Agenda packet, regular meeting, fourth session — Citrus Heights City Council Meetings, May 27, 2026 (part 1 of 2)

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Special and Regular Meetings of Wednesday, May 27, 2026 City Hall Council Chambers 6360 Fountain Square Drive, Citrus Heights, CA 3:30 PM SPECIAL MEETING
6:00 PM REGULAR MEETING
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 before the item is heard. When you are called upon to speak, step forward to the podium and state your name for the record. Normally, speakers are limited to three (3) minutes each. The Mayor has the discretion to lengthen or shorten the allotted times. Alternatively, the public may submit written comments 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 comments will not be read during the City Council meeting but will be forwarded to all Council Members and become part of the public record.

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

LEVINE ACT:

The Levine Act (Government Code Section 84308) requires parties to a proceeding before the City of Citrus Heights involving a license, permit or other entitlement for use to disclose any contribution over $500 made to a City elected or appointed officer (including Council Members and Planning Commissioners) within the 12 months before and 12 months after the City decision, and are prohibited from making, participating in, or using their official position to influence the decision.

May 27, 2026 City Council Agenda Packet
05-27-26 SPECIAL AND REGULAR COUNCIL AGENDA PACKET.PDF

CALL SPECIAL MEETING TO ORDER

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

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.

CLOSED SESSION

2. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to California Government Code Section 54957.6
Agency designated representatives: Ashley Feeney, City Manager, Ryan Jones, City Attorney, and Patrick Clark, Negotiator Employee Organization: Citrus Heights Police Officers Association, Citrus Heights Police Employees Association, and unrepresented employees

REPORT OUT OF CLOSED SESSION

IN PERSON ONLINE ON TELEVISION
City Council Meetings take place in the City
Hall Council Chambers.

Watch the livestream and replay past
meetings on the City website.

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

Documents:

CLOSED SESSION

REPORT OUT OF CLOSED SESSION

ADJOURNMENT

CALL REGULAR MEETING TO ORDER

1. Flag Salute

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

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. San Juan High School Student Council Report

5. Presentation By Republic Services – Annual Report And Scholarship Awards

6. Annual Presentation By The Sacramento-Yolo Mosquito & Vector Control District

7. Proclamation Of The City Of Citrus Heights Recognizing Leatherby’s As The 2026 Small Business Of The Year In Assembly District 7

PUBLIC COMMENT

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.

8. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of March 11, 2026

9. SUBJECT: AB 481 – Annual Renewal Of Military Equipment Policy For The Police Department And Review Of Annual Report
STAFF REPORT: A. Turcotte / K. Frey / K. Lewis / J. Aguilar RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Renewing its Military Equipment Policy

10. SUBJECT: Auburn Boulevard Complete Streets, Phase 2 Project – Authorize Additional Work STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the City Council move the following:
a. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Change Orders up to 11.3% of the Contract Amount with George Reed, Inc. for the Auburn Boulevard Complete Streets, Phase 2 Project and Increasing the Total Authorized Construction Budget to $32,168,856.87; and
b. Adopt Resolution No. 2026-____ , A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Amendment No. 1 to the Agreement for Professional Services with Psomas for the Auburn Boulevard Complete Streets, Phase 2 Project; and c. Adopt Resolution No. 2026-____, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Amendment No. 5 to the Agreement for Professional Services with Bennett Engineering for the Auburn Boulevard Complete Streets, Phase 2 Project.

11. SUBJECT: Appointment To Sacramento Homeless And Housing Planning Task Force STAFF REPORT: A. Van / C. Kempenaar / N. Piva
RECOMMENDATION: Staff recommends the City Council move the following:
a. Appoint MariJane Lopez-Taff, Mayor, as the City’s primary representative on the Sacramento Homeless and Housing Planning Task Force; and
b. Appoint Porsche Middleton, Vice Mayor, as the City’s alternate representative to the Planning Task Force; and c. Authorize these appointments to serve the duration of the Task Force term or until such time as the City Council makes subsequent appointments or modifications.

12. SUBJECT: Award Of Banking Services Contract
STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Staff recommends the City Council Authorize the City Manager to Execute an Agreement with River City Bank for Citywide Banking Services
b. Appoint Porsche Middleton, Vice Mayor, as the City’s alternate representative to the Planning Task Force; and c. Authorize these appointments to serve the duration of the Task Force term or until such time as the City Council makes subsequent appointments or modifications.

PUBLIC HEARINGS

13. SUBJECT: Ordinance Amending Citrus Heights Municipal Code Chapter 22 – Businesses, Article VIII. – Massage Establishments
STAFF REPORT: A. Turcotte / K. Frey / W. Dunning / D. Miller / C. Kempenaar / A. Bermudez RECOMMENDATION: Move to Introduce for a First Reading, read by title only, and waive the first full reading of Ordinance No. 2026-_____, An Ordinance of the City Council of the City of Citrus Heights, California, Amending Citrus Heights Municipal Code Chapter 22 – Businesses, Article VIII. – Massage Establishments

14. SUBJECT: 2026 Zoning Code Updates
STAFF REPORT: C. Kempenaar / A. Bermudez / S. Lui
RECOMMENDATION: Staff recommends the following:
a. Move to Determine the Proposed Amendments are Exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the Guidelines; and
b. Move to Introduce for a First Reading, read by title only, and waive the first full reading of Ordinance No. 2026-_____, as shown in Attachment 1, an Ordinance of the City Council of the City of Citrus Heights, California, Amending Various Sections of Chapter 106 of the Citrus Heights Municipal Code (Zoning Code Section).

REGULAR CALENDAR

15. SUBJECT: Presentation On Housing Types: ADUs And Cottage Courts STAFF REPORT: C. Kempenaar / A. Bermudez / N. Piva
RECOMMENDATION: Receive and file staff presentation. No action requested.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

CITY MANAGER ITEMS

ADJOURNMENT
AMERICANS WITH DISABILITIES ACT:

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.

WRITINGS RECEIVED AFTER AGENDA POSTING:

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.

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

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

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Special and Regular Meetings of Wednesday, May 27, 2026 City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA Special Meeting 3:30 p.m.

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 before the item is heard. When you are called upon to speak, step forward to the podium and state your name for the record. Normally, speakers are limited to three (3) minutes each. The Mayor has the discretion to lengthen or shorten the allotted times. Alternatively, the public may submit written comments by 4:00 p.m. on the meeting day by completion of an online Speaker Card at https://www.citrusheights.net/FormCenter/City-CouncilMeetings-Speaker-Card-30. Written comments will not be read during the City Council meeting but will be forwarded to all Council Members and become part of the public record.

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

IN PERSON ONLINE ON TELEVISION
LEVINE ACT:

May 22, 2026
_______________________
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, May 27, 2026

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SPECIAL CITY COUNCIL MEETING
3:30 PM

CALL SPECIAL MEETING TO ORDER

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

PUBLIC COMMENT

CLOSED SESSION

2. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to California Government Code Section 54957.6
Agency designated representatives: Ashley Feeney, City Manager, Ryan Jones, City Attorney, and Patrick Clark, Negotiator
Employee Organization: Citrus Heights Police Officers Association, Citrus Heights Police Employees Association, and unrepresented employees

REPORT OUT OF CLOSED SESSION

ADJOURNMENT

CALL REGULAR MEETING TO ORDER

1. Flag Salute

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

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. San Juan High School Student Council Report

5. Presentation by Republic Services – Annual Report and Scholarship Awards

6. Annual Presentation by the Sacramento-Yolo Mosquito & Vector Control District

7. Proclamation of the City of Citrus Heights recognizing Leatherby’s as the 2026 Small Business of the Year in Assembly District 7

REGULAR CITY COUNCIL MEETING
6:00 PM
Agenda Packet Page 2
Citrus Heights City Council Wednesday, May 27, 2026

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PUBLIC COMMENT
This is an opportunity to make a public comment on non-agenda items. 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 (Estimated Start Time 7:15 p.m.)
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

8. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of March 11, 2026

9. SUBJECT: AB 481 – Annual Renewal of Military Equipment Policy for the Police Department and Review of Annual Report
STAFF REPORT: A. Turcotte / K. Frey / K. Lewis / J. Aguilar RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Renewing its Military Equipment Policy

10. SUBJECT: Auburn Boulevard Complete Streets, Phase 2 Project – Authorize Additional Work STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the City Council move the following:
a. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Change Orders up to 11.3% of the Contract Amount with George Reed, Inc. for the Auburn Boulevard Complete Streets, Phase 2 Project and Increasing the Total Authorized Construction Budget to $32,168,856.87; and
b. Adopt Resolution No. 2026-____ , A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Amendment No. 1 to the Agreement for Professional Services with Psomas for the Auburn Boulevard Complete Streets, Phase 2 Project; and
c. Adopt Resolution No. 2026-____, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Amendment No. 5 to the Agreement for Professional Services with Bennett Engineering for the Auburn Boulevard Complete Streets, Phase 2 Project.

11. SUBJECT: Appointment to Sacramento Homeless and Housing Planning Task Force STAFF REPORT: A. Van / C. Kempenaar / N. Piva
RECOMMENDATION: Staff recommends the City Council move the following:
a. Appoint MariJane Lopez-Taff, Mayor, as the City’s primary representative on the Sacramento Homeless and Housing Planning Task Force; and b. Appoint Porsche Middleton, Vice Mayor, as the City’s alternate representative to the Planning Task Force; and
Agenda Packet Page 3
Citrus Heights City Council Wednesday, May 27, 2026

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c. Authorize these appointments to serve the duration of the Task Force term or until such time as the City Council makes subsequent appointments or modifications.

12. SUBJECT: Award of Banking Services Contract
STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Staff recommends the City Council Authorize the City Manager to Execute an Agreement with River City Bank for Citywide Banking Services PUBLIC HEARINGS (Estimated Start Time 7:20 p.m.)

14. SUBJECT: 2026 Zoning Code Updates
STAFF REPORT: C. Kempenaar / A. Bermudez / S. Lui
RECOMMENDATION: Staff recommends the following:
a. Move to Determine the Proposed Amendments are Exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the Guidelines; and b. Move to Introduce for a First Reading, read by title only, and waive the first full reading of Ordinance No. 2026-_____, as shown in Attachment 1, an Ordinance of the City Council of the City of Citrus Heights, California, Amending Various Sections of Chapter 106 of the Citrus Heights Municipal Code (Zoning Code Section).

REGULAR CALENDAR (Estimated Start Time 8:00 p.m.)

15. SUBJECT: Presentation on Housing Types: ADUs and Cottage Courts STAFF REPORT: C. Kempenaar / A. Bermudez / N. Piva
RECOMMENDATION: Receive and file staff presentation. No action requested.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

CITY MANAGER ITEMS

ADJOURNMENT
AMERICANS WITH DISABILITIES ACT:

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.

Agenda Packet Page 4
Citrus Heights City Council Wednesday, May 27, 2026

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WRITINGS RECEIVED AFTER AGENDA POSTING:

Agenda Packet Page 5

CITY OF CITRUS HEIGHTS

CITY COUNCIL

MINUTES
Special and Regular Meetings of Wednesday, March 11, 2026 City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA 95621 Teleconference Location – 6412 Oakcreek Way, Citrus Heights, CA 95621

CALL SPECIAL MEETING TO ORDER
The special meeting was called to order at 5:54 p.m. by Mayor Lopez-Taff.

1. Roll Call: Council Members present: Karpinski-Costa, Nelson, *Schaefer, Middleton, Lopez-Taff Council Members absent: None
Staff Members present: Feeney, Jones, Van
*Note: Council Member Schaefer joined remotely for “just cause” pursuant to Government Code Section 54953.8.3(c)(5).

PUBLIC COMMENT
None

CLOSED SESSION

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4) Number of potential cases: 1
The City Council, City Manager and City Attorney participated in the closed session.

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

ADJOURNMENT
Mayor Lopez-Taff adjourned the special meeting at 6:03 p.m.

CALL REGULAR MEETING TO ORDER
The regular meeting was called to order at 6:04 p.m. by Mayor Lopez-Taff.

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

2. Roll Call: Council Members present: Karpinski-Costa, Nelson, *Schaefer, Middleton, Lopez-Taff Council Members absent: None
Staff Members present: Bermudez, Feeney, Huber, Jenkins, Jones, Kempenaar, Van and department directors.
*Note: Council Member Schaefer joined remotely for “just cause” pursuant to Government Code Section 54953.8.3(c)(5). All votes taken during this teleconferenced meeting were conducted by roll call.

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Citrus Heights City Council Wednesday, March 11, 2026

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

APPROVAL OF AGENDA
ACTION: On a motion by Council Member Karpinski-Costa, seconded by Vice Mayor Middleton, the City Council approved the agenda.

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

PRESENTATIONS

4. Proclamation of the City of Citrus Heights Proclaiming March 2026 as Women’s History Month Council Member Karpinski-Costa read and presented the proclamation to Barbara Pryor with Soroptimist International of Citrus Heights; Jeanmarie Willbee with the Citrus Heights Women’s Club; and Lynne Godwin, President-elect of the Sutter District of the General Federation of Women’s Clubs.

5. Proclamation of the City of Citrus Heights Honoring Honey Donuts as the Inaugural Citrus Heights Business of Distinction – Legacy Business
Council Member Nelson read the proclamation. Director Huber accepted on behalf of Honey Donuts.

PUBLIC COMMENT
Kathy Morris, president of the Residents’ Empowerment Association of Citrus Heights (R.E.A.C.H.), expressed appreciation to the City Council and staff for the Community Potluck. She gave special thanks to Communications Officer Brown for emceeing the event.

David Warren shared concerns about the hazardous waste provisions in the solid waste contract. He encouraged the City to create a new set of road resurfacing priorities in case funding runs out. He spoke in opposition to the planned Sunrise Sports Center.

City Clerk Van read the following written public comment submitted by Alfred Sanchez, “A service for Adam Kampf is scheduled for March 19th at 3pm at Celtic Cross Church 5839 Dewey Dr.

Everyone is welcome to attend. He is missed by his family and friends.”

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES
Council Member Karpinski-Costa attended Sacramento County Supervisor Rodriguez’s community meeting. She went to the R.E.A.C.H. Community Potluck. She attended the Citrus Heights Chamber of Commerce Community Awards and a Sacramento Area Sewer District meeting. She went to the Eagle Scout ceremony for James Feeney, whose project was to build a raised garden bed on the Sensory Trail inside the Arcade Creek Park Preserve.

Council Member Nelson stated she had nothing to report on for this meeting.

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Citrus Heights City Council Wednesday, March 11, 2026

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Council Member Schaefer thanked Mayor Lopez-Taff for serving as alternate on his behalf at the Sacramento Regional Transit District (SacRT) Board and Sacramento Area Council of Governments (SACOG) meetings. He provided a health update and emphasized the need for blood donations. He encouraged everyone to reach out to Vitalant blood bank, where he will be coordinating an upcoming blood drive.

Vice Mayor Middleton attended the Royal Stage’s 15th Anniversary Gala. She went to a Sacramento Metropolitan Cable Television Commission Board meeting and reported on Public, Educational, and Governmental funding (PEG) shortages. She also announced that she became the Vice Chair of the Commission. She visited local businesses Cogir and House of Moons Jiu-Jitsu. She attended the National Association of Women Business Owners’ (NAWBO) Outstanding Women Leader Awards with Mayor Lopez-Taff. She went to the Community Potluck and Chamber Awards.

Mayor Lopez-Taff attended a meeting of the Sacramento Public Library Authority Board and reported that she became the Vice Chair. She attended a meeting of the Sacramento Metropolitan Air Quality Management District. She went to the Sacramento Chinese of Indochina Friendship Association’s Spring Festival Banquet with City Manager Feeney. She attended Supervisor Rodriguez’s community meeting and the Outstanding Women Leader Awards. She went to the Community Potluck and Chamber Awards.

CONSENT CALENDAR

6. SUBJECT: Approval of the Program Year 2025 Draft Consolidated Annual Performance and Evaluation Report (CAPER)
STAFF REPORT: C. Kempenaar / N. Piva
RECOMMENDATION: Adopt Resolution No. 2026-011, A Resolution of the City Council of the City of Citrus Heights, California, Approving the Consolidated Annual Performance and Evaluation Report for Program Year 2025 and Directing Staff to Submit, with Minor Modifications as Necessary, the CAPER Report to the U.S. Department of Housing and Urban Development

7. SUBJECT: 2025 General Plan Annual Progress Report
STAFF REPORT: C. Kempenaar / A. Bermudez / S. Lui
RECOMMENDATION: Adopt Resolution No. 2026-012, A Resolution of the City Council of the City of Citrus Heights, California, Accepting the 2025 General Plan Annual Progress Report

8. SUBJECT: Roseville Road/Butternut Drive and Systemic Signalized Intersection Improvements Project – HSIPSL-5475(050)
STAFF REPORT: R. Cave / L. Blomquist / D. Kehrer
RECOMMENDATION: Staff recommends the following:
a. Adopt Resolution No. 2026-013, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with McGuire Hester for Construction of the Roseville Road/Butternut Drive and Systemic Signalized Intersection Improvements Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) under Sections 15301, 15302, and 15303; and b. Adopt Resolution No. 2026-014, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Professional Services Agreement with Coastland Civil Engineering, LLP to Provide Construction Management, ITEM 8 Agenda Packet Page 8
Citrus Heights City Council Wednesday, March 11, 2026

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Inspection, and Materials Testing Services for the Roseville Road/Butternut Drive and Systemic Signalized Intersection Improvements Project.

ACTION: On a motion by Council Member Nelson, seconded by Vice Mayor Middleton, the City Council adopted Consent Calendar Items 6, 7 and 8.

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

REGULAR CALENDAR

9. SUBJECT: Economic Development and Participation Agreement – Sunrise Tomorrow – Sunrise Sports Center
STAFF REPORT: A. Feeney / C. Kempenaar / M. Huber
RECOMMENDATION: Adopt Resolution No. 2026-015, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Enter Into an Economic Development and Participation Agreement (EDPA) with The Mettle Shop to Support the Redevelopment of a Catalyst Project for a Portion of the Sunrise Tomorrow Site and Finding the Agreement is Exempt from CEQA per CEQA Guidelines 15004 (b)(4) City Manager Feeney introduced the Sunrise Sports Center Project and thanked Director Kempenaar, Director Huber and City Attorney Jones for their work. He provided a presentation detailing the history of the 100-acre Sunrise Mall property and the opportunity for reinvestment at the site, given the mall’s continued decline. The Sports Center is a Catalyst Project and Economic Development Replacement Project to kick off the vision of the Sunrise Tomorrow Specific Plan. This item is solely for an Economic Development and Participation Agreement; if approved, land use entitlements would come later. He discussed the challenges of redevelopment and outlined the City Council’s 2025 Strategic Objective to meet the goal of Diversifying for a Vibrant Economy. The EDPA, a public-private partnership, is in alignment with all the elements of the Strategic Objective. The City’s partners on the project are The Mettle Shop and Tallen Capital Partners, LLC.

Joe Wagoner, CEO of the Mettle Shop, introduced the company and its team and presented a summary of the proposed Sports Center. The project is comprised of 322,00 sq. ft. of indoor and outdoor facilities, including an arena, NHL-sized ice sheets, turf fields, restaurants and commercial spaces and community meeting spaces. The center would help meet the high demand in the Sacramento region for ice sports and events. Martha Lofgren presented the economic impacts of the project; the estimated direct tax revenue for the City of Citrus Heights is over $787,000 annually. She discussed the next steps, which include technical studies, environmental analysis, a financing plan, community outreach and public hearings.

Terry Tallen, founder and CEO of Tallen Capital Partners, LLC., introduced his organization and addressed the Council.

City Manager Feeney outlined how the proposed bonding structure and safeguards would work. City Council questions and comments followed.

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Citrus Heights City Council Wednesday, March 11, 2026

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Public Comment
• Elaine spoke on behalf of her neighbors, who are excited about the project but concerned about the traffic, noise and environmental impacts.
• Janie Ricketts spoke in support of the Sunrise Sports Center. • Jeannie Burns spoke in support of the Sunrise Sports Center. • Sheri Merrick spoke in support of the Sunrise Sports Center. • Caryl Balko spoke in support of the Sunrise Sports Center. • City Clerk Van read the following written public comment submitted by Greg Pickard: “As a resident & property owner for the past 28 years in Citrus Heights I'm 100% in favor of the city moving forward with the Economic and Development Participation Agreement with the Mettle Shop. I'm encouraging all city council members to vote yes to move this item forward.”
• City Clerk Van read the following written public comment submitted by Hilary Cary: “As someone who has worked as a play leader in Citrus Heights,a Parks and Recreation program developer, and an aspiring recreational therapist, I’ve seen firsthand how recreational spaces can transform communities. That’s why I’m incredibly excited about the resurgence of rollerskating happening right here in our area with the proposal of a sports complex and Sunrise rollerland under new ownership.

Rollerskating isn’t just a hobby—it’s a powerful community activity that brings together people of all ages, backgrounds, and skill levels. Our local skating scene is vibrant and growing, with dedicated skaters who come not only from our neighborhood but also travel from the Bay Area and other parts of the country just to skate at Sunrise Rollerland and the roller rinks that still remain.

What makes rollerskating special is the combination of nostalgia, music, movement, and connection. It brings back the joy many people remember from childhood while also creating new opportunities for youth, families, and adults to gather, stay active, and build community. Just ask our 80-year-olds that are still rolling! Spaces like skating rinks offer something that is increasingly rare: a place where people can unplug, move their bodies, enjoy music, and simply have fun together. As someone who believes deeply in the power of recreation to support mental health, physical activity, and social connection, I see rollerskating as more than entertainment—it’s community wellness in action.

With new ownership and renewed energy around spaces like Sunrise Rollerland, there is a real opportunity to support the continued resurgence of rollerskating. By investing in these kinds of recreational spaces, we are investing in community, culture, and joyful movement for generations to come. I would love to be a part of this and a part of a discussion of creating an outdoor skate venue that can connect the neighboring trails and parks.”
• City Clerk Van read the following written public comment submitted by Renee Barajas: “Yes yes yes!! A great idea”
• City Clerk Van read the following written public comment submitted by GiGi Rayford: “I am writing in support of the Sunrise Sports Center.

For years, the only proposals we saw for the Sunrise Mall property were gas stations, car washes and more drive-throughs …oh and a Home Depot. While those businesses have their place, they don’t truly add to the fabric of our community.

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A sports arena is different. It brings in youth sports, regional tournaments and families from outside our city. This complex will import new money into Citrus Heights providing a massive boost to our local economy.

I also want to address the sudden concern about traffic. Many of the loudest voices raising that issue today strongly supported bringing In N Out and Chick fil A to this same street which are two of the highest traffic generating businesses in the country. I did not support those projects, especially since businesses like that mostly rely on local residents feeding their own economy to keep them in business. If we were willing to accept that level of traffic for fast food, it certainly makes more sense to support a project that brings regional visitors and new economic activity into Citrus Heights.

I am also impressed by the scale and fiscal logic of this deal. The arena uses only 11 acres of the nearly 100-acre parcel, leaving plenty of room for the rest of the Sunrise Tomorrow vision.

Most importantly, the developers chose Citrus Heights over cities like Folsom specifically because of our balanced budget and strong reserves. That is a testament to the work you all are doing here.

This project is a much better direction for our future than another fast food joint, car wash or a Home Depot. It brings visitors, new business and a fresh energy that Citrus Heights deserves.

Thank you, Council members and city staff for moving our city forward. We ride at Dawn!” • City Clerk Van read the following written public comment submitted by Randall McCarley: “I support the redevelopment of Sunrise Mall. The community needs something more useful in that space. The sports complex is intriguing. That said, please also consider the existing tenants. How can their businesses be preserved?”
• City Clerk Van read the following written public comment submitted by Irene Kim: “My child’s second home is here at the Royal Stage Theatre, located at the current Sunrise Mall. I am in support of the new sports complex only if the theater remains, or if they are given adequate compensation and equally comparable or more for their situation. The theater is home to many children and offers great community service and value. It would be a huge loss to the city and surrounding areas if any disruption to the theater occurs.”
• City Clerk Van read the following written public comment submitted by Jessica Fehey: “I believe that whatever is decided with the renovation of the Sunrise Mall, the space in which the current Royal Stage Theater resides should remain untouched. This theater and group means a lot to the community and the people involved and taking this away would have a huge negative impact on the community.” • City Clerk Van read the following written public comment submitted by Marolyn Yaranon: “I support the redevelopment of Sunrise Mall as long as Royal Stage is not affected. My daughter, along with my nephew, has participated in many of the programs Royal Stage has offered over the years. Their dedication and genuine love for the kids has made a lasting impact on our family.

Through Royal Stage, we have watched our daughter grow in confidence and flourish in ways we never expected. It has also been incredible to see the positive impact the program has on so many other children and families who attend and participate in their performances.

Sunrise Mall does need renovations and improvements, and we support efforts to bring new life to the space. However, I strongly encourage those involved in the redevelopment to consider the value Royal Stage brings to our community and the opportunities it provides for our kids.

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Programs like this are important for youth development, creativity, and community connection. Please keep Royal Stage in mind when making decisions about the future of Sunrise Mall.” • City Clerk Van read the following written public comment submitted by Tami Smock: “I only support the Sunrise Mall renovation if Royal Stage can maintain its space.. Royal Stage brings so much to our community and to our children. They work with families who otherwise wouldn't be able to put their children into dance/theater programs.”
• City Clerk Van read the following written public comment submitted by Christy Osterberg: “I am in support of the redevelopment of the Sunrise mall IF Royal Stage is able to maintain their space. Royal Stage has been extremely important to my family over the years. My daughter and I have been able to participate in classes and shows together. She is autistic and Royal Stage has been instrumental in her growth and development.”
• City Clerk Van read the following written public comment submitted by Katy Cutlip: “We are in support of the Sunrise Sports Center being opened where Sunrise Mall currently stands, ONLY IF the Royal Stage Theater is allowed to stay open in their current location at the mall. That theater provides so much to my children, and others like them, who have found a safe space in Royal Stage, and the arts. They provide scholarships to so many that wouldn’t be able to participate otherwise. It’s a beautiful community they have cultivated, and losing their theater space would be an absolute tragedy.” • City Clerk Van read the following written public comment submitted by Aaliyah Adams: “Royal stage is my home! I feel so at home and welcomed. It is a place I can be myself, spend time with others, draw closer to God. and do what I love like dance and musical theatre. Royal stage is an amazing place and it has saved so many people including me and my family. I honestly don’t know where I would be in my life and journey which out this organization!!!! I could go on and on about my testimonies for this place. I just feel so appreciated here and that is something that has changed my life in the best way possible.” • City Clerk Van read the following written public comment submitted by Amanda Adams: “I am in support of the Sunrise Sports Center as long as Royal Stage performing Arts is able to maintain their space. This theater space has been such a gift to my family for several years. It helps my kids feel like they have a place to be themselves!
As someone who has lived in the area for 40 years, I’m thrilled to see how much love and life Royal Stage has brought to the area!
• City Clerk Van read the following written public comment submitted by Mackenzie: “While I support the proposed redevelopment of Sunrise Mall, I ask that you consider the impact it will have on current tenants.

Our community has waited a long time to see real investment and a new future for this abandoned, deteriorating property. Many residents are eager for progress, and this project offers an exciting opportunity for Citrus Heights.

However, at the same time, I respectfully urge you to preserve the space currently occupied by Royal Stage Performing Arts Company.

Royal Stage is far more than a tenant. It is a nonprofit that has become a vital part of this community, making performing arts accessible to children, teens, and families who might not otherwise feel welcome or be able to afford participation. For many in Citrus Heights and the surrounding area, Royal Stage has been a place of belonging, confidence, creativity, and growth. It has changed lives. I have seen it firsthand.

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Its theater space at Sunrise Mall is central to that mission. As the Council considers this next chapter for the mall, I urge you not to displace an organization that is already serving the community in such a meaningful way.

Please support redevelopment in a way that also protects Royal Stage’s home. Progress and community enrichment do not have to come at the expense of each other. Citrus Heights deserves both a revitalized mall property and a future where organizations like Royal Stage can continue to thrive.” • City Clerk Van read the following written public comment submitted by Marijayne Hunziker: “I would like to say I am for the sports center redevelopment plan ONLY if Royal Stage keeps their theater space. Royal Stage is a crucial part of the Christian revival in young kids and adults. Royal Stage provides so many opportunitys that otherwise would not be available to many low income and at risk youth and adults.” • City Clerk Van read the following written public comment submitted by Karla Cardozo: “I am in support of the redevelopment, if Royal stage is able to maintain in their space. Royal stage keeps many children doing constructive artful things.”
• City Clerk Van read the following written public comment submitted by Hueling Lee: “My daughter is able to participate for the first time in a play because Royal Stage Theater provided her with a scholarship. It’s critical that such opportunities continue to exist. I’m in favor of redevelopment only if Royal Stage Theater is has the space to continue providing services for kids like mine.” • City Clerk Van read the following written public comment submitted by Miranda Shearer: “I am fully in support of the redevelopment, IF Royal Stage is able to maintain its space. This is a meaningful organization where hundreds of families from all demographics are served by being given access to the arts at discounted prices or even free, financially supported for therapy or basic needs, and overall, it is a safe space for many. I work and volunteer with this organization and have personally seen the lives of children and whole families transformed through Royal Stage. In addition, this theater space is weekly rented out to other organizations, schools, groups, and even a church in the community, making it a blessing and an important space for countless people.”
• City Clerk Van read the following written public comment submitted by Amber Horigan: “Please keep a space at Sunrise Mall for Royal Stage. My daughter and I came from a domestic violence situation, and Royal Stage has supported us every step of the way through the arts and their community. I feel the current sports complex plan can do well with keeping Royal Stage dance and theater company.” • City Clerk Van read the following written public comment submitted by Tammy Warta: “I am the owner of Royal Stage. We welcome the sports center and appreciate the vision for revitalizing the area. However, we hope that these plans can move forward while allowing Royal Stage to remain in our current mall space. Royal Stage is the only live community theater in Citrus Heights, welcoming participants and audience members of all ages each year. Our programs include theater, dance, and arts education for children, teens, and adults, as well as summer camps and community performances. A significant part of our mission is serving low-income families, and many attend for free. Our current space has been retrofitted to meet theater and safety requirements, with over $250,000 raised and invested to pass and maintain compliance. Because of an agreement with Namdar, our rent is currently $1,500 per month plus utilities. As a charitable organization that prioritizes accessibility, we would not be able to afford significantly higher rent elsewhere. Relocating would likely force Royal Stage to close, eliminating a valued community theater, youth arts program, summer camps, and family-friendly performances for residents. We respectfully ask the City and Mettle Shop to consider the many children, teens, and families who view Royal Stage as a safe and creative home. If remaining is not an option, we respectfully ask the City to actively assist with our relocation.”
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• City Clerk Van read the following written public comment submitted by Hannah Adams: “I am in full support of the Sunrise Sports Center UNLESS It affects Royal Stage Performing and Visual Arts and their location in the Sunrise Mall. Please preserve the Royal Stage Theatre at whatever cost. They have been an integral part of my life for many years and have been there for me during many difficult times. Thank you for considering my request.”
• City Clerk Van read the following written public comment submitted by Natalia Corona: “I am in support of the redevelopment as long as Royal Stage keeps their space. Royal Stage is a nonprofit that provides a space for people of all ages to come together and do dance or theatre. Royal Stage is all about community and they offer scholarships to allow everyone to join.” • City Clerk Van read the following written public comment submitted by Darcy Flathmann: “I love the idea of redevelopment of any kind, but ONLY if there is space for the theater company Royal Stage. This space is so important and they deserve to be supported by the community and in addition to sports, we need to honor the arts too.”
• City Clerk Van read the following written public comment submitted by Ellen Calderon: “In regards to the approval of the Sunrise Sports Center on the current Sunrise Mall site, this sounds like a great idea and great use of the space BUT ONLY IF you let the Royal Stage Theater continue their amazing work in their current spot inside Sunrise Mall. Royal Stage Theater is the ONLY community theater group in Citrus Heights, and brings hundreds of community members together for classes, shows, and other events.

Royal Stage Theater is a shining star in Citrus Heights and, as loyal Mall tenants for years, through the entire downfall, should BE A PART OF THE UPGRADE, and not kicked to the curb in place of other groups. Royal Stage Theater would fit right in and work well with any sports groups you bring in. Honestly, leading parties should look to Royal Stage Theater for guidance on how to turn a Mall space into the exciting destination for our community it has become. There's really no one else in Citrus Heights doing the things Royal Stage Theater is...it'd be a shame to lose it.” • City Clerk Van read the following written public comment submitted by Tammy Walker: “Royal Stage Performing Arts is a valuable organization to Citrus Heights and the surrounding areas. I have seen struggling teens and adults alike benefit by the arts, theater, dance and music. Keeping Royal Stage in its current location in the Sunrise Mall is an asset to our city's youth. No student is ever turned away due to lack of ability to pay for dance or theater. No where in this county has such a valuable offering.” • City Clerk Van read the following written public comment submitted by Margaret Chri: “I am writing my support for the Sunrise Sports Center with two reservations: 1. Impact on traffic - As a 25 year resident I can attest to Citrus Heights as a built-up community with plenty of traffic already. Please do due diligence in studies and consideration on this proposal. 2. Sunrise Mall is home to Royal Stage Theater which has been our sole attraction to the Mall in recent years. This theater company serves hundreds of individuals in Dance, Theater, Voice and creative expression at any given time and brings entertainment opportunities to the community. Royal Stage Theater is open doors to participants REGARDLESS of their ability to pay. They serve children and adults of all ages. They provide a learning outlet, good fellowship and positive enrichment to the Citrus Heights community that has been unmatched by other local performing arts companies. If this Sports Center in any way impacts the current space used for Royal Stage Theater Company I am adamantly opposed to the proposal. Losing the Theater space would be a huge loss for Citrus Heights patrons and participants alike.” • City Clerk Van read the following written public comment submitted by Jennifer Love Sprock: “Approve the Sunrise Sports Center, but only IF Royal Stage Performing Arts gets to keep their performance space.

The theater company just celebrated 15 years of providing arts services and performances to the community. Long established part of the community. The most thriving part of the current mall space.

Draws a large group of people to the place.”
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• City Clerk Van read the following written public comment submitted by Mia Calderon: “Royal Stage is a creative outlet, a place of encouragement, and a family for myself and many others. Its location at The Sunrise Mall has made it more accessible to many, including my family. We would never have had the opportunity to experience and participate in theatre if it weren't for the Royal Stage and the Sunrise Mall.

Royal Stage is a place that has never stopped building and growing. It has never stopped making a lasting impact on people, and never will. I am in favor of the sports center development at the Sunrise Mall, provided that Royal Stage is kept. Royal Stage would be an amazing addition to the sports center and deserves to stay, as it draws in the community and creates interest in the space. Both communities, including the sports center and Royal Stage, will help draw people to the Sunrise Mall area.” • City Clerk Van read the following written public comment submitted by Valerie Conner: “Support approving Sunrise Mall redevelopment, but would like Royal Stage Performing Arts to retain their space within the plan.”
• City Clerk Van read the following written public comment submitted by Sadie Calderon: “Concerning the proposal of a Sports Complex in place of what is now the Sunrise Mall, I am in full support. However, if this Sports Complex does not include Royal Stage Visual and Performing Arts Center, I would happily betray my original statement. Royal Stage is a lively and thriving community and the only theater group in the whole of Citrus Heights. It would be a shame to remove the wonder that is Royal Stage away from its current home where so many good moments in life are created and remembered forever.” • City Clerk Van read the following written public comment submitted by Jennifer Jacobs: “I absolutely am in favor of the mall to be redeveloped, but only if ROYAL STAGE can keep its theater there. The Royal Stage theater family literally saved my childs life and it would be a tremendous loss to the community for this space to close. As a non-profit, they can't just pick up and move to another location, as that would cause financial burden to their business. The literal hundreds of children and families that attend Royal Stage throughout each year deserve to protected by the city, not forced to lose their home away from home, a space and organization that is making such a huge difference in the lives of so many.” • City Clerk Van read the following written public comment submitted by Alan Parkin: “The proposed sports center sounds like a good opportunity, but I'm concerned over it's effect on current mall businesses. My family loves and attends Royal Stage frequently and would be devastated if new development kicked them out. Royal Stage does amazing work with disadvantaged youth and would be a complete loss to the community if they're forced to close.”
• City Clerk Van read the following written public comment submitted by Tiffany Corona: “Royal Stage Performing Arts has maintained a theater space in the Sunrise Mall since 2022. As a community member, I am excited about potential revitalization of the Sunrise Mall area. However, I implore the City Council to ensure that the Sunrise Tomorrow plan continues to have a space for local arts in general, and Royal Stage in particular. Not a large concert venue, but a community theater space where people can come together to create, learn, perform, and engage.

Since coming to the Sunrise Mall in 2022, Royal Stage has put on 21 productions featuring local community members, where everyone who auditions gets a role, regardless of ability to pay. Royal Stage creates not only a wonderful opportunity for introduction to, and furtherance of, the performing arts, it also provides a safe and accepting space for children, teens, and adults of all backgrounds and needs.

I have seen my own family and friends (and their families) enriched by and through Royal Stage.

This is an incredible organization that focuses on community support and engagement. Even with much of the mall empty, the seats at the Royal Stage productions are full.

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Royal Stage is a credit to this community. It is my hope that the Council agrees and ensures that Royal Stage continues to have a home in Citrus Heights by allowing it to maintain a theater space in the Sunrise Mall area. I have no doubt that Sunrise Tomorrow will be better as a result.” • City Clerk Van read the following written public comment submitted by Joely Gostage: “I support the sunrise mall sports center IF Royal Stage can keep their space. It is a theater community that accepts all families and offers a place for children to learn not just theater but empathy, compassion, confidence, and the importance of being independent but also being a team player. Royal stage is a very important member of our community.”
• City Clerk Van read the following written public comment submitted by Edyta Saltsman: “I'm for the sunrise mall development and building sports center but ONLY if Royal Stage Theatre is maintained and available for the community to enjoy/use. We need our youth to be able to spend their energy on positive and meaningful stuff, develop their artistic interests and passions. It is of utmost importance to me and my family to keep Royal Stahe intact in the process or renovations.” • City Clerk Van read the following written public comment submitted by Jamie Werstler: “I am in support of the redevelopment, IF Royal Stage is able to maintain it’s space. Royal Stage is important to my family because it’s a place where everyone is welcome and accepted. There are a lot of special friendships here and everyone has a lot of fun together.”
• City Clerk Van read the following written public comment submitted by Justine Coe: “I am in favor of the redevelopment of the Sunrise Mall, provided the Royal Stage theatre is able to maintain its space there.

Royal Stage has been a supportive and loving space for me and my family as I ventured back into theatre as a single mom struggling financially and emotionally. The community there is truly priceless, to where we have regular "returnees" and new people who quickly realize how special this organization is and come back for more shows. Royal Stage has become a special place for people to use their talents in various capacities and bring hope and encouragement to all who enter its doors. I'm looking forward to many more shows there in the years to come.”
• City Clerk Van read the following written public comment submitted by Kajal Bain: “I am in support of the renovations to the mall AS LONG AS Royal Stage Theater is allowed to maintain its space. The theater has provided a safe, open, and supportive environment for my daughter and I to express ourselves in performing arts. It has helped the both of us push through some hard times. Please allow Royal Stage to keep its space.”
• City Clerk Van read the following written public comment submitted by Tana Colburn: “I support the Sunrise. Mall redevelopment plan as long as Royal Stage remains in its location. Theatre, especially theatre that works with children in a positive way, is extremely important to the community.” • City Clerk Van read the following written public comment submitted by Becky Glatz: “I am in favor of the complex as long as royal stage performing arts theatre is allowed to maintain their space. Community theatre would be a great addition to this project and this company means the world to my family. My kids have gained confidence and friendships and skills they've brought with them in everyday life.” • City Clerk Van read the following written public comment submitted by Renae Schieckoff: “As a parent of children involved with Royal Stage Performing Arts, I would like to voice my concern regarding how this development will affect Royal Stage's current occupancy in the Sunrise Mall. This organization provides low and no cost performing arts experiences for families in need which is a considerable asset to Citrus Heights and the surrounding communities. My family is fortunate to be able to pay for our children's tuition to participate and we could participate in different theater programs, but we choose to be involved with Royal Stage because this organization makes a positive impact in our community and provides our family ITEM 8 Agenda Packet Page 16
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with an enriching and diverse experience. As a nonprofit organization, the cost of relocating the theater would present what I believe would be a considerable financial burden for Royal Stage. If the Sunrise Sports Center project is approved, an allowance for Royal Stage to remain in it's location would be the best scenario for this important organization to thrive and continue to provide community theater opportunities for our youth.”
• City Clerk Van read the following written public comment submitted by Mckenna Gonzalez: “I am in support of the redevelopment, only IF Royal Stage is able to maintain in their space. Royal stage is a positive influence in the community because it provides a safe and encouraging environment where students can grow both artistically and personally. It allows dancers to use their talents to express their faith and creativity while learning important life skills like discipline, teamwork, confidence, and perseverance. Beyond dance training, it helps build strong relationships and a sense of belonging among students and families, creating a supportive community. It also often participate in outreach and service opportunities, teaching students to use their gifts to encourage and serve others. By combining faith, the arts, and community involvement, this studio helps shape young people into confident, compassionate individuals who positively impact those around them.”
• City Clerk Van read the following written public comment submitted by Jessica Dardarian: “I’m a part of Royal Stage Christian Performing Arts and have been rehearsing at the space where the theatre is currently held. Royal Stage means a lot to me, because they strive to work on the best show they can possibly bring to life and using the words and teaching to Christ in our community.” • City Clerk Van read the following written public comment submitted by Frank Gonzalez, Jr.: “I am for whatever as long Royal stage can stay! Royal Stage Studio provides a valuable space for young people in the community to grow through the arts in a safe and encouraging environment. The studio gives students the opportunity to develop creativity, discipline, confidence, and teamwork while learning the art of dance. Programs like Royal Stage Studio help bring families together, build meaningful friendships, and create a strong sense of belonging among students and parents. By offering a positive place for youth to express themselves and stay active, the studio contributes to the overall well-being of the community and helps shape confident, compassionate young people who can make a positive impact on those around them”
• City Clerk Van read the following written public comment submitted by Rebecca Rivera: “I love this idea for the mall.I think the Royal Stage fits in perfectly with the plan as a multi functional sports and entertainment space. I love watching the, pretty impressive for a small community theater, performances at Royal Stage. The only down side has been having to enter the rundown mall.” • City Clerk Van read the following written public comment submitted by Ivy Calderon: “I am in support of the Sunrise Sports Center redevelopment IF the Royal Stage Theater is unaffected by it's remodeling.” • City Clerk Van read the following written public comment submitted by Temperance Harkins: “I support the redevelopment project in the area of the current Sunrise Mall as long as Royal Stage Theater is able to keep their current space. I am a city of Sacramento resident who attends productions at Royal Stage Theater. I enjoy watching youth and adults doing community theater. I feel that community theater and the arts are essential to modern cities like Citrus Heights. When I support community theater, I also support other nearby businesses by shopping at the local stores and eating at nearby restaurants. Without these local and unique arts to draw me and others like me in, other businesses suffer and the city of Citrus Heights as a whole suffers by the lack of local arts. I strongly support keeping Royal Stage Theater at their current location.”
• City Clerk Van read the following written public comment submitted by Kiersten Medina: “I am in support of the redevelopment of the sunrise mall only if Royal stage can remain. They are an integral part of the ITEM 8 Agenda Packet Page 17
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sunrise area offering a safe place for kids to do theater and dance and offer options for low income families”
• City Clerk Van read the following written public comment submitted by Nicole Prahm: “As a local resident who grew up with the Sunrise Mall I am so glad that there is a plan to redevelop and utilize this space in a way that will benefit the community. I would however like to make it known that the arts are just as important as sports, therefore I hope you will ensure that Royal Stage retains a space in the development going forward. The work they do brings so much joy and life to the community that it would be heartbreaking to see them displaced.”
• City Clerk Van read the following written public comment submitted by Ron McGehee: “I am in favor of the Sports Complex in the redevwlopment of Sunrise Mall as long as Royal Stage Theatre is allowed to have a place to keep the community theatre going. My kids and I have all been part of productions. The great lessoons they teach to all about respect, honor and professionalism is incredible. The inclusive nature where everyone can come together to team up and put on great productions positively grows all involved. I really love the way rhat even if there are kids that couldn't afford to be apart of Royal Stage they never say no, and always find a way for the funds to be 5here to take care of the kids training.” • City Clerk Van read the following written public comment submitted by Stacy Brush: “I am full support of the proposed plan for the Sunrise Mall, I just would like to know that Royal Stage will still have a place in the new plan. The people, and the plays have brought so many of us together. Even my video gaming kids love watching and participating in the plays, creating backgrounds, etc. There are so many great opportunities for people to come together and have a great time putting on a great show. We need more of what Royal stage offers, and I pray we continue to enjoy them for as long as possible.” • City Clerk Van read the following written public comment submitted by Tosha Rankin: “I am in support of this center, if and only if there is a designated space for Royal Stage Performing Arts. My children have been involved in their theater program for several years now, and losing this space would be devastating.

My youngest son will tell anyone he knows that this theater is his safe place, and he is not the only one.

This is a place that provides a safe environment for many community youth and is a benefit to our area!” • City Clerk Van read the following written public comment submitted by Dolly Palliative: “I am in support of the redevelopment, IF Royal Stage is able to maintain its space. It is most important because Royal Stage gives kids and adults access to be artistic in many ways and provides a safe place. It keeps kids out of the streets and motivates everyone to work in group and harmony.” • City Clerk Van read the following written public comment submitted by Cindy De Beer: “I think a new sports complex at the Sunrise Mall is a great idea, but it's important to me that Royal Stage Performing Arts is able to remain as well. That theater is so important to many kids and families in our community and it will be an asset to the new development. Kids can participate in sports at the sports complex or dance and theater at Royal Stage.”
• City Clerk Van read the following written public comment submitted by Jullian Buell: “I am in support of the Renovation if Royal Stage Theater maintains it's space.” • City Clerk Van read the following written public comment submitted by Anna Figueroa: “I am writing in support of the proposed redevelopment and the vision of expanding opportunities for youth sports in our community. Projects that bring families together and provide positive outlets for kids are incredibly valuable.

At the same time, I respectfully ask that Royal Stage Theater be able to maintain its space as plans move forward.

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Several years ago, my son Gabe stood before this same council as an eight-year-old to speak in support of the $25,000 grant that helped open Royal Stage Theater. You approved that grant, and since then the theater has become a second home to him and to many other kids in Citrus Heights. It is where he has grown in confidence, creativity, and community.

Youth sports are incredibly important, but so are the arts. Both play a vital role in helping children grow into confident, well-rounded young people. Royal Stage Theater has been doing that work for years, providing a safe and inspiring place for kids to learn, perform, and belong.

I support redevelopment that strengthens Citrus Heights, and I hope that vision includes ensuring that Royal Stage Theater can continue serving the youth of our community.” • City Clerk Van read the following written public comment submitted by Heather Fry: “I am writing regarding the future of the Sunrise Mall, to make a plea for Royal Stage. The nonprofit performing arts theater located inside of the Sunrise Mall. I have lived in Sacramento for over two decades. I worked in the Sunrise Mall for three years at DeVon’s Jewelers, a business, like so many others, that is no longer there. My family and I shopped and browsed the Sunrise Mall once a week for a decade. We were THRILLED when Royal Stage took up residence at the Sunrise Mall, giving us a reason to return, and an affordable opportunity to expose our children to the arts. We have seen countless plays, musicals, and showcases at the Royal Stage Theater since it has been accessible to us in the Sunrise Mall. Royal Stage also makes participation in performance art accessible to many disadvantaged kids and adults. The City of Citrus Heights and the community are greatly entrenched with culture and the arts through Royal Stage. Whatever may come of the Sunrise Mall’s future, it would be a travesty to see Royal Stage go in that location. Keeping Royal Stage in the future plans for the Sunrise Mall on serves to benefit other businesses in the location, and the City and community as a whole. There are so many opportunities for sports/athletics, and games; and so very few opportunities for families to experience and support the arts.

Please keep Royal Stage in The Sunrise Mall location and future plans.” • City Clerk Van read the following written public comment submitted by Jennalee Hazlip: “Royal Stage was my first judgment, free family”
• City Clerk Van read the following written public comment submitted by Dale Oberg: “I’m in support of Sports Center at the Sunrise Mall location only IF Royal Stage is allowed to keep their space. Everyone in the community needs access to the arts, especially dance and theatre.” • City Clerk Van read the following written public comment submitted by Callie Kay: “I support the change of sunrise mall, but ONLY if royal stage gets to keep our theater space. This company has given many performers, young and old to follow their dreams and perform on a stage. It has a family atmosphere and so important to the community. Royal stage is full of community outreach and provides scholarships to underprivileged families. Royal Stage theater in Sunrise mall is a home to so many people and many will be devastated if it is taken away.”
• City Clerk Van read the following written public comment submitted by Abigail Martin: “I am definitely in favor of the new Sunrise Sorts Center; however, only if Royal Stage Performing Arts is allowed to keep their theater space. We have nowhere else to perform!!” ACTION: On a motion by Vice Mayor Middleton, seconded by Council Member Nelson, the City Council adopted Resolution No. 2026-015, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Enter Into an Economic Development and Participation Agreement (EDPA) with The Mettle Shop to Support the Redevelopment of a Catalyst Project for a ITEM 8 Agenda Packet Page 19
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Portion of the Sunrise Tomorrow Site and Finding the Agreement is Exempt from CEQA per CEQA Guidelines 15004 (b)(4).

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None
The City Council took a brief recess at 8:50 p.m. and reconvened at 9:03 p.m.

10. SUBJECT: Fiscal Year 2025-26 Mid-Year Budget Adjustment and Financial Forecast Update STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Adopt Resolution No. 2026-016, A Resolution of the City Council of the City of Citrus Heights, California, Approving Amendments to the Fiscal Year 2025-26 Budget Director Talwar and Manager Jenkins provided a presentation reviewing the General Fund mid-year status report and 10-year forecast update. The recommended adjustments in revenues and expenditures were outlined.

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Council Member Nelson, the City Council adopted Resolution No. 2026-016, A Resolution of the City Council of the City of Citrus Heights, California, Approving Amendments to the Fiscal Year 2025-26 Budget.

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

CITY MANAGER ITEMS
City Manager Feeney reviewed the 2026 Save the Date mailer for City events and highlights. He recognized Women’s Build Day at the Habitat for Humanity project. He announced that the Strategic Planning Session will take place on March 18, which replaces the March 25 Regular City Council meeting. Assemblymember Josh Hoover is having a community meeting at City Hall on March 19. He discussed upcoming infrastructure projects, including the 2025/26 Resurfacing and Madison Avenue Repaving. He recognized and thanked City Clerk Van for her facilitation of agenda Item 9.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

11. SUBJECT: Discussion and Direction on the Renaming of Sayonara Drive STAFF REPORT: C. Kempenaar / R. Cave / A. Bermudez
Senior Planner Bermudez provided a presentation outlining the proposed process and timeline for renaming, including owner and tenant notification, community outreach, name nominations, and presenting names to Council for final selection. Staff hopes to complete the process before the first Sayonara Habitat for Humanity residents receive their keys in June.

City Council questions and comments followed.

By consensus the City Council directed staff to move forward with community surveys and return with the results and feedback.

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Council Member Karpinski-Costa requested an agenda item to discuss a Citrus Hights Arts mural at City Hall for America’s 250th birthday, seconded by Vice Mayor Middleton.

Council Member Karpinski-Costa requested an agenda item on subsidizing or providing scholarships for Neighborhood Area attendance at this year’s Neighborhoods USA (NUSA) virtual conference, seconded by Mayor Lopez-Taff.

ADJOURNMENT
Mayor Lopez-Taff adjourned the regular meeting at 9:31 p.m.

Respectfully submitted,
__________________________
Amy Van, City Clerk
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: May 27, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Alexander A. Turcotte, Chief of Police
Kris Frey, Police Commander
Ken Lewis, Police Lieutenant
Joseph Aguilar, Police Lieutenant
SUBJECT: AB 481- Annual Renewal of Military Equipment Policy for the Police Department and Review of Annual Report
Recommendation
Staff recommends that the City Council adopt Resolution No. 2026-____ A Resolution of the City Council of the City of Citrus Heights, California, Renewing its Military Equipment Policy.

Fiscal Impact
There is no impact to the City’s General Fund by adopting this resolution.

Background and Analysis
Assembly Bill 481 (AB 481) requires law enforcement agencies (LEAs) to obtain explicit approval from their governing bodies before funding, acquiring, or utilizing military equipment.

On May 12, 2022, the Citrus Heights City Council took a significant step by adopting the Citrus Heights Police Department (CHPD) Military Equipment Use Policy through Ordinance 2022- 005, establishing a framework for responsible oversight of such equipment.

In alignment with the mandates of AB 481, the CHPD is obligated to submit an annual military equipment report (the Annual Report) to the City Council within a year of the policy's approval and continue to do so each subsequent year as long as the military equipment remains operational. This report is designed to fulfill legal requirements and promote transparency by being made publicly accessible. Additionally, the CHPD will host a community engagement session wherein residents can actively engage with police personnel, ask pertinent questions about the Annual Report, and discuss broader issues related to funding and the deployment of ITEM 9 Agenda Packet Page 22
Subject: AB 481 Military Equipment Policy and Annual Report Renewal Date: May 27, 2026

Page 2 of 3 ends

military equipment. Each year, the City Council is also responsible for reviewing the Military Equipment Use Policy, ensuring adherence to the standards delineated in Ordinance 2022-005.

CHPD submitted the most recent Annual Report to the City Council and the public on May 6, 2026. Department staff also attended a dedicated community engagement session on May 20, 2026, to facilitate community interaction.

Assembly Bill (AB) 481 broadly defines "military equipment" as including various items, some of which may not have direct military origins. This equipment encompasses but is not limited to crewless aerial and ground vehicles, armored vehicles, command-and-control vehicles, pepper ball launchers, less lethal shotguns, 40mm projectile launchers, and flashbang devices. The categorization intends to clarify what constitutes military equipment so that appropriate legislative safeguards can be applied.

The Citrus Heights Police Department (CHPD) commits itself to utilizing innovative and advanced tools and equipment to enhance public safety within the community. Many items classified as "military equipment" are critical for operational effectiveness and are employed by various law enforcement agencies nationwide, that are specifically designed to manage situations that pose a risk to officers or the public while minimizing the potential for escalation into lethal encounters. The strategic use of such tools allows officers to approach critical incidents with greater preparedness, ultimately working to safeguard the community and its residents.

CHPD's Annual Report, which is available for review (see Attachment 1), comprises several key elements:

1. A comprehensive summary of the military equipment's use, detailing the operational context and intended purposes.

2. An overview of community complaints or concerns about the military equipment.

3. Findings from internal audits that examine adherence to the military equipment use policy, including any violations and the corresponding corrective actions taken by the department.

4. A detailed financial breakdown of the total annual costs associated with each type of military equipment, encompassing acquisition, personnel, training, transportation, maintenance, storage, equipment upgrades, ongoing fees, and identifying funding sources for the upcoming calendar year.

5. Quantitative data on the current inventory of military equipment, specifying the amounts of each type.

6. Forward-looking information on any planned acquisitions for additional military equipment in the upcoming year, including targeted quantities and the rationale for such requests.

Throughout the past year, the police department has effectively administered its military equipment by AB 481, following guidelines established in Government Code section 7072(a) and abiding by the Citrus Heights Police Lexipol Policy 708.

ITEM 9 Agenda Packet Page 23
Subject: AB 481 Military Equipment Policy and Annual Report Renewal Date: May 27, 2026

Page 3 of 3 ends

Attachments

1. Citrus Heights Police AB 481 Annual Report

2. Resolution No. 2026 Renewing Military Equipment Policy

3. Citrus Heights Police Lexipol Policy #708
ITEM 9 Agenda Packet Page 24
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 1
AB 481 Annual Report
Background: Assembly Bill 481 (AB 481) requires law enforcement agencies to obtain approval from their governing bodies before implementing a policy governing the use of military equipment.

This approval is required before purchasing, fundraising for, or acquiring any military equipment.

The initial policy must be adopted by ordinance and renewed annually by Council vote. AB 481 broadly defines “military equipment,” covering a wide range of items, including items deployed or acquired by law enforcement agencies.

AB 481 requires law enforcement agencies to provide an Annual Report to their governing body and the public. Agencies must also host a community engagement session to allow public participation and feedback.

On May 12, 2022, the Citrus Heights City Council adopted Ordinance 2022-005, establishing a Military Equipment Use Policy for items classified as “military equipment” under AB 481. Since then, the Citrus Heights Police Department (CHPD) has managed its military equipment in full compliance with this policy. This Annual Report fulfills the requirements of Government Code section § 7072(a).

To support transparency and community involvement, CHPD will host a community engagement session at the police department on Wednesday, May 20, 2026, from 5:00 PM to 7:00 PM.

The following summarizes the CHPD’s Annual Report:
i. Unmanned Aircraft System (UAS): an unmanned aircraft along with associated equipment necessary to control it remotely.
a.) Description, quantity, purchase cost, capabilities, and any plans to purchase more:
i.) Autel EVO II
Estimated cost: $1,200 each
Quantity limit: 3 (not to exceed)
Capable of recording video and audio and providing live video streaming to operators. The department currently owns 3 units and does not plan to acquire more.
ii.) DJI Avata 2
Estimated cost: $1,200 each
Quantity limit: Not specified
Capable of recording and audio live streaming. The department currently owns 2 units and has no plans to purchase additional units.
iii.) Matrice 4T Estimated cost: $7,800 each
Quantity limit: Not specified
Capable of recording and audio live streaming. The department currently owns 2 units and has no plans to purchase additional units.
b.) Purpose
To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:

ITEM 9 Agenda Packet Page 25
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 2
i.) Major collision investigations.
ii.) Searching for missing people.
iii.) Natural disaster management.
iv.) Crime scene photography.
v.) SWAT, tactical or other public safety and life preservation missions; and vi.) Responding to specific requests from local, state, or federal fire authorities for fire response and/or prevention.
c.) How the military equipment was used / complaints received:

The department's UAS equipment was utilized for fatal traffic collision photography, crime scene photography, and visual assistance during SWAT and patrol tactical operations to assist with officer safety and the location of potentially dangerous subjects.

The department did not receive any complaints or concerns related to the use of the UAS in 2025.
d.) Authorized Use
Only assigned operators who have completed the required training shall be permitted to operate the UAS during approved missions.
e.) Expected Life Span
All UAS equipment, approximately 3-5 years.
f.) Fiscal Impact
Annual maintenance and battery replacement costs are estimated at approximately $2,000. No annual acquisition, personnel, training, transportation, or storage costs. g.) Training
All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation.
h.) Legal and Procedural Rules
It is the policy of the CHPD to utilize UAS only for official law enforcement purposes and in a manner that respects the privacy of our community, pursuant to State and Federal law, including all FAA requirements and regulations. i.) Concerns and Complaints Received
None
j.) Future Acquisition Plans and Source of Funding
None
k.) Internal Audit Results and Response
No violations
ii. Armored Vehicles: Commercially produced wheeled armored personnel vehicles utilized for law enforcement purposes.

ITEM 9 Agenda Packet Page 26
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 3
a.) Description, quantity, purchase cost, capabilities, and any plans to purchase more:
2008 Navistar Defense MaxPro MRAP
Initial cost: $0 (estimated replacement cost: $800,000) Quantity limit: 2 (not to exceed)
This armored vehicle seats multiple personnel, provides ballistic protection, and can be used for the rescue of downed officers or citizens. The department currently owns one unit.
b.) Purpose
To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents.

It can stop various projectiles, which provide greater safety to citizens and officers beyond the protection level of shield and personal body armor. The vehicle also serves as an emergency extraction vehicle to transport injured officers, and/or community members that may be involved in a critical incident.
c.) How the military equipment was used / complaints received:

The department’s Navistar MRAP was used for community engagement events, department training exercises, and SWAT tactical operations to provide ballistic protection and assist with officer safety.

The department did not receive any complaints or concerns related to the use of the Navistar MRAP in 2025.
d.) Authorized Use
The use of armored vehicles shall only be authorized by a watch commander or SWAT commander based on the specific circumstances of a given critical incident. Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with Department policy and training.
e.) Lifespan
Approximately 15 years.
f.) Fiscal Impact
Annual maintenance cost of approximately $5,000. No annual acquisition, personnel, training, transportation, or storage costs.
g.) Training
All drivers/operators shall be required to obtain a valid California Class B license. h.) Legal and Procedural Rules
It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes and pursuant to State and Federal law. i.) Concerns and Complaints Received
None
j.) Future Acquisition Plans and Source of Funding
The police department anticipates purchasing a Lenco BearCat armored response vehicle fully funded by the Citizens’ Option for Public Safety (COPS) funding.

ITEM 9 Agenda Packet Page 27
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 4
k.) Internal Audit Results and Response
No violations
iii. Command Post (CP): A mobile office that provides shelter and access to Department computer systems and other equipment.
a.) Description, quantity, purchase cost, capabilities, and any plans to purchase more:
2008 GMC C5500
Estimated cost: $300,000
Quantity limit: 1 (not to exceed)
This vehicle is used for meetings and storing large amounts of equipment for SWAT/CNT operations, critical incidents, natural disasters, and community events. The department currently owns one unit and has no plans to purchase additional vehicles. b.) Purpose
For use in situations that require a mobile, spacious, and weather-protected facility. c.) How the military equipment was used / complaints received:

The department’s command post has been utilized for critical incidents, community engagement events, and departmental training.

The department did not receive any complaints or concerns related to the use of the command post in 2025.
d.) Authorized Use
Only those trained in the deployment and operations in a manner consistent with Department policy and training are authorized to operate the CP. e.) Lifespan
The CP lifespan on the chassis and vehicle structure is approximately 20 years.

Upgrades to maintain IT systems are needed approximately every 5 years. f.) Fiscal Impact
The annual maintenance cost is approximately $2,000. No annual maintenance, acquisition, personnel, training, transportation or storage costs. g.) Training
The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the operator has shown competence in vehicle handling, the driver/operator will drive the vehicle within the city with an experienced driver. h.) Legal and Procedural Rules
It is the policy of the Department to use the CP only for official law enforcement purposes and in accordance with California State law regarding the operation of motor vehicles.
i.) Concerns and Complaints Received
None
j.) Future Acquisition Plans and Source of Funding
None
ITEM 9 Agenda Packet Page 28
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 5
k.) Internal Audit Results and Response
No violations
iv. 40 MM Launchers and Rounds: 40MM Launchers are utilized by department personnel as a less lethal tool to launch impact and chemical rounds.
a.) Description, quantity, purchase cost, capabilities, and any plans to purchase more:
i.) Defense Technology 40mm Single Shot Launcher
Estimated cost: $1,000 each
Quantity limit: 8 (not to exceed)
A tactical single-shot launcher capable of firing various less-lethal ammunition.

The department currently owns 5 units, with a maximum limit of 8 and no plans to purchase more.
ii.) Defense Technology Ferret 40mm CS Liquid
Estimated cost: $35–$45 each
Quantity limit: 200 (not to exceed)
A less-lethal 40mm round designed to deliver a small liquid chemical payload inside a structure or vehicle. Primarily used to dislodge barricaded subjects and cause temporary discomfort to gain compliance. The department currently owns 76 rounds, with a maximum limit of 200 and no plans to purchase more. iii.) Defense Technology Rubber Foam 40mm Projectile
Estimated cost: $30–$40 each
Quantity limit: 50 (not to exceed)
A less-lethal, lightweight plastic projectile that provides accurate and effective compliance when fired at approved distances. The department currently owns 12 rounds, with a maximum limit of 50 and no plans to purchase more. iv.) 40mm DefTec 2292 CS Powder Barricade Penetrator
Estimated cost: $40–$60 each
Primarily used to dislodge barricaded subjects by delivering a chemical agent payload inside a structure or vehicle. The department currently owns 20 rounds, with no plans to purchase more.
v.) 40mm DefTec 2290 OC Barricade Penetrator
Estimated cost: $45–$65 each
This round contains OC powder and is primarily used to dislodge barricaded subjects by delivering the agent inside a structure or vehicle. The department currently owns 20 rounds, with no plans to purchase more. b.) Purpose:

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
c.) How the military equipment was used / complaints received:
40 MM launchers and rounds were only used for training purposes.

The department did not receive any complaints or concerns related to the use of the 40 MM launchers and rounds in 2025.

ITEM 9 Agenda Packet Page 29
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 6
d.) Authorized Use:

Only those POST-certified to deploy chemical munitions are authorized to use the 40MM launchers. Situations for use of the less lethal weapon systems may include, but are not limited to:
i.) Self-destructive; dangerous and/or combative individuals. ii.) Riot/crowd control and civil unrest incidents.
iii.) Circumstances where a tactical advantage can be obtained. iv.) Potentially vicious animals; and
v.) Training exercises or approved demonstrations.
e.) Training
Sworn members utilizing 40MM less lethal chemical agents or impact rounds are trained by POST-certified less lethal and chemical agent instructors. f.) Lifespan
Approximately 5 years.
g.) Fiscal Impact
Annual maintenance is approximately $50 for each launcher. No annual acquisition, personnel, training, transportation, or storage costs.
h.) Legal and Procedural Rules
It is the policy of the CHPD to utilize the 40MM only for official law enforcement purposes and pursuant to State and Federal law, including those regarding the use of force.
i.) Concerns and Complaints Received
None
j.) Future Acquisition Plans and Source of Funding
The police department anticipates acquiring additional 40mm single shot launchers; however, the total number needed and the funding source has yet to be identified. k.) Internal Audit Results and Response
No violations
v. Less Lethal Shotgun: A less lethal shotgun is used to deploy the less lethal 12-gauge Super Shock beanbag round.
a.) Description, quantity, capabilities, and any plans to purchase more:
i.) Remington 870 Less-Lethal Shotgun
Estimated cost: $946 each
Quantity limit: 12 (not to exceed)
Used to deploy less-lethal beanbag rounds, allowing officers to maintain distance from suspects and reduce the immediacy of threats—supporting deescalation principles. The department currently owns 3 units, with a maximum limit of 12 and no plans to purchase more.

ITEM 9 Agenda Packet Page 30
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 7
ii.) 12-Gauge Super-Shock Beanbag Round
Estimated cost: $5 to $8 each
Quantity limit: 200 (not to exceed)
Ballistic fiber-filled beanbag rounds provide accurate and effective performance when fired from approved distances. The department currently owns 52 rounds, with a maximum limit of 200 and no plans to purchase more. iii.) DefTec Ferret 12-Gauge Powder Barricade Round CS
Estimated cost: $10 to $15 each
Quantity limit: 200 (not to exceed)
Intended for crowd control situations. The department currently owns 20 rounds, with a maximum limit of 200 and no plans to purchase more. b.) Purpose:

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
c.) How the military equipment was used / complaints received:

Less lethal shotguns were used for training purposes and apprehension of suspects during high-risk situations.

The department did not receive any complaints or concerns related to the use of less lethal shotguns in 2025.
d.) Authorized Use:

Less lethal shotguns shall be used only by officers trained in their deployment and in a manner consistent with Department policy and training. Situations for use of the less lethal weapon systems may include, but are not limited to, the following:
i.) Self-destructive, dangerous and/or combative individuals. ii.) Riot/crowd control and civil unrest incidents.
iii.) Circumstances where a tactical advantage can be obtained. iv.) Potentially vicious animals; and
v.) Training exercises or approved demonstrations.
e.) Lifespan
Remington 870 Less approximately 25 years.

Super-shock Beanbag Round, approximately 5 years.
f.) Fiscal Impact
Annual maintenance is approximately $50 for each shotgun. No annual acquisition, personnel, training, transportation, or storage costs.
g.) Training
All officers are trained in the 12-gauge less lethal shotgun as a less lethal option by inservice training.

ITEM 9 Agenda Packet Page 31
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 8
h.) Legal and Procedural Rules
It is the policy of the CHPD to utilize the less lethal shotgun only for official law enforcement purposes and pursuant to State and Federal law, including those regarding the use of force.
i.) Concerns and Complaints Received
None
j.) Future Acquisition Plans
None. If, in the future, any more would be acquired, it is expected that this would be paid for by the general fund or asset forfeiture funds. k.) Internal Audit Results and Response
No violations
vi. Distraction Devices: Distraction devices are ideal for distracting dangerous suspects during assaults, hostage rescues, room entry, or other high-risk arrest situations. a.) Description, quantity, capabilities, and any plans to purchase more:
i.) Combined Tactical Solutions Baffled White Smoke Flash Bangs Estimated cost: $40 to $60 each
Quantity limit: 200 (not to exceed)
These non-fragmenting devices produce a loud noise and an intense bright light, making them effective for tactical operations. The department currently owns 46 units and does not plan to purchase additional units at this time. b.) Purpose
Designed to create atmospheric over-pressure and emit a bright white light, these devices can cause short-term (6–8 seconds) physiological and psychological sensory deprivation, providing officers with a tactical advantage. c.) How the military equipment was used / complaints received:

Distraction devices were used for training purposes, high-risk warrant services and high-risk situations, enhancing officer safety.

The department did not receive any complaints or concerns related to the use of distraction devices in 2025.
d.) Authorized Use:

Diversionary devices shall only be used in the following ways:
i.) Officers who have been trained in proper use.
ii.) In hostage and barricaded subject situations.
iii.) In high-risk warrant services where there may be a risk to officer safety. iv.) During other high-risk situations where their use would enhance officer safety and during training exercises.
e.) Lifespan
5 years
ITEM 9 Agenda Packet Page 32
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 9
f.) Fiscal Impact
No annual maintenance, acquisition, personnel, training, transportation, or storage costs.
g.) Training
Prior to use, officers must attend divisionary device training that is conducted by POSTcertified instructors. h.) Legal and Procedural Rules
It is the policy of the CHPD to utilize diversion devices only for official law enforcement purposes and pursuant to State and Federal law regarding the use of force. i.) Concerns and Complaints Received
None
j.) Future Acquisition Plans and Source of Funding
None. If, in the future, any more were acquired, it is expected that this would be paid for by the general fund or asset forfeiture funds.
k.) Internal Audit Results and Response
No violations
vii. Precision Long Rifles: Guns that are fired from shoulder level, having a long spirally grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance. a.) Description, quantity, capabilities, and any plans to purchase more:
i.) Winchester M14 7.62mm
Estimated cost: $2,500 each
Quantity limit: 4 (not to exceed)
This rifle provides lethal options at extended distances. The department currently owns 2 units, with a maximum limit of 4, and has no current plans to purchase additional rifles.
ii.) TRW M14 7.62mm
Estimated cost: $2,500 each
Quantity limit: 2 (not to exceed)
This rifle provides lethal options at extended distances. The department currently owns 1 unit, with a maximum limit of 2, and no current plans to purchase additional rifles.
iii.) H&R Arms M14 7.62mm
Estimated cost: $2,500 each
Quantity limit: 5 (not to exceed)
This rifle provides lethal options at extended distances. The department currently owns 3 units, with a maximum limit of 4, and no current plans to purchase more.
iv.) Remington 700 7.62mm
Estimated cost: $2,500 each
Quantity limit: 7 (not to exceed)
ITEM 9 Agenda Packet Page 33
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 10
This rifle provides lethal options at extended distances. The department currently owns 4 units, with a maximum limit of 7, and no current plans to purchase more.
b.) Purpose:

To be used to address a threat with more precision and/or greater distances than a handgun, if present and feasible.
c.) How the military equipment was used / complaints received:

Rifles were only used for training purposes.

The department did not receive any complaints or concerns related to the use of rifles in 2025.
d.) Authorized Use
Only officers are approved and trained per department policy. e.) Lifespan
Approximately 15 years.
f.) Fiscal Impact
Annual maintenance is approximately $50 for each rifle. No annual acquisition, personnel, training, transportation, or storage costs.
g.) Training
Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle.

Additionally, all members who operate any rifle are required to pass a range qualification.
h.) Legal and Procedural Rules
It is the policy of the CHPD to utilize rifles only for official law enforcement purposes and pursuant to State and Federal law regarding the use of force. i.) Concerns and Complaints Received
None
j.) Future Acquisition Plans and Source of Funding
The police department anticipates purchasing four Seekins HIT Pro .308 precision long rifles in the coming year; however, a funding source has not yet been identified. k.) Internal Audit Results and Response
No violations
viii. Chemical Agent and Smoke Canisters: Canisters that contain chemical agents that are released when deployed.
a.) Description, quantity, capabilities, and any plans to purchase more:
i.) Defense Technology Launchable Flameless CS
Estimated cost: $40 to $55 each
Quantity limit: 100 (not to exceed)
ITEM 9 Agenda Packet Page 34
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 11
Used for crowd control and tactical deployments. The department currently owns 13 units and plans to purchase more, not to exceed the 100-unit cap. ii.) Defense Technology Tri-Chamber CS
Estimated cost: $35 to $50 each
Quantity limit: 100 (not to exceed)
Used for crowd control and tactical deployments. The department owns 28 units, with a 100-unit cap, and does not plan further acquisitions. iii.) DefTec 1032 Flameless Tri-Chamber CS
Estimated cost: $40 to $55 each
Designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. The department currently owns 8 units, with no current plans to purchase more.
iv.) DefTec 3012 12-Gauge Liquid CS
Estimated cost: $10 to $15 each
Designed to deliver chemical agents in barricade situations from a 12-gauge shotgun, providing stand-off distance for safety. The department currently owns 20 units, with no current plans to purchase more.
v.) D DefTec 1050 Aerosol OC/CS
Estimated cost: $15 to $25 each
Used in confined areas and close to the target area to minimize risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. The department currently owns 8 units, with no current plans to purchase more.
b.) Purpose:

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

Situations for use of the less lethal weapon systems may include, but are not limited to:
i.) Self-destructive, dangerous and/or combative individuals. ii.) Riot/crowd control and civil unrest incidents.
iii.) Circumstances where a tactical advantage can be obtained. iv.) Potentially vicious animal; and
v.) Training exercises or approved demonstrations.
c.) How the military equipment was used / complaints received:

Chemical agents and smoke canisters were only used for training purposes.

The department did not receive any complaints or concerns related to the use of Chemical agents and smoke canisters in 2025.

ITEM 9 Agenda Packet Page 35
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 12
d.) Authorized Use:

Only officers who have received POST certification in the use of chemical agents are authorized to deploy.
e.) Training
Sworn members utilizing chemical agent canisters are certified by POST less lethal and chemical agent instructors.
f.) Lifespan
Approximately 5 years from the manufacturing date.
g.) Fiscal Impact
No annual maintenance, acquisition, personnel, training, transportation or storage costs.
h.) Legal and Procedural Use
It is the policy of the CHPD to utilize chemical agents only for official law enforcement purposes and pursuant to State and Federal law, including those regarding the use of force.
i.) Concerns and Complaints Received
None
j.) Future Acquisition Plans and Source of Funding
None. If, in the future, any more would be acquired, it is expected that this would be paid for by the general fund or asset forfeiture funds. k.) Internal Audit Results and Response
No violations
ix. Explosive Breaching Tools: Tools that are used to conduct an explosive breach. a.) Description, quantity, capabilities, and any plans to purchase more:
i.) Remington 870 Express Breaching Shotgun
Estimated cost: $500 each
Quantity limit: 3 (not to exceed)
This shotgun allows trained personnel to safely use breaching rounds to defeat deadbolts, locks, and hinges. It features a standoff device for precise placement and vents gases to prevent overpressure. The department currently owns 1 unit, with a maximum limit of 3 and no plans to purchase more at this time.
ii.) Remington 870 Express Breaching Shotgun
Estimated cost: $500 each
Quantity limit: 3 (not to exceed)
This shotgun allows trained personnel to safely use breaching rounds to defeat deadbolts, locks, and hinges. It features a standoff device for precise placement and vents gases to prevent overpressure. The department currently owns 1 unit, with a maximum limit of 3 and no plans to purchase more at this time.

ITEM 9 Agenda Packet Page 36
Citrus Heights Police Department
AB 481 – 2025 Annual Report
2025 Annual Report - 13
b.) Purpose:

The purpose is to quickly and safely gain access to property or structure. c.) How the military equipment was used / complaints received:

Explosive breaching tools were only used for training purposes.

The department did not receive any complaints or concerns related to the use of explosive breaching tools in 2025.
d.) Authorized Use:

Explosive breaching may only occur after authorization of a SWAT Commanding Officer or during training exercises.

The department did not receive any complaints or concerns related to the use of explosive breaching tools during 2025.
e.) Lifespan
Breaching shotgun, approximately 25 years.
f.) Fiscal Impact
Annual Maintenance is approximately $100. No annual acquisition, personnel, training, transportation, or storage costs.
g.) Training
All officers who use explosive breaching tools shall attend 40 hours of explosive breaching instruction.
h.) Legal and Procedural Rules
It is the policy of the CHPD to utilize breaching tools only for official law enforcement purposes and pursuant to State and Federal law.
i.) Concerns and Complaints Received
None
j.) Future Acquisition Plans and Source of Funding
None. If additional units are acquired in the future, funding is expected to come from the general fund or asset forfeiture funds.
k.) Internal Audit Results and Response
No violations
ITEM 9 Agenda Packet Page 37
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, RENEWING THE POLICE DEPARTMENT’S MILITARY EQUIPMENT POLICY
WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481 (“AB 481”), adding Chapter 12.8, “Funding, Acquisition and Use of Military Equipment”, to Division 7 of Title 1 of the Government Code (sections 7070 – 7075), relating to the use of military equipment by California law enforcement agencies; and
WHEREAS, AB 481 seeks to provide transparency, oversight, and an opportunity for meaningful public input on decisions regarding whether and how military equipment is funded, acquired, or used; and
WHEREAS, AB 481 requires, inter alia, the Police Department submit to the City Council an annual military equipment report for each type of military equipment approved by the City Council; and
WHEREAS, the City Council shall review its Ordinance approving the funding, acquisition, or use of military equipment at least annually and vote on whether to renew the Ordinance at a regular meeting; and
WHEREAS, the City Council shall determine, based on the annual military equipment report submitted, whether each type of military equipment identified in that report has complied with the standards for approval set forth in its Ordinance; and
WHEREAS, the City Council has reviewed the annual military report submitted by the Police Department and determined the military equipment has complied with the standards for approval set forth in its Ordinance; and
WHEREAS, the City Council voted to renew Ordinance No. 2022-005 by resolution of the City Council set forth below.
• NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby resolve as follows: The above recitals are true and correct and are a substantial part of this resolution. • City of Citrus Heights Ordinance No. 2022-005 is hereby renewed. • The City Clerk shall certify to passage and adoption thereof.

ITEM 9 Agenda Packet Page 38

PASSED AND ADOPTED by the City Council of the City of Citrus Heights on the 27th day of May, 2026, by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:
________________________________
MariJane Lopez-Taff, Mayor
ATTEST:
________________________________
Amy Van, City Clerk
ITEM 9 Agenda Packet Page 39
Policy
708
Citrus Heights Police Department
Citrus Heights PD Policy Manual
Copyright Lexipol, LLC 2025/12/11, All Rights Reserved.

Published with permission by Citrus Heights Police
Department
Military Equipment - 1
Military Equipment
708.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
708.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• Area denial electroshock devices, microwave weapons, water cannons, long-range acoustic devices (LRADs), acoustic hailing devices, and sound cannons. • Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

ITEM 9 Agenda Packet Page 40
Citrus Heights Police Department
Citrus Heights PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2025/12/11, All Rights Reserved.

Published with permission by Citrus Heights Police
Department
Military Equipment - 2
708.2 POLICY
It is the policy of the Citrus Heights Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 708.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all equipment defined as military per the government code or requiring additional oversight by council direction at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of the Citrus Heights Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
708.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:

See attachment: Military Equipment Inventory - 2025.pdf 708.5 APPROVAL
The Chief of Police of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government ITEM 9 Agenda Packet Page 41
Citrus Heights Police Department
Citrus Heights PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2025/12/11, All Rights Reserved.

Published with permission by Citrus Heights Police
Department
Military Equipment - 3
Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 708.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment deployed or used by any member of this jurisdiction shall be approved for use and in accordance with this Department policy. Any military equipment that is deployed or used by other jurisdictions that are providing mutual aid to this jurisdiction shall comply with their respective military equipment use policies. Situations may arise where Citrus Heights Police Department may deploy or use military equipment owned by other law enforcement agencies, in these situations, Citrus Heights Police Department is authorized to deploy or use a different agency's military equipment as authorized in Section 706.4 of this policy. Citrus Heights Police Department is also authorized to deploy or use the following non-exhaustive list of military equipment owned by another agency: See attachment: Use of Military Equipment Owned by Other Agencies - 2022.pdf 708.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory.

ITEM 9 Agenda Packet Page 42
Citrus Heights Police Department
Citrus Heights PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2025/12/11, All Rights Reserved.

Published with permission by Citrus Heights Police
Department
Military Equipment - 4
708.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.
708.9 COMPLIANCE PROCEDURE
This procedure is to ensure compliance with the military equipment use policy.

All complaints, concerns, or questions submitted regarding this policy will be handled pursuant to the Department's normal complaint process and be handled in a timely manner.

ITEM 9 Agenda Packet Page 43
Citrus Heights PD Policy Manual
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Published with permission by Citrus Heights Police
Department
Attachments - 5
Attachments
ITEM 9 Agenda Packet Page 44
Attachment
Citrus Heights PD Policy Manual
Copyright Lexipol, LLC 2025/12/11, All Rights Reserved.

Published with permission by Citrus Heights Police
Department
Military Equipment Inventory - 2025.pdf - 6
Military Equipment Inventory - 2025.pdf
Military Equipment Inventory - 2025.pdf
ITEM 9 Agenda Packet Page 45
Military Equipment Inventory
Unmanned Aircraft System (UAS); an unmanned aircraft along with associated equipment necessary to control it remotely.

1. Description, quantity, purchase cost and capabilities a. DJI MAVIC MINIS, estimated cost of $500 each, quantity not to exceed four, ability to record video/audio and provide live video stream to operators. b. DJI MAVIC ENTERPRISE DUALS, estimated cost of $5,500, quantity not to exceed 4, ability to record video/audio and provide live video stream to operators. c. AUTO EVO II, estimated cost of $1,200, quantity not to exceed two, ability to record video/audio and provide live video stream to operators. d. DJI AVATA 2, estimated cost of $500 each, quantity not to exceed four, ability to record video/audio and provide live video stream to operators.

2. Purpose
a. To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:
i. Major collision investigations;
ii. Searching for missing persons;
iii. Natural disaster management;
iv. Crime scene photography;
v. SWAT, tactical or other public safety and life preservation missions; and vi. Responding to specific requests from local, state or federal fire authorities for fire response and/or prevention.

3. Authorized Use
a. Only assigned operators who have completed the required training shall be permitted to operate the UAS during approved missions.

4. Expected Life Span
a. All UAS equipment, approximately three to five years.

5. Fiscal Impact
a. Annual maintenance and battery replacement cost is approximately $10,000.

ITEM 9 Agenda Packet Page 46
Military Equipment Inventory
September 2025

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6. Training
a. All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation.

7. Legal and Procedural Rules
a. It is the policy of the CHPD to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law, including all FAA requirements and regulations.

Armored Vehicles: Commercially produced wheeled armored personnel vehicle utilized for law enforcement purposes.

1. Description, quantity, purchase cost and capabilities a. 2008 NAVISTAR DEFENSE MAXPRO MRAP, initial cost $0 (estimated replacement cost $800,000), quantity not to exceed two, armored vehicle which can seat numerous personnel, provides ballistic protection and allows for rescue of downed officer and/or citizens

2. Purpose
a. To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor.

3. Authorized Use
a. The use of armored vehicles shall only be authorized by a watch commander or SWAT commander, based on the specific circumstances of a given critical incident. Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with Department policy and training.

4. Expected Life Span
a. Approximately 15 years.

5. Fiscal Impact
a. Annual maintenance cost of approximately $5,000.

ITEM 9 Agenda Packet Page 47
Military Equipment Inventory
September 2025

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6. Training
a. All driver/operators shall be required to obtain a valid California Class B license.

7. Legal and Procedural Rules
a. It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

Command Post (CP): A mobile office that provides shelter and access to Department computer systems and other equipment.

1. Description, quantity, purchase cost and capabilities a. 2008 GMC C5500, estimated cost of $300,000, quantity not to exceed one, the CP can be used to conduct meetings and store large amounts of equipment for SWAT/CNT, critical incidents, natural disasters and community events.

2. Purpose
a. To be used on specific circumstances when a mobile, large and weather protected facility is needed.

3. Authorized Use
a. Only those trained in the deployment and operations in a manner consistent with Department policy and training are authorized to operate the CP.

4. Expected Life Span
a. The CP lifespan on chassis and vehicle structure is approximately 20 years.

Upgrades to maintain IT systems needed approximately every five years.

5. Fiscal Impact
a. Annual maintenance cost is approximately $2,000.

6. Training
a. The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the operator has shown competence in vehicle handling, the driver/operator will drive the vehicle within the city with an experienced driver.

7. Legal and Procedural Rules
a. It is the policy of the Department to use the CP only for official law enforcement ITEM 9 Agenda Packet Page 48
Military Equipment Inventory
September 2025

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purposes, and in accordance with California State law regarding the operation of motor vehicles.

Long Range Acoustic Device (LRAD): LRAD is a high intensity directional acoustical array for long range, crystal clear hailing, notification, and unmistakable warning tone. The LRAD is primarily used as a communication device.

1. Description, quantity, purchase cost and capabilities a. LT-PMS1B MAGNETIC AUDIO DEVICE, cost $0 (estimated replacement cost $20,000), quantity not to exceed two, acoustic devices used to broadcast warnings/messages and are mounted to vehicles.

2. Purpose
a. To be used for issuing dispersal orders during crowd and riot control situations or to address the public in the event of civil emergencies, natural disasters, missing persons, evacuations, and other police incidents.

3. Authorized Use
a. The LRAD shall only be used by those officers trained in its deployment and used in a manner consistent with Department policy and training.

4. Expected Life Span
a. Approximately 10 years.

5. Fiscal Impact
a. Annual Maintenance cost approximately $300.

6. Training
a. All operators are required to receive training prior to operating in the field.

7. Legal and Procedural Rules
a. It is the policy of the CHPD to utilize the LRAD only for official law enforcement purposes, and pursuant to State and Federal law.
40 MM Launchers and Rounds: 40MM Launchers are utilized by department personnel as a less lethal tool to launch impact and chemical rounds.

1. Description, quantity, purchase cost and capabilities a. DEFENSIVE TECHNOLOGY 40MM SINGLE SHOT LAUNCHER, estimated cost of ITEM 9 Agenda Packet Page 49
Military Equipment Inventory
September 2025

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$1,000 each, quantity not to exceed eight, tactical single shot launcher that will fire various less lethal ammunition.
b. DEFENSE TECHNOLOGY FERRETT 40MM CS LIQUID, estimated cost of $23 each, quantity not to exceed 200, a less lethal 40MM round used to deliver a small liquid chemical payload inside a structure or vehicle. Primarily used to dislodge barricaded subjects from confined areas and causes temporary discomfort in an effort to gain compliance from potentially violent or dangerous subjects. c. DEFENSE TECHNOLOGY FERRET 40 MM CS POWDER, estimated cost of $30 each, quantity not to exceed 100, a less lethal 40MM round used to deliver a small powder chemical payload inside a structure or vehicle. Primarily used to dislodge barricaded subjects from confined areas and causes temporary discomfort in an effort to gain compliance from potentially violent or dangerous subjects.
d. WOOD BATON 40MM, estimated cost of $30 each, quantity not to exceed 50, a less lethal 40MM projectile which is accurate and effective for gaining pain compliance when deployed from approved distances.
e. MUSSLE BLAST 40MM OC, estimated cost of $28 each, quantity not to exceed 100, the 40MM OC round is widely used as a crowd control management tool but can also be used for barricaded subjects during tactical operations. f. DEFENSE TECHNOLOGY RUBBER FOAM 40MM PROJECTILE, estimated cost of $30 each, quantity not to exceed 50, a less lethal 40MM lightweight plastic projectile which provides accurate and effective compliance of potentially violent and dangerous subjects when fired from approved distance.

2. Purpose
a. To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

3. Authorized Use
a. Only those POST certified to deploy chemical munitions are authorized.

Situations for use of the less lethal weapon systems may include, but are not ITEM 9 Agenda Packet Page 50
Military Equipment Inventory
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limited to:
i. Self-destructive;
ii. Dangerous and/or combative individuals;
iii. Riot/crowd control and civil unrest incidents;
iv. Circumstances where a tactical advantage can be obtained; v. Potentially vicious animals; and
vi. Training exercises or approved demonstrations.

4. Expected Life Span
a. Approximately five years.

5. Fiscal Impact
a. Annual maintenance, approximately $50 for each launcher.

6. Training
a. Sworn members utilizing 40MM less lethal chemical agents or impact rounds are trained by POST certified less lethal and chemical agent instructors.

7. Legal and Procedural Rules
a. It is the policy of the CHPD to utilize the 40mm only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

Less Lethal Shotgun: Less lethal shotgun is used to deploy the less lethal 12-guage Super Sock beanbag round.

1. Description, quantity, purchase cost and capabilities a. REMINGTON 870 LESS LETHAL SHOTGUN, estimated cost of $946 each, quantity not to exceed 12, the less lethal shotgun is used to deploy the less lethal beanbag rounds, the range of the weapon system helps to maintain space between officers and suspect reducing the immediacy of the threat which is the principle of de-escalation.
b. BENELLI M4 12 GAUGE SHOTGUN, estimated cost of $1,500, quantity not to exceed 2, the less lethal shotgun is used to deploy the less lethal beanbag rounds, the range of the weapon system helps to maintain space between ITEM 9 Agenda Packet Page 51
Military Equipment Inventory
September 2025

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officers and suspect reducing the immediacy of the threat which is the principle of de-escalation.
c. 12-GAUGE SUPER-SHOCK BEANBAG ROUND, estimated cost of $5 each, quantity not to exceed 200, this ballistic fiber filled bag provides accurate and effective performance when fired from the approved distances.

2. Purpose
a. To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

3. Authorized Use
a. Less lethal shotguns shall be used only by officers trained in their deployment and in a manner consistent with Department policy and training. Situations for use of the less lethal weapon systems may include, but are not limited to, the following:
i. Self-destructive, dangerous and/or combative individuals; ii. Riot/crowd control and civil unrest incidents;
iii. Circumstances where a tactical advantage can be obtained; iv. Potentially vicious animals; and
v. Training exercises or approved demonstrations.

4. Expected Life Span
a. Remington 870 Less and Benelli Lethal Shotgun, approximately 25 years. b. Super-shock Beanbag Round, approximately five years.

5. Fiscal Impact
a. Annual maintenance, approximately $50 for each shotgun.

6. Training
a. All officers are trained in the 12 gauge less lethal shotgun as a less lethal option by in-service.

7. Legal and Procedural Rules
a. It is the policy of the CHPD to utilize the less lethal shotgun only for official law enforcement purposes, and pursuant to State and Federal law, including those ITEM 9 Agenda Packet Page 52
Military Equipment Inventory
September 2025

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regarding the use of force.

Distraction Devices: A distract device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations.

1. Description, quantity, purchase cost and capabilities a. COMBINED TACTICAL SOLUTIONS BAFFLED WHITE SMOKE FLASH BANGS, estimated cost of $38 each, quantity not to exceed 200, a non-fragmenting bang device that produces a loud noise and intense bright light.

2. Purpose
a. To produce atmospheric over-pressure and white light and, as a result, can cause short-term (6-8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.

3. Authorized Use
a. Diversionary devices shall only be used in the following ways:
i. Officers who have been trained in proper use;
ii. In hostage and barricaded subject situations;
iii. In high-risk warrant services where there may be a risk to officer safety; iv. During other high-risk situations where their use would enhance officer safety; and
v. During training exercises.

4. Expected Life Span
a. No expiration date.

5. Fiscal Impact
a. No annual maintenance.

6. Training
a. Prior to use, officers must attend divisionary device training that is conducted by POST certified instructors.

7. Legal and Procedural Rules
a. It is the policy of the CHPD to utilize diversion devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use ITEM 9 Agenda Packet Page 53
Military Equipment Inventory
September 2025

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of force.

Rifles: Guns that are fired from shoulder level, having a long spirally grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.

1. Description, quantity, purchase cost and capabilities a. WINCHESTER M14 7.62 MILLIMETER, estimated cost of $2,500 each, quantity not to exceed four, ability to provide lethal options from extended distances. b. TRW M14 7.62 MILLIMETER, estimated cost of $2,500 each, quantity not to exceed two, ability to provide lethal options from extended distances. c. H&R ARMS M14 7.62 MILLIMETER, estimated cost of $2,500 each, quantity not to exceed 5, ability to provide lethal options from extended distances. d. REMINGTON 700 7.62 MILLIMETER, estimated cost of $2,500 each, quantity not to exceed seven, ability to provide lethal options from extended distances.

2. Purpose
a. To be used to address a threat with more precision and/or greater distances than a handgun, if present and feasible.

3. Authorized Use
a. Only officers that are approved and trained per Department policy.

4. Expected Life Span
a. Approximately 15 years.

5. Fiscal Impact
a. Annual maintenance, approximately $50 for each rifle.

6. Training
a. Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle.
b. Additionally, all members that operate any rifle are required to pass a range qualification.

7. Legal and Procedural Rules
a. It is the policy of the CHPD to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

ITEM 9 Agenda Packet Page 54
Military Equipment Inventory
September 2025

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Chemical Agent and Smoke Canisters: Canisters that contain chemical agents that are released when deployed.

1. Description, quantity, purchase cost and capabilities a. DEFENSE TECHNOLOGY LAUNCHABLE FLAMELESS CS, estimated cost of $43 each, quantity not to exceed 100, can be used in crowd control and tactical deployment situations.
b. DEFENSE TECHNOLOGY INSTANTANEOUS BLAST CS, estimated cost of $43 each, quantity not to exceed 100, can be used in crowd control and tactical deployment situations.
c. DEFENSIVE TECHNOLOGY RIOT CONTROL CS, estimated cost of $41 each, current quantity 20 and not to exceed 100, can be used in crowd control and tactical deployment situations.
d. DEFENSE TECHNOLOGY TRI CHAMBER CS, estimated cost of $45 each, quantity not to exceed 100, can be used in crowd control and tactical deployment situations.
e. DEFENSE TECHNOLOGY POCKET CS, estimated cost of $28 each, quantity not to exceed 100, can be used in crowd control and tactical deployment situations.

2. Purpose
a. To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to:
i. Self-destructive, dangerous and/or combative individuals; ii. Riot/crowd control and civil unrest incidents;
iii. Circumstances where a tactical advantage can be obtained; iv. Potentially vicious animal; and
v. Training exercises or approved demonstrations.

3. Authorized Use
a. Only officers who have received POST certification in the use of chemical agents are authorized to deploy.

ITEM 9 Agenda Packet Page 55
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4. Expected Life Span
a. Approximately five years from manufacturing date.

5. Fiscal Impact
a. No annual maintenance.

6. Training
a. Sworn members utilizing chemical agent canisters are certified by POST less lethal and chemical agent instructors.

7. Legal and Procedural Rules
a. It is the policy of the CHPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

Explosive Breaching Tools: Tools that are used to conduct an explosive breach.

1. Description, quantity, purchase cost and capabilities a. REMINGTON 870 EXPRESS BREACHING SHOTGUN, estimated cost of $500, quantity not to exceed three, the weapon allows for breachers to safely utilize shotgun breaching rounds in order to defeat deadbolts, locks and hinges. The weapon has a standoff at the end of the barrel that allows for positive placement of the weapon into the correct position and vents gasses to prevent over pressure.

2. Purpose
a. The purpose is to quickly and safely gain access to property or structure.

3. Authorized Use
a. Explosive breaching may only occur after authorization of a SWAT Commanding Officer or during training exercises.

4. Expected Life Span
a. Breaching shotgun, approximately 25 years.

5. Fiscal Impact
a. Annual Maintenance is approximately $100.

6. Training
ITEM 9 Agenda Packet Page 56
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a. All officers who use explosive breaching tools shall attend 40 hours of explosive breaching instruction.

7. Legal and Procedural Rules
a. It is the policy of the CHPD to utilize breaching tools only for official law enforcement purposes and pursuant to State and Federal law ITEM 9 Agenda Packet Page 57
Attachment
Citrus Heights PD Policy Manual
Copyright Lexipol, LLC 2025/12/11, All Rights Reserved.

Published with permission by Citrus Heights Police
Department
Use of Military Equipment Owned by Other
Agencies - 2022.pdf - 7
Use of Military Equipment Owned
by Other Agencies - 2022.pdf
Use of Military Equipment Owned by Other Agencies - 2022.pdf ITEM 9 Agenda Packet Page 58
Use of Military Equipment Owned by Other Agencies
Armored Vehicles: Commercially produced wheeled armored personnel vehicle utilized for law enforcement purposes.

1. Description, quantity, purchase cost and capabilities a. LENCO BEARCAT, G2, cost: $315,518.65, quantity: 1. The Lenco Bearcat, G2, is an armored vehicle that seats 10-12 personnel with open floor plan that allows for rescue of down personnel. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor.
b. LENCO BEARCAT, G3, cost: $404,521, quantity: 1. The Lenco Bearcat, G2, is an armored vehicle that seats 10-12 personnel with open floor plan that allows for rescue of down personnel. The Bearcat G3 has increased ground clearance and a robust suspension which allows for an emergency response to almost any situation. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor.

2. Purpose
a. To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents.

4. Expected Life Span
a. Lenco Bearcat models G2 and G3, 25 years.

5. Fiscal Impact
a. None
ITEM 9 Agenda Packet Page 59
Use of Military Equipment Owned by Other Agencies
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6. Training
a. All driver/operators shall attend formalized instruction and be trained in vehicle operations and practical driving instruction.

7. Legal and Procedural Rules
a. It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK): The ROOK is a custom “armored critical incident vehicle” built on the chassis of a CAT Bulldozer, manufactured by Ring Power. The ROOK is built to increase job safety, versatility, and mission specific response. The ROOK is equipped with powerful mission specific attachments. The ROOK is capable of being used in tight areas both inside and outside, where traditional armored vehicles may not be able to enter.

1. Description, quantity, purchase cost and capabilities a. ROOK- Modified CAT compact Track Loader chassis, cost: $400,000, quantity: 1.

The ROOK can be utilized by authorized SWAT personnel to identify, discover and locate threats or hazards, to include explosives and ballistic threats. The ROOK may be used to stabilize critical infrastructure and functions to minimize health and safety threats during a terrorist attack. During a terrorist attack, the ROOK will allow for law enforcement protected response.

2. Purpose
a. To provide a capability for defensive ballistic protection in indoor and outdoor environments, rescue platforms for elevated structure rescue, and rough terrain environments where certain equipment would be limited.

3. Authorized Use
a. The ROOK shall be used by SWAT team members in a manner consistent with Department policy and training. Furthermore, only SWAT team members who have completed the appropriate training, will operate the ROOK.

4. Expected Life Span
ITEM 9 Agenda Packet Page 60
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a. 25 years

5. Fiscal Impact
a. None

6. Training
a. All driver/operators shall attend formalized instruction and be trained in vehicle operations and practical driving instruction.

7. Legal and Procedural Rules
a. It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

Robots: A remotely-controlled unmanned machine that operates on the ground, which is utilized to enhance the safety of the community and officers.

1. Description, quantity, purchase cost and capabilities a. REMOTEC ANDROS F6-A, cost: $250,000 each, quantity: two. The Remotec ANDROS F6A is a heavy-duty robot. Its stair climbing ability, an arm capable of lifting 65lbs. The F6A also offers multiple communications options, a chassis and manipulator that allow for accessories and tool combinations, and quick-release pneumatic wheels for rapid width reduction.
b. QINETIC DRAGON RUNNER ROBOT, cost: $90,000, quantity: one. Dragon Runners can be hand carried or transported inside a rucksack, and both can be remotely operated from many hundreds of meters away, providing protection and safety to their operators.
c. TEMPER 4WD Gen 2, cost: $159, quantity: one. Length 13.75 inches, two hours of operation time and capable of video recording.
d. LOSI NIGHT CRAWLER SE 4WD, cost: $350, quantity: one. Length 16.9 inches, two hours of operation time and capable of video recording.

2. Purpose
a. To be used to remotely gain visual/audio data, deliver HNT phone, open doors, disrupt packages, and clear buildings.

ITEM 9 Agenda Packet Page 61
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3. Authorized Use
a. Only assigned operators who have completed the required training shall be permitted to operate the robots identified at sections 2(a)(i) through (ii). Use is established by the Bomb Squad Commander and or Incident Commander.

4. Expected Life Span
a. All robots, 8-10 years.

5. Fiscal Impact
a. None

6. Training
a. All robot operators must complete the FBI’s 6-week hazardous device school prior to operating the robots identified at sections 2(a)(i) through (ii).

7. Legal and Procedural Rules
a. It is the policy of the CHPD to utilize a robot only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.

ITEM 9 Agenda Packet Page 62

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: May 27, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
SUBJECT: Auburn Boulevard Complete Streets, Phase 2 Project Authorize Additional Work
Recommendation
On May 9, 2024, the City Council approved a resolution authorizing the City Manager to execute an agreement with George Reed, Inc. (GRI) for the Auburn Boulevard Complete Streets, Phase 2 Project (Project). Construction of this Project has required extensive coordination with adjacent property owners, developers and utility companies, many of which have had both planned and unplanned construction on their properties or facilities at the same time construction was occurring on the City’s Project.

In order to coordinate and ensure work necessitated by private developments, private property upgrades or utility repairs/upgrades is complete prior to the final items of work associated with the City’s Project, as well as to restore affected areas to an acceptable condition, additional construction work is recommended.

Additionally, to continue construction management, inspection, materials testing and construction-phase design support services through project completion, amendments to both the construction management contract with Psomas and design contract with Bennett Engineering Services, is recommended.

Staff recommends the City Council adopt the following resolutions:

1. Resolution No. 2026-___ a Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute Change Orders up to 11.3% of the contract amount with George Reed, Inc. for the Auburn Boulevard Complete Streets, Phase 2 Project and increasing the total authorized construction budget to $32,168,856.87.

2. Resolution No. 2026-____ A Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute Amendment No. 1 to the agreement for professional services with Psomas for the Auburn Boulevard Complete Streets, Phase 2 Project.

ITEM 10 Agenda Packet Page 63
Subject: Auburn Boulevard Complete Streets, Phase 2 Project – Authorize Additional Work Date: May 27, 2026

Page 2 of 5 ends

3. Resolution No. 2026-____ A Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute Amendment No. 5 to the agreement for professional services with Bennett Engineering for the Auburn Boulevard Complete Streets, Phase 2 Project.

Strategic Plan Alignment
This item is in alignment with the following City Council priority:

Goal: Maintain Public Infrastructure and Enhance All Modes of Transportation Fiscal Impact
The Contractor’s original bid for the Project was $28,918,864.50 and the recommended additional construction work beyond change orders already approved and referenced in Table 1 below is anticipated to cost no more than $356,886.60. In addition, approval of two professional services contract amendments is recommended, totaling $467,507.62.

The recommended action will result in no fiscal impact to the General Fund. A portion of the proposed additional work will be completed on behalf of private property owners, developers and utility companies, and all associated costs will be fully reimbursed.

Additionally; the recommended action seeks authorization to program $467,507.62 in existing SB1 RMRA funds and $75,000 in Roadway Impact Fee funds to support the Project.

The City previously secured several grant awards and committed various local funds for Project construction, as summarized in Table 2.

The recommended action will result in no fiscal impact to the Fiscal Year (FY) 2026/27 budget, the 2027/28 budget, nor the current Capital Improvement Program (CIP). The anticipated Project costs and associated funding sources are outlined in the tables below:

Table No 1. – Estimated Project Construction Costs
Project Component Estimated Cost
Original Contract Award 28,918,864.50
Originally Authorized Contingency 2,893,105.77
Proposed Additional Work – Private Property Upgrades
(to be approved by Contract Change Order)
281,886.60
Proposed Additional Work – Additional Private Parking Lot Restoration (to be approved by Contract Change Order)
75,000.00
Construction SubTotal 32,168,856.87
Previously approved Construction Management Contract 3,592,645.86 Additional Construction Management, Inspection and Material Inspection Services
452,455.83
Construction Management & Inspection SubTotal 4,045,101.69 Previously approved Construction Design Support Services Contract 110,383.87 Additional Design Support Services 15,051.79
Construction Design Support SubTotal 125,383.87
ITEM 10 Agenda Packet Page 64
Subject: Auburn Boulevard Complete Streets, Phase 2 Project – Authorize Additional Work Date: May 27, 2026

Page 3 of 5 ends

Project Component Estimated Cost
Total 36,339,394.22
Table No 2. – Project Funding
Source Fund Fund No. Amount ($)
SACOG Grant (CMAQ Funds) - 6,371,845.00
SACOG Grant (NHPP Funds) - 9,552,155.00
SACOG Grant (STA Funds) - 676,000.00
SACOG Grant (RSTP Funds) - 4,500,000.00
Active Transportation Program (ATP) Grant Funds - 1,512,000.00 Placer-Sacramento Gateway Plan Grant (SCCP Funds) - 2,860,000.00 General Fund 100 4,000,000.00
Smart Growth Incentive Program (SGIP Funds) - 519,000.00 Measure A Maintenance 210 538,549.00
Stormwater Utility Funds 209 2,434,418.00
Measure A - Bike/Ped 311 90,000.00
Utility Company Contributions (CHWD/SASD) - 1,095,710.00 SMUD SD-14 Contribution - 1,365,323.00
SB1 RMRA Funds
Additional Construction Management, Inspection
Additional Construction Design Support
206 467,507.62
Additional Developer/Private Property/City of
Roseville/Utility Company Reimbursements
- 281,886.60
Roadway Impact Fee Funds
Additional Work – Private Parking Lot Upgrades
262 75,000.00
Total 36,339,394.22
Background and Analysis
This project is a culmination of two decades of City, community, and business owner partnership. The Project is identified as a priority in the City’s General Plan, Bikeway Master Plan and Pedestrian Master Plan. The Project is also a regionally significant Project for the Sacramento Area Council of Governments (SACOG), a major funding contributor. Other partnering agencies supporting the Project include the Auburn Boulevard Business Association (ABBA, which has since become inactive), Sunrise Recreation and Park District, SacRT, the California Department of Transportation (Caltrans), City of Roseville and numerous utility companies.

Additional Work
On May 9, 2024, the City Council authorized the City Manager to execute a contract with GRI for construction of the Project. Construction of this Project has required extensive coordination with the adjacent property owners, several developers and various utility companies, many of which have had both planned and unplanned construction on their properties or facilities at the same time as construction was occurring on the City’s Project.

ITEM 10 Agenda Packet Page 65
Subject: Auburn Boulevard Complete Streets, Phase 2 Project – Authorize Additional Work Date: May 27, 2026

Page 4 of 5 ends

In order to coordinate work and ensure underground work necessitated by private property developments, private property upgrades or utility repairs/upgrades is completed prior to the final items of work associated with the City’s Project (i.e. roadway resurfacing), the City has been requested to perform additional work on behalf of various stakeholders, including:
 CHWD water main extension at 8615 Auburn Blvd. ($113,061.25) o This is a condition of approval for a new development coming to this property and reimbursement will be split between the developer and CHWD.  Storm Drain connections at 8615 Auburn Blvd. ($18,392.32) o Deposit from developer already received.
 Storm Drain Repairs on northern end of Auburn Blvd. ($68,400.00) During construction, the existing condition of several storm drain systems were found to be in such deteriorated condition replacement was warranted. A portion of the deteriorated storm drain systems are within the City of Roseville’s jurisdiction. o To be reimbursed by City of Roseville
 Private waterline extension at 8432 Auburn Blvd. ($18,900.00) o Deposit from property owner already received.
 Private sewer lateral relocation at 8016 Auburn Blvd. ($28,693.25) o To be reimbursed by Sac Sewer
 Upgrades to CHWD material. ($9,237.38)
o To be reimbursed by CHWD
 CCI/Comcast modifications throughout the corridor. ($15,002.40) o To be reimbursed by CCI/Comcast
 PG&E gas valve adjustments. ($10,200.00)
Originally PG&E was to raise and lower their own gas valve covers to the new finished grade within the asphalt resurfacing limits. However, during coordination of this item, and to expedite the construction schedule, PG&E authorized the City’s contractor to perform this work on their behalf.
o To be reimbursed by PG&E
As construction progressed, unforeseen field conditions have required adjustments to the original design. These conditions have resulted in impacts to several private properties beyond what was initially anticipated. To restore affected areas to an acceptable condition and maintain consistency along the project corridor, additional parking lot sealing and restriping is recommended at multiple locations.

To accommodate these necessary repairs, it is recommended that an additional $75,000 be authorized to expand the limits of private parking lot restoration. Specific repair extents will be determined in the field on a case-by-case basis through coordination between the City’s construction management team, city staff, and individual property owners.

Additional Design Support Services
On March 26, 2020, the City Council authorized an agreement with Bennett Engineering Services to perform final design engineering and right-of-way acquisition services for the ITEM 10 Agenda Packet Page 66
Subject: Auburn Boulevard Complete Streets, Phase 2 Project – Authorize Additional Work Date: May 27, 2026

Page 5 of 5 ends

Auburn Boulevard Complete Streets, Phase 2 Project. Subsequent amendments for additional professional services were approved by the City Council on October 14, 2021, January 26, 2023, May 9, 2024, and July 10, 2024.

Although construction is nearing completion, several unanticipated field conditions have emerged throughout the construction phase, including significant quantities of unsuitable material, previously unidentified utility conflicts, and increased coordination needs with private property owners.

Amendment No. 5 to the Agreement with Bennett Engineering Services will provide the necessary additional scope to complete remaining construction-phase design support through Project closeout.

Additional Construction Management and Inspection Services On May 9, 2024, City Council authorized an Agreement for Professional Services with Psomas to provide construction management, inspection, and materials testing services for the Project.

The original project specifications anticipated an eight-month utility shutdown period during which the contractor would demobilize and only utility companies would be performing work and no city inspection services would be required. However; because utility work was concentrated primarily along the east side of Auburn Boulevard, the contractor was able to continue roadway improvements during this period, resulting in an accelerated overall schedule.

As a result, construction management, inspection and materials testing services were required throughout the utility shutdown window – services that were not included in the original contract budget.

To ensure Psomas has sufficient funding to support the Project through completion and assist the City with Caltrans’ closeout requirements, an amendment to the Agreement is necessary. Staff has negotiated Amendment No. 1 to provide compensation for the extended duration of the construction activities.

Attachments

1. Resolution No. 2026-___, a Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute Change Orders up to 11.3% of the contract amount with George Reed, Inc. for the Auburn Boulevard Complete Streets, Phase 2 Project and increasing the total authorized construction budget to $32,168,856.87.

ITEM 10 Agenda Packet Page 67
RESOLUTION NO. 2026-___

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

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDERS UP TO 11.3% OF THE CONTRACT AMOUNT WITH GEORGE REED, INC.

FOR THE AUBURN BOULEVARD COMPLETE STREETS, PHASE 2 PROJECT AND

INCREASING THE TOTAL AUTHORIZED CONSTRUCTION BUDGET TO
$32,168,856.87
WHEREAS, on May 9, 2024, the City Council of the City of Citrus Heights, California, authorized the City Manager to execute a construction contract with George Reed, Inc. (GRI) for the Auburn Boulevard Complete Streets, Phase 2 Project (Project); and WHEREAS, the City wishes to construct additional work in the amount not to exceed $356,886.60 to ensure underground work necessitated by private developments, private property upgrades or utility repairs/upgrades is complete prior to the final items of work associated with the City’s Project; and
WHEREAS, the City wishes to increase the overall construction budget from $31,811,970.27 to $32,168,856.87 in order to fund the Contract Change Order(s); and WHEREAS, the City wishes to increase the City Manager’s authority to execute Contract Change Orders in an aggregate amount up to 11.3% of the contract amount; and WHEREAS, private property owners, developers and utility agencies will reimburse the city for costs associated with this budget adjustment for the Project; and WHEREAS, there are sufficient Roadway Impact Fee Funds (Fund 262) available to cover the remaining balance of extra work.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City of Citrus Heights as follows,

1. The City Manager is hereby authorized to execute Contract Change Order(s) up to

11.3% of the total contract with George Reed, Inc. for the Auburn Boulevard Complete Streets, Phase 2 Project.

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

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 27th day of May, 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ITEM 10 Agenda Packet Page 68

ATTEST:

Amy Van, City Clerk
ITEM 10 Agenda Packet Page 69
RESOLUTION NO. 2026-___

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

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT FOR PROFESSIONAL SERVICES WITH PSOMAS FOR THE AUBURN BOULEVARD COMPLETE STREETS PHASE 2 PROJECT
WHEREAS, on May 9, 2024, the City Council of the City of Citrus Heights, California authorized execution of an agreement with Psomas in the amount of $3,592,645.86 for Construction Management, Inspection and Materials Testing Services; and WHEREAS, modifications to the construction schedule during the utility coordination phase resulted in increased need for construction management, inspection and materials testing services; and
WHEREAS, the City wishes to amend the agreement to provide additional Construction Management, Inspection and Materials Testing Services for the Project to ensure continuous support throughout the remainder of the project and through completion; and WHEREAS, Amendment No. 1, in the amount of $452,455.83 will increase the total not-toexceed contract fee to $4,045,101.69; and WHEREAS, the requested amendment will be paid for utilizing Senate Bill 1 (SB1) Road Maintenance and Rehabilitation Account (Fund 206) Funds.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City of Citrus Heights as follows,

1. The City Manager is hereby authorized to execute Contract Amendment No. 1, in the amount not to exceed $452,455.83 for the Auburn Boulevard Complete Streets, Phase 2 Project.

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

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 27th day of May, 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
ITEM 10 Agenda Packet Page 70
RESOLUTION NO. 2026-___

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

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 5 TO THE AGREEMENT FOR PROFESSIONAL SERVICES WITH BENNETT ENGINEERING SERVICES INC. FOR THE AUBURN BOULEVARD COMPLETE STREETS, PHASE 2 PROJECT
WHEREAS, in 2014 the City received a Sacramento Area Council of Governments Grant in the amount of $3,541,200 ($4,000,000 total project cost) for the preliminary engineering and rightof-way acquisition for the Auburn Blvd Complete Streets, Phase 2 Project; and WHEREAS, in December 2014, the City entered into an agreement with Parsons Brinkerhoff to provide preliminary engineering and right-of-way acquisition services, which were completed in 2018; and
WHEREAS, in October 2019, the City issued a Request for Proposals (RFP) seeking a qualified firm to provide the necessary final design services for the Project; and WHEREAS, on March 26, 2020, the City Council of the City of Citrus Heights, California authorized execution of an agreement with Bennett Engineering Services, Inc. in the amount of $1,282,358.42 for the final engineering design of the Auburn Blvd. Complete Streets, Phase 2 Project; and
WHEREAS, on October 14, 2021, the City Council authorized execution of amendment No. 1 to the agreement with Bennett Engineering Services, Inc. in the amount of $419,890.27 for additional engineering design services; and
WHEREAS, on January 26, 2023, the City Council authorized execution of amendment No. 2 to the agreement with Bennett Engineering Services, Inc. in the amount of $149,561.01 for additional engineering design services; and
WHEREAS, on May 9, 2024, the City Council authorized execution of amendment No. 3 to the agreement with Bennett Engineering Services, Inc. in the amount of $110,383.87 for additional engineering design services; and
WHEREAS, on July 20, 2024, the City Council authorized execution of amendment No. 4 to the agreement with Bennett Engineering Services, Inc. in the amount of $47,320.10 for additional engineering design services; and
WHEREAS, the City wishes to amend the agreement to further provide professional services associated with construction-phase design support of the Project; and WHEREAS, Amendment No. 5, in the amount of $15,051.79 will increase the total not-toexceed contract amount to $2,024,565.46; and ITEM 10 Agenda Packet Page 71
Subject: Auburn Boulevard Complete Streets, Phase 2 Project – Authorize Additional Work Date: May 27, 2026

Page 2 of 2 ends

WHEREAS, the proposed professional services will be paid for Senate Bill 1 (SB1) Road Maintenance and Rehabilitation Account (Fund 206) Funds.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City of Citrus Heights as follows,

1. The City Manager is hereby authorized to execute Contract Amendment No. 5, in the amount not to exceed $15,051.79 for the Auburn Boulevard Complete Streets, Phase 2 Project.

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

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 27th day of May, 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
ITEM 10 Agenda Packet Page 72

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: May 27, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Amy Van, City Clerk
Casey Kempenaar, Community Development Director
Nicole Piva, Housing and Human Services Program Coordinator SUBJECT: Appointment to Sacramento Homeless and Housing Planning Task Force Recommendation
Citrus Heights City Council Members represent the city on various regional boards and committees as part of their duties as council members. As outlined in the City Council Handbook the Mayor is responsible for making appointments to regional boards and commissions, which occur in January each year. Mayor Lopez-Taff and Vice Mayor Middleton currently serve on the existing Sacramento Steps Forward Homeless Policy Council, following their appointments on January 14, 2026. The Planning Task Force would replace the current Sacramento Steps Forward Homeless Policy Council, also known as the Sacramento Homeless Policy Council. This action formalizes their participation under the proposed regional governance transition and ensures continuity of representation as discussions move forward.

Staff recommends that the City Council take the following actions:

1. Appoint MariJane Lopez-Taff, Mayor, as the City’s primary representative on the Sacramento Homeless and Housing Planning Task Force.

2. Appoint Porsche Middleton, Vice Mayor, as the City’s alternate representative to the Planning Task Force.

3. Authorize these appointments to serve the duration of the Task Force term or until such time as the City Council makes subsequent appointments or modifications.

Strategic Plan Alignment
This item is in alignment with the following City Council priorities:
• Goal: Maintain and Enhance Fiscal Stability While Supporting Operational Excellence • Goal: Enhance Community Vibrancy and Engagement
• Goal: Preserve and Enhance Public Safety
ITEM 11 Agenda Packet Page 73
Subject: Appointment to Sacramento Homeless and Housing Planning Task Force Date: May 27, 2026

Page 2 of 3 ends

Fiscal Impact
There is no fiscal impact associated with this action.

Background and Analysis
This report provides an overview of ongoing regional efforts to develop a new governance and collaboration model related to homeless and housing services within Sacramento County. These discussions involve the County of Sacramento, the City of Sacramento, local jurisdictions, and Sacramento Steps Forward, which serves as the collaborative applicant for the regional Continuum of Care (CoC).

Regional coordination related to homeless and housing services continues to evolve as jurisdictions collaboratively evaluate long-term governance and operational structure.

On April 28, 2026, Sacramento City Council discussed and voted on a governance model to move forward with a framework intended to consolidate coordination among Sacramento County, the City of Sacramento, the Continuum of Care, and participating local jurisdictions under one Governing body. Attachment 1is a visual of City of Sacramento Option 2. Local funding sources would remain under the control of their respective jurisdictions.

The proposed framework is intended to improve regional collaboration, streamline decisionmaking, strengthen accountability, a space for residents to voice opinions, and enhance collaboration among jurisdictions and service providers addressing homelessness throughout the region.

Given the alignment between the County and the City of Sacramento, as well as input from surrounding cities letters were sent to the CoC Chair asking for the CoC Board to take formal action to participate in the new framework that would bring together the functions of the CoC and local jurisdictions under one new Governing Body.

On May 13, 2026, the CoC received a joint presentation from the County and the City of Sacramento staff and voted 16 to 10 to participate in the new framework and to appoint CoC representation to the ad hoc Planning Task Force to develop the details, bylaws and membership for the new Governing Body. Attachment 2 is the presentation provided to the CoC Board.

With this approval by the CoC, the six cities, the County and the CoC are all in agreement with a framework for a new Governing Body that includes elected representatives from each participating jurisdiction as well as the CoC Board, with support from jurisdictional staff and staff of the CoC Collaborative Applicant (Sacramento Steps Forward).

ITEM 11 Agenda Packet Page 74
Subject: Appointment to Sacramento Homeless and Housing Planning Task Force Date: May 27, 2026

Page 3 of 3 ends

Proposed Process
Phase 1: Establishing a Planning Task Force
• Seat elected officials and CoC members to task force
• Develop a scope and formal agreement amongst partners for planning efforts • Modify CoC bylaws, including selection process for community members (for CoC approval)
Phase 2: Operationalize new CoC
• Seat new CoC members
• Newly seated CoC, inclusive of elected official’s tasks on CoC Board functions Phase 3: Establish new Governing Body
• Develop charter, bylaws, roles and responsibilities for new Governing Body • Appoint members from cities and County to new Governing Body • City Councils and Board of Supervisors approve formal agreement • Start development of strategic plan
As for next steps, staff will continue to monitor regional discussions and provide updates to the City Council regarding participation in the ad hoc Planning Task Force and eventual new Governing Body.

Environmental Review
This project is categorically exempt from the California Environmental Quality Act (CEQA Guidelines Section 15061(b) (3)) in that the action will not result in any impacts on the physical environment.

Attachments:

1. April 28, 2026, Visual of City of Sacramento Option 2

2. May 13, 2026, Presentation to the Continuum of Care
ITEM 11 Agenda Packet Page 75
Attachment 1
ITEM 11 Agenda Packet Page 76
Attachment 2
Proposed Homeless Partnership Model
May 13, 2026
Emily Halcon, Director, County Department of Homeless Services and Housing Ya-yin Isle, City of Sacramento Housing Manager
ITEM 11 Agenda Packet Page 77
Attachment D
• 2010 to 2012 – CoC Lead Agency role transfers from County DHA to SSF, with intention of public-private structure.
• 2021 – Sacramento Homeless Policy Council formed.
• 2023 – Consultant report on Shared Governance options completed. • August 2025 to April 2026 – County Board of Supervisors, councils from six cities and the CoC Board discuss various proposals to align CoC functions with homeless and housing activities happening jurisdictionally.

Background and Timeline
May 13, 2026 2
October 28, 2025: Joint meeting of the County Board of Supervisors, Sacramento City Council, and Mayors of the six cities meet to discuss homelessness and hear recommendations from Mosaic Consulting.

ITEM 11 Agenda Packet Page 78
Attachment D
Vote to:

1. Participate in a new framework that would bring together the functions of the CoC and local jurisdictions under one Governing Body.

2. Appoint CoC representative(s) to participate alongside elected officials on a task force to develop new Governing Body structure, including integration of CoC functions.

Staffing:

CoC lead agency staff to work alongside jurisdictional staff (which includes SHRA) to support task force with independent consultant administrator.

Overview of CoC Ask
May 13, 2026 3
ITEM 11 Agenda Packet Page 79
Attachment D
• One body, serving as the community wide board for broader homeless and housing issues, adding community voices when seated as the CoC Board
• As the CoC Board:
o Majority representation of elected officials of the County and local cities oFocus on CoC mandated functions and funding
oCoC Board meetings will be open meetings and Brown Act compliant oFinal decision-making body for CoC funding and programs • As the new governing body of elected officials:
o Monthly, open meetings that are Brown Act compliant
o Will also purposefully coordinate on housing activities managed by jurisdictions and SHRA
o Will have dedicated consultant staff support
Proposed Model
May 13, 2026 4
ITEM 11 Agenda Packet Page 80
Attachment D
Jurisdictional officials have not yet weighed in on the specific composition of the new Governing Body, but have expressed a commitment to:
• Limited number of members for efficiency and focus
• A majority of elected official members, ensuring public accountability and reflecting the proportion of funding supporting homeless & housing programs
• A restructuring of the CoC Board, bringing community voices alongside elected officials when voting on CoC activities
• Enhancement of community voices via a strong committee structure Proposed Model
May 13, 2026 5
ITEM 11 Agenda Packet Page 81
Attachment D
Phase 1: Establish a Planning Task Force
• Seat elected officials and CoC members to task force
• Develop a scope and formal agreement amongst partners for planning efforts • Modify CoC bylaws, including selection process for community members (for CoC approval)
Phase 2: Operationalize new CoC
• Seat new CoC members
• Newly seated CoC, inclusive of elected officials takes on CoC Board functions Phase 3: Establish new Governing Body
• Develop charter, bylaws, roles and responsibilities for new Governing Body • Appoint members from cities and County to new Governing Body • City Councils and Board of Supervisors approve formal agreement • Start development of strategic plan
Proposed Process
May 13, 2026 6
ITEM 11 Agenda Packet Page 82
Attachment D
Questions and Discussion
ITEM 11 Agenda Packet Page 83
Printed on Recycled Paper

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: May 27, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Susan Talwar, Administrative Services Director
Dena Jenkins, Finance Manager
SUBJECT: Award of Banking Services Contract
Recommendation
It is recommended that the City Council authorize the City Manager to execute an agreement with River City Bank for citywide banking services.

Strategic Plan Alignment
This item is in alignment with the following City Council priority:

Goal: Maintain and Enhance Fiscal Stability While Supporting Operational Excellence Fiscal Impact
Selection of River City Bank will result in an estimated $10,000 in annual savings to the City due to the bank’s commitment to waive all banking service fees. River City Bank has offered this fee -free structure for the full duration of the City’s relationship with the bank, providing ongoing cost savings well beyond the initial contract term.

Background and Analysis
The City issued a Request for Proposals in late 2025 seeking comprehensive banking services, including operating and payroll accounts, remote deposit, positive pay, online banking, merchant services coordination, and related treasury management functions. The City received six complete responses from BMO, Wells Fargo, U.S. Bank, River City Bank, Five Star Bank, and JP Morgan Chase. Staff conducted a thorough review of each proposal, utilizing a detailed scoring matrix, interviews with the respondent banks, and an evaluation of service capabilities, pricing structure, customer service models, and community engagement. The evaluation process ITEM 12 Agenda Packet Page 84
Subject: Award of Banking Contract
Date: May 27, 2026

Page 2 of 2 ends

clearly demonstrated that while several institutions presented strong proposals, River City Bank consistently stood out across nearly all categories.

River City Bank distinguished itself by providing the most comprehensive and cost effective service package, including a full waiver of all banking service fees, something no other bank offered. Their proposal reflected a deep understanding of municipal banking needs, supported by a highly experienced public sector banking division. The bank currently manages more than $2 billion in public agency deposits and serves over 47 local government clients, demonstrating both capacity and expertise in handling complex municipal treasury operations. Staff also noted that the bank’s robust treasury management tools including; two line payee positive pay, flexible ACH and wire capabilities, strong fraud prevention controls, and a highly responsive customer support team align directly with the City’s operational requirements.

Beyond technical merit, River City Bank’s strong local presence and longstanding relationship with the community were significant contributors to the recommendation. The bank operates a branch within the City at 5650 Sunrise Boulevard and maintains its Public Sector Banking Division in nearby Sacramento, ensuring convenient access and continuity of service.

Additionally, River City Bank’s community engagement record resonated strongly with staff and aligns with Council’s priorities. Examples include volunteer work with Junior Achievement’s financial literacy programs at local Citrus Heights schools, longstanding partnerships with Habitat for Humanity, and sponsorship of community events at the Citrus Heights Community Center. One statement shared during interviews “tell us and we’ll be there, even if you don’t hire us” captured the bank’s customer centric attitude and left a strong impression.

Following the detailed review of all proposals, River City Bank emerged as the top choice based on service quality, operational reliability, cost savings, community investment, and alignment with the City’s long-term needs. Awarding the contract to River City Bank will result in substantial fiscal benefit through the fee waiver, while also enhancing the City’s banking capabilities and maintaining a strong local partnership.

Attachments

1. River City Banking Agreement
ITEM 12 Agenda Packet Page 85
Deposit Account Agreement
(Effective May 27, 2026)
ITEM 12 Agenda Packet Page 86

TABLE OF CONTENTS
Page
i
ACCOUNT AGREEMENT.................................................................................................................. 2 DEPOSITS............................................................................................................................................ 2 FUNDS AVAILABILITY.................................................................................................................... 3 INTEREST ON DEPOSITS ................................................................................................................. 5 WITHDRAWALS ................................................................................................................................ 6 ACCOUNT LIMITATIONS ................................................................................................................ 7 FEES ..................................................................................................................................................... 8 STATEMENTS AND LIABILITY ...................................................................................................... 8 Fraud Prevention. (Business Accounts Only) ………………………………………………10 CONSUMER ELECTRONIC FUND TRANSFERS ......................................................................... 13 DISPUTE RESOLUTION.................................................................................................................. 18 ADDITIONAL TERMS AND CONDITIONS .................................................................................. 19 Account Verification.............................................................................................................. 20 Adjustments. .......................................................................................................................... 20 Amendments/Changes in Account Agreement...................................................................... 20 Changes in Account Ownership, Address and Authorized Signers....................................... 20 ATM Safety ........................................................................................................................... 21 Checks Bearing Notations...................................................................................................... 21 Check Charges, Format, and Security.................................................................................... 21 Check Endorsement ............................................................................................................... 22 Check Images......................................................................................................................... 22 Check Processing Cutoff Times............................................................................................. 22 Check Signature Verification................................................................................................. 22 Compliance ............................................................................................................................ 22 Conflicting Demands/Disputes.............................................................................................. 22 ITEM 12 Agenda Packet Page 87
TABLE OF CONTENTS (cont.)
Page
ii
Consent For Us to Contact You ............................................................................................. 23 Consent to Gather Information .............................................................................................. 23 Cutoff Times.......................................................................................................................... 23 Death or Adjudication of Incompetence ................................................................................ 23 Deposit Insurance................................................................................................................... 24 Facsimile Signatures.............................................................................................................. 24 Fax Instructions/Voice Mail/Email........................................................................................ 24 Financial Statement................................................................................................................ 24 Force Majeure ........................................................................................................................ 24 Governing Law and Rules ..................................................................................................... 24 Inactive Accounts................................................................................................................... 24 Indemnification...................................................................................................................... 25 Legal Process......................................................................................................................... 25 Limitation on Time to Bring Action ...................................................................................... 25 MasterCard® Automatic Billing Updater.............................................................................. 25 Other Agreements.................................................................................................................. 26 Overdrafts .............................................................................................................................. 26 “Pay-on-Death” Accounts...................................................................................................... 27 Photocopies............................................................................................................................ 27 Postdated Checks................................................................................................................... 27 Power-of-Attorney ................................................................................................................. 28 Privacy ................................................................................................................................... 28 Protecting Your Identity ........................................................................................................ 29 Remotely Created Checks and Demand Drafts...................................................................... 29 Returned Items/Transactions ................................................................................................. 29 ITEM 12 Agenda Packet Page 88
TABLE OF CONTENTS (cont.)
Page
iii
Security Interest ..................................................................................................................... 29 Setoff...................................................................................................................................... 29 Severability ............................................................................................................................ 29 Stale-Dated Checks................................................................................................................ 29 Stop Payment Orders............................................................................................................. 30 Subaccounts........................................................................................................................... 30 Substitute Checks................................................................................................................... 31 Telephone and Electronic Communication Monitoring/Recording....................................... 32 Termination/Closing Your Account ...................................................................................... 32 Third-Party Mobile Wallets................................................................................................... 33 Transfers/Assignments........................................................................................................... 35 Waivers.................................................................................................................................. 35 WITHHOLDING OF INCOME TAX................................................................................................ 35 QUESTIONS OR COMMENTS ........................................................................................................ 35 ITEM 12 Agenda Packet Page 89
www.RiverCityBank.com Page 2

ACCOUNT AGREEMENT
Welcome to River City Bank (RCB). This Deposit Agreement and Disclosure, your signature card, consumer privacy notice, schedule of miscellaneous fees and service charges, product information and disclosure (if any), and the other information we provide to you when you open your account, represent our agreement with you (this “Agreement”) and contain important information about your account. Please read this Agreement carefully. By signing our signature card, requesting an account, or maintaining an account, you acknowledge that you have reviewed, understand and agree to be governed by the Agreement, as amended by us from time to time. NOTE: IF A DISPUTE ARISES BETWEEN US, THIS

AGREEMENT MAY REQUIRE THE DISPUTE TO BE RESOLVED THROUGH ARBITRATION OR JUDICIAL REFERENCE, RATHER THAN BY JURY TRIAL. PLEASE CAREFULLY READ THE “DISPUTE RESOLUTION” SECTION FOR DETAILS.

Terms. In this booklet, the terms “customer”, “you” and “your” refer to the party in whose name an account is maintained, each authorized signer on an account, all account owners and beneficiaries, and any person opening or authorized to control the account or any aspect of the account; the terms “we,” “us” and “Bank” refer to River City Bank. Our “business days” are Monday through Friday, excluding federal holidays. Unless otherwise specified, the times indicated in these terms are Pacific Time.

Identification. To help the government fight the funding of terrorism and money laundering activities, federal law (the USA PATRIOT Act) requires us to obtain, verify, and record information that identifies each person who opens an account. What this means for you: when you apply for an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

DEPOSITS
Source. We may accept items payable to any of you for deposit to your account from any source without questioning the authority of the person making the deposit. We also may give cash back to any authorized account signer(s) or agent(s) in connection with items payable to any owner, whether or not the items have been endorsed by the owner. If you make a deposit or payment that is not accompanied by instructions indicating how or where it is to be credited, we may apply it at our discretion to any loan or deposit account any of you maintains with us.

Endorsements. We may add your endorsement and/or collect items deposited to your account without your endorsement. We also may require your personal endorsement prior to accepting an item for deposit. If you deposit an item that is payable to and bears the endorsements of more than one person or persons who are not known to us, we may refuse the item, require all endorsers to be present, or require that the endorsements be guaranteed by another financial institution acceptable to us before we accept the item. You warrant that any third party checks you deposit to your account will be endorsed or authorized for deposit by all payees.

Analyzed Accounts. If you deposit funds that belong to third parties (including but not limited to “End Client” funds you manage by contract for the benefit of, and on behalf of, a third party) in an analyzed account, you represent to us that: (a) you are authorized by such parties to benefit from the use of any associated earnings credit, and (b) your use of the earnings credit will not violate any contract, law or ITEM 12 Agenda Packet Page 90
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regulation. You also agree to indemnify and hold us harmless from and against any and all claims, actions, proceedings, losses, costs (including attorney fees and other charges), liabilities and/or damages that arise from your use of the analysis service or the manner in which you compensate or charge End Clients, beneficial owners, or other third parties for your use of our services or the manner in which you compensate or charge such parties for your use of our services. This provision shall survive the termination of this Agreement.

Items Sent For Collection. We and other institutions may refuse to accept a check or other item for deposit or may accept it on a collection basis only. This sometimes occurs with foreign, questionable, or damaged items. If we accept an item for collection, we will send it to the institution upon which it is drawn, but will not credit your account for the amount until we receive the funds from the other institution. If we elect to credit your account before then, we may charge the amount back against your account if we do not receive payment for any reason. We may impose a fee in connection with sending and receiving items for collection (e.g., by charging your account or deducting the fee from the amount remitted). Other institutions that send or receive items for collection involving your account also may impose a fee for their services.

Verification and Collection. Any item that we cash or accept for deposit is subject to later verification and final payment. We may deduct funds from your account if an item is lost, stolen or destroyed in the collection process, if it is returned to us unpaid, or if it was improperly paid, even if you have already used the funds. All deposits, including cash deposits, are subject to later verification.

Cashing Checks for Others. You should not use your account to cash checks for others who are not well known to you. Although we may make funds provisionally available to you and may take steps to determine whether a check will be paid, you are responsible for any loss that occurs if the check is returned to us for any reason (e.g., because it is counterfeit). Our employees cannot promise that checks drawn on or issued by other institutions, including cashier’s checks, will be paid.

ACH Provisional Credits. Credit for an automated clearing house (“ACH”) transfer is provisional until final payment is received by the payee’s financial institution. Until that happens, the party originating the transfer is not deemed to have made payment to the payee, and the payee’s bank is entitled to a refund of the provisional credit. If we give you provisional credit for an ACH transfer, but do not receive final payment, we may charge your account for the full amount without prior notice or demand.

Notice of Incoming Transfers. We are not required to give you a separate notice of our receipt of an ACH transfer. If we accept ACH credits to your account, you will receive notice of the credit on your next regular statement. Although we may send notice of a non-ACH incoming funds transfer (e.g., a wire), we assume no obligation to do so. Transfers to your account will be reflected on your regular periodic statement. You also can contact us during normal business hours or access your account(s) through online banking to determine if a transfer has been credited to your account.

FUNDS AVAILABILITY
Your Ability to Withdraw Funds. Our policy is to make funds from your cash and check deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. Please keep in mind, however, that after we make funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

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For determining the availability of your deposits, every day is a business day except Saturdays, Sundays, and federal holidays. If you make a deposit before the close of business on a business day that we are open (or before 9:00 a.m. for deposits made at a night depository that we operate), we will consider that day to be the day of your deposit. However, if you make a deposit after these hours or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

Longer Delays May Apply. In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit.

The first $325 of your deposits, however, may be available on the first business day.

If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit. If you will need the funds from a deposit right away, you should ask us when the funds will be available.

In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:
● We believe a check you deposit will not be paid.
● You deposit checks totaling more than $7,750 on any one day. ● You redeposit a check that has been returned unpaid.
● You have overdrawn your account repeatedly in the last six months. ● There is an emergency, such as failure of computer or communications equipment.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit.

Special Rules for New Accounts. If you are a new customer, the following special rules will apply during the first 30 days your account is open.

Funds from electronic direct deposits to your account will be available on the day we receive the deposit.

Funds from deposits of cash, wire transfers and the first $7,750 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you. The excess over $7,750 will be available on the seventh business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $7,750 will not be available until the second business day after the day of your deposit.

Funds from all other check deposits will be available on the seventh business day after the day of your deposit.

Holds on Other Funds. If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that is already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.

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If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately, but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

INTEREST ON DEPOSITS
Interest Rates. Interest rates paid on our accounts are determined by our management, based on market conditions and other business factors. Except for certificates of deposit (which earn the same interest rate through maturity), the interest rate and Annual Percentage Yield on deposits can change as often as daily, at our discretion, without prior notice to you. On tiered-rate accounts, the entire balance is subject to the interest rate for the balance tier of your end-of-day balance. For current rates, please visit one of our offices or contact us at 916-567-2899 or 1-800-564-7144.

The Annual Percentage Yield stated for time deposits that earn compounded interest (but which permit interest to be withdrawn prior to maturity) assumes that interest remains on deposit until maturity. A withdrawal of interest will reduce earnings.

Interest Calculations. Interest is calculated on an actual/365 day basis (366 days for leap years), except for certain public fund accounts where interest is calculated on an actual/360 day basis. Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

We use the daily-balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. The compounding frequency may differ. Please refer to your RCB Product Information and Disclosure.

Payment of Interest. Depending on the account, interest may be credited to your account at the end of your monthly or quarterly cycle, at maturity, or when your account is closed. See your Product Information and Disclosure for details. Interest is paid to the last day of each payment period, the date of withdrawal, and the maturity date. Interest will be lost on some accounts if the account is closed prior to the end of the statement period or the regular interest payment date.

Matured Time Deposits. At maturity, certain time deposit accounts will automatically renew for a new term at the rate then in effect for accounts of the same type, amount and duration. You have a sevencalendar day grace period after maturity during which a withdrawal can be made without penalty. We reserve the right to change the rate of interest for automatically renewable accounts at the time of each renewal. If we elect not to permit the renewal of an automatically renewable time deposit, we will notify you in advance. Unless specifically stated otherwise, any bonus or special promotion we are offering will not apply to automatically renewing time deposits. Time deposit accounts which do not automatically renew will stop earning interest at maturity.

Early Withdrawals from Time Deposits. Time deposit customers agree to keep funds on deposit for a fixed period of time. Unless otherwise provided, partial withdrawals and additional deposits are not permitted. If we permit an early withdrawal of principal from a time deposit, we may impose an early withdrawal penalty. Refer to your Certificate of Deposit Product Information and Disclosure for Early Withdrawal Penalties specific to your account. Tax penalties also may apply to premature distributions from IRAs.

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WITHDRAWALS
Authorized Signers. Your signature card or other account opening record identifies who is authorized to make withdrawals, write checks, transfer funds, stop payments, obtain ancillary services (e.g., electronic fund transfer services or wire transfers), and otherwise give us instructions regarding your account.

Although your card may indicate that more than one signature is required on checks and for the withdrawal or transfer of funds, that notation is principally for your own purposes. We do not assume a duty to enforce multiple signature requirements. As such, we assume no duty to confirm that two or more (or any combination) of authorized signers have approved any transaction. We may act upon the instructions of any one authorized signer, including instructions to close your account or transfer any or all of your account balance at any time. Although we may attempt on occasion to enforce the multiple signature requirement shown on your card (e.g., by refusing to permit a transaction by less than the stated number of authorized signers), we may cease doing so at any time and without prior notice to you.

We may pay any check that bears a signature or endorsement (including a facsimile signature) resembling an authorized signature on file with us. You agree that signatures by your authorized agents (e.g., persons acting under a power of attorney) are valid, even if the principal-agent relationship is not indicated on the check or instruction.

We may honor checks drawn against your account by authorized signers, even if the checks are made payable to them, to cash, or for deposit to their personal accounts. We have no duty to investigate or question withdrawals or the application of funds carried out by an authorized signer.

Requirements. We may, but are under no obligation to, refuse to pay any check that does not have the required number of signatures or that bears a signature that (in our opinion) does not satisfactorily compare with the specimen signature on file with us. All checks written on your account must be drawn in U.S. Dollars.

Check Presentment Cutoff Time. If your checks are presented for payment or acceptance on a weekend, a holiday, or after close of business, we may treat them as if we had received them on the next business day.

Order of Payments. This paragraph describes, generally, how we post transactions to accounts. Please note that this process may change from time to time, without prior notice to you. Our order of posting depends on a number of factors, including when a transaction occurs, whether it has already been approved by us or has become final, the order in which it is presented, the amount, system availability, potential risk of loss to the Bank, and the type of transaction in question, among other variables. Usually, deposits are posted before debits, and checks are posted at night in order of check number, with lower numbered checks posting before higher numbered checks. There are several exceptions to this, however.

We also generally process previously authorized transactions (e.g., checks cashed at the Bank), wires, transfers, and ACH debits before we pay your checks. We also may pay Bank fees before your checks.

We always reserve the right to post transactions that are payable to us first, and we may post any transaction earlier or later in the process than indicated. As such, if you want to avoid an overdraft or the possibility of a rejected transaction, you should take steps to ensure that your account has sufficient funds to cover each of your transactions and our fees.

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Discrepancies. If there is a discrepancy in a check you have written between the amount in numbers and the amount in words or embossed numbers, we may utilize either amount in paying the item or may dishonor the item, without liability.

Limitations. We may refuse or limit withdrawals under special circumstances (e.g., if our system is down). We may (but are not obligated to) require suitable identification and/or presentation of account ownership records for any withdrawal or account closure. At our discretion, we may require all of your signatures for the withdrawal of funds and/or the closing of an account.

Money market and savings accounts are subject to transaction limitations (see “Account Limitations”).

Time deposits may be subject to penalties for early withdrawal. We may refuse to honor any transaction if the funds on deposit are insufficient or unavailable to cover the transaction or there is a dispute or question as to the ownership of account funds.

You may not use your account or any account-related service to conduct Internet gambling transactions or any activity that would violate applicable law.

Non-Customer Check Cashing. We may impose a charge on non-customers who cash your check at one of our offices. We also may require non-customers to present us with suitable identification, including valid photo identification and a fingerprint, in connection with the cashing of your checks at one of our offices. If the person cashing a check fails to or refuses to satisfy our requirements, we may refuse to cash the check.

Advance Notice. As required by federal law, we reserve the right to require seven days advance written notice of an intended transfer or withdrawal of funds from any savings account, money market deposit account, or negotiable order of withdrawal (NOW) account.

Electronic Presentment/Posting. We may charge your account on the day that a check or other transaction is presented (or returned) to us directly or electronically for payment. We may charge your account or place a hold on funds at an earlier time if we receive notice that a check or other item deposited to your account is being returned, or if we receive notice that your check or electronic payment (e.g., at a point-of-sale) is being processed for collection. Please note: Some merchants may obtain authorizations in advance for point-of-sale transactions in an amount greater than the final transaction amount. You agree that we may place a hold on sufficient funds to cover the amount of the authorized transaction, pending its final settlement through the system, even if that amount exceeds the actual amount of the transaction. This could affect the balance available to cover other transactions.

ACCOUNT LIMITATIONS
Deposits. We may refuse to accept a deposit or an addition to an account, limit its size, or return all or part of it to you. We reserve the right to limit the amount of funds that may be maintained in an account.

Cash Withdrawals. Cash withdrawals or payments at any branch may be restricted due to the limited amount of currency on hand. If we do not have sufficient cash for a large withdrawal or payment, we may make arrangements for a later cash payment or offer to make payment with a Bank check. We assume no responsibility to provide personal protection for customers who elect to carry large sums of money off our premises.

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Money Market and Savings Accounts. With respect to these accounts, you may only make up to six withdrawals and/or transfers each month by check (for accounts with check privileges), preauthorized or automatic transfer (e.g., automatic payments to an insurance company), draft, point-of-sale debit card, telephone and/or online banking. If you exceed this limitation, we may refuse to honor the excessive transactions, remove your transfer privileges, close the account without prior notice, convert it to another type of account, and/or impose a fee for exceeding the limits (See your Schedule of Miscellaneous Fees and Service Charges for details). Note: We count checks for purposes of the transaction limitation as of the date we post them to your account (not as of the date you write them). As such, a check you write during one month may not be counted until a subsequent month.

This limit does not apply to withdrawals made in person, at an Automated Teller Machine (ATM), by mail, messenger, or telephone (via check mailed to you), automatic internal transfers initiated by the Bank’s system, or to transfers made to repay a loan with us. Nor is there any limit on the number of deposits that can be made to your account each month (e.g., in person or by preauthorized or automatic transfer). We may refuse or limit telephone and mail withdrawals, at our discretion.

FEES
Our RCB Consumer and/or Business Schedule of Miscellaneous Fees and Service Charges and product information disclosures describe the most frequently encountered fees associated with our accounts and services.

Some services are negotiated separately and may be subject to other written agreements with us. Information on fees for services not covered by the schedule is available upon request. In addition to fees, you agree to pay for all taxes, tariffs and assessments levied or imposed by any government agency in connection with your account or account-related services (excluding any income tax payable by us).

Monthly maintenance fees and service charges are earned the first day of the statement period and collected on the last day of the statement period or the date the account is closed. Service charges are not prorated for partial months. Certain fees may change without specific notice to you. Account owners must promptly pay the fees and charges associated with their accounts and services, and are jointly and severally liable for such fees. We may deduct account fees automatically from your accounts.

STATEMENTS AND LIABILITY
Statements and Notices. If we provide you with a notice or statement, electronically or otherwise, you must promptly and carefully review it to determine if any errors or problems exist. You agree to notify us immediately of any error, discrepancy or unauthorized transaction you discover on any statement, notice or check. If you fail to do so, you may become responsible for the losses resulting from such failure. If you are a business, you agree not to entrust the writing of checks and the reconcilement and review of your account statements and notices to the same person without frequent monitoring. We may deny a claim for monetary loss due to forged, altered or unauthorized checks if you fail to follow these procedures.

Statements and notices are normally sent to the last address (or e-mail address) listed with us for your account. If you ask us to hold statements and notices for you, and we agree, we may mail them to you or destroy them if they are not picked up within 30 calendar days. Notify us promptly if you do not receive your statement by the date you normally would expect to receive it.

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Statements and notices sent or made available to any of you are deemed to be received by all of you, and you agree that they are considered delivered to you as of the statement date or the date the information is otherwise made available to you, whichever is earlier. If we hold statements at your request or because you fail to provide us with a current address, they will be deemed delivered to you when they are prepared (for held statements), mailed (for returned mail) or otherwise made available to you (e.g., at a website or email address if you have agreed to electronic communications). We may hold statements if the Post Office notifies us that your mail is undeliverable. At our discretion, we may destroy mail that is returned to us or determined to be undeliverable.

You must mail or deliver all notices to us in writing at the branch where you maintain your account or at such other address(es) as we designate (e.g., on a statement or in connection with a service). Notices sent elsewhere may be delayed or may not reach the correct office.

Liability for Unauthorized Transactions Generally. If you discover an error, forgery, alteration or other unauthorized activity involving your account, you must notify us immediately by telephone, and promptly notify your branch of account in writing of the relevant facts, including a description of the transaction or error and the identity of any suspected perpetrator. You agree to maintain a current check register and to carefully and promptly review all statements and notices we send or make available to you.

If we make account statements available to you, your statements will be deemed to provide sufficient information about your checks and other transactions for you to determine whether there was an error or unauthorized transaction if the statements provide you with the check or transaction number, the amount, and the date of payment.

You are in the best position to discover and report any errors or unauthorized transactions involving your account. If you do not discover and report an error or an unauthorized signature, alteration, forgery, counterfeit check, or other unauthorized debit to your account within 30 days after the date of your statement or the date the information about the item or transaction is made available to you, whichever is earlier, you are precluded from asserting the error or unauthorized transaction against us. In addition, if you fail to notify us within this timeframe, we will not be responsible for any subsequent unauthorized transactions initiated by the same wrongdoer, unless you prove that we failed to act in good faith in completing such a transaction.

If you claim a credit or refund because of an error or unauthorized transaction, you agree to provide us with a declaration containing whatever reasonable information we require regarding your account, the transaction, and the circumstances surrounding the claimed loss. We must receive your declaration within 10 days of our request. If applicable, we may request that you make a report to the police and to provide us with a copy of the report. We will have a reasonable period of time to investigate the circumstances surrounding any claimed loss. During our investigation, we will have no obligation to provisionally credit your account, unless otherwise required by law (e.g., in connection with certain consumer electronic fund transfer services).

Our maximum liability will never exceed the amount of actual damages proven by you. Our liability will be reduced: (a) by the amount of the loss that is caused by your own negligence or lack of care; (b) to the extent that damages could not have been avoided by our exercise of ordinary care; and (c) by any loss recovery that you obtain from third parties (apportioned in accordance with this provision). We will not be liable for any loss that is caused in part by your negligence if we acted with ordinary care. Unless otherwise required by law, we will not be liable for incidental, special or consequential damages, including loss of profits and/or opportunity, or for attorney’s fees incurred by you, even if we were aware of the possibility of such damages.

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Unless otherwise expressly agreed in writing, our relationship with you will be that of debtor and creditor.

That is, we owe you the amount of your deposit. No fiduciary, quasi-fiduciary or other special relationship exists between you and us. We owe you a duty of ordinary care. Any internal policies or procedures that we may maintain in excess of reasonable commercial standards and general banking usage are solely for our own benefit and shall not impose a higher standard of care than otherwise would apply in their absence. There are no third party beneficiaries to this Agreement. If you open a business account, you agree not to use it primarily for personal, family or household purposes.

You agree to pursue all rights you may have under any insurance policy covering any loss and to provide us with information regarding coverage. Our liability will be reduced, proportionately in accordance with our responsibility for any loss, by the amount of any insurance proceeds you receive or are entitled to receive for the loss. If we reimburse you for a loss and the loss is covered by insurance, you agree to assign us your rights under the insurance policy to the extent of our reimbursement, in accordance with this provision. You waive all rights of subrogation against us with respect to any insurance policy or bond.

Fraud Prevention. (Business Accounts Only)
We offer fraud prevention products and services such as check positive pay, ACH positive pay, and ACH blocks and filters so you can effectively reduce your risk from unauthorized transactions. We also recommend industry best practices such as dual control for online wires and ACH origination. If we have offered you one or more of these products and services and you either: decline the service, do not implement the service, or fail to follow the procedures necessary for proper use of these products or services, you agree that you will be precluded from asserting any claims against us for paying any unauthorized signature, alteration, forgery, counterfeit check, or other unauthorized debit to your account that such product, service, or precaution was designed to detect or deter, and we will not be required to recredit your account or otherwise have any liability for paying such items.

Wires and Certain Other Payment Orders. The following provisions apply to payment orders governed by Article 4A (Division 11 in California) of the Commercial Code (e.g., wire transfers). They do not apply to the transactions described in the “Consumer Electronic Fund Transfers” section of this Agreement.

At our discretion, we may process your payment order to transfer funds to another account with us or to an account maintained with another financial institution. We reserve the right to reject any payment order without cause or prior notice, and may notify you of the rejection orally, electronically or in writing.

Our processing hours for payment orders vary based on location, transaction type and other factors.

Information about our processing hours is available upon request. We may process any payment order we receive after our processing cutoff time on our next funds transfer business day.

You must accurately describe the beneficiary of your payment order and the beneficiary’s financial institution. If you describe any beneficiary or institution inconsistently by name and account or identifying number, we and other institutions may process the order solely on the basis of the number, even if the order identifies a person or entity different from the named beneficiary or institution. We may also process incoming fund transfers based on the account number, rather than on any inconsistent name reflected in the payment order. Unless otherwise required by Regulation E, if you give us a payment order that is erroneous in any way, you agree to pay the amount of the order whether or not the error could have been detected by any security procedure we employ.

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You do not have a right to cancel or amend any payment order after we receive it. Although we may attempt to act on any amendment or cancellation request you make (e.g., if it is received in a time and manner which permits us to do so), we assume no responsibility for failing or refusing to do so, even if we could have effected the change or cancellation. You agree to indemnify, defend and hold us harmless from any loss, damage, claim, action, and liability that results, and any charges and costs we incur, in connection with any request by you to amend or cancel a payment order.

Foreign transfers may be subject to delays, charges imposed by other financial institutions, and changes in foreign currency exchange rates. If you direct a payment order to a foreign country, we may execute the order in the currency of the country of the payee’s bank at either our buying rate of exchange for U.S. dollar transfers or the exchange rate of the payee bank. If the transfer is made in U.S. Dollars, we cannot guarantee that the beneficiary will receive the funds in U.S. currency. The beneficiary bank may convert the funds into the local currency and may also charge incidental fees. If for any reason the payment order is returned to us, you agree to accept the refund in U.S. dollars in the amount of the foreign money credit, based on the current buying rate on the day of the refund, less any charges and expenses incurred by us.

We may process any payment order we believe is transmitted or authorized by you if we act in compliance with a security procedure agreed upon by you and us. Such payment orders will be deemed effective as if made by you, and you will be obligated to pay us in the amount of such orders, even though they are not transmitted or authorized by you.

Each time you request a payment order using our services, you warrant that the security procedures to which we have agreed with you for the particular service are commercially reasonable for the transaction, based on the circumstances involved (e.g., the size, type, and frequency of your transfers, as well as your internal controls). In addition, whether or not required by such security procedures, you agree that we may seek to confirm the authenticity and content of payment orders (among other ways) by contacting any of you in any way we deem reasonable. If we cannot reach you, or if the payment order is not confirmed or approved in the manner we require, we may either make or refuse to execute the payment order in our sole discretion. In such an event, we will not be liable to you for any actual loss of any kind or for any consequential, punitive or exemplary damages in any amount, provided that we have acted in good faith.

You agree to review all statements and notices promptly to confirm the accuracy and authorization of each payment order. You must notify us immediately if there is any discrepancy between your payment order and any confirmation or statement of account, or if you discover any other problem with respect to a transfer. You must send a written notice to us of the discrepancy or other problem, including a statement of the relevant facts, within a reasonable time (not to exceed 30 days from your statement date, the date you first discover the problem, or the date you receive a notice reflecting the problem, whichever occurs first).

Our liability for any act or failure to act shall not exceed the direct resulting loss, if any, which you incur and payment of interest, and we will not be liable for any consequential, indirect or special damage that you incur in connection with payment orders, even if we are aware of the possibility for such damages.

Business ATM and/or MasterCard® Debit Card Transactions. Keep your card and personal identification number (“PIN”) secure. If your liability cannot be limited as described in this Agreement, then you will be liable for all transactions made using a card, PIN or card number, or otherwise in connection with the services contemplated under this Agreement. You shall be responsible regardless of whether such transactions were effectuated: (a) by or on behalf of any authorized individual, or for any ITEM 12 Agenda Packet Page 99
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authorized purpose, or by an unauthorized person or in conflict with any usage limitation established by you; (b) using a valid PIN; or (c) in accordance with any rules or regulations of ours, the applicable networks or any merchant. Without limiting the foregoing, you are responsible for any and all transactions of any type processed through an authorized system if we receive transaction data identifying a card, PIN or other access device as one issued to you. For purposes of this Agreement, an authorized system is any system that will process transaction data for valid cards (including MasterCard and any other POS and ATM system shown as a logo on the card). Please note: this means that business card transactions are not considered unauthorized if they are made by a business co-owner or any other person with an interest in or authority to transact business on your account or using a card or card number you have provided to them, even if the person exceeds any authority given by you, and regardless of whether or not such persons are authorized signers on your account.

You are liable for all unauthorized transactions made with your business card or the PIN associated with your card that occur prior to the time you notify us to cancel your card, that an unauthorized transaction has taken place, or that your card or PIN has been lost or stolen. There is one exception to this liability:

Under the MasterCard Rules, you will not be liable for unauthorized transactions conducted with a MasterCard debit card, provided (i) you have exercised reasonable care in safeguarding your debit card from risk of loss or theft; and (ii) upon becoming aware of such loss or theft, you promptly reported the loss or theft to us. If the conditions set forth above have not been met, you will be liable for unauthorized transactions to the extent otherwise provided in this Agreement. The zero liability limit described above (“MasterCard Zero Liability Policy”) only applies to a United States issued MasterCard branded debit card issued to: (i) a natural person, or (ii) a business or other entity only if the card is issued under a “small business” program described on MasterCard’s website. The MasterCard Zero Liability Policy does not apply until your identity is registered by or on behalf of the card issuer. Under MasterCard’s rules (as may be amended from time to time), the MasterCard Zero Liability Policy may not apply for other reasons.

When you use your business card to pay for goods or services, certain merchants may ask us to authorize the transaction in advance and may estimate its final value. When we authorize the transaction, we commit to make the requested funds available when the transaction finally settles and may place a temporary hold on your account for the amount indicated by the merchant. Until the transaction finally settles or we determine that it is unlikely to be processed, the funds subject to the hold will not be available to you for other purposes. We will only charge your account for the final amount of the transaction, however, and we will release any excess amount when the transaction settles.

Cash refunds will not be made to you for purchases made with your card. If a merchant gives you a credit for merchandise returns or adjustments, it may do so by processing a credit adjustment, which we will apply as a credit to the account from which the original funds were debited.

If you conduct a transaction in a currency other than U.S. dollars, the merchant, network or card association that processes the transaction may convert any related debit or credit into U.S. dollars in accordance with its then current policies. The conversion rate may be different from the rate in effect on the date of your transaction and the date it is posted to your account. Part of MasterCard’s currency conversion procedure includes use of either a government-mandated exchange rate or a wholesale exchange rate, selected by MasterCard. The government-mandated exchange rate or wholesale exchange rate that MasterCard uses for a particular transaction is the rate MasterCard selects for the applicable currency on the date that the transaction is processed (the Central Site Business Date), which may differ from the rate selected on the date the transaction occurred or on the date the transaction is posted to your account.

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CONSUMER ELECTRONIC FUND TRANSFERS
The following terms apply to electronic fund transfers governed by the Electronic Fund Transfer Act (e.g., consumer ATM, point-of-sale and ACH transfers). Any authorized signer on an account may apply for electronic fund transfer services on behalf of all authorized signers. Once an electronic fund transfer service is established, any authorized signer on your account may act alone in conducting electronic fund transactions, regardless of the number of required signers indicated on the account’s signature card.

Electronic Check Conversion. You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to pay for purchases or pay bills.

Automated Teller Machine (“ATM”) Card/Debit Card. You can perform the following transactions with your ATM and/or MasterCard® Debit Card (“Card”), depending on the accounts and services associated with your Card and particular ATM or point-of-sale (“POS”) terminal and/or network capabilities:
● Withdraw cash from your checking or savings account;
● Transfer funds between your checking and savings accounts; ● Pay for purchases at places that honor the Card; and
● Obtain account balance information.*
* Balance information may not reflect recent transactions, and may include funds that are not available for immediate withdrawal.

All deposits and payments are subject to later verification by us. If you have more than one account with us, some of these services may not be available for each account. For example, POS payments cannot be made to merchants from savings accounts or money market accounts.

Your Card cannot be used to transfer money into or out of your account without a personal identification number (“PIN”) at ATMs and most POS terminals. You may be asked to sign a sales slip or provide identification, rather than enter your PIN, for certain Debit Card transactions. At some merchants, such as gas stations, you may not be required to sign your name or enter your PIN for a Debit Card purchase; however, you may be required to enter your ZIP code or another identifier. If you decide you do not want to use your Card, destroy it at once by cutting it in half and notify us in writing.

Transaction Holds. When you use your Card to pay for goods or services, certain merchants may ask us to authorize the transaction in advance and may estimate its final value. When we authorize the transaction, we commit to make the requested funds available when the transaction finally settles and may place a temporary hold on your account for the amount indicated by the merchant. Until the transaction finally settles or we determine that it is unlikely to be processed, the funds subject to the hold will not be available to you for other purposes. We will only charge your account for the final amount of the transaction, however, and we will release any excess amount when the transaction settles.

Card and PIN Security. You agree not to disclose or otherwise make your Card or PIN available to others without our prior written consent. For security reasons, you agree not to write your PIN on your Card or keep it in the same location as your Card. You agree to return your Cards to us upon our request.

Refunds on Purchases. Cash refunds will not be made to you for purchases made with your Debit Card.

If a merchant gives you a credit for merchandise returns or adjustments, it may do so by processing a ITEM 12 Agenda Packet Page 101
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credit adjustment, which we will apply as a credit to the account from which the original funds were debited.

Foreign Transactions. If you conduct a transaction in a currency other than U.S. dollars, the merchant, network or card association that processes the transaction may convert any related debit or credit into U.S. dollars in accordance with its then current policies. The conversion rate may be different from the rate in effect on the date of your transaction and the date it is posted to your account. Part of MasterCard’s currency conversion procedure includes use of either a government-mandated exchange rate or a wholesale exchange rate, selected by MasterCard. The government-mandated exchange rate or wholesale exchange rate that MasterCard uses for a particular transaction is the rate MasterCard selects for the applicable currency on the date that the transaction is processed (the Central Site Business Date), which may differ from the rate selected on the date the transaction occurred or on the date the transaction is posted to your account.

We may impose a charge equal to 1% of the transaction amount (including credits and reversals) for each transaction that you conduct outside the United States or in a foreign currency or for purchases made within the United States but where the merchant is located internationally. For ATM transactions conducted outside the United States, this charge is in addition to the fees that the Bank charges (and any fees the ATM owner may charge) in connection with such transactions.

Telephone Banking Service. You can use this service by calling 916-567-2899 or 1-800-564-7144 to transfer funds between your designated accounts with us, to obtain account information, and to pay certain loans with us from your deposit account. Not all account or loan types can be tied to this service.

Personal Identification Number. We will provide you with a personal identification number (“PIN”) in order to access this service and provide you with instructions upon request. You agree not to disclose your PIN to others and to safeguard its confidentiality.

Transfers. You can transfer funds between your Bank accounts that have been tied to this service.

Transfers cannot be made from time deposits.

Account Information. You can obtain information regarding your Bank accounts that are tied to this service. Please note that balance information may not reflect recent transactions, and may include funds that are not available for immediate withdrawal. The balance information feature is not subject to the error resolution or liability sections set forth below.

Cutoff Time. We will act upon instructions received pursuant to this service prior to 10:00 p.m. on any business day. If we receive transfer or other instructions after this cutoff time or on a non-business day, they may not be processed until the next business day.

Preauthorized/Automatic Transfers. Pre-authorized electronic fund transfers may be made to your account from a third party (e.g., Social Security, a pension fund or your employer) or from your account to a third party (e.g., recurring mortgage or insurance payments through the Automated Clearing House).

Pre-authorized transfers generally do not include: (a) transactions initiated by check, draft or similar paper instrument, (b) transfers between business or other non-personal accounts, (c) individual transfers we initiate under an agreement with you, but without your specific request (e.g., automatic savings and automatic loan payments to us from your account), or (d) transfers initiated by telephone. Please note: If federal recurring or other electronic payments are made into your account, the payments may be affected by a change in account status or transfer (e.g., to another office). If you plan to transfer your account or ITEM 12 Agenda Packet Page 102
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change its status, please speak with us in advance about the impact the change may have on your electronic fund transfer services.

Limitations. Certain transaction limitations are imposed on Money Market and Savings Accounts as described elsewhere in this Agreement. You may use your Card to withdraw a total of $500 per day from ATMs. In addition, you may use your Debit Card to purchase goods or services up to (a) $1,500 per day in PIN-based transactions, and (b) $1,500 per day in transactions that are not PIN-based (e.g., purchases made based on your signature or over the telephone). In addition, there is an overall limit of $2,000 per day for all Card transactions. For security reasons, there may be times when we further limit these amounts or disable your Card. Additional transaction limitations may also apply at particular ATM or POS terminals and/or be imposed by particular ATM or POS networks. You may not use your Card or account for any unlawful purpose or to conduct Internet gambling transactions.

Record of Your Transactions
Receipts. You can get a receipt at the time you make any transfer to or from your account using one of our ATMs or a POS terminal; however, receipts for transactions of $15 or less may not always be available. All ATM transactions are subject to later verification by us.

Preauthorized Credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at 916-567-2899 or 1-800-564-7144 to find out whether or not the deposit has been made.

Account Statements. Except for certificates of deposit, you will get a monthly account statement unless there are no transfers in a particular month. In any case, you will get a statement at least quarterly.

Varying Preauthorized Transfers. If you have arranged in advance to make regular payments out of your account and they may vary in amount, the person you are going to pay will tell you 10 days before each payment when it will be made and how much it will be. You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment or when the amount would fall outside certain limits that you set.

Our Liability for Failing to Make Transfers. If we do not complete an electronic fund transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. There are some exceptions, however. We will not be liable, for instance, if:
● Through no fault of ours, you do not have enough available funds in your account to make the transfer;
● The transfer would exceed any permitted overdraft line you have with us; ● Circumstances beyond our control (such as fire, flood, water damage, power failure, strike, labor dispute, computer breakdown, telephone line disruption or a natural disaster) or a rolling blackout prevent or delay the transfer despite reasonable precautions taken by us; ● The system, ATM or POS terminal was not working properly and you knew about the problem when you started the transaction;
● The funds in your account are subject to legal process; an uncollected funds hold or are otherwise not available for withdrawal;
● The information supplied by you or a third party is incorrect, incomplete, ambiguous or untimely; ● We have reason to believe the transaction may not be authorized by you; or ITEM 12 Agenda Packet Page 103
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● The transaction cannot be completed because your Card is damaged.

There may be other exceptions stated in this Agreement.

Your Liability for Unauthorized Electronic Fund Transfers. Tell us AT ONCE if you believe your Card or PIN has been lost or stolen, or if you believe that an electronic fund transfer has been made without your permission using information from your check. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell us within two business days after you learn of the loss or theft of your Card or PIN, you can lose no more than $50 if someone used your Card or PIN without your permission.

If you do NOT tell us within two business days after you learn of the loss or theft of your Card or PIN, and we can prove we could have stopped someone from using your Card or PIN without your permission if you had told us, you could lose as much as $500.

Note: Under the MasterCard Rules, you will not be liable for the $50 or $500 amounts described above for transactions conducted with a MasterCard debit Card, provided (i) you have exercised reasonable care in safeguarding your debit Card from risk of loss or theft; and (ii) upon becoming aware of such loss or theft, you promptly reported the loss or theft to us.

If your statement shows transfers that you did not make, including those made by Card, PIN or other means, tell us at once. If you do not tell us within 60 days after the statement was mailed or otherwise made available to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time.

If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

How to Stop Preauthorized Transfers From Your Account. If you have told us in advance to make regular payments out of your account, you can stop any of these payments by writing to us at River City Bank, P.O. Box 15247, Sacramento, CA 95851, or by calling us at 916-567-2899 or 1-800-564-7144.

We must receive your request at least three business days before the payment is scheduled to be made. (Note: If you fail to give us your request at least three business days prior to a transfer, we may attempt, at our sole discretion, to stop the payment. We assume no responsibility for our failure or refusal to do so, however, even if we accept the request for processing.) If you call, we may require you to put your request in writing and to provide us with a copy of your notice to the payee, revoking the payee’s authority to originate debits to your account, within 14 days after you call. If we do not receive the written confirmation within 14 days, we may honor subsequent debits to your account. For individual payments, your request should specify the exact amount (dollars and cents) of the transfer you want to stop, the date of the transfer, and the identity of the payee. Unless you tell us that all future transfers to a specific recipient are to be stopped, we may treat your stop payment order as a request concerning the one transfer only. If you order us to stop one of these payments at least three business days before the transfer is scheduled and we do not do so, we will be liable for your losses or damages.

Lost or Stolen Card/Pin or Unauthorized Transaction. If you believe your Card or PIN has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call us at the number or write us at the address described in the preceding section. You ITEM 12 Agenda Packet Page 104
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should also call the number or write to the address if you believe a transfer has been made using the information from your check without your permission.

In Case of Errors or Questions About Your Electronic Transfers. Call us at the number or write us at the address described above as soon as you can if you think your statement or receipt is wrong or if you need more information about an electronic transaction. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. (1) Tell us your name and account number.
(2) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information. (3) Tell us the dollar amount of the suspected error.

In addition, it would be helpful if you provided us with any supporting documentation related to the error.

If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will determine whether an error occurred within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error, so that you will have the use of the money during the time that it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account.

For errors involving new accounts, point-of-sale, or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error.

We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

Fees. See our current Schedule of Miscellaneous Fees and Service Charges related to electronic fund transfer services. If you conduct a transaction at an ATM that is not operated by us, the operator of the ATM or any network utilized to effect the transaction may impose a fee.

Business Days. Our business days are Monday through Friday, excluding federal holidays.

Release of Account Information. We may release information regarding your account and the transactions you perform.

Change in Terms/Termination of Service. We may add to, delete or amend the terms of or terminate your use of our electronic fund transfer services at any time, with or without cause and without affecting your outstanding obligations under this Agreement, including but not limited to by adding new terms governing your use of such services. We may terminate or suspend your electronic fund transfer service ITEM 12 Agenda Packet Page 105
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immediately if: any of you breach this or any other agreement with us; we have reason to believe that there has been or may be an unauthorized use of your account, Card or PIN; there are conflicting claims to the funds in your account; or any of you requests that we do so. If you ask us to terminate your account or the use of any Card, you will remain liable for subsequent transactions performed by you or any authorized user.

DISPUTE RESOLUTION
This Dispute Resolution section describes your and our rights in relation to any disputes between us in connection with this Agreement and our services that we cannot resolve ourselves through mutual agreement (referred to in this section as “Claim(s)” with the person asserting the Claim(s) being “Claimant(s)”).

Jury Trial Waiver and Class Action Waiver. YOU AGREE AND UNDERSTAND THAT NO

CLAIM SHALL BE RESOLVED BEFORE A JURY AND THAT YOU (AND WE) ARE EACH

GIVING UP CONSTITUTIONAL AND STATUTORY RIGHTS TO GO TO COURT AND HAVE A TRIAL IN FRONT OF A JUDGE OR A JURY. YOU AGREE AND UNDERSTAND THAT

THIS SECTION PREVENTS YOU AND US FROM PARTICIPATING IN ANY CLASS OR

REPRESENTATIVE ACTION OR JOINING OR CONSOLIDATING THE CLAIMS OF OTHER

PERSONS IN RELATION TO YOUR ACCOUNT OR OTHERWISE IN CONNECTION WITH THIS AGREEMENT.

Dispute Resolution Options. You agree that all Claims or other disputes relating to your account or otherwise in connection with this Agreement shall, if either you or we elect, be subject to mandatory arbitration, except as specifically provided below. If neither party exercises its right to compel resolution of a dispute by arbitration or judicial reference as set forth in this Dispute Resolution section, you agree that the dispute shall be resolved in court by a judge without a jury.

Customer Mediation Program. Before asserting a Claim in any proceeding, you agree that you shall engage in a good faith attempt to resolve the dispute. In order to avoid the expense and uncertainty of arbitration and litigation, we agree that we will attempt to resolve such potential Claims by way of a mediation session. Please address requests for mediation of potential claims to River City Bank Mediation Program P.O. Box 15247, Sacramento, CA 95851. If we cannot resolve the potential Claim within sixty (60) days of receiving the request or by a later date if we both agree, you may proceed with asserting your Claim in arbitration or otherwise as outlined below.

Arbitration. All Claims relating to your account or otherwise in connection with this Agreement that cannot be resolved informally or in small claims court shall be resolved by binding arbitration on an individual basis under the terms of this Dispute Resolution section. This Dispute Resolution section applies to both you and us, including your and our respective assigns, representatives and/or agents, as to all matters which arise out of or relate to this Agreement or any resulting transaction or relationship.

The Federal Arbitration Act governs the interpretation and enforcement of this Dispute Resolution section. We agree that any issues or disputes regarding arbitrability of the Claims shall be and hereby are delegated to the arbitrator.

Arbitration shall be initiated through the American Arbitration Association (“AAA”), an established alternative dispute resolution provider (“ADR Provider”). If the selected ADR Provider is not available to arbitrate, we shall select an alternative ADR Provider. The rules of the ADR Provider shall govern all ITEM 12 Agenda Packet Page 106
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aspects of this arbitration, except to the extent such rules are in conflict with this Agreement or with the Federal Arbitration Act or to the extent that application of such rules would result in the unenforceability of this Dispute Resolution section. The applicable AAA rules governing the arbitration are available online at https://www.adr.org/ or by calling AAA at 1-800-778-7879.

Arbitration shall be conducted before a sole neutral arbitrator selected by our mutual agreement as parties to the Claim. If the parties cannot agree on the appointment of a single arbitrator within thirty (30) days after either party delivers a request for arbitration, a neutral arbitrator shall be selected as provided in the AAA rules. The arbitration shall be conducted in an expedited manner, exclusively in the English language, at a site specified by us in Sacramento, California, USA. The arbitrator shall issue a written award and statement of decision describing the essential findings and conclusions on which the award is based. The arbitrator has the same authority to award relief on an individual basis that a judge in a court of law would have. The award of the arbitrator is final and binding upon you and us. The award of the arbitrator shall be the exclusive remedy of the parties for all claims, counterclaims, issues or accountings presented or plead to the arbitrator. The award of the arbitrators shall require payment of the costs, fees and expenses incurred by the prevailing party in any such arbitration by the non-prevailing party.

Judgment upon the award may be entered in any court or governmental body having jurisdiction thereof.

Any additional costs, fees or expenses incurred in enforcing the award may be charged against the party that resists its enforcement.

Your Right to Opt Out of Arbitration. You may opt out of the portion of this Dispute Resolution section requiring you to submit to binding arbitration by sending a signed written notice of your election to do so, within thirty (30) days of the date of your entering into this Agreement. Such notice shall be sent to River City Bank P.O. Box 15247, Sacramento, CA 95851. Opting out of the arbitration provisions of this Agreement will not affect any other provision of this Agreement.

Waiver of Class Actions. ALL CLAIMS AND DISPUTES WITHIN THE SCOPE OF THIS DISPUTE RESOLUTION SECTION MUST BE RESOLVED ON AN INDIVIDUAL BASIS. WE AGREE AND

ACKNOWLEDGE THAT NEITHER OF US MAY ASSERT CLAIMS ON BEHALF OF ANOTHER

PARTY AS A REPRESENTATIVE AND NEITHER OF US MAY JOIN ANY CLASS OF CLAIMANTS ASSERTING CLAIMS COVERED BY THIS DISPUTE PROVISION. WE AGREE

AND ACKNOWLEDGE THAT CLAIMS OF MORE THAN ONE CLAIMANT CANNOT BE

ARBITRATED OR LITIGATED JOINTLY OR CONSOLIDATED WITH THOSE OF ANY OTHER CLAIMANT.

Severability. If any part or parts of this Dispute Resolution section other than the Waiver of Class Actions section are found under the law to be invalid or unenforceable, then such specific part or parts shall be of no force and effect and shall be severed and the remainder of the Dispute Resolution section shall continue in full force and effect. If the Waiver of Class Actions section is found to be unenforceable, then as to the specific dispute in which that ruling of unenforceability was made, this entire Dispute Resolution section shall be unenforceable.

Survival. This Dispute Resolution section shall survive the termination of this Agreement.

Judicial Reference. To the extent any court refuses to enforce the arbitration provisions of this Dispute Resolution section or if they are otherwise inapplicable, then at the election of either of us, the Claim will be resolved by judicial reference in accordance with California Code of Civil Procedure, Sections 638, et seq. instead of by litigation or arbitration. The reference proceeding will take place solely on an individual basis and without any joinder of multiple parties’ claims or as a form of class or other ITEM 12 Agenda Packet Page 107
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representative action. The referee shall be a retired judge, agreed upon by the parties or appointed by the court. The costs of the reference procedure, including the fee for the court reporter, shall be paid equally by all parties as the costs are incurred. The referee shall hear all pre-trial and post-trial matters, including requests for equitable relief, prepare an award with written findings of fact and conclusions of law, and apportion costs as appropriate. Judgment upon the award shall be entered in the court in which such proceeding was commenced and all parties shall have full rights of appeal.

Rights to Other Remedies. This Dispute Resolution section will not be deemed to limit or constrain either party’s right to exercise self-help remedies such as set off, to obtain provisional or ancillary remedies such as injunctive relief or the appointment of a receiver, to interplead funds in the event of a dispute, to exercise any right or remedy as a secured party against any collateral pursuant to the terms of a security agreement, or to comply with legal process involving accounts or other property.

ADDITIONAL TERMS AND CONDITIONS
Account Verification. We may use a third party service to verify and obtain information regarding your previous banking relationships. We may also report the status, history and/or closure of your account to such third party services.

Adjustments. We may make adjustments to your account whenever a correction or change is required.

Adjustments might occur, for example, if deposits are recorded or keyed in the wrong amount or items you deposit are returned unpaid. We may elect, at our discretion, not to make an adjustment to your account to correct an error which you or a third party (e.g., another financial institution) cause if the adjustment is less than $5.00 or our cost to make the adjustment is greater than the amount in question.

Amendments/Changes in Agreement. We may add to, delete, or change the terms of this Agreement, or add new terms to it, at any time by mailing, e-mailing or delivering a notice, a statement message or an amended Agreement to any of you at the last address (location or e-mail) on file for you, your account, or the service in question or by providing the notice to you through our online banking service. Unless otherwise required by law, we may amend the Agreement without prior notice (e.g., by posting the information in our offices, on our/your web site, or otherwise making it available to you).

We may substitute similar services or discontinue currently offered services for certain accounts by giving you prior notice. We do not have to notify you, however, of any changes that are beneficial to you (e.g., a reduction or waiver of any fees or the addition of services) or if the change is required for security reasons.

Changes in Account Ownership, Address and Authorized Signers. You agree to notify us immediately in writing of any change in your name, address, email address, business capacity (e.g., sole proprietor to corporation), or the authorized signers on your account. We may require a new signature card or other documentation before giving effect to any change in ownership or authorized signers. We may rely on our account records to determine the ownership of your account. If you provide us with information relating to the beneficial ownership of a legal entity customer, you certify that such information is up-to-date and accurate as of the time your account is opened and that you will notify us in the event any of that information needs updating thereafter.

If the authorized persons on your account change, we may continue to honor items and instructions given earlier by any previously authorized person(s) until we receive specific notice from you in writing not to do so (Note: A new or updated signature card, by itself, does not constitute notice to terminate any preITEM 12 Agenda Packet Page 108 www.RiverCityBank.com Page 21
existing payment or transfer plan). In some instances we may require you to close your account or provide us with stop payment orders in order to prevent transactions from occurring. There may be a delay in implementing a change in the authorized persons on our records, and you agree that we will be given a reasonable opportunity to make the changes necessary.

ATM Safety. You agree to exercise discretion when using ATMs. If there are any suspicious circumstances, do not use the ATM. If you notice anything suspicious while transacting business at the ATM, cancel the transaction, pocket your card and leave. Be careful when using the ATM and be aware of the surroundings, especially at night or in isolated areas. Park near the ATM in a well-lighted area. At night, have someone accompany you when possible. Do not approach a dark ATM. Do not accept assistance from anyone while using the ATM. Don’t display your cash; pocket it and count it later in the safety of your office or home. Be sure to save your transaction slips. Check them against your statements regularly. If deposits are supported at a particular ATM and you plan to make them, prepare these at home to minimize your time at the ATM. Make sure you safeguard your PIN — do not write it on your card or carry it in your wallet or purse. Always secure your card just like you would your cash, checks and credit cards. Report all crimes to the ATM operator and local law enforcement officials immediately.

We do not guarantee your safety while using any ATM.

Checks Bearing Notations. Although we are not obligated to, we may pay or accept checks and other items bearing restrictions or notations (e.g., “Void after 6 months,” “Two Signatures Required,” “Void over $50.00,” “Payment in Full,” and the like), whether on the front or back, in any form or format. If you cash or deposit an item or write a check with such a notation, you agree that it applies only between you and the payee or maker. The notation will have no effect on us, and you agree to accept responsibility for payment of the item.

Check Charges, Format, and Security. Check prices vary according to the types of checks you select.

You can obtain information on the current price of checks by contacting us at the number shown at the end of this Agreement. Check charges may vary from time to time without specific notice to you. You are responsible for verifying the accuracy of all information shown on your checks and deposit tickets. If you find an error, please notify us immediately. We are not liable for losses resulting from incorrectly printed checks or deposit tickets.

If you arrange for the printing of your own checks, the form, encoding and format of the checks must follow our check specification requirements and be approved by us in advance. The name(s) printed on your checks must agree with the name(s) on our account records. If you do not purchase your checks through us, we may charge a fee for each check that is rejected during processing due to poor print quality, or if it fails to meet our specifications. You agree not to issue checks with features or marks that obscure, alter or impair information on the front or back of a check or that otherwise prevents us or another bank from capturing such information during automated check processing.

We make checks available that include fraud prevention features. If you choose not to use them or other checks that include fraud prevention features, you agree to assume a heightened degree of care for safeguarding your checks, and for reviewing all returned checks and statements as soon as you receive them.

You agree to safeguard your blank and canceled checks, and to take reasonable steps to prevent their unauthorized use. If you are a business, you should store them under dual control in a secure, locked location that is accessible only to authorized personnel. If your checks are lost or stolen, you agree to notify us immediately. For security reasons, we reserve the right to close your account and transfer the ITEM 12 Agenda Packet Page 109
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balance to a new account. If we do, all checks written but not yet paid may be returned to payees as “Account Closed” or “Refer to Maker.” You will be responsible for issuing any replacement checks.

Check Endorsement. Federal regulations provide that the top 1-1/2 inches on the back of a check (when read vertically from the trailing edge) is designated for your endorsement as payee. If you endorse a check in the area outside of the endorsement area, mark or otherwise obscure the other area, or make an endorsement which is illegible or incomplete, you agree to hold us harmless from any loss, delay, liability, claim, or damage which occurs as a result. If you deposit checks using our remote or mobile deposit services, you will include the notation “For Mobile Deposit at River City Bank” as part of each endorsement.

Check Images. If we do not return your paid checks to you, images of the checks may be sent or made available to you each month with your account statement. Your original checks may be destroyed shortly after we process the checks, but we will maintain a record of the checks for several years. You can obtain copies of your checks by sending us a written request with the following information: your name, account number, check number, the amount of the check, and (if known) the date the check was paid. There is no charge for the first two items per statement that we copy for you. After that, we will charge your account a fee for each copy (including the front and back of the check). We will not be responsible for any indirect, special or consequential damages under any circumstances for our inability to provide copies of checks. Our liability, if any, will not exceed the face amount of the check in question, and you must provide us with reasonable proof of any loss.

Check Processing Cutoff Times. We have a daily cutoff time by which we must receive any knowledge, notice, stop payment order, or postdated check notice affecting our right or duty to pay a check that we are processing. That cutoff time is one hour after the opening of the business day following the business day on which we receive the check. We also have a daily cutoff time prior to which our exercise of setoff rights affects our right or duty to pay a check that we are processing. That cutoff time is the close of the business day following the business day we receive a check, or such later time by which we must return the check to the extent permitted by applicable law. These cutoff times determine our obligation under state law to pay or return certain checks that have been received (but not finally paid) by us on the previous business day.

Check Signature Verification. We may process certain checks mechanically, based on the information encoded on the items. This means that we may not visually examine each of your checks to determine if they are properly completed and endorsed, and we assume no duty to identify and/or return duplicate checks, checks with duplicate serial numbers, misencoded items, or checks lacking an encoded serial number. Although we may examine checks from time to time, you understand that reasonable commercial standards do not require us to do so.

Compliance. You agree not to violate the laws of the United States, including without limitation, the economic sanctions administered by the U.S. Treasury’s Office of Foreign Assets Control. You may not use your account or any account-related service to process Internet gambling transactions or conduct any activity that would violate applicable law. If we are uncertain regarding the legality of any transaction, we may refuse the transaction or freeze the amount in question while we investigate the matter.

Conflicting Demands/Disputes. If there is any uncertainty regarding the ownership of an account or its funds, there are conflicting demands over its ownership or control, we are unable to determine any person’s authority to give us instructions, we are requested by Adult Protective Services or any similar state or local agency to freeze the account or reject a transaction due to the suspected financial abuse of an ITEM 12 Agenda Packet Page 110
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elder or dependent adult, or we believe a transaction may be fraudulent or may violate any law, we may, at our sole discretion: (1) freeze the account and refuse transactions until we receive written proof (in form and substance satisfactory to us) of each person’s right and authority over the account and its funds;(2) refuse transactions and return checks, marked “Refer to Maker” (or similar language); (3) require the signatures of all authorized signers for the withdrawal of funds, the closing of an account, or any change in the account regardless of the number of authorized signers on the account; (4) request instructions from a court of competent jurisdiction at your expense regarding the account or transaction; and/or (5) continue to honor checks and other instructions given to us by persons who appear as authorized signers according to our records. The existence of the rights set forth above shall not impose an obligation on us to assert such rights or to deny a transaction.

Consent For Us to Contact You. You agree that we or our agents may contact you at any email address or telephone number you provide to us, including any cell phone number, whether at account opening or thereafter. You authorize us to send text messages and make prerecorded or autodialed calls to any number(s) you provide. Your service provider may impose a charge for those calls/messages.

Consent to Gather Information. You authorize us to obtain information from time to time regarding your credit history from credit reporting agencies and other third parties. You authorize us to obtain address information from the California Department of Motor Vehicles or any other government agency.

As such, you waive your rights under California Vehicle Code §1808.21 (or equivalent).

Cutoff Times. Cutoff times vary by transaction and service type. Instructions received by us after the applicable cutoff time on a business day or on a non-business day may be treated and acted upon as if received on the next business day.

Death or Adjudication of Incompetence. You agree to notify us immediately of the death or courtdeclared incompetence of any owner, authorized signer or designated beneficiary on your account. We may disregard any notice of incompetence unless the person in question has been declared incompetent by a court of appropriate jurisdiction and we receive written notice and instructions from the court regarding the account. We also may freeze, offset, refuse and/or reverse deposits and transactions (e.g., governmental or retirement benefit payments payable to the deceased) if an owner dies or is adjudicated incompetent. If we are obligated to return funds removed from the account following the death or incompetence of any owner, the other owners agree to reimburse us for the amount.

If your account ownership records indicate that the account is held in “joint tenancy,” upon the death of any owner, the deceased owner’s share passes automatically to the surviving owner(s) unless there is clear and convincing evidence of a different intent on the signature card. If the account is held as “tenants in common,” a deceased owner’s share passes to the estate or other legal representative of the deceased tenant. If the account is held by a husband and wife or by registered domestic partners as “community property,” ownership of the account will be determined by community property law and may be affected by a will. “Pay On Death” and Totten Trust (“In trust for”) accounts pass automatically (and in equal shares unless otherwise indicated in our records) to the named beneficiaries who survive the last surviving owner.

If we have any question as to the ownership of funds or the amount of funds that belong to any person upon the death of an owner, we may freeze all or part of the account, pending receipt of proof (satisfactory to us) of each person’s right to the funds.

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Deposit Insurance. Your accounts with us are insured to the regulatory limits by the Federal Deposit Insurance Corporation (FDIC). For further information regarding insurance of accounts, you may write to the FDIC at 550 17th Street, N.W., Washington, D.C. 20429, telephone the FDIC’s toll-free consumer hotline at 877-ASKFDIC (877-275-3342) TDD: 800-925-4618, or visit its website at www.fdic.gov.

For account types that may be eligible for pass-through deposit insurance, certain conditions must be satisfied for pass-through deposit insurance coverage to apply.

Facsimile Signatures. You agree not to use facsimile signatures on checks unless we receive representative samples and approve their use. We may refuse to accept or may pay items bearing facsimile signatures. You agree to assume full responsibility for any and all payments made by us in reliance upon signatures that resemble the actual or facsimile signature(s) (without regard to variation in color or size) that any of you provide to us in connection with your accounts or services. You authorize us to pay any check that appears to bear your authorized facsimile signature, without further inquiry. You agree to indemnify, defend and hold us harmless from any and all actions, claims, losses, damages, liabilities and expenses (including attorney’s fees) arising directly or indirectly from the misuse or the unlawful or unauthorized use or copying of facsimile signatures (whether affixed manually, by stamp, mechanically, electronically or otherwise).

Fax Instructions/Voice Mail/Email. We may, but are not required to, act upon instructions received by fax transmission, voice mail or email. We may not review your message until the business day after its receipt. As such, it may not be appropriate to use these methods of communication if you need to reach us with time-sensitive information. If your instruction is time-sensitive, you should contact us in person or via our customer service telephone number at 916-567-2899 or 1-800-564-7144.

Financial Statement. You will provide us with a current financial statement upon request.

Force Majeure. We shall not be liable for any loss, expense, failure to perform, or delay caused by failure of communication systems, accidents, strikes, fire, flood, war, riot, civil strife, terrorist attack, earthquake, power outage, funds transfer system or government rules, acts of third parties, or any cause that is beyond our reasonable control.

Governing Law and Rules. This Agreement will be governed by and construed in accordance with United States federal law and, to the extent state law is applicable, the laws of the State of California, without giving effect to any choice of law or conflict of laws rules or provisions, whether of California or any other jurisdiction, that would cause the application of the laws of any state other than California. All deposits are considered to be accepted and held in, and all accounts opened and maintained in, the State of California, regardless of where you are located or how you elect to do business with us. Your accounts and services also will be subject to applicable clearinghouse, Federal Reserve Bank, funds transfer system, image exchange and correspondent bank rules (“Rules”), which may be governed by New York law. You agree that we do not have to notify you of a change in the Rules, except to the extent required by law. If there is any inconsistency between the terms of this Agreement and the Rules, the terms of this Agreement shall supersede the Rules, unless otherwise provided in the Rules. Except as set forth in the Dispute Resolution section and otherwise expressly provided hereunder, each party hereto: (a) consents to and waives any objections to personal jurisdiction, service of process, and venue in the federal and state courts located in the State of California, and (b) agrees that any action arising out of or relating to this Agreement shall be filed and prosecuted only in such courts. Nothing in this Agreement shall limit our rights with respect to the preemption of any state law pursuant to applicable federal law.

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Inactive Accounts. For security reasons, we may refuse a withdrawal or transfer from accounts we internally classify as inactive or dormant if we cannot reach you in a timely fashion to confirm the transaction’s authorization. Monthly maintenance fees and service charges for “dormant” or “inactive accounts” are the same as service charges for active accounts. Charges are not reimbursed for dormant or inactive accounts that are later reclassified as “active.” We will be required to transfer (escheat) your property to the appropriate state if no activity occurs in the account and you otherwise fail to communicate with us regarding your account within the time period specified by state law. We may consider an account dormant or inactive even if you maintain another active account with us. We may impose a fee for sending an inactive account notice to you prior to transferring the funds to the state. If funds are transferred to the state, you may file a claim with the state to recover the funds.

Indemnification. Except as otherwise set forth in this Agreement, you agree to indemnify, defend and hold us harmless from all claims, actions, proceedings, fines, costs and expenses (including, without limitation, attorney fees) related to or arising out of: (a) your actions or omissions in connection with your accounts or our services, or (b) our actions or omissions, provided that they are taken/omitted in accordance with this Agreement or your instructions. This provision shall survive the termination of this Agreement.

Legal Process. We may comply with any writ of attachment, execution, garnishment, tax levy, restraining order, subpoena, warrant or other legal process which we believe (correctly or otherwise) to be valid. We may notify you of such process by telephone, electronically or in writing. We have a daily cutoff time by which we must receive any legal process affecting our right or duty to pay a check that we are processing. That cutoff time is one hour after our opening of business following the business day on which we receive the check. If we are not fully reimbursed for our record research, photocopying and handling costs by the party that served the process, we may charge such costs to your account, in addition to our minimum legal process fee. Please refer to your RCB Schedule of Miscellaneous Fees and Service Charges Schedule for specific fee information. You agree to reimburse us for any cost or expense, including attorney fees, which we incur in responding to legal process related to your accounts.

We may not pay interest on any funds we hold or set aside in response to legal process. You agree that we may honor legal process that is served personally, by mail, email or facsimile transmission at any of our offices (including locations other than where the funds, records or property sought is held), even if the law requires personal delivery at the office where your account or records are maintained or at another office designated by us for that purpose. You acknowledge that accounts opened with trust or fiduciary designations (e.g., “XYZ, Inc. -- Client Trust Account”) may be subject to levies and other legal process against your property unless our records clearly reflect the existence of an express written trust or court order.

Limitation on Time to Bring Action. Unless otherwise required by law, an action or proceeding by you to enforce an obligation, duty or right arising under this Agreement or by law with respect to your account or any account service must be commenced no later than one year after the day the cause of action accrues.

MasterCard® Automatic Billing Updater. Your River City Bank Debit Card has been automatically enrolled in this service, but you do have the option to opt out of participation at any time.

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What is MasterCard® Automatic Billing Updater (ABU)? The ABU Service facilitates uninterrupted processing of your recurring charges. In the past, your authorized recurring MasterCard® Debit Card payments would not be processed if there was a change to your debit card number or debit card expiration date. For example, if you gave your debit card number to a merchant and authorized that merchant to process a recurring charge on your account (such as authorizing the local gym to withdraw funds from your account via your MasterCard® Debit Card on a monthly basis to pay your gym membership fees.) and your debit card number or debit card expiration date changed, you had to contact the merchant and provide them with your updated MasterCard® Debit Card information. The ABU service solves this problem and allows your recurring payments to continue, uninterrupted, if the merchant participates in the ABU service.

How does ABU work? When your MasterCard® Debit Card expires or is lost, and a new card is issued, participating merchants may electronically receive your updated card information (new card number, expiration date or account close status).

How does MasterCard protect my card information? The ABU service is only available over the protected MasterCard® Network. ABU only provides your debit card number, expiration date or account close status to those qualified merchants that have been approved by MasterCard®, and that you have authorized to make recurring payment(s) from your MasterCard® Debit Card. Changes to your MasterCard® Debit Card information that were made due to reported fraud will not be provided to merchants through this service.

Do all merchants participate in the ABU Service? Not all Merchants will participate. We recommend you continue to notify each merchant you have authorized to perform recurring payments on your behalf if there are any changes to your MasterCard® Debit Card number or expiration date.

What if I do not want ABU Services on my River City Bank MasterCard® Debit Card? YOU MAY OPT OUT OF ABU SERVICES AT ANY TIME. Opting out of the ABU Services will only apply to your MasterCard® Debit Card number identified in the opt out request. Please allow two business days for us to process your opt out request upon receipt. We will respond to you with written confirmation that your request is complete.

If I opt out of ABU Services will my future cards be opted out? No, newly opened MasterCard® Debit cards will automatically be enrolled in the service unless you opt out when the new MasterCard® Debit Card is requested.

If you have any questions regarding this service, or wish to opt out, please contact us in one of the following ways: (1) Call us at 916-567-2899 or 1-800-564-7144, (2) Write to us at Customer Service Dept, River City Bank, P.O. Box 15247, Sacramento, CA 95851, or (3) E-mail us at [email protected].

Other Agreements. You may have another agreement with us which, by its terms, supersedes this Agreement in whole or in part. For example, if you are a governmental unit or a business customer, certain provisions of your other agreements with us (e.g., involving cash management services) may supersede some of the terms of this Agreement, to the extent that they are inconsistent.

Overdrafts. If you do not have sufficient available funds on deposit to cover the amount of a check or other transaction (e.g., in-person withdrawal, automatic payment, or other electronic transaction), we may return the check or reject the transaction without payment. We may elect, however, in our sole discretion ITEM 12 Agenda Packet Page 114
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to create an overdraft by paying the check or permitting the transaction. Note: if you make a deposit on the same day that an item, service charge or transaction creates an overdraft (a “temporary or “intra-day overdraft”), we may charge the fee for the overdraft since the covering deposit may not be posted until the end of the business day. In some cases (e.g., deposits received after our close of business or on a nonbusiness day), the deposit may not be deemed received until the next business day. We also may impose a fee for overdrafts created by fees or deposited items that are returned. Note: We do not impose an overdraft fee for consumer ATM transactions or everyday (that is, non-recurring) debit card transactions.

Please refer to your Schedule of Miscellaneous Fees and Service Charges for the specific instances when such a fee may be charged.

If you maintain a savings account with us, you may be able to link that account so that your available funds are automatically transferred to your checking account in connection with any overdrafts on that account. In addition, we offer an overdraft line of credit that can be used in connection with overdrafts on your checking account up to your credit limit. There are fees for these services. If you would like more information or wish to apply for either of these services, please visit one of our branch offices or contact us at 916-567-2899 or 1-800-564-7144.

If we permit an overdraft or otherwise allow your account balance to drop below zero, you agree to pay the amount of the overdraft promptly, without notice or demand from us. You agree that we may use subsequent deposits and other credits to the account, including without limitation deposits of government, welfare, retirement and Social Security benefits, to cover any overdraft existing in your account, to the fullest extent permitted by law.

Each account owner is jointly and severally responsible for paying any overdrafts created by any authorized signer(s) or party to the account, whether or not the owner participates in the transaction or benefits from its proceeds.

Our payment of any checks or allowance of transactions that create overdrafts in no way obligates us to continue that practice at a later time. We may discontinue permitting overdrafts without cause or notice to you. We discourage the practice of overdrawing accounts. “Pay-on-Death” Accounts. This type of account passes to the designated beneficiaries on the death of an owner (or all of the owners if this is a joint account). During their lifetime, the owner(s) may exercise full control over the account and may make deposits to and withdrawals from the account. Upon the death of the last surviving owner, the account funds pass to the surviving beneficiaries. If there is more than one surviving beneficiary, each will receive an equal share of the funds, unless we have been instructed otherwise by the owner(s) in writing. The owner(s) may change beneficiaries during their lifetimes by updating our account documentation. Owners should keep us informed about each beneficiary’s address.

Photocopies. Checks and other items are sometimes lost during processing or while in transit. If a photocopy of a check or other item that appears to be drawn on your account is presented to us for payment in place of the original, we may pay the photocopy if it is accompanied by a representation from another financial institution that the original item has been lost or destroyed. We will not incur any liability in the event the original item is later presented to and paid by us, unless a stop payment order is in effect for the check.

Postdated Checks. Unless you provide your branch of account with a written postdated check notice that describes a postdated check with reasonable certainty, we may pay the check before the date stated on the ITEM 12 Agenda Packet Page 115
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check. Your notice must include the exact amount (dollars and cents), account number, check number, date of check and the name of payee. If you provide us with a postdated check notice in a time and manner which affords us a reasonable opportunity to act on it, we will not pay the item and may return it (marked “payment stopped”, “postdated” or otherwise) if it is presented to us prior to the date indicated in the order (up to six months from the date of the notice). After six months, a notice is no longer effective and must be renewed. We may impose a fee for each notice. If we re-credit your account after paying a postdated check over a valid and timely postdated check notice, you agree to transfer to us all of your related rights against the payee or other holder of the check, and to assist us in any legal action we take against that person.

Power-of-Attorney. Any owner may appoint an attorney-in-fact for an account and may revoke a power of attorney. You should notify us in advance if you plan to create a power of attorney involving your account. Upon request, we may provide you with a power-of-attorney form for that purpose. We generally will accept a Uniform Statutory Form Power of Attorney that complies with state law. We may refuse to accept other forms of powers of attorney, however, with or without cause.

We may act on the instructions of an attorney-in-fact whether or not the attorney-in-fact relationship is noted in the instruction (e.g., on any check signed by the attorney-in-fact). You can revoke your power of attorney by sending a written notice to us at your branch of account. We assume no duty to monitor the actions of your attorney-in-fact to ensure that (s)he acts for your benefit.

Privacy. We may release information about you, your deposit accounts, and the transactions you perform to third parties: where it is necessary or helpful in verifying or completing a transaction; to disclose the existence, history, and condition of your account to consumer reporting agencies; when you give us your consent; to comply with the law or a court or governmental order; to local, state and federal authorities if we believe a crime may have been committed involving your account; as permitted by law; and, if you are a business, in response to trade inquiries. Please see our Privacy Policy for additional details. All information and documents that you supply us when applying for an account or requesting new or additional products or services becomes our property. That information and those documents will not be returned to you except as required by law.

You (and, if acting in a representative capacity, individually and for such entity or person that you represent) authorize us to make or have made any credit, employment, or other investigative inquiries we deem appropriate (including, without limitation, obtaining a consumer and commercial report (credit report)) in connection with our determination to open, renew, update, maintain, or collect on an account.

Upon your request, we will tell you whether we obtained a consumer or commercial report (credit report) and the names and addresses of any consumer-reporting agencies that provided such reports.

If you, as an individual, believe that we have furnished any inaccurate information relating to you, as an individual, or your account to any consumer-reporting agency, you may notify us by phone at 916-567- 2899 or by mail at P.O. Box 15247, Sacramento, CA 95851. To help us respond to your notification, you must include your account number, Social Security Number, the name of the consumer-reporting agency reflecting the inaccurate information, and an explanation of why you believe the information is inaccurate.

WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE

PAYMENTS, MISSED PAYMENTS, OR OTHER DEFAULT ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT. IN ADDITION, AS REQUIRED BY LAW, YOU ARE

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RECORD MAY BE SUBMITTED TO A CREDIT REPORTING AGENCY IF YOU FAIL TO FULFILL THE TERMS OF YOUR CREDIT OBLIGATIONS.

Protecting Your Identity. Never disclose your PIN or password to anyone. Our employees will never ask you for your PIN, and we will not send unsolicited emails to you that request personal information.

Remotely Created Checks and Demand Drafts. If you provide your account number to a third party in order to charge your account by means of one or more remotely created checks or demand drafts (i.e., items which do not bear the maker's signature, but purport to be drawn with the maker's authorization), you authorize us to pay such items, even though they do not contain your signature and may exceed the amount you authorized to be charged. This provision shall not obligate us to honor such items. We may refuse to honor such items without cause or prior notice, even if we have honored similar items in the past.

You may not deposit remotely created checks or demand drafts to an account with us without our prior written consent. Upon our request, you agree to provide us with evidence of your authorization to create and/or deposit such items. You also agree to indemnify, defend and hold us harmless from every loss, expense, cost (including attorney's fees), claim and liability related to or arising from such items, including (without limitation) claims that they were not authorized by the persons on whose accounts the items were drawn.

Returned Items/Transactions. If we are notified that an item you cashed or deposited is being returned unpaid, we may attempt to reclear the item, place a hold on the funds in question (see “Funds Availability”) or charge your account for the amount (and any interest earned on it), whether or not the return or notice of non-payment is proper or timely. This also applies to checks drawn on us which are not paid for any reason, and to checks and other transactions that are returned or charged back to us in accordance with any law, regulation, funds transfer system or clearinghouse rule. We may assess a fee for each returned item/transaction and notify you of the return orally, electronically, or in writing.

If one of your deposited items is returned with a claim stating that an endorsement on an item deposited to your account is forged, that the item contains an alteration, or that there has been a breach of warranty in connection with any item or transaction, we may charge the item or transaction back against your account or place a hold on the funds pending an investigation, without prior notice to you, whether or not the notice is prompt or timely. We are under no duty to question the truth of the facts that are being asserted, to assess the timeliness of the claim, or to assert any defense.

Security Interest. You grant us a security interest in your account, including all current and future deposits and renewals, for amounts owing to us now and/or in the future under this Agreement or under any account service agreement by any owner. This provision does not apply to IRA or tax-qualified retirement accounts or where otherwise prohibited by law.

Setoff. We may charge or set off funds in your account for any direct, indirect and/or acquired obligations that you (including any owner) owe us now and/or in the future, regardless of the source of the funds in the account, to the fullest extent permitted by law. This provision does not apply to IRA or tax-qualified retirement accounts, to consumer credit card obligations, or where otherwise prohibited by law.

Severability. If any of the provisions of this Agreement are determined to be void or invalid, the remainder of the Agreement shall remain in full force and effect.

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Stale-Dated Checks. You agree that we may pay or reject a check which is presented to us for payment more than six months after its date (a “stale-dated” check), even if the presentation occurs after the expiration of a stop payment order. We normally do not examine the date on checks presented for payment. You agree that we are not required to identify stale-dated checks or to seek your permission to pay them.

Stop Payment Orders. Any owner or authorized signer on your account may request us to stop payment on a check or transaction. Your stop payment order must include the account number, check number, exact amount (dollars and cents), check or transaction date and the name of the payee. We will not be liable for paying a check or transaction over a stop payment order if the order is incomplete or incorrect.

We must receive stop payment orders at a time and in a manner which affords us a reasonable opportunity to act upon them.

There is a per-check/transaction charge for each stop payment order. Please refer to the Schedule of Miscellaneous Fees and Service Charges for specific fee information. Stop payment orders are valid for six months. After that time, the check may be paid and charged to your account unless you renew the stop payment order for an additional fee.

We are not required to accept oral stop payment orders. If we elect to act upon an oral stop payment order, however, you agree to promptly confirm the order in writing and deliver it to us. If you fail to do so within 14 calendar days, we may release the stop payment. Our records will be conclusive evidence of the existence, details of, and our decision regarding any oral stop payment order or its revocation.

You may not stop payment on point-of-sale debit card transactions, cashier’s checks, or checks or payments guaranteed by us. Under certain circumstances, however, you may be able to claim a refund on lost, stolen or destroyed cashier’s checks 90 days following the date of their issuance. Please note that electronic stop payment requests (through our online banking service) may not be effective in stopping the payment of checks that have been posted to, but not finally paid from, your account on the preceding day. In order to prevent those checks from being paid, you must contact one of our customer representatives in person, by telephone or in writing within one hour after we open on the day following the day we post the items to your account. You also should contact a representative if you wish to stop the payment of a check that has been converted to an electronic transaction by a merchant. Electronic transactions are often processed on the same day and cannot be stopped with a regular check stop payment order. (Please also see the section in this Agreement entitled “Consumer Electronic Fund Transfers” for information on consumer rights to stop payments and dispute unauthorized transfers.) Subaccounts. For regulatory reporting and reserve purposes, we divide checking accounts into two subaccounts: a checking subaccount and a savings subaccount. If your checking account earns interest, we will pay the same interest rate on both subaccounts. If it does not earn interest, no interest will be paid on either subaccount. In either case, your account will continue to operate, from your perspective, as one account.

We may establish a threshold for the balance maintained in the checking subaccount and may transfer funds periodically from one subaccount to the other to meet that threshold and cover transactions against your account. Your account statements will not reflect the existence of the subaccounts, and our periodic reallocation of funds between subaccounts will not affect your ability to withdraw funds, the interest rate (if any), fees, or other features of your checking account. You agree that we may treat the subaccounts as one and the same account if we receive a levy, subpoena or other legal process regarding either subaccount or your checking account.

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Substitute Checks. You agree not to deposit substitute checks, as described below, or checks bearing a substitute check legal equivalence statement (“This is a legal copy of your check. You can use it the same way you would use the original check.”) to your account without our prior written consent. Unless we agree otherwise in writing, our acceptance of such checks shall not obligate us to accept such items at a later time, and we may cease doing so without prior notice. If we approve the deposit of substitute checks, you agree to indemnify, defend and hold us harmless from all losses, costs, claims, actions, proceedings and attorney’s fees that we incur as a result of such checks, including without limitation, any indemnity or warranty claim that is made against us because: (a) the check fails to meet the requirements for legal equivalence, (b) a claimant makes a duplicate payment based on the original check, the substitute check, or a paper or electronic copy of either; or (c) a loss is incurred due to the receipt of the substitute check rather than the original check. Upon our request, you agree to provide us promptly with the original check or a copy that accurately reflects all of the information on the front and back of the original check when it was truncated.

You agree not to issue checks with features or marks that obscure, alter or impair information on the front or back of a check or that otherwise prevents us or another bank from capturing such information during automated check processing.

We may convert original checks to substitute checks.

The following notice applies to consumer accounts and supersedes, where inconsistent, other terms in this Agreement with respect to substitute checks.

Substitute Checks and Your Rights – Important Information About Your Account What is a Substitute Check?
To make check processing faster, federal law permits banks to replace original checks with “substitute checks.” These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: “This is a legal copy of your check.

You can use it the same way you would use the original check.” You may use a substitute check as proof of payment just like the original check.

Some or all of the checks that you receive back from us may be substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions.

What Are Your Rights Regarding Substitute Checks?
In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced-check fees).

The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your ITEM 12 Agenda Packet Page 119
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account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law.

If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim.

We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.

How Do You Make a Claim for a Refund?
If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at 916-567-2899 or 1-800-564-7144. You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances.

Your claim must include –
● Your name and account number;
● A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);
● An estimate of the amount of your loss;
● An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and
● A copy of the substitute check and/or the following information to help us identify the substitute check: the check number, the date of the check, the name of the person to whom you wrote the check, and the exact amount of the check (dollars and cents).

Telephone and Electronic Communication Monitoring/Recording. We may monitor telephone conversations and electronic communications for quality and control purposes without prior notice to you.

We may record your telephone conversations with the bank, but generally will not do so without notice to you.

Termination/Closing Your Account. At any time you may request that we close your account. We are not required to provide notice of such closure request or completed closure to the other authorized signers on the account.

We may terminate your account relationship with us or close any of your accounts with us at any time, with or without cause, by giving oral, electronic or written notice to any of you. We may automatically close your account if the account balance is zero.

Factors considered as part of our account closure process may include whether all pending transactions are processed, whether the account has a negative balance, whether you owe us any fees or other amounts, whether any legal or other holds apply to the account, and whether any remaining funds are withdrawn or otherwise transferred to another account. While we complete the steps we deem necessary to close an account, new or pending transactions may continue to be processed. If any remaining funds are not ITEM 12 Agenda Packet Page 120
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withdrawn prior to our closing an account, we may send a check for the collected account balance to any of you at the last address we have on file for the account. Thereafter, the funds will stop earning interest (even if the check is returned or remains uncashed for any reason).

We may dishonor any check or other item presented for payment after an account is closed or as we are completing our account closure process. During such times, at our sole discretion, we may honor checks or other items presented or occurring under certain conditions (e.g., under a check guarantee or as part of an electronic fund transfer arrangement), if you fail to give us a timely stop payment order for any outstanding checks, if any authorized transactions have not yet posted, or for any other reason in our sole discretion. You remain responsible for such checks and other items, which may be treated as overdrafts, and accordingly you agree that we may reopen your accounts or keep them open as necessary in our sole discretion. It is also your responsibility to cancel any scheduled deposits or recurring transactions and otherwise discontinue any activity that is connected to any account with us that has been closed or that we are in the process of closing. You agree that we are not liable for any loss or damage that results from our dishonoring deposits or other items that are presented or received after your account is closed or that we are in the process of closing, even if we are still holding funds that would cover such items.

Your obligations persist under this Agreement, and this Agreement continue to govern matters related to your account, after your account with us is closed and after your account relationship with us is terminated, or if we reopen your previously closed account as described above. This means, among other things, that you agree to pay us for all amounts that you owe us, whether or not your account(s) with us has been closed, and that we may reduce the amount of any funds we remit to you as part of our account closing process by such amounts owed.

Third-Party Mobile Wallets. You can add your River City Bank MasterCard® debit card(s) to your wireless device’s digital wallet or another electronic platform (a “Wallet”) provided by or on behalf of a party other than River City Bank (each such third party being a “Wallet Provider”). The term “Wallet” includes your payment-supported Apple®, Android®, or Samsung® device that allows you to create and use a virtual representation of your River City Bank debit card in order to make contactless payments at participating merchants by utilizing the merchant’s contactless terminal, by utilizing the merchant’s participating mobile app, or through other digital commerce payment services.

To add an eligible River City Bank debit card to your Wallet, you will need to follow the instructions and meet operating system, memory, or other eligibility requirements specified by the applicable Wallet Provider. Once added, you will then be able to conduct transactions remotely or in person with merchants who accept the Wallet as a means to do so. We reserve the right to limit the number of supported devices to which you can add a River City Bank debit card. A River City Bank debit card can be removed from the Wallet by following the procedures supplied by the Wallet Provider.

Whether you have added it to a Wallet using mobile banking services made available to you through the Bank or another means available to you through a Wallet Provider, transactions completed or attempted using your River City Bank debit card through a Wallet constitute use of your card and associated account(s) with the Bank and are subject to this Agreement and other River City Bank debit card terms and conditions. Except for fees that would otherwise apply to such card usage, we do not currently charge a fee for adding a River City Bank debit card to your Wallet or for using a River City Bank debit card to conduct a transaction with a supported device. Third parties such as wireless companies or data service providers may charge you fees for using the Wallet and you are responsible for any such wireless carrier data or usage fees incurred.

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As part of adding a card to a Wallet for use with a mobile device, a Wallet Provider and/or the payment card networks may create a token, a “device account number,” or other security element that is specific to your card and/or your device. This number or other security element may be used to facilitate Wallet transactions without the need to store, use, or display the applicable card number on your mobile device or at a merchant location. By agreeing to add a card to your Wallet for use with a particular device, you agree to the issuance of such security devices corresponding to your card for use in the Wallet.

We may take steps to authenticate your addition of a River City Bank debit card to a Wallet. By attempting to add a River City Bank debit card to a Wallet, in order to prevent fraud, you authorize your wireless carrier and/or device manufacturer to disclose to us your name, mobile telephone number, mailing address, email address, device make and model, device operating system, and other information for the purposes of verifying your identity and your request to add a card. We can block you from adding an otherwise eligible River City Bank debit card to a Wallet, suspend your ability to use a River City Bank debit card to make purchases using a Wallet, or cancel entirely your ability to continue to use a River City Bank debit card in a Wallet. We may take these actions at any time and for any reason, such as if we suspect fraud with your River City Bank debit card, if you have an overdue or negative balance on your account with River City Bank, or if applicable laws change.

Your Wallet may also allow you to view recent purchase transactions made by you with your River City Bank debit card. Please note that some of the listed transactions may be pending charges, which are temporary and are subject to change (for example, pre-authorizations at hotels). Your Wallet may provide you with the option to turn off this purchase transaction reporting for each debit card in the Wallet.

You agree to protect and keep confidential your user identification, passwords, and all other information required for you to make purchases with your River City Bank debit card using the Wallet. If you share these credentials with others, they may be able to access your Wallet and make purchases with your River City Bank debit card or obtain your personal information. Please notify us if you lose any device or associated security credentials through which your card is accessible using a Wallet. We will not be liable for any losses you incur in connection with Wallet usage except as specifically provided in this Agreement.

We collect certain information from the Wallet Provider to verify your identity and to enable you to use the River City Bank debit card. You authorize us to collect, use and share your information in accordance with the applicable River City Bank privacy notice and online privacy statement as amended from time to time. The River City Bank online privacy statement is available at www.rivercitybank.com. We do not have any control over the privacy and security of information that you provide to the Wallet Provider.

The Wallet Provider is responsible for the security of information provided to it or stored in the Wallet.

We are not responsible if there is a security breach affecting any information stored in the Wallet or sent from a Wallet. We are not responsible for any Wallet terms or conditions, or the performance or availability of any Wallet. Your Wallet may not be accepted at all places where your River City Bank debit card is accepted, and your ability to use your Wallet to complete transactions will depend on wireless or mobile service availability and other factors we do not control.

You are granted a non-exclusive, non-sublicensable, non-transferable, personal, limited license to use your River City Bank debit card on an eligible mobile device in the Wallet of your choice solely in accordance with these terms. The license is limited to use on any eligible mobile device that you own or control and as permitted by any applicable third-party agreements. You are prohibited from using your River City Bank debit card on a device that you do not own or control.

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If you have questions, disputes, or problems with the Wallet, contact the Wallet Provider. If you have questions, disputes, or problems concerning the River City Bank debit card, you should contact us at 916- 567-2700 or 1-800-564-7144.

Transfers/Assignments. Unless otherwise agreed by us in writing, all accounts are non-transferable and non-negotiable by you. You may not grant, transfer or assign any of your rights to an account without our prior written consent. We are not required to accept or recognize an attempted assignment of your account or any interest in it, including a notice of security interest. However, your obligations hereunder will be binding on your heirs, successors, estate, personal representatives, agents, beneficiaries, transferees or assignees, if any. We may transfer your accounts and our rights and obligations hereunder at any time and without prior notice to you or your consent, except as may be required by law.

Waivers. We may delay enforcing our rights under this Agreement without losing them. Any waiver by us shall not be deemed a waiver of other rights or of the same right at another time. You waive diligence, demand, presentment, protest and notice of every kind, except as set forth in this Agreement.

WITHHOLDING OF INCOME TAX
Unless you are exempt under federal law, we are required to withhold a portion of your taxable interest and certain other payments (this is referred to as backup withholding) if: (1) you fail to supply us, under penalties of perjury, with your correct taxpayer identification number (TIN); (2) you fail to provide us with the required certified information; (3) the IRS instructs us to withhold; or (4) the IRS notifies you that you are subject to backup withholding. You must provide your TIN whether or not you are required to file a tax return. You also must certify that you are not subject to backup withholding.

We may report interest and other payments to you to the Internal Revenue Service (IRS), along with your TIN. You agree that we may provide any and all account records and statements (including without limitation tax reporting records) to each accountholder on a joint account.

We may refuse to open, and we may close, any account for which you do not provide a certified TIN, even if you are exempt from backup withholding and information reporting. To avoid possible erroneous backup withholding, an exempt payee should furnish its TIN and indicate on the signature card that it is exempt.

A non-resident alien or foreign entity not subject to information reporting must certify its exempt status by completing an appropriate IRS certification form (e.g., W-8 BEN). Non-resident aliens may be required to certify their exempt status every three years (or earlier upon request) to avoid backup withholding.

You may be subject to civil and criminal penalties if you fail to provide us with a correct TIN or falsify information with respect to withholding. For additional information on interest reporting and withholding, contact your tax advisor or the IRS.

QUESTIONS OR COMMENTS
If you have any questions or comments, you can call us at 916-567-2899 or 1-800-564-7144, or write to us at River City Bank, P.O. Box 15247, Sacramento, CA 95851.

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Note: The fees, rates, and benefits described in this booklet and in the accompanying account disclosure and Schedule of Miscellaneous Fees and Service Charges were current as of the date of publication, but are subject to change. You can obtain current information by calling us at 916-567-2899 or 1-800-564- 7144.

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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: May 27, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Alexander A. Turcotte, Chief of Police
Kris Frey, Police Commander
William Dunning, Police Lieutenant
Debra Miller, Police Services Supervisor
Casey Kempenaar, Community Development Director
Alison Bermudez, Senior Planner
SUBJECT: Ordinance Amending Citrus Heights Municipal Code Chapter 22 – Businesses, Article VIII. – Massage Establishments
Recommendation
Staff recommends the City Council move to introduce for a first reading, read by title only and waive full reading of Ordinance No. 2026-____, amending Citrus Heights Municipal Code Chapter 22 – Businesses, Article VIII. – Massage Establishments.

If Council passes this motion, the proposed ordinance will be scheduled for a second reading and adoption at the Council meeting on June 10, 2026, with an effective date 30 days thereafter.

Strategic Plan Alignment
This item is in alignment with the following City Council priority from 2025:

Goal: Preserve and Enhance Public Safey
Objective: To maintain consistency with regional and adjacent jurisdictions, present Zoning and Municipal Code updates. Consider regulations for high visibility or high impact uses including massage establishments, vending/food trucks, and similar challenges facing the region.

Fiscal Impact
There is no direct impact to the City’s general fund.

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Subject: Ordinance Amending Citrus Heights Municipal Code Chapter 22 – Businesses, Article VIII. – Massage Establishments
Date: May 27, 2026

Page 2 of 5 ends

Citrus Heights City Council MeetingsMay 27, 2026

Citrus Heights City Council Meetings
May 27, 2026