavioral Health Full Service Partnership
- 30 units from Sacramento County Department of Family Child and Adult Services - 28 units from the Coordinated Access System managed by Sacramento Steps Forward

Residents will meet the following criteria to be eligible:
- Head of household must be 55 years or older
- Household income must not exceed 50% of the Area Medium Income - Head of household must be Homeless or At-Risk of Homeless

Other operational components to the project:
- A professional property management firm will operate the property - Hope Cooperative will provide resident services/case management oversight on site at the property
- The property will continue to operate as interim shelter during the rehabilitation/construction period
- While participation in services is voluntary, all residents will have access to on site case management
- Property management and/or resident services staff will be present and on duty at the property 24 hours per day 7 days per week.

Any modification to the operation or configuration of the site other than as set forth above shall not occur without prior written authorization from the City of Citrus Heights, which shall not be unreasonably withheld, conditioned, or delayed.

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EXHIBIT B

PROJECT SOURCES
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: August 14, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Alexander A. Turcotte, Chief of Police
Kris Frey, Special Services Division Commander
Tiffany Campbell, Police Services Manager

SUBJECT: County of Sacramento - Animal Shelter Services Agreement

Summary and Recommendation
Staff recommends Council adopt a resolution authorizing the City Manager to enter into a fiveyear agreement with the Bradshaw Animal Shelter (BAS) in Sacramento County to be effective and commence on September 1, 2024, through June 30, 2029, with the option of renewing the agreement through July 1, 2031. The agreement may be terminated without penalty by either party with or without cause upon written notice.

Staff recommends the City Council adopt Resolution No. 2024-___ a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with the County of Sacramento for Animal Shelter Services.

City Council Strategic Goal/Objective
This staff report aligns with the following Citrus Heights City Council Strategic Plan Objectives:

Goal: Preserve and enhance public safety.

Fiscal Impact
Council adopted a resolution on June 27, 2024, approving amendments to the Fiscal Year 2024/25 budget to account for an increased cost of sheltering services in the region. Therefore, there is no fiscal impact to the general fund by adopting this contract as the necessary funds are currently within budget. The City’s prorated cost for FY 2024/25 is $414,354.

There are no built-in escalators with this agreement. The second and subsequent fiscal years shared cost will be calculated based on the percentage of animal intake from the two prior fiscal ITEM 10 Agenda Packet Page 71
Subject: Animal Care Services Agreement with the County of Sacramento Date: August 14, 2024

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years. The terms of the agreement are further described within the background and analysis section.

Background and Analysis
In March 2024, the City received notification from the Placer County Animal Shelter (PCAS) that they would not be able to provide shelter service to our City past December of 2024, citing a significant cost increase for sheltering and overcrowding of the shelter which required them to limit service to agencies only within Placer County. PCAS agreed to a limited term contract renewal for animal shelter services to allow the City time to locate and contract with a new vendor. The limited-term contract represented a significant price increase to $34,415 per month ($412,980 annually) compared to the previous monthly cost of $18,621 ($223,452 annually).

This represents a cost increase of approximately 85% and a reduction of service as the new contract discontinued after-hour on-call field services. This had a substantial budgetary impact as well as a workload increase for our current staff related to after hours on-call services.

Staff has researched all other viable regional sheltering alternatives to include Sacramento County SPCA, Placer County SPCA, Elk Grove Animal Shelter, El Dorado County Animal Services, and the Bradshaw Animal Shelter (BAS) in Sacramento County.

Apart from BAS, no other shelters in the region have the capacity or infrastructure to offer services to the City. All regional shelters are facing maximum capacity issues and are currently searching for creative solutions to house animals, stray and owned, for the citizens they serve.

Staff worked with BAS to negotiate an agreement based on actual animal intake numbers with flexibility to allow staff to pursue alternate kenneling opportunities throughout the course of the agreement. The overall fiscal objective is to limit the number of animals entering BAS from the City by developing and utilizing alternate, locally accessible temporary kennel options for the City’s stray and abandoned animals.

The agreement terms negotiated with BAS provide the City with shelter services each year throughout the five-year agreement term on the percentage of animal intake being used from two prior fiscal years, which will provide a fixed percentage to be applied to the estimated budget expenses to determine share of cost for each year between the shared stakeholders, currently the City of Galt, and the County of Sacramento. The County will provide Citrus Heights with cost estimates by March 30th each year beginning in 2025, for subsequent fiscal year budgets under this agreement.

The proposed shelter service agreement includes the standard level of care afforded to County animals housed at the shelter, along with participation in adoption, chipping, and vaccination programs offered through the shelter. Services included are provision of food, water, shelter and veterinary care available daily, as well as access to foster programs, adoptions, low-cost vaccination clinics, and other programs and benefits available to County residents through the shelter and related programs. BAS and the Community Spay/Neuter Clinic have partnered together to create a more efficient, effective and humane community cat program for community ITEM 10 Agenda Packet Page 72
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cats residing in Sacramento County. This program offers appointments on a first-come, firstserved, basis allowing community members to receive services for two cats per person monthly.

California animal shelters and rescue organizations, even those across the country, are experiencing an overflow crisis as the number of dogs and cats in shelters awaiting adoption and overall strays continue to increase. Shelters experiencing maximum capacity can be attributed to the number of abandoned pets, voluminous litters born due to lack of services, and the challenges faced with minimal desire for pet adoptions. This sheltering dilemma has reached new heights and has exponentially increased the workload of all animal shelters and animal services professionals and service providers alike.

Shelters have been overburdened for more than a year and a half. Each are regularly operating with kennels at over 100% capacity. The shelter situation has adversely impacted staff, animals, volunteers, advocates and communities. BAS is also experiencing shelter capacity challenges.

Over the past several months, staff have met with the BAS and the county 311 operation center to negotiate the terms of the agreement. Through multiple meetings and strategic alignment sessions, a mutually beneficial partnership has formed congruently with our City’s commitment to provide affordable and compassionate animal services to our residents focused on:
 Local Pet Reunification
 Responsible Pet Ownership, Licensing and Micro-Chipping Requirements  Education and Community Engagement to Reduce Overpopulation (Trap, Neuter, Release)
 Pet Wellness to Prevent Behavioral Problems
 Preserve and Enhance Public Safety
The partnership with BAS not only aligns with our service delivery model but will also enhance City services by providing greater access to countywide animal programs, increased dedicated telephone service for citizens to report animal calls via the nationally recognized 24/7 county call center, known as 311 Connect. The agreement includes ease of access for citizens to report online, utilizing a phone application, or by telephone. The agreement also includes dispatch services for our current Animal Services Officers, use of dedicated animal service software, and animal licensing and tracking at no additional cost.

City staff worked with BAS to negotiate an agreement that will enhance City services by allowing the community to participate in many large-scale programs already being offered to the residents of Sacramento County while mitigating operational challenges, controlling agreement costs and increasing services. Specifically, the agreement will provide the following benefits:
 Local Sacramento County Animal Shelter
 24/7 311 Customer Service Call Center
 311 Citizen Reporting Modules
 On-Site Pet Hospital for sheltered animals
 On-Site BAS Veterinarians;7-day a week coverage
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 Low Cost Spay/ Neuter Clinic
 PAWS Mobile Clinic services for pets owned by unhoused individuals  Community Cat Program by appointment
 Fundraiser Events Participation
 Chipping- Drive Through Micro Chip Clinics
 Low Cost or Free Vax Clinic
 Future 2025 MASH Clinic Mobile Animal Sterilization Clinic BAS is located at 3839 Bradshaw Road in Sacramento; approximately 12.3 miles from Citrus Heights making it a more convenient trip for residents compared to the previous location in Placer County. There are many benefits associated with the proposed agreement, and a mutually beneficial partnership may help to further advance the long-term City goal of enhanced animal services delivery to residents.

The City’s current contract with Placer County expires August 31, 2024. Staff recommends Council authorize the City Manager to enter into the proposed Animal Shelter Service Agreement with Sacramento County. Staff will provide notice to Placer County Animal Shelter terminating the existing contract effective August 31, 2024, and the BAS contract would begin September 1, 2024.

Attachments

1. Resolution No. 2024-___ a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with the County of Sacramento for Animal Shelter Services

2. Animal Shelter Services Agreement
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RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT

WITH THE COUNTY OF SACRAMENTO FOR ANIMAL SHELTER SERVICES

WHEREAS, since November 2017, the City has contracted with the Placer County Animal Shelter for animal sheltering services; and
WHEREAS, the City received notification from the Placer County Animal Shelter that they would not be able to provide shelter service to the City past December of 2024; and WHEREAS, the City wishes to preserve and enhance public safety by providing animal shelter services and greater access to local Sacramento County animal related programs to the residents of Citrus Heights; and
WHEREAS, the Bradshaw Animal Shelter (BAS) in Sacramento County wishes to enter into a five- year service agreement for animal shelter services to be effective and commence on September 1, 2024, through June 30, 2029, with the option of renewing the agreement through July 1, 2031; and

WHEREAS, contracting with the Sacramento County Animal Shelter will provide greater access to local Sacramento County animal related programs, thereby increasing services offered to the residents of the City of Citrus Heights; and

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby authorize the City Manager to execute a five year contract with the option of renewing the agreement through July 31, 2031, with the initial prorated cost for FY 2024/25 of $414,354 and subsequent years based on the percentage of animal intake being used from two prior fiscal years and execute any and all necessary agreements, amendments and extensions with the County of Sacramento Bradshaw Animal Shelter for Animal Shelter 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 14th day of August 2024 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Bret Daniels, Mayor
ATTEST:

Amy Van, City Clerk
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AGREEMENT FOR

ANIMAL CARE SERVICES
THIS AGREEMENT is made and entered into on _______________________, 2024, by and between the COUNTY OF SACRAMENTO, a political subdivision of the State of California, hereinafter referred to as “COUNTY,” and the CITY OF CITRUS HEIGHTS, a general law city, hereinafter referred to as “CITY.”

RECITALS
WHEREAS, via contract approved by the Board of Supervisors on_____, 2024, COUNTY provided shelter services to CITY effective September 1, 2024, through June 30, 2029 and continuing by automatic renewals until contract termination on July 1, 2031; and WHEREAS, CITY does not have its own animal shelter facility; and WHEREAS, CITY and COUNTY desire for COUNTY to provide animal shelter services as noted in this agreement; and
WHEREAS, CITY and COUNTY desire to enter into this Agreement on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, CITY and COUNTY agree as follows:

1. TERM
This Agreement shall be effective and commence as of September 1, 2024, and shall remain in effect until June 30, 2031, unless sooner terminated pursuant to the terms of this Agreement.

2. NOTICE
Any notice, demand, request, consent, or approval that either party hereto may or is required to give the other pursuant to this Agreement shall be in writing and shall be either personally delivered or sent by mail, addressed as follows:

TO COUNTY:

Attn: Annette Bedsworth, Director
Department of Animal Care Services
County of Sacramento
3839 Bradshaw Road
Sacramento, CA 95827
TO CITY:

Attn: Ashley J. Feeney, City Manager
City of Citrus Heights
6360 Fountain Square Drive
Citrus Heights, CA 95621
Either party may change the address to which subsequent notice and/or other communications can be sent by giving written notice designating a change of address to the other party, which shall be effective upon receipt.

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3. SCOPE OF SERVICES
A. Commencement of Services. Services as described in this Agreement shall be deemed to commence September 1, 2024.

B. Summary of Services
County shall provide the following services under this Agreement:
1) Licensing.
2) Animal Sheltering, inclusive of a Volunteer Program and a Veterinary Program. 3) Dispatch Services through 311.

C. Licensing.
1) COUNTY will provide full-service licensing of animals for CITY residents, inclusive of processing new and renewal licenses, distribution of renewal notices, and over-the-counter new and renewal licenses. COUNTY will also provide on-line licensing services to CITY residents. All licenses processed by COUNTY for CITY residents shall be entered in the COUNTY’S Chameleon database. COUNTY shall utilize CITY’S license fee schedules for fees to be charged to CITY residents. CITY shall notify COUNTY in writing of any changes to the CITY’S license fee and the date to which the COUNTY shall begin collection of the new fees.
2) Information for any licenses issued/renewed directly by CITY shall be forwarded to COUNTY for entry into COUNTY’S Chameleon database.

D. Animal Sheltering, inclusive of Volunteer and Veterinary Programs. 1) Hours of Operation. COUNTY, in its sole discretion, shall determine the days and hours of operation of the animal shelter. At the time of execution of this Agreement, the animal shelter is open to the public Tuesday through Sunday 12:00 noon to 5:00 p.m., Wednesday 12:00 noon to 6:00 p.m., and closed on Mondays. COUNTY shall provide advance notice to CITY as soon as practicable in the event COUNTY determines to change the hours the animal shelter is open to the public. No amendments to this Agreement are necessary to change the hours of operation for the animal shelter. 2) Acceptance of Animals from Citrus Heights.
a) COUNTY shall accept at its animal shelter, all dogs, cats and other small domestic animals delivered from CITY jurisdiction; provided, however, that COUNTY is only obligated to accept such animals within the structural and humane operating capacity of the animal shelter. In the event the animal shelter may not accommodate a large number of confiscated animals at one time, CITY may need to make alternate arrangement for housing of such animals. COUNTY will make reasonable and good faith efforts to notify CITY should the animals shelter be at capacity to preclude acceptance of additional animals from CITY; COUNTY’S notice may, without limitation, be by writing, e-mail, text message, personal contact, and/or phone call, taking into account the circumstances at the time of the notice.
b) COUNTY may limit acceptance of animals from CITY residents to those hours the animal shelter is open to the public. “CITY residents” for purposes of this Agreement will be confirmed by current photo identification ITEM 10 Agenda Packet Page 77

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showing a CITY address, or by proof of a photo identification card and bill addressed to the resident at a location in CITY.
c) COUNTY shall accept dead dogs, cats and other animals weighing not more than 150 pounds from CITY jurisdiction, with the exception of horses. d) COUNTY shall not accept livestock from CITY jurisdiction. e) Animals, as used throughout this agreement, refers to both alive and deceased animals.
3) Delivery and Processing of Animals (Intake).
a) For animals collected from CITY jurisdiction by CITY, COUNTY shall process the animals into the COUNTY shelter in the same manner as if the animals were collected within the unincorporated area of the COUNTY. b) For animals collected by CITY and brought to COUNTY’s animal shelter, CITY may deliver animals during the hours the shelter is staffed. For afterhours situations, CITY may contact swing shift officer via COUNTY operator to coordinate delivery. CITY shall check-in with and deliver animals to COUNTY’S intake staff – either Animal Control Officers or Animal Care Attendants so that COUNTY may assure intake protocols are followed. c) Animals, as it relates to animal intake and overall intake cost calculations, refer to both alive and deceased animals
4) Care of Animals.
a) General Care and Veterinary Care. COUNTY shall provide shelter, food, water, and veterinary care, including emergency veterinary care, for animals received hereunder in compliance with applicable State of California statutes and regulations and in accordance with general recognized standards for the humane treatment of animals in the same manner as if the animals were received from within the unincorporated area of COUNTY.
b) Immediate Euthanasia for Irremediable Suffering. In accordance with State of California Food and Agriculture Code Section 17006, COUNTY may immediately euthanize animals received from CITY that are, in COUNTY’S sole judgment, irremediably suffering from a serious illness or severe injury or are newborn without their mothers.
5) Return to Owner, Notices re Animals Received, Discretionary Waiver of Fees.

COUNTY shall provide for the redemption of animals by owners and shall issue all appropriate notices relating to animals received and the disposal of such animals in the same manner as if the animals were received from within the unincorporated area of the COUNTY. COUNTY shall have discretion to waive fees based on circumstances, e.g., but not by way of limitation, discretion to waive/refund portions of fees if owners commit to spay or neuter impounded intact animals. Fees waived by COUNTY may not be subsequently billed to CITY.
6) Control and Ownership of Animals.
a) Control. Upon proper completion of intake processing of animals received from CITY jurisdiction, control of the animals, excepting animals subject to legal holds, shall belong to COUNTY in the same manner as if the animals ITEM 10 Agenda Packet Page 78

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were received from within the unincorporated area of COUNTY, and CITY shall no longer exercise control of the animals.
b) Legal Holds. COUNTY shall control and care for animals delivered by CITY subject to legal holds in the same manner as if the animals were received from within the unincorporated area of COUNTY. For purposes of this Agreement, “legal holds” means those animals that are confiscated for neglect, cruelty, bite quarantine, vicious, dangerous or similar circumstances. Access and control by CITY of such animals for purposes of evidence/prosecution shall be available during the hours that COUNTY’S animal shelter is open to the public or upon advance coordination by CITY with COUNTY for access during other hours. Access to such animals by other persons (e.g., owners, public) shall be restricted in accordance with the practices of the COUNTY for animals in like situations received from within the unincorporated area of COUNTY. Upon completion of the legal holds as evidenced by a certified copy of the order of disposition of the animal and a written letter signed by CITY’s Chief of Police, or designee, confirming the circumstances leading to the order and advising that the order is final and no longer subject to appeal or further litigation, COUNTY shall carry-out the terms of the order, excluding any exercise of services in the field.
c) Stray and Surrendered Animals. Upon completion of the required hold periods for each stray and surrendered animal received hereunder, COUNTY shall thereafter be the owner of such animals and may euthanize, redeem, adopt or transfer such animals as COUNTY deems appropriate in COUNTY’s sole discretion in the same manner as if the animals were received from within the unincorporated area of COUNTY.

E. Animal Status Information / Information Technology. COUNTY shall maintain software and technology to provide CITY with real-time information regarding all animals received from CITY jurisdiction.

F. Low-Cost Rabies Vaccination Clinics. COUNTY shall allow participation by CITY residents in the various, periodic vaccination clinics held at the animal shelter and at other locations as may be determined by COUNTY in COUNTY’S sole discretion, provided that such residents pay the fees charged by COUNTY for the services provided at the clinics.

G. Dispatch.
1) Requests for Animal Care Services by CITY will be recorded and dispatched through the County’s 311 call center, in the same manner as the calls are received from within the unincorporated area of COUNTY. 2) For all animals collected by CITY, CITY shall initially make efforts to return such animals to owners in lieu of delivering to COUNTY shelter. For all animals with identification (e.g., tag, tattoo or microchip), CITY shall make and document the initial efforts made to return the animal to its owner (e.g., telephone calls, letters, visit to address of record, etc.) before delivering to COUNTY shelter.

H. City Ordinances. CITY shall maintain in full force and effect during the term of this Agreement an animal care ordinance substantially similar to the provisions found in Sacramento County Code Title 8 and other animal care ordinances and resolutions ITEM 10 Agenda Packet Page 79

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which may be adopted by COUNTY’S Board of Supervisors, as such provisions relate to the services provided under this Agreement, including, but not limited to the type and amount of fees. The parties agree that the City and County animal care ordinances and resolutions in effect as of the date of this Agreement are substantially similar and do not require an amendment to comply with this provision. If the CITY approves any animal-related ordinances which substantially differ from COUNTY’S such that it requires enforcement of differing conditions or fees that may impact this Agreement, a written amendment to this Agreement may be required to include such services and provide compensation to COUNTY for such services. CITY shall be responsible for the validity of its rules, regulations, code and ordinances including but not limited to, any ordinances or codes incorporated by reference in CITY’S ordinances or code, and CITY shall defend, hold harmless, and indemnify COUNTY, its officers, agents and employees with respect to any claim or action challenging the validity of any CITY ordinance or with respect to any claim or action that any action was taken under an invalid CITY ordinance. Failure of CITY to comply with this requirement to maintain substantially similar ordinances may be cause for termination of this Agreement by COUNTY.

I. Spay-Neuter and Community Programs to Address Animal Overpopulation, Decrease Shelter Intake and Reduce Euthanasia. COUNTY shall allow CITY residents to participate in COUNTY’S program for the spay-neuter of dogs and cats on the same conditions as may be required of residents in COUNTY’S unincorporated area. Both parties have committed to partnering and working together to decrease shelter intake and reduce euthanasia by holding off-site adoption events, and by giving strong emphasis to the coordinating of volunteer and rescue group efforts to increase adoptions, fostering, and rescues. CITY shall additionally partner with COUNTY to provide community programs, including but not limited to reduced cost spay/neuter, microchip, vaccination clinics, community cat resources, and other programs designed to reduce the number of animals entering COUNTY’S animal shelter.

J. Limitations / Exclusions. Limitations and/or exclusions from the provision of services hereunder are the following:
1) Non-Horse Large Dead Animal Disposal. COUNTY shall not accept for disposal from either CITY residents or CITY animal control officers, dead animals over 150 pounds (e.g., various other livestock).

4. COMPENSATION AND INVOICING
A. Compensation / County’s Actual Cost. In accordance with Government Code Section 51350, CITY shall compensate COUNTY for all those costs which are incurred by COUNTY in providing the services under this Agreement to CITY. As prohibited by Section 51350, COUNTY shall not charge CITY, either as a direct or indirect charge, any portion of those costs which are attributable to services made available to all portions of the county and which are general overhead costs of operation which COUNTY would incur regardless of whether or not COUNTY were to provide services to CITY under this Agreement.

B. Per Animal Intake Basis for Compensation.
1) CITY and COUNTY recognize that determining actual cost per services is difficult and subject to various interpretations. The parties agree that ITEM 10 Agenda Packet Page 80

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COUNTY compensation per CITY animal intake at the COUNTY shelter is a reasonable and objective manner to determine the impact of provision of services and actual cost for services under this Agreement. Animal intake numbers include all animals, both alive and deceased, received and encountered by COUNTY from CITY.
2) The animal shelter operating expenses of the Department shall be paid by CITY in direct proportion to the percentage of animals received from CITY’s jurisdiction to the total number of animals received at the shelter by COUNTY, in the quarterly invoicing structure described below. CITY’s annual operating expenses will be based on the animal intake percentage from the fiscal year ending two years prior to the fiscal year to be applied. Based on recent historical data from Fiscal Year 2022/23 that intake from CITY is approximately 5% of overall intake compensation from CITY to COUNTY shall initially be calculated as a 5% share of actual program costs for Fiscal Year 2022/23. COUNTY and CITY will confer based on actual animal intake pursuant to the Invoicing section below.
3) Agreed animal intake population figures, the compensation computation method, and estimates of costs are provided in Tables 1 and 2 below. The animal intake amount listed in Table 1 comes from reports of animals that were received and processed at the shelter. The percentage of animal intake being used from two prior fiscal years will provide a fixed percentage to be applied to the estimated budget expenses to determine share of cost for CITY for each year. COUNTY shall provide CITY with estimates by March 30, 2025, and March 30, 2026, March 30, 2027, and March 30, 2028, for subsequent fiscal year budgets under this Agreement. The amounts listed in Tables 1 and 2 are estimates only, based upon recommended budget for Fiscal Year 2024-2025. COUNTY shall initially invoice based on recommended budget for each fiscal year; final invoice and payment shall be based on actual costs for the identified programs.

TABLE 1 – ANIMAL INTAKE FY 2022/2023
Sacramento County Animal Intake FY 2022/23 9445 93%
City of Citrus Heights 500 5%
City of Galt 148 2%
Total Animal Intake for FY 2022/23 10,093 100%
TABLE 2 – COST OF SHELTER SERVICES PER ANIMAL INTAKE
Jurisdiction
Intake
Population
Share of
Cost
City of Citrus Heights 500 5%
Citrus Heights Estimated Share of Cost without Field
Services for FY 2024/25 Budget $414,354
C. Additional Compensation for Hauling of Livestock. CITY shall additionally compensate COUNTY for any COUNTY-assisted hauling of livestock performed on ITEM 10 Agenda Packet Page 81

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CITY’S behalf. Compensation shall be reimbursement of COUNTY’S costs for contracted hauling. COUNTY may also bill CITY residents directly for this service.

D. City License and Other Revenue. CITY license fees collected or received by COUNTY shall be the property of CITY and shall be accounted for and separately remitted to CITY each quarter. All other fees for animal care services provided for by the Sacramento County Code, other COUNTY ordinances or resolutions, and/or any CITY ordinance or resolution shall be retained by COUNTY to further offset costs of services.

E. Invoicing, Reports and Payments.
1) Invoices. COUNTY shall invoice CITY on quarterly basis:
• October for the period July 1-September 30;
• January for the period October 1-December 31;
• April for the period January 1-March 31, and
• July for the period April 1-June 30, plus any adjustment to actual costs during all periods.
2) Reports. COUNTY shall provide the following quarterly reports to CITY in conjunction with COUNTY’S quarterly invoices:
(a) The number of animals delivered to the COUNTY’S animal shelter from CITY jurisdiction from whatever source, and the number attributed to surrender by CITY residents, during the previous quarter.
(b) The number of animals licensed by COUNTY by address in the CITY during the previous quarter and the manner of the requests for such licenses— whether on-line, mail-in or in person.
(c) The number of redemptions (returns to owners) by CITY residents by name and address and animal species during the previous quarter. 3) Payments. The Fiscal Year of the Department shall commence on July 1 of each year and shall terminate on June 30 of the following year. CITY shall remit payments to COUNTY within 30 days after receipt of the quarterly invoices and reports. Any payment not received by COUNTY within 30 days after COUNTY provides invoice and required reports, shall be cause for termination of this Agreement by COUNTY, and COUNTY shall be entitled to recover interest on any balance remaining unpaid for more than 30 days after the due date.

5. COMPLIANCE WITH LAWS
The parties hereto shall observe and comply with all applicable Federal, State, and County laws, regulations and ordinances.

6. GOVERNING LAWS AND JURISDICTION
This Agreement shall be deemed to have been executed and to be performed within the State of California and shall be construed and governed by the internal laws of the State of California. Any legal proceedings arising out of or relating to this Agreement shall be brought in Sacramento County, California.

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7. EMPLOYMENT STATUS / COUNTY AS INDEPENDENT CONRACTOR
At all times during the term of this Agreement, COUNTY employees performing services pursuant to this Agreement are not agents or employees of CITY but are employees of COUNTY acting as an independent contractor to CITY. COUNTY shall have control over the means, methods, techniques, sequences, procedures, and results for performing and coordinating the services required by this Agreement. All terms of employment, including hours, wages, working conditions, discipline, hiring, and discharging or any other terms of employment shall be determined by COUNTY, and CITY shall have no right or authority over COUNTY’S employees or the terms of their employment with COUNTY. Neither COUNTY nor any third persons or subcontractors of COUNTY shall be entitled to workers’ compensation benefits from CITY if such persons sustain injury in the course of performing services under this Agreement.

Neither COUNTY nor any third persons or subcontractors of COUNTY shall be entitled to any other benefits payable to employees of CITY. CITY shall not be liable for any act or omission of any COUNTY officer or employee unless specifically provided elsewhere in this Agreement. CITY shall not be liable for the direct payment of any salaries, wages, compensation, or other benefits to any COUNTY employee performing services pursuant to this Agreement, or for compensation or indemnity to any COUNTY employee for injury or sickness arising out of his or her employment.

8. INDEMNIFICATION
A. CITY shall defend, indemnify and hold harmless COUNTY, its Board of Supervisors, officers, directors, agents, employees and volunteers from and against all demands, claims, actions, liabilities, losses, damages, and costs, including reasonable attorneys' fees, arising out of or resulting from the performance of the Agreement, caused in whole or in part by the negligent or intentional acts or omissions of CITY'S officers, directors, agents, employees, and volunteers.

B. COUNTY shall defend, indemnify, and hold harmless CITY, its officers, directors, agents, employees, and volunteers from and against all demands, claims, actions, liabilities, losses, damages and costs, including reasonable attorneys' fees, arising out of or resulting from the performance of the Agreement, caused in whole or in part by the negligent or intentional acts or omissions of COUNTY'S Board of Supervisors, officers, directors, agents, employees, or volunteers.

C. It is the intention of COUNTY and CITY that the provisions of this paragraph be interpreted to impose on each party responsibility to the other for the acts and omissions of their respective officers, directors, agents, employees, volunteers, and COUNTY'S Board of Supervisors.

D. The provisions of this indemnity shall survive the expiration or termination of this Agreement.

9. INSURANCE
Each party, at its sole cost and expense, shall carry insurance –or self-insure - its activities in connection with this Agreement, and obtain, keep in force and maintain, insurance or equivalent programs of self-insurance, for general liability, workers compensation, and business automobile liability adequate to cover its potential liabilities hereunder. Each party agrees to provide the other thirty (30) days' advance written notice of any cancellation, termination or lapse of any of the insurance or self-insurance coverages.

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10. SUBCONTRACTS, ASSIGNMENT
A. COUNTY may subcontract any of the services delivered under this Agreement as COUNTY deems appropriate in COUNTY’S sole discretion. COUNTY shall remain legally responsible for the performance of all contract terms including work performed by third parties under subcontracts.

B. This Agreement is not assignable by either party in whole or in part, without the prior written consent of the other party.

11. AMENDMENT AND WAIVER
Except as provided herein, no alteration, amendment, variation, or waiver of the terms of this Agreement shall be valid unless made in writing and signed by both parties. Waiver by either party of any default, breach or condition precedent shall not be construed as a waiver of any other default, breach or condition precedent, or any other right hereunder.

No interpretation of any provision of this Agreement shall be binding upon COUNTY unless agreed in writing by the Director and counsel for COUNTY.

12. SUCCESSORS
This Agreement shall bind the successors of COUNTY and CONSULTANT in the same manner as if they were expressly named.

13. TIME
Time is of the essence of this Agreement.

14. INTERPRETATION
This Agreement shall be deemed to have been prepared equally by both of the parties, and the Agreement and its individual provisions shall not be construed or interpreted more favorably for one party on the basis that the other party prepared it.

15. DIRECTOR
As used in this Agreement, "Director" shall mean the Director of COUNTY’S Department of Animal Care Services, or his/her designee.

16. DISPUTES
In the event of any dispute arising out of or relating to this Agreement, the parties shall attempt, in good faith, to promptly resolve the dispute mutually between themselves.

COUNTY shall not be required to continue providing services hereunder if CITY is more than 60 days delinquent (90 days after date of invoice) in making payments for invoiced services. If the dispute cannot be resolved within 15 calendar days of initiating negotiations or such other time period as may be mutually agreed to by the parties in writing, either party may pursue its available legal and equitable remedies, pursuant to the laws of the State of California. Nothing in this Agreement or provision shall constitute a waiver of any of the government claim filing requirements set forth in Title 1, Division 3.6, of the California Government Code or as otherwise set forth in local, state and federal law.

17. TERMINATION
A. This Agreement may be terminated by mutual written consent of the parties.

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B. Either party may terminate this Agreement without cause upon providing 30 days written notice to the other party. Notice shall be deemed served on the date of mailing.

C. Either party may terminate this Agreement for cause upon providing 14 days written notice to the other party stating the cause.

D. Either party may terminate or amend this Agreement immediately upon giving written notice to the other party:
1) If advised that funds are not available from external sources for this Agreement or any portion thereof, including if distribution of such funds is suspended or delayed;
2) If funds for the services and/or programs provided pursuant to this Agreement are not appropriated by the State;
3) If funds in either party’s yearly proposed and/or final budget are not appropriated for this Agreement or any portion thereof; or
4) If funds that were previously appropriated for this Agreement are reduced, eliminated, and/or re-allocated as a result of mid-year budget reductions.

E. The Director of COUNTY’S Department of Animal Care Services has authority to terminate this Agreement on behalf of COUNTY for any of the reasons authorized in this Paragraph 17.

18. AUDITS AND RECORDS
COUNTY shall maintain adequate financial records during the term of this Agreement to document its costs of providing services under this Agreement. Such records shall be made available for inspection and audit by CITY upon reasonable notice. Pursuant to State of California Government Code Section 8546.7, CITY and COUNTY records shall be subject to examination and audit by the State Auditor for a period of three years after final payment by CITY to COUNTY pursuant to this Agreement. CITY and COUNTY shall retain all records relating to the performance of this Agreement for this three-year period, except that records pertaining to any audit then in progress, or any claims or litigation, shall be retained beyond such three-year period until final resolution of such audit, claim or litigation.

19. PRIOR AGREEMENTS
This Agreement constitutes the entire contract between CITY and COUNTY regarding the subject matter of this Agreement. Any prior agreements, whether oral or written, between CITY and COUNTY regarding the subject matter of this Agreement are hereby terminated effective immediately upon full execution of this Agreement.

20. SEVERABILITY
If any term or condition of this Agreement or the application thereof to any person(s) or circumstance is held invalid or unenforceable, such invalidity or unenforceability shall not affect other terms, conditions, or applications which can be given effect without the invalid term, condition, or application; to this end the terms and conditions of this Agreement are declared severable.

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21. FORCE MAJEURE
Neither party shall be liable or responsible for delays or failures in performance resulting from events beyond the reasonable control of such party and without fault or negligence of such party. Such events shall include but not be limited to acts of God, strikes, lockouts, riots, acts of war, epidemics, acts of government, fire, power failures, nuclear accidents, earthquakes, unusually severe weather, acts of terrorism, or other disasters, whether or not similar to the foregoing, and acts or omissions or failure to cooperate of the other party or third parties (except as otherwise specifically provided herein).

22. SURVIVAL OF TERMS
All services performed and deliverables provided pursuant to this Agreement are subject to all of the terms, conditions, price discounts and rates set forth herein, notwithstanding the expiration of the initial term of this Agreement or any extension thereof. Further, the terms, conditions and warranties contained in this Agreement that by their sense and context are intended to survive the completion of the performance, cancellation or termination of this Agreement shall so survive.

23. AUTHORITY TO EXECUTE
Each person executing this Agreement represents and warrants that he or she is duly authorized and has legal authority to execute and deliver this Agreement for or on behalf of the parties to this Agreement. Each party represents and warrants to the other that the execution and delivery of the Agreement and the performance of such party's obligations hereunder have been duly authorized.

24. DUPLICATE COUNTERPARTS
This Agreement may be executed in duplicate counterparts. The Agreement shall be deemed executed when it has been signed by both parties.

Signatures scanned and transmitted electronically shall be deemed original signatures for purposes of this Agreement, with such scanned signatures having the same legal effect as original signatures. This Agreement may be executed through the use of an electronic signature and will be binding on each party as if it were physically executed.

25. AUTHORITY TO EXECUTE
Each person executing this Agreement represents and warrants that he or she is duly authorized and has legal authority to execute and deliver this Agreement for or on behalf of the parties to this Agreement. Each party represents and warrants to the other that the execution and delivery of the Agreement and the performance of such party's obligations hereunder have been duly authorized. (Signature Page Follows)
ITEM 10 Agenda Packet Page 86

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first written above.

COUNTY OF SACRAMENTO, a political
subdivision of the State of California
CITY OF CITRUS HEIGHTS, a general law
city
By: __________________________________
Annette Bedsworth, Director
Department of Animal Care Services
Date: ________________________________
By: __________________________________
Ashley J. Feeney, City Manager
Date: ________________________________
Agreement approved by the Board of
Supervisors with authority delegated to the
Director to sign.

Agenda Date: _________________________
Item Number: _________________________
Resolution Number: ____________________
Attest:

By: __________________________________
___________, City Clerk
Reviewed and Approved by County Counsel
By: __________________________________
Shilpa Girimaji, Deputy County Counsel
Date: ________________________________
Reviewed and Approved by City Attorney
By: __________________________________
______________, City Attorney
Date: ________________________________
Prepared by: _________________________________________
Annette Bedsworth, Director
Department of Animal Care Services
County of Sacramento
Phone 916-875-5051
ITEM 10 Agenda Packet Page 87
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: August 14, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
SUBJECT: Sunrise Boulevard Resurfacing Project
Award of Construction Contract
Summary and Recommendation
In an effort to further the City’s approved Three-Year Pavement Preservation Plan (PPP), and support economic reinvestment of our commercial corridors, City staff expedited plans to help address the degrading pavement conditions along a specified segment of Sunrise Boulevard; Madison Avenue to Greenback Lane, encompassing a significant portion of the Sunrise MarketPlace frontage.

On July 30, 2024, the City opened bids for the Sunrise Boulevard Resurfacing Project (Project) and after evaluating the bids, staff determined that VSS International, Inc. (VSS) submitted the lowest responsive and responsible bid.

Staff recommends the City Council adopt the following resolution:

1. Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with VSS International, Inc. for the Sunrise Boulevard Resurfacing Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) Under Section 15301.

City Council Strategic Goal/Objective
This item aligns with the following Citrus Heights City Council Strategic Objectives:

Goal: Maintain Public Infrastructure and Enhance All Modes of Transportation ITEM 11 Agenda Packet Page 88
Subject: Sunrise Boulevard Resurfacing Project
Date: Augst 14, 2024

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Fiscal Impact
VSS’s bid for the total Project is $1,680,325. This bid is based upon estimated quantities, which may vary due to actual field conditions. Ultimately, the Contractor is paid for actual work completed based upon the unit price bid, which may require the approval of a change order.

Change orders for amounts less than 15% of the total contract price shall require prior written approval of the City Manager. Change orders for amounts equal to or greater than 15% of the total contract price shall require prior written approval of the City Council.

This recommended action results in no fiscal impact to the approved Two-Year budget, nor the 2023/2024-2027/2028 Capital Improvement Program (CIP). The full funding for the project is outlined in the tables below:

Table No 1. – Estimated Project Costs
Project Component Estimated Cost
Recommended Contract Award – Base Bid Sunrise
Boulevard
$1,494,126.04
Recommended Additive Alternate – Macy Plaza Drive $186,198.96 15% Contingency $252,048.75
Construction Management, Inspections, Materials Testing $82,600.00 Total $2,014,973.75
Table No 2. – Project Funding
Source Fund Fund No. Amount
Senate Bill 1 (SB1) Road Maintenance and
Rehabilitation Account
206 $1,500,000
General Fund Capital Infrastructure 100 $514,973.75
Background and Analysis
This Project supports the City Council and Citrus Heights community’s priorities of addressing public infrastructure, with an emphasis on pavement conditions. Sunrise Boulevard is a major corridor through Citrus Heights, supporting commuter traffic and key retail centers. The City has invested in numerous projects along the Sunrise Boulevard corridor over the years, such as ADA, pedestrian, transit enhancements, and center median marquee signage, however, full road resurfacing along the Project area has not occurred since prior to the City’s incorporation.

Because all required concrete and ADA work has been completed, the Project impacts will be far less than a typical complete streets project.

In April 2024, staff began exploring options for addressing the deteriorating pavement along the project area, recognizing concerns ahead of the next storm season. Staff worked with consultants to explore options for resurfacing - full repaving versus chip or cape seal. Given that a majority of the roadway is in good condition and can support alternatives to more costly options, the project was ultimately bid as a 3-layer asphalt rubberized cape seal. Additionally, the project ITEM 11 Agenda Packet Page 89
Subject: Sunrise Boulevard Resurfacing Project
Date: Augst 14, 2024

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evaluated Macy Plaza Drive between Birdcage Street and Sunrise Boulevard and determined the segment would be a viable candidate for the 3-layer treatment as well, adding the street as additive alternate to the project. The project will also include addressing all existing public crosswalks by re-applying thermoplastic color treatments to increase visibility.

The complete bid results are shown in the following table:

Bidder Bid Total
VSS International, Inc. $1,680,325.00
B&M Builders, Inc. $2,056,677.10*
*Error in bid increased actual to $2,057,192.10
The engineer’s estimate for this project was $1,500,000.

Environmental Review
California Environmental Quality Act (CEQA): The Project is Categorically Exempt from review under CEQA pursuant to Section 15301, as the repair, maintenance or modification of existing facilities involve no or negligible expansion of use beyond that which currently exists.

Attachments

ITEM 11 Agenda Packet Page 90
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RESOLUTION NO. 2024- ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH VSS INTERNATIONAL, INC. FOR THE SUNRISE BOULEVARD RESURFACING

PROJECT (PROJECT) AND FINDING THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER SECTION 15301

WHEREAS, in December 2023, City Council adopted the Citrus Heights Three-Year Pavement Preservation Plan;
WHEREAS, in March 2024, City Council approved the 2024-2025 Strategic Plan, with a goal further emphasizing a focus on preserving and enhancing public infrastructure; WHEREAS, Sunrise Boulevard serves as a primary thoroughfare through Citrus Heights, serving retail and other vital services;
WHEREAS, it is necessary to invest in the commercial corridors to further support and enhance the economic vitality of Cirus Heights;
WHEREAS, in July 2024, staff advertised the Sunrise Boulevard Resurfacing Project; WHEREAS, bids for the project were received, opened and read aloud on July 30, 2024, and VSS International, Inc. was determined to be the lowest responsive, responsible bidder for the Project; and
WHEREAS, sufficient Senate Bill 1 (SB1) Road Maintenance and Rehabilitation Account (Fund 206) and General Fund Capital Infrastructure (Fund 100) funds are budgeted and available to fund the Project.

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby find as follows:

1. Finds the Sunrise Boulevard Resurfacing Project is Categorically Exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15301, as the repair, maintenance or modification of existing facilities involve no or negligible expansion of use beyond that which currently exists.

2. Awards the Sunrise Boulevard Resurfacing Project to VSS International, Inc. who is the lowest responsive and responsible bidder in the July 30, 2024, bid opening.

3. Authorize the City Manager to execute an agreement with VSS International, Inc. in the amount of $1,680,325 for the Sunrise Boulevard Resurfacing Project and that a copy of the Agreement is available and on file in the City Clerk’s office and is incorporated herein by reference and made a part of this Resolution.

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

ITEM 11 Agenda Packet Page 91

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 14th day of August 2024 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Bret Daniels, Mayor
ATTEST:

Amy Van, City Clerk
ITEM 11 Agenda Packet Page 92

Citrus Heights City Council MeetingsAugust 14, 2024

Citrus Heights City Council Meetings
August 14, 2024