Agenda packet, regular meeting, third session — Citrus Heights City Council Meetings, August 12, 2026

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Special and Regular Meetings of Wednesday, August 12, 2026 City Hall Council Chambers 6360 Fountain Square Drive, Citrus Heights, CA 5:00 PM SPECIAL MEETING
6:00 PM REGULAR MEETING

WATCH A CITY COUNCIL MEETING
The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process.

The following methods are available to observe a Council meeting:
l In person: City Hall Council Chambers
l Join Zoom Webinar: https://us06web.zoom.us/j/82346696289 l Online: Livestream and replay past meetings at www.citrusheights.net l On Television: Watch live and replays of meetings on Sac Metro Cable, Channel 14 HOW TO PARTICIPATE:

The City provides the following ways to participate in a Council meeting:
l In-person public comments: Please fill out a blue Speaker Identification Card and give it to the City Clerk before the item is heard
l Live remote public comments:
n Join Zoom Webinar: https://us06web.zoom.us/j/82346696289 n Dial-in: 1-669-900-6833 | Webinar ID: 823 4669 6289
n Press *9 to raise your hand to request to speak
n Press *6 to unmute when called upon to speak
l Written public comments:
n Submit written comments by 4:00 p.m. on the meeting date by completing an online Speaker Card 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.

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.

August 12, 2026 City Council Agenda Packet
08-12-26 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

CLOSED SESSION

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant To Government Code Section 54956.8 Property: 7555 And 7569 Old Auburn Road, Citrus Heights, CA 95610 Agency Negotiator: Ashley Feeney, City Manager And Ryan Jones, City Attorney Negotiating Parties: FieldHaven Feline Center Under Negotiation: Price, Terms Of Payment, Or Both

3. 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. 2026 Fireworks Enforcement Update

5. Presentation By The Administrative Services Department On The Tyler Munis ERP Implementation

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

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of May 13, 2026

7. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Staff recommends the City Council receive and file the Quarterly Treasurer’s Report for the quarter ending June 30, 2026

8. SUBJECT: Delegating Disbursement Authority For The California Employees Retirement Benefit Trust To Reflect Current Staff Position Titles STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Amending the Delegation of Authority to Request Disbursements from the California Employees Retirement Benefit Trust to Update the Authorized Staff Position Titles

9. SUBJECT: Permission For Councilmember Nelson To Be Absent From City Council Meetings During Parental Leave Of Absence
STAFF REPORT: A. Van
RECOMMENDATION: It is recommended that the City Council Adopt by a Motion Granting Permission to Council Member Kelsey Nelson to be Absent from Regular and Special City Council Meetings through the months of August, September and October 2026 for Parental Leave of Absence

REGULAR CALENDAR

10. SUBJECT: Agreement For Cost Sharing With The County Of Sacramento For The AC Overlay Project 2025 Phase A (Madison Avenue Overlay Project) STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement for Cost Sharing with the County of Sacramento for the AC Overlay Project 2025 Phase A

11. SUBJECT: A Resolution Authorizing The Participation And Implementation Of The California Uniform Public Construction Cost Accounting Act In Conformance With Public Contract Code 22010 – First Reading
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the following:
a. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Participation and Implement of the California Uniform Public Construction Cost Accounting Act in Conformance with Public Contract Code 22010; and
b. 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, Adding Division 6 (“Uniform Construction Cost Accounting Act ”) to Article V (“Finances”) of Chapter 2 (“Administration”) of the Citrus Heights Municipal Code.

12. SUBJECT: Designation Of Voting Delegate And Alternate(S) For The League Of California Cities Annual Conference And Direction On Proposed 2026 Cal Cities Resolution(S)
STAFF REPORT: A. Van / D. Jones
RECOMMENDATION: Move to designate a voting delegate and up to two alternates to participate at the Annual Business Meeting on September 25, 2026 during the League of California Cities (Cal Cities) Annual Conference
ITEM 12 Attachment (2) - Cal Cities Resolution Packet
ITEM 12 (UPDATED 8-11-26).PDF

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

CITY MANAGER ITEMS

ADJOURNMENT
ADDRESSING THE CITY COUNCIL:

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.

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.

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.

Documents:

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Special and Regular Meetings of Wednesday, August 12, 2026 City Hall Council Chambers 6360 Fountain Square Drive, Citrus Heights, CA 5:00 PM SPECIAL MEETING
6:00 PM REGULAR MEETING

WATCH A CITY COUNCIL MEETING
The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process.

AMERICANS WITH DISABILITIES ACT:

August 12, 2026 City Council Agenda Packet
08-12-26 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

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. 2026 Fireworks Enforcement Update

5. Presentation By The Administrative Services Department On The Tyler Munis ERP Implementation

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of May 13, 2026

REGULAR CALENDAR

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

CITY MANAGER ITEMS

ADJOURNMENT
ADDRESSING THE CITY COUNCIL:

LEVINE ACT:

WRITINGS RECEIVED AFTER AGENDA POSTING:

Documents:

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Special and Regular Meetings of Wednesday, August 12, 2026 City Hall Council Chambers 6360 Fountain Square Drive, Citrus Heights, CA 5:00 PM SPECIAL MEETING
6:00 PM REGULAR MEETING

WATCH A CITY COUNCIL MEETING
The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process.

AMERICANS WITH DISABILITIES ACT:

August 12, 2026 City Council Agenda Packet
08-12-26 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

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. 2026 Fireworks Enforcement Update

5. Presentation By The Administrative Services Department On The Tyler Munis ERP Implementation

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of May 13, 2026

REGULAR CALENDAR

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

CITY MANAGER ITEMS

ADJOURNMENT
ADDRESSING THE CITY COUNCIL:

LEVINE ACT:

WRITINGS RECEIVED AFTER AGENDA POSTING:

Documents:

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Special and Regular Meetings of Wednesday, August 12, 2026 City Hall Council Chambers 6360 Fountain Square Drive, Citrus Heights, CA 5:00 PM SPECIAL MEETING
6:00 PM REGULAR MEETING

WATCH A CITY COUNCIL MEETING
The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process.

AMERICANS WITH DISABILITIES ACT:

August 12, 2026 City Council Agenda Packet
08-12-26 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

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. 2026 Fireworks Enforcement Update

5. Presentation By The Administrative Services Department On The Tyler Munis ERP Implementation

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of May 13, 2026

REGULAR CALENDAR

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

CITY MANAGER ITEMS

ADJOURNMENT
ADDRESSING THE CITY COUNCIL:

LEVINE ACT:

WRITINGS RECEIVED AFTER AGENDA POSTING:

Documents:

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, August 12, 2026 City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA 95621 Special Meeting 5:00 p.m.

Regular Meeting 6:00 p.m.

WATCH A CITY COUNCIL MEETING
The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process. The following methods are available to observe a Council meeting:
• In person: City Hall Council Chambers
• Join Zoom Webinar: https://us06web.zoom.us/j/82346696289 • Online: Livestream and replay past meetings at www.citrusheights.net • On Television: Watch live and replays of meetings on Sac Metro Cable, Channel 14 HOW TO PARTICIPATE:

The City provides the following ways to participate in a Council meeting:
• In-person public comment s: Please fill out a blue Speaker Identification Card and give it to the City Clerk before the item is heard
• Live remote public comments:
o Join Zoom Webinar: https://us06web.zoom.us/j/82346696289 o Dial-in: 1-669-900-6833 | Webinar ID: 823 4669 6289
▪ Press *9 to raise your hand to request to speak
▪ Press *6 to unmute when called upon to speak
• Written public comments:
o Submit written comments by 4:00 p.m. on the meeting date by completing an online Speaker Card 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.

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.

August 7, 2026
_______________________
Amy Van, City Clerk
Agenda Packet Page 1
Citrus Heights City Council Wednesday, August 12, 2026

Page 2 of 4 ends

SPECIAL CITY COUNCIL MEETING
5:00 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 REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: 7555 and 7569 Old Auburn Road, Citrus Heights, CA 95610 Agency Negotiator: Ashley Feeney, City Manager and Ryan Jones, City Attorney Negotiating Parties: FieldHaven Feline Center
Under Negotiation: Price, terms of payment, or both

3. 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. 2026 Fireworks Enforcement Update

5. Presentation by the Administrative Services Department on the Tyler Munis ERP Implementation

REGULAR CITY COUNCIL MEETING
6:00 PM
Agenda Packet Page 2
Citrus Heights City Council Wednesday, August 12, 2026

Page 3 of 4 ends

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 6:40 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.

6. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of May 13, 2026

8. SUBJECT: Delegating Disbursement Authority for the California Employees Retirement Benefit Trust to Reflect Current Staff Position Titles
STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Amending the Delegation of Authority to Request Disbursements from the California Employees Retirement Benefit Trust to Update the Authorized Staff Position Titles

9. SUBJECT: Permission for Councilmember Nelson to be Absent from City Council Meetings during Parental Leave of Absence
STAFF REPORT: A. Van
RECOMMENDATION: It is recommended that the City Council Adopt by a Motion Granting Permission to Council Member Kelsey Nelson to be Absent from Regular and Special City Council Meetings through the months of August, September and October 2026 for Parental Leave of Absence

REGULAR CALENDAR (Estimated Start Time 6:45 p.m.)

10. SUBJECT: Agreement for Cost Sharing with the County of Sacramento for the AC Overlay Project 2025 Phase A (Madison Avenue Overlay Project)
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement for Cost Sharing with the County of Sacramento for the AC Overlay Project 2025 Phase A

Agenda Packet Page 3
Citrus Heights City Council Wednesday, August 12, 2026

Page 4 of 4 ends

11. SUBJECT: A Resolution Authorizing the Participation and Implementation of the California Uniform Public Construction Cost Accounting Act in Conformance with Public Contract Code 22010 – First Reading
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the following:

a. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Participation and Implement of the California Uniform Public Construction Cost Accounting Act in Conformance with Public Contract Code 22010; and

b. 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, Adding Division 6 (“Uniform Construction Cost Accounting Act”) to Article V (“Finances”) of Chapter 2 (“Administration”) of the Citrus Heights Municipal Code.

12. SUBJECT: Designation of Voting Delegate and Alternate(s) for the League of California Cities Annual Conference and Direction on Proposed 2026 Cal Cities Resolution(s) STAFF REPORT: A. Van / D. Jones
RECOMMENDATION: Move to designate a voting delegate and up to two alternates to participate at the Annual Business Meeting on September 25, 2026 during the League of California Cities (Cal Cities) Annual Conference

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

CITY MANAGER ITEMS

ADJOURNMENT

ADDRESSING THE CITY COUNCIL:

LEVINE ACT:

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 Offic e 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.

Agenda Packet Page 4

CITY OF CITRUS HEIGHTS

CITY COUNCIL

MINUTES
Special and Regular Meetings of Wednesday, May 13, 2026 City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA 95621

CALL SPECIAL MEETING TO ORDER
The special meeting was called to order at 5:00 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, Drexel, Van

PUBLIC COMMENT
None.

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

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

REPORT OUT OF CLOSED SESSION
There was no reportable action from closed session. Closed Session was continued to the end of the meeting.

ADJOURNMENT
Mayor Lopez-Taff adjourned the special meeting at 6:00 p.m.

CALL REGULAR MEETING TO ORDER
The regular meeting was called to order at 6:03 p.m. by Mayor Lopez-Taff.

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

2. Roll Call: Council Members present: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff Council Members absent: None
ITEM 6
Agenda Packet Page 5
Citrus Heights City Council Wednesday, May 13, 2026

Page 2 of 7 ends

Staff Members present: Bermudez, Blomquist, Cave, Drexel, Feeney, Frey, Kempenaar, Turcotte, Van and department directors.

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

APPROVAL OF AGENDA

Prior to approval, City Clerk Van announced that Consent Calendar Item 11, Auburn Boulevard Complete Streets, Phase 2 Project – Authorize Additional Work, was pulled off the agenda and will be continued to a future meeting.

ACTION: On a motion by Council Member Schaefer, seconded by Vice Mayor Middleton, the City Council approved the agenda, as amended.

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

PRESENTATIONS

4. Mesa Verde High School Student Council Report

Jonathan King reported on the year’s events, theater productions, concert band performances, sports, and student and teacher achievements, as well as participation in the City of Citrus Heights’ inaugural Youth in Government Day.

5. Proclamation of the City of Citrus Heights Proclaiming May 2026 as Building Safety Month

Council Member Schaefer read and presented the proclamation to Chief Building Official Joe Cuffe, Development Services Technician Shara Hudock, and Jr. Building Inspector Siena Hudock.

6. Proclamation of the City of Citrus Heights Proclaiming May 17-23, 2026 as National Public Works Week

Vice Mayor Middleton read and presented the proclamation to General Services Director Cave, City Engineer Blomquist and Operations Manager Poole.

7. Proclamation of the City of Citrus Heights Proclaiming May 11-16, 2026 as National Police Week

Council Member Nelson read and presented the proclamation to Citrus Heights Police Commander Frey.

PUBLIC COMMENT

Thomas Spencer stated that a culvert at Brooktree Park needs repair, and the General Services Department has been notified and is working on it.

Gigi Rayford provided an update on Citrus Heights Arts, mural projects and announced upcoming events.

ITEM 6
Agenda Packet Page 6
Citrus Heights City Council Wednesday, May 13, 2026

Page 3 of 7 ends

Hilary Cary spoke on behalf of Roll United – a grassroots social club – regarding hosting all-inclusive outdoor recreation events throughout the region through partnerships with cities and park districts.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

Council Member Nelson attended a Capitol tour with the Citrus Heights Chamber of Commerce. She attended the Chamber Luncheon where Assemblyman Hoover spoke. She went to the State of the County Address. She attended a 2x2 meeting with the Citrus Heights Police Department. She attended the Greater Sacramento Economic Council (GSEC) Awards.

Council Member Schaefer attended a 2x2 meeting with the Police Department. He attended a SACOG Policy & Innovation Committee meeting and a Sacramento Regional Transit Board meeting.

Council Member Karpinski-Costa attended the State of the County Address. She attended the ribbon cutting ceremony for San Juan High School’s new stadium. She attended an Area 10 Neighborhood Association meeting. She went to Yoga Fest and a presentation by the Citrus Heights Historical Society.

She attended the Greater Sacramento Economic Council (GSEC) Awards. She went to Low Vision Support Group meeting. She went to a Sacramento Area Sewer District meeting but noted that there was not a quorum.

Vice Mayor Middleton attended an Education 2x2 meeting. She attended the Sacramento Better Business Bureau’s women's conference. As she will be out of the country for the Community Blood Drive, she donated blood separately. She attended a Mesa Verde Key Club meeting.

Mayor Lopez-Taff attended a SacRT Board meeting and spoke at the Area 11 Neighborhood Association meeting. She attended the State of the County Address and a SACOG meeting. She attended Cap to Cap and participated with the City Council in regional lobbying. She went to the San Juan High School stadium opening and the Purple Pageant. She attended a meeting of the Capitol Region elected women’s group and a Citrus Heights Water District briefing. She attended a meet and greet with Senator Alex Padilla’s office and a meeting with Senator Ashby on Senate Bill 802. She attended the Community Bike Ride event and Hearts 4 Heroes Awards. She delivered a presentation to the San Juan Unified School District Board. She participated in the unveiling of the Leadership Citrus Heights class projects.

CONSENT CALENDAR

8. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of February 25, 2026

9. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar, D. Jenkins
RECOMMENDATION: Staff recommends the City Council receive and file the Quarterly Treasurer’s Report for the quarter ending March 31, 2026

10. SUBJECT: 2025 Road Resurfacing Project – Authorize Additional Work STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2026-024, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute Change Orders up to ITEM 6
Agenda Packet Page 7
Citrus Heights City Council Wednesday, May 13, 2026

Page 4 of 7 ends

25% of the Contract Amount with Valley Slurry Seal International, Inc. for the 2025 Road Resurfacing Project and Increasing the Total Authorized Construction Budget to $10,039,156.25

11. Item pulled from the agenda.

12. SUBJECT: Dewey Drive / Van Maren Lane Enhancement Project – Final Acceptance and Notice of Completion
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2026-025, A Resolution of the City Council of the City of Citrus Heights, California, Accepting the Dewey Drive / Van Maren Lane Enhancement Project as Complete and Authorizing the City Engineer to Record a Notice of Completion and Release the Contract Retention

13. SUBJECT: Resolution Authorizing Additional Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs STAFF REPORT: R. Cave / L. Blomquist / M. Poole
RECOMMENDATION: Adopt Resolution No. 2026-026, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Submittal of Additional Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs and Identifying Additional Priority Projects for the Various Funding Programs

14. SUBJECT: Approval to Execute an Agreement with Axon Enterprise, Inc. to Purchase an Integrated Public Safety Technology Platform
STAFF REPORT: A. Turcotte / M. Wells / W. Herman / C. Kinnan RECOMMENDATION: Adopt Resolution No. 2026-027, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a 5-Year Agreement with Axon Enterprise, Inc. for the Purchase and Implementation of an Integrated Public Safety Technology Platform

15. SUBJECT: Approval of Administrative Amendments to City Council Handbook STAFF REPORT: A. Van
RECOMMENDATION: Adopt Resolution No. 2026-028, A Resolution of the City Council of the City of Citrus Heights, California, Approving Administrative Amendments to the City of Citrus Heights City Council Handbook

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Nelson, the City Council adopted Consent Calendar Items 8, 9, 10, 12, 13, 14 and 15.

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

PUBLIC HEARINGS

16. SUBJECT: Gateway Activation Project Amendments to the Bikeway Master Plan, Pedestrian Master Plan, General Plan Bikeways Map and adoption of Mitigated Negative Declaration STAFF REPORT: C. Kempenaar / R. Cave / L. Blomquist / A. Bermudez / M. Brown RECOMMENDATION: Adopt Resolution No. 2026-029, A Resolution of the City Council of the City of Citrus Heights, California, Adopting the Mitigated Negative Declaration, Adopting the ITEM 6
Agenda Packet Page 8
Citrus Heights City Council Wednesday, May 13, 2026

Page 5 of 7 ends

Mitigation Monitoring Plan, and Adopting the Updated Bikeway Master Plan, Pedestrian Master Plan and the General Plan Bikeway Map Incorporating the Gateway Activation Project Director Kempenaar presented the Gateway Activation Project objectives, to connect the existing Arcade- Cripple Creek Trail to the Old Auburn Trail and then connect to the Dry Creek Greenway Trail in Roseville, and to accomplish local roadway enhancements while implementing trail connectivity. City Engineer Blomquist presented the significant traffic safety and operational challenges along the Old Auburn Road corridor and solutions including new roundabouts and a trail crossing. Senior Planner Bermudez presented a summary of the City’s community engagement efforts and the environmental compliance aspects. A tentative project timeline was reviewed.

City Council questions and comments followed. Mayor Lopez-Taff opened the public hearing at 7:14 p.m.

Public Comment
Gerald Kumpf expressed concern about the proposed roundabouts.

Hearing no further public comment requests, Mayor Lopez-Taff closed the public hearing at 7:20 p.m.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Karpinski-Costa, the City Council adopted Resolution No. 2026-029, A Resolution of the City Council of the City of Citrus Heights, California, Adopting the Mitigated Negative Declaration, Adopting the Mitigation Monitoring Plan, and Adopting the Updated Bikeway Master Plan, Pedestrian Master Plan and the General Plan Bikeway Map Incorporating the Gateway Activation Project.

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

REGULAR CALENDAR

17. SUBJECT: Approval to Execute an Agreement with Verra Mobility for Red-Light Photo Enforcement
STAFF REPORT: A. Turcotte / K. Frey / W. Dunning
RECOMMENDATION: Adopt Resolution No. 2026-030, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a three-year Agreement with Verra Mobility for the Continued Operation, Maintenance, and Administration of the Red-Light Camera Enforcement Program, with the Option for two Additional One-Year Renewals

Police Chief Turcotte presented an overview of the current red light photo enforcement program, violation data, revenue and expenses. He provided statistics from neighboring jurisdictions that have deactivated their cameras. He reviewed the fiscal impacts of the proposed contract.

City Council questions and comments followed. Chief Turcotte briefly discussed Senate Bill 720 pertaining to automated traffic enforcement systems.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Nelson, the City Council adopted Resolution No. 2026-030, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a three-year Agreement with Verra Mobility for the ITEM 6
Agenda Packet Page 9
Citrus Heights City Council Wednesday, May 13, 2026

Page 6 of 7 ends

Continued Operation, Maintenance, and Administration of the Red-Light Camera Enforcement Program, with the Option for two Additional One-Year Renewals.

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

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

• On a motion by Council Member Karpinski-Costa, seconded by Mayor Lopez-Taff, staff was directed to bring the Verra Mobility contract renewals back to the Council, rather than automatically implementing them.

18. SUBJECT: America’s 250 Year Anniversary Mural Installation at City Hall STAFF REPORT: R. Cave
RECOMMENDATION: Adopt Resolution No. 2026-031, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing Citrus Heights Arts to Proceed with Planning and Installation of a 250 Year Anniversary Mural at City Hall and Further Authorizes an Allocation of Community Support Funding to Assist with Costs Associated with Installation of the Mural

Director Cave presented comparative mural options and a proposed mural location at City Hall. Next steps include Citrus Heights Arts releasing concepts to the community. The goal is to have the mural completed before the Stars & Stripes Celebration. The recommendation also includes a $6,000 Community Support Fund allocation.

Director Cave and Gigi Rayford of Citrus Heights Arts responded to City Council questions.

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Council Member Schaefer, the City Council adopted Resolution No. 2026-031, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing Citrus Heights Arts to Proceed with Planning and Installation of a 250 Year Anniversary Mural at City Hall and Further Authorizes an Allocation of Community Support Funding to Assist with Costs Associated with Installation of the Mural.

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

CITY MANAGER ITEMS

City Manager Feeney provided updates on the Auburn Boulevard repaving. He discussed a grant appropriation from Congressman Bera for the San Juan Avene Phase 2 project. He announced that Director Cave has been selected as one of the 2026 Top Ten Public Works Leaders of the Year from the American Public Works Association. He announced that the Citrus Heights Police Department was recognized as the Department of the Year by Hearts 4 Heroes. The California Association for Local Economic Development provided an Economic Development Programs & Promotions Award of Merit for the Economic Development Work Plan, as well as a Clean California Community Designation. The Sacramento Valley American Planning Association provided the Planning Agency Award of Merit. He ITEM 6
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Citrus Heights City Council Wednesday, May 13, 2026

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reviewed upcoming events Tools of the Trade, Big Day of Service and a Community Blood Drive. He commended City Clerk Van on the first Youth in Government Day. He discussed Public Service Recognition Week and expressed appreciation for the work of all City employees. He announced that City Hall will be closed on May 25 for Memorial Day.

ADJOURNMENT

Mayor Lopez-Taff adjourned the regular meeting at 7:55 p.m. and reconvened Closed Session.

REPORT OUT OF CLOSED SESSION

There was no reportable action from closed session.

ADJOURNMENT

Mayor Lopez-Taff adjourned the special meeting at 8:10 p.m.

Respectfully submitted,

__________________________
Amy Van, City Clerk

ITEM 6
Agenda Packet Page 11

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: August 12, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Susan K. Talwar, Administrative Services Director
Dena Jenkins, Finance Manager
SU
BJECT: Quarterly Treasurer’s Report
Recommendation
St
aff recommend the City Council receive and file the Quarterly Treasurer’s Report for the quarter ending June 30, 2026. This report is a standard quarterly report submitted in accordance with the provisions of California Government Code Section 53646(b) whereas it states the treasurer or chief fiscal officer may render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency.

St
rategic Plan Alignment
Thi
s item is in alignment with the following Council Strategic priority:

Goal:

Maintain and Enhance Fiscal Stability while supporting operational excellence.

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

Ba
ckground and Analysis
The
market value of cash and investments for all City funds on March 31, 2026, was $61,705,534, up from $60,124,808 on March 31, 2026. The increase is due to strong interest revenues for the quarter and the receipt of property taxes that allowed revenues to outpace expenses for the quarter.

ITEM 7
Agenda Packet Page 12
Subject: Quarterly Treasurer’s Report
Date: August 12, 2026

Page 2 of 4 ends

Significant deposits for the FY 2025/26 fourth quarter (April through June 2026) included:

Property Tax $10,592,456
Sales Tax $3,433,210
CalTrans Grant Reimbursements – Auburn Blvd, Old Auburn, ect. $2,737,317

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

As of 6/30/2026
Description Par Value Cost Value Fair Value
Avg.

Rate of
Return
% of
Total
Portfolio
US Bank – General Account $3,106,822 $3,106,822 $3,106,822 0.00% 5.03% Local Agency Investment Funds (LAIF) $42,517,901 $42,517,901 $42,469,957 3.82% 68.83% California Asset Management Program (CAMP) $4,767,612 $4,767,612 $4,767,612 3.77% 7.73% Investment Account $11,436,620 $11,232,220 $11,361,144 4.22% 18.41% Total Portfolio $61,828,954 $61,624,554 $61,705,534 3.69%

A portion of the City’s investments are under management by Chandler Asset Management (Investment Manager) as of March 2023. For more information regarding the City’s investments under management, see schedules included as Attachment 1.

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

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

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

The value of fixed-income securities may fluctuate with changes in interest rates. As interest rates go up, the fair value of the securities may go down, and the reverse is true; when interest ITEM 7
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Subject: Quarterly Treasurer’s Report
Date: August 12, 2026

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rates go down, the market value of the securities may go up. The difference between the book and fair market value is considered an unrealized gain or loss. The unrealized gain for this reporting period is $80,980. It is important to note that a loss or gain is realized when an investment is redeemed or sold before its maturity date. The City’s investments are typically retained until the maturity date, at which point the City’s full investment is returned.

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

Compliance
All investment transactions were executed in accordance with the California Government Code and the City’s Investment Policy. In accordance with California Government Code section 53646(b)(3), staff believes that the investments and budgeted revenues for the City will provide sufficient cash flow to meet the anticipated cash flow requirements of each entity for the next six months.

Pooled cash and investment book balances are adjusted annually to reflect fair value as required by Generally Accepted Accounting Principles (GAAP). The term fair value was formerly known as market value and became effective with the mandatory implementation of the Governmental Accounting Standards Board (GASB) Statement No. 31 in fiscal year 1998. The CAMP Pool complies with requirements outlined by GASB Statement No. 79, which allow the City to record its investment at amortized cost instead of fair value. The attached investment schedules meet all applicable GASB requirements.

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

The City received an ARPA allocation of $15.68 million of which the total funds used by end of June 2026 were $15.6 million. As of December 31, 2024, all funds have been obligated and reported to the US Treasury. Remaining funds need to be expended by December 31, 2026.

At the August 14, 2024, City Council meeting, Council approved the allocation of the remaining funds towards general government services and critical projects. This is reflected on the schedule below in accordance with the US Treasury guidelines. General government services and critical projects include but are not limited to necessary improvements to infrastructure such as sidewalks, pedestrian safety features like crosswalks, streetlights, neighborhood cleanup, and other projects to revitalize public spaces; replace and update technology tools to effectively develop, execute, and evaluate government programs; and general government services such as rehire public safety to pre-pandemic levels.

ITEM 7
Agenda Packet Page 14
Subject: Quarterly Treasurer’s Report
Date: August 12, 2026

Page 4 of 4 ends

Attachments

1. Chandler Asset Management Portfolio Summary, Statement of Compliance, and Holdings Report
Total Award 15,676,972$
Completed Projects Actual
Small Business COVID Recovery Grant 281,111$
Block Party Trailer - Economic Development+ 27,794$
Patriotic Event+ 68,438$
Proposed Grant Strategy+ 60,000$
Police Fleet Vehicles & Equipment 1,800,000$
Community Projects Grant Program**+ 72,400$
Cares Commuinity Pride and Cleanliness Campaign+ 38,607$ Sound Wall Beautification+ 105,986$
Business Attraction Incentive Program**+ 87,363$
Public Safety Positions to PrePandemic Levels 7,749,590$ I.T. Critical, Major Projects; Execute Contract Tyler Technologies+ 1,229,601$ In Process Projects Commited
Actual thru
03/31/26
Remaining
balance
Beautification Crew Pilot Program + 875,000$ 788,861$ 86,139$ Public Safety Communications Center Critical Needs 600,000$ 600,000$ -$ General Government Services & Critical Projects 2,681,082$ 2,681,082$ -$ Committed funds 15,676,972$
Spent 15,590,833$
Remaining Committed 86,139$
Current Balance -$ Funds to allocate/reallocate + City Council Strategic Objective
** dependent on program subscription
American Rescue Plan Act
ITEM 7
Agenda Packet Page 15

INVESTMENT REPORT
City of Citrus Heights | As of June 30, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

ITEM 7
Agenda Packet Page 16

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

PORTFOLIO HOLDINGS

TRANSACTIONS
1 ITEM 7
Agenda Packet Page 17

ECONOMIC UPDATE
2 ITEM 7
Agenda Packet Page 18
▪
▪
▪
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the8–4 split at April’s meeting, which marked JeromePowell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance.

The 2-year yield rose to 4.15% from 3.98% the prior month, while the 10-year yield edged down slightly to 4.44% from 4.45%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 47 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Front-end rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

ECONOMIC UPDATE
3 ITEM 7
Agenda Packet Page 19
-400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
Nonfarm payrolls increased by just 57,000 in June, well below the 113,000 consensus and marking a sharp slowdown from May’s pace. The unemployment rate edged down to 4.2%, though the decline was driven by a drop in labor force participation to 61.5%, its lowest level since March 2021. Revisions further weakened the report’s signal. April payrolls were revised down by 31,000 to 148,000, while May was lowered by 43,000 to 129,000, resulting in a combined two-month downward revision of 74,000.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4 ITEM 7
Agenda Packet Page 20
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
Job openings were essentially unchanged at 7.6 million in May, remaining elevated by historical standards even as hiring momentum moderates. Gains in wholesale trade and accommodation and food services were offsetby declines in health care and social assistance, as well as finance and insurance. April openings were revised down by 33,000 to 7.6 million, while hires were revised up by 99,000, highlighting ongoing churn but a broadly stable labor market backdrop.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5 ITEM 7
Agenda Packet Page 21
Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Crude oil prices declined sharply in June as supply disruptions tied to the Middle East conflict began to ease. Tanker traffic through the Strait of Hormuz normalized, and signs of progress in U.S.–Iran negotiations helped unwind the geopolitical risk premium that had driven prices higher earlier in the year. West Texas Intermediate settled near $69.37 per barrel on June 30, while Brent crude closed around $72.96, both well below their recent peaks. Brent’s 21% monthly decline marked its steepest drop since March 2020, while WTI fell more than 20%, its largest monthly loss since late 2021. Beyond crude, broader energy markets also softened. Refined product cracks narrowed as gasoline and diesel demand showed signs of seasonal moderation, while U.S. natural gas prices remained range-bound amid ample storage and steady production. Taken together, the retracement in oil and broader energy prices reflects a rapid compression in geopolitical risk premia and improved near-term supply visibility, even as underlying structural risks in the region remain unresolved.

2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot
Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot)
6 ITEM 7
Agenda Packet Page 22

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY %
Change
PCE Core Deflator YOY %
Change
Fed Target
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY %
Change
YOY (%) Change
Inflation decelerated sharply in June, with the Consumer Price Index falling 0.4% on the month—its largest decline since the onset of the pandemic in 2020—and bringing the annual rate down to 3.5% from 4.2% in May. Core CPI (excluding food and energy) was flat on the month and rose 2.6% year over year, both coming in softer than expected after energy-driven pressures pushed inflation to a three-year high earlier in the quarter. The CPI report suggests at least a near-term reprieve in inflation. However, the latest available Personal Consumption Expenditures (PCE) price index tells a firmer story: headline PCE rose 0.4% in May and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE increased 0.3% on the month and 3.4% over the year. Energy prices remained the primary driver of recent headline acceleration, reflecting supply disruptions tied to the Iranian conflict, although price volatility remains elevated.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
7 ITEM 7
Agenda Packet Page 23

0.0%

5.0%

10.0%

15.0%

20.0%
Retail Sales YOY % Change
YOY (%) Change
Retail sales presented a firmer picture of consumer spending in June, rising 0.2% on the month and 6.7% year over year, while May’s gain was revised up to 1.0%. The control group, which feeds directly into GDP, increased a solid 0.5%, suggesting demand remains more resilient than sentiment alone would indicate. Consumer confidence improved modestly, with the Conference Board’s index edging up 0.6 points to 91.2 in June. However, the headline gain obscures continued weakness in labor market perceptions,as the share of respondents reporting jobs as “hard to get” climbed to a five-and-a-half-year high. Overall, spending has remained notably more resilient than sentiment in recent months.
0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
8 ITEM 7
Agenda Packet Page 24
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) edged up 0.1% in May to 99.3, following a revised 0.2% increase in April. Despite the monthly gains, the LEI’s six- and twelve-month growth rates remained negative at -0.6% and -1.5%, respectively. The advance was driven primarily by financial components, including equity prices and the interest rate spread, while consumer expectations continuedto weigh on the index. The Chicago Fed National Activity Index fell to -0.10 in May from an upwardly revised 0.19 in April. Production-related and employment-related indicators each subtracted from the index, while the sales, orders, and inventories category made a small positive contribution.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
9 ITEM 7
Agenda Packet Page 25
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts rebounded in June, rising to a seasonally adjusted annual rate of 1.427 million—a 19% increase from an upwardly revised

1.199 million in May. The gain was driven primarily by multifamily construction, with starts surging more than 76% month over month to 532,000 units, while single-family starts edged down slightly to 895,000. Home price growth showed tentative signs of firming, as the S&P CoreLogic Case-Shiller 20-City Composite rose 1.1% year over year in April, marking its first acceleration since November 2025 and following an upwardly revised 0.9% increase in March. Meanwhile, borrowing costs remained elevated, with FreddieMac’s average 30-year fixed mortgage rate ticking up to 6.49% in June from 6.44% in May, continuing to weigh on affordability for prospective buyers.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
10 ITEM 7
Agenda Packet Page 26
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
Manufacturing activity cooled slightly in June, with the Institute for Supply Management's Manufacturing Index easing to 53.3%, down 0.7 percentage point from May but still marking a sixth consecutive month of expansion. Services activity also moderated, as the ISM Services Index eased to 54.0% from 54.5%, a twenty-fourth consecutive monthin expansion territory. Business activity and new orders both slowed, though the employment component jumpedto 51.2% from 47.9%, its strongest reading since late 2021 and the first expansion in services hiring in four months.

Source: Institute for Supply Management

PURCHASING MANAGERS INDEX (PMI)
11 ITEM 7
Agenda Packet Page 27
Components of GDP 6/25 9/25 12/25 3/26

1.7% 2.3% 1.3% 0.4%
-2.7% 0.0% 0.4% 1.4%

4.8% 1.6% -0.2% -0.4%
-0.4% 0.2% -1.2% 0.6%

0.3% 0.2% 0.2% 0.2%

3.8% 4.4% 0.5% 2.1%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real gross domestic product increased at an annualized rate of 2.1% in the first quarter of 2026, according to the Bureau of Economic Analysis’ third estimate, up from 1.6%in the prior estimate andan acceleration from 0.5% in the fourth quarterof 2025. The 0.5 percentage point upward revision was driven primarily by a downward revision to imports—which subtract from GDP—partly offset by a downward revision to consumer spending.

GROSS DOMESTIC PRODUCT (GDP)
12 ITEM 7
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Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50% to 3.75% at its June 16–17 meeting, with a unanimous 12–0 vote. This marked a notable shift from the Aprilmeeting—Jerome Powell’slast as chair—which saw four dissents in an 8–4 decision. The return to consensus under Chair Kevin Warsh signals a clear change in tone. Minutes from the June meeting are scheduled for release in early July. The June Summaryof Economic Projections reflected a more hawkish outlook. The median projection for the federal funds rate at year-end 2026 rose to 3.8%, up from 3.4%in March, before easing to 3.6% in 2027 and 3.4% in 2028. Officials also revised their inflation forecasts, with headline PCE projected at 3.6% in 2026 (from 2.7%) and core PCE at 3.3%. By contrast, median projections for real GDP growth and the unemployment rate—2.2% and 4.3%, respectively—were little changed.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
13 ITEM 7
Agenda Packet Page 29
Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Jun-26
Mar-26
Jun-25
Yield (%)
Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal.

The 2-year yield rose to 4.15% from 3.98% at the end of May, while the 10-year yield edged down to 4.44% from 4.45%. The 2s/10s spread narrowedto 29 basis points, down from 47 basis points a month earlier. The 3-month/10-year spread remained positive at roughly 64 basis points at month-end. Relativeto the 69 basis point spread at the start of 2026, the curve has flattened materially year to date, reflecting a repricing higher in front-end rates as expectations shift toward the possibility of further Fed tightening rather than easing.

BOND YIELDS
14 ITEM 7
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ACCOUNT PROFILE
15 ITEM 7
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OBJECTIVES
Investment Objectives
The investment objectives of the City of Citrus Heights are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all disbursement requirements; and third, to earn an acceptable rate of return after first considering safety of principal and liquidity.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 16 ITEM 7
Agenda Packet Page 32

STATEMENT OF COMPLIANCE
City of Citrus Heights | Account #11026 | As of June 30, 2026 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES
Max % (MV) 100.0 8.8 Compliant
Max % Issuer (MV) 30.0 8.8 Compliant
Max Maturity (Years) 5.0 2.9 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 10.3 Compliant
Max % Issuer (MV) 5.0 3.0 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

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

COLLATERALIZED TIME DEPOSITS (NON-

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

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

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 25.8 Compliant
Max % Issuer (MV) 5.0 1.2 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
17 ITEM 7
Agenda Packet Page 33

STATEMENT OF COMPLIANCE
City of Citrus Heights | Account #11026 | As of June 30, 2026 Rules Name Limit Actual Compliance
Status Notes

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

FEDERAL AGENCIES
Max % (MV) 100.0 9.7 Compliant
Max % Issuer (MV) 30.0 7.0 Compliant
Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 2 Compliant

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

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

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.3 Compliant
Max % Issuer (MV) 20.0 0.3 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

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

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 1.2 Compliant
Max % Issuer (MV) 5.0 1.2 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
18 ITEM 7
Agenda Packet Page 34

STATEMENT OF COMPLIANCE
City of Citrus Heights | Account #11026 | As of June 30, 2026 Rules Name Limit Actual Compliance
Status Notes
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

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

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 1.4 Compliant
Max % Issuer (MV) 10.0 1.4 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 42.4 Compliant
Max Maturity (Years) 5 3 Compliant
19 ITEM 7
Agenda Packet Page 35

PORTFOLIO CHARACTERISTICS
City of Citrus Heights | Account #11026 | As of June 30, 2026 Benchmark* 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 1.85 2.26 2.25
Average Modified Duration 1.75 1.87 1.87
Average Purchase Yield 4.22% 4.26%
Average Market Yield 4.15% 4.24% 3.98%
Average Quality** AA+ AA AA
Total Market Value 11,454,622 11,398,978
*Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 20 ITEM 7
Agenda Packet Page 36

SECTOR DISTRIBUTION
City of Citrus Heights | Account #11026 | As of June 30, 2026 Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 42.37% 36.66%
Corporate 25.64% 26.28%
ABS 10.37% 11.49%
Agency 9.73% 13.81%
Agency CMBS 8.89% 7.93%
Supras 1.44% 1.46%
Muni Bonds 1.25% 1.26%
Money Mkt Fd 0.31% 1.08%
21 ITEM 7
Agenda Packet Page 37

DURATION ALLOCATION
City of Citrus Heights | Account #11026 | As of June 30, 2026 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
06/30/2026 3.0% 9.8% 14.9% 23.4% 32.5% 16.4% 0.0% 0.0% 0.0% 22 ITEM 7
Agenda Packet Page 38

DURATION DISTRIBUTION
City of Citrus Heights | Account #11026 | As of June 30, 2026 Date 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
06/30/2026 3.0% 9.8% 14.9% 23.4% 32.5% 16.4% 0.0% 0.0% 0.0% 03/31/2026 6.2% 4.2% 20.7% 21.2% 29.0% 18.8% 0.0% 0.0% 0.0% 23 ITEM 7
Agenda Packet Page 39

ISSUERS
City of Citrus Heights | Account #11026 | As of June 30, 2026 Issuer Investment Type % Portfolio
United States US Treasury 42.37%
Federal Home Loan Mortgage Corp Agency CMBS 8.89%
Federal Home Loan Banks Agency 7.06%
American Express Credit Master Trust ABS 3.04%
Farm Credit System Agency 2.67%
International Bank for Recon and Dev Supras 1.44%
WF Card Issuance Trust ABS 1.32%
State of California Muni Bonds 1.25%
The Home Depot, Inc. Corporate 1.20%
Realty Income Corporation Corporate 1.13%
Bank of America Corporation Corporate 1.12%
JPMorgan Chase & Co. Corporate 1.11%
Blackrock, Inc. Corporate 1.10%
PepsiCo, Inc. Corporate 1.10%
U.S. Bancorp Corporate 1.10%
Caterpillar Inc. Corporate 1.09%
Morgan Stanley Corporate 1.09%
PACCAR Inc Corporate 1.06%
Chubb Limited Corporate 1.06%
Cisco Systems, Inc. Corporate 1.06%
BNY Mellon Corp Corporate 1.04%
Abbott Laboratories Corporate 1.04%
Chase Issuance Trust ABS 0.97%
GM Financial Auto Leasing Trust ABS 0.92%
The Goldman Sachs Group, Inc. Corporate 0.91%
Nat Rural Util Coop Fin Corp Corporate 0.89%
American Honda Finance Corporation Corporate 0.88%
Prologis, Inc. Corporate 0.88%
Deere & Company Corporate 0.80%
American Express Company Corporate 0.79%
24 ITEM 7
Agenda Packet Page 40

ISSUERS
City of Citrus Heights | Account #11026 | As of June 30, 2026 Issuer Investment Type % Portfolio
Visa Inc. Corporate 0.78%
BMW Vehicle Lease Trust ABS 0.75%
Public Service Enterprise Group Corporate 0.65%
Abbvie Inc. Corporate 0.62%
Eli Lilly and Company Corporate 0.62%
NVIDIA Corporation Corporate 0.61%
Wells Fargo & Company Corporate 0.61%
Amazon.com, Inc. Corporate 0.57%
Honda Auto Receivables Owner Trust ABS 0.55%
Bank of America Credit Card Trust ABS 0.49%
Ford Credit Auto Owner Trust ABS 0.48%
Toyota Auto Receivables Owner Trust ABS 0.48%
John Deere Owner Trust ABS 0.45%
Mercedes-Benz Auto Lease Trust ABS 0.41%
Alphabet Inc. Corporate 0.39%
Costco Wholesale Corporation Corporate 0.35%
First American Govt Oblig Fund Money Mkt Fd 0.31%
BMW Vehicle Owner Trust ABS 0.25%
Hyundai Auto Receivables Trust ABS 0.23%
GM Financial Securitized Term ABS 0.05%
Cash Cash 0.00%
TOTAL 100.00%
25 ITEM 7
Agenda Packet Page 41

QUALITY DISTRIBUTION
City of Citrus Heights | Account #11026 | As of June 30, 2026 S&P Rating Moody’s Rating Fitch Rating
Rating 06/30/2026 03/31/2026
AAA 11.79% 12.99%
AA 65.59% 61.92%
A 16.96% 18.69%
BBB 2.41% 2.42%
NA 3.25% 3.97%
Rating 06/30/2026 03/31/2026
Aaa 5.75% 7.38%
Aa 67.26% 66.17%
A 19.81% 19.00%
NA 7.18% 7.46%
Rating 06/30/2026 03/31/2026
AAA 15.74% 16.53%
AA 60.47% 60.31%
A 10.45% 8.53%
NA 13.33% 14.64%
26 ITEM 7
Agenda Packet Page 42

INVESTMENT PERFORMANCE
City of Citrus Heights | Account #11026 | As of June 30, 2026 Total Rate of Return: Inception | 04/01/2023
TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception City of Citrus Heights 0.52% 3.38% 4.68% 4.78% 4.46%
Benchmark 0.39% 2.94% 4.30% 4.37% 3.85%
*Periods over 1 year are annualized.

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index 27 ITEM 7
Agenda Packet Page 43

HISTORICAL AVERAGE PURCHASE YIELD
City of Citrus Heights | Account #11026 | As of June 30, 2026 Purchase Yield as of 06/30/26 = 4.22%
28 ITEM 7
Agenda Packet Page 44

PORTFOLIO HOLDINGS
29 ITEM 7
Agenda Packet Page 45

HOLDINGS REPORT
City of Citrus Heights | Account #11026 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
36269WAD1 GMALT 2024-2 A3 5.39
07/20/2027 4,973.16 05/07/2024

5.85%
4,972.87
4,973.07
100.09

3.93%
4,977.43

8.19 0.04%

4.37 NA/AAA
AAA

1.05 0.06
47800CAC0 JDOT 2023 A3 5.01 11/15/2027 15,240.10 04/17/2023

4.63%
15,395.47
15,256.43
100.16

4.26%
15,265.03

33.93 0.13%

8.60 Aaa/NA
AAA

1.38 0.19
58770JAD6 MBALT 2024-A A3 5.32
01/18/2028 16,780.44 05/17/2024

5.73%
16,778.48
16,779.61
100.35

4.20%
16,839.53

39.68 0.15%

59.91 Aaa/NA
AAA

1.55 0.30
891941AD8 TAOT 2023-B A3 4.71 02/15/2028 54,198.95 10/03/2023

5.68%
53,125.56
53,800.26
100.17

4.21%
54,290.01
113.46

0.48%
489.75
Aaa/NA
AAA

1.63 0.31
362583AD8 GMCAR 2023-2 A3 4.47
02/16/2028 5,351.77 04/04/2023

4.51%
5,351.62
5,351.72
100.07

4.12%
5,355.67

9.97 0.05%

3.94 Aaa/AAA
NA

1.63 0.18
47787CAC7 JDOT 2023-C A3 5.48 05/15/2028 35,316.30 09/12/2023

5.55%
35,313.88
35,315.33
100.51

4.40%
35,497.90

86.01 0.31%
182.57
Aaa/NA
AAA

1.88 0.45
362962AD4 GMALT 2025-2 A3 4.58
05/22/2028 50,000.00 05/20/2025

4.84%
49,999.17
49,999.47
100.23

4.29%
50,113.55

69.97 0.44%
114.08
NA/AAA
AAA

1.90 0.68
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 61,821.19 12/07/2023

5.10%
62,746.09
62,126.95
100.62

4.34%
62,201.39

97.37 0.55%

74.44 Aaa/NA
AAA

1.98 0.42
096912AD2 BMWLT 2025-1 A3 4.43
06/26/2028 30,000.00 06/03/2025

4.82%
29,999.34
29,999.57
100.13

4.31%
30,037.86

22.15 0.26%

38.29 NA/AAA
AAA

1.99 0.80
379965AD8 GMALT 2025-3 A3 4.17
08/21/2028 50,000.00 08/05/2025

4.18%
49,992.40
49,994.62

99.89 4.33%
49,942.60

63.71 0.44%
(52.02)
NA/AAA
AAA

2.14 0.94
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 110,000.00 09/07/2023

5.23%
109,969.51
109,986.53
100.25

3.96%
110,277.09
252.27

0.97%
290.56
NA/AAA
AAA

2.21 0.20
02582JKD1 AMXCA 2023-3 A 5.23 09/15/2026 175,000.00 09/12/2023

5.29%
174,992.18
174,999.46
100.28

3.89%
175,490.35
406.78

1.54%
490.89
NA/AAA
AAA

0.21 0.20
05594HAD5 BMWLT 2025-2 A3 3.97
09/25/2028 55,000.00 10/08/2025

4.32%
54,999.85
54,999.89

99.67 4.34%
54,821.14

36.39 0.48%
(178.75)
NA/AAA
AAA

2.24 0.97
448973AD9 HART 2024-A A3 4.99 02/15/2029 25,631.90 03/11/2024

5.05%
25,626.25
25,628.87
100.34

4.37%
25,719.82

56.85 0.23%

90.94 NA/AAA
AAA

2.63 0.51
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 27,938.52 06/04/2024

5.18%
27,934.28
27,936.13
100.51

4.33%
28,079.95

24.12 0.25%
143.82
Aaa/AAA
NA

2.66 0.56
05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 55,000.00 06/06/2024

4.93%
54,996.91
54,998.20
100.65

4.21%
55,355.03
120.51

0.49%
356.82
Aaa/AAA
NA

2.87 0.84
30 ITEM 7
Agenda Packet Page 46

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
58770YAD3 MBALT 2026-A A3 3.93
01/15/2030 30,000.00 01/13/2026

3.97%
29,994.05
29,994.71

99.21 4.40%
29,763.99

52.40 0.26%
(230.72)
Aaa/NA
AAA

3.54 1.78
34532BAG6 FORDO 2025-B A3 3.91
04/15/2030 55,000.00 09/23/2025

4.27%
54,994.07
54,995.06

99.24 4.42%
54,581.95

95.58 0.48%
(413.12)
Aaa/NA
AAA

3.79 1.60
92970QAJ4 WFCIT 2025-1 A 4.34 05/15/2030 150,000.00 02/12/2026

3.76%
151,962.89
151,633.35
100.03

4.36%
150,046.50
289.33

1.32%
(1,586.85)
NA/AAA
AAA

3.87 1.76
02582JKV1 AMXCA 2025-4 A 4.3 07/15/2030 170,000.00 11/19/2025

3.85%
172,071.88
171,595.56

99.87 4.41%
169,777.47
324.89

1.49%
(1,818.09)
NA/AAA
AAA

4.04 1.91
1,181,216.76 100.10 1,178,434.24 10.37% 2.45
Total ABS 1,177,252.34 4.67% 1,180,364.79 4.24% 2,203.55 (1,930.56) 0.92 AGENCY
3130AXU63 FEDERAL HOME LOAN BANKS

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

4.23%
202,130.00
200,278.26
100.24

3.96%
200,475.80
1,130.56

1.76%
197.54
Aa1/AA+
AA+

0.38 0.37
3130AXQL5 FEDERAL HOME LOAN BANKS

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

4.29%
203,068.00
200,481.31
100.38

3.99%
200,765.00
541.67

1.77%
283.69
Aa1/AA+
AA+

0.45 0.44
3130AVBC5 FEDERAL HOME LOAN BANKS 4.5
03/12/2027 200,000.00 04/04/2024

4.53%
199,826.00
199,958.73
100.32

4.02%
200,648.20
2,725.00

1.77%
689.47
Aa1/AA+
AA+

0.70 0.67
3133EP6K6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 03/26/2027 100,000.00 03/25/2024

4.45%
100,145.00
100,035.49
100.26

4.13%
100,258.70
1,187.50

0.88%
223.21
Aa1/AA+
AA+

0.74 0.71
3130ATUS4 FEDERAL HOME LOAN BANKS 4.25
12/10/2027 200,000.00 05/15/2023

3.66%
204,924.00
201,554.79
100.08

4.19%
200,150.00
495.83

1.76%
(1,404.79)
Aa1/AA+
AA+

1.45 1.38
3133ERDH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 04/30/2029 200,000.00 05/22/2024

4.50%
202,184.00
201,252.50
101.52

4.17%
203,049.80
1,609.72

1.79%
1,797.30
Aa1/AA+
AA+

2.83 2.61
1,112,277.00 100.49 1,105,347.50 9.73% 1.13
Total Agency 1,100,000.00 4.26% 1,103,561.09 4.07% 7,690.28 1,786.41 1.06

AGENCY CMBS
3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 147,558.64 06/07/2023

4.53%
142,192.35
146,798.52

99.47 4.18%
146,782.93
421.77

1.29%
(15.59)
Aa1/AA+
AAA

0.57 0.41
3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 100,000.00 06/08/2023

4.34%
95,808.59
98,900.80

98.76 4.25%
98,763.80
270.33

0.87%
(137.00)
Aaa/AA+
AA+

1.15 1.04
31 ITEM 7
Agenda Packet Page 47

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FBU79 FHMS K-069 A2 3.187 09/25/2027 144,088.93 06/09/2023

4.41%
137,346.02
142,219.30

98.59 4.25%
142,059.58
382.68

1.25%
(159.72)
Aa1/AAA
AA+

1.24 1.16
3137FETN0 FHMS K-073 A2 3.35 01/25/2028 75,000.00 05/24/2023

4.34%
72,082.03
74,044.74

98.48 4.31%
73,859.48
209.38

0.65%
(185.27)
Aa1/AA+
AAA

1.57 1.39
3137FG6X8 FHMS K-077 A2 3.85 05/25/2028 100,000.00 05/24/2023

4.65%
98,164.06
99,315.86

98.91 4.37%
98,908.90
320.83

0.87%
(406.96)
Aa1/AA+
AAA

1.90 1.72
3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 96,469.96 06/05/2024

4.70%
92,807.11
94,494.39

98.38 4.42%
94,905.12
303.16

0.84%
410.73
Aa1/AAA
AA+

2.49 2.22
3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 150,000.00 09/24/2024

3.79%
140,970.70
144,693.76

94.87 4.43%
142,300.35
282.50

1.25%
(2,393.41)
Aa1/AA+
AAA

2.57 2.36
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 220,254.41 --

3.94%
213,210.85
214,744.39

96.24 4.43%
211,970.42
547.33

1.87%
(2,773.97)
Aa1/AA+
AAA

2.90 2.54
992,581.70 97.72 1,009,550.57 8.89% 1.88
Total Agency CMBS 1,033,371.93 4.28% 1,015,211.76 4.34% 2,737.98 (5,661.20) 1.67 CASH
CCYUSD Receivable 443.62 -- 443.62
443.62

1.00 443.62

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
443.62 1.00 443.62 0.00% 0.00
Total Cash 443.62 443.62 0.00 0.00 0.00

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

4.98%
119,441.00
119,871.41
100.36

4.23%
120,426.96
2,000.00

1.06%
555.55
A1/AA-
NA

0.66 0.55
74456QBS4 PUBLIC SERVICE ELECTRIC AND
GAS CO 3.0 05/15/2027 75,000.00 04/18/2023

4.48%
70,921.50
74,127.21

98.99 4.19%
74,238.90
287.50

0.65%
111.69
A1/A
NA

0.87 0.85
22160KAM7 COSTCO WHOLESALE CORP 3.0
05/18/2027 40,000.00 03/17/2023

4.28%
38,067.20
39,591.55

99.09 4.06%
39,635.48
143.33

0.35%

43.93 Aa3/AA
AA

0.88 0.86
437076DB5 HOME DEPOT INC 4.875
06/25/2027 135,000.00 06/20/2024

4.92%
134,821.80
134,941.58
100.59

4.25%
135,796.77
109.69

1.20%
855.19
A2/A
A

0.99 0.87
09290DAH4 BLACKROCK INC 4.6 07/26/2027 125,000.00 07/18/2024

4.57%
125,107.50
125,036.34
100.32

4.28%
125,405.88
2,475.69

1.10%
369.54
Aa3/AA-
NA

1.07 0.94
32 ITEM 7
Agenda Packet Page 48

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
532457CP1 ELI LILLY AND CO 4.15 08/14/2027 70,000.00 08/12/2024

4.18%
69,943.30
69,978.82

99.88 4.25%
69,919.22
1,105.51

0.62%
(59.60)
Aa3/AA-
NA

1.12 1.07
24422EXZ7 JOHN DEERE CAPITAL CORP 4.65
01/07/2028 90,000.00 01/06/2025

4.66%
89,973.00
89,986.29
100.55

4.27%
90,498.78
2,022.75

0.80%
512.49
A1/A
A+

1.52 1.42
02665WFX4 AMERICAN HONDA FINANCE
CORP 4.55 03/03/2028 100,000.00 03/06/2025

4.60%
99,851.00
99,916.63

99.87 4.63%
99,873.80
1,491.39

0.88%
(42.83)
A3/BBB+
A-

1.68 1.57
00287YDY2 ABBVIE INC 4.65 03/15/2028 70,000.00 02/18/2025

4.70%
69,906.90
69,947.89
100.43

4.38%
70,301.07
958.42

0.62%
353.18
A2/A-
NA

1.71 1.53
14913UBB5 CATERPILLAR FINANCIAL SERVICES
CORP 4.1 08/15/2028 125,000.00 08/12/2025

4.07%
125,115.00
125,081.42

99.49 4.35%
124,360.50
1,936.11

1.09%
(720.92)
A1/A
A+

2.13 1.98
02079KAV9 ALPHABET INC 3.875 11/15/2028 45,000.00 11/03/2025

3.91%
44,961.30
44,969.60

99.10 4.28%
44,593.43
222.81

0.39%
(376.18)
Aa2/AA+
NA

2.38 2.23
023135CS3 AMAZON.COM INC 3.9
11/20/2028 65,000.00 11/17/2025

3.91%
64,985.70
64,988.61

98.95 4.37%
64,315.29
288.71

0.57%
(673.32)
A1/AA
AA-

2.39 2.24
46647PEU6 JPMORGAN CHASE & CO 4.915
01/24/2029 125,000.00 --

4.67%
125,488.15
125,450.36
100.49

4.53%
125,606.50
2,679.36

1.11%
156.14
A1/A
AA-

2.57 1.46
756109CW2 REALTY INCOME CORP 3.95
02/01/2029 130,000.00 09/25/2025

4.14%
129,235.60
129,404.35

98.51 4.57%
128,064.30
2,139.58

1.13%
(1,340.05)
A3/A-
NA

2.59 2.39
74340XBL4 PROLOGIS LP 4.375 02/01/2029 100,000.00 02/18/2026

3.91%
101,181.00
101,022.89

99.74 4.48%
99,744.80
1,822.92

0.88%
(1,278.09)
A2/A
NA

2.59 2.37
92826CAY8 VISA INC 3.8 02/12/2029 90,000.00 02/03/2026

3.84%
89,896.50
89,909.63

98.77 4.30%
88,897.14
1,320.50

0.78%
(1,012.49)
Aa3/AA-
NA

2.62 2.42
002824BR0 ABBOTT LABORATORIES 3.7
03/09/2029 120,000.00 02/24/2026

3.75%
119,838.00
119,854.85

98.08 4.46%
117,701.88
1,381.33

1.04%
(2,152.97)
Aa3/A+
NA

2.69 2.50
90331HPV9 US BANK NA 4.535 05/20/2029 125,000.00 06/04/2026

4.49%
124,886.25
124,888.99

99.78 4.90%
124,729.50
645.61

1.10%
(159.49)
A2/A+
A+

2.89 1.78
67066GAQ7 NVIDIA CORP 4.35 06/15/2029 70,000.00 06/15/2026

4.37%
69,967.10
69,967.49

99.70 4.46%
69,789.09
109.96

0.61%
(178.40)
Aa1/AA
NA

2.96 2.74
713448FX1 PEPSICO INC 4.5 07/17/2029 125,000.00 07/16/2024

4.52%
124,872.50
124,922.35
100.31

4.39%
125,386.75
2,562.50

1.10%
464.40
A1/A+
NA

3.05 2.69
025816EJ4 AMERICAN EXPRESS CO 4.351
07/20/2029 90,000.00 07/21/2025

4.35%
90,000.00
90,000.00

99.49 4.56%
89,539.74
1,751.28

0.79%
(460.26)
A2/A-
A

3.05 1.90
171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 120,000.00 08/22/2024

4.31%
121,780.80
121,106.15
100.49

4.48%
120,590.88
2,108.00

1.06%
(515.27)
A2/A
A

3.13 2.76
33 ITEM 7
Agenda Packet Page 49

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
61748UAK8 MORGAN STANLEY 4.133
10/18/2029 125,000.00 --

4.20%
125,030.10
125,023.18

98.64 4.70%
123,293.75
1,047.60

1.09%
(1,729.43)
A1/A-
A+

3.30 2.15
38141GD27 GOLDMAN SACHS GROUP INC

4.153 10/21/2029 105,000.00 --

4.26%
105,019.50
105,015.04

98.59 4.72%
103,519.50
847.90

0.91%
(1,495.54)
A2/BBB+
A

3.31 2.15
06406RCG0 BANK OF NEW YORK MELLON
CORP 4.026 01/22/2030 120,000.00 --

4.10%
119,961.60
119,965.81

98.61 4.50%
118,328.64
2,133.78

1.04%
(1,637.17)
Aa3/A
AA-

3.56 2.36
95000U4D2 WELLS FARGO & CO 4.182
01/23/2030 70,000.00 01/15/2026

4.18%
70,000.00
70,000.00

98.69 4.64%
69,082.44
1,284.80

0.61%
(917.56)
A1/BBB+
A+

3.57 2.35
63743HFX5

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.95
02/07/2030
100,000.00 02/20/2025

4.90%
100,220.00
100,158.85
101.05

4.63%
101,053.80
1,980.00

0.89%
894.95
A2/NA
A

3.61 3.14
06051GHQ5 BANK OF AMERICA CORP 3.974
02/07/2030 130,000.00 05/08/2026

4.67%
128,209.90
128,276.64

98.12 4.88%
127,552.10
2,066.48

1.12%
(724.54)
A1/A-
AA-

3.61 2.40
69371RT71 PACCAR FINANCIAL CORP 4.55
05/08/2030 120,000.00 05/05/2025

4.59%
119,814.00
119,856.68
100.63

4.37%
120,761.04
803.83

1.06%
904.36
A1/A+
NA

3.85 3.48
Total Corporate 2,925,000.00 4.39%
2,918,496.20
2,923,260.61

99.60 4.47%
2,913,007.92
39,727.35

25.64%
(10,252.69)

2.49 2.00

MONEY MARKET
FUND
31846V203 FIRST AMER:GVT OBLG Y 35,551.82 --

3.27%
35,551.82
35,551.82

1.00 3.27%
35,551.82

0.00 0.31%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 35,551.82 3.27%
35,551.82
35,551.82

1.00 3.27%
35,551.82

0.00 0.31%

0.00 0.00

0.00 MUNICIPAL BONDS
13063DRE0 CALIFORNIA STATE 2.5 10/01/2029 150,000.00 03/24/2025

4.33%
138,834.00
141,965.35

94.47 4.34%
141,699.60
937.50

1.25%
(265.75)
Aa2/AA-
AA

3.25 3.05
Total Municipal
Bonds 150,000.00 4.33%
138,834.00
141,965.35

94.47 4.34%
141,699.60
937.50

1.25%
(265.75)

3.25 3.05

SUPRANATIONAL
34 ITEM 7
Agenda Packet Page 50

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
100,000.00 12/17/2024

4.32%
98,079.00
98,689.19

99.00 4.20%
99,003.30
807.00

0.87%
314.11
Aaa/AAA
NA

3.30 3.03
459058LR2

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 4.125 03/20/2030
65,000.00 03/14/2025

4.20%
64,767.95
64,827.42

99.70 4.21%
64,804.22
752.24

0.57%
(23.20)
Aaa/AAA
NA

3.72 3.38
Total Supranational 165,000.00 4.27%
162,846.95
163,516.61

99.28 4.21%
163,807.52
1,559.24

1.44%
290.91

3.46 3.17

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

5.05%
148,265.63
149,831.49
100.23

3.78%
150,346.80
1,459.53

1.32%
515.31
Aa1/AA+
AA+

0.29 0.29
912828U24 UNITED STATES TREASURY 2.0
11/15/2026 250,000.00 05/18/2023

3.83%
235,195.31
248,410.47

99.28 3.96%
248,195.25
638.59

2.18%
(215.22)
Aa1/AA+
AA+

0.38 0.37
91282CEF4 UNITED STATES TREASURY 2.5
03/31/2027 250,000.00 03/24/2023

3.52%
240,556.64
248,240.25

98.89 4.01%
247,226.50
1,571.04

2.18%
(1,013.75)
Aa1/AA+
AA+

0.75 0.73
91282CKJ9 UNITED STATES TREASURY 4.5
04/15/2027 200,000.00 04/24/2024

4.80%
198,351.56
199,562.44
100.36

4.02%
200,724.60
1,893.44

1.77%
1,162.16
Aa1/AA+
AA+

0.79 0.76
91282CKV2 UNITED STATES TREASURY 4.625
06/15/2027 160,000.00 06/20/2024

4.48%
160,637.50
160,204.30
100.48

4.10%
160,770.08
323.50

1.42%
565.78
Aa1/AA+
AA+

0.96 0.93
91282CLG4 UNITED STATES TREASURY 3.75
08/15/2027 175,000.00 06/17/2025

3.96%
174,254.88
174,612.31

99.57 4.14%
174,248.03
2,465.47

1.53%
(364.29)
Aa1/AA+
AA+

1.13 1.07
91282CMW8 UNITED STATES TREASURY 3.75
04/15/2028 125,000.00 05/14/2025

4.03%
124,057.62
124,421.84

99.29 4.16%
124,111.38
986.17

1.09%
(310.47)
Aa1/AA+
AA+

1.79 1.70
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 225,000.00 03/26/2025

4.03%
222,266.60
223,351.96

99.02 4.16%
222,785.10
690.83

1.96%
(566.86)
Aa1/AA+
AA+

1.92 1.82
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 175,000.00 06/30/2026

4.14%
174,541.99
174,542.62

99.69 4.16%
174,459.95

19.02 1.54%
(82.67)
Aa1/AA+
AA+

2.00 1.90
91282CNM9 UNITED STATES TREASURY 3.875
07/15/2028 150,000.00 05/08/2026

3.90%
149,917.97
149,923.23

99.43 4.17%
149,138.70
2,681.46

1.31%
(784.53)
Aa1/AA+
AA+

2.04 1.91
91282CHX2 UNITED STATES TREASURY 4.375
08/31/2028 175,000.00 12/11/2024

4.12%
176,497.07
175,873.11
100.42

4.17%
175,738.33
2,559.02

1.55%
(134.78)
Aa1/AA+
AA+

2.17 2.02
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 250,000.00 12/08/2025

3.62%
250,957.03
250,782.40

99.01 4.17%
247,519.50

25.48 2.18%
(3,262.90)
Aa1/AA+
AA+

2.50 2.36
35 ITEM 7
Agenda Packet Page 51

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CPT2 UNITED STATES TREASURY 3.5
01/15/2029 300,000.00 01/21/2026

3.66%
298,628.91
298,830.36

98.39 4.17%
295,183.50
4,843.92

2.60%
(3,646.86)
Aa1/AA+
AA+

2.54 2.36
91282CJW2 UNITED STATES TREASURY 4.0
01/31/2029 175,000.00 04/28/2025

3.78%
176,353.52
175,931.59

99.57 4.18%
174,248.03
2,919.89

1.53%
(1,683.57)
Aa1/AA+
AA+

2.59 2.39
91282CQA2 UNITED STATES TREASURY 3.5
02/15/2029 140,000.00 02/26/2026

3.46%
140,153.13
140,135.61

98.34 4.17%
137,681.32
1,840.88

1.21%
(2,454.29)
Aa1/AA+
AA+

2.63 2.45
91282CQR5 UNITED STATES TREASURY 3.875
05/15/2029 150,000.00 06/04/2026

4.09%
149,103.52
149,125.20

99.23 4.16%
148,839.90
742.36

1.31%
(285.30)
Aa1/AA+
AA+

2.87 2.68
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 150,000.00 06/04/2026

4.11%
150,609.38
150,595.25
100.23

4.17%
150,339.90

17.32 1.32%
(255.35)
Aa1/AA+
AA+

3.00 2.79
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 150,000.00 09/18/2024

3.48%
150,972.66
150,622.78

98.40 4.17%
147,597.60
1,817.43

1.30%
(3,025.18)
Aa1/AA+
AA+

3.17 2.92
91282CFL0 UNITED STATES TREASURY 3.875
09/30/2029 150,000.00 10/23/2024

4.07%
148,705.08
149,147.02

99.09 4.17%
148,640.70
1,461.07

1.31%
(506.32)
Aa1/AA+
AA+

3.25 2.99
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 100,000.00 11/18/2024

4.32%
99,152.34
99,428.64

99.84 4.18%
99,839.80
694.97

0.88%
411.16
Aa1/AA+
AA+

3.34 3.06
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 150,000.00 01/21/2025

4.38%
148,306.64
148,808.06

99.84 4.17%
149,765.70
524.08

1.32%
957.64
Aa1/AA+
AA+

3.42 3.14
91282CGB1 UNITED STATES TREASURY 3.875
12/31/2029 200,000.00 09/22/2025

3.66%
201,710.94
201,402.75

99.02 4.18%
198,031.20

21.06 1.74%
(3,371.55)
Aa1/AA+
AA+

3.50 3.24
91282CGJ4 UNITED STATES TREASURY 3.5
01/31/2030 175,000.00 06/30/2026

4.15%
171,247.07
171,249.93

97.75 4.18%
171,069.33
2,554.90

1.51%
(180.61)
Aa1/AA+
AA+

3.59 3.28
91282CGQ8 UNITED STATES TREASURY 4.0
02/28/2030 175,000.00 03/26/2026

3.99%
175,034.18
175,031.89

99.39 4.18%
173,940.38
2,339.67

1.53%
(1,091.52)
Aa1/AA+
AA+

3.67 3.33
91282CMU2 UNITED STATES TREASURY 4.0
03/31/2030 175,000.00 03/26/2026

4.00%
174,986.33
174,987.23

99.36 4.18%
173,885.78
1,759.56

1.53%
(1,101.45)
Aa1/AA+
AA+

3.75 3.41
91282CGZ8 UNITED STATES TREASURY 3.5
04/30/2030 200,000.00 07/23/2025

3.91%
196,476.56
197,168.70

97.58 4.19%
195,156.20
1,179.35

1.72%
(2,012.50)
Aa1/AA+
AA+

3.83 3.52
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 175,000.00 06/11/2025

4.04%
174,685.55
174,752.11

99.32 4.19%
173,817.35
592.90

1.53%
(934.76)
Aa1/AA+
AA+

3.92 3.58
Total US Treasury 4,850,000.00 3.99%
4,811,625.61
4,836,973.54

99.25 4.13%
4,813,300.88
38,622.90

42.37%
(23,672.66)

2.37 2.20
36 ITEM 7
Agenda Packet Page 52

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Portfolio 11,436,619.71 4.22%
11,353,873.66
11,400,849.20

99.04 4.24%
11,361,143.66
93,478.80
100.00%
(39,705.54)

2.26 1.87
Total Market Value +
Accrued 11,454,622.45
37 ITEM 7
Agenda Packet Page 53

TRANSACTIONS
38 ITEM 7
Agenda Packet Page 54

TRANSACTION LEDGER
City of Citrus Heights | Account #11026|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 04/28/2026 3137FMCR1 125,000.00 FHMS K-093 A2 2.982 05/25/2029 97.062 4.04% (119,052.09) (274.32) (119,326.41) 0.00 Purchase 05/11/2026 06051GHQ5 130,000.00

BANK OF AMERICA
CORP 3.974
02/07/2030

98.623 4.67% (128,209.90) (1,348.95) (129,558.85) 0.00
Purchase 05/11/2026 91282CNM9 150,000.00

UNITED STATES
TREASURY 3.875
07/15/2028

99.945 3.90% (149,917.97) (1,862.57) (151,780.54) 0.00
Purchase 05/14/2026 46647PEU6 65,000.00 JPMORGAN CHASE & CO 4.915 01/24/2029 100.751 4.45% (65,488.15) (976.17) (66,464.32) 0.00 Purchase 06/05/2026 90331HPV9 125,000.00 US BANK NA 4.535 05/20/2029 99.909 4.49% (124,886.25) (236.20) (125,122.45) 0.00 Purchase 06/05/2026 91282CKX8 150,000.00

UNITED STATES
TREASURY 4.25
06/30/2029
100.406 4.11% (150,609.38) (2,747.24) (153,356.62) 0.00 Purchase 06/05/2026 91282CQR5 150,000.00

UNITED STATES
TREASURY 3.875
05/15/2029

99.402 4.09% (149,103.52) (331.69) (149,435.21) 0.00
Purchase 06/18/2026 67066GAQ7 70,000.00 NVIDIA CORP 4.35 06/15/2029 99.953 4.37% (69,967.10) 0.00 (69,967.10) 0.00 Purchase 06/30/2026 91282CHK0 175,000.00

UNITED STATES
TREASURY 4.0
06/30/2028

99.738 4.14% (174,541.99) 0.00 (174,541.99) 0.00
Purchase 06/30/2026 91282CGJ4 175,000.00

UNITED STATES
TREASURY 3.5
01/31/2030

97.855 4.15% (171,247.07) (2,537.98) (173,785.05) 0.00
Total Purchase 1,315,000.00 (1,303,023.42) (10,315.12) (1,313,338.54) 0.00 TOTAL
ACQUISITIONS 1,315,000.00 (1,303,023.42) (10,315.12) (1,313,338.54) 0.00

DISPOSITIONS
Maturity 04/28/2026 3133EPHH1 (200,000.00)

FEDERAL FARM CREDIT

BANKS FUNDING CORP

4.0 04/28/2026
100.000 3.85% 200,000.00 0.00 200,000.00 0.00
39 ITEM 7
Agenda Packet Page 55

UNITED STATES
TREASURY 3.625
05/15/2026
100.000 4.15% 100,000.00 0.00 100,000.00 0.00
Maturity 06/23/2026 3133EPNG6 (250,000.00)

FEDERAL FARM CREDIT

BANKS FUNDING CORP

4.375 06/23/2026
100.000 4.43% 250,000.00 0.00 250,000.00 0.00
Total Maturity (550,000.00) 550,000.00 0.00 550,000.00 0.00 Sale 05/08/2026 06368LAQ9 (125,000.00) BANK OF MONTREAL

4.7 09/14/2027 100.591 5.56% 125,738.75 881.25 126,620.00 2,029.85 Sale 05/08/2026 89115A2W1 (90,000.00) TORONTO-DOMINION
BANK 4.98 04/05/2027 100.797 4.98% 90,717.30 410.85 91,128.15 717.30 Sale 06/05/2026 857477CL5 (120,000.00) STATE STREET CORP

4.993 03/18/2027 100.635 4.99% 120,762.00 1,281.54 122,043.54 762.00 Sale 06/18/2026 26442CAS3 (100,000.00)

DUKE ENERGY
CAROLINAS LLC 2.95
12/01/2026

99.468 4.43% 99,468.00 139.31 99,607.31 83.41
Total Sale (435,000.00) 436,686.05 2,712.95 439,399.00 3,592.56 TOTAL
DISPOSITIONS (985,000.00) 986,686.05 2,712.95 989,399.00 3,592.56 40 ITEM 7
Agenda Packet Page 56

IMPORTANT DISCLOSURES
2026 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

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Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest.

LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds, the 30-day yield is calculated using reported daily yield data. Yield calculations are subject to change and may not be directly comparable across funds.

LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yields represent the most recently available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end. 41 ITEM 7
Agenda Packet Page 57

BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-3 Yr US Treasury & Agency
Index
The ICE BofA 1-3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 42 ITEM 7
Agenda Packet Page 58

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: August 12, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Susan Talwar, Administrative Services Director
Dena Jenkins, Finance Manger
SU
BJECT: Delegating Disbursement Authority for the California Employees Retirement Benefit Trust to Reflect Current Staff Position Titles
Recommendation
St
aff recommends that the City Council adopt Resolution No. 2026-__ amending the delegation of authority to request disbursements from the California Employees Retirement Benefit Trust to update the authorized staff position titles.

St
rategic Plan Alignment
Th
is item is in alignment with the following City Council priority:

Goal
: Maintain and Enhance Fiscal Stability While Supporting Operational Excellence Fi
scal Impact
None
. This action does not authorize any new expenditure, obligate City funds, or alter any existing contract or trust arrangement. It updates position-title references only.

Ba
ckground and Analysis
The
City Council has previously adopted resolution designating specific staff positions with authority to act on the City's behalf in two administrative areas:
● Resolution No. 2018-048 delegates authority to designated City officials, identified by position title, to request disbursements from the California Employers' Retirement Benefit Trust (CERBT) the trust used to pre-fund the City's other post-employment benefit (OPEB) obligations under GASB Statement No. 75 and to certify the purpose of those disbursements, consistent with CalPERS requirements.

The resolution identifies individuals authorized by job title rather than by name. This is standard practice, since it allows the delegation of authority to remain valid even as personnel change, without requiring Council action for every staffing change.

ITEM 8
Agenda Packet Page 59
Subject: Delegating Disbursement Authority for the California Employees Retirement Benefit Trust to Reflect Current Staff Position Titles
Date: August 12, 2026

Page 2 of 2 ends

Since the resolution was adopted, the City has undergone organizational changes that affect certain staff position titles referenced in the resolution. As a result, the position titled, Assistant to the City Manager, in the existing resolution no longer matches the City's current staffing structure and was replaced by Administrative Services Director.

This item is an operational and administrative update only. It does not change:
● The substantive authority being delegated (examination of confidential tax records; requesting CERBT disbursements);
● The underlying contracts, trust arrangements, or statutory requirements referenced in the original resolution.

The proposed updated resolution simply aligns the referenced position titles with the City's current organizational structure, ensuring that the correct current staff by title retain the authority the Council previously intended to delegate. Updating the resolution administratively, rather than leaving outdated position titles in place, reduces the risk of confusion or delay if CalPERS staff need to verify who is currently authorized to act on the City's behalf.

Attachments

1. Attachment — Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Amending the Delegation of Authority to Request CERBT Disbursements

ITEM 8
Agenda Packet Page 60
RESOLUTION NO. 2026-___

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

CALIFORNIA, AMENDING THE DELEGATION OF AUTHORITY TO REQUEST

DISBURSEMENTS FROM THE CALIFORNIA EMPLOYERS' RETIREMENT

BENEFIT TRUST
WHEREAS, the Governmental Accounting Standards Board, Statement No. 75 (GASB 75) requires accounting for future liabilities of retiree other post-employment benefits; and WHEREAS, Government Code Section 22940 establishes in the State Treasury the Annuitants' Health Care Coverage Fund for the pre-funding of health care coverage for annuitants (Pre-Funding Plan); and
WHEREAS, the California Public Employees' Retirement System (CalPERS) Board of Administration (Board) approved the establishing of the Pre-Funding Plan as a trust fund that functions within the meaning of Section 115 of the Internal Revenue Code as defined by Governmental Accounting Standards Board (GASB) Statement No. 75; and WHEREAS, CalPERS requires the governing body of a public agency, by resolution, to delegate authority to specific staff to request disbursements of funds needed for program costs; and
WHEREAS, due to organizational changes, the positions currently authorized under Resolution No. 2018-048 do not consistently match the City's current staff position titles.

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby delegate to the incumbents in the positions of City Manager and Administrative Services Director and/or Finance Manager authority to request on behalf of the Employer disbursements from the Other Post-Employment Prefunding Plan and to certify as to the purpose for which the disbursed funds will be used.

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 12
th day of August, 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

____________________________
MariJane Lopez-Taff, Mayor
ITEM 8
Agenda Packet Page 61
ATTEST:

____________________________
Amy Van, City Clerk
ITEM 8
Agenda Packet Page 62

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: August 12, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Amy Van, City Clerk
SUBJECT: Permission for Councilmember Nelson to be Absent from City Council Meetings during Parental Leave of Absence
Recommendation
It is recommended that the City Council adopt by a motion granting permission to Councilmember Kelsey Nelson to be absent from regular and special City Council Meetings through the months of August, September and October 2026 for parental leave of absence.

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

Background and Analysis
Councilmember Kelsey Nelson requests permission to take 60 days of parental leave that will likely fall in the months of August, September and October, but could be earlier or later depending on the baby’s arrival. Councilmember Nelson will inform the Mayor, City Manager, and City Clerk of her intended start date, as well as any scheduled meetings at which she anticipates being absent. During the approved period of leave, Councilmember Nelson’s absences will be considered “excused absences”.

California Government Code Section 36513(a) states the following regarding the absence of an elected City Council member, “If a city councilmember is absent without permission from all regular city council meetings for 60 days consecutively from the last regular meeting he or she attended, his or her office becomes vacant and shall be filed as any other vacancy.” As elected officials who are not employed on a full-time basis, Councilmembers are not covered by state and federal laws that require employers to provide parental leave.

While the state code establishes the timeframe for an absence, it does not define what constitutes “permission” for an absence. Currently, there is no process previously adopted in the City municipal code or the City Council Rules.

ITEM 9
Agenda Packet Page 63
Subject: Permission for Councilmember Nelson to be Absent from City Council Meetings during Parental Leave of Absence
Date: August 12, 2026

Page 2 of 2 ends

With any councilmember absence or recusal, there is the possibility of a tie (2-2) vote preventing a decision on a proposed action. The other, more remote possibility, is if there is a 4/5 votes required, which would effectively need to be unanimous. However, for most items, only a simple majority (3) is needed to take action.

ITEM 9
Agenda Packet Page 64

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: August 12, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
SU
BJECT: Agreement for Cost Sharing with the County of Sacramento for the AC Overlay Project 2025 Phase A (Madison Avenue Overlay Project) Recommendation
The
County of Sacramento (County) and the City of Citrus Heights (City) share ownership of portions of collector and arterial streets around the perimeter of Citrus Heights. Sharing of ownership extends to operations and maintenance as well as capital improvements, such as road resurfacing. In 2025, the County released bids for their AC Overlay Project 2025 Phase A, which included the shared portion of Madison Avenue from east of San Juan Avenue to Fair Oaks Boulevard. For this project, County was responsible for all facets of the construction, and through this Cost Sharing Agreement (Agreement), the City will reimburse the County for the City’s proportional share of this project (Project).

St
aff recommends the City Council adopt Resolution 2026-___, a Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute an Agreement for Cost Sharing with the County of Sacramento for the AC Overlay Project 2025 Phase A.

St
rategic Plan Alignment
Th
is item is in alignment with the following City Council priority:

Goal
: Maintain Public Infrastructure and Enhance All Modes of Transportation Fi
scal Impact
Th
ere is no additional fiscal impact on the General Fund associated with this action. The funds proposed to reimburse the County under this shared agreement will come from the city’s General Capital Fund. The current 5-Year CIP and the city’s approved biennial budget programmed $4m per fiscal year in General Capital Funds for infrastructure improvements, with a focus on pavement restoration. The total cost for the City’s portion of the Project is estimated at $1,962,276.50, based on actual bid prices and unit estimates. The city is also responsible for ITEM 10
Agenda Packet Page 65
Subject: Agreement for Cost Sharing with the County of Sacramento – Madison Avenue Overlay Project Date: August 12, 2026

Page 2 of 2 ends

reimbursing the County for its fair share of the total costs for construction management, inspections, project design and any necessary change orders. With a 10% contingency reserved for this project, the total not to exceed for the City’s share is $2,649,073.27, with a not-to-exceed of $2,700,000.00 without the City’s prior written consent. The project has not yet been completed; therefore, the actual project costs are unknown as of the date of this staff report.

Background and Analysis

Madison Avenue is an arterial corridor shared with the County of Sacramento. Under the City’s shared agreement for maintenance, County maintains standard maintenance, such as pothole repairs and traffic signal operations, however, major capital investments such as overlays or complete streets require the city’s participation. In April 2020, the city entered into a shared agreement with the County for the repaving of Madison Avenue from Dewey Drive to San Juan; and along Kenneth Avenue from Central Avenue to Oak Avenue. This work was completed in 2021, with subsequent financial contribution from the City. In 2023, City and County staff met to discuss the pavement conditions along the San Juan Avenue to Fair Oaks Boulevard stretch of Madison Avenue and determined that based on estimated quantities and cost, the immediate need for mill and fill repairs were extensive enough to justify full road resurfacing. County took the lead on all aspects of the Project, including design, environmental review, bidding, contract award, construction, construction management and inspections, coordinating with the City to incorporate certain design elements such as enhanced striping and ADA ramp reconstruction.

In general, this Project reconstructed various ADA curb access ramps, performed targeted mill and fill base repairs, constructed a full asphalt concrete overlay along all lanes of travel, and restriped lane lines, pavement legends and crosswalks. In addition to repaving the roadway, at the City’s request, the County explored options to remove the existing asphalt imbedded in the center medians along the Project stretch of Madison Avenue. The objective of this endeavor is to improve the health of the vegetation, enhance the appearance of the corridor, and reduce ambient heat attributed to asphalt surfaces. Due to the extraordinary pricing provided by the Project’s contractor, and County’s inability to contribute additional funds at this time, the work will not be completed under this Project. However, the However, County is still researching options and evaluating incorporating this work as an additive alternate for another nearby repaving project planned for 2027, at which time, the city will coordinate for financial participation.

Attachments

1. Resolution 2026-___, a Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute an Agreement for Cost Sharing with the County of Sacramento for the AC Overlay Project 2025 Phase A.

ITEM 10
Agenda Packet Page 66

RESOLUTION NO. 2026-____

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

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AGREEMENT FOR COST SHARING WITH THE COUNTY OF SACRAMENTO FOR THE AC OVERLAY PROJECT 2025 PHASE A (Project) – MADISON AVENUE FROM EAST

OF SAN JUAN AVENUE TO FAIR OAKS BOULEVARD
WHEREAS, the County of Sacramento (County) and City of Citrus Heights (City) share common roadways bordering our jurisdictions; and
WHEREAS, these common roadways serve as main thoroughfares through our communities, providing for movement of goods and services; and
WHEREAS, the County has prepared plans, specifications and estimates to complete such needed investments to address poor pavement conditions along Madison Avenue from east of San Juan Avenue to Fair Oaks Boulevard and began construction on this Project in early 2026; and WHEREAS, the County of Sacramento and the City of Citrus Heights wish to enter into a Cost Sharing Agreement (Agreement) for said Project, where the County is responsible for all activities related to this Project, including design, construction and inspection services, and the City will reimburse the County per the terms outlined in the Agreement; and WHEREAS, the City’s estimated proportionate share of the Project is not-to-exceed $2,700,000 and will be reimbursed to the County upon the Project’s completion and full reconciliation of actual costs; and
WHEREAS, the City’s financial contribution for the project will come from General Capital Funds programmed in the current 5- Year CIP and Council approved biennial budget for infrastructure investments with a focus on pavement restoration.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City of Citrus Heights, that the City Manager is hereby authorized to execute an Agreement for Cost Sharing with the County of Sacramento for the AC Overlay Project 2025 Phase A - Madison Avenue from east of San Juan Avenue to Fair Oaks Boulevard.

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 12 th day of August, 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 67

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: August 12, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
SU
BJECT: A Resolution Authorizing the Participation and Implementation of the California Uniform Public Construction Cost Accounting Act in Conformance with Public Contract Code 22010 – First Reading Recommendation
The
California Uniform Public Construct Cost Accounting Act (CUPCCAA) is a voluntary statutory program that allows public agencies to exercise alternative bidding procedures for public works projects under certain thresholds identified under Public Contract Code (PCC) §22032 and §22034. These alternative bidding procedures allow for less formal processes, saving the agency time and money when seeking cost proposals for Public Works projects.

St
aff recommends the following:
a) Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Participation and Implement of the California Uniform Public Construction Cost Accounting Act in Conformance with Public Contract Code 22010; and
b) Introduce by title only and waive first reading of Ordinance No. 2026-___, An Ordinance of the City Council of the City of Citrus Heights, California, Adding Division 6 (“Uniform Construction Cost Accounting Act”) to Article V (“Finances”) of the Chapter 2 (“Administration”) of the Citrus Heights Municipal Code.

St
rategic Plan Alignment
Th
is item is in alignment with the following City Council priorities:
• Ma
intain and Enhance Fiscal Stability While Supporting Operational Excellence • Maintain Public Infrastructure and Enhance All Modes of Transportation ITEM 11
Agenda Packet Page 68
Subject: A Resolution Authorizing the Participation and Implementation of the California Uniform Public Construction Cost Accounting Act in Conformance with Public Contract Code 22010 – First Reading Date: August 12, 2026

Page 2 of 3 ends

Fiscal Impact

There is no direct fiscal impact with this action. CUPCCAA allows for alternative procurement procedures, however, it does not result in expending or obligating funds. Staff anticipate benefiting from direct and indirect cost savings by following CUPCCAA procurement procedures

Background and Analysis

CUPCCAA was enacted to provide local agencies with streamlined accounting and bidding framework for smaller public works projects, while still achieving competitive pricing and maintaining public transparency. Under PCC §20162, general-law cities are required to follow formal competitive bidding procedures for projects exceeding $5,000. CUPCCAA is a voluntary statutory program agencies are allowed to participate in that provides alternative bidding procedures for public works projects under specified dollar limits identified in PCC §22032 and §22034. By adopting CUPCCAA, the city will be authorized to follow informal bidding procedures for most public works projects up the statutory limit (unless otherwise specified by certain grants or funding sources), currently set at $220,000. This limit is adjusted every five years and was last revised in January 2025 in accordance with AB 2192, and per PCC §22020, which requires the CUPCCAA Commission review public construction costs every five years and recommend cost limit adjustments to the State Controller for informal public contract bidding thresholds.

The City of Citrus Heights’ public works contracting and procurement is governed by the city’s municipal code and adopted purchasing policy including the City Manager’s and City Council’s approval limits, requiring compliance with PCC. Adoption of CUPCCAA would not alter these provisions or local authority limits but rather would provide alternative bidding options that may be used in conjunction with existing authority limits.

Under PCC §§22000-22045, participation in CUPCCA must be authorized by the agency’s governing body by resolution. Key provisions include:

• PCC §22030 – Election to participate in CUPCCAA and notice to the State Controller; • PCC §22032 – Establishment of dollar thresholds for force account, informal bidding and formal bidding, as adjusted annually by the State Controller; • PCC §22033 – Prohibition of piecemealing projects to evade bidding requirements; • PCC §22034 – Informal bidding procedures and award to the lowest responsible bidder.

Once adopted, CUPCCAA will allow the city to institute informal bidding procedures for eligible public works projects up the statutory limit, currently set at $220,000. Projects exceeding that amount will require formal competitive bidding. As permitted by CUPCCAA, the city may establish lists by trade of qualified contractors by issuing Requests for Qualifications (RFQ’s). Final award of any public works project shall follow Public Contract Code and be awarded based on competitive pricing and lowest responsive, responsible bid.

ITEM 11
Agenda Packet Page 69
Subject: A Resolution Authorizing the Participation and Implementation of the California Uniform Public Construction Cost Accounting Act in Conformance with Public Contract Code 22010 – First Reading Date: August 12, 2026

Page 3 of 3 ends

Upon Council’s adoption of CUPCCAA, the city is authorized to employee the following bidding procedures based on current Public Contract Code §22032 thresholds:

a) Public projects up to $75,000: May be performed by City employees (force account), negotiated contract, or purchase order.
b) Public projects up to $220,000: May be awarded using informal bidding procedures, which include solicitation of written bids from a list of qualified contractors. c) Public projects exceeding $220,000: Must be awarded using formal competitive bidding procedures.

Adoption of CUPCCAA will help the city reduce procurement timelines and costs for small and mid-size public works projects and provide enhanced flexibility in delivering routine infrastructure maintenance including facilities projects, all while maintaining transparency and price-based competition. This requested action also aligns with practices employed by peer agencies and special districts throughout the state. To date, 365 cities, towns and counties, and 1,373 school districts, community/city college districts and special districts throughout California have adopted CUPCCAA.

Attachments

1. Resolution No. 2026-___ Authorizing the Participation and Implement of the California Uniform Public Construction Cost Accounting Act in Conformance with Public Contract Code 22010

2. Ordinance of the City of Citrus Heights Adding Division 6 (“Uniform Construction Cost Accounting Act”) to Article V (“Finances”) of the Chapter 2 (“Administration”) of the Citrus Heights Municipal Code.

ITEM 11
Agenda Packet Page 70
RESOLUTION NO. 2026-___

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

CALIFORNIA, AUTHORIZING THE PARTICIPATATION AND IMPLEMENTATION OF

THE CALIFORNIA UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT IN CONFORMANCE WITH PUBLIC CONTRACT CODE 22010

WHEREAS, California Uniform Public Construction Cost Accounting Act (CUPCCAA), as provided under Public Contract Code sections 22000 et seq., establishes alternative accounting and bidding procedures for public works projects under specified dollar thresholds; and

WHEREAS, CUPCCAA allows public agencies to employ formal bidding procedures for qualifying public works projects; and

WHEREAS, CUPCCAA provides time and cost efficiency benefits for the city’s operations while maintaining transparency and competitive pricing; and

WHEREAS, adoption of the CUPCCAA will provide the City of Citrus Heights with options to utilize informal bidding procedures for eligible public works projects that meet the statutory threshold; and

WHEREAS, participation in CUPCCAA is voluntary and requires the adoption of a resolution by the governing body and notification to the State Controller’s Office pursuant to Public Contract Code section 22030; and

WHEREAS, the city may issue Requests for Qualifications to establish and maintain lists of eligible contractors by trade for informal bidding purposes, ensuring that final award of contract is based on competitive pricing consistent with CUPCCAA; and

WHEREAS, adoption of CUPCCAA requires the city to maintain an annual list of all qualified contractors by trade category, to provide notice to the eligible contractors inviting informal bids, awards contracts to the lowest responsive, responsible bidders, and avoid piecemealing projects to evade the bidding requirements; and

WHEREAS, the City Council of the City of Citrus Heights finds and determines that it is in the public interest to increase the efficiency in which the City procures construction services by adopting the alternative procedures set forth in CUPCCAA.

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

1. Pursuant to the provisions of Section 22030 of the Public Contracts Code of the State of California, the City Council of the City of Citrus Heights (“City”) hereby elects to become subject to the Uniform Public Construction Cost Accounting Act Procedures formulated by the California Uniform Public Construction Cost Accounting Commission pursuant to the provisions of Sections 22010 et seq of the Public Contract Code.

2. The City will meet the requirements prescribed in the California Uniform Public Construction Cost Accounting Commission’s Cost Accounting Policies and Procedures ITEM 11
Agenda Packet Page 71

Manual, as the same is amended and updated. The effective date the City will implement the accounting and bidding procedures is _________.

3. The City Clerk is hereby directed to forward a certified copy of this Resolution to the Controller of the State of California.

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 12th day of August, 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 11
Agenda Packet Page 72
ORDINANCE NO. 2026-___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, ADDING DIVISION 6 (“UNIFORM CONSTRUCTION COST ACCOUNTING ACT”) TO ARTICLE V (“FINANCES”) OF CHAPTER 2 (“ADMINISTRATION”) OF THE

CITRUS HEIGHTS MUNICIPAL CODE

The City Council of the City of Citrus Heights does ordain as follows:

Division 6 (“Uniform Construction Cost Accounting Act”) is hereby added to Article V (“Finances”) of Chapter 2 (“Administration”) of the City of Citrus Heights Code as follows:

SECTION 1. Division 6 (“Uniform Construction Cost Accounting Act”) is hereby added to Article V (“Finances”) of Chapter 2 (“Administration”) of the Citrus Heights Municipal Code as follows:

Division 6 - Uniform Construction Cost Accounting Act

Sec. 2-601 Purpose. The purpose of this Section is to establish procedures for public works construction projects in the City in compliance with the California Public Contract Code, Division 2, Part 1 and Division 2, Part 3, the Local Agency Public Construction Act, including the Alternate Provisions of the Uniform Construction Cost Accounting Act.

Sec. 2-602 Bidding Thresholds.

(a) Construction projects valued at the amount specified in California Public Contract Code § 22032(a) or less may be performed by City forces, by negotiated contract or by purchase order.

(b) Construction projects valued at the amount specified in California Public Contract Code § 22032(b) or less may be let to contract by informal bidding procedures, set forth in Section 8.3 below, to the lowest responsible bidder.

(c) Construction projects valued at more than the amount specified in California Public Contract Code § 22032(c) shall be let by formal bidding procedure, set forth in Section 8.4 below, to the lowest responsible bidder.

Sec. 2-603 Project Splitting. It shall be unlawful to split projects into smaller work orders or projects for the purpose of evading the provisions of this Section or applicable state laws.

Sec. 2-604 Informal Bidding Procedures.

(a) Notice inviting bids. The notice inviting bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids. Notice shall be provided in accordance with either Section 2-604 (a) or (b), or both.

(b) Notice to contractor.

ITEM 11
Agenda Packet Page 73

(1) The City shall maintain an annual list of qualified contractors, identified according to categories of work. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice inviting informal bids unless the product or service is proprietary. All mailing of notices to contractors pursuant to this division shall be completed not less than ten calendar days before bids are due.

(2) The City may elect to mail, fax, or email a notice inviting informal bids to all construction trade journals as specified in California Public Contract Code § 22036.

Sec. 2-605 Award of bids in excess of informal amount. If all the bids received are in excess of the amount specified section 2-602(c), the City Council may, by adoption of a resolution by a four-fifths vote, award the contract up to the amount specified in California Public Contract Code § 22034(d), to the lowest responsible bidder if it determines the cost estimate of the City was reasonable.

Sec. 2-606 Formal Bidding Procedures. Notices inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project.

The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City; or, if there is no newspaper printed and published within the City, in a newspaper of general circulation which is circulated within the City. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals specified in California Public Contract Code § 22036. The notice shall be sent at least 15 calendar days before the date of opening the bids. In addition, the City may also give such other notice as it deems proper, including mailing or e-mailing the notice to prospective vendors and contractors.

Sec. 2-607 Award. In both informal and formal bidding process, award shall be to the lowest responsible bidder. If two or more bids are the same and the lowest, the City may accept the one it chooses. Awards of contracts shall follow the city’s procurement policy based on the City Council’s, the City Manager’s and/or the Department Director’s signing authority and approved budgets.

Sec. 2-608 Rejection of Bids. In its discretion, the City may reject any bids presented if the City declares that the project can be performed more economically by employees of the City. Prior to rejecting any bids, the City shall furnish a written notice to an apparent low bidder informing the bidder of the City’s intention to reject the bid. Said notice shall be mailed at least two business days prior to the hearing at which the City intends to reject the bid. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates of the project, the City shall have the option of either of the following:

(a) Abandoning the project or readvertising for bids, or

(b) With the passage of a resolution by a four-fifths vote of the City Council declaring that the project can be performed more economically by the employees of the City, may have the project done by force account.

ITEM 11
Agenda Packet Page 74
Sec. 2-609 No bids. If no bids are received through the formal or informal procedure, the project may be performed by the employees of the City by force account, or by negotiated contract.

Sec. 2-610 Emergency Work
(a) Declaration of Emergency. In the case of an emergency, the City, pursuant to a four- fifths vote of the City Council, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts. The City Council, in the resolution, shall make findings that the emergency is such that it will not permit a delay which would occur from a competitive solicitation for bids, and that the action is necessary to respond to the emergency.

(b) The City Council delegates to the City Manager the authority to make an initial determination of an emergency and take any action under this section.

(c) If the City Manager orders any action pursuant to this section, the City Manager shall report to the City Council, at its next meeting, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency.

(d) Review of the Emergency.

(1) If the City Manager orders any action specified in this section, the City Council shall review the emergency action at its next regularly scheduled meeting and, except as specified below, at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four- fifths vote, that there is a need to continue the action.

(2) If the City Manager orders any action specified in this section, the City Council shall initially review the emergency action not later than seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than 14 days after the action, and at least at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action.

(3) The City Council shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.

SECTION 2. Severability. If any section, subdivision, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof.

SECTION 3. Effective Date and Notice. This ordinance shall take effect thirty (30) days after its adoption, provided it is published in full or in summary within fifteen (15) days of its adoption, in a newspaper of general circulation published and circulated in the City of Citrus Heights.

ITEM 11
Agenda Packet Page 75

PASSED AND ADOPTED by the City Council of the City of Citrus Heights this _____ day of 2026 by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
ITEM 11
Agenda Packet Page 76

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: August 12, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Amy Van, City Clerk
Danielle Jones, Administrative Assistant
SU
BJECT: Designation of Voting Delegate and Alternate(s) for the League of California Cities Annual Conference
Summary and Recommendation
Staff recommends the City Council make a motion to designate a voting delegate and up to two alternates to participate at the Annual Business Meeting on September 25, 2026 during the League of California Cities (Cal Cities) Annual Conference.

Ba
ckground and Analysis
The Cal Cities Annual Conference is scheduled for September 23-25, 2026, in Anaheim. The Annual Business Meeting will be held during the General Assembly on Friday, September 25, 2026. Consistent with Cal Cities bylaws, the City’s voting delegate and alternates must be designated by action of the City Council, no later than September 1, 2026. The voting delegate and up to two alternate(s) must be registered to attend the conference.

At
the Annual Business Meeting the Cal Cities membership considers and takes action on resolutions that establish Cal Cities policy. The City’s appointed voting delegate plays an important role during the General Assembly by representing the City and voting on resolutions.

Sixty days before the Cal Cities Annual Conference and Expo, Cal Cities members may submit policy proposals on issues of importance to cities.

The
City did not receive any information on General Resolutions from Cal Cities at the time of agenda packet publication; however, if received before the City Council meeting, staff will present the resolution(s) to the Council for discussion and determination of the City’s position.

Petitioned resolutions may be introduced during the Cal Cities Annual Conference.

In 2025, t
he City Council designated Council Member Nelson as the voting delegate and Mayor Lopez-Taff as the alternate.

ITEM 12
Agenda Packet Page 77
Subject: Designation of Voting Delegate and Alternate(s) for the League of California Cities Annual Conference
Date: August 12, 2026

Page 2 of 2 ends

Attachments

(1) 2026 Voting Delegate Information Packet
ITEM 12
Agenda Packet Page 78
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org DATE: Wednesday, May 13, 2026
TO: Ma
yors, Council Members, City Clerks, and City Managers
RE: DESI

GNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Sept. 23-25, 2026 Anaheim Convention Center
Ever
y year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Taki
ng place on Friday, Sept. 25, 2026 the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To cas
t a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

Acti
on by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

Foll
owing council action, please submit your city’s delegates through the online submission portal by Tuesday, Sept. 1, 2026. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.

Sub
mitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.

Conf
erence Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration opens June 2.

For a
city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and Council Action Advised by September 1, 2026
ITEM 12
Agenda Packet Page 79
alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Please view Cal Cities’ event and meeting policy in advance of the conference.

Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.

Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

The voting delegate desk, located in the conference registration area of the Anaheim Convention Center, will be open at the following times: Wednesday, Sept. 23, 8:00 a.m.-6:00 p.m. and Thursday, Sept. 24, 7:30 a.m.-4:00 p.m. On Friday, Sept. 25, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for submitting your voting delegate and alternates by Tuesday, Sept. 1. If you have questions, please contact Zach Seals at [email protected].

Attachments:
• Gener
al Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly ITEM 12
Agenda Packet Page 80

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.

ITEM 12
Agenda Packet Page 81
Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a member-
informed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved
1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.
2 During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f).

ITEM 12
Agenda Packet Page 82

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DAT
E: August 12, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
F
ROM: Amy Van, City Clerk
Danielle Jones, Administrative Assistant
S
UBJECT: Designation of Voting Delegate and Alternate(s) for the League of California Cities Annual Conference
Summary and Recommendation
Staff recommends the City Council make a motion to designate a voting delegate and up to two alternates to participate at the Annual Business Meeting on September 25, 2026 during the League of California Cities (Cal Cities) Annual Conference.

B
ackground and Analysis
The Cal Cities Annual Conference is scheduled for September 23-25, 2026, in Anaheim. The Annual Business Meeting will be held during the General Assembly on Friday, September 25, 2026. Consistent with Cal Cities bylaws, the City’s voting delegate and alternates must be designated by action of the City Council, no later than September 1, 2026. The voting delegate and up to two alternate(s) must be registered to attend the conference.

A
t the Annual Business Meeting the Cal Cities membership considers and takes action on resolutions that establish Cal Cities policy. The City’s appointed voting delegate plays an important role during the General Assembly by representing the City and voting on resolutions.

Sixty days before the Cal Cities Annual Conference and Expo, Cal Cities members may submit policy proposals on issues of importance to cities.

T
he City did not receive any information on General Resolutions from Cal Cities at the time of agenda packet publication; however, if received before the City Council meeting, staff will present the resolution(s) to the Council for discussion and determination of the City’s position.

Petitioned resolutions may be introduced during the Cal Cities Annual Conference.

I
n 2025, the City Council designated Council Member Nelson as the voting delegate and Mayor Lopez-Taff as the alternate.

ITEM 12
Subject: Designation of Voting Delegate and Alternate(s) for the League of California Cities Annual Conference
Date: August 12, 2026

Page 2 of 2 ends

Attachments

(1) 2026 Voting Delegate Information Packet
(2) 2026 Resolution Packet – sent to Council on 8/11/26 ITEM 12
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org DATE: Wednesday, May 13, 2026
TO: M
ayors, Council Members, City Clerks, and City Managers
RE: D

ESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Sept. 23-25, 2026 Anaheim Convention Center
Ev
ery year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Tak
ing place on Friday, Sept. 25, 2026 the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To ca
st a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

Act
ion by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

Fol
lowing council action, please submit your city’s delegates through the online submission portal by Tuesday, Sept. 1, 2026. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.

Su
bmitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.

Con
ference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration opens June 2.

For
a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and Council Action Advised by September 1, 2026
ITEM 12
alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Please view Cal Cities’ event and meeting policy in advance of the conference.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for submitting your voting delegate and alternates by Tuesday, Sept. 1. If you have questions, please contact Zach Seals at [email protected].

Attachments:
• Gen
eral Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly ITEM 12

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

ITEM 12
Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

Cal Cities policy
development is a member-
informed process,
grounded in the voices and
experiences of city officials
throughout the state.

ITEM 12

2025-2026

CAL CITIES OFFICERS
President
Gabe Quinto
Mayor
El Cerrito

First Vice President
Teresa Acosta
Council Member
Carlsbad

Second Vice President
David Cohen
Council Member
San Jose

Immediate Past President
Lynne B. Kennedy
Mayor Pro Tem,
Rancho Cucamonga

Executive Director
and CEO
Carolyn M. Coleman

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

August 10, 2026

TO: Cal Cities Members

RE: Cal Cities 2026 Resolution Packet

Sixty days before the Cal Cities Annual Conference and Expo, Cal Cities members may submit resolutions on issues of importance to cities. This year, Cal Cities received one resolution by the July 25 deadline.

The attached packet contains the proposed resolution, background information, supporting letters from cities and city officials, and an analysis of the resolution by Cal Cities. The packet includes detailed information on the resolution process and the next steps for the resolution.

We encourage each city council to consider the resolution and determine a position so your voting delegate can represent your city’s position on the resolution.

Voting Delegates: City councils must appoint a voting delegate to vote during the General Assembly. Each city may also appoint up to two alternate delegates. If your city has not already done so, please appoint your voting delegate by Tuesday, Sept. 1, 2026. The voting delegate packet contains more information.

The 2026 General Assembly will be held Friday, Sept. 25, at 8:30 a.m. in the Anaheim Convention Center during the Annual Conference and Expo.

For questions about resolutions, voting delegates, or the General Assembly, please contact Zach Seals.

ITEM 12

2026
Resolution
Packet
ITEM 12
2026 Resolution Packet
Information on 2026 Resolutions Process
Consideration by Policy Committee (pre-conference)
Per the Cal Cities bylaws, Cal Cities President Gabe Quinto has referred the submitted resolution to the Housing, Community, and Economic Development Committee. The committee will meet on Thursday, Sept. 17, at 10 a.m. via Zoom to
review the resolution and make a recommendation that will be sent to the Resolutions Committee. A public comment period will be held during the meeting. Register for the meeting here.

A list of recommendations the policy committee may make during its meeting is on page two of this packet.

Consideration by Resolutions Committee (during conference) On Thursday, Sept. 24, at 1:00 p.m. the Resolutions Committee will meet to review the resolution and the recommendation of the policy committee.

The Resolutions Committee consist of one representative from each of Cal Cities caucuses, departments, divisions, and policy committees, as well as up to ten additional appointments made by the Cal Cities President. A public comment period will be held during the meeting. Refer to the onsite conference program for the location.

A list of recommendations the Resolutions Committee may make during its meeting is on page two of this packet.

Consideration by the General Assembly (during conference) The General Assembly will convene on Friday, Sept. 25, at 8:30 a.m. to consider any resolutions the Resolutions Committee has forwarded. To vote during the General Assembly, voting delegates must have checked in at the voting delegate booth.

Conference attendees will receive materials for the General Assembly on the evening of Thursday, Sept. 24. For more information on voting and discussion procedures during the General Assembly, see page three of this packet.

Petitioned Resolutions (during conference)
The petitioned resolution is an alternate method to introduce policy proposals during the annual conference. To initiate a petitioned resolution, voting delegates from 10% of member cities must sign the petition. The resolution and signatures are due at least 24 hours before the beginning of the General Assembly. Voting delegates who have checked in at the voting delegate booth can receive more information on petitioned resolutions at the booth onsite. 1 ITEM 12

2026 Resolution Packet

Policy Committee and Resolutions Committee Actions

The submitted resolution will be heard by the policy committee to which it was assigned, and the Resolutions Committee. The table below shows what recommendations these bodies may make on the resolution.

Policy Committee Actions Resolutions Committee Actions
Approve Approve
Disapprove* Disapprove*
No Action No Action
Amend and approve

Amend and approve

Refer to appropriate policy committee
for further study*
Approve as amended
Refer as amended to appropriate
policy committee for further study*
Refer to appropriate policy committee
for further study*
Refer as amended to appropriate
policy committee for further study*
Approve with additional
amendment(s)

Additional amendments and refer to
appropriate policy committee for
further study*

*If a resolution is disapproved or referred for further study by all policy committees to which it is assigned and the Resolutions Committee, it will not proceed to the General Assembly.

2 ITEM 12

2026 Resolution Packet

General Assembly Voting and Discussion Procedures
Discussion Procedures:

Discussion procedures during the General Assembly are guided by two calendars:
the Consent Calendar and the Regular Calendar. As seen below, resolutions are calendared by the recommendations they receive from policy committees and the Resolutions Committee.

For General Resolutions:

Policy Committee
Recommendation
Resolutions Committee
Recommendation Calendar
Approve Approve Consent Calendar
Approve Disapprove or refer Regular Calendar
Disapprove or refer Approve Regular Calendar
Disapprove or refer Disapprove or refer Does not proceed to General Assembly

For Petitioned Resolutions:

Policy Committee
Recommendation Resolutions Committee Action Calendar
N/A
Approve Regular Calendar
Disapprove or Refer Regular Calendar
Disqualified Does not proceed to General
Assembly

Items on the Consent Calendar will be presented as one motion during the General Assembly from the Resolutions Committee chair. Unless an item on the Consent Calendar is set aside by the majority of the General Assembly, a vote will be taken on the whole calendar. If an item is set aside, it will be opened for discussion, followed by a vote.

Items on the Regular Calendar will be presented individually by the Resolutions Committee chair. After a recommendation is presented by the Resolutions Committee chair, the resolution will be opened for discussion by the General Assembly. A vote will take place following discussion.

Voting Procedures:

Per Cal Cities Bylaws Article XII, Sec. 2, all votes will be conducted by voice vote first. If the presiding official cannot determine the outcome, a vote will be taken by an alternative method, typically a raise of voting cards by voting delegates. A roll call vote may be called for by delegates of ten percent or more of the General Assembly.

3 ITEM 12
2026 Resolution Packet
2026 Resolution

1. Resolution No. 1 submitted by City of Murrieta
• Letters of concurrence submitted by:
i. City of Banning;
ii. City of Calimesa;
iii. City of Canyon Lake;
iv. City of Moreno Valley;
v. City of Norco;
vi. City of Torrance;
vii. Crystal Ruiz, Mayor, City of San Jacinto;
viii. Jessica Alexander, Mayor, City of Temecula
• Referred to Housing, Community, and Economic Development Committee
• Policy Committee Recommendation:
• Resolutions Committee Recommendation:
4 ITEM 12

2026 Resolution Packet

Resolution No. 1
Submitted by City of Murietta

5 ITEM 12
2026 Resolution Packet

1. A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF CALIFORNIA CITIES

CALLING FOR A WORKING GROUP TO CONSIDER A STATE CONSTITUTIONAL

AMENDMENT OR OTHER FORM OF INITIATIVE TO ENSURE FINAL LOCAL AUTHORITY OVER

HOUSING AND LAND USE DECISIONS
Source: City of Murrieta
Concurrence of five or more cities/city officials
Cities/city officials: City of Banning; City of Calimesa; City of Canyon Lake; City of Moreno Valley; City of Norco; City of Torrance; Crystal Ruiz, Mayor, City of San Jacinto; Jessica Alexander, Mayor, City of Temecula
Referred to: Housing, Community, and Economic Development Policy Committee WHEREAS, California cities have historically been responsible for adopting general plans and zoning regulations, reviewing housing development proposals, and providing or coordinating the streets, water, wastewater, public safety, parks, transportation, and other infrastructure and services necessary to support responsible, environmentally sound, and well-planned residential growth; and
WHEREAS, the League of California Cities is dedicated to protecting and expanding local control for municipalities across the state to ensure their orderly growth and development; and
WHEREAS, the League of California Cities recognizes that local zoning is a primary function of cities and an essential component of home rule, and that a city’s general plan should guide its land use planning and strategic decision-making free from pre-emption by the state; and
WHEREAS, increasingly prescriptive statewide housing mandates and development approval requirements can override locally adopted plans, zoning standards, and public review procedures without adequately accounting for differences that exist in each unique jurisdict ion in infrastructure capacity, water availability, wildfire and evacuation risks, environmental constraints, fiscal impacts, public service needs, and community priorities; and
WHEREAS, California’s housing goals can be more effectively advanced through state funding, streamlined environmental requirements, and voluntary partnerships that support housing production while preserving the authority of locally elected officials to determine how and where housing is best planned and approved; NOW, THEREFORE, BE IT RESOLVED , by the General Assembly of the League of California Cities, assembled during the Annual Conference in Anaheim, California, on September 25, 2026, that the League of California Cities support the development and advancement of a state constitutional amend ment or other legislative, policy, or ballot- based strategies that restore and strengthen local authority over housing and land use matters within municipal boundaries, including general plans, housing elements, zoning, density, design and development standards, project siting, and the approval or denial of housing development applications; and
6 ITEM 12

2026 Resolution Packet

BE IT FURTHER RESOLVED, that any constitutional amendment or alternative strategy should preserve the State’s authority to establish broad statewide housing goals and enforce constitutional and civil rights, fair housing requirements, building and life -safety standards, and gen erally applicable environmental protections, while protecting cities from state actions that compel, through funding conditions or state law, the approval of housing developments that are inconsistent with locally adopted requirements; override local zonin g or density standards; or invalidate locally adopted housing or land use decisions when a city has planned in good faith to accommodate its regional housing needs allocation and maintains adequate capacity for housing at all income levels; and

BE IT FURTHER RESOLVED, that the League of California Cities consider establishing a statewide working group or other appropriate committee(s) to evaluate and develop a proposed constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use matters including but limited to: conducting appropriate legal, fiscal, and policy analyses; engaging cities and other stakeholders; and building a statewide coalition of proponent supporters in preparation for; the November 2030 General Election, or within another reasonable time frame as determined by the working group.

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2026 Resolution Packet

Resolution No. 1: Background
Information

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2026 Resolution Packet

Background Information for Resolution

Source: City of Murrieta

Background:

California cities are responsible for planning residential growth, adopting general plans and zoning regulations, reviewing development proposals, and providing or coordinating the infrastructure and public services necessary to support new housing. Since 2010, the State has enacted more than 500 housing-related laws that have increasingly shifted housing and land use authority away from local governments. These laws have expanded by-right development, limited locally adopted standards and review processes, and established enforcement mechanisms, including the builder’s remedy, that may override local plans and zoning. Although these measures are frequently presented as solutions to housing affordability, many increase development capacity or restrict local review without delivering the meaningful production of housing needed to address the housing crisis.

At the same time, the State has continued to prioritize increased development capacity without adequately accounting for the infrastructure, public services, economic realities, and safety measures necessary to support housing growth.

State mandates often fail to reflect local conditions, including roadway and utility capacity, water availability, wildfire exposure, environmental limitations, fiscal impacts, and the availability of essential services. Cities are consequently required to accommodate additional housing while receiving no funding or assistance to address the resulting infrastructure and service demands.

Local elected officials are directly accountable to the residents who experience the effects of development decisions and are responsible for balancing housing production with infrastructure capacity, public safety, environmental protection, fiscal sustainability, and community needs. Cities of all types in California have been grappling with this dynamic, ranging from urban to rural, coastal to inland, small to large, northern to southern, voicing concerns to legislative representatives with minimal responsiveness. This is an issue of statewide concern that needs the strength and diversity of the League of California Cities to pursue a long-term solution.

The proposed resolution directs the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions. The working group would be tasked with developing a more balanced framework that preserves the State’s role in establishing broad housing goals and enforcing constitutional, civil rights, fair housing, building, life-safety, and environmental requirements, while restoring meaningful local authority to allow cities to determine how statewide housing 9 ITEM 12

2026 Resolution Packet
objectives should be implemented in a manner that reflects local conditions and community priorities while continuing to support responsible housing production.

As the primary statewide organization representing California cities, the League is uniquely positioned to lead this effort. Its established policy, legal, legislative, communications, and advocacy networks enable it to convene municipalities, evaluate potential strategies, conduct legal and fiscal analyses, build consensus, engage stakeholders, and coordinate with statewide decision-makers. League leadership would help ensure that any recommendation reflects the collective interests of California municipalities and would provide the credibility, organizational capacity, and statewide reach necessary to advance a viable strategy.

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2026 Resolution Packet

Resolution No. 1: Letters of
Concurrence

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July 23, 2026

President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814

Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority

Dear President Quinto,

The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot -based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and

25. The resolution would direct the League to convene a working group to evaluate potential approaches for addressing the increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of Can yon Lake, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,

Arron Brown
City Manager
City of Canyon Lake
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July 23, 2026

President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814

Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority

Dear President Quinto,

The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and 25. The resolution would direct the League to convene a working group to evaluate potential approaches to address increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of Moreno Valley, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,

Brian Mohan
City Manager
City of Moreno Valley

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July 22, 2026

President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814

Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority

Dear President Quinto,

The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and 25. The resolution would direct the League to convene a working group to evaluate potential approaches for addressing the increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of the Norco, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,

Kevin Bash
City Council Member
(951) 768-8981
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July 23, 2026

Mr. Gabe Quinto, President
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814

Subject: Support for the City of Murrieta's Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority

Dear President Quinto:

I am writing in my individual capacity as Mayor of the City of Temecula to express my strong support for the City of Murrieta's proposed resolution for consideration by the General Assembly of the League of California Cities at the 2026 Annual Conference.

The proposed resolution presents an important opportunity to thoughtfully evaluate the appropriate balance between California's statewide housing objectives and the constitutional principle of local governance. Establishing a statewide working group to examine a potential constitutional amendment, legislative reforms, or other policy initiatives will provide a meaningful forum to assess how local authority over housing and land use decisions can be strengthened while continuing to address the State's housing challenges.

Cities are uniquely positioned to understand the needs, opportunities, and constraints of their communities. Local elected officials are accountable to the residents they serve and are best equipped to make land use decisions that reflect a community's character, infrastructure capacity, economic development goals, environmental stewardship, and long-term vision. Equally important, local governments bear the primary responsibility for protecting public safety. Decisions regarding housing density, transportation, emergency access, wildfire preparedness, evacuation routes, police and fire service capacity, water availability, and critical infrastructure are inherently local matters that require the knowledge and judgment of those who serve their communities every day.

While the State has an important role in addressing California's housing needs, a collaborative approach that respects local expertise and preserves meaningful local discretion will produce stronger, safer, and more sustainable communities. The proposed working group offers an opportunity to evaluate policies that achieve these shared objectives while restoring an appropriate balance between state direction and local authority.

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Mr. Gabe Quinto, President
League of California Cities
July 23, 2026

Page 2 ends

Although this letter reflects my personal position and is not an official action or policy of the City of Temecula or the Temecula City Council, I respectfully endorse the City of Murrieta's submission of this resolution and encourage its favorable consideration by the League of California Cities General Assembly.

Thank you for your leadership and your thoughtful consideration of this important issue.

Respectfully,

Jessica Alexander
Mayor, City of Temecula
Signing in her individual capacity
and not on behalf of the City of Temecula
or the Temecula City Council.

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2026 Resolution Packet

Resolution No. 1: Staff Analysis

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League of California Cities Staff Analysis on Resolution No. 1

Staff: Brady Guertin, Legislative Advocate
Committee: Housing, Community, and Economic Development

Summary:

Resolution No.1 states that the League of California Cities (Cal Cities) will:

1. Support the development and advancement of a state constitutional amendment or legislative, policy, or ballot-based strategy that restores and strengthens local authority over housing and land use matters, including general plans, housing elements, zoning, density, design and development standards, project siting, and the approval or denial of housing development applications.

Pursuant to the resolution, the strategy should preserve the state’s authority to set broad, statewide housing goals and enforce civil rights, fair housing, building safety, and environmental standards while protecting local control by preventing the state from compelling the approval of developments that conflict with local requirements, override local zoning or density standards, or overturn local land use decisions where a city has planned for and maintained sufficient capacity to meet its housing obligations.

2. Consider establishing a statewide working group or other appropriate committee(s) to evaluate and develop a proposed constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use matters.

The resolution states: “conducting legal, fiscal, and policy analyses; engaging cities and other stakeholders; and building a statewide coalition of proponent supporters in preparation for the November 2030 General Election, or within another reasonable time period.”

Background:

As provided in the background information, the city of Murrieta is sponsoring this resolution in response to concerns over state laws that have increasingly reduced city discretion over housing and land use decisions, including legislation that requires ministerial or by-right approvals for housing projects, limits the application of local development standards, and strengthens state enforcement mechanisms against local governments.

Additionally, the city of Murrieta, in its background information, maintains that these legislative efforts have not resulted in sufficient housing production to address California's housing shortage and have not adequately accounted for 24 ITEM 12
local infrastructure, public service needs, public safety, market, and fiscal considerations.

The resolution states that California’s housing goals are better advanced through state funding, streamlined environmental requirements, and voluntary partnerships, while preserving local authority over how and where housing is best planned and approved.

Consideration of the resolution may be informed by a brief examination of how the California Constitution allocates authority between the state and cities with respect to land use decisions.

The constitution grants cities the power to adopt local laws to protect the public’s health, safety, and welfare. This grant is called the “police power,” which is the basis for local land use regulation. The constitution grants charter cities the additional power to adopt local laws affecting “municipal affairs.” This power, commonly referred to as “home rule,” is based on the principle that a city, rather than the state, is in the best position to identify and satisfy the needs of the local community.

The constitution’s broad grant of police power contains a significant limitation.

Local law adopted under the police power is not valid if it “conflicts” with state law. A local law “conflicts” with state law when it regulates the same “field” in which the Legislature has stated its intent to occupy. In that case, state law is said to “preempt” the local law and it cannot be enforced.

An ordinance adopted by a charter city under the municipal affairs power cannot be enforced if it affects a “matter of statewide concern.” The subjects that have been identified as “matters of statewide concern” have changed over the years due to economic, social, and political circumstances.

Since the 1960s, the state has enacted numerous laws that limit or preempt aspects of local land use and zoning authority. These laws include the Fair Employment and Housing Act, Housing Element Law, Housing Accountability Act, Density Bonus Law, Permit Streamlining Act, accessory dwelling unit laws, California Environmental Quality Act, and others. In recent years, the state has enacted several laws that Cal Cities was the leading opposition force against, as many of the proposals pre-empted local land use authority, limited public review, and constrained local flexibility. In support of its housing and land use legislation, the Legislature has cited a statewide housing crisis and the need for increased housing production at all income levels while asserting that a uniform approach to local land use decision-making is required.

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Discussion:

The resolution does not prescribe a specific policy mechanism. The eight letters in support recommend creating a working group or committee to evaluate potential approaches, including legislative proposals, constitutional amendments, or ballot initiatives to strengthen local authority over housing and land use matters.

A discussion of a strategy to restore and strengthen local authority over housing and land use matters will need to consider the California Constitution’s framework for both preemption of police power enactments and municipal affairs, discussed above. It will also need to determine whether changes to the California Constitution will be proposed, and whether they constitute an amendment or a revision, which require different processes.

A constitutional revision is a multistep process blending legislative consensus, voter support, and on occasion, a constitutional convention. It requires significant public engagement.

A constitutional amendment would require a ballot initiative, which includes gathering enough valid signatures to qualify for the ballot, building large coalitions to support election efforts, and campaigning to voters to support the initiative. This process can involve significant costs. In the last major election for ballot initiatives in 2024, proponents spent $8-$18 million to qualify for the ballot and spent nearly $700 million for the full election cycle, averaging out to about $100 million per ballot initiative.

Cal Cities has been engaged in ballot advocacy for over 20 years. In the early 2000s, Cal Cities developed a ballot advocacy infrastructure that included forming an issue political action committee, fundraising, establishing a network of regional managers, and building a coalition with other organizations to ultimately advocate on a ballot measure. Ballot advocacy requires the approval of the Board of Directors with a supermajority vote.

In the Legislature, Cal Cities plays an active and influential role to ensure that local flexibility and autonomy in the land use and housing space is maintained by engaging on dozens of bills every legislative session to ensure that cities' voices are heard at the state Capitol. Below, you will find Cal Cities “Existing Policy” on local control, housing, and land use policies.

Fiscal Impact
The resolution itself would not have a significant direct fiscal impact. However, depending on what actions follow, the fiscal costs could be significant.

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Existing Cal Cities Policy
Vision
To be recognized and respected as the leading advocate for the common interests of California's cities.

Mission Statement
To expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians.

We Believe
• Local self-governance is the cornerstone of democracy. • Our strength lies in the unity of our diverse communities of interest. • In the involvement of all stakeholders in establishing goals and in solving problems.
• In conducting the business of government with transparency, openness, respect, and civility.
• The spirit of honest public service is what builds communities. • Open decision-making that is of the highest ethical standards honors the public trust.
• Cities are vital to the strength of the California economy. • The vitality of cities is dependent upon their fiscal stability and local autonomy.
• The active participation of all city officials increases the League's effectiveness.
• Partnerships and collaborations are essential elements of focused advocacy and lobbying.
• Ethical and well-informed city officials are essential for responsive, visionary leadership and effective and efficient city operations.

Zoning
Cal Cities believes local zoning is a primary function of cities and is an essential component of home rule. The process of adoption, implementation and enforcement of zoning ordinances should be open and fair to the public and enhance the responsiveness of local decision-makers. State policy should leave local siting and use decisions to the city and not interfere with local prerogative beyond providing a constitutionally valid procedure for adopting local regulations. State agency siting of facilities, including campuses and office buildings, should be subject to local notice and hearing requirements in order to meet concerns of the local community. Cal Cities opposes legislation that seeks to limit local authority over parking requirements.

Housing Element
Housing issues should be addressed in the general plan as other planning issues are. The housing element should be prepared for the benefit of local 27 ITEM 12
governments and should have equal status with the other elements of the general plan.

Encourage Full Community Participation
Foster an open and inclusive community dialogue and promote alliances and partnerships to meet community needs.

Well-Planned New Growth
Recognize and preserve open space, watersheds, environmental habitats, and agricultural lands, while accommodating new growth in compact forms, in a manner that:
• De-emphasizes automobile dependency;
• Integrates the new growth into existing communities;
• Creates a diversity of affordable housing near employment centers; • Provides job opportunities for people of all ages and income levels.

Support:

The following letters of concurrence were received:

City of Banning
City of Calimesa
City of Canyon Lake
City of Moreno Valley
City of Norco
City of Torrance
Crystal Ruiz, Mayor, City of San Jacinto
Jessica Alexander, Mayor, City of Temecula
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Citrus Heights City Council MeetingsAugust 12, 2026

Citrus Heights City Council Meetings
August 12, 2026