Agenda packet, regular meeting, third session — Citrus Heights City Council Meetings, November 13, 2024

AGENDA
November 13, 2024

CITY OF CITRUS HEIGHTS CITY COUNCIL
6:00 PM REGULAR MEETING
City Hall Council Chambers
6360 Fountain Square Drive, Citrus Heights, CA
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.

November 13, 2024 City Council Agenda Packet
11-13-24 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

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

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Proclamation Of The City Of Citrus Heights Proclaiming November 2024 As “National Lung Cancer Awareness Month”

5. Proclamation Of The City Of Citrus Heights Recognizing November 11-15, 2024, As “National Police Records & Support Personnel Appreciation Week ”

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.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of October 23, 2024

7. SUBJECT: Modifications To The Residential Large Item Collection/Neighborhood Cleanup (NCU) Program
STAFF REPORT: R. Cave / M. Poole
RECOMMENDATION: Staff recommends the following:
a. Adopt Resolution No. 2024 - ___ A Resolution of the City Council of Citrus Heights, California, to Supersede Resolution 2006 - 89, Removing the Waiver of Penalties for Bulky Waste Materials Set Out More than 48 Hours Before Scheduled Collection Day and Affirming Department Authority to Update Program Guidelines; and
b. Adopt Resolution No. 2024 - ___ A Resolution of the City Council of Citrus Heights, California, Authorizing the City Manager to Execute an Amendment with Allied Waste Services of North America, LLC for the Residential Solid Waste and Recycling Services Contract

8. SUBJECT: Amendment No. 5 To Street Sweeping Services Agreement With Wells Sweeping, LLC
STAFF REPORT: R. Cave / M. Poole
RECOMMENDATION: Adopt Resolution 2024 - ___ A Resolution of the City Council of the City of Citrus Heights, California, Approving Amendment No. 5 to the Agreement with Wells Sweeping LLC for Street Sweeping Services

9. SUBJECT: On-Call Solid Waste Consulting Services – Project GS 2024 13 – Award Of Contract
STAFF REPORT: R. Cave / M. Poole
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 R3 Consulting Group, Inc. for On - Call Solid Waste Consulting Services

10. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Receive and file the Quarterly Treasurer ’s Report for the quarter ending September 30, 2024

PUBLIC HEARINGS

11. SUBJECT: Resolutions Approving The Measure A Sacramento Countywide Transportation Mitigation Fee Program Nexus Study And Amended Agreement On Operating Protocols
STAFF REPORT: R. Cave
RECOMMENDATION: Staff recommend the following:
a. Adopt Resolution No. 2024 - ___ A Resolution of the City Council of the City of Citrus Heights, California, Approving the 2024 Sacramento Countywide Transportation Mitigation Fee Program Nexus Study;
b. Adopt Resolution No. 2024 - ___ A Resolution of the City Council of the City of Citrus Heights, California, Approving the Amended Agreement on Operating Protocols for the Sacramento Countywide Transportation Mitigation Fee Program; and
c. Introduce by title only and waive first reading of Ordinance No. 2024 - ___ An Ordinance of the City Council of the City of Citrus Heights, California, Adding Article XXX to Chapter 18 of the Citrus Heights Code Relating to the Collection of Development Impact Fees for Measure A Transportation Improvements

DEPARTMENT REPORTS

12. SUBJECT: Community Engagement Projects Update
DEPARTMENT: Economic Development and Community Engagement a. Present options for community groups to adopt portions of the Arcade Cripple Creek Trail and Old Auburn Multi - Use Trail (Strategic Objective) b. Neighborhood Area Toolbox/Mailer (Strategic Objective) c. Unsung Hero Award/CARES Champion Program

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Documents:

AGENDA
November 13, 2024

CITY OF CITRUS HEIGHTS CITY COUNCIL
6:00 PM REGULAR MEETING
City Hall Council Chambers
6360 Fountain Square Drive, Citrus Heights, CA
HOW TO PARTICIPATE:

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

November 13, 2024 City Council Agenda Packet
11-13-24 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

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

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Proclamation Of The City Of Citrus Heights Proclaiming November 2024 As “National Lung Cancer Awareness Month”

5. Proclamation Of The City Of Citrus Heights Recognizing November 11-15, 2024, As “National Police Records & Support Personnel Appreciation Week ”

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.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of October 23, 2024

10. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Receive and file the Quarterly Treasurer ’s Report for the quarter ending September 30, 2024

PUBLIC HEARINGS

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Documents:

AGENDA
November 13, 2024

CITY OF CITRUS HEIGHTS CITY COUNCIL
6:00 PM REGULAR MEETING
City Hall Council Chambers
6360 Fountain Square Drive, Citrus Heights, CA
HOW TO PARTICIPATE:

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

November 13, 2024 City Council Agenda Packet
11-13-24 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

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

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Proclamation Of The City Of Citrus Heights Proclaiming November 2024 As “National Lung Cancer Awareness Month”

5. Proclamation Of The City Of Citrus Heights Recognizing November 11-15, 2024, As “National Police Records & Support Personnel Appreciation Week ”

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.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of October 23, 2024

10. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Receive and file the Quarterly Treasurer ’s Report for the quarter ending September 30, 2024

PUBLIC HEARINGS

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Documents:

AGENDA
November 13, 2024

CITY OF CITRUS HEIGHTS CITY COUNCIL
6:00 PM REGULAR MEETING
City Hall Council Chambers
6360 Fountain Square Drive, Citrus Heights, CA
HOW TO PARTICIPATE:

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

November 13, 2024 City Council Agenda Packet
11-13-24 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

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

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Proclamation Of The City Of Citrus Heights Proclaiming November 2024 As “National Lung Cancer Awareness Month”

5. Proclamation Of The City Of Citrus Heights Recognizing November 11-15, 2024, As “National Police Records & Support Personnel Appreciation Week ”

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.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of October 23, 2024

10. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Receive and file the Quarterly Treasurer ’s Report for the quarter ending September 30, 2024

PUBLIC HEARINGS

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Documents:

Printed on Recycled Paper
City Council meetings take place in
the City Hall Council Chambers.

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

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Regular Meeting of Wednesday, November 13, 2024
City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA Regular Meeting 6:00 p.m.

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.

November 8, 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, November 13, 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: Middleton, Schaefer, Lopez-Taff, Karpinski-Costa

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Proclamation of the City of Citrus Heights Proclaiming November 2024 as “National Lung Cancer Awareness Month”

5. Proclamation of the City of Citrus Heights Recognizing November 11-15, 2024, as “National Police Records & Support Personnel Appreciation Week”

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.

6. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of October 23, 2024

7. SUBJECT: Modifications to the Residential Large Item Collection/Neighborhood Cleanup (NCU) Program
STAFF REPORT: R. Cave / M. Poole
RECOMMENDATION: Staff recommends the following:

a. Adopt Resolution No. 2024-___ A Resolution of the City Council of Citrus Heights, California, to Supersede Resolution 2006-89, Removing the Waiver of Penalties for Bulky Waste Materials Set Out More than 48 Hours Before Scheduled Collection Day and Affirming Department Authority to Update Program Guidelines; and

b. Adopt Resolution No. 2024-___ A Resolution of the City Council of Citrus Heights, California, Authorizing the City Manager to Execute an Amendment with Allied Waste Services of North America, LLC for the Residential Solid Waste and Recycling Services Contract Agenda Packet Page 2
Citrus Heights City Council Wednesday, November 13, 2024 P
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8. SUBJECT: Amendment No. 5 to Street Sweeping Services Agreement with Wells Sweeping, LLC
STAFF REPORT: R. Cave / M. Poole
RECOMMENDATION: Adopt
Resolution 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving Amendment No. 5 to the Agreement with Wells Sweeping LLC for Street Sweeping Services

9. SUBJECT: On-Call Solid Waste Consulting Services – Project GS 2024 13 – Award of Contract STAFF REPORT: R. Cave / M. Poole
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 R3 Consulting Group, Inc. for On-Call Solid Waste Consulting Services

10. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Receive and file the Quarterly Treasurer’s Report for the quarter ending September 30, 2024

PUBLIC HEARINGS

11. SUBJECT: Resolutions Approving the Measure A Sacramento Countywide Transportation Mitigation Fee Program Nexus Study and Amended Agreement on Operating Protocols STAFF REPORT: R. Cave
RECOMMENDATION: Staff recommend the following:
a. A
dopt Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving the 2024 Sacramento Countywide Transportation Mitigation Fee Program Nexus Study;
b. A
dopt Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving the Amended Agreement on Operating Protocols for the Sacramento Countywide Transportation Mitigation Fee Program; and
c. I nt
roduce by title only and waive first reading of Ordinance No. 2024-___ An Ordinance of the City Council of the City of Citrus Heights, California, Adding Article XXX to Chapter 18 of the Citrus Heights Code Relating to the Collection of Development Impact Fees for Measure A Transportation Improvements
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Citrus Heights City Council Wednesday, November 13, 2024

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DEPARTMENT REPORTS

12. SUBJECT: Community Engagement Projects Update
DEPARTMENT: Economic Development and Community Engagement

a. Present options for community groups to adopt portions of the Arcade Cripple Creek Trail and Old Auburn Multi-Use Trail (Strategic Objective)

b. Neighborhood Area Toolbox/Mailer (Strategic Objective)

c. Unsung Hero Award/CARES Champion Program

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Agenda Packet Page 4
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CITY OF CITRUS HEIGHTS

CITY COUNCIL
Regular Meeting of Wednesday, October 23, 2024
City Hall Council Chambers
6360 Fountain Square Dr., Citrus Heights, CA

CALL REGULAR MEETING TO ORDER
The r
egular meeting was called to order at 6:01 p.m. by Mayor Karpinski-Costa.

1. The f
lag salute led by Council Member Middleton.

2. Roll Ca
ll: Council Members present: Middleton, Schaefer, Lopez-Taff, Karpinski-Costa Council Members absent: None
Staff Members present: Blomquist, Cave, Feeney, Jones, Kempenaar, Ma, Piva, Riddle, Van and department directors.

3. The v
ideo statement was read by City Clerk Van.

APPROVAL OF AGENDA
ACTION: On a motion by Council Member Schaefer, seconded by Vice Mayor Lopez-Taff, the City Council approved the agenda.

AYES:

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

PRESENTATIONS

4. Pr
oclamation of the City of Citrus Heights Recognizing October 2024 as “National Manufacturing Month”
Counc
il Member Schaefer read and presented the proclamation to Dean Peckham, Executive Director of the Sacramento Valley Manufacturing Alliance.

5. Pr
oclamation of the City of Citrus Heights Recognizing October 2024 as “National Disability Employment Awareness Month”
Vi
ce Mayor Lopez-Taff read and presented the proclamation to representatives from Pride Industries and Progressive Employment Concepts.

PUBLIC COMMENT
Dav
id Shelton said it is eleven weeks until New Years which is something he is concerned about because of bullets and illegal fireworks. He expressed concerns regarding the illegal use of fireworks in California and the need for additional enforcement.

Cy
nthia Roberts wished to clarify that the Lincoln Highway project was not a collaboration of a neighborhood group, the project was a creation of Andy Saunders’ love of history and desire to discover ITEM 6
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areas of historical significance within Citrus Heights. She stated Andy Saunders collaborated with Regina Cave and she helped bring this creation to life.

Melissa Hayden spoke on Trap Neuter and Release (TNR) of stray cats. She said she was contacted by the Police Commander to work inside Animal Control. She said it was a good experience and was able to look at the past animal control and the new animal control. She said she thinks we need a lot of help and there is disorder. She wants the City to know most importantly that the Animal Control Officers are devoted, enthusiastic, compassionate people and the City Manager and City Council do care about animal welfare and safety. She also works with the rescuers in the community. She said the most important thing is getting a TNR clinic in the city. She asked the City to consider a spay and neuter clinic as soon as possible.

Lisa Taylor, on behalf of the Purple Pageant and Young Teen Society, gave an update on the grant they received by the City. The orientation for the Young Teen Society program will be December 29 which will be a twelve step program teaching manners, etiquette, and life skills to young girls. They are working with business owners in Citrus Heights to help teach their classes. They are hosting a Boots and Bras fundraiser on October 26 and working with the Police Department to educate young girls on sex trafficking. They are trying to get girls involved in Kiwanis, Rotary, and other organizations. She thanked the City for their support of the Purple Pageant and youth in the community.

City Clerk Van read the following written public comment by Rick Hodgkins regarding Presentation Item 5, “On behalf of the millions and billions of people with disabilities in the United States, I would like to think Dr. Mayer Karpinsky Costa for taking me up on the offer of proclaiming October 2024 as national disability employment awareness month. I would like to remind the city council that we celebrate NDEAM during the month of October of every year. And I would like to also remind the city Council that we have two very important employment agencies, one of them which is based out of Citrus Heights. It is called progressive, employment concepts, and I can’t help with that. Wonder if you invited themto the meeting, because that while Goodwill industries, in alliance, Lincoln training center and pride, industries were all paying sub, minimum wages, progressive, employment concepts, never believed in paying people with developmental disabilities or any kind of disability sub, minimum wages. STEP agency, that where I receive services also believes in paying people with disabilities at or above the minimum wage. Once again, thank you for the proclamation, but I just thought I would remind everyone about progressive employment concepts on the web at progressive employment.org. Thank you.”

City Clerk Van read the following written public comment by Rick Hodgkins “As I was out yesterday, picking up pieces for a Halloween costume at spirit Halloween, and then picking up some small items at Walmart neighborhood market, the person I was with noticed that across the street at the sunrise mall that there was a carnival being set up. Are they here through Halloween?and if so, what are the hours and prices? Can someone please email me back more information? Thank you very much.”

City Clerk Van read the following written public comment by Rick Hodgkins regarding Consent Calendar Item 8, “I realize that this is on consent, but I wonder if this will include pedestrian safety, because as I pointed out, I would be crossing the street at antelope and sunrise or any other intersection here in citrus Heights and cars will block my path within the crosswalk. And so if this includes pedestrian safety along with safety for motorists, then I will support this!”

City Clerk Van read the following written public comment by Rick Hodgkins regarding Consent Calendar Item 10, “This is definitely worth supporting, not only for IT, but also for facilities, because you never ITEM 6
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know what the homeless are up to if they might vandalize the outside of facilities. So short and sweet, I support it.”

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

Council Member Middleton presented a proclamation to Grand Master Clint Robinson at Family Taekwondo at their public safety demonstration event. She attended the League of California Cities Annual Conference.

Council Member Schaefer attended a Sacramento Regional Transit board meeting. He attended the League of California Cities Annual Conference. He attended the Howl-O-Ween Parade. He attended a Sacramento Area Council of Governments meeting. He attended a Capital Corridor Joint Powers Authority meeting. He had a meeting with Greater Sacramento Economic Council.

Vice Mayor Lopez-Taff attended the League of California Cities Annual Conference.

Mayor Karpinski-Costa went to a Sacramento Transportation Authority meeting. She attended a San Juan Education Foundation fundraiser event. She held Mondays with the Mayor. She provided an update from the Sacramento-Yolo Mosquito & Vector Control District meeting. She attended the League of California Cities Annual Conference and announced the City received the Helen Putnam Award for Excellence for the Beautification Crew and Cares Campaign program. She attended the Howl-O-Ween Parade. She announced County Supervisor Sue Frost is hosting a Community Meeting on November 4 at 6:00 p.m.

CONSENT CALENDAR

6. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of October 9, 2024

7. SUBJECT: Police Department Emergency Communications Center Remodel - Agreements STAFF REPORT: R. Cave / C. Cotrell
RECOMMENDATION: Staff recommends the following:

a. Adopt Resolution No. 2024-097 A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Amendment No. 1 with Vanir for Emergency Communications Center Remodel Project Management; and

b. Adopt Resolution No. 2024-098 A Resolution of the City County of the City of Citrus Heights California, Authorizing the City Manager to Execute an Agreement with COAR Design Group for Architectural and Engineering Design and Project Support Services for the Police Department Emergency Communications Center Remodel

8. SUBJECT: Office of Traffic Safety (OTS) DUI / STEP Grant STAFF REPORT: A. Turcotte / M. Wells / S. Gualco
RECOMMENDATION: Adopt Resolution No. 2024-099 A Resolution of the City Council of the City of Citrus Heights, California, Approving an Agreement and Accepting Project Funding for Grant PT25152 with the California Office of Traffic Safety (OTS) and Authorizing the City Manager (or Designee) to Execute the Agreement
ITEM 6
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9. Pulled for discussion

10. SUBJECT: Capital Replacement Fund – Expenditure Plan 2024/2025 STAFF REPORT: S. Talwar / R. Cave
RECOMMENDATION: Adopt Resolution No. 2024-100 A Resolution of the City Council of the City of Citrus Heights, California, Approving the Fiscal Year 2024/2025 Capital Replacement Fund Expenditure Plan

11. SUBJECT: Authorize City Manager to Execute a Purchase Agreement with Dell Technologies for the Replacement of City Computers and Associated Equipment STAFF REPORT: S. Talwar / R. Miller
RECOMMENDATION: Adopt Resolution No. 2024-101 A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Purchase Agreement with Dell Technologies for the Replacement of the City’s Computers and Related Equipment

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Middleton, the City Council adopted Consent Calendar Items 6, 7, 8, 10, and 11.

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

CONSENT CALENDAR ITEMS PULLED FOR DISCUSSION

9. SUBJECT: Letter of Support to Governor Newsom Regarding Illegal Fireworks STAFF REPORT: A. Van
RECOMMENDATION: Consider the request for a letter of support addressed to Governor Gavin Newsom regarding the illicit importation of illegal fireworks from Nevada to California

Council Member Schaefer pulled Item 9 for discussion.

Dennis Revell stated illegal fireworks pose a significant problem for this state and in large part due to the availability of fireworks immediately across the Nevada border. He hopes this initiative with the Governor’s support will result in the California Attorney General and State Fire Marshall communicating with Nevada counterparts to form a joint illegal fireworks task force and eventually getting Nevada and California legislature to approve an interstate compact that would impact California residents’ ability to buy illegal fireworks and bring them back into California.

ACTION: On a motion by Council Member Schaefer, seconded by Vice Mayor Lopez-Taff, the City Council approved sending a letter of support addressed to Governor Gavin Newsom regarding the illicit importation of illegal fireworks from Nevada to California.

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

ITEM 6
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PUBLIC HEARINGS

12. SUBJECT: Review Final 2025 Draft Annual Action Plan and Funding Recommendations and 2025-2029 Draft Consolidated Plan for the Community Development Block Grant Program STAFF REPORT: C. Kempenaar / N. Piva
RECOMMENDATION: Staff recommend the following:

a. Hear public testimony on the Draft 2025 Annual Action Plan and Funding Recommendations and 2025-2029 Consolidated Plan for the Community Development Block Grant Program; and

b. Adopt Resolution 2024-102 A Resolution of the City Council of the City of Citrus Heights, California, Approving the Community Development Block Grant 2025 Annual Action Plan and 2025-2029 Consolidated Plan and Authorizing the City Manager or Designee to Execute and File All Documents Required to Receive U.S. Department of Housing and Urban Development Community Development Block Grant Funding

Housing and Human Services Program Coordinator Piva stated this is the second public hearing for the item as required by the U.S. Department of Housing and Urban Development (HUD) to approve the 2025-2029 Consolidated Plan and 2025 Annual Action Plan. She presented the funding recommendations as follows:

Organization Amount Requested 2024
CDBG
Quality of Life Committee
Funding Recommendation
Campus Life Connection 25,000 20,000
Meals on Wheels b ACC 16,000 16,000
Community Link Capital Region
& Project Sentinel
24,272 24,272
Sunrise Christian Food Ministry 35,800 29,728
Jake’s Journey Home 50,000 -
Total $121,072 $90,000

2025 Capital Project – Pavement Preservation Improvement Plan Estimated 2025 CDBG Capital Funds 390,000
Reallocate 2024 Residential Street Resurfacing Project funds 381,394 Total $771,394

Critical Home Repair Program
Revolving Loan Funds 89,309
Unexpended Prior Year Funds 11,336
Total $200,645

Mayor Karpinski-Costa opened the public hearing.

Public Comment

ITEM 6
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City Clerk Van read the following written public commented submitted by Rick Hodgkins, “I am once again restating my support for this, as it will allow us to continue the great work we have been doing for our fair city! I don’t know if I can reiterate what I said before, but once again, I support this, because that while our population is aging, you also have people from my generation, the Gen X generation and younger generations who are starting to take over, that what are they? Next generations are the same family or singlehead of households. Thank you.”

Mayor Karpinski-Costa closed the public hearing.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Middleton, the City Council Adopt Resolution 2024-102 A Resolution of the City Council of the City of Citrus Heights, California, Approving the Community Development Block Grant 2025 Annual Action Plan and 2025-2029 Consolidated Plan and Authorizing the City Manager or Designee to Execute and File All Documents Required to Receive U.S. Department of Housing and Urban Development Community Development Block Grant Funding.

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

13. SUBJECT: Resolutions Approving the Measure A Sacramento Countywide Transportation Mitigation Fee Program Nexus Study and Amended Agreement on Operating Protocols STAFF REPORT: R. Cave
RECOMMENDATION: Staff recommend the following:

a. Adopt Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving the 2024 Sacramento Countywide Transportation Mitigation Fee Program Nexus Study;

b. Adopt Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving the Amended Agreement on Operating Protocols for the Sacramento Countywide Transportation Mitigation Fee Program; and

c. Introduce by title only and waive first reading of Ordinance No. 2024-___ An Ordinance of the City Council of the City of Citrus Heights, California, Adding Article XXX to Chapter 18 of the Citrus Heights Code Relating to the Collection of Development Impact Fees for Measure A Transportation Improvements

General Services Director Cave stated this item is an adoption of an updated Nexus Study for an existing program. She stated the Sacramento Transportation Authority (STA) administers the Measure A half cent sales tax imposed on Sacramento County. With the prior renewal of Measure A came an ordinance that included the Sacramento County Transportation Mitigation Fee Program (SCTMFP) for development impact fees on new developments throughout the county. The STA board approved the updated Nexus Study in June 2024 and subsequently updated the Operating Protocols Agreement. She gave an overview of how the City has used these funds for past programs and projects.

Mayor Karpinski-Costa opened the public hearing.

ITEM 6
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Public Comment

City Clerk Van read the following written public commented submitted by Rick Hodgkins, “At the last meeting or that was at the previous meeting before that, you recall, I mentioned that the Sacramento county Board of supervisors just last year in March talked about way finding for pedestrians and I hope that this county wide transportation study takes that into consideration. Also, I can’t help but wonder if regional transit and Sacramento transportation authorityare also involved. Are they? Thank you.”

City Council questions and comments followed.

General Services Director Cave and City Attorney Jones responded to questions.

Council Member Schaefer requested more time to review the item and suggested continuing the item to a future meeting.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Middleton, the City Council continued the public hearing to the November 13, 2024 City Council meeting.

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

REGULAR CALENDAR

14. SUBJECT: Memorandum of Understanding – Citrus Heights Veterans Memorial Project STAFF REPORT: A. Feeney
RECOMMENDATION: Adopt Resolution No. 2024-103 A Resolution of the City Council of the City of Citrus Heights, California, to Enter a Memorandum of Understanding (“MOU”), Between Citrus Heights Veterans Memorial Project, a 501(c)(3) Veterans Organization (“CHVMP”), Catholic Funeral & Cemetery Services of the Diocese of Sacramento, Inc. (“CFCS”), and the City of Citrus Heights, a Municipal Corporation (“Citrus Heights”) for the Purpose of Constructing a Veterans Memorial

City Manager Feeney recollected Paul Reyes’ request and vision for a History and Arts Grant to bring the Wall that Heals to Citrus Heights in Spring 2023, which the City Council granted and was widely attended by the community. In March 2024, City Council adopted a strategic objective to explore partnerships to support opportunities to bring a permanent Vietnam Veterans Memorial into the city. After considerable location analysis and memorial installation approaches, Calvary Cemetery supported the idea and potential partnership resulting in the formation of a project Board and Committee and a Memorandum of Understanding for Council consideration.

Paul Reyes, Citrus Heights Veterans Memorial Project (CHVMP) board member, requested a History & Arts grant as seed money to get the project construction started. He stated the building of the structure will draw people from all over from the state, bringing tourism and schools to teach all grade levels about what his generation went through, how they were treated and how they responded, and hopefully the military will never be looked at or treated in that manner ever again. He stated all of these are positive and will only enhance the community and veteran community. He stated years from now when we are all ITEM 6
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gone, that structure will still be here honoring those individuals and reminding people of what true American heroes are all about.

Kermit Schayltz, CHVMP Board and Project Committee member, thanked the City and community partners for supporting the project. He gave a personal account of people he served with and received military service medals.

Scott Miller, Catholic Funeral & Cemetery Services of the Diocese of Sacramento, CHVMP Board and Committee Chair, echoed that this is a passion project. Some people had personal experience in Vietnam, have friends on the Wall, have a desire to honor veterans, future generations and ensuring that situations such as what occurred in Vietnam and the treatment of veterans in general at that time does not occur again and that we learn from our history, and have a desire to have a memorial of this magnitude in the city. Everyone is emotionally invested and every member of the Board and Committee has committed to making financial contributions to the project. He presented a visual of the project location at Calvary Cemetery. He stated the replica wall would be the first of its kind in the Western United States. The wall would be a 75-80% scaled and engraved replica with ample space for future expansion and grave space for veterans and their families who wish to be laid to rest in the vicinity. He highlighted the various partners and donors making the project happen. He gave an overview of the project timeline, hoping for a final construction permit by April 30, 2025. Fundraising for the project has started and construction will begin when fundraising is complete, estimating $3.5 million. He requested the City Council to approve the MOU and the History & Arts grant application, and consider referrals of other organizations or individuals that would be supportive of the project for financial support. More information is available at https://chvmp.org.

Public Comment

Bob Churchill, accompanied by members of the Rotary Club of Citrus Heights, said the Rotary Club has been putting money aside until the right project came along and this is it.

Bill Van Duker said that Rotary through the years has supported many projects and don’t seek recognition and often do not get it. He said he has been nagging Rotary for decades about a signature project and he proudly endorses this project and asks for the City’s support. He said he believes this will bring Citrus Heights out of the shadows and make it a destination city for people not only in the region, but throughout California.

City Council comments followed.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Middleton, the City Council adopt Resolution No. 2024-103 A Resolution of the City Council of the City of Citrus Heights, California, to Enter a Memorandum of Understanding (“MOU”), Between Citrus Heights Veterans Memorial Project, a 501(c)(3) Veterans Organization (“CHVMP”), Catholic Funeral & Cemetery Services of the Diocese of Sacramento, Inc. (“CFCS”), and the City of Citrus Heights, a Municipal Corporation (“Citrus Heights”) for the Purpose of Constructing a Veterans Memorial.

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

ITEM 6
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Citrus Heights City Council Wednesday, October 23, 2024

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15. SUBJECT: History and Arts Grant - Citrus Heights Veterans Memorial Project STAFF REPORT: C. Riddle
RECOMMENDATION: Adopt Resolution 2024-104 A Resolution of the City of Citrus Heights, California, Approving the History and Arts Grant Program Award to the Citrus Heights Veterans Memorial Project

Management Analyst II Riddle introduced the item as a History & Arts grant request of $20,000 of funding to do architectural drawings and engineering work to bring the Vietnam Memorial Wall to the city. The Quality of Life Committee recommendation is $10,000 now and the remaining $10,000 at the end of FY 2024-25 should funding be available due to concerns that approving the total request could leave inadequate funds in the budget to support additional requests from the public. Staff recommends the City Council approve the full $20,000.

City Council questions and comments followed.

Mayor Karpinski-Costa suggested awarding the entire $20,000 request to CHVMP, having $10,000 allocated from the History & Arts Grant program and $10,000 allocated from the Economic Development and Community Engagement Department grants program.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Middleton, the City Council adopt Resolution 2024-104 A Resolution of the City of Citrus Heights, California, Approving the History and Arts Grant Program Award to the Citrus Heights Veterans Memorial Project, as amended.

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

The City Council took a five-minute recess.

16. SUBJECT: Private Lighting Program - Update
STAFF REPORT: R. Cave / L. Blomquist / M. Ma
RECOMMENDATION: Receive staff presentation and provide feedback and direction on private lighting program options

City Engineer Blomquist introduced the item. She stated the City regularly receives requests for residential streetlighting. There are many neighborhoods throughout the city that were built prior to incorporation without streetlighting infrastructure and the City’s existing streetlighting district which pays for the operation and maintenance of our existing system is currently underfunded. Earlier this year, Council established an objective to create a program that provides a selection of lamp post options to support private streetlighting to improve public safety and community identity. Review of lighting options included cost, performance, community impact, and how it may enhance public safety. She briefed the evaluation criteria. She stated solar options would be ideal for areas that don’t have existing electrical infrastructure, and wired options are ideal for areas that do have existing infrastructure and they provide consistent power delivery.

Engineering Technician Ma discussed the pros and cons of solar and wired lamp post options. He presented the cost comparison of options, including installation cost, maintenance cost, and lifespan.

City Engineer Blomquist requested the City Council provide feedback and direction on next steps.

ITEM 6
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Citrus Heights City Council Wednesday, October 23, 2024

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City Council questions and comments followed.

City Engineer Blomquist, City Attorney Jones, and Engineering Technician Ma responded to questions.

The City Council expressed support of the program and provided feedback to staff, and requested staff provide an update on the program at a future meeting.

17. SUBJECT: Housing Rehabilitation Program Update
STAFF REPORT: C. Kempenaar / N. Piva
RECCOMENDATION: Consider a staff update on the City’s Housing Rehabilitation Program and provide direction on using CalHome Reuse funds to assist owner-occupied low-income households with health and safety home repairs

Community Development Director Kempenaar introduced the item aligning with the Council’s strategic objective to provide an update on the Housing Rehabilitation Program and seek direction on CalHome Reuse funds.

Housing and Human Services Coordinator Piva provided an overview of the Housing Repair Program which is responsible for administering and monitoring the City’s local, federal, and state Housing and Community Development funds. Since 2000, the City has issued 315 loans and/or grants to eligible homeowners. The goal of the program is to reduce accumulated deferred maintenance, enhance the safety and security of occupants, improve minor structure defects or damages, and improve energy efficiency. The program includes single family repair loans, critical home repair grants, and accessibility grants. The City received CalHome funds on several occasions which were used on housing repair or downpayments. As a result of paid off loans, the City has reconciled the CalHome Reuse account at $673,003 which the City recommends using to assist low-income single-family households in accordance with CalHome guidelines. City staff continues to review and respond to grant opportunities that benefit housing repair programs.

City Council questions and comments followed.

Community Development Director Kempenaar and Housing and Human Services Coordinator Piva responded to questions.

By majority consensus, the City Council supported staff’s recommendation to use CalHome Reuse funds to assist owner-occupied low-income households with health and safety home repairs.

DEPARTMENT REPORTS

18. SUBJECT: Community Engagement Projects Update
DEPARTMENT: Economic Development and Community Engagement

a. Present options for community groups to adopt portions of the Arcade Cripple Creek Trail and Old Auburn Multi-Use Trail (Strategic Objective)

b. Neighborhood Area Toolbox/mailer (Strategic Objective)

ITEM 6
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c. Unsung Hero Award/ CARES Champion Program

The City Council continued Item 18 to the November 13, 2024 City Council meeting.

CITY MANAGER ITEMS

City Manager Feeney announced the City was honored with a Helen Putnam Award for Excellence for the Beautification Crew and Cares Campaign program. He also announced the Economic Development and Community Engagement Department received four awards by the Public Relations Society of America, Capital Chapter. He highlighted the Fall Chip in Day volunteer event held on October 12. He announced the Citrus Heights Police Activities League (PAL) Trunk or Treat event on October 24 at 5:00 p.m. He provided an update on the San Juan Complete Streets project. He announced the City will have a ballot drop box at City Hall and a Vote Center at the Citrus Heights Community Center for the November 5 Presidential Election.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

Council Member Schaefer requested the City Council consider a sign ordinance for temporary signs. The request was supported by Mayor Karpinski-Costa.

ADJOURNMENT

Mayor Karpinski-Costa adjourned the meeting at 9:13 p.m.

Respectfully submitted,

__________________________
Amy Van, City Clerk

ITEM 6
Agenda Packet Page 15

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: N
ovember 13, 2024
TO: Ma
yor and City Council Members
Ashley J. Feeney, City Manager
FRO
M: Regina Cave, General Services Director
Mary Poole, Operations Manager
SUBJ
ECT: Modifications to the Residential Large Item Collection/Neighborhood Cleanup (NCU) Program
Summary and Recommendation
Bas
ed on direction from the April 2024 City Council strategic planning process, staff evaluated the City’s current Residential Large Item Collection/Neighborhood Cleanup (NCU) Program to develop recommendations to help address associated blight issues. Staff provided an update at the August 28, 2024 City Council meeting and received direction to come back with a resolution to remove the waiver of enforcement for materials set out prior to the 48-hour program guidelines and to authorize an amendment with Allied Waste Services of North America, LLC (Republic Services) to provide for response to violations of the 48-hour requirement and further allow for penalties to be assessed to the customer of record for early set out of bulky item materials.

Sta
ff recommends the City Council adopt the following:
1) Res
olution No. 2024-___, A Resolution of the City Council of Citrus Heights, California, to Supersede Resolution 2006-89, Removing the Waiver of Penalties for Bulky Waste Materials Set Out More than 48 Hours Before Scheduled Collection Day and Affirming General Services Director Authority to Update Program Guidelines; and 2) Res
olution No. 2024-____. A Resolution of the City Council of Citrus Heights, California, Authorizing the City Manager to Execute an Amendment with Allied Waste Services of North America, LLC for the Residential Solid Waste and Recycling Services Contract
City Council Strategic Goal/Objective
This
item aligns with the following City Council Three Year Strategic Plan Objectives:

ITEM 7
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Goal: Enhance Community Vibrancy
Objective: Present to City Council recommended modifications to the Neighborhood Clean Up (NCU) Program to address associated blight issues

Fiscal Impact

There is no impact to the FY 24-25 General Fund budget. This recommended amendment will be cost neutral. Costs associated with education and outreach to inform residents of program changes will be covered separately utilizing funds budgeted within the Solid Waste fund.

Background and Analysis

The residential Large Item Collection/Neighborhood Clean Up (NCU) program is currently structured to allow residential customers of Republic Services to place up to ten cubic yards of material at the curb in front of their homes for collection three times per year. Residents receive this service every four months, after being notified seven days in advance of their collection date via a door hanger. Once residents receive the door hanger, they are currently allowed to put materials at the curb but are encouraged not to do so more than 48 hours in advance of the scheduled service day. Many residents begin putting materials out as soon as they receive the door hanger and continue to put material out until the collection day.

The NCU program has come under increased scrutiny over the past several years due to ongoing blight and other challenges resulting from various aspects of the NCU structure. At the March 2024 Strategic Planning Retreat, City Council established a strategic objective for staff to present recommended modifications to the NCU program to specifically address associated blight issues.

Staff evaluated issues associated with having the program on a scheduled circuit every four months with the leeway to set out items seven days in advance of collection day to determine if improvements could be made to the existing program. In addition, staff looked at whether the program could be restructured to an on-call program similar to bulky waste collection services provided in neighboring jurisdictions. Some of the issues evaluated are discussed below.

Scavenging is extensive. This often results in materials being scattered about, bags ripped open, glass broken, and residents frustrated that they are continuously cleaning up piles up until the pickup day. At the same time, scavenging is sometimes considered a benefit as items that can be reused or repurposed have the potential to find a new home, which helps in diverting materials to the landfill. Unfortunately, there is also the negative consequence of materials being used to outfit illegal camps on public and private properties throughout the City and beyond. In the latter instances, discarded items are being cleaned up a second time by staff from the City, parks, schools, churches, library, as well as businesses and private property owners, often along with a great deal of other garbage that also accumulates.

Illegal dumping is common. The amount of time that material is on the street in any one neighborhood, during nearly every week of the year makes it relatively easy to illegally dump debris on a street. Because Citrus Heights is located adjacent to Placer County jurisdictions, where some cities do not have bulky item collection programs, it is likely that a portion of the ITEM 7
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illegal dumping comes from outside Sacramento County. Because it is fairly easy to predict where a scheduled cleanup will be, and the fact that that many illegal dumps may go unnoticed due to piles being staged throughout a neighborhood area, illegal dumping may become an attractive option for those seeking to avoid a trip to the dump and the fees charged at Sacramento County and Placer County dump facilities.

While the blight associated with bulky material piles being out for up to a week at a time is a driving force leading to the push for change, there are other issues that support modifying the current program. Street sweeping schedule conflicts and holiday parking impacts during NCU weeks are some of the most prominent. Both these issues will be mitigated to some degree with the proposed amendment.

Street sweeping is coordinated to ensure it does not conflict with garbage service as much as possible. However, with piles on the streets of entire neighborhoods for up to a week at a time, conflicts invariably result. This makes it harder for the street sweeping contractor to stay on schedule. The proposed amendment will reduce the potential for street sweeping conflicts from five days to two days. Holiday impacts for neighborhoods are also reduced with piles allowed for a smaller window of time. In addition, the amendment includes language to avoid scheduling NCU dates for two days after holidays whenever possible.

While there are many reasons the NCU program is ready for refinement, there are also benefits to the current scheduled approach. People generally know when cleanups are coming and can plan tree trimming, seasonal yard work and cleaning, and minor home improvement projects around those months. Some residents feel that the scheduled NCUs motivate them to de-clutter and clean up their properties because the NCU is going to happen and they want to take advantage of it.

Staff met with the City Council’s Quality of Life Subcommittee on August 15, 2024, to review recommendations and obtain input. In addition to general feedback provided on a potential move to an on-call program, the Subcommittee recommended a Flash Vote be utilized to obtain additional citizen feedback. The Flash Vote survey was issued and used to inform the August 28, 2024 NCU Update to the City Council. Responses from the Flash Vote indicated that 90% of respondents use the NCU service and the vast majority are strongly supportive of the program and want it to stay.

The most common Flash Vote and general citizen recommendations for improvement include enforcement of the existing 48-hour advance set out requirements and to encourage reporting of early set outs using reporting tools such as SeeClickFix. With this input, staff recommended that the current NCU program structure of scheduled collection every four months be maintained but that the current leeway to set out materials up to seven days prior to the scheduled collection date be removed. Staff is also prepared to implement an extensive education and outreach campaign to ensure residents are fully aware of program changes.

The proposed amendment provides direction for Republic Services to include identification of early pile set outs as part of its regular NCU program management and to impose existing ITEM 7
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“Improper Large Item Collection” fees for piles placed out for collection in violation of the 48- hour set out limits.

The Amendment further provides that for the first 4-month cycle of NCU in 2025, Republic Services will proactively identify large items that have been placed out prior to the 48-hour limit and provide education to the service recipient and the account holder, if different than the service recipient. After the first cycle of NCU service in 2025, Republic Services will have the ability to issue the “Improper Large Item Collection” penalties. Staff and Republic Services will roll out a robust outreach campaign for the entirety of calendar year 2025 that will include but is not limited to: direct mail; social media; revised doorhangers; online and print newspaper ads; along with the annual customer service guide calendar, city events and neighborhood area meetings.

After 2025, education and outreach about the NCU requirement will continue to be provided as part of the City’s existing solid waste outreach and education efforts.

Attachments

1) Resolution No. 2024-___, A Resolution of the City Council of Citrus Heights, California, to Supersede Resolution 2006-89, Removing the Waiver of Penalties for Bulky Waste Materials Set Out More than 48 Hours Before Scheduled Collection Day and Affirming General Services Director Authority to Update Program Guidelines

2) Resolution No 2024-___, A Resolution of the City Council of Citrus Heights, California, Authorizing the City Manager to Execute an Amendment with Allied Waste Services of North America, LLC for the Residential Solid Waste and Recycling Services Contract ITEM 7
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RESOLTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF CITRUS HEIGHTS, CALIFORNIA, TO SUPERSEDE RESOLUTION 2006-89, REMOVING THE WAIVER OF PENALTIES FOR BULKY WASTE MATERIALS SET OUT MORE THAN 48 HOURS BEFORE SCHEDULED

COLLECTION DAY AND AFFIRMING GENERAL SERVICES DIRECTOR AUTHORITY

TO UPDATE PROGRAM GUIDELINES

WHEREAS, the City entered into the 2021 Amended and Restated Residential Solid Waste and Recycling Collection Services Contract (Contract) on October 28, 2021;

WHEREAS, the Contract sets forth requirements for implementation of the City’s Large Item/Neighborhood Cleanup (NCU) Program;

WHEREAS, the City Council set forth a specific objective as part of the April 2024 City Strategic Plan for staff to propose modifications in the NCU program to mitigate blight issues;

WHEREAS, proposed recommendations include updating the Program Guidelines to enforce the existing limit of time allowed for materials to be set out in advance of collection day to 48 hours;

WHEREAS, the Program Guidelines may periodically need to be modified and updated by the General Services Director to support safe and efficient operations and administration of the NCU Program; and

WHEREAS, violations of the Program Guidelines may result in penalties imposed by the City’s franchised residential collection services provider.

NOW THEREFORE BE IT RESOLVED that Resolution 2006-89 is hereby rescinded and the NCU Program Guidelines are updated to remove the leeway to set out material in advance of the 48 hours allowed in advance of the scheduled NCU collection date;

BE IT FURTHER RESOLVED that violations of the NCU Program Guidelines may result in penalties imposed upon the account of the customer of record related to the service address where the NCU Program violations occur; and

BE IT FURTHER RESOLVED that the General Services Director is authorized to modify and update the NCU Program Guidelines as needed to support safe and efficient operations and administration of the NCU Program.

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 13 th day of November, 2024, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

ITEM 7
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Dr. Jayna Karpinski-Costa, Mayor

ATTEST:

Amy Van, City Clerk

ITEM 7
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RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF CITRUS HEIGHTS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AMENDMENT WITH ALLIED WASTE SERVICES OF NORTH AMERICA,

LLC FOR THE RESIDENTIAL SOLID WASTE AND RECYCLING SERVICES

CONTRACT

WHEREAS, the City entered into the 2021 Amended and Restated Residential Solid Waste and Recycling Collection Services Contract (Contract) with Allied Waste Services of North America, LLC (Republic Services) on October 28, 2021;

WHEREAS, the Contract sets forth requirements for implementation of the City’s Large Item/Neighborhood Cleanup (NCU) Program;

WHEREAS, the NCU program’s current structure that allows NCU material to be set out for seven days in advance of collection day has resulted in ongoing blight issues and other challenges throughout the City;

WHEREAS, the City Council set forth a specific objective as part of the April 2024 City Strategic Plan for staff to propose modifications in the NCU program to mitigate blight issues;

WHEREAS, proposed recommendations include removal of the leeway for residents to set materials out prior to the 48-hours in advance of the scheduled collection service date written on the notices provided by Republic Services;

WHEREAS, proposed recommendations further included education, outreach and the ability for Republic Services to issue penalties for “Improper Large Item Collection” for violations of the program requirements; and

WHEREAS, the City Council has determined that it is in the best interest of the City to Amend the Agreement to incorporate the proposed changes.

NOW THEREFORE BE IT RESOLVED that the City Manager is hereby authorized to finalize and execute an Amendment to the Contract with Allied Waste Services of Northern California, LLC., on behalf of the City, provided that the Amendment is consistent with the terms discussed and approved by the City Council.

BE IT FURTHER RESOLVED that the City Manager is further authorized to execute any related documents and take any other actions necessary to effectuate the Amendment, consistent with the intent of this resolution.

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 13 th day of November, 2024, by the following vote, to wit:

AYES: Council Members:

ITEM 7
Agenda Packet Page 22
NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Dr. Jayna Karpinski Costa, Mayor

ATTEST:

Amy Van, City Clerk

ITEM 7
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: November 13, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Regina Cave, General Services Director
Mary Poole, Operations Manager
SU
BJECT: Amendment No. 5 to Street Sweeping Services Agreement with Wells Sweeping, LLC
Summary and Recommendation
Staff recommends the City Council adopt Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving Amendment No. 5 to the Agreement with Wells Sweeping, LLC for Street Sweeping Services.

The
Amendment is intended to extend the term of the current Agreement with Wells Sweeping, LLC through December 31, 2027, to allow existing service to continue without interruption or major changes as the City moves into a formal procurement process for residential garbage and recycling services. The garbage and recycling services procurement process is expected to take at least 18 months, and is intended to include street sweeping in its proposed scope of services.

City Council Strategic Goal/Objective
This item aligns with the Citrus Heights City Council Strategic Plan 3-Year Goals to “Maintain Public Infrastructure and Enhance All Modes of Transportation” – and to “Maintain & Enhance Fiscal Stability”.

Fiscal Impact
The proposed 3-year amendment includes an initial rate of $43.98 per curb mile, which includes a one-time adjustment of $1.50 per curb mile in January 2025 to recognize increased labor, materials and operating costs. In addition, a not to exceed 3% CPI increase is factored in for calendar years 2026 and 2027. Funding sources include Stormwater, Solid Waste and Measure A Maintenance funds. The 3-year cost estimate is $1,537,729, however the cost will vary based on actual curb miles swept.

ITEM 8
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The proposed costs per fiscal year are as follows:

Fiscal Year Term Total
24-25 January 2025 – June 2025 $ 231,863
25-26 July 2025 – June 2026 $ 504,458
26-27 July 2026 – June 2027 $ 519,591
27-28 July 2027 – December 2027 $ 281,817
3-YEAR TOTAL $1,537,729

Background and Analysis
Street sweeping is an important part of the City’s Stormwater Pollution Prevention Plan (SWPPP) and general roadside maintenance program. In addition to preventing debris from gutters and roadsides from entering storm drains and into creeks and waterways, street sweeping also helps to keep bike lanes clean and safe for bicyclists and pedestrians.

There are approximately 510 residential/collector curb miles and 300 arterial curb miles that are swept each month. A curb mile is one mile of a street from the face of the curb extending out into the street, the width of the street sweeper. For arterial streets, the “curb” portion of the street includes medians and turn pockets that have raised curbs separating lanes and/or traffic directions. During storm season (November, December & January), residential/collector streets are swept twice per month. Additional sweeps may also be performed on arterials when storm events dictate.

The current agreement with Wells Sweeping expires on December 31, 2024. Staff is recommending a three-year extension of the current agreement to align with the upcoming residential garbage and recycling collection service procurement process as well as to be in sync with fleet electrification/zero-emission vehicle purchasing requirements mandated by the California Air Resources Board (CARB).

Street sweeping is proposed to be incorporated into the scope of services of the next residential garbage and recycling collection service franchise agreement, which expires December 31, 2027.

The procurement process is expected to begin in calendar year 2025 and is expected to take between 18 to 24 months, depending on whether a new service provider is selected. In the event street sweeping is not included in the final scope of services for the garbage and recycling collection services agreement, the collection services procurement outcome will still inform a separate street sweeping service procurement to ensure improved coordination between the two services. Should street sweeping end up not being included in the garbage and recycling service agreement, it will be the subject of a separate Request for Proposals and there will not be any additional amendments to extend of the current agreement.

Regardless of how the next street sweeping procurement proceeds, impacts from the transition to zero-emission vehicles required by CARB will be included, applicable to street sweeping vehicle purchases starting in January 2027. The proposed amendment avoids incurring vehicle replacement costs through the end of 2028 as the contractor will continue to utilize its existing fleet, which includes two air sweepers and one broom sweeper purchased between 2020 and 2022.

ITEM 8
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The proposed Amendment allows the City to maintain service continuity with the current vendor who has demonstrated consistent commitment and responsiveness, being willing to work with City staff to respond to immediate needs, and being flexible to provide make up days when conflicts with construction projects and/or the Neighborhood Cleanup Program arise. The current vendor has a strong track record of responding well within the required time frame for on-call response, frequently responding within the hour. The current vendor has also made significant investments in its fleet, GPS technology, and staff training over the past several years to further enhance service provision for the community.

The proposed contract Amendment includes a one-time adjustment of $1.50 per curb mile to address increased operational, maintenance costs. A maximum three percent CPI increase is also included for calendar years 2026 and 2027.

Attachments
1) Resolution 2024-____, a Resolution of the City Council of the City of Citrus Heights, California, Approving Amendment No. 5 to the Agreement with Wells Sweeping, LLC for Street Sweeping Services

ITEM 8
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RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, APPROVING AMENDMENT NO. 5 TO THE AGREEMENT WITH WELLS

SWEEPING, LLC FOR STREET SWEEPING SERVICES

WHEREAS, the City and Wells Sweeping, LLC (“Contractor”) entered into an agreement on February 23, 2005, (“Agreement”) by which Wells Sweeping, LLC agreed to provide the city with streets sweeping services through 2009;

WHEREAS, in April 2009, Amendment No. 1 to the Agreement was executed to extend the original Agreement through December 2014, and to adjust the compensation to non-prevailing wage rates;

WHEREAS, on December 11, 2014, Amendment No. 2 was executed to extend the contract term for an additional 10 years through December 2024;

WHEREAS, on April 1, 2022, Amendment No. 3 was executed to increase curb mile rates and include an annual CPI adjustment to recognize significant investments by Contractor in new sweeper trucks and GPS tracking equipment along with increased fuel costs;

WHEREAS, on June 27, 2024, Amendment No. 4 was executed to adjust curb mile pricing to include prevailing wage rates, effective June 1, 2024 through the end of the existing contract term; and

WHEREAS, Amendment No. 5 will extend the term through December 31, 2027 to align with the garbage and recycling collection service procurement process as well as align with the transition to zero emission vehicles mandated by the California Air Resources Board (CARB).

NOW, THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby approve Amendment No. 5 to the Street Sweeping Service Agreement and the City Manager is authorized to execute the Amendment.

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 13 th day of November, 2024 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Dr. Jayna Karpinski Costa, Mayor
ATTEST:

Amy Van, City Clerk
ITEM 8
Agenda Packet Page 27
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: November 13, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Regina Cave, General Services Director
Mary Poole, Operations Manager
SU
BJECT: On-Call Solid Waste Consulting Services – Project GS 2024 13 Award of Contract
Summary and Recommendation
On September 17, 2024, the General Services Department (GSD) circulated a Request for Proposals (RFP) for On-Call Solid Waste Consulting Services. One proposal was received and evaluated based on criteria specified in the RFP and R3 Consulting Group, Inc. was selected as the preferred consultant for the On-Call Solid Waste Consulting Services.

Sta
ff recommends the City Council adopt the following resolution:

1. Re
solution No. 2024-____, a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with R3 Consulting Group, Inc. for On-Call Solid Waste Consulting Services.

City Council Strategic Goal/Objective
This item aligns with the Citrus Heights City Council Strategic Plan Objective to “Maintain and Enhance Fiscal Stability” and “Enhance Community Vibrancy and Engagement” Fiscal Impact
The total contract cost over the initial three-year term, as well as the two optional one-year extensions, is $305,000. However, the consultant will be paid on actual services rendered, which will vary throughout the term of the agreement. The on-call services will be funded with a combination of Solid Waste funds, CalRecycle grant funds, and other non-City funds that may become available, depending on the particular services provided.

The initial contract term will be for three years with the option of two one-year extensions.

ITEM 9
Agenda Packet Page 28
Subject: On-Call Solid Waste Consulting Services – Award of Contract Date: November 13, 2024

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Background and Analysis
The City has a need for ongoing professional consulting services support related to waste management functions within GSD, particularly related to California’s Short-Lived Climate Pollutant Reduction Strategy (SB 1383) and other unfunded mandates. GSD will be initiating a formal procurement process for the residential garbage and recycling collection services franchise plans to employ the professional expertise of the consultant to assist throughout the approximately 18-month process.

On September 17, 2024, staff released an RFP for On-Call Solid Waste Consulting Services.

Proposals were due October 17, 2024 and one proposal from R3 Consulting Group, Inc. was received. After reviewing the proposal in accordance with the criteria described in the RFP, including compensation schedule, financial stability, experience, and qualifications, staff recommends entering into a multi-year on-call contract with R3 Consulting Group for Solid Waste Consulting Services.

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 R3 Consulting Group, Inc. for On-Call Solid Waste Consulting Services.

ITEM 9
Agenda Packet Page 29
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RESOLUTION NO. 2024- ___

A RESOLUTION OF THE CITY COUNCIL OF TH E CI TY OF CITRUS HEIGHTS, CAL

IFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE
AN AGREEMENT WITH R3 CONSULTING GROUP, INC.

FOR ON
-CALL SOLID WASTE CONSULTING SERVICES
WHEREAS, the City has a need for ongoing professional consulting services support related to waste management functions within the City;
WHEREAS, an on call consulting services agreement allows the City to provide professional solid waste consulting services to augment current staffing levels as needed; WHEREAS, on September 17, 2024, the City circulated a request for proposals for on call solid waste consulting services;
WH
EREAS, proposals were due October 17, 2024, and one proposal was received; WH
EREAS, in accordance with procedures for selection of the most qualified contractor, staff found R3 Consulting Group, Inc. to be a qualified contractor to perform this work; WH
EREAS, the City desires to enter into an on call professional consulting services agreement with R3 Consulting Group, Inc.;
WH
EREAS, the initial contract term is three years with the option of two one -year extensions; and
WH
EREAS, funding sources for the agreement include solid waste residential and commercial franchise fees, CalRecycle grant funds, and other non-City funds that may become available based on the particular services provided.

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

1. Aut
horize the City Manager to execute an agreement with R3 Consulting Group, Inc. for on call solid waste consulting services in a form approved by the City Attorney.

2. Aut
horize the City Manager, or a designee, to execute any extensions and/or non- substantive amendments to this contract consistent with the City Manager’s general signing authority.

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

PAS
SED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 13th day of November, 2024 by the following vote, to wit:

AYES
: Council Members:

NOES: Council Members:

ITEM 9
Agenda Packet Page 30

ABSTAIN: Council Members:

ABSENT: Council Members:

Dr. Jayna Karpinski Costa, Mayor

ATTEST:

Amy Van, City Clerk

ITEM 9
Agenda Packet Page 31
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM

DATE: November 13, 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 September 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.

Fiscal Impact

There is no fiscal impact associated with this action. The attached report is for informational purposes on the effects of current market conditions on the City’s investment portfolio.

Background and Analysis

The market value of cash and investments for all City funds on September 30, 2024, was $62,758,089, down from $68,084,169 on June 30, 2024. The decrease is mainly due to large payments related to construction projects and to activities related to the beginning of the fiscal year, including payment of the City’s workers’ compensation and general liability insurance premiums.

Significant deposits for the FY 2024/25 first quarter (July through September 2024) included:

Sales Tax $3,450,029
Sacramento Regional Transit – Transit Support Fund Allocation $783,861 CalTrans Grant Reimbursements – Auburn Blvd, Arcade Creek, etc. $712,592

ITEM 10
Agenda Packet Page 32
Subject: Quarterly Treasurer’s Report
Date: November 13, 2024

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The breakdown of the City’s investment portfolio and current rate of return is as follows:

As of 09/30/2024
Description Par Value Cost Basis Fair Value
Avg.

Rate of
Return
% of
Total
Portfolio
US Bank – General Account $1,878,838 $1,878,838 $1,878,838 0.00% 2.98% Local Agency Investment Funds (LAIF) $40,212,296 $40,212,296 $40,295,177 4.58% 63.97% California Asset Management Program (CAMP) $10,131,354 $10,131,354 $10,131,354 5.38% 16.08% Investment Accounts $10,535,601 $10,572,348 10,686,167 4.51% 16.96% Total Portfolio $62,758,089 $62,794,836 $62,991,536 4.56%

A portion of the City’s investments are under management by Chandler Asset Management (Investment Manager) as of March 2023. For more information regarding the City’s investments under management, 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 fair 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) and the California Asset Management Program (CAMP). LAIF is a money market fund administered by the State Treasurer that has many governmental agency participants and holds securities through its own administrator.

In July 2024, the City joined the California Asset Management Program (CAMP). CAMP is a California Joint Powers Authority (JPA), a government agency that was established in 1989 to provide public agencies in California with professional investment services and options. CAMP is governed by a Board of Trustees comprised of experienced local government finance directors and treasurers. The City has invested funds in the CAMP Pool, a stable net asset value investment rated AAAm by S&P Global. The CAMP Pool offers same-day liquidity similar to LAIF. Investments in the CAMP Pool are permitted under California Government Code Section 53601(p) and the City’s Investment Policy.

The value of fixed-income securities may fluctuate with changes in interest rates. As interest rates go up, the fair 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 gain for this reporting period is $196,700. 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 ITEM 10
Agenda Packet Page 33
Subject: Quarterly Treasurer’s Report
Date: November 13, 2024

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

Pooled cash and investment 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 CAMP Pool complies with requirements outlined by GASB Statement No. 79, which allow the City to record its investment at amortized cost instead of fair value. The attached investment schedules meet all applicable GASB 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 the total funds used by end of September 2024 were $10.4 million. As of September 30, 2024, an uncommitted amount of $2.6 million will need to be obligated and reported to the US Treasury by December 2024. Funds need to be expended by December 31, 2026.

At the August 14, 2024, City Council meeting, Council approved the allocation of the remaining funds towards general government services and critical projects. The remaining balance of uncommitted funds will be allocated pursuant to the Council action from August 14 th. This will
be reflected on the December 31, 2024 Treasurer’s Report in accordance with the US Treasury guidelines. General government services and critical projects include but are not limited to 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; and general government services such as rehire public safety to pre-pandemic levels.

ITEM 10
Agenda Packet Page 34
Subject: Quarterly Treasurer’s Report
Date: November 13, 2024

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Attachments

1. Chandler Asset Management Portfolio Summary, Statement of Compliance, and Holdings Report
Amount received from US Treasury in May 2021 & 2022 15,676,972$ Completed Projects Actual
Small Business COVID Recovery Grant 281,111$
Bl
ock Party Trailer - Economic Development+ 26,942$
Patriotic Event+ 68,438$
Community Projects Grant Program+ 72,400$
In Process Projects Commited
Actual thru
9/30/24
Remaining
balance
Cares Commuinity Pride and Cleanliness Campaign+ 47,000$ 38 ,607$ 8,393$ Business Attraction Incentive Program**+ 100,000$ 58,138$ 41,862$ Sound Wall Beautification+ 155,000$ 102,201$ 52,799$ Proposed Grant Strategy+ 60,000$ 55,000$ 5,000$ Police Fleet Vehicles & Equipment 1,800,000$ 1,645,899$ 154,101$ Beautification Crew Pilot Program + 875,000$ 389,617$ 485,383$ Public Safety Communications Center Critical Needs 600,000$ 212,552$ 387,448$ I.T. Critical, Major Projects; Execute Contract Tyler Technologies+ 1,198,350$ 859,499$ 338,851$ Public Safety Positions to PrePandemic Levels 7,749,590$ 6,606,095$ 1,143,495$ General Government Services & Critical Projects (Preliminary) 2,643,141$ -$ 2,643,141$ Committed funds 15,676,972$
Spent 10,416,499$
Remaining Committed 5,260,473$
Current Balance -$ Funds to allocate/reallocate + City Council Strategic Objective
** dependent on program subscription
American Rescue Plan Act
ITEM 10
Agenda Packet Page 35
ITEM 10
Agenda Packet Page 36

STATEMENT OF COMPLIANCE
City of Citrus Heights | Account #11026 | As of September 30, 2024 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES (CMOS)
Max % (MV) 100.0 8.4 Compliant
Max % Issuer (MV) 30.0 8.4 Compliant
Max Maturity (Years) 5.0 4.7 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 11.6 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 1.1 Compliant
Max Maturity (Days) 270 80 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 26.5 Compliant
Max % Issuer (MV) 5.0 2.3 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
16 ITEM 10
Agenda Packet Page 37

STATEMENT OF COMPLIANCE
City of Citrus Heights | Account #11026 | As of September 30, 2024 Rules Name Limit Actual Compliance
Status Notes

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

FEDERAL AGENCIES
Max % (MV) 100.0 22.2 Compliant
Max % Issuer (MV) 30.0 12.6 Compliant
Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 4 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 0.6 Compliant
Max % Issuer (MV) 20.0 0.6 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
17 ITEM 10
Agenda Packet Page 38

STATEMENT OF COMPLIANCE
City of Citrus Heights | Account #11026 | As of September 30, 2024 Rules Name Limit Actual Compliance
Status Notes
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
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 29.5 Compliant
Max Maturity (Years) 5 4 Compliant
18 ITEM 10
Agenda Packet Page 39

HOLDINGS REPORT
City of Citrus Heights | Account #11026 | As of September 30, 2024 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 04/04/2023

5.14%
49,995.12
49,996.97
100.11

4.47%
50,055.06
101.78

0.47%

58.09 NA/AAA
AAA

2.54 0.73
36269WAD1 GMALT 2024-2 A3 5.39
07/20/2027 40,000.00 05/07/2024

5.85%
39,997.68
39,997.96
101.83

4.31%
40,731.99

65.88 0.38%
734.03
NA/AAA
AAA

2.80 1.59
47800CAC0 JDOT 2023 A3 5.01 11/15/2027 100,000.00 04/17/2023

4.63%
101,019.53
100,606.23
100.69

4.46%
100,685.90
222.67

0.94%

79.67 Aaa/NA
AAA

3.13 1.14
58770JAD6 MBALT 2024-A A3 5.32
01/18/2028 25,000.00 05/17/2024

5.73%
24,997.08
24,997.37
102.19

4.33%
25,548.16

59.11 0.24%
550.79
Aaa/NA
AAA

3.30 2.06
891941AD8 TAOT 2023-B A3 4.71 02/15/2028 200,000.00 10/03/2023

5.68%
196,039.06
196,948.59
100.52

4.34%
201,033.84
418.67

1.88%
4,085.25
Aaa/NA
AAA

3.38 1.23
362583AD8 GMCAR 2023-2 A3 4.47
02/16/2028 35,000.00 04/04/2023

4.51%
34,999.04
34,999.34
100.13

4.38%
35,047.11

65.19 0.33%

47.77 Aaa/AAA
NA

3.38 1.05
05522RDF2 BACCT 2022-2 A 5.0 04/17/2028 100,000.00 04/18/2023

4.59%
101,093.75
100,532.46
100.76

4.34%
100,761.16
222.22

0.94%
228.70
Aaa/AAA
NA

3.55 1.07
47787CAC7 JDOT 2023-C A3 5.48 05/15/2028 100,000.00 09/12/2023

5.40%
99,993.13
99,994.66
101.66

4.46%
101,660.01
243.56

0.95%
1,665.35
Aaa/NA
AAA

3.62 1.52
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 150,000.00 12/07/2023

5.10%
152,244.13
151,768.13
102.32

4.18%
153,485.30
236.25

1.44%
1,717.16
Aaa/NA
AAA

3.73 1.47
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 110,000.00 09/07/2023

5.17%
109,969.51
109,975.89
102.17

4.04%
112,387.48
252.27

1.05%
2,411.60
NR/AAA
AAA

3.96 1.82
02582JKD1 AMXCA 2023-3 A 5.23 09/15/2028 175,000.00 09/12/2023

5.29%
174,992.18
174,993.80
102.30

4.04%
179,024.97
406.78

1.68%
4,031.16
NA/AAA
AAA

3.96 1.82
448973AD9 HART 2024-A A3 4.99 02/15/2029 40,000.00 03/11/2024

5.05%
39,991.18
39,992.14
101.69

4.14%
40,676.00

88.71 0.38%
683.86
NA/AAA
AAA

4.38 1.85
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 45,000.00 06/04/2024

5.24%
44,993.17
44,993.61
102.19

4.05%
45,986.52

38.85 0.43%
992.91
Aaa/AAA
NA

4.41 1.84
05522RDJ4 BACCT 2024-1 A 4.93 03/15/2029 55,000.00 06/06/2024

4.93%
54,996.91
54,997.11
102.32

4.03%
56,276.57
120.51

0.53%
1,279.46
Aaa/AAA
NA

4.45 2.41
Total ABS 1,225,000.00 5.19%
1,225,321.47
1,224,794.25
101.51

4.24%
1,243,360.06
2,542.43

11.64%
18,565.81
Aaa/AAA
AAA

3.64 1.50
AGENCY
28 ITEM 10
Agenda Packet Page 40

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3130AWER7 FEDERAL HOME LOAN BANKS

4.625 06/06/2025 200,000.00 06/09/2023

4.67%
199,834.00
199,943.22
100.37

4.06%
200,739.76
2,954.86

1.88%
796.55
Aaa/AA+
AA+

0.68 0.66
3133EPW68 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.125 01/22/2026 200,000.00 01/24/2024

4.40%
198,980.00
199,330.27
100.34

3.85%
200,679.82
1,581.25

1.88%
1,349.55
Aaa/AA+
AA+

1.31 1.25
3133EPCR4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 03/09/2026 375,000.00 --

3.99%
382,886.25
378,821.60
101.34

3.78%
380,041.86
1,088.54

3.56%
1,220.26
Aaa/AA+
AA+

1.44 1.38
3133EPHH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.0 04/28/2026 200,000.00 05/15/2023

3.85%
200,814.00
200,433.43
100.20

3.87%
200,398.28
3,400.00

1.88%
(35.15)
Aaa/AA+
AA+

1.57 1.49
3133EPNG6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.375 06/23/2026 250,000.00 06/22/2023

4.43%
249,630.00
249,787.32
101.21

3.64%
253,020.54
2,977.43

2.37%
3,233.23
Aaa/AA+
AA+

1.73 1.64
3130AXU63 FEDERAL HOME LOAN BANKS

4.625 11/17/2026 200,000.00 12/18/2023

4.23%
202,130.00
201,555.46
102.01

3.63%
204,027.81
3,443.06

1.91%
2,472.35
Aaa/AA+
AA+

2.13 1.98
3130AXQL5 FEDERAL HOME LOAN BANKS

4.875 12/11/2026 200,000.00 02/05/2024

4.29%
203,068.00
202,365.22
102.48

3.68%
204,964.47
2,979.17

1.92%
2,599.25
Aaa/AA+
AA+

2.20 2.04
3130AVBC5 FEDERAL HOME LOAN BANKS 4.5
03/12/2027 200,000.00 04/04/2024

4.53%
199,826.00
199,855.08
102.08

3.61%
204,150.94
475.00

1.91%
4,295.86
Aaa/AA+
AA+

2.45 2.30
3133EP6K6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 03/26/2027 100,000.00 03/25/2024

4.45%
100,145.00
100,119.97
101.93

3.68%
101,928.15

62.50 0.95%
1,808.18
Aaa/AA+
AA+

2.48 2.34
3130ATUS4 FEDERAL HOME LOAN BANKS 4.25
12/10/2027 200,000.00 05/15/2023

3.66%
204,924.00
203,437.06
101.97

3.59%
203,944.50
2,620.83

1.91%
507.44
Aaa/AA+
AA+

3.19 2.93
3133ERDH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 04/30/2029 200,000.00 05/22/2024

4.50%
202,184.00
202,025.32
104.80

3.60%
209,598.56
3,984.72

1.96%
7,573.24
Aaa/AA+
AA+

4.58 4.03
Total Agency 2,325,000.00 4.25%
2,344,421.25
2,337,673.96
101.67

3.73%
2,363,494.70
25,567.36

22.12%
25,820.74
Aaa/AA+
AA+

2.09 1.94

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

4.53%
144,544.92
146,548.06

98.82 3.92%
148,225.88
428.75

1.39%
1,677.82
Aaa/AA+
AAA

2.32 2.06
3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 100,000.00 06/08/2023

4.34%
95,808.59
97,129.86

98.16 3.88%
98,158.10
270.33

0.92%
1,028.24
Aaa/AA+
AA+

2.90 2.66
3137FBU79 FHMS K-069 A2 3.187 09/25/2027 149,473.42 06/09/2023

4.41%
142,478.53
144,636.05

97.89 3.92%
146,317.75
396.98

1.37%
1,681.71
Aaa/AAA
AA+

2.99 2.70
29 ITEM 10
Agenda Packet Page 41

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FETN0 FHMS K-073 A2 3.35 01/25/2028 75,000.00 05/24/2023

4.27%
72,082.03
72,934.63

98.31 3.87%
73,732.64
209.38

0.69%
798.01
Aaa/AA+
AAA

3.32 2.99
3137FG6X8 FHMS K-077 A2 3.85 05/25/2028 100,000.00 05/24/2023

4.24%
98,164.06
98,664.40

99.59 3.93%
99,585.13
320.83

0.93%
920.73
Aaa/AA+
AAA

3.65 3.28
3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 100,000.00 06/05/2024

4.70%
96,203.12
96,474.16

99.26 3.93%
99,257.73
314.25

0.93%
2,783.57
Aaa/AAA
AA+

4.24 3.76
3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 150,000.00 09/24/2024

3.79%
140,970.70
140,993.90

93.32 3.97%
139,973.70
282.50

1.31%
(1,020.20)
Aaa/AA+
AAA

4.32 3.95
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 100,000.00 09/19/2024

3.82%
96,476.56
96,491.24

96.00 3.94%
95,996.33
248.50

0.90%
(494.91)
Aaa/AA+
AAA

4.65 4.11
Total Agency CMBS 924,473.42 4.27%
886,728.51
893,872.28

97.53 3.92%
901,247.25
2,471.52

8.43%
7,374.97
Aaa/AA+
AAA

3.49 3.14
CASH
CCYUSD Receivable 331.53 --

0.00%
331.53
331.53

1.00 0.00%
331.53

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 331.53 0.00%
331.53
331.53

1.00 0.00%
331.53

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00

COMMERCIAL
PAPER
89233GMK9 Toyota Motor Credit Corporation
12/19/2024 125,000.00 04/08/2024

5.37%
120,395.83
123,573.61

98.96 4.78%
123,703.63

0.00 1.16%
130.01
P-1/A-1+
F1

0.22 0.21
Total Commercial
Paper 125,000.00 5.37%
120,395.83
123,573.61

98.96 4.78%
123,703.63

0.00 1.16%
130.01
P-1/A-1+
F1

0.22 0.21

CORPORATE
89236TKF1 TOYOTA MOTOR CREDIT CORP

3.65 08/18/2025 125,000.00 06/12/2023

4.94%
121,710.00
123,673.25

99.58 4.14%
124,470.80
544.97

1.16%
797.55
A1/A+
A+

0.88 0.85
24422EWP0 JOHN DEERE CAPITAL CORP 4.8
01/09/2026 35,000.00 03/17/2023

4.45%
35,322.35
35,146.24
100.92

4.05%
35,321.98
382.67

0.33%
175.74
A1/A
A+

1.28 1.21
78016FZT4 ROYAL BANK OF CANADA 4.875
01/12/2026 150,000.00 06/28/2023

5.25%
148,672.50
149,329.81
100.96

4.09%
151,441.44
1,604.69

1.42%
2,111.63
A1/A
AA-

1.28 1.22
30 ITEM 10
Agenda Packet Page 42

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
756109BQ6 REALTY INCOME CORP 5.05
01/13/2026 100,000.00 06/12/2023

5.49%
98,941.00
99,473.87
100.01

5.03%
100,013.24
1,094.17

0.94%
539.38
A3/A-
NA

1.29 0.03
037833BY5 APPLE INC 3.25 02/23/2026 125,000.00 03/23/2023

4.10%
122,103.75
123,611.76

99.11 3.91%
123,892.03
428.82

1.16%
280.27
Aaa/AA+
NA

1.40 1.34
00440EAV9 CHUBB INA HOLDINGS LLC 3.35
05/03/2026 125,000.00 10/19/2023

5.85%
117,758.75
120,457.55

98.82 4.12%
123,528.82
1,721.53

1.16%
3,071.28
A3/A
A

1.59 1.51
14913UAA8 CATERPILLAR FINANCIAL SERVICES
CORP 4.35 05/15/2026 100,000.00 06/12/2023

4.71%
99,031.00
99,462.78
100.58

3.97%
100,583.19
1,643.33

0.94%
1,120.41
A2/A
A+

1.62 1.53
341081GR2 FLORIDA POWER & LIGHT CO 4.45
05/15/2026 125,000.00 05/18/2023

4.65%
124,325.00
124,633.68
100.74

3.97%
125,920.41
2,101.39

1.18%
1,286.73
A1/A
A+

1.62 1.45
24422EWX3 JOHN DEERE CAPITAL CORP 4.75
06/08/2026 100,000.00 06/05/2023

4.72%
100,094.00
100,052.75
101.40

3.88%
101,404.51
1,490.97

0.95%
1,351.76
A1/A
A+

1.69 1.59
69371RS56 PACCAR FINANCIAL CORP 5.05
08/10/2026 75,000.00 08/03/2023

5.07%
74,962.50
74,976.80
102.07

3.88%
76,550.28
536.56

0.72%
1,573.47
A1/A+
NA

1.86 1.75
74340XBK6 PROLOGIS LP 3.25 10/01/2026 125,000.00 01/16/2024

4.53%
120,963.74
122,014.72

98.46 4.06%
123,073.79
2,031.25

1.15%
1,059.07
A3/A
WR

2.00 1.91
26442CAS3 DUKE ENERGY CAROLINAS LLC

2.95 12/01/2026 100,000.00 04/10/2023

4.43%
95,073.00
97,067.53

97.88 3.98%
97,884.26
983.33

0.92%
816.73
Aa3/A
WR

2.17 2.05
06051GLE7 BANK OF AMERICA CORP 5.08
01/20/2027 100,000.00 --

5.60%
98,714.80
99,374.58
100.81

5.15%
100,812.86
1,001.89

0.94%
1,438.28
A1/A-
AA-

2.31 1.24
17275RBQ4 CISCO SYSTEMS INC 4.8
02/26/2027 120,000.00 --

4.98%
119,441.00
119,529.57
102.19

3.84%
122,626.15
560.00

1.15%
3,096.58
A1/AA-
NA

2.41 2.17
857477CL5 STATE STREET CORP 4.993
03/18/2027 120,000.00 03/13/2024

4.99%
120,000.00
120,000.00
102.36

3.98%
122,837.09
216.36

1.15%
2,837.09
A1/A
AA-

2.46 2.23
89115A2W1 TORONTO-DOMINION BANK 4.98
04/05/2027 90,000.00 03/26/2024

4.98%
90,000.00
90,000.00
102.04

4.12%
91,831.67
2,191.20

0.86%
1,831.67
A1/A
AA-

2.51 2.29
06406RBQ9 BANK OF NEW YORK MELLON
CORP 4.947 04/26/2027 110,000.00 --

5.13%
109,476.40
109,712.04
100.97

4.90%
111,064.82
2,342.95

1.04%
1,352.78
A1/A
AA-

2.57 1.47
74456QBS4 PUBLIC SERVICE ELECTRIC AND
GAS CO 3.0 05/15/2027 75,000.00 04/18/2023

4.48%
70,921.50
72,376.15

97.47 4.03%
73,101.39
850.00

0.68%
725.24
A1/A
WR

2.62 2.46
91324PEG3 UNITEDHEALTH GROUP INC 3.7
05/15/2027 100,000.00 03/23/2023

4.28%
97,802.00
98,608.42

99.53 3.89%
99,530.00
1,397.78

0.93%
921.57
A2/A+
A

2.62 2.44
22160KAM7 COSTCO WHOLESALE CORP 3.0
05/18/2027 40,000.00 03/17/2023

4.28%
38,067.20
38,779.75

98.30 3.68%
39,319.55
443.33

0.37%
539.80
Aa3/A+
WR

2.63 2.48
31 ITEM 10
Agenda Packet Page 43

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
437076DB5 HOME DEPOT INC 4.875
06/25/2027 135,000.00 06/20/2024

4.92%
134,821.80
134,837.75
102.60

3.86%
138,507.14
1,755.00

1.30%
3,669.39
A2/A
A

2.73 2.44
09290DAH4 BLACKROCK FUNDING INC 4.6
07/26/2027 125,000.00 07/18/2024

4.57%
125,107.50
125,100.74
101.94

3.86%
127,431.05
1,038.19

1.19%
2,330.31
Aa3/AA-
NA

2.82 2.53
532457CP1 ELI LILLY AND CO 4.15 08/14/2027 70,000.00 08/12/2024

4.18%
69,943.30
69,945.79
100.93

3.80%
70,653.84
379.26

0.66%
708.06
A1/A+
NA

2.87 2.60
06368LAQ9 BANK OF MONTREAL 4.7
09/14/2027 125,000.00 11/14/2023

5.56%
121,346.25
122,182.59
101.73

4.07%
127,166.43
277.43

1.19%
4,983.84
A2/A-
AA-

2.96 2.66
46647PEA0 JPMORGAN CHASE & CO 5.04
01/23/2028 75,000.00 01/17/2024

4.99%
75,109.50
75,084.32
101.67

4.78%
76,254.47
714.00

0.71%
1,170.14
A1/A-
AA-

3.31 2.15
713448FX1 PEPSICO INC 4.5 07/17/2029 125,000.00 07/16/2024

4.52%
124,872.50
124,877.81
103.07

3.79%
128,832.27
1,156.25

1.21%
3,954.46
A1/A+
NA

4.79 4.19
171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 120,000.00 08/22/2024

4.31%
121,780.80
121,741.94
102.32

4.12%
122,787.72
945.50

1.15%
1,045.78
A3/A
A

4.87 4.24
Total Corporate 2,815,000.00 4.85%
2,776,362.14
2,792,052.16
100.80

4.11%
2,836,841.19
29,832.83

26.55%
44,789.03
A1/A
A+

2.35 2.02

MONEY MARKET
FUND
31846V203 FIRST AMER:GVT OBLG Y 61,928.42 --

4.54%
61,928.42
61,928.42

1.00 4.54%
61,928.42

0.00 0.58%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 61,928.42 4.54%
61,928.42
61,928.42

1.00 4.54%
61,928.42

0.00 0.58%

0.00 Aaa/AAAm
AAA

0.00 0.00

US TREASURY
91282CGN5 UNITED STATES TREASURY 4.625
02/28/2025 250,000.00 04/12/2023

4.07%
252,460.94
250,537.32
100.07

4.43%
250,175.78
990.16

2.34%
(361.54)
Aaa/AA+
AA+

0.41 0.41
91282CGX3 UNITED STATES TREASURY 3.875
04/30/2025 250,000.00 06/08/2023

4.55%
246,962.89
249,072.60

99.75 4.31%
249,369.14
4,054.01

2.33%
296.54
Aaa/AA+
AA+

0.58 0.56
91282CEU1 UNITED STATES TREASURY 2.875
06/15/2025 250,000.00 05/18/2023

4.19%
243,544.92
247,811.40

99.10 4.17%
247,756.35
2,120.90

2.32%
(55.06)
Aaa/AA+
AA+

0.71 0.68
91282CFK2 UNITED STATES TREASURY 3.5
09/15/2025 250,000.00 06/08/2023

4.35%
245,439.45
248,080.06

99.54 3.99%
248,861.33
386.74

2.33%
781.27
Aaa/AA+
AA+

0.96 0.93
32 ITEM 10
Agenda Packet Page 44

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CFW6 UNITED STATES TREASURY 4.5
11/15/2025 250,000.00 05/18/2023

4.05%
252,646.48
251,191.06
100.64

3.91%
251,601.56
4,249.32

2.35%
410.50
Aaa/AA+
AA+

1.13 1.07
91282CGL9 UNITED STATES TREASURY 4.0
02/15/2026 250,000.00 06/08/2023

4.22%
248,613.28
249,291.11
100.27

3.79%
250,673.83
1,277.17

2.35%
1,382.72
Aaa/AA+
AA+

1.38 1.32
91282CGV7 UNITED STATES TREASURY 3.75
04/15/2026 250,000.00 04/12/2023

3.75%
250,029.30
250,014.84
100.00

3.75%
250,009.77
4,328.89

2.34%
(5.07)
Aaa/AA+
AA+

1.54 1.46
91282CHB0 UNITED STATES TREASURY 3.625
05/15/2026 250,000.00 06/08/2023

4.15%
246,435.55
248,033.06

99.84 3.73%
249,599.61
3,423.06

2.34%
1,566.55
Aaa/AA+
AA+

1.62 1.54
91282CJC6 UNITED STATES TREASURY 4.625
10/15/2026 150,000.00 10/19/2023

5.05%
148,265.63
148,817.26
101.88

3.66%
152,824.22
3,203.38

1.43%
4,006.96
Aaa/AA+
AA+

2.04 1.89
912828U24 UNITED STATES TREASURY 2.0
11/15/2026 250,000.00 05/18/2023

3.83%
235,195.31
241,008.12

96.68 3.64%
241,699.22
1,888.59

2.26%
691.10
Aaa/AA+
AA+

2.13 2.04
91282CEF4 UNITED STATES TREASURY 2.5
03/31/2027 250,000.00 03/24/2023

3.52%
240,556.64
244,127.71

97.43 3.59%
243,574.22

17.17 2.28%
(553.49)
Aaa/AA+
AA+

2.50 2.39
91282CKJ9 UNITED STATES TREASURY 4.5
04/15/2027 200,000.00 04/24/2024

4.80%
198,351.56
198,593.13
102.18

3.59%
204,351.56
4,155.74

1.91%
5,758.43
Aaa/AA+
AA+

2.54 2.34
91282CKV2 UNITED STATES TREASURY 4.625
06/15/2027 160,000.00 06/20/2024

4.48%
160,637.50
160,577.79
102.70

3.57%
164,318.75
2,183.61

1.54%
3,740.96
Aaa/AA+
AA+

2.71 2.50
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 150,000.00 09/18/2024

3.48%
150,972.66
150,966.20
100.30

3.56%
150,445.31
465.64

1.41%
(520.89)
Aaa/AA+
AA+

4.92 4.45
Total US Treasury 3,160,000.00 4.16%
3,120,112.11
3,138,121.67

99.87 3.86%
3,155,260.64
32,744.39

29.53%
17,138.97
Aaa/AA+
AA+

1.65 1.56
Total Portfolio 10,636,733.37 4.51%
10,535,601.26
10,572,347.88

99.92 3.96%
10,686,167.42
93,158.53
100.00%
113,819.54
Aa2/AA-
AA

2.30 1.87
Total Market Value +
Accrued 10,779,325.95
33 ITEM 10
Agenda Packet Page 45
Printed on Recycled Paper

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM

DATE: November 13, 2024

TO: Mayor and City Council Members
Ashley J. Feeney, City Manager

FROM: Regina Cave, General Services Director

SUBJECT: Resolutions Approving the Measure A Sacramento Countywide Transportation Mitigation Fee Program Nexus Study and Amended Agreement on Operating Protocols

Summary and Recommendation
The Sacramento Transportation Authority (STA) Board adopted an updated nexus study for the Sacramento Countywide Transportation Mitigation Fee Program (SCTMFP). As required under the Measure A Ordinance, all recipient agencies of the Measure A program are required to adopt the SCMFP and subsequent actions in order to receive distributions of Measure A revenues.

Staff presented this item to City Council on October 23, 2024, however, Council elected to continue the item to the following regularly scheduled council meeting to allow additional time for review.

At this time, staff recommends the following:
1) Adopt Resolution No. 2024-___ Approving the 2024 Sacramento Countywide Transportation Mitigation Fee Program Nexus Study;

2) Adopt Resolution No. 2024-___ Approving the Amended Agreement on Operating Protocols for the Sacramento Countywide Transportation Mitigation Fee Program; and

3) Introduce by title only and waive first reading of Ordinance No. 2024-___ An Ordinance Adding Article XXX to Chapter 18 of the Citrus Heights Code Relating to the Collection of Development Impact Fees for Measure A Transportation Improvements.

City Council Strategic Goal/Objective

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

• Maintain and Enhance Fiscal Stability
• Maintain Public Infrastructure and Enhance All Modes of Transportation ITEM 11
Agenda Packet Page 46
Subject: Measure A Sacramento Countywide Transportation Mitigation Fee Program – Approval of Nexus Study, Amended Agreement on Operating Protocols, and Ordinance Amendment Date: November 13, 2024

Page 2 of 5 ends

Printed on Recycled Paper
Fiscal Impact

This recommendation has no fiscal impact. All fees collected under this program are remitted to the STA for distribution through the capital program. Additionally, amendments to the Measure A Program do not increase or reduce the City’s distribution of Measure A revenues. The Fee Program allows the City to charge a 2% administrative fee to cover administrative reporting and similar costs to administer the fee.

Background and Analysis

In 2004, Sacramento countywide voters supported the renewal of Measure A (new Measure A), which is a 1/2 cent Transportation Sales tax. The new Measure A, which went into effect in 2009, included an Expenditure Plan and extended the existing Measure A sales tax for 30 years.

Administered by the Sacramento Transportation Authority (STA), the new Measure A sales tax also required implementation of the Sacramento Countywide Transportation Mitigation Development Impact Fee Program (SCTMFP) for partial funding of the transportation improvements and projects identified in the Measure A Expenditure Plan. The program was created to generate a uniform transportation mitigation fee on certain new development in Sacramento County as a funding source for road and transit system improvements needed to accommodate projected growth.

Each jurisdiction was required to implement the SCTMFP as a condition of receiving the New Measure A sales tax revenues. These collected revenues are then remitted to the STA for reallocation to specific county-wide transportation projects included in the Measure A Expenditure Plan. Each local fee is required to be consistent with the SCTMFP, as adopted by the STA.

In 2022, the STA spearheaded efforts to conduct an updated nexus study supporting the SCTMFP to ensure current and forecasted land uses are consistent with the categories outlined in the program. Following extensive collaboration with the impacted agencies and various stakeholders, on June 13, 2024, the STA Governing Board approved a resolution:

• Adopting the 2024 SCTMFP Nexus Study with additional land use categories • Setting the updated SCTMFP Fee Rates effective January 1, 2025 • Including a new residential fee structure to align with AB 602 requirements for fees to be proportional to square footage categories
• Amending the local arterial program to include smart growth arterials and corridors • Revising the SCTMFP overall program allocation.

On August 8, 2024, the STA Governing Board approved an Amended Agreement on Operating Protocols which incorporates the updated Fee Rates effective January 1, 2025, and includes fee reductions for infill and transit-oriented development projects, and additional exemptions for accessory dwelling units less than 750 square feet and development projects intended for use by the County or the City.

ITEM 11
Agenda Packet Page 47
Subject: Measure A Sacramento Countywide Transportation Mitigation Fee Program – Approval of Nexus Study, Amended Agreement on Operating Protocols, and Ordinance Amendment Date: November 13, 2024

Page 3 of 5 ends

Printed on Recycled Paper
Updated Fee Amounts and New Residential Fee Structures. The fees for the various development types were updated using current trip generation rates consistent with state law. In addition, the residential fees were updated to align with AB 602 requirements for fees to be proportionate to the square footage of the proposed development. The Nexus Study consultant worked with local agency staff to find the most appropriate square footage categories. Based on the 2024 SCTMFP Nexus Study fee calculation and the Agreement on Operating Protocols (Amended – August 2024), the new fee rates effective January 1, 2025, are set as follows:

Category Prior Fee Imposed
(FY 2024/2025)
New Fee
Single Family Residential
Very Small (≤800 sq. ft.) $1,574 per unit $1,088 per unit Small (801-1,200 sq. ft.) $1,574 per unit $1,334 per unit Medium-Small (1,201-1,600 sq. ft.) $1,574 per unit $1,451 per unit Medium (1,601-2,400 sq. ft.) $1,574 per unit $1,574 per unit Large (>2,400 sq. ft.) $1,574 per unit $1,730 per unit
Single Family Residential, Senior
Very Small (≤800 sq. ft.) $1,260 per unit $497 per unit Small (801-1,200 sq. ft.) $1,260 per unit $609 per unit Medium-Small (1,201-1,600 sq. ft.) $1,260 per unit $663 per unit Medium (1,601-2,400 sq. ft.) $1,260 per unit $719 per unit Large (>2,400 sq. ft.) $1,260 per unit $790 per unit
Multi-Family Residential
Very Small (≤800 sq. ft.) $1,101 per unit $995 per unit Small (801-1,200 sq .ft.) $1,101 per unit $1,221 per unit Medium-Small (1,201-1,600 sq .ft.) $1,101 per unit $1,327 per unit Medium (1,601-2,400 sq. ft.) $1,101 per unit $1,440 per unit Large (>2,400 sq. ft.) $1,101 per unit $1,582 per unit
Multi-Family Residential, Senior
Very Small (≤800 sq .ft.) $943 per unit $440 per unit
Small (801-1,200 sq .ft.) $943 per unit $540 per unit
Medium-Small (1,201-1,600 sq .ft.) $943 per unit $587 per unit Medium (1,601-2,400 sq. ft.) $943 per unit $637 per unit Large (>2,400 sq. ft.) $943 per unit $700 per unit
Accessory Dwelling Units
Very Small (<750 sq. ft.) Exempt from fee Exempt from fee Otherwise (>750 sq. ft.) Fee is based on the ratio
of the floor area of the
ADU compared to the
primary unit, times the
fee that would be charged
on the primary unit, if the
primary unit was being
newly built.

Fee is based on the ratio of
the floor area of the ADU
compared to the primary
unit, times the fee that
would be charged on the
primary unit, if the primary
unit was being newly built.

ITEM 11
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Subject: Measure A Sacramento Countywide Transportation Mitigation Fee Program – Approval of Nexus Study, Amended Agreement on Operating Protocols, and Ordinance Amendment Date: November 13, 2024

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Category Prior Fee Imposed New Fee
Office Uses $1,890 per 1,000 sf $1,807 per 1,000 sf
Retail Use $2,362 per 1,000 sf $2,361 per 1,000 sf
Industrial Use $1,260 per 1,000 sf $827 per 1,000 sf
Hotel/Motel $912 per sleeping room $854 per sleeping room Extended Stay Hotel/Motel $810 per sleeping room $559 per sleeping room Hospital $2,639 per 1,000 sf $1,796 per 1,000 sf
Service Station $2,047 per fuel pump $3,442 per fuel pump Supermarket $2,362 per 1,000 sf $1,078 per 1,000 sf
Warehouse/Self Storage $394 per 1,000 sf $238 per 1,000 sf Assisted Living Facility $454 per bed $434 per bed
Congregate Care $333 per unit $369 per unit
Child Day Care $725 per student $682 per student
Private School (K-12) $410 per student $414 per student Auto Repair/Body Shop $2,362 per 1,000 sf $2,361 per 1,000 sf Gym/Fitness Center $2,362 per 1,000 sf $2,361 per 1,000 sf Drive-thru Car Wash $2,362 per 1,000 sf $2,361 per 1,000 sf Normalized Cost Per Trip (All other uses) $167 per trip $167 per trip Measure A Administrative Fee 2% of the total Measure A Development Impact Fee

In addition to approval of the SCTMFP Nexus Study and Amended Agreement on Operating Protocols, the City is required to amend the City’s municipal code by ordinance to incorporate the Measure A SCTMFP as illustrated in Attachment 5.

Environmental Review

The Project is exempt from CEQA consistent with Statutory Exemption Section 15273(a)(4) which states establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies is not a project, and therefore not subject to the provisions of CEQA.

Attachments

1) Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving the 2024 Sacramento Countywide Transportation Mitigation Fee Program Nexus Study (2024 SCTMFP Nexus Study)
2) Resolution No. 2024-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving the Amended Agreement on Operating Protocols for the Sacramento Countywide Transportation Mitigation Fee Program 3) 2024 SCTMFP Nexus Study
4) Agreement on Operating Protocols
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Subject: Measure A Sacramento Countywide Transportation Mitigation Fee Program – Approval of Nexus Study, Amended Agreement on Operating Protocols, and Ordinance Amendment Date: November 13, 2024

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5) Ordinance No. 2024-___ An Ordinance of the City Council of the City of Citrus Heights, California, Adding Article XXX to Chapter 18 of the Citrus Heights Code Relating to the of Collection Development Impact Fees for Measure A Transportation Improvements

ITEM 11
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RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CITRUS HEIGHTS, CALIFORNIA, APPROVING THE 2024

SACRAMENTO COUNTYWIDE TRANSPORTATION MITIGATION

FEE PROGRAM NEXUS STUDY
WHEREAS, on July 29, 2004, the Sacramento Transportation Authority (STA) adopted Ordinance No. 04-01, including the Sacramento County Transportation Expenditure Plan 2009-2039, codifying the allocation of the new Measure A sales taxes and Measure A development impact fees for specified public improvement projects;
WHEREAS, on November 2, 2004, the voters in Sacramento County approved an extension of the one-half cent Measure A transportation sales tax, to become effective on April 1, 2009, and approved the Measure A Expenditure Plan;
WHEREAS, STA Ordinance No. 04-01 required each jurisdiction in the county to adopt the Measure A development impact fees as a condition of receiving the new Measure A sales tax proceeds consistent with the Measure A Sacramento Countywide Transportation Mitigation Fee Program (SCTMFP);
WHEREAS, on June 7, 2006, STA adopted Resolution No. 06-0006, approving the SCTMFP Nexus Study, which identified the additional public facilities required by new development and determined the amount of the development impact fees to be imposed on a countywide basis, ensuring all new development paid its fair share of the costs of new public facilities needed to serve such development;
WHEREAS, the STA Resolution that adopted the Measure A Nexus Study and set for the SCTMFP rates effective April 1, 2009 provided that protocols related to SCTMFP Fee implementation issues, including but not limited to, required dates of Fee remittance to STA and documentation to be submitted by each participating Agency, shall be established by future resolution of the STA and contracts between the STA and the participating agencies; WHEREAS, on January 8, 2009, the City Council adopted Resolution No. 2009-009 approving the Measure A Nexus Study and the rates set forth in the Measure A Nexus Study effective April 1, 2009;
WHEREAS, in an effort to ensure the SCTMFP reflects current and anticipated land uses and public infrastructure and transportation needs, the STA conducted an updated Nexus Study, working with various effected agencies and stakeholders to achieve consistency; WHEREAS, on June 13, 2024, the STA Governing Board adopted Resolution No. 24-0005 approving the 2024 Sacramento Countywide Transportation Mitigation Fee Program Nexus Study with an updated project list, includes a Smart Growth Arterials and Corridors program, and has an updated fee amounts and new residential fee structures to align with AB 602 requirements for fees to be proportional to square footage categories with the new updated rates to be effective January 1, 2025; ITEM 11
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WHEREAS, in accordance with the Mitigation Fee Act (Government Code Section 66000 et seq.) on October 23, 2024 a public hearing was opened and by Council direction was continued to November 13, 2024 on the adoption of the 2024 SCTMFP Nexus Study and the Operating Protocols Agreement, Amended August 2024, notice of said public hearing having been duly and properly given; and all written and oral presentations having been duly considered by the Council.

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby approve the 2024 SCTMFP Nexus Study and proposed impact fees, and has determined this action meets Public Resources Code (PRC) Section 21080(b)(8) and CEQA Statutory Exemption Section 15273(a)(4) which states, establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies is not a project, and therefore not subject to the provisions of CEQA as the SCTMFP will fund non-expansion projects in the city limits of Citrus Heights.

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 13 th day of November, 2024 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Dr. Jayna Karpinski-Costa, Mayor
ATTEST:

Amy Van, City Clerk

ITEM 11
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RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CITRUS HEIGHTS, CALIFORNIA, APPROVING THE AMENDED AGREEMENT

ON OPERATING PROTOCOLS FOR THE SACRAMENTO COUNTYWIDE

TRANSPORTATION MITIGATION FEE PROGRAM

WHEREAS, the New Measure A Transportation Sales Tax approved by the County voters in 2004, called for the implementation of a Sacramento Countywide Transportation Mitigation Development Impact Fee Program, so that new development paid its fair share of the costs of the transportation improvements included in the Measure A Expenditure plan;

WHEREAS, the City of Citrus Heights was required to implement the Sacramento County Transportation Mitigation Fee Program SCTMFP, also referred to as the Measure A Fee, as a condition of receiving New Measure A sales tax revenues, in accordance with the provisions of AB 1600, and the fees went into effect on April 1, 2009;

WHEREAS, Sacramento Transportation Authority (STA) staff developed an Agreement on Operating Protocols to apply to all jurisdictions in the County, regarding the obligation to impose, collect, account, and remit the Measure A development impact fees to STA which was approved by the STA Board on August 28, 2008;
WHEREAS, STA staff coordinated with local jurisdictions to prepare a technical amendment to the Agreement on Operating Protocols in order to update the fee rate schedule to accommodate specific types of land development;
WHEREAS, on June 13, 2024, the STA Governing Board adopted Resolution No. 24-0005 approving the 2024 Sacramento Countywide Transportation Mitigation Fee Program Nexus Study with additional land use categories, updated fee amounts and new residential fee structures to align with AB 602 requirements, with the new updated rates to be effective January 1, 2025; and WHEREAS, on August 8, 2024, the STA Governing Board adopted Resolution No. 24-0006 approving an amended Operating Protocols Agreement to utilize the updated SCTMFP fee rates and the 2024 SCTMFP Nexus Study.

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby approve the Amended Agreement on Operating Protocols for the Sacramento Countywide Transportation Mitigation Fee Program, and further Authorizes the City Manager or his designee to execute said agreement.

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 13 th day of November, 2024 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ITEM 11
Agenda Packet Page 53

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ABSENT: Council Members:

Dr. Jayna Karpinski-Costa, Mayor
ATTEST:

Amy Van, City Clerk

ITEM 11
Agenda Packet Page 54
2024 Nexus Study
Update Report
Sacramento Transportation Authority
May 24, 2024
GHD Inc.

The Power of Commitment
ATTACHMENT 2
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GHD | Sacramento Transportation Authority | 12578763 | 2024 Nexus Study Update Report i

Executive Summary
The purpose of this report is to present information that the Sacramento Transportation Authority (STA) may find useful in updating the Sacramento County Transportation Mitigation Fee (SCTMF), pursuant to the requirements of the Mitigation Fee Act. The report updates previous work in several ways:
• It incorporates new land use forecasts for Sacramento County, prepared under a different contract.1 • The status of individual transportation projects was updated. This resulted in some projects no longer needing future SCTMF funding because the project has either been completed or is no longer planned.
• Project costs were updated, based on construction cost inflation and new estimates prepared by member agencies.
• The trip generation rates were updated to reflect the new data found in the 11th edition of the Institute of Transportation Engineers (ITE) Trip Generation Manual. • The percentage of the need for new transportation projects attributable to new development was recalculated using a version of SACOG’s latest travel demand model. • Board policies since the last nexus study, such as those regarding fees for retail developments, are reflected in the calculation of future fees.
• Several new sections were added based on requirements mandated by AB 602, which went into effect in 2022.

These updates enable STA and the local jurisdictions to reaffirm the findings required by the Mitigation Fee Act, which are described in Chapter 5, and implement the fee program.

Most readers of this report will find the calculation of the impact fees to be the part of greatest interest. This is found in Chapter 4. The proposed fee for the average single-family home would adhere to the 2004 voter- approved Measure A Ordinance’s express requirement to adopt a fee consistent with State law. In 2021, the Legislature passed AB 602, which requires cities, counties, and special districts, inter alia, to “calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development.” (Cal. Government Code, § 66016.5(a)(5)(a)). AB 602 also allows for other systems beyond square footage-based proportionality but requires “…an explanation as to why square footage is not an appropriate metric,” and “that an alternative basis […] bears a reasonable relationship between the fee charged and the burden posed by new development”, and “that other policies in the fee structure support smaller developments…” (Cal. Government Code, § 66016.5(a)(5)(b)).

Accordingly, the percentage increase or decrease in fees for different types of development varies due to changes in their trip generation rates and the new AB 602-mandated adjustment for floor area. For example, while the rate for the average single-family dwelling (SFD, medium size 1,601-2,400 sq.ft.) would not change, the fee for very small SFD (≤ 800 sq.ft.) would decrease by $486 (31%) and the fee for small SFD (801-1,200 sq.ft.) would decrease by $240 (15%). The fee for medium-small SFD (1,201-1,600 sq.ft.) would increase by $123 (8%) and the fee for large SFD (>2,400 sq.ft.) would increase by $156 (10%). Rates for age-restricted senior housing would decrease. Rates for multi-family dwellings would generally increase for all development types except very small units due to revisions to their trip-generation rate. Per the Measure A Ordinance, non-SFD rates are set in proportion to the trip generation rate of a (medium) single-family dwelling unit.

1 Technical Memorandum: Sacramento Transportation Authority Development Forecasts, dated August 18, 2021 ITEM 11
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Please note that these are all “potential” changes to fees; the STA Board may, at its discretion, choose to set fee rates for any given development type at a level lower than that calculation in this report. It may not, however, set the fee rates higher than those supported by a nexus calculation.

The intent of this study is to validate the fee and allow the local jurisdictions to continue to implement the fee.

A local jurisdiction that fails to implement the fee would forfeit local street and road maintenance funds provided by Measure A. All such funds would be made immediately available on a pro rata basis to all other local jurisdictions that have this fee program in place.

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GHD | Sacramento Transportation Authority | 12578763 | 2024 Nexus Study Update Report iii

Contents

1. Introduction 1

1.1 Purpose of this report 1

1.2 Background on the SCTMF Program 1

1.3 Implementation History 2

2. Review of Previous Nexus Study 5

2.1 Methodology Used 5

2.2 Key Assumptions 7

3. Updates of Key Inputs 9

3.1 Development Growth Forecasts 9

3.2 Traffic and Ridership Growth Forecasts 10

3.3 Volume-to-Capacity Ratios 16

3.4 Project Cost Estimates 18

4. Updated Fee Calculation 22

4.1 Consideration of Residential Floor Area 22

4.1.1 Accessory Dwelling Units (ADUs) 24

4.2 Computing the Maximum Allowable Fee 24

4.3 Recommended Fee by Land Use Category 25

4.4 Funding from Other Sources 28

4.4.1 Funding from Local Jurisdictions 28

5. Mitigation Fee Act Findings 32

5.1 Purpose of the Fee 32

5.2 Use of Fee Revenues 32

5.3 Use/Type-of-Development Relationship 32

5.4 Need/Type-of-Development Relationship 32

5.5 Proportionality Relationship 33

5.6 Residential Floor Area 33

Table index
Table 1: Revenues by Year and Jurisdiction 3
Table 2: Expenditure by Years and Jurisdiction 4
Table 3: Computation of Average Rate for Commercial/Retail Uses 14 Table 4: Computation of Average Rate for Industrial Uses 14 Table 5: Computation of Average Rate for Warehouse/Self Storage Uses 14 Table 6: Computation of Average Rate for Lodging Uses 14 Table 7: Trip-Generation Rates Used for Forecast of Traffic Growth 15 ITEM 11
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GHD | Sacramento Transportation Authority | 12578763 | 2024 Nexus Study Update Report iv

Table 8: Growth in Trips Generated in Sacramento County 15 Table 9: LOS Policies of Jurisdictions in Sacramento County 16 Table 10: Volume-to-Capacity Ratios for Measure A Road Projects 17 Table 11: Updated Project Costs 19
Table 12: Construction Cost Inflator 21
Table 13: Computation of Average Trip Generation by Dwelling Size Category 23 Table 14: Computation of DUEs by Size and Dwelling Type 24 Table 15: Calculation of Fee per New Vehicle Trip (for Roads) and Per New Dwelling Unit Equivalent (for Roads and Transit) 25
Table 16: Fees for Residential Developments 26
Table 17: Updated Fees by Non-Residential Development Type 27 Table 18: Grant Funding for Completed Measure A Projects 29 Table 19: Expected Grant Funding Needs for SCTMF-Funded Projects 30

Figure index
Figure 1: Forecast Versus Actual Revenues 2
Figure 2: Steps Used in the 2006 Fee Calculation 6
Figure 3: Forecast Versus Actual Housing Starts in Sacramento County 7 Figure 4: Forecast for Development of Single-Family Dwellings 11 Figure 5: Forecast for Development of Multi-Family Dwellings 12 Figure 6: Forecast for Non-Residential Development 13

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GHD | Sacramento Transportation Authority | 12578763 | 2024 Nexus Study Update Report 1

1. Introduction

1.1 Purpose of this report
California’s Mitigation Fee Act (Government Code Sections 66000 to 66025) requires agencies that impose impact fees to periodically review the assumptions and calculations used in computing the fee. It further requires them to revise the calculation if necessary to maintain a nexus, i.e. a logical connection between the developments that will be required to pay the fee and the impact being mitigated. The agency is then required to make certain specific findings certifying that the fee is in conformance with the Act. As STA does not impose impact fees, it would instead recommend that local agencies participating in the Measure A Program adopt the nexus study and revised fee schedule, with the local agencies then taking individual actions to formalize adoption.

The purpose of this report is to review the assumptions and methodology used in computing the Sacramento County Transportation Mitigation Fee (SCTMF), update them as needed, and recommend changes to the fee schedule that will enable it to accomplish the Program’s goals. The report is also intended to document this work and fulfill the requirements of the Mitigation Fee Act, including new requirements pursuant to the passage of Assembly Bill (AB) 602 in 2021.

1.2 Background on the SCTMF Program
In 1988 the voters of Sacramento County approved a half-cent sales tax for transportation improvements in Sacramento County. The Sacramento Transportation Authority (STA) was created as a countywide transportation agency to fiscally administer the program. Measure A, the 30-year extension of the 1988 sales tax, was approved by voters in 2004 and went into effect in April 2009 when the previous tax expired.

One component of Measure A was the introduction of a countywide transportation mitigation fee. This was enacted by the STA Board in Section VII of STA Ordinance 04-01. The stated goal was “to develop and implement a uniform transportation mitigation fee on all new development in Sacramento County that will assist in funding road and transit system improvements needed to accommodate projected growth and development.”
The expected proceeds of the fee were tentatively allocated as follows:
35% Local streets and roads for capital improvements and rehabilitation 20% Public transit for capital improvements and rehabilitation 20% Local interchange upgrades, safety projects, and congestion relief improvements on the local freeway system, including bus and carpool lane projects. 15% Smart Growth Incentive Program
10% Transportation Project Environmental Mitigation, including, but not limited to, habitat conservation, open space preservation, habitat replacement, and recreation, and overall environmental enhancement of transportation facilities to the benefit of local transit users and neighborhoods. Necessary open space preservation and natural habitat preservation programs shall be eligible uses of these funds.

A nexus study for the fee was completed in June 2006 which recommended the fee of $1,000 per single- family dwelling, with other developments to be charged based on their trip-generation rate relative to single- family dwellings. This study is described in detail in a later section of this report.

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1.3 Implementation History
SCTMF fees were imposed, and revenues are collected, by local jurisdictions in Sacramento County based on the SCTMF as part of their development approval process. The revenues are then remitted to STA, which then distributes the proceeds to various eligible projects in accordance with direction from the STA Board.

Each of the seven-member jurisdictions (the six incorporated cities plus the County) have projects included in the Expenditure Plan, as do three additional agencies. These are Caltrans, Sacramento Regional Transit, and the Capitol Southeast Connector JPA.

Fees started to be collected in 2009 when Measure A went into effect. More than $80.5 million in fees have been collected to date. Table 1 shows the program revenues by fiscal year and jurisdiction. Revenues have followed a general upward trajectory over time, as the development industry in the region has recovered from the Great Recession in (late 2007 to mid-2009).

Table 2 shows the program expenditures by fiscal year and implementing agency. As of June 30, 2023, the program has made more than $68 million available to six different agencies for Measure A projects.

Although the SCTMF Program has successfully brought in tens of millions of dollars for transportation projects needed to accommodate continued growth, the program has not achieved its revenue goals. Figure 1 compares the revenues that were forecast in the 2006 nexus study with the amounts actually received. For the 2008-2023 period, the program brought in only 16% of the expected revenue. This is due in large part to unfortunate timing, with the program kicking off during the Great Recession. Real estate development was among the hardest hit during the recession and among the slowest to recover. With little development activity taking place to generate revenue, impact fee programs across California failed to generate the revenues expected from pre-recession forecasts, when development was booming.

Figure 1: Forecast Versus Actual Revenues

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Table 1: Revenues by Year and Jurisdiction

Fiscal
Year
City of
Sacramento
Sacramento
County Elk Grove Folsom Rancho
Cordova Galt Citrus
Heights Total
FY 2009 $140,644 $75,381 $51,729 $388,909 $92,800 $784 $1,452 $751,700 FY 2010 $774,416 $540,256 $539,123 $160,098 $259,378 $32,697 $15,989 $2,321,958 FY 2011 $549,987 $476,898 $860,663 $235,420 $204,379 $0 $7,091 $2,334,437 FY 2012 $587,824 $864,400 $990,421 $151,321 $302,467 $0 $60,930 $2,957,362 FY 2013 $871,942 $925,576 $588,839 $372,038 $378,345 $17,152 $22,491 $3,176,382 FY 2014 $601,826 $768,585 $665,916 $504,350 $360,591 $629,402 $9,872 $3,540,542 FY 2015 $1,628,337 $901,922 $835,144 $563,908 $352,981 $246,253 $95,594 $4,624,139 FY 2016 $1,330,694 $1,053,408 $920,723 $387,388 $428,758 $127,781 $114,898 $4,363,650 FY 2017 $4,433,942 $1,709,179 $408,227 $309,544 $708,906 $188,900 $89,477 $7,848,174 FY 2018 $3,871,298 $1,009,173 $1,434,011 $833,234 $400,807 $52,510 $20,720 $7,621,753 FY 2019 $2,707,448 $1,233,164 $1,338,725 $782,022 $471,078 $80,266 $71,335 $6,684,037 FY 2020 $3,198,236 $1,479,587 $964,492 $878,685 $916,239 $96,852 $17,465 $7,551,556 FY 2021 $1,712,959 $2,850,723 $1,658,050 $1,165,476 $934,092 $376,875 $258,817 $8,956,993 FY 2022 $2,660,711 $1,448,899 $1,014,918 $1,175,200 $179,181 $1,385,171 $373,344 $8,237,425 FY 2023 $2,526,006 $1,796,877 $1,223,435 $1,609,388 $152,326 $1,528,205 $20,006 $8,856,242 Interest $256,077 $158,994 $74,692 $130,288 $20,238 $89,506 $10,944 $740,739 Total $27,852,348 $17,293,022 $13,569,106 $9,647,269 $6,162,567 $4,852,353 $1,190,426 $80,567,090 % of Total 35% 21% 17% 12% 8% 6% 1% 100%
Source: STA
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Table 2: Expenditure by Years and Jurisdiction

Notes: Some cell values are negative. This indicates cases where money from the General Fund was used to reimburse earlier expenditures from the SCTMF Program.

Expenditures for Caltrans, SacRT, and Capitol Southeast Connector have occurred within multiple jurisdictions.

Fiscal
Year
City of
Sacramento
Sacramento
County Elk Grove Folsom Rancho
Cordova Galt Citrus
Heights Caltrans SacRT
Capitol
Southeast
Connector
Total
FY 2009 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
FY 2010 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
FY 2011 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
FY 2012 $371,690 $382,219 $0 $0 $0 $0 $59,275 $1,400,667 $3,940,833 $1,370,479 $7,525,163 FY 2013 $0 $0 $0 $0 $0 $0 $0 $20,078 $0 $0 $20,078
FY 2014 $1,471,903 $1,084,917 $0 $0 $0 $0 $0 $0 $0 $0 $2,556,820 FY 2015 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
FY 2016 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
FY 2017 $8,578,391 $1,872,358 $0 $0 $666,782 $0 $0 $3,047,319 $106,607 $2,275,776 $16,547,233 FY 2018 $1,076,989 $614,425 $0 $0 $434,878 $0 $0 ($6,599,873) ($4,047,440) ($2,316,651) ($10,837,673) FY 2019 $716,073 $1,689,048 $0 $0 $1,322,520 $0 $0 $1,193,987 $0 $4,659,492 $9,581,120 FY 2020 $193,614 $1,867,750 $0 $0 $1,569,163 $0 $0 $937,911 $0 $7,144,332 $11,712,770 FY 2021 $483,507 $6,372,770 $0 $0 $2,756,887 $0 $0 $1,883,549 $0 $4,006,952 $15,503,666 FY 2022 $447,031 $4,334,452 $93,561 $0 $0 $0 $600,000 $0 $0 $7,898,740 $13,373,785 FY 2023 $469,776 $24,244 $165,212 $1,966,518 $2,625,749 Total $13,808,974 $18,242,182 $258,773 $0 $6,750,230 $0 $659,275 $1,883,639 $0 $27,005,638 $68,608,711 ITEM 11
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2. Review of Previous Nexus Study
Section 66016.5(a)(4) of AB 602, which went into effect on July 1, 2022, states that “If a nexus study supports the increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.” This chapter is intended to fulfill this requirement by reviewing the methodology and assumptions used in the original nexus study by David Taussig & Associates, dated June 2006, entitled “Sacramento Transportation Authority Development Impact Fee Study”.

2.1 Methodology Used
The methodology used in the 2006 fee calculation is shown in Figure 2. The key steps were:
1) Estimates for the existing residential and non-residential land uses in Sacramento County were provided by SACOG.

The study purposefully excluded neighborhood and community retail uses from the fee calculation.

The rationale was that trips to and from these uses would be made on local streets and thus would not contribute to traffic on the regional roads funded by the fee program. 2) Trip generation rates were taken from the Institute of Transportation Engineers (ITE) Trip Generation Manual, 6th Edition. For the commercial retail land use category, a blended rate of 7 retail land use codes was used. The rates for retail uses were also adjusted to account for pass-by trips. 3) The number of units for each land use type, dwelling units for residential and square feet for non- residential, were multiplied by the ITE trip generation rates to estimate the daily number of vehicle trips generated in Sacramento County.
4) Forecasts for future growth were provided by SACOG and used to generate an estimate of the number of vehicle trips that would be generated in Sacramento County in the study’s horizon year (2039).
5) Future development’s fair share of the cost of roadway improvements was then calculated as its share of total trips generated in 2039, which was 31%.
6) A “Needs List” of projects was developed through consultation with Sacramento County, STA member cities, and Caltrans, and included in the Measure A Transportation Expenditure Plan (TEP).

No further elaboration of this process was provided in the nexus study. However, the fact that the project list was approved by the voters, who agreed to tax themselves to pay for the projects, is strongly indicative of a consensus that the facilities listed are in fact needed. 7) A cost was assigned to every project on the Needs List. The nexus study did not state where the cost estimates came from, but it is likely that they were provided by whichever agency was tasked with implementing the project.
8) The percentage share of costs attributable to new development from Step 5 was applied to the project costs in Step 7 to find the total project costs attributable to new development. 9) This was divided by the growth in trips to find the allowable fee per new trip ($1,005/single-family dwelling).
10) The STA Board of Directors made a policy decision to limit the fee on new development to $1,000 per single-family dwelling.
11) The permissible fee rates from Step 9 were duly factored down pro rata so that the fee on single- family dwellings was $1,000.

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12) Other sources of funding, including sales tax revenues, local agency fees, and State and federal programs, were identified as sources for the remaining funds required to implement the projects on the Needs List.
13) The final fee schedule was then submitted to the STA Board for approval.

Figure 2: Steps Used in the 2006 Fee Calculation

Key
Existing Land Uses Growth Forecast
Share of Future Deficiencies
Attributable to New
Development
Cost of Future
Projects
Project Costs Attributable to
New Development
Maximum Permissible Fee
per DUE
1 Input
Computation
Trip-Gen Rates
Recommended Fee
Board Policies
Other Sources of
Funds
Pro-Rate to
SFD = $1,000
Existing Daily Trips
4 Future Daily Trips
2 3
5 Needs List
6 7
8 910
11 1213
Measure A
Ordinance
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2.2 Key Assumptions
As seen in Figure 2, the key assumptions in the 2006 study pertain to existing and proposed land uses, trip- generation rates, and project costs. These are discussed below.

Land Use Assumptions
The 2006 nexus study reported that its land use assumptions came directly from SACOG’s travel demand model; the origins of the data in the model were not discussed. Figure 3 compares the study’s assumed production of single-family housing (dark lines) and multi-family housing (amber lines). As shown in Figure 3, the 2006 study assumed that the average long-term monthly production of multi-family would approximately double the previous highest-ever single-month production. Contrary to this forecast, MFD production declined after 2006, resulting in a 4-or-5-fold overestimate of MFDs that would pay the fee. The 2006 study also assumed a reduction in single-family housing production, though the actual reduction was greater than the forecast reduction.

Figure 3: Forecast Versus Actual Housing Starts in Sacramento County

The discrepancy between the forecast and the actual housing production can mostly be attributed to the effects of the Great Recession on the local, state, and national real estate markets. Housing starts fell statewide by 68% between 2007 and 2009 and did not recover to pre-recession levels for 10 years.

Furthermore, SACOG’s belief at that time that residential development in the Sacramento region would focus on dense, infill development, including high levels of apartment development in Sacramento County, has not been fulfilled to the extent that had been hoped for in 2006.

Trip Generation Rates
The ITE Trip Generation Manual has been the standard industry source for vehicle trip data for generations.

The Trip Generation Manual contains data from field surveys of thousands of sites and is regularly updated to capture the effects of changes in travel behavior. The 2006 study’s use of this source was therefore in accordance with standard industry practice. The 2006 study used the 6th edition of the Trip Generation Manual; the current edition is the 11th.

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Project Cost Estimates
The 2006 study does not state the source of the project cost estimates, beyond saying that the Needs List, “… is a compilation of projects and costs identified by the local agency planning and engineering departments.” No further details are provided in the report.

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3. Updates of Key Inputs
The current nexus study offers an opportunity to update the key assumptions underpinning the nexus between new development and the fee. This process is described below.

3.1 Development Growth Forecasts
Land use forecasts are made for a variety of reasons, including preparation of a jurisdiction’s General Plan, air quality conformity forecasts, and planning for transportation and other infrastructure projects, to name just a few. STA therefore commissioned Economic & Planning Systems, Inc. (EPS) to develop growth forecasts specifically for use in the SCTMF nexus update study. The results were documented in a technical memorandum to STA.2
EPS’s development forecasts project short-term and longer-term land use changes for the total STA geography and by individual jurisdiction. The short-term projections focus on a 3-year period – fiscal years 2022, 2023, and 2024 – while the longer-term development projections identify anticipated development through the remainder of the program (i.e. through 2039).

EPS used several sources when developing their forecasts, including historical building permit data by land use; the development pipeline, including planned and proposed development projects, residential units, non- residential square footage, etc.; and population, household, and employment projections. This data was provided by the seven-member jurisdictions, SACOG, the California Department of Finance, the Construction Industry Research Board, the North State Building Industry Association, and several media outlets.

EPS grouped potential development into three categories:

1. Active Entitled Development. This category includes the remaining residential units and nonresidential square footage for projects that are delivering homes or building infrastructure, including only those residential units and nonresidential square footage where building permits have not yet been issued. Development projects in this category are either developing – with absorption anticipated to continue in the near term – or anticipated to start vertical construction within the next 3 to 5 years.

2. Planned Development. Planned development includes projects that have been approved and have tentative maps, but infrastructure has not yet been initiated. Development in this category is considered likely to develop within the next 5 to 20 years.

3. Conceptual Development. Development classified as conceptual for this analysis includes projects for which planning applications may have been submitted but not yet approved. This category also includes development concepts that may have been reported by the local jurisdiction, developers, or via third-party sources such as the Sacramento Business Journal or other news entities.

Development in this category may not occur within the next 20 years.

Growth forecasts at the county and city levels were used as control totals to limit the growth in the three categories described above to amounts reasonably foreseeable within the life of the SCTMF Program, considering past development performance.

Figure 4 charts the development of single-family dwellings since 2011 and the forecast going forward to the end of the SCTMF Program in 2039. Note the spike in construction in the City of Sacramento after a

2 Technical Memorandum: Sacramento Transportation Authority Development Forecasts, dated August 18, 2021 ITEM 11
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moratorium on development in Natomas3 was lifted, allowing many projects already in the development pipeline to proceed.

Figure 5 shows data for the same period for the development of multi-family housing. There was a surge in units between 2015 and 2020, especially in the Natomas, Downtown, and Midtown areas. This is forecast to drop as the stock of relatively easily developed lots becomes exhausted.

Figure 6 shows the corresponding graphs for non-residential development. In 2016 there was a spike in construction, again due to lifting the moratorium on development in Natomas, but also encompassing major developments in other locations, like Delta Shores.

In each case, the period between 2015 and 2020 appears to represent one-off occurrences of the release of pent-up demand. The forecasts going forward represent a return to long-term average conditions.

3.2 Traffic and Ridership Growth Forecasts
The development forecasts from the previous section must be converted into forecasts for the growth in traffic associated with new development in Sacramento County. The conversion from dwelling units (for residential development) and thousands of square feet (for non-residential developments) to trips was done using the trip generation rates found in the eleventh edition of the ITE Trip Generation Manual.

The Trip Generation Manual has dozens of land use categories that do not directly correspond to the land use categories used in the land use forecast. For example, the Trip Generation Manual has trip generation rates for 76 types of retail and service establishments aggregated into a single “Commercial, Retail” category in the land use forecasts. This reflects the reality that a commercial building may host a variety of tenants over its service life, so attempting to forecast individual uses, for example, “hair salons,” would be speculative at best. Instead, some representative use sub-categories were combined to generate averages to represent large categories of development. Table 3, Table 4, Table 5, and Table 7 show the derivation of the average trip generation rates for the commercial/retail, industrial, warehouse/self-storage, and lodging categories, respectively. Table 7 shows the resulting rates used to forecast the growth in traffic attributable to future development in Sacramento County.

The growth estimates for each category were then multiplied by their respective trip-generation rates to determine the growth in daily vehicle trips generated by new development (see Table 8). A similar calculation was done for the trips generated by existing land uses, with the existing land uses taken from SACOG’s SACSIM travel demand model. Table 8 shows that 5.6% of the trips generated in Sacramento County in 2039, when Measure A expires, would be attributable to new development.

Besides generating new vehicle trips, new development also generates new users for the transit system. This was computed as the percentage of dwelling units in the horizon year that would be built between 2022 and 2039. As seen in Table 8, 8.7% of transit riders in 2039 could be attributed to new development.

3 In the wake of the flooding of parts of New Orleans due to Hurricane Katrina, the Federal government imposed a moratorium on development in the Natomas basin until the levees protecting it could be inspected and strengthened. The moratorium lasted 7 years. It was lifted in 2015.

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Figure 4: Forecast for Development of Single-Family Dwellings

0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
Single-Family Housing Units
Sacramento
County
City of
Sacramento
City of
Elk Grove
City of
Folsom
City of
Rancho
Cordova
City of
Citrus
Height
City of
Galt
Sacramento
County
City of
Sacramento
City of
Elk Grove
City of
Folsom
City of
Rancho
Cordova
City of
Citrus
Height
City of
Galt
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Figure 5: Forecast for Development of Multi-Family Dwellings

0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
Multi-Family Housing Units
Sacramento
County
City of
Sacramento
City of
Elk Grove
City of
Folsom
City of
Rancho
Cordova
City of
Citrus
Height
City of
Galt
Sacramento
County
City of
Sacramento
City of
Elk Grove
City of
Folsom
City of
Rancho
Cordova
City of
Citrus
Height
City of
Galt
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Figure 6: Forecast for Non-Residential Development

5.8 MSF
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Table 3: Computation of Average Rate for Commercial/Retail Uses

Table 4: Computation of Average Rate for Industrial Uses

Table 5: Computation of Average Rate for Warehouse/Self Storage Uses

Table 6: Computation of Average Rate for Lodging Uses

Daily Trip-
Gen Rate
Pass-by
Credit
Net Daily
Trip-Gen
Rate
Estimated
% Square
Footage
Weighted
Average
ADT's
(A) (B) (C)=(A)*(1-B) (D) (E)=(C)*(D)
Shopping Center (>150k) 820 KSF 37.01 40% 22.21 40% 8.88 Convenience Store* 851 KSF 762.28 56% 335.40 11% 36.89
Fine Dining Restaurant 931 KSF 83.84 44% 46.95 15% 7.04 Fast-Food Restaurant 933 KSF 450.49 55% 202.72 5% 10.14 Automobile Sales (new
vehicles) 840 KSF 27.84 0% 27.84 6% 1.67
Home Improvement
Superstore 862 KSF 30.74 42% 17.83 15% 2.67
Drive-In Bank 912 KSF 100.35 35% 65.23 8% 5.22
Combined Rate 100.00% 72.52
* Pass-by rate taken from land use 945, Convenience Store/Gas Station The Estimated % Square Footage is from the 2006 Nexus Study, Appendix E.

ITE Description ITE
Code Unit
General Light Industrial 110 KSF 4.96
Industrial Park 130 KSF 3.37
Manufacturing 140 KSF 3.93
Average Rate 4.09
Daily Trip-
Gen RateUnitIndustrial Land Uses ITE
Code
Warehouse Uses ITE
Code Unit Daily Trip-
Gen Rate
High-Cube Warehouse 154 KSF 1.40
Self Storage 151 KSF 1.45
Average Rate 1.43
Hotel 310 Room 7.99
Business Hotel 312 Room 4.02
Motel 320 Room 3.35
Average Rate 5.12
Lodging Land Uses ITE
Code Unit Daily Trip-
Gen Rate
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Table 7: Trip-Generation Rates Used for Forecast of Traffic Growth

Table 8: Growth in Trips Generated in Sacramento County

SCTMFP Land Use Code ITE
Code Unit Daily Trip-
Gen Rate
Residential, Single Family 210 DU 9.44
Residential, Multi-Family 220 DU 6.74
Commercial, Retail Mixed KSF 72.52
Commercial, Office 710 KSF 10.84
Industrial Mixed KSF 4.09
Hospital/Medical 610 KSF 10.77
Warehouse/Self Storage Mixed KSF 1.43
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3.3 Volume-to-Capacity Ratios
For an impact fee to be collected, there must be a need for capacity improvements that are triggered by new development. Capacity deficiencies are identified using level of service (LOS) thresholds that are established in a jurisdiction’s general plan. The LOS policies of the 7 jurisdictions in Sacramento County are shown in Table 9.

Table 9: LOS Policies of Jurisdictions in Sacramento County Jurisdiction LOS Policy
Sacramento County “D" on rural roadways, “E” on urban roadways City of Sacramento* See note below
Elk Grove Not explicitly stated, but target delay at signalized intersections corresponds to LOS “D”
Folsom LOS “D”, with some exceptions allowed
Rancho Cordova LOS “D”, with some exceptions allowed
Citrus Heights LOS “E”, with some exceptions allowed
Galt LOS “C”, except “D” within ¼ mile of SR-99 interchanges *The City of Sacramento has adopted Traffic Impact Study Guidelines, which identify roadway volume service thresholds that approximate an equivalent LOS C/D threshold for roadway sizing.

As can be seen in Table 9, the predominant approach among Sacramento County jurisdictions is to maintain LOS “D” in most situations. This balances a reasonable degree of mobility with the need to keep the cost of infrastructure at an affordable level.

Table 10 shows the volume-to-capacity (V/C) ratio for the Measure A roadway projects that have not yet been constructed. The volumes assume that the forecast new growth occurs and the capacity assumes that no improvements are made to the roadway network. For context, a V/C ratio between 0.9 and 1.0 indicates LOS “E” and a V/C ratio greater than 1.0 indicates LOS “F.” For every project on the list, new growth worsens the V/C ratio. And in every case but one, the V/C ratio would be worse than the acceptable threshold of 0.90, which is the upper limit of LOS “D”. Based on these results, we determined that new development causes or contributes to the deficiencies triggering every project listed in Table 10 except for A25SC.

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Table 10: Volume-to-Capacity Ratios for Measure A Road Projects

Existing Existing +
Growth
A. LOCAL ARTERIAL PROGRAM
Antelope Road: Watt - Rosev ille Rd A01SC Sac County 1.31 1.32 Arden Way: ITS improv ements Ethan Way-Fair Oaks Blv d A05SC Sac County 1.15 1.22 Bradshaw Road: Grant Line-Folsom Blv d A06EG Elk Grove 1.39 1.50 Bradshaw Road: Calv ine-Old Placerv ille Rd A08SC Sac County 1.40 1.53 Elk Grov e Blv d: Big Horn-Waterman A11EG Elk Grove 1.11 1.30 Folsom Blv d: Watt Av e. - Bradshaw Rd A13SC Sac County 1.01 1.04 I-5/SR 99/SR 50 Connector A16JP1 CSCA JPA 1.09 1.26
Greenback Lane: (Fair Oaks Blv d – Main Av e) – Phase 1 A17SC Sac County 1.01 1.03 Greenback Lane: (Fair Oaks Blv d – Main Av e) – Phase 2 A19SC Sac County 1.12 1.16 Hazel Av enue: Phase 2 (Madison Av e - Placer Co. Line) A22SC Sac County 1.23 1.25 Madison Av enue: Phase 2 (Hazel Av e – Greenback Lane) A25SC Sac County 0.67 0.71 Madison Av enue: Phase 3 (Watt Av e – Sunrise Blv d) A26SC Sac County 1.44 1.48 S Watt/Elk Grov e-Florin Road: Phase 2 (Folsom Blv d – Calv ine Rd)A28SC Sac County 1.43 1.66 Sheldon Road: Elk Grove-Florin - Bradshaw A30EG2 Elk Grove 0.98 1.17 Sunrise Blv d: Jackson Rd - Grant Line Rd A31SC Sac County 0.85 0.99 Sunrise Blv d: Madison Av e. - Gold Country Rd A33SC Sac County 1.17 1.22 Watt Av e: Antelope-Capital City Freeway A37SC Sac County 1.19 1.24 C. FREEWAY SAFETY AND CONGESTION RELIEF PROGRAM
I-5 Bus/Carpool Lanes: Phase 1 from Elk Grov e to US 50 A45CT1 Caltrans 1.05 1.17 I-5 Bus/Carpool Lanes: Phase 2 from US 50 to I-80 A45CT2 Caltrans 1.26 1.35 SR 50 Bus/carpool lanes (Sunrise to Downtown): Phase 2 A47CT Caltrans 1.06 1.10 I-5/I-80 IC upgrade & carpool lane connector w/ carpool lanes A51CT Caltrans 1.05 1.11 Richards Blv d./I-5 interchange upgrade A52CS City of Sac 0.95 1.02 E. SMART GROWTH INCENTIVE PROGRAM
I-5/SR 99/SR 50 Connector, $5 million for the Cosumnes Riv er Permanent Open Space Preserv e A16JP3 CSCA JPA 1.16 1.33 F. TRANSPORTATION PROJECT ENVIRONMENTAL MITIGATION PROGRAM I-5/SR 99/SR 50 Connector, $5 million for the Cosumnes Riv er Permanent Open Space Preserv e A16JP4 CSCA JPA 1.16 1.33 Volume/Capacity Ratio
Project Name STA
Project # Jurisdiction
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3.4 Project Cost Estimates
As can be seen in the Measure A project list in Table 11, since its passage, 19 Measure A projects have been completed and will need no further funding from the SCTMF Program. Additionally, 7 projects have been dropped from the list for one reason or another, and will also not need SCTMF Program funding.

Member agencies were asked to provide their most recent cost estimates for the remaining projects. These estimates, shown in Column A of Table 11, were developed in different years and were adjusted to reflect current construction prices. Per STA policy, this adjustment used the Engineering News Record Construction Cost Index (ENR CCI) overall annual average. Table 12 shows how the construction cost inflator was developed from the price indices for all 20 cities reported in ENR’s survey of construction prices nationwide.

ITEM 11
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Table 11: Updated Project Costs

STA
Project # Jurisdiction Most Recent
Cost Estimate
Year of Most
Recent Cost
Estimate
Cost
Inflation
Factor
Updated
Project Cost
(A) (B) (C) = (A)*(B)
A. LOCAL ARTERIAL PROGRAM
Antelope Road: Watt - Rosev ille Rd A01SC Sac County $5,349,275 2019 1.18 $6,333,993 Antelope Road: Rosev ille Rd - I-80 A02CH Citrus Heights Completed Antelope Road: I-80 - Auburn Blv d A03CH Citrus Heights $26,000,000 2022 1.03 $26,702,045 Arden Way: ITS improv ements Ethan Way-Fair Oaks Blv d A05SC Sac County $4,944,101 2009 1.56 $7,706,291 Arden Way: ITS improv ements Del Paso-Ethan Way A04CS City of Sac Not Planned Bradshaw Road: Grant Line-Folsom Blv d A06EG Elk Grove $27,765,597 2022 1.03 $28,515,317 Bradshaw Road: Calv ine-Florin A07SC Sac County Completed Bradshaw Road: Calv ine-Old Placerv ille Rd A08SC Sac County $197,396,000 2009 1.56 $307,677,965 Brucev ille Road: Sheldon-Cosumnes Riv er Blv d A09CS City of Sac Not Planned Cosumnes Riv er Blv d: I-5-Franklin Blv d A10CS City of Sac Completed Elk Grov e Blv d: Big Horn-Waterman A11EG Elk Grove $6,348,910 2022 1.03 $6,520,342 Folsom Blv d: 65th-Watt A12CS City of Sac Not Planned
Folsom Blv d: Watt Av e. - Bradshaw Rd A13SC Sac County $40,698,159 2019 1.18 $48,190,055 Folsom Blv d Streetscape: Phase 1 (Bradshaw to Sunrise) A14RC1 Rancho Cordova Completed Folsom Blv d Streetscape: Phase 2 (Bradshaw to Sunrise) A14RC2 Rancho Cordova Completed Folsom Bridge Crossing A15FS Folsom Completed
I-5/SR 99/SR 50 Connector A16JP1 CSCA JPA $504,000,000 2022 1.03 $517,608,881 I-5/SR 99/SR 50 Connector, $5 million for the Cosumnes Riv er Permanent Open Space Preserv eA16JP2 CSCA JPA Completed Greenback Lane: (Fair Oaks Blv d – Main Av e) – Phase 1 A17SC Sac County $41,716,000 2022 1.03 $42,842,405 Greenback Lane: (Fair Oaks Blv d – Main Av e) – Phase 2 A19SC Sac County $68,500,035 2019 1.18 $81,109,823 Greenback Lane: I-80-Manzanita Av e A20SC Sac County $15,000,000 2009 1.56 $23,380,258 Greenback Lane: (West City Limit to Fair Oaks Blv d) A18CH Citrus Heights Completed Hazel Av enue: Phase 1 (US 50 – Madison Av e) A21SC Sac County Completed Hazel Av enue: Phase 2 (Madison Av e - Placer Co. Line) A22SC Sac County $83,121,000 2019 1.18 $98,422,280 Hazel Av enue: (US Highway 50 – Folsom Blv d) A23SC Sac County $105,000,000 2022 1.03 $107,835,183 Madison Av enue: Phase 1 (Sunrise Blv d – Hazel Av e) A24SC Sac County $30,381,000 2022 1.03 $31,201,340 Madison Av enue: Phase 3 (Watt Av e – Sunrise Blv d) A26SC Sac County $90,411,746 2009 1.56 $140,923,332 S Watt/Elk Grov e-Florin Road: Phase 1 (Folsom Blv d – Calv ine Rd)A27SC Sac County $53,000,000 2022 1.03 $54,431,093 S Watt/Elk Grov e-Florin Road: Phase 2 (Folsom Blv d – Calv ine Rd)A28SC Sac County $180,111,556 2009 1.56 $280,736,981 Elk Grov e - Florin Rd (Calv ine Rd - Elk Grov e Blv d) A29EG1 Elk Grove Not Planned Elk Grov e - Florin Rd (Calv ine Rd - Sheldon Rd) A29EG2 Elk Grove $2,495,550 2022 1.03 $1,617,116 Elk Grov e - Florin Rd (Calv ine Road – Old Placerv ille Road) A29EG3 Elk Grove Not Planned Sheldon Road: Brucev ille-Elk Grov e-Florin A30EG1 Elk Grove Not Planned Sheldon Road: Elk Grove-Florin - Bradshaw A30EG2 Elk Grove 8,551,924 2022 1.03 $8,782,841 Sunrise Blv d: Jackson Rd - Grant Line Rd A31SC Sac County $33,883,638 2019 1.18 $40,121,087 Sunrise Blv d: (Gold Country Road-Jackson Rd)** A32RC Rancho Cordova Completed Sunrise Blv d: Madison Av e. - Gold Country Rd A33SC Sac County $43,518,800 2019 1.18 $51,529,932 Sunrise Blv d: Phase 2 (Greenback Lane – Oak Av e) A35CH Citrus Heights $8,300,000 2022 1.03 $8,524,115 Sunrise Blv d: Phase 1 (Oak Av e - Antelope Rd) A34CH Citrus Heights Completed Sunrise Blv d: Phase 3 (Antelope Rd – City Limit) A36CH Citrus Heights $6,400,000 2022 1.03 $6,572,811 Watt Av e: Antelope-Capital City Freeway A37SC Sac County $82,909,270 2019 1.18 $98,171,573 Project Name
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Table 11: Updated Project Costs (continued)

STA
Project # Jurisdiction Most Recent
Cost Estimate
Year of Most
Recent Cost
Estimate
Cost
Inflation
Factor
Updated
Project Cost
(A) (B) (C) = (A)*(B)
B. TRANSIT CAPITAL IMPROVEMENT PROGRAM
Downtown Intermodal Station A38CS City of Sac $400,000,000 2023 1.00 $400,000,000 LRT extension (Meadowv iew Rd. to Cosumnes Riv Blv d) A39RT SacRT Completed Regional Rail Commuter Serv ice A40RT SacRT Not Planned LRT extension to Airport (planning/env iro/design only) A41RT SacRT $7,195,809 2022 1.03 $7,390,108 LRT improv ements in I-80 Corridor A42RT SacRT Completed C. FREEWAY SAFETY AND CONGESTION RELIEF PROGRAM
Bus/carpool ramp connection (SR-50E to SR-99S) A43CT Caltrans $300,000,000 2022 1.03 $308,100,524 I-80 Bus/carpool lanes (I-5 to Capital City Fwy) A44CT Caltrans Completed I-5 Bus/Carpool Lanes: Phase 1 from Elk Grov e to US 50 A45CT1 Caltrans Completed I-5 Bus/Carpool Lanes: Phase 2 from US 50 to I-80 A45CT2 Caltrans $90,000,000 2022 1.03 $92,430,157 Ramp widenings for connectors between SR 50 and I-5 A46CT Caltrans $300,000,000 2022 1.03 $308,100,524 SR 50 Bus/carpool lanes (Sunrise to Downtown): Phase 1 A47CT Caltrans Completed SR 50 Bus/carpool lanes (Sunrise to Downtown): Phase 2 A47CT Caltrans $128,000,000 2022 1.03 $131,456,224 Central Galt/SR 99 interchange upgrade A48GT Galt Completed Consumnes Riv er Blv d./I-5 interchange upgrade A49CS City of Sac Completed GrantLine Road/SR 99 interchange upgrades A50EG Elk Grove Completed I-5/I-80 IC upgrade & carpool lane connector w/ carpool lanes A51CT Caltrans $177,000,000 2022 1.03 $181,779,309 Richards Blv d./I-5 interchange upgrade A52CS City of Sac $115,000,000 2022 1.03 $118,105,201 Sheldon Road/SR99 Interchange Upgrade A53EG Elk Grove Completed Watt Av e/SR50 interchange upgrade A54SC Caltrans Completed E. SMART GROWTH INCENTIVE PROGRAM
Promotion of transit oriented dev elopment
I-5/SR 99/SR 50 Connector, $5 million for the Cosumnes Riv er Permanent Open Space Preserv e A16JP3 CSCA JPA $5,000,000 $5,000,000 F. TRANSPORTATION PROJECT ENVIRONMENTAL MITIGATION PROGRAM Env ironmental mitigation for Measure A transportation projects Open Space Acquisition
Natural habitat preserv ation
I-5/SR 99/SR 50 Connector, $5 million for the Cosumnes Riv er Permanent Open Space Preserv e A16JP4 CSCA JPA $5,000,000 $5,000,000 Total for All Projects > $3,582,819,108
Project Name
ITEM 11
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Table 12: Construction Cost Inflator

20-City Annual
Average
2009 8,570 1.56
2010 8,799 1.52
2011 9,070 1.47
2012 9,308 1.44
2013 9,547 1.40
2014 9,807 1.36
2015 10,035 1.33
2016 10,338 1.29
2017 10,737 1.24
2018 11,062 1.21
2019 11,281 1.18
2020 11,466 1.17
2021 12,133 1.10
2022 13,007 1.03
2023 13,358 1.00
Cost
InflatorYear
ENR Construction
Cost Index
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4. Updated Fee Calculation

4.1 Consideration of Residential Floor Area
The State of California has instituted a new policy4 pertaining to fees on residential developments. California Government Code Section 66016.5(a)(5), which is new with the enactment of AB 602, states that, “(A) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A local agency that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development. (B) A nexus study is not required to comply with subparagraph (A) if the local agency makes a finding that includes all of the following:
(i) An explanation as to why square footage is not an appropriate metric to calculate fees imposed on housing development project.
(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development. (iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees. (C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.”
AB 602 applies to impact fee programs generally and was not tailored to fit circumstances specific to transportation impact fees. Web research revealed that there are currently no well-established sources for trip generation rates based on residential unit size. However, data on the number of persons per household can be obtained from the U.S. Census Bureau’s American Housing Survey, and data on the number of trips by household size is available from NCHRP Report 716, Travel Demand Forecast: Parameters and Techniques. This data was combined, as shown in Table 13, to estimate trip generation rates by residential unit size. The residential unit size categories were determined in coordination with the working group including the local agencies that have adopted the SCTMF Program. The data is based on single-family homes; the average size for a single-family home in Sacramento County is 2,255 sq. ft.

As can be seen in Table 13, although the trip generation rate is related to the size of the residence, it is not directly proportionate to the floor area, as is assumed in Section 66016.5(a)(5)(A). We recommend that STA therefore find, pursuant to Section 66016.5(a)(5)(B)(i), that it would not be appropriate to use square footage directly as the metric of traffic impacts for the purposes of the SCTMF Program. It should instead find, pursuant to Section 66016.5(a)(5)(B)(ii), that the data supports fees based on the relationships shown in the bottom row of Table 13 for new very small, small, medium-small, medium, and large-sized homes. It should further find, pursuant to Section 66016.5(a)(5)(B)(iii), that these relationships would ensure that smaller units would not be charged disproportionate fees compared to larger units.

4 Assembly Bill 602, signed into law in September 2021.

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CGC Section 66016.5(a)(5)(C) allows agencies to establish different fees for different types of developments. As a matter of policy, STA determined that fees on multi-family housing should be set lower than those of single-family dwellings, in recognition of their low trip generation rates. The rates for multi-family and senior age-restricted housing were therefore calculated based on their respective daily trip-generation rates found in the ITE Trip Generation Manual. The average size for multifamily units in Sacramento County is less than 1,200 sq. ft., so the ITE rate for them, which represents the average unit, was used to compute the “Small” values for these dwelling types. The ratios between the trip-generation rates for the size categories are found in the bottom row of Table 13.

Table 13: Computation of Average Trip Generation by Dwelling Size Category

Number
of Units
Percent of
Units Trips Number
of Units
Percent of
Units Trips Number
of Units
Percent of
Units Trips Number
of Units
Percent of
Units Trips Number
of Units
Percent of
Units Trips
(A) (B) (C)=(B)*Σ(B) (D)=(A)*(C) (E) (F)=(E)*Σ(E) (G)=(A)*(F) (H) (I)=(H)*Σ(H) (J)=(A)*(I) (K) (L)=(K)*Σ(K) (M)=(A)*(L) (N) (O)=(N)*Σ(N) (P)=(A)*(O) 1 4.1 32,110 7,889 55% 2.26 8,648 36% 1.46 6,421 28% 1.15 6,264 20% 0.81 2,888 12% 0.50 2 8.2 40,531 3,737 26% 2.14 8,092 33% 2.74 8,027 35% 2.87 11,767 37% 3.04 8,908 38% 3.10 3 11.2 17,618 1,307 9% 1.02 3,449 14% 1.59 3,618 16% 1.77 5,546 17% 1.96 3,699 16% 1.76 4 16.1 15,389 834 6% 0.94 2,370 10% 1.57 2,837 12% 1.99 4,745 15% 2.41 4,602 20% 3.15 5 18.6 7,046 334 2% 0.43 1,078 4% 0.83 1,267 6% 1.03 2,205 7% 1.29 2,162 9% 1.71 6 18.6 2,625 106 1% 0.14 408 2% 0.31 485 2% 0.39 792 2% 0.46 834 4% 0.66 7+ 18.6 1,476 97 1% 0.13 214 1% 0.16 277 1% 0.22 443 1% 0.26 445 2% 0.35 Total 116,795 14,305 100% 7.06 24,258 100% 8.67 22,933 100% 9.42 31,760 100% 10.22 23,539 100% 11.23 Average
Persons
per
Household 2.07
Sources: Column (A) - NCHRP Report 716, Columns (B), (E), and (H) - American Housing Survey, 2021 National Household Demographics Notes: 1,601-2,400 sq.ft. is assumed to be the SFD Average unit size range, based on average size of single family homes in the United States from various sources including statisa.com Persons
per
Household
Trips per
Household Total
Very Small Small Medium-Small Medium Large

1.64 1.94 2.06 2.19 2.30
≤ 800 sq.ft 801 to 1,200 sq.ft 1,201 to 1,600 sq.ft 1,601 to 2,400 sq.ft > 2,400 sq.ft Trip-Gen Rate as a % of SFD
Average 69% 85% 92% 100% 110%
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Table 13 was then used to compute the dwelling unit equivalents (DUEs) for different sizes of single-family, multi-family, and senior age-restricted housing. As with single-family dwellings, the use of size categories accords with the intent of Section 66016.5(a)(5)(B)(iii) that smaller units are not charged disproportionate fees compared to larger units.

Table 14: Computation of DUEs by Size and Dwelling Type

4.1.1 Accessory Dwelling Units (ADUs)
In addition to the considerations discussed above pursuant to AB 602, a separate piece of legislation, SB 13, passed in 2019, establishes a new system for assessing fees on accessory dwelling units (ADUs). It amended CGC Section 65852.2(3)(A)(f)(3) to read,
“A local agency, special district, or water corporation shall not impose any impact fee upon the development of an accessory dwelling unit less than 750 square feet. Any impact fees charged for an accessory dwelling unit of 750 square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit.”
Based on this subsection, if an ADU is smaller than 750 square feet it is exempt from the SCTMF. Fees on ADUs larger than 750 square feet require a two-part calculation. First, the SCTMF that would be charged to the primary dwelling unit is calculated, then the fee on the ADU is computed based on the ratio of its floor area to the primary dwelling unit. For example, if the primary dwelling unit were 2,000 sq. ft. and would be charged a fee of $800, then an ADU 1,000 sq. ft. in size on that property would be charged a fee of $400 (50% of the size, so 50% of the fee).

4.2 Computing the Maximum Allowable Fee
The methodology used to update the fee schedule repeated the first nine steps in the previous nexus study as shown in Figure 2, except that all inputs were updated as described in Chapter 3 of this report.

Table 15 shows how the updated project costs from Table 11 were combined with the updated forecast for new growth from Table 8 to compute the maximum allowable project cost attributable to each vehicle trip generated by new development in Sacramento County. Additionally, Table 15 computes the maximum allowable cost per DUE, based on the Fee per New Vehicle Trip and the trip generation rate of a single- family home from Table 7. Table 15 also reflects that the SCTMF has already spent some funds for projects that are in development but are not yet complete. This reduces the amount of funding needed from future development.

Very
Small
(≤ 800
sq.ft.)
Small
(801-1200
sq.ft.)
Medium-
Small
(1,201-
1,600
sq.ft.)
Medium
(1,601-
2,400
sq.ft.)
Large
(>2,400
sq.ft.)
Single-Family Residential 9.44 100% 0.69 0.85 0.92 1.00 1.10 Single-Family Residential, Senior 4.31 46% 0.32 0.39 0.42 0.46 0.50 Multi-Family Residential 7.32 78% 0.63 0.78 0.84 0.91 1.01 Multi-Family Residential, Senior 3.24 34% 0.28 0.34 0.37 0.40 0.44 Dwelling Type
ITE 11th
Edition Trip-
Gen Rate
(Daily)
Average Unit
as % of
Average SFD
Trip-Gen Rate
Dwelling Unit Equivalents
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Table 15: Calculation of Fee per New Vehicle Trip (for Roads) and Per New Dwelling Unit Equivalent (for Roads and Transit)

4.3 Recommended Fee by Land Use Category
The next step is to compute the maximum allowable fee for each unit of new development. For residential uses, this is done by multiplying the DUE rates for each dwelling size shown in Table 14 by the fee per new DUE shown in Table 15.

Table 16 shows both the maximum allowable and proposed fee schedule for residential developments after the size adjustments shown in Table 14 were applied. Per the Measure A Ordinance, fees for uses that are not the average single-family unit (medium size) “shall be proportionate to the trip generation rate of the affected land use relative to the trip generation rate of a single family [sic] unit.” The DUEs presented in Table 14 take into account the trip generation rates proportionate to the average single-family unit. Therefore, the proposed road cost per DUE and proposed fee per unit shown in Table 16 is calculated based on the current fee for the medium size single-family unit (equal to 1.00 DUE).

One notable feature of the table that is worth explaining is that the fees for multi-family dwellings (MFDs) increased more than the rates for single-family dwellings (SFDs). The reason is that trip generation rates for SFDs have decreased since 2006 as the average household size and the average number of working adults have declined for this housing type. On the other hand, the trip generation rate for MFDs has risen over the same period as fewer growing families have been able to move into SFDs due to affordability issues. The result is that MFDs have a relatively greater impact on roadway congestion than in the past.

The fees for non-residential developments are shown in Table 17. The cost per new trip generated from Table 15 was multiplied by the trip generation rates from Table 7 to produce the maximum allowable fee for each land use type. As stated previously, one of the purposes of this nexus study is to ensure that proposed fees are defensible. In other words, that the proposed fees are less than the maximum allowable fees.

The proposed fees, to comply with Measure A, are based on the escalated cost of $1,000 per SFD originally established in 2006. Accordingly, the proposed SFD fee in 2023 dollars is $1,574 per average SFD, which falls in the medium SFD size category in the revised fee schedule. Using the proposed fee per SFD ($1,574 per unit) we can calculate the proposed cost per trip to be $167 based on the daily trip generation rate for a single-family home (9.44). The proposed fee per unit is then calculated by multiplying the proposed cost per trip by the trip generation rate (column A). One noticeable aspect of Table 17 is that the percentage change in fee differs substantially for different development types. This arises from the fact that the trip generation rates for different land use categories have changed over time as travel behaviors and markets evolve.

Maximum
Permissible
SCTMF
Funding
SCTMF
Funding
Already Spent
Maximum
Permissible
Future SCTMF
Funding
(A) (B) (C) = (A) - (B)
Total for Local Arterial Program $107,274,039 $34,738,980 $72,535,059 Total for Connectors and Carpool Lanes $57,224,537 $870,874 $56,353,663 Total for Local Freeway Interchange Projects $12,652,662 $696,441 $11,956,221 Total for All Roadway Projects > $177,151,238 $36,306,295 $140,844,943 Total Number of Vehicle Trips from Future Growth > 760,097 Fee per New Vehicle Trip > $185
Fee per New Dwelling Unit Equivalent (DUE) > $1,749
Total for All Transit Projects > $35,550,125 $12,095,221 $23,454,904 Forecast Number of New Dwelling Units > 55,825
Fee per New Dwelling Unit Equivalent (DUE) > $420
Project Class
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Table 16: Fees for Residential Developments

Dwelling
Unit
Equivalent
(DUE)
Maximum
Allowable
Road Fee
per DUE*
Maximum
Allowable
Transit Fee
per DUE*
Total
Maximum
Allowable
Fee per
DUE*
Maximum
Allowable
Fee per
Unit
Proposed
Cost per
DUE**
Proposed
Fee per
Unit
FY 24/25
Fee per
Unit
Change in
Fee
% Change
in Fee
(A) (B) (C) (D)=(B)+(C) (E)=(A)*(D) (F) (G)=(A)*(F) (H) (I)=(G)-(H) (J)=(I)/(H) Single-Family Residential 210
Very Small (≤ 800 sq.ft.) 0.69 $1,749 $420 $2,169 $1,499 $1,574 $1,088 $1,574 ($486) -31% Small (801-1200 sq.ft.) 0.85 $1,749 $420 $2,169 $1,839 $1,574 $1,334 $1,574 ($240) -15% Medium-Small (1,201-1,600 sq.ft.) 0.92 $1,749 $420 $2,169 $2,000 $1,574 $1,451 $1,574 ($123) -8% Medium (1,601-2,400 sq.ft.) 1.00 $1,749 $420 $2,169 $2,169 $1,574 $1,574 $1,574 $0 0% Large (>2,400 sq.ft.) 1.10 $1,749 $420 $2,169 $2,384 $1,574 $1,730 $1,574 $156 10% Single-Family Residential, Senior 251
Very Small (≤ 800 sq.ft.) 0.32 $1,749 $420 $2,169 $685 $1,574 $497 $1,260 ($763) -61% Small (801-1200 sq.ft.) 0.39 $1,749 $420 $2,169 $840 $1,574 $609 $1,260 ($651) -52% Medium-Small (1,201-1,600 sq.ft.) 0.42 $1,749 $420 $2,169 $913 $1,574 $663 $1,260 ($597) -47% Medium (1,601-2,400 sq.ft.) 0.46 $1,749 $420 $2,169 $990 $1,574 $719 $1,260 ($541) -43% Large (>2,400 sq.ft.) 0.50 $1,749 $420 $2,169 $1,089 $1,574 $790 $1,260 ($470) -37% Multi-Family Residential 220
Very Small (≤ 800 sq.ft.) 0.63 $1,749 $420 $2,169 $1,371 $1,574 $995 $1,101 ($106) -10% Small (801-1200 sq.ft.) 0.78 $1,749 $420 $2,169 $1,682 $1,574 $1,221 $1,101 $120 11% Medium-Small (1,201-1,600 sq.ft.) 0.84 $1,749 $420 $2,169 $1,829 $1,574 $1,327 $1,101 $226 21% Medium (1,601-2,400 sq.ft.) 0.91 $1,749 $420 $2,169 $1,984 $1,574 $1,440 $1,101 $339 31% Large (>2,400 sq.ft.)*** 1.01 $1,749 $420 $2,169 $2,181 $1,574 $1,582 $1,101 $481 44% Multi-Family Residential, Senior 252
Very Small (≤ 800 sq.ft.) 0.28 $1,749 $420 $2,169 $607 $1,574 $440 $943 ($503) -53% Small (801-1200 sq.ft.) 0.34 $1,749 $420 $2,169 $745 $1,574 $540 $943 ($403) -43% Medium-Small (1,201-1,600 sq.ft.) 0.37 $1,749 $420 $2,169 $810 $1,574 $587 $943 ($356) -38% Medium (1,601-2,400 sq.ft.) 0.40 $1,749 $420 $2,169 $878 $1,574 $637 $943 ($306) -32% Large (>2,400 sq.ft.)*** 0.44 $1,749 $420 $2,169 $965 $1,574 $700 $943 ($243) -26% Accessory Dwelling Units
Very Small (<750 sq.ft.)
Otherwise (>750 sq.ft.)
* Maximum Allowable Cost and Fee Calcaluated for Nexus Study ** Proposed Road Cost per DUE is equal to the medium-sized single family dwelling unit fee for FY 24/25 to comply with Measure A. *** No multi-family units of this size have been built in Sacramento County in the last 5 years Note: For residential uses that are anticipated to have unique trip generation characteristics, such as those near transit or those with restricted parking, see Operating Protocols for fee calculation procedures.

Fee is based on the ratio of the floor area of the ADU compared to the primary unit, times the fee that would be charged on the primary unit, if the primary unit was being newly built.

Exempt from fee
Development Type ITE
Code
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Table 17: Updated Fees by Non-Residential Development Type

Trip
Generation
Rate
Maximum
Allowed
Cost per
Trip
Maximum
Allowed
Fee per
Unit
Proposed
Cost per
Trip
Proposed
Fee per
Unit
FY 24/25
Fee per
Unit
Change in
Fee
% Change
in Fee
(A) (B) (C)=(A)*(B) (D) (E) (F) (G)=(E)-(F) (H)=(G)/(F) Office Use 710 KSF 10.84 $185 $2,009 $167 $1,807 $1,890 ($83) -4% Retail Use* KSF NA $2,624 $2,361 $2,362 ($1) 0%
Industrial Use 110 KSF 4.96 $185 $919 $167 $827 $1,260 ($433) -34% Hotel/Motel Mixed sleeping room 5.12 $185 $949 $167 $854 $912 ($58) -6% Extended Stay Hotel/Motel 320 sleeping room 3.35 $185 $621 $167 $559 $810 ($251) -31% Hospital 610 KSF 10.77 $185 $1,996 $167 $1,796 $2,639 ($843) -32% Service Station** 944 Fuel Pump 20.64 $185 $3,825 $167 $3,442 $2,047 $1,395 68% Supermarket* KSF NA $2,624 $1,078.0 $2,362 ($1,284) -54% Warehouse/Self-Storage Mixed KSF 1.43 $185 $264 $167 $238 $394 ($156) -40% Assisted Living Facility 254 bed 2.60 $185 $482 $167 $434 $454 ($20) -5% Congregate Care 253 unit 2.21 $185 $410 $167 $368 $333 $35 11% Child Day Care 565 Student 4.09 $185 $758 $167 $682 $725 ($43) -6% Private School (K-12) 532 Student 2.48 $185 $460 $167 $414 $410 $4 1% Auto Repair/Body Shop* KSF NA $2,624 $2,361 $2,362 ($1) 0% Gym/Fitness Center* KSF NA $2,624 $2,361 $2,362 ($1) 0% Drive-through Car Wash* KSF NA $2,624 $2,361 $2,362 ($1) 0% All Other Trip $185 $167 $167 ($0) 0%
* Fee set by Board policy at 1.5 times the rate for Single-Family Dwellings for 1 KSF of retail ** Trip generation rate includes a reduction for pass-by trips, per ITE Development Type ITE Code Unit
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4.4 Funding from Other Sources
As was discussed in the earlier sections, the SCTMF will provide only a portion of the funding required to implement the Measure A project list. The remainder must come from some other source. As is always the case with decades-long programs like the SCTMF, funding opportunities come and go with the passage of individual infrastructure funding acts, so there is always a degree of uncertainty regarding future funding.

That said, the amount of grant funding provided to the Measure A projects that have been completed provides a general idea of grant funding that may be available in the future.

Table 18 shows the amount of grant funding used for individual projects that have now been completed.

These have been grouped into four programs because the amount of grant funding often differs depending on the type of project. For example, Table 18 shows that local arterial projects have on average received 60% grant funding while transit capital improvements have received 80% grant funding.

Table 19 compares the amount of grant funding needed with the grant funding that has been historically available. In most cases, the amount needed and the amount received are roughly consistent. The sole exception is the Local Freeway Interchange Congestion Relief Upgrades program, where STA may need to seek additional funding from local jurisdictions if sufficient grant funding does not materialize.

4.4.1 Funding from Local Jurisdictions
Local funding (jurisdiction funding) is all funding identified for a project that is not grant funding or SCTMF funding. However, this may include Measure A sales tax funding.

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Table 18: Grant Funding for Completed Measure A Projects

Primary Project Sub Project Total Project Cost Third Party Grant Expenditures
Antelope Road Watt Ave to Auburn Blvd. Roseville Rd. to I-80 Phase 1 12,397,000 6,200,000 Bradshaw Rd. Grantline Rd. to Folsom Blvd. Calvine Rd. to Florin Rd. Phase 1 19,547,000 - Folsom Blvd: 65th St. to Sunrise Blvd. Bradshaw Rd. to Sunrise Blvd. Phase 1 4,759,152 3,659,000 Bradshaw Rd. to Sunrise Blvd. Phase 2 14,667,761 10,805,860 Bradshaw Rd. to Sunrise Blvd. Phase 3 6,836,770 2,724,000 Bradshaw Rd. to Sunrise Blvd. Phase 4 5,062,000 4,838,000 Bradshaw Rd. to Sunrise Blvd. Phase 5 6,100,000 5,500,000 Folsom Bridge Crossing Folsom Bridge Crossing 145,851,098 100,152,288 Consumnes River Permanent Open Space Preserve Consumnes River Permanent Open Space Preserve 5,000,000 - Greenback Ln. I/80 to Auburn/Folsom Rd. West City Limit to Fair Oaks Blvd. 19,176,000 16,188,000 Sunrise Blvd. Placer Co. to Grant Line Rd. Folsom Blvd to White Rock Rd 7,735,000 - Sunrise Blvd. Placer Co. to Grant Line Rd. Oak Ave. to Antelope Rd. Phase 1 5,178,000 650,000 Sunrise Blvd. Placer Co. to Grant Line Rd. Greenback Ln. to Oak Ave Phase 2 2,250,000 840,800 254,559,781 151,557,948
Percent of Grant Funding 60%
South Sac LRT Extension South Sac LRT Extension 270,000,000 240,312,246 DNA LRT Extension DNA LRT Extension 49,000,000 14,711,845 LRT I-80 Corridor Improvements LRT I-80 Corridor Improvements 247,200 - 319,247,200 255,024,091
Percent of Grant Funding 80%
I-80 I-5 to Capital City Freeway I-80 I-5 to Capital City Freeway 63,259,688 62,537,000 Hwy 50 Bus/Carpool Lanes Surise Blvd. to Downtown Sunrise Blvd. to Downtown Phase 1 100,406,202 67,612,969 163,665,890 130,149,969
Percent of Grant Funding 80%
Cosumnes Blvd. I-5 Interchange Cosumnes Blvd. I-5 Interchange 85,315,164 31,009,376 Central Galt Interchange Central Galt Interchange 50,641,711 13,962,875 Grantline Rd. Hwy 99 Interchange Upgrade Grantline Rd. Hwy 99 Interchange Upgrade 77,400,000 - Sheldon Rd. Hwy 99 Interchange Upgrade Sheldon Rd. Hwy 99 Interchange Upgrade 73,470,838 20,801,000 Watt Ave. Hwy 50 Interchange Watt Ave. Hwy 50 Interchange 38,318,000 26,962,680 325,145,713 92,735,931
Percent of Grant Funding 29%
Local Freeway Interchange Congestion Relief Upgrades Total Rail Transit Improvements Total
Regional Bus/Carpool Lane Connectors/Extensions Total

LOCAL FREEWAY INTERCHANGE CONGESTION RELIEF UPGRADES
A. LOCAL ARTERIAL PROGRAM
B. TRANSIT CAPITAL IMPROVEMENT PROGRAM
C. FREEWAY SAFETY AND CONGESTION RELIEF PROGRAM
Local Arterial Program Total
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Table 19: Expected Grant Funding Needs for SCTMF-Funded Projects

STA Project # Jurisdiction Updated
Project Cost
% Attributable
to Regional
Growth
Maximum
Permissible Fee
Cost Based on %
Attributable
Funding from
Local
Jurisdiction
Funding
Needed from
Other Sources
(A) (B) (C)=(A)*(B) (D) (E)=(A)-(C)-(D)
A. LOCAL ARTERIAL PROGRAM
Antelope Road: Watt - Rosev ille Rd A01SC Sac County $6,333,993 5.6% $354,704 $2,066,509 $3,912,780 Antelope Road: I-80 - Auburn Blv d A03CH Citrus Heights $26,702,045 5.6% $1,495,315 $0 $25,206,731 Arden Way: ITS improv ements Ethan Way-Fair Oaks Blv d A05SC Sac County $7,706,291 5.6% $431,552 $2,000,000 $5,274,738 Bradshaw Road: Grant Line-Folsom Blv d A06EG Elk Grove $28,515,317 5.6% $1,596,858 $11,933,654 $14,984,805 Bradshaw Road: Calv ine-Old Placerv ille Rd A08SC Sac County $307,677,965 5.6% $17,229,966 $131,578,000 $158,869,999 Elk Grov e Blv d: Big Horn-Waterman A11EG Elk Grove $6,520,342 5.6% $365,139 $4,886,659 $1,268,544 Folsom Blv d: Watt Av e. - Bradshaw Rd A13SC Sac County $48,190,055 5.6% $2,698,643 $13,673,000 $31,818,412 I-5/SR 99/SR 50 Connector* A16JP1 CSCA JPA $517,608,881 5.6% $28,986,097 $25,000,000 $463,622,783 Greenback Lane: (Fair Oaks Blv d – Main Av e) – Phase 1 A17SC Sac County $42,842,405 5.6% $2,399,175 $16,716,000 $23,727,230 Greenback Lane: (Fair Oaks Blv d – Main Av e) – Phase 2 A19SC Sac County $81,109,823 5.6% $4,542,150 $45,750,000 $30,817,673 Greenback Lane: I-80-Manzanita Av e A20SC Sac County $23,380,258 5.6% $1,309,294 $5,000,000 $17,070,964 Hazel Av enue: Phase 2 (Madison Av e - Placer Co. Line) A22SC Sac County $98,422,280 5.6% $5,511,648 $58,121,000 $34,789,632 Madison Av enue: Phase 1 (Sunrise Blv d – Hazel Av e) A24SC Sac County $31,201,340 5.6% $1,747,275 $19,021,000 $10,433,065 Madison Av enue: Phase 3 (Watt Av e – Sunrise Blv d) A26SC Sac County $140,923,332 5.6% $7,891,707 $60,277,511 $72,754,114 S Watt/Elk Grov e-Florin Road: Phase 1 (Folsom Blv d – Calv ine Rd)A27SC Sac County $54,431,093 5.6% $3,048,141 $29,723,000 $21,659,951 S Watt/Elk Grov e-Florin Road: Phase 2 (Folsom Blv d – Calv ine Rd)A28SC Sac County $280,736,981 5.6% $15,721,271 $144,000,000 $121,015,710 Sheldon Road: Elk Grove-Florin - Bradshaw A30EG2 Elk Grove $8,782,841 5.6% $491,839 $5,541,646 $2,749,356 Sunrise Blv d: Jackson Rd - Grant Line Rd A31SC Sac County $40,121,087 5.6% $2,246,781 $22,589,092 $15,285,214 Sunrise Blv d: Madison Av e. - Gold Country Rd A33SC Sac County $51,529,932 5.6% $2,885,676 $29,027,039 $19,617,217 Sunrise Blv d: Phase 2 (Greenback Lane – Oak Av e) A35CH Citrus Heights $8,300,000 5.6% $464,800 $0 $7,835,200 Sunrise Blv d: Phase 3 (Antelope Rd – City Limit) A36CH Citrus Heights $6,400,000 5.6% $358,400 $0 $6,041,600 Watt Av e: Antelope-Capital City Freeway A37SC Sac County $98,171,573 5.6% $5,497,608 $55,550,000 $37,123,965 Total for Local Arterial Program $1,915,607,834 $107,274,039 $682,454,109 $1,125,879,686 Percent of Grant Funding Needed > 59%
Historical Level of Grant Funding > 60%
C. FREEWAY SAFETY AND CONGESTION RELIEF PROGRAM
Bus/carpool ramp connection (SR-50E to SR-99S) A43CT Caltrans $308,100,524 5.6% $17,253,629 $290,846,895 I-5 Bus/Carpool Lanes: Phase 2 from US 50 to I-80 A45CT2 Caltrans $92,430,157 5.6% $5,176,089 $8,500,000 $78,754,068 Ramp widenings for connectors between SR 50 and I-5 A46CT Caltrans $308,100,524 5.6% $17,253,629 $290,846,895 SR 50 Bus/carpool lanes (Sunrise to Downtown): Phase 2 A47CT Caltrans $131,456,224 5.6% $7,361,549 $124,094,675 I-5/I-80 IC upgrade & carpool lane connector w/ carpool lanes A51CT Caltrans $181,779,309 5.6% $10,179,641 $0 $171,599,668 Total for Connectors and Carpool Lanes $1,021,866,739 $57,224,537 $8,500,000 $956,142,201 Percent of Grant Funding Needed > 94%
Historical Level of Grant Funding > 80%
Project Name
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Table 19: Expected Grant Funding Needs for SCTMF-Funded Projects (continued)

STA Project # Jurisdiction Updated
Project Cost
% Attributable
to Regional
Growth
Maximum
Permissible Fee
Cost Based on %
Attributable
Funding from
Local
Jurisdiction
Funding
Needed from
Other Sources
(A) (B) (C)=(A)*(B) (D) (E)=(A)-(C)-(D)
Local Freeway Interchange Congestion Relief Upgrades
Richards Blv d./I-5 interchange upgrade A52CS City of Sac $118,105,201 5.6% $6,613,891 $25,000,000 $86,491,310 Hazel Av enue: (US Highway 50 – Folsom Blv d) A23SC Sac County $107,835,183 5.6% $6,038,770 $71,456,000 $30,340,413 Total for Local Freeway Projects $225,940,384 $12,652,662 $96,456,000 $116,831,723 Percent of Grant Funding Needed > 52%
Historical Level of Grant Funding > 29%
B. TRANSIT CAPITAL IMPROVEMENT PROGRAM 80%
Downtown Intermodal Station A38CS City of Sac $400,000,000 8.7% $34,905,242 $12,000,000 $353,094,758 LRT extension to Airport (planning/env iro/design only) A41RT SacRT $7,390,108 8.7% $644,884 $0 $6,745,225 Total for All Transit Projects > $407,390,108 $35,550,125 $12,000,000 $359,839,983 * The project cost for this project includes projects A16JP3 and A16JP4, which are mitigation components for project A16JP1. Percent of Grant Funding Needed > 88% Historical Level of Grant Funding > 80%
Project Name
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5. Mitigation Fee Act Findings
The Mitigation Fee Act, as set forth in the California Government Code Sections 66000 through 66008, establishes the framework for mitigation fees in the State of California. The Act requires agencies to make five findings with respect to a proposed fee. These are described in the sections below.

5.1 Purpose of the Fee
Identify the purpose of the fee
The Sacramento County Transportation Mitigation Fee is imposed on new development to ensure that it pays its fair share of roadway improvements, the need for which is triggered in whole or in part by new development.

5.2 Use of Fee Revenues
Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified
The projects to be funded through the SCTMF were approved by the voters of Sacramento County through Measure A. The projects expected to receive SCTMF revenues in the future are listed in Table 19.

5.3 Use/Type-of-Development Relationship
Determine the reasonable relationship between the fee’s use and the type of development project on which the fees are imposed
To determine the “use” relationship, the development being assessed an impact fee must be reasonably shown to derive some use or benefit from the facility being built using the fee. In the case of the SCTMF, the projects to be funded were selected because they performed a regional function and the need for the project was at least partially attributable to new development. The growth in vehicle trips and the increases in congestion at project sites (see Table 10) are evidence that new development contributes to the need for roadway improvements.

The fact that the projects that will be funded by the SCTMF are high-priority roads and transit means that all of the county’s new residents and businesses will benefit in important ways from the maintenance of a reasonable level of service. Most drivers in the new developments can be expected to use these roads regularly, and those that do not will nevertheless benefit because good traffic conditions on the SCTMF-funded roads will keep drivers from diverting to other roads and causing congestion in other parts of the county. Even residents or workers in the new developments who do not drive at all will benefit from access to goods and services made possible in part by the serviceability of the county road network.

5.4 Need/Type-of-Development Relationship
Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed
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new development. As is shown in Table 10, all of the projects that will receive SCTMF money are designed to address capacity deficiencies due at least in part to new development.

5.5 Proportionality Relationship
Determine how there is a reasonable relationship between the fee’s amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed
The “proportionality” relationship requires rough proportionality between the fee charged to each type of development and the cost of the facility being financed. In the case of the SCTMF, the differences in the traffic generated by different types of development were factored into the fee to be charged for each type, as described in Table 17. Within each land use category, the size of the project, i.e. the number of dwelling units constructed or size of the building, is accounted for in assessing the fee. This ensures that projects that generate a lot of traffic and therefore have a greater traffic impact will pay more than other projects that have less impact.

5.6 Residential Floor Area
CGC§ 66016.5(a)(5)(B): A nexus study is not required to comply with subparagraph (A) if the local agency makes a finding that includes all of the following:
(i) An explanation as to why square footage is not an appropriate metric to calculate fees imposed on a housing development project.
(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development. (iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

CGC§ 66016.5(a)(5) subparagraph (A), which is new as part of AB 602, requires fees on housing development to be proportionate to the square footage of proposed units of the development unless the agency chooses to make the three findings described above. During the course of this study, we found that while the traffic impacts from residential developments are related to the floor area of the unit, the relationship is not one of direct proportionality. We therefore recommend that STA make the following findings with respect to the SCTMF Program:
• That square footage, applied as a direct proportion, is not an appropriate metric for calculating traffic impact fees for residential developments, based on substantial evidence showing that the number of vehicle trips generated by residential units is not directly proportional to the floor area (see Table 13). • That an alternative basis of calculating traffic impact fees, based on the expected number of trips generated by very small, small, medium-small, medium, and large units, but not directly proportional to floor area, would bear a reasonable relationship between the fee charged and the burden posed by the development. This alternative method is supported by substantial evidence from the American Housing Survey and the National Cooperative Highway Research Program (NCHRP). • That the differences in trip generation characteristics between single-family residences, multi-family residences, mobile homes in mobile home parks, and age-restricted senior residences, as determined through surveys collected by the Institute of Transportation Engineers, justify using separate fee levels for these different types of units. • That differentiating between very small, small, medium-small, medium, and large units within each category of housing would ensure that smaller developments are not charged fees disproportionate to their traffic impacts.

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ghd.com The Power of Commitment

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ATTACHMENT 4

MEASURE A

SACRAMENTO COUNTYWIDE TRANSPORTATION MITIGATION FEE PROGRAM

AGREEMENT ON OPERATING PROTOCOLS
Amended – August 2024

This amended Agreement on Operating Protocols for the Sacramento Countywide Transportation Mitigation Fee Program (Agreement) is made by and between the Sacramento Transportation Authority (STA) and the Entity’s Name (Entity).

RECITALS

A. Sacramento Transportation Authority Ordinance No. STA -04-01 (Ordinance) imposes a one-half of one percent retail transactions and use tax that is statutorily dedicated for transportation planning, design, construction, operation, and maintenance in Sacramento County.

B. The Ordinance establishes the 30- year Sacramento Countywide Transportation Mitigation Fee Program (“SCTMFP”), to be implemented by the County and each incorporated city during the period April 1, 200 9 through March 31, 2039.

C. The Ordinance provides that the County and each incorporated city must, as a condition of receiving its allocation of local street and road maintenance formula funds from the retail transactions and use tax revenues, adopt the 30-year SCTMFP Fee (Fee) for the period April 1, 2009 through March 31, 2039 in accordance with guidelines adopted by the Sacramento Transportation (STA) Governing Board.

D. The SCTMFP Fee schedule shall be uniform throughout the unincorporated and incorporated areas of the County.

E. The Entity has acknowledged its obligations imposed by the SCTMFP.

F. The Entity began implementing the SCTMFP Fee on April 1, 2009 and must remit the SCTMFP Fee revenues to the STA within 60 days of the end of each six-month period ending June 30 and December 31 of each year.

G. The STA shall reallocate the SCTMFP Fee revenues to local jurisdictions to be expended on Measure A capital projects in the impacted areas where the fees were generated in accordance with the SCTMFP and the Measure A Capital Allocation Plan.

H. STA Resolution STA -2006-006 adopting the Sacramento Transportation Mitigation Fee Program (SCTMFP) Nexus Study and Setting SCTMFP Fee Rates Effective April 1, 2009, provides that protocols related to SCTMFP Fee implementation issues, including but not limited to, required dates of Fee remittances to STA and documentation to be submitted by each participating agency, shall be established by future resolution of the STA and contracts between the STA and the participating agencies.

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I. STA Resolution STA -2024-005 adopted the 2024 Sacramento Transportation Mitigation Fee Program (SCTMFP) Nexus Study and Set Updated SCTMFP Fee Rates Effective January 1, 2025.

J. This Agreement, as amended, when approved by resolution of the STA and executed by the Entity , shall constitute the current protocols related to SCTMFP Fee implementation.

K. This amended Agreement is uniform among the County and all incorporated cities.

L. This Amended Agreement replaces and supersedes the prior version of the Agreement in its entirety.

NOW, THEREFORE, the parties agree as follows:

1.0 DEFINITIONS

1.1 “AB 602” means the act to amend Sections 65940.1 and 66019 of, and to add Section 66016.5 to, the State of California Government Code (CGC) , and to add Section 50466.5 to the Health and Safety Code, relating to land use, development impact fees, and impact fee nexus studies.

1.2 “AB 1600” means the Mitigation Fee Act set forth in the CGC Sections 66001 – 60025.

1.3 “Accessory Dwelling Unit” (ADU) means an attached or detached permanent dwelling unit that provides complete independent living facilities (permanent provisions for living, sleeping, eating, cooking, and sanitation) for one or more persons and which is located on a lot with a proposed or existing primary dwelling.

1.4 "Affordability requirement" means a requirement imposed as a condition of a development of residential units, that the development includes a certain percentage of the units affordable for rent or sale to households with incomes that do not exceed the limits for moderate- income, lower income, very low income, or extremely low income households specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code, or an alternative means of compliance with that requirement including, but not limited to, in -lieu fees, land dedication, off -site construction, or acquisition and rehabilitation of existing units.

1.5 “Development Project” or “Project” shall have the same meaning as provided in CGC Section 66000(a), as such section may be amended from time to time.

1.6 “Executive Director” means the Executive Director of the Sacramento Transportation Authority.

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1.7 “Expenditure Plan” means the Sacramento County Measure A Transportation Expenditure Plan 2009-2039 that was adopted as part of the Ordinance.

1.8 “Governing Board” means the Governing Board of the Sacramento Transportation Authority.

1.9 “Housing Development” means a development project with common ownership and financing consisting of residential use or mixed use where not less than 50 percent of the floorspace is for residential use.

1.10 “Independent Taxpayer Oversight Committee” means the committee appointed by the STA Governing Board as required by the Ordinance to supervise Measure A fiscal and performance audits regarding the use of all sales tax funds and to provide independent review to ensure that all Measure A funds are spent in accordance with the provisions of the Ordinance.

1.11 “Industrial Use” means any Development Project that involves manufacturing, transportation, logistics, or similar uses.

1.12 “Measure A” or “the Ordinance” means Sacramento Transportation Authority Ordinance No. STA-04-01.

1.13 “Multi-Family Residential Use” means any Development Project that uses a single parcel for two or more dwelling units within one or more buildings, including duplexes, townhouses, condominiums, and apartment s, but excluding an Accessory Dwelling Unit.

1.14 “Normalized cost per trip” means the medium-sized single family residential fee rate per Section 2.1 divided by the average weekday trip generation rate for a single family residence (9. 44) per the Institute of Transportation Engineers (ITE) Trip Generation Manual (11
th Ed.). The normalized cost per
trip is $167 and will be adjusted annually per Section 2.2.

1.15 “Office Use” means any Development Project that involves business activities, associated with professional or administrative services, and typically consists of corporate offices, financial institutions, legal and medical offices, personal services, or similar uses.

1.16 “Participating Agencies” means the County of Sacramento, the City of Citrus Heights, the City of Elk Grove, the City of Folsom, the City of Galt, the City of Isleton, the City of Rancho Cordova, and the City of Sacramento. Each may be referred to individually as “Participating Agency.”

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1.17 “Retail Use” means any Development Project that involves retailing of merchandise, generally without transformation, retail food services, and rendering services incidental to the sale of merchandise at a fixed point of sale.

1.18 “Sacramento Countywide Transportation Mitigation Fee Program” or “SCTMFP” means the 30 -year transportation mitigation fee program established by the Ordinance.

1.19 “SCTMFP Fee” or “Fee” means the fee imposed pursuant to the SCTMFP.

1.20 “Senior Residential Use” means any Development Project that qualifies as housing for older persons pursuant to CGC Section 12955.9.

1.21 “Single Family Residential Use” means any Development Project that uses a single parcel for only one residential dwelling unit. “Single Family Residential Use” also includes any Development Project that involves one primary dwelling and one Accessory Dwelling Unit on a single lot.

1.22 “Transit station” has the meaning set forth in paragraph (4) of subdivision (b) of CGC Section 65460.1. That definition reads as follows, “transit station" means a rail or light -rail station, ferry terminal, bus hub, or bus transfer station.” “Bus hub” and “bus transfer station” are defined as:
a) "Bus hub" means an intersection of three or more bus routes, with a minimum route headway of 10 minutes during peak hours.
b) "Bus transfer station" means an arrival, departure, or transfer point for the area's intercity, intraregional, or interregional bus service having permanent investment in multiple bus docking facilities, ticketing services, and passenger shelters.
"Transit station" includes planned transit stations otherwise meeting this definition whose construction is programmed to be completed prior to the scheduled completion and occupancy of the housing development.

1.23 “Weekday trip generation per ITE” means a technically supportable methodology based on the ITE Trip Generation Manual to calculate the expected average weekday trip generation based on the type(s) and size of new land use set forth in the development application.”

2.0 UNIFORM FEE

2.1 Uniform Fee. Effective January 1
st, 2025, the Entity shall collect the
applicable uniform SCTMFP Fee, as amended, for each Development Project occurring within the Entity’s jurisdiction. The applicable Fee for each use is as follows:

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Single-Family Residential
Very Small (≤800 sq.ft.) $1,088 per unit
Small (801-1,200 sq.ft.) $1,334 per unit
Medium-Small (1,201-1,600 sq.ft.) $1,451 per unit
Medium (1,601-2,400 sq.ft.) $1,574 per unit
Large (>2,400 sq.ft.) $1,730 per unit
Single-Family Residential,
Senior
Very Small (≤800 sq.ft.) $497 per unit
Small (801-1,200 sq.ft.) $609 per unit
Medium-Small (1,201-1,600 sq.ft.) $663 per unit
Medium (1,601-2,400 sq.ft.) $719 per unit
Large (>2,400 sq.ft.) $790 per unit
Multi-Family Residential
Very Small (≤800 sq.ft.) $995 per unit
Small (801-1,200 sq.ft.) $1,221 per unit
Medium-Small (1,201-1,600 sq.ft.) $1,327 per unit
Medium (1,601-2,400 sq.ft.) $1,440 per unit
Large (>2,400 sq.ft.) $1,582 per unit
Multi-Family Residential, Senior
Very Small (≤800 sq.ft.) $440 per unit
Small (801-1,200 sq.ft.) $540 per unit
Medium-Small (1,201-1,600 sq.ft.) $587 per unit
Medium (1,601-2,400 sq.ft.) $637 per unit
Large (>2,400 sq.ft.) $700 per unit
Accessory Dwelling Units
Very Small (<750 sq.ft.) Exempt from fee
Otherwise (>750 sq.ft.) Fee is based on the ratio of the floor area of the ADU compared to
the primary unit, times the fee that
would be charged on the primary
unit, if the primary unit was being
newly built.

Office Use $1,807 1,000 square feet
Retail Use $2,361 1,000 square feet
Industrial Use $827 1,000 square feet
Hotel/Motel $854 sleeping room
Extended Stay Hotel/Motel $559 sleeping room
Hospital $1,796 1,000 square feet
Service Station $3,442 Fuel Pump
Supermarket $1,078 1,000 square feet
Warehouse/Self-Storage $238 1,000 square feet
Assisted Living Facility $434 bed
Congregate Care $368 unit
Child Day Care $682 Student
Private School (K-12) $414 Student
Auto Repair/Body Shop $2,361 1,000 square feet
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Gym/Fitness Center $2,361 1,000 square feet
Drive-through Car Wash $2,361 1,000 square feet
Normalized Cost per Trip
(All Other Uses) $167 Per Weekday Trip
Notes:

1. For developments that do not fall into the land use categories above, the normalized cost per trip rate should be used to determine the fee based on the daily trips generated by the development.

2. For mixed-use developments, see Item 2.3 for fee calculation procedures.

3. For developments that are anticipated to have reduced trip generation characteristics, such as those in infill areas or those with restricted parking, see Item 2.4 for fee calculation procedures.

4. For developments in proximity to transit, see Item 2.5 for fee calculation procedures.

2.2 Annual Adjustment . The STA shall annually adjust the SCTMFP Fee schedule to reflect change in construction costs based on the McGraw -Hill Engineering News Record (ENR) 20- City Construction Cost Index. The adjustment will take effect Jul y 1, and STA shall notify the Entity of the required annual adjustment at least 60 days in advance of the effective date.

2.3 Calculation of Fee for Mixed Use Projects. For Projects that include two or more different types of uses, the amount of the fee imposed on the entire Development Project shall be proportionally determined based on the relative footprint associated with the various uses.

2.4 Reduced Fees for Reduced Trip Generation. Developments in infill areas or with reduced parking availability , as defined by the Entity, may be subject to reduced fees at the discretion of the Entity. The Entity shall provide the rationale for reduced fees based on a supporting Traffic Study stamped by a licensed Traffic Engineer or Civil Engineer.

2.5 Fees for Transit Oriented Development. In accordance with the CGC Section 66005.1, the SCTMFP must provide for an adjustment of the fee for developments that meet certain characteristics typically associated with a Transit Orient Development (TOD). To qualify for the reduction, a development must have all of the following characteristics (see CGC Section 66005.1.(a)):
a) Be a housing development located within one- half mile of a transit station with direct access between the housing development and the transit station along a barrier -free walkable pathway not exceeding one-half mile in length.
b) Convenience retail uses, including a store that sells food, are located within one-half mile of the housing development.
c) The housing development provides either the minimum number of parking spaces required by the local ordinance, or no more than one onsite parking space for zero to two bedroom units, and two onsite parking spaces for three or more bedroom units, whichever is less.

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Additionally, pursuant to CGC 66005.1(b), if a housing development does not satisfy the characteristics in subdivision (a) per above, the local agency may charge a fee that is proportional to the estimated rate of automobile trip generation associated with the housing development.

Residential units satisfying the requirements for this reduction shall have their fee lowered based on a Traffic Study, stamped by a licensed Traffic or Civil Engineer, which demonstrates the lower rate of automobile trip generation associated with a TOD and other similar types of development compared to developments without these characteristics. STA may provide a standard TOD reduction based on studies related to TODs. The applicant could then either use the standard reduction or provide a project -specific study for STA staff to review.

For example, within Sacramento County, a transit station could include, but is not limited to, the Zinfandel Station, Franklin Station, Consumnes River Light Rail Station, and Sacramento Valley Station which serves Amtrak, Bus, and Light Rail (Sacramento Regional Transit), and the future Valley Rail station in midtown Sacramento.

3.0 ENTITY OBLIGATIONS.

3.1 Obligations prior to January 1, 2025 . The Entity shall take all necessary steps required by applicable law, including but not limited to CGC 66000 et seq., to enable implementation of the SCTMFP Fee no later than January 1, 2025. This includes advance noticing requirements for and the adoption of such fees by the Entity via a public hearing, as described below:

CGC § 66016.5(a)(7): All studies shall be adopted at a public hearing with at least 30 days' notice, and the Entity shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.

CGC § 66016.6(a): Prior to levying a new fee or capacity charge, a local agency shall evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013. (b) All information constituting the evaluation shall be made publicly available at least 14 days prior to a meeting held in accordance with subdivision (a) of Section 66016.

Failure to meet such legal requirements shall not exempt the Entity from the requirement that SCTMFP Fees be collected as a prerequisite to the Entity’s receipt of Measure A local street and road maintenance formula funds.

3.2 Ongoing Obligations. The Entity shall take all necessary steps required by applicable law for p osting the fee schedule, annual fee reports, nexus ITEM 11
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studies, and total amount of fees collected, to its internet website, pursuant to CGC 65940.1, which states:

(1) A city, county, or special district that has an internet website shall make all of the following available on its internet website, as applicable:
(A)(i) A current schedule of fees, exactions, and affordability requirements imposed by that city, county, or special district, including any dependent special districts, as defined in Section 56032.5, of the city or county applicable to a proposed housing development project.
(ii) The city, county, or special district shall present the information described in clause (i) in a manner that clearly identifies the fees, exactions, and affordability requirements that apply to each parcel. (iii) The city, county, or special district shall post a written fee schedule or a link directly to the written fee schedule on its internet website.
(B) All zoning ordinances and development standards adopted by the city or county presenting the information, which shall specify the zoning, design, and development standards that apply to each parcel.
(C) The list required to be compiled pursuant to Section 65940 by the city or county presenting the information.
(D) The current and five previous annual fee reports or the current and five previous annual financial reports, that were required pursuant to subdivision (b) of Section 66006 and subdivision (d) of Section 66013.
(E) An archive of impact fee nexus studies, cost of service studies, or equivalent, conducted by that city, county, or special district on or after January 1, 2018. For purposes of this subparagraph, "cost of service study" means the data provided to the public pursuant to subdivision (a) of Section 66016.
(2) A city, county, or special district shall update the information made available under this subdivision within 30 days of any changes.

(3) (A) A city or county shall request from a development proponent, upon issuance of a certificate of occupancy or the final inspection, whichever occurs last, the total amount of fees and exactions associated with the project for which the certificate was issued. The ITEM 11
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city or county shall post this information on its internet website and update it at least twice per year.
(B) A city or county shall not be responsible for the accuracy for the information received and posted pursuant to subparagraph (A). A city or county may include a disclaimer regarding the accuracy of the information posted on its internet website under this paragraph.

4.0 COLLECTION OF SCTMFP FEES

4.1 Collection of Fees.
a. The Entity shall collect SCTMFP Fees at the time of issuance o f a final building permit for a Development Project , at the same time it collects its own fees, or as otherwise required or permitted pursuant to CGC Section 66007.
b. The amount of the SCTMFP Fees shall reflect the Fee schedule in effect at the time of assessment.
c. SCTMFP Fees shall not be waived or deferred except as provided herein.

4.2 Payment by all Development Projects. Except as otherwise expressly provided by this Amended Agreement, the SCTMFP Fee shall be payable by all Development Projects within the jurisdiction of the Entity for which building permits are issued on or after April 1, 2009.

4.3 Fee Reduction Determinations. Determinations by the Entity to reduce the fee pursuant to S ections 2.3, 2.4, 2.5 or 4.5 shall be subject to STA oversight and guidance as described herein. In semi -annual reports to the STA Executive Director, the Entity shall identify each project, if any, that has been granted a fee reduction and the amount of discounted fees. The decisions of the Entity as to fee reductions under this provision shall also be subject to audit by the STA.

The STA Executive Director reserves the right to review the grant of a fee reduction by a local jurisdiction under this provision in circumstances where the above requirements are not clearly met, although the STA Executive Director may not exercise any direct jurisdiction or action in a particular fee protest between Entity and payor pursuant to CGC Section 66020. In the event of a fee protest pursuant to CGC Section 66020, the local jurisdiction shall make the final determination with respect to application of the fee and any potential fee reductions. The Executive Director may subsequently review the fee reduction and, following consultation with Entity, determine, in the Executive Director’s reasonable discretion, that a fee reduction was not supported under the SCTMFP protocols or applicable law and that a ITEM 11
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corresponding amount of SCTMFP revenue shall be withheld from Entity. The Executive Director’s decision shall have no effect on the amount of the fee charged by Entity to the payor.

At the request of the Entity , the STA Executive Director may resolve questions of interpretation regarding this policy. At the time the fee reductions are assessed, the Entity may request guidance from the STA Executive Director.

4.4 Exemptions from the SCTMFP Fees. The following Development Projects shall not be subject to the SCTMFP Fee:
a. Accessory Dwelling Units less than 750 square feet.
b. The rehabilitation or reconstruction of any residential or non - residential structure where there is no net increase in square footage.

Any increase in square footage shall pay the established applicable fee rate for that portion of square footage that is new. c. New low- income housing as defined in Health and Safety Code Section 50079.5 and very low -income housing as defined in Health and Safety Code Section 50105.
d. Projects intended for public use where the applicant is one of the Participating Agencies.
e. Any development project that is subject of a valid development agreement entered into pursuant to CGC Section 65864 prior to April 1, 2009, that includes a provision exempting it from future fees or fee increases; provided, however, that if the term of such a development agreement is extended after April 1, 2009, the SCTMFP shall be imposed.
f. Any development project for which an application for a vesting tentative map authorization by CGC Section 66498.1 was deemed complete prior to April 1, 2009.

4.5 Re-purposing/Reuse of existing buildings . F ee applicable only to net increase in ADT’s compared to prior established use.

a. Determination of average daily trips (“ADT’s”) for the purpose of comparing previous and proposed uses shall be by reference to trip generation rates obtained from the Institute of Traffic Engineers (“ITE”).

b. A building permit applicant may request a reduction in the otherwise applicable SCTMFP fee in accordance with the following policy:

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Where a new project changes the prior established use of an existing building, a reduction may be applied to the SCTMFP fee where the new use increases ADT’s compared to the prior use.

c. Where the Entity determines that a project qualifies for a reduction pursuant to this policy, it shall determine the fee reduction by comparing the rates applicable to the prior and new uses as designated in the SCTMFP Fee Schedule and calculating the resulting offset. In the alternative, where a proposed land use is not clearly listed in the Fee Schedule, the fee shall be calculated as follows: (1) calculate the difference between previous ADT’s and new ADT’s at the property; (2) multiply the result by the normalized cost per trip.

d. Requests for a fee reduction pursuant to this provision shall be made to the Entity. The Entity shall determine whether a project has made the required showing for a fee reduction. There shall be no right to an appeal.

At the time the fee reductions are assessed, the Entity may request guidance from the STA Executive Director.

5.0 REMITTANCE OF FEES

The Entity shall remit SCTMFP Fees collected to the Authority on a semi -annual basis, within 60 days after June 30 and December 31 of each calendar year. Each remittance shall be accompanied by a report specifying the fee-generating activity for the reporting period within the Entity ’s jurisdiction, including information as to all permits issued by use, square footage, any exemptions or reductions granted, and such other information as may be deemed appropriate by the Executive Director. The Entity collecting the SCTMFP Fees shall h old them in an interest- bearing account and any interest earned shall be remitted to the Authority with the semi-annual SCTMFP Fees. The Executive Director shall separately account for the Entity’s SCTMFP Fees as part of the aggregate SCTMFP account and will prepare annual reports for presentation to the Independent Taxpayer Oversight Committee and the STA Governing Board.

6.0 AUDIT OF SCTMFP REVENUES

The Executive Director, in coordination with the Independent Taxpayer Oversight Committee, shall establish a program to audit the Entity’s implementation of the SCTMFP and STA’s expenditure of the SCTMFP Fees.

7.0 EXPENDITURE OF FEES

STA shall distribute SCTMFP Fees received, and any proceeds of Fee- based financing(s), to the local jurisdictions for expenditure in accordance with the Ordinance, a 5-year capital program annually updated and approved by the STA Governing Board, applicable resolutions of the STA, Measure A allocation and expenditure contracts between the STA and local jurisdictions, and AB 1600.

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SCTMFP: Agreement on Operating Protocols 12
STA & Entity

8.0 ADMINISTRATION COSTS

The STA and Entity each shall absorb their administrative costs associated with the implementation and administration of the SCTMFP Fee and this Agreement.

The Entity, at its discretion, may impose an additional fee on affected development to pay for administrative costs of implementing the SCTMFP.

9.0 REPORTS

STA shall prepare annual and five- year reports required by CGC Sections 66000 et seq. and AB 602 relating to the SCTMFP Fees. Entity shall provide any necessary assistance and data.

10.0 MISCELLANEOUS

10.1 If any one or more of the terms or provisions of this Agreement shall be adjudged invalid, unenforceable, void or voidable by a court of competent jurisdiction, each and all remaining terms and provisions of this Agreement shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law.

10.2 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

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SCTMFP: Agreement on Operating Protocols 13
STA & Entity

SACRAMENTO TRANSPORTATION AUTHORITY

By
___________________________
Kevin Bewsey
Executive Director

Dated:

August 8, 2024

Entity Name

By: ___________________________
(Authorized Officer)
(Title)

Dated:____________

Approved as to Form: Attest:
___________________________ ___________________________

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ORDINANCE NO. 2024-___

AN ORDI

NANCE OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, ADDING ARTICLE XXX TO CHAPTER 18 OF THE CITRUS

HEIGHTS CODE RELATING TO THE COLLECTION OF DEVELOPMENT IMPACT

FEES FOR MEASURE A TRANSPORTATION IMPROVEMENTS
The
City Council of the City of Citrus Heights does ordain as follows:

SE
CTION 1. Purpose and Declarations
WH
EREAS, on June 7, 2006, by Resolution No. 06-0006, the Sacramento Transportation Authority (STA) adopted the Measure A Nexus Study, which identified the additional public facilities required by new development and determined the amount of revenue needed from development impact fees to be imposed on a countywide basis, so that all new development pays its fair share of the costs of new public facilities needed to serve such development. The Measure A development impact fee became become effective on April 1, 2009, and extends through March 31, 2039, in order to fund new development’s fair share of the costs of the transportation improvements included in the Measure A expenditure plan needed to serve such development in the future;
WH
EREAS, Implementation of the Measure A Mitigation Fee Program by each jurisdiction within the County of Sacramento was a condition of STA’s approval of the new Measure A sales tax and expenditure plan, which was approved by the voters in Sacramento County in November of 2004. STA’s Ordinance No. 04-01 provides that no revenues from the new Measure A sales tax shall be provided to a local jurisdiction unless it implements the Measure A Mitigation Fee Program;
WH
EREAS, on June 13, 2024, the STA Governing Board adopted the 2024 Sacramento Countywide Transportation Mitigation Fee Program Nexus Study (“2024 SCTMFP Nexus Study”), with an updated project list, includes a Smart Growth Arterials and Corridors program, and updated fee amounts and new residential fee structures to align with AB 602 requirements for fees to be proportional to square footage categories with the new updated rates to be effective January 1, 2025;
WH
EREAS, on August 8, 2024, the STA Governing Board approved a resolution amending the Operating Protocols Agreement to utilize the updated SCTMFP fee rates and the 2024 SCTMFP Nexus Study which now includes additional exemptions for ADUs less than 750 square feet, excludes development projects intended for public uses by the County or a City, and has fee reductions for developments in infill areas or with reduced parking availability and transit oriented development;
WH
EREAS, certain amendments to the Chapter 18 (Buildings and Building Regulations), Article XXX Development Impact Fees to for Measure A Transportation Improvements are necessary to reflect updates to the 2024 Nexus Study and Amended Operating Protocols Agreement;
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WHEREAS, on October 23, 2024, the City Council held a properly noticed public hearing for this Ordinance and subsequently elected to continue the public hearing to November 13, 2024 to allow extend the period of review and to further consider all oral and written testimony.

SECTION 2. Findings. The City Council hereby finds:

CEQA Compliance. Public Resources Code (PRC) Section 21080(b)(8) and CEQA Statutory Exemption Section 15273(a)(4) allow for the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies for the purpose of obtaining funds for capital projects necessary to maintain service within existing service areas. The ordinance amendments are to reflect changes in the newly adopted 2024 SCTMFP Nexus Study to include new land use categories and definitions and additional exemptions to the Measure A Fee. This action clearly meets the requirements of PRC Section 21080(b)(8) and CEQA Statutory Exemption Section 15273(a)(4) because it will fund capital improvement projects within the existing service area of the Citrus Heights City Limits and would not result in the expansion of the transportation system or any other uses or activities.

Therefore, the proposed action is not subject to the provisions of CEQA.

SECTION 3. Amendments to Chapter 18 (Buildings and Building Regulations)

The City Council hereby adopts the amendments to Article XXX Chapter 18 Development Impact Fees to for Measure A Transportation Improvements, as shown and incorporated in Exhibit A to this ordinance.

SECTION 4. Severability. If any section, subdivision, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof.

SECTION 5. Effective Date and Notice. This ordinance shall take effect sixty (60) days after its adoption, in accordance with Government Code 66017, provided it is published in full or in summary within fifteen (15) days of its adoption, in a newspaper of general circulation published and circulated in the City of Citrus Heights.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights this _____ day of ______ 2024 by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:

Dr. Jayna Karpinski-Costa, Mayor
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ATTEST:

Amy Van, City Clerk

Exhibit

A. Article XXX. – Development Impact Fees for Measure A Transportation Improvements ITEM 11
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ARTICLE XXX. – DEVELOPMENT IMPACT FEES FOR MEASURE A

TRANSPORTATION IMPROVEMENTS

Section 18-800 Purpose shall be added as follows:

Sec. 18-800. – Purpose.

This chapter is adopted pursuant to the authority granted to cities by Article XI, Section 7 of the California Constitution for the purpose of authorizing certain development impact fees, as described in public facility financing plans, expenditure plans and the nexus studies as referenced herein, to be assessed upon the owners of certain residential and nonresidential property as described in this chapter and which is located within the city. The fees herein adopted shall be assessed upon landowners developing property for any residential or non-residential use in order to provide all or a portion of the funds which will be necessary to design, construct, install or acquire public facilities required to meet the needs of, and address the transportation impacts caused by, such development activity. It is the intent and purpose of the city to protect and promote the public health, safety and welfare by constructing, installing and acquiring public facilities necessitated by development in the city. Furthermore, it is the intent and purpose of the city to allow the development within its jurisdiction boundaries on the condition that landowners pay the applicable costs of such public facilities and that such costs shall not be or become a responsibility of any other city fund, including, without limitation, the city’s general fund.

Section 18-801 Definitions shall be added as follows:

Sec. 18-801. – Definitions

Unless the contrary is stated or clearly appears from the context in which a term is used, the following definitions shall govern construction of the words and phrases used in this chapter:

A. “Automatic annual adjustment” means the automatic annual adjustment of development impact fees based on the inflation factors described in section 18-811.

B. “Accessory Dwelling Unit” (ADU) means an attached or detached permanent dwelling unit that provides complete independent living facilities (permanent provisions for living, sleeping, eating. cooking, and sanitation) for one or more persons and which is located on a lit with a proposed or existing primary dwelling.

C. “City code” means the City of Citrus Heights Municipal Code.

D. “Citywide benefit district area” means the real property located within the jurisdictional boundaries of the city, and as said boundaries may be adjusted from time to time.

E. “Development” means the uses to which property will be put, the buildings and improvements to be constructed on it, and the construction activities incident thereto, together with the process of obtaining all required land use entitlements.

F. “Development project” shall have the same meaning as defined by subsection (a) of Government Code Section 66000, as such section may be amended from time to time.

G. “Dwelling unit” means any building or portion of a building used or designed for use as a residence by an individual or any group of individuals living together or as a family, ITEM 11
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excepting therefrom any unit rented or leased for temporary residency, such as a motel and hotel room.

H. “Fee” and “impact fee” and “development impact fee” mean the monetary exaction as defined by subsection (b) of Government Code Section 66000, as such section may be amended from time to time, and shall include, but not be limited to, the fees established pursuant to this chapter.

I. “Fee resolution” means Resolution No. 2009-009, or any subsequent resolution adopted by the city council which implements the provisions of this chapter, including, without limitation, the setting of the amounts of the various fees established hereby and the adoption of provisions for credits, reimbursements and deferral relating to such fees.

J. “Government Code” means the Government Code of the state of California and any provision thereof cited in this chapter, as such provision exists as of the date of the enactment of this chapter, or as it may thereafter be amended or renumbered from time to time.

K. “Health and Safety Code” means the Health and Safety Code of the state of California and any provision thereof cited in this chapter, as such provision exists as of the date of the enactment of this chapter, or as it may thereafter be amended or renumbered from time to time.

L. “Housing Development” means a development project with common ownership and financing consisting of residential use or mixed use where not less than 50 percent of the floorspace is for residential use.

M. “Industrial Use” any Development Project that involves manufacturing, transportation, logistics or similar uses.

N. “Low income” and “very low income” housing is defined in Sections 50079.5 and 50105, respectively, of the Health and Safety Code.

O. “Measure A” means Ordinance No. 04-01 adopted by the Sacramento Transportation Authority on July 29, 2004, which established the Sacramento Countywide Transportation Mitigation Fee Program to be implemented by the County of Sacramento and each city within the county by April 1, 2009.

P. “Measure A administration fee” means the fee imposed by the city for the cost of collection, deposit, investment, accounting, remittance and reporting of the Measure A development impact fee.

Q. “Measure A development impact fee” means a development impact fee established to provide funding for public facilities to benefit new development within the city.

R. “Measure A expenditure plan” means the Sacramento County Transportation Expenditure Plan 2009-2039 dated June 10, 2004, as adopted by the Sacramento Transportation Authority under Ordinance No. 04-01, which specifies the allocation of Measure A sales taxes and Measure A development impact fees for specified public facilities.

S. “Measure A nexus study” means the Development Impact Fee Study dated June 2, 2006, as originally adopted by the Sacramento Transportation Authority by Resolution No. 06-0006 and updated by the 2024 Nexus Study Update Report dated May 24, 2024 adopted by the Sacramento Transportation Authority by Resolution No.24-0005.

T. “Multi-Family Residential Use” means any Development Project that uses a single parcel for two (2) or more dwelling units within one (1) or more building(s) including, ITEM 11
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without limitation, duplexes, townhouses, condominiums and apartments, but excluding an Accessory Dwelling Unit.

U. “Normalized cost per trip” means the medium-sized single family residential fee rate listed in Section 2.1 of the Protocols Agreement divided by the average weekday trip generation rate for a single family residence (9.44) per the Institute of Transportation Engineers (ITE) Trip Generation Manual (11th Ed.). the normalized cost per trip is $167 and will be adjusted annually per section 18-811.

V. “Office Use” means any Development Project that involves business activities, associated with professional or administrative services, and typically consists of corporate offices, financial institutions, legal and medical offices, personal services, or similar uses.

W. “Participating Agencies” means the County of Sacramento, the City of Citrus Heights, the City of Elk Grove, the City of Folsom, the City of Galt, the City of Isleton, the City of Rancho Cordova, and the City of Sacramento. Each may be referred to individually as “Participating Agency.”
X. “Protocols Agreement” means the New Measure A Sacramento Countywide Transportation Mitigation Fee Program Agreement on Operating Protocols, dated August 2024, with the Sacramento Transportation Authority, as approved by the Authority on August 8, 2024, by Resolution No 24-006 or as may be subsequently amended.

Y. “Public facilities” means the public improvements, public services and community amenities as defined by subsection (d) of Government Code Section 66000, as such section may be amended from time to time. The term “public facilities” only includes transportation improvements and infrastructure to be designed, constructed, installed and acquired to serve the specified benefit district area, as well as the transportation- related public service and community amenities to serve the specified benefit district area, which improvements and infrastructure are described in the applicable financing plan, expenditure plan, and/or nexus study (collectively “plan” or “study”). The costs of the design, construction, installation and acquisition of the specified public facilities, which are to be financed partially by the development impact fee program, is set forth within the plan or study. Where applicable under the plan or study, the term “public facilities” includes the acquisition of land relating to such improvements, infrastructure, public services and community amenities. The term “public facilities” also means a specific public improvement or infrastructure where the context requires a singular meaning.

Z. “Retail Use” means any Development Project that involves retailing of merchandise, generally without transformation, retail food services, and rendering of services incidental to the sale of merchandise at a fixed point of sale.

AA. “Reduced Parking Availability” means a development project where State law requires the City to approve the project with reduced parking, including without limitation, projects pursuant to Government Code Sections 65913.4 and 65915.

BB. “Senior Residential Use” means any Development Project that qualifies as housing for older persons pursuant to CGC Section 12955.9.

CC. “Single Family Residential Use” means any Development Project that uses a single parcel for only one residential dwelling unit. “Single Family Residential Use” also ITEM 11
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includes any Development Project that involves one primary dwelling and one Accessory Dwelling Unit on a single lot.

DD. “STA” means the Sacramento Transportation Authority.

EE. “Transit Oriented Development” means a housing development that satisfies all the following characteristics: (a) the housing development is located within one-half mile of a transit station and there is direct access between the housing development and the transit station along a barrier-free walkable pathway not exceeding one-half mile in length; (b) convenience retail uses, including a store that sells food, and located within one-half mile of the housing development; and (c) the housing development provides either the minimum number of parking spaces required by the local ordinance, or no more than the onsite parking space for zero to two bedroom units, and two onsite parking spaces for three or more bedroom units, whichever is less.

FF. “Transit station” has the meaning set forth in Section 66005.1(d) of the Government Code.

Section 18-802 Adoption of new or amended reports shall be added as follows:

Sec. 18-802. – Adoption of new or amended reports.

To implement the development impact fees established pursuant to the provisions of this chapter, the city council may, by resolution, adopt new or amended versions of any of the studies, reports, plans, or projections on which the development impact fees are based, except in such cases where amendments to such studies, reports, plans, or projections must be made by ordinance.

Section 18-803 Establishment of development impact fees shall be added as follows:

Sec. 18-803. – Establishment of development impact fees.

A. The following development impact fees are established pursuant to the provisions of this chapter to finance the cost of the following categories of public facilities required by development within the following specified benefit district areas:

1. Measure A Benefit District.

a. Measure A Development Impact Fee. A development impact fee is established to provide funding for public facilities to serve the city, which facilities are described in the Measure A expenditure plan and the Measure A nexus study. The Measure A benefit district is the jurisdictional boundaries of the city, and as said boundaries may be adjusted from time to time.

b. Measure A Administration Fee. An administrative fee is established to fund the city’s cost to administer the Measure A development impact fee.

B. The city council, by resolution, shall establish the specific initial and subsequent amounts of the foregoing fees pursuant to section 18-805 and make the additional findings required under section 18-804 in establishing said amounts of each fee. In addition, the city council, by ITEM 11
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resolution, may adopt additional provisions, procedures and policies to implement the fees established by this chapter. The amounts of fees, provisions, procedures, and policies adopted by resolution pursuant to this subsection shall be consistent with the applicable financing plan, expenditure plan and/or nexus study as referenced in subsection (A) of this section.

C. The city council, by resolution, may establish new or additional components of the fees identified in subsection (A) of this section as are necessary to accommodate phasing and stages of the development of the specified benefit district areas, or as may be contemplated by future amendments to the financing plan, expenditure plan and/or nexus study as referenced in subsection (A) of this section.

Section 18-804 Additional findings to be made when establishing the amount of development impact fees shall be added as follows:

Sec. 18-804. – Additional findings to be made when establishing the amount of development impact fees.

At the time it considers the amount of the fees established pursuant to section 18-803 or at the time of amending such fees, other than in making an automatic annual adjustment to the fees as provided in section 18-811, the city council shall adopt the amount of such fees if it makes the following findings in support of such fees:

A. A finding that such fees have been determined and calculated in the manner consistent with the financing plan, expenditure plan and/or nexus study as referenced in section 18-803(A); and

B. The following additional findings required by Section 66001 of the Government Code, which demonstrate that there is a nexus between the public facilities for which such fees are imposed and the need for such public facilities created by the development of residential and nonresidential property within the specified benefit district areas upon which the fees are imposed:

1. Findings which identify the purpose of the fees;

2. Findings which identify the use to which the fees are to be put;

3. Findings which demonstrate that there is a reasonable relationship between the use of the fees and the type of development project on which the fees are imposed;

4. Findings which demonstrate that there is a reasonable relationship between the need for the public facilities to be financed by the fees and the type of development project on which the fee is to be imposed; and

5. Findings which demonstrate how there is a reasonable relationship between the amount of the fees and the cost of the public facilities, or portion of such public facilities, attributable to the development project on which the fees are imposed.

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C. In making the findings pursuant to this section and any other findings, the city council may consider all matters, whether offered orally or in writing, presented at the hearing or hearings conducted for the purpose of establishing or amending the fee, and any and all oral and written material presented to the city council and planning commission in connection with the adoption, approval or amendment of the financing plan, expenditure plan and/or nexus study as referenced in section 18-803(A).

Section 18-805 Proceedings to establish the amount of development impact fees shall be added as follows:

Sec. 18-805. – Proceedings to establish the amount of development impact fees.

A. At the time of setting the amount of the fees established pursuant to this chapter or at the time of amending such fees, other than in making an automatic annual adjustment to the fees as provided in section 18-811, the city council shall hold a public hearing on the proposed fees or proposed amendment of fees in the manner required by Section 66018 of the Government Code.

B. The effective date of any resolution adopted by the city council which establishes or amends, as the case may be, the amount of the fees established pursuant to section 18-803, shall be no sooner than 60 days following the final action on the adoption or amendment of the fee.

Section 18-806 Imposition of development impact fees shall be added as follows:

Sec. 18-806. – Imposition of development impact fees.

A. The development impact fees established under this chapter shall be imposed on the following types of uses or development of real property located within the benefit district areas as referenced in section 18-803(A):

1. For nonresidential uses or development:

a. The construction on the property of a new building or structure;

b. The construction on the property of additions to an existing building or structure which results in the expansion in the size or use of such existing building or structure; or

c. The change in use of an existing building or structure on the property from a previous residential use to a nonresidential use, or from a previous nonresidential use to another nonresidential use; provided, that the landowner shall be entitled to a credit against fees paid pursuant to this chapter in the amount of fees which were actually paid for such previous residential or nonresidential use, which prior fees shall be adjusted for inflation consistent with section 18-811.

2. For residential uses or development:

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a. The construction on the property of a new building or structure containing one or more dwelling units;

b. The construction on the property of alterations or additions to an existing building or structure which add one or more dwelling units to such existing building; or

c. The change in use of an existing building or structure on the property from a previous nonresidential use to a residential use; provided, that the landowner shall be entitled to a credit against fees paid pursuant to this chapter in the amount of fees which were actually paid for such previous nonresidential use, which prior fees shall be adjusted for inflation consistent with section 18-811.

3. For nonresidential and residential uses or development within the same building or structure, the computation of fees as set out in section 18-808 shall apply.

B. Except as may be expressly provided in this chapter, no building permits or extension of permits relating to the activities described in subsections (A)(1) and (A)(2) of this section shall be granted unless and until the appropriate development impact fee or fees have been paid to the city in accordance with the provisions of this chapter, except that for residential developments under a fee payment contract as specified in Section 66007 of the Government Code, building permits may be issued but no final inspection or certificate of occupancy shall be granted unless and until the appropriate development impact fee or fees have been paid to the city. As provided in subsection (a) of Section 66007 of the Government Code, for a residential development that contains more than one dwelling unit, the fees may be paid on a pro rata basis for each dwelling unit when it receives its final inspection or certificate of occupancy, whichever occurs first.

C. Notwithstanding anything to the contrary set forth in subsection (A) of this section or in any other provision in this chapter, the development impact fees established pursuant to this chapter shall apply to any development project that has heretofore either received a tentative map approval or other approval or permit, whether discretionary or nondiscretionary, or is subject to a development agreement or other agreement between the landowner and city that provides for payment of one or more fees established under this chapter.

Section 18-807 Exemptions shall be added as follows:

Sec. 18-807. – Exemptions.

A. Accessory Dwelling Units less than 750 square feet.

B. The rehabilitation or reconstruction of any residential or non-residential structure where there is no net increase in square footage. Any increase in square footage shall pay the established applicable fee rate for that portion of square footage that is new.

C. New low-income housing as defined in Health and Safety Code Section 50079.5 and very low-income housing as defined in Health and Safety Code Section 50105.

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D. Projects intended for public use where the applicant is one of the Participating Agencies.

E. Any development project that is subject of a valid development agreement entered into pursuant to Government Code Section 65864 prior to April 1, 2009, that includes a provision exempting it from future fees or fee increases; provided, however, that if the term of such a development agreement is extended after April 1, 2009, the SCTMFP shall be imposed.

F. Any development project for which an application for a vesting tentative map authorization by CGC Section 66498.1 was deemed complete prior to April 1, 2009.

Section 18-808 Computation of fees shall be added as follows:

Sec. 18-808. – Computation of fees.

The methodologies set forth in the financing plan, expenditure plan and/or nexus study referenced under section 18-803(A) shall be used as the basis to set the amount of fees pursuant to any resolution referenced under section 18-803(B). The amount of fees due from any landowner shall be calculated from the actual uses of land proposed by the landowner unless otherwise provided in any resolution referenced under section 18-803(B). Applicants for building or other development permits shall include plans and calculations prepared by the applicant or applicant’s agent, specifying data necessary to calculate development impact fees, including, without limitation, each proposed land use, the square footage of each use, and other relevant data as may be required by the city general services director, or his or her authorized designee.

All fees due under this chapter shall be determined and calculated by the city public works director, or his or her authorized designee.

Section 18-809 Time of payment of fees shall be added as follows:

Sec. 18-809. – Time of payment of fees.

Except as otherwise provided in any resolution adopted by the city council as provided under section 18-806(B) and 18-810 relating to deferral of payment of fees, the fees established by this chapter shall be paid for the property on which a development project is proposed at the time of the issuance of any required building permit relating to such development. With respect to development projects completed or commenced prior to the effective date of this chapter and the effective date of any amendment, the city general services director, or his or her authorized designee, may enter into agreements with landowners regarding the amount, time, and manner of payment of fees under this chapter with respect to such development projects.

Section 18-810 Deferral of fees shall be added as follows:

Sec. 18-810. – Deferral of fees.

The city council, by resolution, may establish and modify policies, guidelines and procedures regarding the deferral or other adjustment of the time of payment of the fees established under this chapter.

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Section 18-811 Automatic annual adjustment shall be added as follows:

Sec. 18-811. – Automatic annual adjustment.

The fees established by this chapter shall be adjusted automatically to take into consideration construction cost inflation on July 1st of each fiscal year. The first fiscal year for which an adjustment shall occur shall be the fiscal year that includes July 1, 2025. The adjustment shall be made by a factor equal to the percentage increase, if any, of the index which the city council adopts by resolution at the time of establishment or amendment of the fees as provided under this chapter, which may include the following: The Construction Cost Index as published by Engineer News Record/McGraw-Hill Construction Weekly for either (i) the San Francisco area (based on 1913 U.S. average = 100) during the 12 months ending on the preceding March 1st, or (ii) the 20-City Construction Cost Index during the 12 months ending on the preceding March 1st. This automatic annual adjustment shall not apply to those fees which are based on variable factors which themselves result in an automatic inflation adjustment, those which specifically indicate otherwise, or those which are governed by provisions of an agreement with the city expressly exempting such fees from the adjustment set forth under this section.

Section 18-812 Adjustment of fees by resolution shall be added as follows:

Sec. 18-812. – Adjustment of fees by resolution.

In addition to any automatic annual adjustment, the amount of the fees established by this chapter may be revised periodically, including, without limitation, upon the report and review provided for in section 18-817, by resolution of the city council. Any action by the city council to increase fees shall comply with the provisions of this chapter and Government Code Section 66018.

Section 18-813 Adjustment of fees shall be added as follows:

Sec. 18-813. – Adjustment of fees.

A. Calculation of Fee for ADUs.

ADUs greater than 750 square feet shall be subject to a fee hereunder that is equal to the ratio of the floor area of the ADU compared to the primary unit, multiplied by the fee that would be charged on the primary unit, if the primary unit was being newly built.

B. Calculation of Fee for Mixed Use Projects.

For Projects that include two or more different types of uses, the amount of the fee imposed on the entire Development Project shall be proportionally determined based on the relative footprint associated with the various uses, as determined by the General Services Director.

C. Reduced Fees for Areas with Reduced Parking Availability.

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Developments in areas with Reduced Parking Availability may be subject to reduced fees, at the sole discretion of the General Services Director, if the development project results in reduced trip generation. Any such fee reduction must be supported by a Traffic Study submitted by the Applicant and prepared and stamped by a licensed Traffic or Civil Engineer and which has been accepted by the City Engineer.

D. Fees for Housing Developments.

1. Generally. The fee imposed pursuant to this Chapter for a Transit Oriented Development shall be set at a rate that reflects a lower rate of automobile trip generation associated with that Transit Oriented Development in comparison with non-Transit Oriented Development, unless the City adopts findings after a public hearing establishing that the Transit Oriented Development would not generate fewer automobile trips than a non-Transit Oriented Development. If a housing development does not satisfy the characteristics of a Transit Oriented Development, the City will charge a fee pursuant to this Chapter that is proportional to the estimated rate of automobile trip generation associated with the housing development.

2. Traffic Study.

2.1. Project-Specific Traffic Study. Housing developments seeking a fee adjustment pursuant to this section shall submit a traffic study, stamped by a licensed Traffic or Civil Engineer (and which has been accepted by the City Engineer), which demonstrates the lower rate of automobile trip generation associated with the applicable housing development compared to the Nexus Study.

2.2. Alternative Traffic Study. A Transit Oriented Development may submit to City a traffic study, stamped by a licensed Traffic or Civil Engineer (and which has been accepted by the City Engineer), which demonstrates the lower rate of automobile trip generation associated with Transit Oriented Developments and other similar types of development compared to non-Transit Oriented Developments. In the event a Transit Oriented Development submits the Alternative Study pursuant to this section, the Finance Director, in consultation with STA, may apply a standard Transit Oriented Development fee reduction based on studies related to Transit Oriented Developments unless the applicable Transit Oriented Development elects to provide City with a Project-Specific Traffic Study, as described in section 18-813(D)(2.1), for the General Services Director to use in calculating the appropriate fee hereunder.

E. Re-purposing/Reuse of Existing Buildings.

A. The fee imposed pursuant to this Chapter for any re-purposing or change in use of existing buildings shall only apply to the net increase in average daily trips attributable to the new purpose or use, as compared to the prior established use.

B. Fees shall be calculated hereunder by comparing the rates applicable to the prior and new uses as designated in the City’s Fee Schedule and calculating the resulting offset. In the alternative, where a proposed land use is not clearly listed in the Fee Schedule, the fee shall be calculated as follows:

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1. Calculate the difference between previous average daily trips and new average daily trips at the property. The determination of average daily trips for the purpose of comparing previous and proposed uses shall be by reference to trip generation rates obtained from the Institute of Traffic Engineers.

2. Multiply the result by the normalized cost per trip.

C. Requests for a fee adjustment pursuant to this provision shall be made to the City in writing. The Finance Director shall determine whether a development project has made the required showing for a fee adjustment.

Section 18-814 Use of funds shall be added as follows:

Sec. 18-814. – Use of funds.

A. Funds collected from the fees established by this chapter and deposited in their respective special funds shall be used by the city or by the Sacramento Transportation Authority or other entity, if funds have been transferred to that entity, for the following purposes:

1. Payment of the actual costs of designing and constructing public facilities for which the fees may be expended, as described in the resolution or resolutions adopted pursuant to section 18-803(B);

2. Providing refunds as described in section 18-815;

3. Funding the city’s administration of the fee program implemented by the provisions of this chapter; and

4. Using the same as may be permitted under Section 66006 of the Government Code.

B. Unless used or refunded as otherwise permitted under this section, moneys, including any accrued interest, not assigned in any fiscal year shall be retained in the same fund or account until the next fiscal year.

C. The city council, by resolution, may authorize the city manager to transfer funds, including any accrued interest, to (1) another public entity with the authority to manage the fund pursuant to Section 66006 of the Government Code, or (2) another public entity with the authority to undertake construction of the public facility funded by the fee.

Section 18-815 Disposition of unexpended or unappropriated fee revenues shall be added as follows:

Sec. 18-815. – Disposition of unexpended or unappropriated fee revenues.

A. Commencing with the fifth fiscal year following the first fiscal year of receipt of any revenues from the fees established, assessed and levied pursuant to the provisions of this chapter, and in each fiscal year thereafter, the city treasurer, or his or her designee, shall provide the city council ITEM 11
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with a report which sets forth the total amount of all such fee revenues that were received and deposited in the appropriate special funds and accounts in each fiscal year prior to the date of such report, but which remain unexpended or unappropriated by the city or another public entity as referenced in section 18-814 as of the date of the report; provided, however, that no report shall be required in any year in which there were no unspent or unappropriated fee revenues in such fund which were received and deposited in the fund more than five years prior to the date of the report.

B. Upon review of each report described in subsection (A) of this section, the city council shall take one of the following actions required by Section 66001 of the Government Code with respect to any unexpended or unappropriated fee revenue in the appropriate special fund which was received and deposited in such fund five or more years prior to the date of such report:

1. Appropriate all or any part of such unexpended or unappropriated fee revenue for the construction, installation, acquisition or provision of the public facilities for which the fee was imposed;

2. Make findings with respect to all or any part of such unexpended or unappropriated fee revenue which identify the purposes to which the revenue is to be put and which demonstrate a reasonable relationship between such fee revenue and the purpose for which it was imposed; and/or

3. Provide for the refund of all or any part of such unexpended or unappropriated fee revenue, together with any actual interest accrued thereon, in the manner described in subsection (e) of Section 66001 of the Government Code, to the current record owner of any property for which a fee was paid; provided, that if the administrative costs of refunding such fee revenue exceed the amount to be refunded, the city council, after considering the matter at a public hearing, notice of which is given in the manner provided for in subsection (f) of Section 66001 of the Government Code, may appropriate such revenue for any other public facility in the benefit district area for which development fees are charged or otherwise imposed pursuant to this chapter and which the city council determines will benefit the properties for which such development impact fee was charged or otherwise imposed; and further provided, that the portion of any fee revenue received by the city as reimbursement of its costs in administering the provisions of this chapter shall not be refunded, but shall be applied to reduce the amount of the fee charged for administrative purposes.

4. The provisions of subsections (d), (e), and (f) of Government Code Section 66001 shall apply fully to any refund of fees remaining unexpended or uncommitted in the appropriate special fund for five or more years after deposit, and the provisions of this section shall be subordinate to the said state statute and shall be applied consistently therewith.

Section 18-816 Other fee and dedication requirements shall be added as follows:

Sec. 18-816. – Other fee and dedication requirements.

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The provisions of this chapter shall not release any owner of residential or nonresidential property located within the benefit district area from the following obligations:

A. Paying other applicable fees relating to development of property, including, without limitation, the application fees, processing fees, mitigation fees, and other development fees within the control of the city.

B. Complying with any public facility requirements which are imposed pursuant to applicable law, including, without limitation, the provisions of the city code.

C. Complying with any requirement to dedicate property for public use pursuant to applicable law, including without limitation, the provisions of the city code and the Government Code, at the time of approval of a tentative subdivision map, tentative master parcel map, certificate of compliance, building permit or other land use entitlement.

D. Complying with any obligation to pay fees or exactions, or to comply with mitigation requirements for identified project-related environmental effects.

Section 18-817 Annual reports and review fee shall be added as follows:

Sec. 18-817. – Annual reports and review fee.

A. No later than 180 days following the end of each fiscal year, the city manager or his or her designee shall prepare a report for the city council identifying the following:

1. The beginning and ending balances of the public facilities fee funds, and related accounts, for the fiscal year;

2. The fee, interest, and other income collected in said funds during the fiscal year;

3. The amount of expenditures from said funds categorized by the public facilities to which such expenditures relate;

4. An accounting of all refunds and reimbursements which the city is obligated to make or has made pursuant to this chapter;

5. The reallocation, if any, of unexpended or unappropriated fee revenue made pursuant to section 18-815(B)(3) and subsection (f) of Government Code Section 66001;

6. The public facilities constructed and to be constructed utilizing the revenues collected from the fee established by this chapter, the continued need for such public facilities, and the reasonable relationship between such need and the impacts of development for which the fee is charged;

7. The estimated costs of the public facilities described in the report;

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8. The amount of any automatic annual adjustment made pursuant to section 18-811, including the basis of the calculation therefor; and

9. Any additional information required by the Sacramento Transportation Authority for the fees imposed pursuant to section 18-803(A)(1)(a). The city manager may submit the report prepared by the Sacramento Transportation Authority for the fees imposed pursuant to section 18-803(A)(1)(a) if said report includes all of the foregoing information set out in this subsection (A).

B. In addition to the report matters set forth in subsection (A) of this section, at least once each fiscal year the city manager shall present to the city council a proposed capital improvement program prepared by the city general services director for the various public facilities referenced in the resolution or resolutions adopted pursuant to section 18-803(B), assigning moneys (including any accrued interest) from the appropriate special fund to specific improvement projects, acquisitions, and related expenses. The adoption of such capital improvement program shall comply with the provisions of Government Code Section 66002.

C. In preparing the report pursuant to this section, the city manager shall adjust the estimated costs of the public facilities in accordance with the index specified in the resolution adopted pursuant to section 18-803(B) and 18-811, or other reasonable standard, for the elapsed time period from the first day of the previous July or the date that the cost estimate was developed.

D. The report prepared pursuant to subsection (A) of this section shall be made available to the general public pursuant to the provisions of subsection (b) of Government Code Section 66006.

The city council shall review the information contained in said report at its next regularly scheduled public meeting, but not sooner than 15 days after the report is made available to the public. The scheduling of the hearing and notice thereof shall comply with the provisions of subsection (b) of Government Code Section 66006.

E. The city council, by resolution, may revise the fees established by this chapter to reflect the findings made from its consideration of the annual report and to include additional public facility projects previously not foreseen as being needed; provided, that all such revisions shall be consistent with the applicable financing plan, expenditure plan and/or nexus study referenced in section 18-803(A).

F. The report prepared by the city manager and its review by the city council, as well as any findings thereon, shall be subject to the provisions of subsection (d) of Government Code Section 66001, to the extent applicable.

Section 18-818 California state law shall be added as follows:

Sec. 18-818. – California state law.

The provisions of this chapter, and any resolution adopted pursuant hereto, shall at all times be subject and subordinate to the provisions of Title 5 (commencing with Section 66000), Division 1, of Title 7 of the Government Code, as the same presently exists or may hereafter be amended ITEM 11
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or renumbered from time to time, to the extent the same are applicable. In the event of any applicable conflict between the provisions of this chapter and the state law, the latter shall control.

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Citrus Heights City Council MeetingsNovember 13, 2024

Citrus Heights City Council Meetings
November 13, 2024