April 05, 2022~4:00 PM Oroville City Council Meeting Agenda Page 1 of 7
OROVILLE CITY COUNCIL
Council Chambers
1735 Montgomery Street
Oroville, CA. 95965
April 05, 2022
REGULAR MEETING
CLOSED SESSION 4:00 PM
OPEN SESSION 4:30 PM
AGENDA
PUBLIC ACCESS AND PARTICIPATION
To view the meeting, attend the meeting or provide comment, please see the options below. All comments emailed will be provided to the Council Members for their consideration.
To View the Meeting:
1. Watch our live feed https://www.youtube.com/channel/UCAoRW34swYl85UBfYqT7IbQ/
2. Watch via Zoom
https://zoom.us/j/96870319529?pwd=dW9kMGRZSFo5MFFNQk5wVDUzRkRrZz09 Meeting ID: 968 7031 9529
Passcode: 67684553
3. Listen via Telephone
Telephone: 1-669-900-6833
Meeting ID: 968 7031 9529
Passcode: 67684553
To Provide Comment to the Council:
1. Email before the meeting by 2:00 PM your comments to [email protected]
2. Attend the meeting in person.
If you would like to address the Council at this meeting, you are requested to complete the blue speaker request form (located on the wall by the agendas) and hand it to the City Clerk, who is seated on the right of the Council Chamber. The form assists the Clerk with minute taking and assists the Mayor or presiding chair in conducting an orderly meeting. Providing personal information on the form is voluntary. For scheduled agenda items, please submit the form prior to the conclusion of the staff presentation for that item. Council has established time limitations of three (3) minutes per speaker on all items and an overall time limit of thirty minutes for non-agenda items.
If more than 10 speaker cards are submitted for an item, the time limitation would be reduced to one and a half minutes per speaker for that item. If more than 15 speaker cards are submitted for non-agenda items, the first 15 speakers will be randomly selected to speak at the beginning of the meeting, with the remaining speakers given an opportunity at the end. (California Government Code §54954.3(b)).
Pursuant to Government Code Section 54954.2, the Council is prohibited from taking action except for a brief response from the Council or staff to statements or questions relating to a non-agenda item.
CALL TO ORDER / ROLL CALL
Council Members: David Pittman, Eric Smith, Krysi Riggs, Art Hatley, Janet Goodson, Vice Mayor Scott Thomson, Mayor Chuck Reynolds
1 April 05, 2022~4:00 PM Oroville City Council Meeting Agenda Page 2 of 7
CLOSED SESSION
The Council will hold a Closed Session on the following:
1. Pursuant to Government Code Section 54957(b), the Council will meet with City Administrator, Personnel Officer, and/or City Attorney to consider the public employment related to the following position: Police Chief
2. Pursuant to Government Code section 54956.8, the Council will meet with Real Property Negotiators, City Administrator and City Attorney, regarding property commonly known as 2923 Myers Street (APN 035-520-004).
3. Pursuant to Government Code section 54956.9(d)(2), the Council will meet with the City Administrator and City Attorney regarding potential exposure to litigation – one case.
4. Pursuant to Government Code section 54956.9(a), the Council will meet with the City Administrator, and the City Attorney relating to existing litigation: Raiter v. City of Oroville, United States District Court, Eastern District of California, Case No.2:22-cv-00530.
OPEN SESSION
1. Announcement from Closed Session
2. Pledge of Allegiance
3. Adoption of Agenda
PRESENTATIONS AND PROCLAMATIONS
1. Presentation by Chandler Asset Management regarding Investment Management Services
2. Oroville Hmong Community Cultural Center Presentation PUBLIC COMMUNICATION – HEARING OF NON-AGENDA ITEMS
This is the time to address the Council about any item not listed on the agenda. If you wish to address the Council on an item listed on the agenda, please follow the directions listed above.
CONSENT CALENDAR
Consent calendar items 1 – 10 are adopted in one action by the Council. Items that are removed will be discussed and voted on immediately after adoption of consent calendar items.
1. APPROVAL OF THE MINUTES
The City Council may approve the minutes of March 15, 2022
RECOMMENDATION
Approve the minutes of Match 15, 2022
2 April 05, 2022~4:00 PM Oroville City Council Meeting Agenda Page 3 of 7
2. OPERATIONAL BUDGETING SOFTWARE
The Council may consider approving the authorization of software for operational budgeting for internal budgeting collaboration.
RECOMMENDATION
Approve the Mayor to sign a contract with ClearGov.
3. CHANGE ORDER FOR HOUSING TOOLS PREPARATION OF THE CITY OF OROVILLE
HOUSING ELEMENT
The Council may consider a change order to the contract with Housing Tools to prepare the update of the City’s Housing Element.
RECOMMENDATION
Authorize the change order in an amount not to exceed $8,592.
4. SANK PARK FEE WAIVER REQUEST BY AMERICAN ASSOCIATION OF UNIVERSITY WOMEN
The Council will consider a fee waiver request for the use of the Lott Home – Sank Park by the Oroville chapter of the American Association of University Woman (AAUW), in the amount of $400 on April 29, 2022.
RECOMMENDATION
Approve the fee waiver request for the use of the Lott Home – Sank Park by the Oroville branch of AAUW, in the amount of $400 on April 29, 2022.
5. ACCEPT THE STATEWIDE PARK DEVELOPMENT OF PARKS AND RECREATION GRANT
AWARD AND ESTABLISH AN ENCUMBRANCE FOR HEWITT PARK, PHASE II The Council may consider accepting the Statewide Park Development of Parks and Recreation Grant award, project number XS-04-014, Hewitt Park, Phase II in the amount of $4,583,710 and establish an encumbrance for program activities.
RECOMMENDATION
Accept the Statewide Park Development of Parks and Recreation Grant, project number XS-04- 014, Hewitt Park, Phase II in the amount of $4,583,710: and Approve the Encumbrance amounts for the listed activities 3 April 05, 2022~4:00 PM Oroville City Council Meeting Agenda Page 4 of 7
6. AGREEMENT WITH PLACEWORKS, INC. AND BUDGET ADJUSTMENT FOR AN
AMENDMENT TO THE GENERAL PLAN CIRCULATION ELEMENT TO INCORPORATE “VEHICLE MILES TRAVELED” ANALYSIS.
The City Council will consider an agreement with Placeworks, Inc. to amend the Circulation Element of the General Plan to incorporate Vehicle Miles Traveled (VMT) analysis as required by the State. The action includes creating a Budget Adjustment for the agreement.
RECOMMENDATION
Adopt Resolution No. 9040 -- A RESOLUTION OF THE OROVILLE CITY COUNCIL
AUTHORIZ ING AND DIRECTING THE MAYOR TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF OROVILLE AND PLACEWORKS, INC. (Agreement 3409), WITH A CORRESPONDING BUDGET ADJUSTMENT.
7. EXECUTE ADDENDUM TO THE THREE-YEAR CONTRACT FOR GOAT GRAZING
VEGETATION MANAGEMENT TO ADD ONE LOCATION
The Council may approve an addendum to the three-year contract for goat grazing vegetation management services to add one location.
RECOMMENDATION
Authorize Staff to execute Addendum No. 1 to add the approximate 6.4-acre area of the drainage basin in the amount of $5,500 annually bringing the contract total to $85,510 annually.
For a full three-year contract total of $256,530.00
8. SALE OF POLICE CANINE, FRANKIE
The Council will consider a sale agreement with Breck Wright to sell the Police Canine, Frankie.
RECOMMENDATION:
Adopt Resolution No. 9042 - A resolution of the Oroville City Council authorizing and directing the Mayor to execute an agreement for the sale of Police Canine, Frankie, to Breck Wright (Agreement No. 3410)
9. AUTHORIZATION TO PURCHASE NEW POLICE VEHICLES
The Council will consider authorizing the purchase of (5) 2022 Ford Police Interceptor Utility vehicles from Oroville Ford.
RECOMMENDATION
Authorize the Public Safety Department to purchase (5) Police vehicles from Oroville Ford utilizing State Contract pricing as outlined in the staff report.
10. DISPOSAL OF SURPLUS VEHICLES AND EQUIPMENT
The Council will consider declaring decommissioned vehicles and equipment as surplus for their disposal through auction.
RECOMMENDATION
Declare the vehicles and equipment identified in the April 5, 2022 staff report as surplus and authorize the items to be auctioned off.
4 April 05, 2022~4:00 PM Oroville City Council Meeting Agenda Page 5 of 7 PUBLIC HEARINGS – 5:15pm
The Public Hearing Procedure is as follows:
- Mayor or Chairperson opens the public hearing.
- Staff presents and answers questions from Council
- The hearing is opened for public comment limited to three (3) minutes per speaker. In the event of more than ten (10) speakers, time will be limited to one and a half (1.5) minutes.
Under Government Code 54954.3, the time for each presentation may be limited. - Speakers are requested to provide a speaker card to the City Clerk - Public comment session is closed
- Council debate and action
11. MODIFICATIONS TO THE CDBG/HOME COMBINED HOMEBUYER PROGRAM
GUIDELINES
The Council will conduct a public hearing to solicit comments regarding requested modifications to the Combined CDBG/HOME Homebuyer Program Guidelines.
RECOMMENDATION
Adopt Resolution No. 9040 - A RESOLUTION OF THE OROVILLE CITY COUNCIL
AUTHORIZING MODIFICATIONS TO THE COMBINED COMMUNITY DEVELOPMENT BLOCK,
HOME INVESTMENT PARTNERSHIP PROGRAM FIRST TIME HOMEBUYER PROGRAM GUIDELINES.
12. FIRST READING OF ZONING CODE AMENDMENT ZC22-01, PROPOSED REVISION OF OROVILLE MUNICIPAL CODE TO ADD CHAPTER 17.16.240 RELATING TO THE
REGULATION OF MASSAGE ESTABLISHMENTS AND INDEPENDENT MASSAGE PROVIDERS.
The Council will consider adding OMC Chapter 17.16.240 relating to the City’s regulation of massage and other therapeutic bodywork businesses. These regulations are intended to protect the health, safety and welfare of clients, the public and individuals while respecting legitimate massage businesses, and complying with the Massage Therapy Act of 2008.
RECOMMENDATION
Conduct a Public Hearing on the proposed Massage Ordinance.
Waive first reading and approve Ordinance 1863 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OROVILLE ADDING CHAPTER 17.16.240 OF THE ZONING CODE OF THE CITY OF OROVILLE RELATING TO the regulation of massage establishments and independent massage providers.
Adopt Resolution No. 9041 - A RESOLUTION OF THE OROVILLE CITY COUNCIL ADOPTING ZONING CHANGE ZC 22-01 AND ADOPTING AN ORDINANCE ADDING CHAPTER 17.16.240 OF THE ZONING CODE OF THE CITY OF OROVILLE RELATING TO the regulation of massage establishments and independent massage providers. 5 April 05, 2022~4:00 PM Oroville City Council Meeting Agenda Page 6 of 7
13. FIRST READING OF ZONING CODE AMENDMENT ZC22-02 RELATING TO BINGO GAMES AND AMENDING OROVILLE MUNICIPAL CODE SECTION 5.24.250 TO BE CONSISTENT WITH STATE REGULATIONS.
The City Council will consider approving an amendment to Section 5.24.250 of the Oroville Municipal Code consistent with State law relating to the operation of bingo games, to increase the amount of proceeds allowed for operating costs per month from $1,000 to $2,000.
RECOMMENDATION
Conduct a Public Hearing on proposed Zoning Change 22-02; and Waive first reading and approve Ordinance No. 1864 - AN ORDINANCE OF THE OROVILLE CITY COUNCIL AMENDING SECTION 5.24.250 OF THE ZONING CODE OF THE
CITY OF OROVILLE CONSISTENT WITH STATE LAW RELATING TO THE OPERATION OF
BINGO GAMES TO INCREASE THE AMOUNT OF PROCEEDS ALLOWED PER MONTH FROM $1,000 TO $2,000 FOR OPERATING COSTS; and
Adopt Resolution No. 9043 –with zoning change ZC 22-02 amending section 5.24.250 of the Oroville municipal code relating to bingo games and allowing deduction of prizes of up to $2,000 per month for operating costs.
REGULAR BUSINESS
14. ACCEPTANCE AND RECOGNITION OF CAL WATER ANNUAL FIREFIGHTER GRANT
PROGRAM
The Council may consider accepting the annual Cal Water Firefighter grant funds through Cal Water and to purchase extrication equipment with grant funds.
RECOMMENDATION
Accept the grant funding from Cal Water and authorize the purchase of new extrication equipment not to exceed $35,022.48
15. INVESTMENT MANAGEMENT SERVICES
The Council may consider an agreement for investment management services.
RECOMMENDATION
Option A – keep things the way they are currently
Option B – Invest a portion of the cash held in LAIF with Chandler Asset Management, any amount between 10 to 25 million.
6 April 05, 2022~4:00 PM Oroville City Council Meeting Agenda Page 7 of 7
16. NEGOTIATE DEVELOPMENT AGREEMENT AND PREPARE NECESSARY STUDIES FOR APNS 078-010-047 AND 078-020-035
Authorize the City Administrator to enter into a contract to prepare an Environmental Impact Report and related studies, including a development agreement for property located on Ophir Road APNs 078-010-047 and 078-020-035, and allocate $300,000 to pay for this work.
RECOMMENDATION
Authorize the City Administrator to enter into a contract to prepare an Environmental Impact Report and related studies, including a development agreement for property located on Ophir Road APNs 078-010-047 and 078-020-035, and allocate $300,000 to pay for this work
17. PUBLIC SAFETY FACILITY REMODEL PROJECT – AGREEMENT AMENDMENT NO. 1 The Council may consider Amendment No. 1 to Agreement No. 3394 D.H. Slater & Sons, Inc. for the additional cost of change orders due to discovery during demolition and remodel of the Dispatch Center and Emergency Operation Center (EOC) at the Public Safety Building.
RECOMMENDATION
Request Council approval for a contract Amendment No. 1 in the amount of $400,000.00
REPORTS / DISCUSSIONS / CORRESPONDENCE
1. Council Announcements and Reports
2. Future Agenda Items
3. Administration Reports
4. Correspondence
i. FERC Correspondence
ii. Notice of PG&E's request to increase rates between 2023-2026 iii. OUHSD Correspondence
ADJOURN THE MEETING
The meeting will be adjourned. A regular meeting of the Oroville City Council will be held on April 19, 2022 at 4:00 p.m.
Accommodating Those Individuals with Special Needs – In compliance with the Americans with Disabilities Act, the City of Oroville encourages those with disabilities to participate fully in the public meeting process. If you have a special need in order to allow you to attend or participate in our public meetings, please contact the City Clerk at (530) 538-2535, well in advance of the regular meeting you wish to attend, so that we may make every reasonable effort to accommodate you. Documents distributed for public session items, less than 72 hours prior to meeting, are available for public inspection at City Hall, 1735 Montgomery Street, Oroville, California.
Recordings - All meetings are recorded and broadcast live on cityoforoville.org and YouTube. 7 City of Oroville
For One-on-One Presentation Only
Carlos Oblites
Senior Portfolio Strategist
8 Item 1.
Chandler Asset Management | 1
Specializing in Investment Management for Public Agencies “We believe if we do what is right for our clients, our own success will follow.” California Based, Independent & Employee-Owned
• Fixed income specialist since 1988
• Founded by public investment professionals
• Serve institutions with public sector focus
• Headquartered in San Diego, CA with offices in the
Northern California
Custom Investment Programs
• Investment solutions based on your risk profile and
return goals
• Strategies for operating, short-, and long-term
reserves
• Direct contact with investment management team
Stable Team of Investment Professionals
• Team of investment professionals average over two
decades portfolio management experience
• Disciplined, repeatable investment philosophy and
process
• Proprietary investment analysis
Chandler Asset Management Assets as of December 31, 2021.
Assets Under Management
$25.8 Billion
Corporate
<1%
Non Profit
1%
Healthcare
17%
Sub-advisory
1%
Public
81%
9 Item 1.
Chandler Asset Management | 2
Strong Presence in Northern California
The list includes Northern California clients as of 12/31/2021 listed alphabetically and only includes clients that have given permission to be listed. It is not known whether the clients listed approve or disapprove of Chandler Asset Management and the investment advisory services provided. Includes discretionary and non-discretionary relationships.
Northern California Clients
City of Alameda Marin Schools Insurance Authority
Alameda County Water District Mendocino County
Alpine County City of Merced
Amador County City of Milpitas
City of American Canyon City of Monterey
City of Atwater City of Mountain View
BCJPIA NCCSIF
Big Independent Cities Excess Pool City of Pittsburg
Calaveras County City of Pleasant Hill
California Earthquake Authority City of San Leandro
CJPRMA City of San Mateo
CSJVRMA Santa Clara County
City of Cupertino City of South San Francisco
Town of Danville City of Sunnyvale
City of Dublin City of Tracy
City of Elk Grove City of Truckee
City of Fairfield City of Vallejo
Lake County City of West Sacramento
10 Item 1.
Chandler Asset Management | 3
We Collaborate with Staff on All Aspects of Your Program Full-Time Investment
Management of City’s
Funds Annual Investment
Policy Review and
Prudent
Recommendations
Best Execution in
Transactions of
Securities
Reconciliation and
Settlement with Third
Party Custodian
Portfolio Compliance
with Code and the
Investment Policy Ongoing Analytics to
Ensure Target Structure
of Portfolios
Rigorous Credit Analysis
of Securities Held in the
Portfolios
Performance
Measurement
Compared to
Appropriate Market
Benchmarks
Attend Meetings with
Staff and Board
Monthly, Quarterly,
Annual Reporting in
Accordance with
GASB and CFA’s GIPS
11 Item 1.
Chandler Asset Management | 4
Review Investment
Policy Cash Flow Analysis Develop Portfolio Strategy
Active Investment
Management
Approach to Building an Optimal Investment Program
Credit analysis of security issuers and financial institutions Broker/dealer due diligence and relations
Consistent application of a disciplined, conservative investment process. Our approach focuses on:
Ongoing Management
• Safety of principal*
• Appropriate levels of liquidity
• Diversification of risk
• Compliance with legal requirements,
policies, and objectives
• Generating market yield and return
*While Chandler focuses on safety of principal by investing in conservative investment-grade quality bonds, investors should be aware that bonds and other fixed income securities do carry some degree of risk and we cannot ensure a profit nor guarantee against loss.
Portfolio Management is Risk Management
12 Item 1.
Biography & Disclosures
13 Item 1.
Chandler Asset Management | 6
Presenter Biography
6 Carlos Oblites
Senior Portfolio Strategist
Carlos Oblites is a member of the Investment Management Team and participates actively in the portfolio management process as well as builds and maintains client relationships. As a portfolio strategist, Carlos focuses on identifying and communicating key investment related themes and trends for implementation into fixed income strategies for local government and institutional clients. Carlos has over two decades of investment and financial experience, focused largely on managing short-term fixed income and pension strategies for governmental and institutional non-profit clients, and currently serves as Co-Chair of the firm’s Multi Asset Class Committee. He also serves as a member of the Government Finance Officers Association’s (GFOA) Committee on Retirement and Benefits Administration (CORBA), which tracks new industry practices, regulatory and legislative developments, and issues best practices to assist public pension and personnel officers effectively manage state and local retirement funds and employee benefits.
Carlos also has significant expertise in serving California public agencies, healthcare, and insurance clients through his roles as Director at PFM Asset Management, and as a Principal at Wells Capital Management. Previous responsibilities include managing a variety of institutional client relationships and developing, implementing, and monitoring customized investment strategies for operating funds, bond proceeds, pension, and post-retirement funds. Carlos has also worked as a teacher for the Long Beach Unified School District. Carlos holds a Bachelor of Arts degree in History from the University of California, Santa Barbara, and earned a Master’s degree in Business Administration from San Francisco State University. 14 Item 1.
Chandler Asset Management | 7
Disclosures
©2022 Chandler Asset Management, Inc., An Independent Registered Investment Adviser.
The information herein is provided for informational purposes only and should not be construed as a recommendation of any security, strategy, or investment product, nor an offer or solicitation for the purchase or sale of any financial instrument. No investment decision should be made based solely on the information provided herein. All investments involve risk, including loss of principal invested. The strategies referenced may not be suitable for all investors. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. The data contained in this presentation is the property of those providers, which was obtained from sources believed to be reliable, but are subject to change at any time at the provider's discretion. Unless otherwise noted, Chandler is the source of data contained in this presentation.
References to specific securities are examples of securities held in a portfolio and are not intended to be, and should not be interpreted as an offer, solicitation, or recommendation to purchase or sell any financial instrument, an indication that the purchase of such securities was or will be profitable, or representative of the composition or performance of the portfolio. The information contained in this sample presentation was obtained from sources we believe to be reliable, but we do not guarantee its accuracy. Past performance is not indicative of future success.
Any forecasts, forward-looking statements and assumptions are inherently limited and should not be relied upon as an indicator of future results. Any opinions or views constitute judgments made by the author at the date of this presentation and may become outdated or superseded at any time without notice. Any statements concerning financial market trends are based on current market conditions, which will fluctuate.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Past performance is not indicative of future results.
Economic factors, market conditions and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. The data contained in this presentation is the property of those providers, which was obtained from sources believed to be reliable, but are subject to change at any time at the provider’s discretion. Unless otherwise noted, Chandler is the source of data contained in this presentation. 15 Item 1.
CHANDLER ASSET MANAGEMENT | 800.317.4747 | chandlerasset.com | [email protected] 16 Item 1.
March 15, 2022~4:00 PM Oroville City Council Meeting Minutes Page 1 of 5
OROVILLE CITY COUNCIL
Council Chambers
1735 Montgomery Street
Oroville, CA. 95965
March 15, 2022
REGULAR MEETING
MINUTES
This agenda was posted on March 11, 2022 at 4:52pm. This meeting was recorded and may be viewed at cityoforoville.org or on YouTube.
CALL TO ORDER / ROLL CALL
Mayor Reynolds opened the meeting at 4pm
PRESENT: Council Members: David Pittman, Eric Smith, Krysi Riggs, Art Hatley, Janet Goodson, Vice Mayor Scott Thomson, Mayor Chuck Reynolds
STAFF: City Administrator Bill LaGrone, Director of Business and Housing Amy Bergstrand, Assistant City Clerk Jackie Glover, Interim Fire Chief Chris Tenns, Code Enforcement Director Ron Belser, Assistant Community Development Director Dawn Nevers, City Attorney Scott Huber, Assistant City Administrator Ruth Wright, City Treasurer Karolyn Fairbanks
City Attorney Huber stated that the following two items came to the attention of the City staff subsequent to the posting of the agenda for the March 15, 2022 meeting. Pursuant to Government Code Section 54954.2, staff is requesting the Council take action to add these items to the agenda.
Item 1: Amend the agenda to add Closed Session Item No. 4, as follows: Pursuant to Government Code Section 54956.9(d)(2), the Council will meet with the City Administrator and City Attorney regarding potential exposure to litigation – one case.
Item 2: Amend the agenda to add Open Session Item No. 10, as follows: Oroville Chamber of Commerce Annual Dinner.
Council Member Smith recused himself from the meeting in light of Item 10 being considered as an addition to the agenda.
Motion by Council Member Riggs and seconded by Vice Mayor Thomson to add both items to the agenda. Motion passed.
AYES: Hatley, Riggs, Goodson, Pittman, Thomson, Reynolds NOES: None
ABSTAIN: None
ABSENT: Smith (Recused)
CLOSED SESSION
Council Member Smith returned to the Meeting.
The Council convened to Closed Session on the following:
17 Item 1.
March 15, 2022~4:00 PM Oroville City Council Meeting Minutes Page 2 of 5
1. Pursuant to Government Code Section 54957(b), the Council met with City Administrator, Personnel Officer, and/or City Attorney to consider the public employment related to the following position: Police Chief, Assistant Community Development Director, Business and Housing Director
2. Pursuant to Government Code section 54956.8, the Council met with Real Property Negotiators, City Administrator and City Attorney, regarding property commonly known as APN 078-010-047.
3. Pursuant to Government Code section 54956.8, the Council met with Real Property Negotiators, Acting City Administrator and City Attorney, regarding the property commonly known as 225 Chuck Yeager Way, Oroville, CA 95965.
4. Pursuant to Government Code Section 54956.9(d)(2), the Council will meet with the City Administrator and City Attorney regarding potential exposure to litigation – one case.
OPEN SESSION
1. Announcement from Closed Session – City Attorney Huber announced that direction was given; no action was taken regarding items 1-3 of closed session. In regard to item 4 of closed session, a Motion was made by Vice Mayor Thomson and seconded by Council Member Smith to reject claim 2022-4 and to send a rejection notice. Motion passed unanimously.
2. Pledge of Allegiance – Led by Mayor Reynolds
3. Adoption of Agenda – Motion by Council Member Goodson and seconded by Council Member Smith to adopt the agenda. Motion passed.
AYES: Hatley, Riggs, Goodson, Pittman, Smith, Thomson, Reynolds NOES: None
ABSTAIN: None
ABSENT: None
Council Member Huber – Informed the public that the council voted to add item 10 to the agenda prior to closed session.
PRESENTATIONS AND PROCLAMATIONS
1. Mayor Reynolds presented a proclamation Honoring Don Reighley
2. Annie Terry provided a presentation to council related to the Mission Esperanza Project through the Rescue Mission.
PUBLIC COMMUNICATION – HEARING OF NON-AGENDA ITEMS
The following individuals spoke on non-agenda items:
- Bill Speer
- The Cameraman
The following individuals spoke on agenda items:
- Bill Speer – Presentations, Future Agenda Items
- Dee Hunter – Item 7
18 Item 1.
March 15, 2022~4:00 PM Oroville City Council Meeting Minutes Page 3 of 5
CONSENT CALENDAR
Motion by Council Member Goodson and second by Council Member Smith to adopt the consent calendar items 1-6. Motion passed unanimously.
AYES: Hatley, Riggs, Goodson, Pittman, Smith, Thomson, Reynolds NOES: None
ABSTAIN: None
ABSENT: None
1. APPROVAL OF THE MINUTES
The City Council approved the minutes of February 15, 2022, February 25, 2022 and March 1, 2022.
2. FORECLOSURE OF 1891 GRAY STREET
The City Council authorized the foreclosure of City’s loan interest on the property located at 1891 Gray Street, Oroville CA (APN 012-202-014); and adopted Resolution No. 9035 - A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OROVILLE, CALIFORNIA,
AUTHORIZING AND DIRECTING THE MAYOR AND/OR CITY ADMINISTRATOR TO
EXECUTE ALL DOCUMENTS AND ANY AMENDMENTS THERETO NECESSARY TO
INITIATE AND COMPLETE FORECLOSURE PROCEEDINGS ON REAL PROPERTY LOCATED AT 1891 GRAY STREET, OROVILLE (APN 012-202-014)
3. EMPLOYMENT AGREEMENT BETWEEN THE CITY OF OROVILLE AND AMY
BERGSTRAND
The Council adopted Resolution No. 9036 - A RESOLUTION OF THE OROVILLE CITY
COUNCIL AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AN EMPLOYMENT
AGREEMENT BETWEEN THE CITY OF OROVILLE AND AMY BERGSTRAND TO SERVE AS THE DIRECTOR OF BUSINESS AND HOUSING – (Agreement No. 3407).
4. EMPLOYMENT AGREEMENT WITH DAWN NEVERS AS ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
The Council adopted Resolution No. 9037– A RESOLUTION OF THE OROVILLE CITY
COUNCIL AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AN AMENDMENT
TO THE EMPLOYMENT AGREEMENT BETWEEN THE CITY OF OROVILLE AND DAWN NEVERS – (Agreement No. 3299-1).
5. PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF OROVILLE AND
MARCINIAK CONSULTING SERVICES
The City Council will consider an agreement with Robert Marciniak of Marciniak Consulting Services for Supplemental Benefit coordination services.
RECOMMENDATION
Adopt Resolution No. 9038 - A RESOLUTION OF THE OROVILLE CITY COUNCIL
AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT BETWEEN THE CITY OF OROVILLE AND MARCINIAK CONSULTING SERVICES (Agreement 3242-2)
19 Item 1.
March 15, 2022~4:00 PM Oroville City Council Meeting Minutes Page 4 of 5
6. BUTTE COUNTY OFFICE OF EDUCATION LEASE AGREEMENT FOR THE CENTENNIAL
CULTURAL CENTER
The City of Oroville considered and approved the final lease agreement with the Butte County Office of Education (BCOE) to lease the Centennial Cultural Center. Council approved Agreement No. 3397 City of Oroville Public Facility Exclusive Operating and Lease Agreement as state above. (Resolution No. 9007)
REGULAR BUSINESS
7. CITY REPRESENTATIVE TO SERVE AS THE ABANDONED VEHICLE ABATEMENT
SERVICE AUTHORITY
The Council considered appointing the Code Enforcement Director and the Code Enforcement Technicians to serve on the Abandoned Vehicle Abatement Service Authority.
Motion by Council Member Hatley and second by Council Member Goodson to adopt Resolution No. 9039 – A RESOLUTION OF THE OROVILLE CITY COUNCIL ESTABLISHING A SERVICE AUTHORITY FOR AN ABANDONED VEHICLE ABATEMENT PROGRAM; and appoint the Director of Code Enforcement and Code Enforcement Technicians as City representatives to serve on the Abandoned Vehicle Abatement Service Authority. Motion passed.
AYES: Hatley, Riggs, Goodson, Pittman, Smith, Thomson, Reynolds NOES: None
ABSTAIN: None
ABSENT: None
8. HOUSING SUCCESSOR AGENCY ANNUAL REPORT
The Council received and filed the Housing Successor Agency Annual Report for Fiscal Year 2020- 2021
9. ANNUAL PROGRESS REPORT
The council received and filed the 2021 Housing Element Annual Progress Report Council Member Smith recused himself from item 10 because it relates to his place of employment.
10. CHAMBER OF COMMERCE ANNUAL DINNER
Motion by Council Member Riggs and second by Council Member Goodson to purchase two tables for the Chamber of Commerce Annual Dinner. Motion passed.
AYES: Hatley, Riggs, Goodson, Pittman, Thomson, Reynolds NOES: None
ABSTAIN: None
ABSENT: Smith (Recused)
Council Member Smith returned to the meeting.
REPORTS / DISCUSSIONS / CORRESPONDENCE
1. Council Announcements and Reports
a. Smith – Mentioned Arbor Day this Saturday at the Oroville Convention Center, Exchange Club Talent Show coming up at the State Theatre, and Wildflower and Nature Festival April 2, 2022
20 Item 1.
March 15, 2022~4:00 PM Oroville City Council Meeting Minutes Page 5 of 5 b. Riggs – Mentioned the Chamber of Commerce dinner March 31, 2022 c. Reynolds – Gave a State of the City speech at Rotary yesterday.
2. Future Agenda Items
a. BID Presentation
3. Administration Reports
a. LaGrone – Provided an update on the Oroville Fire to Cal Fire Transition b. Belser – Provided an update on staffing, compliance with business licenses, construction stop work notices, and vehicle abatements
c. Wright – Will be bringing a software purchase forward related to internal budgeting. d. Nevers – Mavericks station moving forward with finishing construction now that they have the Cal Trans Encroachment Permit approval, Public Works is working on drought tolerant landscaping at various city owned areas around town. e. Department Reports – Council received a written report.
4. Correspondence
i. FERC Correspondence
ii. PG&E Correspondence
ADJOURN THE MEETING
Mayor Reynolds adjourned the meeting at 6:36pm.
APPROVAL ATTESTED:
_____________________________ ___________________________________ Mayor Chuck Reynolds Assistant City Clerk Jackie Glover 21 Item 1.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND CITY COUNCIL MEMBERS
FROM: RUTH WRIGHT, ASSISTANT CITY ADMINISTRATOR,
ADMINISTRATIVE SERVICES
RE: OPERATIONAL BUDGETING SOFTWARE
DATE: APRIL 5, 2022
SUMMARY
The Council may consider approving the authorization of software for operational budgeting for internal budgeting collaboration.
DISCUSSION
Staff is asking the Council to consider a powerful budgeting tool for staff to collaborate and prepare an annual budget. This tool would aid greatly in our budgeting process. Currently we are utilizing our software by exporting everything into excel and emailing the worksheets back and forth between departments. With this software everyone can log in to a central portal and enter their budget requests directly. There is also an outward facing component that will allow citizens to view the budget in greater detail than we are providing currently. Currently our budget is posted to our website as a pdf document.
When the availability of this software was discussed with Directors and Managers it was met with overwhelming support
This expenditure would qualify as an eligible expenditure of the Local Recovery Funds the City has been allocated. This allocation is over 4 million and has not been allocated yet.
FISCAL IMPACT
$8,200 annual subscription services, utilizing the Local Recovery Funds.
RECOMMENDATION
Approve the Mayor to sign a contract with ClearGov.
ATTACHMENTS
Software contract
Brief Product Summary
22 Item 2.
Service Order
2 Mill & Main; Suite 630; Maynard, MA 01754
Created by Joe Eiskant Order Date Mar 15, 2022
Contact Phone 607-760-0524
Contact Email
Order valid if signed by Mar 18, 2022 [email protected] Customer Information
Customer City of Oroville Contact Ruth Wright Billing Contact Address 1735 Montgomery Street Title Finance Director Title City, St, Zip Oroville, CA 95965 Email [email protected] Email Phone 530-538-2436 PO # (If any)
To be clear, you will be billed as follows...
Billing Date(s) Amount(s) Notes
Jul 1, 2022 $8,200.00 Annual Subscription Fee
Additional subscription years and/or renewals will be billed annually in accordance with pricing and terms set forth herein.
ClearGov will provide your Services according to this schedule...
Period Start Date End Date Description
Setup Apr 1, 2022 Apr 1, 2022 ClearGov Setup Services
Value Add Apr 1, 2022 Jun 30, 2022 ClearGov Subscription Services Initial Jul 1, 2022 Jun 30, 2023 ClearGov Subscription Services The Services you will receive and the Fees for those Services are...
Set up Services Tier/Rate Service Fees
ClearGov Setup: Includes activation, onboarding and training for ClearGov solutions. Tier 2 ($ 1,800.00) Onboarding Discount: customer value add Tier 2 ($ (1,800.00) Total ClearGov Setup Service Fee - Billed ONE-TIME -
Subscription Services Tier Service Fees
ClearGov Operational Budgeting - Civic Edition Tier 2 ($ 12,100.00) ClearGov Budget Cycle Management Bundle Discount: Discount for bundled solutions. Tier 2 ($ (3,900.00) Total ClearGov Subscription Service Fee - Billed ANNUALLY IN ADVANCE ($ 8,200.00) Billing Terms and Conditions
Valid Until Mar 18, 2022 Pricing set forth herein is valid only if ClearGov Service Order is executed on or before this date.
Payment Net 30 All invoices are due Net 30 days from the date of invoice.
Rate Increase 3% per annum After the Initial Service Period, the Annual Subscription Service Fee shall automatically increase by this amount.
General Terms & Conditions
Customer Satisfaction
Guarantee
During the first thirty (30) days of the Service, Customer shall have the option to terminate the Service, by providing written notice. In the event that Customer exercises this customer satisfaction guarantee option, such termination shall become effective immediately and Customer shall be eligible for a full refund of the applicable Service Fees.
Cancellation Option
This ClearGov Service Order is subject to the approval of the City Council as set forth herein. In the event that the Board does not approve this Service Order at its March 28th meeting, Customer shall have the option to terminate this Service Order immediately by providing written notice. In the event that Customer exercises this option, Customer shall have no payment obligation under this Service Order.
Statement of Work ClearGov and Customer mutually agree to the ClearGov Service activation and onboarding process set forth in the attached Statement of Work.
Taxes
The Service Fees and Billing amounts set forth above in this ClearGov Service Order DO NOT include applicable taxes. In accordance with the laws of the applicable state, in the event that sales, use or other taxes apply to this transaction, ClearGov shall include such taxes on applicable invoices and Customer is solely responsible for such taxes, unless documentation is provided to ClearGov demonstrating Customer's exemption from such taxes.
23 Item 2.
Term & Termination
Subject to the termination rights and obligations set forth in the ClearGov Service Agreement, this ClearGov Service Order commences upon the Order Date set forth herein and shall continue until the completion of the Service Period(s) for the Service(s) set forth herein.
Each Service shall commence upon the Start Date set forth herein and shall continue until the completion of the applicable Service Period.
Auto-Renewal
After the Initial Period, the Service Period for any ClearGov Annual Subscription Services shall automatically renew for successive annual periods (each an "Annual Term”), unless either Party provides written notice of its desire not to renew at least sixty (60) days prior to the end of the then current Annual Term.
Agreement
This ClearGov Service Order shall become binding upon execution by both Parties. The signature herein affirms your commitment to pay for the Service(s) ordered in accordance with the terms set forth in this ClearGov Service Order and also acknowledges that you have read and agree to the terms and conditions set forth in the ClearGov Service Agreement found at the following URL: http://www.
ClearGov.com/terms-and-conditions. This Service Order incorporates by reference the terms of such ClearGov Service Agreement.
Customer ClearGov, Inc.
Signature Signature
Name Ruth Wright Name Bryan A. Burdick
Title Finance Director Title President
Please e-mail signed Service Order to [email protected] or Fax to (774) 759-3045 24 Item 2.
Statement of Work
This Statement of Work outlines the roles and responsibilities by both ClearGov and Customer required for the activation and onboarding of the ClearGov Service. ClearGov will begin this onboarding process upon execution of this Service Order. All onboarding services and communications will be provided through remote methods - email, phone and web conferencing.
ClearGov Responsibilities
- ClearGov will activate ClearGov Service subscription(s) as of the applicable Start Date(s). ClearGov will create the initial Admin User account, and the Customer Admin User will be responsible for creating additional User accounts. - ClearGov will assign a Client Success Manager (CSM) responsible for managing the activation and onboarding process. ClearGov CSM will coordinate with other ClearGov resources, as necessary.
- ClearGov CSM will provide a Kickoff Call schedule to Customer’s Primary Contact - to be scheduled within two weeks after the Service Order has been executed. - ClearGov will provide Customer with financial data requirements and instructions, based on the ClearGov Service subscription(s). If necessary, ClearGov will set up a Data Discovery call to assist with such requirements/instructions. - ClearGov will review financial data files and confirm that data is complete, or request additional information, if necessary. Once complete financial data files have been received, ClearGov will format the data, upload it to the ClearGov platform and complete an initial mapping of the data. - After initial mapping, ClearGov will schedule a Data Review call with a ClearGov Data Onboarding Consultant (DOC), who will present how the data was mapped, ask for feedback and get answers to open questions. Depending upon Customer feedback and the complexity of data mapping requests, there may be additional follow up calls or emails required to complete the data onboarding process. - ClearGov will make Customer aware of all training, learning and support options. ClearGov recommends all Users attend training sessions and/or read Support Center articles before using the ClearGov Service to ensure a quick ramp and success. As needed, ClearGov will design and deliver one customized remote training session for Admins and one for End Users - via video conference - and these sessions will be recorded for future reference. - ClearGov will make commercially reasonable efforts to complete the onboarding process in a timely fashion, provided Customer submits financial data files and responds to review and approval requests by ClearGov in a similarly timely fashion. Any delay by Customer in meeting these deliverable requirements may result in a delayed data onboarding process. Any such delay shall not affect or change the Service Period(s) as set forth in the applicable Service Order.
Customer Responsibilities
- Customer's Primary Contact will coordinate the necessary personnel to attend Kickoff Call within two weeks after the Service Order has been executed. If Customer needs to change the date/time of the Kickoff Call, the Primary Contact will notify the ClearGov CSM at least one business day in advance. - Customer will provide requested financial data files (revenue, expense, chart of accounts, etc.) to ClearGov in accordance with the requirements provided by ClearGov. - Customer's Primary Contact will coordinate the necessary personnel to attend the Data Review call. It is recommended that all stakeholders with input on how data should be mapped should attend. Based on the Data Review call and any subsequent internal review, Customer shall provide a detailed list of requested changes in a timely manner, and Customer will approve the final data mapping, once completed to Customer’s satisfaction. - Customer shall be solely responsible for inputting applicable text narrative, custom graphics, performance metrics, capital requests and personnel data and other such information for budget books, projects, dashboards, etc. 25 Item 2.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND CITY COUNCIL MEMBERS
FROM: AMY BERGSTRAND
DIRECTOR BUSINESS ASSISTANCE/HOUSING DEVELOPMENT
RE: CHANGE ORDER FOR HOUSING TOOLS PREPARATION OF THE CITY
OF OROVILLE HOUSING ELEMENT
DATE: APRIL 5, 2022
SUMMARY
The Council may consider a change order to the contract with Housing Tools to prepare the update of the City’s Housing Element.
DISCUSSION
On August 3, 2021, the City of Oroville entered contract with Housing Tools to update the City of Oroville’s Housing Element for the 2022-2030, 6th Cycle. City staff budgeted $100,000 for the preparation of the update; however, Housing Tools submitted a bid to the City in the amount $74,398.
The Housing Element is a mandatory General Plan element under State Law. State law requires the California Department of Housing and Community Development (HCD) to review and comment on the draft prior to the City Council adoption, as well as review for certification after adoption.
Housing Tools has received comments and suggested revisions from other Housing Element drafts they are preparing for the 6th Cycle and have determined that the original estimated hours will not be sufficient to complete the update. The State has included many new Affirmatively Furthering Fair Housing (AFFH) requirements in this HE cycle that were not originally identified or budgeted to complete. Attached is an amended Statement of Work that details the additional requirement and hours needed
FISCAL IMPACT
Change order in the amount of $8,592.00 will be paid from grant 21-CDBGPI-00010, Fund 229 7071-2100010b, which has a current balance of $50,247. 26 Item 3.
RECOMMENDATION
Authorize the change order in an amount not to exceed $8,592.
ATTACHMENTS
City Of Oroville 2022-2030 Housing Element Update-Amended SOW 27 Item 3.
City of Oroville 2022-2030 Housing Element Update- Amended SOW Topic Area Comment HT Additional Work
Managers
Hours Managers Rate PM Hours PM Rate Total Hours Total Cost AFFH Fair Housing Outreach
and Enforcement
Describe capacity to provide
enforcement and outreach
Write-up: fair housing and
enforcement outreach process $120 2.00 $100 2.00 $200
Describe FHEO number of
cases and characteristics
Pull FHEO data, include 1-2
sentence summary and analysis $120 3.00 $100 3.00 $300
Evaluate past/present fair
housing studies, complaints,
etcs.
Research fair housing complaints
and compile data from stakeholder
interviews $120 2.00 $100 2.00 $200
AFFH Integration and
Segregation Dissimilarity Index Data
Where can we find this data? Add
Gini index table and Diversity Index
map? $120 2.00 $100 2.00 $200
AFFH Access to Opportunity
Address concentrations of
affordable housing
Write-up: location of affordable
housing, possible implications, and
discuss potential methods to
mitigate impacts $120 4.00 $100 4.00 $400
Analyze transit accessibility
and access to opportunity for
protected classes
Write-up: research transit
accessibility, ADA accommodations,
and summarize data from
stakeholder interviews $120 4.00 $100 4.00 $400
AFFH Disproportionate
Housing Needs
Ability to pay for
homeownership related to
recent disasters and
overarching trends
Write up: Research housing trends
and summarize data from
stakeholder interviews $120 4.00 $100 4.00 $400
Rent trends and dispalcement
impacts
Add table on rent trends and
summarize data from stakeholder
interviews $120 2.00 $100 2.00 $200
Displacement impacts due to
substandard housing
Code enforcement data or South
Oroville Blight study. Add 3-4
sentences $120 1.00 $100 1.00 $100
AFFH Contributing Factors Narrow down list Revise list $120 1.00 $100 1.00 $100 Goals, Programs, and Policies
Policies need commitment,
metrics, and milestones
Include quantifiable actions, dates,
and measures $120 3.00 $100 3.00 $300
28 Item 3.
City of Oroville 2022-2030 Housing Element Update- Amended SOW Policies must respond to
contributing factors and
overcome identified patterns
and trends
Add/modify/remove policies to
AFFH $120 3.00 $100 3.00 $300
Housing Stock Characteristics
Estimate of units needing
rehabilitation
Analyze code enforcement data
and any available data Housing
Conditions Survey in south Oroville 2.00 $120 $100 2.00 $240 Breakout vacancy rates by for
sale, for rent, other, seasonal,
etc.
Review data sources to find
breakout info 1.00 $120 $100 1.00 $120
Special Housing Needs
Large households: use 5+
persons instead of 4+ Amend chart $120 0.50 $100 0.50 $50 Farmworkers: add more
analysis on needs/resources
Additional research: discuss with
Housing Authority? $120 2.00 $100 2.00 $200
Homeless: update with 2022
data if available Swap out 2022 data 1.00 $120 3.00 $100 4.00 $420 Female-headed households:
how many with children?
Find and add data on # of FFH with
children $120 0.50 $100 0.50 $50
Overpayment: low-income
households by tenure 0.50 $100 0.50 $50
Zoning for a Variety of
Housing Types
Emergency Shelters:
Description of development
standards in zone(s) where
allowed by right
Describe how development
standards are not a constraint in
the zone(s) 0.50 $120 $100 0.50 $60
Residential Care Facilities of
7+ persons: analyze CUP
requirement as potential
constraint
Add description of approval and
denial findings and data on actual
outcomes. If found to be a
constraint, add program to amend
code 2.00 $120 $100 2.00 $240
General: A land use zoning
table would be helpful Add table from City’s Muni Code 3.00 $120 $100 3.00 $360 29 Item 3.
City of Oroville 2022-2030 Housing Element Update- Amended SOW Reasonable Accommodation
What are approval findings for
RA requests?
City to provide approval findings
issued for RA requests and data on
% of requests that result in
approvals/denials. HT will integrate
data into document after we
receive from City. 2.00 $120 $100 2.00 $240
Infrastructure
Add statement that there will
be adequate infrastructure to
support future projects, if that
is true, or add program to
address
Add statement that there will be
adequate infrastructure to support
future projects - $120 $100 - $0
Programs
Provide specific frequency and
timing commitments on
programs. HCD wants
proactive outreach, how
often/when the City will apply
for funding
Draft language to reflect more
specific commitments 2.00 $120 1.00 $100 3.00 $340
At Risk Units
Verify data sources, including
CPHC and clearly describe
other affordability covenants
that take projects beyond 10
year horizon
If City has info on extended
contracts, we should get info on the
extension and add language to the
HE. 1.00 $120 $100 1.00 $120
Public Participation
Clarify if public comments
were received on document
and how they were
incorporated
After public comment period and
adoption, add in summary of any
public comments received and how
incorporated or addressed $120 $100 - $0
30 Item 3.
City of Oroville 2022-2030 Housing Element Update- Amended SOW Definition of "Family"
Add definition per City Muni
Code; analyze/state this
definition does not pose a
constraint, or if it does, add
program Add text and analysis 0.50 $120 $100 0.50 $60
Est. time between approval
and building permit submittal
City will need to analyze
“typical” “average” projects
HT will add narrative after we
receive data from City. 0.50 $120 $100 0.50 $60
Site Inventory: state that
realistic capacity was used.
Double check the Site Inventory
narrative to ensure it is clear that
realistic capacity was used in the
analysis 0.50 $120 $100 0.50 $60
Historic Overlay Districts
Info from City on any HO
Districts, findings of approval
and historical data on
approvals/denials
HT to incorporate City-provided
info into draft 0.50 $120 $100 0.50 $60
Zoning for a Variety of
Housing Types
HCD wants clear statements
that the City code is
compliance (or not) with
certain Government Codes per
the checklist
Add compliance statements re:
Government Code, HSC if not
already there 2.00 $120 $100 2.00 $240
Parking Standards
HCD has asked for an analysis
of parking standards for
duplexes and triplexes
If the calculator is based on # of
bedrooms (like all other housing),
should state that. Add a sentence
or two. 0.25 $120 $100 0.25 $30
Non-governmental Constraints
In Orland’s case, HCD asked
for a program to be added to
address non-governmental
constraints
Add description of how existing
programs address Nongovernmental constraints, or add a goal to address. 0.50 $120 $100 0.50 $60
Document Reformatting 4.00 $100 4.00 $400
Document Editing 5.00 $120 5.00 $600
Subtotal 24.25 42.50 66.75 $7,160
Contingency (20%) $1,432
Total $8,592
31 Item 3.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND COUNCIL MEMBERS
FROM: DAWN NEVERS, ASST COMMUNITY DEVELOPMENT DIRECTOR
RE: SANK PARK FEE WAIVER REQUEST BY AMERICAN ASSOCIATION
OF UNIVERSITY WOMEN
DATE: APRIL 5, 2022
SUMMARY
The Council will consider a fee waiver request for the use of the Lott Home – Sank Park by the Oroville chapter of the American Association of University Woman (AAUW), in the amount of $400 on April 29, 2022.
DISCUSSION
The applicant, Kristin Sherrock, has applied for a fee waiver for the rental fees associated with the Lott Home – Sank Park located at 1067 Montgomery Street, Oroville. The applicant is a representative of the Oroville branch of AAUW, which is seeking to hold their annual Tech Trek Picnic for the selected Tech Trek girls and their parents. AAUW selects several girls throughout the area to attend a weeklong Math and Science camp in Davis. The purpose of this event is to celebrate the selection of the camp attendees, so the girls attending can meet one another, and to inform the girls and their parents on what their camp experience will entail.
To avoid detracting from the Tech Trek scholarship funds, the applicant is requesting a fee waiver for this event. The Oroville branch of AAUW would like to hold a Tech Trek Picnic as a celebration/educational event at the Lott Home – Sank Park on April 29, 2022. Waiver of the fees ($400.00) would cover $150.00 for the cleaning deposit and $250.00 for the rental of the kitchen and patio. The allotted 4-hour rental of the Lott Home – Sank Park this fee waiver would cover includes set-up and clean-up time.
FISCAL IMPACT
The City will not receive funds for a 4-hour rental fee for the Lott Home – Sank Park in the amount of $400.00.
RECOMMENDATION
Approve the fee waiver request for the use of the Lott Home – Sank Park by the Oroville branch of AAUW, in the amount of $400 on April 29, 2022. 32 Item 4.
ATTACHMENTS
Facility Use Fee Waiver Application – Sank Park
Application & Agreement for Use
Facilities Rental Agreement
33 Item 4.
34 Item 4.
35 Item 4.
36 Item 4.
37 Item 4.
38 Item 4.
39 Item 4.
40 Item 4.
41 Item 4.
42 Item 4.
43 Item 4.
44 Item 4.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND CITY COUNCIL MEMBERS
FROM: DAWN NEVERS, ASST COMMUNITY DEVELOPMENT DIRECTOR
RE: ACCEPT THE STATEWIDE PARK DEVELOPMENT OF PARKS
AND RECREATION GRANT AWARD AND ESTABLISH AN
ENCUMBRANCE FOR HEWITT PARK, PHASE II
DATE: APRIL 5, 2022
SUMMARY
The Council may consider accepting the Statewide Park Development of Parks and Recreation Grant award, project number XS-04-014, Hewitt Park, Phase II in the amount of $4,583,710 and establish an encumbrance for program activities.
DISCUSSION
Statewide Park Development and Community Revitalization Grant Program, as part of the Newsom Administration’s “Outdoors for All” initiative, is an opportunity to deliver new parks and new recreational opportunities to more than 100 communities, regardless of zip code or income. This highly competitive grant program received over 400 applications, with City of Oroville being one of the 112 applications selected.
In partnership with Project Manager, Melton Design Group the City of Oroville anticipates the completion of this large project by 2024. Subsequently the City of Oroville was awarded funds and staff is requesting approval to establish a encumbrance for the following activities:
1. MDG Project Management $ 467,504.00
2. Project Construction and Implantation $ 4,106,206.00
3. Park Development Impact Fees $ 10,000.00
$ 4,583,710.00
FISCAL IMPACT
A budget adjustment will be required to establish a budget as follows:
1. MDG Project Management $ 467,504.00
2. Project Construction and Implantation $ 4,106,206.00 45 Item 5.
3. Park Development Impact Fees $ 10,000.00
$ 4,583,710.00
RECOMMENDATION
1. Accept the Statewide Park Development of Parks and Recreation Grant, project number XS-04-014, Hewitt Park, Phase II in the amount of $4,583,710: and
2. Approve the Encumbrance amounts for the listed activities
ATTACHMENTS
Award Announcement
MDG Landscape Architectural Design Agreement
46 Item 5.
47 Item 5.
Hewitt Park Design Development / Construction Documents MDG Project No: 2502
March 21, 2022
820 BROADWAY ST CHICO CA 95928 – 530.899.1616 * MELTONDG.COM PAGE 1 OF 9
This AGREEMENT, effective as of the 21st day of March 2022 shall be BETWEEN the
CLIENT: City of Oroville
Dawn Nevers
1735 Montgomery Street
Oroville, CA 95965
530‐538‐2405 / [email protected]
AND the
CONSULTANT: Melton Design Group, Inc.
Gregory V. Melton, President / CEO
820 Broadway Street
Chico, CA 95928
530‐899‐1616 / [email protected]
PROJECT: HEWITT PARK RENOVATION , OROVILLE, CA
DESIGN, CONTRACT/BID DOCUMENTS and CONSTRUCTION ADMINISTRATION DESIGN TEAM:
1. Melton Design Group – Team Lead and Park Designers and Landscape Architects.
2. MHM – Civil Engineering – Survey, Civil Engineering and Utilities.
3. Rain Drop Water Play – Spray Ground Designers
4. Slater Electrical Engineering – Lighting, Electrical and Camera (sub with local camera specialists)
5. Streamline – Structural Engineering
6. Well Consultant – TBD
SECTION 1 – SCOPE OF SERVICES
TASK 1 –PROJECT LAUNCH, PROGRAM DEVELOPMENT and PROJECT COORDINATION
1.1 Kick‐off meeting with the Client and State of California
1.2 Develop program of elements.
a. Discuss all possible opportunities and study constraints directing the design.
1.3 Conduct bi‐monthly meetings / phone calls.
1.4 Project management throughout design.
LANDSCAPE ARCHITECTURAL DESIGN AGREEMENT
MELTON DESIGN GROUP, INC. and CITY OF OROVILLE
48 Item 5.
Hewitt Park Design Development / Construction Documents MDG Project No: 2502
March 21, 2022
820 BROADWAY ST CHICO CA 95928 – 530.899.1616 * MELTONDG.COM PAGE 2 OF 9
TASK 2 – SITE ANALYSIS, BASE DEVELOPMENT and TOPOGRAPHY
2.1 Site Visit and Analysis – onsite and surrounding analysis to confirm existing conditions. a. Confirm utilities and drainage on plans and onsite.
b. Identify all elements onsite that are to remain and to be removed. 1) Confirm existing elderberry location, size and setbacks (flagged and logged by consultant)
2) Coordinate existing bank conditions
3) Locate and identify all trees with DBH.
4) Locate existing irrigation mainline and valves.
5) Create as‐builts for existing restroom for possible addition. c. Obtain all site conditions from sun, wind, views, neighbors, uses, etc. d. Work with well specialist to identify key area for new well.
2.2 Topographic survey of project area including existing elderberry that are within project boundaries
2.3 Base Map of existing site conditions using new topographic survey and existing as‐builts.
2.4 Utility with preliminary drainage, water, electrical and sewer analysis and discussion with City and Butte County EH for Spray Ground.
2.5 Client / Team meeting to discuss Scope of Work, design needs and specific desires for the project.
2.6 Refine the program of elements and coordinate with Client to prioritize and include Client’s desires.
TASK 3 – SCHEMATIC DESIGN CONCEPT, PUBLIC OUTREACH and COST ESTIMATE
3.1 Review previous Outreach and integrate into new revised program.
3.2 Create Schematic Design plan with alternatives and preliminary Cost Estimates. a. Rendered Drawings.
b. Sections / Sketches.
c. Inspiration Photos.
d. Cost assessment
3.3 Create a NOFA for April 12 submittal.
3.4 Present Schematic plans to Staff and Commission. (public meeting) a. Assess design options, concepts and re‐assess prioritized elements. b. Client to provide additional direction and comment.
c. Gain Commission and public input
3.5 Finalize Schematic Design and Cost Estimate.
a. 3D Color Renderings and Perspectives – multiple rendered views of key elements. b. Element Photo Boards and cut sheets.
c. Cost Estimate.
TASK 4 – DESIGN DEVELOPMENT, COSTS and APPROVALS
4.1 Create Design Development plan with alternatives for Staff review.
4.2 Preliminary engineering of storm drain, sewer and LID measures. a. Digital Plan.
b. Cutsheets.
49 Item 5.
Hewitt Park Design Development / Construction Documents MDG Project No: 2502
March 21, 2022
820 BROADWAY ST CHICO CA 95928 – 530.899.1616 * MELTONDG.COM PAGE 3 OF 9
c. Detail / Finishes.
4.3 Preliminary Well design and review.
4.4 Coordinate with City of Chico Public Works Engineering and County EH for utilities, spray park and plan review.
4.5 Preliminary DD documents for review and comment by staff.
4.6 Final Design Development Plan and Costs to gain staff approval
4.7 Update to Parks and Recreation Commission to approve Design Development Plans.
TASK 5 – CONSTRUCTION DRAWINGS, SPECIFICATIONS and SUBMITTALS (75% and 100%)
5.1 DEMOLITION PLAN – Show location of all elements that require removal and offsite disposal.
5.2 GRADING and DRAINAGE PLAN – Show grades at all key points and general topography. a. Identify areas, if needed, requiring imported soil for better drainage and plant health. b. Show drainage patterns with slopes and compaction.
c. Detailed grading plan with spot elevations.
d. Drainage plans and details.
5.3 CONSTRUCTION PLAN – Show location and layout of all proposed hardscape, restroom, play, pathways, fencing, signage, lighting and utilities.
a. Material description and detail reference of all parts of the project b. Well plan and details – City and County review
5.4 SPRAY GROUND PLAN – Layout, nozzle, supply, pump system, etc.
5.5 IRRIGATION PLAN RETROFIT – Irrigation plan with complete water use information including all water use calculations for all planting areas.
a. Identify all irrigation water use zones (trees, shrubs and ground covers) along with mainline, new and existing valves, point of connection and meters. b. Show new valves, flow valves and controller layout.
WATER USE CALCULATIONS, SCHEDULING and GUIDELINES
c. Provide water use calculations identifying maximum applied water allowance and quantity of water use.
d. Develop water use schedule with seasonal adjustments along with estimated water use calculations.
e. AB 1881 certificate of completion at end of project.
5.6 PLANTING PLAN – Identify all proposed plant species, water use, size and type. a. Drought tolerant, low‐maintenance adaptive plants and California natives where possible. b. Provide all surface material, gravel, boulders, etc.
5.7 DETAIL SHEETS – Construction details of all proposed elements.
5.8 SPECIFICATIONS – Book form to describe required materials, workmanship and grading, planting and irrigation techniques. Including requirements for contractor‐supplied as‐built drawings.
5.9 COST ESTIMATE – Calculations and detailed cost estimate to verify budget and bid documents.
5.10 SUBMITTALS – Sets of development plans for the Client; revise construction documents, as required, for approval. Submittal of construction documents to Client at 75% and 100%‐Final.
DELIVERABLES:
Meetings with staff for Review and Comments
Construction Plans 75% and 100%‐Final
50 Item 5.
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TASK 6 – BID ADMINISTRATION and CONTRACTOR SELECTION
6.1 Prepare PDF plan set, bid sheet and schedule to include in Bid Documents.
6.2 Prepare content Bid Documents, Notice to Contractors and Special and General Provisions. (support with CITY Attorney)
6.3 CITY to provide Bid Forms and collect bids from contractors with MDG to synthesize.
6.4 Attend pre‐bid walk of the site and review of plans.
6.5 MDG to provide Addenda and Requests for Information (RFIs) – Provide clarifications of the construction documents to contractors.
6.6 BID REVIEW – Review bids with Parks and Recreation to verify that they conform to standards set forth in the specifications of the Project.
TASK 7 – CONSTRUCTION ADMINISTRATION and INSPECTIONS
7.1 SUBMITTALS and RFIs – Review and accept or deny required contractor submittals, RFIs, cutsheets and samples.
7.2 SCHEDULED SITE VISITS – Participate in 7‐9 meetings / project site visits with the project contractor and Client staff to review the progress of construction and inspect the site and work at determined milestones.
a. Kick‐off with contractor to discuss methodology and schedule. b. Demolitions marked prior to removal.
c. Rough grading and drainage prior to hardscape construction. (CITY‐MDG) d. Site accessories such as fences, utilities and access. (CITY‐MDG) e. Hardscape layout and forming prior to pouring concrete and sample finish. f. Playground inspection review
g. Restroom modifications
h. Finish grading of new areas along with drainage trench. (CITY‐MDG) i. Irrigation installation, trench depth, backfill, clock adjustments and system operations. j. Plant material inspection. (onsite, coordinate previously prior to planting) k. Pre‐maintenance period observation and punch list to confirm completion. (CITY‐MDG) l. Final walk‐through/post‐maintenance period punch list. (CITY‐MDG) m. AB 1881 Requirements – Provide Certificate of Completion to Client. n. MDG to perform all other inspections including play equipment certifications.
7.3 As‐Built Drawings developed from contractor drawings.
7.4 Project closeout process.
51 Item 5.
Hewitt Park Design Development / Construction Documents MDG Project No: 2502
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COST SUMMARY PER TASK
TASK 1: PROJECT LAUNCH, PROGRAM DEVELOPMENT and PROJECT COORDINATION $ 35,400 TASK 2: SITE ANALYSIS, BASE DEVELOPMENT, WELL and TOPOGRAPHY $ 28,242 TASK 3: SCHEMATIC DESIGN CONCEPT, PUBLIC OUTREACH, COST ESTIMATE $44,200 TASK 4: DESIGN DEVELOPMENT, COSTS and APPROVALS $42,700 TASK 5: CONSTRUCTION DOCUMENTS and SUBMITTALS (75% and 100%‐Final) $ 247,630 TASK 6: BID ADMINISTRATION and CONTRACTOR SELECTION $11,400 TASK 7: CONSTRUCTION ADMINISTRATION and INSPECTIONS $27,164 REIMBURSABLES (2.5%) $ 10,768
CONTINGENCY (upon written approval) $ 20,000
TOTAL $ 467,504
Billing will occur monthly. If the project scope changes in a way that could cause the additional or less work beyond this contract, Landscape Architect will dictate an addendum to contract and notify owner prior to exceeding or reducing the estimate.
SECTION 2 ‐ BASIS OF COMPENSATION
Compensation for services described in Section 1 shall be a not to exceed fee of $ 467,504. Charges for Services described in Section 1 shall be billed monthly in proportion to the work completed. Client agrees to pay Consultant within thirty (30) days after the date of billing. Payments due Consultant and unpaid under this Agreement shall bear interest on the unpaid balance at a rate of 1.5% per month which is an annual percentage rate of 18%. If payment is not received within forty‐five (45) days, Consultant may, at his discretion, stop work until payment is received. For Additional Services, provided under Section 3, compensation shall be on an hourly rates and expense basis in accordance with MDG’s Schedule of Rates.
Schedule of Rates to be provided at the time Additional Services are requested.
SECTION 3 ‐ ADDITIONAL SERVICES
CONSTRUCTION MANAGER (6 MONTHS – Hired by City of Oroville) $ 25,000 Services not described in Section 1 shall be provided if authorized in writing by Client.
Additional Services include but are not limited to:
1. Geotech inspection and testing during construction, as needed. (approx. $10,500)
2. Biologist’s inspections on elderberry. ($TBD)
3. Additional meeting, site visits or inspections during construction.
2. Permitting fees.
3. Construction permits will be by construction contractor.
4. Work involving environmental impact reports or initial study.
5. Civil engineering or design for off‐site improvements.
6. Construction material testing such as concrete density or soil compaction tests.
7. Work involving making or processing applications for additional permits.
8. Renderings, models, computer generated animations or other forms of presentation materials, that go beyond the stipulated plans, drawings and documents outlined in Section 1. 52 Item 5.
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9. Any service or reimbursable expense not included in or in excess of Section 1 that are provided by Melton Design Group, Inc. at your request or concurrence.
MISCELLANEOUS PROVISIONS
1. This proposal will remain valid for a time period of 6 months, after which if a contract has not been executed MELTON DESIGN GROUP reserves the right to revise billing rates and fee amounts.
2. If project is put on hold for 6 months a 5% startup fee will be assessed.
3. Invoices are due and payable within 30 days of receipt. A fee of 1.5% interest will be charged per month if past 30 days.
4. This Agreement is governed by the law of Landscape Architect’s principal place of business.
5. This Agreement is the entire and integrated agreement between Client and Landscape Architect and supersedes all prior negotiations, statements or agreements, either written or oral. The parties may amend this Agreement only by a written instrument signed by both Client and Landscape Architect.
6. If any term or provision of this Agreement is found to be unenforceable or invalid for any reason, the remainder of this Agreement shall continue in full force and effect, and the parties agree that any unenforceable or invalid term or provision shall be amended to the minimum extent required to make such term or provision enforceable and valid.
7. Neither Client nor Landscape Architect shall assign this Agreement without the written consent of the other.
8. Irrespective of any other term in this Agreement, Landscape Architect shall not control or be responsible for construction means, methods, techniques,schedules,sequences or procedures; or for construction safety or any other related programs; or for other parties’ errors or omissions or for another parties’ failure to complete their work or services in accordance with Landscape Architect’s documents.
9. Client agrees to indemnify, defend and hold Landscape Architect harmless from and against any and all claims, liabilities, suits, demands, losses, costs and expenses, including, but not limited to, reasonable attorneys' fees and all legal expenses and fees incurred through appeal, and all interest thereon, accruing or resulting to any and all persons, firms or any other legal entities on account of any damages or losses to property or persons, including injuries or death, or economic losses, arising out of the Project and/or this Agreement, except that the Landscape Architect shall not be entitled to be indemnified to the extent such damages or losses are found by a court or forum of competent jurisdiction to be caused by Landscape Architect's negligent errors or omissions.
10. Client and Landscape Architect waive consequential damages for any claims, disputes or other matters in question arising out of or relating to this Agreement. Landscape Architect’s waiver of consequential damages, however, is contingent upon the Client requiring contractor and its subcontractors to waive all consequential damages against Landscape Architect for claims, disputes or other matters in question arising out of or relating to the Project.
11. To the extent damages are covered by property insurance during construction, Client and Landscape Architect waive all rights against each other and against the contractors, consultants, agents and employees of the other for such damages. Client or Landscape Architect, as appropriate,shall require of the contractors, consultants, agents and employees of any of them similar waivers in favor of the other parties described in this paragraph.
12. Client acknowledges and agrees that proper project maintenance is required after the Project is complete. A lack of or improper maintenance in areas such as irrigation equipment may result in damage to property or persons. Client further acknowledges and agrees that, as between the parties 53 Item 5.
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to this Agreement, Client is solely responsible for the results of any lack of or improper maintenance.
13. Nothing in this Agreementshall create a contractual relationship for the benefit of any third party.
14. Landscape Architect agrees to provide its professional services in accordance with generally accepted standards of its profession.
15. Landscape Architects are regulated by the State of California. Any questions concerning a Landscape Architect may be referred to:
Landscape Architects Technical Committee
2420 Del Paso Road, Suite 105, Sacramento, CA 95834. (916) 575‐7230 Let us know if you have any questions concerning this proposal. If the above meets your approval, please sign and return a copy.
Sincerely,
Greg Melton, President / CEO
Principal Landscape Architect RLA #4217
Melton Design Group, Inc.
54 Item 5.
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2022 SCHEDULE OF RATES
MDG PERSONNEL
Principal Landscape Architect $180.00 / hour
Project Manager $145.00 / hour
Irrigation Specialist $130.00 / hour
Graphic Designer $115.00 / hour
Designer/Technician $ 95.00 / hour
Administration $ 85.00 / hour
REIMBURSABLE EXPENSES
Black & White Copies 8.5 x 11 $ .30 each
Black & White Copies 11 x 17 $ .55 each
Color Copies 8.5 x 11 $ 1.35 each
Color Copies 11 x 17 $ 2.50 each
Binding Covers 8.5 x 11 $ 3.00 each
Binding Covers 11 x 17 $ 6.00 each
Black & White 24 x 36 Print $ 5.40 each
Black & White 30 x 42 Print $ 7.88 each
Color 24 x 36 Print $28.86 each
Color 30 x 42 Print $42.09 each
Premium Color Glossy Plan Print $62.50 each
Foam Core 24 x 36 $13.25 each
Foam Core 30 x 42 $15.75 each
Flash Drive $ 9.00 each
Overnight Mail Cost Plus 15%
Courier Cost Plus 15%
Photography Cost Plus 15%
Soils Analysis Cost Plus 15%
Travel / Automobile $ .62 per mile
Note: Rates subject to change after one year of proposal
55 Item 5.
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I hereby authorize Melton Design Group, Inc. to proceed with the work as set forth in this contract.
Date:_____________ By:
Print Name:
Title:
Company:
NAME AND ADDRESS WHERE BILLINGS ARE TO BE SENT:
Print Name and Title:
Company Project # or Reference Name:
Phone #: Email:
Mailing Address:
State / Zip Code:
If more than one recipient for billings, please add Email below.
Email: ________________________________
All checks are to be mailed to: Melton Design Group, Inc. 820 Broadway Street
Chico, CA 95928
Billing Questions: Teresa Walsh, Controller
(530) 899‐1616, [email protected]
56 Item 5.
WITHFITNESSSTATIONS
PICNICTABLE
FITNESSSTATION
DRINKINGFOUNTAIN
LIGHTING
FITNESSTATION
BENCH
PICNICAREAS
PATHWAY
LANDSCAPEAREA
NEWPARKING
INCLUSIVEPLAY
GROUPPICNICSHELTER
SPRAYGROUND
DOGPARK
OPENTURF
HEWITTPARK
MASTERPLAN-OROVILLE
SPORT
COURTS
CLIMBING
BOULDER
SLACKLINE
F
BASKETBALLCOURTS(2)
20 (YOUTHANDADULT)
WITHTHEME
ATEXISTINGLOCOMOTIVE
EXISTINGHORSESHOE
EXISTINGRESTROOM
MEADOW
(TIMEDLIGHTING)
DOGPLAZA
FENCE
RAISETREECANOPY
RAISETREE
CANOPY
FENCE
SMALLPARKSIGN
SMALLPARKSIGN
10X12SHADESTRUCTURE
HOOPSPLAZA
(TIMEDLIGHTING)
TRAINMURALONFENCE
CLIMBINGFUN
NEWENTRY
NEWENTRY
NEWENTRY
PLAYVILLAGE
PICKLEBALLZONE
(TIMEDLIGHTING)
AREA/SHELTER
TURFMEADOW
SMALLDOGPARKWITHOBSTACLECOURSE
ANDDOGWATERINGSTATION
LARGEDOGPARKWITHWITHOBSTACLECOURSE
ANDDOGWATERINGSTATION
TOTPLAYAREA(INCLUSIVE)
SHADESTRUCTURE
TEENPLAY-BOULDERANDSLACKLINE
NEWWELL
CHILDRENPLAYAREA(INCLUSIVE)
10 11
12 13
14 15
15 6
5 5
5 12
8 13
12 11 10
ONGRADESLIDE
14 13
2456 3.02.2021
8 9
9 9
9 NEWSTEELFENCEWITHINTERPRETIVEPANELSATEXISTING
LOCOMOTIVE-PAINTLOCOMOTIVEBLACK
5 2
5 F
F
F
10 57
Item 5.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND COUNCIL MEMBERS
FROM: DAWN NEVERS, ASST COMMUNITY DEVELOPMENT DIRECTOR
WES ERVIN, CITY PLANNER
RE: AGREEMENT WITH PLACEWORKS, INC. AND BUDGET ADJUSTMENT
FOR AN AMENDMENT TO THE GENERAL PLAN CIRCULATION
ELEMENT TO INCORPORATE “VEHICLE MILES TRAVELED”
ANALYSIS.
DATE: APRIL 5, 2022
SUMMARY
The City Council will consider an agreement with Placeworks, Inc. to amend the Circulation Element of the General Plan to incorporate Vehicle Miles Traveled (VMT) analysis as required by the State. The action includes creating a Budget Adjustment for the agreement.
DISCUSSION
In August 2021 the Council approved issuing an RFP for a consultant to update the Circulation Element of the General Plan. Instead, with the City Attorney’s approval for a sole source contract, staff approached Placeworks, Inc., who previously had prepared Oroville’s 2015 General Plan Update and worked on the 2015 Climate Action Plan. Placeworks is also currently performing very similar work for Butte County.
The Placeworks proposal has several options, including:
1. The basic Circulation Element update assuming an Addendum to the existing General Plan EIR will be adequate ($90,000).
2. An augmentation in case the Element update requires a Supplemental EIR (adds an additional $53,000 -113,000).
3. An optional Greenhouse Gas inventory update and Climate Action Plan revision ($135,000 – 180,000).
Staff requests Council approval of the basic update for $90,000, with a not-to-exceed $150,000 in case a Supplemental EIR becomes necessary. The approval includes authorizing a corresponding Budget Adjustment.
FISCAL IMPACT
58 Item 6.
$90,000 to $150,000 from the General Fund.
RECOMMENDATION
1. Adopt Resolution No. 9040 -- A RESOLUTION OF THE OROVILLE CITY COUNCIL
AUTHORIZ ING AND DIRECTING THE MAYOR TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT BETWEEN THE CITY OF OROVILLE AND PLACEWORKS, INC. (Agreement 3409), WITH A CORRESPONDING BUDGET ADJUSTMENT.
ATTACHMENTS
1. August 3, 2021 Council staff report explaining the reasons for the update.
2. Resolution no. 9040
3. Agreement no.3409
59 Item 6.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND COUNCIL MEMBERS
FROM: DAWN NEVERS, ASST COMMUNITY DEVELOPMENT DIRECTOR
WES ERVIN, CITY PLANNER
RE: GENERAL PLAN AMENDMENT TO INCORPORATE “VEHICLE MILES TRAVELED” ANALYSIS
DATE: AUGUST 3, 2021
SUMMARY
The State now requires all local jurisdictions to incorporate Vehicle Miles Traveled (VMT) analysis into all project environmental reviews. This requirement is killing housing projects throughout the state, especially in rural communities. Staff instead proposes to conduct a programmatic city-wide analysis and seeks Council’s direction to move forward.
DISCUSSION
Effective July 1, 2020, all local jurisdictions are required to analyze the VMT’s generated by new development projects if they require General Plan or Zoning amendments or are otherwise discretionary. The explanation below is over-simplified for clarity.
VMT analysis requires sophisticated and expensive gravity modeling. As an example, each new single-family household generates about 9.2 vehicle trips per day1, with the distances travelled dependent on how close shopping, schools and employment are to the new home.
The State’s recommended threshold of significance is 110 vehicle trips per day, the equivalent of about 11 homes. Any larger subdivision will thus generate significant impacts, which triggers an Environmental Impact Report, and if the impacts are significant and unavoidable, project approval would require a Statement of Overriding Considerations. Since the City has at least 3 active subdivision prospects of about 100 homes each, an EIR would be triggered for each project. Mitigation is not viable in rural communities such as Oroville because of the distances, and because transit, bicycle and walking are infeasible.
Alternative approach
Instead of requiring an EIR for every new housing project, staff proposes to take the global approach of incorporating VMT analysis into the General Plan and assessing future VMT’s city-wide based on expected growth. Several communities, including Vacaville and Murrieta, are taking this approach. Staff intends to make as few changes as possible to the General Plan, which includes amending the Circulation Element, possibly updating our Greenhouse
1 Institute for Traffic Engineering
60 Item 6.
Gas emissions (GHG), and drafting an associated Supplemental EIR. If the analysis shows that future VMT impacts will be significant and unavoidable, staff would ask the Council to adopt the amended General Plan and a Statement of Overriding Considerations that applies City-wide, and that declares housing development to be more important than reducing emissions.
FISCAL IMPACT
The Circulation Element Update, GHG emissions inventory update and SEIR will likely cost in the $200,000 range and take 9-12 months to complete.
RECOMMENDATION
Direct staff to plan the programmatic approach, issue a Request for Proposals, and return with a detailed budget and schedule for Council’s approval.
ATTACHMENTS
none
61 Item 6.
Agreement No.
ATTACHMENT A
CONTRACT FOR PROFESSIONAL SERVICES
This Agreement is made and entered into as of __________ by and between the City of Oroville, a municipal corporation (“City”) and Placeworks, Inc. (“Consultant”) to provide consulting services for an update of the Oroville General Plan Circulation Element.
RECITALS
A. Consultant is specially trained, experienced, and competent to provide the services as required by this Agreement; and
B. Consultant possesses the skill, experience, ability, background, license, certification, and knowledge to provide the services described in this Agreement on the terms and conditions described herein; and
C. City desires to retain Consultant to provide administrative and technical services relating to the completion of the Circulation Element Update in accordance with the Scope of Work in Attachment A.
AGREEMENT
1. SCOPE OF SERVICES. The Consultant shall furnish but are not limited to the Scope of Work as described in the Attachment A.
2. TIME OF PERFORMANCE. The project shall be completed within nine (9) months unless extended with prior approval of the City.
3. COMPENSATION. Compensation to be paid to Consultant is set forth as follows:
In no event shall Consultant’s compensation exceed the amount of:
a. Ninety thousand ($90,000) dollars with an Addendum to the General Plan EIR, or
62 Item 6.
Agreement No.
b. One hundred fifty thousand ($150,000) dollars if a Supplemental EIR is necessary
without additional written authorization from the City. Payment by City under this agreement shall not be deemed a waiver of defects in Consultant’s services, even if such defects were known to the City at the time of payment.
4. METHOD OF PAYMENT. Consultant shall invoice to City describing the work performed. Consultant’s invoice shall include a brief description of the services performed, the dates the services were performed, and a description of any reimbursable expenditures. City shall pay Consultant no later than 30 days after approval of the invoice by City staff. When payments made by City equal 90% of the maximum fee provided for in this Agreement, no further payments shall be made for services until the final work under this Agreement has been accepted by the City.
5. EXTRA WORK. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of Consultant’s services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without prior written authorization from City.
6. TERMINATION. This Agreement may be terminated by the City immediately for cause or by either party without cause upon fifteen days’ written notice of termination. Upon termination, Consultant shall be entitled to compensation for services properly performed up to the effective date of termination.
7. OWNERSHIP OF DOCUMENTS. All plans, studies, documents and other writings prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes 63 Item 6.
Agreement No.
and internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party.
Consultant shall, at Consultant’s expense, provide such reports, plans, studies, documents, and other writings to City within three (3) days after written request.
8. LICENSING OF INTELLECTUAL PROPERTY. This Agreement creates a nonexclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in documents or works of authorship fixed in any tangible medium of expression, including but not limited to, data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents and Data”). Consultant shall require all subcontractors to agree in writing that City is granted a nonexclusive and perpetual license for any Documents and Data the subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal right to license any and all Documents and Data. Consultant makes no such representation and warranty in regard to Documents and Data which may be provided to Consultant by City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
9. CONFIDENTIALITY. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written 64 Item 6.
Agreement No.
consent of City, be used by Consultant for any purposes other than the performance of the services under this Agreement. Nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City’s name or insignia, photographs relating to project for which Consultant’s services are rendered, or any publicity pertaining to the Consultant’s services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
10. LOBBYING
No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with the awarding of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal agreement, grant, loan, or cooperative agreement.
11. CONSULTANT’S BOOKS AND RECORDS.
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, expenditures and disbursements charged to City for a minimum period of five (5) years, or for any longer period required by law, from the date of final payment to Consultant to this Agreement.
b. Consultant shall maintain all documents and records which demonstrate 65 Item 6.
Agreement No.
performance under this Agreement for a minimum of five (5) years, or for any longer period required by law, from the date of termination or completion of this Agreement.
c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Administrator, City Attorney, City Finance Director, Housing and Urban Development (HUD), California State Housing and Community Development (HCD), the Inspector General or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when its practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant’s address indicated for receipt of notices in this Agreement for a period of (5) five years or longer, from the date of termination or completion of this agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City may, by written request by any of the above named officers, require that custody of the records be given to the City and that the records and documents be maintained by City Hall.
12. INDEPENDENT CONTRACTOR. It is understood that Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and shall not act as an agent or employee of the City. Consultant shall obtain no rights to retirement benefits or other benefits which accrue to City’s employees, and Consultant hereby expressly waives any 66 Item 6.
Agreement No.
claim it may have to any such rights.
13. INTEREST OF CONSULTANT. Consultant (including principals, associates, and professional employees) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
1. will conduct research and arrive at conclusions with respect to its rendition of information, advice, recommendation, or counsel independent of the control and direction of the City or any City official, other than normal agreement monitoring; and
2. possess no authority with respect to any City decision beyond rendition of information, advice, recommendation, or counsel. (FPPC Reg. 18700(a)(2).)
14. PROFESSIONAL ABILITY OF CONSULTANT. City has relied upon the professional training and ability of Consultant to perform the services hereunder as a material inducement to enter into this Agreement. All work under this Agreement shall be performed by Consultant and shall be in accordance with 67 Item 6.
Agreement No.
applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Consultant’s field of expertise.
15. COMPLIANCE WITH LAWS. Consultant shall use the standard of care in its profession to comply with all applicable federal, state and local laws, codes, ordinances and regulations.
16. LICENSES. Consultant represents and warrants to City that it has all licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are required by the City for its business.
17. INDEMNITY. Consultant agrees to defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therein), arising from its performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement, except for any such claim arising from the sole negligence or willful misconduct of the City, its officers, agents, employees or volunteers.
18. INSURANCE REQUIREMENTS. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of the Agreement, the insurance coverage and policies as set forth in Exhibit “B” attached hereto.
19. NOTICES. Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such 68 Item 6.
Agreement No.
notice shall be addressed to the other party at the address set forth below.
Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.
If to City: Bill LaGrone, City Administrator
City of Oroville
1735 Montgomery Street
Oroville, CA 95965-4897
If to Consultant:
_________________
_________________
_________________
_________________
20. ENTIRE AGREEMENT. This Agreement constitutes the complete and exclusive statement of agreement between the City and Consultant. All prior written and oral communications, including correspondence, drafts, memoranda, and representations are superseded in total by this Agreement.
21. AMENDMENTS. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney.
22. ASSIGNMENT AND SUBCONTRACTING. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express prior written consent of the City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual 69 Item 6.
Agreement No.
relationship between City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law.
23. WAIVER. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.
24. SEVERABILITY. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.
25. CONTROLLING LAW AND VENUE. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Butte, or in the United States District Court, Easter District of California.
26. LITIGATION EXPENSES AND ATTORNEYS’ FEES. If either party to this Agreement commences any legal action against the other part arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys’ fees.
27. MEDIATION. The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree upon the mediator and shall divide the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to American Arbitration Association (AAA) or its successor in interest. AAA shall provide the parties with the names of five qualified mediators. Each party shall have the option to strike two of the five 70 Item 6.
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mediators selected by AAA and thereafter the mediator remaining shall hear the dispute. If the dispute remains unresolved after mediation, either party may commence litigation.
28. EXECUTION. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.
29. AUTHORITY TO ENTER AGREEMENT. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.
30. PROHIBITED INTERESTS. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
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31. DISCRIMINATION ACTS AND ASSURANCES. The Consultant during the performance of this Agreement assures that no otherwise qualified person, shall be excluded from participation or employ, denied program benefits, or be subjected to discrimination based on race, color, national origin, sex, age, or handicap, under any program or activity funded by this Agreement, as required by Title VI of the Civil Rights Act of 1964, Title I of the Housing and Community Development Act of 1974, as amended, and the Age Discrimination Act of 1975, and all implementing regulations.
32. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SECTION 3 REQUIREMENTS. If the work to be performed under this Agreement is on a project assisted under a program assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 170lu. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be given lower income residents of the project area and agreements for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of this project. The parties to this Agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFG Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this Agreement. The parties to this Agreement certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. The City at direction from the State, will take 72 Item 6.
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appropriate action pursuant to this agreement upon a finding that the Consultant or its subcontractor(s) is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part 135.
33. NONDISCRIMINATION CLAUSE. During the performance of this Agreement, Consultant and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, age (over 40) or sex. Consultant shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et. seq.) And the applicable regulations promulgated thereunder (California Code of Regulation, Title 2, Section 7258.0 et. seq.) The applicable regulations of the Fair Housing Commission implementing the California Code of Regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full.
Consultant shall give written notice of their obligation under this clause to labor organizations with which they may have a collective bargaining or other agreement. Consultant shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement. Consultant shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this contract.
34. EQUAL EMPLOYMENT OPPORTUNITY. In rendering the services contemplated by this agreement with CITY, Consultant shall not discriminate against any employee or applicant for employment because of race, color, creed, sex, age, or national origin. Consultant shall comply with Title IV of the Civil Rights Act of 1964 and shall provide such reports as may be required to carry out the intent of this section. Consultant shall also comply with Executive Order 73 Item 6.
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11246, as amended by Executive Order 11375, and as supplemented in Department of Labor regulations (41 CFR, Part 60).
Furthermore:
a. Consultant shall take affirmative action to insure that job applicants are employed and that employees are treated during employment without regard to race, religion, sex, color, age, national origin, or physical handicap. The term "affirmative action" shall include, but not be limited to:
employment, upgrading, demotion or transfer; recruitment advertisement; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
b. Consultant agrees to post such notices, to be provided, setting forth the provisions of this equal employment opportunity and affirmative action program.
c. Consultant shall in all solicitations or advertisements for employees placed by or on behalf of the Consultant state that all qualified applicants will receive consideration to employment without regard to race, religion, sex, color, age, national origin, or physical handicap. Notification that Consultant is an "Equal Opportunity Employer" or "EOE" constitutes satisfaction in this notice requirement.
35. FAIR EMPLOYMENT PRACTICES. Consultant will permit access to records of employment, employment advertisements, application forms, and other pertinent data and records by the State Fair Employment Practices Commission, or any other agency of the State of California designated by awarding authority, for the purposes of investigation to ascertain compliance with the Fair Employment 74 Item 6.
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Practices Provision. In the event of any violations by the Consultant of state fair employment laws, the State of California shall have the right to terminate this Agreement either in whole or in part. In the event of such termination, any loss or damage sustained by the State of California and/or the City in securing the goods or services hereunder shall be borne and paid for by the Consultant and by their surety under performance bond, if any, and, in addition to other remedies, the State of California and the City may deduct from any monies due or that thereafter become due to the Consultant the difference between the price named in the particular agreements and the actual cost thereof to the State of California and the City.
36. COMPLIANCE WITH LABOR CODE OF STATE OF CALIFORNIA Pursuant to the provisions of Section 3700 of the Labor Code, Consultant will require every employer to be insured against liability for workman's compensation, or to undertake self-insurance in accordance with the provisions of that code and will comply with such provisions before commencing the performance of the work of a particular agreement. Furthermore, Consultant shall also provide evidence of workmen's compensation insurance, unemployment insurance and disability insurance to cover all of Consultant's employees.
37. THE CIVIL RIGHTS ACT, HCD, AGE DISCRIMINATION AND REHABILITATION ACTS ASSURANCE During the performance of this Agreement the Consultant assures that no otherwise qualified person shall be excluded from the participation or employment, denied program benefits, or be subject to discrimination based on race, color, national origin, sex, age or handicap, under any program or activity funded by this Agreement, as required by Title VI of the Civil Rights Act of 1964, Title I, of the Housing and Community Development Act 75 Item 6.
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of 1974, as amended, the Age Discrimination Act of 1975 and the Rehabilitation Act of 1973, and all implementing programs.
38. THE TRAINING, EMPLOYMENT AND CONTRACTING OPPORTUNITIES FOR
BUSINESS AND LOWER INCOME PERSONS ASSURANCE OF COMPLIANCE a. The work to be performed under this Agreement is on a project assisted under a program providing direct federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C., 1701 u. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be given to lower income residents of the project area and agreements for work in connection with the project be awarded to business concerns which are located in or owned in substantial part by persons residing in the area of the project.
b. The parties to this Agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this Agreement. The parties to this Agreement certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements.
c. The Consultant will send to each labor organization or representative of workers with which there is a collective bargaining agreement or other agreement or understanding, if any, a notice advertising the said labor 76 Item 6.
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organization or worker's representative of the commitment under this Section 3 Clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. d. The Consultant will include this Section 3 Clause in every subcontract for work in connection with the project and will, at the direction of the applicant for or recipient of federal financial assistance, take appropriate action pursuant to the subcontract upon finding the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part 135 and will not let any subcontract unless the subcontractor has first provided a preliminary statement of ability to comply with the requirements of these regulations.
e. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of the Agreement, shall be a condition of the federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its contractor or subcontractors, its successors, and assigns to those sanctions specified by the grant or loan agreement or agreement through which federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135.
39. STATE NONDISCRIMINATION CLAUSE
a. During the performance of this Agreement, Consultant and its subcontractors shall not lawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, 77 Item 6.
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ancestry, physical handicap, medical condition, marital status, age (over 40), or sex. Contractors and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. Contractors and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code Section 12990), set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Consultant and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
b. This Consultant shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this agreement.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the ___ day of _____2021, at City of Oroville, California.
CITY OF OROVILLE
A Municipal Corporation
___________________________________
Mayor, Chuck Reynolds
CONSULTANT
___________________________________
Name of Principal:
Title:
APPROVED AS TO FORM: ATTEST:
By:______________________________ By:__________________________ City Attorney, Scott E. Huber Assistant City Clerk, Jackie Glover Attachments:
A. Scope of Work
B. Insurance Requirements
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Wes Ervin, Planner
City of Oroville
1735 Montgomery Street
Oroville, CA 95965
Subject: VMT Analysis, General Plan Circulation Element Update, GHG Inventory Update and Environmental Review
Dear Wes:
Thank you for this opportunity to prepare this revised proposal to update the City’s Circulation Element (to reflect the change from LOS to VMT), review the existing General Plan to see if other elements need an update, and provide a supplemental EIR based on the existing General Plan EIR.
As we discussed, we have prepared a concise scope that emphasizes key components of our approach to this project, along with line-item costs for each proposed task. PlaceWorks has a long history of working in Oroville, including previous work on the City’s General Plan and CAP. We believe that we can leverage our successful and productive relationship to lead an efficient and cost-effective process for the update.
I will serve as principal-in-charge of this effort and will be supported by the director of our Climate Action and Resiliency practice, Tammy L. Seale. Charlie Knox, a principal based in our Berkeley office, will assist with the review of the General Plan and serve as a senior advisor for the project. Fehr & Peers, a long-time collaborator of ours, will provide transportation services, lead update of the Circulation Element, and support the CAP update.
Project Understanding
We view this project as a technical refresh of the City’s General Plan. State law has changed, as have some local and regional priorities. We will work with the City to change things necessary to remain compliant with regulations and to meet the needs of the City. As a key to the technical update, we can build upon the investment the City made in its previous General Plan and extend the life of the plan.
The work effort is not a wholesale re-write of the General Plan, but rather a review of the current goals, policies, and programs to render the plan easier for the City to implement. Key objectives of this work include:
» VMT analysis
» Circulation Element update
» Greenhouse gas (GHG) Inventory update (optional or later task) » Climate Action Plan (CAP) update (optional or later task) » Environmental review
» Project management/meetings
Scope of Work
We recognize that it may be necessary to refine the scope as the project progresses and will be happy to work with you to ensure the successful completion of the project.
REVIEW OF EXISTING GENERAL PLAN
PlaceWorks will meet with City staff to discuss the status of policy implementation and review issues that staff believes should be addressed as part of the update. We’ll discuss ideas on potential policy changes and methods 80 Item 6.
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of addressing State requirements with a clear City of Oroville focus. We will prepare a memorandum that summarizes the new legal requirements for the General Plan, and where the current plan may need revision.
VMT ANALYSIS/CIRCULATION ELEMENT
In discussion with the City, land use growth and associated circulation diagram improvements are not expected to change as part of this general plan update. Instead, this update to the general plan is intended to address VMT impacts of the plan and to provide a streamlined CEQA review of subsequent projects. Given the City’s desired objectives, we will review any modifications to the general plan elements to determine if they would affect the projected growth and traffic forecasts based on the recently updated BCAG Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS) model that was modified for SB 743 purposes. If a substantial change is identified, then Fehr & Peers will develop a specific scope of work for that additional analysis.
Our team will rely on the existing 2020 post-Camp Fire model scenario to represent baseline conditions and the 2040 RTP/SCS scenario to represent cumulative conditions. If the general plan update does not result in a change to the land use growth forecasts or circulation diagram, then the 2040 RTP/SCS scenario will represent both the no project and plus project scenarios for purposes of the CEQA transportation impact analysis. The model will be used to generate the following VMT metrics for use in the analysis of transportation impacts as well as impacts to air quality, greenhouse gases, and energy consumption. • home-based VMT per resident
• home-based work VMT per employee
• total VMT generated by land uses in Oroville
• total VMT by speed bin model wide
Fehr & Peers will collaborate with the City and PlaceWorks to develop appropriate VMT impact thresholds for the general plan that build off our work on the interim VMT thresholds for Butte County. At a minimum, we propose to generate the first two metrics for each traffic analysis zone (TAZ) in the city. The corresponding citywide and regional average values for these two metrics will also be provided. The thresholds will be applied to determine whether the change in VMT associated with the general plan update will cause a significant impact.
Any significant VMT impact will be mitigated to the extent feasible by plan policies and actions. Ideally, any feasible mitigation can be implemented as standard conditions of approval for subsequent land use projects and those projects can take advantage of Government Code Section 15183 to relieve future projects consistent with the plan from further VMT impact analysis.
To complete the transportation impact analysis for CEQA, Fehr & Peers will also analyze potential impacts to transit, walking, bicycling, and safety. This analysis will rely on qualitatively evaluation regarding whether implementation of the plan would disrupt existing, or interfere with planned, facilities and services for these modes. For safety, we will assess the city’s proposed circulation improvements for consistency with applicable design standards and describe the city’s process for evaluating collision history and risk to minimize future collisions. If Caltrans provides a safety evaluation for the state highway system, that information will be incorporated into the transportation impact section.
Documentation will include preparing the administrative draft transportation impact chapter of the general plan EIR following the format provided by PlaceWorks. Up to 8 hours has been budgeted to respond to comments and prepare the public draft chapter. An additional 4 hours has been budgeted to respond to public comments.
Fehr & Peers will attend up to five on-line meetings and is available to attend in-person or additional on-line meetings on a time and material basis.
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ENVIRONMENTAL REVIEW
Addendum
Under our approach for the General Plan update, only the areas that have changed will be updated. This means that some General Plan elements will remain relatively untouched through the process, others will have updated information or graphics, and some may have significant revisions. The background memorandum will serve as a roadmap for this effort and provide both the setting discussion and the substantial evidence for the environmental analysis. Accordingly, we believe that the changes to the General Plan are informational and can be accomplished with an Addendum to the EIR for the current General Plan.
Supplement to the General Plan EIR
As requested, the following scope would result in a supplemental EIR to the General Plan EIR (SCH#2014052001) to evaluate the shift from LOS to VMT. With the approach for a supplement to the General Plan EIR, only the areas that have changed as a result of the project will be affected. Before embarking on the supplemental EIR, we advise a meeting to discuss the project, potential changes, and whether any of the CEQA Guideline provisions of § 15162 would result in the need for a supplemental EIR. It is possible that the changes to the General Plan could be accomplished with an Addendum which would save the City money and time. It is unlikely that the project could be completed within 9-months if a supplemental EIR is required.
The following table below shows our assumptions on the contents of the SEIR. Issues with minimal change are those that will need to be updated with new information or graphics, but the overall environmental conclusion would remain unchanged. As can be seen in the table below, we believe many of the EIR sections will remain adequate for the project with no substantive changes. This table is based on our current knowledge of the project and will be refined after the details of the project have been finalized.
ENVIRONMENTAL ISSUE DISPOSITION
ENVIRONMENTAL ISSUE NO CHANGE MINIMAL CHANGE
Air Quality X
Biological Resources X
Cultural Resources X
Energy X
Geology and Soils X
Greenhouse Gas Emissions X
Hazards and Hazardous Materials X
Hydrology and Water Quality X
Land Use and Planning X
Mineral Resources X
Noise X
Population and Housing X
Public Services X
Recreation X
Transportation X
Tribal Cultural Resources1 X
Utilities and Service Systems X
Wildfire X
Alternatives X
Cumulative X
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Notice of Preparation and Scoping Meeting
Once the draft General Plan and zoning changes can be defined, PlaceWorks will prepare an administrative draft of the Notice of Preparation and submit the NOP to the City for review and approval before circulation. PlaceWorks will prepare drafts of all requisite filing forms and submit copies to the State Clearinghouse. This scope assumes the City will file the Notice of Preparation with the County Clerk and will publish the notice in the local paper, starting the 30- day public comment period for the NOP.
A public scoping meeting should be held approximately two weeks into the 30-day public comment period to allow public agencies and the public to provide input on the scope of the EIR analysis. This is also the appropriate time to initiate SB-18 and AB-52 tribal consultation. PlaceWorks will provide a PowerPoint and comment cards in support of the meeting and will attend to explain the CEQA process and the scope of the SEIR. The format of the meeting is not set by CEQA and can range from an open house to a standard presentation. The format for the scoping meeting will be determined with the City as part of the kick-off meeting.
Administrative Draft Supplemental EIR
Preparation of the SEIR will follow the CEQA Guidelines and the process agreed upon by the City at the kick-off meeting. PlaceWorks will prepare administrative drafts of all environmental documents as electronic submittals. The scope assumes a single set of consolidated electronic comments from the City. Public review drafts of all documents will be provided in both electronic and hard copy as requested in the final scope of work. PlaceWorks will also provide electronic draft versions of all notices and transmittals for review by the City.
PlaceWorks will prepare the document for review in separate chapters with graphics. The document will be concise and formatted like the existing General Plan EIR. To the maximum extent practicable, the analysis will rely upon the General Plan EIR and supplement only when the proposed project would change the analysis or the conclusion. At the end of staff review we will meet with staff to discuss the comments and outline changes to the document.
Technical Memos
The following technical analysis will be included in the draft chapters, or as appendices to the SEIR to support the discussion in the document. The memos will include a brief narrative explaining the rationale for model assumptions but will not be lengthy technical studies.
Air Quality and Greenhouse Gas Emissions Analysis
PlaceWorks will conduct an emissions-related analysis of the potential future growth allowed under the proposed General Plan Update beyond current conditions. Emissions associated with the proposed General Plan Update will be predominately quantified using the California Emissions Estimator Model (CalEEMod). The predominate source of emissions is expected to be automobile traffic and the quantification of mobile-source emissions will be derived from the type of information identified in the transportation analysis (vehicles miles traveled, average daily trips, average trip length, etc.). The analysis of the estimated emissions will be based on the Feather River Air Quality Management District (FRAQMD)-recommended methodologies and thresholds of significance, including those documented in the 2010 Review Guidelines.
The proposed General Plan Land Use Map could potentially cite sensitive receptors adjacent to a source of Toxic Air Contaminants (TACs) resulting in significant impacts to air quality and human health. Applicable rules and regulations that would reduce public exposure to TACs, such as proposed General Plan policy provisions, FRAQMD rules and regulations and/or the development of appropriate overlays to avoid exposure of sensitive receptors to adverse levels of TACs will be discussed.
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The emissions-related analysis will document existing conditions, current regulations affecting City actions, and potential growth allowed beyond existing conditions with regard to air quality resources and GHG emissions. A draft version of the technical report will be provided for review and comment. After receiving one round of complete and compiled comments, a final version of the report will be prepared to support the SEIR.
Cultural Analysis
The scope assumes that we can rely upon the General Plan EIR and include only the SB-18 and AB-52 process in the Supplemental EIR. PlaceWorks will assist the City in completing the Tribal consultation process. PlaceWorks can include the results of the SB-18 and AB-52 tribal consultation process initiated by the City without the need for additional study. A summary of all materials received during the consultation process will be provided as an attachment to the SEIR.
Public Draft Supplemental EIR
PlaceWorks will make the changes and prepare a public draft General Plan for public circulation. Using the NOP mailing list, PlaceWorks will distribute the Summary chapter of the environmental analysis and the entire General Plan with Technical Appendices in electronic format.
The Public Draft SEIR will be provided in both electronic format for posting on the website and in hard copy with appendices on CD or thumb drive. The scope relies on the City submitting information to the Clearinghouse with their new format.
Final SEIR & Response to Comments
The Final EIR will include response to comments, any edits needed to the Draft EIR, and errata if necessary. PlaceWorks will meet with the City to evaluate the comments received on the Draft EIR and collaborate on responses. PlaceWorks will code each comment to allow efficient review of responses. If there are numerous comments on similar topics, we may recommend master response(s) to ensure a thorough and reasoned response. The response to comments will also differentiate between environmental issues and those that do not affect the adequacy of the SEIR. This scope and budget provide an estimate of the time needed to prepare the Final SEIR; we may need to reevaluate the scope and budget if significantly more comments are received.
PlaceWorks will respond to comments made on the PEIR and provide both the comments and their responses as part of the materials for consideration of the City as part of the adoption. The responses will differentiate between the General Plan policies and the Environmental Analysis. All comments will be provided with a reasoned response. We do not anticipate significant comments as part of this update effort and have budgeted 40 hours to address the comments.
Findings, Overriding Considerations, and Mitigation Monitoring Program PlaceWorks will prepare Draft Findings of Fact and Overriding Considerations (if necessary) for review by the City based on the set of findings used for the General Plan EIR, or in another format approved by the City Attorney.
PlaceWorks will also prepare a Mitigation Monitoring and Reporting Program (MMRP) based on the MMRP from the General Plan EIR and resulting from any changes discussed in the SEIR. PlaceWorks will provide electronic copies of the Findings, and MMRP for use in the staff report. PlaceWorks will assist in preparing the staff report and PowerPoint presentation for the project and will attend the certification hearing(s) for the EIR to answer questions. PlaceWorks will prepare the Notice of Determination for filing by the City. 84 Item 6.
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Task Deliverables
Notice of Preparation
Scoping Meeting Materials (PPT, Comment Cards)
Technical Memorandums summarizing assumptions for:
− Transportation (F&P)
− Air Quality and GHG
− Noise
− Cultural Resources (SB-18/AB-52 only)
Administrative Draft Supplemental EIR
Public Draft Supplemental EIR
Administrative Draft Final SEIR, Response to Comments Public Draft Final SEIR, Response to Comments
Draft Public Notices including availability, SCH e-filing forms, Notice of Determination Findings, Mitigation Monitoring Program
Presentation materials for certification hearings
PROJECT MANAGEMENT/MEETINGS
The PlaceWorks team will work with City staff to initiate the project and gain a thorough understanding of the key issues to address. We will discuss document format, existing resources, staffing and team assignments, and administrative procedures. We will also review the project work program, schedule, products, meetings, and general goals and objectives, and will assign specific project tasks and set key milestones.
In addition to the kick-off/scoping meeting, PlaceWorks will provide ongoing project management, including regular progress reports to staff, regular check-in calls with staff, and budget and schedule reviews as needed to ensure that the project remains on schedule and within budget.
As outlined in the RFP, we will plan for 3 virtual project meetings as well as attendance in person at one Planning Commission meeting and one City Council meeting.
CLIMATE ACTION PLAN UPDATE (OPTIONAL TASK)
At the request of the City this task is changed to optional. The 2015 CAP includes a summary of the community’s greenhouse gas (GHG) emissions as inventoried in 2010 and forecasted to 2020, a preliminary vulnerability assessment, a GHG reduction target for 2020, GHG reduction strategies to achieve or exceed the target, climate adaptation strategies, and implementation details including funding and financing options for all strategies. Our update of the CAP (CAP 2022) will allow the City to assess its progress toward the 2020 GHG reduction target, identify new longer term reduction targets, and refine GHG reduction and climate adaptation strategies in response to updated science, best practices, State guidance, and the City’s progress with implementation of the 2015 CAP.
The update of the 2015 CAP will result in essentially a new CAP as much of the data and analysis conducted for the 2015 CAP is based on approaches that have been updated since. Oroville CAP 2022 can incorporate and update many of the 2015 CAP’s GHG reduction and climate adaptation strategies, but most will at least be revised and re-quantified to reflect the best available data. Including as described above under “GHG Inventory Update”, we propose the following key tasks to update the 2015 CAP:
» Prepare current year GHG inventory and Update 2010 Baseline Inventory. » Assess progress of the 2015 CAP.
» Forecast GHG emissions to 2030 and 2050.
» Identify and quantify State and regional GHG reduction activities through 2030 and 2050. » Identify and quantify existing City GHG reduction programs through 2030 and 2050. 85 Item 6.
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» Identify GHG reduction targets for 2030 and 2050.
» Assess gap to achieve targets and identify revised and new GHG reduction strategies. » Quantify updated and new GHG reduction strategies.
» Update climate change vulnerability assessment (VA) for consistency with SB 379. » Assess existing adaptation strategies and prepare additional strategies to respond to the VA. » Prepare a CAP implementation program.
» Prepared an updated CAP document (including administrative draft, public review draft, and final versions). » Meet with City staff throughout preparation of the CAP. » Led or support City staff with community and stakeholder outreach and engagement. » Present or support City staff with presentations to the Planning Commission and City Council.
We are prepared to provide an updated CAP that puts the City on a path to continue GHG reductions and to increase resilience to effects of climate change that are already happening and likely to occur in the future. Our goal is to provide an updated CAP that is practical, feasible, and accessible. The estimated fee range for the updated CAP is $135,000-$180,000. The range depends on the timeframe of the project and whether all tasks are included and led by PlaceWorks. We’re open to talking with City staff to identify tasks that might not be necessary or that could be led by City staff to reduce the consultant costs.
The proposed CAP update does not include a cost-benefit analysis or a GHG inventory of municipal operations. If the City is interested in an updated cost-benefit analysis for the new climate action strategies or an updated inventory of municipal GHG emissions, we can provide a supplemental scope and budget, with the cost-benefit analysis provided by a teaming partner.
Prepare current year GHG inventory and update baseline inventory. PlaceWorks will prepare a community-wide inventory to identify the City’s recent level of GHG emissions and to assess progress towards the City’s 2020 target, support preparation of business-as-usual forecasts for 2030 and 2050 and allow for a comparison of the City’s current and future GHG emission trends. This inventory work will act as a foundation for the CAP 2022 update and will determine the volume of GHG emissions necessary to reduce for the City to meet its new reduction targets. We will work with City staff to select an appropriate baseline year, (either 2019 or 2020). We will follow the methods and data collection processes identified in the U.S. Community Protocol and Local Government Operations Protocol.
As part of this work, Fehr & Peers will update baseline total VMT estimates and prepare up to two future year VMT forecasts using the latest approved BCAG travel demand model developed for the BCAG RTP/SCS. The specific methodology will rely on the origin-destination (OD) trip method, consistent with the methodology outlined in the original Oroville Climate Action Plan. This method accounts for all the VMT associated with trips that have at least one trip end in the city. Trips that share trip ends across two jurisdictions (i.e., a trip from unincorporated Butte County to the City of Oroville) are discounted by 50% to acknowledge that each jurisdiction is only responsible for half of the VMT.
To ensure the current year inventory is comparable to the inventory prepared as part of CAP 2022 is consistent with the 2010 inventory, PlaceWorks proposes to update the 2010 inventory. This update will apply the same methods and data sources to these existing inventories as are used for CAP 2022, allowing for an accurate comparison across all inventory years.
Prepare forecasts for 2030 and 2050. The PlaceWorks team will use the GHG emissions inventory to prepare a forecast of community-wide emissions for the calendar years 2030 and 2050. This “business-as-usual” forecast will show expected emissions without the benefit of any existing reduction activities from State, regional, and local activities. We will rely on regional datasets to prepare the forecast, along with local growth expectations and development projections. These expectations will be consistent with the Oroville General Plan to the extent 86 Item 6.
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they are applicable. Fehr & Peers will provide 2030 and 2050 VMT forecasts, using the appropriate travel demand model.
Review CAP and confirm implementation of GHG reduction strategies; Quantify ongoing reductions of planned/programmed City commitments/strategies; Quantify benefit of state and regional programs. As a part of this effort, the PlaceWorks team will quantify GHG reduction efforts because of existing and planned State, regional, and local actions. We will use these estimates to better understand the progress that Oroville has made in reducing GHG emissions. We expect to quantify the benefits of actions such as the Renewables Portfolio Standard (RPS), statewide clean car standards and the Low Carbon Fuel Standard (LCFS), the Title 24 Building Standards Code, zero-emission bus regulations, and others as appropriate.
Update GHG reduction targets; Identify gap to achieve targets. Oroville’s 2015 CAP identifies a 2020 GHG reduction target of 11 percent below the 2010 baseline which was determined to be consistent with the state’s target to reduce emissions 15 percent below 1990 levels by 2020. As part of the CAP update, we will identify a 2030 GHG reduction target consistent with the SB 32 target of 40 percent below 1990 levels, plus longer-term targets for 2040 and 2050 consistent with the State’s goals for a minimum reduction of 80% percent below 1990 levels toward a goal of carbon neutrality. The State is currently updating the Climate Change Scoping Plan to identify the State’s pathway to carbon neutrality. The City has discretion to select its GHG reduction target for a qualified GHG reduction strategy but must provide substantial evidence to support its target. The PlaceWorks team will review options for the City and present those for consideration by staff and community stakeholders.
Update GHG reduction strategies and identify new strategies and actions needed to close gap/reach target. The PlaceWorks team will work with City staff and community stakeholders to prepare GHG reduction strategies for both community-wide and City operations emissions that meet City targets. We will revise, update, and incorporate measures in the 2015 CAP as feasible and appropriate, while others will be entirely new and take advantages of technologies, regulations, and other advances that were not available when the 2015 CAP was prepared. We anticipate that these measures will address emerging issues such as the increased adoption of electric vehicles, efforts toward zero waste, advances in agricultural practices, decarbonization of the built environment, and many other transformations. All reduction measures will be developed to be appropriate to Oroville and to enable the GHG emission reductions necessary to achieve the City’s selected targets, while still emphasizing practical and feasible solutions that reflect the City’s unique characteristics.
After developing the reduction measures and confirming them with City staff, we will quantify the GHG reduction potential from these measures for the years 2030 and 2050. We will use case studies, peer-reviewed scientific applications, State guidance documents, and other verified sources to support these calculations, ensuring a high level of accuracy. We will provide an Excel workbook to ensure transparency, clearly documenting all methods and assumptions and laying out all sources. This approach will allow others to replicate the calculations and verify their accuracy. All calculations will identify the GHG reduction potential, the level of participation under the identified performance indicator, and all associated resource savings (e.g., kWh reductions in electricity use or decreases in gallons of water used). We will allow City staff to view different levels of implementation for each measure, supporting efforts to achieve the greatest level of GHG reductions that are appropriate for Oroville.
Update climate vulnerability assessment and climate adaptation strategies. The CAP includes a preliminary vulnerability assessment (Chapter 5) to identify community elements that may be exposed to future climate change. The analysis indicates that water supply, public health, and transportation infrastructure are three valuable community assets with high potential to suffer consequences from changes in the existing climate.
Although the vulnerability assessment was consistent with State available at the time, the State has since updated its guidance for local adaption planning, including vulnerability assessment. As the lead consultant for the State’s guidance document, the California Adaptation Planning Guide, PlaceWorks will update the vulnerability assessment to reflect current best practices and guidance. We anticipate review of additional climate hazards, community assets. and populations as part of the update. The updated vulnerability assessment will guide the need to update and add adaptation strategies for consistency with the State’s requirements for 87 Item 6.
January 19, 2022 | 9
climate adaptation and resiliency planning as outlined in California Government Code Section 65302(g)(4) as amended by Senate Bill 379. These strategies will emphasize strategies that build resiliency through “no regret strategies” that also provide short-term co-benefits, including providing financial savings to community members, improving public health, and conserving natural resources. We will also prepare strategies that establish a foundation for long-term climate adaptation, working to improve community resiliency in the coming decade. The adaptation strategies will reflect the specific conditions and vulnerabilities in Oroville. PlaceWorks will incorporate recommended strategies in the California Adaptation Planning Guide and will adapt applicable state efforts as presented in the Safeguarding California Plan. We will also look to other case studies and best practices in the State’s Adaptation Clearinghouse resource and others.
Lead or support City staff with public hearings and community meetings. Outreach and engagement should occur throughout the planning process as it is essential to continued success of GHG reduction and adaptation efforts.
Through this process the PlaceWorks team will partner to support ongoing education and information sharing with staff, elected officials, and community members in support of meaningful engagement and input to support preparation of the CAP goals and strategies. Our approach and budget can support a mix of engagement opportunities during the key phases of the project, including community events, online engagement, stakeholder meetings, and staff engagement. City staff are an important stakeholder in the CAP preparation process as well.
Update CAP. After completing the technical analyses, PlaceWorks will prepare an administrative draft CAP. It will present summaries of the technical analyses, the adaptation and mitigation strategies, and an implementation program. Prior to drafting the CAP, we will collaborate with City staff to identify an outline that meets requirements for the CAP as confirmed by City staff, members of the public, commissions, and City Council. We will also prepare a document template in Word that supports a graphically rich presentation of information. We anticipate preparation of a public review draft CAP and final CAP though additional versions can be prepared.
Proposed Schedule
We understand the City is aiming to meet these project goals in a nine-month schedule. Once contracted, we will work with City staff to set dates for key deliverables. We will plan regular check-in calls to ensure that we are sticking to the schedule.
88 Item 6.
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Cost Estimate
TASK COST
Addendum (includes SB-18 consultation) $19,000
Supplemental EIR $65,000 - $125,000
Project Management/Meetings $12,000
VMT Analysis/Circulation Element $55,000
Expenses, Copies, Miscellaneous $4,000
Total w/Addendum $90,000
Total w/Supplemental EIR $143,000 - $203,000
OPTIONAL TASK AT CITY DISCRETION
Prepare current year GHG inventory and update baseline inventory. $20,000 Prepare forecasts for 2030 and 2050. $3,500
Review CAP and confirm implementation of GHG reduction strategies; Quantify ongoing reductions of planned/programmed City commitments/strategies; Quantify benefit of state and regional programs.
$8,000
Update GHG reduction targets; Identify gap to achieve targets. $3,500 Update GHG reduction strategies, identify new strategies and actions needed to close gap/reach target, and quantify GHG reduction potential. $30,000-$40,000 Update climate vulnerability assessment and climate adaptation strategies. $20,000 Lead or support City staff with public hearings and community meetings. $10,000-$35,000 Update CAP. $25,000-$35,000
CAP Update project management. $10,000
Expenses for in-person meetings. $5,000
Climate Action Plan & GHG (Optional Task) $135,000-$180,000 Acknowledgement
We look forward to working with you to bring about the successful completion of this project. If you have any questions regarding the contents of this proposal, please feel free to contact the undersigned.
Respectfully submitted,
PlaceWorks
Mark Teague, AICP
Managing Principal
89 Item 6.
INSURANCE REQUIREMENTS FOR CONSULTANTS
City of Oroville
INSURANCE. Without limiting Consultant’s indemnification obligations in section 10, Consultant will procure and maintain throughout the period of this Agreement, the following policies of insurance and endorsements from insurers (if other than the State Compensation Fund) with a current A.M. Best rating of no less than A:VII or its equivalent against injury/death to persons or damage to property which may arise from or in connection with the activities hereunder of Consultant, its agents, employees or subcontractors:
General Liability Policy. Comprehensive or Commercial General Liability Insurance (“CGL”) at least as broad as Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), in an amount of $1,000,000 per occurrence. If the Services involve explosive, underground or collapse risks, XCU will be included. If a general aggregate limit is used, either the general aggregate limit will apply separately to this Agreement or the general aggregate will be twice the required occurrence limit.
Automobile Liability Policy. Automobile liability insurance with coverage at least as broad as ISO Form numbers CA 0001 06 92, Code 1 (any auto), for vehicles used in the performance of this Agreement with minimum coverage of not less than $1,000,000 per accident, combined single limit.
Workers’ Compensation. Workers’ Compensation insurance meeting statutory limits of the Labor Code. The workers’ compensation policy will contain or be endorsed to contain a waiver of subrogation against the City, its officials, officers, agents, and employees.
Professional Liability. Professional liability insurance insuring against Consultant’s errors and omissions in performing the Services, with a policy limit of at least $1,000,000. The professional liability insurance will include prior acts coverage sufficient to cover all Services provided by Consultant, and which will remain in effect for four years following expiration or termination of this Agreement.
Endorsements. The CGL and automotive liability policies will contain or be endorsed with the following provisions:
The City, its officers, elected or appointed officials, employees, volunteers, and agents, are covered as additional insureds for liability arising out of the operations performed by or on behalf of Consultant. The coverage will contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, volunteers, and agents.
The Consultant’s insurance is primary and no insurance held by the City will be called upon to contribute to a loss. The inclusion of more than one insured will not operate to impair or limit the rights of one insured against another, and the coverage will apply as though separate policies have been issued to each insured. 90 Item 6.
All Policies.
For all insurance policies required under this Agreement, prior to the City’s execution of this Agreement, Consultant will furnish the City with certificates and original endorsements effecting the required coverage. Each certificate of insurance will state that the coverage afforded by the policy or policies will not be reduced, cancelled, or allowed to expire without at least 30 days written notice to City, unless due to nonpayment of premiums, in which case at least 10 days written notice is required. Notice required under this subsection will be sent by certified mail. Each required policy will include an endorsement providing that the insurer agrees to waive any right of subrogation it may have against the City. The endorsements will be on forms provided by City or as approved by City’s Risk Manager.
Any deductible or self-insured retention of $100,000 or more will be disclosed to the City prior to the City’s execution of this Agreement and is subject to approval by the City.
If Consultant does not keep all required insurance policies in full force and effect, the City may, in addition to other remedies under this Agreement, terminate or suspend this Agreement.
2020
91 Item 6.
CITY OF OROVILLE
RESOLUTION NO. 9040
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OROVILLE, CALIFORNIA,
AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT BETWEEN THE CITY OF OROVILLE AND PLACEWORKS, INC. (Agreement 3409), WITH A CORRESPONDING BUDGET ADJUSTMENT WHEREAS, Senate Bill 743 was passed into law on September 27, 2013, which requires cities and counties by June 30, 2021 to adopt VMT analysis as the basis for environmental review of transportation impacts under CEQA, in addition to the existing Level of Service (LOS) analysis; and
WHEREAS, the State’s recommended CEQA Significance thresholds and mitigation measures under SB 743 are quite strict, and are more relevant to urban areas rather than Oroville’s more rural environment; and
WHEREAS, Oroville and other rural communities cannot possibly adopt the significance thresholds and traffic mitigation measures recommended by the State without project proponents enduring undue and unnecessary cost
and scheduling impacts; and
WHEREAS, it is therefore in the best interest of the city to update its General Plan Circulation Element to incorporate the required Vehicle Miles Traveled (VMT) analysis, and to develop its own CEQA traffic significance thresholds; and WHEREAS, Placeworks, Inc. is available and competent to complete the required analysis on behalf of the city.
NOW, THEREFORE, BE IT RESOLVED by the Oroville City Council as follows:
Section 1. The Mayor is hereby authorized and directed to execute a professional services agreement between the City of Oroville and Placeworks, Inc. to update the city’s General Plan Circulation Element, and to create the appropriate Budget Adjustment.
Section 2. The City Clerk shall attest to the adoption of this Resolution.
PASSED AND ADOPTED by the City Council of the City of Oroville at a regular meeting on April 5, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
92 Item 6.
ABSENT:
Chuck Reynolds, Mayor
APPROVED AS TO FORM: ATTEST:
Scott E. Huber, City Attorney Jackie Glover, Assistant City Clerk 93 Item 6.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND CITY COUNCIL MEMBERS
FROM: DAWN NEVERS, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR RE: EXECUTE ADDENDUM TO THE THREE-YEAR CONTRACT FOR GOAT
GRAZING VEGETATION MANAGEMENT TO ADD ONE LOCATION
DATE: APRIL 5, 2022
SUMMARY
The Council may approve an addendum to the three-year contract for goat grazing vegetation management services to add one location.
DISCUSSION
On January 27, 2021, staff release of a Request for Proposal (RFP) for the goat grazing vegetation management services. Staff posted the RFP on February 18, 2021, on the City website and www.ciplist.com. Many questions were received and answered. The RFP closed on February 18, 2021, at 2:00pm and staff received two proposals.
On March 16, 2021, the City Council approved the three-year agreement with Blue Tent Farms for goat grazing vegetation management services of 15 City owned locations in the amount of $80,010 annually for a total of $240,030 for three years.
As the vegetation management commenced, staff quickly realized that the Dry Creek Drainage Basin was not on the list of 15 locations for vegetation management. Staff would like to request Council approval of Addendum No. 1 to add the approximate 6.4 acre area of the drainage basin in the amount of $5,500 annually bringing the contract total to $85,510 annually.
FISCAL IMPACT
The funds will come from Account No.s 3001 Streets - 7135 Weed Abatement and 3111 Parks - 7135 Weed Abatement, Fund 100 (General Fund Balance).
RECOMMENDATION
Authorize Staff to execute Addendum No. 1 to add the approximate 6.4-acre area of the drainage basin in the amount of $5,500 annually bringing the contract total to $85,510 annually. For a full three-year contract total of $256,530.00 94 Item 7.
ATTACHMENTS
1. Addendum No. 1 to Agreement No. 3355
2. Change Order and Map adding Dry Creek Drainage Basin 95 Item 7.
96 Item 7.
97 Item 7.
ADDENDUM TO AGREEMENT NO. 3355
BETWEEN THE CITY OF OROVILLE AND BLUE TENT FARMS, LLC, dba
WESTERN GRAZERS
(Addendum No. 3355-1)
This First Addendum (“Addendum”) dated April 5, 2022, is to Agreement No. 3355 between the City of Oroville (“City”) and Blue Tent Farms LLC, dba Western Grazers (“Consultant”). In consideration of the terms and conditions herein, the City and the Consultant agree that Agreement No. 3355 shall add the following to the project scope of services:
1. The added grazing area of approximately 6.4 acres known as the Dry Creek Drainage Basin annually to the three-year agreement.
2. The total cost of the service shall increase by $5,500 per year for a total annual cost of $85,510.
3. Conflicts between the Agreement, and this Addendum shall be controlled by this Addendum. All other provisions within the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this Addendum to the Agreement to be executed on the date first written above.
CITY OF OROVILLE BLUE TENT FARMS LLC, dba WESTERN
GRAZERS
By: By:
Mayor Chuck Reynolds
APPROVED AS TO FORM: ATTEST:
By: By:
Scott Huber, City Attorney Bill LaGrone, CityAdministrator
98 Item 7.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND OROVILLE CITY COUNCIL MEMBERS
FROM: BILL LAGRONE, CITY ADMINISTRATOR
RE: SALE OF POLICE CANINE, FRANKIE
DATE: APRIL 5, 2022
SUMMARY
The Council will consider a sale agreement with Breck Wright to sell the Police Canine, Frankie.
DISCUSSION:
In November of 2018 the Council approved the purchase of a Labrador for the purpose of being a drug detection canine. A Labrador named “Frankie” was purchased, trained and been in service for the City of Oroville for the past three years. Due to the departure of Frankie’s handler, it is appropriate at this time to sell Frankie to the handler. To try and transfer Frankie to another handler and retrain Frankie will prove not only difficult but will most likely not be successful.
The canine (Frankie) should be retired and transferred to the handler to live out his natural life. Since the canine (Frankie) is public property, it cannot be gifted to the handler, typically these canines are sold to the owner for one dollar. As has been the tradition the Chief of Police will pay the dollar to honor the handler and the canine.
FISCAL IMPACT:
If the Police Department chooses to replace the Canine at a future date, it will have a Fiscal Impact. However, at this time, there is no additional costs associated with the sale of the canine, Frankie
RECOMMENDATION:
Adopt Resolution No. 9042 - A RESOLUTION OF THE OROVILLE CITY COUNCIL
AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AN AGREEMENT 99 Item 8.
FOR THE SALE OF POLICE CANINE, FRANKIE, TO BRECK WRIGHT (Agreement No. 3410)
ATTACHMENTS:
Resolution Number No. 9042
Agreement Number No. 3410
100
Item 8.
Agreement No. 1536-1
AGREEMENT OF PURCHASE AND SALE
WITH
BRECK WRIGHT
FOR POLICE CANINE
This agreement is made this fifth day of April, 2022, by and between the City of Oroville (“City”) and Breck Wright (“Wright”) of Oroville, California, who agree as follows:
1. “City” will sell and “Wright” shall purchase a male Labrador Retriever, black, named “Frankie”. Said dog shall be used by “Wright” as he deems appropriate.
2. In consideration of said sale, “Wright” shall pay “City” the sum of one dollar ($1.00).
3. “City” waives any all rights, other than those set forth above, that it might have against “Wright” should said dog be killed, injured, or disabled after the sale of said canine.
4. “Wright” accepts all liability associated with the purchase of such dog and shall indemnify City against any damages, claims, costs or lawsuits relating to such dog from the date of this Agreement.
5. This agreement is binding, and shall inure to the benefits of heirs, administrators, executors, successors, and assigns of the parties hereto.
Executed on the date first above written at Oroville, California.
Mayor Chuck Reynolds Breck Wright
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CITY OF OROVILLE
RESOLUTION NO. XXXX
A RESOLUTION OF THE OROVILLE CITY COUNCIL AUTHORIZING AND
DIRECTING THE MAYOR TO EXECUTE AN AGREEMENT WITH BRECK WRIGHT
TO PURCHASE A POLICE CANINE (FRANKIE)
(Agreement No. XXXX)
NOW THEREFORE, be it hereby resolved by the Oroville City Council as follows:
1. The Mayor is hereby authorized and directed to execute an agreement with Breck Wright to purchase a Police Canine (Frankie), a copy of the Agreement is attached hereto as Exhibit “A”.
2. The City Clerk shall attest to the adoption of this Resolution.
PASSED AND ADOPTED by the Council of the City of Oroville at a meeting held on April 5, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
__________________________
Chuck Reynolds, Mayor
APPROVED AS TO FORM:
ATTE
ST:
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________________________ _________________________
Scott Huber, City Attorney Jackie Glover, Asst. City
Clerk
103
Item 8.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND OROVILLE CITY COUNCIL MEMBERS
FROM: BILL LAGRONE, ACTING CHIEF OF POLICE
RE: AUTHORIZATION TO PURCHASE NEW POLICE VEHICLES
DATE: APRIL 5, 2022
SUMMARY
The Council will consider authorizing the purchase of (5) 2022 Ford Police Interceptor Utility vehicles from Oroville Ford.
DISCUSSION
The Police vehicles will be used to replace our aged fleet. Most of the vehicles currently in operation are approaching or exceeding 100,000 miles and require regular significant maintenance and repair to keep them on the road. Our fleet is beginning to show ware due to its age; many of the vehicles have minor damage and paint that is chipping and peeling. See attachment (1) one for additional model specific details. The price quoted for these vehicles is $47,800.00 plus fees each for a total of $239,000.00 plus fees. There is currently no funding allocated for this purchase. The purpose of obtaining authorization at this time is due to the extreme lead time necessary to receive the vehicles. If these vehicles are ordered now, they will not arrive until approximately September of 2023. The City is still awaiting the arrival of the vehicles ordered last September. Funding for this purchase will be included in fiscal year budget 22/23. These vehicles will be purchased from the local Ford dealership, Oroville Ford. Oroville Ford has offered this vehicle to the City at State Contract bid pricing. This purchase will keep the City’s dollars local. There will be additional funding necessary to upfit the vehicles for Police Service. Staff will return to Council with those cost at a later date.
FISCAL IMPACT
Funding for this project is not currently available. Funding will be included in the 2022/2023 budget.
RECOMMENDATION
Authorize the Public Safety Department to purchase (5) Police vehicles from Oroville Ford utilizing State Contract pricing as outlined in the staff report.
ATTACHMENTS
1. Oroville Ford Sales bid, and specification sheet for Police vehicles 104
Item 9.
105
Item 9.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND COUNCIL MEMBERS
FROM: DAWN NEVERS, ASSISTANT DIRECTOR COMMUNITY DEVELOPMENT RE: DISPOSAL OF SURPLUS VEHICLES AND EQUIPMENT
DATE: APRIL 5, 2022
SUMMARY
The Council will consider declaring decommissioned vehicles and equipment as surplus for their disposal through auction.
DISCUSSION
The City’s mechanic shop has several vehicles and equipment that are currently decommissioned. The shop would like to surplus the following vehicles and equipment:
Asset # Department Item
25 Engineering F-150 PICKUP
32 PARKS T422D MOWER
39 PARKS GMC Box Van
42 PARKS F250 PICKUP EXT. CAB
43 PARKS 1835C UNILOADER + EQUIPMENT
28 PW F350 FLAT BED / CEMENT FORM TK.
76 PW MAULDIN PAVER 550 (CITY ID# 2464)
82 PW 3500 DUMP TRUCK
87 PW CARGO 8000 / WATER TRUCK
95 PW 6640 TRACTOR / TIGER MOWER
34 SEWER F350 DUMP TRUCK
2 CODE CROWN VICTORIA / WHITE
100 CODE EXPLORER
199 Police 7.0 GEM EL / ELECTRIC CAR / LONG BED
209 Police CROWN VICTORIA / PATROL CAR / VIPS
212 Police CROWN VICTORIA / COMMUNITY SERVICE
217 Police CROWN VICTORIA / COMMUNITY SERVICE
220 Police CROWN VICTORIA / COMMUNITY SERVICE
512 Police ECONOLINE E350 VAN
106
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All vehicles and equipment listed above have been decommissioned and are parked in the corporation yard. Other public works and office equipment items for auction include the following:
Misc. weed eaters, blowers, and chainsaws
Misc. police equipment, plastic cages, and seat consoles Misc. office desks (4), Office Chairs (8), Lobby Chairs (9), and Office Equipment Standard filing cabinets, large turn table filing cabinets 13’x8’ State Theater marquee, 2’x2’ neon Municipal Auditorium Letters (2) Safes, (1) Piano, (1) Electric Organ
Cubicles and components
(2) Wire Racks, (2) Display Cases
(35) Gym Lockers
Solar Panels
Misc. Tools from Bolt’s Antique Tool Museum (do not meet museum quality) In recent years, the City has used North State Online Auctions located in Oroville.
FISCAL IMPACT
The City will receive revenues from the public auction of the surplus vehicles and equipment.
RECOMMENDATION
Declare the vehicles and equipment identified in the April 5, 2022 staff report as surplus and authorize the items to be auctioned off.
ATTACHMENTS
Spreadsheet of Surplus Vehicles
Photos
107
Item 10.
UNIT # DEPT. YEAR MAKE MODEL / DESCRIPTION VIN # LIC#
1 25 ENG. 97 FORD F-150 PICKUP 1FTDF17W9VLA12590 O32732 2 32 PARKS 95 JACOBSON T422D MOWER 66132-7459
39 PARKS 86 GMC Box Van
3 42 PARKS 92 FORD F250 PICKUP EXT. CAB 1FTHX25H3NK827068 364029 4 43 PARKS 88 CASE 1835C UNILOADER + EQUIPMENT JAF0014432 5 28 PW 80 FORD F350 FLAT BED / CEMENT FORM TK. F37GRGJO884 738734 6 76 PW 88 MAULDIN MAULDIN PAVER 550 (CITY ID# 2464) 5-88-6-173 7 82 PW 90 CHEVY 3500 DUMP TRUCK 1GBHC34KXLE161832 1351085 8 87 PW 92 FORD CARGO 8000 / WATER TRUCK 1FDYH81A6 NVA21703 354522 95 PW 94 NEW HOLLAND 6640 TRACTOR / TIGER MOWER BD24113 9 34 SEWER 91 FORD F350 DUMP TRUCK 1FDJF37H1MKA63193 112393 10 2 CODE 00 FORD CROWN VICTORIA / WHITE 2FAFP71W1YX121561 1018645 11 100 CODE 00 FORD EXPLORER 1FMZU72X4YZB29795 1064878
12 199 POLICE 11 POLARIS 7.0 GEM EL / ELECTRIC CAR / LONG BED 5ASGUHA42BF055144 1373515 13 209 POLICE 00 FORD CROWN VICTORIA / PATROL CAR / VIPS 2FAFP71W3YX121559 1018644 14 212 POLICE 00 FORD CROWN VICTORIA / COMMUNITY SERVICE 2FAFP71W3YX121562 1018646 15 217 POLICE 01 FORD CROWN VICTORIA / COMMUNITY SERVICE 2FAFP71W81X163523 1085644 16 220 POLICE 03 FORD CROWN VICTORIA / COMMUNITY SERVICE 2FAFP71W93X139458 1178196 17 512 POLICE 03 FORD ECONOLINE E350 VAN 1FDSS34M5 3HA29982 1203452
OLD POLICE EQUIPMENT, CAGES PLASTIC
SEAT CONSOLES OLD OFFICE FURNITURE
MISC. WEED EATERS, BLOWERS,
CHAINSAWS
SURPLUS VEHICLES 2022
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CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND CITY COUNCIL MEMBERS
FROM: AMY BERGSTRAND, DIRECTOR BUSINESS ASSISTANCE/HOUSING
DEVELOPMENT
RE: MODIFICATIONS TO THE CDBG/HOME COMBINED HOMEBUYER
PROGRAM GUIDELINES
DATE: APRIL 5, 2022
SUMMARY
The Council will conduct a public hearing to solicit comments regarding requested modifications to the Combined CDBG/HOME Homebuyer Program Guidelines.
DISCUSSION
Staff is proposing a modification to CDBG/HOME Homebuyer Program Guidelines that are in alignment with State HOME Program requirements. The changes include the Housing and Urban Development (HUD) requirement of HUD-approved homebuyer counseling administered by a HUD approved Counseling provider. All other changes are grammatical and general clean-up.
FISCAL IMPACT
No Financial Impact
RECOMMENDATION
Adopt Resolution No. 9040 _ A RESOLUTION OF THE OROVILLE CITY COUNCIL
AUTHORIZING MODIFICATIONS TO THE COMBINED COMMUNITY
DEVELOPMENT BLOCK, HOME INVESTMENT PARTNERSHIP PROGRAM FIRST TIME HOMEBUYER PROGRAM GUIDELINES.
ATTACHMENTS
A- Resolution No. 9040
B- CDBG/HOME Homebuyer Program Guidelines.
154
Item 11.
CITY OF OROVILLE
RESOLUTION NO. 9040
A RESOLUTION OF THE OROVILLE CITY COUNCIL AUTHORIZING MODIFICATIONS
TO THE COMBINED COMMUNITY DEVELOPMENT BLOCK, HOME INVESTMENT PARTNERSHIP PROGRAM FIRST TIME HOMEBUYER PROGRAM GUIDELINES.
BE IT HEREBY RESOLVED by the Oroville City Council as follows:
1. The Oroville City Council hereby authorizes the modification to the Combined Community Development Block Grant, HOME Investment Partnership Program.
A copy of the changes to the Combined CDBG, HOME Program Guidelines have been attached hereto as Exhibit "A".
2. The City Clerk shall attest to the adoption of this Resolution.
PASSED AND ADOPTED by the Oroville City Council at a regular meeting on April 5, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
______________________________
Chuck Reynolds, Mayor
APPROVED AS TO FORM: ATTEST:
__________________________ ______________________________ Scott E. Huber, City Attorney Jackie Glover, Assistant City Clerk 155
Item 11.
HCD Version 5/2016
City of Oroville
Homebuyer
Program Guidelines
For:
HOME Investment Partnerships Program
Community Development Block Grant
(CDBG) Program
Serving the City of Oroville
April 5, 2022
CDBG Approved (date)
HOME Approved
156
Item 11.
City of Oroville Homebuyer Program Guidelines Page 2
HOMEBUYER PROGRAM GUIDELINES
Table of Contents
1.0. GENERAL
1.1. PROGRAM OUTREACH AND MARKETING
1.2. APPLICATION PROCESS AND SELECTION
1.3. THE HOME PURCHASE PROCESS
1.4. HOMEBUYER COSTS
1.5. HOMEBUYER EDUCATION
1.6. CONFLICT OF INTEREST REQUIREMENTS
1.7. NON-DISCRIMINATION REQUIREMENTS
2.0. APPLICANT QUALIFICATIONS
2.1. CURRENT INCOME LIMITS
2.2 MINIMUM CREDIT SCORE
2.3. INCOME QUALIFICATION CRITERIA
2.4. DEFINITION OF AN ELIGIBLE HOMEBUYER
3.0. HOUSING UNIT ELIGIBILITY
3.1. LOCATION AND CHARACTERISTICS
3.2. CONDITIONS
3.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE
3.4. PROPER NOTIFICATION AND DISCLOSURES
4.0. PURCHASE PRICE LIMITS
5.0. THE PRIMARY LOAN
A. QUALIFYING RATIOS
B. INTEREST RATE
C. LOAN TERM
D. IMPOUND ACCOUNT
6.0. THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
B. NON-RECURRING CLOSING COSTS
C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
D. RATES AND TERMS FOR PROGRAM LOANS
E. LOAN-TO-VALUE RATIO
7.0. PROGRAM LOAN REPAYMENT
7.1. PAYMENTS ARE VOLUNTARY
7.2. RECEIVING LOAN REPAYMENTS
7.3. DUE UPON SALE OR TRANSFER
7.4. LOAN SERVICING POLICIES AND PROCEDURES
7.5. LOAN MONITORING PROCEDURES
8.0. PROGRAM LOAN PROCESSING AND APPROVAL
8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN
8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
8.3. ESCROW PROCEDURES
9.0. SUBORDINATE FINANCING
10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES
10.1. DEFINITION OF EXCEPTION
10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
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TABLE OF CONTENTS (CONTINUED)
ATTACHMENTS
ATTACHMENT A: 24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS ATTACHMENT B: ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS ATTACHMENT C: MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMITS; HOME PER UNIT SUBSIDY LIMITS PER UNIT; CURRENT INCOME LIMITS
ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT E: SELLER'S LEAD-BASED PAINT DISCLOSURE
ATTACHMENT F: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S LENGTH,
PURCHASE OFFER
ATTACHMENT H: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD REDUCTION FORM
ATTACHMENT I: HOMEBUYER PROGRAM LEAD COMPLIANCE DOCUMENT CHECKLIST 158
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CITY OF OROVILLE
HOMEBUYER PROGRAM GUIDELINES
1.0. GENERAL
The above–named entity, hereinafter referred to as the “City,” has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer one or more HCD-funded homebuyer programs. The homebuyer program described herein (the “Program”) is designed to provide assistance to eligible homebuyers in purchasing homes, also referred to herein as “housing units”, located within the Program’s eligible area, as described in Section 3.1.A. The Program provides this assistance in the form of deferred payment “silent” second priority loans as “Gap” financing toward the purchase price and closing costs of affordable housing units that will be occupied by the homebuyers as their primary residence.
1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to assure nondiscriminatory treatment, outreach and access to the Program.
No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation be excluded, denied benefits or subjected to discrimination under the Program. The City will ensure that all persons, including those qualified individuals with handicaps, have access to the Program.
A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Fair housing marketing actions will be based upon a characteristic analysis comparison (census data may be used) of the Program’s eligible area compared to the ethnicity of the population served by the Program (includes, separately, all applications given out and those receiving assistance) and an explanation of any underserved segments of the population. This information is used to show that protected classes (age, gender, ethnicity, race, and disability) are not being excluded from the Program. Flyers or other outreach materials, in English and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The City will provide homebuyer classes to help educate homebuyers about the home buying process and future responsibilities. Persons who have participated in local homebuyer seminars will be notified about the Program.
B. The City will work with local real estate agents and primary lenders to explain the Program requirements for eligible housing units and homebuyers, and to review Program processes. Local real estate agents and primary lenders will also be encouraged to have their customers participate in the Program.
C. Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds. The City will take appropriate steps to ensure effective communication with disabled housing applicants, residents and members of the public.
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1.2. APPLICATION PROCESS AND SELECTION
A. The City maintains a waiting list of applicants. Each applicant is asked to complete an application form, which asks for sufficient information concerning income, employment, and credit history to establish preliminary eligibility for Program participation. Completed applications are processed on a first-come-first-served basis. Applications are deemed complete only if all information is completed, the application is signed and dated, and a primary lender’s pre-qualification letter is attached to the application. Incomplete applications are returned to the applicant and will not be date/time stamped until complete.
B. Once the applicant’s name comes to the top of the waiting list, their Program eligibility is confirmed, and City will contact the applicant to ensure they are still interested.
If the City encounters material discrepancies and/or misrepresentations, and/or there is income, asset, household composition, or other important questions that can't be resolved, the City reserves the right to deny assistance to the household.
In this case, the applicant may re-apply after six months have elapsed from the time of written assistance denial.
C. Each applicant must participate in individual Homebuyer Counseling As required by 24 CFR 92.254 (a)(3) and 24 CFR 5.111, to be provided by a HUD-certified homebuyer counselor employed by an entity approved by HUD to provide housing counseling.
Housing counseling is independent, expert advice customized to the need of the consumer to address the consumer’s housing barriers and to help achieve their housing goals and must include the following processes: intake; financial and housing affordability analysis; an action plan, exept for reverse mortgage counseling; and a reasonable effort to have follow-up communication with the 160
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client when possible. The content and process of housing counseling must meet the standards outlinedin 24 CFR part 214, which include:
• Addressing unique financial circumstances or housing issues, • Focusing on ways of overcoming specific obstacles to achieving a housing goal such as repairing credit,
• Addressing a rental dispute, purchasing a home, locating cash for a down payment, and being informed of fair housing and fair lending requirements of the Fair Housing Act,
• Finding units accessible to persons with disabilities, • Avoiding Foreclosure,
• Resolving a Financial crisis,
• Except for reverse mortgage counseling, all counseling shall involve the creation of an action plan
Acceptable forms of housing counseling include in-person, phone, and/or internet, as long as the client and counselor can have an individual dialogue, with guidance and advice tailored to client’s needs. This includes creating a client budget, financial analysis, and action plan, and referrals to relevant resources such as down payment assistance programs or legal services.
A copy of each borrower’s certificate of completion must be placed into each homebuyer file maintained by the City.
D. The potential homebuyer is given 90 days in order to find a qualified home and begin securing a primary loan for the housing unit. If during the 90-day time frame, the potential homebuyer is unable to purchase a home, an extension may be given. However, if it appears the potential homebuyer cannot participate in the Program, the reservation of funds expires and the next person on the waiting list is given an opportunity to participate in the Program.
1.3. THE HOME PURCHASE PROCESS
A. The following is a simplified example of how a primary lender would analyze a homebuyer’s finances to determine how much the homebuyer could afford to borrow from the primary lender towards homeownership
DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH
HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $ 865 $1,180 Housing
Insurance 82 +200 Other Debt Service
Taxes 233 $1,380 Total Debt Service
Total Housing Expense $1,180 (Overall debt service per month is 41% of $3,388) (PITI is 35% of $3,388) 161
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OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment 50
Total Other Debt $ 200
A $865 per month loan payment equates to borrowing $143,000 at 5.88% for a 30-year term.
SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH
Purchase Price of Property $ 239,000
Less Primary loan amount 138,000
Less down required down payment 1,000
Equals “GAP” $ 100,000
B. The housing unit selection process will be conducted by the homebuyers. Prior to making an offer to purchase an eligible housing unit (see Section 3.0), homebuyer shall provide seller with a disclosure containing the following provisions:
1) Homebuyer has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement; and
2) Homebuyer’s offer is an estimate of the fair market value of the housing unit, to be finally determined by a state licensed appraiser. 3) The housing unit will be subject to inspection. The housing unit must comply with local codes at the time of construction and local health and safety standards.
4) All housing units built prior to January 1, 1978 will require a lead paint disclosure to be signed by both the homebuyer and Seller (Attachment E); 5) Since the purchase would be voluntary, the seller would not be eligible for relocation payments or other relocation assistance.
6) The seller understands that the housing unit must be either: currently owner-occupied, newly constructed, or vacant for three months prior to submission of the purchase offer.
7) If the seller is not provided with a statement of the above six provisions prior to the purchase offer, the seller may withdraw from the agreement after this information is provided.
C. Applicant submits executed standard form purchase and sale agreement and primary lender prequalification letter to City. The purchase and sale agreement 162
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will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval. City verifies applicant eligibility, housing unit and loan eligibility and amount of assistance to be provided consistent with these guidelines.
D. At this point, an escrow account should be opened and a tentative date for closing shall be established. The applicant is required to place a minimum of $1,000 deposit in the escrow account and provide a receipt to City. The $1,000 must be applied towards the purchase price of the property and shall not be refunded to the buyer at the close of escrow. The purchase agreement shall be written in such a way that if the sale of the home does not come to completion, the deposited will be returned in full to the applicant. The Title Company is to provide a copy of the Preliminary Title Report. A forty-five to sixty-day escrow is required for all Homeownership loans. It’s the responsibility of the applicant to notify the City that escrow has been opened.
E. When all items are received, City submits a recommendation to the City Loan Advisory Committee (LAC) for approval or denial, including reasons for the recommendation. Any changes to the loan amount, term, rate, etc. on the primary loan shall be approved by the LAC. An exception to this rule would be if the interest rate should change before escrow closes due to unforeseen reason. If this should occur, the Manager of Business Assistance and Housing Development shall have the authority to accept minor changed to the primary loan as long as the applicant still meets minimum housing expense ratio between 25% and 35% and the total debt to income (DTI) falls between 28% and 42%, and does not exceed the HOME requirements stated in the current Notice of Funding Availability (NOFA).
F. All properties must be inspected and cleared by the City prior to the close of escrow. It is the responsibility of the applicant/agent to schedule an appointment with the City. If the property is in need of repairs, a list of corrections or deficiencies will be submitted to the seller/agent. It will be the responsibility of the parties involved to make the necessary corrections prior to close of escrow. The property will also be inspected for lead based paint hazards.
G. When requirements are met, program funds are deposited into escrow, with required closing instructions and loan documents.
H. At the time of escrow closing, the City shall be named as an additional loss payee on fire, flood (if required), and extended coverage insurance for the length of the loan and in an amount sufficient to cover all encumbrances or full replacement cost of the housing unit. A policy of Title Insurance naming the City as insured is also required.
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1.4. HOMEBUYER COSTS
A. Eligible households must document that they have the funds necessary for down payment and closing costs as required by the Primary Lender and the City. The Program’s down payment requirement (below) is in place even if the Primary Lender has a lower down payment requirement. If the Primary Lender has a higher down payment requirement, there is no additional down payment requirement required by the Program.
B. Homebuyer must contribute a minimum down payment of $1,000 but may contribute more if desired.
C. City will not provide a subsidy that is greater than the amount of the primary mortgage. Additionally, City will not provide a loan greater than $100,000. The subsidy will write down the cost of the primary lender’s loan so that the payments of PITI are within approximately 25% to 35% of the gross household income. The City will determine the level of subsidy and affordability during underwriting of the Program’s loan to make sure that it conforms to the requirements of the HCD funding Program.
1.5. HOMEBUYER EDUCATION
Buying a home can be one of the most confusing and complicated transactions anyone can make. Providing the future homebuyer with informative homebuyer education training, can bring success to the City, the Program and most importantly, the homebuyer.
It has been documented that first-time homebuyers that have had homebuyer education have the ability to handle problems that occur with homeownership.
All Program participants are required to receive housing counseling prior to Program approval, delivered by a HUD-certified housing counselor who works for an organization certified by HUD to perform housing counseling. A list of such counseling entities is at https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?searchstate=CA&filterLng=&filterSvc=&filter MultiState=&searchName=&searchCity=&searchZip=&searchService=PPC&searchLang=&search Affiliation=&webListAction=Search. See section 1.2.C above for housing counseling requirements.
1.6. CONFLICT OF INTEREST REQUIREMENTS
When the City’s program contains Federal funds, the applicable Conflict of Interest requirements of 24 CFR Section 570.611 shall be followed for CDBG assistance. Section
92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family 164
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ties include (whether by blood, marriage or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild and in-laws of a covered person. (b) Persons covered. The conflict-of-interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient which are receiving HOME funds.
(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR
92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.
A contractor with a vested interest in the property cannot bid on a rehabilitation job. Such a contractor may act as owner/builder, subject to standard construction procedures.
Owner/builders are reimbursed for materials purchased which are verified by invoice/receipt and used on the job. Reimbursement occurs after the installation is verified by the Program Operator to be part of the scope of work. Owner/builders are not reimbursed for labor.
1.7. NON-DISCRIMINATION REQUIREMENTS
The Program will be implemented in ways consistent with the City’s commitment to nondiscrimination. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination under any program or activity funded in whole or in part with State funds on the basis of his or her religion or religious affiliation, age, race, color, creed, gender, sexual orientation, marital status, familial status (children), physical or mental disability, national origin, or ancestry, or other arbitrary cause.
2.0 APPLICANT QUALIFICATIONS
2.1. CURRENT INCOME LIMITS FOR THE AREA, BY HOUSEHOLD SIZE All applicants must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility. All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD. (Attachment C).
Household: Means one or more persons who will occupy a housing unit. Unborn children count in family size determination.
Annual Income: Generally, the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period.
2.2. MINIMUM CREDIT SCORE
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All applicants must have a minimum credit score of at least 620 and demonstrate the ability to receive a prime interest rate no more than 1% of the Fannie Mae 90 day published rate.
2.3. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the published HCD income limits. Income qualification criteria, as shown in the most recent HCD program-specific guidance at http://www.hcd.ca.gov/fa/cdbg/GuideFedPrograms.html, will be followed to independently determine and certify the household’s annual gross income. The City should compare this annual gross income to the income the Primary Lender used when qualifying the household. The Primary Lender is usually underwriting to FHA or conventional guidelines and may not calculate the household income or assets in the same way as required by the Program. Income will be verified by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank statements and third-party verification of employment forms sent to employers. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.
A. HOUSEHOLD INCOME DEFINITION:
Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period and will be used to determine program eligibility. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. For those types of income counted, gross amounts (before any deductions have been taken) are used. Two types of income that are not considered would be income of minors and live-in aides. Certain other household members living apart from the household also require special consideration. The household’s projected ability to pay must be used, rather than past earnings, when calculating income.
The link to Annual Income Inclusions and Exclusions is:
http://www.hcd.ca.gov/fa/cdbg/FedProgGuideDocs/AppendixB_AnnualIncomeInc lusionsExclusions.doc
See Attachment A: 24 CFR Part 5 Annual Income Inclusions and Exclusions B. ASSETS:
There is no asset limitation for participation in the Program. Income from assets, however, is recognized as part of annual income under the Part 5 definition. An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g. interest on a savings account – not the asset value, which is counted in annual income.)
An asset’s cash value is the market value less reasonable expenses required to 166
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convert the asset to cash, including, for example, penalties or fees for converting financial holdings, and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.
The Link to Asset Inclusions and Exclusions is:
http://www.hcd.ca.gov/fa/cdbg/FedProgGuideDocs/AppendixC_AnnualIncomeAs setInclusionsExclusions.doc
See Attachment B: Part 5 Annual Income Net Family Asset Inclusions and Exclusions
2.4. DEFINITION OF AN ELIGIBLE HOMEBUYER
For CDBG, an eligible homebuyer means an individual or individuals or an individual and his or her spouse who meets the income eligibility requirements and is/are not currently on title to real property. Persons may be on title of a manufactured home unit, who are planning to sell the unit as part of buying a home located on real property. Documentation of homebuyer status will be required for all homebuyers. CDBG-funded programs may assist eligible homebuyers who are not “first-time” homebuyers.
HOME -funded Programs are required to use the following definition of an eligible homebuyer, which is a “first-time homebuyer” from 8201(l) Title 25 California Code of Regulations:
“First-time homebuyer” means an individual or individuals or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with subsidy assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition:
1. a displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family;
2. a single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; or
3. an individual or individuals who owns or owned, as a principal residence during the three-year period before the purchase of a home with assistance, a dwelling unit whose structure is:
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a. not permanently affixed to a permanent foundation in accordance with local or state regulations; or
b. not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.
3.0. HOUSING UNIT ELIGIBILITY
3.1. LOCATION AND CHARACTERISTICS
A. Housing units to be purchased must be located within the eligible area. The eligible area is described as follows: “Within the City-limits of Oroville”.
B. Housing unit types eligible for the homebuyer Program are new or previously owned single-family residences; condominiums; or manufactured homes in mobile home parks, in common-interest developments or on a single-family lot and placed on a permanent foundation system. HOME does not allow manufactured homes unless on a permanent foundation system.
C. All housing units must be in compliance with State and local codes and ordinances.
D. Housing units located within a 100-year flood zone will be required to provide proof of flood insurance with an endorsement naming the City limits of Oroville as loss payee in order to close escrow.
E. Housing that is for acquisition by a family must meet the affordability requirements of this paragraph (a).
(1) The housing must be single-family housing.(2) The housing must be “modest” housing as follows:
(i) In the case of acquisition of newly constructed housing or standard housing, the housing has a purchase price for the type of single family housing that does not exceed 95 percent of the median purchase price for the area, as described in paragraph (a)(2)(iii) of this section. (ii) If a participating jurisdiction intends to use HOME funds for homebuyer, the participating jurisdiction must use the HOME affordable homeownership limits provided by HUD for newly 168
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constructed housing and for existing housing. HUD will provide limits for affordable newly constructed housing based on 95 percent of the median purchase price for the area using Federal Housing Administration(FHA) single family mortgage program data for newly constructed housing, with a minimum limit based on 95 percent of the U.S. median purchase price for new construction for nonmetropolitan areas. HUD will provide limits for affordable existing housing based on 95 percent of the median purchase price for the area using Federal FHA single family mortgage program data for existing housing data and other appropriate data that are available nation-wide for sales of existing housing, with a minimum limit based on 95 percent of the state-wide nonmetropolitan area median purchase price using this data. In lieu of the limits provided by HUD, the participating jurisdiction may determine 95 percent of the median area purchase price for single family housing in the jurisdiction annually, as follows. The participating jurisdiction must set forth the price for different types of single family housing for the jurisdiction. The participating jurisdiction may determine separate limits for existing housing and newly constructed housing. For housing located outside of metropolitan areas, a State may aggregate sales data from more than one county, if the counties are contiguous and similarly situated. The following information must be included in the annual action plan of the Consolidated Plan submitted to HUD for review and updated in each action plan.
3.2. CONDITIONS
A. Construction Inspection and Determining Need for Repairs.
Once the participating homebuyer has executed a purchase agreement for a housing unit, and prior to a commitment of Program funds, the following steps must be taken for the housing unit to be eligible for purchase under the Program:
1) When the City’s Program utilizes Federal funds and if the housing unit was constructed prior to 1978 then the lead-based paint requirements of Section 3.2.C will apply.
2) The City or a certified housing inspector representative will walk through the housing unit, determine if it is structurally sound, and identify any code related and health and safety deficiencies that need to be corrected. A list of code related repair items will be given to the homebuyers and their Realtor to be negotiated with the seller. Only new construction and homes 169
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built within the previous 12 months and not previously occupied are not subject to a home inspection.
3) Upon completion of all work required by the City, appraiser, pest inspector and/or certified housing inspector, a final inspection will be conducted prior to close of escrow. The inspector will sign off on all required construction work assuring that each housing unit receiving Program assistance is in compliance with local codes and health and safety requirements at the time of purchase and prior to occupancy.
B. Per Section 8208 of the State HOME regulations, no additional HOME assistance, including rehabilitation funds, may be provided during the period starting one year following the filing of the Project Completion Report through the end of the Affordability Period.
The HOME Affordability Period is as follows (amount does not include Activity Delivery Costs paid to the State Recipient by HCD):
Amount of HOME Assistance Period of Affordability in Years Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
C. Lead-Based Paint Hazards: All housing units built prior to 1978 for which HOME or CDBG funding is anticipated are subject to the requirements of this section 3.2.C.
Such homes must undergo a visual assessment by a person who has taken HUD’s online Visual Assessment course. Deteriorated paint must be stabilized using work safe methods. Clearance must be obtained after paint stabilization by a DHS certified LBP Risk Assessor/Inspector. HOME and CDBG general administrative and activity delivery funds may be used to pay for lead-based paint visual assessments, and if lead mitigation and clearance costs are incurred, these programs may incorporate the costs into the calculation of Program assistance.
The following requirements must be met:
1) Notification: a) Prior to homebuyer’s obligation to purchase a pre-1978 home, the Buyer will be given the most recent copy of and asked to read the EPA pamphlet “Protect Your Family from Lead in Your Home” (EPA 747-K-94-001). A signed receipt of the pamphlet will be kept in the Sponsor’s homebuyer file; b) A notice to residents is required following a risk assessment/inspection using form DHS 8552, which is provided by the DHS-certified Risk Assessor/Inspector; c) a notice to residents is required following lead-based paint mitigation work using Visual Assessment and 170
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Lead-based Paint Notice of Presumption and Hazard Reduction form, LBP – 1 (Attachment H).
2) Disclosure: Prior to the homebuyer’s obligation to purchase a pre-1978 housing unit, the HUD disclosure (Attachment E), “Seller’s Lead-based Paint Disclosure” notice must be provided by the seller to the homebuyer. 3) Inspections: The Inspector shall conduct a “Visual Assessment” of all the dwelling unit’s painted surfaces in order to identify deteriorated paint. All deteriorated paint will be stabilized in accordance with CFR 35.1330 (a) and (b); and a Clearance shall be made in accordance with CFR 35.1340. 4) Mitigation: If stabilization is required, the contractor performing the mitigation work must use appropriately trained workers. Prior to the contractor starting mitigation work the Program Operator shall obtain copies of the contractor’s and workers’ appropriate proof of LBP training, as applicable to the job in order to assure that only qualified contractors and workers are allowed to perform the mitigation.
D. The City will: 1) confirm that the housing unit is within the eligible area, 2) will review each proposed housing unit to ensure that it meets all eligibility criteria before funding, and 3) ensure a completed Lead Compliance Document Checklist is placed in each purchaser’s file (see Attachment I).
3.3 ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE
Eligible homes will be those that are currently owner-occupied or have been vacant for three months prior to the acceptance of a contract to purchase. A unit is ineligible if its purchase would result in the displacement of a tenant. It is not anticipated that the implementation of the Program will result in the displacement of any persons, households, or families. However, if tenant-occupied homes are included in the Program and relocation becomes necessary, the activity will be carried out in compliance with City’s relocation plan, which describes how those permanently displaced will be relocated and paid benefits in accordance with the following Federal laws.
A. Uniform Relocation Assistance (URA) and Real Property Acquisition Policies Act of 1970
The federal URA and Real Property Acquisition Policies, as amended by the URA Amendments of 1987, contains requirements for carrying out real property 171
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acquisition or the displacement of a person, regardless of income status, for a project or program for which HUD financial assistance (including CDBG and HOME) is provided. Requirements governing real property acquisition are described in Chapter VIII. The implementing regulations, 49 CFR Part 24, require developers and owners to take certain steps in regard to tenants of housing to be acquired, rehabbed or demolished, including tenants who will not be relocated even temporarily.
B. Section104(d) of the Housing and Community Development Act of 1974 Section 104(d) requires each contractor (CHDO or State Recipient), as a condition of receiving assistance under HOME or CDBG, to certify that it is following a residential anti-displacement plan and relocation assistance plan. Section 104(d) also requires relocation benefits to be provided to low-income persons who are physically displaced or economically displaced as the result of a HOME or CDBG assisted project, and requires the replacement of low-income housing, which is demolished or converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 570(a).
3.4. PROPER NOTIFICATION AND DISCLOSURES
A. Upon selection of a housing unit, a qualified seller and homebuyer will be given the necessary disclosures for the Program. The homebuyer must have read and signed all Program disclosure forms. Any and all property disclosures must be reviewed and signed by the homebuyer and seller.
B. All owners who wish to sell their housing units must receive an acquisition notice (Attachment F) prior to submission of the homebuyer’s original offer. This notice will be included in the contract and must be signed by all owners on title. The disclosure must contain the items listed in 1.3.B. (required for federally-funded programs).
4.0. PURCHASE PRICE LIMITS
The purchase price limits for this Program shall not exceed the Maximum HOME Program Purchase Price/After-Rehab Value Limit for Sponsor’s County as updated by HCD.
Note: For HOME and CDBG-funded Programs the value cannot exceed the Maximum Purchase Price/After-Rehabilitation Value Limits as established by HCD and HUD.
Attachment C: MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMITS *City will update these limits annually as HCD provides new information.
5.0. THE PRIMARY LOAN
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Prior to obtaining a loan from the City, a homebuyer must provide evidence of financing for the maximum amount the Primary Lender is willing to loan (the “primary loan”).
A. QUALIFYING RATIOS
The front-end (housing) debt-to-income ratio shall be between 25% and 35% and is the percentage of a borrower’s gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, mortgage insurance, and HOA dues, if any.
The back-end (total) debt-to-income ratio shall be between 28% and 42% and is the percentage of a borrower’s gross monthly income that would cover the cost of housing as described in the paragraph above, plus any other monthly debt payments like car or personal loans and credit card debt, as well as child support and alimony payments.
B. INTEREST RATE
The primary loan must have a fixed interest rate that does not exceed, by greater than one percent, the FNMA 90-day rate, found at: https://singlefamily.fanniemae.com/pricingexecution/historical-daily-required-net-yields.
The applicable FNMA rate should be from the date the primary mortgage rate was locked, or else the date of loan approval. No temporary interest rate buy-downs are permitted.
C. LOAN TYPE AND TERM
The primary loan shall be fully amortized and have a term “all due and payable” in no fewer than 30 years. There shall not be a balloon payment due before the maturity date of the Program loan. Additionally, stated income, adjustable rate mortgage, interest only and balloon payments due before maturity date are not allowed.
D. IMPOUND ACCOUNT
All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.
6.0. THE PROGRAM LOAN
The amount of Program assistance to a homebuyer toward purchase of a home shall not exceed the maximum HOME subsidy limit for City’s County per bedroom per the HCD website at http://www.hcd.ca.gov/financial-assistance/home-investment-partnershipsprogram/homelimits.html and shall never exceed the amount of the primary mortgage.
See Attachment C of these Program Guidelines for current limits. Any approved “grant” amount for lead-based paint evaluation and reduction activities or for relocation assistance shall be included in this amount, as shall Activity Delivery Costs.
B. NON-RECURRING CLOSING COSTS
Non-recurring costs such as credit report, escrow, closing and recording fees, and title report and title insurance, title updates and/or related costs may be included in the 173
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Program loan.
C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
The actual amount of a buyer’s Program subsidy shall be computed according to the housing ratio parameters specified in Section 5.0.A. Each borrower shall receive only the subsidy needed to allow them to become homeowners (“the Gap”) while keeping their housing costs affordable. The City will use the “front-end ratio” of housing-expense-toincome to determine if the amount of the proposed primary loan is acceptable and, ultimately, the Program subsidy amount required, bridging the gap between the acquisition cost (purchase price plus closing costs) less down payment, and the amount of the primary loan.
D. RATE AND TERMS FOR PROGRAM LOAN
All Program assistance to individual households shall be made in the form of deferred payment (interest and principal) loan (DPL).
The Program loan’s term shall be for at least as long as the primary loan. The interest rate shall be 3% simple interest per annum for the first fifteen (15) years of the term. On the fifteenth (15th) year following the date of the loan execution, simple interest will stop accruing and 50% of the interest accrued thus far will be forgiven. On the twentieth (20th) year following the date of loan execution, all interest shall be forgiven and only the principal loan amount is due.
All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, and the loan period cannot be extended, except for loans that are resubordinated when a rate and term refinance is approved, per Attachment D.
E. COMBINED LOAN-TO-VALUE RATIO
The loan-to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs.
6.1 LOAN ADVISORY COMMITTEE PURPOSE AND COMPOSITION
1. Loan Advisory Committee Purpose- the function of the LAC will be to review and act on applications for financing recommended by the Housing staff. The LAC shall specifically review funding proposals and base their recommendation on eligibility, compliance with all program requirements, consistency of staff recommendations regarding the type of assistance. The LAC will also review/approve program guidelines changes and make recommendation to council to approve or deny the changes.
2. Composition- The LAC will consist of three (3) members of the City Council to be appointed by majority vote of the City Council for a maximum two-year term; two (2) individuals that reside in the Oroville City limits and/or own a business or work within 174
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the City Limits of Oroville., to be appointed by majority vote of the City Council for a maximum two-year term; two (2) individual alternates to be appointed by the City Council. The Manager of Housing exofficio member without a vote. Terms may be extended by a majority vote of the City Council
7.0. PROGRAM LOAN REPAYMENT
7.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time with no penalty to the borrower.
7.2. RECEIVING LOAN PAYMENTS
A. Program loan payments will be made to:
City of Oroville
Business Assistance and Housing Development
1735 Montgomery St.
Oroville CA 95965
B. The City will be the receiver of loan payments or recaptured funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the City’s Program Income Account, as required by HCD programs. The Program lender will accept loan payments from borrowers prepaying deferred loans, and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the City. The City may at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.
7.3. DUE UPON SALE OR TRANSFER
In the event that an owner sells, transfers title, or discontinues residence in the purchased property for any reason, the principal balance of the DPL is due and payable, except:
A. The owner shall be assured a fair return on investment including the owner’s investment and any capital improvement. If the Net proceeds are insufficient for the City to recapture the balance of Program Loan owed, the City shall share the Net proceeds with the owner in proportion to each party’s investment in the property. The Net proceeds are the sales price less repayment of the primary loan, and closing costs.
B. If the owner of the property dies, and the heir to the property meets income requirements, the First-Time Homebuyer definition, and intends to occupy the home as a principal residence, the heir may be permitted, upon approval of the City, to assume the loan at the rate and terms the heir qualifies for under the 175
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current participation guidelines. If the property owner dies and the heir does not meet eligibility requirements, the loan is due and payable.
C. If an owner wants to convert the property to a rental unit, or any commercial or non-residential use, the loan is due and payable.
D. The loan will be in default if the borrower fails to maintain required fire or flood insurance or fails to pay property taxes. See Attachment D on loan defaults for further information on property restrictions.
7.4. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment D for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures will be pursued.
7.5. LOAN MONITORING PROCEDURES
City will monitor Borrowers and their housing units annually to ensure adherence to Program requirements including, but not limited to, the following:
A. Owner-occupancy
B. Property tax payment
C. Hazard insurance coverage
D. Good standing on Primary loans
E. General upkeep of housing units
8.0. PROGRAM LOAN PROCESSING AND APPROVAL
A. Loan Processing
All homebuyers or their representatives will be sent out an eligibility packet with all the necessary forms, disclosures, information, and application. They should submit a complete application packet with all the City’s Program loan documents executed as well as all the information from the Primary Lender. The Primary Lender should submit: 1) accepted property sales contract with proper seller notification; 2) mortgage application with good faith estimates and first mortgage disclosures; 3) full mortgage credit report and rent verification; 4) current third party income verifications and verifications of assets; 5) homeownership education certificate, if applicable; and 6) signed underwriting transmittal summary and final signed loan application, both from primary lender. Staff will work with local lenders to ensure qualified participants receive only the benefit from the City’s Program needed to purchase the housing unit and that leveraged funds will be used when possible.
B. Creditworthiness
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Qualifying ratios are only a rough guideline in determining a potential borrower’s creditworthiness. Many factors such as excellent or poor credit history, amount of down payment, and size of loan will influence the decision to approve or disapprove a particular loan. The borrower’s credit history will be reviewed by the City and documentation of such maintained in the loan file. The City may elect to obtain a credit report or rely on a current copy obtained by the primary lender.
C. Documents from Primary Lender
After initial review of the qualified homebuyer's application packet, the City will request any additional documents needed. Documents may be faxed, but originals shall be received through the mail before Program funds are committed to escrow.
Based on receipt and review of the final documents, the City will do an income certification (using most recent HCD program’s guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability will then be verified and subsidy requirement determined.
D. Disclosure of Program and Loan Information to Homebuyers The Program’s application and disclosure forms will contain a summary of the loan qualifications of the borrower with and without Program assistance. Housing ratios with and without Program assistance are also outlined in these guidelines.
Information on the Program’s application will be documented with third party verifications in the file. For example, the sales contact will provide the final purchase price and outline how much of the closing costs are to be paid by the seller, etc. The appraisal, termite and title report will provide information to substantiate the information in the sales contract and guide the construction inspection. The Program loan application will provide current debt and housing information and will be documented by the credit report and income/asset verifications. The Primary Lender’s approval letter and estimated closing cost statement should reflect all the information in the loan package and show any contingencies of loan funding. Reviewing the Primary Lender’s loan underwriting documentation will provide basic information about the qualification of the applicant and substantiate the affordability provided by the Program loan. By reviewing and crosschecking all the Primary Lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.
8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN Once the loan approval package has been completed City will review the request and may approve it with or without conditions. Upon approval, a final closing date for escrow is set and Program funds are accessed for the homebuyer.
8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
The homebuyer(s) sign promissory notes, loan agreements, deeds of trust, and statutory lending notices (Truth In Lending (TIL), etc.); the Deeds of Trust are recorded with the County Clerk/Recorder at the same time, and the request(s) for copy of Notice of Default 177
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are also recorded with the County Clerk/Recorder.
8.3. ESCROW PROCEDURES
The escrow/title company shall review the escrow instruction provided by the Program lender and shall issue a California Land Title Association (CLTA) and the American Land Title Association (ALTA) after closing. The CLTA policy is issued to the homebuyer and protects them against failure of title based on public records and against such unrecorded risks as forgery of a deed. The ALTA is issued to each lender providing additional coverage for the physical aspects of the property as well as the homebuyer’s title failure.
These aspects include anything which can be determined by only physical inspection, such as correct survey lines; encroachments; mechanics liens; mining claims and water rights. The Program lender instructs the escrow/title company in the escrow instructions as to what may show on the policy; the amount of insurance on the policy (all liens should be covered) and the loss payee (each lender should be listed as a loss payee and receive an original ALTA).
9.0. SUBORDINATE FINANCING
With today’s high costs, in order for a low-income household to obtain a home, several funding sources might be required. Subordinate loans may be used to cover mortgage subsidy costs that exceed the Program maximum loan amount. All subordinate liens must have the payments deferred and the term must be for at least as long as the term of the Program loan.
10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES
The City may make amendments to these Participation Guidelines. Any changes shall be made in accordance with regulations and approved by the City Council. Changes shall then be sent to HCD for approval.
10.1. DEFINITION OF EXCEPTION
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.
10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The City or its agent may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the City’s recommended course of action and any written or verbal information supplied by the applicant.
B. The City shall make a determination of the exception. The request can be presented to the City’s loan committee and/or governing body for a decision.
11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
Any applicant denied assistance from the Program has the right to appeal. Complaints concerning the Program should be made to the City first. If unresolved in this manner, the 178
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complaint or appeal must be made in writing and filed with the City. The City will then schedule a meeting with the Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the Committee's decision, a request for an appeal may be filed with the City’s governing body. Final appeal must be filed in writing with HCD within one year after denial.
The Appeals Board is made up of three (3) members, consisting of the Mayor and two (2) City Council members to be appointed by the Mayor. The two council members appointed by the Mayor cannot be the same as the LAC members.
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ATTACHMENT A
24 CFR Part 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS
Part 5 Inclusions
This table presents the Part 5 income inclusions as stated in the HUD Technical Guide for Determining Income and Allowances for HOME Program (Third Edition; January 2005).
General Category (Last Modified: January 2005)
1. Income from
wages, salaries,
tips, etc.
The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services.
2. Business Income
The net income from the operation of a business or profession.
Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income.
An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family.
3. Interest &
Dividend Income
Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in number 2 (above). Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD.
4. Retirement &
Insurance Income
The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic payment (except for certain exclusions, listed in Income Exclusions, number 14).
5. Unemployment &
Disability Income
Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except for certain exclusions, listed in Income Exclusions, number 3).
6. Welfare
Assistance
Welfare Assistance. Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income:
• Qualify as assistance under the TANF program definition at 45 CFR 260.31; and
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• Are otherwise excluded from the calculation of annual income per 24 CFR 5.609(c).
If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:
• the amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus:
• the maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family welfare assistance is reduced from the standard of need by applying a percentage, the amount calculated under 24 CFR 5.609 shall be the amount resulting from one application of the percentage.
7. Alimony, Child
Support, & Gift
Income
Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling.
8. Armed Forces
Income
All regular pay, special day, and allowances of a member of the Armed Forces (except as provided in number 8 of Income Exclusions).
Part 5 exclusions
This table presents the Part 5 income exclusions as stated in the HUD Technical Guide for Determining Income and Allowances for HOME Program (Third Edition; January 2005).
General Category (Last Modified: January 2005)
1. Income of
Children
Income from employment of children (including foster children) under the age of 18 years.
2. Foster Care
Payments
Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone).
3. Inheritance and
Insurance Income
Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains, and settlement for personal or property losses (except for certain exclusions, listed in Income Inclusions, number 5).
4. Medical Expense
Reimbursements
Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member.
5. Income of Live-in
Aides Income of a live-in aide (as defined in 24 CFR5.403).
6. Income from a
Disabled Member
Certain increase in income of a disabled member of qualified families residing in HOME-assisted housing or receiving HOME tenant-based rental assistance (24 CFR 5.671 (a)).
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7. Student Financial
Aid
The full amount of student financial assistance paid directly to the student or to the educational institution.
8. "Hostile Fire" Pay The special pay to a family member serving in the Armed Forces who is exposed to hostile fire.
9. Self-Sufficiency
Program Income
a. Amounts received under training programs funded by HUD. b. Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set side for use under a Plan to Attain Self-Sufficiency (PASS). c. Amounts received by a participant in other publicly assisted programs that are specifically for, or in reimbursement of, out-ofpocket expenses incurred (special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program.
d. Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving s a member of the PHA’s governing board. No resident may receive more than one such stipend during the same period of time.
e. Incremental earnings and benefits resulting to any family member from participation in qualifying state or local
employment training programs (including training not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment-training program.
10. Gifts Temporary, nonrecurring, or sporadic income (including gifts).
11. Reparation
Payments
Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era.
12. Income from
Full-time Students
Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household or spouse).
13. Adoption
Assistance
Payments
Adoption assistance payments in excess of $480 per adopted child. 182
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14. Social Security
& SSI Income
Deferred periodic amounts from supplemental security income and social security benefits that are received in a lump sum amount or in prospective monthly amounts.
15. Property Tax
Refunds
Amounts received by the family in the form of refunds or rebates under state or local law for property taxes paid on the dwelling unit.
16. Home Care
Assistance
Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep this developmentally disabled family member at home.
17. Other Federal
Exclusions
Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the Federal Register and distributed to housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. The following is a list of income sources that qualify for that exclusion:
The value of the allotment provided to an eligible household under the Food Stamp Act of 1977;
Payments to volunteers under the Domestic Volunteer Service Act of 1973 (employment through AmeriCorps, VISTA, Retired Senior Volunteer Program, Foster Grandparents Program, youthful offender incarceration alternatives, senior companions); Payments received under the Alaskan Native Claims Settlement Act;
Income derived from the disposition of funds to the Grand River Band of Ottawa Indians;
Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes;
Payments or allowances made under the Department of Health and Human Services’ Low-Income Home Energy Assistance Program.
Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721);
The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U.S. Claims Court and the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands;
Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards under the Federal workstudy program or under the Bureau of Indian Affairs student assistance programs;
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Payments received from programs funded under Title V of the Older Americans Act of 1985 (Green Thumb, Senior Aides, Older American Community Service Employment Program);
Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.);
Earned income tax credit refund payments received on or after January 1, 1991, including advanced earned income credit payments;
The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990;
Payments received under programs funded in whole or in part under the Job Training Partnership Act (employment and training programs for Native Americans and migrant and seasonal farm workers, Job Corps, veterans employment programs, state job training programs and career intern programs, AmeriCorps).
Payments by the Indians Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation;
Allowances, earnings, and payments to AmeriCorps participants under the National and Community Services Act of 1990;
Any allowance paid under the provisions of 38 U.S.C. 1805 to a child suffering from spina bifida who is the child of a Vietnam veteran;
Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act; and Allowances, earnings, and payments to individuals participating in programs under the Workforce Investment Act of 1998.
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ATTACHMENT B
This table presents the Part 5 asset inclusions and exclusions as stated in the HUD Technical Guide for Determining Income and Allowances for HOME Program (Third Edition; January 2005).
Statements from 24 CFR Part 5 – Last Modified: January 2005 Inclusions
1. Cash held in savings accounts, checking accounts, safe deposit boxes, homes, etc. For savings accounts, use the current balance. For checking accounts, use the average 6-month balance.
Assets held in foreign countries are considered assets.
2. Cash value of revocable trusts available to the applicant.
3. Equity in rental property or other capital investments. Equity is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and all reasonable costs (e.g., broker fees) that would be incurred in selling the asset. Under HOME, equity in the family's primary residence is not considered in the calculation of assets for owner-occupied rehabilitation projects.
4. Cash value of stocks, bonds, Treasury bills, certificates of deposit and money market accounts.
5. Individual retirement, 401(K), and Keogh accounts (even though withdrawal would result in a penalty).
6. Retirement and pension funds.
7. Cash value of life insurance policies available to the individual before death (e.g., surrender value of a whole life or universal life policy).
8. Personal property held as an investment such as gems, jewelry, coin collections, antique cars, etc.
9. Lump sum or one-time receipts, such as inheritances, capital gains, lottery winnings, victim's restitution, insurance settlements and other amounts not intended as periodic payments.
10. Mortgages or deeds of trust held by an applicant.
Exclusions
1. Necessary personal property, except as noted in number 8 of Inclusions, such as clothing, furniture, cars and vehicles specially equipped for persons with disabilities.
2. Interest in Indian trust lands.
3. Assets not effectively owned by the applicant. That is, when assets are held in an individual's name, but the assets and any income they earn accrue to the benefit of someone else who is 185
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PART 5 ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS
ATTACHMENT C
MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMIT FOR CITY OF OROVILLE (HOME Value Limits as of 6/1/2021)
not a member of the household and that other person is responsible for income taxes incurred on income generated by the asset.
4. Equity in cooperatives in which the family lives.
5. Assets not accessible to and that provide no income for the applicant.
6. Term life insurance policies (i.e., where there is no cash value).
7. Assets that are part of an active business. "Business" does not include rental of properties that are held as an investment and not a main occupation.
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EXISTING
CONSTRUCTION
NEW
CONSTRUCTION (less
than 12 months old)
$314,000 $314,000
HOME SUBSIDY LIMITS PER UNIT FOR CITY OF OROVILLE
(Limits are effective 6/2/2020)
O-BDR 1-BDR 2-BDR 3-BDR 4 & 5-BDR
$153,314 $175,752 $213,718 $276,482 $303,490
INCOME LIMITS FOR CITY OF OROVILLE*
(Limits became effective 6/1/2021 (CDBG) and 7/1/2020(HOME) Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$39,050 $44,600 $50,200 $55,750 $60,250 $64,700 $69,150 $73,600 *Sponsor will insert the limits for the county in which the Program is located and will update the income limits annually as HCD provides new information. The link to the official, HCD-maintained, income limits is: http://www.hcd.ca.gov/grants-funding/incomelimits/state-and-federal-income-limits.shtml (choose CDBG and HOME limits, not State limits.)
SPONSOR STANDARDS FOR BEDROOMS AND BATHROOMS TO PREVENT
OVERCROWDING
Maximum No. of
Persons in the
Household
Number of
Bedrooms
Number of
Bathrooms
1 SRO 1
1 0-BR 1
2 1-BR 1
4 2-BR 2
6 3-BR 2
8 4-BR 3
10 5-BR 3
12 6-BR 4
• Children may share a bedroom, up to 2 children per bedroom. • Children shall be permitted a separate bedroom from their parents. (See additional guidance on next page)
• 4 or more people – a second bathroom is allowable.
• 8 or more people – a third bathroom is allowable.
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• Same rules apply to mobile home units.
• Adults not in a partner relationship may have their own bedroom The chart above is used as a guide to overcrowding.
ATTACHMENT D
LOAN SERVICING POLICIES AND PROCEDURES
FOR CITY OF OROVILLE
The City of Oroville, hereafter called “Lender,” has adopted these policies and procedures in order to preserve its financial interest in properties whose “Borrowers” have been assisted with public funds. The Lender will to the greatest extent possible follow these policies and procedures, but each loan will be evaluated and handled on a case-by-case basis. The Lender has formulated this document to comply with state and federal regulations regarding the use of these public funds and any property restrictions, which are associated with them.
The policies and procedures are broken down into the following areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; 7) processing of foreclosure in case of default on the loan.
1. Loan Repayments:
The Lender will collect monthly payments from those borrowers who are obligated to do so under Notes which are amortized promissory notes. Late fees will be charged for payments received after the assigned monthly due date.
For Notes which are deferred payment loans, the Lender must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.
2. Payment of Property Taxes and Insurance:
As part of keeping the loan from going into default, borrower must maintain property insurance coverage naming the Lender as loss payee. Except for HOME-funded loans, if borrower fails to maintain the necessary insurance, the Lender may take out force placed insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance at time of installation of Borrower’s new insurance.
When a property is located in a 100-year flood plain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance with an endorsement naming the City of Oroville as lender loss payee will be required at close of escrow. The lender will verify the insurance on an annual basis. 188
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Property taxes must be kept current during the term of the loan. If the Borrower fails to maintain payment of property taxes then the lender may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan (not permissible when funded with HOME).
Wherever possible, the Lender encourages Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.
3. Required Request for Notice of Default:
When the Borrower’s loan is in second position behind an existing first mortgage, it is the Lender's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Lender’s loan. This document requires any senior lienholder listed in the notice to notify the lender of initiation of a foreclosure action. The Lender will then have time to contact the Borrower and assist them in bringing the first loan current, if possible. The Lender can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Lender is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.
4. Annual Occupancy Restrictions and Certifications:
On owner-occupant loans, the Lender will require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. For CDBG, some loans may have income and housing cost evaluations, which require a household to document that they are not able to make amortized loan payments, typically every five years. These loan terms are incorporated in the original Note and Deed of Trust. On HOME-funded loans, annual occupancy verification will occur between January 1 and June 30 of each year.
5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:
In all cases where there is a change in title or occupancy or use, the Borrower must notify the Lender in writing of any change. Lender and Borrower will work together to ensure the property is kept in compliance with the original Program terms and conditions such that it remains available as an affordable home for low-income families. These types of changes are typical when Borrowers do estate planning (adding a relative to title) or if a Borrower dies and property is transferred to heirs or when the property is sold or transferred as part of a business transaction. In some cases, the Borrower may move and turn the property into a rental unit without notifying the Lender. Changes in title or occupancy must be in keeping with the objective of benefit to low-income households (below 80 percent of AMI).
Change from owner-occupant to owner-occupant occurs at a sale. When a new owner-occupant is not low-income, the loan is not assumable and the loan balance is immediately due and payable. If the new owner-occupant qualifies as low-income, the purchaser may either pay the loan in full or assume all loan repayment obligations of the original owner-occupant, subject to the approval of the Lender’s Loan Committee (depends on the HCD program).
If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan at an interest rate based on household size and household income, provided the heir is income eligible. If the heir intends to occupy the property and is not 189
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low-income, the balance of the loan is due and payable. For CDBG only, if the heir intends to act as an owner-investor (not permitted under HOME), the balance of the loan may be converted to an owner/investor interest rate and loan term and a rent limitation agreement is signed and recorded on title. All such changes are subject to the review and approval of the Lender’s Loan Committee.
Change from owner-occupant to owner-investor occurs when an owner-occupant decides to move out and rent the assisted property, or if the property is sold to an investor. If the owner converts any assisted unit from owner-occupied to rental, the loan is due in full.
Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Lender allow for a partial conversion where some of the residence is used for a business but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by any and all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.
6. Requests for Subordinations:
When a Borrower wishes to refinance their existing first mortgage, they must submit a subordination request to the Sponsor. The Sponsor will subordinate their loan only when there is no “cash out” as part of the refinance. No cash out means there are no additional charges on the transaction above loan and escrow closing fees. There can be no third-party debt payoffs or additional encumbrances on the property above traditional refinance transaction costs. The refinance should lower the existing housing cost of the household. The total indebtedness on the property should not exceed the current market value except when the borrower is obtaining a HARP II or other similar federally approved refinance loan. If the HARP II or other similar financing is approved and meets all other requirements, combined Loan-To-Value will not be considered when reviewing the subordination request.
Also, the loan must:
1. be fully amortized and have a fixed interest rate that does not exceed the current market rate, as established by an index identified in the most recent NOFA;
2. not have a temporary interest rate buy-down;
3. have a term “all due and payable” that matures prior to or concurrently with the maturity date of the Promissory Note. Therefore, the maturity date of the existing Promissory Note should be modified to coincide with the maturity date of the new first mortgage; and,
4. not have a balloon payment due before the maturity date of the Program loan.
Upon receiving the proper documentation from the refinance lender, the request will be considered by the Manager of Business Assistance and Housing Development for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor.
7. Process for Loan Foreclosure:
Upon any condition of loan default: 1) non-payment; 2) lack of insurance or property tax payment; 3) change in title or use without approval; 4) default on senior loans, the Lender will send out a letter to the Borrower notifying them of the default situation. If the default situation continues then the Lender may start a formal process of foreclosure.
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When a senior lienholder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note.
If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructure the debt such that the unit is made affordable to the Borrower. If the Lender does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. As long as there is sufficient value in the property, the Lender can afford to pay for the foreclosure process and pay off the senior lienholder and retain some or all of their investment.
If the Lender decides to reinstate, the senior lienholder will accept the amount to reinstate the loan up until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Lender fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder would then require a full pay off of the balance, plus costs, to cancel foreclosure.
If the Lender determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lienholder to complete foreclosure, the Lender's lien may be eliminated due to insufficient sales proceeds.
Lender as Senior Lienholder
When the Lender is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure. Lender’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Lender? 3) Can the Borrower sell the property and pay off the Lender? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
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If the balance is substantial and all of the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).
At the end of thirty days, the Lender should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Lender of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Lender informed of the progress of the foreclosure proceedings.
When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Lender could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income eligible uses. 192
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ATTACHMENT E
SELLERS LEAD-BASED PAINT DISCLOSURE
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.
Seller’s Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) ____ Known lead-based paint and/or lead-based paint hazards are present in the housing (explain). ________________________________________________________ (ii)____ Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
(b) Records and reports available to the seller (check (i) or (ii) below):
(i) ____ Seller has provided the purchaser with all available records and reports pertaining to Lead-based paint and/or lead-based paint hazards in the housing (list documents below). ————————————————————————————————————————
(ii) ____Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.
Purchaser’s Acknowledgment (initial)
(c)____Purchaser has received copies of all information listed above. (d)____Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e)____Purchaser has (check (i) or (ii) below):
(i) _____ received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or
(ii) _____waived the opportunity to conduct a risk assessment or inspection for the presence of Lead-based paint and/or lead-based paint hazards (NOT PERMISSIBLE FOR HOME AND CDBG).
Agent’s Acknowledgment (initial)
(f)____ Agent has informed the seller of the seller’s obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. —————————— —————————— ————————— —————————
Seller Date Seller Date
—————————— —————————— ————————— —————————
Purchaser Date Purchaser Date
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—————————— —————————— ————————— —————————
Agent Date Agent Date
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ATTACHMENT F
Disclosure to Seller with Voluntary, Arm's Length Purchase Offer
DECLARATION
This is to inform you that would like to purchase the property, located at , if a satisfactory agreement can be reached. We are prepared to pay $____________ for a clear title to the property under conditions described in the attached proposed contract of sale.
Because Federal funds may be used in the purchase, however, we are required to disclose to you the following information:
1. The sale is voluntary. If you do not wish to sell, the buyer, ___________________, thru the agency, _____________ will not acquire your property. The buyer does not have the power of eminent domain to acquire your property by condemnation (i.e. eminent domain) and the agency/Sponsor
________________________________ will not use the power of eminent domain to acquire the property.
2. The estimated fair market value of the property is $__________ and was estimated by _______________________________________, to be finally determined by a professional appraiser prior to close of escrow.
Since the purchase would be a voluntary, arms-length, transaction you would not be eligible for relocation payments or other relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), or any other law or regulation. Also, as indicated in the contract of sale, this offer is made on the condition that no tenant will be permitted to occupy the property before the sale is completed.
Again, please understand that if you do not wish to sell your property, we will take no further action to acquire it. If you are willing to sell the property under the conditions described in the attached contract of sale, please sign the contract and return it to us at:
_______________________________________________. If you have any questions about this matter, please contact __________________________at ______________________.
Sincerely,
____________________________________
Title
_________________________________ _____________________ Buyer Date
_________________________________ _____________________ Buyer Date
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Disclosure to Seller with Voluntary, Arm's Length Purchase Offer (Page 2) Acknowledgement
As the Seller I/we understand that the will inspect the property for health and safety deficiencies. I/we also understand that public funds may be involved in this transaction and, as such, if the property was built before 1978, a lead-based paint disclosure must be signed by both the buyer and seller, and that a Visual Assessment will be conducted to determine the presence of deteriorated paint.
As the Seller, I/we understand that under the City of Oroville program, the property must be currently owner-occupied, vacant for three months at the time of submission of purchase offer, new (never occupied), or renter purchasing the unit. I/we hereby certify that the property is:
Vacant at least 3 months; Owner-occupied; New; or Being Purchased by Occupant I/we hereby certify that I have read and understand this “Declaration” and a copy of said Notice was given to me prior to the offer to purchase. If received after presentation of the purchase offer, I/We choose to withdraw or not to withdraw, from the Purchase Agreement.
__________________________________ _______________________ Seller Date
__________________________________ _______________________ Seller Date
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ATTACHMENT H
EXTERIOR
INTERIOR
Walls: Pass Correction
Doors: Pass Correction
Lead Based Paint: Pass Correction
MECHANICAL
Water Heater Seismic Strapping: Pass Correction
Ventilation Installed Property: Pass Correction
Adequate Combustion Air: Pass Correction
Pressure Temperature Relief Valve (PTR) Value Terminated to Approval Location Pass Corrections Contact Person: Date of Inspection: Assessor’s Parcel Number:
- -
Property Address: Year Built: Square Feet:
# of Bedrooms: # of Bathrooms:
Telephone:
( )
E-Mail: Inspector: Jim Gollihar
Realtor:
Grading: Pass Correction
Driveway: Pass Correction
Deck/Patio: Pass Correction
Foundation: Pass Correction
Roof: Pass Correction
Chimney: Pass Correction
Stucco: Pass Correction
Siding: Pass Correction
Exterior Trim: Pass Correction
Windows: Pass Correction
Door(s): Pass Correction
First Time Home Buyer’s Inspection
Checklist
City of Oroville
Business Assistance
and Housing Development Department
Office (530) 538-2495 Fax (530) 538-2539
Email: www.cityoforoville.com
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Heating Ventilation and Air Conditioning System: Pass Corrections Miscellaneous Items
ELECTRICAL
Service/Subpanel Circuit Breakers
Labeled : Pass Correction
Lighting: Pass Correction
Hazardous Wiring: Pass Correction
Grounding Protection: Pass Correction
Other Electrical Items: Pass Correction
PLUMBING
Non-Removable back flow
prevention devise on all hose
bibs: Pass Correction
Water Piping : Pass Correction
Drains, Vents, Cleanouts: Pass Correction
Miscellaneous Plumbing Items:
ATTIC
Insulation Type:
Approximate RValue
Adequate Cross
Ventilation: Pass Correction
Evidence of Water
Intrusion: Pass Correction
Roof Structure: Pass Correction
BASEMENT
Basement: Pass Correction N/A
Evidence of Water
Intrusion: Pass Correction
MISCELLANEOUS ITEMS:
Exposed Dry Rot: Pass Correction
Smoke Detectors Installed in Bedrooms, Rooms Leading to Bedrooms, and on Every Level: Pass Correction
Carbon Monoxide Detectors installed outside the bedroom, and on each level: Pass Correction
SWIMMING POOL IN GROUND/ ABOVE GROUND
Pool Condition: Pass Correction N/A
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Pool Equipment/ Pool
Deck: Pass Correction
Pool Alarms: Pass Correction
Pool Fence/Gate: Pass Correction
*** Please keep in mind this is not an all inclusive list of items that may need repair on the property and is not a pest inspection. It is highly recommended that you hire a third party inspection company to thoroughly investigate the property prior to purchasing.
Date: Signature:
ATTACHMENT I
Homebuyer Program Lead Compliance Document Checklist
The following documents should be in each Homebuyer unit file to document compliance with the lead requirements:
Document Name Purpose
✓
Lead Safe Housing Rule Screening Sheet Documents exemptions Physical inspection form (HQS or equivalent) Documents visual assessment results
Seller Certification Seller certifies that
paint was stabilized by
qualified workers and
that safe work practices
were followed during
paint stabilization
Clearance Report and Clearance Review Worksheet Documents that unit passed clearance
Disclosure Form Documents that buyer
received disclosure and
pamphlet.
1. 2.
Miscellaneous:
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Lead Hazard Reduction Notice Documents that buyer
received required lead
hazard reduction
notification.
This was taken from the HUD Website at:
http://www.hud.gov/offices/cpd/affordablehousing/training/leadsafe/usefulforms/index.cfm#crosscut ting
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CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND COUNCIL MEMBERS
FROM: DAWN NEVERS, ASST. COMMUNITY DEVELOPMENT DIRECTOR
CONNIE SPADE, ASSOCIATE PLANNER
RE: FIRST READING OF ZONING CODE AMENDMENT ZC22-01,
PROPOSED REVISION OF OROVILLE MUNICIPAL CODE TO ADD
CHAPTER 17.16.240 RELATING TO THE REGULATION OF
MASSAGE ESTABLISHMENTS AND INDEPENDENT MASSAGE
PROVIDERS.
DATE: APRIL 5, 2022
SUMMARY
The Council will consider adding OMC Chapter 17.16.240 relating to the City’s regulation of massage and other therapeutic bodywork businesses. These regulations are intended to protect the health, safety and welfare of clients, the public and individuals while respecting legitimate massage businesses, and complying with the Massage Therapy Act of 2008.
DISCUSSION
At present, the City of Oroville has not adopted regulations to adequately govern massage businesses. The proposed massage ordinance would provide direction, structure and minimum requirements for State massage certification, sanitation, safety, professional conduct, and operational standards.
The city recognizes massage therapy as a healing art and the many benefits it provides to residents and visitors in Oroville. However, the city must also address the widespread use of massage establishments as a front for sex trafficking and other criminal activity. Therefore, the proposed ordinance includes several features to prevent and curtail illegal activities to ensure the health, safety, and welfare of the community and possibly the victims of sex trafficking.
The Planning Commission recommends approval. The highlighted changes are minor clarifications made after the Planning Commission’s review and with their consent.
During the development of this ordinance the California Massage Therapy Council (CAMTC) provided vital information and support, the Development Review Committee 201
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provided input at two meetings, and the Director of Code Enforcement has been involved throughout.
The Planning Commission Staff report includes a detailed discussion of the CAMTC, the law creating it, and the key features of the proposed ordinance, which include:
1. Only massage therapists with a minimum of 500 hours of study from a school approved by the California Massage Therapy Council (CAMTC) can work at a massage establishment.
2. Existing sole providers must pass a live scan and provide proof of valid education to the city within 60 days of ordinance enactment.
3. Future sole providers must have a minimum of 350 hours of study and practice from a CAMTC approved school but do not have to be CAMTC certified
4. Existing massage establishment managers and massage therapists that are not CAMTC certified are allowed 16 months from the date of massage ordinance enactment to submit a copy of their CAMTC certificate and color copy of their CAMTC photo identification card. At 12 months each manager and massage therapist must provide proof to the city they completed 500 hours of study and CAMTC has accepted their complete application.
5. Within 60 days of enactment of this ordinance, all establishment owners and personnel (including support staff) are required to submit results of a live scan to the Chief of Police unless they are CAMTC certified.
6. Owners must provide their work history, work location(s), and job title(s) for the previous five years and provide documents regarding any suspension or revocation of a massage establishment permit in any jurisdiction over the last 10 years.
7. Operational requirements at massage establishments include no tinting of windows, indoor and outdoor lighting, window treatments, cleanliness, logging of daily treatments, creating a register of all persons associated with the massage establishment that is updated every 30 days. There are strict limits on advertising.
FISCAL IMPACT
None
RECOMMENDATION
1. Conduct a Public Hearing on the proposed Massage Ordinance.
2. Waive first reading and approve Ordinance 1863 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OROVILLE ADDING CHAPTER 17.16.240
OF THE ZONING CODE OF THE CITY OF OROVILLE RELATING TO THE
REGULATION OF MASSAGE ESTABLISHMENTS AND INDEPENDENT
MASSAGE PROVIDERS.
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3. Adopt Resolution No. 9041 - A RESOLUTION OF THE OROVILLE CITY COUNCIL ADOPTING ZONING CHANGE ZC 22-01 AND ADOPTING AN ORDINANCE ADDING CHAPTER 17.16.240 OF THE ZONING CODE OF
THE CITY OF OROVILLE RELATING TO THE REGULATION OF MASSAGE ESTABLISHMENTS AND INDEPENDENT MASSAGE PROVIDERS.
ATTACHMENTS
1. Ordinance No. 1863
2. Planning Commission Package (staff report and resolution)
3. Graphic – Massage Regulation by Business Type
4. City Council Resolution No 9041
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1 ORDINANCE No. 1863
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OROVILLE ADDING CHAPTER
17.16.240 OF THE ZONING CODE OF THE CITY OF OROVILLE RELATING TO THE
REGULATION OF MASSAGE ESTABLISHMENTS AND INDEPENDENT MASSAGE
PROVIDERS
April 5, 2022
TABLE OF CONTENTS
17.16.xxx - Purpose and Intent. ................................................................................................. 2
17.16.xxx - Definitions................................................................................................................ 2
17.16.xxx - Regulation of Massage Establishments ................................................................... 4
17.16.xxx - Exemption from CAMTC Certification ...................................................................... 7
17.16.xxx - Deadline for CAMTC Certificate - Existing Massage Establishments ....................... 8
17.16.xxx - Massage Establishment Operation .......................................................................... 8
17.16.xxx - Responsibilities of Owners and Managers ............................................................... 9
17.16.xxx - Notification Requirements...................................................................................1211
17.16.xxx - Application for Massage Establishment Business License ......................................12
17.16.xxx - Inspection ...............................................................................................................15
17.16.xxx - Amendment Required for Personnel Changes........................................................15
17.16.xxx - Amendment Required for Change of Business Name or Location ..........................15
17.16.xxx - Sale or Transfer of Massage Establishment or Ownership Interest Therein. ...........16
17.16.xxx - Health and Safety Requirements ............................................................................16
17.16.xxx - Physical Facility Requirements. ..............................................................................20
17.16.xxx - Suspension or Revocation ......................................................................................20
17.16.xxx - Applicability of other Ordinances.........................................................................2121
17.16.xxx - Severability. ............................................................................................................21
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2 17.16.xxx - Purpose and Intent.
The city recognizes that massage is a viable professional healing art offering the public valuable health and therapeutic services. The city also recognizes that unless properly regulated, the profession may be highjacked for use by the sex industry or human traffickers, posing a threat to the victims, customers, and the quality of life in the community.
It is the purpose and intent of this Chapter to protect the public health, safety, and welfare by providing for the orderly regulation of massage establishments and sole providers ensuring individuals providing massage or other therapeutic bodywork are qualified and properly trained to avoid injury to clients, and by providing minimum building, sanitation, and operation standards for such businesses, while relying on the uniform statewide regulation enacted by the State Legislature in 2008, as well as subsequent amendments, in Business and Professions Code Section 4600 et seq., known as the Massage Therapy Act.
Specifically, the regulations in this Chapter are intended to reduce or prevent blight, protect and preserve the quality of properties and the quality of life in the City of Oroville, deter criminal activity and prevent commercial sexual exploitation and human trafficking.
17.16.xxx - Definitions.
The following terms and phrases, whenever used in this Chapter, are defined as follows:
Accessory Massage Business. A massage business in a building, office or other fixed location that is secondary to the primary use including, but not limited to, a hotel, motel, beauty salon, spa, athletic club, nail salon, or yoga studio.
California Massage Therapy Council or “CAMTC”. The non-profit organization formed to oversee and certify individual massage therapist and massage schools pursuant to the California Business and Professions Code Chapter 10.5 of Division 2 of the Business and Professions Code (commencing with section 4600). The CAMTC does not regulate massage establishments.
CAMTC certification or state certification. These terms are used interchangeably and refer to a valid certificate properly issued by CAMTC pursuant to California Business and Professions Code Section 4600 et seq., as amended issued to individuals completing 500 hours of massage instruction from a CAMTC approved school, passed the State exam, and successfully passed a live scan background check. Certification is valid for two years.
Certified massage establishment. Any establishment where the manager(s) and massage therapist(s) have current and valid CAMTC certificates.
Certified massage therapist. Any individual to whom the CAMTC has issued a certificate and photo identification card per Business and Professions Code sections 4600-4620.
Chief of Police. The City Chief of Police, or his or her designee.
City business license. The city license required for all businesses in the city and issued per Municipal Code Section 5.08.030.
City Administrator. The City Administrator, or his or her designee. 205
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3 Compensation. The payment, loan, advance, donation, contribution, deposit, exchange, or gift of money or anything of value.
Exempt Individuals. Sole providers and massage establishment owners are exempt from CAMTC certification after successfully passing a live scan background check and other conditions, but not otherwise exempt from other requirements of this Chapter.
Franchise Massage Establishment. A franchise is a type of license that grants a franchisee access to a franchisor's proprietary trade name, products and services, and an entire system for operating the business.
Live scan. A criminal background check using inkless fingerprint imaging required by the State prior to CAMTC certification and for individuals exempt from CAMTC certification by this Chapter.
Massage. Massage means the therapeutic manipulation of the external soft tissues of the body for remedial health, or hygienic purposes for any form of compensation by means of pressure, friction, stroking, kneading, rubbing, tapping, vibrating, pounding, to produce increased awareness, relaxation, pain relief, injury rehabilitation, or neuromuscular reeducation with or without the aid of any mechanical or electrical apparatus or appliances; or with or without supplementary aids, such as rubbing alcohol, liniments, antiseptics, oils, powders, creams, gels, lotions, ointments, or other similar preparations commonly used in this practice; or baths, showers or electric tub.
Massage therapist. An individual that provides massage therapy who has completed verifiable hours in a resident course of study from a recognized school.
Massage business. Any person, firm, association, partnership, corporation, joint venture, or a combination of individuals who engages in, conducts, carries on or permits to be engaged in, conducted or carried on for consideration, massages or health treatments in the city in which massages are given in return for compensation of any type whether at a fixed place of business or a location designated by the client.
Massage establishment. An office, site or premises, or portion thereof, where the owner(s) employ, contract with, or otherwise retain massage therapists to provide on-site massage, offsite massage on behalf of the establishment, or a combination of both.
Massage establishment manager. Any person who supervises, manages, directs, organizes, controls or in any other way is responsible for or in charge of the overall operation, conduct or activities of a massage establishment business. The manager may be the massage establishment owner or a CAMTC certified massage therapist.
Mobile and off-site massage. The engaging in or carrying on of massage therapy or other bodywork for compensation at a location requested by the client (e.g., client residence or office) or by the massage therapist (e.g., sports event, health fair or senior home). Mobile massage does mean administering massage/bodywork within a vehicle.
Other Bodywork. A therapeutic practice of the healing arts, other than massage (e.g., shiatsu, acupressure, bowen, manual lymph drainage) that include therapeutic touch or energy work.
Owner. For purposes of this Chapter “owner” refers to all owners of a massage establishment. 206
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4 Owners. A partnership, corporation, or shareholder of a massage establishment and means any of the following:
Any general partner of a partnership that owns and operates a massage establishment business; or
Any person who has an ownership interest in a corporation that owns and operates a massage establishment; or
All owners of a massage establishment including any of the following persons, a general partner, a limited partner, a shareholder, or any person who has a five percent or greater ownership interest in a massage business whether as an individual, corporate entity, limited partner, or shareholder.
Reception Area. An area immediately inside the main entry door of the massage establishment dedicated to the reception and waiting of clients.
Recognized school. Any school or institution of higher learning which has been approved pursuant to California Education Code Section 94300 et seq. or other applicable state law or regulations of California or another state school on the ethics, practice, methods, and contraindications of the profession of massage, including the study of anatomy, physiology and hygiene, and practice of massage techniques and that provides a diploma or certificate.
Sole provider. An individual that administers massage or other therapeutic bodywork, owns 100 percent of their business, and is the only person working for that business.
Visitor. Any individual not retained or employed by the massage establishment and not receiving or waiting to receive massage therapy services including, but not limited to, a caretaker, child of a client, parent of child receiving massage, delivery person, and the public.
17.16.xxx - Regulation of Massage Establishments
This Chapter includes requirements for massage establishments and other types of massage businesses. Requirements are different for existing businesses and future businesses that wish to operate in the city.
A. State (CAMTC) Certification
1. No person shall establish, operate, or maintain a Massage Establishment within city limits without ensuring that each individual administering massage or other bodywork (whether an employee or independent contractor) and manager has a current and valid state certification through CAMTC.
2. CAMTC certificate holders shall renew their CAMTC certification every two (2) years as required by the Massage Therapy Act.
Business License
1. Any person or persons that currently operate or that wish to open a massage establishment within the city shall have a valid Business License as required in Section 5.08.030, renew the license every 12 months, and obtain all necessary city approvals.
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5 2. The massage establishment business license shall be valid for one (1) year from the date of issuance, and, unless suspended or revoked, must be renewed by the massage establishment owner every 12 months.
3. Applications for renewal must be submitted to the Police Chief or his or her designee by no later than sixty (60) calendar days before the expiration of such business license.
4. Massage therapists that are non-employees of a massage establishment must also obtain a business license separate from the massage establishment.
B. Personal Service - Medium Impact Zoning Removed. Any massage establishment that employs, contracts with, or otherwise retains massage therapists certified by the CAMTC shall be considered a personal service - low-impact as defined in OMC Section
17.04.060. The permitting process shall be as outlined in the zoning table for the zoning district in which the applicant proposes to operate a massage establishment. Personal Services - Medium Impact (allowed with use permit approval) will no longer apply to massage establishments regulated by this Chapter.
C. Registry of Owners, Managers, Massage Therapists and Staff. The massage establishment owner(s) and manager(s) shall maintain on the premises a register of all current owners, managers, massage therapists, and support staff. The register shall be updated every 30 days. The register shall be legible, in English and maintained for a minimum of two years following the time that any individual ceases services or affiliation with the massage establishment. A massage establishment owner "employs or retains" a person to practice massage therapy for compensation when:
1. That person is a directly paid employee of the massage establishment; or
2. That person's association with a massage establishment is that of an independent contractor who receives compensation for massage therapy provided to clients of the massage establishment; or
3. That person receives a referral of clients from the massage establishment and, at any time before or after the referral, arranges in any way for compensation to flow to the massage establishment owner (regardless of whether the parties involved acknowledge that compensation is flowing in exchange for the referral, or whether such parties record such compensation in their financial records).
4. The owner, manager, or massage therapist or other staff shall make the register immediately available for inspection upon demand of a representative of the Police Department, any health officer, or any other city official charged with the monitoring and enforcement of this Chapter. The register shall include the following information:
a. Name, nicknames, and/or aliases;
b. Home address and relevant telephone number, including but not limited to home, cellular, and pager numbers and email;
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6 c. Age, date of birth, gender, height, weight, color of hair and eyes; d. The date such person began employment or providing services, and the date such person ended employment or stopped providing services, if any; e. The duties of each person; and
f. In a separate portion of the register, Social Security numbers, which shall only be available for review by the Police Department or other law enforcement personnel, but not health officers or other officials charged with the enforcement of this Chapter.
D. Location Moratorium - Problem Massage Business. No person shall provide massage, operate a massage establishment, or provide property for operation of a massage establishment at a particular location if:
1. Another massage establishment is or was operating at that location within the prior thirty-six (36) months and that massage establishment has been deemed by the city attorney or a court of competent jurisdiction to have violated any provision of this Chapter.
2. Another massage establishment is or was operating at that location within the prior thirty-six (36) months and that massage business has outstanding unpaid fines or penalties, whether criminal, administrative, or civil.
E. Business Name and Operation. No person permitted to operate a massage establishment under this Chapter shall operate under any business name or conduct business under any designation not specified in the massage establishment business license.
F. Certificate of Occupancy. An application for a certificate of occupancy shall be required per Section 17.48.030 with one or more of the following:
1. Change of lessee or owner, even when the change does not alter the use. A copy of the lease agreement shall be provided to the Chief of Police within 30 days that the lease takes effect.
2. A remodel
3. Change in business location.
4. Change in the use of the business including, but not limited to, adding or eliminating secondary services (spa, tanning, cosmetology, etc.) and expanding or reducing floor space.
G. Advertising Requires State Certificate Number. Each manager or individual who administers massage shall include in all advertising and business cards the name under which he or she is certified and his or her certificate number. Any and all advertising and business cards by massage establishment owner(s) shall include their city business license number.
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7 H. Nuisance Abatement. If the city attorney declares a massage establishment to be a public nuisance, the city attorney may commence an action or actions, proceeding or proceedings, for the abatement, removal, and enjoinment thereof, in the manner provided by law.
17.16.xxx - Exemption from CAMTC Certification
A. Sole Providers.
Existing and future sole providers practicing massage or other therapeutic bodywork (e.g., Bowen therapy, cranio-sacral, movement therapy, manual lymphatic drainage, and energy work) are exempt from CAMTC certification with the following conditions:
1. Existing Sole Providers - Non CAMTC Certified
Submit the following information to the Chief of Police or his or her designee within 60 days of enactment of this Chapter:
Results of a live scan background check.
A clear color photo of applicant’s face taken in the last three months (minimum size 2” by 3”) that is acceptable to the city.
The city “General Application” and supplemental documents including:
o Questionnaire and Agreement for Sole Providers.
o Diploma, certificate or other valid proof of education acceptable to the city.
2. Existing Sole Providers - CAMTC Certified
Existing Sole Providers that have an active CAMTC certificate shall submit the following information to the Chief of Police or his or her designee within 60 days of enactment of this Chapter:
A copy of an active CAMTC certificate and CAMTC photo identification card. The city “General” Application.
Questionnaire and Agreement
3. Future Sole Providers
Results of a live scan background check.
A clear color photo of applicant’s face taken in the last three months (minimum size 2” by 3”) that is acceptable to the city.
The city “General Application” and supplemental documents including:
o Questionnaire and Agreement for Sole Providers.
o Diploma, certificate or equivalent document from a CAMTC approved school. o Transcripts showing 350 hours of study
4. Future sole providers are required to have a minimum of 350 hours of study and practice from a CAMTC approved school but do not have to be CAMTC certified. The CAMTC websites list approved and non-approved schools.
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8 B. A student of massage therapy or bodywork working towards CAMTC certification under the supervision of a CAMTC certified massage therapist, a National Board-certified therapist, or equivalent.
C. Licensed professionals such as physicians, nurses, chiropractors, osteopaths, naturopaths, podiatrists, acupuncturists, or physical therapists who are duly licensed to practice their respective professions in the State of California or persons working for, and under the direct supervision of a physician, nurse, chiropractor, osteopath, naturopath, podiatrist, acupuncturist, or physical therapist.
D. Barbers, beauticians, estheticians, and cosmetologists who are duly licensed under the laws of the State of California, while practicing within the scope of their licenses.
E. Trainers of any amateur, semi-professional, or professional athlete or athletic team while engaging in their training responsibilities.
F. Individuals administering massages for a single-occurrence event, including but not limited to; a triathlon, festival, fair, and with approval of the event sponsors.
G. Owner(s) of a Massage Establishment unless actively managing or administering massages.
17.16.xxx - Deadline for Compliance - Existing Massage Establishments A. Managers and Massage Therapists - Non CAMTC Certified
1. Within 12 months from the date of ordinance enactment each manager and massage therapist must provide proof to the city they have completed 500 hours of study and CAMTC has accepted their complete application.
2. Within 16 months from the date of ordinance enactment a copy of the manager(s) and massage therapist(s) CAMTC certificate and photo identification card shall be submitted to the city Planning and Development Department. The 16-month grace period shall not apply to existing massage establishments operating in the city without a current business license or in violation of any local, state, or federal regulation within the last 10 years.
B. All Owners, Managers, Therapists, and Staff
1. Live Scan. Within 60 days from the date of ordinance enactment all non-CAMTC certified persons affiliated with any massage establishment shall submit proof of successful passage of a live scan background check to the Chief of Police.
C. Owner(s)
1. The owner or owners (all owners) shall provide a government issued photo identification to the city that can include; a valid and current driver’s license and/or photo identification issued by a state or federal governmental agency or other photographic identification bearing a bona fide seal by a foreign government. 211
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9 17.16.xxx - Massage Establishment Operation
A. The following operational requirements and owner and manager responsibilities shall be applicable to all massage establishments located within the city:
1. All clients, visitors, and any persons other than individuals employed or retained by the massage establishment shall be required to enter and exit through the main entry door.
2. Clients and visitors as defined in this Chapter shall be permitted in the massage establishment only during the hours of operation. Massage shall be provided or given only between the hours of 7:00 a.m. and 9:30pm. A massage commenced prior to 9:30 p.m. must terminate at 9:30 p.m., and all clients and visitors shall exit the premises no later than 10:00pm through the front or main entry door.
3. All Massage Establishments shall be closed for business by no later than 10:00 p.m. and shall open for business no earlier than 6:00 a.m. It shall be unlawful for any Massage Therapist or other employee of a Massage Establishment to give or practice massage during the hours when the Massage Establishment is closed.
4. Clients shall only be permitted in a massage therapy cubicle, room, client restroom, reception and waiting area, dressing rooms, showers, and spa area, and only if at least one (1) duly authorized massage therapist is present on the premises of the massage establishment. Clients and visitors shall not be allowed in any employee break, employee restroom, laundry, or storage room on the premises.
5. Visitors shall not be permitted in massage therapy room, cubicle, or other enclosed space used for massage unless that visitor is:
a. The conservator, aid, or other caretaker of a client who is elderly or disabled; or b. The parents or guardian of a client who is a minor child may be present in the massage therapy room with that minor child; or
c. The minor child of a client when necessary for the supervision of the child.
6. Establishment interior and exterior doors shall remain unlocked while the massage establishment is open. Exterior doors may remain locked if the massage establishment is a sole provider as allowed by AB 1147.
7. No massage establishment shall be used for residential purposes. There shall be no beds, blow up mattresses, cots, wall beds, or futons in the establishment. No part of the establishment shall be altered for residential or sleeping purposes.
8. No van, motorhome or other vehicle shall be parked in the parking lot of a massage establishment overnight.
9. No person shall give, or assist in the giving of, any massage or other body treatment to any other person under the age of eighteen years, unless the parent or guardian of the minor person has consented thereto in writing.
10. No person owning or managing a massage establishment may employ subcontract with or use any person under eighteen years of age.
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10 11. No massage establishment may discriminate or exclude clients based on their race, sex, religion, age, disability, or any other classification protected under federal or state laws, rules, or regulations.
12. No person operating a massage establishment shall permit communication devices such as cameras or intercom systems used in any manner on the premises to interfere with or hinder inspections whether temporarily or permanently mounted to a fixed surface indoors or outdoors.
13. Each manager and massage therapist of a massage establishment shall wear or display their CAMTC photo identification card in the room, cubicle, or space where they administer massage and, in a manner, easily visible to the client.
14. Each manager and massage therapist shall provide his or her CAMTC photo identification card upon the request of a member of the public, the City Council, or a member of law enforcement, city staff or a local government agency charged with regulating massage or massage establishments, at the location where he or she is providing massage services for compensation.
15. All massage services shall be paid for in the reception area, and all tips, if any, shall be paid for in the reception area. Massage Establishments may utilize a system where tip envelopes are provided in the treatment rooms to be utilized and deposited by the client in the reception area.
17.16.xxx Responsibilities of Massage Establishment Owners and Managers A. All owners and managers shall be responsible for the conduct of all massage establishment employees, agents, independent contractors, or other representatives while such persons are on the premises of the massage establishment or providing off site massage on behalf of the massage establishment.
B. The owner and/or manager shall be required to file copies of each CAMTC certificate and CAMTC photo identification card with the Chief of Police prior to or within seven days of a massage therapist beginning to work at the massage establishment.
C. The owner or manager of the massage establishment shall maintain copies of each massage therapist’s State certificate and a color copy of the CAMTC photo identification card on file on the premises of the massage establishment which shall be readily available to law enforcement, city code enforcement officer, or other city personnel that oversee compliance with this Chapter.
D. A legible written daily log shall record the following:
1. Each client’s first and last name.
2. The assigned room (or address of off-site massage service).
3. The legal name and nick name if applicable of the individual administering such massage.
4. A description of service(s) provided.
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11 5. Date and time of the massage.
The daily log shall be completed by the close of business each day. Such records shall be made available upon request based on good cause, for inspection by the Chief of Police, or his/her authorized designee and the City Administrator and his/her designee.
The information contained in such records shall be confidential. The daily log shall be retained on the premises of the massage establishment business office for period of not less than three (3) years.
E. It is the responsibility of the owner or manager to notify the city authority of any change of personnel, ownership, number of owners, remodel, move to another location, change in the use such as addition or removing spa services, and use of space, Notification shall be in writing to the city authority within ten (10) days of change in ownership, number of owners, and change in personnel. The owner or manager shall provide prior notice to the city authority for a move, change in type of service(s), and revised use of space. A revised floor plan shall be submitted noting the revised use of all floor space.
F. The owner or manager shall post the following in an open and conspicuous public place on the premises or as specified.
1. All original CAMTC certification documents and CAMTC photo identification cards in an open and conspicuous place inside the premises visible from the main entry door reception and waiting area of the massage establishment.
2. A list of services available and the cost of such services. The services shall be described in English and in other language(s) as may be convenient. No massage establishment owner or operator shall permit, and no person employed or retained by the massage establishment shall offer to perform any services or request or demand fees other than those posted at the place of business. A list of services and the cost of such services shall also be provided to clients prior to conducting an offsite massage.
3. The massage establishment business name and hours of operation shall be displayed in the reception area or other conspicuous public place within the massage establishment visible to clients.
4. The required notices of human trafficking information and telephone hotline numbers in English, Spanish, Cantonese, Vietnamese, and other appropriate languages as determined by the city per the requirements of California Civil Code Section 52.6.
The notices shall be posted in an area of the massage establishment that is readily accessible to massage therapists and all massage establishment personnel.
5. All operating rules including hours of operation, inspections and health and sanitation requirements in English, Cantonese, Vietnamese, and other appropriate language accessible to all staff.
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12 G. It is the massage establishment owner’s responsibility for ensuring that each individual administering massage complies with the Massage Therapy Act (B&P Code Section 4609(a)) provisions relating to sexual acts, including the prohibitions on: engaging in any form of sexual activity on the premises of a massage establishment.
17.16.xxx - Notification Requirements
A. An owner or manager shall report to the Chief of Police or his or her designee within ten (10) days any change with respect to the information contained in the business owner’s application.
B. An owner or manager shall report any of the following within 96 hours of the occurrence:
1. Arrests of any employees or owners of the registrant’s massage business for an offense other than a misdemeanor traffic offense.
2. Resignations, terminations, or transfers of massage therapists employed or under contract with the owner.
3. Any event involving the owner’s massage business, or a massage therapist employed or under contract therein that constitutes a violation of this chapter or state or federal law.
This provision requires reporting to the Chief of Police even if the massage business believes that the Chief of Police has or will receive the information from another source.
17.16.xxx - Application for Massage Establishment Business License A. The owner(s) of a massage establishment or his/her duly authorized agent shall complete the city application on forms provided by the City and be responsible for the completeness and accuracy of all required information. For purposes of this section, the "applicant" for the massage establishment business licenses shall refer to and include all owners of the massage establishment.
B. All applications for a massage establishment from any person looking to open a massage establishment shall include, at a minimum, the following information:
1. The massage establishment name, address, website, email, and telephone number.
2. The applicant’s full name, all other names the applicant uses or has used, the applicant’s residential address, telephone number and email address.
3. The name, residence address, email and telephone number of all owners or partners associated with the massage establishment business.
4. A color copy of the current CAMTC certification and CAMTC photo identification card for each, manager and massage therapist.
5. For all owners, a valid and current driver’s license and/or identification issued by a state or federal governmental agency or other photographic identification bearing a bona fide seal by a foreign government.
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13 6. A live scan and government issued photo identification card for all individuals that will be working for the massage establishment and are not required to be CAMTC certified under this Chapter.
7. A list of all persons administering massage who are working or will work, be employed, or under contract to provide massage services at the massage establishment.
8. The name and position of the owner or manager principally in charge of the massage establishment.
9. The owner’s signed statement that all the information contained in the application is true and correct, that all owners shall be responsible for the conduct of the business’s employees or independent contractors providing massage services; and acknowledging that failure to comply with the California Business and Professions Code sections 4600 et seq., and local, state, or federal law, or the provisions of this Chapter may result in revocation of the city business license.
10. The names and addresses of any and all previous establishments owned or operated by the applicant (includes all owners) for the past five (5) years.
11. Site plan drawn to scale of building location and street names, floor plan showing office or similar space to be utilized by the massage business or establishment, square footage, waiting areas, massage rooms, cubicles, or other space to be utilized for massage treatments, chair massage location if applicable, restroom facilities for clients and staff if separate, employee break rooms, laundry room, storage areas, closets, and relevant facilities.
12. Applicant’s business, occupation, and employment related to other massage establishments, including the name and address of any massage establishment or other like establishment owned or operated by any applicant.
13. History with any agency, board, city, county, territory, or state recognized certifying or permitting organization, and dates of issuance, denial, restriction, revocation, or suspension, and the reasons therefore, of any individual or establishment permit for the past 10 years.
14. The form of business under which the applicant will be conducting the massage establishment, i.e., corporation, general or limited partnership, limited liability Company, or other form. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each shareholder holding more than ten percent (5%) of the stock of the corporation. If the applicant is a general or limited partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one (1) or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply. If the applicant is a limited liability company, the application shall set forth the name and residence address of each of the members.
If one (1) or more of the members is a partnership, limited liability company, or 216
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14 corporation, the provisions of this section pertaining to a partnership, limited liability company, or corporate applicant shall apply, as applicable.
15. The name, address, and email of the owner of the real property upon, in, or from which the massage establishment is to be operated.
16. In the event the applicant is not the legal owner of the property, the application shall be accompanied by a copy of any written lease between the applicant and the property owner authorizing use of the premises for a massage establishment, or, alternatively, if there is no written lease, then a written, notarized acknowledgment from the property owner that the property owner has been advised that a massage establishment will be operated by the applicant upon, in, or from the property owner's property.
17. Application fee as established by the city's master fee schedule.
C. Where the applicant is not the owner of record, as shown on the latest county assessment roll, of the property upon, in, or from which the massage establishment is to be operated, then upon issuance of a business license, the city authority may send a written notice to the property owner advising of the issuance of the massage establishment business license and of the regulations applicable to the massage establishment and the property pursuant to this Chapter.
Any notices sent to the applicant pursuant to this Chapter at any time before or after issuance of the massage establishment business license may also be sent to the property owner.
D. A business license shall be denied if any of the following are found to be true:
1. The application is incomplete and/or required supplementary materials are not submitted on a timely basis including CAMTC certificates and photo identification card for the manager(s) and massage therapist(s).
2. The applicant, or any shareholder, partner, or member of the applicant, within ten (10) years immediately preceding the date of filing of the application, has had a certificate, permit or license to practice massage for compensation or to own and/or operate a massage establishment revoked or denied in any jurisdiction.
3. The applicant, or any shareholder, partner, or member of the applicant, has knowingly made a false, misleading, or fraudulent statement or omission of fact in his or her application or other materials submitted with the application.
4. The applicant, or any shareholder, partner, or member of the applicant, within ten (10) years immediately preceding the date of filing of the application, has been convicted in a court of competent jurisdiction of any offense that relates directly to the operation of a massage establishment whether as a massage establishment owner or manager, or as a person practicing massage for compensation, or as an employee of either; or has at any time been convicted in a court of competent jurisdiction of any felony the commission of which occurred on the premises of a massage establishment.
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15 5. The results of a live scan indicate the owner, manager, supervisor, or a person administering massage has convictions in a court of law including registration as a sex offender under the provisions of Section 290 of the Penal Code and/or Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), [or] 653.22 of the California Penal Code 4 or equivalent offenses under the laws of another jurisdiction, including any other State or Country.
6. If the business license was issued in error.
7. The applicant, including applicant as a corporation or partnership, or former employer of the applicant while the applicant was so employed, has been successfully prosecuted in an abatement proceeding under the California Red Light Abatement Act (Penal Code sections 11225 through 11325) or any other similar laws in another jurisdiction.
8. The applicant has been convicted of:
a. a prior offense which involves the sale of controlled substances specified in California Health and Safety Code sections 11054, 11056, 11057 or 11058, or equivalent offenses under the laws of another jurisdiction, including any other state or county;
b. any offense involving dishonesty, fraud, deceit or the use of force or violence upon another person in the last 10 years; or
c. any offense involving sexual misconduct;
d. for purposes of this section, a plea of "nolo contendere" may also serve as the basis for the denial of a Massage Establishment business license because the above listed underlying offenses bear a substantial relationship to the qualifications, functions or duties of a Massage Therapist or Establishment.
If the owner/applicant or any other person is dissatisfied with the action regarding an application for a massage establishment, they may appeal to the proper decision body as provided in Section 17.56.100.
17.16.xxx - Inspection
A. The Chief of Police or his/her designee shall have the right to enter any massage establishment during regular business hours, without a search or inspection warrant, to make reasonable inspection to ascertain whether there is compliance with the provisions of this Chapter.
B. It shall be unlawful for any owner, manager, massage therapist, or other staff to fail to allow such inspection officer access to the premises or hinder or attempt to delay such officer in any manner.
C. The massage establishment owner shall take immediate action to correct each violation noted by the inspector. A reinspection will be performed within thirty (30) days to ensure that each violation noted by the inspector has been corrected. 218
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16 D. All managers, supervisors, and massage therapists shall, during permissible hours of operation, have on their person or immediately available at the massage establishment a current CAMTC issued photo identification card. Other massage establishment staff not required to have a CAMATC certification shall have a valid driver’s license or other valid government issued photo identification readily available.
E. All managers and massage therapists shall provide his or her full name and certificate number upon the request of a member of the public, the council, or a member of law enforcement, or a local government agency charged with regulating massage or massage establishments, at the location where he or she is providing massage services for compensation.
17.16.xxx - Amendment Required for Personnel Changes
A. Whenever the information provided in the application for massage establishment business license on file with the city changes, for example by a change in employees, or independent contractors, number of owners, new massage establishment ownership, the owner or manager shall, within ten (10) business days after such change, notify the city authority to amend the massage establishment application of the massage establishment business license to reflect such change.
B. It shall be a violation of this Chapter for the operator to allow any person to perform massage therapy for compensation on the premises of a massage establishment unless and until an amended massage establishment business license has been issued by the city authority identifying that person as employed or retained by the massage establishment to practice massage therapy for compensation. A CAMTC certification document and CAMTC issued photo identification card of any new massage therapist shall be provided with the application to amend the massage establishment business license.
17.16.xxx - Amendment Required for Change of Business Name or Location Upon a change of location of a massage establishment, an application for an amended business license shall be filed with the city authority, and such application shall be granted, provided all applicable provisions of this code are complied with as to the new location, and any due and unpaid citations issued to the owner(s) pursuant to this Chapter are paid in full.
17.16.xxx - Sale or Transfer of Massage Establishment or Ownership Interest Therein.
A. Upon a sale or transfer of any massage establishment, or upon the sale or transfer of some or all the interest of any massage establishment owner to a person who is not already an owner of the massage establishment, a zoning clearance/certificate of occupancy application shall be required.
B. A business license for a sole provider or a massage establishment if altered in name, sold, transferred, or assigned by the owner, or attempted sale, transfer or assignment shall be deemed to constitute a voluntary surrender of such business license and shall thereafter be deemed terminated and void.
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17 17.16.xxx - Health and Safety Requirements
A. The following health and safety requirements shall be applicable to all massage establishments located within the city:
1. The massage establishment shall always be equipped with an adequate supply of clean sanitary towels, coverings, and linens, and all massage tables shall be covered with a waterproof pad and clean sheet or other clean covering for client. After each towel, covering, or linen has been used once, it shall be deposited in a closed receptacle and not used again until properly laundered and sanitized.
2. All bathrobes, bathing suits, and/or other garments that are provided for the use of clients shall be either fully disposable and not used by more than one (1) client or shall be laundered after each use pursuant to subsection (D)(1) of this section.
3. All massage therapy rooms or cubicles, wet and dry heat rooms, toilet rooms, shower compartments, hot tubs, and pools shall be thoroughly cleaned and disinfected at least once each business day or more often as needed, when the premises have been or will be open and such facilities in use. Bathtubs shall be thoroughly cleaned and disinfected after each use.
4. All liquids, creams, or other preparations used on or made available to clients shall be kept in clean and closed containers. All containers shall be correctly labeled to disclose their contents. When only a portion of a liquid, cream, or other preparation is to be used on or made available to a client, it shall be removed from the container in such a way as not to contaminate the remaining portion.
5. No invasive procedures shall be performed on any client. Invasive procedures include, but are not limited to:
a. Application of electricity that contracts the muscle; b. Penetration of the skin by metal needles;
c. Abrasion of the skin below the nonliving, epidermal layers; d. Removal of skin by means of any razor-edged instrument or other device or tool; e. Use of any needle-like instrument for the purpose of extracting skin blemishes; f. Colon cleansing; and
g. Other similar procedures.
6. Massage shall only be provided to a client upon a table or chair standard to the massage profession. No other furniture or similar item shall be used.
7. All combs, brushes, and/or other personal items of grooming or hygiene that are provided for the use of clients shall be either fully disposable and not used by more than one (1) client or shall be fully disinfected after each use. 220
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18 8. The premises shall have adequate equipment and disinfecting substances for disinfecting and sterilizing nondisposable instruments or other materials used in administering massages and be disinfected after each use on each patron.
9. Walls, ceilings, floor, pools, showers, bathtubs, water basins, toilets, wet and dry heat rooms, steam or vapor rooms and cabinets and all other facilities shall be maintained in good repair and in a clean and sanitary condition.
10. The cover pad used on massage tables shall consist of a durable, washable waterproof material.
11. All persons shall thoroughly wash their hands with soap and warm water or any equally effective cleansing agent immediately before providing massage therapy to a client.
B. Prohibited Conduct
1. No massage establishment owner, manager, employee, contractor, or support staff shall be under the influence of alcohol, recreational or illegal drugs at any time on the massage premises or when providing off premise massage.
2. No alcoholic beverages, recreational or illegal drugs shall be kept, possessed, consumed, sold, or distributed on the premises of a massage establishment and massage establishment personnel shall not allow a client or visitor to bring or consume an alcoholic beverage or controlled substance within or outside of a massage establishment.
3. A massage shall not be given, and no client shall be in the presence of any massage establishment staff unless the client's genitalia and, if a female client, the female client's breasts, are fully covered by an opaque, nontransparent covering.
4. No massage establishment owner, operator, employee, massage therapist or other staff shall, while on the premises of a massage establishment or while performing any onsite or mobile massage service, and while in the presence of any client, customer, employee, or visitor, expose his or her genitals, buttocks, or chest.
5. No storage or sale of condoms or spermicides shall be permitted within the massage establishment.
6. No person shall use or possess, nor shall there be, any storage of, any sexually oriented tool, equipment, or apparatus which are designed or marketed primarily for the stimulation of human genital organs or sadomasochistic activity.
7. No electrical, mechanical, or artificial device shall be used by any massage establishment owner, manager or staff for audio and/or video recording or for monitoring the performance of a massage, of the conversation or other sounds in the massage rooms, without the knowledge and written consent of the client.
8. The following attire requirements shall be applicable to all employees and any other persons who work permanently or temporarily on the premises, of a massage establishment within the city. No person shall dress in:
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19 a. Attire that is transparent, see-through, or substantially exposes the person's under garments;
b. Swim attire, if not providing a water-based massage modality approved by the CAMTC;
c. A manner that exposes the person's breasts, buttocks, or genitals; d. A manner that constitutes a violation of Section 314 of the California Penal Code. e. In a manner which has been deemed by CAMTC to constitute unprofessional attire.
9. Except for a client who is inside a massage therapy room for the purpose of receiving a massage, no clients or visitors shall be permitted in or on the massage establishment premises at any time who are less than fully clothed in outer garments of nontransparent material, or who display or expose themselves in underclothing or similar intimate apparel.
10. No Massage therapist, employee or other staff of a Massage Establishment shall place either his/her hand or hands upon, or touch with any part of his/her body, a sexual or genital part of any other person in the course of a massage or massage a sexual or genital part of any other person. Sexual and genital parts shall include the genitals, pubic area, anus or perineum of any person or the vulva or breast of a female. In the case of breast massage, female clients shall sign a written consent form, provided by the establishment and/or massage therapist prior to providing breast massage.
11. No Massage Therapist, or other employee of a Massage Establishment shall uncover and expose the sexual or genital parts, of a client while giving a massage, or before or after a massage.
C. Prohibited Advertising
1. No owner, supervisor, manager, massage therapist or support staff of a massage establishment shall place, publish, or distribute or allow or cause to be placed, published, or distributed any advertising matter that depicts any portion of the human body that would reasonably suggest to prospective clients or clients that any service is available other than those services described in this Chapter and posted on the premises.
2. No owner, massage therapist or other staff of a massage establishment shall employ language in the text of any sign or advertising material that would reasonably suggest to a prospective client that any service is available other than those services described in this Chapter and posted on the premises.
3. It shall be unlawful for any massage establishment or business or any independently employed certified massage practitioner or certified massage therapist to advertise through any media that is classified for “adults only” or other similar classification.
4. It shall be unlaw for any person who does not possess a valid and current CAMTC certificate to do any of the following within the city:
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20 a. Advertise or represent to the public in any manner that he or she is certified, registered, or licensed by a government agency a massage therapist; or b. Hold himself or herself out as or use the title of “certified massage therapist” or any other term such as “licensed” or “registered” that implies or suggests that he or she possesses a current and valid CAMTC certificate.
5. All independently employed certified massage therapists shall include in any advertising for massage services the name under which he or she is certified and his or her CAMTC certificate number.
17.16.xxx - Physical Facility Requirements.
Except as otherwise specifically provided in this Chapter, the following physical facility and building code requirements shall be applicable to all massage establishments located within the city:
A. One (1) main entry door shall be provided for client entry to the massage establishment, which shall open immediately to a well-lighted (without a dimmer switch) interior client reception and waiting area.
B. Signage shall not cover or block more than 25% of any window area and the view into the interior reception and waiting area shall not be obstructed, blurred, or unreasonably darkened with window tint, posters, photos, graphics, tall plants, tall furniture or fixtures, closed blinds, shades, or curtains.
C. Exterior sign. A noticeable and legible sign shall be posted at the main entrance that clearly identifies the establishment as a massage business and the businesses name visible to foot traffic and/or automobile traffic. An additional sign stating “Massage” or “Massage Establishment” need not be in addition to the primary business sign. The sign shall be in compliance with Title 17 of this Code.
D. The name of the massage business and hours of operation shall be posted on the exterior of the main entry door or adjacent wall or in a window closest to the main entry door that is easily visible to persons outside the establishment, E. All interior doors, but excluding individual dressing rooms and toilet rooms, shall be incapable of being locked and shall not be blocked to prevent opening. Draw drapes, curtain enclosures, or accordion-pleated closures in lieu of doors are acceptable on all inner massage therapy rooms or cubicles.
F. Minimum lighting equivalent to at least one (1) 40-watt light shall be provided in each massage therapy room or cubicle.
G. The massage establishment shall comply with all applicable state and local building standards as adopted in Title15 of this code.
H. All walls, ceilings, floors, and other physical facilities for the business must be in good repair and maintained in a clean and sanitary condition. 223
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21 I. All locker facilities that are provided for the use of client shall be fully secured for the protection of the client' valuables, and each client shall be given control of the key or other means of access.
17.16.xxx - Suspension or Revocation
The Chief of Police shall suspend or revoke a massage establishment business license for any violation of this Chapter and/or Section 4609 of the Massage Therapy Act following findings by the city attorney in accordance with Title 5 and Title 9 of the Oroville Municipal Code.
The CAMTC works with local jurisdictions and will inform the City of any disciplinary action pertaining to a certificate holder, which includes enforcing probation, suspending or revoking a certificate as indicated in Section 4610 of the Massage Therapy Act.
17.16.xxx - Applicability of other Ordinances.
Nothing contained in this chapter shall be constructed to exempt any person from complying with the provisions of any other applicable ordinance, rule, or regulation, or to exempt a massage establishment or independently certified massage therapists from provisions of any zoning, licensing, taxing, or other building ordinance, rule, or regulation.
17.16- xxx - Severability.
If any part or provision of this ordinance, or the application thereof to any person or circumstance, is held to be invalid, the remainder of the ordinance, including the application of such part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this ordinance are severable. 224
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1 City of Oroville
COMMUNITY DEVELOPMENT DEPARTMENT
1735 Montgomery Street
Oroville, CA 95965-4897
(530) 538-2430 FAX (530) 538-2426
www.cityoforoville.org
DISCUSSION
At present, the City of Oroville has not adopted regulations to adequately govern massage businesses. The proposed massage ordinance would provide direction, structure and minimum requirements for massage certification, sanitation, safety, and operational standards.
The city recognizes massage therapy as a healing art and the many benefits it provides to residents and visitors in Oroville. However, the city must also address the widespread use of PLANNING COMMISSION STAFF REPORT Thursday, February 24, 2022 RE: Adoption of a new City Ordinance Regulating Massage Establishments SUMMARY: The Oroville Planning Commission will review and consider recommending that the City Council adopt an ordinance relating to the regulation of massage establishments and persons providing massage in the City of Oroville.
RECOMMENDATION: Staff recommends the following actions:
1. Conduct a Public Hearing on the proposed Massage Ordinance; Review PROPOSED ZONING CHANGE ZC 22-01 WITH NEW REQUIREMENTS FOR
MASSAGE THERAPIST AND OWNER CERTIFICATIONS, AND FOR MASSAGE ESTABLISHMENTS AND OPERATIONS.
Adopt Resolution P2022-01 -- A RESOLUTION OF INTENTION OF THE OROVILLE
PLANNING COMMISSISON RECOMMENDING THAT THE CITY COUNCIL ADOPT ZONING CHANGE ZC 22-01 RELATINGTO THE CITY’S REGULATIONS OF MASSAGE
ESTABLISHMENTS AND INDIVIDUALS THAT PRACTIVE MASSAGE AND THERAPEUTIC BODY WORK.
APPLICANT: City of Oroville
LOCATION: City-Wide GENERAL PLAN: N/A
ZONING: N/A
FLOOD ZONE: N/A
ENVIRONMENTAL DETERMINATION: This Massage Ordinance is not a project under CEQA since it has no possibility of having a direct or indirect effect on the environment.
REPORT PREPARED BY:
___________________________
Connie Spade, Associate Planner
Community Development Department
REVIEWED BY:
___________________________
Dawn Nevers, Assistant Director
Community Development Department
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2 massage establishments as a front for sex trafficking and other criminal activity. Therefore, the proposed ordinance includes several factors to prevent and curtail illegal activities to ensure the health, safety, and welfare of the community and possibly the victims of sex trafficking.
The California Massage Therapy Council (CAMTC) has provided vital information and support in the development of the proposed massage ordinance. The Development Review Committee and the Director of Code Enforcement reviewed the ordinance at two meetings. Research regarding the current number of sole providers and massage establishments in the city and who has current business licenses are in Attachment B.
MASSAGE LAW IN CALIFORNIA
The California Massage Therapy Council (CAMTC) oversees and regulates “individuals” (verses establishments) and issues certificates and photo identification cards once an applicant has passed the State exam and a criminal background check. Certificates must be renewed every two years.
The Massage Therapy Act (“Act”) is a uniform statewide regulation enacted by the State Legislature in 2008, as well as subsequent amendments, in Business and Professions Code Section 4600 et seq. The Act created the California Massage Therapy Council (CAMTC) a non-profit organization formed to oversee and certify individual massage therapists and identify and approve legitimate massage schools.
The intent of the legislature in creating the Massage Therapy Act and the CAMTC was for local governments, law enforcement, nonprofit stakeholders, the massage industry, and massage professionals to work together to improve communication and share information to further increase the value of statewide certification, to collaborate in the implementation of the Massage Therapy Act, and to respect local control and the dignity of the profession of massage therapy.
The CAMTC assists local governments and law enforcement in meeting their duty to maintain the highest standards of conduct in massage establishments by vetting and disciplining certificate holders, ensure that schools approved by the council that are teaching massage and bodywork provide a high level of training and are not selling massage diplomas/certificates and ensure full compliance with, and execution of, the requirements of the Massage Therapy Act.
The CAMTC may discipline an owner or operator of a massage business or establishment who is certified or is an applicant for certification pursuant to this chapter for the conduct of all individuals providing massage for compensation on the business premises. CAMTC certification is voluntary, but many jurisdictions require certification to operate in their city or county.
KEY HEALTH AND SAFETY ELEMENTS OF THE MASSAGE ORDINANCE
1. Qualified Massage Therapists
Massage Establishments
Only massage therapists with a minimum of 500 hours of study from a school approved by the California Massage Therapy Council (CAMTC) can work at a massage establishment.
Sole Provider
A sole provider is a massage therapist or therapeutic bodyworker that individually owns their business and is the only worker. The proposed massage ordinance does not require existing or future sole providers to have 500 hours of study or to be CAMTC certified. Existing sole provider is required to provide proof of valid education to the city within 60 days of ordinance enactment.
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3 Future sole providers are required to have a minimum of 350 hours of study and practice from a CAMTC approved school but do not have to be CAMTC certified. The CAMTC websites list approved and non-approved schools. Many of the non-approved schools are still operating and were rejected (over half in the State) by CAMTC due to selling certificates and diplomas (teleconference Officer Rick McElroy of CAMTC on 1-10-22).
2. CAMTC Certification Required for Massage Establishments. Existing massage establishment managers and massage therapists that are not CAMTC certified are allowed 16 months from the date of massage ordinance enactment to submit a copy of their CAMTC certificate and photo identification card to the city. At 12 months each manager and massage therapist must provide proof to the city they completed 500 hours of study and CAMTC has accepted a complete application from them. Sixteen months includes the 3-4 months of CAMTC review. This grace period does not apply to massage establishments operating without a current city business license or other violation of the city municipal code.
3. Live Scan Background Check. Live scans are digital inkless images of fingerprints used for criminal background checks. All massage establishments and sole providers operating in the city prior to enactment of the massage ordinance (massage establishment owners, managers, persons administering massage, administrative and support staff) are required to submit to the Chief of Police results of a live scan (as requested by Officer Belser) within 60 days of enactment of the massage ordinance unless this has been done through a CAMTC certification. Current massage establishment owners and support staff (other than CAMTC certified managers and massage therapists) are not required to be CAMTC certified. However, future applicants (owners) and their support staff are required to have a live scan.
4. Massage Establishments - Owner History. Future applicants (all owners) are required to submit their work history, work location(s), and job title(s) for the previous five years and provide documents regarding any suspension or revocation of a massage establishment permit in any jurisdiction over the last 10 years.
5. Location Moratorium. No person shall provide massage, operate a massage establishment, or provide property for operation of a massage establishment at a particular location if:
a. Another massage establishment is or was operating at that location within the prior thirtysix (36) months and that massage establishment has been deemed by the city attorney or a court of competent jurisdiction to have violated any provision of this Chapter. b. Another massage establishment is or was operating at that location within the prior thirtysix (36) months and that massage business has outstanding unpaid fines or penalties, whether criminal, administrative, or civil.
6. Certain other facility and operational requirements are also included in the ordinance, including window treatments, cleanliness, prohibited conduct and advertising.
Any input, comments, or concerns from the Planning Commission will contribute to a clear, practical, effective, and enforceable massage ordinance for review by the City Council.
FISCAL IMPACT
None.
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4 ATTACHMENTS
A. Draft Massage Ordinance
B. Resolution No. P2022-01
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RESOLUTION NO. P2022-01
A RESOLUTION OF INTENTION OF THE OROVILLE PLANNING COMMISSION RECOMMENDING THAT THE CITY COUNCIL ADOPT ZONING CHANGE ZC 22-01 RELATING TO THE CITY’S REGULATIONS OF MASSAGE ESTABLISHMENTS AND INDIVIDUALS THAT PRACTICE MASSAGE AND THERAPUTIC BODYWORK.
WHEREAS, the City of Oroville staff recommends the addition of Section
17.16.240 to the City of Oroville Zoning Code relating to the City’s regulations of massage establishments and individuals that practice massage therapy recognized by the California Massage Therapy Council (CMTC); and
WHEREAS, the City Council finds that massage therapy is an integral component of the scope of services sought by residents and tourists when visiting the City of Oroville and recognizes massage is a therapeutic healing art; and WHEREAS, in 2015, the State restored the ability of towns and cities to impose local regulations on massage establishments and massage therapist with the new provisions of Assembly Bill 1147 and the massage ordinance will implement the City’s regulatory and land use authority, to ensure the public’s health, safety and welfare, reduce criminal activity, and enforce local standards for the operation of the business of massage therapy; and
WHEREAS, Government Code Section 51034 recognized the authority of cities to regulate massage businesses under Section 7 of Article XI of the California Constitution which reserves the right of cities to make and enforce within its limits all local, police, sanitary and other ordinances not in conflict with general laws; and WHEREAS, the Massage Ordinance mainly focuses on the regulation of massage establishments to deter illicit and illegal activity and ensure a high level of training of massage therapists, it also provides minimum requirements for individual sole proprietors, including a criminal background check and basic information regarding their business and qualifications; and
WHEREAS, the Massage Ordinance complies with the Massage Therapy Act, by staying in the regulatory confines as specified in the Act, while utilizing regulatory language of the Act for accuracy and consistency with State law; and WHEREAS, the Massage Ordinance was prepared with the support of the California Massage Therapy Council, staff review of other jurisdiction’s regulations, and review and comment from the City’s Code Enforcement Manager.
WHEREAS, at a duly noticed public hearing, the Planning Commission considered the comments and concerns of public agencies, property owners, and 105
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229
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members of the public who are potentially affected by the approval of the new code described herein and considered the City’s staff report regarding the project.
NOW, THEREFORE, BE IT RESOLVED BY THE OROVILLE PLANNING COMMISSION AS FOLLOWS:
SECTION 1. The Planning Commission determines:
A. That the proposed addition of Section 17.16.240, titled, “Massage Therapy” is consistent with the General Plan; and
B. That the proposed addition of Section 17.16.240 is consistent with other applicable provisions of the Municipal Code and compatible with the uses authorized in the applicable zoning districts for which the revisions are proposed.
SECTION 2. The Planning Commission hereby recommends that the City Council approve Zoning Change ZC 22-01 to the Oroville Municipal Code as set forth in Attachment A, a zoning modification to add the Massage Ordinance to the City of Oroville Municipal Code Zoning Ordinance.
*********
PASSED AND ADOPTED by the Planning Commission of the City of Oroville at a regular meeting on January 27, 2022, by the following vote:
AYES: Commissioner
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVE:
Jackie Glover, Assistant City Clerk Carl Durling, Chairperson 106
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MASSAGE ORDINANCE – REQUIREMENTS BY BUSINESS TYPE
* Deadline to Comply After Massage Ordinance Enactment. Note: CAMTC refers to the California Massage Therapy Council
City Application &
State (CAMTC)
Certificate
-Managers & TherapistsNote: State includes live scan.
(to Planning Dept.)
MASSAGE ESTABISHMENT
(Owner Hires Therapists/Staff)
SOLE PROVIDER
(Independents)
Live Scan
Owner(s),
Therapist(s),
Manager(s),
and Other Staff
* 60 days
(to Chief of Police)
Existing
City “General”
Application
* 60 Days
(to Planning Dept.)
Live Scan
(unless CAMTC
Certified)
*60 Days
(to Chief of Police)
Business
License
(to Planning &
Finance)
Existing
New
City Application
& CAMTC Certification or
Proof of Diploma and Transcripts Valid
Educationfrom a
CAMTC Approved School - 350 hours
(to Planning Dept.)
MASSAGE FRANCHISE
New
Proof of Education
*60 Days
(to Planning Dept.)
1. Application for Entitlements
with 2. Copies of Therapist’s
CAMTC Certificate and CAMTC Photo ID
(to Planning Department)
Live Scan
(unless CAMTC
Certified)
(to Chief of Police)
Live Scan
Owner(s)
(to Chief of
Police)
City
“General”
Application
Owner to
Complete
* 60 days
(to Planning Dept.)
Business License
(to Planning & Finance)
Proof of Application
Submittal to CAMTC
-Managers & Therapists-
* 12 Months
(to Planning Dept.)
CAMTC Certificate
-Managers &
TherapistsProvide City CAMTC
Certificate
* 16 Months
(to Planning Dept.)
Business
License
(to Planning &
Finance)
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RESOLUTION NO. 9041
A RESOLUTION OF THE OROVILLE CITY COUNCIL ADOPTING ZONING CHANGE ZC 22-01 AND ADOPTING AN ORDINANCE ADDING CHAPTER 17.16.240 OF THE
ZONING CODE OF THE CITY OF OROVILLE RELATING TO THE REGULATION OF MASSAGE ESTABLISHMENTS AND INDEPENDENT MASSAGE PROVIDERS.
WHEREAS, the City of Oroville staff recommends the addition of Section
17.16.240 to the City of Oroville Zoning Code relating to the City’s regulations of massage establishments and individuals that practice massage therapy recognized by the California Massage Therapy Council (CMTC); and
WHEREAS, the City Council finds that massage therapy is an integral component of the scope of services sought by residents and tourists when visiting the City of Oroville and recognizes massage is a therapeutic healing art; and WHEREAS, in 2015, the State restored the ability of towns and cities to impose local regulations on massage establishments and massage therapist with the new provisions of Assembly Bill 1147, and the massage ordinance will implement the City’s regulatory and land use authority to ensure the public’s health, safety and welfare, reduce criminal activity, and enforce local standards for the operation of the business of massage therapy; and
WHEREAS, Government Code Section 51034 recognized the authority of cities to regulate massage businesses under Section 7 of Article XI of the California Constitution which reserves the right of cities to make and enforce within its limits all local, police, sanitary and other ordinances not in conflict with general laws; and WHEREAS, the Massage Ordinance mainly focuses on the regulation of massage establishments to deter illicit and illegal activity and ensure a high level of training of massage therapists, and it also provides minimum requirements for individual sole proprietors, including a criminal background check and basic information regarding their business and qualifications; and
WHEREAS, the Massage Ordinance complies with the Massage Therapy Act, by staying in the regulatory confines as specified in the Act, while utilizing regulatory language of the Act for accuracy and consistency with State law; and WHEREAS, the Massage Ordinance was prepared with the support of the California Massage Therapy Council, staff review of other jurisdiction’s regulations, and review and comment from the City’s Code Enforcement Manager and Planning Commission.
WHEREAS, at a duly noticed public hearing, the City Council considered the comments and concerns of public agencies, property owners, and members of the 232
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public who are potentially affected by the approval of the new code described herein and considered the City’s staff report regarding the project.
NOW, THEREFORE, BE IT RESOLVED BY THE OROVILLE CITY COUNCIL AS FOLLOWS:
SECTION 1. The City Council determines:
A. That the proposed addition of Section 17.16.240, titled, “Massage Therapy” is consistent with the General Plan; and
B. That the proposed addition of Section 17.16.240 is consistent with other applicable provisions of the Municipal Code and compatible with the uses authorized in the applicable zoning districts for which the revisions are proposed.
SECTION 2. The City Council hereby approves Zoning Change ZC 22-01 to the Oroville Municipal Code as set forth in Attachment A, a zoning modification to add the Massage Ordinance to the City of Oroville Municipal Code.
*********
PASSED AND ADOPTED by the City Council of the City of Oroville at a regular meeting on April 5, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVE:
Jackie Glover, Assistant City Clerk Chuck Reynolds, Mayor 233
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