Nevada City City Council
November 8, 2023

City of Nevada City
City Council

REGULAR MEETING
City Hall – Beryl P. Robinson, Jr. Conference Room
317 Broad Street, Nevada City, CA 95959
WEDNESDAY November 8, 2023 6:30 PM

MISSION STATEMENT
The City of Nevada City is dedicated to preserving and enhancing its small-town character and historical architecture while providing quality public services for our current and future residents, businesses, and visitors.

Daniela Fernández, Mayor
Gary Petersen, Vice Mayor Doug Fleming, Council Member
Adam Kline, Council Member Lou Ceci, Council Member
NOTICE TO THE PUBLIC:

The public is encouraged to participate in or observe this meeting by:

1. Attending this meeting in person at the City of Nevada City Council Chambers located at 317 Broad Street Nevada City, California.

2. Observing this meeting live from the City of Nevada City YouTube channel at:
https://www.youtube.com/channel/UCXSQwrXtey12YIl3IbyGMYQ

3. Observe this meeting live from the local government cable channel 17 Public comments may be made:

1. In person: Live at the meeting. Members of the public desiring to speak on a matter appearing on the agenda should ask the Mayor for the opportunity to be heard when the item comes up for Council consideration. Comments for all agenda items are limited to a speaking time of three minutes.

2. Via Zoom: If you choose to join the City Council Meeting via Zoom video conference you will be able to utilize “Raise Hand”. If joining by internet:
https://us02web.zoom.us/j/89009138474 If joining by telephone: Dial 1-669-900-9128 Webinar ID: 890 0913 8474, dial *9 (push the asterisks button followed by the five button) to “Raise Hand”. The Mayor will call on those who wish to speak at the appropriate time, not to exceed three minutes.

3. In writing: Email your comments to [email protected] or provide your comments in writing to the Deputy City Clerk at City Hall. Comments will be accepted until 7pm on the Monday prior to the meeting date. Comments will not be read during the City Council meeting (due to virtual participation option above) but will be forwarded to all Council Members and made available for public review prior to the City Council Meeting. When sending an email, it is extremely helpful to include the following:
• Full Name
• Address (specific or general, i.e.: resident in unincorporated Nevada City) • The item number that you are commenting on
Any writing that is a public record that relates to an agenda item for open session distributed less than 72 hours prior to the meeting will be available for public inspection at City Hall, 317 Broad Street, Nevada City, California during normal business hours. Government Code § 54957.5(b)(1). Copies will also be provided at the appropriate meeting.

In compliance with the Americans with Disabilities Act of 1990, if you need special assistance to participate in this meeting, please contact the Deputy City Clerk at 530-265-0187 Extension 133. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102.35.104 ADA Title II].

MEETING PROCEDURES:

All items on agenda will be open for public comments before final action is taken. Speakers must restrict comments to the item as it appears on the agenda and stay within a three-minute time limit (or lesser time if the Mayor determines it necessary due to the number of persons who may wish to speak on an item). The Mayor similarly has the discretion of limiting the total discussion time for an item as may be necessary.

Members of the public attending City Council meetings shall observe the same rules of order and decorum applicable to the City Council. These Standards and Procedures shall apply to all City Council Meetings, members of the public:
(a) Shall limit comment time to that listed on the agenda; (b) May criticize City policies, procedures, programs and/or services or the acts or omissions of Council Members in carrying out their responsibilities as public officials, but shall refrain from disruptive behavior;
(c) Shall speak only from the podium when recognized by the Mayor, and shall address comments to the Mayor and not to staff or members of the audience; (d) Shall not approach individual Council Members while a meeting is in progress; (e) May provide written materials (10 copies recommended) to the Council during a meeting by giving the materials directly to the City Clerk.

The Mayor or presiding member of the Council has the authority to remove, or designate a person to remove, an individual for disrupting the Council meeting. Disruptive behavior is any action that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting.

Before taking this action, the Mayor/presiding member shall warn the individual that their behavior is disruptive and that failure to cease this behavior may result in their removal. If the behavior does not promptly cease, the individual may be removed.

No warning is required to precede removal if an individual engages in behavior that is a true threat of force. A true threat of force has sufficient indicia of intent and seriousness so that a reasonable observer would perceive it to be an actual threat to use force by the person who makes the threat.

CALL TO ORDER
NISENAN TRIBE RECOGNITION: This City Council Meeting Convenes on the Ancestral Territories of the Nevada City Rancheria Nisenan Tribe

PLEDGE OF ALLEGIANCE
ROLL CALL _____ Mayor Fernández
_____ Vice-Mayor Petersen
_____ Councilmember Fleming
_____ Councilmember Kline
_____ Councilmember Ceci
ADOPTION OF THE AGENDA (This is the time for agenda modifications) ANNOUNCEMENT OF ACTION FROM CLOSED SESSION (if needed)

PRESENTATIONS
Proclamation: Nisenan Heritage Month
Proclamation: Winnie Superette Ribbon Cutting
Proclamation: Sierra Mobile Glass Ribbon Cutting
Proclamation: Nevada County Toy Run 2023
PUBLIC COMMENT: Government Code Section 54954.3 provides that any member of the public may address the City Council on any matter NOT ON THE AGENDA that is within the subject matter jurisdiction of the city. The Brown Act, with limited exceptions, does not allow the Council or staff to discuss issues brought forth under Public Comment. The Council cannot take action on non-agenda items. Concerns may be referred to staff or placed on a future agenda. Please note that comments from the public will also be taken on each agenda item at the time it is heard. Speakers must adhere to the meeting procedures identified above.

CONSENT AGENDA: All items listed under the Consent Agenda are considered to be routine in nature and will be approved by one motion. There will be no separate discussion of these items.

Councilmembers or the City Manager may remove items from the Consent Agenda for separate discussion and action by City Council. Members of the public may request to remove items from the Consent Agenda, during Consent Agenda public comment, for separate discussion and action by the City Council, but action is required by the City Council to do so by motion, second and roll call vote. Unless the City Council removes an item from the Consent Calendar for separate discussion, public comments are invited as to the consent calendar as a whole and limited to three minutes per person (or lesser time if the Mayor determines it necessary due to the number of persons who may wish to speak on the Consent Calendar). Any item removed for separate discussion and action will be taken up following the motion to approve the Consent Agenda.

1. Action Minutes October 18, 2023, Regular Meeting
Recommended Action: Review and approve the minutes

2. Accounts Payable Activity Report – October 2023
Recommended Action: Receive and file the report

3. Police Activity Report October 2023
Recommended Action: Receive and file the report

4. Building Activity Report October 2023
Recommended Action: Receive and file the report

5. Fire Activity Report – September 2023
Recommended Action: Receive and file the report

6. Consideration of Fee Waivers for Recreation Facility Rentals 2024-2028 for Nevada City Lions Club, Boy Scouts of America – Troop 24 & Cub Scouts Pack 23, Nevada County Concert Band, and Nevada County Horseshoe Club Groups Based on Historical and On-Going In-Kind City Contributions
Recommended Action: Approve the fee waivers

7. Consideration of a City Lease Accounting Policy
Recommended Action: Adopt the policy

8. Consideration of a City Unclaimed Property Policy
Recommended Action: Adopt the policy

9. Consideration of Award of Contract with Miles Masonry in an Amount Not-ToExceed $60,939 for Sacramento Street Wall Repair; Authorize a Project Contingency of 10%, Not-To-Exceed $6,094; and Authorize the City Manager to Execute any Contracts or Related Documents
Recommended Action: Award the contract, authorize the contingency, and authorize the City Manager to execute related documents

10. Consideration of Resolution No. 2023-50: Resolution of the City Council of the City of Nevada City, California Authorizing State of California Cannabis Equity Act Grant Funding
Recommended Action: Adopt the resolution
CONSENT ITEMS FORWARD (if needed): Items pulled from the Consent Agenda will be discussed individually with action taken by separate motion.

PUBLIC HEARINGS: Notice to the Public
The City Council, when considering the matter scheduled for hearing, will take the following actions:
a) Open the Public Hearing
b) Presentation by Staff
c) Presentation by Applicant or Appellant (if applicable) d) Accept Public Testimony
e) Applicant or Appellant Rebuttal Period (if applicable) f) Close the Public Hearing
g) Council Comments and questions
h) Council Action
Once the hearing is closed, no further public comment will be taken. If you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you, or someone else, raised orally at the public hearing or in written correspondence received by the city at or before the public hearing.

Public hearings listed for continuance will be continued as noted and posting of this agenda serves as notice of continuance. Any matter not noted for continuance will be posed separately.

11. Conduct a Public Hearing in Consideration of Adoption of Resolution No. 2023-51:

A Resolution of the City Council of the City of Nevada City, California Adopting a Regional Transportation Mitigation Fee (RTMF) Administrative Plan, Authorizing the Execution of an RTMF Agreement and Authorizing the Collection of RTMF Fee Recommended Action: 1) Conduct a public hearing; 2) Adopt the resolution

BUSINESS

12. Second Reading and Consideration of Ordinance 2023-10: An Ordinance of the City of Nevada City, California Imposing a Special Transactions and Use Tax to Be Administered by the California Department of Tax and Fee Administration to Fund the City’s Wildfire Prevention and Mitigation Program
Recommended Action: Hold second reading and adopt the ordinance. *Adoption requires a 4/5 or greater approval by the City Council

13. Consideration of Adoption of Resolution No. 2023-52: A Resolution of the City Council of the City of Nevada City, California Adopting the Nevada City Cannabis Equity Assessment and Creating a Nevada City Cannabis Local Equity Program; and Authorizing a One-Time Fee Waiver / Reimbursement for Equity Participants in an Amount Not-To-Exceed $10,000
Recommended Action: Adopt the resolution and authorize the fee waiver

14. Consideration of a Grant Modification for the Proposition 64 Cohort 3 Grant Award Related to Turf Field Conversion and Other Potential Project Amenities Recommended Action: Provide direction to staff with regard to the grant modification

15. Consideration of the Input Provided to the Strategic Initiative Business Committee as Referred by the City Council in Relation to Ordinance 2023-08: An Ordinance of the City Council of the City of Nevada City, State of California Amending Section

17.68.080 of Chapter 17.68 (“COMBINING DISTRICT REGULATIONS”) and Section 17.80.190 of Chapter 17.80 (“DEVELOPMENT PERFORMANCE STANDARDS”) both of Title 17 (“ZONING”) of the City of Nevada City Municipal Code, Relating to the Lighting of Signs
Recommended Action: Provide direction with regard to adopting or modifying the ordinance

CITY MANAGER, COUNCILMEMBER REPORTS AND FUTURE AGENDA ITEMS

ADJOURNMENT
The meeting will adjourn at 9:30 P.M. unless a decision is made by motion of a Councilmember to extend the time.

Certification of Posting of Agenda
I, Gabrielle Christakes, Deputy City Clerk for the City of Nevada City, declare that the foregoing agenda for the November 8, 2023, Regular Meeting of the Nevada City City Council was posted November 3, at the entrance of City Hall. The agenda, along with staff reports, is also posted on the City’s website.

Signed November 3, 2023, at Nevada City, California
____________________________________________________
Gabrielle Christakes, Deputy City Clerk
City of Nevada City
City Council

REGULAR MEETING
City Hall – Beryl P. Robinson, Jr. Conference Room
317 Broad Street, Nevada City, CA 95959
WEDNESDAY November 8, 2023 6:30 PM

MISSION STATEMENT
The City of Nevada City is dedicated to preserving and enhancing its small-town character and historical architecture while providing quality public services for our current and future residents, businesses, and visitors.

Daniela Fernández, Mayor
Gary Petersen, Vice Mayor Doug Fleming, Council Member
Adam Kline, Council Member Lou Ceci, Council Member
NOTICE TO THE PUBLIC:

The public is encouraged to participate in or observe this meeting by:

1. Attending this meeting in person at the City of Nevada City Council Chambers located at 317 Broad Street Nevada City, California.

2. Observing this meeting live from the City of Nevada City YouTube channel at:
https://www.youtube.com/channel/UCXSQwrXtey12YIl3IbyGMYQ

3. Observe this meeting live from the local government cable channel 17 Public comments may be made:

1. In person: Live at the meeting. Members of the public desiring to speak on a matter appearing on the agenda should ask the Mayor for the opportunity to be heard when the item comes up for Council consideration. Comments for all agenda items are limited to a speaking time of three minutes.

2. Via Zoom: If you choose to join the City Council Meeting via Zoom video conference you will be able to utilize “Raise Hand”. If joining by internet:
https://us02web.zoom.us/j/89009138474 If joining by telephone: Dial 1-669-900-9128 Webinar ID: 890 0913 8474, dial *9 (push the asterisks button followed by the five button) to “Raise Hand”. The Mayor will call on those who wish to speak at the appropriate time, not to exceed three minutes.

3. In writing: Email your comments to [email protected] or provide your comments in writing to the Deputy City Clerk at City Hall. Comments will be accepted until 7pm on the Monday prior to the meeting date. Comments will not be read during the City Council meeting (due to virtual participation option above) but will be forwarded to all Council Members and made available for public review prior to the City Council Meeting. When sending an email, it is extremely helpful to include the following:
• Full Name
• Address (specific or general, i.e.: resident in unincorporated Nevada City) • The item number that you are commenting on
Any writing that is a public record that relates to an agenda item for open session distributed less than 72 hours prior to the meeting will be available for public inspection at City Hall, 317 Broad Street, Nevada City, California during normal business hours. Government Code § 54957.5(b)(1). Copies will also be provided at the appropriate meeting.

In compliance with the Americans with Disabilities Act of 1990, if you need special assistance to participate in this meeting, please contact the Deputy City Clerk at 530-265-0187 Extension 133. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102.35.104 ADA Title II].

MEETING PROCEDURES:

All items on agenda will be open for public comments before final action is taken. Speakers must restrict comments to the item as it appears on the agenda and stay within a three-minute time limit (or lesser time if the Mayor determines it necessary due to the number of persons who may wish to speak on an item). The Mayor similarly has the discretion of limiting the total discussion time for an item as may be necessary.

Members of the public attending City Council meetings shall observe the same rules of order and decorum applicable to the City Council. These Standards and Procedures shall apply to all City Council Meetings, members of the public:
(a) Shall limit comment time to that listed on the agenda; (b) May criticize City policies, procedures, programs and/or services or the acts or omissions of Council Members in carrying out their responsibilities as public officials, but shall refrain from disruptive behavior;
(c) Shall speak only from the podium when recognized by the Mayor, and shall address comments to the Mayor and not to staff or members of the audience; (d) Shall not approach individual Council Members while a meeting is in progress; (e) May provide written materials (10 copies recommended) to the Council during a meeting by giving the materials directly to the City Clerk.

The Mayor or presiding member of the Council has the authority to remove, or designate a person to remove, an individual for disrupting the Council meeting. Disruptive behavior is any action that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting.

Before taking this action, the Mayor/presiding member shall warn the individual that their behavior is disruptive and that failure to cease this behavior may result in their removal. If the behavior does not promptly cease, the individual may be removed.

No warning is required to precede removal if an individual engages in behavior that is a true threat of force. A true threat of force has sufficient indicia of intent and seriousness so that a reasonable observer would perceive it to be an actual threat to use force by the person who makes the threat.

CALL TO ORDER
NISENAN TRIBE RECOGNITION: This City Council Meeting Convenes on the Ancestral Territories of the Nevada City Rancheria Nisenan Tribe

PLEDGE OF ALLEGIANCE
ROLL CALL _____ Mayor Fernández
_____ Vice-Mayor Petersen
_____ Councilmember Fleming
_____ Councilmember Kline
_____ Councilmember Ceci
ADOPTION OF THE AGENDA (This is the time for agenda modifications) ANNOUNCEMENT OF ACTION FROM CLOSED SESSION (if needed)

PRESENTATIONS
Proclamation: Nisenan Heritage Month
Proclamation: Winnie Superette Ribbon Cutting
Proclamation: Sierra Mobile Glass Ribbon Cutting
Proclamation: Nevada County Toy Run 2023
PUBLIC COMMENT: Government Code Section 54954.3 provides that any member of the public may address the City Council on any matter NOT ON THE AGENDA that is within the subject matter jurisdiction of the city. The Brown Act, with limited exceptions, does not allow the Council or staff to discuss issues brought forth under Public Comment. The Council cannot take action on non-agenda items. Concerns may be referred to staff or placed on a future agenda. Please note that comments from the public will also be taken on each agenda item at the time it is heard. Speakers must adhere to the meeting procedures identified above.

CONSENT AGENDA: All items listed under the Consent Agenda are considered to be routine in nature and will be approved by one motion. There will be no separate discussion of these items.

Councilmembers or the City Manager may remove items from the Consent Agenda for separate discussion and action by City Council. Members of the public may request to remove items from the Consent Agenda, during Consent Agenda public comment, for separate discussion and action by the City Council, but action is required by the City Council to do so by motion, second and roll call vote. Unless the City Council removes an item from the Consent Calendar for separate discussion, public comments are invited as to the consent calendar as a whole and limited to three minutes per person (or lesser time if the Mayor determines it necessary due to the number of persons who may wish to speak on the Consent Calendar). Any item removed for separate discussion and action will be taken up following the motion to approve the Consent Agenda.

1. Action Minutes October 18, 2023, Regular Meeting
Recommended Action: Review and approve the minutes

2. Accounts Payable Activity Report – October 2023
Recommended Action: Receive and file the report

3. Police Activity Report October 2023
Recommended Action: Receive and file the report

4. Building Activity Report October 2023
Recommended Action: Receive and file the report

5. Fire Activity Report – September 2023
Recommended Action: Receive and file the report

6. Consideration of Fee Waivers for Recreation Facility Rentals 2024-2028 for Nevada City Lions Club, Boy Scouts of America – Troop 24 & Cub Scouts Pack 23, Nevada County Concert Band, and Nevada County Horseshoe Club Groups Based on Historical and On-Going In-Kind City Contributions
Recommended Action: Approve the fee waivers

7. Consideration of a City Lease Accounting Policy
Recommended Action: Adopt the policy

8. Consideration of a City Unclaimed Property Policy
Recommended Action: Adopt the policy

9. Consideration of Award of Contract with Miles Masonry in an Amount Not-ToExceed $60,939 for Sacramento Street Wall Repair; Authorize a Project Contingency of 10%, Not-To-Exceed $6,094; and Authorize the City Manager to Execute any Contracts or Related Documents
Recommended Action: Award the contract, authorize the contingency, and authorize the City Manager to execute related documents

10. Consideration of Resolution No. 2023-50: Resolution of the City Council of the City of Nevada City, California Authorizing State of California Cannabis Equity Act Grant Funding
Recommended Action: Adopt the resolution
CONSENT ITEMS FORWARD (if needed): Items pulled from the Consent Agenda will be discussed individually with action taken by separate motion.

PUBLIC HEARINGS: Notice to the Public
The City Council, when considering the matter scheduled for hearing, will take the following actions:
a) Open the Public Hearing
b) Presentation by Staff
c) Presentation by Applicant or Appellant (if applicable) d) Accept Public Testimony
e) Applicant or Appellant Rebuttal Period (if applicable) f) Close the Public Hearing
g) Council Comments and questions
h) Council Action
Once the hearing is closed, no further public comment will be taken. If you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you, or someone else, raised orally at the public hearing or in written correspondence received by the city at or before the public hearing.

Public hearings listed for continuance will be continued as noted and posting of this agenda serves as notice of continuance. Any matter not noted for continuance will be posed separately.

11. Conduct a Public Hearing in Consideration of Adoption of Resolution No. 2023-51:

A Resolution of the City Council of the City of Nevada City, California Adopting a Regional Transportation Mitigation Fee (RTMF) Administrative Plan, Authorizing the Execution of an RTMF Agreement and Authorizing the Collection of RTMF Fee Recommended Action: 1) Conduct a public hearing; 2) Adopt the resolution

BUSINESS

12. Second Reading and Consideration of Ordinance 2023-10: An Ordinance of the City of Nevada City, California Imposing a Special Transactions and Use Tax to Be Administered by the California Department of Tax and Fee Administration to Fund the City’s Wildfire Prevention and Mitigation Program
Recommended Action: Hold second reading and adopt the ordinance. *Adoption requires a 4/5 or greater approval by the City Council

13. Consideration of Adoption of Resolution No. 2023-52: A Resolution of the City Council of the City of Nevada City, California Adopting the Nevada City Cannabis Equity Assessment and Creating a Nevada City Cannabis Local Equity Program; and Authorizing a One-Time Fee Waiver / Reimbursement for Equity Participants in an Amount Not-To-Exceed $10,000
Recommended Action: Adopt the resolution and authorize the fee waiver

14. Consideration of a Grant Modification for the Proposition 64 Cohort 3 Grant Award Related to Turf Field Conversion and Other Potential Project Amenities Recommended Action: Provide direction to staff with regard to the grant modification

15. Consideration of the Input Provided to the Strategic Initiative Business Committee as Referred by the City Council in Relation to Ordinance 2023-08: An Ordinance of the City Council of the City of Nevada City, State of California Amending Section

17.68.080 of Chapter 17.68 (“COMBINING DISTRICT REGULATIONS”) and Section 17.80.190 of Chapter 17.80 (“DEVELOPMENT PERFORMANCE STANDARDS”) both of Title 17 (“ZONING”) of the City of Nevada City Municipal Code, Relating to the Lighting of Signs
Recommended Action: Provide direction with regard to adopting or modifying the ordinance

CITY MANAGER, COUNCILMEMBER REPORTS AND FUTURE AGENDA ITEMS

ADJOURNMENT
The meeting will adjourn at 9:30 P.M. unless a decision is made by motion of a Councilmember to extend the time.

Certification of Posting of Agenda
I, Gabrielle Christakes, Deputy City Clerk for the City of Nevada City, declare that the foregoing agenda for the November 8, 2023, Regular Meeting of the Nevada City City Council was posted November 3, at the entrance of City Hall. The agenda, along with staff reports, is also posted on the City’s website.

Signed November 3, 2023, at Nevada City, California
____________________________________________________
Gabrielle Christakes, Deputy City Clerk
Honoring National Native American Heritage Month and Nisenan Heritage Day

PROCLAMATION
WHEREAS, During November, the City of Nevada City recognizes two separate yet inextricably intertwined celebrations. The month of November is National Native American Heritage Month, and the 2023 occurrence is “Celebrating Tribal Sovereignty and Identity”. November is also Nisenan Heritage Month and November 4th, 2023, is Nisenan Heritage Day: Changing Perspectives; and WHEREAS, During National Native American Heritage Month and Nisenan Heritage Month, the City recognizes the invaluable contributions of Native peoples and their tribal governments that have shaped our City, County, region, and country and honor the hundreds of tribal nations which continue exercising their inherent sovereignty as vital members of the overlapping system of governments in the United States; and
WHEREAS, The City also recognizes that many tribal governments have had their federal recognition illegally terminated and the City reaffirms its commitment to support the Nevada City Rancheria Nisenan Tribe in its effort to restore its federal recognition; and WHEREAS, The City calls upon the United States Secretary of the Interior Deb Haaland, and our Congressman the Honorable Kevin Kiley to advance the Nevada City Rancheria Nisenan Tribe’s federal recognition in partnership with the commitment of President Joseph Biden who, in his National Native American Heritage month proclamation for 2023 stated, “We also recommit to supporting Tribal sovereignty; upholding the Federal Government’s solemn trust and treaty responsibilities; and working in partnership with Tribal Nations to advance prosperity, dignity, and safety for all native peoples”; and WHEREAS, It is not enough to simply recognize the near genocide of the Nisenan people which occurred as direct impact of the development of the City of Nevada City. The City and many of our businesses, nonprofits, and other government bodies provide a land acknowledgement at the beginning of the meetings.

These words must be more than spoken, they must be acted upon; and WHEREAS, The City Council of the City of Nevada City has, in City Council Resolution 2020-72 (September 23, 2020) pledged support to the Nevada City Rancheria Nisenan Tribe to preserve and protect the Tribe’s and its members’ Native culture and acknowledging the ancestral Nisenan Lands. Specifically, the City Council resolved:

1. We acknowledge the continued existence of our oldest Nevada County residents and citizens, the Nisenan Indian people; and

2. We support the Nevada City Rancheria Nisenan Tribe in their effort to restore their Federal Recognition; and

3. We support the restoration of the Tribe’s Federal status and all rights that come with it; and

4. We support the Tribe’s request to have lands within Nevada County taken into trust; and

5. We support the Tribe’s inherent rights to self-governance; and

6. We recommend that the U.S. Congress enact legislation to restore Federal Recognition to the Nevada City Rancheria; and

7. We recommend that the State of California adopt a Joint State Resolution in support of the restoration of Federal Recognition to the Nevada City Rancheria; and

8. We recommend our local Nevada County Board of Supervisors adopt a resolution in support of the restoration of the Federal Recognition of the Nevada City Rancheria.

WHEREAS, The City Council has included the Nevada City Rancheria Nisenan Tribe as an embedded strategic initiative within the 2022-2027 Strategic Plan committing to support for and collaboration with the Tribe in all decision making and goal setting; and
WHEREAS, The City is honored to be the first government entity to participate in the California Heritage:

Indigenous Research Project (CHIRP) Ancestral Homelands Reciprocity Program (AHRP) through direct financial support;
NOW, THEREFORE, be it resolved that the City Council of the City of Nevada City does hereby recognize November 2023 as National Native American Heritage month and Nisenan Heritage month and recognize November 4, 2023, as Nisenan Heritage Day.

Dated this 8th day of November 2023
______________________________________
Daniela Fernández, Mayor

Honoring the Grand Opening and Ribbon Cutting of Winnie Superette

PROCLAMATION
WHEREAS, business initiation, development, growth and expansion are important threads that bind strong communities, and Winnie Superette is open for business at 315 Commercial Street; and WHEREAS, Winnie Superette is a small, modern Asian market offering curated beverages, snacks, groceries, and homewares. They also feature weekly local produce, to-go food and baked goods. They’re stocked with hard-to-find nostalgic favorites and new specialty goods by mostly AAPI brands; and WHEREAS, Winnie Superette is new as business, but continues the long tradition of a retail presence at the location in the historic downtown; and
WHEREAS, Anne Han is owner of Winnie Superette; and
WHEREAS, Anne notes that “The idea to open an Asian market grew from my own need of wanting to find ingredients to make Korean food during lockdown, which is when I moved to Nevada City from LA. My goal is to cultivate a local community of Asian food lovers. We welcome anyone who appreciates learning about Asian cuisine and trying new flavors”; and
WHEREAS, a grand opening and ribbon cutting ceremony will be held at Winnie Superette on Saturday November 11, 2023, at 12pm; and
WHEREAS, the grand opening and ribbon cutting ceremony will be an opportunity for the City, community, visitors, and other businesses to visit and enjoy Winnie Superette; and WHEREAS, the City Council and the City of Nevada City wish to recognize and applaud businesses as investors in our community;
NOW, THEREFORE, be it resolved that the City Council of the City of Nevada City does hereby honor the opening of Winnie Superette and urges those who visit, live, work, and play in Nevada City to Eat and Shop Local by patronizing Winnie Superette and all of our Nevada City businesses, or by attending the grand opening and ribbon cutting ceremony on November 11, 2023.

Dated this 8th day of November 2023
______________________________________
Daniela Fernández, Mayor

Honoring the Grand Opening and Ribbon Cutting of Sierra Mobile Glass

PROCLAMATION
WHEREAS, business initiation, development, growth, and expansion are important threads that bind strong communities, and Sierra Mobile Glass is open for business at 208 Gold Flat Court; and WHEREAS, Sierra Mobile Glass is new as business, but continues the long tradition of a service presence at the location in New Mohawk Light Industrial area; and WHEREAS, Diana Hartley is owner of Sierra Mobile Glass; and WHEREAS, Diana notes that “We moved to Nevada County in December of 2021. We wanted to contribute our skills in the automotive repair industry which our background is in. WE chose Nevada City, as we love the feel of the community. We at Sierra Mobile Glass emphasize on giving back to this wonderful community that has welcomed us. We strive to donate one windshield per month to a nominated community member in need as our way of giving back”; and WHEREAS, a grand opening and ribbon cutting ceremony will be held at Sierra Mobile Glass on Saturday November 15, 2023, at 4pm; and
WHEREAS, the grand opening and ribbon cutting ceremony will be an opportunity for the City, community, visitors, and other businesses to visit and enjoy Sierra Mobile Glass; and WHEREAS, the City Council and the City of Nevada City wish to recognize and applaud businesses as investors in our community;
NOW, THEREFORE, be it resolved that the City Council of the City of Nevada City does hereby honor the opening of Sierra Mobile Glass and urges those who visit, live, work, and play in Nevada City to seek services and shop local by patronizing Sierra Mobile Glass and all of our Nevada City businesses, or by attending the grand opening and ribbon cutting ceremony on November 15, 2023.

Dated this 8th day of November 2023
______________________________________
Daniela Fernández, Mayor
Nevada County Food and Toy Run Day 2023

PROCLAMATION
WHEREAS, the Nevada County Food and Toy Run Day celebrates its 32nd year of bringing motorcyclists to the Gold Country on Saturday, December 9th
, 2023; and
WHEREAS, the Nevada County Food and Toy Run is a community event benefiting Head Start and local families in need. This year’s event will be making sure 400 families have a Christmas with food and toys; and
WHEREAS, on that day, we’ll see 1,500 to 2,000 participants on motorcycles being escorted from the Eric Rood Administration Building at the Government Center, through Nevada City, Grass Valley and ending at the Nevada County Fairgrounds, with thousands of spectators lining the route with a continual stream of motorcycles for over forty-five minutes; and
WHEREAS, Whereas, the Nevada County Food and Toy Run was the first Toy Run to have the families there so the motorcyclists could watch their toys being picked up by the children; and WHEREAS, the Nevada County Food and Toy Run has gained the trust and support of the City of Nevada City and the County of Nevada and all branches of local law enforcement as they join in cooperation with the Toy Run organizers to make this a well-executed event; and WHEREAS, since its inception in 1991, the Nevada County Food and Toy Run has gained the reputation as the safest Toy Run in Northern California, and one that has never been postponed or canceled; and WHEREAS, the Nevada County Food and Toy Run Board of Directors, Eric Oliver CEO, Chelci Buehler CFO and Shannon Buehler Vice President, in collaboration with Interfaith Food Ministries, The Nevada County Food Bank, and Head Start, working together with many local stores and volunteers, will make many families holidays brighter by having this wonderful annual event; we thank them for their efforts and dedication to our community;
NOW, THEREFORE, be it resolved that the City Council of the City of Nevada City, California herby proclaims Saturday, December 9th, 2023, as Nevada County Food and Toy Run Day.

BE IT FURTHER RESOLVED, that the entire community is encouraged to ride a motorcycle or grab a chair and find a favorite viewing area and line the streets of Nevada City as the motorcycles begin the ride to show support for this event.

Dated this 8th day of November 2023
______________________________________
Daniela Fernández
Mayor
1 CITY OF NEVADA CITY

ACTION MINUTES
REGULAR CITY COUNCIL MEETING OF OCTOBER 18, 2023
NOTE: This meeting is available to view on the City’s website www.nevadacityca.gov – Go to Quick Links and Click on Agendas & Minutes and find the Archived Videos in the middle of the screen. Select the meeting date and Click on Video to watch the meeting. For website assistance, please contact Gabrielle Christakes, Deputy City Clerk at (530) 265-2496, ext 133. - City Council Meetings are available on DVD. To order, contact City Hall - cost is $15.00 per DVD. - Closed Session Meetings are not recorded.

REGULAR MEETING – 6:33 PM - Call to Order

NISENAN TRIBE RECOGNITION
PLEDGE OF ALLEGIANCE:

Roll Call: Present: Mayor Fernàndez, Councilmembers Petersen, Ceci Councilmember Kline joined meeting virtually at 6:38pm see below REQUEST FROM THE CITY MANAGER TO ADD AN EMERGENCY ITEM:

Action: Motion by Petersen, seconded by Ceci to add an emergency item to consider remote participation of Councilmember Kline to the agenda.
(Approved 3-0) Fernàndez, Petersen, Ceci

CONSIDERATION OF APPROVING REMOTE PARTICIPATION OF COUNCILMEMBER KLINE FOR JUST CAUSE :

Action: Motion by Ceci, seconded by Petersen to approve remote participation of Councilmember Kline for “Just Cause”.
(Approved 3-0) Fernàndez, Petersen, Ceci
ADOPTION OF THE AGENDA: (Councilmember Kline entered the meeting at 6:38 and was present for this item and throughout the remainder of the meeting participating remotely) Action: Motion by Petersen, seconded by Ceci to adopt the Agenda for October 18, 2023 Meeting (Approved 4-0) Fernàndez, Petersen, Kline, Ceci
PUBLIC COMMENT (Per Government Code Section 54954.3)
Please refer to the meeting video on the City’s website at www.nevadacityca.gov.

PRESENTATIONS
Holy Trinity Episcopal Church 150 Year Anniversary
CONSENT ITEMS:

1. Action Minutes October 4, 2023, Regular Meeting
Recommended Action: Review and approve the minutes
2 2. Consideration of Public Notice of Vacancy on the Public Arts Commission and Directing the Solicitation of Applicants for the Vacancies
Recommended Action: Receive and file the notice

3. Consideration of Public Notice of Vacancy on the Fire Safety Advisory Committee and Directing the Solicitation of Applicants for the Vacancy Recommended Action: Receive and file the notice

4. Consideration of a City Investment Report for the 3rd Quarter 2023 Recommended Action: Receive and file the report

5. Consideration of Resolution 2023-47: A Resolution of the City of Nevada City Calling a General Municipal Election on March 5, 2023 for the Purpose of Electing Three Members to the City Council and Requesting the Services of the Registrar of Voters and Ordering the Consolidation of the Election
Recommended Action: Adopt the resolution
Action: Motion by Kline, Seconded by Petersen, to approve items 1 through 5 on Consent (Approved 4-0) Fernàndez, Petersen, Kline, Ceci

BUSINESS

6. Consideration of Adoption of Resolution 2023-48: A Resolution of the City of Nevada City, California, Submitting a Special Transactions and Use Tax Measure to the Voters at the March 5, 2024 General Municipal Election and Taking Certain Related Actions; Consideration of Ordinance 2023-10: An Ordinance of the City of Nevada City, California Imposing a Special Transactions and Use Tax to Be Administered by the California Department of Tax and Fee Administration to Fund the City’s Wildfire Prevention and Mitigation Program; and Consideration of Adoption of the Nevada City Wildfire Prevention and Mitigation Plan as Developed by the Nevada City Fire Safety Advisory Committee Recommended Action: By separate motion, second and roll call vote: 1) Adopt Resolution 2023- 48; 2) Hold first reading, waive reading of Ordinance 2023-10 in its entirety, read by title only, and schedule for second reading and adoption November 8, 2023; and 3) Adopt the Nevada City Wildfire Prevention and Mitigation Plan.

Action 1: Motion by Kline, Seconded by Petersen, to adopt Resolution 2023-48 Submitting a Special Transactions and Use Tax Measure to the Voters at the March 5, 2024 General Municipal Election and Taking Certain Related Actions;
(Approved 4-0) Fernàndez, Petersen, Kline, Ceci
Action 2: Motion by Kline, Seconded by Ceci to hold first reading, waive reading of Ordinance 2023-10 in its entirety, read by title only
(Approved 4-0) Fernàndez, Petersen, Kline, Ceci
Action 3: Motion by Petersen, Seconded by Ceci to Adopt the Nevada City Wildfire Prevention and Mitigation Plan
(Approved 4-0) Fernàndez, Petersen, Kline, Ceci

7. Consideration of Award of Contract with C&D Contractors Inc. in an Amount Not-To-Exceed $170,810 for Sewer Line Trestle Bridge Repair; Authorize a Project Contingency of 10%, Not-To- 3 Exceed $17,081; and Authorize the City Manager to Execute any Contracts or Related Documents
Recommended Action: Award the contract, authorize the contingency, and authorize the City Manager to execute related documents
Action: Motion by Petersen, Seconded by Kline, to Award the contract, authorize the contingency, and authorize the City Manager to execute related documents s; (Approved 4-0) Fernàndez, Petersen, Kline, Ceci

8. Consideration of Resolution 2023-49: A Resolution of the City Council of the City of Nevada City Adopting the City of Nevada City 2024 Legislative Platform and Authorizing the Mayor and City Manager to Have Signature Authority for Letters of Advocacy Recommended Action: Adopt the resolution
Action: Motion by Ceci, Seconded by Kline, to Adopt Resolution 2023-49: Adopting the City of Nevada City 2024 Legislative Platform and Authorizing the Mayor and City Manager to Have Signature Authority for Letters of Advocacy
(Approved 4-0) Fernàndez, Petersen, Kline, Ceci
CITY MANAGER AND COUNCILMEMBER REPORTS: Verbal report provided ADJOURNMENT: 7:40 PM
AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Daniela Fernàndez, Mayor
ATTEST:
____________________________
Niel Locke, City Clerk

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 02
Subject: Accounts Payable Activity Report October 2023
From: Brittnie Neundorfer, Accounting Technician
Date: October 31, 2023
Reviewed & Approved:

City Manager: STG
City Attorney:

Recommended Action: Receive and file the report.

ISSUE STATEMENT AND DISCUSSION:

The attached Accounts Payable Report for October 2023 reviews the accounts payable and check register for the month.

FINANCIAL AND/OR POLICY IMPLICATIONS:

None.

STRATEGIC PLAN ALIGNMENT:

This action, reporting on the program, is consistent with the embedded strategic initiative of Engagement:

Community engagement and communications with stakeholders.

ENVIRONMENTAL CONSIDERATIONS:

None.

LEGAL REVIEW:

City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.

ATTACHMENTS:

Accounts Payable Report October 2023

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 08, 2023 Agenda Item No. 03
Subject: Police Activity Report October 2023
From: Dan Foss, Chief of Police
Date: October 31, 2023
Reviewed & Approved:

City Manager: STG
City Attorney:

Recommended Action: Receive and file the report.

ISSUE STATEMENT AND DISCUSSION:

Attached is the Nevada City Police Department's monthly statistical crime report for October 2023. Refer to the attached spreadsheet for additional information.

Being the spooky month that October is known to be, we still saw a dramatic decrease in crime from last year. With an increase in foot patrol and regular bar checks on the weekends, the department has observed a reduction in alcohol-related arrests and property crime.

We are also happy to report that Halloween was a great success with minimal issues. With several thousand people coming to town to enjoy the holiday, the only crimes reported were three separate cases of lost juveniles (all quickly returned to their parents) and one report of an armed soldier (it was a costume with a Nerf gun). The department was out on foot and bike patrol all night, ensuring the community was safe for all to enjoy. Officers Kendrick and Stofleth rode the patrol bicycles for several hours on Halloween night to ensure the safety of all.

Code enforcement for the Nevada City Police Department worked on several long-term illegal camps throughout the city. The process involves contacting the camp's occupants, providing services, and placing them in direct contact with local organizations such as Home-team to provide long-term housing and other services. As we come into the colder months of the year, illegal campsites are a danger to the occupants due to poor weather and the surrounding community from the high risk of fire from warming fires that are regularly utilized at the camp locations. They can also be a tremendous eye-sore for the community.

Nevada City Police Department will always be available for comments and will notify the council of any concerns.

STRATEGIC PLAN ALIGNMENT:

This action is consistent with the embedded strategic initiative of Engagement: Community engagement and communications with stakeholders.

FINANCIAL AND/OR POLICY IMPLICATIONS:

None.

ENVIRONMENTAL CONSIDERATIONS:

None.

LEGAL REVIEW:

None.

ATTACHMENTS:

October 2023 Case Report

CURRENT PERIOD SAME PERIOD LAST YEAR CHANGE
Type Number Percent Cleared* Percent Number Percent Cleared* Percent Number Percent Case Report Type
0 0% 0 0% 0 0% 0 0% 0 0%
ANIMAL 4 6% 0 0% 0 0% 0 0% 4 400%
ARSON 1 2% 0 0% 0 0% 0 0% 1 100%
ASSAULT - S 3 5% 0 0% 4 5% 0 0% -1 -100%
AUTO THEFT 3 5% 0 0% 0 0% 0 0% 3 300%
DECEASED PERSON 1 2% 0 0% 0 0% 0 0% 1 100%
DISORDERLY 2 3% 1 50% 4 5% 0 0% -2 -200%
DOMESTIC DISPUTE 0 0% 0 0% 1 1% 0 0% -1 -100%
DOMESTIC VIOLENCE 1 2% 1 100% 0 0% 0 0% 1 100%
DUI 2 3% 0 0% 2 3% 1 50% 0 0%
FOUND PROPERTY 8 13% 0 0% 3 4% 0 0% 5 500%
FRAUD 0 0% 0 0% 1 1% 0 0% -1 -100%
GENERAL 1 2% 0 0% 3 4% 1 33% -2 -200%
HIT-RUN-N 2 3% 0 0% 0 0% 0 0% 2 200%
LIQUOR LAWS 1 2% 1 100% 0 0% 0 0% 1 100%
MENTAL HEALTH 1 2% 0 0% 0 0% 0 0% 1 100%
MISC INFO RPT 1 2% 0 0% 9 11% 0 0% -8 -800%
MUNI CODE 1 2% 0 0% 0 0% 0 0% 1 100%
MVSTOP 0 0% 0 0% 4 5% 0 0% -4 -400%
NARCOTICS 2 3% 0 0% 2 3% 1 50% 0 0%
OA 1 2% 0 0% 0 0% 0 0% 1 100%
PROPERTY 1 2% 0 0% 0 0% 0 0% 1 100%
RESIST 1 2% 0 0% 1 1% 0 0% 0 0%
SEX OFFENSE 0 0% 0 0% 1 1% 1 100% -1 -100%
STOLEN PROPERTY 3 5% 0 0% 1 1% 0 0% 2 200%
THEFT 1 2% 1 100% 2 3% 0 0% -1 -100%
TOW 2 3% 0 0% 13 16% 0 0% -11 -1100%
TRAFFIC 2 3% 1 50% 0 0% 0 0% 2 200%
TRAFFIC COLLISION 2 3% 0 0% 0 0% 0 0% 2 200%
TRESPASS 1 2% 0 0% 1 1% 0 0% 0 0%
VANDALISM 3 5% 0 0% 4 5% 0 0% -1 -100%
VOIDED CASE NUMBER 0 0% 0 0% 4 5% 0 0% -4 -400%
WARRANT ARREST 2 3% 1 50% 6 8% 1 17% -4 -400%
WEAPONS 3 5% 0 0% 2 3% 0 0% 1 100%
Total Case Reports 56 6 68 5 -12
RMS-185 v1.10 Printed 10/31/2023 11:17:26 AM Page 1 of 2 Total Pages

CITY OF NEVADA CITY
317 BROAD ST.

POLICE DEPARTMENT

MONTHLY STATISTICAL REPORT

CLEARED BY DISPO STATUS

REPORT PERIOD
October 2023
NEVADA CITY, CA 95959
(530) 265-4700

CURRENT PERIOD SAME PERIOD LAST YEAR CHANGE
Type Number Percent Cleared* Percent Number Percent Cleared* Percent Number Percent Arrest Type
Adult Arrests Felony 6 32% 4 67% 7 24% 2 29% -1 -100%
Adult Arrests Misd 12 63% 2 17% 19 66% 3 16% -7 -700%
Juvenile Arrests Felony 0 0% 0 0% 0 0% 0 0% 0 0%
Juvenile Arrests Misd 1 5% 0 0% 2 7% 0 0% -1 -100%
Warrant Arrests** 0 0% 0 0% 0 0% 0 0% 0 0%
All Other Arrests 0 0% 0 0% 1 3% 0 0% -1 -100%
Total Arrests 19 6 29 5 -10
RMS-185 v1.10 Printed 10/31/2023 11:17:26 AM Page 2 of 2 Total Pages * Cleared - Is determined by the case disposition where the case is cleared by an arrest or an exception. ** Arrest Type, Warrant Arrests - Are Warrant reports where warrant type = 'ARREST'.

CITY OF NEVADA CITY
317 BROAD ST.

POLICE DEPARTMENT

MONTHLY STATISTICAL REPORT

CLEARED BY DISPO STATUS

REPORT PERIOD
October 2023
NEVADA CITY, CA 95959
(530) 265-4700

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 04
Subject: Building Activity Report October 2023
From: Lisa McCandless, Interim City Planner
Date: November 3, 2023
Reviewed & Approved:

City Manager: STG
City Attorney:

Recommended Action: Receive and file the report.

ISSUE STATEMENT AND DISCUSSION:

The attached Building Activity Report for October 2023 reviews the actions and activities for the month.

FINANCIAL AND/OR POLICY IMPLICATIONS:

None.

STRATEGIC PLAN ALIGNMENT:

This action, reporting on the program, is consistent with the embedded strategic initiative of Engagement:

Community engagement and communications with stakeholders.

ENVIRONMENTAL CONSIDERATIONS:

None.

LEGAL REVIEW:

City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.

ATTACHMENTS:

Building Activity Report October 2023
Building Activity Report - Ocotber 2023
Date Record Number Record Type Description Address Status 10/31/2023 233704 Express Permit Undergrounding 120/240 volt subpanel feed. 301 GRACIE ROAD, Nevada City
CA 95959 Received
10/30/2023 233676 Express Permit INSTALLATION OF COOLING 215 PROSPECT STREET, Nevada
City CA 95959 Received
10/27/2023 233671 Express Permit
WEB. REMOVE COMPOSITION ASBESTOS SIDING
AND DISPOSE IN A LICENSED DUMP SITE. MAKE

REPAIRS TO DAMAGED WOOD SIDING, INSTALL
INSULATION, VAPOR BARRIER AND NEW SIDING.

Includes 2 inspection. In progress first (no more
than 60%). Second is final.
322 LONG STREET, Nevada City
CA 95959 Received
10/26/2023 233658 Express Permit
Web. Reroof. Cool Comp. 19 squares. Installed
sewer backflow prevention device to be verified at
final. PPR One inspection. Final required.
215 BOURBON HILL ROAD,
Nevada City CA 95959 Received
10/25/2023 233641 Express Permit
Web. Doing a over lay with GAF reflector series
shingles title 24 cool roof. Includes 2 inspections.

Final required.
219 GETHSEMANE STREET,
Nevada City CA 95959 Issued
10/25/2023 233638 Express Permit
Web. Install new 5.525 kW PV system on home.

Installed sewer backflow prevention device to be
verified at final. Includes two inspections. Final
required.
234 AMERICAN HILL ROAD,
Nevada City CA 95959 Received
10/25/2023 233627 Express Permit
Web. Tear off existing roof on mortuary, install
Owens Corning lifetime shingles. No exemption,
installing cool roof. Installed sewer backflow
prevention device to be verified at final. PPR One
inspection. Final required.
459 HOLLOW WAY, Nevada
City CA 95959 Issued
10/23/2023 233593 Full Review
rebuild existing deck due to storm damage and
dryrot. Same size and shape
411 COYOTE STREET, Nevada
City CA 95959 Received
10/23/2023 233587 Express Permit
Web. Reroof. Cool Comp. 34 squares. Installed
sewer backflow prevention device to be verified at
final. PPR One inspection. Final required.
417 ZION STREET, Nevada City
CA 95959 Received
10/20/2023 233562 Express Permit
Tear off and reroof of single family home on Church
property (parsonage) with Owens Corning Duration
Cool Roof Shingles. Installed sewer backflow
prevention device to be verified at final. Includes 2
inspections
127 COTTAGE STREET, Nevada
City CA 95959 Received
10/19/2023 233552 Full Review
Commercial tenant improvement to remodel
bathroom only. No occupancy changes proposed
under this permit. Includes 2 inspections.
217 BROAD STREET, Nevada
City CA 95959 Ready to Issue
10/19/2023 233553 Over the Counter Per
Remodel existing bathroom. Replace fixtures in same
location. Remove 1 window and add 2 windows.This
permit includes up to 3 inspections. Final inspection
required.
237 BOULDER STREET, Nevada
City CA 95959 Issued
10/18/2023 233536 Over the Counter Per
Upgrade electrical service to 200 amps.Sewer
backflow verification required. Includes 2
inspections.
111 WALRATH AVENUE,
Nevada City CA 95959 Issued
10/12/2023 233487 Full Review
Residential Roof-Mounted Solar 6.12kW/DC 5kW/AC
17 Mods 17 Optimizers1 Inverter1 ESS
111 ORCHARD STREET, Nevada
City CA 95959 Received
10/11/2023 233471 Express Permit
Web. Replace existing heating equipment only.

System located in crawl space of house. Includes
one inspection. Installed sewer backflow prevention
device to be verified at final.
335 GETHSEMANE STREET,
Nevada City CA 95959 Issued
10/9/2023 233452 Express Permit
Web. REPLACEMENT OF FLOOR HEATING ONLY.

Installed sewer backflow prevention device to be
verified at final. Includes one inspection. Final
required.
211 CLAY STREET, Nevada City
CA 95959 Issued
10/6/2023 233432 Full Review
DIGITAL: REPLACEMENT OF EXISTING STORAGE
BUILDING WITH AÂ NEW STRUCTURE IN

APPROXIMATELY THE SAME LOCATION AND FLOOR

AREA OF THE PREVIOUS BUILDING, INCLUDING SITE

IMPROVEMENTS, ACCESSIBILITY AND UTILITY
IMPROVEMENTS.Includes 9 inspections.
255 BOULDER STREET, Nevada
City CA 95959 In Review
10/5/2023 233428 Full Review
Demo 1,537 SF Residential Unit damaged by vehicle.

Includes 2 inspections. Pre Inspection first then 2nd
inspection is final.
347 NILE STREET, Nevada City
CA 95959 Issued
10/2/2023 233379 Express Permit
Feb Storm Damage. Repair and replace 2-3 broken
rafters, drywall, metal roofing - 3 sheets pulled and
replaced, and paint. Sewer backflow already
verified. No action taken. Includes 2 inspections.

Final required.
430 UREN STREET, Nevada City
CA 95959 Finaled
10/2/2023 233376 Full Review
DIGITAL: Convert 488 sf of lower level of existing
residence to a new one bedroom Jr ADU.Includes 3
inspections.
510 MAIN STREET, Nevada City
CA 95959 Ready to Issue

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 05
Subject: Fire Activity Report – September 2023
From: Sam Goodspeed, Division Chief
Date: October 25, 2023
Reviewed & Approved: STG
Recommended Action: Receive and file the report.

ISSUE STATEMENT AND DISCUSSION:

The attached Fire Activity Report reviews the Monthly Responses and Defensible Space Projects for Nevada City Fire Station 5.

FINANCIAL AND/OR POLICY IMPLICATIONS:

Not applicable.

STRATEGIC PLAN ALIGNMENT:

This action is consistent with the embedded strategic initiative of Engagement: Community engagement and communications with stakeholders.

ENVIRONMENTAL CONSIDERATIONS:

Not applicable.

LEGAL REVIEW:

City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.

ATTACHMENTS:
 Outside Unit Responses to Nevada City
 Station 5 Incident Type Summary Report
 Station 5 Response by District
 City of Nevada City Incident Type Report
 Defensible Space Projects
Basic Incident Date Time:

Basic Incident Zone/District Number (Fd1.32):

Apparatus Resource Id (Fd18.1):

Elite grsnev Outside Unit Responses to Nevada City
Total Responses Total Call Time in Minutes Average Time Spent on Call Apparatus Resource ID (FD18.1): Batt 8
3 62 21
Total: 3 Total: 62
Avg: 20.67
Apparatus Resource ID (FD18.1): EMS13
1 2 2
Total: 1 Total: 2
Avg: 2.00
Apparatus Resource ID (FD18.1): Engine 84
6 60 10
Total: 6 Total: 60
Avg: 10.00
Apparatus Resource ID (FD18.1): Engine 86
2 89 45
Total: 2 Total: 89
Avg: 44.50
Apparatus Resource ID (FD18.1): Engine 88
1 1 1
Total: 1 Total: 1
Avg: 1.00
Apparatus Resource ID (FD18.1): Engine2362
1 1 1
Total: 1 Total: 1
Avg: 1.00
Apparatus Resource ID (FD18.1): Rescue 84
21 458 22
Total: 21 Total: 458
Avg: 21.81
Total: 35 Total: 673
Avg: 14.43
Report Criteria
Is Equal To Last Month
Is In 5 - Nevada City Stn 5, 5 - Station 5 - City, Nevada City Stn 5 Is Not In Batt 1, Batt 2, Batt 3, Brush 5, CPT11, Chief 1, Engine 1, Engine 2, Engine 201, Engine 202, Engine 205, Engine 5, OESE4104, OESE4609, P 2, P 3, P1, Squad 2, Truck 2, Utility 1, Utility 2, Utility 5, Utility 54 1 of 1 Printed On: 10/14/2023 08:10:28 AM
Basic Incident Type (Fd1.21):

Apparatus Resource Id (Fd18.1):

Basic Incident Date - Derived (Fd1.3):

Elite grsnev Station 5 Incident Type Report (Summary)
Basic Incident Type Code And
Description (FD1.21)
Total
Incidents
Total Incidents Percent of
Incidents
Total Property
Loss
Total Content
Loss
Total
Loss
Total Loss Percent
of Total
Incident Type Category (FD1.21): 1 - Fire
111 - Building fire 2 2.17%
113 - Cooking fire, confined to container 1 1.09%
118 - Trash or rubbish fire, contained 1 1.09%
141 - Forest, woods or wildland fire 1 1.09%
Total: 5 Total: 5.43% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 3 - Rescue & Emergency Medical Service Incident 311 - Medical assist, assist EMS crew 1 1.09%
321 - EMS call, excluding vehicle accident
with injury
42 45.65%
322 - Motor vehicle accident with injuries 3 3.26%
324 - Motor vehicle accident with no
injuries.
2 2.17%
353 - Removal of victim(s) from stalled
elevator
1 1.09%
381 - Rescue or EMS standby 1 1.09%
Total: 50 Total: 54.35% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 4 - Hazardous Condition (No Fire) 412 - Gas leak (natural gas or LPG) 2 2.17%
462 - Aircraft standby 1 1.09%
480 - Attempted burning, illegal action,
other
1 1.09%
Total: 4 Total: 4.35% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 5 - Service Call
554 - Assist invalid 5 5.43%
Total: 5 Total: 5.43% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 6 - Good Intent Call
611 - Dispatched and cancelled en route 12 13.04%
6111 - Holding in Quarters 2 2.17%
622 - No incident found on arrival at
dispatch address
3 3.26%
Total: 17 Total: 18.48% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 7 - False Alarm & False Call 715 - Local alarm system, malicious false
alarm
1 1.09%
733 - Smoke detector activation due to
malfunction
2 2.17%
735 - Alarm system sounded due to
malfunction
2 2.17%
741 - Sprinkler activation, no fire -
unintentional
1 1.09%
743 - Smoke detector activation, no fire -
unintentional
1 1.09%
745 - Alarm system activation, no fire -
unintentional
4 4.35%
Total: 11 Total: 11.96% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Total: 92 Total: 100.00% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Report Criteria
Is Not Blank
Is In Brush 5, Chief 5400, Engine 5, Utility 5
Is Equal To Last Month
1 of 2 Printed On: 10/14/2023 08:02:51 AM
Agency Name: Is Equal To Grass Valley Fire Department
2 of 2 Printed On: 10/14/2023 08:02:51 AM
Apparatus Resource Id (Fd18.1):

Basic Incident Date - Derived (Fd1.3):

Elite grsnev Station 5 Response by District
Basic Incident Zone/District Number (FD1.32) Number of Incidents 6 2 - Station 2 - City 37
5 - Station 5 - City 38
NCC 54 6
NCC 84 6
NCC 86 1
NCC 87 2
Penn Valley 1
Rough & Ready 1
Report Criteria
Is In Brush 5, Chief 5400, Engine 5, Utility 5
Is Equal To Last Month
1 of 1 Printed On: 10/14/2023 08:02:50 AM
Basic Incident Zone/District Number (Fd1.32):

Basic Incident Postal Code (Fd1.19):

Basic Incident Date - Derived (Fd1.3):

Agency Name:

Elite grsnev City of Nevada City Incident Type Report (Summary) Basic Incident Type Code And
Description (FD1.21)
Total
Incidents
Total Incidents Percent of
Incidents
Total Property
Loss
Total Content
Loss
Total
Loss
Total Loss Percent
of Total
Incident Type Category (FD1.21): 1 - Fire
111 - Building fire 1 2.13%
Total: 1 Total: 2.13% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 3 - Rescue & Emergency Medical Service Incident 321 - EMS call, excluding vehicle accident
with injury
34 72.34%
322 - Motor vehicle accident with injuries 1 2.13%
381 - Rescue or EMS standby 1 2.13%
Total: 36 Total: 76.60% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 4 - Hazardous Condition (No Fire) 412 - Gas leak (natural gas or LPG) 1 2.13%
Total: 1 Total: 2.13% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 5 - Service Call
553 - Public service 1 2.13%
554 - Assist invalid 1 2.13%
561 - Unauthorized burning 1 2.13%
Total: 3 Total: 6.38% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 6 - Good Intent Call
611 - Dispatched and cancelled en route 2 4.26%
Total: 2 Total: 4.26% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 7 - False Alarm & False Call 733 - Smoke detector activation due to
malfunction
2 4.26%
745 - Alarm system activation, no fire -
unintentional
1 2.13%
Total: 3 Total: 6.38% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Incident Type Category (FD1.21): 9 - Special Incident Type 911 - Citizen complaint 1 2.13%
Total: 1 Total: 2.13% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Total: 47 Total: 100.00% Total: 0.00 Total: 0.00 Total:

0.00 Total: 0.00%
Report Criteria
Is In 5 - Station 5 - City, Nevada City Stn 5
Is Equal To 95959
Is Equal To Last Month
Is Equal To Grass Valley Fire Department
1 of 1 Printed On: 10/14/2023 08:02:41 AM

NEVADA CITY FIRE DEPARTMENT

OFFICE OF FIRE PREVENTION AND INVESTIGATION
317 broad street, Nevada city ca 95959
For the Protection of Life and Property From Fire – Since 1860 Defensible Space Projects
September 2023
APN# 005-130-011-000
Worked with California Department of Corrections and Rehabilitation (CDCR) Washington Ridge handcrew to clear and chip entire .69 ac. city-owned parcel on Old Downieville Road.

APN# 005-101-012-000
Worked with California Department of Corrections and Rehabilitation (CDCR) Washington Ridge handcrew to clear and chip approximately 3 ac. on the eastern side of the parcel between Champion Road and the Nevada Irrigation District (NID) access road.

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 06
Subject: Consideration of Fee Waivers for Recreation Facility Rentals 2024-2028 for Nevada City Lions Club, Boy Scouts of America – Troop 24 & Cub Scouts Pack 23, Nevada County
Concert Band, and Nevada County Horseshoe Club Groups
Based on Historical and On-Going In-Kind City Contributions.

From: Dawn Zydonis, Parks & Recreation Manager
Date: October 13, 2023
Reviewed & Approved:

City Manager: STG
City Attorney:

Recommended Action: Approve the fee waivers.

ISSUE STATEMENT AND DISCUSSION:

The following groups, Nevada City Lions Club, Boy Scouts of America – Troop 24 & Cub Scouts Pack 23, Nevada County Concert Band, and Nevada County Horseshoe Club, have contributed to either the development and care of the facility that they use or other park amenities at Pioneer Park. Therefore, they have historically been allowed a waiver of the facility rental fees for their use of those facilities.

In 2011 the City approved MOU’s with each of these groups allowing a waiver of rental fees. The MOU included an addendum that was to be updated annually to confirm contact information and rental dates for that calendar year. It was not the intention to create “in perpetuity” MOU’s, and staff has worked to update a process of a review of these fee waivers take place every five years. Groups will complete a Facility Rental Contract each year during the fee waiver period.

The groups are required to follow all other rental policies including insurance, clean up, and noise regulations. The Facility Rental Policies also note that “In the event that the Rental Contract provides for ongoing or repeated events using the facility for more than a single occasion, either party may terminate the Rental Contract at any time by giving two weeks advance written notice. If Renter is in violation of Rental Policies, the City reserves the right to cancel at any time.” The Fee Waiver will also include a waiver of the Security Deposit. However, if the group does not complete the clean-up required for their use of the facility or they cause damage during their use, they will be charged the Security Deposit fee and/or appropriate cleaning fee. When the 5-year review period ends, each group will be responsible for communicating what they have contributed to the City for public benefit (e.g. new playground equipment, number of hours in volunteer labor to maintain their facility).

Nevada City Little League is not included in this fee waiver process as their exclusive and non-exclusive use agreement is established in a separate agreement subject to update in 2024.

FINANCIAL AND/OR POLICY IMPLICATIONS:

Below is a list of each organization, the facility that they use, the dates that they typically use the facility, the per use fee that would be charged if they paid rent and the approximate annual fees that they would pay.

The approximate revenue that would be gained each year if these groups paid rental fees is $12,925 keeping in mind that fees are offset by the other contributions that the groups make to the Park and City.

Organization Facility Used Typical Dates of
Use
Per Use Fee Annual Fees
Nevada City
Lions Club
Seaman’s Lodge 2nd & 4th
Wednesday of
each month
$60 $1,440
BSA-Troop 24 Seaman’s Lodge Every Tuesday $60 $3,840
BSA-Cub Scout
Pack 23
Seaman’s Lodge 3rd Wednesday of
each Month
$60 $720
BSA-Cub Scout
Pack 23
Picnic Left 1 Day in May $80 $80
Nevada County
Concert Band
Bandshell Monday’s during
the summer for
practices; 3
Sundays for
concerts
$220 $4,840
Nevada County
Concert Band
Picnic Left &
Right
1 Day in July $265 $265
Nevada County
Horseshoe Club
Horseshoe Pits Tuesday’s; 4-7p;
April - October
$50* $1,500
Nevada County
Horseshoe Club
Horseshoe Pits
and Picnic Right
3 or 4
Tournaments per
Year
$80 $240
*The City does not have any rental fees for just the Horseshoe Pits. The $50 fee is based on less than 25 people for the picnic area. However, the general public would not have a key to open the gate and drive into the few spaces in picnic right without a rental, so that is why a rental fee is included on this list. The public can also use the Horseshoe Pits during this time.

STRATEGIC PLAN ALIGNMENT:

This action is consistent with the strategic initiative of Parks: Parks, Open Space, Recreation, Programming, and Community Facilities. This action is also consistent with the embedded strategic initiative of Engagement: Community engagement and communications with stakeholders.

ENVIRONMENTAL CONSIDERATIONS:

None
LEGAL REVIEW:

City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.

ATTACHMENTS:

Facility Rental Policies
1 Nevada City Parks & Recreation
Facility Rental Policies
Contact Information:

For questions or information:

Phone #: 530-265-2496 x129, www.nevadacityca.gov
Facility Addresses (Do NOT mail anything to these addresses.):

Pioneer Park – Bandshell: 421 Nimrod St, Nevada City, CA 95959 Pioneer Park – Picnic Areas: 425 Nimrod St., Nevada City, CA 95959 Pioneer Park – Seaman’s Lodge: 427 Nimrod St, Nevada City, CA 95959 Before Using a Facility:

The following items are required prior to having access to the facility you are renting. If items are not turned in by the required due dates, your event will be cancelled. Details about each checklist item below are included in the Policies. Fees are available on the City’s Master Fee Schedule and can be confirmed with City staff.

Non-Refundable Deposit to reserve rental date: Due within 2 weeks of requesting your date.

Completed Contract: Due 40 days prior to event date. It is recommended to turn it in sooner, so all questions and concerns can be addressed.

Rental Fees, Refundable Security Deposit & any additional fees: Due 30 days prior to event date.

Proof of Insurance: Due 30 days prior to event date.

Large events at the Bandshell or outdoor areas may require a pre-event meeting. This meeting with City staff must take place at least 60 days prior to the event date. The purpose of the meeting is to discuss special needs & set-up information, confirm fees, and discuss event details.

ABC Alcohol Permit (if selling alcohol): Copy of the Permit is due to the Recreation Department prior to being allowed access to the facility.

Events that are running past 9:00pm must notify neighbors at least 30 days prior to your event date.

In Addition:
• The Contact Person, named on the contract, must be at least 21 years of age and monitor the facility throughout the entire rental.
• If alcohol will be sold at the event, the Renter is responsible for acquiring a Daily License from ABC (www.abc.ca.gov or call 916-419-1319). You must get a signature from the Recreation Dept. and the Police Dept. Plan ahead to give time to acquire the appropriate signatures. The Police Dept. charges a fee for processing alcohol permit requests. A copy of the permit must be provided to the Recreation Dept.
• If you would like to drop off supplies the day before your event or pick-up supplies the day after your event, those dates and times must be included on your Rental Contract and Proof of Insurance. Additional fees apply.
2 Payments
• Cash and Check payments should be made payable to: City of Nevada City and delivered to City Hall, Attn. Parks & Recreation; 317 Broad St., Nevada City, CA 95959. Write “Parks & Rec” on the memo line. When coming into City Hall, it is the Renters responsibility to know what fees are due as Parks & Recreation staff are not always available and City Hall staff do not have access to this information.
• Recreation staff will email an invoice to the Renter for the non-refundable deposit and all other fees. Payments can be made online. A convenience fee will be added to your total for online payments.
• The Non-refundable Deposit is due within 2 weeks of reserving your event date. This will be credited towards your rental fee. If a rental is allowed within 30 days or less of the rental date, the rental fee will include the Non-refundable Deposit. • Rental fees and any additional fees are due at least 30 days prior to the rental date. • The Refundable Security Deposit is due at least 30 days prior to the rental date. If the Rental Policies are followed, the facility is cleaned as directed, and the key(s) are returned the Security Deposit will be refunded to the Renter within 30 days of the event or 30 days after the facility key(s) are returned. This refund will be in the form of a check that will be mailed to the name and address provided on the Facility Rental Contract. • Refunds for cancellations will only be granted up to 30 days prior to the event date, minus the Non-refundable Deposit.
• If forecasted foul weather (rain, smoke, lightening, etc), scheduled power outages or changes in COVID-19 guidelines cause a cancellation of the event, Renters may request a 50% refund of their Rental Fee or transfer fees to another date. There are no refunds or date transfers if foul weather or a power outage interrupt your rental. If another date is not available or a date is not available that works for the Renter, the Renter will receive a 50% refund. • All Rental Contracts that involve ongoing or repeated events for more than a single occasion will be invoiced quarterly and charged a late fee for each month that fees are late. • If rental fees are waived by City Council, renters are still required to complete a Rental Contract, provide proof of insurance, pay the Refundable Security Deposit, and follow all Facility Rental Policies.
• Refer to the City’s Master Fee Schedule for all fees.

Insurance
Proof of insurance is required from all Renters. A current and valid certificate of General Liability Insurance must be provided, in the amount of $1,000,000 and an endorsement (CG2026 or equivalent) naming the City of Nevada City 317 Broad St. Nevada City, CA 95959 (not the facility) as additional insured. Proof of Insurance must be provided at least 30 days prior to the rental date. A sample copy of the required insurance is available on the City’s website.

If you are renting the Bandshell or another outdoor area at Pioneer Park and your event will have more than 400 attendees/participants, a $2,000,000 limit is required.

During Use of the Facility:
• The Renter is responsible for alcohol consumption by event guests. If alcohol is being sold, the Renter is responsible for enforcing and following all ABC regulations. • No rice, birdseed or confetti can be used inside or around the facility. • No tape of any kind is to be used on floors and walls inside Seaman’s Lodge. • Painter’s tape or Gaff tape can be used at all other facilities. • No tacks, nails or staples are to be put in the walls at any time. 3 • If guidelines are not being followed police or facility management have the authority to shut down the event. There are NO refunds on Fees or the Security Deposit if an event is shut down.
• If Renters do not comply with all Facility Policies, the Security Deposit will be retained and the Renter may be banned from renting City facilities in the future. • Smoking is not allowed inside City facilities, anywhere in Pioneer Park per Municipal Code section 8.24.010. Renters are responsible for enforcement of this rule. Posting of signs is encouraged for large events.
• Any event charging admission or asking for donations must be a licensed non-profit in good standing with the CA Secretary of State.
• The procedure for monitoring noise levels is provided in Section 8.20 of the City’s Municipal Code.
• Any music, loud voices & other noise must be terminated by the appropriate time for the facility that you are renting. Exceptions must be approved in advance, by City Council.  Bandshell: 10:00pm; An exception will be made for movies in the park, as it is understood that it needs to be dark before a movie can start. Movies with a running time longer than

2.25 hours will not be approved.
 Seaman’s Lodge: 11:00pm
 Picnic Areas or other outdoor spaces at Pioneer Park: 9:00pm Public Events, Amplified Music, or Large Events
• Events that are requesting an exemption from any policies must be approved in advance by City Council.
• Events that are open to the public, are only allowed at Pioneer Park on Friday’s, Saturday’s, Sunday’s, and Holidays.
• The procedure for monitoring noise levels is provided in Section 8.20 of the City’s Municipal Code. The City reserves the right to modify the limits should it be determined the limit applicable to amplified sound is either too restrictive or too lenient. A City Liaison may be on site during the sound check time and during the event to monitor sound levels and will inform event planners if changes need to be made. The sound meter used by this City employee will be the deciding factor for any adjustments to sound. Additional fees may apply for Amplified Music Events.
• Events with amplified music may play recorded music for ½ hour prior to their event. No music, live or recorded, can be played after the 4-hour limit or past the designated end time.

Sound check times must take place during the time indicated on the Rental Contract. • Events open to the public, having amplified music or expecting more than 200 people are encouraged to have security on site during the event. Security personnel should be independent certified personnel. The City reserves the right to require security personnel. • Events open to the public, having amplified music/sound or expecting more than 200 people are required to provide to the City a flyer/marketing materials and a link to any related websites. Electronic copies of the flyer are acceptable. • Events open to the public should share parking information provided on page 9. • If guidelines are not being followed police or facility management have the authority to shut down the event. There are NO refunds on Fees or the Security Deposit if an event is shut down. Renters who have their event shut down will not be allowed to rent in the future. • Renters must provide a map showing the layout/set-up of the event. • Renters may be required to have a pre-event meeting with City Staff at least 60 days prior to your event date.
4 • Events running past 9:00pm, must notify neighbors at least 30 days prior to your event date.

Flyers or some form of notification to the neighbors is required. See page 8 for a map of the neighbors that should be included.
• Portable Toilets are required for events with 400 people or more. # of people # of portable toilets required
400 people 2
600 people 4
800 people 6
1,000 people 8
• Events with 400 people or more may be required to provide a 2-yard dumpster or haul off their own garbage.

Other:
• Outdoor facilities at Pioneer Park are only rented May-October of each year, weather allowing. • The City does not carry a music license. Any renters playing copy righted music must have their own license to play that music for public events. • Keys to the facility must be picked up at City Hall during business hours. An email will be sent letting the Renter know when the keys are ready to pick up. Keys must be returned to City Hall the first business day following the event, unless approved for later drop off. Keys can also be returned to the drop box that is located outside the front doors of City Hall. There is a $100 fee for each lost key.
• Renters may only access the facility during the dates and times listed on their Contract. • All pets must be on leashes. Pets are not allowed inside City facilities unless they are a service animal or part of a training class at that facility. • Items lost or left behind are not the responsibility of the City of Nevada City. • Renters must provide their own supplies & equipment (i.e.: presentation, audiovisual, extension cords, etc.)
• In the event that the Rental Contract provides for ongoing or repeated events using the facility for more than a single occasion, either party may terminate the Rental Contract at any time by giving two weeks advance written notice. Processing fees may apply. If Renter is in violation of Rental Policies, the City reserves the right to cancel at any time. • There may be other events taking place at Pioneer Park on the same day or time as your event. You can find out about some of these events by checking the City’s online reservation calendar: http://www.nevadacityca.gov/facilityview.aspx?fid=43&catid=564, NC Little League website:
http://nevadacitybaseball.com/Org/Home.aspx?d=uSrmLaewjHFDP7ndqSIS%2bw%3d%3d, or calling the swimming pool during the summer season (530-265-8223).

Before leaving the Facility:
• Cleaning Checklist items must be completed (see facility specific pages). • The premises shall be cleaned and vacated by the appropriate time for the facility that you are renting:
 Bandshell: Midnight
 Seaman’s Lodge: Midnight
 Picnic Areas or other outdoor spaces at Pioneer Park: 11:00pm • Renters that do not follow Facility Rental Policies will forfeit their Refundable Security Deposit.

Renters may also be charged an additional $30 per hour for City staff cleaning time or the cost to replace missing items.
5 Bandshell
Facility Specific Information
• There should be no vehicles on the lawn at Pioneer Park. Renters will be charged $50 per broken sprinkler head and will lose their Security Deposit if the lawn is damaged. • Event activities may not block tennis court parking lot unless approved in advance. • Renters will be given a key to the gate located next to the tennis courts. This access road is to be used for loading and unloading only. Renters and their participants should not park inside the gate. The service road (entrance from the tennis courts) must remain clear during set-up, clean-up, and during the event for emergency vehicle access. • Do not leave the lock unlatched. A missing lock will cost $100 of your Security Deposit. • 6 garbage cans & 6 recycle containers with bags are included with rental. • 4 handicap parking barricades are included with rental. • 10 construction barricades are included with the rental. • A map showing the field area that is included with a Bandshell rental is on page 6. And a diagram of the electrical outlets is on page 7.

CLEANING CHECKLIST FOR RENTERS
 Sweep or pick up any debris & garbage inside the Bandshell, on the stage and around the facility, including the field area included with your rental.  Return all items inside the Bandshell to the location where you found them (barricades, garbage cans, recycle bins, etc)
 Empty and clean the refrigerator.
 Turn off power to outside outlets & lights. Instructions are posted inside the Bandshell.  Take full garbage & recycle bags to the dumpster next to Seaman’s Lodge. If garbage or recycling dumpsters are full, renters must remove the bags from the park. Leaving bags, boxes, etc next to dumpsters will result in the loss of your Security Deposit.

ADDITIONAL CLEANING CHECKLIST FOR GROUPS LARGER THAN 200 PEOPLE  Portable Toilets and rented dumpsters must be picked up by 10:00am on the first business day following your event or at a time approved by City staff.  Barricades must be returned to the City Corporation Yard on the first business day following your event or at a time approved by City staff.
 All personal items must be removed from the Bandshell by the clean-up end time listed on your Facility Rental Contract.
 Areas beyond the Bandshell that may have been used by participants at your event should be checked for messes that you can clean before leaving the park.  These are community facilities. Fees are kept low by expecting each person and group who uses the facilities to be good stewards and clean up after their use. Keep in mind that the way you leave the facility is how the next renter or the public is going to find it. If you have any questions about where to find cleaning supplies, please ask in advance of your use. 6 7
8 Neighbors along the highlighted streets must receive notification of events open to the public that are running past 9:00pm. This notification must take place at least 30 days prior to your event date.
9 10
Picnic Areas
Facility Specific Information
• Renters will be given a key to the gate at Picnic-Left & Picnic-Right Areas. (No keys are required for use of the Upper Picnic Area or Tennis Court Picnic Area.) In Picnic-Left this is for loading & unloading purposes only. Renters & participants should park in designated parking lots. In Picnic-Right there are approximately 5 parking spaces near the horseshoe pits. • Do not leave the gate lock unlatched. A lost lock will cost $100 of your Security Deposit. • Power and water are available at Picnic-Left & Picnic-Right. • Renters may request use of Bocce Ball or Petanque equipment with their rental. • Access to electricity in the picnic areas is available on page 11.

Facility Information:

Picnic Tables
• Picnic-Left & Right: there are approximately 12 picnic tables in each area. • Upper Picnic Area: typically, there are 5 tables in this area • Tennis/ADA Area: 3 tables

CLEANING CHECKLIST FOR RENTERS
 Pick up all garbage in and around the Picnic Area and place it in garbage cans.  All garbage bags must be in the garbage cans.
 Turn off power breakers.
 Recycling & garbage dumpsters are located next to Seaman’s Lodge if garbage will not fit in cans provided. If garbage or recycling dumpsters are full, renters must remove the bags from the park. Leaving bags, boxes, etc. next to dumpsters or on the ground next to garbage cans will result in the loss of your Security Deposit.
 These are community facilities. Fees are kept low by expecting each person and group who uses the facilities to be good stewards and clean up after their use. Keep in mind that the way you leave the facility is how the next renter or the public is going to find it. If you have any questions about where to find cleaning supplies, please ask in advance of your use. 11 12
Seaman’s Lodge
Facility Specific Information • The building has heat and AC. Instructions for turning on the heat/AC are located on the wall next to the thermostat.
• Instructions for turning on the stove/oven are posted on the kitchen wall.

Facility Information
Room Capacities Items Available for Renter Use
257 assembly 6ft & 8ft, Rectangle Tables
120 dining Metal Folding Chairs
Podium
Microwave
Rolling Cart
Screen (10’ wide x 7’ tall)

CLEANING CHECKLIST FOR RENTERS

GENERAL CLEANING CHECKLIST
 Put all chairs and tables back to their appropriate spaces.  Wipe up any spills on tables, chairs and floors.
 Sweep floors. If there are any spills, wipe them up with a cloth.  Mop floors using water only, no cleaners or chemicals.  Remove all decorations, string, etc. that were used to hang decorations.  Empty trash & recycling containers and place in the dumpster outside. *  Cardboard should be broken down flat and placed in the dumpster outside. *  Turn off all lights and fans.
 Close and lock ALL windows and doors.
 Close all outside shutters.

KITCHEN CLEANING CHECKLIST
 Remove all food from the refrigerator and oven. This includes bags of ice. Wipe up any spills inside the refrigerator and freezer.
 Wipe off stove burners & the tray under stove burners.  Wipe out oven – remove any food scraps or spills.
 Clean counter tops and sinks
 Clean any spills on cabinets or walls.
 Turn off gas to stove & oven (Directions are posted in the kitchen.)  Sweep & mop floor.
 Empty garbage. * If items miss the bag and spill into the garbage can, wipe out garbage can. * All garbage and recycling must be removed from the facility and placed in the appropriate dumpster. If either dumpster is full the renter must dispose of the garbage and/or recycling on their own. Garbage & recycling may not be left on the ground next to the dumpster.

These are community facilities. Fees are kept low by expecting each person and group who uses the facilities to be good stewards and clean up after their use. Keep in mind that the way you leave the facility is how the next renter or the public is going to find it. If you have any questions about where to find cleaning supplies, please ask in advance of your use.

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 07
Subject: Consideration of a City Lease Accounting Policy.

From: Stephen Erlandson, Assistant City Manager
Date: October 31, 2023
Reviewed & Approved:

City Manager: STG
City Attorney:

Recommended Action: Adopt the policy.

ISSUE STATEMENT AND DISCUSSION:

During the City’s annual independent audit for the fiscal year-ended June 30, 2022, it was noted by the City’s independent accounting firm, O’Connor and Company, that the City did not have some key policies in place. Furthermore, the Governmental Accounting Standards Board (GASB) issued Statement No. 87 (Leases) with the objective of being able to better meet the needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset.

Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The requirements of GASB Statement 87 became effective for fiscal years beginning after June 15, 2021, and all reporting periods thereafter.

The City’s draft Lease Accounting Policy is attached to this report and presented to the Council for approval. The main purpose of this policy is to develop a dollar threshold of $30,000, as recommended by the City’s outside auditor, for leases that are considered significant for reporting purposes. This threshold removes the burden of applying the provisions of this Statement to small dollar items, such as leases for copy machines and small computer equipment that are often leased in high volume but at low per-asset cost. As of the date of this report, the City does not have any leases that meet the $30,000 threshold.

FINANCIAL AND/OR POLICY IMPLICATIONS:

There is no fiscal impact as a result of this action.

STRATEGIC PLAN ALIGNMENT:

This action, reporting on the program, is consistent with the embedded strategic initiative of Engagement:

Community engagement and communications with stakeholders.

ENVIRONMENTAL CONSIDERATIONS:

None.

LEGAL REVIEW:

City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.

ATTACHMENTS:
 Lease Accounting Policy

LEASE ACCOUNTING POLICY

FINANCIAL POLICY
Adopted: November 8, 2023
A. Purpose
This policy establishes accounting treatment of lease agreements entered into by the organization, both as a lessee and as a lessor.

B. Policy
In accordance with Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, a lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period in an exchange or exchange-like transactions (i.e., buildings, land, vehicles, and equipment). Any contract that meets this definition should be accounted for under lease guidance as identified in GASB Statement No. 87.

Subject to certain provisions and exceptions noted in the guidance, leases are generally reported as follows in a government’s external financial statements:

1. Lessee
A lessee should recognize a lease liability and an intangible right-to-use lease asset at commencement of the lease term. A lessee should reduce the lease liability as payments are made and recognize an outflow of resources (i.e., expense) for interest on the liability. The lessee should amortize the lease asset in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

2. Lessor
A lessor should recognize a lease receivable and a deferred inflow of resources at commencement of the lease term. A lessor should recognize interest revenue on the lease receivable and an inflow of resources in a systematic and rational manner over the term of the lease.

3. Capital Financing Activities
Leases that transfer ownership will no longer be classified as capital leases; they will be reported as capital financing activities. This is a terminology change only and does not impact the accounting or financial statement disclosures.

4. Transactions Excluded from GASB 87
a) Leases for intangibles (including computer software) expect for sublease of intangible right-to-use leased asset.

Lease Accounting Policy Page 2 of 2 Financial Policy
November 8, 2023
b) Leases for biological assets.
c) Leases for inventory.
d) Leases where underlying asset financed with conduit debt, except for underlying asset and conduit debt reported by lessor. e) Service concession agreements.
f) Supply contracts – electric power purchase agreements. g) Short-term leases (maximum term of 12 months or less). h) Contracts that transfer the ownership of the underlying asset to the lessee (see Capital Financing Activities).

C. Procedures
The City has established a materiality dollar threshold for determining the inclusion or exclusion of leases in the external financial statements, both as lessee and lessor. At the commencement of the lease term, the City will analyze the terms and provisions of the lease agreement (contract) to calculate the value of the underlying asset.

1. Leases Greater Than or Equal to $30,000
An individual lease agreement (contract) that generates a right-to-use underlying asset value calculated at greater than or equal to $30,000 will be included in the external financial statements.

2. Leases Less Than $30,000
A lease agreement (contract) with an underlying asset value less than $30,000 may be included in the external financial statements at the discretion of the City’s Finance and Administration Services Department management should it be determined that its exclusion might otherwise cause the financial statements to be incomplete or misleading in some manner.

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 08
Subject: Consideration of a City Unclaimed Property Policy.

From: Stephen Erlandson, Assistant City Manager
Date: October 31, 2023
Reviewed & Approved:

City Manager: STG
City Attorney:

Recommended Action: Adopt the policy.

ISSUE STATEMENT AND DISCUSSION:

During the City’s annual independent audit for the fiscal year-ended June 30, 2022, it was noted by the City’s independent accounting firm, O’Connor and Company, that the City did not have some key policies in place. A best practice is for local governments to have clear policies regarding the handling of unclaimed money. Staff has finalized a new policy and procedure for the escheat of unclaimed property for the City Council’s consideration. Escheatment is the legal process by which unclaimed moneys become the property of the government by operation of law after notice is published and the moneys are unclaimed. State law allows unclaimed funds, which are more than one year old and less than $15, or greater than $15 and more than three years old, to become the property of the City following publication in the local newspaper.

The California Unclaimed Property Law (UPL) generally provides that unclaimed moneys held by private business and state government agencies escheat to the State of California Controller’s Office. The UPL does not apply to money in custody of local agencies. Escheat laws of the California Government Code govern the escheatment of unclaimed property in the possession of local agencies. Government Code Sections 50050 through 50056 provides for unclaimed property in the City’s possession to permanently escheat to the City.

The main objective of the policy is to enhance the prospect of returning unclaimed property held by the City to its rightful owner. The City will escheat unclaimed property only after reasonable diligent efforts to contact the owner have been unsuccessful or where, after having been notified, the owner fails to claim the property within the time allowed by state law.

FINANCIAL AND/OR POLICY IMPLICATIONS:

There is no fiscal impact as a result of this action.

STRATEGIC PLAN ALIGNMENT:

This action, reporting on the program, is consistent with the embedded strategic initiative of Engagement:

Community engagement and communications with stakeholders.

ENVIRONMENTAL CONSIDERATIONS:

None.

LEGAL REVIEW:

City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.

ATTACHMENTS:
 Unclaimed Property Policy

UNCLAIMED PROPERTY POLICY

FINANCIAL POLICY
Adopted: November 8, 2023
A. Purpose
The unclaimed property policy is intended to provide guidelines for taking possession of long standing unclaimed checks in accordance with California Government Code and to ensure the propriety of the related accounting transactions.

B. Policy
It is the policy of the City of Nevada City to properly account for unclaimed money in a manner that follows the California Government Code Sections 50050 through 50056. Unclaimed money consists of funds that are not the property of the City, but are held by the City for three (3) years or more without a claim being filed by the legal owner. Unclaimed money that remains unclaimed for at least three (3) years will become the property of the City after procedures identified herein have been followed.

SUMMARY OF CALIFORNIA GOVERNMENT CODE 50050 – 50056

1. Money that is not the property of the City of Nevada City that remains unclaimed for a period of more than three (3) years is the property of the City of Nevada City forty-five (45) days after initial public notice if not claimed or if no verified complaint is filed and served. (Section 50050 and Section 50051)

2. Any time after the expiration of the three (3) year period, the City Manager, or his/her designee, may cause a notice to be published once a week for two (2) successive weeks in a newspaper of general circulation published in the City of Nevada City. (Section 50050)

3. The City Manager, or his/her designee, may release to the depositor of the unclaimed money, their heir, beneficiary, or duly appointed representative, unclaimed money if claimed prior to the date the money becomes the property of the City of Nevada City upon submitting proof satisfactory to the City Manager, or his/her designee. (Section 50052.5)

4. Any individual items of less than fifteen (15) dollars, or any amount if the depositor’s name is unknown, which remain unclaimed for a period of one (1) year may be reclaimed by the City of Nevada City without the necessity of public notification in a newspaper. (Section 50055)
Unclaimed Property Policy Page 2 of 5 Financial Policy
November 8, 2023
C. Procedures

1. Notice Contents
The notice shall include the statutorily required information, which is the amount of money, the fund in which it is held, and that that the money shall become the property of the City of Nevada City on a date not less than fortyfive (45) days nor more than sixty (60) days after the first publication of the notice. The notice may also, but is not required to, include the following information:
a) The individual or business name as shown on the issued check. b) The check date, number and the amount of money on the issued check (See Exhibit I).

2. Permissive Written Notice
At or about the time of the initial published notice, the City may attempt to send a letter and affidavit form for replacement checks to the address on record for any warrant(s), check or other item issued more than three (3) years prior to evaluation date. Failure to send the letter and affidavit form or the failure of any person to receive either or both will not prevent the unclaimed money from becoming the property of the City forty-five (45) days after initial publication of the notice (See Exhibits II and III).

3. Proof of Publication
A proof of publication from the newspaper is to be retained in accordance with the City’s records retention policy as proof that the City published the required notice for two consecutive weeks.

4. Claim Contents
Upon or prior to publication, a party of interest may file a claim with the City, before the date the unclaimed money becomes the property of the City, seeking to claim all, or a designated part, of the unclaimed money. The claim must include the following information:
a) The claimant’s name, address and telephone number.
b) The claimant’s Social Security Number or Federal Employer Identification Number.

Unclaimed Property Policy Page 3 of 5 Financial Policy
November 8, 2023
c) Proof of identity of claimant such as a copy of a driver’s license, social security card or birth certificate.
d) The amount of the claim.
e) The grounds on which the claim is founded. The City Manager, or his/her designee, may accept or reject the claim (See Exhibit III and refer to Gov. Code Sec. 50052).

5. Release of Unclaimed Money
The City Manager, or his/her designee, may release to the depositor of the unclaimed money, their heir, beneficiary, or duly appointed representative, unclaimed money if claimed prior to the date the money becomes the property of the City upon submitting proof satisfactory to the City Manager, or his/her designee (Gov. Code Sec. 50052.5).

6. Transfer from Special Fund to General Fund
When the unclaimed funds become the property of the City of Nevada City and are in a Special fund, the City Council may transfer them by resolution to the General Fund (Gov. Code Sec. 50053).

7. Unclaimed Money Less Than $15.00
Any individual item of less than fifteen dollars ($15.00), or any amount if the depositor’s name is unknown, which remain unclaimed for a period of one (1) year, the City Council may be transfer such funds which the money was originally drawn to the General Fund without the necessity of publication of a notice in a newspaper (Gov. Code Sec. 50055).

8. Delegation of Responsibilities to Departments
The responsibility of the City Manager, or his/her designee, may be delegated by the City Manager, or his/her designee, to the department that maintains the supporting records of the un-cleared checks or unclaimed money based on the initial receipt or deposit of the money or both (Gov.

Code Sec. 50056). The City Manager, or his/her designee, may delegate its responsibilities for processing unclaimed money claims to the Finance Manager in the Finance and Administration Department.

9. Acceptance of Claim
Except otherwise provided in this procedure, if the City Manager, or his/her designee, or other Department accepts the claim, the City may release to Unclaimed Property Policy Page 4 of 5 Financial Policy
November 8, 2023
the depositor of an unclaimed check, warrant, money or other item, or the heir, beneficiary, or duly appointed representative of the depositor, all or a designated part of the amount of an unclaimed check, warrant or other item, if:
a) Claim is filed prior to the date the money becomes the property of the City of Nevada City,
b) Proof substantiating the claim is conveyed in writing, including all items detailed in items “4” and “5” of this policy, and c) After proper documentation is secured, payment request is prepared to release money based upon approved Claim Form.

10.Rejection of Claim
If Finance and Administration or other Department rejects all or part of a claim for unclaimed money (Exhibit IV), the claimant may file a verified complaint seeking to recover all, or a designated part, of the money in a court within Nevada County. The City Clerk shall be served with a copy of the complaint and summons which within thirty (30) days of the claimant receiving notice that the claim was rejected. The City Clerk shall notify the Finance and Administration Department or other department that rejected the claim. The City shall withhold the release of the portion of the unclaimed money for which a court action has been filed until a decision is rendered by the court (See Exhibit IV. 14).

11.Accounting Transactions
If a claim for unclaimed money is received prior to the date designated in the Public Notice for the unclaimed money to become the property of the City, the City Manager, or his/her designee, will verify the claimant’s supporting information for checks over $1,000. If the claimant satisfies all conditions required under this procedure, the City will void the old check and issue a new check for the claimed amount to the claimant. a) Accounts payable checks and payroll checks will be cancelled through the escheat process, and the monies transferred to the General Fund if not claimed during the public notice period. b) As of May 31st, annually, all outstanding checks of less than fifteen (15) dollars from accounts payable and payroll will be checked to Unclaimed Property Policy Page 5 of 5 Financial Policy
November 8, 2023
determine those checks that have issue dates over twelve (12) months. These amounts will then be transferred to the General Fund miscellaneous revenue account. Follow step a, above.

Attachments:

Exhibit I – Sample of Public Notice
Exhibit II – Sample Letter
Exhibit III – Sample of Unclaimed Money – Claim Form
Exhibit IV – Sample of Money Claim Rejection Form
Exhibit V – California Government Code Section 50050-50056 City of Nevada City
City Hall · 317 Broad Street · Nevada City, California 95959 · (530) 265-2496 Exhibit I – Sample of Public Notice

PUBLIC NOTICE
NOTICE IS HEREBY GIVEN THAT, the Finance Department of the City of Santa Barbara, County of Santa Barbara, State of California, declares that the following monetary sums have been held by the City of Santa Barbara and have remained unclaimed in the funds hereafter indicated for a period of over three (3) years and will become the property of the City of Santa Barbara on the xx the day of the Month, Year, a date not less than forty-five (45) days or more than sixty (60) days after the first publication of this Notice.

Any party of interest may, prior to the date designated herein above, file a claim with the City’s Finance Department which includes the claimant’ s name, address and telephone number, Social Security Number or Federal Employer Identification Number, amount of claim, the grounds on which the claim is founded. The Unclaimed Money Claim Form can be obtained from the City’s Finance and Administrative Department at 317 Broad Street, Nevada City, CA 95959, or from the City’s website at http://www.nevadacityca.gov. Proof of identity such as a copy of a driver’s license, social security card or birth certificate must be provided before funds will be released. With any questions, please contact the City of Nevada City, Finance and Administration Department at (530) 265-2496.

This notice and its contents are in accordance with California Government Code Sections 50050 et seq.

Check Date Check Number Payee Name Check Amount Fund
City of Nevada City
City Hall · 317 Broad Street · Nevada City, California 95959 · (530) 265-2496 Exhibit II – Sample Letter
Dear _____________,
Our records indicated that check number ___________ issued to you on________ in the amount of $_____________by the City of Nevada City, has not been cashed and is now stale dated. To claim this money, please complete the enclosed Stale Dated Check Replacement Affidavit (Claim Form) and proof of identity, as indicated and mail to:

City of Nevada City
Finance and Administration Department
317 Broad Street
Nevada City, CA 95959
Upon receipt of the properly signed affidavit, a new check will be issued to you. Please feel free to call at (530) 265-2496 if you have any questions or require any assistance.

Assistant City Manager
City of Nevada City
Enclosure
City of Nevada City
City Hall · 317 Broad Street · Nevada City, California 95959 · (530) 265-2496 Exhibit III – Sample of Unclaimed Money – Claim Form

CITY OF NEVADA CITY
UNCLAIMED MONEY – CLAIM FORM
Return completed form to:

City of Nevada City Finance and Administration Department 317 Broad Street
Nevada City, CA 95959
Pursuant to California Government Code Section 50052, I wish to file a claim for the previously unclaimed check in the amount of $___________ that was published in the (which newspaper) on ______________. The grounds on which I file this claim are:
______________________________ ________________________________ Vendor or Individual Name (Printed) Taxpayer I.D. or Social Security No. ______________________________ ________________________________ Vendor or Individual Name (Signature) Telephone Number
______________________________
Address
______________________________
City/State/Zip Code

FOR FINANCE AND ADMINISTRATION DEPARTMENT
Proof of Identity Verified (check one):

Driver’s License__________ Social Security Card____________ Birth Certificate____________ Verified By: _____________ Date: __________
Claim: Approved Rejected Reason for Rejection: ____________________ Reviewed By: ____________ Date: __________
City of Nevada City
City Hall · 317 Broad Street · Nevada City, California 95959 · (530) 265-2496 Exhibit IV – Sample of Money Claim Rejection Form

CITY OF NEVADA CITY
UNCLAIMED MONEY – REJECTION FORM
The City of Nevada City has rejected the unclaimed property claim of:

Vendor or Individual Name: ___________________________________________ Taxpayer I.D. or Social Security Number: ________________________________ Address: __________________________________________________________ City/State/Zip Code: _________________________________________________ Original Check Date: ________________
Original Check Amount: _____________
The grounds on which this claim has been rejected are:
________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ Under California Government Code Section 50052, you have the right to file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within Nevada County. A copy of the complaint and the summons issued thereon must be served within thirty (30) days of receiving this notice of rejection. Upon being served, the Assistant City Manager will withhold the disputed amount from being released until a decision is rendered by the court.

City of Nevada City
City Hall · 317 Broad Street · Nevada City, California 95959 · (530) 265-2496 Exhibit V – California Government Code Section 50050-50057

GOVERNMENT CODE
SECTION 50001, AND 50050-50057
50001. Definition of local agency
“Local agency” as used in this division means county, city, or city and county, unless the context otherwise requires.
50050. Unclaimed money in treasury of local agency or custody of officers; publication of notice; restitution money; use of money for victim services.

For purposes of this article, “local agency” includes all districts. Except as otherwise provided by law, money, excluding restitution to victims, that is not the property of a local agency that remains unclaimed in its treasury or in the official custody of its officers for three years is the property of the local agency after notice if not claimed or if no verified complaint is filed and served. At any time after the expiration of the three-year period, the treasurer of the local agency may cause a notice to be published once a week for two successive weeks in a newspaper of general circulation published in the local agency. At the expiration of the three-year period, money representing restitution collected on behalf of victims shall be deposited into the Restitution Fund or used by the local agency for purposes of victim services. If a local agency elects to use the money for purposes of victim services, the local agency shall first document that it has made a reasonable effort to locate and notify the victim to whom the restitution is owed. The local agency may utilize fees collected pursuant to subdivision (l) of Section 1203.1 or subdivision (f) of Section 2085.5 of the Penal Code to offset the reasonable cost of locating and notifying the victim to whom restitution is owed. With respect to moneys deposited with the county treasurer pursuant to Section 7663 of the Probate Code, this threeyear period to claim money held by a local agency is extended for an infant or person of unsound mind until one year from the date his or her disability ceases.

For purposes of this section, “infant” and “person of unsound mind” have the same meaning as given to those terms as used in Section 1441 of the Code of Civil Procedure. 50051. Unclaimed money; notice; contents
The notice shall state the amount of money, the fund in which it is held, and that it is proposed that the money will become the property of the local agency on a designated date not less than forty-five days nor more than sixty days after the first publication of the notice.

City Hall · 317 Broad Street · Nevada City, California 95959 · (530) 265-2496 50052. Unclaimed money; filing of claim; requisites; acceptance or rejection; court proceedings Upon or prior to publication, a party of interest may file a claim with the treasurer which must include the claimant’s name, address, amount of claim, the grounds on which the claim is founded, and any other information that may be required by the treasurer. The claim shall be filed before the date the unclaimed money becomes the property of the local agency as provided under Section 50051 and the treasurer shall accept or reject that claim. If the claim is rejected by the treasurer, the party who submitted the claim may file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within the county in which the notice is published, and serves a copy of the complaint and the summons issued thereon upon the treasurer. The copy of the complaint and summons shall be served within 30 days of receiving notice that the claim was rejected.

The treasurer shall withhold the release of the portion of unclaimed money for which a court action has been filed as provided in this section until a decision is rendered by the court. 50052.5. Unclaimed money; release; value; liability
(a) Notwithstanding Section 50052, the treasurer may release to the depositor of the unclaimed money, their heir, beneficiary, or duly appointed representative, unclaimed money if claimed prior to the date the money becomes the property of the local agency upon submitting proof satisfactory to the treasurer, unless the unclaimed money is deposited pursuant to Section 7663 of the Probate Code. (b) Notwithstanding Section 50052, the treasurer may release unclaimed money deposited with the county treasurer pursuant to Section 7663 of the Probate Code, to any adult blood relative of either the decedent or the decedent’s predeceased spouse.
(c) Notwithstanding Section 50052, the treasurer may release unclaimed money deposited with the county treasurer pursuant to Section 7663 of the Probate Code to the parent who has legal and physical custody of a minor who is a blood relative of either the decedent or the decedent’s predeceased spouse without the need to appoint a legal guardian for the minor as follows:
(1) If the value of the unclaimed money deposited with the county treasurer is five thousand dollars ($5,000) or less, the treasurer may release the money according to Section 3401 of the Probate Code. (2) If the value of the unclaimed money deposited with the county treasurer is sixty thousand dollars ($60,000) or less, and the money is not released under paragraph (1), the unclaimed money may be released by the treasurer to the parent who shall, after payment of any costs incurred in making the claim, hold the money in trust, to be used only for the care, maintenance, and education of the minor, and the parent shall be liable therefor to the minor under the fiduciary laws of this state. The money held in trust shall be released to the minor when the minor reaches the age of majority. (d) The claim shall be presented to the county treasurer in affidavit form and signed under penalty of perjury. Notwithstanding Section 13101 of the Probate Code, the claimant, to be entitled to the entire escheated estate, needs only to establish with documentary proof the existence of a blood relationship to either the decedent or of the predeceased spouse, if any, and the documentary proof, if regular on its face, need not be certified. Notwithstanding Section 13101 of the Probate Code, the claimant shall not be required to declare that no other person has an equal or superior claim to the escheated estate.

The county treasurer may rely in good faith on the sworn statements made in the claim and shall have no duty to inquire into the truth or credibility of evidence submitted.

City Hall · 317 Broad Street · Nevada City, California 95959 · (530) 265-2496 In paying out the escheated estate, the county treasurer shall be held harmless to all. Payment shall act as total acquittance and shall completely discharge the county treasurer from any liability.

If the county treasurer rejects any claim made hereunder, the claimant may take his or her grievance to the Superior Court of the county holding the escheated estate.

Any claim paid hereunder shall be paid without interest. 50053. Unclaimed money; transfer to general fund on acquisition of ownership When any such money becomes the property of a local agency and is in a special fund, the legislative body may transfer it to the general fund.
50054. Performance of construction services or construction of public works by governmental body; charge
Whenever any city or county or city and county renders construction services or constructs public works for any city, county, city and county or any other governmental agency below the level of the state government, the price charged for such services or construction shall be sufficient to reimburse the governmental body performing such services for the full cost thereof including labor, material, equipment costs or rentals and a reasonable allowance for overhead. In computing overhead, without limitation on other factors properly includable, there shall be allocated to the overhead cost its proportionate share of indirect labor and administrative costs. 50055. Unclaimed money; transfer to general fund
Any other provision of this article notwithstanding, any individual items of less than fifteen dollars ($15), or any amount if the depositor’s name is unknown, which remain unclaimed in the treasury or in the official custody of an officer of a local agency for the period of one year or upon an order of the court may be transferred to the general fund by the legislative body without the necessity of publication of a notice in a newspaper.
50056. Delegation of responsibilities
The responsibilities of the treasurer as provided under this article may be delegated by the treasurer to the agency, district, or department that maintains the supporting records of the unclaimed money based on the initial receipt or deposit of that money or both.

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 09
Subject: Consideration of Award of Contract with Miles
Masonry in an Amount Not-To-Exceed $60,939 for
Sacramento Street Wall Repair; Authorize a Project
Contingency of 10%, Not-To-Exceed $6,094; and Authorize the City Manager to Execute any Contracts or Related
Documents.

From: Bryan McAlister, City Engineer
Date: October 24, 2023
Reviewed & Approved:

City Manager: STG
City Attorney:

Recommended Action: Award the contract, authorize the contingency, and authorize the City Manager to execute related documents.

ISSUE STATEMENT AND DISCUSSION:

A winter storm commencing December 27th, 2022 and continuing through the end of January 2023 was declared a disaster by the City, State CalOES and FEMA. The storm’s impacts included a large number of fallen trees and limbs damaging infrastructure, blocking city streets and sidewalks, and creating safety hazards; the City’s water and wastewater treatment facilities operated intermittently on generator power and experienced an inundation of debris and rocks causing operations impacts and damage to infrastructure; and power, phone, and internet, were lost throughout multiple locations in the region and within the city limits. The rock retaining wall at Sacramento Street sustained damages at the City’s vacant property APN 005-410-033 which is adjacent and below the sidewalk and street.

City staff procured bids from qualified contractors for the Sacramento Street wall repair. Bids were received, as follows:

Bid Amount
Miles Masonry, Grass Valley, CA $ 60,939
Weiss Landscaping Inc. Inc., Nevada City, CA $ 65,500
Miles Masonry was selected as the lowest responsive and responsible bidder.

FINANCIAL AND/OR POLICY IMPLICATIONS:

Funding for FEMA-4683DR-CA Winter Storm disaster is provided by FEMA Federal cost share of 75% of eligible costs, State cost-share under the California Disaster Assistance Act (CDAA) of 75% of the non-federal share (this equates to 18.75%) and a local share of 6.25% by the City of Nevada City.

Funding is provided on a reimbursement basis.

STRATEGIC PLAN ALIGNMENT:

This action, reporting on the program, is consistent with the embedded strategic initiative of Engagement:

Community engagement and communications with stakeholders. The project is aligned with the strategic initiative of INFRASTRUCTURE: Parking, Roads, Right-of-Way, and other public and contracted infrastructure.

ENVIRONMENTAL CONSIDERATIONS:

None with the award of the contract. The construction activities are subject to the environmental conditions and actions identified in the overall project.

LEGAL REVIEW:

City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.

ATTACHMENTS:
 Contract for Sacramento Street Wall Repair
1 Sacramento Street
Wall Repair
City of Nevada City, 95959
Nevada County, California
Bryan K. McAlister
PE C58570
PLS 9199

6 AGREEMENT
THIS AGREEMENT is made this _______________ day of ______________________, between the CITY OF NEVADA CITY, a municipal corporation, hereinafter called "City," and ___________________________________________, hereinafter called "Contractor." WHEREAS, City has caused to be prepared certain plans, specifications and other contract documents pertaining to the Sacramento Street Wall Repair in said City: and WHEREAS, after notice duly given, City has awarded the contract for such work to Contractor; NOW, THEREFORE, IT IS AGREED by and between said parties as follows:

1. Scope of Work. The contractor agrees to furnish all labor, materials, tools and equipment, required to complete the improvements in Nevada City, California, in accordance with the plans, specifications and other contract representation made in mandatory meetings. All such work shall be performed in a good and workmanlike manner and to the satisfaction of the designer of said project.

2. Contract Price. As consideration for all such work, City agrees to pay to Contractor the total sum of _____________________________________________ ($________________) Dollars, payable in the manner hereinafter set forth.

3. Contract Documents. The complete contract between the parties hereto consists of the Notice to Contractors, the Information to Bidders, the Bid Proposal, the General Conditions, the Plans and Specifications, and all other drawings and printed or written explanatory matter pertaining thereto. All of the foregoing documents are intended to cooperate, so that any work or requirement specified in any of them is to be carried out or observed the same as if mentioned in all.

4. Time for Performance. Within five (5) days after the execution of this Agreement, City shall give Contractor written Notice to Proceed, and thereafter Contractor shall commence the work and shall prosecute the same with due diligence until completion and acceptance by City; provided, however, that all such work shall be completed and ready for use within twenty (20) working days after Contractor receives said Notice to Proceed.

5. Extension of Time. If, because of adverse weather conditions, strikes, inability of the Contractor (through no fault on his/her part) to obtain necessary materials, or other cause beyond the reasonable control of Contractor, Contractor is unable to complete the required work within the allowed time, he shall be entitled to an extension or extensions of such time, commensurate with the unavoidable delay thus caused; provided, however that Contractor shall apply to City for approval of any such extension prior to the expiration of the time for performance as specified in the preceding paragraph.

6. Contractor's Failure to Complete Work. If Contractor fails to prosecute the work with such diligence as will insure its completion within the time hereinabove specified, or any extension thereof, or fails to complete such work within such time, or if Contractor shall otherwise violate this Agreement, City may give written notice to Contractor and his sureties of City's intention to terminate this Agreement unless, within five (5) days after services of such notice, satisfactory arrangements are made with the City for the completion of such work or the curing of such breach; and if such arrangements are not made within such time, City may, at its option, terminate this Agreement by giving written notice of such termination to Contractor and his sureties. 7 7. Payments to Contractor. On or before the tenth day of each month during the progress of the work, Contractor shall submit to the City Engineer an itemized statement of all labor and materials incorporated into the improvement during the preceding month and the portion of the contract price applicable thereto. City shall pay to Contractor a sum equal to ninety (90%) percent of the contract price apportionment for approved progress payments.

The remaining ten (10%) percent shall be paid to Contractor thirty-five (35) days after final acceptance of the work by City.

8. Indemnification. Contractor agrees to hold City, and its officers, agents, and employees harmless from any and all liability and claims for damages for death and personal injury, and for property damage, incident to or arising out of the operations of Contractor or any subcontractor under this Agreement, and Contractor further agrees to defend City, and its officers, agents, and employees in any and all lawsuits which may be brought for such damages caused, or alleged to have been caused, by such operations. In addition, Contractor agrees to furnish to the City evidences of insurance coverage. The approval of such insurance by City shall not constitute a waiver or limitation of any rights under this indemnity agreement, regardless of whether such insurance shall be held to be inapplicable to any such damage or claims therefore.

Executed in duplicate this day of , .

ATTEST: CITY OF NEVADA CITY

By:
(Mayor)
By:
(Contractor)
By:
(Authorized Officer)
8 GENERAL CONDITIONS

1. Inspection of Construction
The Engineer shall have access to the work and the site of the work at all times and the Contractor shall afford such access to the Engineer and shall furnish all relevant information requested by him. At the request of the Engineer the Contractor shall open for inspection any part of the work which has been covered up, and if any part of the work has been covered up in contravention of the instructions of the Engineer, or if on being opened up, is found not to be in accordance with the terms of the contract, the expense of opening and recovering shall be charged to the Contractor. If the work has been covered up but not in contravention of such instructions and is found to be in accordance with the terms of the contract, the actual cost of opening and recovering shall be borne by the City, and in such case, if the work of opening and recovering is done by the Contractor, it shall be considered as extra work and paid for accordingly.

2. Change Orders
If for any reason it becomes necessary or desirable to change the alignment, dimensions, or design of the work, the City shall have the right to issue written change orders therefore. If the Contractor considers that any such change involves extra work, he shall immediately so notify the Engineer in writing, and shall make claim for compensation for such work not later than the first day of the month following the month in which the work was performed. If, in the opinion of the Engineer, any change order results in a change in the amount of work performed, the contract price shall be adjusted for extra work or omitted work, as the case may be.

3. Contractor’s Employees and Subcontractors
The Contractor shall at all times be responsible for the adequacy and efficiency of his employees and any subcontractor and the latter’s employees. All workers shall have adequate skill and experience to perform properly the work assigned to them.

4. Errors and Omissions
If the Contractor in the course of the work becomes aware of any error or omission in the contract documents, or of any discrepancy between such documents and the physical conditions of the work site, he shall immediately inform the Engineer, who shall take such action as he may deem necessary in order to rectify the matter. Any work done after such discovery and without the authorization of the Engineer will be at the Contractor’s risk.

5. Guaranty of Work
For a period of one (1) year after final acceptance of the work by the City, the Contractor shall make all Improvements and replacements arising out of any defective workmanship or materials. If the Contractor fails to make such repairs or replacements within ten (10) days after receiving written notice to do so, or within such further time as may be allowed by the City, the City may undertake such repairs or replacements, in which case the Contractor shall be liable to the City for the cost thereof. 9 6. Contractor’s Responsibility for Work
The Contractor shall be responsible for the proper care and protection of the work, and of all materials delivered to the work site, until completion of the work and its final acceptance by the City.

7. Performance Bond
No Performance bond shall be required for this project.

8. Payment Bond
A payment (labor and materials) bond is required for public works contracts involving an expenditure in excess of twenty-five thousand dollars ($25,000). If the contract is in excess of this amount the contractor shall provide a payment bond to the City of Nevada City before commencement of work. Cost for the bond shall be included in the contractor bid proposal and no additional compensation will be provided.

A payment bond shall be in an amount not less than 100 percent of the total amount payable pursuant to the contract. The bond shall be in the form of a bond and not a deposit in lieu of a bond. The bond shall be executed by an admitted surety insurer and in accordance with Section [9550 - 9566] of the CA Code.

9. Workmen’s Compensation Insurance
The Contractor shall carry workmen’s compensation insurance for all employees working on or about the site of the work, and if any work is subcontracted, the Contractor shall require each subcontractor to carry such insurance for all of the latter’s employees, unless they are covered by the Contractor’s insurance.

10. Insurance Requirements
CONTRACTOR shall purchase and maintain insurance in amounts of coverage not less than the following amounts:

General Liability: $1,000,000 per occurrence for bodily injury, (Including operations, personal injury and property damage. If products and completed General Liability Insurance or
operations) other form with a general aggregate limit is used either the general aggregate limit shall
apply separately to this project/location or
the general aggregate limit shall be twice
the required occurrence limit.

Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

The Contractor shall deliver to the City, concurrently with the execution of the contract, certificates evidencing all insurance required by the contract, and each such certificate shall include a provision to the effect that the policy or policies cannot be canceled or materially modified unless the insurer gives the City at least fifteen (15) days written notice thereof prior to such cancellation or modification. 10 11. Prevailing Wages
Contractor shall pay each laborer, workman or mechanic in accordance with State and Federal Prevailing Wage Rates and the California Labor Code. These wage rates are hereby made a part of this contract:

State General Prevailing Wage Determinations in effect on date advertised General prevailing wage determination
Journeyman and Apprentice Prevailing Wage Rates can be accessed at the following websites:
https://www.dir.ca.gov/oprl/DPreWageDetermination.html
And http://www.dir.ca.gov/das/publicworks.html
Reference: Labor Code http://www.labor.ca.gov/laborlawreg.htm Electronic Certified Payroll Records
 All contractors must furnish electronic certified payroll records to the Labor Commissioner using the online eCPR data system
 No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].  No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.  This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
 The contractor shall post job site notices prescribed by regulation. (See 8 Calif. Code Reg. §16451(d) 11 PART B

GENERAL CONDITIONS
Article
Number Title
1 Definitions
2 Preliminary Matters
3 Correlation, Interpretation and Intent of Contract Documents 4 Availability of Lands; Physical Conditions; Reference Points 5 Bonds of Insurance
6 Contractor's Responsibilities
7 Work by Others
8 Owner's Responsibilities
9 Engineer's Status During Construction
10 Changes in the Work
11 Change of the Contract Price
12 Change of the Contract Time
13 Warranty and Guarantee; Tests and Inspections; Correction, Removal or Acceptance of Defective Work
14 Payments and Completion
15 Suspension of Work and Termination
16 Arbitration
17 Miscellaneous
12 INDEX TO GENERAL CONDITIONS
Article or Paragraph
Number
Access to the Work 13.5
Addenda--definition of (see definition of Specifications) 1 Agreement--definition of 1
Agreement, Execution of 2.1
Application for Payment--definition of 1
Application for Payment, Final 14.12
Application for Progress Payment 14.2
Approval of Final Payment 14.13, 14.14
Approval of Payments--in general 14.4 thru 14.7.5
Arbitration 16
Availability of Lands 4.1
Award--Notice of--defined 1
Before Starting Construction 2.7 thru 2.9
Bid--definition 1
Bidder--definition 1
Bonds, Additional and Insurance 5.12
Bonds and Insurance--in general 5
Bonds--definition of 1
Bonds, Delivery of 2.2
Bonds, Performance and Payment 5.1, 5.2
Cash Allowances 11.9
Change Order--definition of 1
Changes in the Work 10
Claims, Waiver of 14.16
Clarifications and Interpretations 9.3
Cleaning 6.29
Completion, Payments and 14
Completion, Substantial 14.8, 14.9
Contract Documents--definition of 1
Contract Price, Change of 11
Contract Price--definition of 1
Contract Time, Change of 12
Contract Time--Commencement of 2.5
Contract Time--definition of 1
Contractor--definition of 1
Contractor May Stop Work or Terminate 15.5
Contractor, Neglected Work by 13.12
Contractor's Continuing Obligation 14.15
Contractor's Fee 11.6
Contractor's Liability Insurance 5.3
Contractor's Pre-Start Representations 2.4
Contractor's Responsibilities--in general 6
Contractor's Warranty of Title 14.3
Copies of Documents 2.3
Correction or Removal of Defective Work 13.9
Correction Period, One Year 13.10
Correction, Removal or Acceptance of Defective Work--in general 13 Correlation, Interpretation and Intent of Contract Documents 3 Cost of Work 11.4, 11.5
13 Costs, Supplemental 11.4.5
Day--definition of 1
Defective Work, Acceptance of 13.11
Defective Work, Correction or Removal of 13.9
Defective Work--definition of 9.4
Defective Work--in general 13
Defective Work, Rejecting 9.4
Definitions 1
Delivery of Bonds 2.2
Disagreements, Decisions by Engineer 9.9, 9.10
Documents, Copies of 2.3
Drawings--definition of 1
Drawings, Record 6.19
Emergencies 6.22
Engineer--definition of 1
Engineer's Responsibilities, Limitations on 9.11 thru 9.13 Engineer's Status During Construction--in general 9
Execution of Agreement 2.1

Fee, Contractor's 11.6
Field Order--definition of 1
Field Order--issued by Engineer 10.2
Final Acceptance for Payment 14.12
Final Inspection 14.11
Final Payment, Approval of 14.13, 14.14
General--Miscellaneous Provisions 17.3 thru 17.7
Giving Notice 17.1
Guarantee 13.1
Indemnification 6.30 thru 6.32
Inspection, Final 14.11
Inspection, Tests and 13.2, 13.3
Insurance--Additional Bonds and 5.12
Insurance, Bonds and--in general 5
Insurance--Certificates of 2.9 and 5
Insurance, Contractor's Liability 5.3
Insurance, OWNER's Liability 5.4
Insurance, Property 5.5 thru 5.11
Interpretations and Clarifications 9.3
Labor, Materials and Equipment 6.3 thru 6.6
Laws and Regulations 6.15
Limitations on Engineer's Responsibilities 9.11 thru 9.13 Local Conditions--Contractor's familiarity with 2.4
Materials and Equipment--furnished by Contractor 6.3
Materials or Equipment, Substitute 6.7
Miscellaneous Provisions 17
Modification--definition of 1

Neglected Work by Contractor 13.12
Notice, Giving of 17.1
Notice of Award--definition of 1
Notice to Proceed--definition of 1
14 Notice to Proceed--giving of 2.5
"Or-Equal" Items 6.7
OWNER--definition of 1
OWNER May Stop Work 13.8
OWNER May Suspend Work, Terminate 15.1 thru 15.4
OWNER's Liability Insurance 5.4
OWNER's Representative--Engineer to serve as 9.1
OWNER's Responsibilities--in general 8
Partial Utilization 14.10
Patent Fees and Royalties 6.13
Payments and Completion--in general 14
Payments, Approval of 14.4 thru 14.7.5
Performance, Payment and other Bonds 5.1 thru 5.2
Permits 6.14, 6.15
Physical Conditions--Surveys and Reports 4.2
Physical Conditions, Unforeseen 4.3
Preconstruction Conference 2.9
Premises, Use of 6.17, 6.18
Price--Change of Contract 11
Price--Contract--definition of 1
Progress Payment, Applications for 14.2
Progress Schedule 2.8, 14.1
Project--definition of 1
Project Representative, Resident--definition of 1
Project Representative, Resident--provision of 9.8
Project, Starting 2.6
Property Insurance 5.5 thru 5.11
Protection, Safety and 6.20 thru 6.21
Record Drawings 6.19
Reference Points 4.4
Regulations, Laws and 6.15
Rejecting Defective Work 9.4
Removal or Correction of Defective Work 13.9
Resident Project Representative--definition of 1
Resident Project Representative--provision of 9.8
Responsibilities, Contractor's 6
Responsibilities, OWNER's 8
Royalties, Patent Fees and 6.13
Safety and Protection 6.20 thru 6.21
Samples 6.23
Schedule of Shop Drawings Submissions 2.8, 14.1
Schedule of Values 14.1
Shop Drawings and Samples 6.23 thru 6.28
Shop Drawings--definition of 1
Site inspection--by Contractor 2.8
Site, Visits to--by Engineer 9.2
Specifications--definition of 1
Starting Construction, Before 2.7 thru 2.9
Stopping Work--by Contractor 15.5
Stopping Work--by OWNER 13.8
Subcontractor--definition of 1
Subcontractors--in general 6.8 thru 6.12
Substantial Completion--certification of 14.8
15 Substantial Completion--definition of 1
Substitute Materials or Equipment 6.7
Subsurface Conditions 4.2, 4.3
Supplemental Costs 11.4.5
Surety--consent to payment 14.12, 14.14
Surety--qualification of 5.1, 5.2
Suspending Work, by OWNER 15.1
Suspension of Work and Termination--in general 15
Superintendent--Contractor's 6.2
Supervision and Superintendence 6.1, 6.2
Taxes 6.16
Termination--by Contractor 15.5
Termination--by OWNER 15.2 thru 15.4
Termination, Suspension of Work and--in general 15
Tests and Inspections 13.2, 13.3, 13.7
Time, Change of Contract 12
Time, Computation of 17.2
Time, Contract--definition of 1
Uncovering Work 13.6, 13.7
Use of Premises 6.17, 6.18
Values, Schedule of 14.1
Visits to Site--by Engineer 9.2
Waiver of Claims 14.16
Warranty and Guarantee--by Contractor 13.1
Warranty of Title, Contractor's 14.3
Work, Access to 13.5
Work by Others--in general 7
Work, Cost of 11.4
Work--definition of 1
Work, Neglected by Contractor 13.12
Work, Stopping by Contractor 15.5
Work, Stopping by OWNER 15.1 thru 15.4
16 GENERAL CONDITIONS
ARTICLE 1 - DEFINITIONS
Whenever used in these General Conditions or in the other Contract Documents, the following terms have the meanings indicated which are applicable to both the singular and plural thereof:

Agreement - The written agreement between OWNER and CONTRACTOR covering the Work to be performed; other Contract Documents are attached to the Agreement.

Application for Payment - The form furnished by ENGINEER which is to be used by CONTRACTOR in requesting progress payments and which is to include the schedule of values required by paragraph 14.1 and an affidavit of CONTRACTOR that progress payments therefore received on account of the Work have been applied by CONTRACTOR to discharge in full all of CONTRACTOR's obligations reflected in prior Applications for Payment.

Bid - The offer or proposal of the Bidder submitting on the prescribed form setting forth the prices for the Work to be performed.

Bidder - Any person, firm, or corporation submitting a Bid for the Work.

Bonds - Bid, performance, and payment bonds and other instruments of security, furnished by CONTRACTOR and his surety in accordance with the Contract Documents.

Change Order - A written order to CONTRACTOR signed by OWNER authorizing an addition, deletion, or revision in the Work, or an adjustment in the Contract Price or the Contract Time issued after execution of the Agreement.

Contract Documents - The Agreement, Addenda (whether issued prior to the opening of Bid or the execution of the Agreement), Instructions to Bidders. CONTRACTOR's Bid, the Bonds, the Notice of Award, these General Conditions, the Supplementary Conditions, the Specifications, Drawings and Modifications.

Contract Price - The total moneys payable to CONTRACTOR under the Contract Documents.

Contract Time - The number of days stated in the Agreement for the completion of the Work, computed as provided in paragraph 17.2.

CONTRACTOR - The person, firm, or corporation with whom OWNER has executed the Agreement.

Day - A calendar day of twenty-four hours measured from midnight to the next midnight.

Drawings - The drawings which show the character and scope of the Work to be performed and which have been prepared or approved by ENGINEER and are referred to in the Contract Documents.

ENGINEER - The person, firm or corporation named as such in the Agreement.

Field Order - A written order issued by ENGINEER which clarifies or interprets the Contract Documents in accordance with paragraph 9.3 or orders minor changes in the Work in accordance with paragraph 10.2.

Modification - (a) A written amendment of the Contract Documents signed by both parties, (b) a Change Order, (c) 17 a written clarification or interpretation issued by ENGINEER in accordance with paragraph 9.3, or (d) a written order for a minor change or alteration in the Work issued by ENGINEER pursuant to paragraph 10.2. A Modification may only be issued after execution of the Agreement.

Notice of Award - The written notice by OWNER to the apparent successful Bidder stating that upon compliance with the conditions precedent to be fulfilled by him within the time specified, OWNER will execute and deliver the Agreement to him.

Notice to Proceed - A written notice given by OWNER to CONTRACTOR (with a copy to ENGINEER) fixing the date on which the Contract Time will commence to run and on which CONTRACTOR shall start to perform his obligations under the Contract Document.

OWNER - A public body or authority, corporation, association, partnership, or individual for whom the Work is to be performed.

Project - The entire construction to be performed as provided in the Contract Documents.

Resident Project Representative - The authorized representative of ENGINEER who is assigned to the Project site or any part thereof.

Shop Drawings - All drawings, diagrams, illustrations, brochures, schedules, and other data which are prepared by CONTRACTOR, a Subcontractor, manufacturer, supplier, or distributor and which illustrate the equipment, material, or some portion of the Work.

Specifications - Those portions of the Contract Documents consisting of written technical descriptions of materials, equipment, construction systems, standards, and workmanship as applied to the Work. The specifications are customarily organized in 16 divisions in accordance with the Uniform System for Construction Specifications endorsed by the Construction Specifications Institute. [Note: the term "Technical Provisions" formerly described what is now referred to as the Specifications. For uniformity with the usage of other professional societies the term "Project Manual" is used to describe the volume formerly referred to as "The Specifications." The Project Manual contains documents concerning bidding requirements which in general govern relationships prior to the execution of the Agreement (such as the Invitation to Bid, Instructions to Bidders and Notice of Award) and the other portions of the Contract Documents.]
Subcontractor - An individual, firm, or corporation having a direct contract with CONTRACTOR or with any other Subcontractor for the performance of a part of the Work at the site.

Substantial Completion - The date as certified by ENGINEER when the construction of the Project or a specified part thereof is sufficiently completed, in accordance with the Contract Documents, so that the Project or specified part can be utilized for the purpose for which it was intended: or if there be no such certification, the date when final payment is due in accordance with paragraph 14.13.

Work - Any and all obligations, duties and responsibilities necessary to the successful completion of the Project assigned to or undertaken by CONTRACTOR under the Contract Documents, including all labor, materials, equipment and other incidentals, and the furnishing thereof. 18 ARTICLE 2 - PRELIMINARY MATTERS

Execution of Agreement:

2.1 At least three counterparts of the Agreement and such other Contract Documents as practicable will be executed and delivered by CONTRACTOR to OWNER within fifteen days of the Notice of Award: and OWNER will execute and deliver one counterpart to CONTRACTOR within ten days of receipt of the executed Agreement from CONTRACTOR. ENGINEER will identify those portions of the Contract Documents not so signed and such identification will be binding on all parties. OWNER, CONTRACTOR, and ENGINEER shall each receive an executed counterpart of the Contract Documents and additional conformed copies as required.

Delivery of Bonds:

2.2 When he delivers the executed Agreement to OWNER, CONTRACTOR shall also deliver to OWNER such Bonds as he may be required to furnish in accordance with paragraph 5.1.

Copies of Documents:

2.3 OWNER shall furnish to CONTRACTOR up to ten copies (unless otherwise provided in the Supplementary Conditions) of the Contract Documents as are reasonably necessary for the execution of the Work.

Additional copies will be furnished, upon request, at the cost of reproduction.

Contractor's Pre-Start Representations:

2.4 CONTRACTOR represents that he has familiarized himself with, and assumes full responsibility for having familiarized himself with, the nature and extent of the Contract Documents, Work, locality, and with all local conditions and federal, state, and local laws, ordinances, rules, and regulations that may in any manner affect performance of the Work, and represents that he has correlated his study and observations with the requirements of the Contract Documents. CONTRACTOR also represents that he has studied all surveys and investigation reports of subsurface and latent physical conditions referred to in the General Requirements (Division 1) of the Specifications and made such additional surveys and investigations as he deems necessary for the performance of the Work at the Contract Price in accordance with the requirements of the Contract Documents and that he has correlated the results of all such data with the requirements of the Contract Documents.

Commencement of Contract Time: Notice to Proceed:

2.5 The Contact Time will commence to run on the thirtieth day after the day on which the executed Agreement is delivered by OWNER to CONTRACTOR: or if Notice to Proceed is given, on the day indicated in the Notice to Proceed; but in no event shall the Contract Time commence to run later than the ninetieth day after the day of Bid opening or the thirtieth day after the day on which OWNER delivers the executed Agreement to CONTRACTOR. A Notice to Proceed may be given at any time within thirty days after the day on which OWNER delivers the executed Agreement to CONTRACTOR.

Starting the Project:

2.6 CONTRACTOR shall start to perform his obligations under the Contract Documents on the date when the Contract Time commences to run. No Work shall be done at the site prior to the date on which the Contract Time commences to run.
19 Before Starting Construction:

2.7 Before undertaking each part of the Work, CONTRACTOR shall carefully study and compare the Contract Documents and check and verify pertinent figures shown thereon and all applicable field measurements.

He shall at once report in writing to ENGINEER any conflict, error, or discrepancy which he may discover, however, he shall not be liable to OWNER or ENGINEER for his failure to discover any conflict, error, or discrepancy in the Drawings or Specifications.

2.8 Within ten days after delivery of the executed Agreement by OWNER to CONTRACTOR, CONTRACTOR shall submit to ENGINEER for approval, an estimated progress schedule indicating the starting and completion dates of the various stages of the Work, and a preliminary schedule of Shop Drawing submissions.

2.9 Before starting the Work at the site, CONTRACTOR shall furnish OWNER and ENGINEER certificates of insurance as required by Article 5. Within twenty days after delivery of the executed Agreement by OWNER to CONTRACTOR, but before starting the Work at the site, a conference will be held to review the above schedules to establish procedures for handling Shop Drawings and other submissions and for processing Applications for Payment, and to establish a working understanding between the parties as to the Project. Present at the conference will be OWNER or his representative, ENGINEER, Resident Project Representatives, CONTRACTOR, and his Superintendent.

ARTICLE 3 - CORRELATION, INTERPRETATION, AND INTENT OF

CONTRACT DOCUMENTS

3.1 It is the intent of the Specifications and Drawings to describe a complete Project to be constructed in accordance with the Contract Documents. The Contract Documents comprise the entire Agreement between OWNER and CONTRACTOR. They may be altered only by a Modification.

3.2 The Contract Documents are complementary; what is called for by one is as binding as if called for by all.

The CONTRACTOR finds a conflict, error, or discrepancy in the Contract Documents, he shall call it to ENGINEER's attention in writing at once and before proceeding with the Work affected thereby; however, he shall not be liable to OWNER or ENGINEER for his failure to discover any conflict, error, or discrepancy in the Specifications or Drawings. In resolving such conflicts, errors, or discrepancies, the documents shall be given precedence in the following order: Agreement, Modifications, Addenda, Supplementary Conditions, Specifications and Drawings. Figure dimensions on Drawings shall govern over scale dimensions, and detailed Drawings shall govern over general Drawings. Any Work that may reasonably be inferred from the Specifications or Drawings as being required to produce the intended result shall be supplied whether or not it is specifically called for. Work, materials, or equipment described in words which so applied have a well-known technical or trade meaning shall be deemed to refer to such recognized standards.

ARTICLE 4 - AVAILABILITY OF LANDS; PHYSICAL CONDITIONS;

REFERENCE POINTS

Availability of Lands:

4.1 OWNER shall furnish, as indicated in the Contract Documents and not later than the date when needed 20 by CONTRACTOR, the lands upon which the Work is to be done, rights-of-way thereto, and such other lands which are designated for the use of CONTRACTOR. Easements for permanent structures or permanent changes in existing facilities will be obtained and paid for by OWNER, unless otherwise specified in the Contract Documents. If CONTRACTOR believes that any delay in OWNER's furnishing these lands or easements entitles him to an extension of the Contract Time, he may make a claim therefore as provided in Article 12. CONTRACTOR shall provide for all additional lands and access thereto that may be required for temporary construction facilities or storage of materials and equipment.

Physical Conditions - Surveys and Reports:

4.2 Reference is made to the General Requirements (Division 1) of the Specifications for identification of those surveys and investigation reports of subsurface and latent physical conditions at the Project site or otherwise affecting performance of the Work which have been relied upon by ENGINEER in preparation of the Drawings and Specifications.

Unforeseen Physical Conditions:

4.3 CONTRACTOR shall promptly notify OWNER and ENGINEER in writing of any subsurface or latent physical conditions at the site differing materially from those indicated in the Contract Documents. ENGINEER will promptly investigate those conditions and advise OWNER in writing if further surveys or subsurface tests are necessary. Promptly thereafter, OWNER shall obtain the necessary additional surveys and tests and furnish copies to ENGINEER and CONTRACTOR. If ENGINEER finds that the results of such surveys or tests indicate that there are subsurface or latent physical conditions which differ materially from those intended in the Contract Documents, and which could not reasonably have been anticipated by CONTRACTOR, a Change Order shall be issued incorporating the necessary revisions.

Reference Points:

4.4 OWNER shall provide engineering surveys for construction to establish reference points which in his judgment are necessary to enable CONTRACTOR to proceed with the Work. CONTRACTOR shall be responsible for surveying and laying out the Work (unless otherwise provided in the Supplementary Conditions), and shall protect and preserve the established reference points and shall make no changes or relocations without the prior written approval of OWNER. He shall report to ENGINEER whenever any reference point is lost or destroyed or requires relocation because of necessary changes in grades or locations. CONTRACTOR shall replace and accurately relocate all reference points so lost, destroyed, or moved.

ARTICLE 5 - BONDS AND INSURANCE
Performance and Payment Bonds:

5.1 Upon execution of the contract agreement, CONTRACTOR shall also provide, at his own expense, a separate Payment bond, in an amount equal to at least 100 percent of the contract price, as security for payment of all persons performing labor and furnishing materials regarding the contract. This payment bond must remain in full force and effect until the work is accepted by the City and until all claims for materials and labor are paid and shall 21 otherwise comply with civil code. Sureties for these bonds shall be satisfactory to the City Attorney.

Should any bond become insufficient, CONTRACTOR shall renew the bond within 10 working days after receipt of notice from the City.

Should any surety at any time be unsatisfactory to the City, a notice will be given to CONTRACTOR to that effect.

No further payments shall be deemed due or will be made under said agreement until a new surety shall qualify and be accepted by the City.

Changes in said agreement or extensions of time, made pursuant to the agreement, shall in no way release CONTRACTOR or surety from its obligations. Notice of such changes or extensions shall be waived by the surety.

Contractor's Liability Insurance:

5.2 CONTRACTOR shall purchase and maintain such insurance as will protect him from claims under workman's compensation laws, disability benefit laws, or other similar employee benefit laws; from claims for damages because of bodily injury, occupational sickness or disease, or death of his employees, and claims insured by usual personal injury liability coverage; and from claims for injury to or destruction of tangible property, including loss of use resulting therefrom – any or all of which may arise out of or result from CONTRACTOR's operations under the Contract Documents, whether such operations be by himself or by any Subcontractor or anyone directly or indirectly employed by any of them or for whose acts any of them may be legally liable. This insurance shall include the specific coverages and be written for not less than any limits of liability and maximum deductibles specified in the Supplementary Conditions or General Requirements (Division 1) or required by law, whichever is greater, shall include parties. Before starting Work, CONTRACTOR shall file with OWNER and ENGINEER certificates of such insurance, acceptable to OWNER; these certificates shall contain a provision that the coverage afforded under the policies will not be cancelled or materially changed until at least fifteen days prior written notice has been given to OWNER and ENGINEER.

Any deductibles or self-insured retentions must be declared to and approved by the OWNER. At the option of the OWNER, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the OWNER, its officers, officials, employees and volunteers; or the CONTRACTOR shall provide a financial guarantee satisfactory to the OWNER guaranteeing payment of losses and related investigations, claim administration and defense expenses.

The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The ENGINEER and the OWNER, its officers, officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the CONTRACTOR; and with respect to liability arising out of work or operations performed by or on behalf of the CONTRACTOR including materials, parts or equipment furnished in connection with such work or operations.

General liability coverage can be provided in the form of an endorsement to the CONTRACTOR's insurance.

2. For any claims related to this project, the CONTRACTOR's insurance coverage shall be primary insurance as respects the ENGINEER and the OWNER, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the ENGINEER and the OWNER, its officers, officials, employees, or volunteers 22 shall be excess of the CONTRACTOR's insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall be cancelled by either party, except after fifteen (15) days prior written notice by certified mail, return receipt requested, has been given to the OWNER and the ENGINEER.

4. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code.

Insurance is to be placed with a current A.M. Best's rating of no less than A:VII.

CONTRACTOR shall furnish the OWNER with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the OWNER or on other than the OWNER's forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by the OWNER before work commences. The OWNER reserved the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

CONTRACTOR shall include all Subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each Subcontractor. All coverages for Subcontractors shall be subject to all of the requirements stated herein.

OWNER's Liability Insurance:

5.4 OWNER shall be responsible for purchasing and maintaining his own liability insurance and, at his option, may purchase and maintain such insurance as will protect him against claims which may arise from operations under the Contract Documents.

Property Insurance:

5.5 Unless otherwise provided, OWNER shall purchase and maintain property insurance upon the Project to the full insurable value hereof. This insurance shall include the interests of OWNER, CONTRACTOR, and Subcontractors in the Work, shall insure against the perils of Fire, Extended Coverage, Vandalism, and Malicious Mischief, and such other perils as may be specified in the Supplementary Conditions or General Requirements (Division 1), and shall include damages, losses, and expenses arising out of or resulting from any insured loss or incurred in the repair or replacement of any insured property (including fees and charges of engineers, architects, attorneys, and other professionals).

5.6 OWNER shall purchase and maintain such steam boiler and machinery insurance as may be required by the Supplementary Conditions or by law. This insurance shall include the interests of OWNER, CONTRACTOR, and Subcontractors in the Work.

5.7 Any insured loss under the policies of insurance required by paragraphs 5.5 and 5.6 is to be adjusted with OWNER and made payable to OWNER as trustee for the insureds, as their interests may appear, subject to the requirements of any applicable mortgage clause and of paragraph 5.11.

5.8 OWNER shall file a copy of all policies with CONTRACTOR before an exposure to loss may occur. If 23 OWNER does not intend to purchase such insurance, he shall inform CONTRACTOR in writing prior to commencement of the Work. CONTRACTOR may then effect insurance which will protect the interests of himself and his Subcontractors in the Work, and by appropriate Change Order the cost thereof shall be charged to OWNER.

If CONTRACTOR is damaged by failure of OWNER to purchase or maintain such insurance and so to notify CONTRACTOR, then OWNER shall bear reasonable costs properly attributable thereto.

5.9 If CONTRACTOR requests in writing that other special insurance be included in the property insurance policy, OWNER shall, if possible, include such insurance and the cost thereof shall be charged to CONTRACTOR by appropriate Change Order.

5.10 OWNER and CONTRACTOR waive all rights against each other for damages caused by fire or other perils to the extent covered by insurance provided under paragraphs 5.5 through 5.11, inclusive, except such rights as they may have to the proceeds of such insurance held by OWNER as trustee. CONTRACTOR shall require similar waivers by Subcontractors in accordance with paragraph 6.12.

5.11 OWNER as trustee shall have power to adjust and settle any loss with the insurers unless one of the parties in interest shall object in writing within five days after the occurrence of loss to OWNER's exercise of this power, and if such objection be made, arbitrators shall be chosen as provided in Article 16. OWNER as trustee shall, in that case, make settlement with the insurers in accordance with the directions of such arbitrators. If distribution of the insurance proceeds by arbitration is required, the arbitrators will direct such distribution.

Additional Bonds and Insurance:

5.12 Prior to delivery of the executed Agreement by OWNER to CONTRACTOR, OWNER may require CONTRACTOR to furnish such other Bonds and such additional insurance, in such form and with such sureties or insurers as OWNER may require. If such other Bonds or such other insurance are specified by written instructions given prior to opening of Bids, the premiums shall be paid by CONTRACTOR; if subsequent thereto, they shall be paid by OWNER (except as otherwise provided in paragraph 6.7).

ARTICLE 6 - CONTRACTOR'S RESPONSIBILITIES

Supervision and Superintendence:

6.1 CONTRACTOR shall supervise and direct the Work efficiently and with his best skill and attention. He shall be solely responsible for the means, methods, techniques, sequences, and procedures of construction, but he shall not be solely responsible for the negligence of others in the design or selection of a specific means, method, technique, sequence, or procedure of construction which is indicated in and required by the Contract Documents.

CONTRACTOR shall be responsible to see that the finished Work complies accurately with the Contract Documents.

6.2 CONTRACTOR shall keep on the Work at all times during its progress a competent resident superintendent, who shall not be replaced without written notice to OWNER and ENGINEER except under extraordinary circumstances. The superintendent will be CONTRACTOR's representative at the site and shall have authority to act on behalf of CONTRACTOR. All communications given to the superintendent shall be as binding as if given to CONTRACTOR.
24 Labor, Materials, and Equipment:

6.3 CONTRACTOR shall provide competent, suitably qualified personnel to survey and lay out the Work and perform personnel to survey and lay out the Work and perform construction as required by the Contact Documents. He shall at all times maintain good discipline and order at the site.

6.4 CONTRACTOR shall furnish all materials, equipment, labor, transportation, construction equipment, and machinery, tools, appliances, fuel, power, light, heat, telephone, water, and sanitary facilities and all other facilities and incidentals necessary for the execution, testing, initial operation, and completion of the Work.

6.5 All materials and equipment shall be new, except as otherwise provided in the Contract Documents. If required by ENGINEER, CONTRACTOR shall furnish satisfactory evidence as to the kind and quality of materials and equipment.

6.6 All materials and equipment shall be applied, installed, connected, erected, used, cleaned, and conditioned in accordance with the instructions of the applicable manufacturer, fabricator, or processors, except as otherwise provided in the Contract Documents.

Substitute Materials or Equipment:

7.1 If the General Requirements (Division 1 of the Specifications), law, ordinance, or applicable rules or regulations permit CONTRACTOR to furnish or use a substitute that is equal to any material or equipment specified, and if CONTRACTOR wishes to furnish or use a proposed substitute, he shall, prior to the conference called for by paragraph 2.9 (unless another time is provided in the General Requirements), make written application to ENGINEER for approval of such substitute certifying in writing that the proposed substitute will perform adequately the functions called for by the general design, be similar and of equal substance to that specified and be suited to the same use and capable of performing the same function as that specified; stating whether or not its incorporation in or use in connection with the Project is subject to the payment of any license fee or royalty; and identifying all variations of the proposed substitute from that specified and indicating available maintenance service. No substitute shall be ordered or installed without the written approval of ENGINEER who will be the judge of equality and may require CONTRACTOR to furnish such other data about the proposed substitute as he considers pertinent. No substitute shall be ordered or installed without such performance guarantee and bonds as OWNER may require which shall be furnished at CONTRACTOR's expense.

Concerning Subcontractors:

6.8 CONTRACTOR shall not employ any Subcontractor or other person or organization (including those who are to furnish the principal items of materials or equipment), whether initially or as a substitute, against whom OWNER or ENGINEER may have reasonable objection. A Subcontractor or other person or organization identified in writing to OWNER and ENGINEER by CONTRACTOR prior to the Notice of Award and not objected to in writing by OWNER or ENGINEER prior to the Notice of Award will be deemed acceptable to OWNER and ENGINEER. Acceptance of any Subcontractor, other person or organization by OWNER or ENGINEER shall not constitute a waiver of any right of OWNER or ENGINEER to reject defective Work or Work not in conformance with the Contract Documents. If OWNER or ENGINEER after due investigation has reasonable objection to any Subcontractor, other person or organization proposed by CONTRACTOR after the Notice of Award.

CONTRACTOR shall submit an acceptable substitute and the Contract Price shall be increased or decreased by the 25 difference in cost occasioned by such substitution, and an appropriate Change Order shall be issued. CONTRACTOR shall not be required to employ any Subcontractor, other person or organization against whom he has reasonable objection. CONTRACTOR shall not without the consent of OWNER and ENGINEER make any substitution for any Contractor, other person or organization who has been accepted by OWNER and ENGINEER unless ENGINEER determines that there is good cause for doing so.

6.9 CONTRACTOR shall be fully responsible for all acts and omissions of his Subcontractors and of persons and organizations directly or indirectly employed by them and of persons and organizations for whose acts any of them may be liable to the same extent that he is responsible for the acts and omissions of persons directly employed by him. Nothing in the Contract Documents shall create any contractual relationship between OWNER or ENGINEER and any Subcontractor or other person or organization having a direct contract with CONTRACTOR, nor shall it create any obligation on the part of OWNER or ENGINEER or pay or to see to the payment of any moneys due any Subcontractor or other person or organization, except as may otherwise be required by law. OWNER or ENGINEER may furnish to any Subcontractor or other person or organization, to the extent practicable, evidence of amounts paid to CONTRACTOR on account of specific Work done in accordance with the schedule of values.

6.10 The divisions and sections of the Specifications and the identifications of any Drawings shall not control CONTRACTOR in dividing the Work among Subcontractors or delineating the Work to be performed by any specific trade.

6.11 CONTRACTOR agrees to bind specifically every Subcontractor to the applicable terms and conditions of the Contract Documents for the benefit of OWNER.

6.12 All Work performed for CONTRACTOR by a Subcontractor shall be pursuant to an appropriate agreement between CONTRACTOR and the Subcontractor which shall contain provisions that waive all rights the contracting parties may have against one another for damages caused by fire or other perils covered by insurance provided in accordance with paragraphs 5.5 through 5.11, inclusive, except such rights as they may have to the proceeds of such insurance held by OWNER as trustee under paragraph 5.9. CONTRACTOR shall pay each Subcontractor a just share of any insurance moneys received by CONTRACTOR under paragraph 5.5 through 5.11, inclusive.

Patent Fees and Royalties:

6.13 CONTRACTOR shall pay all license fees and royalties and assume all costs incident to the use in the performance of the Work of an invention, design, process, product, or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, product, or device is specified in the Contract Documents for use in the performance of the Work and if to the actual knowledge of OWNER or ENGINEER its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by OWNER in the Contract Documents. CONTRACTOR shall indemnify and hold harmless OWNER and ENGINEER and anyone directly or indirectly employed by either of them from and against all claims, damages, losses, and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the Work or resulting from the incorporation in the Work of any invention, design, process, product, or device not specified in the Contract Documents, and shall defend all such claims in connection with any alleged infringement of such rights.

Permits:
26 6.14 CONTRACTOR shall obtain and pay for all construction permits and licenses and shall pay all governmental charges and inspection fees necessary for the prosecution of the Work, which are applicable at the time of his Bid. OWNER shall assist CONTRACTOR, when necessary, in obtaining such permits and licenses.

CONTRACTOR shall also pay all public utility charges.

Laws and Regulations:

6.15 CONTRACTOR shall give all notices and comply with all laws, ordinances, rules, and regulations applicable to the Work. If CONTRACTOR observes that the Specifications and Drawings are at variance therewith, he shall give ENGINEER prompt written notice thereof, and any necessary changes shall be adjusted by an appropriate Modification. If CONTRACTOR performs any Work knowing it to be contrary to such laws, ordinances, rules, and regulations, and without such notice to ENGINEER, he shall bear all costs arising therefrom; however, it shall not be his primary responsibility to make certain that the Specifications and Drawings are in accordance with such laws, ordinances, rules, and regulations.

Taxes:

6.16 CONTRACTOR shall pay all sales, consumer, use, and other similar taxes required to be paid by him in accordance with the law of the place where the Work is to be performed.

Use of Premises:

6.17 CONTRACTOR shall confine his equipment, the storage of materials and equipment, and the operations of his workmen to areas permitted by law, ordinances, permits, or the requirements of the Contract Documents, and shall not unreasonably encumber the premises with materials or equipment.

6.18 CONTRACTOR shall not load nor permit any part of any structure to be loaded with weights that will endanger the structure, nor shall he subject any part of the Work to stresses or pressures that will endanger it.

Record Drawings:

6.19 CONTRACTOR shall keep one record copy of all Specifications, Drawings, Addenda, Modifications, and Shop Drawings at the site in good order and annotated to show changes made during the construction process.

These shall be available to ENGINEER and shall be delivered to him for OWNER upon completion of the Project. [Note: Further provisions in respect of such record drawings may be included in the General Requirements (Division 1).]
Safety and Protection:

6.20 CONTRACTOR shall be responsible for initiating, maintaining, and supervising all safety precautions and programs in connection with the Work. He shall take all necessary precautions for the safety of, and shall provide the necessary protection to prevent damage, injury, or loss to:

6.20.1 all employees on the Work and other persons who may be affected thereby,

6.20.2 all the Work and all materials or equipment to be incorporated therein, whether in storage on or off the site and
27 6.20.3 other property at the site or adjacent thereto, including trees, shrubs, lawns, walks, pavements, roadways, structures, and utilities not designated for removal, relocation, or replacement in the course of construction.

CONTRACTOR shall comply with all applicable laws, ordinances, rules, regulations, and orders of any public body having jurisdiction for the safety of persons or property or to protect them from damage, injury, or loss. He shall erect and maintain, as required by the conditions and progress of the Work, all necessary safeguards for its safety and protection. He shall notify OWNERs of adjacent utilities when prosecution of the Work may affect them. All damage, injury, or loss to any property referred to in paragraph 6.20.2 or 6.20.3 caused, directly or indirectly, in whole or in part, by CONTRACTOR, any Subcontractor or anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, shall be remedied by CONTRACTOR: except damage or loss attributable to the fault of Drawings or Specifications or to the acts or omissions of OWNER or ENGINEER or anyone employed by either of them or anyone for whose acts either of them may be liable, and not attributable, directly or indirectly, in whole or in part, to the fault or negligence of CONTRACTOR. CONTRACTOR's duties and responsibilities for the safety and protection of the Work shall continue until such time as all the Work is completed and ENGINEER has issued a notice to OWNER and CONTRACTOR in accordance with paragraph 14.13 that Work is acceptable

6.21 CONTRACTOR shall designate a responsible member of his organization at the site whose duty shall be the prevention of accidents. This person shall be CONTRACTOR's superintendent unless otherwise designated in writing by CONTRACTOR to OWNER.

Emergencies:

6.22 In emergencies affecting the safety of persons or the Work or property at the site or adjacent thereto, CONTRACTOR, without special instruction or authorization from ENGINEER or OWNER, is obligated to act, at his discretion, to prevent threatened damage, injury, or loss. He shall give ENGINEER prompt written notice of any significant changes in the Work or deviations from the Contract Documents caused thereby, and a Change Order shall thereupon be issued covering the changes and deviations involved. If CONTRACTOR believes that additional work done by him in any emergency which arose from causes beyond his control entitles him to an increase in the Contract Price or an extension of the Contract Time, he may make a claim therefore as provided in Articles 11 and

12. Shop Drawings and Samples:

6.23 After checking and verifying all field measurements. CONTRACTOR shall submit to ENGINEER for approval, in accordance with the accepted schedule of Shop Drawing submissions (see paragraph 2.8) five copies (or at ENGINEER's option, one reproducible copy) of all Shop Drawings, which shall have been checked by and stamped with the approval of CONTRACTOR and identified as ENGINEER may require. The data shown on the Shop Drawings will be complete with respect to dimensions, design criteria, materials of construction, and the like to enable ENGINEER to review the information as required.

6.24 CONTRACTOR shall also submit to ENGINEER for approval with such promptness as to cause no delay in Work, all samples required by the Contract Documents. All samples will have been checked by and stamped with the approval of CONTRACTOR, identified clearly as to material, manufacturer, any pertinent catalog numbers and the use for which intended.
28 6.25 At the time of submission, CONTRACTOR shall in writing call ENGINEER's attention to any deviations that the Shop Drawing or sample may have from the requirements of the Contract Documents.

6.26 ENGINEER will review and approve with reasonable promptness Shop Drawings and samples, but his review and approval shall be only for conformance with the design concept of the Project and for compliance with the information given in the Contract Documents. The approval of a separate item as such will not indicate approval of the assembly in which the item functions. CONTRACTOR shall make any corrections required by ENGINEER and shall return the required number of corrected copies of Shop Drawings and resubmit new samples until approved.

CONTRACTOR shall direct specific attention in writing or on resubmitted Shop Drawings to revisions other than the corrections called for by ENGINEER on previous submissions. CONTRACTOR's stamp of approval on any Shop Drawing or sample shall constitute a representation to OWNER and ENGINEER that CONTRACTOR has either determined and verified all quantities, dimensions, field construction criteria, materials, catalog numbers, and similar data or he assumes full responsibility for doing so, and that he has reviewed or coordinated each Shop Drawing or sample with the requirements of the Work and the Contract Documents.

6.27 Where a Shop Drawing or sample submission is required by the Specifications, no related Work shall be commenced until the submission has been approved by ENGINEER. A copy of each approved Shop Drawing and each approved sample shall be kept in good order by CONTRACTOR at the site and shall be available to ENGINEER.

6.28 ENGINEER's approval of Shop Drawings or samples shall not relieve CONTRACTOR from his responsibility for any deviations from the requirements of the Contract Documents unless CONTRACTOR has in writing called ENGINEER's attention to such deviation at the time of submission and ENGINEER has given written approval to the specific deviation, nor shall any approval by ENGINEER relieve CONTRACTOR from responsibility for errors or omissions in the Shop Drawings.
[Note: Further provisions in respect to Shop Drawings and samples may be included in the General Requirements (Division 1).]
Cleaning:

6.29 CONTRACTOR shall keep the premises free from accumulations of waste materials, rubbish, and other debris resulting from the Work, and at the completion of the Work he shall remove all waste materials, rubbish, and debris from and about the premises as well as all tools, construction equipment and machinery, and surplus materials, and shall leave the site clean and ready for occupancy by OWNER. CONTRACTOR shall restore to their original condition those portions of the site not designated for alteration by the Contract Documents. [Note: Further provisions in respect to cleaning may be included in the General Requirements (Division 1).] Indemnification:

6.30 CONTRACTOR shall indemnify and hold harmless OWNER and ENGINEER and their agents and employees from and against all claims, damages, losses, and expenses including attorneys' fees arising out of or resulting from the performance of the Work, provided that any such claim, damage, loss, or expense (a) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom and (b) is caused in whole or in part by any negligent act or omission of CONTRACTOR, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder.
29 6.31 In any and all claims against OWNER or ENGINEER or any of their agents or employees by an employee of CONTRACTOR, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, the indemnification obligation under paragraph 6.30 shall not be limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable by or for CONTRACTOR or any Subcontractor under workmen's compensation acts, disability benefit acts or other employee benefit acts.

6.32 The obligations of CONTRACTOR under paragraph 6.30 shall not extend to the liability of ENGINEER, his agents, or employees arising out of (a) the preparation or approval of maps, drawings, opinions, reports, surveys, Change Orders, designs or specifications or (b) the giving of or the failure to give directions or instructions by ENGINEER, his agents, or employees provided such giving or failure to give is the primary cause of injury or damage.

ARTICLE 7 - WORK BY OTHERS

7.1 OWNER may perform additional work related to the Project by himself, or he may let other direct contracts therefore which shall contain General Conditions similar to these. CONTRACTOR shall afford the other CONTRACTOR'S who are parties to such direct contracts (or OWNER, if he is performing the additional work himself), reasonable opportunity for the introduction and storage of materials and equipment and the execution of work, and shall properly connect and coordinate his Work with theirs.

7.2 If any part of CONTRACTOR's Work depends for proper execution or results upon the work of any such other contractor (or OWNER), CONTRACTOR shall inspect and promptly report to ENGINEER in writing any defects or deficiencies in such work that render it unsuitable for such proper execution and results. His failure so to report shall constitute an acceptance of the other work as fit and proper for the relationship of his Work except as to defects and deficiencies which may appear in the other work after the execution of his Work.

7.3 CONTRACTOR shall do all cutting, fitting, and patching of his Work that may be required to make its several parts come together properly and fit it to receive or be received by such other work. CONTRACTOR shall not endanger any work by others by cutting, excavating, or otherwise altering their work and will only cut or alter their work with the written consent of ENGINEER and of the other CONTRACTOR'S whose work will be affected.

7.4 If the performance of additional work by other CONTRACTOR'S or OWNER is not noted in the Contract Documents prior to the execution of the contract, written notice thereof shall be given to CONTRACTOR prior to starting any such additional work. If CONTRACTOR believes that the performance of such additional work by OWNER or others involves him in additional expenses or entitles him to an extension of the Contract Time, he may make a claim therefore as provided in Articles 11 and 12.

ARTICLE 8 - OWNER'S RESPONSIBILITIES

8.1 OWNER shall issue all communications to CONTRACTOR through ENGINEER.

8.2 In case of termination of the employment of ENGINEER, OWNER shall appoint an engineer against 30 whom CONTRACTOR makes no reasonable objections, whose status under the Contract Documents shall be that of the former ENGINEER. Any dispute in connection with such appointment shall be subject to arbitration.

8.3 OWNER shall furnish the data required of him under the Contract Documents promptly and shall make payments to CONTRACTOR promptly after they are due as provided in paragraph 14.4 and 14.13.

8.4 OWNER's duties in respect to providing lands and easements and providing engineering surveys to establish reference points are set forth in paragraphs 4.1 and 4.4. Paragraph 4.2 refers to OWNER's identifying and making available to CONTRACTOR copies of surveys and investigation reports of subsurface and latent physical conditions at the site or otherwise affecting performance of the Work which have been relied upon by ENGINEER in preparing the Drawings and Specifications.

8.5 OWNER's responsibilities in respect of liability and property insurance are set forth in paragraph 5.4 and

5.5. 8.6 In addition to his rights to request changes in the Work in accordance with Article 10, OWNER (especially in certain instances as provided in paragraph 10.4) shall be obligated to execute Change Orders.

8.7 OWNER's responsibility in respect of certain inspections, tests, and approvals is set forth in paragraph

13.2. 8.8 In connection with OWNER's right to stop Work or suspend Work, see paragraphs 13.8 and 15.1.

Paragraph 15.2 deals with the OWNER's right to terminate services of CONTRACTOR under certain circumstances. 31 ARTICLE 9 - ENGINEER'S STATUS DURING CONSTRUCTION

OWNER's Representative:

9.1 ENGINEER will be OWNER's representative during the construction period. The duties and responsibilities and the limitations of authority of ENGINEER as OWNER's representative during construction are set forth in Articles 1 through 17 of these General Conditions and shall not be extended without written consent of OWNER and ENGINEER.

Visits to Site:

9.2 ENGINEER will make periodic visits to the site to observe the progress and quality of the executed Work and to determine, in general, if the Work is proceeding in accordance with the Contract Documents. He will not be required to make exhaustive or continuous on-site inspections to check the quality or quantity of the Work. His efforts will be directed toward providing assurance for OWNER that the completed Project will conform to the requirements of the Contract Documents. On the basis of his on-site observations as an experienced and qualified design professional, he will keep OWNER informed of the progress of the Work and will endeavor to guard OWNER against defects and deficiencies in the Work of CONTRACTOR'S.

Clarifications and Interpretations:

9.3 ENGINEER will issue with reasonable promptness such written clarifications or interpretations of the Contract Documents (in the form of Drawings or otherwise) as he may determine necessary, which shall be consistent with or reasonably inferable from the overall intent of the Contract Documents. If CONTRACTOR believes that a written clarification or interpretation entitles him to an increase in the Contract Price, he may make a claim therefore as provided in Article 11.

Rejecting Defective Work:

9.4 ENGINEER will have authority to disapprove or reject Work which is "defective" (which term is hereinafter used to describe Work that is unsatisfactory, faulty, or defective, or does not conform to the requirements of the Contract Documents or does not meet the requirements of any inspection, test or approval referred to in paragraph 13.2 or has been damaged prior to approval of final payment). He will also have authority to require special inspection or testing of the Work as provided in paragraph 13.7, whether or not the Work is fabricated, installed, or completed.

Shop Drawings, Change Orders and Payments:

9.5 In connection with ENGINEER's responsibility for Shop Drawings and samples, see paragraphs 6.23 through 6.28 inclusive.

9.6 In connection with ENGINEER's responsibility for Change Orders, see Articles 10, 11, and 12. 32 9.7 In connection with ENGINEER's responsibilities in respect of Applications for Payment, etc., see Article

14. Resident Project Representative:

9.8 If OWNER and ENGINEER agree, ENGINEER will furnish a Resident Project Representative and assistants to assist ENGINEER in carrying out his responsibilities at the site. The duties, responsibilities, and limitations of authority of any such Resident Project Representative and assistants shall be as set forth in an exhibit to be incorporated in the Contract Documents.

Decisions on Disagreements:

9.9 ENGINEER will be the interpreter of the requirements of the Contract Documents and the judge of the performance thereunder. In his capacity as interpreter and judge he will exercise his best efforts to insure faithful performance by both OWNER and CONTRACTOR. He will not show partiality to either and will not be liable for the result of any interpretation or decision rendered in good faith. Claims, disputes, and other matters relating to the execution of or performance under the Contract Documents shall be referred to ENGINEER for decision; which he will render in writing within a reasonable time.

9.10 Either OWNER or CONTRACTOR may demand arbitration with respect to any such claim, dispute or other matter that has been referred to ENGINEER, except any which have been waived by the making or acceptance of final payment as provided in paragraph 14.16, such arbitration to be in accordance with Article 14.16, such arbitration to be in accordance with Article 16. However, no demand for arbitration of any such claim, dispute, or other matter shall be made until the earlier of (a) the date on which ENGINEER has rendered his decision or (b) the tenth day after the parties have presented their evidence to ENGINEER if he has not rendered his written decision before that date. No demand for arbitration shall be made later than thirty days after the date on which ENGINEER rendered his written decision in respect to the claim, dispute, or other matter as to which arbitration is sought; and the failure to demand arbitration within said thirty days' period shall result in ENGINEER's decision being final and binding upon OWNER and CONTRACTOR. If ENGINEER renders a decision after arbitration proceedings have been initiated, such decision may be entered as evidence but shall not supersede the arbitration proceedings, except where the decision is acceptable to the parties concerned.

Limitations on ENGINEER's Responsibilities:

9.11 Neither ENGINEER's authority to act under this Article 9 or elsewhere in the Contract Documents nor any decision made by him in good faith either to exercise or not exercise such authority shall give rise to any duty or responsibility of ENGINEER to CONTRACTOR, any Subcontractor, any materialman, fabricator, supplier, or any of their agents or employees any other person performing any of the Work.

9.12 ENGINEER will not be responsible for CONTRACTOR's means, methods, techniques, sequences or procedures of construction, or the safety precautions and programs incident thereto, and he will not be responsible for CONTRACTOR's failure to perform the Work in accordance with the Contract Documents.

9.13 ENGINEER will not be responsible for the acts or omissions of CONTRACTOR, or any Subcontractors, or any of his or their agents or employees, or any other persons at the site or otherwise performing any of the Work. 33 ARTICLE 10 - CHANGES IN THE WORK

10.1 Without invalidating the Agreement, OWNER may, at any time or from time to time, other additions, deletions, or revisions in the Work; these will be authorized by Change Orders. Upon receipt of a Change Order, CONTRACTOR shall proceed with the Work involved. All such Work shall be executed under the applicable conditions of the Contract Documents. If any Change Order causes an increase or decrease in the Contract Price or an extension or shortening of the Contract Time, an equitable adjustment will be made as provided in Article 11 or Article 12 on the basis of a claim made by either party.

10.2 ENGINEER may authorize minor changes or alterations in the Work not involving extra cost and not inconsistent with the overall intent of the Contract Documents. These may be accomplished by a Field Order. If CONTRACTOR believes that any minor change or alteration authorized by ENGINEER entitles him to an increase in the Contract Price, he may make a claim therefore as provided in Article 11.

10.3 Additional Work performed by CONTRACTOR without authorization of a Change Order will not entitle him to an increase in the Contract Price or an extension of the Contract Time, except in the case of an emergency as provided in paragraph 6.22 and except as provided in paragraphs 10.2 and 13.7.

10.4 OWNER shall execute appropriate Change Orders prepared by ENGINEER covering changes in the Work to be performed as provided in paragraph 4.3, and Work performed in an emergency as provided in paragraph

6.22 and any other claim of CONTRACTOR for a change in the Contract Time or the Contract Price which is approved by ENGINEER.

10.5 It is CONTRACTOR's responsibility to notify his Surety of any changes affecting the general scope of the Work or change in the Contract Price and the amount of the applicable Bonds shall be adjusted accordingly.

CONTRACTOR shall furnish proof of such adjustment to OWNER.

ARTICLE 11 - CHANGE OF THE CONTRACT PRICE

11.1 The Contract Price constitutes the total compensation payable to CONTRACTOR for performing the Work. All duties, responsibilities, and obligations assigned to or undertaken by CONTRACTOR shall be at his expense without change in the Contract Price.

11.2 The Contract Price may only be changed by a Change Order. Any claim for an increase in the Contract Price shall be based on written notice delivered to OWNER and ENGINEER within fifteen days of the occurrence of the event giving rise to the claim. Notice of the amount of the claim with supporting data shall be delivered within forty-five days of such occurrence unless ENGINEER allows an additional period of time to ascertain accurate cost data. All claims for adjustments in the Contract Price shall be determined by ENGINEER if OWNER and CONTRACTOR cannot otherwise agree on the amount involved. Any change in the Contract Price resulting from any such claim shall be incorporated in a Change Order.

11.3 The value of any Work covered by a Change Order or of any claim for an increase or decrease in the Contract Price shall be determined in one of the following ways:

11.3.1 Where the Work involved is covered by unit prices contained in the Contract Documents, by application of unit prices to the quantities of the items involved. 34 11.3.2 By mutual acceptance of a lump sum.

11.3.3 On the basis of the Cost of the Work (determined as provided in paragraphs 11.4 and 11.5) plus a Contractor's Fee for overhead and profit (determined as provided in paragraph 11.6).

Cost of the Work:

11.4 The term Cost of the Work means the sum of all costs necessarily incurred and paid by the CONTRACTOR in the proper performance of the Work. Except as otherwise may be agreed to in writing by OWNER, such costs shall be in amounts no higher than those prevailing in the locality of the Project, shall include only the following items and shall not include any of the costs itemized in paragraph 11.5:

11.4.1 Payroll costs for employees in the direct employ of CONTRACTOR in the performance of the Work under schedules of job classifications agreed upon by OWNER and CONTRACTOR. Payroll costs for employees not employed full time on the Work shall be apportioned on the basis of their time spent on the Work.

Payroll costs shall include, but not be limited to, salaries and wages plus the cost of fringe benefits which shall include social security contributions, unemployment, excise and payroll taxes, workmen's compensation, health and retirement benefits, bonuses, sick leave, vacation and holiday pay applicable thereto. Such employees shall include superintendents and foreman at the site. The expenses of performing work after regular working hours on Sunday or legal holidays shall be included in the above to the extent authorized by OWNER.

11.4.2 Cost of all materials and equipment furnished and incorporated in the Work, including costs of transportation and storage thereof, and manufacturers' field services required in connection therewith. All cash discounts shall accrue to CONTRACTOR unless OWNER deposits funds with CONTRACTOR with which to make payments, in which case the cash discounts shall accrue to OWNER. All trade discounts, rebates and refunds, and all returns from sale of surplus materials and equipment shall accrue to OWNER, and CONTRACTOR shall make provisions so that they may be obtained.

11.4.3 Payments made by CONTRACTOR to the Subcontractors for Work performed by Subcontractors. If required by OWNER, CONTRACTOR shall obtain competitive bids from Subcontractors acceptable to him and shall deliver such bids to OWNER who will then determine with the advice of ENGINEER, which bids will be accepted. If a subcontract provides that the Subcontractor is to be paid on the basis of Cost of the Work Plus a Fee, the Cost of the Work shall be determined in accordance with paragraphs 11.4 and 11.5. All subcontracts shall be subject to the other provisions of the Contract Documents insofar as applicable.

11.4.4 Costs of special consultants (including, but not limited to, engineers, architects, testing laboratories, surveyors, lawyers, and accountants) employed for services specifically related to the Work.

11.4.5 Supplemental costs including the following:

11.4.5.1 The proportion of necessary transportation, traveling, and subsistence expenses of CONTRACTOR's employees incurred in discharge of duties connected with the Work.

11.4.5.2 Cost, including transportation and maintenance, of all materials, supplies, equipment, machinery, appliances, office and temporary facilities at the site and hand tools not owned by the workmen, which are consumed in the performance of the Work, and cost less market value of such items used but not consumed which 35 remain the property of CONTRACTOR.

11.4.5.3 Rentals of all construction equipment and machinery and the parts thereof whether rented from CONTRACTOR or others in accordance with rental agreements approved by OWNER with the advice of ENGINEER, and the costs of transportation, loading, unloading, installation, dismantling and removal thereof--all in accordance with terms of said rental agreements. The rental of any such equipment, machinery or parts shall cease when the use thereof is no longer necessary for the Work.

11.4.5.4 Sales, use or similar taxes related to the Work, and for which CONTRACTOR is liable, imposed by any governmental authority.

11.4.5.5 Deposits lost for causes other than CONTRACTOR's negligence, royalty payments and fees for permits and licenses.

11.4.5.6 Losses, damages and expenses, not compensated by insurance or otherwise, sustained by CONTRACTOR in connection with the execution of, and to, the Work, provided they have resulted from causes other than the negligence of CONTRACTOR, any Subcontractor, or anyone directly or indirectly employed by any of them for whose acts any of them may be liable. Such losses shall include settlements made with the written consent and approval of OWNER. No such losses, damages and expenses shall be included in the Cost of the Work for the purpose of determining Contractor's Fee. If, however, any such loss or damage requires reconstruction and CONTRACTOR is placed in charge thereof, he shall be paid for his services a fee proportionate to that stated in paragraph 11.6.2.

11.4.5.7 The cost of utilities, fuel and sanitary facilities at the site.

11.4.5.8 Minor expenses such as telegrams, long distance telephone calls, telephone service at the site, expressage and similar petty cash items in connection with the Work.

11.4.5.9 Cost of premiums for bonds and insurance which OWNER is required to pay in accordance with paragraph 5.12.

11.5 The term Cost of the Work shall not include any of the following:

11.5.1 Payroll costs and other compensation of CONTRACTOR's officers, executives, principals (of partnership and sole proprietorships), general managers, engineers, architects, estimators, lawyers, auditors, accountants, purchasing and contracting agents, expeditors, timekeepers, clerks and other personnel employed by CONTRACTOR whether at the site or in his principal or a branch office for general administration of the Work and not specifically included in the schedule referred to in subparagraph 11.4.1--all of which are to be considered administrative costs covered by the Contractor's Fee.

11.5.2 Expenses of CONTRACTOR's principal and branch offices other than his office at the site.

11.5.3 Any part of CONTRACTOR's capital expenses, including interest on CONTRACTOR's capital employed for the Work and charges against CONTRACTOR for delinquent payments.

11.5.4 Cost of premiums for all bonds and for all insurance policies whether or not CONTRACTOR is required by the Contract Documents to purchase and maintain the same (except as otherwise provided in 36 subparagraph 11.4.5.9).

11.5.5 Costs due to negligence of CONTRACTOR, any Subcontractor, or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable, including but not limited to, the correction of defective work, disposal of materials or equipment wrongly supplied and making good any damage to property.

11.5.6 Other overhead or general expense costs of any kind and the costs of any item not specifically and expressly included in paragraph 11.4.

Contractor's Fee:

11.6 The Contractor's Fee which shall be allowed to CONTRACTOR for his overhead and profit shall be determined as follows:

11.6.1 a mutually acceptable fixed fee; or if none can be agreed upon,

11.6.2 a fee based on the following percentages of the various portions of the Cost of the Work:

11.6.2.1 for costs incurred under paragraphs 11.4.1 and 11.4.2, the Contractor's Fee shall be ten percent,

11.6.2.2 for costs incurred under paragraph 11.4.3, the Contractor's Fee shall be five percent; and if a subcontract is on the basis of Cost of the Work Plus a Fee, the maximum allowable to the Subcontractor as a fee for overhead and profit shall be ten percent, and

11.6.2.3 no fee shall be payable on the tasks of costs itemized under paragraphs 11.4.4, 11.4.5 and

11.5. 11.7 The amount of credit to be allowed by CONTRACTOR to OWNER for any such change which results in a net decrease in cost, will be the amount of the actual net decrease. When both additions and credits are involved in any one change, the combined overhead and profit shall be figured on the basis of the net increase, if any.

11.8 Whenever the cost of any Work is to be determined pursuant to paragraphs 11.4 and 11.5, CONTRACTOR will submit in form prescribed by ENGINEER an itemized cost breakdown together with supporting data.

Cash Allowance:

11.9 It is understood that CONTRACTOR has included in the Contract Price all allowances so named in the Contract Documents and shall cause the Work so covered to be done by such materialmen, suppliers or Subcontractors and for such sums within the limit of the allowances as ENGINEER may approve. Upon final payment, the Contract Price shall be adjusted as required and an appropriate Change Order issued. CONTRACTOR agrees that the original Contract Price includes such sums as he deems proper for costs and profit on account of cash allowances. No demand for additional cost or profit in connection therewith will be allowed. 37 ARTICLE 12 - CHANGE OF THE CONTRACT TIME

12.1 The Contract Time may only be changed by a Change Order. Any claim for an extension in the Contract Time shall be based on written notice delivered to OWNER and ENGINEER within fifteen days of the occurrence of the event giving rise to the claim. Notice of the extent of the claim with supporting data shall be delivered within forty-five days of such occurrence unless ENGINEER allows an additional period of time to ascertain more accurate data. All claims for adjustment in the Contract Time shall be determined by ENGINEER if OWNER and CONTRACTOR cannot otherwise agree. Any change in the Contract Time resulting from any such claim shall be incorporated in a Change Order.

12.2 The Contract Time will be extended in an amount equal to time lost due to delays beyond the control of CONTRACTOR if he makes a claim therefore as provided in paragraph 12.1. Such delays shall include, but not be restricted to, acts or neglect by any separate contractor employed by OWNER, fires, floods, labor disputes, epidemics, abnormal weather conditions, or acts of God.

12.3 All time limits stated in the Contract Documents are of the essence of the Agreement. The provisions of this Article 12 shall not exclude recovery for damages (including compensation for additional professional services) for delay by either party.

38 ARTICLE 13 - WARRANTY AND GUARANTEE; TESTS AND
INSPECTIONS; CORRECTION, REMOVAL OF

ACCEPTANCE OF DEFECTIVE WORK

Warranty and Guarantee:

13.1 CONTRACTOR warrants and guarantees to OWNER and ENGINEER that all materials and equipment will be new unless otherwise specified and that all Work will be of good quality and free from faults or defects and in accordance with the requirements of the Contract Documents and of any inspections, tests or approvals referred to in paragraph 13.2. All unsatisfactory Work, all faulty or defective Work, and all Work not conforming to the requirements of the Contract Documents at the time of acceptance thereof or of such inspections, test or approvals, shall be considered defective. Prompt notice of all defects shall be given to CONTRACTOR. All defective Work, whether or not in place, may be rejected, corrected or accepted as provided in this Article 13.

Tests and Inspections:

13.2 If the Contract Documents, laws, ordinances, rules, regulations or orders of any public authority having jurisdiction require any Work to specifically be inspected, tested, or approved by some public body, CONTRACTOR shall assume full responsibility therefore, pay all costs in connection therewith and furnish ENGINEER the required certificates of inspection, testing or approval. All other inspections, tests and approvals required by the Contract Documents shall be performed by organizations acceptable to OWNER and CONTRACTOR and the costs thereof shall be borne by OWNER unless otherwise specified.

13.3 CONTRACTOR shall give ENGINEER timely notice of readiness of the Work for all inspections, tests or approvals. If any such Work required so to be inspected, tested or approved is covered without written approval of ENGINEER, it must, if requested by ENGINEER, be uncovered for observation, and such uncovering shall be at CONTRACTOR's expense unless CONTRACTOR has given ENGINEER timely notice of his intention to cover such Work and ENGINEER has not acted with reasonable promptness in response to such notice.

13.4 Neither observations by ENGINEER nor inspections, tests or approvals by persons other than CONTRACTOR shall relieve CONTRACTOR from his obligations to perform the Work in accordance with the requirements of the Contract Documents.

Access to Work:

13.5 ENGINEER and his representatives and other representatives of OWNER will at reasonable times have access to the Work. CONTRACTOR shall provide proper and safe facilities for such access and observation of the Work and also for any inspection or testing thereof by others.

Uncovering Work:

13.6 If any Work is covered contrary to the written request of ENGINEER, it must, if requested by ENGINEER, be uncovered for his observation and replaced at CONTRACTOR's expense.

13.7 If any Work has been covered which ENGINEER has not specifically requested to observe prior to its being covered, or if ENGINEER considers it necessary or advisable that covered Work be inspected or tested by others, CONTRACTOR, at ENGINEER's request, shall uncover, expose or otherwise make available for observation, inspection or testing as ENGINEER may require, that portion of the Work in question, furnishing all necessary labor, 39 material and equipment. If it is found that such Work is defective, CONTRACTOR shall bear all the expenses of such uncovering, exposure, observation, inspection and testing and of satisfactory reconstruction, including compensation for additional professional services, and an appropriate deductive Change Order shall be issued. If, however, such Work is not found to be defective, CONTRACTOR shall be allowed an increase in the Contract Price or an extension of the Contract Time, or both, directly attributable to such uncovering, exposure, observation, inspection, testing and reconstruction if he makes a claim therefore as provided in Articles 11, and 12.

OWNER May Stop the Work:

13.8 If the Work is defective, or CONTRACTOR fails to supply sufficient skilled workmen or suitable materials or equipment, or if CONTRACTOR fails to make prompt payments to Subcontractors or for labor, materials or equipment, OWNER may order CONTRACTOR to stop the Work, or any portion thereof, until the cause for such order has been eliminated; however, this right of OWNER to stop the Work shall not give rise to any duty on the part of OWNER to exercise this right for the benefit of CONTRACTOR or any other party.

Correction or Removal of Defective Work:

13.9 If required by ENGINEER prior to approval of final payment, CONTRACTOR shall promptly, without cost to OWNER and as specified by ENGINEER, either correct or defective Work, whether or not fabricated, installed or completed, or, if the Work has been rejected by ENGINEER, remove it from the site and replace it with nondefective Work. If CONTRACTOR does not correct such defective Work or remove and replace such rejected Work within a reasonable time, all as specified in a written notice from ENGINEER, OWNER may have the deficiency corrected or the rejected Work removed and replaced. All direct or indirect costs of such correction or removal and replacement, including compensation for additional professional services, shall be paid by CONTRACTOR, and an appropriate deductive Change Order shall be issued. CONTRACTOR shall also bear the expenses of making good all Work of others destroyed or damaged by his correction, removal or replacement of his defective Work.

One Year Correction Period:

13.10 If after the approval of final payment and prior to the expiration of one year after the date of Substantial Completion or such longer period of time as may be prescribed by law or by the terms of any applicable special guarantee required by the Contract Documents, any Work is found to be defective, CONTRACTOR shall promptly, without cost to OWNER and in accordance with OWNER's written instructions, either correct such defective Work, or, if it has been rejected by OWNER, remove it from the site and replace it with nondefective Work. If CONTRACTOR does not promptly comply with the terms of such instructions, OWNER may have the defective Work corrected or the rejected Work removed and replaced, and all direct and indirect costs of such removal and replacement, including compensation for additional professional services, shall be paid by CONTRACTOR.

Acceptance of Defective Work:

13.11 If instead of requiring correction or removal and replacement of defective Work, OWNER (and, prior to approval of final payment, also ENGINEER) prefers to accept it, he may do so. In such case, if acceptance occurs prior to approval of final payment, a Change Order shall be issued incorporating the necessary revisions in the Contract Documents, including appropriate reduction in the Contract Price; or, if the acceptance occurs after approval of final payment, an appropriate amount shall be paid by CONTRACTOR to OWNER. 40 Neglected Work by Contractor:

13.12 If CONTRACTOR shall fail to prosecute the Work in accordance with the Contract Documents, including any requirements of the progress schedule, OWNER, after seven days' written notice to CONTRACTOR may, without prejudice to any other remedy he may have, make good such deficiencies and the cost thereof (including compensation for additional professional services) shall be charged against CONTRACTOR if ENGINEER approves such action, in which case a Change Order shall be issued incorporating the necessary revisions in the Contract Documents including an appropriate reduction in the Contract Price. If the payments then or thereafter due CONTRACTOR are not sufficient to cover such amount, CONTRACTOR shall pay the difference to OWNER.

ARTICLE 14 - PAYMENTS AND COMPLETION

Schedules:

14.1 At least ten days prior to submitting the first Application for a progress payment, CONTRACTOR shall submit a progress schedule, a final schedule of Shop Drawing and a schedule of values of the Work. These schedules shall be satisfactory in form and substance to ENGINEER. The schedule of values shall include quantities and unit prices aggregating the Contract Price, and shall subdivide the Work into component parts in sufficient detail to serve as the basis for progress payments during construction. Upon approval of the schedules of values by ENGINEER, it shall be incorporated into the form of Application for Payment furnished by ENGINEER.

Application for Progress Payment:

14.2 At least ten days before such progress payment falls due (but not more often than once a month), CONTRACTOR shall submit to ENGINEER for review an Application for Payment filled out and signed by CONTRACTOR covering the Work completed as of the date of the Application and accompanied by such data and schedules as ENGINEER may reasonably require. If payment is requested on the basis of materials and equipment not incorporated in the Work but delivered and suitably stored at the site or at another location agreed to in writing, the Application for Payment shall also be accompanied by such data, satisfactory to OWNER, as will establish OWNER's title to the material and equipment and protect his interest therein, including applicable insurance. Each subsequent Application for Payment shall include an affidavit of CONTRACTOR stating that all previous progress payments received on account of the Work have been applied to discharge in full all of CONTRACTOR's obligations reflected in prior Applications for Payment.

Contractor's Warranty of Title:

14.3 CONTRACTOR warrants and guarantees that title to all Work, materials and equipment covered by any Application for Payment, whether incorporated in the Project or not, will pass to OWNER at the time of payment free and clear of all liens, claims, security interests and encumbrances (hereafter in these General Conditions referred to as "Liens").

Approval of Payments:

14.4 ENGINEER will, within ten days after receipt of each Application for Payment, either indicate in writing 41 his approval of payment and present the Application to OWNER, or return the Application to CONTRACTOR indicating in writing his reasons for refusing to approve payment. In the latter case, CONTRACTOR may make the necessary corrections and resubmit the Application. OWNER shall, within twenty days of presentation to him of an approved Application for Payment, pay CONTRACTOR the amount approved by ENGINEER. Payment to contractor shall be made within thirty (30) days following receipt of a demand for any progress payment due thereunder as to which there is no good faith dispute between the parties (CA State Civil Code § 3260.1).

14.5 ENGINEER's approval of any payment requested in an Application for Payment will constitute a representation by him to OWNER, based on ENGINEER's on-site observations of the Work in progress as an experienced and qualified design professional and on his review of the Application for Payment and the accompanying data and schedules that the Work has progressed to the point indicated; that, to the best of his knowledge, information and belief, the quality of the Work is in accordance with the Contract Documents (subject to the evaluation of the Work as a functioning Project upon Substantial Completion, to the results of any subsequent tests called for in the Contract Documents and any qualifications stated in his approval); and that CONTRACTOR is entitled to payment of the amount approved. However, by approving any such payment ENGINEER will not thereby be deemed to have represented that he made exhaustive or continuous on-site inspections to check the quality or the quantity of the Work, or that he has reviewed the means, methods, techniques, sequences, or procedures of construction, or that he has made any examination to ascertain how or for what purpose CONTRACTOR has used the moneys paid or to be paid to him on account of the Contract Price, or that title to any Work, materials or equipment has passed to OWNER free and clear of any Liens.

14.6 ENGINEER's approval of final payment will constitute an additional representation by him to OWNER that the conditions precedent to CONTRACTOR's being entitled to final payment as set forth in paragraph 14.13 have been fulfilled.

14.7 ENGINEER may refuse to approve the whole or any part of any payment if, in his opinion, it would be incorrect to make such representations to OWNER. He may also refuse to approve any such payment, or, because of subsequently discovered evidence or the results of subsequent inspections or tests, nullify any such payment previously approved, to such extent as may be necessary in his opinion to protect OWNER from loss because:

14.7.1 the Work is defective, or completed Work has been damaged requiring correction or replacement,

14.7.2 claims or Liens have been filed or there is reasonable cause to believe such may be filed,

14.7.3 the Contract Price has been reduced because of Modifications,

14.7.4 OWNER has been required to correct defective Work or complete the Work in accordance with paragraph 13.11, or

14.7.5 of unsatisfactory prosecution of the Work, including failure to furnish acceptable submittals or to clean up.

Substantial Completion:

14.8 Prior to final payment, CONTRACTOR may, in writing to OWNER and ENGINEER, certify that the entire Project is substantially complete and request that ENGINEER issue a certificate of Substantial Completion.

Within a reasonable time thereafter, OWNER, CONTRACTOR and ENGINEER shall make an inspection of the 42 Project to determine the status of completion. If ENGINEER does not consider the Project substantially complete, he will notify CONTRACTOR in writing giving his reasons therefore. If ENGINEER considers the Project substantially complete, he will prepare and deliver to OWNER a tentative certificate of Substantial Completion which shall fix the date of Substantial Completion and the responsibilities between OWNER and CONTRACTOR for maintenance, heat and utilities. There shall be attached to the certificate a tentative list of items to be completed or corrected before final payment, and the certificate shall fix the time within which such items shall be completed or corrected, said time to be within the Contract Time. OWNER shall have seven days after receipt of the tentative certificate during which he may make written objection to ENGINEER as to any provisions of the certificate or attached list. If, after considering such objections, ENGINEER concludes that the Project is not substantially complete, he will within fourteen days after submission of the tentative certificate to OWNER notify CONTRACTOR in writing, stating his reasons therefore. If, after consideration of OWNER's objections, ENGINEER considers the Project substantially complete, he will within said fourteen days execute and deliver to OWNER and CONTRACTOR a definitive certificate of Substantial Completion (with a revised tentative list of items to be completed or corrected) reflecting such changes from the tentative certificate as he believes justified after consideration of any objections from OWNER.

14.9 OWNER shall have the right to exclude CONTRACTOR from the Project after the date of Substantial Completion, but OWNER shall allow CONTRACTOR reasonable access to complete or correct items on the tentative list.

Partial Utilization:

14.10 Prior to final payment, OWNER may request CONTRACTOR in writing to permit him to use a specified part of the Project which he believes he may use without significant interference with construction of the other parts of the Project. If CONTRACTOR agrees, he will certify to OWNER and ENGINEER that said part of the Project is substantially complete and request ENGINEER to issue a certificate of Substantial Completion for that part of the Project. Within a reasonable thereafter OWNER, CONTRACTOR and ENGINEER shall make an inspection of that part of the Project to determine its status of completion. If ENGINEER does not consider that it is substantially complete, he will notify OWNER and CONTRACTOR in writing giving his reasons therefore. If ENGINEER considers that part of the Project to be substantially complete, he will execute and deliver to OWNER and CONTRACTOR a certificate to that effect, fixing the date of Substantial Completion as to that part of the Project, attaching thereto a tentative list of items to be completed or corrected before final payment and fixing the responsibility between OWNER and CONTRACTOR for maintenance, heat and utilities as to that part of the Project.

OWNER shall have the right to exclude CONTRACTOR from any part of the Project which ENGINEER has so certified to be substantially complete, but OWNER shall allow CONTRACTOR reasonable access to complete or correct items on the tentative list.

Final Inspection:

14.11 Upon written notice from CONTRACTOR that the Project is complete, ENGINEER will make a final inspection with OWNER and CONTRACTOR and will notify CONTRACTOR in writing of all particulars in which this inspection reveals that the Work is incomplete or defective. CONTRACTOR shall immediately take such measures as are necessary to remedy such deficiencies.

Final Application for Payment:

14.12 After CONTRACTOR has completed all such corrections to the satisfaction of ENGINEER and delivered 43 all maintenance and operating instructions, schedules, guarantees, Bonds, certificates of inspection and other documents--all as required by the Contract Documents, he may make application for final payment following the procedure for progress payments. The final Application for Payment shall be accompanied by such data and schedules as ENGINEER may reasonably require, together with complete and legally effective releases or waivers (satisfactory to OWNER) of all Liens arising out of the Contract Documents and the labor and services performed and the material and equipment furnished thereunder. In lieu thereof and as approved by OWNER, CONTRACTOR may furnish receipts or releases in full; an affidavit of CONTRACTOR that the releases and receipts include all labor, services, materials and equipment for which a Lien could be filed, and that all payrolls, material and equipment bills, and other indebtedness connected with the Work for which OWNER or his property might in any way be responsible, have been paid or otherwise satisfied; and consent of the Surety, if any, to final payment. If any Subcontractor, materialman, fabricator or supplier fails to furnish a release or receipt in full, CONTRACTOR may furnish a Bond or other collateral satisfactory to OWNER to indemnify him against any Lien.

Approval of Final Payment:

14.13 If, on the basis of his observation and review of the Work during construction, his final inspection and his review of the final Application for Payment--all as required by the Contract Documents, ENGINEER is satisfied that the Work has been completed and CONTRACTOR has fulfilled all his obligations under the Contract Documents, he will, within ten days after receipt of the final Application for Payment, indicate in writing his approval of payment and present the Application to OWNER for payment. Thereupon ENGINEER will give written notice to OWNER and CONTRACTOR that the Work is acceptable subject to the provisions of paragraph 14.16. Otherwise, he will return the Application to CONTRACTOR, indicating in writing his reasons for refusing to approval final payment, in which case CONTRACTOR shall make the necessary corrections and resubmit the Application. OWNER shall, within ten days of presentation to him of an approved final Application for Payment, pay CONTRACTOR the amount approved by ENGINEER.

14.14 If after Substantial Completion of the Work final completion thereof is materially delayed through no fault of CONTRACTOR, and ENGINEER so confirms, OWNER shall, upon certification by ENGINEER, and without terminating the Agreement, make payment of the balance due for that portion of the Work fully completed and accepted. If the remaining balance for Work not fully completed or corrected is less than the retainage stipulated in the Agreement, and if Bonds have been furnished as required in paragraph 5.1, the written consent of the Surety to the payment of the balance due for that portion of the Work fully completed and accepted shall be submitted by the CONTRACTOR to the ENGINEER prior to certification of such payment. Such payment shall be made under the terms and conditions governing final payment, except that it shall not constitute a waiver of claims.

Contractor's Continuing Obligation:

14.15 CONTRACTOR's obligation to perform the Work and complete the Project in accordance with the Contract Documents shall be absolute. Neither approval or any progress or final payment by ENGINEER, nor the issuance of a certificate of Substantial Completion, nor any payment by OWNER to CONTRACTOR under the Contract Documents, nor any use or occupancy of the Project or any part thereof by OWNER, nor any act of acceptance by OWNER nor any failure to do so, nor any correction of defective work by OWNER shall constitute an acceptance of Work not in accordance with the Contract Documents.

Waiver of Claim:

14.16 The making and acceptance of final payment shall constitute:
44 14.16.1 a waiver of all claims by OWNER against CONTRACTOR other than those arising from unsettled Liens, from defective work appearing after final inspection pursuant to paragraph 14.11 or from failure to comply with the requirements of the Contract Documents or the terms of any special guarantees specified therein, and

14.16.2 a waiver of all claims by CONTRACTOR against OWNER other than those previously made in writing and still unsettled.

ARTICLE 15 - SUSPENSION OF WORK AND TERMINATION
OWNER May Suspend Work:

15.1 OWNER may, at any time and without cause, suspend the Work or any portion thereof for a period of not more than ninety days by notice in writing to CONTRACTOR and ENGINEER which shall fix the date on which Work shall be resumed. CONTRACTOR shall resume the Work on the date so fixed. CONTRACTOR will be allowed an increase in the Contract Price or an extension of the Contract Time, or both, directly attributable to any suspension if he makes a claim therefore as provided in Articles 11 and 12.

OWNER May Terminate:

15.2 If CONTRACTOR is adjusted a bankrupt or insolvent, or if he makes a general assignment for the benefit of his creditors, or if a trustee or receiver is appointed for CONTRACTOR or for any of his property, or if he files a petition to take advantage of any debtor's act, or to reorganize under the bankruptcy or similar laws, or if he repeatedly fails to supply sufficient skilled workmen or suitable materials or equipment, or if he repeatedly fails to make prompt payments to Subcontractors or for labor, materials or equipment or if he disregards laws, ordinances, rules, regulations or orders of any public body having jurisdiction, or if he disregards the authority of ENGINEER, or if he otherwise violates any provision of the Contract Documents, then OWNER may, without prejudice to any other right or remedy and after giving CONTRACTOR and his Surety seven days' written notice, terminate the services of CONTRACTOR and take possession of the Project and of all materials, equipment, tools, construction equipment and machinery thereon owned by CONTRACTOR, and finish the Work by whatever method he may deem expedient. In such case CONTRACTOR shall not be entitled to receive any further payment until the Work is finished. If the unpaid balance of the Contract Price exceeds the direct and indirect costs of completing the Project, including compensation for additional professional services, such excess shall be paid to CONTRACTOR. If such costs exceed such unpaid balance, CONTRACTOR shall pay the difference to OWNER. Such costs incurred by OWNER shall be determined by ENGINEER and incorporated in a Change Order.

15.3 Where CONTRACTOR's services have been so terminated by OWNER, said terminations shall not affect any rights of OWNER against CONTRACTOR then existing or which may thereafter accrue. Any retention or payment of moneys by OWNER due CONTRACTOR will not release CONTRACTOR from liability.

15.4 Upon seven days' written notice to CONTRACTOR and ENGINEER, OWNER may, without cause and without prejudice to any right or remedy, elect to abandon the Project and terminate the Agreement. In such case, CONTRACTOR shall be paid for all Work executed and any expense sustained plus a reasonable profit.

Contractor May Stop Work or Terminate:
45 15.5 If, through no act or fault of CONTRACTOR, the Work is suspended for a period of more than ninety days by OWNER or under an order of court or other public authority, or ENGINEER fails to act on any Application for Payment within thirty days after it is submitted, or OWNER fails to pay CONTRACTOR any sum approved by ENGINEER or awarded by arbitrators within thirty days of its approval and presentation, then CONTRACTOR may, upon seven days' written notice to OWNER and ENGINEER, terminate the Agreement and recover from OWNER payment for all Work executed and any expense sustained plus a reasonable profit. In addition and in lieu of terminating the Agreement, if ENGINEER has failed to act on an Application for Payment or OWNER has failed to make any payment as aforesaid, CONTRACTOR may upon seven days' notice to OWNER and ENGINEER stop the Work until he has been paid all amounts then due.

ARTICLE 16 - ARBITRATION

16.1 All claims, disputes and other matters in question arising out of, or relating to, this Agreement or the breach thereof except for claims which have been waived by the making or acceptance of final payment as provided by paragraph 14.16, shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association then obtaining. This Agreement so to arbitrate shall be specifically enforceable under the prevailing arbitration law. The award rendered by the arbitrators shall be final, and judgment may be entered upon it in any court having jurisdiction thereof.

16.2 Notice of the demand for arbitration shall be filed in writing with the other party to the Agreement and with the American Arbitration Association, and a copy shall be filed with ENGINEER. The demand for arbitration shall be made within the thirty-day period specified in paragraph 9.10 where applicable, and in all other cases within a reasonable time after the claim, dispute or other matter in question has arisen, and in no event shall it be made after institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations.

16.3 CONTRACTOR will carry on the Work and maintain the progress schedule during any arbitration proceedings, unless otherwise agreed by him and OWNER in writing.

ARTICLE 17 - MISCELLANEOUS
Giving Notice:

17.1 Whenever any provision of the Contract Documents requires the giving of written notice it shall be deemed to have been validly given if delivered in person to the individual or to a member of the firm or to an officer of the corporation for whom it is intended, or if delivered at or sent by registered or certified mail, postage prepaid, to the last business address known to him who gives the notice.

Computation of Time:

17.2 When any period of time is referred to in the Contract Documents by days, it shall be computed to exclude the first and include the last day of such period. If the last day of such period falls on a Saturday or Sunday or on a day made a legal holiday by the law of the applicable jurisdiction, such day shall be omitted from the computation.

General:
46 17.3 All moneys not paid when due hereunder shall bear interest at the maximum rate allowed by law at the place of the Project.

17.4 All Specifications, Drawings and copies thereof furnished by ENGINEER shall remain his property. They shall not be used on another Project, and, with the exception of those sets which have been signed in connection with the execution of the Agreement, shall be returned to him on request upon completion of the Project.

17.5 The duties and obligations imposed by these General Conditions and the rights and remedies available hereunder, and, in particular but without limitation, the warranties, guarantees and obligations imposed upon CONTRACTOR by paragraphs 6.30, 13.1, 13.10 and 14.3 and the rights and remedies available to OWNER and ENGINEER thereunder, shall be in addition to, and shall not be construed in any way as a limitation of, any rights and remedies available to them which are otherwise imposed or available by law, by special guarantees or by other provisions of the Contract Documents.

17.6 Should OWNER or CONTRACTOR suffer injury or damage to his person or property because of any error, omission or act of the other or of any of his employees or agents or others for whose acts he is legally liable, claim shall be made in writing to the other party within a reasonable time of the first observance of such injury or damage.

17.7 The Contract Documents shall be governed by the law of the place of the Project.

47 Excerpts from CA Labor Code
1771.1. (a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded. 1774. The contractor to whom the contract is awarded, and any subcontractor under him, shall pay not less than the specified prevailing rates of wages to all workmen employed in the execution of the contract. 1775.
(a) (1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the director for the work or craft in which the worker is employed for any public work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor. (2) (A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following:
(i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor.
(ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations. (B) (i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the contractor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1. (C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding wage claim under Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 against that contractor or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under 48 subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements:
(1) The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815.
(2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. (4) Prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813.
(c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages. (Amended by Stats. 2011, Ch. 677, Sec. 1. Effective January 1, 2012.) 1776.
(a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any work performed by his or her employees on the public works project. (b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis:
(1) A certified copy of an employee’s payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records at the principal office of the contractor. (c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division. The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner 49 specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual’s name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual’s full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labormanagement committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual’s social security number.
(f) (1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual’s name, address, and social security number. (2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.
(i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section.
(Amended by Stats. 2014, Ch. 28, Sec. 71. Effective June 20, 2014.) 1777.5
(a) This chapter does not prevent the employment of properly registered apprentices upon public works. (b) (1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for 50 apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered.
(2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or undergo testing, training, an examination, or other preemployment process as a condition of employment, the apprentice shall be paid for the time spent on the required preemployment activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or she fails to pass that test.
(c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employment and training of each apprentice shall be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training. (2) The rules and regulations of the California Apprenticeship Council. (d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs, upon approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered by an apprenticeship program’s standards shall not be required to submit any additional application in order to include additional public works contracts under that program. “Apprenticeable craft or trade,” as used in this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council. As used in this section, “contractor” includes any subcontractor under a contractor who performs any public works not excluded by subdivision (o). (e) Before commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.

The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body, if requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
51 (h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a subcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program’s standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1-to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade. (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which the apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.
(l) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1-to-5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards.
(m) (1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract.
(2) At the conclusion of the 2002–03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Industrial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The funds shall be distributed as follows:
(A) If there is an approved multiemployer apprenticeship program serving the same craft or trade and 52 geographic area for which the training contributions were made to the council, a grant to that program shall be made.
(B) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (C) All training contributions not distributed under subparagraphs (A) and (B) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship standards and requirements under this code.
(3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under the terms and conditions prescribed by the director.
(Amended by Stats. 2016, Ch. 746, Sec. 1. Effective January 1, 2017.) 1813. The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit twenty-five dollars ($25) for each worker employed in the execution of the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article. In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take cognizance of all violations of this article committed in the course of the execution of the contract, and shall report them to the Division of Labor Standards Enforcement. 1815. Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1 1/2 times the basic rate of pay.

53 General Notes:

A. The CONTRACTOR shall examine the working drawings: architectural, structural, mechanical and electrical, and shall notify the architect and/or engineers of any discrepancies he may find before proceeding with the work.

B. The CONTRACTOR shall verify and be responsible for all dimensions and conditions at the site and shall notify the designer of discrepancies between the actual conditions and information shown on the drawings before proceeding with the work.

C. All work shall conform to the minimum standards for the latest edition of the Uniform Building Code, Caltrans Standard General Specifications and such other regulating agencies exercising authority over any portion of the work.

D. Specifications (if included) are integral to the drawings. Notify designer before proceeding with any work if any disparity arises between drawings and specifications.

E. All work shall conform to the best practice prevailing in the various trades comprising the work.

F. Specific notes and details shall take precedence over General Notes and Typical Details. Dimensions shall supersede scale.

G. Details shown describe the general intent and character of the project. Any specific areas not drawn shall be similar to those details that are related in location, intent, or function.

H. All subcontractors shall be held responsible for all conditions, ordinances, code and requirements pertinent to their category of work as dictated by regulatory agencies.

I. All subcontractors shall be held responsible for any damage to another's work caused by subcontractor, its employees or agents.

J. General CONTRACTOR to maintain site in a clean and neat manner. Remove and legally dispose of all debris, rubbish, etc. Remove all materials from those not intended for their application, such as paint spatters, masking materials, asphalt, etc.

K. The Contractor shall contact the City of Nevada City, City Engineer to schedule a pre-construction meeting at least ten (10) working days prior to the start of construction (telephone 530-265-2496).

L. Contractor shall assume sole and complete responsibility for construction of this project, including safety of all persons and property. This requirement shall apply continuously and not be limited to normal working hours. The contractor shall defend, indemnify and hold the owner and the design engineer harmless from any and all liability, real or alleged in connection with the performance of the work on this project, excepting for liability arising from the intentional negligence of the owner or engineer.

M. The contractor is hereby notified that prior to commencing construction he is responsible for contacting all utility companies for verification at the construction site of the locations of all underground facilities 54 where such facilities may conflict with placement of improvements shown on this plan. Call ‘Underground Service Alert’ at 800-642-2444 prior to any excavation.

N. The locations of all underground facilities shown on this plan are approximate. A reasonable effort has been made to locate and delineate all underground facilities. However, the design engineer assumes no liability for the accuracy of completeness of the existing facilities shown on hereon or for the existence of other underground utilities not shown on these plans. The contractor shall verify the location of all existing facilities interfering with the construction of improvements. If so directed by the design engineer, the contractor shall stop work immediately until remedial action can be taken. Any cost resulting from the contractor’s failure to report and or failure to stop work as directed will be the responsibility of the contractor.

O. The contractor shall request construction staking for any phase of work no less than two working days prior to commencement of construction.

P. The contractor is responsible for the protection of all existing monuments and other survey markers during construction. Monuments disturbed, or lost, due to construction activities will require that the contractor have them replaced, in kind, by a licensed California Land Surveyor-who will be required to file either a Corner Record, or Record of Survey, with the County-whichever will meet the requirements of L.S. Act Section 8773
Q. The Contractor shall provide one complete set of As-Built Drawings. Any changes to the plans shall be shown on a clean set of drawings marked in red and given to the City Engineer at job completion. 55 Project Specifications

PROJECT LIMITS
Refer to improvement plans for limits of work.

PROJECT DESCRIPTION
The project consists of wall repair at Sacramento Street.

CONSTRUCTION NOTES
Bid items shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals for mobilization, traffic control, potholing, saw cutting, demolition, clearing, removal and disposal of demolition debris or excess materials, earthwork, compaction, and all other incidental work as noted or shown on the plans.     Clean dirt only may be disposed of on old City airport property and all other materials should be disposed of at the contractor’s cost.

Restoration of disturbed areas with similar materials as exists prior to construction (i.e. concrete or asphalt or woodchips or gravel) and repair of any damaged materials shall be provided by the contractor at their expense.   Final Payment shall not be made until all cleanup and restoration work is complete.

Contractor shall provide written notice to Public Works Supt or City Engineer no fewer than two days in advance of any disruption of service including water, sewer, sidewalk or road access.    The City will provide all notifications to the public.   The contractor shall coordinate and verify with City staff to ensure that property owners, business owners and residents have been provided sufficient notice of the disruption of service.   The Contractor shall not disrupt service without written approval from City staff.

Any complaints or special requests from City residents, business owners or visitors shall immediately be directed to City staff so that City staff can respond appropriately and in a timely manner.   The Contractor shall not make concessions or agreements or attempt to resolve conflicts with residents, property owners or business owners but shall refer all such items to the City Engineer or Public Works Superintendent.

All time limits stated in the Contract Documents are of the essence of the Agreement.  It is acknowledged that the Contractor’s failure to achieve substantial completion of the Work within the Contract Time provided by the Contract Documents will cause the City to incur substantial economic damages and losses of types and in amounts which are impossible to compute and ascertain with certainty as a basis for recovery by the City of actual damages, and that liquidated damages represent a fair, reasonable and appropriate estimate thereof. Accordingly, in lieu of actual damages for such delay, the Contractor agrees that liquidated damages may be assessed and recovered by the City as against Contractor and its Surety, in the event of delayed completion and without the City being required to present any evidence of the amount or character of actual damages sustained by reason thereof; therefore Contractor shall be liable to the Owner for payment of liquidated damages in the amount of One Thousand Dollars ($1,000) for each day that Substantial Completion is delayed beyond the Contract Time as adjusted for time extensions provided by the Contract Documents. Such liquidated damages are intended to represent estimated actual damages and are not intended as a penalty, and Contractor shall pay them to Owner without limiting Owner’s right to terminate this agreement for default as provided elsewhere herein.

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 10
Subject: Consideration of Adoption of Resolution No. 2023- 50: Resolution of the City Council of the City of Nevada City, California Authorizing State of California Cannabis Equity Act Grant Funding.

From: Sean Grayson, City Manager
Date: October 29, 2023
Reviewed & Approved:

City Manager:

City Attorney:

Recommended Action: Adopt the resolution.

ISSUE STATEMENT AND DISCUSSION:

With adoption of this resolution staff will submit an application for the California Governor’s Office of Business and Economic Development (Go-Biz) Cannabis Equity Grant program for Type 2 grant funding to support existing and future equity program participants in Nevada City. The City’s adoption of the Nevada City Cannabis Equity Assessment and Local Cannabis Equity Program are prerequisites to the grant application for type 2 funding. Adoption of the attached resolution isrequired to designate the City Manager to submit and execute the grant if awarded.

FINANCIAL AND/OR POLICY IMPLICATIONS:

Any grant proceeds would be allocated to the proposed project upon receipt. Any match for the grant will be under the City Manager’s purchasing authority using existing fiscal year budgeted funds.

STRATEGIC PLAN ALIGNMENT:

This action is consistent with the strategic initiative of Business: Business, Industry, and Cannabis Support.

Specifically, the action addresses business initiative goal #8, “Actively pursue grants including Economic Development partnership opportunities and the Cannabis Equity Grant Program.” ENVIRONMENTAL CONSIDERATIONS:

None
ATTACHMENTS:

Resolution No. 2023-50
RESOLUTION 2023-50

RESOLUTION OF CITY COUNCIL OF THE CITY OF NEVADA CITY, CALIFORNIA,

AUTHORIZING STATE OF CALIFORNIA CANNABIS EQUITY ACT GRANT FUNDING The City Council of the City of Nevada City finds:

WHEREAS, the members of the California Legislature have recognized the need for cannabis equity grant funding;
WHEREAS, funding has been provided to the Governor’s Office of Business and Economic Development to provide grant funds to local governments; WHEREAS, the City Council of the City of Nevada City: has adopted or operates a local equity program for commercial cannabis activity.

WHEREAS, the City Council of the City of Nevada City has determined that it will use grant funds from the Governor’s Office of Business and Economic Development to assist local equity applicants and licensees through its local equity program for commercial cannabis activity as described in its application for grant funds. .

NOW, THEREFORE, BE IT RESOLVED that the City Manager of the City of Nevada City is authorized to execute by electronic signature on behalf of the City Council of the City of Nevada City the grant agreement with the Governor’s Office of Business and Economic Development, including any extensions or amendments thereof and any subsequent grant agreement with the Governor’s Office of Business and Economic Development in relation thereto.

IT IS AGREED that any liability arising out of the performance of this grant agreement, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The Governor’s Office of Business and Economic Development and the State of California disclaim responsibility for any such liability.

I hereby certify that the foregoing is a true copy of the resolution adopted by the City Council of the City of Nevada City in a meeting thereof held on November 8, 2023, by the following:

Vote:

Ayes:

Nays:

Absent:

Signature: ____________________________________ Date: ___________ Typed Name and Title: Daniela Fernández, Mayor
ATTEST
Signature: ____________________________________ Date: ___________ Typed Name and Title: Niel Locke, City Clerk

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 11
Subject: Conduct a Public Hearing in Consideration of
Adoption of Resolution No. 2023-51: A Resolution of the City Council of the City of Nevada City, California Adopting a Regional Transportation Mitigation Fee (RTMF)
Administrative Plan, Authorizing the Execution of an RTMF Agreement and Authorizing the Collection of RTMF Fee
From: Bryan McAlister, City Engineer
Date: September 14, 2023
Reviewed & Approved:

City Manager: STG

City Attorney:

Recommended Action: Adopt the resolution.

ISSUE STATEMENT AND DISCUSSION:

Nevada City and the Nevada County Transportation Commission (NCTC) are each empowered by law to conduct, participate in, and provide regional transportation planning activities and desire to cooperate in the exercise of those powers. The purpose of the Regional Transportation Mitigation Fee Program is to finance improvements to the regional network of streets and roads that are needed to mitigate the impact of increased traffic that will result from new development in western Nevada County.

Per California Government Code Sections 66000 et seq., also known as the Mitigation Fee Act, comprehensive updates are required periodically to fee programs to ensure that the assumptions regarding the need for the projects, costs, growth, etc. continue to provide a nexus between the development impacts and the fees charged. The RTMF programs was last updated in 2016. Nevada County Transportation Commission (NCTC) has completed a comprehensive review to calculate the costs and impacts attributable to new development on the regional transportation system, as documented in the GHD report titled “Regional Transportation Mitigation Fee 2023 Nexus Study Update, Final Report”, dated July 12, 2023.

Nevada County Transportation Commission (NCTC) has recommended adoption by the local jurisdictions of the updated Regional Transportation Mitigation Fee (RTMF) program at their July 19, 2023 meeting.

The Regional Transportation Mitigation Fee Administrative Plan, adopted by NCTC on July 19, 2023, serves as the guideline for implementation and administration of the RTMF Program. Staff is recommending the Council adopt the Regional Transportation Mitigation Fee (RTMF) Administrative Plan including authorization of the collection of RTMF Fee and authorize the execution of a RTMF Agreement between NCTC and Nevada City.

NCTC staff and their consultants GHD will provide a presentation to the City Council and be available for any questions during the public hearing.

FINANCIAL AND/OR POLICY IMPLICATIONS:

Not applicable. This is a pass-through fee which is identified in the attached RTMF Administrative Plan.

STRATEGIC PLAN ALIGNMENT:

This action is consistent with the embedded strategic initiative of Engagement: Community engagement and communications with stakeholders.

ENVIRONMENTAL CONSIDERATIONS:

Not a project.

LEGAL REVIEW:

City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.

ATTACHMENTS:
 Resolution 2023-51, Adopting a Regional Transportation Mitigation Fee (RTMF) Administrative Plan, Authorizing the execution of a RTMF Agreement and Authorizing the collection of RTMF Fee a Resolution Approving the Regional Transportation Mitigation Fee (RTMF) Program Inflation Adjustment
 Regional Transportation Mitigation Fee Administrative Plan  Regional Transportation Mitigation Fee 2023 Nexus Study Update, Final Report RESOLUTION NO. 2023-51

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEVADA CITY,

CALIFORNIA ADOPTING A REGIONAL TRANSPORTATION MITIGATION FEE (RTMF) ADMINISTRATIVE PLAN, AUTHORIZING THE EXECUTION OF AN RTMF

AGREEMENT AND AUTHORIZING THE COLLECTION OF RTMF FEE
WHEREAS, the Nevada County Transportation Commission (NCTC) has completed a comprehensive review to calculate the costs and impacts attributable to new development on the regional transportation system, as documented in the GHD report titled “Regional Transportation Mitigation Fee 2023 Nexus Study Update, Final Report”, dated July 12, 2023; and WHEREAS, on November 8, 2023, the City held a noticed public hearing to consider updates to the RTMF program and proposed impact fees; and WHEREAS, the Nevada County Transportation Commission (NCTC) has completed an administrative manual that contains the guidelines on how the Regional Traffic Mitigation Fee Program will be implemented and administered by the City and NCTC, as documented in the Economic & Planning Systems, Inc. report titled “Regional Traffic Mitigation Fee Program Administrative Plan”, dated July 13, 2023; and
WHEREAS, the Nevada County Transportation Commission (NCTC) adopted the Administrative Plan at their July 19, 2023, meeting;
NOW THEREFORE, BE IT RESOLVED, the City Council of the City of Nevada City hereby approves:

1. That the July 13, 2023, report prepared by Economic & Planning Systems, Inc. and titled “Regional Traffic Mitigation Fee Program Administrative Plan”, is hereby adopted.

2. That the Council hereby acknowledges its approval of the Regional Transportation Mitigation Fee Agreement between the Nevada County Transportation Commission and the City of Nevada City and authorizes the Mayor to sign.

3. That the Council authorizes the collection of the Regional Transportation Mitigation Fee and administration of the RTMF in accordance with the Regional Transportation Mitigation Fee Administrative Plan.

PASSED AND ADOPTED at the regularly scheduled meeting of the Nevada City, City Council held on the 8th day of November 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____
Daniela Fernández, Mayor
ATTEST:

Niel Locke, City Clerk

A REGIONAL TRANSPORTATION MITIGATION FEE AGREEMENT BETWEEN THE

NEVADA COUNTY TRANSPORTATION COMMISSION AND CITY OF NEVADA CITY This Agreement is made between the City of Nevada City, a political subdivision of the State of California, (hereinafter "Nevada City") and the Nevada County Transportation Commission, a regional transportation planning agency in the State of California (hereinafter "NCTC"). The City of Nevada City and the NCTC may be referred to herein individually as "Party" or collectively as the "Parties." This Agreement is made in consideration of the following facts:

A. WHEREAS, City of Nevada City and the NCTC are each empowered by law to conduct, participate in and provide regional transportation planning activities and desire to cooperate in the exercise of those powers; and
B. WHEREAS, City of Nevada City adopted and enacted Resolution No. 2023-51, which established a Regional Transportation Mitigation Fee (RTMF) and authorized City of Nevada City to impose and collect said fee; and
C. WHEREAS, the RTMF will provide funds for the construction of transportation improvements throughout Western Nevada County, as that term is defined in Resolution No. 2023-51; and D. WHEREAS, City of Nevada City desires the NCTC to administer the RTMF in accordance with Resolution No. 2023-51 and the Administrative Plan referenced herein.

NOW THEREFORE, in consideration of the foregoing and the mutual agreements and covenants contained herein, the Parties do hereby agree as follows:

1. Definitions. Unless the context otherwise requires, the terms defined in this section and initially capitalized in the text, shall for all purposes of the Agreement have the meanings herein specified. a. Administrative Plan - "Administrative Plan" is defined as the Administrative Plan for the Western Nevada County RTMF Program, adopted by NCTC on July 19, 2023 (and as amended from time to time by NCTC), which serves as the guideline for implementation of the RTMF Program. b. Agreement - "Agreement" shall mean this agreement as the same now exists and as it may from time to time be amended by supplemental agreements entered into, pursuant to the provisions hereof.
c. City of Nevada City / NCTC - "Nevada City" and "NCTC" are defined in the preamble. d. Resolution - "Resolution" shall mean City of Nevada City Resolution No. 2023-51. e. Party/Parties - "Party" and "Parties" are defined in the preamble. f. Regional Transportation Mitigation Fee or RTMF - "Regional Transportation Mitigation Fee" or "RTMF" shall mean the Regional Transportation Mitigation Fee component of the total road development fee established by Resolution No. 2023-51 and subsequent modifications to that component, as imposed and collected by City of Nevada City.

2. Purpose; Supersedes Prior Agreements. This Agreement is made pursuant to the law and its purpose is to provide for the exercise of powers by the Parties to provide regional transportation planning and to provide for NCTC' s administration of the RTMF in accordance with the Administrative Plan attached hereto as Attachment "A", as it may be amended from time to time by NCTC. In the event of any conflict between the provisions of the Administrative Plan and this Agreement, the Administrative Plan shall control. This Agreement supersedes any and all prior agreements between the Parties concerning the RTMF.

3. Term and Termination.
a. The term of this Agreement commences on the date it is executed by the Parties, and it shall continue until and unless terminated, rescinded, canceled or modified by agreement of the Parties. b. Either party may terminate this Agreement for any reason by giving thirty (30) calendar days written notice to the other, which notice shall be sent by registered mail to the address set forth in Section 15.
c. Impose and collect all the RTMF due under Resolution No. 2023-51. d. Deliver to the NCTC all the RTMF collected quarterly. e. Cooperate with the NCTC to meet their obligations under this Agreement. f. Other responsibilities as set forth in the Administrative Plan.

4. Responsibilities of NCTC. NCTC shall have the following responsibilities:
a. Accept, deposit and hold all of the RTMF delivered to it pursuant to this Agreement. NCTC may invest all of the RTMF held by it pursuant to this Agreement in accordance with NCTC's investment policy/guidelines.
b. Account for all of the RTMF delivered to it by keeping and maintaining separate books and accounts pursuant to this Agreement, without co-mingling any RTMF received, collected or held pursuant to this Agreement with any other funds or accounts of NCTC. c. Report all receipts and disbursements of the RTMF to the Commission. d. Administer the RTMF and disburse the RTMF in accordance with the Administrative Plan. e. Designate and appoint its Executive Director to serve as the person who has charge of, handles and has access to all money and property delivered to NCTC pursuant to this Agreement, from whatever source.
f. Contract for an independent financial audit of its books and accounts each year. g. Cooperate with Nevada City to permit them to meet their obligations under this Agreement.

5. Programming and Disbursement of Funds. The programming and funding of projects within the RTMF program will be established through a five-year Transportation Mitigation Capital Improvement Program. The structure and guidelines for this program are set forth in the Administrative Plan.

6. Inspection of Records. All books, documents, records, accounts and files relating to the RTMF collected by Nevada City and to the management and administration of the property and RTMF by the NCTC pursuant to this Agreement shall be open to inspection at all reasonable times by Nevada City and its designated representatives.

7. Fiscal Year. The fiscal year for the reporting and accounting for all moneys and the RTMF managed and administered by NCTC pursuant to this Agreement shall be the same as the fiscal year for NCTC.

8. Disposition of Property. On the termination of this Agreement, any property acquired as the result of the exercise of powers will be distributed to Nevada City in proportion to the contributions made by Nevada City.

9. Return of Surplus Moneys. Upon completion of the purpose of this Agreement and termination of this Agreement, any surplus money on hand shall be returned to Nevada City as set forth in the Administrative Plan.

10. Indemnification. Nevada City shall indemnify NCTC, its officers, agents and employees against all claims and hold them harmless from any and all liability attributed to Nevada City’s active or passive negligence whether on account of injury to person or persons or death or damage to property resulting from or in any way arising out of Nevada City’s operation or conduct under this Agreement, and shall reimburse NCTC, its officers, agents and employees for all costs of any such claims, demands, or causes of action which may be brought or asserted against NCTC, its officers, agents, or employees, including all costs of defense, attorney's fees, court costs and any adverse judgments.

NCTC shall indemnify Nevada City, its officers, agents and employees against all claims and hold them harmless from any and all liability attributed to NCTC's active or passive negligence whether on account of injury to person or persons or death or damage to property resulting from or in any way arising out of NCTC's operation or conduct under this Agreement, and shall reimburse Nevada City’s, its officers, agents and employees for all costs of any such claims, demands, or causes of action which may be brought or asserted against Nevada City’s, its officers, agents, or employees, including all costs of defense, attorney's fees, court costs and any adverse judgements.

11. Agreements. This Agreement constitutes the entire agreement between the Parties regarding the subject matter hereof. Any oral representations or modifications concerning this Agreement shall be of no force or effect unless contained in subsequent written modification signed by the Parties. This Agreement may be amended at any time by mutual agreement of the Parties, but any amendment must be in writing and signed by the Parties.

12. Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

13. Captions. The captions or paragraphs and subparagraphs of this Agreement are for reference only and not to be construed in any way as part of the agreement.

14. Assignment. No Party to this Agreement shall assign, sell, transfer or delegate any of its rights or duties under this Agreement without the prior written consent of the other Party.

15. Notices. Any notice, demand or other communication required or permitted under the provisions of this Agreement shall be effective when in writing and either personally delivered or addressed and placed in the mail as follows:

1. City of Nevada City
317 Broad Street
Nevada City, CA 95959

2. Nevada County Transportation Commission
101 Providence Mine Road, Suite 102
Nevada City, CA 95959

16. Attorneys' Fees. In the event, that either Party hereto shall institute any legal proceeding or arbitration pursuant to the provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorneys' fees and costs to be determined by the court or arbitrator, as the case may be.

17. Controlling Law. California law shall be considered the law applicable to and controlling interpretation of this Agreement.

18. Interpretation. No provision of this Agreement shall be interpreted for or against any Party because that Party or that Party's legal representative drafted the provision.

IN WITNESS HEREOF, this Agreement has been executed by the parties hereto the day and year shown below.

NCTC:
____________________________________ __________________________________ Ed Scofield, Chair Dale Sayles,
Nevada County Transportation Commission Administrative Services Officer _______________________________ ______________________________ Date Date
Approved as to Form:
__________________________________
Osman I. Mufti
Sloan Sakai Yeung & Wong LLP
General Council
CITY OF NEVADA CITY:
_____________________________ _________________
Daniela Fernández Date
Mayor, City of Nevada City
Approved as to Form:
__________________________________
Dean Pucci
City Attorney
Regional Transportation
Mitigation Fee 2023 Nexus
Study Update
Final Report
Nevada County Transportation Commission
12 July 2023
The Power of Commitment
The Power of Commitment
GHD 380
2200 21st Street,
Sacramento, California 95818, United States
T 916-782-8688 | ghd.com
Printed date 7/12/2023 6:24:00 PM
Last saved date July 12, 2023
File name https://ghdnetmy.sharepoint.com/personal/rosanna_southern_ghd_com/Documents/Desktop/11230706- RPT001-FinalRTMF.docx
Author Rosanna Southern, EIT
Don Hubbard, TE, AICP
Todd Tregenza, AICP
Project manager Todd Tregenza, AICP
Client name Nevada County Transportation Commission
Project name WESTERN NEVADA CO RTMF
Document title Regional Transportation Mitigation Fee 2023 Nexus Study Update | Final Report Revision version Rev 8
Project number 11230706
© GHD 2023
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update i Executive summary
The Mitigation Fee Act requires that mitigation fees be periodically updated. This is to ensure that the assumptions regarding future growth, the need for projects, their costs, etc. continue to provide a reasonable nexus between the impacts of new development and the fees charged. This report describes the methodology used in updating the nexus, the resulting recommended fee structure, and the revised forecast for Regional Transportation Mitigation Fee (RTMF) program revenues based on the new growth assumptions and recommended fees.

Since the previous RTMF nexus study was prepared in 2016, the effects of the global COVID-19 pandemic caused an economic slump which not only effected most industries but also affected travel patterns nationwide due to stay-athome orders, school closures, and a prolonged increase in employees being able to work from home. New forecasts for future development incorporate a slight increase in the existing base of households and employment, and a change in anticipated growth allocation, with lower future growth rates. These factors have resulted in lower reduced forecasts for future traffic congestion and a reduced need for roadway operational improvements. However, it also means that the cost of projects will be spread over fewer new units. Additionally, trip generation rates have been updated to reflect the most recent data presented in the Institute of Transportation Engineer’s Trip Generation Manual, which results in some differences in the percentage change in the proposed fees.

Assembly Bill (AB) 602, signed into law January 1, 2022, imposed new requirements for fees on residential development (effective July 1, 2022). The law requires that the fee reflect a reasonable relationship to the size of the dwelling unit. This is explained further is Section 3.6.

Table ES.1.1 and Table ES.1.2 present the recommended revised fee structure for residential and non-residential developments, respectively, which take into account the factors described above.

Table ES.1.1 Current and Recommended RTMF Fees – Residential Land Uses Typical Use Unit Current Fee per Unit Proposed Fee per Unit % Change in Fee Single Family
Small (<1,500 sq.ft.) Dwelling Unit $4,621 $4,030 -13%
Medium (1,500-2,500 sq.ft.) Dwelling Unit $4,621 $4,868 5% Large (<2,500 sq.ft.) Dwelling Unit $4,621 $5,396 17%
Multi-Family
Small (<1,500 sq.ft.) Dwelling Unit $3,199 $1,128 -65%
Medium (1,500-2,500 sq.ft.) Dwelling Unit $3,199 $1,363 -57% Large (<2,500 sq.ft.) Dwelling Unit $3,199 $1,511 -53%
Mobile Home
Small (<1,500 sq.ft.) Dwelling Unit $2,422 $2,775 15%
Medium (1,500-2,500 sq.ft.) Dwelling Unit $2,422 $3,352 38% Large (<2,500 sq.ft.) Dwelling Unit $2,422 $3,716 53%
Senior Housing
Small (<1,500 sq.ft.) Dwelling Unit $1,728 $780 -55%
Medium (1,500-2,500 sq.ft.) Dwelling Unit $1,728 $942 -45% Large (<2,500 sq.ft.) Dwelling Unit $1,728 $1,045 -40%
Accessory Dwelling Unit (ADU) - Calculated based on ratio of size to primary unit. See below for more information.

GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update ii Table ES.1.2 Current and Recommended RTMF Fees – Non-Residential Land Uses Typical Use Unit Current Fee Proposed Fee %
Change
Office Thousand Sq. ft. $1,033 $755 -27%
Industrial Thousand Sq. ft. $457 $281 -38%
Warehouse Thousand Sq. ft. $305 $211 -31%
Retail/Service - Low Thousand Sq. ft. $2,047 $1,280 -37% Retail/Service - Medium Thousand Sq. ft. $4,373 $2,990 -32% Retail/Service - High Thousand Sq. ft. $7,754 $5,443 -30% Lodging Room $553 $249 -55%
Public & Quasi-Public Thousand Sq. ft. Exempt Exempt N/A School K-8th Grade Student Exempt Exempt N/A
School 9-12th Grade Student Exempt Exempt N/A
Public College Student Exempt Exempt N/A
Senate Bill (SB) 13, passed in 2019, establishes a new system for assessing fees on accessory dwelling units (ADUs).

The law states that ADUs less than 750 square feet are exempt from impact fees, and that ADUs larger than 750 square feet are charged the impact fee based on the ratio of its floor area in relation to the primary unit, multiplied by the fee that the primary unit would pay, if it was being built today (i.e., ADU sq.ft. / primary unit sq.ft. x RTMF for primary unit). This is explained further in Section 3.6.1.

The recommendation includes a slight increase in the residential fees (comparing single-family medium-sized unit as that is equal to one dwelling unit equivalent), and a larger decrease in non-residential fees. This is largely due to the removal of expensive projects to widen several sections of SR 49, which greatly lowered the costs that new development will be expected to bear. Although those projects are justifiable on technical grounds, the fee program would provide only a relatively small portion of the funds needed to complete the project, and there is no guarantee of obtaining State or Federal competitive grant funds to cover the remaining costs. Since State law precludes NCTC from collecting funds for projects that do not have a reasonable expectation of being implemented, these projects were removed from the RTMF project list.

The other factor in the recommended fee reduction was a reduction in the percentage of project costs attributable to new development. This applied especially to non-residential development. Analysis using NCTC’s traffic model showed that, given the county’s current jobs/housing imbalance, development of places for Nevada County residents to work and shop locally will reduce the need for some long trips out of the county. As a result, this type of localized development will have fewer traffic impacts than was previously forecast, which also leads to a lower impact fee.

The recommended fee schedule will continue to have residential fees in the lower range of foothill counties while nonresidential fees will be lower than peer counties. If the forecasts for future residential and non-residential development prove correct, then total revenues from the RTMF over the next twenty years will be approximately $17.6M, which will provide approximately 28% of the total cost of the projects on the updated Capital Improvements Program (CIP). The remaining 72% of project costs are attributable to existing deficiencies and by law must be covered by some source other than impact fees. The other sources of project funding are identified in Section 3.10 of this report.

GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update iii Contents

1. Introduction 1

1.1 Background 1

1.2 Program Experience to Date 2

2. Updates to Key Inputs 5

2.1 Trip Generation Rates 5

2.2 Growth Forecasts 7

2.3 Funding from Other Sources 10

2.4 Updated Project Costs 11

3. Updates to the Fee Calculation 13

3.1 Computation Methodology 13

3.2 Existing & Future Deficiencies 15

3.3 Portion of Project Need Attributable to New Development 17

3.4 Determination of Amount Collectible through the RTMF 19

3.5 Residential & Non-Residential Shares of Traffic Impacts 21

3.6 Consideration of Residential Floor Area 22

3.6.1 Accessory Dwelling Units (ADUs) 24

3.7 Determination of Total Trips and Fee per Trip 24

3.8 Recommended Fee by Land Use Category 26

3.9 Revenues Raised by the RTMF Program 29

3.10 Results in Terms of Project Funding 30

4. Mitigation Fee Act Findings 32

4.1 Purpose of the Fee 32

4.2 Use of Fee Revenues 32

4.3 Use/Type of Development Relationship 32

4.4 Need/Type of Development Relationship 33

4.5 Proportionality Relationship 33
Table index
Table ES.1.1 Current and Recommended RTMF Fees – Residential Land Uses i Table ES.1.2 Current and Recommended RTMF Fees – Non-Residential Land Uses ii Table 1.1 RTMF Revenues, 2000 – 2021 2
Table 1.2 Projects that have Received RTMF Funds (2011-2022) 4 Table 2.1 Trip-Generation Rates by Land Use 5
Table 2.2 Land Use Growth Forecast 10
Table 2.3 Funding Available from Other Sources 11
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update iv Table 3.1 Existing & Future LOS at Proposed Project Locations 16 Table 3.2 Percent of Project Need Attributable to New Development (Project LOS) 18 Table 3.3 Amount Potentially Collectable Through RTMF between 2023 to 2040 (Project Costs) 20
Table 3.4 Percentage of VMT Growth Attributable to Residential & Non-Residential Development 21
Table 3.5 Computation of Average Trip Generation by Dwelling Size Category 23 Table 3.6 Computation of Dwelling DUEs by Size and Dwelling Type 24 Table 3.7 Total Trips by Land Use - Residential and Non-Residential Trips 24 Table 3.8 Fee per Trip and DUE 26
Table 3.9 Revised Fee Levels – Residential Uses 27
Table 3.10 Revised Fee Levels – Non-Residential Uses 28 Table 3.11 Forecast of RTMF Revenues 30
Table 3.12 Proposed Allocation of RTMF Revenues to Projects 31 Figure index
Figure 1.1 RTMF Revenues by Year & Jurisdiction 3
Figure 2.1 Housing Starts in California by Year 7
Figure 2.2 US Employment by Year 8
Figure 2.3 Foothill Counties Population by Year 9
Figure 2.4 Nevada County Population by Year - Actual & Forecasted 9 Figure 2.5 Caltrans' Construction Price Index, 1990-2022 12 Figure 3.1 Fee Computation Methodology Flowchart 14
Figure 3.2 Percent Attributable Cases 17
Figure 3.3 Average Trip Length by Trip Purpose 21
Figure 3.4 Residential Impact Fee Comparison - Foothills Counties 28 Figure 3.5 Non-Residential Impact Fee Comparison - Foothills Counties 28 Appendices
Existing Traffic Volumes
Forecasted Traffic Volumes
Level of Service Worksheets
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 1

1. Introduction
The western Nevada County Regional Transportation Mitigation Free (RTMF) program was established in 2001 through a partnership of Nevada County, Nevada City, Grass Valley, and the Nevada County Transportation Commission (NCTC). The program provides a mechanism for new development to pay its fair share towards the cost of construction of the regional system of roads, streets, and highways needed to accommodate growth in western Nevada County.

1.1 Background
The RTMF program operates pursuant to the Mitigation Fee Act, also known as California Assembly Bill 1600 (AB 1600) or California Government Code Sections 66000 et seq., which governs impact fees in California. The Mitigation Fee Act requires that all local agencies in California, including cities, counties, and special districts follow some basic principles when instituting impact fees as a condition of new development. Agencies must:

1. Identify the purpose of the fee. (Government Code Section 66001(a)(1))

2. Identify the use to which the fee is to be put. (Government Code Section 66001(a)(2))

3. Determine that there is a reasonable relationship between the fee’s use and the type of development on which the fee is to be imposed. (Government Code Section 66001(a)(3))

4. Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is to be imposed. (Government Code Section 66001(a)(4))

5. Discuss how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is to be imposed. (Government Code Section 66001(b))
These principles closely emulate two landmark U.S. Supreme Court rulings that each provide guidance on the application of impact fees. The first case, Nollan v. California Coastal Commission (1987) 107 S.Ct. 3141, established that local governments are not prohibited from imposing impact fees or dedications as conditions of project approval provided the local government establishes the existence of a "nexus" or link between the exaction and the state interest being advanced by that exaction. The Nollan ruling clarifies that once the adverse impacts of development have been quantified, the local government must then document the relationship between the project and the need for the conditions that mitigate those impacts. The ruling further clarifies that an exaction may be imposed on a development even if the development project itself will not benefit, provided the exaction is necessitated by the project's impacts on identifiable public resources.

The second case, Dolan v. City of Tigard (1994) 114 S.Ct. 2309, held that in addition to the Nollan standard of an essential nexus, there must be a "rough proportionality" between proposed exactions and the project impacts that the exactions are intended to allay. As part of the Dolan ruling, the U.S. Supreme Court advised that “a term such as 'rough proportionality' best encapsulates what we hold to be the requirements of the Fifth Amendment. No precise mathematical calculation is required, but the city (or other local government) must make some sort of individualized determination that the required dedication is related both in nature and extent to the impact of the proposed development."
The combined effect of both rulings is the requirement that public exactions must be carefully documented and supported. This requirement is reiterated by the provisions of the Mitigation Fee Act and subsequent rulings in the California Supreme Court (Ehrlich v. City of Culver City (1996) 12 C4th 854) and the California Court of Appeals (Loyola Marymount University v. Los Angeles Unified School District 45 (1996) Cal.App.4th 1256).

This Nexus Study report is intended to satisfy the requirements of the State of California Mitigation Fee Act.

Specifically, this Nexus Study report will outline the purpose and use of the RTMF, the relationship between new development and impacts on the transportation system, the estimated cost to complete necessary improvements to GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 2 the regional street system within western Nevada County, and the ‘rough proportionality’ or ‘fair share’ fee for differing development types.

In 2021, AB-602 was signed into law, which amended the Mitigation Fee Act to include new requirements regarding the contents (§66016.5(a)(4)) and timing (§66016.5(a)(8)) of nexus studies adopted after July 2022, and how fees for residential development are to be computed (§66016.5(a)(5)). Chapters 2 and 3 of this report fulfill the new requirement to describe changes in input assumptions that led to the changes in fees. Section 3.6 fulfills the new requirements regarding how fees for residential development is to be computed.

1.2 Program Experience to Date
From its inception in fiscal year 2000/2001 until the end of the second quarter of fiscal year 2022/23 a total of $8.4M was collected in RTMF fees. Of this, 67% came from developments in unincorporated Nevada County, 31% from developments in Grass Valley, and 2% from developments in Nevada City (see Table 1.1 and Figure 1.1).

Table 1.1 RTMF Revenues, 2000 – 2021
Fiscal Year Nevada County City of Grass Valley City of Nevada City Total FY 2000/01 $0 $1,897 $0 $1,897
FY 2001/02 $75,183 $64,383 $0 $139,565
FY 2002/03 $108,576 $120,764 $8,664 $238,004
FY 2003/04 $94,530 $156,887 $22,468 $273,885
FY 2004/05 $72,575 $131,114 $28,028 $231,717
FY 2005/06 $138,480 $234,399 $7,987 $380,866
FY 2006/07 $63,253 $112,896 $1,890 $178,039
FY 2007/08 $44,445 $156,834 $6,308 $207,587
FY 2008/09 $111,937 $238,031 $2,499 $352,466
FY 2009/10 $176,458 $84,370 $0 $260,828
FY 2010/11 $222,750 $8,459 $3,928 $235,138
FY 2011/12 $170,155 $15,178 $0 $185,333
FY 2012/13 $168,255 $48,771 $4,201 $221,228
FY 2013/14 $474,393 $284,987 $7,482 $766,863
FY 2014/15 $355,081 $165,255 $23,842 $544,178
FY 2015/16 $445,599 $24,798 $- $470,397
FY 2016/17 $437,147 $13,622 $- $450,770
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 3 Fiscal Year Nevada County City of Grass Valley City of Nevada City Total FY 2017/18 $369,707 $182,227 $2,563 $554,497
FY 2018/19 $384,019 $150,821 $11,378 $546,218
FY 2019/20 $621,779 $68,476 $21,961 $712,217
FY 2020/21 $494,265 $253,690 $26,094 $774,049
FY 2021/22 $420,561 $56,527 $26,862 $503,950
FY 22/23 Q1, Q2 $355,081 $165,255 $23,842 $544,178
Total $5,623,024 $2,574,387 $206,154 $8,403,565
Percentage Split 67% 31% 2% 100%
Figure 1.1 RTMF Revenues by Year & Jurisdiction
Since the previous nexus study (in 2016), revenues have averaged $569,000 per year, which is a significant increase from the period prior to the 2014 study, when the average was approximately $337,000 per year. Despite the higher revenue collection, this was only 34% of the amount anticipated in the previous nexus study ($1.7M/year). This was due to the suppressive effect of the Great Recession on real estate development and the 2009 housing market crash.

On the other hand, NCTC had great success in securing other funds for projects on the Capital Improvement Program (CIP) including a $19M grant for the Dorsey Drive Interchange which more than made up for the less-than-expected RTMF revenues.

The RTMF has used the revenues it has collected to fund a variety of improvement projects. These are listed in Table

1.2 below. Table 1.2 shows that the RTMF program is important not just for the funding it provides but also because the RTMF dollars are used as local matching funds to leverage funding from other sources. $0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Nevada County City of Grass Valley City of Nevada City
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 4 Table 1.2 Projects that have Received RTMF Funds (2011-2022) Project RTMF
Funding
Funding from Other
Sources
Total Funding
East Main/Idaho-Maryland Roundabout $1,823,000 $777,000 $2,600,000 Dorsey Drive Interchange $214,020 $19,333,980 $19,548,000 Brunswick/Loma Rica $488,790 $536,865 $1,025,655
E Main/Bennett St $1,500,000 $0 $1,500,000
NCTC Admin Annual Administration Charges $37,158 $0 $37,158 RTMF Update Charges $221,244 $0 $221,244
Total Paid $4,284,212 $20,647,845 $24,932,057
17% 83% 100%
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 5

2. Updates to Key Inputs

2.1 Trip Generation Rates
ITE’s Trip Generation Manual has been updated with new survey material since the edition that was used in the previous nexus study. The trip generation rates have accordingly been updated to those of the latest (11th) edition.

Table 2.1 shows a detailed correspondence list between general land use categories , the ITE land use codes, and the derivation of the trip generation rate used for broad categories from the individual rates of the sub-categories.

Table 2.1 Trip-Generation Rates by Land Use
Land Use Category Unit ITE Code Weekday Trips
per Unit

RESIDENTIAL
Single Family Detached House Dwelling Unit 210 9.43
Multi-Family
Apartment Dwelling Unit 220 6.74
Low Rise Apartment Dwelling Unit 221 4.54
Residential Condominium/Townhouse Dwelling Unit 230 3.44 Median for Multi-Family 4.54
Mobile Home in Park Dwelling Unit 240 7.12
Senior Residential
Senior Adult Housing - Detached Dwelling Unit 251 4.31
Senior Adult Housing - Attached Dwelling Unit 252 3.24
Median for Senior Residential 3.78

NON-RESIDENTIAL
Office
General Office KSF 710 10.84
Single Tenant Office KSF 715 13.07
Office Park KSF 750 11.07
Business Park KSF 770 12.44
Clinic KSF 630 37.60
Medical-Dentist Office KSF 720 36.00
Median for Office 12.76
Industrial
General Light Industry KSF 110 4.87
General Heavy Industry KSF 120 1.50
Industrial Park KSF 130 3.37
Manufacturing KSF 140 4.75
Median for Industrial 4.06
Warehousing KSF 150 3.56
Retail/Service - Low
Building Materials and Lumber KSF 812 17.05
Hardware/Paint Store KSF 816 8.07
Furniture Store KSF 890 6.30
Discount Home Furnishing Superstore KSF 869 20.00
Tire Superstore KSF 849 20.37
Department Store KSF 875 22.88
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 6 Land Use Category Unit ITE Code Weekday Trips
per Unit
Tire Store KSF 848 27.69
Factory Outlet Center KSF 823 26.59
Home Improvement Superstore KSF 862 30.74
New Car Sales KSF 841 27.06
Median for Retail - Low 21.63
Retail/Service - Medium
Discount Club KSF 857 42.46
Shopping Center KSF 820 37.01
Electronics Superstore KSF 863 41.05
Discount Superstore KSF 813 50.52
Arts and Crafts Store KSF 879 56.55
Discount Store KSF 815 53.87
Auto Parts Store KSF 843 54.57
Specialty Retail Center KSF 814 63.66
Median for Retail - Medium 50.52
Retail/Service - High
Nursery (Garden Center) KSF 817 68.10
Supermarket KSF 850 93.84
Apparel Store KSF 876 66.40
Pharmacy/Drugstore w/o Drive Through Window KSF 880 90.08 Pharmacy/Drugstore with Drive Through Window KSF 881 108.40 Drive-in Bank KSF 912 100.35
Quality Restaurant KSF 931 83.84
High Turnover (Sit-Down) Restaurant KSF 932 107.20
Median for Retail - High 91.96
Lodging
Hotel Room 310 7.99
All Suites Hotel Room 311 4.40
Business Hotel Room 312 4.02
Motel Room 320 3.35
Median for Lodging 4.21
Public & Quasi-Public
Military Base KSF 501 0.39
Library KSF 590 72.05
Government Office Building KSF 730 22.59
State Motor Vehicles Department KSF 731 11.21
United States Post Office KSF 732 103.94
Government Office Complex KSF 733 27.92
Median for Public Sector 25.26
School K-8th Grade Student 520 & 522 2.25
School 9th-12 Grade Student 522 & 530 1.98
Junior/Community College Student 540 1.15
Other Non-Residential
All Port and Terminal Uses 000-099 The trip
generation for any
project in these
categories shall be
computed using
the ITE daily tripgeneration rate for
their land use type
or, at the
All Recreational Uses 300-399
All Private Institutional Uses (Public Institutions are Exempt) 500-599
Convenience Market 851
Convenience Market with Gasoline Pumps 853
Fast Food Restaurant with Drive Through 934
Coffee/Donut Shop with Drive Through 937
Coffee/Donut Shop Drive Through No Seating 938
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 7 Land Use Category Unit ITE Code Weekday Trips
per Unit
Gasoline/Service Station 944 discretion of
agency staff,
through a
separate traffic
study
Gasoline/Service Station with Convenience Market 945
Gasoline/Service Station with Convenience Market and Car Wash 946
Self-Service Car Wash 947
Based on ITE Trip Generation Manual, 11th Ed.

KSF = 1,000 square feet

2.2 Growth Forecasts
Assumptions regarding future growth are critical inputs for a traffic mitigation fee since they help determine both whether roadway deficiencies will develop and how many new homes or square feet of new commercial development will contribute towards the costs of mitigations. Since the RTMF is a long-term program, we must look at long-term trends to arrive forecast growth over the study horizon. Figure 2.1 shows the number of housing starts for California for the period 1954 to 2020.

Figure 2.1 Housing Starts in California by Year2
Figure 2.1 shows the unstable nature of the housing market in California, with five major “housing booms” and five “housing busts” occurring during this period. Several patterns are discernible, namely:
– The housing booms are occurring further and further apart. Five years elapsed between the peaks of the 1972 and 1977 booms, 9 years between the peaks of the 1977 and 1986 booms, and 18 years between the 1986 and 2004 booms. If this pattern continues it may be decades before the next peak occurs. – The size of the booms is trending downwards. The 2004 boom was the smallest of the five, being only about 2/3rds the size of the previous boom.
– From the 1960’s through the 1980’s single-family and multi-family housing was being built in similar quantities in California. Multi-family housing production exceeded single-family housing in 3 of the 4 housing booms in this period. The period from 1990 to 2005, when single-family housing was produced at more than 2½ times the pace of multi-family, appears in retrospect to have been an aberration from the historical pattern. Since 2005, multifamily housing has returned to being about half of all new housing being built. 2 Source: California Building Industry Association
0 50,000
100,000
150,000
200,000
250,000
300,000
350,000
19541957196019631966196919721975197819811984198719901993199619992002200520082011201420172020 Single-Family
Multi-Family
Total
5 yrs 9 yrs 18 yrs
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 8 – The housing market crash in 2008 also affected housing production significantly, where housing production was the lowest it’s been since before the 1950’s. As shown, the market is on a gradual recovery from that.

The Great Recession was deeper and much longer than any previous recession since WWII (see Figure 2.2) and the collapse of the real estate market was at the heart of the recession. This was, hopefully, a one-off event unlikely to recur within the time horizon of the current study (to 2045). More recently the real estate market has been affected by inflation and construction costs due to supply limitations from COVID. Employment losses with the statewide shutdown were significantly deeper than even the Great Recession. However, employment has bounced back relatively swiftly almost to post-2001 recession levels. There have been long-term travel and housing changes resulting from COVID-19 due to employers implementing flexible schedules and more people working from home. Housing prices were affected, short-term, and there was an increased demand for senior housing due to people going into early retirement from the shut-down and layoffs.

Nevertheless, it seems unlikely that things will “go to back to normal” (i.e., to the conditions prevailing in the 1990-to2005 period) in terms of real estate development; structural and demographic changes have occurred resulting in a new normal. Any assumptions regarding real estate development that were made based on pre-recession or preCOVID data therefore need to be re-examined to determine if they remain valid.

Figure 2.2 US Employment by Year3
Scaling down from the state-wide level to the local level, data from the U.S. Census Bureau shows that in recent years the foothills counties have been growing slowly, if at all, apart from Placer County (see Figure 2.3). 3 Source: Federal Reserve Bank of Minneapolis
-16
-14
-12
-10
-8
-6
-4
-2
0 2
1 6 11 16 21 26 31 36 41 46 51 56 61
Percent Change in Non-Farm Employment
Months from Start of Recession
% Change in Non-Farm Employment in Post-WWII Recessions 1948 1953
1957 1960
1969 1973
1980 1981
1990 2001
2007 2020
COVID-19
Recession
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 9 Figure 2.3 Foothill Counties Population by Year
Population forecasts by Caltrans4 suggests that only modest growth can be expected for the foreseeable future (see Figure 2.4). The DOF’s most recent forecast is for slower growth than had been anticipated in the 2015 forecasts used for the NCTC Regional Transportation Plan (RTP).

Figure 2.4 Nevada County Population by Year - Actual & Forecasted The growth forecasts used in the previous nexus study, which began in 2012, were based on data collected in the construction boom leading up to the Great Recession. The forecasts used in the current study are based on an 4 California Department of Finance. Demographic Research Unit. Report P-2A: Total Population Projections, California Counties, 2010-2060 (Baseline 2019 Population Projections; Vintage 2020 Release). Sacramento, California. July 2021. 80%
90%
100%
110%
120%
130%
140%
150%
160%
170%
2000 2005 2010 2015 2020
% of Year 2000 Population
County Population
as a Percentage of 2000 Population
Amador County Calaveras County El Dorado County
Lassen County Mariposa County Nevada County
Placer County Plumas County Tuolumne County
0 20,000
40,000
60,000
80,000
100,000
120,000
1970197519801985199019952000200520102015202020252030203520402045205020552060 Nevada County Population
Actual (US Census)
Current DOF Forecast
Prior Forecasts from 2015 RTP
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 10 assumed lower growth rate and therefore the 2040 population in the current forecast is lower than the prior 2035 forecast used in the previous study.

The lower forecast for future population has several effects on the RTMF, most notably:
– Fewer new households mean less traffic impacts and therefore less need for roadway improvements as mitigation. Some projects may no longer be needed, and a smaller portion of the need will be attributable to new development.
– However, for those projects that are stilled needed, fewer new dwelling units means that each will have to pay a higher share of the cost.

These trends work in opposite directions; the first would tend to lower fees while the second would tend to raise them.

The interaction of these opposing trends is discussed further in a later section of this report.

Based on the growth projections supplied by the local jurisdictions and using the land use categories described in, the growth forecast by land use type is shown in Table 2.2.

Table 2.2 Land Use Growth Forecast
Land Use Category Entire RTMF Area % Growth
Description Unit Year 2018 Year 2040 Growth
Residential
Single-Family Dwelling DU 31,768 34,353 2,585 8%
Multi-Family Dwelling DU 2,422 4,003 1,581 65%
Mobile Home DU 1,540 1,791 251 16%
Senior Housing DU 1,101 1,561 460 42%
Total 36,831 41,708 4,877 13%
Non-Residential
Retail/Service - Low KSF 1,670 1,925 255 15%
Retail/Service - Medium KSF 1,336 1,540 204 15%
Retail/Service - High KSF 334 385 51 15%
Office KSF 1,256 1,772 516 41%
Office-Medical KSF 284 337 53 19%
Industrial KSF 1,924 4,086 2,162 112%
Lodging Rooms 573 670 97 17%

2.3 Funding from Other Sources
When computing the amount of an impact fee, the amount of funding available from other sources must be deducted from the project cost estimates to ensure that new development is not paying more than the actual cost of the project to the agency. State and federal funds for transportation improvements are channeled through the State Transportation Improvement Program (STIP), which is administered by the California Transportation Commission (CTC). For the purposes of this study there are two key features of the STIP; namely: 1) that the CTC allocates a share of statewide funding to Nevada County which NCTC then allocates among individual projects, subject to later review by the CTC, and 2) that STIP funding is difficult to predict and varies widely from year to year depending on the budget situation on the state level. Under these circumstances the best way to estimate future funding from the STIP is to look at the long-term average of funding from this source. This is done in Table 2.3. Based on the historical GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 11 average of $7.9M/year in STIP funding we estimate that $158M will be available from this source over the next 20 years.

Table 2.3 Funding Available from Other Sources
Year Project STIP Funding
2002 SR 267 Truckee Bypass $33,500,000
2012 SR 49/La Barr Meadows Road Intersection Improvements $40,500,000 2014 Dorsey Drive Interchange $17,000,000
2015 SR 89 Mousehole - Pedestrian/Bike Path $6,400,000
2015 SR 49 La Barr Project North to McKnight Widening $3,000,000 Total Over 14-Year Period $110,800,000
Annual Average of 14-Year Period $7,914,000
Amount Available Over 20 Years, Based on 14-Year Annual Average $158,280,000

2.4 Updated Project Costs
The cost of road construction has varied significantly over the course of the last decade, so it is important that this be factored into the fee structure for the RTMF.

Figure 2.5 shows Caltrans’ construction price index for highway projects for the period from 1900 to 2022. As shown, there was a slow and stable rise in prices throughout the 1990’s and early years of the 2000’s. However, in 2004 a combination of a construction boom, rising land and fuel costs, and the effect of a weakening U.S. dollar on the cost of imported construction materials, caused construction prices to rise more in a single year then they had in the previous 15 years combined; it is still the highest single-year increase since Caltrans started the index. This was followed in 2005 by the third-highest single-year increase. The rapid increase was followed by a rapid decrease with the collapse of the housing market, which used many of the same construction inputs as Caltrans.

The Caltrans cost index is based on actual bid prices for projects done in the previous year. There is a second cost index, prepared by the Engineering News Record (ENR) that is computed based on the market prices for various major inputs to road projects (concrete, steel, aggregate, etc.). This index is less volatile than the Caltrans index because it does not include the effect of contractors’ changing profit expectations in response to strong or weak market conditions. The two indices are compared in Figure 2.5. The Caltrans index over the past seven years (since 2015) has experienced an overall 16% increase, and a 39% increase between 2015 and 2020, while the ENR index for California cities has experienced a 34% increase, and the ENR overall index have only experienced a 29% increase. The impacts of the COVID-19 pandemic increased and then subsequently lowered the index.

GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 12 Figure 2.5 Caltrans' Construction Price Index, 1990-2022 NCTC policy specifies that the ENR index for California Cities is to be used as the basis for cost adjustments for the RTMF. This decision was based in part on the relative stability of the ENR index, which makes the fee program more predictable for developers compared to the highly volatile Caltrans index. Therefore, since the ENR (CA) index has risen 34% since the last nexus study, for projects where no recent cost estimates are available, the project cost estimates were increased 34% from the estimates used in the previous nexus study.

GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 13

3. Updates to the Fee Calculation
An overview of the methodology used to compute the RTMF is provided in the section below, followed by sections providing more in-depth discussion of the key components. These are followed by sections describing the resulting fees and the revenues that would be raised by the RTMF under the different sets of policy options.

3.1 Computation Methodology
The methodology used in the fee computation is outlined in Figure 3.1 below. The major steps include:

1. The starting point was a set of forecasts for residential and non-residential growth from NCTC, the City of Grass Valley, Nevada City, and Nevada County. The forecasts were described in Section 2.2.

2. The growth forecasts were used as inputs into the NCTC traffic model, which was then used to forecast traffic volumes for 2040. Recent traffic counts were used to find current traffic volumes. The volumes were then used to determine the level of service (LOS) for each potential project site under 2022 and 2040 conditions.

3. Each jurisdiction sets its LOS standards through resolutions, usually as part of its General Plan.

4. The existing and future LOS were compared to the LOS standard to determine where deficiencies currently exist and where they may develop in the future. Potential projects were identified that would correct the deficiencies.

5. The outputs of Step 4 were used to determine the percentage of the need for each potential project that is attributable to new development.

6. The estimated cost for different projects come from a variety of sources, including engineering studies and planning-level estimates.

7. The project cost estimates were updated, if necessary, using the Engineering New Record construction cost index to reflect current prices. This was described in Section 2.4.

8. The outputs from steps 5 and 7 were used to determine the dollar cost for each project that is attributable to new development.

9. Next, any funding that may be available from other sources for the listed projects was identified. This was discussed in Section 2.3.

10. The amount of funding available from other sources was compared to the project costs to determine if it exceeded the amount attributable to existing deficiencies (i.e., not attributable to new development). If so, the surplus of other funds was used to reduce the amount needed from new development. The result was the maximum amount of funding allowable by law that could potentially be collected using the RTMF.

11. The NCTC traffic model was used to determine the percentage share of growth in vehicle-miles traveled (VMT) that will be associated with residential and non-residential development.

12. The results of Steps 10 and 11 were then combined to determine the portion of project costs that could be attributed to new residential and non-residential development.

13. Next, the trip generation rate was determined for each land use type. For residential land uses the unit of measurement was daily trips/dwelling unit, while for non-residential uses trip-generation was measured in terms of daily trips/thousand square feet of space, except for schools, where the unit was daily trips/student and lodging, where daily trips/room were used.

14. The number of new units for each development type was then multiplied by the trip generation rate to produce the total number of new trips associated with each type of land use development.

15. The project funding attributable to residential and non-residential developments (from Step 12) was then divided by the expected number of new residential and non-residential trips (from Step 14) to produce the potential impact fee per trip for each type of unit.

16. AB 602 introduced a requirement that unit size be taken into account when assessing impact fees on new residential development. Data from the American Housing Survey and the National Cooperative Highway GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 14 Research Program (NCHRP) were used to estimate trip generation rates for different sized residential units. This is described in Section 3.7.

17. AB 602 offers agencies several options for incorporating dwelling size into a fee program. The NCTC Technical Advisory Committee selected an option that divided new dwellings into small, medium, and large size categories and applies different rates for different types of dwellings. This is described in Section 3.7.

18. The policies from Step 17 were applied to take the fees per trip from Step 15 and combine them with the trip generation rates from Step 13 (for non-residential units) and Step 16 (for residential units) to compute the fee per unit.

The next sections describe several key steps in the process in more detail.

Figure 3.1 Fee Computation Methodology Flowchart
Other Inputs
Inputs from
NCTC
Traffic
Modeling
Computation
Key
Non-Residential
Residential
Growth
Traffic Counts
Existing
Future Traffic &
LOS
Existing
Identify Future
Deficiencies
LOS Policy Previous
Project Costs
Construction
Cost Index
Project Costs Attributable to
New Development
Amount Potentially Collectable
by Fee Program
Funding from
Other Sources
Future Non-Residential
Future Residential Growth's
Share of Fee Revenues
Trip Generation
by ITE Code
Total Trips by
Growth Type
Fee/Trip for Non-Residential
Fee per Trip for Residential
Developments
Fee per Unit by Land Use
Type
% Attrbutable
to New Growth
Updated
Project Costs
8 9 10
1 2
6 7
13 14
3 5
4 12
15 18
Non-Residential
Residential Share
of VMT Growth
11 NCHRP Report 716
Trip Generation
by House Size AB-602 Policy
American
Housing Survey
16 17
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 15

3.2 Existing & Future Deficiencies
Existing and future deficiencies were identified by comparing the existing and future LOS to the LOS standards adopted by the local jurisdictions. For unincorporated Nevada County the LOS standard is D in all locations. For Grass Valley, the General Plan calls for LOS D at most locations. However, in some locations LOS E is allowed in order to maintain the walkable character of the historic downtown area5. For Nevada City, the LOS standard is at LOS D.

Table 3.1 shows the existing and future LOS at the project locations listed in the previous nexus study. Existing and forecasted traffic volumes and the LOS worksheets are included in the Appendix. Several additional sites were identified as potentially requiring improvement; these were added to the bottom of the table.

The previous nexus study (2016) identified 11 projects for the fee program. Of these:
– 2 have been completed but not yet paid for. This includes the Dorsey Drive Interchange, which was financed through bonds that will be repaid through the RTMF program, and improvements at the East Main/Bennett/Richardson intersection, which the City of Grass Valley paid for and will be seeking reimbursement from NCTC.
– 1 is now deemed unnecessary, due to the new, lower growth expectations. – 8 are recommended to be retained in the fee program.

In addition, two new locations were considered: SR-49 south of McKnight Way (PM 13.1 to PM 11.0), and SR 174/Colfax Highway at Brunswick Road. These two locations were identified as having a future deficiency and being eligible for inclusion in the RTMF program.

The proposed improvements identified for the fee program are listed below:

1. SR 49 Interchange at Dorsey Drive – new interchange (already constructed, retain for reimbursement)

2. E. Main Street at Bennett Street/Richardson Street – install a traffic signal (constructed, retain for reimbursement)

3. SR 49 Southbound – PM 13.1 to PM 11.0 – widen to 2 lanes

4. SR 49 at McKnight Way – Interchange improvement project

5. McCourtney Road at SR 20 Eastbound Ramps – intersection improvements

6. SR 20/49 Northbound Ramps at Idaho-Maryland Road – install traffic signal

7. SR 20/49 at Uren Street – intersection improvements or traffic signal

8. Brunswick Road at SR 174/Colfax highway - intersection improvements or traffic signal

9. SR 29 at Coyote Street – intersection improvements
5 See City of Grass Valley Resolution 2013-33
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 16 Table 3.1 Existing & Future LOS at Proposed Project Locations Delay
(sec/veh)
or ADT
LOS
Delay
(sec/veh)
or ADT
LOS
Delay
(sec/veh)
or ADT
LOS
Delay
(sec/veh)
or ADT
LOS
SR 20/49 SB Ramps/Dorsey Dr Signal D 10.8 B 40.4 D
SR 20/49 NB Ramps/Dorsey Dr Signal D 13.2 B 13.0 B
2 E. Main St/Bennett/Richardson Signal D
The improvements identified in the original RTMF study have already been built. Keep for reimbursement.

SR-49: South of McKnight Way to PM 13.1 4-lane
Freeway D 26,085 C 27,800 C 27,500 C 37,440 C Constructed. Split into 2 segments for 4-lane section where freeway/highway transitions. 3 SR-49: PM 13.1 to PM 11.0 2-lane
Highway D 27,500 F 37,440 F Deficient for 2-lane highway section.

SR-49: South of La Barr Meadows Rd (SB) 1 lane D 11,604 F 12,050 F 12,400 F 16,470 F SR-49: South of La Barr Meadows Rd (NB) 2 lanes D 11,604 C 12,050 C 12,400 C 17,190 E SR-49: South of Alta Sierra Dr (SB) 1 lane D 11,498 F 11,650 F 12,800 F 15,500 F SR-49: South of Alta Sierra Dr (NB) 2 lanes D 11,498 C 11,650 C 12,800 C 16,550 D 4 SR-49: South of Wolf Creek D 27,852 F 28,300 F 23,300 F 31,490 F Deficiency remains, however funding not identified and too costly to keep in program.

SR-20/49: Bennett St to Idaho-Maryland Rd D 54,400 C 39,500 D 46,840 D Reviewed at NCTC's request. No deficiency found.

McKnight Way/Taylorville Rd SSSC D 13.3 B 14.5 B 12.1 B 13.6 B McKnight Way/SR 49 NB Ramps Signal D F 14.8 B 16.8 B 21.1 C McKnight Way/SR 49 SB Ramps Signal D F 41.5 D 13.1 B 16.8 B McKnight Way/S.Auburn St/La Barr Meadows Rd SSSC D 13.3 B 14.5 B 20.4 C 106.3 F 6 5 McCourtney Rd/SR 20 EB Ramps SSSC D 155.8 F 155.4 F 43.5 E 127.3 F Deficiency remains. 7 6 SR 20/49 NB Ramps/Idaho Maryland Rd AWSC D 20.6 C 50.8 F 22.1 C 62.9 F Deficiency remains.

SR 20/49 NB Ramps/Ridge Rd/Gold Flat Rd AWSC D 19.3 C 21.5 C 17.6 C 19.9 C Reviewed again. Not deficient under prior or revised assumptions.

SR 20/49 SB Ramps/Ridge Rd/Gold Flat Rd AWSC D

39.7 E 55.2 F 26.6 D 31.7 D
Deficient in previous nexus study but not deficient under revised assumptions (lower counts and higher peak hour factor).
9 7 SR 20/SR 49/Uren St SSSC D OVR F OVR F OVR F OVR F Deficiency remains.

Brunswick Rd/E Bennett St/Greenhorn Rd AWSC D

21.3 C 41.4 E 19.0 C 27.5 D
Deficient in previous nexus study but not deficient under revised assumptions; slighlty lower forecasts. LOS D/E cusp.
8 Brunswick Rd/SR 174/Colfax Highway SSSC D17.1 C 20.4 C 33.3 D 59.5 F Deficient in 2008 study but not in 2016 forecast. Revised base and forecast models shows deficiency in future.

SR-49/Cement Hill Rd SSSC D 23.7 C 34.0 D 16.5 C 20.5 C NCTC requested to review again. No deficiency. 11 9 SR-49/Coyote St SSSC D 66.5 F 116.9 F 44.3 E 54.3 F Deficiency remains.

State Highway Projects Listed individually - REMOVED
Admin Costs and 5-year reviews Computed as a percentage of total project costs.

Traffic
Control
Project ID
(Prior
2015
Study)
Intersection Project
ID (New)
LOS
Standard
Previous Nexus
Study (Existing)
Previous Nexus
Study (2035)
Notes
Current Nexus
Study (2040)
Current Nexus
Study (Existing)
1 Has 2 lanes NB and 1 lane SB, so LOS is different for the two directions of travel. Deficiency remains,however funding not identified and too costly to keep in program. 2 Notes:

For signalized intersections average delay and LOS for all approaches are reported. "AWSC" means "all way stop-controlled." For AWSC intersections, average intersection delay and LOS are reported. "SSSC" means "side-street stop controlled." For SSSC intersections, delay and LOS for the worst performing approach are reported.

LOS results beyond the LOS standards are shown in gray cells with bold text. "OVR" means >300 seconds of delay per vehicle.

N/A

N/A N/A
4 N/A 1

N/A N/A
Deficient in both previous and current nexus study. An in-depth Intersection Control Evaluation (ICE) was performed in 2018/19, which determined that the complex turning movements in these 4 closely-spaced intersections would always result in at least one intersection failing.

The recommended solution was several roundabouts. The attribution to future development is based on the change in entering volumes.

Improvements identified in the previous study have already been built - keep for reimbursement.
5 8
Has 2 lanes NB and 1 lane SB, so LOS is different for the two directions of travel. Deficiency remains, however funding not identified and too costly to keep in program. 3 GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 17

3.3 Portion of Project Need Attributable to New
Development
The procedure for determining the percentage of the need to improve a roadway facility that is attributable to new development is illustrated in Figure 3.2.

Figure 3.2 Percent Attributable Cases
The capacity is the maximum volume that can be accommodated at the adopted LOS. Figure 3.2 shows a hypothetical roadway with a capacity of 1,000 vehicles/hour. There are three possible cases, namely:
• In Case 1, the roadway facility is operating at below its capacity under existing conditions and is forecast to continue to do so under future (2040 conditions. In such cases there is no deficiency and so no impact fees can be collected for the project6.
• In Case 2 the facility operates below its maximum capacity under existing conditions, but the capacity is insufficient to accommodate the expected future growth in traffic. In such cases the need to provide additional capacity is entirely attributable to new development.
• In Case 3 the traffic using the facility already exceeds its rated capacity and the expected growth in traffic will exacerbate the situation. In such cases the percentage attributable to new development is the portion of the volume beyond the rated capacity that comes from new development (Y/X) .

Table 3.2 shows how this methodology was applied to the projects identified in Table 3.1 as having existing and/or future deficiencies.
6 This is not to say that the project is not justified; only that the justification is unrelated to the need to provide additional capacity to accommodate future development. The seismic retrofit of a bridge would be an example of a project where the need is not based on insufficient capacity. 0 200
400
600
800
1,000
1,200
1,400
1,600
Scenario 1 Scenario 2 Future
Vehicles per Hour
Growth
Existing
Capacity = 1000
X
Y
Deficiency is Y/X
New Development's
Share of the Future
Deficiency is Y/X
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 18 Table 3.2 Percent of Project Need Attributable to New Development (Project LOS) Peak-Hour
Entering
Volume
or ADT
Capacity* V/C Ratio LOS
Peak-Hour
Entering
Volume
or ADT
Capacity* V/C Ratio LOS
(A) (B) (C)=(A)/(B) (D) (E) (F) (G)=(E)/(F) (H)
1 1 Dorsey Drive Interchange D (keep for reimbursement) 33% 2 E. Main St @Bennett/Richardson D (keep for reimbursement) 100% 3 SR-49 PM 13.1 to PM 11.0 D 27,500 16,650 1.65 F 37,440 16,650 2.25 F 48% 5,10 4 McKnight Way @ S. Auburn St/La Barr Meadows Rd D C F 100% 6 5 McCourtney Rd @ SR 20 Eastbound Ramps D 1,072 980 1.09 E 1,230 980 1.26 F 63% 7 6 SR 20/49 NB Ramps @ Idaho-Maryland Road D C F 100%
9 7 SR 20/49 @ Uren Street D 1,492 1,190 1.25 F 1,685 1,190 1.42 F 39% 8 Brunswick Road @ SR 174/Colfax Highway D D F 100%
11 9 SR 49 @ Coyote Street D 1,132 960 1.18 E 1,260 960 1.31 F 43% V/C Ratio = Volume to Capacity ratio
*** Not in previous nexus study
% of Deficiency
Attributable to
New Development
(I)=(G-D)/(D-1)
* For roadway segments, capacity is as defined in the General Plan. For intersections, capacity is defined as the maximum sum of the approach volumes that does not exceed the LOS standard ** Calculated using model runs that showed the percentage of future traffic was attributable to existing demand and how much was attributable to new demand Project ID
(from
Previous
Study)
Facility
Future (2040) Without Improvements
Location LOS
Standard
Existing
Project ID
(New)
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 19 As can be seen from Table 3.2, of the 11 sites where deficiencies were identified, there were only 2 locations where the need for the project is wholly attributable to new development (i.e., Case 2 in Figure 3.2). In the 9 other locations a deficiency already exists to some degree and new development is responsible for only a portion of the need for improvement (i.e., Case 3 in Figure 3.2).

3.4 Determination of Amount Collectible through the
RTMF
The amount potentially collectable through the RTMF program was calculated using the updated project costs, the percentage of project need attributable to new development shown in Table 3.2, and the funding available from other sources shown in Table 2.3. This calculation is shown in Table 3.3.

Column F in Table 3.3 shows funding available that is in excess of the funding needed to correct existing deficiencies (Column D). The funds shown in Column J show how future development in Nevada County has benefitted from state and federal grant funding, since if funds had not come from those other sources, then these amounts would have been collectable from new development through impact fees.

Additionally, a policy decision was made to remove several widening projects along SR 49 in this update. This is due to the high cost associated with those improvements (approximately >$200M) and the fact that funds from other sources for the portion not funded through the fee program are not realistically attainable. However, NCTC will continue to pursue funding sources for the SR 49 widening improvements and these projects may return in the next update of the nexus study. Please note that SR 49 southbound from post mile 13.1 to 11.0 continues to be in the program because funding for that section has been identified.

GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 20 Table 3.3 Amount Potentially Collectable Through RTMF between 2023 to 2040 (Project Costs) Updated
Cost
Estimate
% of Need
Attributable to
New
Development
Costs
Attributable to
New
Development
Costs Attributable
to Existing
Deficiencies (not
New Development)
Funding
from Other
Sources
(STIP,
SHOPP, etc.)
Funds from other
sources beyond what
is needed for existing
deficiencies
Amount
Potentially
Collectable from
Mitigation Fees
RTMF
Funds
Currently
Available
RTMF Funds
Collected in
Prior Years
RTMF Funds
Previously
Collected
Amount
Potentially
Collectable
from Mitigation
Fees
Funds Needed
from Other
Sources
(A) (B) (C) = (A)*(B) (D) = (A) - (B) (E) If (E)>(D), (F)=(E)-(D) Otherwise (F) = 0 (G)=(C)-(F) (H) (I) (J)=(G)-(H)-(I) (K)=(A)-(E)-(J) 1 SR-49 Interchange Dorsey Drive $24,000,000 33% $7,991,555 $16,008,445 $19,385,609 $3,377,164 $4,614,391 $1,016,041 $1,713,691 $2,729,732 $1,884,659 $0 2 E.Main St @ Bennett St/Richardson $1,500,000 100% $1,500,000 $0 $0 $0 $1,500,000 $0 $1,500,000 $1,500,000 $0 $0 3 SR-49 SB PM 13.1 to PM 11.0 (SB) $21,000,000 48% $10,040,404 $10,959,596 $18,400,000 $7,440,404 $2,600,000 $0 $0 $0 $2,600,000 $0 4 McKnight Way
Interchange
@ S. Auburn St/La Barr
Meadows Rd $9,663,269 100% $9,663,269 $0 $2,000,000 $2,000,000 $7,663,269 $0 $0 $0 $7,663,269 $0 5 McCourtney Rd @ SR 20 EB Ramps $2,083,969 63% $1,317,068 $766,901 $0 $0 $1,317,068 $0 $0 $0 $1,317,068 $766,901 6 SR 20/49 NB Ramps @ Idaho Maryland Rd $1,847,696 100% $1,847,696 $0 $0 $0 $1,847,696 $0 $0 $0 $1,847,696 $0 7 SR 20/SR 49 @ Uren St $1,457,566 39% $568,304 $889,263 $0 $0 $568,304 $0 $0 $0 $568,304 $889,263 8 Brunswick Road @ SR 174/Colfax $1,384,179 100% $1,384,179 $0 $0 $0 $1,384,179 $0 $0 $0 $1,384,179 $0 9 SR-49 @ Coyote St $468,604 43% $199,938 $268,666 $0 $0 $199,938 $0 $0 $0 $199,938 $268,666 10 100% $349,302
Total $63,405,283 $34,512,413 $28,892,870 $39,785,609 $12,817,568 $21,694,845 $1,016,041 $3,213,691 $4,229,732 $17,814,415 $1,924,829 As a percent of total costs for needed projects 54% 46% 63% 20% 34% 2% 5% 7% 28% 3% Project
ID
(New)
Facility Location
Admin Costs and 5-year reviews (2% of
program)
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 21

3.5 Residential & Non-Residential Shares of Traffic
Impacts
Vehicle-miles travelled (VMT) is the main indicator of traffic impacts. VMT takes into account the fact that traffic impacts are proportional both to the number of new trips associated with the development and the average length of those trips. Outputs from the NCTC Travel Demand Model were used to forecast the growth in VMT for the five different types of trips that are represented in the model. The growth in VMT from new development was attributed to residential and non-residential developments based on trip type. Standard practice for how to do this can be found in NCHRP Report 1877, a primary reference for travel estimation techniques used in travel demand modeling, which states that "HBW (Home Based Work) and HBNW (Home Based Non-Work) trips are generated at the households, whereas the NHB (Non-Home Based) trips are generated elsewhere." NCTC policy follows this practice by attributing all trips beginning or ending at the traveler’s home (roughly 2/3rds of all trips) to the residential land use while all trips not involving a residential location (roughly 1/3rd of all trips) are attributed to non-residential land uses. The NonHome-Based trips include things like trip chaining between locations other than the traveler’s home.

Figure 3.3 shows the average trip length by trip purpose in the NCTC traffic model. The four home-based trip purposes, shown in grey, have longer average lengths than non-home-based trips. VMT-based fees tend to shift the incidence of the fees away from non-residential development and more towards residential development, compared to trip-based fees.

Figure 3.3 Average Trip Length by Trip Purpose
The forecast growth in VMT from residential and non-residential land uses is shown Table 3.4.

Table 3.4 Percentage of VMT Growth Attributable to Residential & Non-Residential Development Trip Purpose
Growth in
VMT
% of Total
VMT Growth
Attributable to Residential Development
Home-Base Other Trips 122,759 36%
Home-Base Work Trips 169,544 49%
7 Quick Response Urban Travel Estimation Techniques and Transferable Parameters User's Guide, Transportation Research Board, 1978

0.0 2.0

4.0 6.0

8.0 10.0

12.0 Home-Based
Work
Home-Based
Sierra College
Home-Based Other Home-Based School Non
Home-Based
Miles
Trip Purpose
Average Trip Length
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 22 Trip Purpose
Growth in
VMT
% of Total
VMT Growth
Home-Based School Trips 2,068 1%
Home-Based Sierra College Trips 1,427 0%
Attributable to Non-Residential Development
Non-Home-Based Trips 47,670 14%
Total 343,467 100%
Based on this calculation, 86% of VMT growth was attributed to residential development and 14% was attributed to non-residential development.

3.6 Consideration of Residential Floor Area
Since the 2016 nexus study, the State of California has instituted a new policy8 pertaining to fees on residential developments. California Government Code (CGC) Section 66016.5(a)(5), which is new with the enactment of AB602, states that, “(A)A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A local agency that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.
(B)A nexus study is not required to comply with subparagraph (A) if the local agency makes a finding that includes all of the following:
(i) An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project.
(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development. (iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees. (C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.”
AB 602 applies to impact fee programs generally and was not specifically designed to suit transportation impact fees regarding trip generation and unit size. Web research revealed that there are currently no well-established sources for trip generation rates based on residential unit size. However, data on the number of persons per household can be obtained from the U.S. Census Bureau’s American Housing Survey, and data on the number of trips by household size is available from the National Cooperative Highway Research Program (NCHRP) Report 716, Travel Demand Forecast: Parameters and Techniques. This data was combined as shown in Table 3.5. 8 Assembly Bill 602, signed into law in September 2021.

GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 23 Table 3.5 Computation of Average Trip Generation by Dwelling Size Category Persons
per
Household
Trips
per
Household
Less than 1,500 sq.ft 1,501 to 2,500 sq.ft Greater than 2,500 sq.ft Number
of Units
Percent of
Units
Trips Number
of Units
Percent
of Units
Trips Number
of Units
Percent
of Units
Trips
(A) (B) (C)=(B)*Σ(B) (D)=(A)
*(C)
(E) (F)=(E)*
Σ(E)
(G)=(A)*(F
)
(H) (I)=(H)*Σ
(H)
(J)=(A)*(I)
1 4.1 21,895 39% 1.58 7,828 20% 0.81 2,387 12% 0.48
2 8.2 18,076 32% 2.61 14,701 37% 3.04 7,754 38% 3.11
3 11.2 7,592 13% 1.50 6,928 17% 1.96 3,098 15% 1.70
4 16.1 5,355 9% 1.52 5,928 15% 2.41 4,106 20% 3.24
5 18.6 2,368 4% 0.78 2,754 7% 1.29 1,924 9% 1.75
6 18.6 907 2% 0.30 989 2% 0.46 755 4% 0.69
7+ 18.6 525 1% 0.17 553 1% 0.26 398 2% 0.36
Total 56,718 100% 8.46 39,681 100% 10.22 20,422 100% 11.33 Average Persons
Per Household

2.17 2.66 2.97
Trip-Gen Rate as a
% of SFD Average
83% 100% 111%
Sources: Columns (A),(C) - NCHRP Report 716, Columns (B), (E), and (H) - American Housing Survey As can be seen in Table 3.5, although the trip generation rate is somewhat related to the size of the residence, it is not directly proportional to the floor area, as is assumed in Section 66016.5(a)(5)(A). We therefore find, pursuant to Section 66016.5(a)(5)(B)(i), that it would not be appropriate to use square footage directly as the metric of traffic impacts for the purposes of this fee program. We instead find, pursuant to Section 66016.5(a)(5)(B)(ii), that the data supports basing the fees on new small, medium, and large-sized homes on the relationships shown in the bottom row of Table 3.5. We further find, pursuant to Section 66016.5(a)(5)(B)(iii), that these relationships would ensure that smaller units would not be charged disproportionate fees compared to larger units.

CGC Section 66016.5(a)(5)(C) allows agencies to establish different fees for different types of developments. In alignment with AB 602, NCTC believes that fees on multi-family and senior housing should be set lower than those of single-family dwellings, in recognition of their lower trip generation rates. Unfortunately, a calculation like that shown in Table 3.5 could not be done for these other classes of residential development because the American Housing Survey only has data on the number of persons per household for single-family dwellings (Table 3.5 uses SFD data).

DUEs for multi-family, mobile homes, and senior age-restricted housing were therefore calculated based on their respective PM peak-hour trip-generation rates found in ITE’s Trip Generation Manual. The average size for these housing types in the RTMF fee area falls within the “Small” category, so the ITE average rate for them was used to compute the “Small” value. The ratio of the values shown in the bottom row of Table 3.5 were then used to compute the DUEs for “Medium” and “Large” multi-family, mobile homes, and senior age-restricted housing. The results as shown in Table 3.6.

GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 24 Table 3.6 Computation of Dwelling DUEs by Size and Dwelling Type Dwelling Type ITE 11th Edition
Trip-Gen Rate
(Daily)
Average Unit as %
of Average SFD
Trip-Gen Rate
Dwelling Unit Equivalents (DUE)
Small
(< 1,500
sq.ft)
Medium
(1,501 to
2,500 sq.ft)
Large
(> 2,500
sq.ft)
Single-Family Dwelling 9.43 100% 0.83 1.00 1.11
Multi-Family Dwelling 4.54 48% 0.48 0.58 0.64
Senior Age-Restricted 3.78 40% 0.40 0.48 0.54
Mobile Home 7.12 76% 0.76 0.91 1.01
Since fees are based on DUEs, as can be seen in Table 3.6, the highest fees would be paid by large single-family dwellings, which would pay 111% of the base rate for SFD. The lowest fees would be paid by small senior dwellings, which would pay 40% of the base rate.

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

3.7 Determination of Total Trips and Fee per Trip
As described earlier, the next step in the process is to determine the total number of trips for residential and nonresidential development. For residential units, the total number of new dwelling units from Table 2.2 is split amongst small, medium, and large unit sizes, and then multiplied by the trip generation rate for each category (see Table 2.1) and also by the DUE for each dwelling size from Table 3.6. For non-residential units, the total trips were calculated by multiplying the trip generation rate for each land use category (see Table 2.1) by number of new units of each land use type (Table 2.2). The results are shown in Table 3.7.

Table 3.7 Total Trips by Land Use - Residential and Non-Residential Trips Land Use Unit TripGen
Rate
Estimated Split
of Residential
Units by
Dwelling Type
# of New
Units
Dwelling
Unit
Equivalent
(DUE)
Daily Trips
(A) (B) (C)=(CTotal)*(B) (D) (E)=(A)*(C)*(D)
Residential
Single-Family Dwelling Totals DU 2,585 23,844
Small (<1,500 sq.ft.) DU 9.43 29% 750 83% 5,870
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 25 Land Use Unit TripGen
Rate
Estimated Split
of Residential
Units by
Dwelling Type
# of New
Units
Dwelling
Unit
Equivalent
(DUE)
Daily Trips
(A) (B) (C)=(CTotal)*(B) (D) (E)=(A)*(C)*(D)
Medium (1,500-2,500 sq.ft.) DU 9.43 46% 1,189 100% 11,212 Large (<2,500 sq.ft.) DU 9.43 25% 646 111% 6,762
Multi-Family Dwelling Totals DU 1,581 3,445
Small (<1,500 sq.ft.) DU 4.54 100% 1581 48% 3,445
Medium (1,500-2,500 sq.ft.) DU 4.54 0% 0 58% 0
Large (<2,500 sq.ft.) DU 4.54 0% 0 64% 0
Mobile Home in Park DU 251 1,460
Small (<1,500 sq.ft.) DU 7.12 63% 158 76% 855
Medium (1,500-2,500 sq.ft.) DU 7.12 36% 90 91% 583
Large (<2,500 sq.ft.) DU 7.12 1% 3 101% 22
Senior Housing DU 460 819
Small (<1,500 sq.ft.) DU 3.78 29% 133 40% 201
Medium (1,500-2,500 sq.ft.) DU 3.78 46% 212 48% 384
Large (<2,500 sq.ft.) DU 3.78 25% 115 54% 234
Total Residential 29,568
Non-Residential
Retail - Low KSF 24.74 255 5,514
Retail - Medium KSF 47.62 204 10,306
Retail - High KSF 91.96 51 4,690
Office KSF 12.76 569 7,258
Light Industry KSF 4.75 2,162 10,270
Warehouse KSF 3.56 73 260
Lodging Rooms 4.21 97 408
Public & Quasi-Public* KSF 22.59 28 633
School K-8th Grade* Students 2.25 499 1,122
School 9-12th Grade* Students 1.98 298 590
Community College* Students 1.15 439 505
Total Non-Residential 41,555
* Public Sector
Note: Column (B), Estimated Split of Residential Units by Dwelling Type, is based on last 5 years of housing permits from Nevada County and Grass Valley.

The portion of project costs attributable to new development (see Table 3.3) was multiplied by the percent attributable to residential and non-residential development (see Table 3.4) to find the fee-eligible costs for residential and nonresidential development. This was then divided by the number of total trips shown in Table 3.7 to determine the fee per trip for residential and non-residential developments (see Table 3.8). Lastly, the fee per trip end for residential GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 26 units was multiplied by the daily trip generation rate of 9.43 to determine the fee per DUE (dwelling unit equivalent) for residential uses.

Table 3.8 Fee per Trip and DUE
Item Formula Total RTMFEligible
Project Costs
Attributable to
Residential
Development
Attributable to
Non-Residential
Development
Total Project Costs (A) $17,814,415
RTMF Fund Balance (Amount Collected)* (B) $91,702
Remaining Cost for Fee Collection (C) $17,722,712
% Attributable by Category (D) 86% 14%
Amount Attributable by Category (E)=(C)*(D) $15,262,990 $2,459,722 Trip Ends (F) 29,568 41,555
RTMF per Trip End (G)=(E)/(F) $516.20 $59.19
Fee per DUE (H)=(GRES)*9.43 $4,867.76
* RTMF Fund Balance excludes balance set aside for Dorsey Drive Note: 9.43 is the trip rate equivalent to a single family detached housing unit

3.8 Recommended Fee by Land Use Category
The final step is to compute the fee to be charged for each unit of new development. For residential uses, this is done by multiplying the DUE rates for each dwelling size shown in Table 3.6 by the fee per DUE shown in Table 3.8. For non-residential uses, the fee for each unit type is calculated by multiplying the trip generation rates from Table 2.1 by the fee per trip from Table 3.8. The residential fee results are shown in Table 3.9, and the non-residential fee results are shown in
Table 3.10. These tables also compare the new fees with the current fees. The key points from this comparison are:
• A small increase is recommended for the fees for medium and large single-family homes.

Current Fee per
Trip
Current TripGen RateCurrent Fee per
Unit
Dwelling Unit
Equivalents
(DUE)
Proposed
Cost per
DUE
Proposed
Fee per Unit
%
Change in Fee
(A) (B) (C)=(A)*(B) (D) (E) (F)=(D)*(E) (G)=(F)/(C)-1
210
Dwelling Unit $485 9.52 $4,621 0.83 $4,868 $4,030 -13%
Dwelling Unit $485 9.52 $4,621 1.00 $4,868 $4,868 5%
Dwelling Unit $485 9.52 $4,621 1.11 $4,868 $5,396 17%
251
Dwelling Unit $485 6.59 $3,199 0.48 $2,344 $1,128 -65%
Dwelling Unit $485 6.59 $3,199 0.58 $2,344 $1,363 -57%
Dwelling Unit $485 6.59 $3,199 0.64 $2,344 $1,511 -53%
220
Dwelling Unit $485 4.99 $2,422 0.76 $3,675 $2,775 15%
Dwelling Unit $485 4.99 $2,422 0.91 $3,675 $3,352 38%
Dwelling Unit $485 4.99 $2,422 1.01 $3,675 $3,716 53%
252
Dwelling Unit $485 3.56 $1,728 0.40 $1,949 $780 -55%
Dwelling Unit $485 3.56 $1,728 0.48 $1,949 $942 -45%
Dwelling Unit $485 3.56 $1,728 0.54 $1,949 $1,045 -40%
Medium (1,500-2,500 sq.ft.)
Small (<1,500 sq.ft.)
Single Family
Accessory Dwelling Unit (ADU)
< 750 sq.ft.
> 750 sq.ft.

Typical Use
Large (<2,500 sq.ft.)
Small (<1,500 sq.ft.)
Medium (1,500-2,500 sq.ft.)
Large (<2,500 sq.ft.)
Small (<1,500 sq.ft.)
Medium (1,500-2,500 sq.ft.)
Large (<2,500 sq.ft.)
Residential (Dwelling Unit)
Multi-Family
Mobile Home
Senior Housing
Small (<1,500 sq.ft.)
Medium (1,500-2,500 sq.ft.)
Large (<2,500 sq.ft.)
Fee is based on the ratio of its floor area in relation to the primary unit, multiplied by the fee that the primary unit would pay, if it was being built today. (RTMF (F) for primary unit) x (ADU sq.ft. divided by primary unit sq.ft.) Exempt
ITE Code &
Unit
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 27 • Due to the change in the fee calculation methodology to consider unit size by types for residential uses, the resulting fee is reduced for smaller-sized single-family units, and for all multi-family, mobile home, and senior housing unit types.
• A larger reduction in fees is recommended for every category of non-residential land use. The decrease is primarily a function of the change in traffic growth of non-residential uses, with less non-residential development expected, and more trips attributable to residential uses.

Policymakers are sometimes concerned about the effects that a fee program might have in terms of making their county less competitive than peer counties in attracting development. There are two aspects to this, namely:
• People and businesses moving to foothills counties expect to find little or no traffic congestion. To the extent that the RTMF provides funding for needed capacity improvements it improves the competitiveness of Nevada County.

Impact fees, like any other cost, inhibit development to some extent. However, this does not mean that they necessarily reduce competitiveness. As can be seen in Figure 3.4, the recommended RTMF fees would be in the low end among peer counties and so are unlikely to deter development. The recommended RTMF fees for non-residential development would be quite low compared to peer counties (see Figure 3.5).

Table 3.9 Revised Fee Levels – Residential Uses
Current Fee per
Trip
Current TripGen RateCurrent Fee per
Unit
Dwelling Unit
Equivalents
(DUE)
Proposed
Cost per
DUE
Proposed
Fee per Unit
%
Change in Fee
(A) (B) (C)=(A)*(B) (D) (E) (F)=(D)*(E) (G)=(F)/(C)-1
210
Dwelling Unit $485 9.52 $4,621 0.83 $4,868 $4,030 -13%
Dwelling Unit $485 9.52 $4,621 1.00 $4,868 $4,868 5%
Dwelling Unit $485 9.52 $4,621 1.11 $4,868 $5,396 17%
251
Dwelling Unit $485 6.59 $3,199 0.48 $2,344 $1,128 -65%
Dwelling Unit $485 6.59 $3,199 0.58 $2,344 $1,363 -57%
Dwelling Unit $485 6.59 $3,199 0.64 $2,344 $1,511 -53%
220
Dwelling Unit $485 4.99 $2,422 0.76 $3,675 $2,775 15%
Dwelling Unit $485 4.99 $2,422 0.91 $3,675 $3,352 38%
Dwelling Unit $485 4.99 $2,422 1.01 $3,675 $3,716 53%
252
Dwelling Unit $485 3.56 $1,728 0.40 $1,949 $780 -55%
Dwelling Unit $485 3.56 $1,728 0.48 $1,949 $942 -45%
Dwelling Unit $485 3.56 $1,728 0.54 $1,949 $1,045 -40%
Medium (1,500-2,500 sq.ft.)
Small (<1,500 sq.ft.)
Single Family
Accessory Dwelling Unit (ADU)
< 750 sq.ft.
> 750 sq.ft.

Typical Use
Large (<2,500 sq.ft.)
Small (<1,500 sq.ft.)
Medium (1,500-2,500 sq.ft.)
Large (<2,500 sq.ft.)
Small (<1,500 sq.ft.)
Medium (1,500-2,500 sq.ft.)
Large (<2,500 sq.ft.)
Residential (Dwelling Unit)
Multi-Family
Mobile Home
Senior Housing
Small (<1,500 sq.ft.)
Medium (1,500-2,500 sq.ft.)
Large (<2,500 sq.ft.)
Fee is based on the ratio of its floor area in relation to the primary unit, multiplied by the fee that the primary unit would pay, if it was being built today. (RTMF (F) for primary unit) x (ADU sq.ft. divided by primary unit sq.ft.) Exempt
ITE Code &
Unit
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 28 Table 3.10 Revised Fee Levels – Non-Residential Uses
Figure 3.4 Residential Impact Fee Comparison - Foothills Counties Figure 3.5 Non-Residential Impact Fee Comparison - Foothills Counties Current Fee per
Trip
Current TripGen Rate Current Fee Proposed Fee
per Trip
Updated
Trip-Gen
Rate
Proposed
Fee
%
Change
(A) (B) (C)=(A)*(B) (D) (E) (F)=(D)*(E) (G)=(F)/(C)-1
Non-Residential
Office KSF $86 12.05 $1,033 $59 12.76 $755 -27%
Industrial KSF $86 5.33 $457 $59 4.75 $281 -38%
Warehouse KSF $86 3.56 $305 $59 3.56 $211 -31%
Retail/Service - Low KSF $86 23.88 $2,047 $59 21.63 $1,280 -37% Retail/Service - Medium KSF $86 51.02 $4,373 $59 50.52 $2,990 -32% Retail/Service - High KSF $86 90.46 $7,754 $59 91.96 $5,443 -30% * Lodging Room $86 6.45 $553 $59 4.21 $249 -55%
** Public & Quasi-Public KSF Exempt Exempt N/A
** School K-8th Grade Student Exempt Exempt N/A
** School 9-12th Grade Student Exempt Exempt N/A
** Public College Student Exempt Exempt N/A
* The unit of analysis for this category is "rooms". Trip-gen rate shown is the average for the hotel and motel categories * * Public-sector land uses are generally exempt from local fees Typical Use Unit
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
El Dorado (Kyburz)Placer (Newcastle) Amador Tuolumne RTMF (proposed) Calaveras Residential Fee Per EDU
$-
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
El Dorado (Kyburz)Placer (Newcastle) Amador Tuolumne RTMF (proposed) Calaveras Non-Residential Fee per Trip
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 29

3.9 Revenues Raised by the RTMF Program
Based on the number of new units of development shown in Table 2.2 and the recommended fee schedule shown in Table 3.9 and
Table 3.10, the total fee revenue expected to be generated by the RTMF in the next 20 years is $17.6 million, as shown in Table 3.11. Note that this is slightly (1%) less than the $17.7 million in project costs attributable to new development shown in Row C of Table 3.8. This is because public-sector developments are exempt from the RTMF, and their share of the costs cannot legally be transferred to other development since the latter are responsible only for mitigating their own impacts.

Current Fee per
Trip
Current TripGen RateCurrent Fee per
Unit
Dwelling Unit
Equivalents
(DUE)
Proposed
Cost per
DUE
Proposed
Fee per Unit
%
Change in Fee
(A) (B) (C)=(A)*(B) (D) (E) (F)=(D)*(E) (G)=(F)/(C)-1
210
Dwelling Unit $485 9.52 $4,621 0.83 $4,868 $4,030 -13%
Dwelling Unit $485 9.52 $4,621 1.00 $4,868 $4,868 5%
Dwelling Unit $485 9.52 $4,621 1.11 $4,868 $5,396 17%
251
Dwelling Unit $485 6.59 $3,199 0.48 $2,344 $1,128 -65%
Dwelling Unit $485 6.59 $3,199 0.58 $2,344 $1,363 -57%
Dwelling Unit $485 6.59 $3,199 0.64 $2,344 $1,511 -53%
220
Dwelling Unit $485 4.99 $2,422 0.76 $3,675 $2,775 15%
Dwelling Unit $485 4.99 $2,422 0.91 $3,675 $3,352 38%
Dwelling Unit $485 4.99 $2,422 1.01 $3,675 $3,716 53%
252
Dwelling Unit $485 3.56 $1,728 0.40 $1,949 $780 -55%
Dwelling Unit $485 3.56 $1,728 0.48 $1,949 $942 -45%
Dwelling Unit $485 3.56 $1,728 0.54 $1,949 $1,045 -40%
Medium (1,500-2,500 sq.ft.)
Small (<1,500 sq.ft.)
Single Family
Accessory Dwelling Unit (ADU)
< 750 sq.ft.
> 750 sq.ft.

Typical Use
Large (<2,500 sq.ft.)
Small (<1,500 sq.ft.)
Medium (1,500-2,500 sq.ft.)
Large (<2,500 sq.ft.)
Small (<1,500 sq.ft.)
Medium (1,500-2,500 sq.ft.)
Large (<2,500 sq.ft.)
Residential (Dwelling Unit)
Multi-Family
Mobile Home
Senior Housing
Small (<1,500 sq.ft.)
Medium (1,500-2,500 sq.ft.)
Large (<2,500 sq.ft.)
Fee is based on the ratio of its floor area in relation to the primary unit, multiplied by the fee that the primary unit would pay, if it was being built today. (RTMF (F) for primary unit) x (ADU sq.ft. divided by primary unit sq.ft.) Exempt
ITE Code &
Unit
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 30 Table 3.11 Forecast of RTMF Revenues
Approximately 82% of the forecast revenue will come from single and multi-family housing. It is therefore crucial to the viability of the program that fees on those two categories of development is not further reduced.

3.10 Results in Terms of Project Funding
The revenue forecast computed in the previous section can be compared to the project costs shown in Table 3.3. Prorating the $17.6M in RTMF revenue over the $21.7M in eligible project costs results in the allocations by project shown in Table 3.12.

Table 3.12 shows that $2.6M in additional funding will be needed over the course of the next 20 years to fully fund the project list. Section 2.4 of this report showed that if future state funding is similar to previous funding, then approximately $158M will become available over the 20-year period (see Table 2.3). We therefore believe that there is a reasonable expectation that the projects identified for RTMF funding can be fully funded within the planning time horizon.

Unit
Proposed
RTMF/
Trip End
Trip-Gen
Rate
RTMF/
Unit
Expected # of
New Units
Expected
Revenues
Percent of
Revenues
Residential
Single Family DU $516.20 9.43 $4,868 2,585
Small (<1,500 sq.ft.) DU 83% $4,030 29% $3,020,908 17.2% Medium (1,500-2,500 sq.ft.) DU 100% $4,868 46% $5,788,256 33.0% Large (<2,500 sq.ft.) DU 111% $5,396 25% $3,487,458 19.9% Multi-Family DU $516.20 4.54 $2,344 1,581
Small (<1,500 sq.ft.) DU 48% $1,128 100% $1,783,814 10.2% Medium (1,500-2,500 sq.ft.) DU 58% $1,363 0% $0 0.0%
Large (<2,500 sq.ft.) DU 64% $1,511 0% $0 0.0%
Mobile Home DU $516.20 7.12 $3,675 251
Small (<1,500 sq.ft.) DU 76% $2,775 63% $438,814 2.5%
Medium (1,500-2,500 sq.ft.) DU 91% $3,352 36% $302,895 1.7% Large (<2,500 sq.ft.) DU 101% $3,716 1% $9,328 0.1%
Senior Housing DU $516.20 3.78 $1,949 460
Small (<1,500 sq.ft.) DU 40% $780 29% $104,063 0.6%
Medium (1,500-2,500 sq.ft.) DU 48% $942 46% $199,391 1.1% Large (<2,500 sq.ft.) DU 54% $1,045 25% $120,134 0.7%
Residential Total > $15,255,061 86.9%
Non-Residential
Office KSF $59.19 12.76 $755 569 $429,588 2.4%
Light Industry KSF $59.19 4.75 $281 2,162 $607,868 3.5% Warehouse KSF $59.19 3.56 $211 73 $15,383 0.1%
Retail/Service - Low KSF $59.19 21.63 $1,280 255 $326,404 1.9% Retail/Service - Medium KSF $59.19 50.52 $2,990 204 $610,033 3.5% Retail/Service - High KSF $59.19 91.96 $5,443 51 $277,606 1.6% Lodging Rooms $59.19 4.21 $249 97 $24,172 0.1%
Public & Quasi-Public KSF Exempt 22.59 $0 28 $0 0.0%
School K-8th Grade Students Exempt 2.25 $0 499 $0 0.0%
School 9-12th Grade Students Exempt 1.98 $0 298 $0 0.0% Public College Students Exempt 1.15 $0 439 $0 0.0%
Non-Residential Total > $2,291,054 13.1%
Combined Total > $17,546,114
As a Percentage of Project Costs Attributable to New Development > 99% Land Use Category
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 31 Table 3.12 Proposed Allocation of RTMF Revenues to Projects Already
Collected
Fees on Future
Development
Already
Secured
Future
Funding
1 1 SR-49 Interchange Dorsey Drive $24,000,000 $2,729,732 $1,884,659 $19,385,609 $0 9 2 E.Main St @ Bennett St/Richardson St $1,500,000 $1,500,000 $0 $0 $0 * 3 SR-49 SB PM 13.1 to PM 11.0 (SB) $21,000,000 $0 $2,574,092 $0 $18,425,908 4 4 SR-49 NB & SB Ramps @ McKnight Way $9,663,269 $0 $7,586,908 $0 $2,076,361 5 5 SR 20 EB Ramps @ McCourtney Rd $2,083,969 $0 $1,303,945 $0 $780,025 6 6 SR 20/49 NB Ramps @ Idaho Maryland Rd $1,847,696 $0 $1,829,285 $0 $18,411 8 7 SR 20/SR 49 @ Uren St $1,457,566 $0 $0 $0 $1,457,566 * 8 Brunswick Road @ SR 174/Colfax Highway $1,384,179 $0 $1,370,386 $0 $13,793 11 9 SR-49 @ Coyote St $468,604 $0 $197,945 $0 $270,659 10 Admin Costs and 5-year reviews $349,302 $0 $345,822 $0 $3,481 Total $63,754,585 $4,229,732 $17,093,042 $19,385,609 $23,046,202 As a percent of total costs for needed projects 6.6% 26.8% 30.4% 36.1% * indicates a new project not in the previous project list but identified in the current study as a deficiency that is at least partially attributable to new development Project ID
(from
Previous
Study)
RTMF Funds Funds from Other Sources
Updated
Cost
Estimate
Facility Segment Project ID
(New)
GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 32

4. Mitigation Fee Act Findings
The Mitigation Fee Act, as set forth in the California Government Code Sections 66000 through 66008, establishes the framework for mitigation fees in the State of California. The Act requires agencies to make certain findings with respect to a proposed fee. These are described in the sections below.

4.1 Purpose of the Fee
Identify the purpose of the fee
The purpose of the RTMF is to establish a uniform, cooperative program to mitigate the cumulative indirect regional impacts of future developments on traffic conditions on regional roadways in Nevada County. The fees will help fund improvements needed to maintain the target level of service in the face of the higher traffic volumes brought on by new developments.

4.2 Use of Fee Revenues
Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified The list of projects to receive RTMF funding is shown in Table 3.12. Based on input from the member agencies and the public, we recommend that the regional fee should be used only for roads of regional significance. This is consistent with the fact that cumulative indirect impacts tend to be on regional facilities and so should be addressed with a regional fee program; Grass Valley and the County have complementary programs to mitigate more local impacts, and direct impacts are covered through exactions. Only projects involving state facilities were considered “regional” under this policy and can receive RTMF funding.

4.3 Use/Type of Development Relationship
Determine the reasonable relationship between the fees’ use and the type of development project on which the fees are imposed
To determine the “use” relationship, the development being assessed an impact fee must be reasonably shown to derive some use or benefit from the facility being built using the fee. In the case of the RTMF the projects to be funded were selected based on the fact that they performed a regional (as opposed to local) function and that the need for the project was at least partially attributable to new development. The growth in regional VMT and the increases in congestion at project sites (see Table 3.2) are evidence that new developments contribute towards the need for roadway improvements.

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

GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update 33

4.4 Need/Type of Development Relationship
Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed
To determine the “need” relationship the facilities to be financed must be shown to be needed at least in part because of the new development. This was determined by analyzing the forecast traffic demand with the expected degree of new development and comparing that with the demand without new development. Projects were analyzed individually and the degree to which the need for the project was attributable to new development varied from project to project.

This analysis is described in an earlier chapter of this report.

4.5 Proportionality Relationship
Determine how there is a reasonable relationship between the fee amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed The “proportionality” relationship requires that there be rough proportionality between the fee charged to each type of development and the cost of the facility being financed. In the case of the RTMF the differences in the traffic generated by different types of development were factored into the fee to be charged for each type, as is described earlier in this report. Within each land use category, the size of the project, i.e., the number of dwelling units constructed or size of the building, is accounted for in assessing the fee. This ensures that projects that generate a lot of traffic and therefore have a greater traffic impact will pay more than other projects that have less impacts. ghd.com GHD | Nevada County Transportation Commission | 11230706 | Regional Transportation Mitigation Fee 2023 Nexus Study Update The Power of Commitment34 Regional Traffic Mitigation Fee
Program Administrative Plan
Prepared for:

Nevada County Transportation Commission
Prepared by:

Economic & Planning Systems, Inc. (EPS)
July 13, 2023
EPS #212065
Table of Contents
Introduction ................................................................................. 1 Background ....................................................................................... 1 Purpose ............................................................................................. 2 Authority ........................................................................................... 2 RTMF Program Participation and RTMF Calculation ............................. 3 Land Uses Subject to the RTMF ............................................................. 3 Calculation of the RTMF ....................................................................... 6 Expiration of Building Permits ............................................................. 11 RTMF Exemptions ............................................................................. 12 RTMF Credits for Prior Uses ................................................................ 13 Other Fee and Funding Programs ........................................................ 13 Allocation of RTMF Program Funds ....................................................... 13 RTMF Program Credits and Reimbursements .................................... 14 Administration of RTMF Credits for Construction of Eligible Facilities ......... 14 Administration of RTMF Reimbursements for Construction of Eligible Facilities ............................................................................... 15 Administrative Responsibilities and Costs ........................................ 17 Regional Administration ..................................................................... 17 Local Administration .......................................................................... 24 Administrative Costs ......................................................................... 24 Challenging the RTMF Program ...................................................... 25 RTMF Program Appeals ................................................................. 26 Persons or Entities Who Have Standing to Appeal .................................. 26 Appealable Issues and Matters ............................................................ 26 Appeals Process ................................................................................ 26 California Environmental Quality Act Mitigation ................................ 28 Appendices
Appendix A: RTMF Calculation Examples for Accessory Dwelling Units Appendix B: Guidelines for Administration of Programmed Projects in the Adopted Five-Year Transportation Improvement Program
List of Exhibits
Exhibit 1. Land Use Categories and Trip Generation Rates (2 pages) ........... 4 Exhibit 2. Regional Transportation Mitigation Fee Calculation Form .............. 7 Exhibit 3. Accessory Dwelling Unit (ADU) RTMF Calculation Form .............. 10 Exhibit 4. RTMF Administrative Decision-Making Process .......................... 17 Exhibit 5. Fee Collection and Disposition Process .................................... 23 Exhibit 6. Appeals Process ................................................................... 27 Exhibit 7. RTMF Capital Improvement Program ..................................... B-6 Exhibit 8. RTMF Expenditure Plan ....................................................... B-7 RTMF Program Administrative Plan
July 13, 2023
Economic & Planning Systems, Inc. (EPS) 1
Introduction
Background
This 2023 Regional Transportation Mitigation Fee (RTMF) Program Administrative Plan (2023 Administrative Plan or Administrative Plan) updates the 2016 RTMF Program Administrative Plan prepared by WSP and Parsons Brinckerhoff (2016 Administrative Plan). The 2023 Administrative Plan retains many elements of the 2016 Administrative Plan, with portions excerpted directly from the 2016 Administrative Plan. In addition, the 2023 Administrative Plan includes modifications and additions to address changes in the RTMF Program and California laws since 2016.

This 2023 Administrative Plan is a companion document to the 2023 RTMF Nexus Study Update prepared by GHD and adopted in July 2023. The RTMF Program was established in 2001 through a partnership of three local jurisdictions (unincorporated Nevada County, Nevada City, and Grass Valley) and the Nevada County Transportation Commission (NCTC) to provide funding from new development to make improvements to the Regional Transportation System (Regional System) needed to accommodate anticipated future development in western Nevada County. Comprehensive RTMF Program updates were prepared in 2008, 2016, and most recently in 2023. The 2023 RTMF Program Nexus Study updates the RTMF Program to account for changes to projected development, improvements, and costs, as well as for changes in the fee structure and administration mandated by recent State of California (State) laws passed since 2016.

The RTMF Program provides significant additional funds from new development to make improvements to the Regional System, complementing local transportation fee programs and other funding sources. The RTMF fee provides local agencies with a mechanism to collect developers’ fair share contribution toward sustaining the Regional System. The RTMF Program is a 20-year program and will be influenced by a variety of market factors that could cause a shortfall or surplus in the revenue projections. The RTMF Program shall be reviewed at least every 8 years, as mandated by state law to ensure the integrity of the program. The program is not designed to be the only source of revenue to construct the identified facilities, and it will be necessary for matching funds to be provided from a variety of available sources.

With approval from the local jurisdictions imposing the fees and the NCTC, RTMF obligations may be met by paying the fees, building eligible facilities, through public financing (e.g., Community Facility Districts and Assessment Districts), or through private financing vehicles consistent with local jurisdiction policies.

RTMF Program Administrative Plan
July 13, 2023
Economic & Planning Systems, Inc. (EPS) 2
General RTMF Program parameters, definitions, and procedures are described in the RTMF Program resolutions adopted by the three participating western Nevada County jurisdictions (Nevada County, Grass Valley, and Nevada City). The NCTC is designated as the RTMF Program Administrator and works closely with member jurisdictions to coordinate transportation expenditure programs to maximize the effectiveness of future transportation investments.

This Administrative Plan may be amended from time to time, provided that any material amendments shall be approved by the NCTC Executive Committee. This Administrative Plan serves as the guideline to implement the RTMF Program and will be amended as needed to address changing conditions over the life of the program.

Purpose
The purpose of this Administrative Plan is to provide those jurisdictions that are participants in the RTMF Program with guidelines and policies for implementation and administration of the RTMF Program.

RTMF Program funds may only be used for capital and administrative expenditures associated with the Regional System as detailed in the 2023 RTMF Nexus Study. More specifically, the RTMF Program may be used to fund the following items:
 Engineering and design
 Environmental documentation
 Right-of-way acquisition
 Construction
 Construction management
 Fee program administration
Authority
The RTMF Program has been developed pursuant to and consistent with the provisions of California Assembly Bill 1600 legislation, as codified by the Mitigation Fee Act (California Government Code Section 66000 et seq.), which was most recently amended in 2021 to reflect the requirements of California Assembly Bill 602 (AB 602). In addition, AB 602 resulted in changes to reporting requirements for development impact fees, and Senate Bill 13 (SB 13), enacted in 2020, resulted in new requirements for development impact fees for accessory dwelling units (ADUs).

This Administrative Plan will detail the fee program administration procedures needed to meet the requirements of the Mitigation Fee Act and other development impact fee program requirements, including the recent changes resulting from AB 602 and SB 13.

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July 13, 2023
Economic & Planning Systems, Inc. (EPS) 3
RTMF Program Participation and
RTMF Calculation
Participating jurisdictions in western Nevada County are responsible for collecting the fees on new development within their jurisdictions. To be considered a participant in the RTMF Program, a jurisdiction must have adopted the RTMF Program no later than September 1, 2008, and adopt any amendment of the RTMF Program within 90 days of approval by the NCTC Executive Committee, unless otherwise directed by the NCTC Executive Committee. Participating jurisdictions shall not modify the RTMF Program, except to meet local municipal codes and references. Further, to be considered a participating jurisdiction, local jurisdictions shall collect the full RTMF and transmit the fee to NCTC as provided herein. The current participating jurisdictions in western Nevada County are unincorporated Nevada County (Nevada County), Nevada City, and Grass Valley.

Land Uses Subject to the RTMF
The 2023 RTMF Nexus Study Update identifies the land uses subject to the RTMF Program by two types, residential and non-residential. For each land use type, Exhibit 1 displays additional subcategories of residential and non-residential land uses and the average daily trip rate for each subcategory. The average daily trip rates are based on a review of land use categories and trip generation rates in the Trip Generation Manual, 11th Edition prepared by the Institute of Transportation Engineers (ITE Trip Generation Manual).

Residential Uses
For the RTMF obligation, a residential dwelling unit is defined as a building or portion thereof used by one family and containing one kitchen, which is primarily designed for residential occupancy. Residential dwelling units may include, but are not limited to, detached houses, apartment homes, condominiums, and mobile homes. Mobile homes located in a mobile home park will be calculated as Mobile Home in Park units while mobile homes located on individual lots will be calculated as single-family dwelling units.

Exhibit 1
Land Use Categories and Trip Generation Rates
Unit ITE Code Weekday Trips per Unit

RESIDENTIAL
Single Family Detached House Dwelling Unit 210 9.43
Multi-Family
Apartment Dwelling Unit 220 6.74
Low Rise Apartment Dwelling Unit 221 4.54
Residential Condominium/Townhouse Dwelling Unit 230 3.44 Median for Multi-Family 4.54
Mobile Home in Park Dwelling Unit 240 7.12
Senior Residential
Senior Adult Housing - Detached Dwelling Unit 251 4.31
Senior Adult Housing - Attached Dwelling Unit 252 3.24
Median for Senior Residential 3.78

NON-RESIDENTIAL
Office
General Office KSF 710 10.84
Single Tenant Office KSF 715 13.07
Office Park KSF 750 11.07
Business Park KSF 770 12.44
Clinic KSF 630 37.60
Medical-Dentist Office KSF 720 36.00
Median for Office 12.76
Industrial
General Light Industry KSF 110 4.87
Industrial Park KSF 130 3.37
Manufacturing KSF 140 4.75
Median for Industrial 4.75
Warehousing KSF 150 3.56
Retail/Service - Low
Building Materials and Lumber KSF 812 17.05
Hardware/Paint Store KSF 816 8.07
Factory Outlet Center KSF 823 26.59
New Car Sales KSF 841 27.06
Tire Store KSF 848 27.69
Tire Superstore KSF 849 20.37
Home Improvement Superstore KSF 862 30.74
Discount Home Furnishing Superstore KSF 869 20.00
Department Store KSF 875 22.88
Furniture Store KSF 890 6.30
Median for Retail - Low 21.63
Retail/Service - Medium
Day Care Center KSF 565 47.62
Discount Superstore KSF 813 50.52
Specialty Retail Center KSF 814 63.66
Discount Store KSF 815 53.87
Shopping Center KSF 820 37.01
Auto Parts Store KSF 843 54.57
Discount Club KSF 857 42.46
Electronics Superstore KSF 863 41.05
Arts and Crafts Store KSF 879 56.55
Median for Retail - Medium 50.52
Land Use Category
4 Exhibit 1
Land Use Categories and Trip Generation Rates
Land Use Category Unit ITE Code Weekday Trips per Unit
Retail/Service - High
Nursery (Garden Center) KSF 817 68.10
Supermarket KSF 850 93.84
Apparel Store KSF 876 66.40
Pharmacy/Drugstore w/o Drive Through Window KSF 880 90.08 Pharmacy/Drugstore with Drive Through Window KSF 881 108.40 Drive-in Bank KSF 912 100.35
Quality Restaurant KSF 931 83.84
High Turnover (Sit-Down) Restaurant KSF 932 107.20
Median for Retail - High 91.96
Lodging
Hotel Room 310 7.99
All Suites Hotel Room 311 4.40
Business Hotel Room 312 4.02
Motel Room 320 3.35
Median for Lodging 4.21
Public & Quasi-Public
Church KSF 560 7.60
Library KSF 590 72.05
Government Office Building KSF 730 22.59
State Motor Vehicles Department KSF 731 11.21
United States Post Office KSF 732 103.94
Median for Public Sector 22.59
School K-8th Grade Student 520 & 522 2.25
School 9th-12 Grade Student 522 & 530 1.98
Junior/Community College Student 540 1.15
Other Non-Residential
All Port and Terminal Uses 000-099
All Recreational Uses 300-399
All Private Institutional Uses (Public Institutions are Exempt) 500-599 Convenience Market 851
Convenience Market with Gasoline Pumps 853
Fast Food Restaurant with Drive Through 934
Coffee/Donut Shop with Drive Through 937
Coffee/Donut Shop Drive Through No Seating 938
Gasoline/Service Station 944
Gasoline/Service Station with Convenience Market 945
Gasoline/Service Station with Convenience Market and Car Wash 946 Self-Service Car Wash 947
Based on ITE Trip Generation Manual, 11th Ed.

The trip generation for any
project in these categories
shall be computed using
the ITE daily tripgeneration rate for their
land use type or, at the
discretion of agency staff,
through a separate traffic
study
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Economic & Planning Systems, Inc. (EPS) 6
Nonresidential Uses
For the purpose of calculating the RTMF obligation, non-residential development is defined as Retail/Service, Office, Industrial, Warehousing, and Lodging development that is designed primarily for use as a business and is not intended for residential occupancy or dwelling use. The applicable non-residential land use category for a non-residential development is determined by the predominate use of the building or structure associated with the new development and may be related to the underlying land use zoning of the new development site.

Retail developments with an average daily trip generation rate of 35 or fewer trips per thousand square feet are included in the Retail-Low category. Retail developments with an average daily trip generation rate between 36 and 65 trips per thousand square feet are included in the Retail-Medium category. Retail developments with an average daily trip generation rate greater than 65 trips per thousand square feet are included in the Retail-High category.

Other non-residential land uses are those that have trip generation characteristics that do not match any of the major categories. In these cases, the city or county may require a project-specific traffic study or will calculate the appropriate fee based on the ITE Trip Generation Manual (latest edition).

Exempt Uses
Public/Quasi-Public uses and schools are included in Exhibit 1 for the purposes of calculating trips but are exempt from paying the RTMF.

Calculation of the RTMF
Each participating jurisdiction shall calculate and collect the RTMF for projects as outlined in this Administrative Plan. The RTMF shall be calculated using the fee schedule in effect at the time the fee is due. The procedures for calculating fees differ for standard residential and nonresidential development and ADUs.

Residential and Nonresidential Development (excluding ADUs) Exhibit 2 is a form to calculate the amount of RTMF to be charged to residential or commercial development projects when applying for building permits. It contains three sections for Residential, Nonresidential, and Other development.

The Residential and Nonresidential categories apply to the majority of development. The Other category applies to residential and nonresidential development that does not fit into one of the RTMF standard fee categories.

Several examples of land uses in the Other category include convalescent homes, youth group homes, gasoline/service stations, and convenience stores.

Exhibit 2
Regional Transportation Mitigation Fee Calculation Form Owner Contractor
Permit Reference Number Permit Type
Property ID Job Address
Date
RESIDENTIAL Units Fee per Unit
Effective Date:

Total
Single Family Residential
Small (<1,500 sq. ft.) X $4,030 = $
Medium (1,501 to 2,500 sq. ft.) X $4,868 = $
Large (> 2,500 sq. ft.) X $5,396 = $
Multiple Family Residential
Small (<1,500 sq. ft.) X $1,128 = $
Medium (1,501 to 2,500 sq. ft.) X $1,363 = $
Large (> 2,500 sq. ft.) X $1,511 = $
Mobile Home in Park
Small (<1,500 sq. ft.) X $2,775 = $
Medium (1,501 to 2,500 sq. ft.) X $3,352 = $
Large (> 2,500 sq. ft.) X $3,716 = $
Retirement/Senior Residential
Small (<1,500 sq. ft.) X $780 = $
Medium (1,501 to 2,500 sq. ft.) X $942 = $
Large (> 2,500 sq. ft.) X $1,045 = $

NON-RESIDENTIAL KSF/
Rooms
Fee per
KSF/Room
Effective Date:

Retail/Service – Low KSF X $1,280 = $
Retail/Service – Medium KSF X $2,990 = $
Retail/Service – High KSF X $5,443 = $
Office KSF X $755 = $
Industrial KSF X $281 = $
Warehousing KSF X $211 = $
Lodging rooms X $249 = $
Public/Quasi-Public and Schools KSF X Exempt = $
OTHER Description Units/KSF
Daily Trips
Per Unit/KSF Cost per Trip Total
(from ITE Manual) Effective Date:

Residential ________________________ units X X $516.20 = $ Non-Residential ________________________ KSF X X $59.19 = $ TOTAL Total Mitigation Fees $
Credits Applied $
Net Mitigation Fees $
7 RTMF Program Administrative Plan
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Economic & Planning Systems, Inc. (EPS) 8
Regardless of the type of development, the information requested about the project at the top of the form needs to be entered before calculating the fees. The steps to complete the RTMF calculation form for each type of development are detailed below.

Note that the RTMF per dwelling unit and nonresidential thousand building square feet (KSF) and the residential and nonresidential cost per trip shown on Exhibit 2 are the 2023 fees and costs. Exhibit 2 should be updated annually to reflect annual fee updates. The fees should be updated to the new fee levels, and the costs per trip should be updated by the same percentage escalation as used for the fee updates. The percentage escalation process is detailed in the RTMF Program Update section of Chapter 4 (page 20).

Residential Development

1. Complete the project information section at the top of Exhibit 2.

2. For each applicable residential land use category included on Exhibit 2, enter the number of units for which building permits are to be issued. Note that is necessary to know the habitable square feet for all residential units to determine the land use categories. Backup documentation specifying each unit’s habitable square feet (excluding garages and other uninhabitable areas) should be submitted when applying for building permits.

3. For each land use category, multiply the number of units by the RTMF per unit and enter the calculated amount in the Total column.

4. Add the amounts in the Total column and enter the sum on the Total Mitigation Fees line.

5. Enter any credits on the next line labeled Credits Applied.

6. Subtract the credits, if any, from the Total Mitigation Fees and enter the amount on the line labeled Net Mitigation Fees. This is the amount of RTMF for the project.

Nonresidential Development

1. Complete the project information section at the top of Exhibit 2.

2. The RTMF for nonresidential projects, except for lodging, is charged per thousand building square feet (KSF). The RTMF for lodging is charged per room. For each applicable nonresidential land use category included on Exhibit 2, excluding lodging, enter the KSF for which building permits are to be issued. For any lodging development, enter the number of rooms.

3. For each land use category in the project other than lodging, multiply the KSF by the RTMF per KSF and enter the calculated amount in the Total column. For lodging, multiply the number of rooms by the RTMF per room and enter the calculated amount in the Total column.

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Economic & Planning Systems, Inc. (EPS) 9

4. Add the amounts in the Total column and enter the sum on the Total Mitigation Fees line.

5. Enter any credits on the next line labeled Credits Applied.

6. Subtract the credits, if any, from the Total Mitigation Fee and enter the amount on the line labeled Net Mitigation Fees. This is the amount of RTMF for the project.

Other Development
The RTMF calculation for residential and nonresidential development that does not fit into one of the standard RTMF categories may be based on trip generation rates from the latest ITE Trip Generation Manual. In these cases, the following steps are required to calculate the fees:

1. Complete the project information section at the top of Exhibit 2.

2. Use the most recent edition of the ITE Trip Generation Manual to identify the development type and average daily trips per dwelling unit or nonresidential KSF.

3. Enter the development type, project dwelling units or nonresidential KSF, and average daily trips per dwelling unit or nonresidential KSF.

4. For residential land uses, multiply the dwelling units, trips per dwelling unit, and cost per trip to obtain the total fees, and enter the result in the Total column.

5. For nonresidential land uses, multiply the KSF, trips per KSF, and cost per trip to obtain the total fees, and enter the result in the Total column.

6. Add the amounts in the Total column and enter the sum on the Total Mitigation Fees line.

7. Enter any credits on the next line labeled Credits Applied.

8. Subtract the credits, if any, from the Total Mitigation Fees and enter the amount on the line labeled Net Mitigation Fees. This is the amount of RTMF for the project.

Accessory Dwelling Units
Exhibit 3 is a form to calculate the RTMF to be charged for a residential ADU.

If there are multiple ADUs planned on one residential parcel, each ADU should be treated separately, and a separate form should be completed for each ADU.

ADUs with fewer than 750 habitable square feet are exempt from paying development impact fees.

Exhibit 3
Accessory Dwelling Unit (ADU) RTMF Calculation Form
Owner Contractor
Permit Reference Number Permit Type
Property ID Job Address
Date
Primary Residence
Property ID
Land Use Category
Building Square Feet (A)
(excluding garage and other uninhabitable space)
Fee for Primary Unit, if it were new (B)
(See table below)
ADU Building Square Feet (C)
(excluding garage and other uninhabitable space)
Exempt (Y or N)
(Exempt if ADU square feet < 750)
If Not Exempt (Exempt = N), provide information below:

ADU Percentage [(D) = (C)/(A)]
(ADU Sq. Ft. / Primary Residence Sq. Ft.)
ADU RTMF Calculation
ADU Floor Space Percentage * Fee for Primary Residence
(E) = (B) * (D) * =
Fee Table for Primary Residence (if it were new)
Effective Date:

Single Family Residential
Small (<1,500 sq. ft.) $4,030
Medium (1,501 to 2,500 sq. ft) $4,868
Large (> 2,500 sq. ft.) $5,396
Multiple Family Residential
Small (<1,500 sq. ft.) $1,128
Medium (1,501 to 2,500 sq. ft.) $1,363
Large (> 2,500 sq. ft.) $1,511
Mobile Home in Park
Small (<1,500 sq. ft.) $2,775
Medium (1,501 to 2,500 sq. ft.) $3,352
Large (> 2,500 sq. ft.) $3,716
Retirement/Senior Residential
Small (<1,500 sq. ft.) $780
Medium (1,501 to 2,500 sq. ft.) $942
Large (> 2,500 sq. ft.) $1,045
TOTAL Total Mitigation Fees $
Credits Applied $
Net Mitigation Fees $
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The steps listed below describe how to complete the RTMF calculation for an ADU.

Example calculations are provided in Appendix A.

1. Complete the project information section at the top of Exhibit 3.

2. Record the building square feet excluding garages and other uninhabitable areas (habitable square feet) of the planned ADU in the indicated area of Exhibit 3.

3. If the ADU habitable square feet are less than 750, then the ADU is exempt from the RTMF and no further calculations are necessary.

4. If the ADU habitable square feet are at least 750, then the ADU must pay the RTMF and the following steps below should be completed. a. Record the primary residence Property ID (e.g., address or APN) and habitable square feet. Square feet of existing residences should be obtained from the Nevada County Geographic Information System (GIS).

Recall that habitable square feet exclude uninhabitable areas such as garages.
b. Enter the primary residence land use category, which is determined by the type (single family, multifamily, mobile home, or age-restricted) and habitable square feet of the primary unit.
c. Record the ADU habitable square feet as a percentage of the primary residence habitable square feet in the ADU Percentage area for the applicable primary residence land use, using the formula below:

ADU Percentage = ADU Building Square Feet/Primary Residence Building Square Feet.
d. Multiply the ADU Percentage by the Fee per Unit. Enter the result in the Total column.
e. Enter the same amount on the Total Mitigation Fees line. f. Enter any credits on the next line labeled Credits Applied. g. Subtract the credits, if any, from the Total Mitigation Fee and enter the amount on the line labeled Net Mitigation Fees. This is the amount of RTMF for the ADU.

Expiration of Building Permits
RTMF Refund
If a building permit should expire, is revoked, or is voluntarily surrendered, and is therefore voided, and no construction or land improvements have commenced, then the applicant is entitled to a refund of the RTMF collected, which was paid as a condition of approval, less administrative costs ($500 or two percent of the fee amount, whichever is greater). The administrative cost shall be used to offset the RTMF Program Administrative Plan
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cost of collection, accounting, and refund. The applicant shall submit an application for a refund to the local jurisdiction. If the local jurisdiction has not yet forwarded the fees to NCTC, the local jurisdiction will process the application and return the fees less the administrative costs. If the local jurisdiction has already forwarded the fees to NCTC, the local jurisdiction will process the refund and account for the reimbursement in the next transfer of fees collected to NCTC.

Permit Reapplication
The applicant must pay the appropriate RTMF in full if the applicant reapplies for a permit for which a refund was processed.

RTMF Exemptions
The following types of development are exempt from the RTMF Program:
 The reconstruction of, or addition to, a commercial building, as long as the building continues a use in the same fee category as the prior use and does not result in additional square feet.1
 The reconstruction of, or addition to, a residential dwelling unit, as long as the unit continues to be in the same fee category or in a residential fee category with lower fees.2
 Public/Quasi-Public development and schools.
 ADUs with fewer than 750 habitable square feet.
 Ancillary uses.

For example, a club house in an apartment building would be exempt from RTMF fees because it would serve the apartment residents and would not generate additional trips.
1 If the reconstruction or addition results in additional commercial square feet but not in a fee category change, the RTMF will only be paid on the additional square feet. 2 If the reconstruction or addition causes a change in the residential fee category to a residential fee category with higher fees, then the RTMF paid will be the difference in the fees between the two fee categories. Note that there are 12 residential fee categories as shown on Exhibit 2. Each residential fee category consists of a combination of unit type (Single Family, Multiple Family, Mobile Home in Park, and Retirement/Senior) and unit size (Small, Medium, and Large).

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RTMF Credits for Prior Uses
Reconstruction of, or addition to, an existing building is eligible for an RTMF credit. The RTMF applicable to the existing and new development shall be calculated using the current fee schedule, and the new development will receive a fee credit of up to the RTMF that would have applied for the existing development:
 If the existing development RTMF is less than the new development RTMF, then the new development credit equals the existing development RTMF, and the new development will pay the difference between the existing and new development RTMF.
 If the existing development RTMF is greater than the new development RTMF, then the new development will receive a full credit and not pay any RTMF.

Other Fee and Funding Programs
The RTMF is in addition to any other fees, conditions, or exactions for on-site and off-site improvements imposed on a project according to state law, local ordinances, or administrative policy. In addition, the developer of a project shall not be entitled to any RTMF credits for other fees, conditions, or exactions not part of the RTMF Program.

Allocation of RTMF Program Funds
RTMF Program funds shall be distributed in accordance with Executive Committee actions, the most current RTMF Nexus Study, this 2023 Administrative Plan, and any future amendments thereto.

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RTMF Program Credits and
Reimbursements
Administration of RTMF Credits for
Construction of Eligible Facilities
Each local jurisdiction shall be responsible for the administration of RTMF credit agreements for development in its jurisdiction. Each jurisdiction shall transmit all RTMF credit agreements to the NCTC within 60 days of execution by that jurisdiction. The NCTC may administer credit agreements upon written request from that jurisdiction. The credit agreements shall be in accordance with the following requirements.

Developer Credits Conditions
Any RTMF credit shall be used first by the developer to offset any obligation of the developer to pay RTMF impact fees of the same development project and are subject to the following conditions:
 Credits may not be transferred or sold to other development projects.  Developers must exhaust all credits before they are eligible for reimbursements.
 Credits shall run with the sale of the land.

Amount of Credits
If a developer constructs improvements identified on the Regional System, the developer shall, upon execution of an approved fee agreement, receive credit for all costs associated with the improvements based on approved project cost estimates for the Regional System.

The amount of the development fee credit shall not exceed the maximum amount determined by the most current project cost estimates for the Regional System, or actual costs, whichever is less. This shall be known as the maximum RTMF credit. The maximum RTMF credit shall be determined based on approved Improvement Plans and after Conditions of Approval have been determined. The maximum RTMF credit shall identify, at a minimum, the facility, the dimensions of the facility, the number of lanes, and the applicable project cost estimates as identified in the most current adopted RTMF Nexus Study.

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Repayment of Credits
Should the NCTC Executive Committee determine that a jurisdiction granted credits exceeding the maximum RTMF credit, that jurisdiction shall provide NCTC payment in the amount equal to the excess credit amount.

Administration of RTMF
Reimbursements for Construction of
Eligible Facilities
Local jurisdictions/agencies and developers are eligible for reimbursement for construction of RTMF facilities. The processes for both are different and are described below.

Developer Reimbursements
Each local jurisdiction shall be responsible for the administration of reimbursement agreements. If a developer constructs Regional System improvements in excess of its RTMF fee obligation, the developer may be reimbursed for the difference between eligible costs and the RTMF obligation. The eligible costs are based on actual costs or the approved project cost estimates, whichever is less at the time of the agreement.

Reimbursements shall be made through agreements between developers and the local jurisdiction and are contingent upon funds being available. In all cases, reimbursements under such agreements must coincide with construction of the transportation improvements as scheduled in the most current Five-Year Transportation Improvement Program (TIP) adopted by NCTC.

Developer Reimbursement Conditions
A developer may enter into a reimbursement agreement with a local jurisdiction to reimburse the developer/owner for the direct and verifiable costs of constructing improvements to the Regional System when all of the following conditions are met:
 All available credits are exhausted.
 The improvements received prior approval from the jurisdiction and NCTC Executive Committee based on the review of the RTMF project priority list.  The jurisdiction and NCTC Executive Committee have reviewed and approved the scope of the project to be constructed.

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In no event shall a developer be reimbursed for improvements to the Regional System in excess of the most current approved project cost estimates for the RTMF at the time of the agreement.

Local Jurisdiction/Agency Reimbursements
In cases where a local jurisdiction constructs RTMF facilities, the jurisdiction is eligible for reimbursement up to the maximum share identified in the Nexus Study or actual cost, whichever is less, in accordance with the prioritization schedule in the adopted TIP. Local jurisdictions are required to enter into a reimbursement agreement with NCTC to be eligible to receive RTMF funds from NCTC.

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Administrative Responsibilities and
Costs
The NCTC shall administer the RTMF Program as described in this Administrative Plan adopted by the participating jurisdictions. This chapter describes the administration governing structure, responsibilities, and costs.

Regional Administration
As set forth in Chapter 1, NCTC is designated as the RTMF Program Administrator.

As Administrator, NCTC will receive all fees generated from the RTMF that are collected by local jurisdictions. NCTC shall invest, account for, and expend such fees in accordance with this Administrative Plan and applicable state laws. Exhibit 4 provides a flow chart of the administrative decision-making process.

Exhibit 4. RTMF Administrative Decision-Making Process
TAC
Adminstrative
Committee
Executive
Committee
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NCTC Executive Director
The NCTC Executive Director reports to the NCTC Executive Committee and shall be responsible for the following RTMF Program activities:
 Administration of the RTMF Program, including development of credit agreements, fee collection processes, and processing RTMF Program appeals.  An independent fiscal audit conducted to report on the evidence that the expenditure of funds collected is in accordance with the Mitigation Fee Act.

The audit shall be presented to the Executive Committee and made available to the public.
 Establishment and management of the RTMF Program Trust Fund for the purposes of depositing RTMF revenues and interest earned on Trust Fund deposits.
 Preparation of an Annual Report for consideration by the Executive Committee detailing the status of the RTMF Program including, but not limited to, fees collected and disseminated; capital projects planned for, prioritized, and built; reimbursement and credit agreements; appeals; and recommendations for RTMF Program adjustments.
 Preparation of periodic comprehensive RTMF Program review reports that provide, in concert with requirements of the California Mitigation Fee Act, an analysis of the RTMF Program, including review of the various RTMF Nexus Study inputs and assumptions, and preparation of recommendations on potential RTMF Program revisions for consideration by the Executive Committee. Such reports may include but are not limited to recommended fee adjustments based on changes in the facilities required to be constructed, and revenues received pursuant to the Program.
 Preparation of technical studies/analysis required to select and prioritize Regional System projects.
 Development of a Strategic Plan that identifies long term planning goals and objectives for implementation of the RTMF Program.
 Development of a Five-Year TIP that identifies projects that are scheduled and funded for construction over a specified period of time and is reviewed on an annual basis. See Appendix B.
 Other related activities as directed by the Executive Committee.

NCTC Executive Committee
The Executive Committee shall be comprised of three members, with each member representing a distinct participating jurisdiction (Nevada County, Grass Valley, and Nevada City). The Executive Committee has final authority and shall be responsible for reviewing and acting on recommendations for project selection and prioritization of projects in the RTMF Capital Improvement Plan (CIP), RTMF Program Administrative Plan
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Strategic Plan, and TIP. The Executive Committee shall review and consider recommendations on projects from the Administrative Committee and the NCTC Technical Advisory Committee (TAC). The Executive Committee shall also be responsible for approval of this Administrative Plan and any subsequent amendments thereto. From time to time the Executive Committee shall recommend changes to the Program for consideration by participating jurisdictions. All actions by the Executive Committee must be approved by all three members to be enforced. If there is a dispute at the Executive Committee level regarding project prioritization of a specific project(s) and a consensus cannot be reached, that project shall be tabled until such time as new information is presented and the matter can be resolved.

In developing recommendations on RTMF projects for consideration by the Executive Committee, NCTC staff and TAC shall work to coordinate compatibility with local project priorities and schedules of area transportation improvements.

NCTC TAC
The TAC shall review the technical documents and recommendations for RTMF Program projects. Additionally, the TAC shall meet annually in February or March to review the proposed RTMF inflation adjustment (detailed in RTMF Program Update section below) and make a recommendation on whether or not to adjust the fees. The TAC shall forward any recommendations to the Executive Committee for its consideration. The TAC shall also provide additional assistance to the RTMF Program as requested by the Executive Committee.

Administrative Committee
The Administrative Committee shall be comprised of the chief administrative officer, public works director or designee from the three participating jurisdictions, and NCTC's Executive Director. The Administrative Committee shall have the following responsibilities:
 Develop objective criteria for project selection and prioritization, including, but not limited to, the following factors: traffic safety issues potentially created by growth, regional significance, availability of matching funds, mitigation of congestion created by new development, system continuity, geographic balance, project readiness, and completed projects with reimbursement agreements.
 Provide additional assistance to the RTMF Program as requested by the Executive Committee and/or the NCTC TAC.
 Prepare the Strategic Plan.
 Prepare the Five-Year TIP, which will be reviewed annually.  Review and recommend changes in project priorities to the NCTC TAC and Executive Committee.

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 Select a lead agency for each of the projects in the CIP.  Review the Annual Report prepared by NCTC.
 Review and revise the roadways in the Regional System as necessary (at a minimum of every 5 years).
 Review and revise project cost estimates for the Regional System projects as necessary (at a minimum of every 5 years).

RTMF Program Update
The NCTC Executive Committee shall undertake a review of all components of the RTMF Program in accordance with AB 1600 and other applicable laws, and, if necessary, recommend Program amendments and/or adjustments.

Amendments to the Administrative Plan will be subject to the approval of the NCTC Executive Committee. Required RTMF Program amendments shall be approved by the three participating jurisdictions acting on recommendations provided by the Executive Committee. The review shall consider whether adjustments to future administration costs are needed. The RTMF program is subject to annual inflation adjustments and 8-year nexus study updates. The purpose of each update is described in this section.

Annual Inflation Adjustment
The RTMF may, at NCTC’s discretion, be adjusted to account for the inflation of construction, right-of-way acquisition, and design costs.

The proposed fees in the 2023 RTMF Nexus Study Update were adopted in July 2023. The fees in each jurisdiction will go into effect no sooner than 60 days after adoption. In February or March of each calendar year thereafter, the RTMF should be reviewed, and fee adjustments should be recommended by the TAC based on the percentage change in the San Francisco Construction Cost Index (CCI) as reported in the Engineering News Record for the 12-month period ending in December of the prior year. The inflation adjustment should then be adopted by the member agencies in April. This will allow for a 60-day noticing period before the new fee schedule becomes effective on July 1st of each year.

Below is an example of a percentage adjustment calculation.

San Francisco CCI - December 2021 14,228.24
San Francisco CCI - December 2022 14,977.94
Percentage Change 5.27%
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RTMF Nexus Study Update
State law requires that impact fees be subject to periodic updates based on changes in developable land, cost estimates, or outside funding sources. This update of the nexus findings must be performed at least once every eight years.

During the nexus update studies, the TAC will analyze the following items:
 Changes to the required facilities listed in the CIP.  Changes in the cost to update or administer the fee.
 Changes in costs greater than inflation.
 Changes in assumed land uses.
 Changes in other funding sources.

Any changes to the RTMF based on a nexus study update will be presented to the Executive Committee for approval and recommendation to the participating jurisdictions.

During a nexus study update, the Executive Committee may change the funding priority of a project. Such a change will be based on level of service evaluations, the location and timing of new development that will add significant housing or jobs, or other considerations. RTMF revenues may be spent on any of the projects identified in the CIP without regard to the location of the project and the location of collected fees, so long as there is a nexus between the development paying the fee and the project being funded, as shown in the most recent nexus study update.

Five-Year Reporting Requirements
RTMF funds will be deposited, invested, and expended in accordance with Government Code Section 66006. In the fifth year following the first deposit into the RTMF account or fund and every 5 years thereafter, NCTC staff will provide the local jurisdictions with information required to make all of the following findings with respect to that portion of the account or fund remaining unexpended:
 Identify the purpose for which the RTMF is to be used.  Demonstrate a reasonable relationship between the fee and the purpose for which it is charged.
 Identify all sources and amounts of funding anticipated to complete financing of incomplete CIP projects.
 Designate the approximate dates that the RTMF funding referred to in the above paragraph is expected to be deposited in the appropriate account or fund.

The local jurisdictions must refund the unexpended or uncommitted revenue portion of the RTMF for which a need cannot be demonstrated in the above findings unless the administrative costs exceed the amount of the refund.

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Noticing Requirements
State law imposes certain requirements related to providing public notice when impact fees are changed. The requirements most relevant to the RTMF are listed below:
 Adoption of Nexus Studies: All studies shall be adopted at a public hearing with at least 30 days' notice. The city, county, or special district shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing (see CGC§ 66016.5).

The new nexus study must be posted on the agency’s website within 30 days of adoption.
 Changes to Fees: For any fee, notice of the time and place of the meeting, including a general explanation of the matter to be considered, and a statement that the data required by this subdivision is available shall be mailed at least 14 days prior to the first meeting to an interested party who files a written request with the agency for mailed notice of a meeting on a new or increased fee to be enacted by the agency. Notices may be sent electronically (see CGC§ 66019).

At least 10 days prior to the meeting, the agency shall make available to the public the data indicating the amount of cost, or the estimated cost, required to provide the public facilities and the revenue sources anticipated to fund those public facilities, including general fund revenues.

The new fees must be posted on the agency’s website for at least 60 days before going into effect.
 Annual Report: The local agency shall review the information in the Annual Report at the next regularly scheduled public meeting not less than 15 days after this information is made available to the public, as required by this subdivision. Notice of the time and place of the meeting, including the address where this information may be reviewed, shall be mailed, at least 15 days prior to the meeting, to any interested party who files a written request with the local agency for mailed notice of the meeting. Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed. Renewal requests for mailed notices shall be filed on or before April 1 of each year (see CGC§ 66006(b)(2)).  Five-Year Report: Five-Year Reports have the same requirements for noticing and review as described above for annual reports. The five-year report should be reviewed at the same meeting as that year’s annual report.

Disposition of RTMF Revenues
The fees that are paid to Nevada County, Grass Valley, and Nevada City are to be deposited into a trust account for which the NCTC is the treasurer. The three local jurisdictions are then responsible for implementing and constructing the projects RTMF Program Administrative Plan
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approved by the NCTC Executive Committee. They are to be reimbursed by NCTC for the cost incurred up to, but not exceeding, the project cost estimates in the approved CIP, upon submittal of valid invoices. A graphical illustration of the fee collection and disposition process is shown in Exhibit 5.

Exhibit 5. Fee Collection and Disposition Process
Annual Program Accountability
An annual report will be produced that will show the most current revenue balance for the RTMF Program, as well as provide a status of the Regional System projects to be constructed with the fee revenues. This report must be made available to the public within 180 days after the last day of each fiscal year (see CGC§ 66006(b)(1)).

In addition, annual fiscal audits by an independent accounting firm are required by law to examine the fiscal responsibility of local governments. The NCTC is subject to an annual financial audit. The annual report and the annual financial audit will serve as the accountability mechanisms for the collection and use of the RTMF revenue.

Surplus Funds
If the RTMF program is terminated, then in accordance with State law, the jurisdictions may use the funds to complete eligible projects included in the RTMF Program and/or return surplus or unexpended funds to the current owners of the properties that paid the unexpended funds remaining in the RTMF program.

Mitigation Fees Collected
By Local Jurisdictions
Fees Deposited
to NCTC Trust Account
Fees Distributed
to Local Jurisdictions
for Approved Projects
Fees Expended
For Approved Projects
Grass Valley
Nevada City
Nevada
County
Nevada County
Transportation
Commission
Grass Valley Regional Project
Constructed
Nevada City Regional Project
Constructed
Nevada
County
Regional Project
Constructed
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Local Administration
The RTMF fee schedule will be adopted by Grass Valley, Nevada City, and Nevada County through ordinances authorizing collection of the RTMF, and through resolutions establishing the RTMF. The RTMF fee schedule will be effective no sooner than 60 days following final action by each local agency on the ordinances authorizing collection of the RTMF, and on the resolutions establishing the RTMF.

The local ordinances or resolutions should reference the annual inflation adjustment process discussed in this Administrative Plan.

The local jurisdictions are responsible for collecting the RTMF. Fees collected and a corresponding activity report are to be transmitted to the Executive Director of NCTC either annually or bi-annually (in January and July) depending on the amount of fees generated. If over $10,000 has been collected during the prior 6 months, then the fees shall be transmitted within 30 days of the six-month period (January through June or July through December) in which the fees were collected. Otherwise, the jurisdiction may wait to transmit the fees until 30 days following the calendar year in which the fees were collected.

In accordance with the Mitigation Fee Act, NCTC will deposit, invest, account for, and disburse the transmitted fees. Participating jurisdictions are required to transmit quarterly reports to NCTC that shall include, but not be limited to, the following information regarding the RTMF Program status:
 Quarterly Remittance/Activity Reports—Within 30 days of the end of the quarter in which RTMF was collected, the participating jurisdiction shall submit the standard Remittance/Activity Report to NCTC containing information necessary for NCTC to determine the total amount of fees collected within each fee category as it relates to the number of building permits, certificates of occupancy, or final inspections issued during the same period of time. The information in the Remittance/Activity Report shall include: the name of the developer or payee, project address, APN, total square feet or number of dwelling units, credits issued, and such other information as requested by NCTC. This information will assist NCTC in tracking new development, total revenue received, and revenue projections for purposes of program audits and program updates. If an audit is required due to reporting and remittance irregularities, the jurisdiction will incur the cost of the audit.

Administrative Costs
The RTMF Program includes the costs of program administration and comprehensive program updates. NCTC administration costs will be reimbursed on a time and materials basis, but not to exceed $10,000 per year. The total cost for comprehensive program updates has been set at $150,000 for each update.

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Challenging the RTMF Program
Any member of the public, including an applicant for a development project, may submit evidence that the RTMF nexus findings are insufficient or failed to comply with state law. Evidence submitted pursuant to this subdivision may include, but is not limited to, information regarding the proposed fee calculation, assumptions, or methodology or the calculation, assumptions, or methodology for an existing fee upon which the proposed fee or fee increase is based.

If such a challenge arises, then the governing board of RTMF, or the member agency to which the evidence was submitted, shall consider the evidence in a timely manner. After considering the evidence, the governing board may change the fee as deemed necessary by the board (see CGC§ 66019(d)).

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RTMF Program Appeals
RTMF Program appeals shall only be made in accordance with the provisions of this chapter.

Persons or Entities Who Have Standing
to Appeal
No person or entity shall have standing to initiate an RTMF Program appeal except those persons or entities who are responsible for paying the RTMF and have an unresolved appealable issue or matter.

Appealable Issues and Matters
No issue or matter shall be heard or reviewed under the appeals process detailed in this chapter unless the issue or matter is appealable. An issue or matter is appealable if a qualified person or entity (Appellant) has a good-faith dispute directly related to Appellant’s Property regarding one or more of the following items (RTMF Dispute):
 Amount of Appellant’s RTMF obligation
 Administration of RTMF Credits
 Exemption of Appellant’s property from the RTMF Program  Administration of RTMF reimbursements
 RTMF refunds
Appeals Process
Exhibit 6 outlines the potential levels of the Appeals process.

1. If an Appellant has an RTMF dispute, the Appellant shall first attempt to resolve the dispute with the staff of the local jurisdiction.

2. If the RTMF dispute remains unresolved after a reasonable attempt to address it at the local level, the Appellant may submit a written appeal to the NCTC Executive Director. The written appeal shall clearly identify key issues in the RTMF dispute. The NCTC Executive Director shall present the matter to the Administrative Committee. If the Administrative Committee determines the issue or matter is not a RTMF dispute, the written appeal shall be rejected.

The Administrative Committee’s decision shall be provided in writing to the Appellant.

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3. If the Appellant desires further review and consideration, the Appellant must submit a written request for review to the NCTC Executive Director within five days of receiving the Administrative Committee’s written decision.

4. The RTMF dispute shall be presented to the NCTC Executive Committee within 30 days of the receipt of the appeal.

5. At the conclusion of the 30-day period, the Executive Committee shall render a written decision on the appeal. The decision of the Executive Committee shall be final.

Exhibit 6. Appeals Process
Appellant With
RTMF Dispute
Local Agency
Adminstrative
Committee
Executive
Committee
Unresolved
Final Decision
Final Decision
Final Decision
Resolved
Resolved
Resolved
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California Environmental Quality Act
Mitigation
The RTMF Program is a current financing mechanism dependent on future actions of the NCTC Executive Committee for improvements to the Regional System.

The NCTC Executive Committee and its associated committees prioritize and schedule Regional System improvements. The appropriate environmental documentation, as required by the California Environmental Quality Act (CEQA), must be completed before a project can commence construction.

The RTMF Program was developed to mitigate the cumulative impacts of future growth on the Regional System. It was not developed to mitigate project-specific traffic impacts. Accordingly, the program does not relieve any development project of the responsibility to mitigate project-specific impacts identified in the environmental analysis prepared for the project. When a development project is required to construct Regional System facilities as project-specific mitigation, it shall be eligible for credit or reimbursement.

APPENDICES:

Appendix A: RTMF Calculation Examples for
Accessory Dwelling Units
Appendix B: Guidelines for Administration of
Programmed Projects in the
Adopted Five-Year
Transportation Improvement
Program
APPENDIX A:

RTMF Calculation Examples
for Accessory Dwelling Units
Example 1: Exempt Accessory Dwelling Unit
Accessory Dwelling Unit (ADU) RTMF Calculation Form
Owner Contractor
Permit Reference Number Permit Type
Property ID Job Address
Date
Primary Residence
Property ID APN: 123-456-789
Land Use Category Single Family Residential Large
Building Square Feet (A) 2,850
(excluding garage and other uninhabitable space)
Fee for Primary Unit, if it were new (B) $5,396
(See table below)
ADU Building Square Feet (C)
(excluding garage and other uninhabitable space) 700
Exempt (Y or N)
(Exempt if ADU square feet < 750) Y
If Not Exempt (Exempt = N), provide information below:

ADU Percentage [(D) = (C)/(A)]
(ADU Sq. Ft. / Primary Residence Sq. Ft.)
ADU RTMF Calculation
ADU Floor Space Percentage * Fee for Primary Residence
(E) = (B) * (D) * =
Fee Table for Primary Residence (if it were new)
Single Family Residential
Small (<1,500 sq. ft.) $4,030
Medium (1,501 to 2,500 sq. ft) $4,868
Large (> 2,500 sq. ft.) $5,396
Multiple Family Residential
Small (<1,500 sq. ft.) $1,128
Medium (1,501 to 2,500 sq. ft.) $1,363
Large (> 2,500 sq. ft.) $1,511
Mobile Home in Park
Small (<1,500 sq. ft.) $2,775
Medium (1,501 to 2,500 sq. ft.) $3,352
Large (> 2,500 sq. ft.) $3,716
Retirement/Senior Residential
Small (<1,500 sq. ft.) $780
Medium (1,501 to 2,500 sq. ft.) $942
Large (> 2,500 sq. ft.) $1,045
TOTAL Total Mitigation Fees $
Credits Applied $
Net Mitigation Fees $
A-1
Example 2: 1,000 Sq. Ft. Accessory Dwelling Unit; 2,850 Sq. Ft. Primary Residence Accessory Dwelling Unit (ADU) RTMF Calculation Form
Owner Contractor
Permit Reference Number Permit Type
Property ID Job Address
Date
Primary Residence
Property ID APN: 123-456-789
Land Use Category Single Family Residential Large
Building Square Feet (A) 2,850
(excluding garage and other uninhabitable space)
Fee for Primary Unit, if it were new (B) $5,396
(See table below)
ADU Building Square Feet (C)
(excluding garage and other uninhabitable space) 1,000
Exempt (Y or N)
(Exempt if ADU square feet < 750) N
If Not Exempt (Exempt = N), provide information below:

ADU Percentage [(D) = (C)/(A)]
(ADU Sq. Ft. / Primary Residence Sq. Ft.) 35%
ADU RTMF Calculation
ADU Floor Space Percentage * Fee for Primary Residence
(E) = (B) * (D) $5,396 * 35% = $1,893.49
Fee Table for Primary Residence (if it were new)
Single Family Residential
Small (<1,500 sq. ft.) $4,030
Medium (1,501 to 2,500 sq. ft) $4,868
Large (> 2,500 sq. ft.) $5,396
Multiple Family Residential
Small (<1,500 sq. ft.) $1,128
Medium (1,501 to 2,500 sq. ft.) $1,363
Large (> 2,500 sq. ft.) $1,511
Mobile Home in Park
Small (<1,500 sq. ft.) $2,775
Medium (1,501 to 2,500 sq. ft.) $3,352
Large (> 2,500 sq. ft.) $3,716
Retirement/Senior Residential
Small (<1,500 sq. ft.) $780
Medium (1,501 to 2,500 sq. ft.) $942
Large (> 2,500 sq. ft.) $1,045
TOTAL Total Mitigation Fees $
Credits Applied $
Net Mitigation Fees $
A-2
Example 3: 1,000 Sq. Ft. Accessory Dwelling Unit; 2,500 Sq. Ft. Primary Residence Accessory Dwelling Unit (ADU) RTMF Calculation Form
Owner Contractor
Permit Reference Number Permit Type
Property ID Job Address
Date
Primary Residence
Property ID APN: 123-456-789
Land Use Category Single Family Residential Medium
Building Square Feet (A) 2,500
(excluding garage and other uninhabitable space)
Fee for Primary Unit, if it were new (B) $4,868
(See table below)
ADU Building Square Feet (C)
(excluding garage and other uninhabitable space) 1,000
Exempt (Y or N)
(Exempt if ADU square feet < 750) N
If Not Exempt (Exempt = N), provide information below:

ADU Percentage [(D) = (C)/(A)]
(ADU Sq. Ft. / Primary Residence Sq. Ft.) 40%
ADU RTMF Calculation
ADU Floor Space Percentage * Fee for Primary Residence
(E) = (B) * (D) $4,868 * 40% = $1,947.10
Fee Table for Primary Residence (if it were new)
Single Family Residential
Small (<1,500 sq. ft.) $4,030
Medium (1,501 to 2,500 sq. ft) $4,868
Large (> 2,500 sq. ft.) $5,396
Multiple Family Residential
Small (<1,500 sq. ft.) $1,128
Medium (1,501 to 2,500 sq. ft.) $1,363
Large (> 2,500 sq. ft.) $1,511
Mobile Home in Park
Small (<1,500 sq. ft.) $2,775
Medium (1,501 to 2,500 sq. ft.) $3,352
Large (> 2,500 sq. ft.) $3,716
Retirement/Senior Residential
Small (<1,500 sq. ft.) $780
Medium (1,501 to 2,500 sq. ft.) $942
Large (> 2,500 sq. ft.) $1,045
TOTAL Total Mitigation Fees $
Credits Applied $
Net Mitigation Fees $
A-3
APPENDIX B:

Guidelines for Administration of
Programmed Projects in the
Adopted Five-Year
Transportation Improvement Program
Appendix B
July 13, 2023
Economic & Planning Systems, Inc. (EPS) B-1
Annual Review of Five-Year TIP
Once a Five-Year TIP is adopted by the Executive Committee, the TIP shall be incorporated into and governed by these guidelines, the Administrative Plan, and the Strategic Plan in accordance with AB 1600. NCTC staff should meet with the Technical Advisory Committee annually to review the status of all programmed projects on the Five-Year TIP and bring any project adjustment requests to the Executive Committee for approval. The goals of the annual review process are as follows:
 To update project cost estimates.
 To review project status.
 To determine the continued viability of projects.
 To review the backlog of reimbursement projects.
 To address local jurisdiction issues.
 To address compliance with AB 1600.

Annual Adjustments to Five-Year TIP
In accordance with the Five-Year TIP and the original reimbursement agreement with the NCTC (lead jurisdiction), all approved projects’ funding and schedules are directly tied to critical milestones. As such, requests to change a project’s funding or schedule shall necessitate an amendment to the original agreement and the adopted Five-Year TIP.

Annual Five-Year TIP adjustments could include, but are not limited to:
 Scope of work reductions or additions
 Project or phase delays
 Project or phase cancellations
 New shelf-ready network projects being added as replacement projects  Project or phase advances
Levels of Approval for Five-Year TIP
Adjustments
Executive Committee
The following shall be approved and adopted by the Executive Committee as required in the Administrative Plan:

1. Annual updates to the TIP.

2. Requests to increase total RTMF funding allocations to projects in the TIP.

These requests may be made by the local jurisdiction administratively outside of the annual TIP update cycles if deemed necessary by one of the Appendix B
July 13, 2023
Economic & Planning Systems, Inc. (EPS) B-2
participating jurisdictions and NCTC management due to unforeseen circumstances that necessitate immediate action. Such unforeseen circumstances shall include, but not be limited to, higher than expected bid prices. NCTC staff will obtain action from the Executive Committee in these cases either by calling for a Special Executive Committee meeting or through individual consultation.

3. Administrative requests to advance funds or adjust project schedules on TIP approved projects, upon the recommendation of the Administrative Committee. Such advancements are subject to the following conditions:
 Jurisdiction’s proof of readiness to move forward with project.  Confirmation that RTMF current cash flow can support the advancement or change.

NCTC Executive Director
The NCTC Executive Director shall be responsible for the review and approval of the following changes to an approved TIP, including the review and approval of any necessary agreements:

1. Change in lead jurisdiction, with the written consent of both the transferring and accepting lead jurisdiction.

2. Cancellation of project upon request of the local jurisdiction. In the event of cancellation, all RTMF funds programmed to said project shall revert to the RTMF Trust Account.

3. Approval of final completion of the project. Upon notification from the jurisdiction that a project has been completed, all unused funds programmed for that project shall revert to the RTMF Trust Account.

4. All other administrative requests, upon consultation with the Administrative Committee.

Administrative Committee
The Administrative Committee shall have the following responsibilities:

1. Provide review and approval of requests to move funds within project categories (environmental, design, etc.) administratively, contingent upon participating jurisdiction’s certification of viability of all phases.

2. Provide recommendations to the NCTC Executive Director on any other requests that are deemed administrative in nature by the Executive Director.

All administrative adjustments will be submitted to the Executive Committee as part of the next Annual Review Report for final adoption.

Appendix B
July 13, 2023
Economic & Planning Systems, Inc. (EPS) B-3
Obligating Programmed Funds
The RTMF Program has established the policy that construction projects take priority, and therefore NCTC limits the obligation of RTMF dollars. NCTC has two options by which to obligate RTMF. In both options, steps 1, 2 and 3 (Option A) or 6 (Option B) must be completed by the local jurisdiction to ensure RTMF funding can be made available for use on an eligible project. Since RTMF project funds are generally obligated on a first come first served basis, failure to follow the prescribed steps for either option may preclude a project sponsor from receiving RTMF payments for completed work until sufficient funds are available to be obligated.

Option A
Funding for a project programmed in the Five-Year TIP is not considered obligated by NCTC until certain steps outlined below have been accomplished by the local jurisdiction.

1. Ensure that funding for the project phase is programmed in the current year of an adopted Five-Year TIP.

2. Ensure that there is a signed (executed) reimbursement agreement that matches the funding amount with the funding amount of the project phase in the adopted TIP.

3. Submit an invoice for RTMF eligible work prior to the end of the fiscal year to obligate the project phase funding. At the time of submitting the first invoice, the project sponsor will be required to submit all necessary supporting documentation (not previously submitted) in accordance with the provisions of the reimbursement agreement.

4. NCTC will obligate the entire phase of the project if there is available revenue at the time the invoice is submitted.

Option B
Funding for a project programmed in the Five-Year TIP is not considered obligated by NCTC until the steps outlined below have been accomplished by the local jurisdiction.

1. Ensure that funding for the project phase is programmed in the current year of an adopted Five-Year TIP.

2. Ensure that there is a signed (executed) reimbursement agreement that matches the funding amount with the funding amount of the project phase in the adopted TIP.

Appendix B
July 13, 2023
Economic & Planning Systems, Inc. (EPS) B-4

3. Send NCTC a letter of notice of intent to issue a request for proposal (RFP), solicit bids, make an offer to purchase ROW, or other similar actions to verify that sufficient funding is available and that funds are obligated and reserved exclusively for the particular project phase.

4. Receive a notice of obligation from NCTC within 14 working days of receipt of the notice of intent confirming the amount of funding that is obligated and reserved exclusively for the particular project phase. Alternatively, the project sponsor will receive a notice of deferred obligation if NCTC determines that insufficient funds are available for the project phase to be obligated.

5. Award the project and execute a contract within four months of receipt of the notice of obligation from NCTC, and send a letter of confirmation of award to NCTC, including evidence of a Board/Council action relating to the project award and contract execution.

6. Commence project work and submit the first invoice for payment within nine months of receipt of a letter of obligation by NCTC to preserve fund obligation.

At the time of submitting the first invoice, the project sponsor will be required to submit all necessary supporting documentation (not previously submitted) in accordance with the provisions of the reimbursement agreement.

If a contract has not been executed within four months of receipt of the notice of obligation from NCTC (step 5), there will be a review of the project status. Based on the review of project status, NCTC will either:

1. Extend the fund obligation for up to a total of nine months from the notice of obligation if the project sponsor can demonstrate a realistic expectation that the project will be awarded and a confirmation of award can be provided to NCTC within that time frame; or

2. De-obligate the funds.

Similarly, if the first invoice has not been submitted to NCTC within nine months of receipt of the letter of obligation (step 6), there will be a review of the project status. Based on the review of project status, NCTC will either:

1. Extend the fund obligation for up to an additional nine months if the project sponsor can demonstrate a realistic expectation that the project work will commence and a first invoice is submitted within that time frame; or

2. De-obligate the funds.

Appendix B
July 13, 2023
Economic & Planning Systems, Inc. (EPS) B-5
Project Priorities and Expenditure Plans
Setting project priorities and establishing an Expenditure Plan are two critical steps necessary in implementing a mitigation fee program. In Exhibit 7, the RTMF Capital Improvement Program, there is a column titled Funding Priority where NCTC will record project priorities once they are adopted.

Exhibit 8, the RTMF Expenditure Plan, will be based on the project priorities in Exhibit 7 and an assumed revenue generation across the twenty years of the program, with 30 percent of the funding from the fee collections set aside for repayment of the bonds issued for the Dorsey Drive Interchange project. Once the project priorities have been adopted by NCTC, they will be used to allocate the funding available for other projects on a year-by-year basis. The project priorities used in the Expenditure Plan can only be changed by unanimous vote of the NCTC Executive Committee.

Appendix B
July 13, 2023
Economic & Planning Systems, Inc. (EPS) B-6
Exhibit 7. RTMF Capital Improvement Program
Updated Cost
Estimate
% of Need
Attributable
to New
Development
Costs
Attributable
to New
Development
Funds from Other
Sources Beyond
Amount Needed
for Existing
Deficiencies
RTMF Funds
Currently Available
or Collected in
Prior Years
Amount
Potentially
Collectable
from RTMF
Funding Priority
(to be determined)
(A) (B) (C) = (A)*(B) (D) (E) (F)=(C)-(D)-(E)
1 SR-49 Interchange Dorsey Drive $24,000,000 33% $7,991,555 $3,377,164 $2,729,732 $1,884,6592 E.Main St @ Bennett St/Richardson St $1,500,000 100% $1,500,000 $0 $1,500,000 $03 SR-49 SB PM 13.1 to PM 11.0 (SB) $21,000,000 48% $10,040,404 $7,440,404 $0 $2,600,0004 McKnight Way Interchange @ S. Auburn St/La Barr Meadows Rd $9,663,269 100% $9,663,269 $2,000,000 $0 $7,663,2695 McCourtney Rd @ SR 20 EB Ramps $2,083,969 63% $1,317,068 $0 $0 $1,317,0686 SR 20/49 NB Ramps @ Idaho Maryland Rd $1,847,696 100% $1,847,696 $0 $0 $1,847,6967 SR 20/SR 49 @ Uren St $1,457,566 39% $568,304 $0 $0 $568,3048 Brunswick Road @ SR 174/Colfax Highway $1,384,179 100% $1,384,179 $0 $0 $1,384,1799 SR-49 @ Coyote St $468,604 43% $199,938 $0 $0 $199,938 10 100% $349,302
Total $63,405,283 $34,512,413 $12,817,568 $4,229,732 $17,814,415 54% 20% 7% 28%
Admin Costs and 5-year reviews (2% of program)As a percent of total costs for needed projects Project
ID Facility Location
Appendix B
July 13, 2023
Economic & Planning Systems, Inc. (EPS) B-7
Exhibit 8. RTMF Expenditure Plan
Fiscal
Year
Anticipated
Revenue
Share of Revenue for
Dorsey Drive (30% until
Bonds are paid off)
Cumulative Funding
for Dorsey Drive
Share of Revenue
for Other Projects Expense
Balance of Funding
Available for All
Other Projects Projects
(A) (B) (C) = Previous(C) + (B) (D)=(A)-(B) (E) (F)=Previous(F)+(A)-(E) 22-Jul 22,115,341 $ 91,702 $
2023/24 886,136 $ 265,841 $ 22,381,182 $ 620,295 $ 265,841 $ 711,997 $ #1 Dorsey Drive bonds 2024/25 886,136 $ 265,841 $ 22,647,023 $ 620,295 $ 265,841 $ 1,332,292 $ #1 Dorsey Drive bonds 2025/26 886,136 $ 265,841 $ 22,912,863 $ 620,295 $ 265,841 $ 1,952,587 $ #1 Dorsey Drive bonds 2026/27 886,136 $ 265,841 $ 23,178,704 $ 620,295 $ 265,841 $ 2,572,882 $ #1 Dorsey Drive bonds 2027/28 886,136 $ 265,841 $ 23,444,545 $ 620,295 $ 265,841 $ 3,193,177 $ #1 Dorsey Drive bonds 2028/29 886,136 $ 265,841 $ 23,710,385 $ 620,295 $ 265,841 $ 3,813,472 $ #1 Dorsey Drive bonds 2029/30 886,136 $ 265,841 $ 23,976,226 $ 620,295 $ 265,841 $ 4,433,767 $ #1 Dorsey Drive bonds 2030/31 886,136 $ 23,774 $ 24,000,000 $ 862,362 $ 23,774 $ 5,296,128 $ #1 Dorsey Drive bonds 2031/32 886,136 $ 886,136 $ 6,182,264 $
2032/33 886,136 $ 886,136 $ 7,068,400 $
2033/34 886,136 $ 886,136 $ 7,954,535 $
2034/35 886,136 $ 886,136 $ 8,840,671 $
2035/36 886,136 $ 886,136 $ 9,726,807 $
2036/37 886,136 $ 886,136 $ 10,612,942 $
2037/38 886,136 $ 886,136 $ 11,499,078 $
2038/39 886,136 $ 886,136 $ 12,385,213 $
2039/40 886,136 $ 886,136 $ 13,271,349 $
2040/41 886,136 $ 886,136 $ 14,157,485 $
2041/42 886,136 $ 886,136 $ 15,043,620 $
2042/43 886,136 $ 886,136 $ 15,929,756 $
Total 17,722,712 $ 1,884,659 $ 15,838,053 $ 1,884,659 $

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 12
Subject: Second Reading and Consideration of Ordinance
2023-10: An Ordinance of the City of Nevada City, California Imposing a Special Transactions and Use Tax to Be
Administered by the California Department of Tax and Fee Administration to Fund the City’s Wildfire Prevention and Mitigation Program.

From: Sean Grayson, City Manager
Date: October 28, 2023
Reviewed & Approved:

City Manager:

City Attorney:

Recommended Action: Hold second reading and adopt the ordinance. *Adoption requires a 4/5 or greater approval by the City Council.

ISSUE STATEMENT AND DISCUSSION:

On October 18, 2023 at their regular City Council meeting, the City Council adopted Resolution 2023-48:

A Resolution of the City of Nevada City, California, Submitting a Special Transactions and Use Tax Measure to the Voters at the March 5, 2024 General Municipal Election and Taking Certain Related Actions; Conducted the first reading of Ordinance 2023-10: An Ordinance of the City of Nevada City, California Imposing a Special Transactions and Use Tax to Be Administered by the California Department of Tax and Fee Administration to Fund the City’s Wildfire Prevention and Mitigation Program; and Adopted the Nevada City Wildfire Prevention and Mitigation Plan as Developed by the Nevada City Fire Safety Advisory Committee. This action provides a second reading and adopts Ordinance 2023-10. The following is the information provided on October 18, 2023:

On October 4, 2023, the Nevada City City Council provided direction to staff to prepare the required documents for the City Council to consider the placement of a sales tax measure for a Wildfire Prevention and Mitigation Program on the March 2024 ballot. The presentation provided by staff at the meeting is attached. The City Council directed that the items return to the October 18, 2023, City Council meeting with a recommendation from the Fire Safety Advisory Committee on an action plan for the program.

The City’s Fire Safety Advisory Committee met on October 12, 2023, and reviewed and updated the attached Wildfire plan for the City Council’s consideration the City Council approve the attached Wildfire Prevention and Mitigation Plan and consider funding the plan through the proposed sales tax measure. The Action Plan includes proposed areas of work, actions and timelines and is based on the previous work and recommendations of the committee which includes support for actions related to public safety, vegetation management / fuels mitigation, and community education and outreach.

A draft list of actionable items and their annual expense related to a draft program implementation is provided below.

Actionable Item Cost
City property defensible space and fuels maintenance $450,000 Roadside hardening $50,000
Evacuation route planning, maintenance, and signage $20,000 Emergency siren installation and maintenance $15,000
Education and outreach $150,000
Firewise Community microgrants $50,000
Curbside green waste program $50,000
Home hardening grants $100,000
Maintenance of Plans (CWPP, Action Plan, Urban Forestry) $50,000 Grant writing and grant matching $100,000
Creation and maintenance of temporary refuge areas $10,000 Functional evacuation exercises $5,000
Private property partnership project grants $100,000
Total $1,150,000
The city has already budgeted for a new Community Risk Reduction and Outreach Officer to oversee the program and its implementation at an annual cost of $150,000 for the position, vehicle, and related work expenses. Additionally, the city has secured $100,000 a year for five years to provide for a wildfire fuels mitigation equipment operator through a Proposition 64 grant. Removing the combined $250,000 annual investment already accounted for by the City, the net annual need to fund the program is $900,000.

The City has an existing Public Safety Tax (Measure M) that ensures the City’s fire station is staffed under contract year-round. Using Measure M and general fund monies Nevada City enjoys the presence of three fire stations staffed year-round within the City limits: Nevada City Fire Station #5 on Providence Mine Road, Nevada County Consolidated Fire Station 84 on Coyote Street, and CALFIRE station 20 on Ridge Road. All three stations are dispatched from the same location and can and do respond to calls within the City based upon a closed resource agreement among the agencies. The consolidated Battalion Chief (shift commander) and Grass Valley Fire Department Battalion Chief are also both stationed in Nevada City.

Given the high level of staffing provided through the existing public safety tax, there are no new responders included in the funding summary above.

Tax Considerations
The proposed tax is a 0.5% special sales tax (requiring a 2/3 voter approval) tax anticipated to generate $900,000 in annual revenue. The proposed tax has a five-year sunset and an oversight committee. The specific uses of the tax include:

Activities and services designed to prevent wildfires and mitigate wildfire risks, such as: (i) reducing flammable vegetation throughout the City, (ii) designating, improving, maintaining and expanding emergency evacuation routes and refuge areas, and conducting evacuation training, (iii) providing education, outreach, grant funding, and community training on wildfire prevention and building/home hardening, (iv) developing and implementing enhanced community-oriented defensible space inspection practices, (v) establishing and maintaining emergency communications and early warning systems, and (vi) seeking outside grants for the above.”
Tax Measure Description
“Exclusively to fund a locally controlled Wildfire Prevention and Mitigation Program that includes the reduction of flammable vegetation throughout Nevada City; the improvement and maintenance of emergency communications/early warning systems, evacuation routes, and temporary refuge areas; the implementation of community oriented defensible space practices; and other activities and services; shall the measure adding a 0.5% Nevada City sales tax, providing approximately $900,000 annually over a five year period, monitored by a Citizen’s Oversight Committee, be adopted?” Process
Adoption of the resolution submits the tax measure and ordinance, which is an appendix to the resolution, to the voters on the March 5, 2024, election ballot. In order for the tax to go into effect, the ordinance must both be (1) adopted directly by the City Council (by a two-thirds vote of all its members) under the City Council’s power to adopt ordinances and (2) adopted by the voters. The ordinance should be introduced for first reading at the October 18, 2023, City Council meeting and adopted at the November 8, 2023 City Council meeting. If the tax receives a 2/3 or greater vote it will go into effect the 10th day following adoption by the voters.

Adoption of the Nevada City Wildfire Prevention and Mitigation Plan will allow the Fire Safety Advisory Committee to continue to work to develop implementation planning for related activities using a City Council adopted document.

Activities Prior to March 2024
Upon adoption of the action plan by the City Council, it will be referred back to the Fire Safety Advisory Committee to make recommendations and provide input toward timely implementation of the plan and to coordinate efforts should the ballot measure pass in March of 2024. The City anticipates hiring the grant funded wildfire fuels mitigation equipment operator position by the end of November 2023. The position will be responsible for beginning the process of roadside fuels abatement and slivers abatement given existing funding. Similarly, the city anticipates hiring the budget approved Community Risk Reduction and Outreach Officer position by the end of January 2024. The position will be responsible for, among other things, coordinating with the Fire Safety Advisory Committee to transition the Action Plan into implementation. The city is currently engaging a consultant to develop the first steps toward a Nevada City specific Community Wildfire Specific Plan (CWPP) in spring of 2024.

FINANCIAL AND/OR POLICY IMPLICATIONS:

None with this action. The actual funding amount of a potential tax would be based upon the rate and return on a quarterly basis should the tax measure be placed on the ballot and approved by the voters. Adoption of the resolution will incur a future cost to the city payable to the County of Nevada related to the City’s share of the election cost.

STRATEGIC PLAN ALIGNMENT:

This action is consistent with the strategic initiative of Fire: Wildfire and structural fire prevention, mitigation, and education. This action is also consistent with the embedded strategic initiative of Engagement: Community engagement and communications with stakeholders.

ENVIRONMENTAL CONSIDERATIONS:

Not applicable.

LEGAL REVIEW:

City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.

ATTACHMENTS:

Resolution 2023-48
Ordinance 2023-10
Action Plan from FSAC
Presentation on Potential Tax from October 4, 2023
RESOLUTION 2023-48

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEVADA

CITY, CALIFORNIA, SUBMITTING A SPECIAL TRANSACTIONS AND USE TAX MEASURE TO THE VOTERS AT THE MARCH 5, 2024

GENERAL MUNICIPAL ELECTION AND TAKING CERTAIN RELATED

ACTIONS
WHEREAS, the establishment of a Wildfire Prevention and Mitigation Program (the “Wildfire Program”) would benefit the health, safety and welfare of the people of Nevada City; and
WHEREAS, to create the most effective possible Wildfire Program, it is desirable to establish a dedicated source of funding that can be used only for Wildfire Program costs; and WHEREAS, Revenue & Taxation Code Section 7285.91 authorizes the City Council to levy a transactions and use tax for specific purposes if the ordinance proposing that tax is approved by a two-thirds vote of all members of the City Council and the tax is subsequently approved by a two-thirds vote of the qualified voters of the city voting in an election on the issue; and
WHEREAS, the City’s General Municipal Election (the “Election”) has been called for March 5, 2024; and
WHEREAS, The City Council desires to submit to the voters at the Election an ordinance that would create a transactions and use tax to fund the Wildfire Program.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEVADA CITY, CALIFORNIA, DOES RESOLVE AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are a substantial part of this resolution.

SECTION 2. The City Council hereby orders, pursuant to Section 9222 of the Elections Code, that the ordinance attached hereto as Exhibit “A” and incorporated herein by reference (the “Ordinance”) be submitted to the voters at the Election. Adoption of the Ordinance requires a two-thirds vote of the qualified voters of the city voting in an election on the issue.

SECTION 3. The question submitted shall appear on the ballot as follows:

Resolution No. 2023-48 Page 2 of 3
Exclusively to fund a locally controlled Wildfire Prevention and Mitigation Program that includes the reduction of flammable vegetation throughout Nevada City; the improvement and
maintenance of emergency communications/early warning systems, evacuation routes, and temporary refuge areas; the implementation of community oriented defensible space practices; and other activities and services; shall the measure adding a 0.5% Nevada City sales tax, providing approximately $900,000 annually over a five year period, monitored by a Citizen’s Oversight Committee, be adopted?
YES
NO
SECTION 4. The City Clerk is instructed to transmit the Ordinance to the City Attorney along with a request that an impartial analysis be prepared pursuant to Elections Code Section 9280.

SECTION 5. In all particulars not recited in this Resolution, the Election shall be held and conducted as provided by law for holding municipal elections.

SECTION 6. Notice of the time and place of holding of the Election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election in the time, form, and manner as required by law.

SECTION 7. Pursuant to Section 10400 et seq. of the Elections Code, the Board of Supervisors of Nevada County is requested to consolidate the election on this ballot measure with other elections held on the same day in the County.

SECTION 8. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to Section 10411 of the Elections Code.

SECTION 9. Pursuant to Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the County elections office to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the City agrees to reimburse the County, in accordance with current County pro-rations and allocation procedures.

SECTION 10. Rebuttal arguments will be accepted for this measure, and the City Council reiterates its adoption of the provisions of Section 9285 of the Elections Code regarding rebuttals.

SECTION 11. The City Clerk shall file a certified copy of this Resolution with the Board of Supervisors and the County elections office.

SECTION 12. The City Clerk shall certify to the passage and adoption hereof.

PASSED AND ADOPTED at a regularly scheduled meeting of the Nevada City City Council on the 18th day of October 2023 by the following vote.

Resolution No. 2023-48 Page 3 of 3
AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________
Daniela Fernández, Mayor
ATTEST:
________________________________
Niel Locke, City Clerk
1 ORDINANCE NO. 2023-10

AN ORDINANCE OF THE CITY OF NEVADA CITY, CALIFORNIA

IMPOSING A SPECIAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY

THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION TO FUND THE CITY’S WILDFIRE PREVENTION AND MITIGATION PROGRAM

THE PEOPLE AND CITY COUNCIL OF THE CITY OF NEVADA CITY DO ORDAIN AS FOLLOWS:

Section 1. Chapter 3.56 is added to Title 3 (Revenue & Finance) of the Nevada City Municipal Code to read as follows:

Chapter 3.56 Wildfire Prevention and Mitigation Special Transactions and Use Tax

3.56.010 Short Title
This ordinance shall be known as the Nevada City Wildfire Prevention and Mitigation Special Transactions and Use Tax Ordinance of 2024. The City of Nevada City hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.

3.56.020 Operative Date
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.

3.56.030 Purpose
This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
2 D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.

3.56.040 Contract with State
Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

3.56.050 Transactions Tax Rate
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.

3.56.060 Place of Sale
For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

3.56.070 Use Tax Rate
An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 0.5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

3.56.080 Adoption of Provisions of State Law
Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions 3 of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.

3.56.090 Limitations on Adoption of State Law and Collection of Use Taxes In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

3.56.100 Permit Not Required
4 If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance.

3.56.110 Exemptions and Exclusions
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 5 C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
6 3.56.120 Amendments
All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.

3.56.130 Enjoining Collection Forbidden
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

3.56.140 Severability
If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

3.56.150 Creation of Wildfire Risk Mitigation Program
There is hereby created a Wildfire Prevention and Mitigation Program for the City of Nevada City. Said program shall comprise the following:

Activities and services designed to prevent wildfires and mitigate wildfire risks, such as: (i) reducing flammable vegetation throughout the City, (ii) designating, improving, maintaining and expanding emergency evacuation routes and refuge areas, and conducting evacuation training, (iii) providing education, outreach, grant funding, and community training on wildfire prevention and building/home hardening, (iv) developing and implementing enhanced community-oriented defensible space inspection practices, (v) establishing and maintaining emergency communications and early warning systems, and (vi) seeking outside grants for the above.

In any given year, the City Council shall have the authority to allocate the budget for the Wildfire Risk Mitigation Program amongst these activities, and the City need not engage in every authorized activity in every year. Unless otherwise provided by the City Council, the Wildfire Risk Mitigation Program shall terminate as a separate program of the City upon the final expenditure of the funds raised by the tax levied pursuant to this chapter.

3.56.160 Use of Proceeds and Plan for Expenditure
Proceeds of the taxes imposed by this chapter shall be deposited in a special account and shall be expended only for the Wildfire Prevention and Mitigation Program specifically described in Section 3.56.160.
7 3.56.170 Annual Report
The Finance Director shall, at least annually, file a report with the City Council stating both: (i) the amount of funds collected and expended, and (ii) the status of any expenditure authorized pursuant to Section 3.54.160 of this chapter. The annual report may be combined with any other financial report prepared by the City.

3.56.180 Oversight Committee
A. A Citizen’s Oversight Committee shall review the annual report required by Section 3.56.170 of this chapter and may make such recommendations to the City Council as it deems necessary or useful. The Committee may, by a majority vote of its membership, choose to publish a report, in which event such report, if approved by a majority of the members, shall be published on the City's internet page.

B. The Citizen’s Oversight Committee established pursuant to Section 3.54.170 of this Code shall serve as the Citizen’s Oversight Committee described in subdivision (A) of this section.

C. In the event the Citizen’s Oversight Committee established pursuant to Section

3.54.170 of this Code ceases to exist, the City Council shall establish a Citizen's Oversight Committee pursuant to this subdivision to perform the functions set forth in subdivision (A) of this section. The terms, composition, and specific duties of such Committee shall be established by resolution of the City Council; however, all members of the Committee shall be residents of the City. Members of the Citizen's Oversight Committee shall be appointed by the City Council, and any member may be removed from the Committee prior to the end of his or her term by a two-thirds vote of the Council. All meetings of the Committee shall comply with the provisions of the Ralph M. Brown Act (Gov't Code Section 54950, et seq.).

D. In the event the City Council, the Citizen's Oversight Committee, the City, any employee of the City, or any member of the City Council or the Citizen's Oversight Committee fails to take an action required by this Section, any court of competent jurisdiction may order that the action be taken. However, such failure to act shall not invalidate the City's authority to levy any tax or in any way affect the ongoing collection of any tax pursuant to this Chapter.

5.56.190 Termination
The taxes imposed by this Chapter shall terminate five years after the operative date established pursuant to Section 3.56.020 of this Chapter. For example, if the operative date of the taxes is October 1, 2024, then the final date the taxes shall be in effect is September 30, 2029.

Section 2. This Ordinance shall be effective only if approved by approved by a two-thirds vote of the qualified voters of the city voting on the ordinance at the March 5, 2024, general municipal election. If so approved, it shall become effective as of the 10th day following its adoption by the voters. The taxes imposed by this Ordinance shall be effective as of the dates set forth in Section 1.
8 INTRODUCED BY THE CITY COUNCIL ON OCTOBER 18, 2023 AND PASSED,

APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF NEVADA CITY this 8th day of NOVEMBER 2023 BY THE FOLLOWING VOTE.

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________
Daniela Fernández, Mayor
ATTEST:
________________________________
Niel Locke, City Clerk
ADOPTED BY THE VOTERS OF THE CITY OF NEVADA CITY AT THE MARCH 5, 2024, MUNICIPAL GENERAL ELECTION.
________________________________
Daniela Fernández, Mayor
ATTEST:
________________________________
Niel Locke, City Clerk

NEVADA CITY

WILDFIRE PREVENTION

AND MITIGATION PLAN

CONSIDERATIONS FOR POTENTIAL TAX FUNDING
OCTOBER 4, 2023

THE EXISTENTIAL THREAT / NEED
“Fearful of being the next paradise….” San Francisco Chronicle “Living under a time bomb….” The Washington Post
“They could be the next Paradise…” CBS News KPIX 5

EXISTING PLANS
“A wildfire that directly impacts Nevada City could impact up to 100% of all critical structures and has the potential to cost the residents of Nevada City the most financially and in loss of life.”
-Nevada City Local Hazard Mitigation Plan (LHMP)
The entire City most of the General Plan area is located within a Very High Fire Hazard Severity Zone and most of the areas surrounding the City are also in this zone (refer to Figure 10). One of the biggest safety concerns of the City is the large amount of fuel load located within the unincorporated lands surrounding the City. Wildfires can start in these areas and can spread to the City and can potentially become a catastrophic fire. During wildfire season, this becomes a major challenge to address when wind, temperature and humidity can combine to enlarge fires very quickly. Also, many roadways in the City are single-lane, some private that are not City-maintained which result in restrictive access with constrained evacuation capacity.”
-Climate Adaptation and Public Safety Element (CAPSE)
THE COMMUNITY’S INPUT & HISTORY
Most commonly referred to WEAKNESS: fire prevention and safety Most common referred to THREAT: Fire
-Nevada City Strategic Planning Process
Strategic Initiative of Fire:

Wildfire and structural fire prevention,
mitigation, and education
-Nevada City Strategic Plan 2022-2027

NEVADA CITY FIRE SAFETY ADVISORY COMMITTEE
Multiple recommendations for programs, policies,
and practices in the area of fire have come from
the committee.

The committee will present a Nevada City Wildfire
Prevention and Mitigation Plan for the City
Council’s consideration on October 18, 2023,
aligned with citywide needs.

A NEED FOR ACTION
There is a need for near term and ongoing action across multiple fronts. Generally, the actions needed fall into the following categories:
• Public Safety
• Community safety / Evacuation Routes
• Responder Safety
• Prevention Activities
• Fuels Management
• Vegetation
• Home Hardening
• Community Engagement and Education

EXISTING EMERGENCY RESPONSE CAPACITY
Existing Public Safety Tax (Measure M) ensures the City’s fire station is staffed under contract year-round.

Three staffed fire stations in Nevada City:
• Nevada City Fire Station #5
• Providence Mine Road
• Staffed Fire Engine and shift Battalion Chief
• Nevada County Consolidated Fire Station 84
• Coyote Street
• Staffed Fire Engine and shift Battalion Chief
• CALFIRE Station 20
• Ridge Road
• Staffed year round with one fire engine and seasonally with an additional fire engine, dozer, and hand crew

CURRENT ACTIVITIES IN SUPPORT
• Community Risk Reduction and Outreach Officer position funded in current fiscal year budget to serve as the point person for all related activities.
• Grant funding to provide a full-time fire fuels mitigation equipment operator for fuels abatement, defensible space, road hardening and support of community chipping.
• Funding approval to develop proof of concept fuels
abatement projects on three Nevada City “slivers” to serve as basis for future citywide treatment program.
• $111,000+ planning grant to develop a treatment plan and environmental documents in for the Deer Creek Hazardous Fuels Project.
• Anticipated funding for a city specific Community Wildfire Protection Plan (CWPP) based upon the currently
underway Countywide CWPP.

WHAT ELSE IS NEEDED / WHAT WOULD A TAX DO?
• Fuels removal and/or mitigation to support defensible space • Roadside hardening
• Evacuation route planning, maintenance, and signage
• Emergency notifications enhancement and exercises
• Education and outreach
• Firewise Community support
• Curbside green waste program
• Support for home hardening
• Community Wildfire Protection Plan
• Development of a Community Wildfire Protection Plan (CWPP) • Development of an Urban Forestry Plan
• Grant writing and grant matching
• Creation and maintenance of temporary refuge areas
• Functional evacuation exercises
• Support for private property defensible space creation

THE NEED OUTWEIGHS THE RESOURCES

TAX MEASURE POTENTIAL CONFIGURATION
• General Tax or Special Tax
• Tax Rate
• Duration of Tax / Sunset
• Oversight

TAX MEASURE POTENTIAL CONFIGURATION
• Specific Uses:
• Prevent wildfires.
• Reduce flammable vegetation throughout the city.
• Designate, improve, and train on emergency
evacuation routes.
• Improve education, outreach, and community training
on wildfire prevention and building / home hardening.
• Enhance community oriented defensible space
inspection practices.
• Establish and maintain emergency communications
and early warning systems.

FEEDBACK AND NEXT STEPS
• Stakeholder input, questions and suggestions
• City Council input, questions and suggestions
• Recommendations from Fire Safety Advisory Committee
Councilmembers Vice Mayor Petersen and Councilmember
Ceci
• City Council direction
• Fire Safety Advisory Committee meeting
• October 12, 2023 6pm
• City Council consideration
• October 18, 2023 6:30pm
(Draft) Nevada City Wildfire Prevention and Mitigation Plan 1 For City Council Presentation October 18, 2023
Developed by the Nevada City Fire Safety Advisory Committee Introduction: This document outlines a comprehensive plan to enhance Nevada City's resilience in the face of wildfires. It has been developed by the Nevada City Fire Safety Advisory Committee, drawing on research and past planning documents. Once approved by the committee, it will be presented to the City Council for adoption, with implementation led by city staff in collaboration with various stakeholders and agencies.

Identifying Key Areas: The plan centers on three strategic areas: Public Safety, Vegetation Management and Home Hardening, and Community Engagement and Education. Each of these areas requires involvement from the local community and engagement with regulatory agencies and partners at different levels of government. Successful implementation of this plan relies on a balanced approach, with participation from local Firewise Communities and stakeholders, as well as collaboration with regulatory agencies and non-profit partners.

Implementation Requirements: It's important to recognize that the resources currently available to the city fall short of what's needed to fully execute this plan. To ensure community safety, some version of this plan must be implemented with dedicated funding, staffing, and program development. The timeline for implementation depends on the availability of funding, and external sources beyond the General Fund will likely be necessary for timely execution.

While the demand for action exceeds the city's capacity, immediate attention must be given to specific actions outlined as follows and should be considered a priority list of actions. These actions are critical first steps in addressing Nevada City's fire resilience and safety within the framework of this plan.
• Begin engagement with Firewise Communities and neighborhoods to clarify and communicate evacuation routes and shelter-in-place options. • Begin the process of placing a dedicated tax initiative on the ballot for the March 5, 2024, election immediately.
• Engage the Grant Writers currently being evaluated by City Staff to acquire grants needed to complete this plan.
• Fill the program manager position to support plan implementation. • Use the mid-year budget process (February 2024) to identify possible funding to support the plan's implementation.
(Draft) Nevada City Wildfire Prevention and Mitigation Plan 2 For City Council Presentation October 18, 2023
Table 1 Public Safety (Evacuation and Prevention). This table identifies those actions to be taken to preserve life and minimize wildfire impacts on our community.

Strategic
Area Work Area Item Action Starting Date Who Funding Source Ordinance
or Policy
Change
Public Safety (PS)
Evacuation
(E)
PS.E.1
Engage internal and external fire and law enforcement
agencies to identify evacuation bottlenecks, routes, and shelter-in-place locations.
2023
PS.E.2
Engage with Firewise Communities and neighborhoods
to identify evacuation bottlenecks, routes, and shelterin-place locations.

Staff and
Firewise
Communities
PS.E.3
Explore the feasibility of warning systems that can
complement CodeRED for imminent danger to the
town.
2023
PS.E.4 Identify with signage and reduce fuel density in shelterin-place locations. 2023 PS.E.5 Clear vegetation along evacuation routes. 2024
PS.E.6 Educate the public on effective response to sirens and warnings. 2024
Prevention
(P)
PS.P.1 Conduct and evaluate annual parcel inspections. 2023 PS.P.2 Conduct and document fire hydrant testing program to ensure sufficient water pressure to fight fire. 2023
PS.P.3 Evaluate visibility of fire hydrants under all hazard conditions. 2024
PS.P.4 Create demonstration projects on City land. 2024 PS.P.5 Identify and protect critical infrastructure. 2024 (Draft) Nevada City Wildfire Prevention and Mitigation Plan 3 For City Council Presentation October 18, 2023
Table 2. Fuels Management (Vegetation Management and Home Hardening). These actions describe those efforts to be made that will reduce the ability of fire to move through Nevada City.

Strategic
Area Work Area Item Action Starting Date Who Funding Source Ordinance
or Policy
Change
Fuels Management (FM)
Vegetation (V)
FM.V.1
Maintain City land to the same standard as private land consistent with Chapter 8.10 "Vegetation Management,
Debris Removal, and Abatement" of the Nevada City
Municipal Code.
2023
Staff and
Firewise
Communities
FM.V.2 Create a legal framework for accessing private land for inspection by qualified inspectors. 2023
FM.V.3 Identify and publicize ordinance-compliant properties. 2024 FM.V.4 Provide green waste disposal / drop-off access for the entire community. 2024
Home
Hardening
[Commercial
and
Residential
Structures]
(HH)
FM.HH.1
Offer structure, deck, defensible space, home hardening, evacuation route, and property visits designed to educate the public about wildfire survivability.
2024
FM.HH.2 Collaborate with CAL FIRE to develop a building retrofit program.
2024
FM.HH.3 Work with hardware stores to feature home hardening supplies and materials. 2024
(Draft) Nevada City Wildfire Prevention and Mitigation Plan 4 For City Council Presentation October 18, 2023
Table 3. Community Engagement and Education. This table includes educational opportunities and programs that need to be developed to ensure that our community has useful, safe factual information.

Strategic
Area Work Area Item Action Starting Date Who Funding Source Ordinance
or Policy
Change
Community Engagement
& Education (CE)
Education
(E)
CE.E.1
Schedule and hold public forums about the Nevada City
Wildfire Prevention and Mitigation Plan and related
topics.
2023
Staff and
Firewise
Communities
CE.E.2 Develop multiple communication platforms to increase community engagement. 2023
CE.E.3 Establish education projects with other organizations. 2024 CE.E.4 Determine actions needed to ensure that Nevada City Homeowners have access to affordable fire insurance. 2024

CITY OF NEVADA CITY

CITY COUNCIL STAFF REPORT
MEETING OF: November 8, 2023 Agenda Item No. 13
Subject: Consideration of Adoption of Resolution No. 2023- 52: A Resolution of the City Council of the City of Nevada City, California Adopting the Nevada City Cannabis Equity
Assessment and Creating a Nevada City Cannabis Local Equity Program; and Authorizing a One-Time Fee Waiver /
Reimbursement for Equity Participants in an Amount Not-ToExceed $10,000.

From: Lisa McCandless, Interim City Planner
Sean Grayson, City Manager
Date: October 29, 2023
Reviewed & Approved:

City Manager:

City Attorney:

Recommended Action: Adopt the resolution and authorize the fee waiver.

ISSUE STATEMENT AND DISCUSSION:

On December 12, 2022, staff submitted an application for the California Governor’s Office of Business and Economic Development (Go-Biz) Cannabis Equity Grant program for Type 1 grant funding to conduct an equity analysis and develop an equity program in Nevada City in the amount of $48,729.86. The City was awarded the grant on January 31, 2023. On February 22, 2023, the City Council adopted Resolution 2022- 08 accepting the grant funding. On April 26, 2023, the City Council approved a contract with Cal Poly Humboldt Sponsored Programs Foundation/California Center for Rural Policy to develop a Nevada City Cannabis Equity Assessment (CEA) and a Nevada City Cannabis Local Equity Program (LEP) GO-Biz, in partnership with the Bureau of Cannabis Control, provides Cannabis Equity Grants Program for Local Jurisdictions. This program seeks to advance economic justice for populations and communities disproportionately affected by cannabis prohibition by providing funding to local jurisdictions that are committed to promoting equity in the legal cannabis marketplace and eliminating barriers to entering the regulated cannabis industry. This report presents for the Council’s review Cal Poly Humboldt Sponsored Programs Foundation/Center for Rural Policy assessment and program recommendations in compliance with GO-Biz standards.

It is believed that cannabis’ illegal status at the State and Federal levels has had a disproportionately negative impact on certain individuals who were convicted of cannabis offenses as well as on their families and communities, and the Assessment provides a data-rich identification of those areas of disproportionate impact. Over the years, cannabis criminal enforcement led to residents being labelled criminals for simple possession and other cannabis-related convictions that would carry little to no criminal consequences under California’s new regulations. Unfortunately, long lasting consequences of criminalization combined with high costs associated with entering the legal cannabis market creates limited opportunities for socioeconomically disadvantaged and otherwise impacted individuals looking to transition into Nevada City’s now legal cannabis industry.

To date several jurisdictions, such as the counties of Humboldt, Mendocino, and Nevada, as well as cities like Los Angeles, Long Beach, and Oakland, have implemented Equity Programs which provide permitting and financial assistance and various other forms of support to disproportionately impacted individuals who meet the jurisdictions’ Equity Program parameters. Notably, while certain parameters are similar, each jurisdiction has done a similar assessment in order to focus attention and resources on the needs of community members identified as disproportionately impacted.

The goals of the CEA and LEP are to assure that individuals who were adversely impacted by the criminalization of cannabis have access to assistance in entering the legal cannabis industry. The CEA provides recommendations to guide the City to develop its LEP. The CEA utilizes data to document Nevada City’s history with the prohibition and criminalization of cannabis, and its impact on the community. The findings and recommendations are shown in the attached CEA. Key to developing both the CEA and LEP was collecting information and feedback from staff and the community resulting interviews with: elected officials; City staff; cannabis special interest groups; attorneys with expertise in cannabis-related cases; representatives from communities impacted by cannabis criminalization; and Nevada City Police Department and Nevada County Sheriff’s Office staff.

HIGH LEVEL SUMMARY
The attached Cannabis Equity Assessment (CEA) provide details on the assessment analysis and recommendations for the initial LEP program design. The report and initial program criteria design are not static and will likely be revised to a) incorporate new data as it becomes available; b) align to process and criteria to better serve socioeconomically disadvantaged individuals applying for Cannabis permits; and c) to improve Nevada City’s LEP funding annual eligibility.

CEA Findings
Current Conditions in Nevada City

1. Most of Nevada City’s population is white, with Hispanic and American Indian residents being the prominent racial minorities.

2. The median age of Nevada City residents is more than 20 years older than the statewide median age.

3. Education attainment is higher countywide than the state average, both high school graduates and higher education.

4. A lack of gainful employment appears to be an issue for many Nevada County residents.

5. Nevada City and Nevada County have lower incomes and full-time earnings than the state average. Poverty rates are slightly higher but not significantly in Nevada City.

6. Cannabis use rates are elevated countywide. However, differences in cannabis use rates by race or ethnicity are minimal and insignificant and therefore cannot account for differences in arrest rates.

Impact and Equity Analysis

1. Cannabis cultivation remained an ‘open secret’ in Nevada City until the mid-2000s; law enforcement turned a blind eye to the illicit cannabis industry during this time. a. A growth in cannabis growing operations during the Green Rush (defined in the CEA) led to backlash from local officials and community members frustrated over the ramifications of local, illicit cannabis operations and the rise in associated criminal activity. b. By 2007, law enforcement and local officials shifted to a criminal stance on cannabis operations, enacting cannabis moratoriums and ordinances that limited parcel sizes and the number of plants one could legally grow, which particularly affected small-scale cannabis cultivators.
c. The criminal crackdown on cannabis operations in and around Nevada City came to an end when California voters passed Proposition 64 in 2016, which effectively decriminalized and regulated recreational cannabis business operations and use. d. By 2018 both Nevada County and Nevada City enacted regulations and ordinances that were concurrent with Proposition 64, leading to the legal era of the local cannabis industry.

2. Nevada City and Nevada County both experienced episodes of elevated cannabis arrest rates, including the late 1980s, the late 1990s and mid-2000s.

3. In the mid-2010s there were periods of exceptionally high civil asset forfeitures in Nevada County compared to the state average.

4. Countywide, Black individuals experienced elevated rates of felony drug arrests and cannabis arrests from the 1980s to 2020.

5. Proportionately more cannabis arrests (both sales and possession) were juveniles in Nevada City and Nevada County compared to the state average.

Existing Cannabis Industry and Barriers

1. High compliance and overhead costs are the leading barriers for small-scale legacy cultivators to enter the legal cannabis industry; these financial barriers are likely especially difficult for racial minority populations.

2. The lack of access to business and personal banking services make it difficult for individuals to enter the legal cannabis industry.

3. Limited knowledge and experience regarding administrative business operations and business acumen are the second biggest barriers for individuals to enter the legal cannabis industry.

4. There is still a large illicit cannabis industry in Nevada City and the surrounding areas, likely due to the barriers noted in section 4 of the CEA, especially the financial burden of starting a legal cannabis business and the complicated permitting process.

Preliminary LEP Participation Key Criteria
• Nonviolent Conviction & Arrest History
• Family Conviction
• Low to moderate income status
• Veteran Status
• Medicinal Consideration
• Residency Consideration
Adoption of the CEA and LEP is required to apply for future GO-Biz funding in support of the program.

Applications for the next round of Go-Biz funding are due December 14, 2023. Should Nevada City be successful in securing additional GO-Biz funds, staff will develop a program budget, which will be included in the FY 24-25 Recommended budget and will define (based on the amount awarded) the program design and specific benefits to equity applicants that area either looking to enter the legal cannabis market or seeking support from the City for their current licensed cannabis business. Grant funding may be used to provide financing directly to persons who qualify as an “equity applicant” or “equity licensee”, in the form of low/no-interest loans or grants, reduced or waived licensing fees, technical assistance, and mitigations that improve neighborhood compatibility among other activities defined in the program.

One-Time Equity Participant Fee-Waiver / Reimbursement
Should the City Council approve the CEA and LEP staff requests that the Council Approve a One-Time Fee Waiver / Reimbursement for Equity Participants in an Amount Not-To-Exceed $10,000. Staff would contact all existing cannabis permit holders and those with pending applications and ask them to complete the equity application to determine eligibility under the LEP. Those that qualify as equity participants would receive either a fee waiver or a partial reimbursement of fees for any paid in fiscal year 2023-24. All equity participants would be included, and the amount of the fee waiver / reimbursement would be even distributed from the $10,000 not to exceed the actual fees due or paid. For example, if there are ten (10) equity participants they would each receive a $1,000 fee waiver or reimbursement.

FINANCIAL AND/OR POLICY IMPLICATIONS:

Any future grant proceeds would be allocated to the proposed project based upon City Council approval and reflected in the subsequent proposed budget. The $10,000 fee waiver / reimbursement program would be funded from American Rescue Plan Act funds allocated for the program.

STRATEGIC PLAN ALIGNMENT:

This action is consistent with the strategic initiative of Business: Business, Industry, and Cannabis Support.

Specifically, the action addresses business initiative goal #8, “Actively pursue grants including Economic Development partnership opportunities and the Cannabis Equity Grant Program.” ENVIRONMENTAL CONSIDERATIONS:

None
ATTACHMENTS:
 Resolution No. 2023-52
 Nevada City Cannabis Equity Assessment
 Nevada City Cannabis Local Equity Program Manual
 Cal Poly Humboldt Sponsored Programs Foundation CEA and LEP Presentation Slides RESOLUTION 2023-52

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEVADA CITY,

CA ADOPTING THE NEVADA CITY CANNABIS EQUITY ASSESSMENT AND

CREATING A NEVADA CITY CANNABIS LOCAL EQUITY PROGRAM
WHEREAS, a wide range of cannabis activities have had a strong presence in Nevada City for decades, with large amount of cultivation, cannabis sales/possession, eradication efforts by law enforcement, and medical cannabis activism; and WHEREAS, the past criminalization of cannabis has had an impact on the city and its residents and there is a need for the creation of an equity program that provides assistance to qualifying local equity applicants; and
WHEREAS, Nevada City’s low-income populations and other populations have been disproportionately impacted by enforcement related to cannabis criminalization and the War on Drugs, yet those populations make up an increasing small portion of the City’s legal cannabis industry; and
WHEREAS, the mounting inequity and economic problems related to the local cannabis businesses have had a significant negative impact on the city’s population and overall economy; and
WHEREAS, the City Council finds that supporting small scale and marginalized cultivators and other cannabis businesses is necessary to improving the overall health, safety, and welfare of the City as a whole; and
WHEREAS, the California Cannabis Equity Act (SB 1294) was enacted to ensure that persons most harmed by cannabis criminalization and poverty be offered assistance to enter the multibillion dollar legal cannabis industry; and WHEREAS, Nevada City seeks to focus its cannabis local equity program on assisting small scale cannabis cultivators, distributors, manufacturers, and other cannabis businesses to overcome the identified barriers to entry, and build support for longer term viability through activities and implementation of supportive services; and WHEREAS, the City Council desires to use grant funds from the Governor’s Office of Business and Economic Development (GO-Biz) to assist local equity applicants and licensees through a new local equity program for commercial cannabis activities as described in its application for grant funds;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEVADA
CITY, CALIFORNIA, DOES RESOLVE AS FOLLOWS:

1. Adopts the Nevada City Cannabis Equity Assessment, attached as Exhibit A, and Nevada City Cannabis Local Equity Program Manual, attached as Exhibit B to focus on inclusion and support of individuals and communities in Nevada City’s cannabis industry who are linked to populations that were negatively or disproportionately impacted by cannabis criminalization and who represent cannabis business owners disproportionately impacted by high barriers to entry.

2. Creates the Nevada City Cannabis Local Equity Program.

PASSED AND ADOPTED at a regularly scheduled meeting of the Nevada City City Council on the 8th day of November 2023 by the following vote.

AYES:

NOES:

ABSTAIN:

ABSENT:
______________________________
Daniela Fernández, Mayor
ATTEST:
________________________________
Niel Locke, City Clerk
Nevada City Cannabis Equity Assessment
October, 2023
Abstract: The Nevada City Cannabis Equity Assessment provides a data-informed look at the impacts of cannabis criminalization and poverty on the Nevada City community. The assessment includes a separate local equity plan to guide the creation of a local cannabis equity program.

The program will assist community members who have experienced harm from decades of cannabis criminalization and poverty to participate in Nevada City’s legal cannabis industry.

TABLE OF CONTENTS
Section 1: OVERVIEW................................................................................................................... 1

1.1 Key Findings from the Assessment..................................................................................... 3

1.2 Data Sources........................................................................................................................ 4 Section 2. CURRENT CONDITIONS IN NEVADA CITY, CALIFORNIA..................................5

2.1 Overview of Nevada City and Surrounding Areas.............................................................. 5

2.2 Population............................................................................................................................ 5

2.3 Demographics...................................................................................................................... 6

2.4 Structural Conditions........................................................................................................... 8

2.4.a Educational Attainment...............................................................................................8

2.4.b Economic Conditions..................................................................................................8

2.4.c Housing..................................................................................................................... 11

2.4.d Cannabis and Drug Use Rates in California and Nevada County............................ 12

2.5 Findings............................................................................................................................. 13 Section 3. IMPACT AND EQUITY ANALYSIS..........................................................................15

3.1 Federal, State, and Local Cannabis Policy and Reforms...................................................15

3.1.a California Cannabis Policy and Reforms..................................................................15

3.1.b Medical Cannabis Era...............................................................................................16

3.1.c Legal Commercial Cannabis Era.............................................................................. 18

3.2 Impacts of Cannabis and the War on Drugs in Nevada City and Surrounding Areas....... 19

3.2.a Direct Impacts........................................................................................................... 20

3.2.b Secondary Impacts....................................................................................................23

3.2.c Disparities in Impacts................................................................................................24

3.2.d Age Disparities in Arrest Rates.................................................................................28

3.3 Findings............................................................................................................................. 29 Section 4. EXISTING CANNABIS INDUSTRY..........................................................................30

4.1 Review of Issued Permits in Nevada City and Application Process................................. 31

4.2 Application Process........................................................................................................... 31

4.3 Barriers to Entry.................................................................................................................31

4.3.a Financial - Startup and Overhead Costs....................................................................32

4.3.b Access to Personal and Business Banking Services................................................. 33

4.3.c Administrative...........................................................................................................34

4.3.d Education and Business Acumen..............................................................................34

4.4 Findings............................................................................................................................. 35 Appendix A: Detailed Arrest Data Sources and Limitations.........................................................36 Appendix B: Ordinance History.................................................................................................... 37 References......................................................................................................................................45 Section 1: OVERVIEW
In 2018, the state of California enacted SB 1294, commonly referred to as the California Cannabis Equity Act. The purpose of the act was to ensure persons most harmed by cannabis criminalization and poverty be offered assistance to enter the multibillion dollar cannabis industry as entrepreneurs or as employees with high quality, well-paying jobs.

According to SB 1294:

Cannabis prohibition had a devastating impact on communities across California and across the United States. Persons convicted of a cannabis offense and their families suffer the long-term consequences of prohibition. These individuals have a more difficult time entering the newly created adult-use cannabis industry due, in part, to a lack of access to capital, business space, technical support, and regulatory compliance assistance.

During the era of cannabis prohibition in California, the burdens of arrests, convictions, and long-term collateral consequences arising from a conviction fell disproportionately on Black and Latinx people, even though people of all races used and sold cannabis at nearly identical rates. The California Department of Justice data shows that from 2006 to 2015, inclusive, Black Californians were two times more likely to be arrested for cannabis misdemeanors and five times more likely to be arrested for cannabis felonies than white Californians. During the same period, Latino Californians were 35 percent more likely to be arrested for cannabis crimes than white Californians. The collateral consequences associated with cannabis law violations, coupled with generational poverty and a lack of access to resources, make it extraordinarily difficult for persons with convictions to enter the newly regulated industry….

It is the intent of the Legislature in enacting this act that the cannabis industry be representative of the state’s population, and that barriers to entering the industry are reduced through support to localities that have created local equity programs in their jurisdictions. (California Legislative Information, 2018, section 2) To accomplish this goal, the Act lays the groundwork for cities and counties to establish local equity programs to help reduce barriers to entry in the legal cannabis industry. These programs allow those most harmed by cannabis criminalization have a more equitable opportunity to participate in the industry. SB 1294 created a fund for local jurisdictions which have created cannabis equity programs to apply for funding to assist local cannabis entrepreneurs who have been harmed by cannabis criminalization or disadvantaged by poverty enter into and successfully operate in the state’s regulated cannabis marketplace. The purpose of this assessment is to 1 identify the impacts of cannabis criminalization and the War on Drugs as the City develops its cannabis equity plan.

The California Center for Rural Policy (CCRP) at Cal Poly Humboldt worked with Nevada City to create a Cannabis Equity Assessment (CEA) to:
● Provide a data-informed look at the historical impact of cannabis criminalization and poverty on the community.
● Provide policy recommendations to guide the city officials as they develop a local equity plan to help former disenfranchised community members successfully gain access to the economic opportunities in the legal cannabis industry.
● Make recommendations for future research that will help assure equity and diversity in the city’s emerging cannabis industry.

In order to accomplish these objectives, CCRP partnered with Nevada City stakeholders to create this CEA. As the state of California navigates the transition to a legal cannabis market, Nevada City is committed to equity as a key consideration in its local cannabis industry.

Nevada City’s local cannabis equity program should focus on assisting smaller scale cannabis entrepreneurs to support the city’s long-term economic vitality. It is the intent of the equity plan to provide assistance to communities impacted by cannabis criminalization so they are able to overcome barriers preventing equitable entry into the legal cannabis industry. 2 1.1 Key Findings from the Assessment
Current Conditions in Nevada City

1. Most of Nevada City’s population is white, with Hispanic and American Indian residents being the prominent racial minorities.

2. The median age of Nevada City residents is over 20 years older than the statewide median age.

3. Education attainment is higher countywide than the state average, both high school graduates and higher education.

4. A lack of gainful employment appears to be an issue for many Nevada County residents.

5. Nevada City and Nevada County have lower incomes and full-time earnings than the state average. Poverty rates are slightly higher but not significantly in Nevada City.

6. Cannabis use rates are elevated countywide. However, differences in cannabis use rates by race or ethnicity are minimal and insignificant and therefore cannot account for differences in arrest rates.

Impact and Equity Analysis

1. Cannabis cultivation remained an ‘open secret’ in Nevada City until the mid-2000s; law enforcement turned a blind eye to the illicit cannabis industry during this time. a. A growth in cannabis growing operations during the Green Rush led to backlash from local officials and community members frustrated over the ramifications of local, illicit cannabis operations and the rise in associated criminal activity. b. By 2007, law enforcement and local officials shifted to a criminal stance on cannabis operations, enacting cannabis moratoriums and ordinances that limited parcel sizes and the number of plants one could legally grow, which particularly affected small-scale cannabis cultivators.
c. The criminal crackdown on cannabis operations in and around Nevada City came to an end when California voters passed Proposition 64 in 2016, which effectively decriminalized and regulated recreational cannabis business operations and use. d. By 2018 both Nevada County and Nevada City enacted regulations and ordinances that were concurrent with Proposition 64, leading to the legal era of the local cannabis industry.

2. Nevada City and Nevada County both experienced episodes of elevated cannabis arrest rates, including the late 1980s, the late 1990s and mid 2000s.

3. In the mid-2010s there were periods of exceptionally high civil asset forfeitures in Nevada County compared to the state average.

4. Countywide, Black individuals experienced elevated rates of felony drug arrests and cannabis arrests from the 1980s to 2020.

5. Proportionately more cannabis arrests (both sales and possession) were juveniles in Nevada City and Nevada County compared to the state average. 3 Existing Cannabis Industry and Barriers

1. High compliance and overhead costs are the leading barriers for small-scale legacy cultivators to enter the legal cannabis industry; these financial barriers are likely especially difficult for racial minority populations.

2. The lack of access to business and personal banking services make it difficult for individuals to enter the legal cannabis industry.

3. Limited knowledge and experience regarding administrative business operations and business acumen are the second biggest barriers for individuals to enter the legal cannabis industry.

4. There is still a large illicit cannabis industry in Nevada City and the surrounding areas, likely due to the barriers noted in section 4, especially financial burden and the complicated permitting process.

1.2 Data Sources
To achieve the goals outlined above we analyze data from the following sources. For a comprehensive overview of data methods and limitations see Appendix A. ● The Decennial Census and American Community Survey (ACS) from the US Census Bureau
● Arrest data drawn from the Federal Bureau of Investigation (FBI) Crime Data Explorer ● Arrest data from the California Department of Justice ● Civil asset forfeiture data compiled from California Department of Justice ● Cannabis Use Rates from California School Climate, Health, and Learning Surveys (CalSCHLS)
● Cannabis Use Rates from the California Health Information Survey (CHIS) ● Nevada County 2020 Cannabis Equity Assessment (CEA)
● Nevada City 2016 Community Survey
● Nevada County website
4 Section 2. CURRENT CONDITIONS IN NEVADA CITY,

CALIFORNIA

2.1 Overview of Nevada City and Surrounding Areas
Nevada City (population of 3,097) is one of three municipalities in Nevada County in the northern range of the Eastern Sierra, located northeast of Sacramento, California. Nevada County was first inhabited by Nisenan Native Americans, and Nevada City proper was home to the Nisenan town of ‘Ustomah. However, during the 1849 Gold Rush, white settlers, with aspirations of striking it rich, discovered ‘Ustomah and quickly drove out the Nisenan people. Mining and timber became prominent industries in the area, quickly turning the newly established ‘Nevada’, or later officially known as ‘Nevada City’, into a boomtown. During this time, the Nisenan were forced into a single geographical location just outside Nevada City known as Cement Hill (County of Nevada, 2021).

Cement Hill would eventually be recognized by the federal government, though not until 1913.

This formal recognition included the establishment of the 76 acre Nisenan Rancheria (i.e., reservation). It also provided federal Tribal status for the Nisenan people. Adding to the injustice, however, the United States Congress later passed the 1958 California Rancheria Termination Act, and—along with 43 other Tribes—seized the Nisenan Rancheria, sold the land at auction, and rescinded the Nisenan’s federal recognition as a Native American Tribe. While 41 of these Tribes have since had their federal recognition restored, the Nisenan are one of the three still seeking said recognition. Federal termination notwithstanding, the Nisenan Tribe of the Nevada City Rancheria endure in their homeland (County of Nevada, 2021).

Over time, mining and timber harvesting industries declined in Nevada City and the surrounding area. City officials made efforts to preserve the historic qualities of Nevada City as a means of securing Nevada City’s vitality. In 1968, Nevada City established its historical district, creating a tourist economy for the community. Today Nevada City is known as the cultural hub of Nevada County (Nevada City, n.d.). A 2016 Community Survey found most Nevada City residents are satisfied with their quality of life, citing opportunities to attend cultural events, outdoor activities, and shopping in the business and historical districts (Nevada City, 2016).

2.2 Population
Nevada City, despite constituting only about 3% of the county's population, is situated in a densely populated region that includes Nevada City itself, the broader Nevada City area, and nearby places like Grass Valley. This area, along with the western part of the county (as indicated below), accounts for over 80% of the county's population. Consequently, county-level data are mainly shaped by the dynamics of these areas, particularly those in close proximity to Nevada City. Therefore, we rely on county-level data to draw insights about the dynamics and experiences of the Nevada City community, especially when city-level data are unavailable. 5 Additionally, a Nevada City official informed us that a significant number of residents in the Census tracts depicted below identify themselves as part of the Nevada City community. Hence, we have included these tracts in some of the Census data presented below.

Figure 2.1
Nevada County Population Distribution and Density (2017 - 2021) Note. Data sourced from the American Community Survey.

2.3 Demographics
Census data indicate Nevada City is predominantly white, not Hispanic, with this population accounting for 87.6% of city population compared to just 35.8% statewide. The Hispanic population is the next largest component of the population, accounting for 5.0% of the local population compared to 39.5% of the state population. The American Indian (AIAN) population in Nevada City is small in number; however, when including individuals with two or more racial backgrounds, the AIAN population represents approximately 4.3% of the city (US Census, 2020).1
1 This percentage is based on data from the 2020 Decennial Census, which reports a higher total population (3,152) than the ACS (3,097).
6 Figure 2.2
Race and Ethnicity (ACS 2017 - 2021)
Note. Data sourced from the American Community Survey, 2017 - 2021 estimates.

Nevada County’s population skews sharply older relative to the state overall. As shown below, the county’s population pyramid is inverted with a distinctive older cohort ranging from 55 to 74 years of age. At the city level, the median age is 59.2 compared to the state median of 37.

Figure 2.3
Age Distribution, Nevada County (ACS 2017 - 2021)2
2 The Nevada City population is not large enough to produce reliable estimates for an age distribution chart. 7 2.4 Structural Conditions
Structural conditions within the City potentially contribute to vulnerabilities that exacerbate the effects of the War on Drugs. These conditions include factors such as poverty, unemployment, and lack of affordable housing. Individuals with lower educational attainment may lack the skills necessary to navigate complex legal proceedings, and individuals with lower income may lack the financial autonomy to hire a lawyer of their choice. Therefore, such factors may exacerbate the consequences of cannabis arrest, charge, conviction, or related civil asset forfeiture.

2.4.a Educational Attainment
American Community Survey data indicate rates of educational attainment in Nevada City are either higher or consistent with state averages. Compared to 84% of the state population, 95% of Nevada City residents have a high school diploma. Higher education attainment is consistent with the state average, with approximately 36% of the population having a bachelor’s degree or higher compared to 35% of the statewide population. Countywide, rates of educational attainment are higher than the statewide average, with surrounding Census tracts having four-year degree attainment rates approaching 50%.

Figure 2.4
Educational Attainment (ACS 2017 – 2021)
Note. Horizontal bars represent 90% confidence intervals.

2.4.b Economic Conditions
While rates of educational attainment are strong in Nevada City and surrounding areas, the region appears to afford few prosperous economic opportunities. Compared to the state median household income of $84,097, the City has a median household income of just $53,534. Smaller household sizes and retired populations likely contribute substantially to this lower figure but not entirely. Median full-time earnings are $48,484 in Nevada City compared to $58,352 statewide, indicating lower wages are a key determinant of the area’s lower levels of household income. 8 Figure 2.5
Median Household Income, Nevada City and County (ACS 2017 – 2021) The poverty rate in Nevada City and surrounding Census tracts are elevated, although these differences with the state rate are not statistically significant. Due to the limited population of Nevada City and small populations of non-white, non-Hispanic people in Nevada County, survey data among these populations have high levels of uncertainty and reveal little about the socioeconomic conditions experienced by non-white residents of the community. Some inferences can be drawn by looking at county level data, which—consistent with state and national level trends—indicate higher rates of poverty for Black and Hispanic populations. 9 Figure 2.6
Poverty Rates by Race, Ethnicity, Sex, Age, and Employment (ACS 2017 – 2021) Note. Due to limited sample sizes, only county level poverty rate data are shown for subpopulations.

The 2016 Nevada City Community Survey revealed ‘employment opportunities’ was the leading challenge for the city among 17 issues. The average respondent scored the city’s ‘employment opportunities’ 3.7 with 3 being ‘neutral’ and 4 indicating ‘bad’ (Nevada City, 2016). Data suggest citizens’ frustrations with local employment opportunities may originate from a lack of gainful employment rather than a lack of any jobs, reflecting the lower median full-time earnings data above. As shown below, unemployment rates in the area are significantly lower than the state average. Labor force participation rates (the percentage of the population 16 years or older employed or looking for work) is significantly lower than the state average, but this is likely due the region’s substantial population of people in retirement years. County level data indicate labor force participation rates consistent with state averages for prime age workers between 25 to 54.

Therefore, lower wages as opposed to lack of jobs appear to be a factor behind the Nevada City and surrounding areas’ socioeconomic conditions.
10 The loss of blue collar industries (e.g., mining and timber) in the area may have been a motivation for younger residents to enter the illicit cannabis industry. The Nevada County 2020 CEA highlighted the relationship between intergenerational poverty and cannabis criminalization, particularly with the loss of blue collar jobs in Grass Valley, Penn Valley, and smaller towns like North San Juan and Washington. With a lack of gainful employment, many youth may have seen the illicit cannabis industry as a viable source of financial stability (California Center for Rural Policy, 2021).

Figure 2.7
Employment Including Prime Age Population (ACS 2017 – 2021)

2.4.c Housing
A 2016 survey in Nevada City revealed ‘access to affordable housing’ was a leading challenge for the community, with the average respondent indicating the challenge was between ‘neither good nor bad’ and ‘bad’ (Nevada City, 2016). While, as shown below, rates of homeownership are much higher than the state average in some areas surrounding Nevada City, rates of homeownership within Nevada City are consistent with the state average, despite the city’s significantly older population who typically have higher rates of home ownership. Moreover, data below indicate home affordability is substantially worse compared to state averages, partially reflecting the area’s lower wages. Across the region, homeowners pay a greater share of their income on housing expenses compared to state averages. 11 Figure 2.8
Housing and Cost Indicators (ACS 2017 – 2021)
Homelessness appears to also be a challenge for the area. The same survey indicates the issue of homelessness is top of mind for some Nevada City residents. Of 907 written responses, 140 specifically mentioned homelessness as a challenge for the City.

2.4.d Cannabis and Drug Use Rates in California and Nevada County To inform the analysis of arrest rates to follow, it is useful to analyze cannabis use rates.

Countywide, multiple data sources indicate youth cannabis use is significantly higher than the state average. Youth across grade levels are significantly more likely to report recent cannabis use, and roughly three times as many adolescents aged 12 to 17 report having tried cannabis in the past.

Adult use rates suggest elevated cannabis use is not a recent phenomenon in Nevada County.

About 80% of adults 18 to 64 in Nevada County report having tried cannabis compared to 53% statewide. Lifetime use of cannabis is similarly elevated among Nevada County seniors.

Figure 2.9
Youth Cannabis Use in a 30-Day Time Period (Cal SCHLS 2017 - 2019) 12 Figure 2.10
Ever Tried Cannabis in Lifetime (CHIS 2017 - 2021)
Note. Data sourced from California Health Information Survey (CHIS).

Looking at cannabis use by race and ethnicity reveals statewide racial and ethnic differences in cannabis use are minimal and statistically insignificant. Although there are some variations in recent cannabis use rates, in no case are these minor differences substantial enough to explain racial or ethnic disparities in cannabis arrest rates to follow.

Figure 2.11
Last Use of Cannabis by Race and Ethnicity (CHIS 2017 - 2021)

2.5 Findings

1. Most of Nevada City’s population is white, with Hispanic and AIAN individuals being the prominent racial minorities.

2. The median age of Nevada City residents is over 20 years older than the statewide median age.

3. Education attainment is higher countywide than the state average, both high school graduates and higher education.

4. A lack of gainful employment appears to be an issue for many Nevada County residents.

5. Nevada City and Nevada County have lower incomes and full-time earnings than the state average. Poverty rates are slightly higher but not significantly in Nevada City. 13 6. Cannabis use rates are elevated countywide. However, differences in cannabis use rates by race or ethnicity are minimal and insignificant and therefore cannot account for differences in arrest rates.
14 Section 3. IMPACT AND EQUITY ANALYSIS

3.1 Federal, State, and Local Cannabis Policy and Reforms The Federal War on Drugs
In 1970, the year before President Nixon declared drug abuse ‘public enemy number one,’ the US state and federal prison population was less than 200,000. Two decades later in 1990, the prison population had ballooned to over 700,000—about 400,000 of whom were serving time for non-violent offenses. By 2000, the prison population had reached 1.6 million (The Sentencing Project, 2021). It is perhaps unclear whether Nixon’s intended ‘public enemy number one’ was drug abuse or the drug user. As one Nixon aid recalled:

We knew we couldn’t make it illegal to be either against the war or black, but by getting the public to associate the hippies with cannabis and blacks with heroin, and then criminalizing both heavily, we could disrupt those communities. We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news (Baum, 2016).

Regardless of intent, the War on Drugs succeeded in disrupting communities, especially communities of color. However, this effect remained relatively mild until the Reagan Administration in the early 1980s, when policies, such as the 1986 Anti-Drug Abuse Act, severely increased penalties for drug offenses, including simple possession (United States Congress, 1986). Increased federal enforcement, policies such as mandatory minimum, and an arbitrary distinction between powdered and crack cocaine all contributed to an explosion in arrests and incarceration rates that overwhelmingly impacted Black and Hispanic populations.

Nevada County had an experience typical of the era. As discussed below, people of color in Nevada County experienced, and continue to experience, higher rates of felony drug arrests.

3.1.a California Cannabis Policy and Reforms
During the counterculture movement of the 1960s and 1970s, California experienced an extraordinary rise in cannabis arrests. By 1974, annual cannabis arrests increased 20 fold from the early 1960s to 103,097, most of which were felony arrests (Gieringer, 1999). The next year, legislators passed the Moscone Act which eliminated prison time for minor cannabis offenses.

The year after that, annual cannabis arrests fell to about 50,000 and felony arrests to about 20,000 (California Norml, 2021).

By the 1990s, cannabis arrests in California were once again on the rise (see figure below), and it was not until the California legislature reduced the penalty for an ounce or less of cannabis to an infraction in 2010 that the long-run rising trend in cannabis arrests ended. In 2010, Senate Bill 1449 reduced the penalty of cannabis possession of less than an ounce of cannabis from a misdemeanor to an infraction, resulting in a small fine without any jail time. In 2011, cannabis possession arrests statewide dropped precipitously.
15 Figure 3.1
California Cannabis Arrests per 100,000 Population
Note. Arrest data sourced from the FBI. Population data sourced from the Census Bureau.

By the early 1980s, state and local governments had initiated their own prohibition policies to combat local cannabis cultivation operations. This started with the Campaign Against Marijuana Planting (CAMP), a collaboration between local, state, and federal agencies, implemented in 1983 to locate and eradicate cannabis cultivation operations within the state (CAMP Headquarters, 1983). Though the intensity of CAMP eradication efforts were considerably more concentrated in other counties (e.g., Humboldt and Mendocino), Nevada County, particularly in places with higher poverty (e.g., North San Juan Ridge), was not immune to helicopter flybys, raids, and seizures from CAMP agents (California Center for Rural Policy, 2021). CAMP reports in the 1980s and early 1990s document persistent eradication efforts that, in 1991, earned the Nevada County sheriff recognition by the DEA for “outstanding support and cooperation to the Domestic Cannabis Eradication and Suppression Program and to DEA.” (CAMP Reports, 1983- 1996).

3.1.b Medical Cannabis Era
In 1996, California passed Proposition 215 legalizing cannabis for medical use, and in 2004 the legislature passed Senate Bill 420 which gave local jurisdictions the authority to regulate medical cannabis, heralding California’s medical cannabis era. These laws, along with conflicting federal 16 laws and edicts, created an ambiguous legal landscape for local jurisdictions and cannabis entrepreneurs to navigate.

By the 1990s, in response to the fear of CAMP, Nevada County cannabis cultivators turned to a new form of cultivation: indoor gardening, bringing with it new technologies and industries, such as grow lights and hydroponic tables. A new era of cannabis cultivation began, where fear of criminalization fostered a clandestine, somewhat paranoid business approach (“The History of Cannabis Cultivation in Nevada County Part 2”, 2015). Cannabis cultivation became an ‘open secret’ in Nevada City and the surrounding area, where government and law enforcement turned a blind eye to illicit cannabis operations.

Migrants from around the state came to Nevada County in hopes of entering the ‘secret’ illicit cannabis market, holding with them hopes of establishing livelihood or commercial operations.

With the transition from outdoor cultivation to indoor cultivation, and in conjunction with the passing of proposition 215 in 1996, the growth of cultivation, known as the ‘Green Rush’, led to backlash from county and city officials, as well as community members, who had grown frustrated over the ramifications of local, illicit cannabis operations (i.e., rise in perceived criminal activity, odor from plants, etc.) (California Center for Rural Policy, 2020).

By the mid-2000s, Nevada County, as well as Nevada City, no longer turned a blind eye to local cannabis cultivation, instead ushering in a new stance on cannabis criminalization. In 2007, the Nevada County District Attorney approved a new protocol for outdoor cannabis cultivation, reducing the number of plants individuals could legally possess from ten to six. Two years later, in 2009, the Grass Valley Police Chief asked for a moratorium on cannabis dispensaries in the city, citing a lack of local regulations as justification for his request. The moratorium passed, giving time for local governments to design and implement ordinances to address the cannabis issue. Later that year, Nevada City passed the county's first complete ban on medical cannabis dispensaries (Riquelmy, 2016).

By 2012, Nevada County passed Medical Cannabis Cultivation Ordinance 2349, a nuisance ordinance that required cannabis grows to be out of public view, cultivation plots to be on a contiguous plane, and further restricted the total square footage of cultivation. Opposition to 17 Ordinance 2349 was considerable, and efforts were made to repeal it.3 Measure S was placed on the November 2014 ballot and was intended to overturn Ordinance 2349, replacing it with new, less restrictive provisions to regulate cannabis cultivation. However, Measure S was defeated at the polls by a wide margin (Riquelmy, 2016).

In September 2015, the state Legislature passed comprehensive legislation to develop a regulated system for medical cannabis. The legislation was signed into law shortly after. This resulted in cannabis cultivation moving to the forefront for Nevada County. By December 2015, the Nevada City Planning Commision recommended a complete ban on outdoor cannabis cultivation, allowing for only limited indoor cultivation. The Grass Valley City Council had already considered enacting a complete ban on cannabis cultivation. In January 2016, the County Board of Supervisors passed Urgency Ordinance 2405, replacing Ordinance 2349. The Urgency Ordinance immediately prohibited all outdoor cultivation and limited indoor cultivation to 12 plants. That same month, the Nevada City Council also banned all outdoor cultivation and restricted indoor cultivation to 25 square feet (Riquelmy, 2016).

In June 2016, 59% of county voters rejected Measure W, which would have enacted a voter-approved ordinance that mirrored restrictions and regulations set forth in Ordinance 2405.

Furthermore, with the defeat of Measure W, the County Board of Supervisors ended Ordinance 2405. A subcommittee was subsequently formed, composed of cannabis cultivators, county staff and members of the County Board of Supervisors, to come up with new, realistic cannabis regulations for the county to enact. By July 2016, Nevada County passed Urgency Ordinance 2416, which immediately ended the prohibition of outdoor cultivation and put in place new regulations on cultivation size based on parcel acreage (Riquelmy, 2016).

3.1.c Legal Commercial Cannabis Era
In September 2015, California established a legal framework to regulate and monitor cannabis dispensaries with the passage of the Medical Marijuana Regulation and Safety Act (MMRSA), later renamed the Medical Cannabis Regulation and Safety Act (MCRSA). On November 8, 2016, California voters passed Proposition 64: the Adult Use of Marijuana Act (AUMA).

Proposition 64 legalized the distribution, sale, and possession of cannabis and decriminalized the possession, use, cultivation and sale of adult-use cannabis. It also provided for the expungement of low-level cannabis offenses and authorized training for cannabis careers, grants, and loans.

The Proposition gave local jurisdictions the right to prohibit or regulate commercial cannabis production. As of 2023, 52% of California counties allow for some form of commercial cannabis activity as do 43% of California cities (Department of Cannabis Control, n.d.).

Following Proposition 64, by 2017 statewide cannabis arrests had declined sharply (see figure previously), and as shown in the following sections, cannabis arrests declined precipitously in Nevada County and Nevada City.
3 A full accounting of Nevada County’s cannabis ordinances and measures are provided in Appendix B. 18 By January 2017, Nevada County amended Ordinance 2416 to align with Proposition 64. The legalization of recreational cannabis initiated yet another era of cannabis for Nevada County and its municipalities, where the criminalization of cannabis was, more or less, replaced in lieu of a new approach where the local cannabis industry could be recognized and embraced, and cannabis business could prosper under a new regime of regulations and taxes (Riquelmy, 2016).

With the passage of Proposition 64 in late 2016, Nevada County quickly made efforts to ensure county ordinances were in compliance with the new state regulations on cannabis. After amendinging Ordinance 2416 in January 2017, the County Board of Supervisors commissioned a Cannabis Community Advisory Group (CAG) in May of the same year to make recommendations for implementing new cannabis county ordinances. By January 2018, the CAG had drafted and presented its recommendations for Nevada County’s permanent cannabis ordinance and was subsequently dissolved by the Board. A draft ordinance was approved in May, and by June, the Board approved a contract with Kimley-Horn and Associates for the development of an Environmental Impact Report (EIR) for the proposed ordinance (Riquelmy, 2016).

In July 2018, the Board placed a measure on the ballot that would put in place a cannabis business license tax in the unincorporated regions of Nevada County. Voters approved this measure later that year in November. In March 2019, Nevada County implemented a pre-application system for commercial cannabis Administrative Development Permits (ADPs) and Commercial Cannabis Permits (CCPs). By May of 2019, the Board had adopted the final cannabis EIR and approved a resolution to enact an Urgency Ordinance for Commercial Cannabis Cultivation in the county. One month later, Nevada County permitted its first cannabis cultivation site (Riquelmy, 2016).

While Nevada County has made efforts to regulate and allow for a cannabis market, Nevada City has fully embraced the cannabis industry, allowing for cultivation, distribution, manufacturing, laboratory testing, transportation, and retail. Nevada City has been proactive in establishing its own set of cannabis business ordinances, starting in 2018, continuing as recently as 2021. The city has enacted cannabis ordinances related to tax revenue, the number of dispensaries allowed within the city, procedures for submitting and approving applications for cannabis business permits, business operating requirements (e.g., sanctioned hours of operations, reporting and tracking of gross sales, odor control, etc.), and more (Nevada City Municipal Code, 2018- 2019).

A full accounting of Nevada City’s ordinance history is presented in Appendix B.

3.2 Impacts of Cannabis and the War on Drugs in Nevada City and Surrounding Areas
The purpose of the following section is to identify the ways that federal, state, local cannabis policies impacted the community, to quantify these impacts to the extent possible, and to identify communities impacted. We approach this from three angles. These methods include analyzing 19 the direct impacts, such as arrests and civil asset forfeitures, and the broader secondary impacts arising as a result of the criminalization of the industry, such as public safety from drug criminalization. Lastly, we analyze whether there are disproportionate impacts on specific populations.

To substantiate these impacts, we draw evidence from quantitative sources including the California Department of Justice and the Federal Bureau of Investigation (FBI). For a complete overview of data sources and limitations, see Appendix A. We also draw evidence from local publications and reports, as well as interviews with local stakeholders conducted by CCRP. Due to the limited availability of data, it is sometimes necessary to make inferences about the impacts and impacted communities of Nevada City based upon countywide data.

3.2.a Direct Impacts
As shown below, arrest data for Nevada City and County reveal distinct periods of increased drug and cannabis arrest rates. In Nevada City, drug possession arrests began rising in the mid-2000s, coinciding with a sharp increase in cannabis possession arrests, which continued until 2010 when Senate Bill 1449 was enacted. Around this period, per capita drug and cannabis arrest rates often substantially exceeded the statewide arrest rates.

During our interviews, two individuals underscored this era, emphasizing the detrimental consequences of cannabis criminalization. One interviewee reflected on the lasting trauma, shame, and stigma experienced by small-scale legacy cultivators and their families, particularly children, who had witnessed law enforcement raids, seizures, and arrests of loved ones. This interviewee also noted the impact of cannabis criminalization led to asset forfeitures, noting individuals they know personally who have had their properties, including homes, seized by law enforcement.

The available data suggest arrest rates for cannabis sales often match or exceed the state average at the city level. When combined with county-level data, we observe distinct periods of elevated cannabis sales/manufacturing arrests, occurring in the late 1980s, late 1990s to early 2000s, and again in the mid-2010s. The community therefore appears to have been impacted by distinct periods of elevated cannabis arrests.
20 Figure 3.2
Drug Arrests per 100,000 Population
Note. Data sourced from FBI. Population figures are the population subject to the law enforcement agency jurisdiction.

As a consequence of the criminalization of cannabis and the ongoing prohibition of banking deposits from cannabis related businesses, the cannabis industry in Nevada County has and continues to be a largely cash based industry. Among other consequences, those in the industry often conduct transactions involving large amounts of currency. According to our interviews with lawyers that represent clients in the region, law enforcement can seize large amounts of currency if they suspect that these funds are used in illicit activities. 21 Data compiled from civil asset forfeiture reports from the California Department of Justice Office of the Attorney General are used below to quantify the impacts of civil forfeitures from illegal drug activity.
4 As shown below, between 2002 and 2019, 171 Nevada County asset forfeiture cases were initiated by law enforcement. Relative to an approximate average population during this period of 98,281, this amounts to 174.0 initiated cases per 100,000 population. Statewide the comparable figures are 172.2 initiated cases per 100,000 population.

While per capita case rates are similar or lower than state rates, asset values per capita for initiated forfeitures exceed that of the state, largely due to a period of exceptional forfeitures between 2013 and 2016 (see time series below).

Figure 3.3
Asset Forfeitures Summary (2002 - 2019)
Approx.

Population Cases
Cases per
100,000
Assets
Forfeited
Assets per
100,000
Nevada County 98,281 171 174.0 $2,973,607 $3,025,616
California 37,148,561 63,973 172.1 $641,985,660 $1,728,158 During a period of elevated countywide cannabis sales and manufacturing arrests in the mid 2010s, there were periods of exceptionally high civil asset forfeitures. These forfeitures may have had far-reaching consequences. In the period spanning from 2013 to 2016, there were a total of 75 initiated civil asset forfeitures in Nevada County, indicating a substantial number of individuals were affected. Furthermore, based on our interviews, these forfeitures may not solely have impacted individuals in leadership positions. In many instances, payroll and profit sharing in the cannabis industry depends on cash proceeds from sales at the end of the harvest season.

Therefore, these forfeitures may have had downstream repercussions felt by individuals lower down the organizational hierarchy, including farm workers and seasonal laborers. 4 According to the Attorney General website from which these data were gathered these figures are specific to civil forfeitures from illegal drug activity; "Required by state law, the annual report provides information on all forfeitures of assets from illegal drug activities initiated throughout the state during the calendar year." (State of California Department of Justice, n.d.).
22 Figure 3.4
Reported Initiated Asset Forfeitures per 100,000 Population Note. Data sourced from California Department of Justice.

Figure 3.5
Reported Asset Forfeiture Cases per 100,000 Population
Note. Data sourced from California Department of Justice.

3.2.b Secondary Impacts
As uncovered during our interviews, a potential secondary impact of cannabis criminalization is the associated criminal activity and consequent threats to public safety that arise as a consequence of the laws that prohibit cannabis and associated enforcement activity. High levels of cash held on farms, a lack of legal recourse to settle disputes or provide restitutions to victims of crimes, and a fear of contacting law enforcement, can create a combination of incentives for criminals and lack of legal and law enforcement protection that lead to a situation where cannabis farmers would have to take protecting their farms and property into their own hands or where farm workers have no legal recourse for crimes such as broken contracts, labor violations, or other crimes such as sexual assault.

Multiple sources document past and ongoing issues including theft, robberies, use and possession of deadly weapons, and improvised security devices near cannabis cultivation areas in Nevada County (Nevada County Grand Jury, 2021; Nevada County Sheriff’s Office, 2021; South Yuba River Citizens League, 2023). Moreover, a 2017 county-wide survey indicated the community was concerned about the potential for crime associated with cannabis cultivation (The National 23 Citizen Survey, 2017), with 65% of respondents indicating concern.5 However, these issues do not appear to have substantially impacted the perception of safety in the general community. A 2021 California Health Information Survey indicated significantly fewer Nevada County residents have concerns about gun violence compared to the state average (California Health Interview Survey, 2021) and a 2016 survey of Nevada City residents indicates most respondents felt safe in Nevada City (Nevada City, 2016). It may be that these safety concerns are largely confined to cultivation areas, primarily impacting those in the industry.

Helping cultivators in the area overcome barriers that prevent compliance with the law may present an opportunity to mitigate the conditions that create incentives for or vulnerabilities to crime.

3.2.c Disparities in Impacts
The Center on Juvenile and Criminal Justice (CJCJ) has published several reports that demonstrate patterns in drug arrest rates in California disproportionately affecting people of color. Starting in the 1990’s, arrests in California for drug possession increased dramatically.

Cannabis possession rates increased by 124% while other categories of more serious crimes showed decreased arrest rates. Drug arrest rates per 100,000 population rose much faster for African Americans, Hispanic individuals, those under the age of 21, and white people over the age of 40.

Though a majority of states allow medical cannabis use, cannabis leads drug-related prosecutions in the United States. According to New Frontier Data, over 650,000 people were arrested for cannabis-related offenses in 2016 (Song, 2018). Cannabis accounted for 42% of all drug-related arrests in 2016, with cannabis possession offenses specifically accounting for 37% of all arrests.

For comparison, heroin and cocaine together accounted for 26% of arrests nationally.

According to a report from the American Civil Liberties Union (ACLU) titled A Tale of Two Countries: Racially Targeted Arrests in the Era of Cannabis Reform:

There were more cannabis arrests in 2018 than in 2015, despite the fact that eight states legalized cannabis for recreational use or decriminalized cannabis possession in that timeframe. Cannabis arrests made up 43% of all drug arrests in 2018, more than any other drug category. The overwhelming majority of cannabis arrests—89.6%—are for possession only (ACLU, 2020).

Thus, cannabis, being less addictive and less destructive than alcohol, accounts for nearly half of all drug arrests nationally, and is a primary driver of racial disparities in drug arrest rates (Powell, 2020).
5 43% of respondents were ‘very concerned’ and 25% were ‘somewhat concerned’ 24 Josh Adams notes in an article for New Frontier Data: “Drug offenses are often the pretext for seizing other cash or property” (2020). For example, a report published by the Justice Department Inspector General in 2017 found that “the DEA seized more than $4 billion in cash from people suspected of drug activity over the previous decade, but $3.2 billion of those seizures were never connected to any criminal charges” (Ingraham, 2017). Research also indicates civil asset forfeiture disproportionately impacts low-income and historically marginalized communities. Relying on the suspicion of a crime allows law enforcement to seize cash and property almost entirely without accountability, often under the pretense of thwarting drug-related activity.

Nationally, Black and Hispanic individuals comprise nearly 60% of state-incarcerated individuals serving time for drug convictions and 80% of federal-incarcerated individuals with drug-related convictions. Hispanic individuals incarcerated for drug offenses are overrepresented in state prisons, and in federal prisons, they are overrepresented by more than a factor of two.

Additionally, a Hispanic child is twice as likely to have a parent incarcerated for a nonviolent crime than their white counterpart (Drug Policy Alliance, 2015).

To begin the analysis of impact disparities, we focus on the broadest category of arrests, including all felony drug arrests in the whole of Nevada County using data from the California Department of Justice. Unlike FBI data, these data include Hispanic as a distinct ethnic category, allowing for the analysis of the drug war’s impact on Nevada County’s second largest ethnic group as well as disparities by race.6 A limitation of these data, however, is they do not provide more specific arrest data by drug type or allow us to narrow in on the city-level impacts.

As shown below, Nevada County’s Black population experienced sharply higher rates of felony drug arrests compared to the white and Hispanic populations. While the Hispanic population statewide historically has experienced higher felony drug arrest rates statewide, this pattern is not evident in the Nevada County data.7 Therefore, consistent with state trends, these data indicate racial disparities in drug arrest rates in Nevada County. 7 Absence of evidence is not evidence of absence. This lack of disparity may reflect the paucity of local arrest data for Hispanic individuals and should not be viewed as evidence of similarity in arrest rates between non-Hispanic white and Hispanic populations in Nevada County.
6 The FBI dataset includes Hispanic for a handful of years between 1985 and 2021 but does so inconsistently. 25 Figure 3.6
Nevada County Felony Drug Arrest per 100,000 Population by Race and Hispanic Origin Note. Arrest data sourced from the California Department of Justice. Population figures sourced from 1980, 1990, 2000, 2010, and 2020 Census estimates. Population figures do not include individuals from two or more racial backgrounds. Intermediate years are estimated using a simple linear interpolation between Census estimates. Solid lines indicate trend lines.

To assess disparities in cannabis arrests in particular, we look at data from the FBI. However, assessing the racial disparities in cannabis criminalization impacts within Nevada City and surrounding jurisdictions is a particular challenge. Due to the small size of these jurisdictions and the predominately white non-Hispanic population, the vast majority of cannabis arrests are of non-Hispanic, white individuals. While our goal is to assess disparities by race or ethnicity, there are only a handful of reported cannabis arrests among non-white individuals specifically within Nevada City.
8 Therefore, calculating per capita arrest rates at the city level based on only a handful of arrests leads to extreme and spurious calculations that likely do not accurately portray the law enforcement experiences of these individuals during cannabis prohibition. Therefore, to assess racial disparities in cannabis arrest rates we look at county level data. 8 In 1986 there was one reported cannabis sales/manufacturing arrest of a Black individual and in 2007 there were two reported cannabis sales/manufacturing arrests of Black individuals by Nevada City Police. Aside from these instances all other reported cannabis arrests from 1985 to 2020 by Nevada City Police were of white individuals. 26 As shown below, these data indicate consistently elevated rates of cannabis arrest experienced by Black individuals from the 1980s until 2016. Although not consistently elevated, the Asian American Pacific Islander (AAPI) population appears to have been disproportionately affected during the mid 2000s and later during the mid 2010s, periods of elevated cannabis arrests.

Figure 3.7
Nevada County Cannabis Possession or Sales Arrests per 100,000 Population by Race Note. Arrest data sourced from FBI. Labels indicate rate and n indicates the number of arrests.

Population figures sourced from 1980, 1990, 2000, 2010, and 2020 Census estimates. Population figures do not include individuals with two or more racial backgrounds and may therefore understate the true population. Intermediate years are estimated using a simple linear interpolation between Census estimates.

It is important to consider the impacts of cannabis criminalization on the Nisenan Tribe. To the best of our knowledge, there are no empirical data to assess if and how cannabis criminalization specifically impacted the Nisenan people living in and around Nevada City. However, while not specific to the Nisenan Tribe, these data also indicate the AIAN population was impacted by 27 cannabis arrests, although the data are sparse and do not provide evidence of disparity. 9 Limited
data notwithstanding, we interviewed a Nisenan Tribe representative to gain insight on this topic.

Born and raised locally, this individual holds considerable knowledge and experience with the Nisenan.

We learned, like many Nevada County residents, Nisenan Tribal members were cultivating cannabis—even creating unique strains—and selling it on the illicit market. Some of these Nisenan cannabis cultivators, for the first time, experienced financial stability thanks to their cultivation operations. Nonetheless, the threat of law enforcement was evident for these cultivators. Our Nisenan representative recalled an instance where law enforcement discovered a cannabis cultivation site at the residence of a Nisenan Tribal member who was already under litigation for an unrelated offense. This Tribal member’s eventual sentencing was impacted by the added crime of cultivating cannabis.

While the data do not allow for an inference to be made about the racial disparities in cannabis arrests rates specifically within Nevada City proper, multiple data sources indicate racial disparities in the drug and cannabis arrest rates in the broader Nevada City environment.

3.2.d Age Disparities in Arrest Rates
Compared to the state average proportionately, more youth were arrested for cannabis-related offenses between 1985 to 2020 in Nevada County and Nevada City. Research suggests a cause and effect relationship between juvenile incarceration and subsequent reduced high school completion rates as well as increased adult incarceration rates, indicating incarceration has an effect on these outcomes independent of the individual characteristics of the detainee (Aizer and Doyle, 2013). Thus, to the extent these arrests resulted in incarceration, these juvenile arrests may have had a severe impact on long-term prosperity and justice involvement of the community.

Figure 3.8
Juvenile Cannabis Arrests, Percent of Arrests (1985 - 2020) 9 This is not to be interpreted as evidence of a lack of disparity. 28 3.3 Findings

1. Cannabis cultivation remained an ‘open secret’ in Nevada City until the mid-2000s; law enforcement turned a blind eye to the illicit cannabis industry during this time. a. A growth in cannabis growing operations during the Green Rush led to backlash from local officials and community members frustrated over the ramifications of local, illicit cannabis operations and the rise in associated criminal activity. b. By 2007, law enforcement and local officials shifted to a criminal stance on cannabis operations, enacting cannabis moratoriums and ordinances that limited parcel sizes and the number of plants one could legally grow, which particularly affected small-scale cannabis cultivators.
c. The criminal crackdown on cannabis operations in and around Nevada City came to an end when California voters passed Proposition 64 in 2016, which effectively decriminalized and regulated recreational cannabis business operations and use. d. By 2018 both Nevada County and Nevada City enacted regulations and ordinances that were concurrent with Proposition 64, leading to the legal era of the local cannabis industry.

2. Nevada City and Nevada County both experienced episodes of elevated cannabis arrest rates, including the late 1980s, the late 1990s and mid 2000s.

3. In the mid-2010s there were periods of exceptionally high civil asset forfeitures in Nevada County compared to the state average.

4. Countywide, Black individuals experienced elevated rates of felony drug arrests and cannabis arrests from the 1980s to 2020.

5. Proportionately more cannabis arrests (both sales and possession) were juveniles in Nevada City and Nevada County compared to the state average. 29 Section 4. EXISTING CANNABIS INDUSTRY
While much of the surrounding counties have prohibited all forms of cannabis businesses, Nevada County has not taken the same stance, allowing for legal cannabis cultivation, distribution, manufacturing (non-volatile), and limited retail.10 Moreover, Nevada City has implemented and maintained efforts to embrace and develop the local cannabis industry, allowing all forms of cannabis business to exist within the city and surrounding area. This reflects Nevada City’s willingness to recognize and validate the long existing local cannabis industry as a staple within the local economy.

Despite allowing for permitted cultivation, evidence indicates that a majority of the county’s estimated 3,500 to 4,000 cultivation sites have yet to enter the legal market. In 2021, a Nevada County grand jury report estimated 3,500 to 4,000 cannabis cultivation sites were in operation across the county. However, less than 100 of these sites were legally permitted, with fewer than 200 permit applications submitted. Moreover, county officials estimated that only two to three percent of illegal cultivation sites would transition into the legal market annually. One major reason for this slow transition, the grand jury report declared, is that cannabis growers in the illegal market are discouraged by the high cost of completing the legal permitting process (Nevada County Grand Jury, 2021). The prevalence and size of the county’s cannabis cultivation industry is an important context for understanding the health and dynamics of the City’s cannabis sector.

Within Nevada City limits, cultivation is limited to indoor-only, while distribution, manufacturing, testing, and retail cannabis businesses are allowed. However, the number of businesses sanctioned to operate within the city that are ‘primarily engaged in retail’ is currently capped at one (Nevada City Municipal Code, 2018-2019).

While still growing, the legal cannabis industry has created economic benefits for Nevada City.

Since 2017, local cannabis businesses have contributed more than three million dollars in tax revenue for the city. Much of this revenue comes from Measure F, a cannabis business tax ordinance implemented in 2018, which has provided Nevada City with funding for general municipal expenses, including law enforcement, fire department, and city maintenance (City of Nevada City, 2022). This is clear evidence of the importance of the cannabis industry for Nevada City’s economy, as well as its municipal budget . It is worth noting just a decade earlier, Nevada City was in a weak financial position after fallout from the 2007-2009 recession and in 2011-2012 considered outsourcing law enforcement duties to Grass Valley PD and the Nevada County Sheriff's Department (Nevada County Grand Jury, 2012). 10 CCRP contacted the Nevada County Cannabis Compliance Division and was informed retail delivery is allowed with the possession of a ‘use permit’. Traditional retail storefronts (i.e., dispensaries) are prohibited, however cultivation sites are allowed to sell products through a ‘use permit’ as well. 30 The legal cannabis market also produced employment opportunities for local residents, with positions filled across all business sectors. During an interview for this report, the Nevada County Cannabis Alliance (Cannabis Alliance) noted they conducted a 2019 survey (unpublished) administered to permitted cannabis businesses and found there were nearly 100 full-time positions in the Nevada City cannabis industry, with one-third being in retail alone.

4.1 Review of Issued Permits in Nevada City and Application Process As of 2023, Nevada City has 17 cannabis permitted businesses in operation, with many businesses having more than one permit type (see below) Figure 4.1
Existing Cannabis Businesses and Associated Permits in Nevada City Permit Type Issued and in Operation
Clutivation 3
Manufacturing 12
Retail - Dispensary 1
Retail - Delivery 1
Distribution 12
Laboratory 1

4.2 Application Process
Nevada City’s application process is typical of many other jurisdictions. Applicants must submit an application and fee of $5,000, which is required to process the application. Applicants are expected to provide information about the type of business they are implementing, including site plans, floor plans, a security plan, odor mitigation plan, as well as a criminal history check for any individual(s) applying to be a principal owner of the business. Completed applications are subject to review by the city Planning Commission and City Council. Applications must be renewed each year, which includes a renewal fee (Nevada City, n.d.).

4.3 Barriers to Entry
The section that follows outlines the barriers to entry cannabis business applicants in Nevada City face when entering the legal cannabis sector. Nevada City’s relatively tolerant and proactive legal stance on all forms of cannabis business notwithstanding, applicants face several barriers when entering the legal cannabis industry. These barriers include financial capital, banking access, administrative/technical literacy, and business acumen. 31 4.3.a Financial - Startup and Overhead Costs
All new businesses face financial requirements to enter a new market. Aside from application fees, cultivators—and cannabis businesses owners across sectors—must meet a long list of compliance requirements, including but not limited to fire codes, environmental codes, Americans with Disabilities Act (ADA) regulations, and facility improvements. Cannabis business owners can expect to pay approximately $85,000 to meet all county compliance standards. These expenses can reach as high as $300,000 when applicants are additionally mandated to rectify and bring into compliance unauthorized structures, wells, grading, septic systems, electrical panels, and similar elements (Nevada County Grand Jury, 2021). Some evidence suggests startup costs can be higher than these estimates. For instance, the Cannabis Alliance 2019 survey found investments in tenant improvements have been, on average, $90,000 per business, with one business investing $500,000 on improvements.

The cost of entering the legal market can be a staggering barrier for cannabis entrepreneurs in general, but especially for local, small-scale legacy cultivators. It may be financially feasible and relatively inconsequential for applicants with wealth or considerable financial backing to pay high startup costs, but the same cannot be said for the many small-scale legacy cultivators in Nevada City and the surrounding area. As stated above, cannabis business owners invest at least $85,000 to $90,000 to comply with permitting regulations. Small-scale cannabis cultivators must face a volatile market where their businesses are regulated as commercial enterprises—rather than agricultural. Regulations for cannabis cultivation are more stringent than those for traditional agricultural businesses, adding to the cost of compliance (Bodwitch, et al., 2021; Roller, 2021).

These high costs, necessary or not, discourage many cannabis growers still operating in the illicit market to transition into the legal realm, and it likely explains, at least in part, the high proportion of small-scale legacy cannabis cultivators who have yet to apply for business permits.

In March 2021, the South Yuba River Citizens League (SYRCL) conducted a cannabis impact survey to gather insights from Nevada County's cannabis enthusiasts, growers, cultivators, and community members. The primary aim of the survey was to understand why a significant number of cannabis cultivators had not yet taken steps to comply with relevant regulations.

Among the multitude of responses received, one of the top three reasons cited by survey respondents was the substantial financial burden associated with achieving compliance. SYRCL concludes in its report on the survey results, “unless and until compliance is more accessible, illegal grows will continue to proliferate…” (South Yuba River Citizens League, 2023).

We interviewed a local, small-scale legacy cultivator who recently entered the legal market, offering valuable insights into navigating compliance. When asked what significant barriers they faced entering the legal market, the legacy cultivator emphasized the high startup costs associated with reaching compliance. Furthermore, they pointed out the additional operating and overhead expenses that come into play that are a function of strict regulations, such as product testing. Permitted cannabis cultivators are mandated to contract licensed laboratories to test their 32 products to ensure they meet a long set of standards, incurring an estimated cost of $136 per pound of dried cannabis flower, equivalent to roughly 10% of the average wholesale price for legal cannabis in California (Goldstein et al., 2020).