Fairfield City Council
January 21, 2025

Popular Annual Financial Report for FY 2023-2024
Financial and Budgetary Information

Major Revenue Sources (Continued)

Sales Taxes - Sales and local sales transaction taxes are the City’s other major sources of revenue. The sales tax rate in Fairfield is 8.375%. Of this, 1% is the "local" or City share and 1% reflects the local use tax. In California, sales tax performance for FY 23 -24 saw a decline of 1.3%. The City of Fairfield also experienced a decline in sales tax that totaled 2.9% for FY 23 -24, with decreases of 8% and 5% in general consumer goods and autos and transportation industry groups respectively. Measure P also saw a decline in FY 23 -24. The chart above shows the change in sales tax for the past 10 years reflecting an average growth of 4%.

-3%
3%
15%
13%
-2%
6%
2%
-2%
8%
2%
4%
-5% 0% 5% 10% 15% 20%
23-24
22-23
21-22
20-21
19-20
18-19
17-18
16-17
15-16
14-15
Average
14

Popular Annual Financial Report for FY 2023-2024
Financial and Budgetary Information

Financial Long Term Outlook – Other Funds

Wa
ter Funds

The last water rate increase went into effect in 2021. A water master plan is currently underway which will address future capital projects, align operation costs, address debt coverage ratios, and drive potential rate changes in the future. Continued capital needs are being addressed utilizing reserve funds.

Golf Funds

The total number of taxable rounds increased at the City’s golf courses by 3.9% during the past fiscal year. Additionally, the change in operations now includes restaurant revenue and provide an overall increase in revenue of 30%. Overall expenditures grew at a similar rate, also accounting for the increased cost related to restaurant operations. For the fourth consecutive year, the courses did not require additional support from the City. Golf course bonds were paid off in July 2023. The golf courses are going to continue utilizing the excess working capital to address deferred maintenance needs and ensure the courses continue to operate without the assistance of the General Fund.

Transit

Fairfield added a new transportation mode called
microtransit early in FY 23 -24 to better meet
Fairfield’s current transportation needs and hedge
against unsustainable service cost inflation.

California’s farebox recovery requirements have
been deferred due to the COVID -19 pandemic with
no set date for reinstatement. Forecast risks include
decreased funding and continued increases in
operating costs.

15

Popular Annual Financial Report for FY 2023-2024
Financial and Budgetary Information

Financial Long-Term Outlook – Other Funds (Continued)

I
nternal Service Funds

These funds account for many services provided to all departments within the City, including the funding for insurance and compensated absences. Since the City is self-insured, it is prudent to fund a portion, or all the liability owed over time so other funds are not heavily affected in any year. The City’s Worker’s Compensation and General Liability funding needs significantly increased due to the number and size of claims and settlements. The General Liability Fund specifically was impacted by the performance of the City’s insurance pool which also is seeing an increased number and size of claims and settlements that resulted in a one -time assessment and increased premiums to address the funding needs. The City’s Compensated Absences liability also continues to grow due to the addition of more staffing, compounded by labor contract cost of living adjustment increases applied to those outstanding balances. It is currently 32% funded. See Notes 11 and 15 in the City’s FY 23 -24 Annual Comprehensive Financial Report for the actuarial assumptions used. The major self -insurance liabilities, other post -employment benefits (OPEB), and compensated absences with their corresponding funding reserves as of June 30, 202 4, are listed below:

(1, 2) The cash reserve represents the cash in the City’s OPEB fund at June 30, 202 4. The liability represents the actuarial accrued liability (as presented in the Required Supplementary Information). (3) Represents available cash in these specific funds at June 30, 202 4. Does not include other insurance fund balances that do not relate to Workers’ Compensation, General Liability, or OPEB.

Workers'
Compensation
General
Liability
Other Post-
Employment
Benefits (OPEB)(1,2)
Compensated
Absences
(Governmental
Activities only) Combined
Cash Reserve(3) $10,347,898 $468,550 $342,115 $7,237,572 $18,396,135 Actuarial Liability $12,277,000 $6,970,000 $115,873 $22,521,855 $41,884,728 % of Liability Funded 84% 7% 295% 32% 44%
16

Popular Annual Financial Report for FY 2023-2024
Financial and Budgetary Information

Cash and Investments

The City's investments listed below are in accordance with City's investment policy, which emphasizes the safety, liquidity and return of its investments. The portion of the portfolio not invested in the State Local Agency Investment Fund (LAIF) is invested with the City’s two investment advisors, Public Financial Management (PFM) and Chandler Asset Management (Chandler). The City also held $ 7 million in bank balances and $ 8 million in bond reserves in its California Asset Management Program (CAMP) portfolio as of 6/30/2 024. See Note 4 in the City’s FY 23-24 ACFR for additional information regarding the City’s investments.

Grand Percent
Summary by Maturity LAIF CA MP Chandler PFM Total of Total 0-1 month 9,465,002$ 87,051,691$ 981,741$ 943,417$ 98,441,851$ 25% 1-12 months 36,633,161 14,111,885 50,745,046 13%
1-2 years 32,405,203 61,228,426 93,633,629 24%
2-3 years 30,947,994 73,404,772 104,352,766 26%
3-4 years 20,615,244 519,011 21,134,255 5%
4-5 years 28,537,740 631,943 29,169,683 7% Total Market Value 9,465,002$ 87,051,691$ 150,121,083$ 150,839,454$ 397,477,230$ 100% Total Amortized Cost 9,500,000 87,051,691 153,330,279 151,990,637 401,872,607 Amount Market Value Over / (Under) Cost (34,998)$ -$ (3,209,196)$ (1,151,183)$ (4,395,377)$ Estimated GASB 31 YTD Market Value Entry 169,817$ -$ 2,973,143$ 3,564,945$ 6,707,905$ 1.67% % of Portfolio 2.4% 21.9% 37.8% 37.9% 100.0%
Average Maturity (years) 0.60 0.11 2.31 1.91 1.64
Money Market Funds
Grand Percent
Summary by Instrument Type LAIF CAMP Chandler PFM Total of Total Agencies 2,310, 407$ 29,987,325$ 11,162,855$ 43,460,587$ 11% Treasury 5,387,479 87,585,084 102,041,495 195,014,058 49% Medium Term Notes (MTN) 36,914 30,636,979 30,497,347 61,171,240 15% Certificate of Deposits (CDs) 1,090,368 6,194,340 7,284,708 2% Commercial Paper (CP) 620,904 620,904 0%
Supranationals 1,204,426 1,204,426 0%
Money Market (MM) / Other 18,930 87,051,691$ 707,269 943,417 88,721,307 23% Total Market Value 9,465,002$ 87,051,691$ 150,121,083$ 150,839,454$ 397,477,230$ 100% Yield to Maturity 4.48% 5.43% 3.02% 4.24% 4.05%
Trailing 12 month yield 3.92% 5.49% 2.63% 3.57% 3.56%
Money Market Funds Investment Managers
17

Popular Annual Financial Report for FY 2023-2024
Financial and Budgetary Information

Long-Term City Bonded Debt and Obligations

The City maintains strong credit ratings on all its debt, with Standard and Poor’s assigning an AA rating to its Pension Obligation Bonds (AAA is the highest rating). The graph below illustrates the City’s long- term obligations (in millions).

The City’s net OPEB liability, which covers retiree health and dental expenses, stands at $115,873. To address this, the City allocated $3.0 million to an internal service fund and established an irrevocable trust in March 2018 to help reduce this liability. The net OPEB liability is tied to a closed plan with 22 members, based on an actuarial study assuming a long- term return rate of 5.25%. Health costs are expected to increase annually from 5.9% until they stabilize at 3.9%, while dental costs are projected to rise at an annual rate of 3%. For further details on the City’s net OPEB liability, refer to Note 15 in the City’s FY 23-24 Annual Comprehensive Financial Report.

The City’s long-term debt and obligations for governmental activities rose during FY 23 -24, reaching an outstanding balance of $303 million as of June 30, 2024. This includes an $18 million increase in net pension liability due to CalPERS’ negative investment returns in FY 22 -23. Meanwhile, long- term obligations for business -type activities decreased by $5 million in FY 23 -24, totaling $123 million, due to regular debt payments throughout the year. For a detailed listing of the City’s outstanding obligations, see Notes 8, 9, 10, 11, and 14 in the City’s FY 23 -24 Annual Comprehensive Financial Report. 2024 2023 2024 2023 2024 2023 General Obligation Bonds 5$ 6$ 5$ 6$ Pension Obligation Bonds 24 25 24 25 Utility-Water Revenue Bonds 92$ 95$ 92 95 Recreational Revenue Bonds 1 - 1 Total City Bonded Debt 29 31 92 96 121 127 Compensated Absences 22 22 3 3 25 25 Claims and Judgments 19 15 19 15 Leases and Subscriptions 12 5 12 5 Net Pension Liability 221 203 28 29 249 232 Total City Obligations 274 245 31 32 305 277 Total City Debt and Obligations 303$ 276$ 123$ 128$ 426$ 404$ Governmental Activities Business-Type Activities
Summary of Long-Term City Bonded Debt and Obligations (in millions) Total
1%
6%
22%
0%
6%
4%
3%
58%
General Obligation Bonds
Pension Obligation Bonds
Utility-Water Revenue Bonds
Recreational Revenue Bonds
Compensated Absences
Claims and Judgments
Leases and Subscriptions
Net Pension Liability
Long Term City Debt and Obligations by Type
18

Popular Annual Financial Report for FY 2023‐2024
Financial and Budgetary Information

Capital Assets

For FY 23‐24, the value of the City’s capital assets at cost before depreciation was $1.1 billion, with the changes detailed by category in the table below. Major capital projects in FY 23‐24 include:

 HSIP Cycle 9 Adaptive Signal
Control ‐ $3.3 million

 Waterman Ozone
Improvements ‐ $2.1 million

 HSIP Cycle 9 HAWK Signal ‐ $1.4 million

 3 Electric Buses ‐ $3.7 million

Asset Type
Original Cost as
Reported
6/30/2024 %  of Total
Net Additions
(Deletions) for
Fiscal Year
Annual
Depreciation
at Cost
Governmental Activities
Land / Work in Progress 55,858,143 $    5% (13,746,042)$      N/A Buildings  / Improvements 316,843,060     27% 22,543,045          7,650,974 Vehicles  and Equipment 62,577,559      5% 1,441,816             4,112,569 Infrastructure
Streets 196,252,684    17% 4,481,920             4,223,676 Storm Drains 51,393,722      4% 1,155,267             905,954 Sewer Pipes/Pump  Stations 17,869,399      2% 1,005,601             309,072 Streetlights/Traffic  Signals 29,349,819      3% 446,406                4 75,547 Bridges/Retention  Basins 31,105,369      3% 387,611                527,083 Right‐to‐use Assets 19,348,238      2% 10,054,892          3,106,655 Total Governmental Activities 780,597,993        66% 27,770,516          21,311,530 Business‐type Activities
Water Utility 248,639,669    21% 5,115,055             6,893,376 North Bay Treatment Plant (NBR) 68,914,056      6% 1,234,059             1,662,159 Transit 32,272,477      3% 6,295,509             563,456 Golf  31,842,676      3% (80,510)                 315,470 Total Business‐type Activities 381,668,878        33% 12,564,113          9,434,461 Total Capital Assets 1,162,266,871    40,334,629$        30,745,991$ Less Accumulated Depreciation (619,438,971)
Net Capital Assets 542,827,900$
19

Popular Annual Financial Report for FY 2023‐2024
Financial and Budgetary Information

Capital Improvement Plan

The  City’s adopted  Capital  Improvement  Program  (CIP)  for  FY  23‐24  and  FY  24‐25  totals  $95.7  million  and  $93.7 million,  respectively.  The  CIP  is  designed  to  address  community  needs,  with  a  particular  focus  on  projects  that enhance  the  City’s economic  vitality  and  quality  of  life.  Key  projects  include  Fire  Stations  39  and  36,  Police Department expansion, a
nnual street pavement maintenance, water ozone improvements, West Texas Water Main Replacement, high lift pumps and power upgrades, corporation yard electrification, as well as improvements to Allan Witt Park, Linear Trail, and other community and neighborhood parks.

20

1 Indepe
ndent Auditor’s Report on Compliance with
Ordinance 2012-20 (Measure P Transactions and Use Tax)
To the Cit
y Council
City of Fairfield, California
We ha
ve audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California, (City) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 12, 2024.

In co
nnection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of Ordinance 2012-20 approved by the City Council on November 6, 2012, insofar as they relate to the collection, management and expenditure of Measure P sales taxes in the City’s general fund. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced terms, provisions, or conditions of the Ordinance, insofar as they relate to accounting matters.

This re
port is intended solely for the information and use of the City Council, Audit Committee and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Sacrame
nto, California
December 12, 2024
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1 Indepe
ndent Auditor’s Report on Compliance with
Ordinance 1994-08 and 2002-27 (Utility Users Tax)
To t
he City Council
City of Fairfield, California
We ha
ve audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California, (City) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 12, 2024.

In co
nnection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of Ordinance 1994-08 approved by the City Council on May 17, 1994, and Ordinance 2002-27 approved by the City Council on November 5, 2002, insofar as they relate to the collection of utility users taxes in the City’s general fund. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced terms, provisions, or conditions of the Ordinance, insofar as they relate to accounting matters.

This re
port is intended solely for the information and use of the City Council, Audit Committee and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Sacrame
nto, California
December 12, 2024
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CityÊofÊFairfield,ÊCalifornia
TransportaƟonÊEnterpriseÊand
CapitalÊProjectsÊFunds
AnnualÊFinancialÊReport
WithÊIndependentÊAuditor’sÊReportsÊonÊtheÊFinancialÊStatementsÊ andÊonÊComplianceÊThereon
ForÊtheÊYearsÊEndedÊJuneÊ30,Ê2024ÊandÊ2023

City of Fairfield, California
Transportation Enterprise Fund & Capital Projects Fund
Annual Financial Report
For the Years Ended June 30, 2024 and 2023
Table of Contents
i
P
AGE
Ta
ble of Contents i
C
ity Council and Elected Officials ii
Management Leadership Team iii
I
ndependent Auditor’s Report 1
Bas
ic Financial Statements:

T
ransportation Enterprise Fund:

Statements of Net Position 6
Statements of Revenues, Expenses and Changes in Net Position 7 Statements of Cash Flows 8
T
ransportation Capital Projects Fund:

Balance Sheets 9
Statements of Revenues, Expenditures and Changes in Fund Balance 10 N
otes to the Financial Statements 11
R
equired Supplementary Schedule (unaudited):

Transportation Enterprise Fund:

Schedule of the Transportation Enterprise Fund’s Proportionate Share of the City’s Miscellaneous Plan Net Pension Liability 24

Transportation Enterprise Fund:

Schedule of the Contributions 25
S
upplementary Schedule (unaudited):

Transportation Enterprise Fund:

Schedules of Operating Expenses by Function 26
I
ndependent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on Audit of Financial Statement Performed in Accordance with Government Auditing Standards, the Transportation Development Act, California Government Code 8879.55, and Senate Bill 88 (2007) 27

City of Fairfield
City Council and Elected Officials
ii

Catherine Moy Pam Bertani Mayor Vice Mayor-District 6

K. Patrice Williams Scott Tonnesen Doug Carr Councilmember-District 1 Councilmember-District 2 Councilmember-District 3

Rick Vacarro Doriss Panduro Councilmember-District 4 Councilmember-District 5

Karen Rees Arvinda Krishnan City Clerk City Treasurer

City of Fairfield
Management Leadership Team
iii

David Gassaway John Sturdee John Furtado
City Manager Fire Chief Director of Finance

David Lim Farbod Pirouzmand Sanjay Mishra
City Attorney Director of Human Resources Director of Public Works

David Zellers Dan Marshall LaTanna Jones
Director of Community Police Chief Director of Housing Services Development

Kristina Kaunzinger Savita Chaudhary
Director of Parks and Assistant City Manager/
Recreation Director of Information
Technology

iv

1 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, the Transportation Development Act , California Government Code §8879.55, and State Senate Bill 88 (2007) To the City Council
City of Fairfield, California
W
e have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City of Fairfield, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s Transportation Development Act Article 4 and 8 Program’s (TDA Program) basic financial statements and have issued our report thereon dated December 12, 2024. Our report includes an emphasis of matter paragraph noting that the financial statements present only the Transportation Capital Projects Fund and the Transportation Enterprise Fund and do not purport to and do not present fairly the financial positi on of the City as of June 30, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of de ficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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2 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying Schedule of Findings and Responses as item 2024-001 that we consider to be a significant deficiency.

R
eport on Compliance and Other Matters
A
s part of obtaining reasonable assurance about whether the TDA Program's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the applicable provisions of §6666 and §6667 of Title 21, Chapter 3, Subchapters 2 of the California Code of Regulations, California Government Code §8879.55 (Public Transportation Modernization, Improvement, and Service Enhancement Account), and California State Senate Bill 88 (2007) et seq., noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or §6666 and §6667 of Title 21 of the California Code of Regulations, California Government Code §8879.50 and California State Senate Bill 88(2007), et seq.

C
ity’s Responses to Findings
G
overnment Auditing Standards requires the auditor to perform limited procedures on the City’s responses to the findings identified in our audit and described in the accompanying Schedule of Findings and Responses. The City’s responses were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the responses.

P
urpose of this Report
T
he purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

S
acramento, California
December 12, 2024

City of Fairfield, California
TDA Programs
Schedule of Findings and Responses
For the Year Ended June 30, 2024
3 2024-001 Systems Access Reviews
Type of Finding: Significant Deficiency in Internal Control over Financial Reporting C
riteria:

M
anagement is responsible for establishing a system of internal controls to prevent individuals having inappropriate access to systems or records within their accounting system. This includes having controls in place to review the systems access granted to individuals to ensure that those individuals are only granted the access they require for their position and assigned responsibilities, removing access when those individuals no longer require it, and reviewing the assigned access for conflicts with segregation of duties.

C
ondition:

Th
ere was no documentation of the review of user access in Tyler to verify the appropriateness of permissions based on their role and job duties. We corroborated with City employees that a review was performed, but there was no documentation of the review and the results of the review.

C
ause:

T
he City’s procedures do not include documenting the results of its periodic review of user access in Tyler.

E
ffect:

B
y not reviewing the user access in Tyler, there is an increased risk of individuals having inappropriate access and conflicting segregation of duties which increases the risk of fraud or error occurring within the accounting system and not being identified by management.

R
ecommendation:

W
e recommend that management formally document their periodic review of users and their access granted in Tyler to ensure that their current assigned access in appropriate for their position and responsibilities.

V
iews of Responsible Officials:

T
he City hired an expert to review all permissions and build a robust workflow model, this review and implementation was completed in November 2024, and while the city has consistently been reviewing permissions in the past there were too many changes made over the course of the first year of implementation to formally document. When the City conducts future periodic reviews, the process will be documented to reflect the outcome of the review.

City of Fairfield, California
TDA Programs
Summary Schedule of Prior Audit Findings
For the Year Ended June 30, 2024
4 2023-001 Systems Access, Security and Segregation of Duties Type of Finding: Material weakness in Internal Control over Financial Reporting S
tatus:

P
artially implemented. See current year finding 2024-001. 20 23-002 Prior Period Adjustment, Manual Adjustments and Chart of Accounts for Financial Reporting Type of Finding: Material weakness in Internal Control over Financial Reporting S
tatus:

C
orrected.

5

City of Fairfield
Transportation Enterprise Fund
Statements of Net Position
June 30, 2024 and 2023

6 20242023Assets:Current AssetsCash and cash equivalents (Note 1)3,165$ Accounts receivable:California Department of Transportation647,832$ - Metropolitan Transportation Commission7,323,346 1,211,142 Federal Transit Administration2,315,458 540,491 Interest and other receivables47,277 203,050 Total current assets10,333,913 1,957,848 Noncurrent Assets Capital assets (Notes 1 and 2):Buildings and improvements5,413,858 5,413,858 Equipment26,768,970 20,473,461 Subscription software89,649 89,649 Less: accumulated depreciation and amortization(24,498,251) (23,934,795) Total capital assets7,774,226 2,042,173 Total noncurrent assets7,774,226 2,042,173 Total assets18,108,139 4,000,021 Deferred Outflows of Resources:Deferred outflows related to pensions (Notes 1 and 8)758,167 1,054,146 Total deferred outflow of resources758,167 1,054,146 Liabilities:Current LiabilitiesAccounts payable and other current liabilities1,417,157 508,757 Due to the City of Fairfield (Note 3)6,304,012 74,404 Unearned revenue (Note 4)- 400,478 Due to Metropolitan Transportation Commission (Note 3)2,485,926 804,028 Compensated absences (Note 5)6,341 8,509 Subscriptions - due within one year (Notes 5 and 6)29,254 28,674 Total current liabilities10,242,690 1,824,850 Noncurrent LiabilitiesCompensated absences (Note 5)120,477 161,672 Net pension liability (Note 8)3,000,009 3,479,127 Subscriptions - due in more than one year (Notes 5 and 6)- 29,254 Total noncurrent liabilities3,120,486 3,670,053 Total liabilities13,363,176 5,494,903 Deferred Inflows of Resources:Deferred inflows related to pensions (Notes 1 and 8)339,084 - Total deferred inflow of resources339,084 - Net Position:Net investment in capital assets7,744,972 1,984,245 Unrestricted(2,580,926) (2,424,981) Total net position (deficit)5,164,046$ (440,736)$

The notes to the financial statements are an integral part of these statements.

City of Fairfield
Transportation Enterprise Fund
Statements of Revenues, Expenses, and Changes in Net Position For the Years Ended June 30, 2024 and 2023

7 20242023Operating Revenues:Charges for services397,710$ 529,127$ Miscellaneous50,979 62,488 Total operating revenues448,689 591,615 Operating Expenses:Operations6,334,620 5,956,506 Vehicle maintenance2,223,606 2,184,626 General and administrative2,080,101 2,167,341 Depreciation and amortization563,456 788,868 Total operating expenses11,201,783 11,097,341 Operating income (loss)(10,753,094) (10,505,726) Nonoperating Revenues (Expenses):Interest expense(1,172) (875) Local Transportation Funds7,030,879 6,415,884 State Transit Assistance Funds328,636 1,046,353 Federal Transit Administration3,658,810 2,569,612 Gain (loss) on disposition of capital assets (Note 2)190 (1,210,402) Other revenue (expense)(919,113) (627,298) Total nonoperating revenues (expenses)10,098,230 8,193,274 Income (loss) before capital contributions(654,864) (2,312,452) Capital Contributions:Local Transportation Funds1,816,068 329,802 State Transit Assistance Funds29,107 16,929 California Department of Transportation Funds1,469,827 - Federal Transit Administration2,980,507 - Total contributions6,295,509 346,731 Transfers Out:Transfers out for City's pension obligation debt service(35,863) (38,748) Total transfers out(35,863) (38,748) Change in net position5,604,782 (2,004,469) Net Position (Deficit):Beginning of year(440,736) 1,563,733 End of year5,164,046$ (440,736)$

The notes to the financial statements are an integral part of these statements.

City of Fairfield
Transportation Enterprise Fund
Statements of Cash Flows
For the Years Ended June 30, 2024 and 2023

8 20242023Cash Flows from Operating Activities:Receipts from customers and users604,461$ 620,457$ Payments to suppliers(5,000,147) (5,635,686) Payments to employees(1,095,198) (1,191,732) Payments for interfund services used(3,522,000) (3,471,881) Net cash provided by (used for) operating activities(9,012,884) (9,678,842) Cash Flows from Noncapital Financing Activities:Grants4,647,828 16,893,054 Proceeds from interfund loan6,304,012 74,404 Repayment of interfund loan(74,404) (7,346,708) Transfers out(35,863) (38,748) Net cash provided by (used for) noncapital financing activities10,841,573 9,582,002 Cash Flows from Capital and RelatedFinancing Activities:Proceeds from sale of capital assets190 46,300 Purchases of capital assets(5,802,264) (349,481) Capital contributions4,000,066 437,724 Cash paid for subscription liabilities-principal portion(28,674) (28,971) Cash paid for subscription liabilities-interest portion(1,172) (875) Net cash provided by (used for) capital and related financing activities(1,831,854) 104,697 Cash Flows from Investing Activities:Investment income paid- (4,692) Net cash provided by (used for) investing activities- (4,692) Net increase (decrease) in cash and cash equivalents(3,165) 3,165 Cash and Cash Equivalents:Beginning of year3,165 - End of year-$ 3,165$ Reconciliation of Operating Income (Loss) to net Cash Provided by Operating Activities:Operating income (loss)(10,753,094)$ (10,505,726)$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:Depreciation and amortization expense563,456 788,868 Pension expense417,049 509,637 Decrease in accounts receivable155,772 28,842 (Increase) in deferred outflows related to pensions(261,104) (345,686) Increase (decrease) in accounts payable 908,400 (141,076) Increase (decrease) in compensated absences(43,363) (13,701) Total adjustments1,740,210 826,884 Net cash provided by (used for) operating activities(9,012,884)$ (9,678,842)$

The notes to the financial statements are an integral part of these statements.

City of Fairfield
Transportation Capital Projects Fund
Balance Sheets
June 30, 2024 and 2023

9 20242023Assets:Accounts receivable-$ -$ Total assets-$ -$ Liabilities and Fund Balance:Liabilities:Due to the City of Fairfield (Note 3)-$ -$ Total liabilities- - Fund Balance:Unassigned- - Total liabilities and fund balance-$ -$

The notes to the financial statements are an integral part of these statements.

City of Fairfield
Transportation Capital Projects Fund
Statements of Revenues, Expenditures, and Changes in Fund Balance For the Years Ended June 30, 2024 and 2023

10 20242023Revenues:Federal Transit Administration143,962$ -$ Total revenues143,962 - Expenditures:Capital outlay143,962 - Total expenditures143,962 - Net change in fund balanceFund Balance:Beginning of year- - End of year-$ -$

The notes to the financial statements are an integral part of these statements.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
11 Note 1 Summary of Significant Accounting Policies ................................................................................12 Note 2 Capital Assets .......................................................................................................................16 Note 3 Due to Metropolitan Transportation Commission (MTC) / City of Fairfield .......................................17 Note 4 Unearned Revenue ................................................................................................................17 Note 5 Long Term Obligations ...........................................................................................................17 Note 6 Subscription-based Information Technology Agreements (SBITAs) ..................................................18 Note 7 Fare Revenue Ratio ................................................................................................................18 Note 8 Pension Plan .........................................................................................................................19 Note 9 Contingent Liabilities ............................................................................................................. 23 Note 10 Risk Management ................................................................................................................. 23

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
12 Note 1 Summary of Significant Accounting Policies
The Transportation Enterprise Fund has provided transit services in the City of Fairfield (City) since August 1975, when the demand responsive Dial-A-Ride Transit (DART) service was initiated with a fleet of small vans. Fixed route service was initiated in 1980 and consolidated with Suisun City’s transit system from 1989 to 2022, operating as Fairfield and Suisun Transit (FAST). Suisun City chose to implement their own microtransit service beginning in 2023. Today, the City’s transit system only services the City of Fairfield and is still known as FAST.

FAST is responsible for operating the following programs:
 Five general public fixed routes (“FAST”)
 Two on-demand microtransit zones (“FAST Connect”)
 Americans with Disabilities Act (ADA) paratransit service for residents living within Fairfield City limits (“FAST Connect ADA”)
 Local Reduced Fare Taxi Program for residents 60 years and older living within Fairfield City limits  FAST participates in an Intercity Taxi Program for ADA-certified residents of Solano County that is administered by the Solano Transportation Authority
FAST also operated an intercity Solano Express routes under a contract with the Solano Transportation Authority (STA), originally implemented in July 2018. The Blue Line provided service between Sacramento and the Pleasant Hill BART station. In September 2021, the STA Board moved to a single operator for all Solano Express lines, and Solano County Transit (SolTrans) was decided as the sole operator. FAST ceased operating the Blue Line in August 2022 during FY 2022-2023.

Implementation of New GASB Pronouncements – In fiscal year 2023-2024, the City implemented the following new accounting standards in order to conform to the following Governmental Accounting Standards Board (GASB) Statements:

GASB Statement No. 99 – In April 2022, the GASB issued Statement No. 99, Omnibus 2022, The objectives of this Statement are to enhance comparability in accounting and reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement No. 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The statement did not have a material effect on the financial statements.

GASB Statement No. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The Statement did not have a material effect on the financial statements.

Basis of Accounting - The Transportation Enterprise Fund, a proprietary fund, is accounted for using the full accrual basis of accounting. Under this method of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
13 Note 1 Summary of Significant Accounting Policies (continued) The Transportation Capital Projects Fund is accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available to finance expenditures of the current period and expenditures are generally recognized when the related fund liabilities are incurred. Revenues are considered to be available if they are received within 90 days after year-end, except for grants, which is one year. Revenue from grants are recognized in the fiscal year in which all eligibility requirements have been satisfied.

Annual Financial Statements - The financial statements of the Transportation Enterprise Fund are intended to reflect only the financial position of the transit operations, results of its operations, and cash flows in conformity with generally accepted accounting principles. The financial statements of the capital projects fund are intended to reflect only the financial position and results of construction projects. Both financial statements are not intended to represent the financial position of the City of Fairfield as a whole. The City applies all applicable GASB pronouncements to these financial statements. In addition to the Transportation Development Act (TDA), the City participates in a number of federally assisted grant programs through the Federal Transit Administration (FTA).

These federally assisted programs are subject to the reporting requirements under the Single Audit Act in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and a separate report is prepared.

Transportation Enterprise Fund - This fund is used to account for the operations and management of the City’s transit operations, which are primarily supported by TDA and FTA funding.

Transportation Capital Projects Fund - This fund is used to account for transportation capital projects, which allocate TDA, FTA, and State and Regional funding towards capital improvement projects.

Net Position - The net position of the Transportation Enterprise Fund consists of the net capital assets it currently uses for day to day operations of the transit system. All restricted funding from other agencies are applied first, before the City’s local funding source is utilized.

Statement of Cash Flows - For purposes of the cash flow statement, the City considers all pooled cash and investments of the Transportation Enterprise Fund as cash and cash equivalents.

Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents - The cash is held by the City as part of its pooled cash and investments. The pooled funds are invested in accordance with the City's investment policy established pursuant to state law. All monies not required for immediate expenses are invested or deposited to earn maximum yield consistent with safety and liquidity. Interest income is allocated to the fund based on its proportionate share of the pool. Refer to the City's Annual Comprehensive Financial Report for disclosures of cash and investments and related risk categorization.

Capital Assets - Capital assets capitalized in the Transportation Enterprise Fund are valued at historical cost (except for right-to-use subscription assets, the measurement of which is discussed in Note 7). Depreciation is computed using the straight line method over the estimated useful lives of thirty years for buildings, ten years for building improvements and five to twelve years for equipment.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
14 Note 1 Summary of Significant Accounting Policies (continued) Deferred Outflows/Inflows of Resources - In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources , represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Amounts reported as deferred outflows of resources and deferred inflows of resources are related to the Transportation Enterprise Fund’s proportion of the City’s Miscellaneous Pension Plan and will be recognized in pension expense in future periods.

Long Term Obligations Compensated Absences - The liability for compensated absences includes the unused vacation leave, sick leave, and compensatory time off and personal leave, which are accrued as earned.

Pensions - For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, information about the fiduciary net position of the City of Fairfield’s California Public Employees Retirement System (CalPERS) Miscellaneous Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Refer to the City's Annual Comprehensive Financial Report Note 14 and Note 6 of this report for additional disclosures of pension plans.

Subscription-Based Information Technology Arrangements (SBITAs) - The City determines if an arrangement is a Subscription-Based Information Technology Arrangement (SBITA) at inception.

Right-to-use subscription assets are recognized at the commencement date and represent the City’s right to use the underlying subscription IT asset for the subscription term. Right-to-use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at or before the commencement date of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription IT asset into service. Right-to-use subscription IT assets are amortized in a systematic and rational manner over the shorter of the subscription term or useful life of the underlying asset. City policy has set the capitalization threshold for reporting right-to use subscription IT assets at $50,000.

Subscription Liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments are discounted based on an incremental borrowing rate determined by the City.

The City recognizes payments for short-term Subscription-Based Information Technology Arrangements with a subscription term of 12 months or less as expenses as incurred, and these arrangements are not included as subscription liabilities or right-to-use subscription assets on the statements of net position.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
15 Note 1 Summary of Significant Accounting Policies (continued) Transportation Development Act (TDA) - The State of California established the TDA to provide funds for public transportation. The TDA created Local Transportation Funds (LTF) around the State for the transportation purposes specified in the Act for various transportation agencies. Revenues of the LTF are derived from a 1/4 of one percent sales tax collected in each county, including Solano County. The City's LTF is administered by Solano County in collaboration with the Metropolitan Transportation Commission (MTC). The City has obtained funds from the LTF for transit operations and capital needs. The TDA projects are administered by the City. Articles of the TDA under which the City operates are:
1) Article 4 - funds operation and capital outlays for the public transportation systems in California. 2) Article 8 - funds service provided to elderly and handicapped persons under a contract between the City and MV Transportation.
3) State Transit Assistance Funds – Beginning in 1980, these funds were derived from a statewide sales tax on diesel fuel and the revenue-based funds can be used for the operations and capital needs.

Federal Transit Administration (FTA) - The FTA has awarded operating, capital and planning grants to the City under various sections of the Urban Mass Transportation Act of 1964 and the amended Federal Transit Act of 1993. Sections of the FTA under which the City received funds are:
1) Section 5307 - Federal funds for operating and capital support of public transportation system. 2) Section 5339 - Federal funds to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities.
3) Other competitive grant programs offered by FTA
State and Regional Funding - Below are the other funding sources received to support the operations and capital needs of the public transportation system:
1) The Low Carbon Transit Operations Program (LCTOP) is one of several programs that are part of the Transit, Affordable Housing, and Sustainable Communities Program established by the California Legislature in 2014 by Senate Bill 862. The LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emission and improve mobility, with a priority on serving disadvantaged communities. Approved projects in LCTOP will support new or expanded bus or rail services, expand intermodal transit facilities, and may include equipment acquisition, fueling, maintenance and other costs to operate those services or facilities, with each project reducing greenhouse gas emissions. For agencies whose service area includes disadvantaged communities, at least 50 percent of the total moneys received shall be expended on projects that will benefit disadvantaged communities. Senate Bill 862 continuously appropriates five percent of the annual auction proceeds in the Greenhouse Gas Reduction Fund (Fund) for LCTOP, beginning in 2015-

16. 2) State Transportation Assistance - State of Good Repair (STA - SGR) - The Road Repair and Accountability Act of 2017, Senate Bill (SB) 1 (Chapter 5, Statues of 2017), signed by the Governor on April 28, 2017, includes a program that will provide additional revenues for transit infrastructure repair and service improvements. This investment in public transit will be referred to as the State of Good Repair program. This program provides funding of approximately $105 million annually to the State Transit Assistance (STA) Account. These funds are to be made available for eligible transit maintenance, rehabilitation and capital projects.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
16 Note 2 Capital Assets
Capital assets for the Transportation Enterprise Fund are as follows as of June 30, 2024 and 2023:

Balance Balance
July 1, 2023 Additions Deletions 6/30/2024
Depreciable capital assets:

Building and improvements 5,413,858$ 5,413,858$
Communication equipment 1,817,745 1,817,745
Transportation equipment 18,636,913 6,295,509$ 24,932,422 Office equipment 18,803 18,803
Total depreciable capital assets 25,887,319 6,295,509 -$ 32,182,828 Accumulated depreciation:

Building and improvements (4,378,399) (130,375) (4,508,774) Communication equipment (1,801,421) (2,418) (1,803,839) Transportation equipment (17,712,443) (398,875) (18,111,318) Office equipment (13,430) (2,686) (16,116)
Total accumulated depreciation (23,905,693) (534,354) - (24,440,047) Total depreciable capital assets, net 1,981,626 5,761,155 - 7,742,781 Right-to-use amortizable capital assets:

Subscription software 89,649 89,649
Total right-to-use amortizable capital assets 89,649 - - 89,649 Accumulated amortization:

Subscription software (29,102) (29,102) (58,204)
Total accumulated amortization (29,102) (29,102) - (58,204) Total right-to-use amortizable capital assets, net 60,547 (29,102) - 31,445 Total net capital assets 2,042,173$ 5,732,053$ -$ 7,774,226$ Balance Balance
July 1, 2022 Additions Deletions* 6/30/2023
Depreciable capital assets:

Building and improvements 5,413,858$ 5,413,858$
Communication equipment 1,800,816 16,929$ 1,817,745 Transportation equipment 26,474,077 329,802 (8,166,966)$ 18,636,913 Office equipment 18,803 18,803
Total depreciable capital assets 33,707,554 346,731 (8,166,966) 25,887,319 Accumulated depreciation:

Building and improvements (4,241,016) (137,383) (4,378,399) Communication equipment (1,800,816) (605) (1,801,421)
Transportation equipment (23,830,215) (619,092) 6,736,864 (17,712,443) Office equipment (10,744) (2,686) (13,430)
Total accumulated depreciation (29,882,791) (759,766) 6,736,864 (23,905,693) Total depreciable capital assets, net 3,824,763 (413,035) (1,430,102) 1,981,626 Right-to-use amortizable capital assets:

Subscription software 86,899 2,750 89,649
Total right-to-use amortizable capital assets 86,899 2,750 - 89,649 Accumulated amortization:

Subscription software (29,102) (29,102)
Total accumulated amortization - (29,102) - (29,102)
Total right-to-use amortizable capital assets, net 86,899 (26,352) - 60,547 Total net capital assets 3,911,662$ (439,387)$ (1,430,102)$ 2,042,173$ *In September 2021, the Solano Transportation Authority (STA) board decided Solano County Transit (SolTrans) would serve as the sole operator for all Solano Express lines. Due to this transition, FAST ceased operating the Blue Express line and transferred four buses to SolTrans at no cost during FY 2022-2023. The four buses were originally purchased for $2,350,848 in September 2018. At the date of the transfer in August 2022, the assets had a net book value of $1,430,102. The assets were removed from the City’s books, resulting in a loss on disposition of capital assets for FY 2022-2023.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
17 Note 3 Due to Metropolitan Transportation Commission (MTC) / City of Fairfield The Transportation Enterprise Fund reflects a payable back to MTC as of June 30, 2024 and 2023, in the amount of $2,485,926 and $804,028, respectively, to be deposited into the City of Fairfield’s LTF account. This money will be available for future transit operations and capital projects.

The Transportation Enterprise Fund reflects a payable back to the City of Fairfield as of June 30, 2024 and 2023, in the amount of $6,304,012 and $74,404, respectively. This is a short-term advance for financial statement purposes due to pending grant receipts, where a one-day, non-interest bearing borrowing from the City of Fairfield is recorded as of June 30th and repaid the following day.

Note 4 Unearned Revenue
The City received various funding for certain capital projects which are eligible but have yet to be completed at the end of the fiscal year. Funding includes Low Carbon Transit Operations Program and the State of Transportation – State of Good Repair. As of June 30, 2024, there was no unearned revenue for the Transportation Enterprise Fund and as of June 30, 2023, the unearned revenues for the Transportation Enterprise Fund were $400,478, which was used to fund various equipment and projects, as noted below. 2024 2023
Beginning balance 400,478$ 330,124$
Additions:

LCTOP 1,100,094 44,775
STA-SGR 42,664 20,953
Interest earned 19,936 8,168
Total additions 1,162,694 73,896
Reductions:

Bus and bus equipment (29,107) (3,542)
Electric infrastructure (1,534,065)
Total reductions (1,563,172) (3,542)
Ending balance -$ 400,478$
Transportation Enterprise Fund
Note 5 Long Term Obligations
The following is a summary of the long-term obligation transactions of the Transportation Enterprise Fund for the year ended June 30, 2024:

Balance Incurred or Satisfied or Balance Due within More than 7/1/2023 Issued Matured 6/30/2024 One Year One Year
Compensated absences 170,181$ 167,515$ 210,878$ 126,818$ 6,341$ 120,477$ Net pension liability 3,479,127 443,610 922,728 3,000,009 3,000,009 Subscriptions 57,928 28,674 29,254 29,254
Total long term obligations 3,707,236$ 611,125$ 1,162,280$ 3,156,081$ 35,595$ 3,120,486$ Balance Incurred or Satisfied or Balance Due within More than 7/1/2022 Issued Matured 6/30/2023 One Year One Year
Compensated absences 183,882$ 84,257$ 97,958$ 170,181$ 8,509$ 161,672$ Net pension liability 1,873,582 1,911,973 306,428 3,479,127 3,479,127 Subscriptions 86,899 28,971 57,928 28,674 29,254
Total long term obligations 2,144,363$ 1,996,230$ 433,357$ 3,707,236$ 37,183$ 3,670,053$

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
18 Note 6 Subscription-based Information Technology Agreements (SBITAs) As of year-end June 30, 2024, the City had entered into a subscription for the use of Swiftly software, with a term of three years. As of June 30, 2024, the value of the subscription liability outstanding is $29,254. The City is required to make annual fixed payments, and this subscription has an interest rate of 2.0237%. The right-to-use subscription asset is recognized as a Capital Asset (see Note 2), and the value of the right-to-use subscription asset as of June 30, 2024 is $89,649, with accumulated amortization of $58,204.

The future principal and interest subscription payments as of June 30, 2024, were as follows:

Fiscal Year Ending Principal Interest Total
2025 29,254$ 592$ 29,846$
Totals 29,254$ 592$ 29,846$
Note 7 Fare Revenue Ratio
Under the Transportation Development Act, the Transportation Enterprise Fund is required to maintain a ratio of fare revenue to operating expense of at least 20% for the fixed route service and specialized services combined.

The specialized service includes Local Special Fare Assistance, which consists of TDA collected from other local governmental agencies to run the Solano County inter-city taxi program and is included for the purpose of calculating the fare revenue ratio. Due to the impact on fares from the Covid-19 pandemic, the 20% fare revenue ratio requirement was waived for FY 23-24 and FY 22-23 (by Assembly Bill No 125). The calculation of the fare revenue for the fiscal year ended June 30, 2024 and 2023 is as follows:

Fixed Specialized
Route Service Total
Operating income
Passenger fares 289,957$ 107,753$ 397,710$
Miscellaneous 44,158 6,821 50,979
Total operating income 334,115$ 114,574$ 448,689$
Operating expenses 7,615,155$ 3,586,628$ 11,201,783$ Less: Depreciation/amortization (491,386) (72,070) (563,456) Adjusted operating expenses 7,123,769$ 3,514,558$ 10,638,327$ Fare revenue ratio 4.69% 3.26% 4.22%
Fixed Specialized
Route Service Total
Operating income
Passenger fares 435,259$ 93,868$ 529,127$
Miscellaneous 62,488 - 62,488
Total operating income 497,747$ 93,868$ 591,615$
Operating expenses $9,338,034 $1,759,307 11,097,341$
Less: Depreciation/amortization (747,661) (41,207) (788,868) Adjusted operating expenses 8,590,373$ 1,718,100$ 10,308,473$ Fare revenue ratio 5.79% 5.46% 5.74%
2024
2023

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
19 Note 8 Pension Plan
A. General Information about the Pension Plan
The Transportation Enterprise Fund participates in the City’s Miscellaneous Pension Plan by sharing the costs related to the pension plan with the City for eligible employees. All plan information described below pertains to the overall plan for the City.

Plan Description – The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple-employer system that acts as a common investment and administrative agent for participating public entities within the state of California. All qualified permanent and probationary employees of the Transportation Enterprise Fund are eligible to participate in the City’s Miscellaneous Plan. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

Benefits Provided - CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Classic miscellaneous members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPRA miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:

Classic Plan Tier II PEPRA
Hire Date Prior to 8/26/2012 On or After 8/26/2012 On or After 1/1/2013 Formula 2.7% @ 55 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-55 52-67
Monthly benefits, as a % of annual salary 2.0% to 2.7% 2.0% to 2.5% 1.0% to 2.5% Required employee contribution rates 10.50% 10.50% 7.75% Required employer contribution rates 38.360% 38.360% 40.860% Miscellaneous
Contributions - Section 20814(c) of the California Public Employees’ Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for the City’s Miscellaneous Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rates of employees.

For the year ended June 30, 2024 and 2023, the Transportation Enterprise Fund’s proportionate share of the City’s contribution to the City’s Miscellaneous Plan was $261,104 and $345,686, respectively.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
20 Note 8 Pension Plan (continued)
B. Net Pension Liability
As of June 30, 2024 and 2023, the Transportation Enterprise Fund reported a liability of $3,000,009 and $3,479,127, respectively, for its proportionate share of the City's net pension liability. The June 30, 2024 net pension liability of the City’s Miscellaneous Plan was measured as of June 30, 2023 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023. The Transportation Enterprise Fund’s proportion of the City's net pension liability was based on the Transportation Enterprise Fund’s fiscal year 2023 actual contributions to the City's pension plan relative to the total contribution of the City’s Miscellaneous Plan.

The June 30, 2023 net pension liability of the City’s Miscellaneous Plan was measured as of June 30, 2022 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022. The Transportation Enterprise Fund’s proportion of the City's June 30, 2022 net pension liability was based on the Transportation Enterprise Fund’s fiscal year 2022 actual contributions to the City's pension plan relative to the total contribution of the City’s Miscellaneous Plan.

At June 30, 2024 and 2023, the Transportation Enterprise Fund’s proportion of the City’s Miscellaneous Plan was 2.24% and 2.74% respectively.

Actuarial Assumptions - The total pension liability in the June 30, 2022 and 2021 Miscellaneous Plan actuarial valuations were determined using the following actuarial assumptions:
2024 2023
Valuation Date June 30, 2022 June 30, 2021
Measurement Date June 30, 2023 June 30, 2022
Actuarial Cost Method Entry-Age Entry-Age
Normal Cost Method Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Payroll Growth 2.80% 2.80%
Projected Salary Increase (1) 3.00% - 10.44% 3.00% - 10.44% Mortality (2) Derived using CalPERS’ Derived using CalPERS’ Membership Data for all Funds Membership Data for all Funds (1) Depending on age, service and type of employment
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
21 Note 8 Pension Plan (continued)
Discount Rate – As of June 30, 2024 and 2023, the discount rates used to measure the total pension liability were both 6.90% for the City’s Miscellaneous Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

The expected real rates of return by asset class are as followed:

Asset Class
Asummed asset
allocation
Real Return
(1) (2)
Asummed asset
allocation
Real Return
(1) (2)
Global Equity - Cap-weighted 30.0% 4.5% 30.0% 4.5%
Global Equity - Non-Cap-weighted 12.0% 3.8% 12.0% 3.8%
Private Equity 13.0% 7.3% 13.0% 7.3%
Treasury 5.0% 0.3% 5.0% 0.3%
Mortgage-backed Securities 5.0% 0.5% 5.0% 0.5%
Investment Grade Corporates 10.0% 1.6% 10.0% 1.6%
High Yield 5.0% 2.3% 5.0% 2.3%
Emerging Market Debt 5.0% 2.5% 5.0% 2.5%
Private Debt 5.0% 3.6% 5.0% 3.6%
Real Assets 15.0% 3.2% 15.0% 3.2%
Leverage -5.0% -0.6% -5.0% -0.6%
Total 100% 100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management Study. 2024 2023

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
22 Note 8 Pension Plan (continued)
Sensitivity of the Transportation Enterprise Fund’s proportionate share of the City’s Net Pension Liability to Changes in the Discount Rate - As of June 30, 2024 and 2023, the following presents the net pension liability of the Transportation Enterprise Fund’s proportionate share of the City of Fairfield’s net pension liability as of the measurement date, calculated using the discount rates of 6.90% for both years, as well as what the Transportation Enterprise Fund’s proportionate share of the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
2024 2023
1% Decrease 5.90% 5.90%
Net Pension Liability 4,189,466$ 4,897,130$
Current Discount Rate 6.90% 6.90%
Net Pension Liability 3,000,009$ 3,479,127$
1% Increase 7.90% 7.90%
Net Pension Liability 2,015,354$ 2,306,193$
Pension Plan Fiduciary Net Position - Detailed information about the City’s collective pension plans’ fiduciary net position is available in the separately issued CalPERS financial report.

C. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2024 and 2023, the Transportation Enterprise Fund recognized pension expense of $417,049 and $509,637, respectively. At June 30, 2024 and 2023, the Transportation Enterprise Fund reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date 261,104$ 345,686$ Differences between actual and expected experience 106,105 87,007 Changes in assumption 86,574 212,207
Change in proportion 19,798 (339,084)$ 39,596
Net differences between projected and actual earning on plan investments 284,586 369,650
Total 758,167$ (339,084)$ 1,054,146$ -$
2024 2023
The amount of $261,104 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. The amount reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal
Year Ended
2025 43,460$
2026 (93,461)
2027 200,368
2028 7,612
Total 157,979$

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2024 and 2023
23 Note 9 Contingent Liabilities
Federal and State grant funds were received by the City to be expended for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to a request for reimbursement for expenditures disallowed under the terms of the grants. The amount, if any, of expenditures that may be disallowed by the granting agencies related to this program cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

Note 10 Risk Management
The City is exposed to various risk of torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees and natural disasters. The City is partially self-insured for workers’ compensation insurance with $750,000 retention per occurrence and general liability coverage with $750,000 retention per occurrence and is a member of joint power authorities for the coverage above and beyond the retention levels (see below). The City is completely self-insured for unemployment insurance, short-term disability insurance, other post- employment benefits (OPEB) and dental insurance coverage programs. All funds participate in the City’s risk management program.

For worker’s compensation, the City purchases excess insurance coverage (above and beyond the retention limit of $750,000) from a governmental joint powers authority up to statutory limits per occurrence. This joint power authority is Prism formally known as the California State Association of Counties Excess Insurance Authority, a risk sharing pool of California public agencies, dedicated to controlling losses and providing effective risk management.

For general liability, the City is a member of the California Joint Powers Risk Management Authority (CJPRMA), a joint exercise of powers agency which provides the City with additional $40,000,000 liability coverage over and above the self-insured retention of $750,000. A property insurance policy is purchased by the member entities of CJPRMA. The deductible amount is $250,000. The CJPRMA is a legal entity separate and distinct from its member entities, as permitted by the California Government Code. Please refer to the City ’s Annual Comprehensive Financial Report for additional information regarding the City’s self-insured program.

City of Fairfield
Transportation Enterprise Fund
Required Supplementary Information
Schedule of the Transportation Enterprise Fund’s Proportionate Share Of the City’ Miscellaneous Plan Net Pension Liability
24 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Transportation Enterprise Fund's proportion to the City's net pension liability 2.62% 2.62% 2.61% 2.76% 2.87% 3.26% 3.14% 2.89% 2.74% 2.24% Transportation Enterprise Fund's proportion share of the City's net pension liability 1,607,827$ 1,737,605$ 2,061,010$ 2,394,419$ 2,434,218$ 2,657,008$ 2,892,942$ 1,873,582$ 3,479,127$ 3,000,009$ Covered payroll (from prior year) 638,382 642,096 650,352 661,510 716,042 790,193 953,437 963,306 927,181 960,935 Transportation Enterprise Fund's proportion share of the City's net pension liability as a percentage of covered payroll - employee payroll 251.86% 270.61% 316.91% 361.96% 339.95% 336.25% 303.42% 194.50% 375.24% 312.20% Miscellaneous Plan fiduciary net position as a percentage of the total pension liability 77.53% 75.96% 72.24% 71.05% 71.81% 71.32% 70.27% 80.81% 68.19% 67.82% Measurement date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 Change of Assumptions - Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.

Last Ten Years

City of Fairfield
Transportation Enterprise Fund
Required Supplementary Information
Schedule of Contributions
25 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Actuarially determined contributions 117,699$ 128,994$ 145,721$ 173,526$ 213,754$ 295,595$ 310,676$ 322,073$ 345,686$ 261,104$ Contributions in relation to the actuarially determined contributions (117,699) (128,994) (145,721) (173,526) (213,754) (295,595) (310,676) (322,073) (345,686) (261,104) Contributions deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll (from current year) 642,096$ 650,352$ 661,510$ 716,042$ 790,193$ 953,437$ 963,306$ 927,181$ 960,935$ 833,649$ Contributions as a percentage of covered payroll 18.33% 19.83% 22.03% 24.23% 27.05% 31.00% 32.25% 34.74% 35.97% 31.32% Last Ten Years

City of Fairfield
Transportation Enterprise Fund
Schedules of Operating Expenses by Function
For the Years Ended June 30, 2024 and 2023
26 2024 2023
Operations:

Services 1,329,001$ 1,030,751$
Fuels and lubricants 556,041 722,812
Casualty and liability costs 365,195 302,816
Utilities 233,513 240,010
Purchased transportation 3,834,219 3,606,089
Materials and supplies 6,012 8,164
Miscellaneous 10,639 45,864
Total operations 6,334,620 5,956,506
Vehicle maintenance:

Services 2,223,606 2,184,626
Total vehicle maintenance 2,223,606 2,184,626
General and administration:

Salaries 495,678 389,013
Fringe benefits 450,406 517,519
Services 1,128,714 1,142,082
Materials and supplies 2,892 3,946
Miscellaneous 2,411 114,781
Transfers out 35,863 38,748
Total general and administration 2,115,964 2,206,089
Depreciation and amortization 563,456 788,868
Total operating expenses 11,237,646$ 11,136,089$

Independent Auditor’s Report
To the City Council
City of Fairfield, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City of Fairfield, California (the City), as of and for the years ended June 30, 2024 and 2023, and the related notes to the financial statements, which collectively comprise the City’s Transportation Development Act Article 4 and 8 Program (TDA Program)’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City, as of June 30, 2024 and 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Transportation Capital Projects Fund and the Transportation Enterprise Fund and do not purport to, and do not, present fairly the financial position of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City’s TDA Program, as of June 30, 2024 and June 30, 2023, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. 27 What inspires you, inspires us. | eidebailly.com
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28 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the schedule of the Transportation Enterprise Fund’s proportionate share of the City’s net pension liability and schedule of contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required

29 supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted the management’s discussion and analysis that the accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements is not affected by the missing information.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the schedule of operating expenses by function but does not include the basic financial statements and our auditor’s report thereon. Our opinion on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 12, 2024, on our consideration of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Sacramento, California
December 12, 2024

Agenda Item No: K.12

AGENDA REPORT
DATE: January 21, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: CM Fairfield-Suisun Sewer District Appointments

Minute Action Approving Mayor’s Appointment for the Fairfield-Suisun Sewer District

Funding Source: N/A

Contact: Esther Beavers, (707) 428-7402

RECOMMENDED ACTION
Approve appointments.

STATEMENT OF ISSUE
The City Council is being asked to approve the appointments as follows:

Fairfield-Suisun Sewer District Executive Committee
Term January 1, 2025, to December 31, 2026
Mayor Catherine “Cat” Moy
Councilmember Doug Carr
Councilmember Doriss Panduro
Councilmember Scott Tonnesen
Councilmember K. Patrice Williams

Alternates: Councilmembers Pam Bertani and Manveer Sandhu

Fairfield-Suisun Sewer District Board
Mayor Catherine “Cat” Moy
Councilmember Doriss Panduro

DISCUSSION
The Fairfield-Suisun Sewer District Executive Committee and Board serve a two-year term from January 1, 2025, through December 31, 2026. These appointments will be approved by resolution at the City Council Retreat on January 24 -25, 2025. The Fairfield -Suisun Sewer District needed these appointments added to their agenda prior to their January 27, 2025, meeting.

Mayor Moy made these recommendations for the council’s approval.

FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The council may choose not to approve the mayor’s appointments, thereby leaving vacancies.

COORDINATED WITH
N/A

STAFF CONTACT
Esther Beavers, Deputy City Clerk
(707) 428-7402
[email protected]

ATTACHMENTS
N/A

Agenda Item No: L.1

AGENDA REPORT
DATE: January 21, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: CM Poet Laureate Appointment 2025

Minute Action Approving Mayor’s Appointment for the Poet Laureate

Funding Source: N/A

Contact: Esther Beavers, (707) 428-7402

RECOMMENDED ACTION
Approve appointment. Perform oath of office.

STATEMENT OF ISSUE
The City Council is being asked to approve the appointments as follows:

Poet Laureate
Term January 1, 2025, to June 30, 2027
Michael Wyly

DISCUSSION
The Poet Laureate serves two-year terms. The Poet Laureate’s terms are from January 1, 2025, through June 30, 2027.

Councilmembers Doriss Panduro and Scott Tonnesen interviewed the applicant on August 19, 2024. The applicants listed above are recommended for appointment, and the recommendations were submitted to Mayor Catherine "Cat" Moy for consideration.

Mayor Moy agreed with the recommendations provided.

FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The council may choose not to approve the mayor’s appointments, thereby leaving vacancies.

COORDINATED WITH
N/A

STAFF CONTACT
Esther Beavers, Deputy City Clerk
(707) 428-7402
[email protected]

ATTACHMENTS
N/A

Agenda Item No: L.2

AGENDA REPORT
DATE: January 21, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: Resolution 2025-11 CD City Sponsored Special Events Calendar

Adopt City-Sponsored Special Events for the 2025 Calendar Year

Funding Source: N/A

Contact: Yee-Lynn Wong, (707) 428-7449

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The proposed resolution lists all of the proposed City-sponsored (Sponsored) and City Signature (Signature) Special Events for the 2025 calendar year.

DISCUSSION
On January 21, 2014, the City Council adopted Ordinance 2013 -25 amending the Fairfield Municipal Code to include Chapter 12A Special Events. The ordinance provides a comprehensive program to regulate special events in the City of Fairfield.

On March 21, 2023, the council adopted Ordinance 2023 -06 amending the Fairfield Municipal Code to allow the council to designate additional C ity-sponsored events by resolution adopted no later than 90 days prior to the event.

Section 12A.4 states that the council may designate additional Sponsored events. To provide the council with the opportunity to modify the list of Sponsored events, staf f proposes an annual comprehensive Sponsored events schedule for the council’s review and approval. For the 2025 calendar year, the staff is proposing the attached Special Event List. The list distinguishes Sponsored events from Signature events. Sponsored events are organized, hosted, and run entirely by an outside entity or by an outside entity with City partnership. Signature events are organized, hosted, and run entirely by the City. Both approved Sponsored and Signature events

will require the event organizer to submit a complete application, as set forth in Section 12.A.6, but shall be exempt from paying the Special Event Permit application fees. Sponsored and Signature events are not exempt from other legal or regulatory requirements, including but no t limited to other required permits from City Departments.

FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A public hearing notice was published in the Daily Republic newspaper on Sunday, January 5, 2025.

ALTERNATIVE ACTION
The council may choose not to approve the resolution as proposed, and direct staff to modify the list of City-sponsored events as desired.

COORDINATED WITH
City Manager’s Office, Finance, Fire, Parks & Recreation, Police, and Public Works

STAFF CONTACT
Yee-Lynn Wong, Assistant Planner
(707) 428-7449
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Exhibit A 2025 City-Sponsored Special Event List

CITY OF FAIRFIELD

RESOLUTION NO. 2025-11

ADOPT CITY-SPONSORED SPECIAL EVENTS FOR THE 2025 CALENDAR YEAR

WHEREAS, Section 12A.4 of the Fairfield Municipal Code provides that the City Council may designate additional City-sponsored events; and

WHEREAS, City-sponsored events shall require the event organizer to submit a complete application in compliance with Section 12.A.6; and

WHEREAS, City-sponsored events shall be exempt from paying the Special Event Permit application fees; and

WHEREAS, designating additional City-sponsored events does not exempt an event from other legal and regulatory requirements , including but not limited to encroachment permits, building permit requirements, or any requirement for a fire permit; and

WHEREAS, all City-sponsored events for the 2025 calendar year are in the attached Exhibit A.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The events listed in Exhibit A to this resolution shall be adopted as City-sponsored activities for the 2025 calendar year.

PASSED AND ADOPTED this 21st day of January 2025, by the following vote:

AYES: MEMBERS: MOY / BERTANI / CARR /PANDURO / SANDHU/ TONNESEN / WILLIAMS

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

_________
MAYOR

ATTEST:

____________________________

CITY CLERK

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# Event Title Lead Hosting Organization City Dept
Liaison
City Department
Contact Event Description Location Date of Event Time of Event Sponsored or Signature Road Closure
1 Blues, Brews, and BBQ Cook-Off City of Fairfield P&R Juanita Johnson Public Event Solano County Annex Lawn 4/19/2025 12pm-4pm Signature 2 Maykers Market City of Fairfield CD Keisha Mamaril Free public event Downtown Fairfield May TBD 2025 12pm-5pm Sponsored 3 Farmer's Market City of Fairfield CD Keisha Mamaril Free public event Solano County Annex Lawn May-Sept 2025 3pm-7pm Sponsored 4 Pickleball Tournament USA Series West Fairfield Pickleball Club TBD TBD TBD Alan Witt Pickleball Courts TBD TBD Sponsored 5 Dia de Los Ninos City of Fairfield TBD TBD Day honoring children TBD TBD TBD Sponsored 6 Concert In The Park Summer Music Series Frazier Trager Presents P&R Juanita Johnson Free Public Event TBD Park 6/6/2025 6pm-8pm Sponsored 7 Concert In The Park Summer Music Series Frazier Trager Presents P&R Juanita Johnson Free Public Event TBD Park 6/20/2025 6pm-8pm Sponsored 8 Taste of Downtown City of Fairfield CD Keisha Mamaril Ticketed public event Downtown Fairfield July TBD 2025 3pm-7pm Sponsored 9 Independence Day Parade City of Fairfield P&R Juanita Johnson Free public event Downtown Fairfield 7/4/2025 10am-end Signature 10 Concert In The Park Summer Music Series Frazier Trager Presents P&R Juanita Johnson Free Public Event TBD Park 7/18/2025 6pm-8pm Sponsored 11 Concert In The Park Summer Music Series Frazier Trager Presents P&R Juanita Johnson Free Public Event TBD Park 8/1/2025 6pm-8pm Sponsored 12 Concert In The Park Summer Music Series Frazier Trager Presents P&R Juanita Johnson Free Public Event TBD Park 8/15/2025 6pm-8pm Sponsored 13 Back to School Backpack Event Fairfield Community Services Foundation PD Jeremy Profitt Free public event. Bethel Church TBD TBD Sponsored 14 Fairfield Tomato & Vine Festival City of Fairfield P&R Juanita Johnson Free public event Downtown Fairfield 8/18-17/2025 11am-7pm/ 11am 5pm Signature
15 Concert In The Park Summer Music Series Frazier Trager Presents P&R Juanita Johnson Free Public Event TBD Park 9/5/2025 6pm-8pm Sponsored 16 Matt Garcia Foundation Annual Event City of Fairfield CD Keisha Mamaril Free public event TBD TBD TBD Sponsored 17 Vine to Table Fairfield Community Services Foundation PD Jeremy Profitt Downtown Dinner with FCSF Downtown Fairfield TBD TBD Sponsored 18 Dia de Los Muertos City of Fairfield TBD TBD Day honoring the dead TBD TBD TBD Sponsored 19 National Night Out City of Fairfield PD Jeremy Profitt Free public event. TBD 10/7/2025 TBD Sponsored 20 Halloween Spooktacular City of Fairfield CD Keisha Mamaril Free public event. Downtown Fairfield 10/31/2025 3pm-6pm Sponsored 21 Veterans Day Parade City of Fairfield P&R Juanita Johnson Free public event. Downtown Fairfield 11/11/2025 12:30pm-end Signature 22 Fairfield CAN Thanksgiving Clergy Action Network TBD TBD Feeding houseless & low income Willow Hall 11/25/2025 12:30pm-2:30pm Sponsored 23 Downtown Tree Lighting Ceremony City of Fairfield P&R Juanita Johnson Free public event Downtown Fairfield 12/5/2025 6pm-8:30pm Signature 24 Menorah Lighting Ceremony City of Fairfield P&R Juanita Johnson Free public event Solano County Annex Lawn 12/14-12/22 TBD 5:30pm-7:30pm Signature 25 The Buck Stops Here Holiday Market (formerly SBS) City of Fairfield CD Keisha Mamaril Free public event. Downtown Fairfield Dec TBD 2025 12pm-5pm Sponsored 26 Christmas Toy and Coat Event Fairfield Community Services Foundation PD Jeremy Profitt Free public event. Bethel Church TBD TBD Sponsored 27 LOGIC Ministries Toys for Tots LOGIC Ministries CMO Kelly Ballard Toy giveaway event. TBD Neighborhood Park TBD 6-8pm Sponsored

Agenda Item No: L.3

AGENDA REPORT
DATE: January 21, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: Resolution 2025-12 HR Retired Annuitant City Manager’s Office

Allowing the City of Fairfield to Hire Whitney Skillman as a Communications Supervisor Retired Annuitant Without a Six-Month Break in Service

Funding Source: $67,718; General Plan

Contact: Farbod Pirouzmand, (707) 428-7397

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
Whitney Skillman, Communications Supervisor at the Communications Division of the City Manager’s Office retired on December 30, 2024. She has a unique set of skills that are needed to finish several high -profile projects until a new Communications Supervisor is hi red. Staff recommends hiring Whitney Skillman as a Communications Supervisor Annuitant until a new incumbent is hired.

DISCUSSION
The Communications Division has several high -profile projects for multiple departments that need staff support until a new Co mmunications Supervisor is hired. These are the projects that each department needs Ms. Skillman’s unique skills and abilities to support:

CMO
City Annual Report for 2024
State of the City Event
Escribe (Agenda Management System)
MyFairfieldCA App Replacement Implementation & Outreach

Community Development
Buy Local Campaign
Go4Fairfield Business Attraction Campaign
Energov (Building Permits System) Rollout
Fairfield Adopted General Plan Rollout

Fire Department
Annual Recognition Awards

Human Resources
Employee Recognition Ceremony Media

Public Works
Prop 218 Water Rate Study & Outreach

Parks & Recreation
Brews, Blues & BBQ Cook-Off Event Campaign

Due to the high priority of these projects and without interruption, staff recommends hiring Whitney Skillman as a Communications Supervisor retired annuitant under Government Code Sections 7522.56 and 21224. The city requires Ms. Skillman’s highly specialized skills for a limited duration, from January 28, 2025, through June 30, 2025, without the prescribed 180-day break in service.

FINANCIAL IMPACT
The total estimated cost for this request will not exceed $67,718 from the General Fund.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The City Council may direct staff to seek a different method or hire a consultant to work on these high-priority projects. However, this is not recommended due to the learning curve necessary for someone to become familiar with the City’s marketing processes. Furthermore, the time it would take to become effective would result in a significant cost increase as well as a delay in implementing initiatives.

COORDINATED WITH
City Manager’s Office

STAFF CONTACT
Farbod Pirouzmand, Human Resources Director
(707) 428-7397
[email protected]

ATTACHMENT
Attachment 2: Proposed Resolution

CITY OF FAIRFIELD

RESOLUTION NO. 2025-12

ALLOWING THE CITY OF FAIRFIELD TO HIRE WHITNEY SKILLMAN AS A

COMMUNICATIONS SUPERVISOR RETIRED ANNUITANT WITHOUT A SIX-MONTH BREAK

IN SERVICE

WHEREAS, in compliance with Government Code section 7522.56 of the Public Employees’ Retirement Law, the City Council of the City of Fairfield must provide CalPERS this certification resolution when hiring a retiree before 180 days have passed since their retirement date; and

WHEREAS, Whitney Skillman will retire from the City of Fairfield in the position of communications supervisor, effective December 31, 2025; and WHEREAS, Whitney Skillman has the specialized skills and knowledge required for upcoming high-priority projects; and
WHEREAS, section 7522.56 requires that post -retirement employment commence no earlier than 180 days after the retirement date without this certification resolution; and

WHEREAS, section 7522.56 provides that this exception to t he 180-day wait period shall not apply if the retiree accepts any retirement-related incentive; and

WHEREAS, the council and Whitney Skillman certify that she has not and will not receive a Golden Handshake or any other retirement-related incentive; and WHEREAS, the council hereby appoints Whitney Skillman as an extra help retired annuitant to perform the duties of a communications supervisor for the City of Fairfield under Government Code section 21224, effective January 28, 2025, and
WHEREAS, no matters, issues, terms, or conditions related to this employment and appointment have been or will be placed on a consent calendar; and

WHEREAS, the employment shall be limited to 960 hours per fiscal year; and

WHEREAS, the hourly rate paid to Whitney Skillman will be $70.56 and WHEREAS, Whitney Skillman has not and will not receive any other benefit, incentive, compensation in lieu of benefit, or other forms of compensation in addition to this hourly pay rate.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. Whitney Skillman can be appointed by the City of Fairfield as an extra-help communications supervisor, PERS retired annuitant, without a six-month break in service.

RES. NO. 2025-12

Section 2. Whitney Skillman’s appointment as a PERS retired annuitant is done in accordance with all other PERS requirements and restrictions related to the appointment of retired annuitants including, but not limited to the following:

(a) Limited, temporary appointment under Government Code Section 21224(a) due to Ms.

Skillman’s specialized skills and experience.
(b) Her appointment term is from January 28, 2025, through June 30, 2025, and it will not exceed 960 hours.
(c) Compensation is set at the step 5 rate on the publicly available salary schedule for the communications manager position of $70.56 per hour.
(d) Ms. Skillman is not eligible for, nor will she receive any additional benefit or incentive such as paid time off or health and welfare benefits during her temporary, limited-term appointment; and
(e) Ms. Skillman has verified that she has not received unemployment insurance within 12 months of this appointment.

Section 3. Whitney Skillman’s appointment is for extra help on a temporary, limited-term basis to work on specialized projects.

PASSED AND ADOPTED this 21st day of January 2025, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

Agenda Item No: L.4

AGENDA REPORT
DATE: January 21, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: Resolution 2025-13 HR Retired Annuitant Public Works

Allowing the City of Fairfield to Hire Diane Feinstein as a Transportation Manager Retired Annuitant Without a Six-Month Break in Service

Funding Source: $84,586; Transportation Enterprise Fund

Contact: Farbod Pirouzmand, (707) 428-7397

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
Public Works Transportation Division (Transportation) has implemented microtransit (on - demand bus service). To successfully continue implementing the next phase of the city’s microtransit service, staff recommends hiring Diane Feinstein as a retired transp ortation manager annuitant.

DISCUSSION
Diane Feinstein retired on December 30, 2024. After her retirement, 40% of Transportation’s positions will either be newly filled or vacant. The staffing situation will make it difficult to perform the extensive coordination required between Transportation and FAST riders, other City departments, the Metropolitan Transportation Commission, outside agencies, consultants, contractors, and vendors.

Ms. Feinstein’s leadership and knowledge are important to ensure the success of transportation services in the city. Her institutional and specific knowledge about transportation requirements makes her uniquely qualified to perform the required tasks. Current City staff do not have the same knowledge base in this specialized area, and because of the current staffing levels, this work is beyond the capacity of what staff can undertake. Additionally, Ms. Feinstein will need to ensure the success of a new cashless system for FAST and onboard a newly hired transportation planner.

Due to the high priority of these projects and the necessity to fill these critical roles without interruption, staff recommends hiring Diane Feinstein as a transportation manager retired annuitant under Government Code Sections 7522.56 and 21224. The city requires Ms. Feinstein’s highly specialized skills for a limited duration, January 28, 2025, through June 30, 2025, without the prescribed 180-day break in service.

FINANCIAL IMPACT
The total estimated cost for this request will not exceed $84,586 . It will be funded by the Transportation Enterprise Fund (Funds 45160002 and 45260002), with no impact on the General Fund.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The City Council may direct staff to seek a different method or hire a consultant to work on these high-priority projects. However, this is not recommended due to the learning curve necessary for someone to become familiar with Transportation’s systems and processes. Furthermore, the time it would take to become effective would result in a significant cost increase as well as a delay in implementing initiatives.

COORDINATED WITH
Public Works

STAFF CONTACT
Farbod Pirouzmand, Human Resources Director
(707) 428­7397
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution

CITY OF FAIRFIELD

RESOLUTION NO. 2025-13

ALLOWING THE CITY OF FAIRFIELD TO HIRE DIANE FEINSTEIN AS A TRANSPORTATION

MANAGER RETIRED ANNUITANT WITHOUT A SIX-MONTH BREAK IN SERVICE

WHEREAS, in compliance with Government Code section 7522.56 of the Public Employees’ Retirement Law, the City Council of the City of Fairfield must provide CalPERS this certification resolution when hiring a retiree before 180 days have passed since their retirement date; and

WHEREAS, Diane Feinstein will retire from the City of Fairfield in the position of transportation manager, effective December 31, 2025; and
WHEREAS, Diane Feinstein has specialized skills and knowledge required for upcoming high- priority projects; and
WHEREAS, section 7522.56 requires that post -retirement employment commence no earlier than 180 days after the retirement date without this certification resolution; and

WHEREAS, section 7522.56 provides that this exception to the 180 -day wait period shall not apply if the retiree accepts any retirement-related incentive; and

WHEREAS, the council and Diane Feinstein certify that Ms. Feinstein has not and will not receive a Golden Handshake or any other retirement-related incentive; and WHEREAS, the council hereby appoints Diane Feinstein as an extra help retired annuitant to perform the duties of a transportation manager for the City of Fairfield under Government Code section 21224, effective January 28, 2025, and
WHEREAS, no matters, issues, terms, or conditions related to this employment and appointment have been or will be placed on a consent calendar; and

WHEREAS, the employment shall be limited to 960 hours per fiscal year; and

WHEREAS, the hourly rate paid to Diane Feinstein will be $88.10 and WHEREAS, Diane Feinstein has not and will not receive any other benefit, incentive, compensation in lieu of benefit, or other forms of compensation in addition to this hourly pay rate.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. Diane Feinstein can be appointed by the City of Fairfield as an extra help transportation manager, PERS retired annuitant without a six-month break in service.

RES. NO. 2025-13

Section 2. Diane Feinstein’s appointment as a PERS retired annuitant is done in accordance with all other PERS requirements and restrictions related to the appointment of retired annuitants including, but not limited to the following:

(a) Limited, temporary appointment under Government Code Section 21224(a) due to Ms.

Feinstein’s specialized skills and experience.
(b) Appointment term is from January 28, 2025, through June 30, 2025, and her appointment will not exceed 960 hours.
(c) Compensation is set at the step 5 rate on the publicly available salary schedule for the transportation manager position of $88.10 per hour.
(d) Ms. Feinstein is not eligible for, nor will she receive any additional benefit or incentive such as paid time off or health and welfare benefits during her temporary, limited-term appointment; and
(e) Ms. Feinstein has verified that she has not received unemployment insurance within 12 months of this appointment.

Section 3. Diane Feinstein’s appointment is for extra help on a temporary, limited-term basis to work on specialized projects (cashless implementation and training)

PASSED AND ADOPTED this 21st day of January 2025, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

Agenda Item No: M.1

AGENDA REPORT
DATE: January 21, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: Resolution 2025-14 HD Danco Homes, LLC Allocation of Local Housing Trust Funds and Resolution 2025-15 First Amendment Community Development Block Grant

Approving the Allocation of Local Housing Trust Funds to Danco Homes, LLC. for the Acquisition and Redevelopment of Permanent Supportive Housing in the City of Fairfield

and Approving the First Amendment to the Fiscal Year 2024-2025 Community Development Block Grant Annual Action Plan and the Fiscal Year 2023-2022 Consolidated Annual Progress Evaluation Report

Funding Source: $249,866; Community Development Block Grant Fund and $1,000,000; Local Housing Trust Fund

Contact: LaTanya Terrones, (707) 428-745

RECOMMENDED ACTION
Hold public hearing and adopt resolutions.

STATEMENT OF ISSUE
Hold a public hearing and approve the First Amendment to the fiscal year (FY) 2024 -2025 Community Development Block Grant Program (CDBG) Annual Action Plan to reprogram prior year entitlement funds to promote the preservation of affordable multi-family housing. Adopt a resolution approving the City to enter into an agreement with Danco for $1,000,000 in Local Housing Trust funds.

DISCUSSION
Background
In August 2024, the Housing Services Department issued a Notice of Funding Availability (NOFA) to solicit eligible proposals for affordable multi -family rehabilitation projects in the City of Fairfield.

With homelessness identified as one of the City Council's key priorities, creating opportunities to prevent homelessness for those currently housed is critical. To support this effort, the City has allocated $1.4 million in funding for affordable housing preservation:
 $1,000,000 from the City's Local Housing Trust Fund (LHTF)  $474,530 from the City's CDBG Program

Funding Overview
Each funding source has specific eligibility criteria and regulatory requirements:
 LHTF: Supports new construction, rehabilitation, or acquisition of affordable multi-family rental housing for individuals and families earning up to 60% of the Area Median Income (AMI). At least 65% of the units funded must be affordable to households earning no more than 30% AMI.
 CDBG: Supports the rehabilitation of affordable rental housing for low - and moderate- income individuals and families earning less than 80% AMI. Rehabilitation must enhance residents' health and safety within the development.

Applicants could apply for either or both funding sources, depending on their project's alignment with the criteria. The funding will support new construction, acquisition, and/or preservation of affordable housing, ensuring long-term affordability (55 years or more).

This NOFA prioritizes pipeline projects capable of p romptly creating affordable units. It aims to provide gap financing at below -market interest rates, leveraging the City's investment with additional funding sources such as private bank loans, tax credits, and federal or state programs.

Application and Review Process
The City received proposals from four developers. City staff invited applicants to attend a pre - NOFA Q&A session to clarify any requirements before submission. A review panel consisting of two City employees (one from the City Manager's Office, and one from the Community Development Department) and one representative from Solano County evaluated the proposals.

Additionally, a fiscal consultant assessed the financial feasibility of each project and provided input for the panel's consideration.

The panel scored the proposals based on the following criteria:
 Financial Feasibility
 Project Approach and Concept
 Community Support and Benefits
 Developer/Property Owner Experience

The final developer scores were as follows:

Proposer Score
Orchard Crossing 61
Danco 58
Choc 54.5

Solano Affordable Housing Foundation 40
Funding Recommendations
Staff recommends funding the top two scoring applicants based on the eligibility of their proposals:

1. Orchard Crossing (CDBG Funding)
o Amount: $474,530
o This project qualifies for CDBG funds to support affordable multi -family rehabilitation.

The allocation includes:
 $244,664 previously allocated in the FY 2024 -2025 CDBG Annual Action Plan for Multi - Family Preservation
 $249,866 in unspent prior-year funds redirected for this purpose as an amendment to the FY 2024-2025 CDBG Annual Action Plan
o CDBG regulations require a public hearing for substantial amendments to the Annual Action Plan.

2. Danco (Local Housing Trust Fund)
o Amount: $1,000,000
o Danco's project involves purchasing and rehabilitating a local hotel to provide Permanent Supportive Housing for homeless and at -risk homeless populations. The project aligns with LHTF priorities and council goals.

Conclusion
The recommended allocations will ensure compliance with funding regulations and advance the City's goals to preserve and expand affordable housing. Both projects reflect the City's commitment to addressing homelessness and supporting at-risk populations.

FINANCIAL IMPACT
Approval of these resolutions will result in $249,866 in CDBG funds being allocated from prior year funds and a Commitment of $1,000,000 in LHTF funding.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A public notice was published in the Daily Republic Newspaper on December 18, 2024, to enable the public to respond to the First Amendment to the FY 2024-2025 CDBG Annual Action Plan.

ALTERNATIVE ACTION
The council may choose not to approve the resolution to amend the CDBG Annual Action Plan.

However, this decision could result in the U.S. Department of Housing and Urban Development recapturing unspent prior-year funds.

The council may choose not to approve the resolution allocating $1,000,000 from the Local Housing Trust Fund. However, this could lead to non -compliance with the Housing and Community Development Local Housing Trust Fund Agreement and result in a missed opportunity to support the development of permanent supportive housing for homeless individuals.

COORDINATED WITH
N/A

STAFF CONTACT
LaTanya Terrones, Sr. Project Manager
(707) 428-7454
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution LHTF
Attachment 3: Proposed Resolution CDBG
Attachment 4: FY 2024-2025 Action Plan Amendment Summary

CITY OF FAIRFIELD

RESOLUTION NO. 2025-14

APPROVING THE ALLOCATION OF LOCAL HOUSING TRUST FUNDS TO DANCO HOMES, LLC FOR

THE ACQUISITION AND REDEVELOPMENT OF PERMANENT SUPPORTIVE HOUSING IN THE CITY

OF FAIRFIELD

WHEREAS, Danco Homes LLC is a non-profit developer with more than 25 years of development experience including multi-family, senior, and permanent and supportive affordable housing; and

WHEREAS, through a Notice of Funding Availability (NOFA) process, Danco has demonstrated the ability to acquire, rehabilitate, and operate Permanent Supportive Housing projects for at-risk of homeless and homeless individuals; and

WHEREAS, Danco Homes, LLC is currently negotiating a Purchase and Sale agreement for the hotel located at 3331 N. Texas St. to purchase and rehabilitate the property for the specified population. The project will consist of up to 100 units to be used for permanent supportive housing; and

WHEREAS, the development of these affordable units will help the City meet its affordable housing development obligation under the Regional Housing Needs Assessment (RHNA); and

WHEREAS, the City has established and funded the Fairfield Housing Trust Fund per Ordinance No. 2021-24, City Resolution No. 2021-304, and Fairfield Housing Authority Resolution No. 2021- 15, in the amount of $1,100,000; and

WHEREAS, Danco submitted a proposal for this project , which was ranked and reviewed by a panel that determined that the project met all of the criteria for the Local Housing Trust Fund allotment of $1,000,000.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The city manager or his designee ( authorized officer) is authorized to set aside and direct $1,000,000 from the Fairfield Housing Trust Fund d uring Fiscal Year 2024-2025 and up to $535,542 in ProHousing Incentive Program (PIP) funds to support the development of the Affordable Units. These funds will be memorialized through a letter of funding commitment to the developer.

Section 2. The authorized officer is authorized to execute and deliver, for and in the name of the City of Fairfield, the Development Loan Agreement in substantially such form, with such additions or changes as the authorized officer executing the same, may approve (such approval to be conclusively evidenced by such authorized officer’s execution and delivery thereof) and to do all things necessary or proper to implement the Development Loan Agreement, including the

RES. NO. 2025-14

execution and recordation of agreements and documents con templated by the Development Loan Agreement.

PASSED AND ADOPTED this 21st day of January 2025 by the following vote:

AYES: MEMBERS: MOY / BERTANI / CARR /PANDURO / SANDHU/ TONNESEN / WILLIAMS_

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

______________________________________________________
MAYOR

ATTEST:

____________________________

CITY CLERK

CITY OF FAIRFIELD

RESOLUTION NO. 2025-15

APPROVING THE FIRST AMENDMENT TO THE FISCAL YEAR 2024-2025 COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLAN AND THE FY 2023-2022 CONSOLIDATED

ANNUAL PROGRESS EVALUATION REPORT

WHEREAS, the City is required by the U.S. Department of Housing and Urban Development (HUD) to submit an Annual Action Plan (AAP) for FY 202 4-2025 in order to receive annual Community Development Block Grant (CDBG) entitlement funds; and

WHEREAS, the City of Fairfield submitted the FY 2024-2025 Annual Action Plan to HUD on July 3, 2024. The Action Plan was approved by HUD in September 2024; and

WHEREAS, substantial amendments to the Annual Action Plan require a Public Hearing to receive public feedback and resubmission of the Annual Action to HUD for approval; and

WHEREAS, a public notice seeking public comment and notification of the public hearing was published on December 18, 2024.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The city manager is authorized to submit the FY 2024-2025 CDBG Annual Action Plan First Amendment to the U.S. Department of Housing and Urban Development (HUD) and execute any and all documents and contracts associated with the FY 2024-2025 CDBG Annual Action Plan Amendments.

Section 2. The city manager is authorized to execute contracts for CDBG funding related to the Annual Action Plan Amendment allocating $474,530 for affordable multi-family housing preservation.

RES. NO. 2025-15

PASSED AND ADOPTED this 21st day of January 2025 by the following vote:

AYES: MEMBERS: MOY / BERTANI / CARR /PANDURO / SANDHU/ TONNESEN / WILLIAMS_

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

______________________________________________________
MAYOR

ATTEST:

____________________________

CITY CLERK

Annual Action Plan
2024
1 OMB Control No: 2506-0117 (exp. 09/30/2021)

The City is adding $229,991 towards its Affodable Multi-Family Preservation project. Additionally, the City is moving funds from the ED RLF to Program Income as the City has closed its ED RLF Program. The PI funds will be used towards other eligible projects.

Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Fairfield (City) is an entitlement jurisdiction that receives federal funding from the U.S.

Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG) Program. The CDBG Program provides annual grants on a formula basis to entitlement cities and counties to develop viable urban communities. HUD expects them to achieve this goal by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for low- and moderate-income persons.

As a CDBG entitlement jurisdiction, the City must prepare an Annual Action Plan (AAP) that describes the activities that the City will implement to spend its CDBG funds and meet the Consolidated Plan (Con Plan) goals and priorities. This 2024-25 Annual Action Plan describes the information concerning the goals outlined in the 2022-2026 Con Plan.

For FY 2024-2025, the City of Fairfield was granted $837,945 in CDBG funding to address the priority needs in the community. All funding will be utilized based on the opportunities and constraints of each program or project.

In FY 2024-2025, the City will implement steps to protect individuals from housing discrimination by affirmatively furthering fair housing through the Analysis of Impediments to Fair Housing Choice. The City will also expand outreach to people in Fairfield with limited English proficiency and ensure that all funded agencies can serve persons with disabilities and those who are not proficient in English.

During this fiscal year the City completed an Amendment to the Annual Action Plan to allocate prior year unspent entitlement funds towards Multi-Family preservation. An additional $229,991 is being added to this project as part of the amendment. Within this amount is $141,114.19 in Econcomic Development Revolving Loan funds that are being reallocated as Program Income. In Fiscal Year 2021-2022 the City closed its Econcomic Development Loan Program. The City is now moving those remaining funds from the RLF fund to program income so that the funds can be used towards other projects. This amendment

Annual Action Plan
2024
2 OMB Control No: 2506-0117 (exp. 09/30/2021)
also includes amounts of Program Income that was recieved as loan payoffs from the City's Housing rehabilitation Program.

2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.

The Annual Action Plan provides information related to the proposed geographic distribution of investment. It includes general descriptions of the homeless and other community development needs and activities. It also provides for actions to reduce poverty and barriers to meet the needs of the underserved.

Fairfield has several public service needs, including affordable housing, homelessness, and other community development needs identified in this Annual Action Plan, as well as through the consultation and citizen participation processes. The Consolidated Plan anticipates using CDBG funds to assist in achieving Fairfield City Council and community goals to address the community's various needs. The City has identified the following goals that provide the framework for the Annual Action Plan:
• Affordable Housing
• Homeless Services
• Senior Services
• Youth Services
• Economic Development
• Fair Housing
• Public Facilities and Infrastructure

3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

In FY 23-24, the City of Fairfield CDBG Program supported multiple non-profit organizations, providing services to low-income individuals within the community. During FY 23-24, CDBG funds supported more than 3,000 residents. The City also completed a lighting project 'that provided the replacement of lighting poles in one of City's main walking trails. This project allows for a greater level of safety for the community. Additionally, during FY 23-24, the city of Fairfield met its timeliness requirements and completed the expenditures of its CDBG-CV funds by supporting the rehabilitation and operation of the Ohio Street Shelter, during the pandemic to help the homeless individuals.

Annual Action Plan
2024
3 OMB Control No: 2506-0117 (exp. 09/30/2021)

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

The City of Fairfield follows its Citizen Participation Plan (CPP) when preparing the Annual Plan. The City prioritizes a transparent and collaborative approach with the community. In preparation for this plan, the city held multiple public meetings with the CDBG Advisory Committee(CAC). The CAC reviewed and scored all applications and made recommendations to the City Council for subrecipient funding. In addition, the city held two community workshops to educate the community on the CDBG program and opportunities for applying. A public hearing was held to finalize the Annual Planning process, allowing additional opportunities for the public to review and comment on the Annual Plan.

During the Annual Action Plan Amendment the City issued a Public notice to accept Public Comment and to also notice the public about the Public Hearing that was held on January 21, 2025.

5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

There were no public comments received during the creation of this Plan.

6. Summary of comments or views not accepted and the reasons for not accepting them There were no comments from the public that were not accepted.

7. Summary
The CDBG Program has been a critical component of the Fairfield Community, allowing low- to moderate-income residents access to services that they may not otherwise be able to access. Fairfield’s Annual Action Plan outlines how funds will be allocated to address various community needs such as affordable housing, homelessness, senior services, youth services, economic development, fair housing, and public facilities. The Plan reflects input gathered through citizen participation processes, including public meetings with the CDBG Advisory Committee and community workshops. In the past year, CDBG funds supported non-profits serving low-to-moderate income individuals and projects like lighting improvements for safety. Fairfield is committed to transparency and collaboration, ensuring residents have opportunities to provide feedback on the Plan's priorities and allocations.

Annual Action Plan
2024
4 OMB Control No: 2506-0117 (exp. 09/30/2021)
PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency

CDBG Administrator FAIRFIELD Housing Services Department Table 1 – Responsible Agencies

Narrative (optional)

Consolidated Plan Public Contact Information
LaTanya Terrones
Sr. Project Manager
[email protected]
707-428-7454

Annual Action Plan
2024
5 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The City of Fairfield take coordination and consultation of the CDBG Program a high priority. The City ensures that there are opportunities for all vested parties to participate throughout the year with the CDBG program including contribution towards the plans upcoming activities and planning for the year ahead.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City of Fairfield partners with local service providers and the County of Solano in responding to the needs of the unhoused and those at risk of being displaced into homelessness. Additionally, the City of Fairfield provides funding and site assistance, public outreach and education, policy development and strategic planning, and coordination and collaboration. The City of Fairfield is actively involved in the local Continuum of Care, Housing First Solano, holding an officer seat on the Board of the Continuum. Additionally, two Council members sit upon the CAP Solano Joint Powers Authority (JPA), working in partnership with all the regional cities and the County of Solano, which provides oversight and coordination of homeless and safety net services in Solano County. This regional approach is unique in the State of California, creating a collective response to the growing crisis of addressing the impacts of homelessness. Lastly, the Homeless Services Manager serves on the Technical Advisory Committee, providing expertise and assistance to the JPA.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The JPA board includes governmental regional representatives from all the cities and the County of Solano in the decision-making process on addressing the growing impact of homelessness. The Technical Advisory Committee has a representative with local expertise in the unhoused community from each city and county to guide the electives on the JPA Board.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS Housing First Solano, the COC, brings together local city staff, county staff, health care agencies, behavioral health, veterans, intimate partner violence agencies, local homeless service providers, faith-

Annual Action Plan
2024
6 OMB Control No: 2506-0117 (exp. 09/30/2021)
based organizations, criminal justice organizations, department of education, housing providers, local business, and those with lived experience. Additionally, , including committees to improve systems, which include coordinated entry, governance, HMIS users, and Lived Experience to provide additional oversight and expertise.

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities

Annual Action Plan
2024
7 OMB Control No: 2506-0117 (exp. 09/30/2021)
Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Fairfield Housing Authority Agency/Group/Organization Type PHA
What section of the Plan was addressed by Consultation? Public Housing Needs Homelessness Needs - Veterans
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
The City of Fairfield partners with multiple other entities to forward the homeless strategic plan of the JPA.
2 Agency/Group/Organization EDEN HOUSING
Agency/Group/Organization Type Housing
Services - Housing
Services-Elderly Persons
Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
As an affordable housing developer that supplies Permanent and Supportive Housing in the County, Eden Housing has been a collaborative partner contributing to the advancement of the homeless strategic plan.
3 Agency/Group/Organization Caminar Solano County
Agency/Group/Organization Type Housing
Services - Housing
Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-Victims of Domestic Violence
Services-homeless

Annual Action Plan
2024
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What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless
Homelessness Needs - Veterans
Homelessness Strategy
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Caminar (Resource Connect Solano) is the County's Coordinated Entry Operator. they also are represented as the Chair of the COC. 4 Agency/Group/Organization Solao Black Chamber of Commerce Agency/Group/Organization Type Business Leaders
What section of the Plan was addressed by Consultation? Economic Development Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
As a member of the Solano COC Board, the Solano Black Chamber actively participate in the discussion of homelessness. 5 Agency/Group/Organization BENICIA
Agency/Group/Organization Type Housing
PHA
Services - Housing
Other government - Local
What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Non-Homeless Special Needs

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Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
City of Benicia is a partner of the COC as a City in the County, we are able to collaborate on common problems and find solutions. 6 Agency/Group/Organization CITY OF VALLEJO
Agency/Group/Organization Type Housing
PHA
Services - Housing
Services-homeless
Other government - Local
What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
City of Vallejo is a partner of the COC as a City in the County, we are able to collaborate on common problems and find solutions. 7 Agency/Group/Organization City of Vacaville Community Development Department Agency/Group/Organization Type Housing
PHA
Services - Housing
Services-homeless
Service-Fair Housing
Services - Victims
Other government - Local

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2024
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What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
City of Vacaville is a partner of the COC as a City in the County, we are able to collaborate on common problems and find solutions. 8 Agency/Group/Organization Solano County
Agency/Group/Organization Type Housing
PHA
Services - Housing
Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-Victims of Domestic Violence
Services-homeless
Services-Health
Other government - County
What section of the Plan was addressed by Consultation? Homelessness Strategy Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Solano County is a partner of the COC as a City in the County, we are able to collaborate on common problems and find solutions.

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2024
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Identify any Agency Types not consulted and provide rationale for not consulting There weren't any specific agencies that were not consulted.

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead
Organization
How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Housing First
Solano
The Continuum of Care works to end homelessness by: Facilitating multi-agency cooperation and coordination, connecting persons experiencing homelessness with housing, job employment, family, and medical resources, and securing funds from the State of California, Department of Housing and Urban Development, and private organizations to end homelessness.

City of Fairfield
Housing Element City of Fairfield
The Fairfield Housing Element addresses housing development, rehabilitation, and housing conservation. It sets forth actions the City will undertake to assist residents to maintain their homes and to help ensure that there is an adequate supply of safe, affordable housing for existing and future residents.

City of Fairfield
Analysis of
Impediments
City of Fairfield The Action Plan incorporates and funds both Fair Housing and Tenant/Landlord Counseling. Other elements of the AI are funded through the Low- and Moderate-Income Housing Fund Table 3 – Other local / regional / federal planning efforts

Narrative (optional)

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AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting

City staff developed a detailed Citizen Participation Plan (CPP) as part of the 2022-2026 Consolidated Plan. As required by HUD, non-profits, and community residents were provided adequate opportunities to review and comment on the original Citizen Participation Plan and Substantial Amendments to the Plan, if necessary.

City staff engaged citizens through community meetings, public hearings, and workshops. Citizens who participated in the process received extensive information about the Con Plan, the citizen participation process, the HUD requirements for an Entitlement City, the amount of funding the City anticipates receiving, and how the City can use those funds. Residents were given the opportunity to provide City staff with input on the use of CDBG funds. These efforts, including the review of HUD Data and relevant policy documents, assisted the City in itsgoal- setting efforts.

At each step in the process, the City was careful to ensure that low- and moderate-income residents, members of minority groups, agencies involved in the provision of services to these populations, and others who are directly impacted by the programs and activities supported by the Con Plan programs had the opportunity to be actively involved.

Two Public Hearings were held In FY 2023-24. The two public hearings consisted of a Public Hearing for the FY 22-23 CAPER that took place on September 19, 2023. There were no comments at this meeting as reported in the FY 22-23 CAPER report. The Second Public hearing that took place during the Fiscal year was for the development of this Annual Action Plan. A Public Hearing was held on July 2, 2024. There were no public comments at this meeting

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Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Public Meeting
Minorities

Non-English
Speaking - Specify
other language:

Spanish, Tagolog

Non-
targeted/broad
community
46 individuals
attended the CDBG
Workshop.

No Comments were
received.

No comments were
received 2 Newspaper Ad
Minorities

Non-English
Speaking - Specify
other language:

Spanish and
Tagolog

Persons with
disabilities
35 Individuals
attended the CDBG
NOFA Workshop
No Comments were
received
No comments were
received.
3 Public Meeting
Non-English
Speaking - Specify
other language:

Spanish and
Tagolog
35 Individuals
attended the CDBG
NOFA Workshop
No Comments were
received.

No comments were
received.

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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
4 Press Release
Non-
targeted/broad
community
35 Individuals
attended the CDBG
NOFA Workshop
No comments were
recieved
No comments were
received
5 Public Meeting
Non-
targeted/broad
community
There were no
members of the
public that attended
the CDBG Advisory
Meeting
No comments were
recieved
No comments were
recieved
6 Public Hearing
Non-
targeted/broad
community
There were 15 people
that attended the
Public Hearing
There were no
public comments
There weren't any
public comments that
were not accepted.

7 Public Hearing
Minorities

Non-English
Speaking - Specify
other language:

Spanish and
Tagolog

Persons with
disabilities

Non-
targeted/broad
community
No comments
Recieved
No Comments received
or rejected

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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
8 Newspaper Ad
Non-English
Speaking - Specify
other language:

Spanish and
Tagolog

Non-
targeted/broad
community

9 Public Hearing
Non-English
Speaking - Specify
other language:

Spanish and
Tagolog

Persons with
disabilities

Non-
targeted/broad
community

Table 4 – Citizen Participation Outreach

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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The City of Fairfield utilizes its annual allocation to support all of its projects throughout the community. The City leverages entities in the

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2024
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community to provide supportive services in the for the community.

Anticipated Resources

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Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services
837,945.00 219,462.61 310,765.41 1,368,173.02 1,660,000.00 Program Income includes
$78,348.42 in RLF receipts for
both the ED RLF and Housing
Revolving loan funds. In
addition, the City has closed its
ED RLF program, therefore
$141,114.19 will be moved as
program income to be used for
other projects. Prior year
resources includes $91,304.33
in prior year unspent
entitlement funds for FYs 23-
24,2022-23,2021-22,2021-
2020,2020-2019,2019-
2018,2018-2017. In addition
$221,888.58 are Housing
Revolving Loan funds that are
available outside of the
Program income received
during the fiscal year. The total
RLF funds that will be available
for the fiscal year is
$300,237.80.

Table 5 - Expected Resources – Priority Table

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Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
Although CDBG regulations do not require matching funding, many of the activities that the City intends to fund through CDBG will require additional public and private resources. CDBG funds will be used to leverage these other funding sources. Included with the total Anticipated amounts, the City received $63,846 in RLF receipts which constitutes the Program Income. These funds will be returned to the RLF to be used for future Housing Revolving Loan Funds for Housing Rehabilitation. The City may use the 15% calculation of program income to fund public Service Activities. The City has a history of using CDBG funds to leverage General Fund revenue and other resources to complete sidewalk improvements and fund fair housing services and emergency shelter operations, and anticipates continuing to fund these activities similarly during the five-year planning period.

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2024
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If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City of Fairfield Housing Department oversees the management and utilization of various properties to address community housing needs. Among these properties are three vacant lands earmarked for affordable housing initiatives. Despite their potential, the City acknowledges that development on these parcels will unlikely commence within the current planning period.

One notable property under the purview of the Housing Authority is situated at 315 Jefferson St.

Presently, this property is under lease to a Homeless Shelter Operator tasked with providing crucial emergency homeless services to individuals within Fairfield. This arrangement underscores the city’s commitment to addressing immediate housing challenges faced by its residents.

Furthermore, another property owned by the city serves a specialized purpose. Located at [Address], it is currently leased to a domestic violence operator. This partnership aims to offer refuge and support to women and children affected by domestic violence, thereby preventing homelessness and fostering a safe environment for those in need.

Additionally, the city’s housing efforts extend to a property at 421 Madison Street. The city is actively engaged in negotiations with a developer who intends to construct housing units on the site. This collaboration exemplifies the city’s proactive approach to leverage its resources to expand affordable housing options and meet the evolving needs of its residents.

Discussion
The City of Fairfield places an emphasis on maximizing the utilization of its properties under the jurisdiction of the Housing Authority to tackle the pressing issue of affordable housing within its boundaries. Every parcel owned by the Housing Authority is assessed and strategically allocated to bolster the city’s ongoing efforts in this regard. Through careful planning and allocation, the city endeavors to optimize the impact of its properties in addressing the housing needs.

In addition to leveraging its property assets, the city maintains a multifaceted approach to funding affordable housing initiatives. Among the various funding streams, the Fairfield’s Local Housing Trust Fund is one of the city’s vital funding sources to finance affordable housing projects. This funding avenue not only facilitates the development of new housing units but also enables the city to implement innovative solutions and programs to enhance housing accessibility and affordability for its residents.

Recent developments have further bolstered the city’s capacity to advance its affordable housing agenda. Specifically, the City of Fairfield has received recognition from the State of California as a Prohousing Designated City. This designation not only underscores the city’s commitment to promoting housing affordability but also unlocks many opportunities for additional funding. Importantly, it grants the city and collaborating developers enhanced eligibility for state and federal affordable housing funds,

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streamlining the application process and expediting project review procedures. This designation heralds a new era of collaboration and progress, empowering the city to forge ahead to cultivate vibrant, inclusive communities through accessible and affordable housing solutions.

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Annual Goals and Objectives

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic Area Needs
Addressed
Funding Goal Outcome Indicator
1 Youth 2022 2027 Non-Housing
Community
Development
City of Fairfield Public Services CDBG:
$45,000.00
Public service activities other
than Low/Moderate Income
Housing Benefit: 140
Persons Assisted
2 Fair Housing 2022 2027 Non-Housing
Community
Development
City of Fairfield Fair Housing CDBG: $.00 Public service activities for Low/Moderate Income
Housing Benefit: 50
Households Assisted
3 Administration 2022 2027 Administration City of Fairfield Administration CDBG:
$167,589.00
Other: 1 Other
4 Special Needs
Populations
2022 2027 Non-Homeless
Special Needs
Non-Housing
Community
Development

LOW/MODERATE

INCOME CENSUS
TRACTS
City of Fairfield
Public Services CDBG:
$80,692.00
Public service activities other
than Low/Moderate Income
Housing Benefit: 2237
Persons Assisted

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2024
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic Area Needs
Addressed
Funding Goal Outcome Indicator
5 Public Facilities
and
Infrastructure
2022 2027 Community
Development

LOW/MODERATE

INCOME CENSUS
TRACTS
Non-Public
Services
CDBG:
$300,000.00
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
5000 Persons Assisted
6 Affordable
Housing
2022 2027 Affordable
Housing

LOW/MODERATE

INCOME CENSUS
TRACTS
City of Fairfield
Non-Public
Services
CDBG:
$564,664.00
Rental units rehabilitated:
100 Household Housing Unit
Homeowner Housing
Rehabilitated: 10 Household
Housing Unit
Table 6 – Goals Summary

Goal Descriptions

1 Goal Name Youth
Goal Description
2 Goal Name Fair Housing
Goal Description
3 Goal Name Administration
Goal Description
4 Goal Name Special Needs Populations
Goal Description

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5 Goal Name Public Facilities and Infrastructure
Goal Description
6 Goal Name Affordable Housing
Goal Description

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Projects
AP-35 Projects – 91.220(d)
Introduction
The City of Fairfield prioritizes all of its funding resources to meet the goals and priorities set in its Consolidated Plan. The City uses a multi- step applicaton and review process when choosing projects to support during the annual plan process. This process ensures that all applications meet the needs of the community as well as meets HUD's requirements of the Citizen Participation process.

Projects

# Project Name
1 Senior Meals Program (2024)
2 Ombudsmand Services (2024)
3 Senior & Disabled Independent Living Services (2024)
4 Youth Tutoring Program (2024)
5 Youth Services Scholarship Program (2024)
7 CDBG Administration 2024
8 Lee Bell Park Bathroom (2024-27)
9 Multi-Family Preservation
10 Housing Rehabilitation Program
11 City ADA Street ramps (2024)
Table 7 - Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
All of the City of fairfield Public Service Projects are scattered throughout the City and provide services to Fairfield residents. While they may not While they prioritize their funding resources to meet the needs of the low-mod residents. At least half of the public service subrecipients support residents that are presumed beneficiaries.

All of the City's Public Facility/Infrastructure projects are located in the City's Low/Mod Census Tracts.

The City ensures to prioritize all funding to areas where the most vulnerable population can be served.

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AP-38 Project Summary
Project Summary Information

Annual Action Plan
2024
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1 Project Name Senior Meals Program (2024)
Target Area City of Fairfield
Goals Supported Special Needs Populations
Needs Addressed Public Services
Funding CDBG: $52,942.00
Description The program provides nutritious meals on a daily basis to aid in the reduction of senior malnutrition, food insecurity and to promote senior independence and socialization through human connection. As an eyes-on program, food delivery also provides an opportunity for wellness checks and through a phone app, provide immediate feedback to the administrative office on changes or concerns that need attention. Additionally, this program helps identify other needs such case management, fall prevention, and other services provided by Meals on Wheels and other community partners.

Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
This project anticipates supporting 500 senrios
Location Description The project will take place throughout the City of Fairfield, as meals are delivered directly to the homes of seniors
Planned Activities The goal of MOWSC's nutrition services is to ensure seniors have access to at least one healthy meal per day, and this is accomplished by home delivery and congregate cafes at local senior centers.

Additionally, routine interaction with volunteers who deliver the meals, program staff, and cafe participants, addresses isolation and loneliness and provides a safety net. When clients aren't home to receive their meals, staff call to check on them and follow up with emergency contacts if unable to reach the client, request a welfare check from local law enforcement, or call 911 if an emergency situation. Our approach is holistic to ensure address health, safety, isolation, and connection to community.
2 Project Name Ombudsmand Services (2024)
Target Area LOW/MODERATE INCOME CENSUS TRACTS
City of Fairfield
Goals Supported Special Needs Populations

Annual Action Plan
2024
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Needs Addressed Public Services
Funding CDBG: $12,750.00
Description Empowered Aging (EA, formerly Ombudsman Services of Contra Costa, Inc.) serves older and disabled adults and their families living in Contra Costa, Solano, and Alameda County. EA protects the needs and rights of those living in long-term care, most over 65, ~30% low-income, ~3,550 across Solano County, and 1,700 in Fairfield 46 facilities. Most clients served have disabilities and impairments requiring care and assistance with at least three activities of daily living, more than half experience the effects of dementia and two additional co-occurring conditions such as diabetes, heart disease, mental illness, etc.

Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
Approximately 1700 Fairfield residents will have access to the Ombudsman Service. These services are provided at the local Live-in Facilities in the City
Location Description 1251 Travis Blvd. Ste. 120
Fairfield, CA
Planned Activities Empowered Aging overall goal has proven to be successful. They have provided services to the Fairfield community for over 4 years. We believe that all residents living in long-term care facilities deserve quality of life, dignity and respect. Fairfield’s long-term care residents continue to receive high-quality, person-centered care that meets their needs - eliminating abuse, neglect, and violation of residents’ rights. Facilities will be equipped with the knowledge, staffing and protocols to meet resident requirements using a person-centered approach to care, and family members and loved ones will be equipped to advocate for their resident of concern as needed. As a result, there will be fewer complaints and necessary investigations. At a higher level, the senior and social service system in Fairfield and Solano Counties more broadly will operate collaboratively and effectively, partnering as needed to meet residents’ diverse needs. 3 Project Name Senior & Disabled Independent Living Services (2024) Target Area City of Fairfield
Goals Supported Special Needs Populations
Needs Addressed Public Services
Funding CDBG: $15,000.00

Annual Action Plan
2024
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Description Lions Center for the Visually Impaired/LCVI is the only agency in Solano County providing independent living skills training for the visually impaired adult community. LCVI has played a key roll, and is certified by the California Department of Rehabilitation. Regarding outcomes for the blind, each client is assessed at intake and staff works with them to set individual health adjustment and skill-building goals. Progress toward these goals is noted in individual files. From our agency records we know that clients meet the goals set in their plan.

We also know that clients are satisfied with the quality of our program and services because they tell us in our follow-up phone call surveys conducted after the close of each case file. Finally, the vast majority of our clients are able to continue living independently, this avoiding costly nursing homes.

Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
37 Senior and disabled indivudals that are visually impaired.

Location Description Throughout the City as services are taken directly to the residents to meet their needs.

Planned Activities Lions Center for the Visually Impaired/LCVI is the only agency in Solano County providing independent living skills training for the visually impaired adult community. LCVI has played a key roll, and is certified by the California Department of Rehabilitation. Regarding outcomes for the blind, each client is assessed at intake and staff works with them to set individual health adjustment and skill-building goals. Progress toward these goals is noted in individual files. From our agency records we know that clients meet the goals set in their plan.

We also know that clients are satisfied with the quality of our program and services because they tell us in our follow-up phone call surveys conducted after the close of each case file. Finally, the vast majority of our clients are able to continue living independently, this avoiding costly nursing homes.
4 Project Name Youth Tutoring Program (2024)
Target Area City of Fairfield
Goals Supported Youth
Needs Addressed Public Services

Annual Action Plan
2024
30 OMB Control No: 2506-0117 (exp. 09/30/2021)
Funding CDBG: $15,000.00
Description The Leaven Kids After School Tutoring will benefit children ages 5-12 living in the Phoenix Drive, Dana Drive, Groves, and Grande Circle apartment complexes inFairfield. These areas are made up of highly diverse, primarily low-income individuals and families. We will serve children at centers located in each complex by providing educational support, tutoring, and mentoring that empowers and lifts them up.

Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
100 Youth that reside in the lower-income neighborhood
Location Description Grande Circle - 1970 Grande Circle Fairfield, CA 94533 Dana Drive - 1180 Dana Drive Fairfield, CA 94533
Planned Activities Leaven Kids addresses the need in our communities by providing elementary school-aged youth with regular after-school tutoring, health education activities, and summer mentoring and skill-building services. We also engage students in community service, leadership, and character-building activities. These programs dramatically impact children, many of whom are suffering from academic deficiencies and facing increased obesity and weight-related health issues.

On average, students participate in The Leaven programming for 5 years and often return to give back their time as a peer tutor. We are proud to serve more than 100 students in Fairfield. Our success has been touted by The California State Superintendent of Education, Jack O'Connell, who visited us and declared Leaven Kids a model for after- school programs in California due to our effectiveness in the classroom.
5 Project Name Youth Services Scholarship Program (2024) Target Area City of Fairfield
Goals Supported Youth
Needs Addressed Public Services
Funding CDBG: $30,000.00

Annual Action Plan
2024
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Description The Youth Activities Scholarship Program addresses the need for youth recreational activities for low-income families in the Fairfield community by enabling youth of low income families to participate in the City of Fairfield Parks and Recreation Department's fee based recreation programs and events. The funds are distributed on a sliding scale, based on family income, and subsidize 25-100% of the registration fees.

Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
30 Low-to-moderate income youth.

Location Description Throughout the City of Fairfield
Planned Activities The Youth scholarship program allows low/mod families to receive scholarship for the recreational services for their children. 6 Project Name CDBG Administration 2024
Target Area City of Fairfield
Goals Supported Administration
Needs Addressed Administration
Funding CDBG: $167,589.00
Description Administration of the CDBG Program
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
There will be zero families directly impacted by this.

Location Description City of Fairfield
Planned Activities CDBG Administration
7 Project Name Lee Bell Park Bathroom (2024-27)
Target Area LOW/MODERATE INCOME CENSUS TRACTS
Goals Supported Public Facilities and Infrastructure
Needs Addressed Non-Public Services
Funding CDBG: $150,000.00

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2024
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Description The Lee Bell Park Project includes adding a Bathroom to the Park. The Project will be a multi-year project that will go through FY 26-27. This project is in the low-mod census tract of 2526.05.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
The Residents in this area will benefit from this project Location Description This project is located at 1401 Washington St. Fairfield, CA in census tract 2526.05. This is a Low-Mod Census Tract in the City of Fairfield.

Planned Activities This project includes a multi-year process with year 1 being Fiscal Year 24-25 will be the designing process, Year 2 will include the purchase of the modular bathroom. This has a 1-year lead time. Year 3 will be the installation of the bathroom on the site for this project. 8 Project Name Multi-Family Preservation
Target Area LOW/MODERATE INCOME CENSUS TRACTS
Goals Supported Affordable Housing
Needs Addressed Non-Public Services
Funding CDBG: $474,655.00
Description This project will be a multi-Housing Preservation project that will support the rehabilitation of affordable multi-family units.

Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
100 tenants
Location Description Throughout the City
Planned Activities Rehabilitation of Multi-Family Affordable Housing units. 9 Project Name Housing Rehabilitation Program
Target Area LOW/MODERATE INCOME CENSUS TRACTS
City of Fairfield
Goals Supported Affordable Housing
Needs Addressed Non-Public Services
Funding CDBG: $300,237.80

Annual Action Plan
2024
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Description The City of Fairfield will provide loans and grants for Low-Moderate income home owners for rehabilitation.

Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
This project will support at least 10 low-income home owners and renters
Location Description Throughout the City
Planned Activities Provide low interest loans to low-mod homeowners to support rehabilitation efforts.
10 Project Name City ADA Street ramps (2024)
Target Area LOW/MODERATE INCOME CENSUS TRACTS
Goals Supported Public Facilities and Infrastructure
Needs Addressed Non-Public Services
Funding CDBG: $150,000.00
Description This project will create ADA street ramps in the low-income area. It will allow access for wheelchair ramps and create clear walking paths.

This will be phase one of this project that will take place over multiple years.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
This is an area benefit. More than 5000 individuals and families that live in the low-income census tracts will benefit from this project.

Location Description Low-income Census Tracts in the City Planned Activities Create WheelChair ramps in the City streets for ADA access.

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34 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The City of Fairfield has over 20 low-income census tracts. CDBG resources will be allocated to serve the neighborhoods with the greatest need. All Public Facilities and Infrastructure projects will take place in the low-income census tracts. All other resources will be targeted for individuals and families at or below the moderate-income levels.

In the 2022-2026 Consolidated Plan, the City continues to focus 65% of the entire grant amount annually on infrastructure and public facility improvements in the low income and minority concentration areas. Efforts related to the Housing Rehabilitation program have also been focused in the low-mod areas. The Housing Rehabilitation program allows low and moderately low-income property owners to receive loans and/or grants to rehabilitate or repair their homes.

Geographic Distribution
Target Area Percentage of Funds
LOW/MODERATE INCOME CENSUS TRACTS 65
City of Fairfield 35
Table 8 - Geographic Distribution

Rationale for the priorities for allocating investments geographically The City of Fairfield ensures that all of the CDBG subrecipients meet the program requirements and serve low to moderate income clients. While the Public Service funding allocations may not specifically take place in low-to-moderate income neighborhoods, more than 70% of the individuals served arelow- to-moderate income. The city works closely with the sub-recipients that are providing public services to ensure they target the proper demographic with the CDBG funds. All funds that the City allows for Public Facilities/Infrastructure are directed to projects located in low/Mod census tracts. The city allocates 65% of its annual allocation towards public facility/infrastructure projects. The city therefore ensures that all CDBG program requirements are met and that the most vulnerable populations and neighborhoods are being served and revitalized.

However, ” 'it’s imperative that all low-income residents have access to the public services offered. All public services are available for low to moderate-income individuals throughout the city regardless of the census tracts that they reside. All public facilities projects will be allocated in the low/moderate income census tracts. This ensures that low/moderate income neighborhoods are being revitalized and,

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neighborhood residents have access to the facilities.

Discussion
The City is committed to spending CDBG funds throughout the City and targeting vulnerable low-to- moderate income individuals. Its important that they have equal access to the services identified in the Consolidated Plan.

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City of Fairfield makes it a priority to support the most vulnerable populations with CDBG funding.

While the City didn't recieve any applications for homeless services during the annual application process, the City will support low-income homeowners and low-income renters with opportunities that preserve their current housing. The City plans to rehabilitate approximately 100 affordable multi-family units for low-moderate income individuals and approximately 10 low-income home owner units during the fiscal year.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 110
Special-Needs 0
Total 110
Table 9 - One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 110
Acquisition of Existing Units 0
Total 110
Table 10 - One Year Goals for Affordable Housing by Support Type

Discussion

Annual Action Plan
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AP-60 Public Housing – 91.220(h)
Introduction
While the City does not own any public housing units, the Housing Authority is housed under the Housing Services Department as well as the CDBG efforts, therefore allowing all affordable housing efforts to be consistently monitored and shared. Residents served under the Housing Authority, receive access to all of the information and services that are covered under the CDBG Program.

Actions planned during the next year to address the needs to public housing The City of Fairfield does not own any public housing units. However, the City has a Housing Choice Voucher Program (HCV) with over 894 vouchers to support low-income families within the community. Each year, the City serves more than 700 families in the program. Of the more than 700 families served, 5 households receive assistance through the Project Based VASH Vouchers. .

Actions to encourage public housing residents to become more involved in management and participate in homeownership
All families that are participants of the HCV information receive information related to opportunities for homeownership. The Housing Authority posts fliers and information as it becomes available. One of the HCV participants was recently selected to purchase a home under the Habitat for Humanity Program, which allows low to moderate-income homeowners to purchase with sweat equity. The City is planning upcoming first-time home buyer education classes, which will be accessible to all Fairfield residents, including participants of the HCV Program.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
The City's PHA is not designated as troubled.

Discussion
The City of Fairfield does not own any public housing units that it supports. Although the City has a Housing Choice Voucher Program, The CDBG program and the Housing Choice Voucher Program work in tandem to provide supportive services to the low-income residents that are in need. Because the Public Service support agencies are supporting the same demographic as the Housing Choice Voucher Program, the Housing Services Department ensure that information is shared with the HCV participants for the services that are available to them.

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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City of Fairfield continues to see an increase in chronic and newly homeless individuals over the past several years, which aligns with the national trends. The high cost of housing and property in the area and the shortage of affordable housing and prevention services available in the county to serve the population create significant barriers to addressing the growing rates of those falling into homelessness.

The Fairfield City Council adopted a comprehensive Homeless Strategy to address homelessness, including a dedicated Homeless Services Department located in the City ” 'Manager’s office to address the needs and impact of the unhoused residents in the community. The Homeless Strategy includes nationally recognized programs and policies proven to reduce homelessness. A major part of the strategy is providing linkages for unhoused individuals and families to appropriate services through collaborative outreach efforts. The City of Fairfield partners with local service providers and the County of Solano in responding to the needs of the unhoused and those at risk of being displaced into homelessness. Additionally, the City of Fairfield provides funding and site assistance, public outreach and education, policy development and strategic planning, and coordination and collaboration. The City of Fairfield is actively involved in the local Continuum of Care, Housing First Solano, holding an officer seat on the Board of the Continuum. Additionally, two Council members sit on the CAP Solano Joint Powers Authority (JPA)Board, working in partnership with all the regional cities and the County of Solano, which provides oversight and coordination of homeless and safety net services in Solano County. This regional approach is unique in the State of California, creating a collective response to the growing crisis of addressing the impacts of homelessness. Lastly, the Homeless Services Manager serves on the Technical Advisory Committee providing expertise and assistance to the JPA.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The current goals and actions for reducing and ending homelessness includes (1) creation of a regional Navigation Cetner, (2) increasing interim housing capacity, (3) creation of general outreach services outside of law enforcement, and (4) supporting the expansion of the staffing needs of CAPSolano.

The City of Fairfield houses its Homeless Services Division in the City Manager's office. It includes three full-time dedicated staff to support the community and coordinate efforts with various city divisions via best practices and public policy. This dedicated team allows for ongoing regional planning activities, coordinating activities, and planning for service providers, stakeholders, anaffected citizens. Working closely with stakeholders allows the Homeless Services Division to ensure an efficient and effective system offering everyone access to shelter, food, housing, and other basic needs. The City is currently

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working with entities to help support the coordinated entry of the homeless residents.

Addressing the emergency shelter and transitional housing needs of homeless persons The Homeless Services Division work with local interim housing programs to provide shelter for unhoused residents. The City has increased sheltering capacity in the past year by applying for additional grants to expand and convert a local shelter into a regional navigation center, build and open a pallet shelter, and create partnerships with local faith-based organizations to provide an inclement weather warming center. The Homeless Services Division continues to explore new grants and revenue sources to expand and continue existing interim and transitional housing services.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
Along with the City of Fairfield, many agencies in and near Fairfield assist those unhoused and transitioning to permanent housing and independent living. The City assists low-income individuals and families avoid homelessness through several city-supported programs, including HOME and CalHOME programs, CDBG housing rehabilitation, VASH Vouchers, and the Housing Choice Voucher program.

The Tenant-Based Rental Assistance (TBRA) Program, funded through State HOME funds, allows homeless families to secure temporary housing for up to 24 months. After 24 months on the program and completing identified program milestones, individuals may qualify to receive a preference on the ” 'City’s Housing Choice Voucher Program. This final step helps them secure permanent housing.

The City of Fairfield collaborates with a wide array of local partners, community agencies, and stakeholders to address the needs of unsheltered residents. Homeless Services understands that the way home for every homeless individual is unique to their background and continues to identify opportunities to build on the full continuum of services needed to reduce homelessness permanently.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

City of Fairfield has taken the lead regionally in expanding the staffing needs of CAP Solano

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JPA. Through these efforts, it is the intent to increase staffing to support the needs of the unhoused community across the region, including increasing funding to support existing and new programs to help those who are unhoused, at risk of displacement into houselessness, and those who are living in poverty. Regional coordination has led to the creation of more robust diversion and prevention programs that will be launched next year. The efforts of CAPSolano have increased support services to specialized populations, including TAY, Veterans, and those displaced into houselessness due to intimate partner violence. As the staffing expands for CAPSolano, the regional efforts will expand to provide more funding to support existing programs and launch new innovative approaches to decreasing the impacts of homelessness on the community.

The Homeless Services Division has created relationships with policymakers on a local, county, state, and federal level to best access resources and affect policy. City Divisions regularly convene meetings with state and local elected officials to share concerns regarding the impact of chronic homelessness, including seniors and veterans, and seek assistance in accessing funding and resources to serve the homeless population better.

Discussion
The City of Fairfield emphasizes supporting homeless efforts and makes its best effort to come up with an innovative approach to addressing the needs of the homeless community. The Fairfield City Council has made homeless one of its goals, and there is a clear understanding of the need to collaborate to create innovative initiatives to support the efforts Citywide and regionally.

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AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

In 2023, the City made several changes to its zoning ordinance to promote the availability of affordable housing. These changes included making it easier to convert garages into Junior Accessory Dwelling Units (JADUs), expanding options for meeting parking requirements off-site, allowing taller buildings in downtown mixed-use zones, and rezoning commercial areas near transit hubs for mixed residential use.

Additionally, the City adopted a Housing Element plan to guide its efforts in supporting the production of safe and affordable housing, preserving existing affordable housing, protecting tenants from displacement, and promoting fair housing throughout the community. Goals, objectives, policies, and actions outlined in the plan include providing a variety of housing options for all income levels, increasing the production of affordable housing, and exploring inclusionary housing programs.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
n 2023, the City adopted a range of amendments to its zoning ordinance to reduce land use controls that restrict the ability to provide affordable housing. These include:
• Expansion of authorizations for garage conversions, with the effect of facilitating Junior Accessory Dwelling Units – among the most affordable of housing types; • Expanding the list of ways parking requirements can be met off-site, reducing the space on private property needed to otherwise address city parking requirements. The effect is greater developable land for housing construction;
• The modification of zoning regulations in a downtown mixed-use zoning district – the HO zone – to add 10 feet of building height by-right, from 35 feet to 45 feet. This adds an additional story of allowed housing construction on buildings in the HO zone. • Rezoning of three parcels adjacent to the ” 'City’s regional bus transfer station from a purely commercial zone to a residential-mixed use zone. This allows housing construction in a transit- (and grocery-rich) location that facilitates affordable living without need to own a car.

The City also adopted the 2023-2031 Housing Element of its General Plan in January 2023. The Housing Element was certified by the California Department of Housing and Community Development in April 2023. The adopted Housing Element sets forth actions the City will undertake to support the production of an adequate supply of safe and affordable housing for existing and future residents, preserve and rehabilitate existing affordable housing stock, protect tenants from displacement pressures, and affirmatively further fair housing throughout the entire City, so that everyone has access to opportunity.

Examples of goals, objectives, policies, and implementation actions promoting affordable housing,

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include:
• Goal A. Provide a variety of housing opportunities for all income groups throughout the city, including different housing types, unit sizes, design, amenities, locations, and tenure. • A-5. Facilitate a mix of affordability levels in residential projects and dispersal of such units to achieve greater integration of affordable housing throughout the community. • Goal B. Increase the production of housing affordable to lower-income households – including extremely-low-income households – and moderate-income households to meet housing needs. • B-3. Assist developers interested in developing new affordable housing for all income groups (extremely low-, very low-, low- and moderate-income households). • Action 1.2 Inclusionary Housing. Explore feasibility of an inclusionary housing program with an in-lieu fee payment option. Once the fee is established, target in-lieu fee applications or construction of affordable projects in moderately resource and specific plan areas.

Discussion:

The City continues to find ways to reduce barriers to housing. Because of its efforts to creat policies to facilitate the production of affordable housing, the City has been designated as a Pro-Housing City by the State of California. This designation recognizes the City’s efforts in having streamlined policies and procedures to support affordable housing efforts. The City is committed to removing barriers and creating more affordable housing opportunities.

Annual Action Plan
2024
43 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions – 91.220(k)
Introduction:

A shortage of funding for affordable housing, homeless services, and community development activities is the primary obstacle to meeting underserved needs in Fairfield. The City of Fairfield actively pursues federal, state, local, and private funding sources to address underserved needs. It will continue exploring new and existing funding sources during the planning period and subsequent years.

Actions planned to address obstacles to meeting underserved needs The City continues to find creative resources to address the needs of the underserved populations. The Coordination with other entities has been a critical resource to gaining traction on the highest level of needs in the communit
• Continue to partner with local and regional housing developers to entitle and complete new affordable housing options for the Citizens of Fairfield • Provide fee deferrals.
• Provide Section 8 Housing Choice Vouchers to low-income households through the Fairfield Housing Authority
• Efforts to ensure that City zoning regulations and other policies support the development of affordable and special needs housing, including Accessory Dwelling Units • Monitor properties with affordability restrictions to determine when restrictions are set to expire and work with property owners to maintain affordability • Encourage the development of second-dwelling units as another source of affordable housing, especially for senior citizens and individuals
• Provide fee credits for affordable housing developers • Provide first-time homebuyer down payment assistance
Actions planned to foster and maintain affordable housing • Continue to partner with local and regional housing developers to entitle and complete new affordable housing options for the Citizens of Fairfield • Provide fee deferrals.
• Provide Section 8 Housing Choice Vouchers to low-income households through the Fairfield Housing Authority
• Efforts to ensure that City zoning regulations and other policies support the development of affordable and special needs housing, including Accessory Dwelling Units • Monitor properties with affordability restrictions to determine when restrictions are set to expire and work with property owners to maintain affordability • Encourage the development of second-dwelling units as another source of affordable housing,

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especially for senior citizens and individuals
• Provide fee credits for affordable housing developers • Provide first-time homebuyer down payment assistance
• The City has started a Housing Trust Fund to assist with maintaining and adding new affordable housing units
Actions planned to reduce lead-based paint hazards
The City has developed a Lead-Based Paint Implementation Plan (LBP Plan) that describes the actions to be taken and the responsibility for compliance with lead-based paint abatement regulations (24 CFR 35 and Title X of the Housing and Community Development Act of 1992) under each of its existing affordable housing programs. The City will continue to ensure that any homes constructed before 1978, which are assisted through the 'City's Homeowner Housing Rehabilitation Program, will follow lead- based paint abatement requirements.

Actions planned to reduce the number of poverty-level families On an ongoing basis, the City of Fairfield addresses poverty more broadly through City programs and cooperation with other governmental agencies and local service organizations. The City’s affordable housing policies discussed in the Consolidated Plan assist in providing affordable housing to lower- income households. Affordable housing is a necessary first step in overcoming poverty for many low- income households. Most households experiencing high housing cost burdens, overcrowding, or other unstable living environments often cannot overcome poverty without first securing suitable affordable housing.

Actions planned to develop institutional structure
Work in conjunction with the Fairfield Housing Authority. The City of Fairfield Housing Services Department will continue to work closely with the Fairfield Housing Authority to ensure quality housing for all low-income City residents. The working relationship between these organizations is strong and facilitative. The Housing Authority is a division of the Housing Services Department; therefore, communication is typically direct and immediate. As a result, gaps in program or service delivery are typically not the result of poor institutional structure or lack of intergovernmental cooperation but rather due to shortcomings in available resources.

Participate on the Board of the Homeless Continuum of Care. T he City shall continue its active participation in the Solano County Continuum of Care, which is critical in coordinating services between public agencies, affordable housing providers, and social service agencies. Representatives from the City of Fairfield City“s Manager’s Office and Fairfield Police Department plan to continue to serve on the

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Continuum of Care Governing Board to further these efforts.

Participate in the Regional Steering Committee on Homelessness and Housing. The Homeless Services Division will continue to attend the Homeless Continuums of Care (CoCs) regional meeting for the Bay Area, working with the other CoCs to end homelessness and increase the affordable housing stock to people with incomes from 0-30% AMI.

Coordinate with Non-p rofits and Service Providers. The City of Fairfield will continue to engage in ongoing internal coordination with other agencies to address the needs of affordable housing, homelessness, and community development in the city. This coordination will continue during the 2024-25 program year.

Actions planned to enhance coordination between public and private housing and social service agencies
The Housing Services Department will work closely with other City departments and the community to develop programs and activities that improve Fairfield’s low- and moderate-income neighborhoods. The administration of program activities includes housing, public facility and infrastructure improvements, public and social service activities, and economic development activities. Moreover, the City collaborates with public agencies, for-profit agencies, faith-based organizations, and non-profit organizations to leverage the identified programs and services.

In addition, on an ongoing basis, the City of Fairfield works with affordable housing developers to construct and manage affordable housing in the city and with Solano county agencies and non-profit service providers to provide social services to residents. The City will continue to support these entities in achieving affordable housing, homeless services, and community development goals during the program year and subsequent years.

Discussion:

As part of the City of Fairfield’s ongoing efforts to address the housing and neighborhood revitalization needs of the community, the City will continue to explore additional/alternative funding sources.

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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00%

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The City of Fairfield plans to utilize 1000% of its annual allocation to support low and moderate income individuals. All funds will support Fairfield's most vulnerable population. This Action Plan will include LMI information for one year- FY 2024 only.

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