Agenda packet — Oroville City Council, April 7, 2026 (part 1 of 2)

April 07, 2026~4:00 PM Oroville City Council Meeting Agenda Page 1 of 8

OROVILLE CITY COUNCIL
Council Chambers
1735 Montgomery Street
Oroville, CA. 95965
April 07, 2026

REGULAR MEETING
CLOSED SESSION 4:00 PM
OPEN SESSION 4:30 PM
AGENDA

PUBLIC ACCESS AND PARTICIPATION
Please review the options below for ways to participate or observe the Council Meetings.

To Observe the Meeting:

1. Live Feed: https://www.youtube.com/channel/UCAoRW34swYl85UBfYqT7IbQ/

2. Zoom Link: https://zoom.us/j/96870319529?pwd=dW9kMGRZSFo5MFFNQk5wVDUzRkRrZz09

3. Zoom Application: Meeting ID: 968 7031 9529 Passcode: 67684553

4. By Phone: Telephone: 1-669-900-6833 Meeting ID: 968 7031 9529 Passcode: 67684553 To Provide Comment to the Council:

1. Attend the meeting in person

2. Send an Email by 2:00 PM the day before the meeting to [email protected]. All comments emailed will be provided to the Council Members for their consideration.

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 (1.5) 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: Chuck Reynolds, Scott Thomson, Tracy Johnstone, Janet Goodson, Shawn Webber, Vice Mayor Eric Smith, Mayor David Pittman
1 April 07, 2026~4:00 PM Oroville City Council Meeting Agenda Page 2 of 8

CLOSED SESSION
The City Council will hold a Closed Session on the following:

1. 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 –Three Cases.

2. The City Council will meet with the City Administrator and City Attorney for Conference With Real Property Negotiator pursuant to Gov. Code § 54956.8:

Assessor’s Parcel Numbers: 030-260-039
Agency Negotiator: Brian Ring, City Administrator
Negotiating Parties: County of Butte
Under Negotiation: Price and terms

OPEN SESSION

1. Announcement from Closed Session

2. Pledge of Allegiance

3. Corrections/Changes to the Agenda

4. Recusals

5. Adoption of Agenda

RULES OF DECORUM
The Oroville City Council welcomes the public to its meetings and encourages and appreciates public engagement. The City Council expects members of the public to act in a courteous, civil, and respectful manner, and not make personal, slanderous, or profane remarks to any member of the Council, staff, or the general public. The City Council will not tolerate loud, threatening, personal, or abusive language, or disorderly conduct, which disrupts, disturbs, or otherwise impedes the orderly conduct of City Council meetings. Violation of these rules of decorum will result in the meeting being recessed.

PRESENTATIONS AND PROCLAMATIONS
None this meeting.

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. 2 April 07, 2026~4:00 PM Oroville City Council Meeting Agenda Page 3 of 8

REPORTS / DISCUSSIONS

1. Council Announcements and Reports

2. Administration Reports

CONSENT CALENDAR
Consent calendar items 1 – 4 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. UPDATED JOB TITLE AND SALARY SCHEDULE FOR THE GIS SPECIALIST TO GIS

ANALYST II
The City Council shall consider updates to the job title and salary schedule for the former GIS Specialist position, changing it to GIS Analyst II.

ACTION(S) REQUESTED -

1. ADOPT THE UPDATED JOB TITLE AND SALARY SCHEDULE GIS ANALYST II (FORMERLY GIS SPECIALIST) POSITION; AND

2. ALLOCATE ONE GIS ANALYST II POSITION AND REMOVE THE FORMER GIS SPECIALIST ALLOCATION.

2. UPDATED JOB DESCRIPTION AND SALARY SCHEDULE FOR TRAFFIC SIGNAL

TECH/ELECTRICIAN TO ELECTRICAL MAINTENANCE SUPERVISOR
The City Council shall consider updates to the job description and salary schedules for the Electrical Maintenance Supervisor position.

ACTION(S) REQUESTED -

1. ADOPT THE UPDATED JOB DESCRIPTION AND SALARY SCHEDULE FOR THE

ELECTRICAL MAINTENANCE SUPERVISOR (FORMERLY TRAFFIC SIGNAL TECHNICIAN/ELECTRICIAN); AND

2. ALLOCATE ONE ELECTRICAL MAINTENANCE SUPERVISOR POSITION AND

REMOVE THE FORMER TRAFFIC SIGNAL TECHNICIAN/ELECTRICIAN ALLOCATION.
3 April 07, 2026~4:00 PM Oroville City Council Meeting Agenda Page 4 of 8

3. ACCEPT THE HOME INVESTMENT PARTNERSHIP GRANT STANDARD AGREEMENT 23- HOME-16207, FIRST TIME HOMEBUYER PROGRAM
The City Council shall consider accepting the 2023 HOME Investment Partnership Grant (HOME) allocation, Agreement No. 23-HOME 16207, in the amount of $500,000 for the First Time Homebuyer Program and to establish a budget for general administration, program activities and activity delivery.

ACTION(S) REQUESTED -

1. ACCEPT THE 2023 HOME INVESTMENT PARTNERSHIP PROGRAM STANDARD AGREEMENT NO. 23-HOME-16207; AND

2. APPROVE BUDGET ADJUSTMENT AS INDICATED IN THE FISCAL IMPACT OF THIS STAFF REPORTED DATED APRIL 7, 2026.

4. APPROVAL OF MARCH 17, 2026 CITY COUNCIL REGULAR MEETING MINUTES The City Council shall consider approving the March 17, 2026 City Council regular meeting minutes.

ACTION REQUESTED -
APPROVE THE DRAFTED REGULAR MEETING MINUTES FROM MARCH 17, 2026; AND AUTHORIZE THE MAYOR TO SIGN.

REGULAR BUSINESS

5. NEW PUBLIC FUNDS MONEY MARKET ACCOUNT
The City Council shall consider a change in bank investment accounts from Local Agency Investment Fund (LAIF), to a Public Funds Money Market account at Golden Valley bank.

ACTION REQUESTED -
APPROVE THE REPLACEMENT OF THE CITY’S LAIF INVESTMENT ACCOUNT WITH A NEW GOLDEN VALLEY PUBLIC FUNDS MONEY MARKET ACCOUNT.

6. STREET CLOSURE PROCEDURES
The City Council shall consider alternatives for safely securing streets for various public events.

ACTION REQUESTED -
PROVIDE DIRECTION TO STAFF.
4 April 07, 2026~4:00 PM Oroville City Council Meeting Agenda Page 5 of 8

7. ANNEXATION FEASIBILITY STUDY UPDATE AND PROPOSED ANNEXATION OF THE

LINCOLN OPHIR STUDY AREA
The City Council shall receive an update on the feasibility study conducted on three potential areas within the County and provide direction to staff – including authorizing staff to pursue annexation of the Lincoln Ophir Annexation Area, as tentatively defined.

ACTION(S) REQUESTED -

1. DISCUSS THE PROPOSED LINCOLN OPHIR ANNEXATION AND MODIFY IF DESIRED; AND

2. DIRECT STAFF TO CONTINUE THE ANNEXATION PROCESS AND LATER BRING

BACK FOR APPROVAL A MORE DEFINED BOUNDARY MAP AND COMPLETED ANNEXATION DOCUMENTS FOR LINCOLN OPHIR.

8. AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES (AHSC) GRANT

APPLICATION FOR NELSON POINT APARTMENTS
The City Council shall consider approving a letter of support for the application of an Affordable Housing and Sustainable Communities (AHSC) grant application for the development of Nelson Point Apartments.

ACTION REQUESTED -

APPROVE THE LETTER OF SUPPORT FOR THE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES (AHSC).

9. ELECTED OFFICIALS’ TRANSPARENCY AND ACCOUNTABILITY ORDINANCE The City Council shall consider adoption of transparency and accountability ordinance for elected officials.

ACTION REQUESTED -
ADOPT ORDINANCE NO. 1894.
5 April 07, 2026~4:00 PM Oroville City Council Meeting Agenda Page 6 of 8

10. AGREEMENT WITH NEWGEN STRAGEGY SOLUTIONS TO CONDUCT A PRELIMINARY

POWER SUPPLY FEASIBILITY ANALYSIS
The City is evaluating the potential development of a limited municipal electric utility (MEU) to serve select industrial customers, as well as the potential formation of a City-operated Community Choice Aggregator (CCA). The attached scope of work submitted by NewGen Strategy Solutions, outlines a preliminary financial feasibility analysis to assess both options, including a comparison to continued service under Pacific Gas & Electric (PG&E) or Pioneer Community Energy.

The proposed study will provide the City with data-driven insight into costs, potential savings, operational considerations, and overall feasibility before advancing further policy or infrastructure decisions.

ACTION REQUESTED -

APPROVE AN AGREEMENT WITH NEWGEN STRATEGY SOLUTIONS FOR A

PRELIMINARY POWER SUPPLY FEASIBILITY ANALYSIS AND AUTHORIZE THE MAYOR TO EXECUTE AN AGREEMENT WITH THE CONSULTANT IN AN AMOUNT NOT-TOEXCEED $40,000.00.

11. ADDITIONAL ROAD FUNDING FOR FISCAL YEAR 2025/26
The City Council shall consider appropriating up to $200,000 in additional funding for road projects in Fiscal year 2025/26.

ACTION REQUESTED -
PROVIDE DIRECTION TO STAFF.

12. SELECTION OF THE 2026 SAMUEL J. NORRIS AWARD FOR EXCELLENCE RECIPIENT The City Council shall consider the selection of a recipient for the 2026 Samuel J. Norris Award for Excellence.

ACTION REQUESTED -
SELECT A RECIPIENT FOR THE 2026 SAMUEL J. NORRIS AWARD FOR EXCELLENCE TO BE PRESENTED AT THE STATE OF THE CITY ADDRESS ON APRIL 28, 2026, AT THE OROVILLE STATE THEATRE.
6 April 07, 2026~4:00 PM Oroville City Council Meeting Agenda Page 7 of 8

PUBLIC HEARINGS
The Public Hearing Procedure is as follows:
- Mayor or Chairperson opens the public hearing and staff will present the item and answer Council questions.
- 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 and then the Council will debate and take action - Those wishing to speak at the public hearings below, but unable to attend before 5pm, may request that the council consider holding the public hearing after 5pm by emailing [email protected] or calling 530-538-2535. Please submit request 24 hours before the meeting.
- Individuals may email comments for council consideration to [email protected]

13. 5:00PM - FIRST READING OF ORDINANCE NO. 1895 WITH AD HOC CITIZEN BUSINESS

ADVOCACY COMMITTEE RECOMMENDATIONS REGARDING THE STREAMLINING OF

CERTAIN BUSINESS LICENSE AND PLANNING PERMITS TO REDUCE THE COST AND

PROCESSING TIME FOR APPLICANTS
The City Council shall conduct a public hearing and consider the Zoning Change recommendations of the Citizen Ad Hoc Business Advocacy Committee as approved by the Planning Commission.

ACTION(S) REQUESTED -

1. CONDUCT A PUBLIC HEARING ON THE AD HOC COMMITTEE’S
RECOMMENDATIONS; AND

2. WAIVE THE FIRST READING OF ORDINANCE NO. 1895, AND INTRODUCE BY TITLE ONLY; AND

3. ADOPT A CATEGORICAL EXEMPTION FOR AMENDMENTS TO VARIOUS MUNICIPAL CODE SECTIONS; AND

4. ADOPT RESOLUTION NO. 9449 — FIRST READING OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OROVILLE AMENDING SECTIONS 17.04.060,

17.16.120, 17.16.180, AND TABLES 17.34.020-1, 17.28.010-1, 17.32.010-1, AND

17.36.010-1.

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. 7 April 07, 2026~4:00 PM Oroville City Council Meeting Agenda Page 8 of 8

FUTURE AGENDA ITEMS / CORRESPONDENCE

1. Future Agenda Items

2. Correspondence
i. Open Letter For The Record - Doug Dirks
ii. Jeff McClure Public Comment/Correspondence Received March 23, 2026 iii. OCESD-Public Hearing Notice-Implementation Proposed Developer Fees

ADJOURN THE MEETING
The meeting will be adjourned. A regular meeting of the Oroville City Council will be held on April 21, 2026 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. 8 CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN AND CITY COUNCIL MEMBERS
FROM: MEGAN WILLIAMS, HR ANALYST
RE: UPDATED JOB TITLE AND SALARY SCHEDULE FOR THE GIS

SPECIALIST TO GIS ANALYST II
DATE: APRIL 7, 2026

SUMMARY
The City Council shall consider updates to the job title and salary schedule for the former GIS Specialist position, changing it to GIS Analyst II.

DISCUSSION
The City Council will consider adopting the attached updated job title and salary schedule for the GIS Specialist position, changing it to GIS Analyst II. After a number of failed recruitments, staff performed a review of neighboring agencies and found that the duties of our GIS Specialist align more closely with those of a GIS Analyst II. Updating the title and salary schedule will better reflect the responsibilities of this position and improve the City's competitiveness in attracting qualified candidates.

These updates reflect revisions to the former GIS Specialist classification. The proposed changes will better align the position with current operational needs, industry standards, and labor market competitiveness, supporting more effective recruitment and retention efforts.

A B C D E F G H
$70,250.11 $73,762.62 $77,450.75 $81,323.28 $85,389.45 $89,658.92 $94,141.87 $98,848.96

FISCAL IMPACT
An increase of $10,183.60, which can be absorbed in existing budget. 9 Item 1.

ACTION(S) REQUESTED -

1. ADOPT THE UPDATED JOB TITLE AND SALARY SCHEDULE GIS ANALYST II (FORMERLY GIS SPECIALIST) POSITION; AND

2. ALLOCATE ONE GIS ANALYST II POSITION AND REMOVE THE FORMER GIS SPECIALIST ALLOCATION.

ATTACHMENTS
GIS Analyst II job description (clean)
Former GIS Specialist job description with recommended changes 10 Item 1.

CITY OF OROVILLE
Approved by Council: 06/17/25

GEOGRAPHIC INFORMATION SYSTEMS (GIS) SPECIALIST GIS ANALYST II

DEFINITION
Under general supervision, supports the development, maintenance, and integration of the City’s Geographic Information System. This role involves geospatial data management, custom application development, database and server administration, map production, field data collection, and support for civil engineering projects. This position also contributes to planning, community development, code enforcement, and public safety.

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from the Information Technology Manager or designee.

May provide technical guidance to other staff and interns.

EXAMPLES OF ESSENTIAL FUNCTIONS - Essential functions may include, but are not limited to, the following:
 Administers and maintains GIS software, servers, databases, and web-based mapping applications.
 Configure and manage GIS workstations and enterprise GIS environments (e.g., ESRI ArcGIS Enterprise, ArcGIS Pro, ArcGIS Online).
 Design and maintain the City’s geospatial database architecture, including versioned enterprise geodatabases (SDE) on Microsoft SQL Server.  Develop custom GIS tools, dashboards, and web applications using Python, JavaScript, ArcGIS API for JavaScript, or related technologies.  Perform data analysis and create high-quality maps and visualizations to support decision-making across City departments.
 Assist with GPS and mobile data collection workflows using tools such as Field Maps and Survey123.
 Support engineering functions including the preparation of plans, specifications, and cost estimates for capital improvement projects.
 Assist in the design and inspection of civil infrastructure such as streets, sewer, stormwater, and related systems.
 Review and analyze survey, topographic, and hydrological data.  Collaborate with IT staff and GIS Coordinator to ensure data integrity, system security, and service reliability.
 Participate in citywide GIS initiatives and working groups.  Provide user support and training to City staff on GIS tools and workflows.  Perform related duties as assigned.

MINIMUM QUALIFICATIONS
Knowledge of:
 Principles and practices of GIS, cartography, and geospatial data management.  Enterprise GIS platforms (e.g., ArcGIS Pro, ArcGIS Online, ArcGIS Enterprise).  Relational database management and SQL Server administration. 11 Item 1.

CITY OF OROVILLE
Approved by Council: 06/17/25
 Programming and scripting (e.g., Python, JavaScript, SQL).  Civil engineering basics and public infrastructure design standards.  Environmental and regulatory considerations for public projects.

AutoCAD or similar design/drafting software.

Ability to:
 Ability to interact with the public while providing proper customer service.  Ability to interact with other divisions or section employees to obtain information necessary for design and project specifications.
 Ability to prepare environmental impact reports.
 Ability to calculate material-cost estimates.
 Ability to read, write and comprehend directions in English.  Ability to develop necessary skills from on-the-job training and meet standards of performance for the classification by the end of the probationary period.  Ability to work with ITC staff to provide technical support and the GIS Coordinator to develop comprehensive GIS and database architecture design from concept to functional analysis, design, coding, and performance through testing and production of the system
 Ability to effectively document application system phases (analysis, design, code, test, implementation and maintenance)
 Ability to analyze, document, and diagram current and future workflow processes for applications systems.

Experience:

At least two (2) years of experience working with ESRI GIS software and tools in a professional setting.

Experience with Microsoft SQL Server, ArcGIS Enterprise, and Python scripting preferred.

Education:

Bachelor’s degree in GIS, Geography, Civil Engineering, Computer Science, or a closely related field and two (2) years of experience.

OR
An Associate/Technical Degree in a related field with four (4) years of experience.

Substitution:

An equivalent combination of experience, education and/or training may substitute for the listed minimum requirements. See above.

Additional Requirements:

Possession and maintenance of a valid California driver’s license.

TYPICAL WORKING CONDITIONS
Work typically is performed in a normal office environment. Occasionally work is performed outdoors, possibly exposing employee to traffic and construction hazards, 12 Item 1.

CITY OF OROVILLE
Approved by Council: 06/17/25
adverse weather conditions, wetness and humidity, above-average noise, air contaminants, fumes and dust, and uneven terrain.

TYPICAL PHYSICAL REQUIREMENTS
Requires the ability to sit at desk for long periods of time and intermittently walk, stand, stoop, kneel, crouch and reach while performing office and field inspection duties; lift and/or move objects weighing up to 25 pounds; use hands to finger, handle or feel objects, tools, or controls. Must be able to maintain effective audio-visual discrimination and perception needed for making observations, communicating with others, reading and writing, and operating office equipment. Must be able to use a telephone to communicate verbally and a keyboard to communicate through written means, to review information and enter/retrieve data, to see and read characters on a computer screen.

This class specification lists the major duties and requirements of the job and is not all-inclusive. Incumbents may be expected to perform job-related duties other than those contained in this document.
13 Item 1.

CITY OF OROVILLE
Approved by Council: 04/07/26

GIS ANALYST II

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from the Information Technology Manager or designee.

May provide technical guidance to other staff and interns.

CITY OF OROVILLE
Approved by Council: 04/07/26
 Civil engineering basics and public infrastructure design standards.  Environmental and regulatory considerations for public projects.

AutoCAD or similar design/drafting software.

Experience:

At least two (2) years of experience working with ESRI GIS software and tools in a professional setting.

Experience with Microsoft SQL Server, ArcGIS Enterprise, and Python scripting preferred.

Education:

Bachelor’s degree in GIS, Geography, Civil Engineering, Computer Science, or a closely related field and two (2) years of experience.

OR
An Associate/Technical Degree in a related field with four (4) years of experience.

Substitution:

An equivalent combination of experience, education and/or training may substitute for the listed minimum requirements. See above.

Additional Requirements:

Possession and maintenance of a valid California driver’s license.

CITY OF OROVILLE
Approved by Council: 04/07/26
adverse weather conditions, wetness and humidity, above-average noise, air contaminants, fumes and dust, and uneven terrain.

Page 1 ends

CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN AND CITY COUNCIL MEMBERS
FROM: MEGAN WILLIAMS, HR ANALYST
RE: UPDATED JOB DESCRIPTION AND SALARY SCHEDULE FOR

TRAFFIC SIGNAL TECH/ELECTRICIAN TO ELECTRICAL

MAINTENANCE SUPERVISOR
DATE: APRIL 7, 2026

SUMMARY
The City Council shall consider updates to the job description and salary schedules for the Electrical Maintenance Supervisor position.

DISCUSSION
The City Council will consider adopting the attached updated job description and salary schedule for the Traffic Signal Technician/Electrician position. After a number of failed recruitments, staff performed a market study with neighboring agencies and determined that the duties and requirements of this position are more closely aligned with those of an Electrician Maintenance Supervisor. Updating the job description, title, and salary schedule will strengthen our ability to attract qualified candidates and remain competitive with surrounding agencies.

These updates reflect revisions to the former Traffic Signal Technician/Electrician classification.

The proposed changes will better align the position with current operational needs, industry standards, and labor market competitiveness, supporting more effective recruitment and retention efforts.

A B C D E F G H
$80,003.37 $84,003.53 $88,203.71 $92,613.90 $97,244.59 $102,106.82 $107,212.16 $112,572.77

FISCAL IMPACT
An increase of $25,534.90, which can be absorbed in existing budget. 17 Item 2.

Page 2 ends

ACTION(S) REQUESTED

1. ADOPT THE UPDATED JOB DESCRIPTION AND SALARY SCHEDULE FOR THE

ELECTRICAL MAINTENANCE SUPERVISOR (FORMERLY TRAFFIC SIGNAL TECHNICIAN/ELECTRICIAN); AND

2. ALLOCATE ONE ELECTRICAL MAINTENANCE SUPERVISOR POSITION AND

REMOVE THE FORMER TRAFFIC SIGNAL TECHNICIAN/ELECTRICIAN ALLOCATION.

ATTACHMENTS
Electrical Maintenance Supervisor job description (clean) Former Traffic Signal Technician/Electrician job descriptions with recommended changes.

18 Item 2.

CITY OF OROVILLE
Council Approved:

ELECTRICAL MAINTENANCE SUPERVISOR

DEFINITION
Performs journey level electrical work required to maintain, install, repair, or alter electrical systems found in City buildings, streetlights, and facilities. Performs a full range of skilled and complex tasks to ensure that electrically controlled and operated equipment and systems function properly. This includes coordinating and participating in skilled technical work in the installation, repair, maintenance, and upgrade of traffic signal devices, electrical construction, installation, maintenance and repair of municipal facilities, public buildings, traffic lights and street lighting systems.

SUPERVISION RECEIVED AND EXERCISED
Receives general direction from the Public Works Manager - Sewer Exercises supervision and training over Electrician’s Assistant or other helpers.

EXAMPLES OF ESSENTIAL FUNCTIONS - Essential functions may include, but are not limited to, the following:

Perform journey level skilled electrical installation, maintenance, and repair work involving municipal facilities, buildings, and street lighting systems.

Perform preventive maintenance on street lighting, electrical systems, motors, and equipment, which includes the safe operation of an aerial bucket truck and large construction equipment.

Administer and coordinate traffic signals and street lighting program.

Inspect newly installed electrical equipment and lighting to ensure safe operation as well as code compliance.

Inspect, diagnose malfunctions of, and make field repairs to traffic signal controls and auxiliary equipment.

Maintain accurate records of work performed, materials used, and associated costs.

Repair or replace defective or worn electrical parts, components, and controlling software in electrical systems and devices, electrical motors, generators, pumps, controllers, heating and air conditioners, lighting systems, and other fixtures and equipment.

Perform associated work including digging, trenching, occasional concrete finishing and removal, and lifting electrical equipment, conduit, and pipe.

Troubleshoot malfunctioning equipment to determine the nature of the problem.

Repair electronic components of electrical equipment as required for continued operation.

Work with high voltage electrical equipment.
19 Item 2.

CITY OF OROVILLE
Council Approved:

Make emergency electrical repairs to traffic signals, street lighting, generators, parking garages and pumps, as required.

Repair knockdowns to traffic signal equipment including poles, signal heads, and hardware.

Make signal timing changes as directed and ensure that proper timing is restored after repairs have been made.

Install all or part of signalized intersections.

Investigate complaints and reports of signal malfunctions and perform adjustment or repair as required to solve the problem.

Repair, replace, or modify signal head components, microprocessors, relays, switches, fuses, and cabinet parts.

Install loops and vehicle detectors.

Inspect and test equipment installed by contractors.

Make shop repairs of electronic components, small and large electrical appliances.

Design and construct specialized electronic test equipment.

Make field and bench repairs to traffic control and street lighting equipment including, but not limited to, electronics, poles, luminaries, wiring signal heads, and all related hardware and software required to operate a traffic signal and street lighting division.

Draw and read electrical and electronic blueprints and diagrams.

Lift station electrical maintenance in TESCO panels and electrical transfer switches Perform related duties as assigned.

MINIMUM QUALIFICATIONS
Knowledge of:

Methods, materials, tools, equipment, and procedures used in the installation, maintenance, repair, replacement, and alteration of electrical equipment and upgrades of traffic signal control devices.

Components and parts used in modern electrical wiring systems such as pumps, motors, controls, and lighting.

Basic principles and components found in electronic control and micro processing devices.

Occupational hazards and safety precautions necessary in electrical work. In addition, a basic understanding of overhead line construction, Public Utilities Commission (PUC) 20 Item 2.

CITY OF OROVILLE
Council Approved:

Order #95, National Electric Code and Federal and State Occupational Safety and Health Administration (OSHA) standards is required.

Methods, materials, tools, equipment, and practices used in the installation, maintenance, repair, and upgrade of traffic signal control devices.

Electronics and electricity as related to traffic signals and associated equipment.

Standard electronic test equipment.

Ability to:

Work independently and make sound decisions regarding work methods and tools.

Read, interpret, apply, and enforce applicable codes and standards as related to electrical installation.

Apply State, Federal, and local safety regulations and codes to municipal electrical work.

Work safely both independently and as a crew member on high voltages up to 600 volts A.C.

Work safely near energized PG&E primary and secondary lines with voltages up to 4160 A.C.

Understand and interpret written and oral instructions.

Comprehend and make inferences from written material.

Read and interpret blueprints, wiring diagrams, and work orders.

Prepare and maintain records, reports, and work estimates.

Communicate effectively with those contacted in the course of work.

Learn through oral instruction in an on the job setting.

Program, replace, maintain, and repair traffic signal control devices.

Use and care for tools and equipment used in programming, replacing, maintaining, and repairing electronic and electrical devices.

Work in emergency and hazardous situations.

Draw or utilize maps or diagrams of intersections that illustrate direction of signals or equipment placement.

Safely change traffic signal light bulbs, replace traffic signal equipment, and adjust traffic signal heads.

Prepare cost estimates for projected intersection upgrades.

Perform work at heights and in emergency and hazardous situations. 21 Item 2.

CITY OF OROVILLE
Council Approved:

Education:

Graduation from high school or GED equivalent.

Experience:

Sufficient experience as a journey level electrician in a municipal, commercial, or industrial environment and installation, maintenance, repair, and upgrade of electrical and electronic traffic control devices to demonstrate possession of the knowledge and abilities listed above.

Additional Requirements:

Possession of a Level I International Municipal Signal Association (IMSA) certification in traffic signal maintenance must be obtained within the first 12 months of employment.

Possession of a Level II International Municipal Signal Association (IMSA) certification in traffic signal maintenance must be obtained within 18 months of employment.

Possession and maintenance of a Certified Journeyman Electrician Certificate.

California Class A commercial driver's license must be obtained within the first 12 months of employment.

TYPICAL WORKING CONDITIONS
Incumbents in this classification are required to use common hand tools such as hammers, saws, and screw drivers; make precise arm-hand positioning movements when working with electrical hand tools, for example, when using a socket wrench on overhead luminaries; climb ladders or steps to reach objects; make continuous, repetitive arm-hand movements when working with screwdrivers or tightening or loosening lamps and photocells; coordinate movement of more than one limb simultaneously and make fine, highly controlled muscular movements while operating equipment used to set such items as street light poles; bend and stoop repeatedly or continually over time when working in electrical panels or picking up cones; work in a variety of weather conditions with exposure when working on street light system; observe or monitor such items as electrical meters and truck hydraulic lifts for compliance with safety standards; make skillful, controlled manipulations of small objects when connecting bolts on breakers to live panels or working with fuses; use arms above shoulder level when installing overhead conduit or fixtures; work in small, cramped areas when working in a bucket or with panels that are difficult to access; work while standing on extension ladders or lift trucks at heights greater than 25 feet, such as when servicing or repairing street lights; hear alarms and other auditory warning devices such as vehicle back-up bells or electrical panel audible alarms; use stomach and lower back muscles to support the body when lifting heavy electrical equipment during installation, or when climbing in and out of the truck cab or bucket; walk over rough, uneven or rocky surfaces to access work sites in City parks; move electrical components or fixtures weighing up to 50 pounds short distances; discriminate among 22 Item 2.

CITY OF OROVILLE
Council Approved:
colors or match colors of electrical wires; communicate orally both face to face and using a telephone when receiving or communicating status of work assignments; and sit for extended periods of time with the ability to move about at will when working on ground level electrical facilities.

This class specification lists the major duties and requirements of the job and is not allinclusive. Incumbents may be expected to perform job-related duties other than those contained in this document.
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CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN AND COUNCIL MEMBERS
FROM: AMY BERGSTRAND, DIRECTOR

BUSINESS ASSISTANCE AND HOUSING DEVELOPMENT
RE: ACCEPT THE HOME INVESTMENT PARTNERSHIP GRANT STANDARD AGREEMENT 23-HOME-16207, FIRST TIME HOMEBUYER PROGRAM
DATE: APRIL 7, 2026

SUMMARY
The City Council shall consider accepting the 2023 HOME Investment Partnership Grant (HOME) allocation, Agreement No. 23-HOME 16207, in the amount of $500,000 for the First Time Homebuyer Program and to establish a budget for general administration, program activities and activity delivery.

In addition, the Council may consider approving a budget adjustment to the City/Housing Revolving Loan Fund (RLF) to supplement administration for the 2023 HOME grant, in the amount of $50,000.

DISCUSSION
Following is the proposed budget line-item budget for the above referenced grant:
2023-HOME-16207

1. General Administration
Fund: 221
Project code: 23HOMEGA
Revenues
Object No. Account Name Amount
4570 HOME Federal Grant Revenue 12,500.00
4750 City/Housing RLF 50,000.00
29 Item 3.
62,500.00
Expenses
Object No. Account Name Amount
5100-5610 Direct Labor 46,000.00
6000 Advertising 1,500.00
6270 Office Expense 3,000.00
6340 Other Supplies 3,000.00
6360 Outside Services 6,500.00
6470 Telecommunications 2,500.00
62,500.00

2. Activity/Activity Delivery FTHB
Fund: 221
Project Code: 23HOMEAD
Revenues
Object No. Account Name Amount
4570 HOME Federal Grant Revenue 487,500.00
Expenses
Object No. Account Name Amount
5100-5610 Direct Labor 26,887.00
6360 Outside Services 3,000.00
7010 Housing Loans 455,813.00
485,700.00

ACTION(S) REQUESTED -

1. ACCEPT THE 2023 HOME INVESTMENT PARTNERSHIP PROGRAM
STANDARD AGREEMENT NO. 23-HOME-16207.

2. APPROVE BUDGET ADJUSTMENT AS INDICATED IN THE FISCAL IMPACT OF THIS STAFF REPORTED DATED APRIL 7, 2026.
30 Item 3.

ATTACHMENTS
Award Letter
31 Item 3.

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF FEDERAL FINANCIAL ASSISTANCE
651 BANNON STREET, 8th FLOOR, SACRAMENTO, CA 95811
P. O. BOX 952054, SACRAMENTO, CA 94252-2054
(916) 263-2771
www.hcd.ca.gov
November 14, 2024
Brian Ring, City Adminstrator
City of Oroville
1735 Montgomery Street,
Oroville, CA 95965
Dear Brian Ring:

RE: Award Announcement – HOME Program Activities
2022-23 Notice of Funding Availability
The California Department of Housing and Community Development (Department) is pleased to announce that the City of Oroville (Awardee) have been awarded a First Time Home Buyer HOME Program award in the amount of $500,000. This letter constitutes notice of the designation of HOME program funds for the City of Oroville for use in the county of Butte.

Program Type Number of Units Activity Funds Admin Funds Total Award FTHB 5 $487,500 $12,500 $500,000
Awardees will be able to draw down funds when the Standard Agreement is fully executed, and any general and special conditions have been cleared in writing. In addition, expenditures may not be incurred prior to the execution of the Standard Agreement.

The Department intends to issue a Standard Agreement within 90 days of receipt of the documentation required to execute this contract. A HOME Program representative will be in communication with you to discuss and confirm any documents needed.

Congratulations on your successful Application. For further information, please contact Kelly Underwood, HOME Program Manager at (916) 398-6773 or [email protected].

This award is under a media and public announcement embargo until publicly released by the California Department of Housing and Community Development (Department) or otherwise notified by Department staff. For any questions regarding the embargo, please email the Legislative Division at [email protected] or by phone at (916) 263-6206.

Sincerely,
Jenny Cho
Deputy Director
Division of Federal Financial Assistance
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March 17, 2026~4:00 PM Oroville City Council Meeting Minutes Page 1 of 5

OROVILLE CITY COUNCIL
Council Chambers
1735 Montgomery Street
Oroville, CA. 95965
March 17, 2026

REGULAR MEETING

MINUTES

CALL TO ORDER / ROLL CALL
Council Members: Chuck Reynolds, Scott Thomson, Tracy Johnstone, Janet Goodson, Shawn Webber, Vice Mayor Eric Smith, Mayor David Pittman

CLOSED SESSION
The City Council held a Closed Session on the following:

Anticipated Litigation: The City Council conferred with the City Administrator and City Attorney regarding potential initiation of litigation pursuant to Cal. Gov. Code § 54956.9(c): 1 Case Pursuant to Government Code section 54957.6, the Council met with Labor Negotiators and City Attorney to discuss labor negotiations for the following represented groups: All Units.

OPEN SESSION

1. Announcement from Closed Session – Direction given to staff; no action taken.

2. Pledge of Allegiance – Led by Vice Mayor Smith

3. Corrections/Changes to the Agenda – None.

4. Recusals – None.

5. Adoption of Agenda –
Motioned by: Council Member Goodson Seconded by: Vice Mayor Smith AYES: Council Member(s) Reynolds, Thomson, Johnstone, Goodson, Webber, Vice Mayor Smith, Mayor Pittman
NOES: None
ABSTAINED: None
ABSENT: None

PRESENTATIONS AND PROCLAMATIONS
None this meeting.
34 Item 4.

March 17, 2026~4:00 PM Oroville City Council Meeting Minutes Page 2 of 5 PUBLIC COMMUNICATION – HEARING OF NON-AGENDA ITEMS
The following member(s) of the public submitted public comment on this item: Rhonda Magnusson, Melva and Tom, Eric Shanke, The CameraMan, Palmer Horne, and Brenda Narayan.

REPORTS / DISCUSSIONS

1. Council Announcements and Reports
Vice Mayor Smith: Reminded the public that the Arbor Day Festival will be at the Convention Center this weekend. The City of Oroville, CA has been named Tree City USA for 46 years and counting.

Council Member Johnstone: Stated the Art Commission approved a Project for the Rainforest Art Project relating to Hewitt Park.

Mayor Pittman: Stated the SCOR plant is progressing well and the Ruddy Creek pump station is being worked on. He also stated there is a transportation study is being done regarding those who commute between Chico and Oroville. Lastly, he spoke on a League of Cities meeting he attended.

2. Administration Reports
Kayla Reaster, Assistant City Clerk: Reminded the Council that Form 700s are due April 1, 2026. She also spoke on the Clerk Report that was provided to Council as part of correspondence on the agenda. A monthly report will be provided going forward.

Amy Bergstrand, Director of Business Assistance and Housing Development: 2025 CDBG application has been submitted for storm drain on Foothill Blvd. Awards will be given in September 2026.

Ron Belser, Director of Code Enforcement: Provided the Council with February statistics of happenings in the Code Enforcement department.

Tim Kaber, Director of Public Works: Department report provided to the Council. It has been uploaded as a supplemental attachment to the minutes.

Pat Piatt, Director of Community Development: Provided Fire Marshall statistics to the Council.

Brian Ring, City Administrator: Spoke on the uptick of illegal parking happening in ADA parking spots. The Oroville Police Department will be stricter in monitoring this.

CONSENT CALENDAR
Consent calendar items 1 - 6 were adopted in one action by the Council.

Motioned by: Council Member Goodson Seconded by: Vice Mayor Smith AYES: Council Member(s) Reynolds, Thomson, Johnstone, Goodson, Webber, Vice Mayor Smith, Mayor Pittman
NOES: None
ABSTAINED: None
ABSENT: None
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March 17, 2026~4:00 PM Oroville City Council Meeting Minutes Page 3 of 5

1. REQUEST TO OPERATE BUSINESS OUT OF RESIDENCE
The City Council approved Mr. Reinert’s request to operate an online software business from his home.

2. HOUSING ELEMENT ANNUAL REPORT
The City Council received and filed the 2025 Housing Element Annual Progress Report.

3. HOUSING SUCCESSOR AGENCY ANNUAL REPORT
The City Council received and filed the Housing Successor Agency Annual Report for Fiscal Year 2024-2025.

4. AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH TROVER

CONSTRUCTION PROJECT MANAGEMENT LLC TO INCREASE CONTRACT AMOUNT The City Council approved amending the Professional Services Agreement with Trover Construction Project Management LLC to increase the contract amount by $25,000. The Council also adopted Resolution No. 9448.

5. EXTENSION FOR COMPLETION OF THE MURAL PROJECT AT 1447 HUNTOON STREET OF AN ADDITIONAL FOUR MONTHS TO JULY 20, 2026
The City Council approved a time extension to allow the project to move forward and ensure successful completion.

6. APPROVAL OF THE MARCH 3, 2026 CITY COUNCIL REGULAR MEETING MINUTES The City Council approved the drafted minutes of the March 3, 2026 City Council regular meeting.

REGULAR BUSINESS

7. NORTHSTAR CONTRACT FOR DOWNTOWN STORM DRAIN FEASIBILITY STUDY The City Council approved an agreement to NorthStar Engineering for $15,820 for a feasibility study for the downtown storm drain system bounded by Montgomery, Huntoon, Downer, and the levee. This study will specifically investigate options to alleviate flooding at the storm drain under the alley behind 2040 Montgomery Street. This was done by the following vote:

Motioned by: Council Member Thomson Seconded by: Council Member Goodson AYES: Council Member(s) Reynolds, Thomson, Johnstone, Goodson, Webber, Vice Mayor Smith, Mayor Pittman
NOES: None
ABSTAINED: None
ABSENT: None
36 Item 4.

March 17, 2026~4:00 PM Oroville City Council Meeting Minutes Page 4 of 5

8. DOWNTOWN ZONING REVIEW DISCUSSION
The following member(s) of the public submitted public comment on this item: Natalie Sheard and Marsha Henderson.

The City Council directed staff to defer any amendments to the zoning code at this time and evaluate the issue through the next General Plan amendment process anticipated in 2027 or 2028, when it can be considered as part of a broader review of land use policy and planning consistency.

9. HEWITT PARK - GEORGIA-PACIFIC TRAIN PAINTING PROJECT UPDATE The City Council received an update regarding a memorandum of understanding for the painting of the trains at Hewitt Park. The City Council directed staff to work on an MOU with local nonprofits to retain individuals who are qualified, trained, certified, and insured in working in the conditions to assess what efforts are needed and perform any painting that can be appropriately done.

10. FINANCIAL ANALYSIS FOR FISCAL YEAR ENDED JUNE 30, 2025 The City Council received the annual unaudited financial information for the year ending June 30, 2025.

PUBLIC HEARINGS

11. 5:00 PM - CLOSEOUT OF COMMUNITY DEVELOPMENT 22-CDBG-PI-00026 The public hearing was opened at 5:10PM. The public hearing was closed at 5:15PM.

The City Council conducted a public hearing relating to the performance and the final accomplishments of Community Development Block Grant (CDBG) No. 22-CDBG-PI-00026.

They authorized the closeout of 22-CDBG-PI-00026 by the following vote:

12. 5:15 PM - ELECTED OFFICIALS’ TRANSPARENCY AND ACCOUNTABILITY ORDINANCE The public hearing was opened at 5:15PM. The public hearing was closed at 5:31PM.

The following member(s) of the public submitted public comment on this item: Jeff McClure (electronic), Brian Wong, The CameraMan.

The City Council revisited the topic of transparency and accountability for elected officials and provided input on revised language created based off of direction given to staff at the December 16, 2025 and February 17, 2026 City Council Meetings. Direction was provided to staff to remove the demand for resignation verbiage.
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March 17, 2026~4:00 PM Oroville City Council Meeting Minutes Page 5 of 5 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.

FUTURE AGENDA ITEMS / CORRESPONDENCE

1. Future Agenda Items – None.

2. Correspondence
i. City of Oroville Fire Department February 2026 Statistics Report ii. Business Assistance and Housing Development Monthly Report iii. Hearing Notice-Oroville Union High School District-Facility Fees iv. January and February 2026 City Clerk Department Reports

ADJOURN THE MEETING
The meeting adjourned at 6:37PM.
___________________________________ ___________________________________ Kayla Reaster, Assistant City Clerk David Pittman, Mayor 38 Item 4.

CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN AND COUNCIL MEMBERS
FROM: RUTH DUNCAN, ASSISTANT CITY ADMINISTRATOR-ADMINISTRATIVE

SERVICES
RE: NEW PUBLIC FUNDS MONEY MARKET ACCOUNT
DATE: APRIL 7, 2026

SUMMARY
The City Council shall consider a change in bank investment accounts from Local Agency Investment Fund (LAIF), to a Public Funds Money Market account at Golden Valley bank.

DISCUSSION
On May 20, 2025, the City Council approved a change in banking service providers.

After a comprehensive solicitation the City approved the proposal from Golden Valley Bank and moved the City’s operating account. The move has been smooth with great customer service and care from the Golden Valley staff.

Currently the City has an Investment Fund with LAIF (Local Agency Investment Fund) where funds not immediately needed for operations are kept to earn interest. Transfers to and from LAIF are coordinated to make sure the City earns the maximum amount of interest as possible.

Golden Valley has informed us they have a similar option available to us that is comparable to our LAIF account. They have a Public Funds Money Market account that bases their interest rate to the quarterly average LAIF yield.

All funds held in this account are collateralized with restricted funds, at a rate of 110% of the amount held in the account.

Staff is seeking Council approval to replace the City’s LAIF account with a new Golden Valley Money Market account. The change will keep our funds local and make transfers convenient within the Golden Valley online portal.

FISCAL IMPACT
39 Item 5.

No fiscal impact, interest yields are comparable.

ACTION REQUESTED -
APPROVE THE REPLACEMENT OF THE CITY’S LAIF INVESTMENT ACCOUNT WITH A NEW GOLDEN VALLEY PUBLIC FUNDS MONEY MARKET ACCOUNT.

ATTACHMENTS
Golden Valley Bank Public Funds Money Market Interest Rate Disclosure sheet 40 Item 5.
41 Item 5.
42 Item 5.

CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN & COUNCIL MEMBERS
FROM: BRIAN RING, CITY ADMINISTRATOR
RE: STREET CLOSURE PROCEDURES
DATE: APRIL 7, 2026

SUMMARY
The City Council shall consider alternatives for safely securing streets for various public events.

DISCUSSION
The City Executive Committee has met two times (October 28, 2025 and February 23, 2026) to discuss matters related to events that result in street closures. Issues that were discussed included:
 Public Safety – who is administering the closure of the street(s) – traffic plan review, setting up barricades, taking down barricades;
 Cost Recovery – cost recovery versus City sponsorship;  Inconsistencies in current practices.

Events that require street closures are extremely common in the City and over the years, there have been shifts in staff resulting in inconsistencies with how street closure requests are reviewed and processed. The two core issues associated with such events are public safety and cost recovery. Staff have met a number of times in an attempt to identify the best alternatives for consideration on these topics. A number of themes continued to be stressed:
 It’s best to have City staff deploy and take down street closure signage and barricades, for safety reasons.
 There are a number of annual events at the City that involve road closures that provide a tremendous benefit to the Community:
o Christmas Preview
o Christmas Tree Lighting
43 Item 6.
o Feather Fiesta Days
 Kiddy Parade and regular parade
o Parade of Lights
o Salmon Festival
o Veteran’s Parade
o Southside Block Party
o Others?
 Cost recovery remains a challenge – a street closure event takes a team of two, 4 hours of time for set up and take down.

Staff recommend the following for events that involve street closures:
 30-day review period of any event that involves a road closure (60 days is standard);
o Traffic plans submitted by the applicant.
 Street closure events cost the City approximately $1,000 for each event. Suggest full cost recovery for events (currently receive $104 for such an event).  Applicants to have individuals monitor closed sections of roadways.  Applicants to provide insurance to indemnify the City.  Suggest Council consider sponsoring major events that provide direct community benefit:
o Suggest staff apply for funding from the Supplemental Benefits Fund to procure additional barricades and fund staffing for said major events.

FISCAL IMPACT
Approximately $1,000 of staff time per event.

ACTION REQUESTED -
PROVIDE DIRECTION TO STAFF.

ATTACHMENTS
None.
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Page 1 ends

CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN AND COUNCIL MEMBERS
FROM: PATRICK PIATT, COMMUNITY DEVELOPMENT DIRECTOR

WES ERVIN, CITY PLANNER
RE: ANNEXATION FEASIBILITY STUDY UPDATE AND PROPOSED

ANNEXATION OF THE LINCOLN OPHIR STUDY AREA
DATE: APRIL 7, 2026

SUMMARY
The City Council shall receive an update on the feasibility study conducted on three potential areas within the County and provide direction to staff – including authorizing staff to pursue annexation of the Lincoln Ophir Annexation Area, as tentatively defined.

DISCUSSION
In October 2025 staff presented an annexation strategy with 6 potential annexation areas to the Planning Commission, the City Council and the Butte County Board of Supervisors. The City Council authorized further study of the six areas, including a fiscal analysis by RSG, Inc. Subsequently as expected, refinements occur as more information surfaces.

Three areas were studied in the fiscal analysis:

1. The Lincoln Ophir study area of about 256 acres comprising 28 parcels.1

2. The Rio d’Oro study area including the industrial and commercial development along Hwy 70 north of Ophir Road.

3. A Thermalito study area generally along Oro Dam Blvd West. Annexing some or all of Thermalito has been a pre-condition of LAFCO to be able to annex other areas.

The fiscal analysis concluded that the Lincoln Ophir annexation area would produce a net fiscal benefit, as would the northern half of the Rio d’Oro area with its existing industrial and commercial development. The Thermalito area would produce a net fiscal deficit, as would developing the homes in the Rio d’Oro Specific Plan area.

1 If the area extending to Kusel Road is included, another ~70 acres and 21 parcels could be added.
45 Item 7.

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THE PROPOSED 2026 ANNEXATION -- AND ITS TENTATIVE BOUNDARIES Staff proposes to proceed first with the Lincoln Ophir annexation, whose boundaries are very likely to be modified as described below. Reasons to proceed with this annexation first include:

1. The area is a natural extension of existing and potential industrial activity.

2. There is annexation interest from several major landowners in the area.

3. Industrial development there would bring more potential customers for Oro Verde, the City’s new municipal electric utility.

4. The positive fiscal benefit noted above (adjusted by new boundaries).

Staff recommends pre-zoning about 204.5 acres as Industrial and about 51.7acres fronting Lincoln Blvd as Mixed Use. The 70 acres, if added, would be designated industrial. The Oroville General Plan currently has a pre-designated land use mix of industrial, mixed use, and medium density residential. Current county zoning is Heavy Industrial, General Industrial, or Mixed Use. Any annexed residential would stay residential.

The DUC (Disadvantaged Unincorporated Communities) Factor State law (SB244 of 2012) requires any annexation area adjacent to a DUC (Disadvantaged Unincorporated Community) to also be annexed unless:

1. There has been a previous attempt to annex in the past 5 years.

2. The majority of the residents within a DUC are opposed to annexation via written evidence.

The 2015 General Plan Update lists two DUC’s near to the proposed annexation area – DUC #8 @ 458 acres which is contiguous, and DUC #7 which is to the north and which the County has now asked to include the Virginia Avenue portion.

See Attachment 2 for DUC boundaries and how they overlap with the tentative boundaries.

The actual boundaries to include will be refined after negotiations with the County and LAFCO, and after sending letters to the roughly 300 parcel owners to ascertain their interest in being annexed.

On March 26, 2026, the Planning Commission discussed the DUC requirement and since the boundaries are now uncertain, did not make a specific recommendation at this time.

Staff seeks Council authorization to pursue this annexation and bring back a more defined boundary map at a later date, hopefully in the July timeframe. 46 Item 7.

Page 3 ends

FISCAL IMPACT
LAFCO will charge their full processing costs with a minimum deposit of $2,000. The Board of Equalization will later charge $2,000. Likely total costs will be in the $10,000 range. City staff will ask landowners in the annexation area to consider contributing to the cost.

ACTION(S) REQUESTED -

1. DISCUSS THE PROPOSED LINCOLN OPHIR ANNEXATION AND MODIFY IF DESIRED.

2. DIRECT STAFF TO CONTINUE THE ANNEXATION PROCESS AND LATER

BRING BACK FOR APPROVAL A MORE DEFINED BOUNDARY MAP AND COMPLETED ANNEXATION DOCUMENTS FOR LINCOLN OPHIR.

ATTACHMENTS

1. Tentative Lincoln Ophir Annexation area(s)

2. DUC’s in the vicinity

3. RSG fiscal analysis

4. Preliminary annexation process schedule
47 Item 7.
48 Item 7.
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50 Item 7.
51 Item 7.

Sphere of Influence
Annexation Study
City of Oroville
March 17, 2026
52 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026

TABLE OF CONTENTS
Introduction ...................................................................................................................... 1 Scope of this Study 1
Executive Summary 2
Background....................................................................................................................... 6 City of Oroville 6
Land Use Profile.............................................................................................................................6 City Organizational Structure.......................................................................................................7 Oroville Sphere of Influence (SOI)...............................................................................................8 Study Area Descriptions 8
Thermalito Study Area ..................................................................................................................9 Rio d’Oro Study Area ................................................................................................................. 11 Lincoln-Ophir Study Area .......................................................................................................... 12 Services and Service Providers in Study Areas 13
California Highway Patrol .......................................................................................................... 14 County of Butte ........................................................................................................................... 14 Sierra-Sacramento Valley EMS Agency.................................................................................... 14 CSA 26 (Thermalito Sewer and Drainage District) ................................................................. 15 CSA 148 (Orchardcrest Estates Street Lighting and Landscaping District) ........................ 15 Thermalito Water and Sewer District ....................................................................................... 15 South Feather Water and Power District ................................................................................. 16 Feather River Recreation and Park District.............................................................................. 16 Local Agency Formation Commission 17
Purpose of this Study...................................................................................................... 19 Methodology 20
Study Area Growth Forecast ..................................................................................................... 21 Master Property Tax Exchange Agreement ............................................................................ 23 Analysis and Findings ..................................................................................................... 26 General Fund Revenues 26
Taxes............................................................................................................................................. 26 Other Revenues .......................................................................................................................... 33 53 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
General Fund Expenditures 33
General Government ................................................................................................................. 34 Administrative Services.............................................................................................................. 34 Community Development ......................................................................................................... 35 Code Enforcement ..................................................................................................................... 36 Police............................................................................................................................................ 37 Fire................................................................................................................................................ 38 Public Works................................................................................................................................ 39 Capital Improvement Needs 40
Conclusions..................................................................................................................... 41 Appendix 1: Study Area Assessed Value Forecast ......................................................... 42 Appendix 2: Study Area General Fund Fiscal Impact..................................................... 34 Appendix 3: Study Area General Fund Fiscal Impact Upon Buildout............................. 36 Appendix 4: Thermalito Study Area Map....................................................................... 37 Appendix 5: Rio d’Oro Study Area Map......................................................................... 38 Appendix 6: Lincoln-Ophir Study Area Map................................................................... 39 Appendix 7: CSA 26 Thermalito Sewer & Drainage District Boundary Map.................. 40 Appendix 8: CSA 148 Orchardcrest Estates District Boundary Map.............................. 41

54 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026

TABLE OF FIGURES
Figure 1: Summary of City’s 2025-26 General Fund and General Fund Annexation Impacts in Current Dollars,.....................................................................................................................................4 Figure 2: Annexation Study Area Boundaries...................................................................................5 Figure 3: City Assessed Value by Land Use, 2025-26......................................................................7 Figure 4: Quick Facts - City vs. Study Areas ......................................................................................9 Figure 5: Thermalito Assessed Value by Land Use, 2025-26....................................................... 11 Figure 6: Rio d’Oro Assessed Value by Land Use, 2025-26......................................................... 12 Figure 7: Lincoln-Ophir Assessed Value by Land Use, 2025-26 ................................................. 13 Figure 8: Service Providers Matrix................................................................................................... 17 Figure 9: Construction Forecast, Study Area ................................................................................. 22 Figure 10: Existing County Share and City Share Under Master Property Tax Exchange Agreement.......................................................................................................................................... 25 Figure 11: Study Area Existing Property Tax Shares, 2024-25 .................................................... 27 Figure 12: Property Tax Revenues................................................................................................... 28 Figure 13: Sales and Use Tax ........................................................................................................... 29 Figure 14: Measure U Transactions and Use Tax .......................................................................... 30 Figure 15: Utility User Tax Revenues............................................................................................... 32 Figure 16: Other General Fund Revenue....................................................................................... 33 Figure 17: General Government Expenditure ............................................................................... 34 Figure 18: Finance and Risk Management Expenditures............................................................. 35 Figure 19: Community Development Expenditures ..................................................................... 36 Figure 20: Code Enforcement Revenues ....................................................................................... 36 Figure 21: Law Enforcement Expenditures .................................................................................... 37 Figure 22: Fire Expenditures............................................................................................................ 38 Figure 23: Public Works Expenditures............................................................................................ 39

55 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
1 INTRODUCTION
In response to a request from the Local Agency Formation Commission of Butte County (“Butte LAFCO”) and in keeping with its long term strategic goals, the City of Oroville (“City”) retained RSG to prepare this Annexation Study (“Study”) to forecast the recurring General Fund revenue and expenditure impacts associated with the annexation of three areas (“Study Area”) outside the City’s existing corporate boundary and within the City’s sphere of influence (“SOI”).

As shown in Figure 2, the Study Areas consist of:

1. a portion of the inhabited unincorporated area known as the Thermalito Study Area,

2. an area along State Route 70 that includes the Rio d’Oro Specific Plan known as the Rio d’Oro Study Area, and

3. a commercial and industrial area known as the Lincoln-Ophir Study Area.

RSG coordinated with City staff and Butte LAFCO to determine the Study Area boundaries to ensure alignment with both party’s goals for this Study.

SCOPE OF THIS STUDY
The primary purpose of this Study is to provide City leadership and the public information regarding the potential fiscal impact of extending municipal services to the three component Study Areas, since it is a principal concern for the City in order to understand whether annexation would have a positive, neutral, or negative effect on the City budget.

The fiscal position of the City is important because while the current FY 2025-26 operating budget is balanced, expenditures exceeded revenues in FY 2023-24, and the available reserves ratio (the ratio of the unassigned fund balance compared to actual expenditures) for the year ending June 30, 2024 was 34.0 percent. This reserves ratio is healthy but not sufficient to absorb significant ongoing deficits such as recurring operating fund shortfalls.

Notwithstanding the primary focus of this Study, fiscal impacts are not the sole factor a LAFCO shall consider under its authority to evaluate potential annexations. The additional considerations a LAFCO shall include when considering an annexation proposal include not only fiscal but information and comments from landowners, voters, and residents, the adequacy of governmental services and controls in the area, the probable future needs for those services and controls, infrastructure capacity, efficient service delivery, logical boundary formation, consistency with the municipal services review and sphere of influence, and compliance with disadvantaged unincorporated community requirements.

As noted in this Study, because of the expected fiscal deficits the City may face if all of the Study Areas are annexed, the nature, quality, and extent of public services the City may be able to deliver not only to any annexed areas but to the entire City as a whole, may be 56 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
2 impacted or even reduced beyond their current levels today. For this reason, the City is likely to limit the extent of annexation activities is proposes so as to not negatively risk an impact to municipal services.

EXECUTIVE SUMMARY
Based on the analysis and review presented herein, RSG concluded that annexation of the Study Areas may generate a small operating budget surplus but have unknown capital project needs, some of which may be the responsibility of the City.

Please note: all figures presented in this study are presented in current (2026) dollars. • Except for Lincoln-Ophir Study Area, Operating Budget Impact Negative in the Long Term: The Thermalito Study Area generates a fiscal deficit in the near term and at build out, meaning the estimated General Fund expenditures exceed the estimated General Fund revenues in these Study Areas. The Rio d’Oro Study Area is projected to generate a surplus in the first year following annexation, but results in a deficit at full buildout. RSG’s analysis does not include the cost of infrastructure improvements that may be required in the Study Areas to bring infrastructure up to the City’s current code standards. If all three Study Areas were annexed simultaneously, the first year estimated combined net fiscal impact would be about $448,000. However, after ten years, the three study areas will generate a deficit of about $769,000, and at buildout, the deficit will reach around $2.8 million. RSG estimates annual net revenues for each area as follows:
• Deficit of $590,000 per year for the Thermalito Study Area for Year 1, a deficit of $790,000 in Year 10, and a deficit of about $790,000 for the buildout. • Surplus of $133,000 per year for the Rio d’Oro Study Area, and a small surplus of $3,260 in Year 10; at buildout, the deficit will be about $2.0 million. • Surplus of about $9,000 for the Lincoln-Ophir Study Area in Year 1. Surplus of $18,000 after ten years of annexation and a surplus of $21,000 at the buildout phase. This is primarily due to the planned land use of this area being nonresidential compared to other Study Areas.
• Limited Existing Development Outside of Thermalito: The existing land use character of the Study Areas largely drives these fiscal findings:
• With the exception of the Thermalito Study Area, the majority of the areas studied are presently undeveloped and require little in the way of public services. As they develop, the City would have tax, fee, and charges for services to provide based on our assumptions and analysis.
• The Thermalito Study Area includes both developed and undeveloped areas with approximately 250 new housing units in the early planning stages. The Thermalito Study area includes a substantial established residential community, which already 57 Item 7.

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3 generates calls for service, requires ongoing code enforcement, and contains infrastructure that is likely older and below the City’s current standards. The Thermalito Study Area produces a more immediate operational impact on the City. • Capital Improvement Costs Not Known and May be Substantial. RSG did not study the scope of existing or future capital improvement costs, which may require City financial support. See page 40 for more information on potential capital improvement needs of the Study Areas.
• Engagement and Support of Stakeholders is Essential to Proceed with Annexation: The City should conduct outreach to the affected communities to engage property owners, residents, and businesses before going ahead with annexation efforts. This outreach should include providing the public information on the reasons for potential annexation, the impacts on taxes, fees, and charges as well as zoning and code enforcement practices, and gauge the level of interest.

All these study areas are large enough that property owners and/or the registered voters will ultimately have the final decision on annexation. If these discussions go well and there is a consensus of support from the stakeholders, the City could then proceed with a LAFCO annexation application.

Figure 1 compares the City’s 2025-26 budgeted revenues and expenditures to RSG’s estimated aggregated total revenues and expenditures for all three Study Areas in current dollars (2026), ten years after annexation (2036), and at buildout (2061). 58 Item 7.

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4 Figure 1: Summary of City’s 2025-26 General Fund and General Fund Annexation Impacts in Current Dollars,

The largest costs associated with annexation are those for the Public Safety and Public Works Departments. Public Works costs do not include the cost of infrastructure improvements needed to bring the Study Area in line with City’s code standards. Based on RSG’s analysis, the Study Areas all generate sufficient revenues to cover estimated City service costs. Collectively, annexation of the three Study Areas would generate a net deficit of approximately $448,000 for the City in the first year of annexation; the deficit will reach $769,000 million in Year 10 and reach about $2.8 million at buildout.

Current Year Year 10 Buildout
7/1/26 7/1/36 7/1/61
General Fund Revenues
Taxes $ 596,848 $ 1,538,429 $ 4,399,317
License, Permits and Franchises 11,701 75,692 76,014
Other Revenues 1,878 4,060 12,869
Total Revenues 610,427 1,618,181 4,488,200
General Fund Expenditures
Administration 5,393 11,662 36,961
Administrative Services 77,811 168,261 533,263
Elected Officials - - -
Community Development Svcs 12,177 123,913 75,362
Code Enforcement 88,826 192,079 608,746
Public Safety 675,022 1,459,685 4,626,117
Public Works 190,833 412,662 1,307,831
General Government 8,634 18,671 59,174
Total Expenditures 1,058,697 2,386,933 7,247,453
Surplus / (Deficit) $ (448,270) $ (768,751) $ (2,759,253) Aggregated Total of Study Areas
59 Item 7.

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5 Figure 2: Annexation Study Area Boundaries
60 Item 7.

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6 BACKGROUND

CITY OF OROVILLE
The City of Oroville is a charter city, located on the banks of the Feather River, which flows out of the Sierra Nevada Mountain Range to the floor of the California Central Valley. Oroville is located five miles east of Highway 99 along Highway 70, which is a primary transportation route connecting Oroville with Sacramento to the South and Plumas County to the North.

Oroville’s city limits encompass an area of approximately 13.9 square miles. Figure 2 shows the current boundaries of the City limits.

The City incorporated as a charter city in 1906, and operates with a Mayor, elected at-large, and six Councilmembers, elected by districts and serving four-year terms. The City is one of five incorporated cities in Butte County and also serves as the County seat.

According to Environmental Systems Research Institute (ESRI), the estimated 2025 population of Oroville is 19,404.

LAND USE PROFILE
Figure 3 presents a summary of land uses in the City. According to the County Assessor’s office, the total net assessed value of the City in 2025-26 is about $1,862,049,553.

Approximately 60 percent of the assessed value in the City is derived from residential land uses, which makes up about 1,747 acres. Commercial uses are the second largest land use category, making up about 31 percent of assessed value and occupying about 631 acres. 61 Item 7.

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7 Figure 3: City Assessed Value by Land Use, 2025-26

CITY ORGANIZATIONAL STRUCTURE
Operationally, the City is organized around eight departments: Administration, Administrative Services, Code Enforcement, Community Development, Business Assistance and Housing Development, Fire, Police, and Public Works. Within these eight departments, the City provides typical municipal services as well as two enterprise funds/activities, which includes the Sewer Fund and Airport Fund.

According to the City’s 2025-26 Budget, the City has a total of 147.95 Full-Time Equivalent positions, 60.25 of which are within the City’s Police Department and 41.45 of which are within the City’s Public Works Department. The City contracts with the County Sheriff Department for law enforcement and code enforcement services, and with CALFIRE for fire and emergency medical protection services. The City’s eight departments include the following divisions:

Land Use Parcels Acres Assessed Value
% of
Total
Residential 4,769 1,747.4 $ 996,191,524 59.7%
Single Family 4,132 1,322.5 808,555,144 48.5%
Multifamily 467 290.5 144,174,265 8.6%
Mobile Home Park 8 48.5 26,019,983 1.6%
Manufactured Home Residential 162 85.9 17,442,132 1.0%
Commercial 584 630.7 512,779,084 30.7%
Retail 276 208.9 242,635,763 14.5%
Professional 145 78.8 88,577,237 5.3%
Warehouse/wholesale operations 20 137.0 69,117,547 4.1% Hotel/Motel 19 37.3 52,048,554 3.1%
Service 124 168.7 60,399,983 3.6%
Agriculture 1 56.5 341,219 0.0%
Recreational 7 22.6 8,478,972 0.5%
Industrial 26 144.5 48,493,143 2.9%
Miscellaneous 195 258.3 29,997,138 1.8%
Institutional 65 121.0 17,382,385 1.0%
Utility 11 21.8 3,982,067 0.2%
Vacant 938 1,196.4 50,677,740 3.0%
Subtotal 6,596 4,199.1 $1,668,323,272 100.0%
Unsecured Assessed Value $ 193,726,281
Total Assessed Value $1,862,049,553
City
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8 • Administration which includes the City Administrator, City Attorney, City Clerk, and City Hall,
• Administrative Services, which includes Finance, Human Resources, Information Technology, and Risk Management,
• Business Assistance and Housing Development,
• Code Enforcement,
• Community Development, which includes Building and Planning, • Police Department,
• Fire Department (under contract with CALFIRE), and
• Public Works, which includes Parks and Trees, Lighting and Landscape Maintenance Districts, Museums, Mechanics, Streets and Drainage, and Sewer.

Other municipal services in Oroville include library services provided by the County, water, and wastewater provided by various service providers, solid waste collection by private service providers, transportation planning provided by Butte County Association of Governments, as well as broadband and utilities.

OROVILLE SPHERE OF INFLUENCE (SOI)
The Oroville SOI encompasses an area of 41 square miles1 and contains property within the City’s Planning Area. The SOI includes the Thermalito Forebay and SR 162 to the west, Lake Oroville to the northeast, and Palermo to the south. Several unincorporated communities are within or partially within the SOI, including Thermalito, Las Plumas, Kelly Ridge, and Palermo.

LAFCO updated the Oroville SOI in 2014 to align with the proposed SOI in Oroville’s 2030 General Plan, adopted in 2008.

Figure 2 on page 5 illustrates the boundaries of the Oroville Sphere of Influence.

STUDY AREA DESCRIPTIONS
In consultation with City and LAFCO staff, RSG analyzed three study areas: Thermalito, Rio d’Oro, and Lincoln-Ophir. The Study Areas all lie within the Oroville Sphere of Influence, as established by LAFCO in their 2024 Municipal Services Review.

Figure 4 provides a summary of the physical, demographic, and other data between the City and the Study Areas.
1 Source: LAFCO Oroville MSR Update (2024)
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9 Figure 4: Quick Facts - City vs. Study Areas
The total net assessed value in all three Study Areas adds up to about $110.0 million, which is about 6.1 percent of the City’s total assessed value. The total net assessed value in the Thermalito Study Area is about $66.6 million, which represents about 3.6 percent of the assessed value in the City. The assessed value of Rio d’Oro Study Area is approximately $27.9 million, or about 1.5 percent of the City assessed value. The Lincoln-Ophir Study Area assessed value is about $19.3 million, or about 1.0 percent of the City assessed value.

Below, we have prepared a description of the size and land use composition for each of the Study Areas.

THERMALITO STUDY AREA
As illustrated on page 37, the Thermalito Study Area is approximately 0.6 square miles. If annexed into Oroville, the Thermalito Study Area would increase the size of the 13.94 square mile City limits by approximately 4.3 percent.

The Thermalito Study Area includes a portion of the greater Thermalito unincorporated community that extends north, west, and south. RSG and City staff discussed the location of the Thermalito Study Area at the kickoff of the project that occurred within the first two weeks after RSG’s contract was approved by the Oroville City Council. We conducted a windshield field survey of the Thermalito community and witnessed dozens of lawn signs and banners posted throughout much of the community expressing opposition to annexation already at this early stage.

In our experience, this is a highly unusual and notable expression of public opposition to a proposal of this nature, even as the City staff made clear that the purpose of the work RSG was City Thermalito Rio d'Oro Lincoln-Ophir
Area (Sq. Mi.) 13.94 0.60 1.96 0.39
Current Population 19,404 1,081 221 11
Number of Households 7,208 455 94 2
Persons Per Sq. Mi. 1,392 1,802 113 28
Daytime Population 27,212 813 348 79
Total Businesses 1,171 13 32 4
Employees 14,709 96 208 26
Total Assessed Value $1,862,049,553 $66,574,765 $27,923,455 $19,261,609 Sources: ESRI, Butte County Assessment Roll 2025-2026
Study Area Detail
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10 hired to perform was to assess the implications of annexation, not necessarily pursue annexation. City staff also stated that they have frequently heard from the Thermalito community about their desire to remain separate from the City rather than be annexed. As we conducted the windshield tour, City staff pointed out a comparatively small number of property owners (developers) who were interested in annexation.

Ultimately, information and comments from landowners, voters, and residents of the affected territory are among the factors LAFCO must consider under Government Code Section 56668. While the City may conduct future public workshops in the Thermalito community to provide more information about any potential annexation in their area, City staff recognized that ultimately without voter support and such an early expression of opposition, that the broader community may not support annexation.

As a result, the boundaries of the Thermalito study area were reduced to attempt to create a more logical boundary by connecting properties where the City had received interest from developers to adjacent, mostly nonresidential uses, along both sides of Oro Dam Boulevard.

The current population of the Thermalito Study Area is approximately 1,081 persons, which is equal to 1,802 persons per square mile as compared to the City’s population density of 1,392 persons per square mile. If annexed, the population of the City would increase by approximately 6 percent.

Figure 5 presents a summary of land uses within the Thermalito Study Area. Residential land uses comprise over 87 percent of the total assessed value of the Study Area, or almost 200 acres. The remainder of the uses are divided between commercial, vacant, and miscellaneous (unclassified) uses.
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11 Figure 5: Thermalito Assessed Value by Land Use, 2025-26 RIO D’ORO STUDY AREA
As shown on the map on page 38, the Rio d’Oro Study Area is about 2 square miles, and if annexed into the City, the Rio d’Oro Study Area would increase the size of the City by approximately 14.05 percent.

The current population of the Rio d’Oro Study Area is approximately 221 persons. The density of the Rio d’Oro Study Area is 113 persons per square mile, which is significantly lower density than the City, which has about 1,392 persons per square mile. The population of the Rio d’Oro Study Area would increase the City’s population by slightly more than 1 percent if annexed.

The Rio d’Oro Study Area overlaps the County’s Rio d’Oro Specific Plan, which represents a significant development opportunity in the Study Area.

Figure 6 presents a summary of land uses in the Rio d’Oro Study Area, which includes a mix of residential, commercial, agriculture, vacant, and miscellaneous land uses. About 100 acres, or almost 38 percent of the assessed value is devoted to residential land uses in the Rio d’Oro Study Area.

Land Use Parcels Acres Assessed Value
% of
Total
Residential 258 199.8 $ 57,967,282 87.3%
Single Family 161 79.2 28,172,479 42.4%
Multifamily 26 34.9 5,713,910 8.6%
Mobile Home Park 10 46.5 15,392,803 23.2%
Manufactured Home Residential 61 39.2 8,688,090 13.1%
Commercial 13 10.8 4,676,179 7.0%
Retail 6 5.2 3,044,290 4.6%
Professional 2 1.3 297,170 0.4%
Warehouse/wholesale operations 0 0.0 0 0.0%
Hotel/Motel 0 0.0 0 0.0%
Service 5 4.3 1,334,719 2.0%
Agriculture 0 0.0 0 0.0%
Recreational 0 0.0 0 0.0%
Industrial 0 0.0 0 0.0%
Miscellaneous 12 44.5 1,324,474 2.0%
Institutional 0 0.0 0 0.0%
Utility 0 0.0 0 0.0%
Vacant 30 82.4 2,408,071 3.6%
Subtotal 313 337.4 $ 66,376,006 100.0%
Unsecured Assessed Value $ 198,759
Total Assessed Value $ 66,574,765
Thermalito
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12 Figure 6: Rio d’Oro Assessed Value by Land Use, 2025-26

LINCOLN-OPHIR STUDY AREA
The boundaries of Lincoln-Ophir Study Area are illustrated on page 39. The Lincoln-Ophir Study Area is approximately 0.4 square miles, meaning annexation of the Lincoln-Ophir Study Area would increase the City’s size by approximately 2.8 percent.

The Lincoln-Ophir Study Area population is approximately 11 persons, equal to about 28 persons per square mile, which is the lowest density among the three Study Areas. The Lincoln-Ophir Study Area population density is about one-fiftieth of the population density in the City.

Compared to the other Study Areas, the Lincoln-Ophir Study Area is relatively undeveloped, but there are several operating businesses located in the Lincoln-Ophir Study Area, and landowners in the Lincoln-Ophir Study Area have approached City staff with plans for new development and business activities in the Study Area.

Figure 7 presents a summary of land uses in the Lincoln-Ophir Study Area, which is primarily a commercial area, with about 58 percent of the assessed value derived from commercial Land Use Parcels Acres Assessed Value
% of
Total
Residential 23 100.3 $ 9,527,185 38.1%
Single Family 15 37.9 3,595,984 14.4%
Multifamily 1 1.6 0 0.0%
Mobile Home Park 3 47.1 5,552,153 22.2%
Manufactured Home Residential 4 13.7 379,048 1.5%
Commercial 10 107.3 6,140,392 24.5%
Retail 1 18.0 790,500 3.2%
Professional 1 9.2 1,709,289 6.8%
Warehouse/wholesale operations 4 16.4 1,575,937 6.3%
Hotel/Motel 1 10.8 934,046 3.7%
Service 3 53.0 1,130,620 4.5%
Agriculture 3 490.9 995,514 4.0%
Recreational 1 4.2 53,575 0.2%
Industrial 3 119.0 2,571,923 10.3%
Miscellaneous 11 126.4 2,168,730 8.7%
Institutional 0 0.0 0 0.0%
Utility 0 0.0 0 0.0%
Vacant 36 255.0 3,567,402 14.3%
Subtotal 87 1,202.9 $25,024,721 100.0%
Unsecured Assessed Value $ 2,898,734
Total Assessed Value $ 27,923,455
Rio d'Oro
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13 warehouses and service-related businesses, and an additional 9 percent of assessed value derived from industrial uses. The commercial and industrial uses combine for about 56 acres, while about 101 acres in the Lincoln-Ophir Study Area are vacant. About 12 percent of the assessed value in the Lincoln-Ophir Study Area is related to residential land uses.

Figure 7: Lincoln-Ophir Assessed Value by Land Use, 2025-26

SERVICES AND SERVICE PROVIDERS IN STUDY AREAS
Several public agencies and private entities provide municipal services to the Study Areas, though the County provides most services. In some cases, the providers vary depending on location and therefore differ among the Study Areas and the rest of the City. Additionally, there are two County Service Areas (CSAs) that may still exist within the Study Areas but are effectively defunct and provide no services despite showing as having a presence in the Study Area according to some County and LAFCO records.

If the City were to proceed with annexation, RSG expects that some of the agencies may experience changes while the defunct agencies are dissolved in conjunction with the Land Use Parcels Acres Assessed Value
% of
Total
Residential 5 13.7 $ 1,258,293 11.8%
Single Family 4 8.8 1,072,337 10.0%
Multifamily 1 4.8 185,956 1.7%
Mobile Home Park 0 0.0 0 0.0%
Manufactured Home Residential 0 0.0 0 0.0%
Commercial 7 37.9 6,133,167 57.5%
Retail 0 0.0 0 0.0%
Professional 0 0.0 0 0.0%
Warehouse/wholesale operations 3 13.5 1,019,923 9.6%
Hotel/Motel 0 0.0 0 0.0%
Service 4 24.3 5,113,244 47.9%
Agriculture 0 0.0 0 0.0%
Recreational 0 0.0 0 0.0%
Industrial 4 17.8 975,511 9.1%
Miscellaneous 3 24.4 762,422 7.1%
Institutional 0 0.0 0 0.0%
Utility 0 0.0 0 0.0%
Vacant 11 101.1 1,543,365 14.5%
Subtotal 30 194.8 $10,672,758 100.0%
Unsecured Assessed Value $ 8,588,851
Total Assessed Value $ 19,261,609
Lincoln-Ophir
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14 annexation application, if necessary. Below, RSG has described the public agencies that provide services to the Study Areas along with the anticipated impacts of City annexation:

CALIFORNIA HIGHWAY PATROL
The California Highway Patrol provides traffic safety and enforcement services in unincorporated areas in California, pursuant to Vehicle Code Sections 2400 and 2401. Upon annexation, these responsibilities would transfer to the City’s Police Department.

COUNTY OF BUTTE
Butte County currently provides several services to the Study Areas, including the following:
• Law Enforcement (Sheriff’s Department)
• Fire Protection (CALFIRE & County Fire Department)
• Code Enforcement (Development Services Department)
• Animal Control (Butte County Animal Control)
• Economic Development (Administration Department)
• Streets/Road Maintenance (Public Works Department)
• Street Lighting (Public Works Department)
• Stormwater (Public Works Department)
• Library (Library Department)
The City of Oroville receives library services from the Butte County Library system, so annexation would not affect the provision of library services to the Study Areas if annexed. For all other services listed above, annexation would transfer these services to the City. Many of these services are provided by City personnel and departments, although the City does contract with other parties, such as CALFIRE (fire protection), Northwest SPCA (animal control), and others.

SIERRA-SACRAMENTO VALLEY EMS AGENCY
Sierra-Sacramento Valley EMS Agency, or S-SV EMS is a joint powers agency that serves as the designated local EMS agency for the Butte County, as well as nine other counties. Their responsibilities include planning, development, implementation, and oversight of all EMS components within their jurisdiction. Should the City proceed with annexation, S-SV EMS would continue to serve annexed areas as they do today. 69 Item 7.

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15 CSA 26 (THERMALITO SEWER AND DRAINAGE DISTRICT)
County Service Area 26, formerly a subsidiary district of the County, not to be confused with the independent and similarly named Thermalito Water and Sewer District, is another defunct county service area located in a portion of the Thermalito Study Area. See Appendix 7: CSA 26 Thermalito Sewer & Drainage District Boundary Map on page 40 for the location and boundaries of this CSA.

According to Butte LAFCO’s 2016 MSR, CSA 26 does not provide any services, has no funding source, no expenditures, and no fund balance. While Butte LAFCO’s MSR did acknowledge that the area faces as “significant need” for stormwater drainage services in the CSA 26 service area, and recommended several options to better govern how such services are provided, including dissolving the CSA, merging with the Thermalito Water and Sewer District, or becoming a subsidiary district of Thermalito Water and Sewer District. To date, RSG was not able to find any evidence of LAFCO action taken on CSA 26, but ultimately because such services are the responsibility of the Thermalito Water and Sewer District as the only active service provider, RSG does not believe that annexation by the City would necessitate any reorganization of CSA 26. However, LAFCO may dissolve CSA 26 nonetheless if the City does annex the entirety of the service area to dissolve the defunct district.

CSA 148 (ORCHARDCREST ESTATES STREET LIGHTING AND LANDSCAPING DISTRICT) County Service Area 148 is a lighting and drainage district administered by the County, providing lighting and drainage services within 30 parcels entirely within the Thermalito Study Area. RSG has prepared map of the boundaries and location of CSA 148 in Appendix 8: CSA 148 Orchardcrest Estates District Boundary Map on page 41.

Butte LAFCO’s CSA MSR (2016) found that CSA 148 was not providing services and had no revenue sources or expenditures. The MSR stated that there is no demand for CSA 148 to provide any of its authorized services and recommended a zero SOI indicating that CSA 148 should be dissolved. Should the City proceed with annexation of areas within CSA 148, the City would be responsible for these services.

THERMALITO WATER AND SEWER DISTRICT
Thermalito Water and Sewer District provides water and wastewater services to about 14,873 acres, including most of the land in the City’s corporate boundary west of the Feather River, including the portion of Oroville along State Route 70, northwest of the Feather River, and the areas near the Oroville Municipal Airport. Thermalito Water and Sewer District also provides water and wastewater services to the unincorporated Thermalito Study Area. As an independent special district with its own governance and administrative structure, the District establishes policies, rates, and capital planning to maintain system capacity and regulatory compliance. The District has existing service connections within the City and Study Areas and coordinates with local agencies on infrastructure planning and emergency response. Because the Thermalito Water and Sewer District is already providing water and wastewater services to 70 Item 7.

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16 areas within the City’s corporate boundary and to the Thermalito Study Area, RSG does not anticipate a change of service related to water and wastewater services in the Thermalito Study Area as the result of an annexation.

SOUTH FEATHER WATER AND POWER DISTRICT
South Feather Water and Power District provides water services to portions of the Rio d’Oro and Lincoln-Ophir Study Areas, as well as elsewhere within the City limits. RSG believes that annexation by the City would not alter the provision of these services by the South Feather Water and Power District.

FEATHER RIVER RECREATION AND PARK DISTRICT
Feather River Recreation and Park District provide parks and recreation services within the Study Areas. The Feather River Recreation and Park District is the largest recreation provider in Butte County, with the City of Oroville representing about 2 percent of the land area in the Feather River Recreation and Park District. As an independent district serving both the City and Study Areas, RSG does not anticipate that the Feather River Recreation and Park District would be impacted by the City’s potential annexation of the Study Areas.

Incidentally, the City’s Public Works Department does provide some landscaping maintenance services to public parks within the City, according to the Butte LAFCO’s 2024 municipal services review, which LAFCO has suggested could be consolidated with the Feather River Recreation and Park District. For this reason, RSG does not believe that annexation of the Study Areas by the City would increase the service demands of the Public Works Department for such services presently performed by the Feather River Receation and Park District.

Based on this analysis provided above, Figure 8 provides a summary of the current and anticipated providers of services for each of the three study areas as well as the City. 71 Item 7.

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17 Figure 8: Service Providers Matrix

LOCAL AGENCY FORMATION COMMISSION
Since 1972 LAFCOs have established and overseen spheres of influence (SOIs), which define an agency’s probable future service area based on land use, service capacity, and geographic considerations. SOIs are intended to promote orderly growth, efficient service delivery, and the avoidance of overlapping jurisdictions, urban sprawl and duplication of services.

Service City Service Change with
Thermalito Rio d'Oro Lincoln-Ophir Provider /1 Annexation Law Enforcement Sheriff/CHP Sheriff/CHP Sheriff/CHP Oroville PD Annexed Fire Protection CALFIRE & Butte Co FD CALFIRE & Butte Co FD
CALFIRE & Butte Co
FD City (CALFIRE Contract) Annexed
Emerency
Medical Services
Sierra-Sacramento Valley
EMS Agency
Sierra-Sacramento
Valley EMS Agency
Sierra-Sacramento
Valley EMS Agency
Sierra-Sacramento Valley EMS
Agency No Change
Code
Enforcement County County County
City Code Enforcement Dept
Annexed
Animal Control County County County
Northwest SPCA (Contract)
Annexed
Economic
Development County County County
City Economic Development Division
Annexed
Streets/Road
Maintenance County County County
City Public Works Dept
Annexed
Parks and
Recreation
Feather River Recreation
and Park District
Feather River
Recreation and Park
District
Feather River
Recreation and Park
District
Feather River Recreation and Park
District; (CSA 31 - Schor's / Briggs
Swimming Pool); (City Public Works)
Limited /2
Lighting
CSA 148 (Orchardcrest
Estates Street Lighting and
Landscaping District);
County; PG&E
County; PG&E County; PG&E City; PG&E
CSA
Dissolved /
Annexed /3
Stormwater
CSA 26 (Thermarlito Sewer
and Drainage District);
County
County County City of Oroville CSA Dissolved
/ Annexed /4
Wastewater
(Sewer)
CSA 26; Thermalito Water
and Sewer District; SC-OR;
Private Septic Systems
SC-OR; Private Septic
Systems
SC-OR; Private Septic
Systems
Thermalito Water and Sewer District;
SC-OR; Private Septic Systems
(Lake Oroville Area PUD)'
CSA
Dissolved /
Annexed /5
Water Thermalito Water and
Sewer District; CalWater
South Feather Water
and Power District;
CalWater
South Feather Water
and Power District;
CalWater
Thermalito Water and Sewer District;
South Feather Water and Power
District; CalWater
No Change
Solid Waste Recology Recology Recology Recology (Franchise) No Change Transportation Butte Co Assn of
Governments
Butte Co Assn of
Governments
Butte Co Assn of
Governments Butte Co Assn of Governments No Change
Gas and Electric PG&E PG&E PG&E PG&E No Change
Library County County County County No Change
Notes:
1/ For a complete disclosure of service providers, this includes some of whom (noted in parenthesis) may not service Study Areas if annexed. 2/ City Public Works Department provides some park maintenance activities in the City limits, which Butte LAFCO has suggested be consolidated 3/ CSA 148 is defunct but may also still need to be dissolved, preferably in conjunction with annexation. 4/ CSA 26 is defunct but may also still need to be dissolved, preferably in conjunction with annexation. 5/ CSA 26 is defunct but may also still need to be dissolved, preferably in conjunction with annexation.

Existing Service Providers in Study Area
72 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
18 The three Study Areas are composed of areas adjacent to City limits within the City’s SOI.

Should the City desire to proceed with annexation of any of the Study Areas, they would need to follow LAFCO’s procedures for annexation including but not limited to the payment of application fees. Annexation of the Study Areas would not require an amendment to the City’s SOI.

LAFCO policies require annexations to be consistent with the MSR and SOI. The MSR and SOI Plan of the affected agency must demonstrate that the City will provide adequate services within the time frame needed by inhabitants of the annexed area. Every annexation proposal must include a Plan for Services per Government Code Section 56653.

LAFCO’s policies for annexations require contiguity, stating that an annexed territory is not contiguous if its only connection to the annexing city is a strip of land more than 300 feet long and 200 feet wide (width exclusive of roadways). The existing conditions of Thermalito do not comply with LAFCO’s contiguity requirement for new annexations.

LAFCO’s policies require that the Commission determines that the annexing agency possesses the capability to provide the most efficient delivery of applicable services for the annexed population. The most efficient services are determined to be the services that are provided at the optimum combination of service cost and service level. Factors that are considered when assessing the most efficient services include physical accessibility to the territory, the agency’s possession of or ability to acquire resources necessary to provide the needed service, the agency’s historic service provision effectiveness and efficiency, the appropriateness of the agency’s organizational structure to meet service needs, the legislative policy established in Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (“CKH”) to favor consolidation of services in a single multi-service provider, and the effect on alternative service providers.

Annexations by cities shall reflect logical allocation of streets and right of way, meaning that the city shall reasonably assume the burden of providing adequate roads to the property within the annexed area. LAFCO’s policies also specify a preference for streets and rights-ofway to be placed in the same jurisdiction as the adjacent properties. The existing conditions of Thermalito do not comply with LAFCOs policies regarding city annexation of public streets.

LAFCO will adjust annexation boundaries to capture urban areas and avoid piece-meal annexations. Additionally, CKH requires cities to pre-zone territory prior to annexation.

If the City proceeds with annexation of any of the Study Areas, RSG anticipates that the annexations may be decided at the ballot. CKH Section 57091 states that LAFCO must order the annexation subject to an election if the annexation includes inhabited territories where at least 25 percent of registered voters or landowners representing at least 25 percent of assessed value in the affected territory file written protests. If written protests exceed 50 percent, annexation proceedings are terminated. If protests are below 25 percent, the annexation may proceed without an election.
73 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
19 PURPOSE OF THIS STUDY
Butte LAFCO most recently prepared a Municipal Service Review (“MSR”) in 2024 for the City of Oroville and last updated the City’s SOI in 2014. According to the MSR, the City’s SOI is approximately 41 square miles and is larger than the City’s corporate boundary, which is about 13.9 square miles. The City’s recent growth has focused on newly annexed areas, influenced by housing affordability, and the influx of residents displaced by the Camp Fire that occurred in 2018. As indicated in the MSR, growth in Oroville is projected to moderate through 2040.

LAFCO’s staff report accompanying the MSR (April 23, 2024) indicated that the “Thermalito area continues to be an area of interest for future development, and the City is in the process of developing a plan for annexation of the area.” The MSR also found that several developed areas outside the City’s boundaries include low-income and minority populations, and prioritizing annexation of these communities would promote greater social equity and create a more cohesive and efficient boundary. The MSR stated that LAFCO would review future annexation proposals for vacant or underdeveloped territory in the context of an overall annexation strategy that includes incorporating existing fringe communities2 and island areas3 (Determination 3-15). LAFCO suggested that the City develop a comprehensive annexation plan to provide guidance regarding future annexation intentions to City staff, LAFCO, other affected agencies, and the public residing within the Oroville SOI (Determination 3-16).

The MSR also identified several disadvantaged unincorporated communities (“DUCs”), as defined in Government Code Section 56033.5 within Oroville’s SOI. The majority of the Thermalito Study Area overlaps the Thermalito DUC (LAFCO DUC ID #1). A portion of the Rio d’Oro Study Area boundary is adjacent to the Lone Tree Road DUC (LAFCO DUC ID #9). A portion of the Lincoln-Ophir Study Area overlaps the Lincoln Boulevard DUC (LAFCO DUC ID #8). Under Government Code Section 56375(a)(8)(A), LAFCO cannot approve an annexation of land larger than 10 acres when a DUC directly borders the proposed annexation area, unless (1) the City also submits an application to annex the adjacent DUC, (2) if an annexation application for the DUC had been submitted within the last 5 years, or (3) the Commission finds that a majority of the registered voters within the DUC are opposed to annexation. Butte LAFCO adopted a more restrictive DUC policy, which prohibits the Commission from approving a city annexation of a territory greater than one-half acre that is contiguous to a DUC, unless the City has also filed an application to annex the DUC. 2 The Oroville MSR does not specifically define fringe communities but discusses several areas that the City is considering for future annexation, including Thermalito, North 162, Oro Bay, Par Four Way, South Airport, and Wilbur Road.
3 The Oroville MSR does not define island areas but acknowledges that the City eliminated islands of unincorporated parcels adjacent to the City by annexing six island areas in 2012. 74 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
20 The MSR also found that the City had several key documents that were in need of updates, including the sanitary sewer services master plan, master drainage plan, climate action plan, comprehensive roadway condition assessment, pavement management plan, annexation plan, vacant parcel inventory, and a related absorption study, airport master plan, and airport capital improvement plan. Prior to submitting a request for sphere of influence expansion, the City should consider updating or compiling the abovementioned plans.

METHODOLOGY
This section provides an overview of RSG’s approach to assessing the potential annexation of the Study Areas. This Study was based on information from the following sources:
• Consultation with City staff, Butte County staff, and Butte LAFCO; • City of Oroville Municipal Service Review, adopted May 2, 2024, prepared by Butte LAFCO;
• Certified Values, AB8 Reports, and the 2025-26 Tax Roll, prepared by the Butte County Auditor Controller;
• Post Camp Fire Regional Growth Forecasts, dated January 21, 2021, prepared by Butte County Association of Governments;
• City of Oroville Adopted Budget 2024-25 and 2025-26, prepared by the City of Oroville; • Annexation Strategy, prepared by the City of Oroville; and • Agreement Between Butte County and It’s Cities Regarding The Negotiated Exchange of Property Tax Revenues Relating to Jurisdictional Changes (In Accordance with Revenue and Taxation Code Section 99 Added by Chapter 282 Statutes of 1979 and Amended by Chapter 1161 of the Statutes of 1979 (Agreement Amended January 31, 1980) On June 17, 2025, the City Council authorized City staff to engage RSG to study the feasibility of annexation of several Study Areas. The original Study Areas were identified by City staff based on discussions with property owners and Butte LAFCO to facilitate development of the Study Areas. At the time, City staff identified five potential Study Areas, including areas known as Long Bar, Rio d’Oro, Oro Bay, Thermalito, and Lincoln-Ophir. The City identified three potential boundaries for the Thermalito Study Area, and a fourth potential Thermalito Study Area boundary capturing the entirety of Thermalito remained an option. A large portion of the Oro Bay Study Area is outside of the City’s SOI. City staff later identified a sixth potential Study Area known as North Table Mountain.

In July, 2025, RSG met with City staff and performed a windshield survey of the five original Study Areas. In August and September 2025, RSG worked with City staff to determine which Thermalito Study Area boundary to analyze as part of this Study. In October 2025, RSG reviewed the potential Study Areas with LAFCO staff.
75 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
21 Based on feedback from LAFCO, RSG and City staff identified three Study Areas that are entirely within the City’s SOI and are most likely to be viewed favorably by LAFCO. LAFCO staff also indicated that without meaningful progress towards annexing Thermalito, the Commission is unlikely to move forward with any other annexations.

The exception is the Lincoln-Ophir Study Area, which LAFCO identified as primarily economic development related. LAFCO staff indicated that the Lincoln-Ophir Study Area may move forward without any progress towards annexation of the Thermalito area. RSG and City staff determined that proceeding with analysis of the Thermalito, Rio d’Oro, and Lincoln-Ophir Study Areas was the best approach. LAFCO staff noted that commercial and industrial annexations may present different policy considerations than residential expansions. However, no formal determination has been made by the Commission regarding the appropriateness of annexation sequencing.

RSG’s work entailed compiling data from various sources to understand the physical, economic, and demographic character of the Study Areas and formulate a basis for developing assumptions and estimates of recurring General Fund impacts. Using best practices, RSG then developed estimates of revenues and expenditures for a 10-year period, assuming LAFCO approves the annexation by July 1, 2027 and the annexation is effective one year later on July 1, 2028. Annexation efforts typically take between 18 and 24 months to be completed and signed by LAFCO once formally initiated by a City, due to environmental review, local agency reviews, prescribed tolling periods, special election requirements, and time for public input.

RSG utilized Geographic Information System (GIS) data from Butte County to determine the Study Area boundaries based on existing parcel boundaries. RSG’s analysis is generally based on the change in population as a result of the annexation of each Study Area, and the City’s General Fund revenues and expenditures per capita. The exception is property tax, which RSG estimated based on existing assessed values and the prescribed share of property tax that the City would receive under an existing Master Property Tax Exchange Agreement.

IMPORTANT: Figures presented in this study are presented in current (2026) dollars so that the conclusions may be compared to current City General Fund revenues and expenditures.

STUDY AREA GROWTH FORECAST
Except for the Thermalito Study Area, the majority of the Study Area includes land for future development which will experience higher service demands when that occurs. To account for these impacts, RSG coordinated with City staff to understand proposed future developments in each of the Study Areas. Using this information, RSG developed a growth forecast for each Study Area based on the anticipated development projects. The proposed developments are described below:
• The Thermalito Study Area includes at least two vacant parcels that may be developed with residential uses. According to the City, the two parcels combined may be developed with 76 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
22 up to 250 total units. RSG assumed that these developments would take place over two years, or about 125 units per year.
• The Rio d’Oro Study Area includes the existing Butte County Rio d’Oro Specific Plan. The Specific Plan includes about 689 acres between Highway 70 and the Feather River. The City indicates that the Specific Plan area may include up to 2,700 new homes. RSG anticipated that the developer would build about 100 homes per year, beginning in 2030. • The Lincoln-Ophir Study Area includes several existing commercial and industrial businesses as well as several commercial development opportunity sites. Approximately 101 acres in the Lincoln-Ophir Study Area are vacant. Most of the vacant land in the Lincoln-Ophir Study Area is in the County’s Heavy Industrial zoning code. The City’s M-2 Zoning Code permits development of up to 0.4 floor area ratio (“FAR”). RSG assumed that 10 percent of the undeveloped land would be developed at 0.2 FAR over ten years beginning in 2030, resulting in about 8,800 square feet of new commercial or industrial space per year, or a total of 88,000 total square feet of commercial and industrial space in the Study Area by 2040. For comparison, the existing Setzer Forest Products mill on Kusel Road in the Lincoln-Ophir Study Area is an estimated 140,000 square feet. Providing municipal services to the Lincoln-Ophir Study Area may encourage more commercial and industrial development in the area, and RSG considers the development forecast for the Lincoln-Ophir Study Area to be conservative.

RSG utilized the anticipated developments to create development forecasts for each Study Area. Figure 9 illustrates the number of projected units built and the resulting population occupying the new units for each Study Area. The Lincoln-Ophir Study Area does not include any anticipated residential developments; therefore, the commercial and industrial development does not result in any population change in the Lincoln-Ophir Study Area.

Figure 9: Construction Forecast, Study Area
Lincoln / Ophir
Year
Total New
Units
Projected
Cumulative
Residents
Total Units
Projected
Cumulative
Residents
Total Commercial
Sq Ft Projected
2026 0 0 0 0 0
2027 0 0 0 0 0
2028 0 0 0 0 0
2029 125 0 0 0 0
2030 125 0 100 0 8,804
2031 0 0 100 53 8,804
2032 0 160 100 234 8,804
2033 0 480 100 490 8,804
2034 0 639 100 746 8,804
2035 0 639 100 1,002 8,804
Thermalito Rio d'Oro
77 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
23 Based on conservative assumptions of household occupancy for each type of unit, RSG estimates that the total population of the Thermalito Study Area would increase by 639 residents upon completion and stabilized occupancy of the anticipated development projects, and the Rio d’Oro Study Area would add about 1,002 residents by 2035. These growth assumptions are incorporated into our revenue and expenditures forecast. The Lincoln-Ophir Study Area is not expected to add any residential development, but RSG forecasted about 8,800 square feet of non-residential space per year beginning in 2030.

To evaluate long-term service demand and revenue impacts, RSG developed a buildout forecast for each Study Area based on the timing and intensity of anticipated development.

RSG relied on discussions with City staff, adopted Specific Plans, zoning designations, and the development capacity of vacant parcels to estimate the pace of construction and the ultimate buildout potential. For each Study Area, RSG applied conservative but reasonable absorption rates—such as two years of residential buildout in the Thermalito Study Area, a 27-year absorption period for the Rio d’Oro Specific Plan, and a phased ten-year non-residential buildout in the Lincoln-Ophir Study Area. These assumptions establish a long-range forecast horizon that captures both near-term growth and the full buildout of planned development.

RSG incorporated these long-term growth assumptions into the revenue and expenditure model to ensure the financial forecast reflects how service demands evolve as development occurs over time. [address long term / buildout forecast methodology]

MASTER PROPERTY TAX EXCHANGE AGREEMENT
Under Article XIIIA of the California Constitution and Section 99 of the Revenue and Taxation Code, cities and counties must agree on how property tax revenues will be shared when jurisdictional boundaries change, such as through annexations. This requirement ensures that local agencies maintain the ability to provide services despite changes in tax base distribution.

Typically, these agreements are established in one of two ways:

1. Negotiating property tax exchanges on a case-by-case basis for each annexation, or

2. Entering into a master property tax exchange agreement that applies broadly to most annexations.

In this instance, Butte County and the cities of Biggs, Chico, Gridley, and Oroville entered into a Master Property Tax Exchange Agreement in 1980 (“Master Property Tax Exchange Agreement”). The Master Property Tax Exchange Agreement sets fixed allocation ratios for property taxes generated within annexed areas based on historical shares prior to Proposition

13. For example, when property is annexed to Oroville, the property tax revenue split will be 42% to the County and 58% to the City. The Master Property Tax Exchange Agreement also provides for renegotiation under certain conditions and excludes changes that significantly impact non-property tax revenues, which must be addressed separately.

78 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
24 Property Tax Split
Under the Master Property Tax Exchange Agreement, the City receives 58 percent of the County’s property tax share, and the County receives the remaining 42 percent of the County’s property tax share. The exchange takes effect in a fiscal year if the annexation is fully completed and filed with the State Board of Equalization before January 1 of the preceding fiscal year.

Exceptions and Applicability of the Agreement
The Master Property Tax Exchange Agreement generally applies to all annexations by the City.

The agreement stipulates one exception where the parties are expected to negotiate an exchange of taxes outside of the framework of the Master Property Tax Exchange Agreement.

If a boundary change significantly affects the non-property tax revenues and impairs the ability of the city or county to provide essential services, the property tax exchange will be subject to separate negotiations.

Because the highest total assessed value among the Study Areas is about $66.6 million in the Thermalito Study Area, representing about 0.2 percent of Countywide assessed value, RSG assumed that the material impact clause of the Master Property Tax Exchange Agreement would not apply to the annexation of any of the three Study Areas.

Analysis of the Master Property Tax Exchange Agreement
When AB8 passed, the County separated out shares for County General, Welfare, Library, and Fire services in every tax rate area. According to the County Auditor-Controller, the County consolidates the County’s General, Welfare, Library, and Fire shares for the purposes of annexation. The County’s Fire share was not present in the Study Areas. The estimated apportionment factors are prior to any shifts related to the Educational Revenue Augmentation Fund (“ERAF”). RSG coordinated with the County to estimate the property tax revenues net of ERAF shifts, which are presented later in this Study.

The County’s share of property tax in the Study Areas ranges from about 23.5 to 24.4 percent of property tax. If annexed to the City, the County’s share of property tax would be split according to the Master Property Tax Exchange Agreement, meaning the City’s share of property tax in each of the Study Areas would range from about 13.2 to 14.0 percent. 79 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
25 Figure 10: Existing County Share and City Share Under Master Property Tax Exchange Agreement
The City’s estimated share of property taxes within the City’s existing corporate boundary is about 25.6 percent. In each of the three Study Areas, the City’s share of property taxes would be slightly more than half of the share of property taxes in the City.

Base Tax Thermalito Rio d'Oro LincolnOphir
County General 0.1578970 0.1614776 0.1524931
County General (W) 0.0606452 0.0620213 0.0585702
County General (L) 0.0167519 0.0171319 0.0161788
Total County Share 0.2352941 0.2406308 0.2272422
Share of County GF 58% 58% 58%
Total City Share 0.1364706 0.1395659 0.1318004
Source: Butte County Auditor-Controller, RSG
Study Area Detail
80 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
26 ANALYSIS AND FINDINGS
Based on the assumptions described herein, RSG prepared two forecasts of fiscal impacts on the City General Fund

1. A 10-year forecast of revenues and expenditures for the General Fund, as presented in Appendix 2: Study Area General Fund Fiscal Impact on page 34, and

2. A similar forecast upon full buildout of the Study Areas, as presented in Appendix 3: Study Area General Fund Fiscal Impact Upon Buildout on page 36.

GENERAL FUND REVENUES
The 2025-26 City Budgeted General Fund anticipated revenues totaling nearly $27.3 million, inclusive of revenues derived from property, sales and use, Measure U transactions and use, other taxes, licenses, fees, and other revenues. RSG described the approach to estimated General Fund revenues in the following sections.

TAXES
Annexation would increase the amount of property taxes, sales taxes, Measure U transactions and use taxes, business license taxes, franchise fees, Transient Occupancy Tax (TOT), and utility user taxes collected by the City. Overall, RSG estimates that the annexation of the three Study Areas may increase General Fund revenues by $610,000 (2.2 percent) over projected City taxes in 2025-26.

Property Taxes
Within the Study Areas, property taxes consist of taxes transferred from the County’s 1 percent property tax to the City under the Master Property Tax Exchange Agreement, based on the current assessed value in the Study Areas, and a forecast of incremental growth of assessed values in the Study Areas.

The current share of property taxes collected by the County General Fund, including the Welfare, Library, and Fire shares, were calculated based on 2024-25 general levy shares for each of the seven (7) tax rate areas within the Thermalito Study Area, two (2) tax rate areas within the Rio d’Oro Study Area, and five (5) tax rate areas within the Lincoln-Ophir Study Area.

Figure 11 shows a breakdown of tax rate areas weighted by the 2025-26 assessed value for each Study Area. The County General Fund shares range from 23.5 to 24.4 percent, a portion (58 percent) of which would be reallocated to the City upon annexation pursuant to the Master Property Tax Exchange Agreement.
81 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
27 Figure 11: Study Area Existing Property Tax Shares, 2024-25 Assessed values were based on current (2025-26) secured and unsecured assessed values for each Study Area. The total secured assessed value for each Study Area is presented below:
• Thermalito Study Area: $66,376,006
• Rio d’Oro Study Area: $25,024,721
• Lincoln-Ophir Study Area: $10,679,758
As presented on page 42 (Appendix 1: Study Area Assessed Value Forecast), RSG projected future assessed values based on an assumed year-over-year growth rate and new construction. RSG assumed a 2.0 percent annual growth rate in future assessed values.

Additionally, RSG included additional assessed value resulting from the anticipated new development (reflected in Figure 9) in each Study Area.

Under the Master Property Tax Exchange Agreement, the City would receive 58 percent of the County General Fund share of property taxes. This effectively means the City would receive about 13.6 percent of the 1 percent County property tax in the Thermalito Study Area, about

13.9 percent of 1 percent of assessed value in the Rio d’Oro Study Area, and about 13.6 percent of 1 percent of assessed value in the Lincoln-Ophir Study Area, before adjusting for Educational Revenue Augmentation Fund (“ERAF”) shifts.

The State of California introduced ERAF in 1992 as a method of shifted funding around to meet its obligations to fund education at specified levels under Proposition 98. The County assisted RSG with estimating the effects of ERAF shifts. RSG utilized the County’s methodology to estimate the City share of property taxes net of ERAF in each of the Study Areas.

Weighted Average Property Tax Shares by
Study Area Thermalito Rio d'Oro
LincolnOphir
General Levy AB8 Shares
County General 0.1578970 0.1614776 0.1524931
County General (W) 0.0606452 0.0620213 0.0585702
County General (L) 0.0167519 0.0171319 0.0161788
Subtotal County General 0.2352941 0.2406308 0.2272422
Oroville Cemetery District 0.0145231 0.0148530 0.0140266 Butte County Mosquito Abatement District 0.0117467 0.0164014 0.0154886 Feather River Recreation and Park District 0.0512847 0.0524477 0.0495293 Thermalito Union Elementary School District 0.3217296 - - Oroville Union High School District 0.2406407 0.2460998 0.2324060 Butte County Schools 0.0480660 0.0491570 0.0464213
Butte-Glenn Community College District 0.0767151 0.0784557 0.0740899 Oroville City Elementary School District - 0.1194418 0.0619166 Palermo Union Elementary School District - 0.1825129 0.2486831 South Feather Water and Power Agency - - 0.0301963
Total 1.0000000 1.0000000 1.0000000
Source: Butte County Auditor-Controller
82 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
28 Under the Master Property Tax Exchange Agreement, RSG estimates the City could collect approximately about $54,000 in new property taxes in the first fiscal year if it moves forward with annexation of the Thermalito Study Area, about $23,000 in new property taxes in the first fiscal year if it moves forward with annexation of the Rio d’Oro Study Area, and almost $15,000 in new property taxes in the first fiscal year if it moves forward with annexation of the LincolnOphir Study Area. Figure 12 presents the forecasted assessed value and the estimated property tax collections for each Study Area in the first full fiscal year, after ten years of annexation and buildout following annexation.

Figure 12: Property Tax Revenues
The City’s property tax revenues would increase by 1.2 percent following annexation of the Thermalito Study Area, 0.5 percent following annexation of the Rio d’Oro Study Area, and 0.3 percent following annexation of the Lincoln-Ophir Study Area. In total, annexation of the three Study Areas would increase the City’s property tax revenues by approximately $92,000 in the first fiscal year after annexation, which represents a 2.0 percent increase in property tax revenues for the City. In Year 10, all the Study Areas’ Property Taxes are expected to reach about $572,000, and after the buildout, Property Tax revenues will be approximately $1,572,000.

Sales and Use Taxes
The Thermalito and Lincoln-Ophir Study Areas do not contain a material amount of businesses that would generate new taxable retail sales, and generally, annexations do not alter where residents inside or outside the City shop. Therefore, RSG expects limited impacts on sales taxes due to annexation; these impacts would be associated with the new demand created by additional growth of households and employees as the Study Area develops in the future. In the Rio d’Oro Study Area, the ESRI Business Locator Report identifies 32 businesses; therefore, RSG estimates that these businesses would generate sales tax revenue if annexed into the City. We have described our methodology below.

The City’s one percent share of the Bradley-Burns sales and use tax is generated from sales of taxable goods within the Study Areas. The City’s 2025-26 Budget anticipates revenues from sales and use tax to be approximately $5,320,000. The current population in the City is estimated to be 19,404 persons, which means that sales tax revenues are about $46 per capita per year. RSG used this per capita figure to project the approximate increase in taxable sales due to future development in each of the Study Areas. For the Rio d’Oro Study Area, RSG City Property
Tax Share
Total Assessed
Value
Property
Tax
City Property
Tax Share
Total Assessed
Value
Property
Tax
City Property
Tax Share
Total Assessed
Value
Property
Tax
Year 1 8.1% $ 66,574,765 $ 53,984 8.3% $ 27,923,455 $ 23,156 7.8% $ 19,261,609 $ 15,084 Year 10 8.1% 216,574,765 175,617 8.3% 442,923,455 367,306 7.8% 37,750,738 29,564 Buildout 8.1% $ 216,574,765 $ 175,617 8.3% $ 1,647,923,455 $1,366,585 6.5% $ 45,674,651 $ 29,564 Study Area Detail
Thermalito Rio d'Oro Lincoln-Ophir
83 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
29 compiled business data using the ESRI Business Locator Report and identified each business’s estimated sales revenue and industry classification. Based on these factors, RSG estimated the portion of sales that would be taxable and calculated the associated sales tax revenue. The sales tax generated by existing businesses was then combined with the projected sales tax associated with future population growth to estimate the total potential sales tax revenue for the Study Area.

Based on these assumptions, RSG estimates that no sales and use tax revenue would be generated in the first fiscal year following annexation for the Thermalito and Lincoln-Ophir Study Areas. Sales tax revenues are expected to materialize gradually as development occurs.

Figure 13: Sales and Use Tax
As shown in Figure 13 above, by Year 10 after annexation, RSG estimates annual sales and use tax revenues of approximately $30,000 in the Thermalito Study Area, $142,000 in the Rio d’Oro Study Area, and $100 in the Lincoln-Ophir Study Area. At full buildout, annual sales and use tax revenues are estimated to reach approximately $30,000 in Thermalito, $424,000 in Rio d’Oro, and $100 in Lincoln-Ophir.

Based on RSG’s estimates, if all three Study Areas were annexed to the City simultaneously, the City’s sales tax revenue would increase by about $172,000 by Year 10, or about a 3.2 percent increase over the City’s budgeted 2025-26 sales tax revenues. At buildout, all three study areas will generate around $454,000 tax revenues.

District Sales Tax – Measure U Transactions and Use Tax In November 2018, a majority of Oroville voters approved Measure U, which added general purpose transactions and use tax of 1 percent on gross receipts derived from sales of tangible personal property sold within the City. Measure U does not have a sunset date, meaning that it would remain in place until repealed by voters. The City deposits revenues generated by Measure U are deposited into the General Fund to pay for operations and services, including law enforcement, fire suppression, vehicle repair and maintenance, finance department analyst, and human resources services. The City’s 2025-26 Budget projected revenues from Measure U to be approximately $6.6 million. The City Budget accounts for revenues and expenditures associated with Measure U separately from the General Fund, but for the purpose of this Study, RSG treated Measure U revenues as part of the General Fund.

Population Sales &
Use Tax/1 Population Sales & Use Tax/1 Population Sales & Use Tax/1 Year 1 1,081 $ - 221 $ 102,010 11 $ -
Year 10 1,732 29,809 1,093 141,918 14 142
Buildout 1,732 $ 29,809 7,252 $ 423,827 14 $ 142
1/ Figures include new taxes from new resident spending plus taxes from existing businesses as explained in narrative.

Thermalito Rio d'Oro Lincoln-Ophir
Study Area Detail
84 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
30 Under the Court’s interpretation of Proposition 218 in Citizens Assn. of Sunset Beach v.

Orange County LAFCO (2012) 209 Cal. App. 4th 1182, 1195, the extension of this existing tax does not require approval by Study Area voters, but LAFCO would be expected to make the extension of the tax into the Study Area part of the terms and conditions for an annexation request.

RSG estimated Measure U transactions and use tax revenues using a methodology similar to the approach applied for the Bradley-Burns sales and use tax. For the Thermalito and Lincoln– Ophir Study Areas, increases in Measure U revenue are projected based on future population growth associated with new development, as it is assumed that existing residents within the Study Areas would not change their shopping patterns solely due to annexation. For the Rio d’Oro Study Area, RSG also considered the presence of 32 existing businesses identified through the ESRI Business Locator Report. Measure U tax revenue was therefore estimated based on the taxable sales generated by these businesses, in addition to potential increases associated with future population growth and development. This approach is consistent with the methodology used in the sales tax analysis.

Figure 14: Measure U Transactions and Use Tax
According to Figure 14, by Year 10 after annexation, RSG estimates annual Measure U revenues of approximately $37,000 in the Thermalito Study Area, $102,000 in the Rio d’Oro Study Area, and $200 in the Lincoln-Ophir Study Area. At full buildout, annual Measure U revenues are projected to reach approximately $37,000 in Thermalito, $151,000 in Rio d’Oro, and $200 in Lincoln-Ophir.

If the City annexed all three Study Areas simultaneously, the extension of the Measure U transaction and use tax would generate about $188,000 revenues in Year 10, which would represent an increase of about 2.9 percent compared to the City’s 2025-26 Measure U revenues. At buildout, all study areas would generate about $537,000 in revenue.

Property Tax in-lieu of Vehicle License Fee Swap
Established in 1935, the Motor Vehicle License Fee (“VLF”) was essentially a tax on vehicle ownership. The State of California (“State”) collects VLF annually when vehicles are registered, Population Measure U
& Use Tax/1 Population Measure U & Use Tax/1 Population Measure U & Use Tax/1 Year 1 1,081 $ - 221 $ 102,010 11 $ -
Year 10 1,732 36,879 1,093 151,384 14 175
Buildout 1,732 $ 36,879 7,252 $ 500,157 14 $ 175
1/ Figures include new taxes from new resident spending plus taxes from existing businesses as explained in narrative.

Study Area Detail
Thermalito Rio d'Oro Lincoln-Ophir
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31 and the revenues were historically allocated to cities and counties based on a statutory formula.

In 2004, during the State’s budget crisis, each city’s VLF revenue was replaced with property tax revenue, and cities began to receive an allocation of property tax from the Educational Revenue Augmentation Fund (“ERAF”) in an amount equal to what they would have received in VLF under the VLF allocation formula. Under current law, the property tax in-lieu of VLF (“PTIL”) revenue increases based on assessed value growth in a jurisdiction, however, this revenue source is not applicable to annexations or incorporations. The California Legislature approved AB 1602 in 2006 (which was later undone by SB 89 in 2011) and SB 130 in 2017 which partially addressed the issue restoring property tax in-lieu of VLF revenues for new incorporations and annexations. Still, SB 130 was a targeted solution, addressing fiscal challenges in recently incorporated cities, rather than a systemic reconfiguration, and leaves property tax in-lieu of VLF unresolved for future annexations and incorporations, barring additional special legislation.

Because state law does not provide a formula that allows cities to capture additional property taxes in-lieu VLF from annexed territory, RSG did not include any revenues derived from property tax in-lieu of vehicle license fees in the forecast.

In 2023-24, the City collected about $1.7 million in PTIL, which represented about 6.9 percent of the City’s total tax revenues ($24.0 million).4 The last attempt to provide PTIL to annexing cities was Assembly Bill 213 (Reyes, 2019), which failed. RSG is not aware of any similar bills proposed for the current Legislative session. Given the failed attempts to restore PTIL and the well-documented State budget health, RSG is not confident that this funding source will be restored for cities annexing territories in the future.

Transient Occupancy Tax
The City levies a Transient Occupancy Tax at a rate of 9 percent on the rent charged for the occupancy of hotels, motels, and other short-term lodging establishments. The City’s FY 2025– 26 Budget includes approximately $788,000 in revenues from TOT and other taxes.

RSG did not estimate any Transient Occupancy Tax revenue for the Thermalito and Lincoln– Ophir Study Areas, as neither area contains hotels, motels, or other short-term lodging uses that would generate TOT following annexation.

In contrast, the Rio d’Oro Study Area includes two RV park establishments identified through the ESRI Business Locator Report—Dingerville USA and River Reflections RV Resort & Campground. Based on publicly available information, these facilities provide approximately 52 spaces and 91 spaces, respectively. Using estimated nightly rates of $36 and $65, an assumed 15 percent occupancy rate, and 365 days of operation, RSG 4 Source: California State Controller’s Office. Note: The City Budget does not account for PTIL separately. RSG relied on the California State Controller’s Office to provide an estimate of PTIL as a share of the City’s total tax revenues.
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32 estimates that these uses could generate approximately $38,000 in annual TOT revenue upon annexation, representing about 4.8 percent of the City’s FY 2025–26 TOT and other tax revenues.

Alternatively, based on ESRI’s business revenue estimates, TOT generation could reach approximately $48,000 annually in the first year of annexation, accounting for about 6.0 percent of the City’s FY 2025–26 TOT and other tax revenues.

Utility User Tax
The City levies a utility user tax based on 5 percent of the total charge of electrical, gas, and water bills. The City also has a 4.5 percent communication service tax, levied on the use of communication services. The City’s 2025-26 Budget includes approximately $2,922,000 in utility user tax revenues.

Using the City’s projected utility user tax revenues for 2025-26, RSG calculated the per capita utility user tax revenues of $139. Based on the estimated population of each Study Area, RSG determined that the Thermalito Study Area would generate about $150,000 in utility user tax revenues in Year 1, $240,000 in both Year 10 and at buildout. The Rio d’Oro Study Area would generate approximately $31,000 in utility user tax revenues in Year 1, $152,000 in Year 10, and $1.0 million at full buildout. The Lincoln-Ophir Study Area would regenerate about $2,000 in utility user tax revenues in Year 1, $2,000 in Year 10 and at buildout.

Figure 15 summarizes RSG’s forecasted utility user tax revenues for each Study Area.

Figure 15: Utility User Tax Revenues
Other General Fund Revenues
The City generates General Fund revenues from franchise fees, transient occupancy taxes, other taxes, license, permits, fines, and forfeitures. In 2025-26, the City projected revenues from franchise fees would be approximately $1,210,000, or about $61 per capita. The City estimates revenues from transient occupancy taxes and other taxes to be approximately $843,000. The City’s 2025-26 Budget includes about $509,000 derived from permit fees, $80,000 attributed to licenses, and about $28,000 related to fines and forfeitures. RSG estimated permit revenues at $26 per capita, license revenues at $4 per capita, and fines and forfeitures revenues at about $1 per capita.

Population Utility User
Tax Population Utility User Tax Population Utility User Tax Year 1 1,081 $ 150,080 221 $ 30,682 11 $ 1,527
Year 10 1,732 240,497 1,093 151,734 14 1,957
Buildout 1,732 $ 240,497 7,252 $ 1,006,830 14 $ 1,957
Study Area Detail
Thermalito Rio d'Oro Lincoln-Ophir
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33 Based on the projected Study Area population, RSG estimates that annexation of the Thermalito Study Area could generate approximately $11,000 in other General Fund revenues in the initial year. By Year 10, these revenues are projected to increase to about $17,000 and are expected to remain at approximately $17,000 at buildout. If the City were to annex the Rio d’Oro Study Area, other General Fund revenues are estimated to increase by approximately $3,000 initially. After ten years, revenues are projected to reach about $58,000 and are expected to increase further to approximately $72,000 at buildout. Annexation of the Lincoln-Ophir Study Area is expected to result in a minimal increase in other General Fund revenues, estimated at approximately $100 initially. By Year 10, revenues are projected to increase to about $4,000, before declining to approximately $100 at buildout.

Figure 16 summarizes RSG’s forecasted other General Fund revenues for each Study Area.

Figure 16: Other General Fund Revenue

OTHER REVENUES
RSG does not anticipate other significant increases in net General Fund revenues from annexation in the forecast. Specifically, RSG did not adjust for the potential impact to the City’s revenues associated with interest, rents, concessions, intergovernmental revenues, charges for services, other revenues, or operating transfers in.

GENERAL FUND EXPENDITURES
• The City’s 2025-26 budget projected General Fund expenditures of approximately $27.6 million. Police Department expenditures totaled approximately $9.5 million, or about 35 percent of all General Fund expenses, while Fire Department expenditures represented the second largest departmental expenditures at about $7.1 million, or about 26 percent of General Fund expenses.
• If annexed, the Study Areas may increase General Fund expenditures by a combined estimated $1.1 million, or 4 percent; after ten years of annexation, all three study areas’ General Fund expenditures will be about $2.4 million, and after full buildout, the expenditure is expected to reach around $7.2 million.
• To estimate General Fund expenditures, RSG reviewed the City’s General Fund expenditure categories and determined which expenditures would be variable based on the annexation, and which costs would likely be unchanged. For example, RSG does not Population Other General
Fund Revenue Population Other General Fund Revenue Population Other General Fund Revenue Year 1 1,081 $ 10,729 221 $ 2,728 11 $ 122
Year 10 1,732 17,111 1,093 58,318 14 4,323
Buildout 1,732 $ 17,111 7,252 $ 71,633 14 $ 139
Study Area Detail
Thermalito Rio d'Oro Lincoln-Ophir
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34 anticipate expenditures associated with City Administrator or City Attorney services to be directly affected by the annexation of the Study Areas. On the other hand, law enforcement and fire protection services are likely to scale proportional to population growth. RSG prepared a General Fund expenditure forecast for each Study Area, presented on page 34 (Appendix 2: Study Area General Fund Fiscal Impact).

GENERAL GOVERNMENT
General Government expenses include incremental cost increases in the City Clerk division for biennial elections in even numbered years and miscellaneous costs for supplies and services in the division. No recurring personnel or capital costs are anticipated as a result of annexation. Although excluded from our estimates, the City would realize one-time costs for legal, management, and City Council to modify Council district boundaries and establish or modify contracts for services in an annexed area.

Total additional General Government expenditures in the first year of annexation may be approximately $9,000 if all three Study Areas are annexed, excluding costs for modifying Council district boundaries and establishing or modifying contracts for services in annexed areas. After ten years of annexation, all three study areas’ General Government expense is going to be around $19,000, and after the full buildout, the expenditure will be about $59,000.

Figure 17 summarizes RSG’s forecasted General Government expenditure for each Study Area.

Figure 17: General Government Expenditure

ADMINISTRATIVE SERVICES
The City’s Administrative Services Department is responsible for providing all levels of service to the City’s operations, including accounting, financial management, financial reporting, budget preparation, payroll, billing, vendor payments, human resources, information technology, and risk management. RSG estimated incremental costs for two divisions of the Department if the City annexed the Study Areas: finance and risk management. RSG does not anticipate changes to expenditures associated with human resources and information technology as a result of the annexation. All cost increases reflected operational expenses projected based on per capita figures computed from the 2025-26 City budget.

Population General
Government Population General Government Population General Government Year 1 1,081 $ 7,109 221 $ 1,453 11 $ 72
Year 10 1,732 11,391 1,093 7,187 14 93
Buildout 1,732 $ 11,391 7,252 $ 47,690 14 $ 93
Thermalito Rio d'Oro Lincoln-Ophir
Study Area Detail
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35 Figure 18 presents anticipated Administrative Services Department expenditures following the annexation of each Study Area.

Figure 18: Finance and Risk Management Expenditures
If the City annexes the Thermalito Study Area, Finance expenditures are projected to total approximately $18,000 and Risk Management expenditures approximately $46,000 in Year 1.

By Year 10, Finance costs are expected to increase to about $29,000, while Risk Management costs would increase to approximately $74,000. At buildout, expenditures are projected to remain at approximately $29,000 for Finance and $74,000 for Risk Management annually.

Annexation of the Rio d’Oro Study Area would result in estimated Finance expenditures of approximately $4,000 and Risk Management expenditures of about $10,000 in Year 1. By Year 10, Finance costs are projected to increase to approximately $18,000, with Risk Management expenditures rising to about $47,000. At buildout, Finance expenditures are expected to reach approximately $119,000, and Risk Management expenditures are projected to total about $310,000 annually. If annexed, the Lincoln-Ophir Study Area is projected to generate approximately $200 in Finance expenditures and $500 in Risk Management expenditures in Year 1. By Year 10, Finance costs are expected to increase slightly to approximately $200, and Risk Management costs to about $600. At buildout, expenditures are projected to remain stable at approximately $200 for Finance and $600 for Risk Management annually.

If annexed, the Study Areas may collectively increase recurring costs in the Administrative Services Department by approximately $78,000 annually by Year 1. After ten years, the Study Areas are projected to generate approximately $168,000 in annual administrative expenses.

At full buildout, administrative costs are expected to increase by roughly $533,000 per year.

No personnel impacts are anticipated.

COMMUNITY DEVELOPMENT
RSG anticipates that expenditures associated with the Community Development Department will be partially offset by fees for services. The Community Development Department provides support and compliance with applicable Federal and State laws and regulations on Municipal Code, General Plan, development of area plans, environmental reviews, and annexations in addition to permit reviews and issuance, building inspections, zoning clearances, use permits, variances, and code compliance.

Annexation of the Thermalito Study Area is projected to increase Community Development Department expenditures by approximately $9,000 initially. After ten years, costs are expected Population Finance Risk
Management Population Finance Risk Management Population Finance Risk Management Year 1 1,081 $ 17,790 $ 46,272 221 $ 3,637 $ 9,460 11 $ 181 $ 471 Year 10 1,732 28,508 74,149 1,093 17,986 46,782 14 232 603 Buildout 1,732 $ 28,508 $ 74,149 7,252 $119,348 $ 310,422 14 $ 232 $ 603 Thermalito Rio d'Oro Lincoln-Ophir
Study Area Detail
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36 to increase by about $2,000 and are projected to reach approximately $3,000 at buildout.

Annexation of the Rio d’Oro Study Area would increase Community Development Department expenditures by approximately $3,000 initially. After ten years, expenditures are projected to rise to about $101,000 and are expected to be approximately $61,000 at buildout. Annexation of the Lincoln-Ophir Study Area is expected to result in a relatively minor increase in Community Development Department expenditures, estimated at approximately $100 initially. After ten years, costs are projected to increase to about $8,000 and are expected to drop to approximately $100 at buildout.

Figure 19 presents estimated Community Development Department expenditures resulting from the annexation of each Study Area.

Figure 19: Community Development Expenditures

CODE ENFORCEMENT
The Code Enforcement Department provides prevention, detection, investigation, and enforcement of violations of statutes or ordinances related to public health, safety, welfare, public works, business activities, consumer protection, building standards, land use, and municipal affairs. The City’s 2025-26 budgeted expenditures on Code Enforcement services are about $1.3 million.

Annexation of the Thermalito Study Area is expected to increase Code Enforcement expenditures by about $73,000. Annexation of the Rio d’Oro Study Area would increase Code Enforcement expenditures by $15,000. And annexation of the Lincoln-Ophir Study Area would increase Code Enforcement costs by $700.

Figure 20 presents RSG’s estimated code enforcement expenditures as a result of annexation of each Study Area.

Figure 20: Code Enforcement Revenues
Population Planning Population Planning Population Planning Year 1 1,081 $ 9,153 221 $ 2,906 11 $ 118
Year 10 1,732 14,508 1,093 101,185 14 8,221
Buildout 1,732 $ 14,508 7,252 $ 60,736 14 $ 118
Study Area Detail
Thermalito Rio d'Oro Lincoln-Ophir
Population Code
Enforcement Population Code Enforcement Population Code Enforcement Year 1 1,081 $ 73,131 221 $ 14,951 11 $ 744
Year 10 1,732 117,189 1,093 73,936 14 954
Buildout 1,732 $ 117,189 7,252 $ 490,604 14 $ 954
Study Area Detail
Thermalito Rio d'Oro Lincoln-Ophir
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37 If the City annexes the Thermalito Study Area, Code Enforcement revenues are projected to total approximately $73,000 in Year 1, increasing to about $117,000 by Year 10. At buildout, revenues are expected to remain stable at approximately $117,000 annually. If the City annexes the Thermalito Study Area, Code Enforcement revenues are projected to total approximately $73,000 in Year 1, increasing to about $117,000 by Year 10. At buildout, revenues are expected to remain stable at approximately $117,000 annually. If annexed, the Lincoln-Ophir Study Area is projected to generate approximately $700 in Code Enforcement revenues in Year 1, increasing slightly to about $1,000 by Year 10. Revenues at buildout are expected to remain at approximately $1,000 annually.

If the City annexed all three Study Areas simultaneously, the total impact on the Code Enforcement expenditures would be about $89,000, which would represent an increase of about 6.6 percent compared to 2025-26 Code Enforcement expenditures. After 10 years of annexation, all three Study Areas’ Code Enforcement costs will be about $192,000, and after the buildout, the cost will be around $609,000 annually.

POLICE
The City’s law enforcement services are provided by the Police division, which is a division of the Public Safety Department. The City would assume responsibility for providing law enforcement services from the Butte County Sheriff’s Department and California Highway Patrol. Presently, the Sheriff’s Department provides law enforcement services to the unincorporated areas surrounding Oroville. The California Highway Patrol provides traffic enforcement in unincorporated areas.

As mentioned earlier, the City’s Police division expenditures of about $9.5 million represents approximately 35 percent of the 2025-26 General Fund budget, with a total of 62.5 sworn and non-sworn personnel. The City’s Police division expends about $115,000 per staff person. RSG estimated the potential increase in law enforcement expenditures based on population growth resulting from the annexation of the three Study Areas.

Figure 21 presents estimated Police Department expenditures resulting from annexation of each of the Study Areas.

Figure 21: Law Enforcement Expenditures
RSG expects the annual cost increase in the first year to the Police division to be approximately $353,000 following the annexation of the Thermalito Study Area, $72,000 following annexation of the Rio d’Oro Study Area, and less than $4,000 as a result of the Lincoln-Ophir Population Police Population Police Population Police
Year 1 1,081 $ 352,606 221 $ 72,087 11 $ 3,588
Year 10 1,732 565,036 1,093 356,491 14 4,598
Buildout 1,732 $ 565,036 7,252 $ 2,365,493 14 $ 4,598
Study Area Detail
Thermalito Rio d'Oro Lincoln-Ophir
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38 Study Area annexation. The annual cost increase to the Police division in Year 10 is expected to be about $565,000 following the annexation of the Thermalito Study Area, approximately $356,000 following annexation of the Rio d’Oro Study Area, and about $5,000 as a result of the Lincoln-Ophir Study Area annexation. At buildout, RSG expects the annual cost increase to the Police division to remain approximately $565,000 for the Thermalito Study Area, increase to approximately $2,365,000 for the Rio d’Oro Study Area, and remain approximately $5,000 for the Lincoln-Ophir Study Area.

If the City annexed all three Study Areas simultaneously, RSG expects total Police expenditures to increase by about $428,000, which represents a 4.5 percent increase compared to the current police expenditures. In Year 10, all three Study Areas’ police expenditure will be about $926,000, and after buildout, the police cost will reach approximately $2,935,000.

FIRE
The City’s Fire division, a division of the Public Safety Department, represents the City’s second largest single departmental expenditure at about $7.1 million, or about 26 percent of the City’s total expenditures in 2025-26. The City contracts with CALFIRE for fire protection and emergency medical services, which is the current service provider to unincorporated portions of Butte County. RSG’s estimated
Fire division expenditures resulting from the annexation of each of the Study Areas are illustrated in Figure 22.

Figure 22: Fire Expenditures
RSG anticipates that the annexation of the Thermalito Study Area would result in an increase of expenditures of about $203,000 for fire protection and emergency medical services. The Rio d’Oro Study Area annexation would result in increased expenditures of about $42,000 for fire protection and emergency medical services, and the Lincoln-Ophir Study Area annexation would result in increased fire and emergency medical expenditures of about $2,000. By Year 10, fire protection and emergency medical service costs are projected to increase to approximately $326,000 for the Thermalito Study Area and approximately $205,000 for the Rio d’Oro Study Area. Costs associated with the Lincoln-Ophir Study Area are expected to remain modest at approximately $3,000 annually. At full buildout, annual fire and emergency medical service expenditures are projected to remain approximately $326,000for the Thermalito Study Area, increase substantially to approximately $1,363,000 for the Rio d’Oro Study Area, and remain approximately $3,000 for the Lincoln-Ophir Study Area.

Population Fire Population Fire Population Fire
Year 1 1,081 $ 203,144 221 $ 41,531 11 $ 2,067
Year 10 1,732 325,530 1,093 205,382 14 2,649
Buildout 1,732 $ 325,530 7,252 $ 1,362,812 14 $ 2,649
Study Area Detail
Thermalito Rio d'Oro Lincoln-Ophir
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39 The three Study Areas would collectively result in increased expenditures of $247,000 for fire protection and emergency medical services, roughly 3.5 percent increase to the City’s fire division expenditures. We projected the costs would grow at 2 percent annually. In Year 10, all three Study Areas’ Fire expenditures are expected to reach $534,000, and the costs will be about $1,691,000 after the full buildout.

PUBLIC WORKS
The Public Works Department provides management of engineering and capital projects, as well as maintenance, management, repairs, and improvements to the City’s streets. The Public Works Department also manages the Sewer and Airport Funds. The City’s 2025-26 Budget estimated the Public Works Department expenditures to be about $3.1 million. RSG anticipated the annexation of the Study Areas to impacts expenditures associated with public works administration, parks and trees, streets and drainage, and vehicle maintenance. RSG does not anticipate impacts to museums expenditures.

Figure 23 presents RSG’s estimated expenditures for the Public Works Department resulting from the annexation of each Study Area.

Figure 23: Public Works Expenditures
RSG estimates the annexation of the Thermalito Study Area to result in an increase to Public Works Department expenditures of about $157,000. The estimated Public Works Department expenditures resulting from the annexation of the Rio d’Oro is about $32,000 while the estimated expenditure increase from annexation of the Lincoln-Ophir Study Area is about $2,000. By Year 10, Public Works expenditures are projected to increase to approximately $252,000 for the Thermalito Study Area and approximately $159,000 for the Rio d’Oro Study Area. Costs associated with the Lincoln-Ophir Study Area are expected to remain minimal at approximately $2,000 annually. At buildout, annual Public Works expenditures are projected to remain approximately $252,000 for the Thermalito Study Area and increase to approximately $1,054,000 for the Rio d’Oro Study Area. Expenditures related to the Lincoln-Ophir Study Area are expected to remain stable at approximately $2,000 per year.

Annexation of all three Study Areas would result in an estimated expenditure increase of about $191,000, which represents about 6.1 percent increase compared to the 2025-26 Public Works Department expenditures. In Year 10, all three Study Areas’ Public Work costs will be about $413,000, and the costs are expected to reach around $1,308,000 after the buildout.

Population Public Work Population Public Work Population Public Work Year 1 1,081 $ 157,114 221 $ 32,120 11 $ 1,599
Year 10 1,732 251,768 1,093 158,845 14 2,049
Buildout 1,732 $ 251,768 7,252 $1,054,014 14 $ 2,049
Study Area Detail
Thermalito Rio d'Oro Lincoln-Ophir
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40 CAPITAL IMPROVEMENT NEEDS
RSG does note that City staff may wish to conduct a further assessment of the public infrastructure and facility needs of the Study Areas before proceeding with annexation, as this study did not investigate the extent that existing infrastructure meets the City’s standards. As mentioned on page 15, Butte LAFCO has previously expressed explicit concerns about the “significant need” for storm drainage infrastructure in the Thermalito area in their 2016 municipal services review of CSA 26, and by all appearances this matter has not yet been addressed.

The City may have additional concerns regarding existing street, curb, gutter and other infrastructure which may be cost-prohibitive and require additional funding that has not been studied by RSG. This may be particularly critical for areas that are already developed and future development may not be able to fund the costs of infrastructure replacement. In these cases, the cost of such infrastructure may be passed on to existing residents and property owners; the registered voters in these developed areas would ultimately have the final vote on such assessments and whether such infrastructure costs can be paid and completed pursuant to Proposition 218.

In areas that are less inhabited, the process to approve assessments for infrastructure investment instead is up to property owners and developers under Proposition 218. Generally, developers tend to be more supportive of assessments because they are essential for building infrastructure to serve their communities, and the assessments are passed onto future residents and property owners. To the extent that future development will required major infrastructure investment and the City, if it proceeds with annexation of such areas, will need to work with developers of these areas to prepare a viable financing plan for the construction and potentially the maintenance of such infrastructure, to protect the City from unknown and likely extensive future cost liabilities.
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41 CONCLUSIONS
After the first year of the annexation of the Lincoln-Ophir Study Area is expected to generate a small fiscal surplus ($9,000) for the City, and after ten years of annexation, the study area will generate $18,000 of surplus, and after the full buildout, it will generate about $21,000 of surplus. Following annexation, the Rio d’Oro Study Area is projected to generate a fiscal surplus of approximately $133,000 in the first year. By year ten, the annual surplus is expected to moderate to approximately $3,260. However, under full buildout conditions, the Study Area is projected to result in a fiscal deficit of approximately $2.0 million for the City. While the Thermalito are forecasted to result in fiscal deficits in the near term and at buildout. RSG recommends proceeding with the annexation of the Lincoln-Ophir Study Area.

The City may also want to consider studying the infrastructure needs of the Study Areas to ensure that public facilities and improvements are at the City’s standards or estimate the costs and ability to finance upgrades if the existing conditions do not meet the City’s standards.

RSG’s conclusions, finding that the Study Areas combine for a fiscal deficit, will likely be exacerbated by one-time infrastructure improvement costs.

RSG did not engage with local stakeholders, particularly Thermalito residents and property owners, to obtain their input on annexation. Support from residents and property owners is essential for annexation to proceed, regardless of the fiscal implcations or policy goals of the City, because if at least 25 percent of registered voters or landowners representing 25 percent of assessed value in the Study Areas file written protests, LAFCO may require that the annexation be decided at the ballot. RSG recommends engaging with the communities included in the Study Areas and supporting robust stakeholder input processes prior to proceeding with annexation. The City should reach out to property owners, residents, and businesses as part of these efforts.
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42 APPENDIX 1: STUDY AREA ASSESSED VALUE FORECAST

ASSESSED VALUE FORECAST -

THERMALITO
7/1/28 7/1/29 7/1/30 7/1/31 7/1/32
Current Assessed Value
Secured $ 66,376,006 $ 66,376,006 $ 66,376,006 $ 66,376,006 $ 66,376,006 Unsecured 198,759 198,759 198,759 198,759 198,759
Net Value 66,574,765 66,574,765 66,574,765 66,574,765 66,574,765 New Development Assessed Value - - 71,739,130 150,000,000 150,000,000 Total Assessed Value 66,574,765 66,574,765 138,313,895 216,574,765 216,574,765 Base Year Value 66,574,765 66,574,765 66,574,765 138,313,895 216,574,765 Incremental Value - - 71,739,130 78,260,870 -
1% of Total Assessed Value $ 665,748 $ 665,748 $ 1,383,139 $ 2,165,748 $ 2,165,748 12 Month Period Beginning

ASSESSED VALUE FORECAST -

THERMALITO
7/1/33 7/1/34 7/1/35 7/1/36 7/1/37
Current Assessed Value
Secured $ 66,376,006 $ 66,376,006 $ 66,376,006 $ 66,376,006 $ 66,376,006 Unsecured 198,759 198,759 198,759 198,759 198,759
Net Value 66,574,765 66,574,765 66,574,765 66,574,765 66,574,765 New Development Assessed Value 150,000,000 150,000,000 150,000,000 150,000,000 150,000,000 Total Assessed Value 216,574,765 216,574,765 216,574,765 216,574,765 216,574,765 Base Year Value 216,574,765 216,574,765 216,574,765 216,574,765 216,574,765 Incremental Value - - - - -
1% of Total Assessed Value $ 2,165,748 $ 2,165,748 $ 2,165,748 $ 2,165,748 $ 2,165,748 12 Month Period Beginning
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43 Rio d'Oro
7/1/28 7/1/29 7/1/30 7/1/31 7/1/32
Current Assessed Value
Secured $ 25,024,721 $ 25,024,721 $ 25,024,721 $ 25,024,721 $ 25,024,721 Unsecured 2,898,734 2,898,734 2,898,734 2,898,734 2,898,734 Net Value 27,923,455 27,923,455 27,923,455 27,923,455 27,923,455 New Development Assessed Value - - 55,000,000 115,000,000 175,000,000 Total Assessed Value 27,923,455 27,923,455 82,923,455 142,923,455 202,923,455 Base Year Value 27,923,455 27,923,455 27,923,455 82,923,455 142,923,455 Incremental Value - - 55,000,000 60,000,000 60,000,000
1% of Total Assessed Value $ 279,235 $ 279,235 $ 829,235 $ 1,429,235 $ 2,029,235

ASSESSED VALUE FORECAST -
12 Month Period Beginning
Rio d'Oro
7/1/33 7/1/34 7/1/35 7/1/36 7/1/37
Current Assessed Value
Secured $ 25,024,721 $ 25,024,721 $ 25,024,721 $ 25,024,721 $ 25,024,721 Unsecured 2,898,734 2,898,734 2,898,734 2,898,734 2,898,734 Net Value 27,923,455 27,923,455 27,923,455 27,923,455 27,923,455 New Development Assessed Value 235,000,000 295,000,000 355,000,000 415,000,000 475,000,000 Total Assessed Value 262,923,455 322,923,455 382,923,455 442,923,455 502,923,455 Base Year Value 202,923,455 262,923,455 322,923,455 382,923,455 442,923,455 Incremental Value 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 1% of Total Assessed Value $ 2,629,235 $ 3,229,235 $ 3,829,235 $ 4,429,235 $ 5,029,235 12 Month Period Beginning

ASSESSED VALUE FORECAST -
98 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
44 LINCOLN / OPHIR
7/1/28 7/1/29 7/1/30 7/1/31 7/1/32
Current Assessed Value
Secured $ 10,672,758 $ 10,672,758 $ 10,672,758 $ 10,672,758 $ 10,672,758 Unsecured 8,588,851 8,588,851 8,588,851 8,588,851 8,588,851 Net Value 19,261,609 19,261,609 19,261,609 19,261,609 19,261,609 New Development Assessed Value - - 2,641,304 5,282,608 7,923,912 Total Assessed Value 19,261,609 19,261,609 21,902,913 24,544,217 27,185,521 Base Year Value 19,261,609 19,261,609 19,261,609 21,902,913 24,544,217 Incremental Value - - 2,641,304 2,641,304 2,641,304
1% of Total Assessed Value $ 192,616 $ 192,616 $ 219,029 $ 245,442 $ 271,855 12 Month Period Beginning

ASSESSED VALUE FORECAST -

LINCOLN / OPHIR
7/1/33 7/1/34 7/1/35 7/1/36 7/1/37
Current Assessed Value
Secured $ 10,672,758 $ 10,672,758 $ 10,672,758 $ 10,672,758 $ 10,672,758 Unsecured 8,588,851 8,588,851 8,588,851 8,588,851 8,588,851 Net Value 19,261,609 19,261,609 19,261,609 19,261,609 19,261,609 New Development Assessed Value 10,565,217 13,206,521 15,847,825 18,489,129 21,130,433 Total Assessed Value 29,826,826 32,468,130 35,109,434 37,750,738 40,392,042 Base Year Value 27,185,521 29,826,826 32,468,130 35,109,434 37,750,738 Incremental Value 2,641,304 2,641,304 2,641,304 2,641,304 2,641,304 1% of Total Assessed Value $ 298,268 $ 324,681 $ 351,094 $ 377,507 $ 403,920 12 Month Period Beginning

ASSESSED VALUE FORECAST -
99 Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
34 APPENDIX 2: STUDY AREA GENERAL FUND FISCAL IMPACT
Year 1 Fiscal Impact (Real Dollars) Thermalito Rio D Oro Lincoln-Ophir Combined
Total
General Fund Revenues
Taxes $ 270,028 $ 309,537 $ 17,283 $ 596,848
License, Permits and Franchises 9,183 2,412 106 11,701
Other Revenues 1,546 316 16 1,878
Total Revenues 280,757 312,265 17,405 610,427
General Fund Expenditures
Administration 4,440 908 45 5,393
Administrative Services 64,062 13,097 652 77,811
Elected Officials - - - -
Community Development Svcs 9,153 2,906 118 12,177
Code Enforcement 73,131 14,951 744 88,826
Public Safety 555,750 113,618 5,655 675,022
Public Works 157,114 32,120 1,599 190,833
General Government 7,109 1,453 72 8,634
Total Expenditures 870,758 179,053 8,886 1,058,697
Surplus / (Deficit) $ (590,001) $ 133,212 $ 8,519 $ (448,270) Year 10 Fiscal Impact (Real Dollars) Thermalito Rio d'Oro LincolnOphir Combined
Total
General Fund Revenues
Taxes $ 588,506 $ 917,226 $ 32,698 $ 1,538,429
License, Permits and Franchises 14,633 56,755 4,303 75,692 Other Revenues 2,477 1,563 20 4,060
Total Revenues 605,616 975,544 37,021 1,618,181
General Fund Expenditures
Administration 7,115 4,489 58 11,662
Administrative Services 102,657 64,768 835 168,261
Elected Officials - - - -
Community Development Svcs 14,508 101,185 8,221 123,913 Code Enforcement 117,189 73,936 954 192,079
Public Safety 890,565 561,873 7,246 1,459,685
Public Works 251,768 158,845 2,049 412,662
General Government 11,391 7,187 93 18,671
Total Expenditures 1,395,194 972,283 19,455 2,386,933
Surplus / (Deficit) $ (789,577) $ 3,260 $ 17,566 $ (768,751) 100
Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
35 Buildout Fiscal Impact (Real Dollars) Thermalito Rio d'Oro LincolnOphir Combined
Total
General Fund Revenues
Taxes $ 588,506 $ 3,778,113 $ 32,698 $ 4,399,317
License, Permits and Franchises 14,633 61,261 119 $ 76,014 Other Revenues 2,477 10,371 20 $ 12,869
Total Revenues 605,616 3,849,746 32,837 4,488,200
General Fund Expenditures
Administration 7,115 29,788 58 36,961
Administrative Services 102,657 429,770 835 533,263
Elected Officials - - - -
Community Development Svcs 14,508 60,736 118 75,362
Code Enforcement 117,189 490,604 954 608,746
Public Safety 890,565 3,728,305 7,246 4,626,117
Public Works 251,768 1,054,014 2,049 1,307,831
General Government 11,391 47,690 93 59,174
Total Expenditures 1,395,194 5,840,906 11,353 7,247,453 Surplus / (Deficit) $ (789,577) $(1,991,160) $ 21,485 $(2,759,253) 101
Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
36 APPENDIX 3: STUDY AREA GENERAL FUND FISCAL IMPACT UPON BUILDOUT Current Year Year 10 Buildout
7/1/26 7/1/36 7/1/61
General Fund Revenues
Taxes $ 596,848 $ 1,538,429 $ 4,399,317
License, Permits and Franchises 11,701 75,692 76,014
Other Revenues 1,878 4,060 12,869
Total Revenues 610,427 1,618,181 4,488,200
General Fund Expenditures
Administration 5,393 11,662 36,961
Administrative Services 77,811 168,261 533,263
Elected Officials - - -
Community Development Svcs 12,177 123,913 75,362
Code Enforcement 88,826 192,079 608,746
Public Safety 675,022 1,459,685 4,626,117
Public Works 190,833 412,662 1,307,831
General Government 8,634 18,671 59,174
Total Expenditures 1,058,697 2,386,933 7,247,453
Surplus / (Deficit) $ (448,270) $ (768,751) $ (2,759,253) Aggregated Total of Study Areas
102
Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
37 APPENDIX 4: THERMALITO STUDY AREA MAP
103
Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
38 APPENDIX 5: RIO D’ORO STUDY AREA MAP
104
Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
39 APPENDIX 6: LINCOLN-OPHIR STUDY AREA MAP
105
Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
40 APPENDIX 7: CSA 26 THERMALITO SEWER & DRAINAGE DISTRICT BOUNDARY MAP 106
Item 7.

Sphere of Influence Annexation Study
City of Oroville
March 17, 2026
41 APPENDIX 8: CSA 148 ORCHARDCREST ESTATES DISTRICT BOUNDARY MAP 107
Item 7.

ID Task
Mode
Task Name Duration Start Finish
1 2345 LINCOLN OPHIR ANNEXATION 186 days Wed 3/4/26 Wed 11/18/266 finalize annexation Report with RSG 12 days Wed 3/4/26 Thu 3/19/267 Prepare planning commisssion staff report 6 days Thu 3/12/26 Thu 3/19/268 Mail announcement to all owners 0 days Fri 3/20/26 Fri 3/20/269 Present to Planning Commission 0 days Thu 3/26/26 Thu 3/26/26 10 Prepare Council staff report 1 day Thu 3/26/26 Thu 3/26/2611 Get Council permission to proceed 0 days Tue 4/7/26 Tue 4/7/2612 Agree on Scope with landowners 29 days Tue 4/7/26 Fri 5/15/2613 letter of intent to landowners 0 days Tue 4/7/26 Tue 4/7/2614 Meetings with individual owners 14 days Fri 4/10/26 Wed 4/29/2615 Get fee agreement from developer? 7 days Thu 5/7/26 Fri 5/15/2616 Agree on scope with LAFCO 14 days Thu 4/30/26 Tue 5/19/2617 Get tax sharing OK from Butte County 20 days Thu 4/30/26 Wed 5/27/2618 Conduct neighborhood meeting(s) 1 day Wed 5/20/26 Wed 5/20/2619 Prepare GPA, prezone, staff reports 14 days Wed 5/20/26 Mon 6/8/2620 20 day PN PC-- affected agencies, owner, publi 0 days Tue 6/2/26 Tue 6/2/2621 20 day PN for council mtg 0 days Thu 6/18/26 Thu 6/18/2622 Prepare app to LAFCO 13 days Thu 5/28/26 Mon 6/15/2623 Planning commission recommendation 0 days Thu 6/25/26 Thu 6/25/2624 Council approval 0 days Tue 7/7/26 Tue 7/7/2625 Submit to LAFCO 0 days Thu 7/9/26 Thu 7/9/2626 LAFCO approval or denial (flow diag) 60 days Thu 7/9/26 Wed 9/30/2627 Complete B of E certification 35 days Thu 10/1/26 Wed 11/18/2628 CEQA clearance 47 days Tue 4/28/26 Wed 7/1/2629 covered under County GPA? 10 days Tue 4/28/26 Mon 5/11/2630 prepare Class 19 15319 exemption? 7 days Tue 5/12/26 Wed 5/20/2631 File at SCH 0 days Wed 5/20/26 Wed 5/20/2632 publish NOE, Get comments 30 days Thu 5/21/26 Wed 7/1/26 3/20
3/26
4/74/7
6/2
6/18
6/25
7/7
7/9
5/20
2/152/22 3/1 3/8 3/153/223/29 4/5 4/124/194/26 5/3 5/105/175/245/31 6/7 6/146/216/28 7/5 7/127/197/26 8/2 8/9 8/168/238/30 9/6 9/139/209/2710/410/1110/1810/2511/111/811/1511/221 March April May June July August September October November TaskSplitMilestoneSummary
Project SummaryInactive TaskInactive MilestoneInactive Summary Manual TaskDuration-onlyManual Summary RollupManual Summary Start-onlyFinish-onlyExternal TasksExternal Milestone
DeadlineProgressManual Progress

Page 1 ends

Project: Lincoln Ophir AnnexatiDate: Wed 3/18/26
108
Item 7.

CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN AND COUNCIL MEMBERS
FROM: AMY BERGSTRAND, DIRECTOR

BUSINESS ASSISTANCE AND HOUSING DEVELOPMENT
RE: AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES (AHSC)

GRANT APPLICATION FOR NELSON POINT APARTMENTS
DATE: APRIL 7, 2026

SUMMARY
The City Council shall consider approving a letter of support for the application of an Affordable Housing and Sustainable Communities (AHSC) grant application for the development of Nelson Point Apartments.

DISCUSSION
The City of Oroville and AMG applied in the Round 8 Funding cycle in 2024 however missed an award by 0.5 points. City proposes supporting a Round 10 application due May 4, 2026, with the same project design as discussed at the March 5, 2024, City Council Meeting. In partnership with AMG & Associates, LLC (AMG)/Pacific West Communities, the project is proposing an affordable housing development on Nelson Avenue adjacent to the Prospect View Apartments, also developed by AMG. The proposed project consists of a 72-unit complex serving low-, moderate-low-, and extremely-low-income households. AMG has retained Brisa Development Partners to assist with preparation of the Round 10 AHSC application, which will fund construction of the development.

To qualify for AHSC funding, the project must include infrastructure improvements that enhance transit accessibility and strengthen connections to key neighborhood destinations. These improvements emphasize active transportation enhancements such as walkability, bicycle access, and safe and accessible street infrastructure. The project application has three (3) components.

Affordable Housing Development (AFD) - approximately $12M 109
Item 8.
 Construct 72-Unit Affordable Multifamily Apartment Complex (3 Buildings)- including community building, tot lot, fenced dog park, half basketball court.

Housing Related Infrastructure (HRI) – an amount not to exceed $3.2M  Enhancement of the existing storm drainage facilities that are necessary due to prior developments and this development. Specifically, the runoff conditions that have resulted in storm drain capacity and conveyance issues along Nelson Avenue, to ensure the proposed AHSC project does not experience premature degradation, flooding or structural instability.
 In addition, replacement of the existing storm drain conveyance system from Hammon Avenue to the drainage ditch located south of Hammon Park due to the expected increase in surface runoff due to new construction activities.

Sustainable Transportation Infrastructure (STI) - approximately $3.9M  Install new Class II Bikeway on Nelson Avenue (Golden Eagle Road to 2nd Street,1.65 miles).
 Install new Class II Bikeway on 2nd Street (Nelson Avenue to Grand Avenue,

0.576 miles).
 Install new Class II Bikeway on 6th St. (Nelson to Nelson Softball Comple, 1,200 feet, including new and gap filled Safe & Accessible Walkway on east and west side and road repairs related to project)
 Install new sidewalk on the south side of Nelson Avenue (Golden Eagle Road to 6th Street, 1,128 feet, including 10 new or reconstructed pedestrian ramps and 5 crosswalks).
 Install Safe & Accessible Walkway on the south side of Nelson Avenue (6th Street to Table Mountain Boulevard, 6,388 feet).
 Install Safe & Accessible Walkway on the west side of 6th Street (Nelson Avenue to drive aisle, 212 feet).

As a condition of the project approval, the City has an agreement with AMG/Pacific West Communities to complete areawide storm drain improvements (outlined in the Housing Related Infrastructure section above) because the long-term functionality and stability of the AHSC-funded improvements depend on completion of permanent storm drain corrections along Nelson Avenue. Pacific West Communities has agreed to address and complete the necessary upstream drainage improvements to ensure adequate stormwater management and to protect the integrity of the proposed AHSC improvements.
110
Item 8.

FISCAL IMPACT
There is no fiscal impact. If awarded, the AHD portion of the grant funds will be distributed directly to the Affordable Housing Developer/Pacific West Communities and the STI and HRI portion would be awarded in the form of a Standard Agreement between the City of Oroville and the State of California. City staff would return to council to accept the Standard Agreement and establish a budget and approve a Loan Agreement with Pacific West Communities for the HRI portion of the grant funding.

ACTION REQUESTED -

APPROVE THE LETTER OF SUPPORT FOR THE AFFORDABLE HOUSING AND

SUSTAINABLE COMMUNITIES (AHSC)

ATTACHMENTS
Letter of Support
Project Site Map/costs
Construction Condition Letter – requiring necessary storm drain infrastructure improvements 111
Item 8.

City of Oroville

OFFICE OF THE MAYOR
1735 Montgomery Street
Oroville, CA 95965-4897
(530) 538-2535 FAX (530) 538-2468
www.cityoforoville.org
David Pittman
April 7, 2026
California Strategic Growth Council
1400 Tenth Street
Sacramento, California 95814
RE: PWC Oroville
To whom it may concern:

The City of Oroville is pleased to jointly submit this application with Pacific West Community Inc. for the Strategic Growth Council’s Affordable Housing and Sustainable Communities Round 10 Notice of Funding Availability.

AHSC Project Name: PWC Oroville
Housing Developer Name: Pacific West Community Inc.

AHD Address: 123 Nelson Ave, Oroville, CA 95965, USA
The project will include 72 affordable units, targeting the >80% AMI population. Currently, there is a waiting that that exceeds 366 families waiting for affordable family apartments in Oroville at just Riverbend Phase I and 2 Family Apartments.

Included within the application is a request for approximately $3.9M in Sustainable Transportation Infrastructure (STI) assistance for the scope proposed below and within the attached STI-TRA Quantification Form. This assistance would provide for very much needed infrastructure (over 1.5 miles of curb, gutter and sidewalks along with over 2 miles of class II bikeways).

The City of Oroville has verified that the STI Capital Projects proposed within the attachments to this letter are consistent with all applicable local rules, regulations, codes, policies, and plans enforced or implemented by this agency. These projects will be operational by 2029.

Where applicable, the City of Oroville has verified ownership of the property on which proposed STI Improvements will be constructed, and thus has sufficient “site control” as that term is defined in the AHSC Program Guidelines.
112
Item 8.

If you have any questions, please contact Tim Kaber, Public Works Director at (530) 538-2540, or [email protected].

Very truly yours,
David Pittman
Mayor, City of Oroville
Attachment A – STI-TRA Quantification Form
Attachment B – Project Location Map
113
Item 8.

Attachment A – STI-TRA Quantification Form
Bikeways to be installed as part of the AHSC Project (Sec. 107 Quantitative Policy Scoring (a)(1)) Project Name +
Description
Cross B (Closest
Street to end)
Cross B
(Closest Street
to end)
Distance
(lane mile,
to the 0.1)
AADT Speed
Limit
Current
Bikeway
Facility
Proposed
Bikeway
Facility
Context
Sensitive
CSB Class II Bikeway -
Nelson Avenue
Golden Eagle Road 2
nd Street 1.65 <5000 35
MPH
None Class II Yes
CSB Class II Bikeway - 2nd
Street
Nelson Avenue Grand Avenue .576 <5000 25
MPH
None Class II Yes
CSB Class II Bike Way-6
th
Street
Nelson Avenue N/A .247 <5,000 25
MPH
None Class II Yes
Project Name +
Description
Cross A (Closest
Street to start)
Cross B (Closest
Street to end)
Continuous
Distance of
Accessible
Walkway (feet)
AADT New/Reconstructed
Pedestrian Ramps
along walkway
New/Repainted
Crosswalks
along walkway
New Sidewalk – S Side of
Nelson Ave
Golden Eagle Road 6
th Street 1,128 <5000 10 5
Safe & Accessible
Walkway - S Side of
Nelson Ave
6 th Street Table
Mountain Blvd.
6,388 <5000 Included in
estimate above
Included in
estimate above
Safe & Accessible
Walkway – W Side of 6th
Street
Nelson Avenue Drive Aisle 212 <5000 Included in
estimate above
Included in
estimate above
New Safe & Accessible
Walk-W Side of 6th Street
Nelson Avenue N/A 1,307 <5,000 4 1
New Safe & Accessible
Walk-W Side of 6th Street
Nelson Avenue N/A 677 <5,000 2 1
114
Item 8.
115
Item 8.

1. Light Blue = New Sidewalk

2. Blue = Sidewalk Improvements

3. Light Green = Class II Bike Lanes
116
Item 8.
117
Item 8.

CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN & COUNCIL MEMBERS
FROM: BRIAN RING, CITY ADMINISTRATOR
RE: ELECTED OFFICIALS’ TRANSPARENCY AND ACCOUNTABILITY

ORDINANCE
DATE: APRIL 7, 2026

SUMMARY
The City Council shall consider adoption of transparency and accountability ordinance for elected officials.

DISCUSSION
At the request of Council Member Johnstone and Council Member Webber, at the December 16, 2025 Council meeting, the Council reviewed adding new language to the Elected Officials Guiding Principles handbook or to the Municipal Code regarding elected officials’ transparency and accountability. During this meeting, staff were given direction to make a number of edits to the proposed language and bring the item back for further discussion.

Revisions to the language were presented to the City Council on February 17, 2026.

During this meeting, staff were directed to make additional edits to the document and to bring it back as a draft ordinance.

Additional edits were presented to the City Council on March 17, 2026. During this meeting, one additional edit was requested, and staff were directed to bring the ordinance back with that edit, for adoption.

FISCAL IMPACT
None.
118
Item 9.

ACTION REQUESTED -
ADOPT ORDINANCE NO. 1894.

ATTACHMENTS
Marked up version of revised language regarding transparency and accountability for elected officials; and
Clean version of revised language regarding transparency and accountability for elected officials.
119
Item 9.

Ordinance No. 1894
Section 2.08.015
SECTION 1: FULL TRANSPARENCY IN ACTION STANDARDS
All substantive councilmember communications with city staff, applicants, developers, or contractors regarding City matters, including but not limited to pending permits, contracts, land use, budget items, shall be disclosed at an upcoming regularly scheduled City Council meeting, during Council Member reports. Nothing in this section is intended to limit councilmembers general policy discussions about City matters, that are not substantive or related to a quasi-judicial decision pending before council, and that they believe may bring about positive change for the community.

No councilmember shall individually give direction to staff. Direction to staff is received by consensus of the entire Council, not any one individual member. This is not to mean that councilmembers cannot have direct conversations with appointed Department Heads or request routine information (which shall be shared with all councilmembers).

Any proposed sale or transfer of city-owned property or assets valued over $50,000 shall require:
 Two public readings on separate meeting dates providing ability for public input at both meetings; and
 Independent appraisal paid by the city.

SECTION 2: CONTRACT NEGOTIATIONS & COUNCIL AUTHORITY
No councilmember, including the Mayor, shall individually participate in the making, drafting, or formal negotiation of any contract on their own authority. Councilmember participation in a standing committee, ad-hoc committee or subcommittee tasked with contract negotiations under direction of a majority of the entire council shall not be limited by this provision.

SECTION 3: CONFLICT OF INTEREST & RECUSAL PROTOCOL
All Council members will strictly comply with Government Code section 1090 and the Fair Political Practices Act. If there is a question as to whether a conflict exists that creates a requirement for recusal, Council Members may consult with the City Attorney for an analysis. Council Members shall report that such analysis was done and the outcome when the matter comes before Council for deliberation.

SECTION 4: STAFF PROTECTION & WHISTLEBLOWER SAFEGUARDS
120
Item 9.

Ordinance No. 1894
No retaliation shall be taken against any city employee for refusing an improper directive or for reporting a violation of this ordinance.

Within 60 days, the City Administrator shall establish a secure, anonymous reporting system for staff to report:
 Attempts by any councilmember to influence, pressure, or intimidate staff outside public process or any violation of this ordinance.

All reports shall be forwarded immediately and confidentially to the City Attorney and City Administrator for assessment and assignment to external investigator if needed.

SECTION 5: ENFORCEMENT & PUBLIC ACCOUNTABILITY
Council shall adopt a policy by resolution outlining the procedures to be followed to address violations of the ordinance. A final finding of violation of this ordinance may result in:
 Public censure;
 Referral to the Fair Political Practices Commission (FPPC) or other applicable agency;
 Loss of committee assignments.

Any finding of violation shall be made public via inclusion in the next council agenda packet.

The City Attorney shall also publish an annual transparency compliance report every January.

SECTION 6: EXEMPTIONS
This ordinance shall be interpreted and applied in a manner consistent with the California Public Records Act. Nothing in this ordinance shall require the release of any privileged information unless and until such privilege is waived by the majority of the City Council.

SECTION 7: SEVERABILITY
121
Item 9.

Ordinance No. 1894
If any portion of this ordinance is found to be unlawful or unenforceable by court of competent jurisdiction, that portion shall be deleted, and the remainder shall remain in full force and effect.
122
Item 9.

Section 2.08.015
SECTION 1: FULL TRANSPARENCY IN ACTION STANDARDS
All substantive councilmember communications with city staff, applicants, developers, or contractors regarding City matters, including but not limited to pending permits, contracts, land use, budget items, shall be disclosed at the nextan upcoming regularly scheduled City Council meeting, during Council Member reports. Nothing in this section is intended to limit councilmembers general policy discussions about City matters, that are not substantive or related to a quasi-judicial decision pending before council, and that they believe may bring about positive change for the community.

Formatted: Highlight
Formatted: Highlight
Formatted: Highlight
123
Item 9.

SECTION 4: STAFF PROTECTION & WHISTLEBLOWER SAFEGUARDS
No retaliation shall be taken against any city employee for refusing an improper directive or for reporting a violation of this Resolutionordinance.

All reports shall be forwarded immediately and confidentially to the City Attorney and City Administrator for assessment and assignment to external investigatorion if needed.

SECTION 65: ENFORCEMENT & PUBLIC ACCOUNTABILITY
Council shall adopt a policy by resolution outlining the procedures to be followed to address allegations of violations of the ordinance. A final finding of violation of this ordinance Violations of this Resolution shall be deemed official misconduct and may result in:
 Public censure;
 Referral to the Fair Political Practices Commission (FPPC) or other applicable agency;
 Loss of committee assignments.; or
 Demand for resignation (non-binding).

Any finding of violation shall be made public via inclusion in the next council agenda packet.

The City Attorney shall also publish an annual transparency compliance report every January.

SECTION 7: SEVERABILITY
Formatted: Highlight
Commented [BR1]: This adopted separate policy
SHOULD be by resolution
Formatted: Strikethrough, Highlight
Formatted: Highlight
Formatted: Highlight
Formatted: Highlight
Formatted: Strikethrough, Highlight
Formatted: Strikethrough, Highlight
Formatted: Highlight
Formatted: Highlight
124
Item 9.

If any portion of this ordinance is found to be unlawful or unenforceable by court of competent jurisdiction, that portion shall be deleted and the remainder shall remain in full force and effect.
125
Item 9.

CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN AND COUNCIL MEMBERS
FROM: PATRICK PIATT, COMMUNITY DEVELOPMENT DIRECTOR
RE: AGREEMENT WITH NEWGEN STRAGEGY SOLUTIONS TO CONDUCT

A PRELIMINARY POWER SUPPLY FEASIBILITY ANALYSIS
DATE: APRIL 7, 2026

SUMMARY
The City is evaluating the potential development of a limited municipal electric utility (MEU) to serve select industrial customers, as well as the potential formation of a Cityoperated Community Choice Aggregator (CCA). The attached scope of work submitted by NewGen Strategy Solutions, outlines a preliminary financial feasibility analysis to assess both options, including a comparison to continued service under Pacific Gas & Electric (PG&E) or Pioneer Community Energy.

DISCUSSION
The scope of work includes three primary tasks designed to evaluate the City’s ability to purchase power from a developer portfolio (including waste-to-energy, solar, and other generation sources), distribute that power to select industrial users, and potentially expand into broader energy service offerings.

Task 1 includes a data request and kickoff meeting to collect detailed electrical usage data, pricing assumptions, and system requirements. This task ensures that the analysis is grounded in actual load characteristics, market pricing, and potential exit or transition costs associated with PG&E or existing energy arrangements.

Task 2 involves development of a 10-year financial feasibility model. This model will evaluate the full cost of service under two scenarios:

1. A limited MEU serving specific industrial users
126
Item 10.

2. A Citywide CCA providing power supply alternatives
The model will include power purchase costs, operational and administrative expenses, startup costs, and potential financing requirements. It will also compare projected costs to PG&E rates and other available options, allowing the City to determine whether meaningful cost savings or strategic advantages exist.

Task 3 includes preparation of a formal report and presentation summarizing findings, methodology, and recommendations. This will support future City Council decisionmaking and provide a clear understanding of risks, opportunities, and next steps.

This analysis is a critical early step in the City’s broader energy strategy. It allows the City to explore opportunities to reduce energy costs for local industry, improve energy resiliency, and evaluate long-term participation in power generation and distribution in a structured and financially responsible manner.

FISCAL IMPACT
A budget adjustment will be necessary for the study, which will be conducted on a time and materials basis for an estimated cost of $40,000, inclusive of travel and related expenses.

ACTION REQUESTED -

APPROVE AN AGREEMENT WITH NEWGEN STRATEGY SOLUTIONS FOR A

PRELIMINARY POWER SUPPLY FEASIBILITY ANALYSIS AND AUTHORIZE THE

MAYOR TO EXECUTE AN AGREEMENT WITH THE CONSULTANT IN AN AMOUNT NOT-TO-EXCEED $40,000.00.

ATTACHMENTS
Attachment 1 – Professional Services Agreement
127
Item 10.

AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement is made on this 7th day of April, 2026, at Oroville, California, by and between the City of Oroville, a California Charter City, 1735 Montgomery Street, Oroville California, 95965 (hereinafter referred to as the “CITY”) and NewGen Strategies and Solutions, LLC, 225 Union Boulevard, Ste 450, Lakewood, CO 80228 (hereinafter referred to as the “CONTRACTOR”).

RECITALS
A. The CITY proposes to contract for professional services as outlined below; B. The CITY conducted an RFP issued in February 2026, and selected CONTRACTOR as the preferred service provider;
C. The CONTRACTOR is willing to perform such services and has the necessary qualifications by reason of experience, preparation, and organization to provide such services; NOW, THEREFORE, the CITY and the CONTRACTOR, mutually agree as follows:

1. SERVICES.

The CONTRACTOR shall perform those services set forth in “Exhibit A,” which is attached hereto and incorporated herein by reference.

2. TERM OF AGREEMENT.

The term of this contract shall commence upon execution by both parties and shall expire on April 1, 2027, unless extended in writing in advance by both parties.

3. TIME OF PERFORMANCE.

The services of the CONTRACTOR are to commence upon receipt of a notice to proceed from the CITY and shall continue until all authorized work is completed to the CITY’s satisfaction, in accordance with the schedule incorporated in “Exhibit A,” unless extended in writing by the CITY.

4. PAYMENT FOR SERVICES.

The CONTRACTOR shall be compensated in an amount not to exceed $40,000 for services provided pursuant to this Agreement as described in “Exhibit B.” Compensation shall under no circumstances be increased except by written amendment of this Agreement. The CONTRACTOR shall be paid within forty-five (45) days of presentation of an invoice to the CITY for services performed to the CITY’S satisfaction. The CONTRACTOR shall submit invoices monthly describing the services performed, the date services were performed, a description of reimbursable costs, and any other information requested by the CITY.

5. CONTRACT ADMINISTRATION.

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5.1. The CITY’s Representative. Unless otherwise designated in writing, Patrick Piatt, shall serve as the CITY’s representative for the administration of the project. All activities performed by the CONTRACTOR shall be coordinated with this person.

5.2. Manager-in-Charge. For the CONTRACTOR, Scott Burnham shall be in charge of the project on all matters relating to this Agreement and any agreement or approval made by her/him shall be binding on the CONTRACTOR. The Manager-in Charge shall not be replaced without the written consent of the CITY.

5.3. Responsibilities of the CITY. The CITY shall provide all relevant documentation in its possession to the CONTRACTOR upon request in order to minimize duplication of efforts. The CITY’s staff shall work with the CONTRACTOR as necessary to facilitate performance of the services.

5.4. Personnel. The CONTRACTOR represents that it has or will secure at its own expense all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by the CONTRACTOR or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. The CONTRACTOR reserves the right to determine the assignment of its own employees to the performance of the CONTRACTOR’s services under this Agreement, but the CITY reserves the right, for good cause, to require the CONTRACTOR to exclude any employee from performing services on the CITY’s premises.

6. TERMINATION.

6.1. Termination for Convenience. Either party may terminate this Agreement without cause and in its sole discretion at any time by giving the other party thirty (30) days' written notice of such termination. In the event of such termination, the CONTRACTOR shall cease services as of the date of termination and shall be compensated for services performed to the CITY's satisfaction up to the date of termination.

6.2. Termination for Cause. All terms, provisions, and specifications of this Agreement are material and binding, and failure to perform any material portion of the work described herein shall be considered a breach of this Agreement. Should the Agreement be breached in any manner, the CITY may, at its option, terminate the Agreement not less than five (5) days after written notification is received by the CONTRACTOR to remedy the violation within the stated time or within any other time period agreed to by the parties. In the event of such termination, the CONTRACTOR shall be responsible for any additional costs incurred by the CITY in securing the services from another contractor.

7. INDEMNIFICATION.

Contractor shall indemnify and hold harmless CITY from and against all liability arising out of or in connection with Contractor's negligent or wrongful acts, errors or omissions in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement. In the event that CITY is named as a party defendant in a lawsuit alleging injury as a result of Contractor’s negligent or wrongful performance under this Agreement, Contractor shall defend CITY with counsel approved by CITY, which approval will not be unreasonably Docusign Envelope ID: D24802F6-CE89-43EB-AB42-5997B7785B3C 129
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withheld, and bear responsibility for attorney’s fees, expert fees and all other costs and expenses of litigation. Should conflict of interest principles preclude a single lawyer from representing both CITY and Contractor, or should CITY otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the CITY its costs of defense, including without limitation reasonable attorney’s fees, expert fees and all other costs and expenses of litigation.

Contractor shall promptly pay any final, non-appealable judgment rendered against the CITY. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California but the indemnity obligation will exclude such loss or damage which is determined to be caused by the sole negligence or willful misconduct of the CITY.

The obligations established by this paragraph will survive termination of this Agreement. For purposes of this paragraph:
• CITY means the CITY Council and its subordinate bodies, elected and appointed CITY officials and officers, CITY employees and authorized agents and volunteers of the CITY.
• Liability means any claims or causes of action raised or asserted by, damage to, loss or expense incurred by or judgments rendered in favor of persons or entities not a party to this Agreement.
• The types of damages included within this indemnity obligation include, but are not limited to, personal injury, bodily injury, death, loss of use, and damage to or loss of real and personal property.
• The indemnity obligation of this paragraph includes all forms of negligent acts, errors and omissions, wrongful behavior and willful misconduct (including but not limited to breaches of professional standards of care, if applicable, and breach of contract) by Contractor and any of its officers, agents employees and subcontractors.

8. INSURANCE REQUIREMENTS.

8.1. The CONTRACTOR, at the CONTRACTOR’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies:

8.1.1. Workers’ Compensation Coverage. The CONTRACTOR shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for its employees in accordance with the laws of the State of California. In addition, the CONTRACTOR shall require any and every subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all the subcontractor’s employees. Any notice of cancellation or nonrenewal of all Workers’ Compensation policies must be received by the CITY at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against the CITY, its officers, agents, employees, and volunteers for losses arising from work performed by the CONTRACTOR for CITY. This provision shall not apply if the CONTRACTOR has no employees performing work under this Agreement.

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8.1.2. General Liability Coverage. The CONTRACTOR shall maintain commercial general liability insurance in an amount of not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.

8.1.3. Automobile Liability Coverage. The CONTRACTOR shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with the work to be performed under this Agreement, including coverage for hired and non-owned vehicles, in an amount of not less than three hundred thousand dollars ($300,000) combined single limit for each occurrence. If CONTRACTOR or CONTRACTOR’s employees will use personal autos in any way on this project, CONTRACTOR shall obtain evidence of personal auto liability coverage for each such person.

8.1.4. Professional Liability Coverage. The CONTRACTOR shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors, or omissions which may arise from the CONTRACTOR’s operations under this Agreement, whether such operations be by the CONTRACTOR or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit-per-occurrence basis.

8.2. Endorsements. Each general liability and automobile liability insurance policy shall be issued by insurers possessing a Best’s rating of no less than A-:VII. Each general liability insurance policy shall be endorsed with the specific language of Section 8.2.1 below.

CONTRACTOR also agrees to require all contractors, and subcontractors to do likewise.

8.2.1. “The CITY, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the CONTRACTOR, including materials, parts, or equipment furnished in connection with such work or operations.”

8.2.2. This policy shall be considered primary insurance as respects the CITY, its elected or appointed officers, officials, employees, agents, and volunteers. Any insurance maintained by the CITY, including any self-insured retention the CITY may have, shall be considered excess insurance only and shall not contribute with this policy.

8.2.3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.

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8.2.4. Notwithstanding the provisions included in any of the ISO Additional Insured Endorsement forms, CONTRACTOR acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amounts of coverage required. Any insurance proceeds available to the CITY in excess of the limits and coverage required in this agreement and which is applicable to a given loss will be available to the CITY.

8.2.5. The insurer waives all rights of subrogation against the CITY, its elected or appointed officers, officials, employees, or agents regardless of the applicability of any insurance proceeds, and agrees to require all subcontractors to do likewise.

8.2.6. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the CITY, its elected or appointed officers, officials, employees, agents, or volunteers.

8.2.7. The insurance provided by this policy shall not be suspended, voided or reduced in coverage or in limits except after thirty (30) days’ written notice has been submitted to the CITY and approved of in writing, except in the case of cancellation, for which ten (10) days’ written notice shall be provided.

8.2.8. Contractor agrees to provide immediate notice to CITY of any claim or loss against Contractor arising out of the work performed under this agreement. CITY assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CITY.

8.3. Self Insured Retention/Deductibles. All policies required by this Agreement shall allow CITY, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the CONTRACTOR (as the named insured) should CONTRACTOR fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the CITY Attorney. CONTRACTOR understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by CONTRACTOR as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should CITY pay the SIR or deductible on CONTRACTOR’s behalf upon the CONTRACTOR’s failure or refusal to do so in order to secure defense and indemnification as an additional insured under the policy, CITY may include such amounts as damages in any action against CONTRACTOR for breach of this Agreement in addition to any other damages incurred by CITY due to the breach.

8.4. Certificates of Insurance. The CONTRACTOR shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein.

Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement. The CONTRACTOR shall provide written evidence of current automobile coverage to comply with the automobile insurance requirement.

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8.5. Failure to Procure Insurance. Failure on the part of the CONTRACTOR to procure or maintain required insurance shall constitute a material breach of contract under which the CITY may terminate this Agreement pursuant to Section 6.2 above.

9. ASSIGNMENT AND SUBCONTRACTING.

The parties recognize that a substantial inducement to the City for entering into this Agreement is the professional reputation, experience, and competence of the CONTRACTOR. Assignments of any or all rights, duties, or obligations of the CONTRACTOR under this Agreement will be permitted only with the express consent of the CITY. The CONTRACTOR shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the CITY. If the CITY consents to such subcontract, the CONTRACTOR shall be fully responsible to the CITY for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the 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 is required by law.

10. COMPLIANCE WITH LAWS, CODES, ORDINANCES, AND REGULATIONS.

The CONTRACTOR shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes, ordinances, and regulations.

10.1. Taxes. The CONTRACTOR agrees to pay all required taxes on amounts paid to the CONTRACTOR under this Agreement, and to indemnify and hold the CITY harmless from any and all taxes, assessments, penalties, and interest asserted against the CITY by reason of the independent contractor relationship created by this Agreement. In the event that the CITY is audited by any Federal or State agency regarding the independent contractor status of the CONTRACTOR and the audit in any way fails to sustain the validity of a wholly independent contractor relationship between the CITY and the CONTRACTOR, then the CONTRACTOR agrees to reimburse the CITY for all costs, including accounting and attorneys’ fees, arising out of such audit and any appeals relating thereto.

10.2. Workers’ Compensation Law. The CONTRACTOR shall fully comply with the workers’ compensation law regarding the CONTRACTOR and the CONTRACTOR’s employees. The CONTRACTOR further agrees to indemnify and hold the CITY harmless from any failure of the CONTRACTOR to comply with applicable workers’ compensation laws. The CITY shall have the right to offset against the amount of any compensation due to the CONTRACTOR under this Agreement any amount due to the CITY from the CONTRACTOR as a result of the CONTRACTOR’s failure to promptly pay to the CITY any reimbursement or indemnification arising under this Section.

10.3. Licenses. The CONTRACTOR represents and warrants to the CITY that it has all licenses, permits, qualifications, insurance, and approvals of whatsoever nature which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR represents and warrants to the DISTRICT that the CONTRACTOR 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 legally required of the CONTRACTOR to practice its profession.

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11. CONFLICT OF INTEREST.

The CONTRACTOR confirms that it has no financial, contractual, or other interest or obligation that conflicts with or is harmful to performance of its obligations under this Agreement. The CONTRACTOR shall not during the term of this Agreement knowingly obtain such an interest or incur such an obligation, nor shall it employ or subcontract with any person for performance of this Agreement who has such incompatible interest or obligation.

12. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY.

The CONTRACTOR represents and agrees that it does not and will not discriminate against any employee or applicant for employment because of race, religion, color, national origin, sex, sexual orientation, gender identity, political affiliation or opinion, medical condition, or pregnancy or pregnancy-related condition. The CONTRACTOR will ensure that applicants are employed, and that employees are treated during employment without regard to their race, religion, color, national origin, sex, sexual orientation, gender identity, political affiliation or opinion, medical condition, or pregnancy or pregnancy-related condition. Such action shall include, but not be limited to the following: employment, upgrading, promotion, demotion or transfer; recruitment or recruitment advertising; layoffs or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The CONTRACTOR agrees to include in all solicitations or advertisements for employment and to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

13. RECORDS AND AUDITS.

The CONTRACTOR shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by the CITY or any authorized representative.

All records shall be made available at the request of the CITY, with reasonable notice, during regular business hours, and shall be retained by the CONTRACTOR for a period of three years after the expiration of this Agreement.

14. OWNERSHIP OF DOCUMENTS.

It is understood and agreed that the CITY shall own all documents and other work product of the CONTRACTOR, except the CONTRACTOR’s notes and workpapers, which pertain to the work performed under this Agreement. The CITY shall have the sole right to use such materials in its discretion and without further compensation to the CONTRACTOR. The CONTRACTOR shall at its sole expense provide all such documents to the CITY upon request.

15. INDEPENDENT CONTRACTOR.

The CONTRACTOR is and shall at all times remain as to the CITY a wholly independent CONTRACTOR. Neither the CITY nor any of its agents shall have control over the conduct of the CONTRACTOR or any of the CONTRACTOR’s employees or agents, except as herein set forth. The CONTRACTOR shall not at any time or in any manner represent that it or any of its agents or employees are in any manner agents or employees of the CITY. The CONTRACTOR shall have no power to incur any debt, obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent unless that authority is expressly authorized in writing by CITY.

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16. NOTICE.

All Notices permitted or required under this Agreement shall be in writing, and shall be deemed made when delivered to the applicable party’s representative as provided in this Agreement.

Additionally, such notices may be given to the respective parties at the following addresses, or at such other addresses as the parties may provide in writing for this purpose. Such notices shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid, and addressed to the party at its applicable address.

CITY:

City of Oroville,
1735 Montgomery Street,
Oroville, California, 95965
Attention: City Administrator
CONTRACTOR:

NewGen Strategies Solutions
225 Union Blvd, Ste 450
Lakewood, CO, 80228
Attention: Scott Burnham

17. GOVERNING LAW.

This Agreement shall be governed by the laws of the State of California. The venue shall be the County of Butte, California

18. ENTIRE AGREEMENT; MODIFICATION.

This Agreement supersedes any and all other agreements, either oral or written, between the parties, and contains all of the covenants and agreements between the parties. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. Any agreement, statement, or promise not contained in the Agreement, and any modification to the Agreement, will be effective only if signed by both parties.

19. 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. Payment of any invoice by the CITY shall not constitute a waiver of the CITY’s right to obtain correction or replacement of any defective or noncompliant work product.

20. 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.

21. AUTHORITY TO ENTER AGREEMENT.

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The CONTRACTOR has all requisite power and authority to conduct its business and to execute, deliver, and perform this 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.

IN WITNESS WHEREOF, the parties have executed this Agreement the ____ day of ________________, 2026.

CONTRACTOR:
_____________________________________
Scott Burnham, Partner
CITY OF OROVILLE:
_____________________________________
David Pittman, Mayor
APPROVED AS TO FORM:
_____________________________________
Scott Huber, City Attorney
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Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
225 Union Boulevard,
Suite 450
Lakewood, CO 80228
Phone: (720) 633-9514
Fax: (720) 633-9535
February 17, 2026
via email
Patrick Piatt
Community Development Director
City of Oroville
1735 Montgomery Street
Oroville, CA 95965
Subject: Preliminary Phase I Utility Feasibility Study
Dear Patrick:

Thank you for taking the time to speak with me regarding the City of Oroville’s (City) request for a utility feasibility study. From our discussion, we understand that the City is potentially seeking to form a “limited” municipal utility that would serve selected industrial load with power from a portfolio of solar, refurbished biomass plants, battery storage, and other generation sources as proposed by a regional developer group (Developer). The intent is that the City would purchase power at an agreed upon price through a power purchase agreement (PPA) from the Developer and would own (but not operate) the distribution system provided by the Developer necessary to serve industrial load within and around the City. The primary public policy objectives associated with this potential project are to provide lower priced renewable power to facilitate economic investment in the community. The City is requesting an independent review by a team of experts in electric utility strategy, cost recovery, and municipalization efforts. Accordingly, we are proposing to provide the City with a Preliminary Phase I Utility Feasibility Study (Study), as detailed herein.

NewGen Strategies and Solutions, LLC (NewGen) is a nationally recognized management and economic consulting firm that provides guidance, insight, and analysis to local governments to implement public policy goals and objectives for their utility operations. For this assignment, NewGen will lead the Project Team, which includes the talents of Bell Burnett & Associates (BB&A), and Barr Engineering (Barr).

Collectively, the NewGen Project Team provides the requisite municipalization, technology, and engineering experience to support the City for this project.

Members of the NewGen Project Team have been involved in efforts similar to those under consideration by the City in other California jurisdictions, including the Cities of Oakdale, Lincoln, and Rocklin, and are currently conducting an energy feasibility study in neighboring Yuba County. Additionally, the NewGen Project Team has lead efforts regarding the analysis of a variety of alternatives to “traditional” electric utility service, including current municipalization efforts and evaluations for the City of San Diego, California; the City of Clearwater, Florida; and recent efforts for the Hudson Valley Power Coalition (New York); the City of Ann Arbor, Michigan; the City of Boulder, Colorado; the City of Chicago, Illinois; and others.

We have been actively involved with the operational and financial aspects of electric utilities across California, including many of the newly formed Community Choice Aggregators (CCAs). We have been at the forefront of providing technical and financial assistance with innovative technologies, including renewable energy and resiliency planning. Our combined experience will benefit the City in this Study. 138
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City of Oroville
Preliminary Phase I Utility Feasibility Study
February 17, 2026
2 Thoughtful Decision Making for Uncertain Times
In addition to the specific projects and services described above, our experience includes the creation of a statewide power supply organization; the design and cost development of transmission, distribution, and related systems across planning, procurement, and final design phases; resource procurement and management; organizational structure and management analyses, including cost-benefit staffing evaluations of alternative utility models; strategic energy planning and program design; financial planning for operations, capital programs, and budgeting; distributed energy resource feasibility analyses, including community-owned solar; clean energy technology, finance, and policy expertise; and participation in numerous municipalization studies that generated substantial community benefits, even where a fullscale municipal utility was not ultimately formed.

More broadly, our daily activities include supporting public entity clients with analysis and financial insight regarding the cost structures of utility operations, renewable energy planning, and evaluation of municipal energy policy alternatives. Our clients trust us to assist them in their strategic plans by providing independent and unbiased opinions and recommendations. We will bring our collective and individual expertise and experience to the City for this Study.

We look forward to working with the City on this exciting initiative. If you have questions or would like additional information, please contact me directly at (720) 259-1762 or [email protected]; my address is 225 Union Boulevard, Suite 450, Lakewood, Colorado 80228.

Sincerely,
NewGen Strategies and Solutions, LLC
Scott Burnham
Partner
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Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
Table of Contents
INTRODUCTION............................................................................................................................... 1 Experience and Qualifications of Firm ........................................................................................ 1 NewGen Background................................................................................................................... 1 TECHNICAL COMPETENCE AND SPECIALIZED EXPERIENCE ............................................................ 2 California Experience................................................................................................................... 2 Project Experience with California Electric Utilities .............................................................................. 4 Project Team Qualifications ........................................................................................................ 5 BB&A Background................................................................................................................................. 5 Barr Background ................................................................................................................................... 6 Project Team Experience ...................................................................................................................... 6 PROJECT TEAM ORGANIZATION ..................................................................................................... 8 NewGen Key Personnel............................................................................................................... 9 BB&A Key Personnel.................................................................................................................... 9 Barr Key Personnel .................................................................................................................... 10 SCOPE OF SERVICES ...................................................................................................................... 11 Phase I Study ............................................................................................................................. 12 Task 1: Data Acquisition ...................................................................................................................... 12 Task 2: Project Kickoff/Strategic Assessment ..................................................................................... 12 Task 3: Preliminary Financial Model ................................................................................................... 12 Task 4: Prepare Report/Presentation ................................................................................................. 14 Work Plan and Deliverables ...................................................................................................... 14 Project Budget........................................................................................................................... 14 APPENDIX A – RESUMES
© 2026 NEWGEN STRATEGIES AND SOLUTIONS, LLC
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Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net

INTRODUCTION
Experience and Qualifications of Firm
The NewGen Strategies and Solutions, LLC (NewGen) Project Team is especially qualified to provide the requested
development of a Preliminary Phase I Utility Feasibility Study (Study) to the City of Oroville (City), bringing the expertise, experience, and combined capabilities needed to meet the City’s objectives. Our collective expertise is based on our solid understanding of the electric utility industry, from creating and evaluating public power entities, critically assessing their organizational effectiveness and finances, procuring power supply, and implementing various programs and revenue
recovery mechanisms, to the nuances of regulatory actions at various jurisdictions. The NewGen Project Team brings a diverse group of dedicated experts in the fields of economics, finance, engineering, jurisprudence, and public policy assessment. This section briefly summarizes NewGen’s background and philosophy.

NewGen Background
NewGen is a management and economic consulting firm serving the utility industry and market.

Established as a Limited Liability Corporation in August 2012, NewGen primarily serves public sector utilities and provides nationally recognized expertise in utility cost of service (COS) and rate design studies, financial feasibility studies, municipalization efforts, depreciation and appraisal studies, litigation support for state and federal regulatory proceedings, utility financial planning, and stakeholder engagement for water, wastewater, stormwater, solid waste, electric and natural gas utilities.

Understanding your community, organization, and data are the three essential elements to developing actionable strategies to maximize the future. NewGen believes that strategy dictates everything. Our approach utilizes your data, market trends, and community values to provide an integrated view designed to make long-term decisions with confidence. We leverage our modeling technology and market expertise in water, wastewater, stormwater, solid waste, and energy to solve your most complicated issues.

Through proactive collaboration, we upgrade or design strategies for you to ensure they are responsive, transparent, and reliable, while paving the way for successful buy-in across all your stakeholders.

NewGen employs over 70 professional and administrative staff. Our current staff has the capability to work on simultaneous assignments, and we have the capacity to add staff and/or expand support from a network of teaming partners, if needed. NewGen has 16 offices located nationwide. 141
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TECHNICAL COMPETENCE AND SPECIALIZED EXPERIENCE
The NewGen Project Team is well qualified to provide the City with the requested services. We have worked with over 100 locally owned electric utilities and other entities in developing cost-based retail rates and rate programs. In addition, we have supported various intervenors in regulated rate cases regarding investor-owned utility (IOU) power supply costs, revenue requirements, cost allocation, retail rate design, and other issues. Additionally, the NewGen Project Team includes expertise of Bell Burnett & Associates (BB&A) whose participation brings hands-on experience in operating publicly owned utilities in California, as well as broad-based expertise in financing, financial modeling, and strategy development, as well as Barr Engineering (Barr), which routinely provides engineering services to a variety of electric utility entities.

California Experience
NewGen is well qualified to provide the City with the requested services. We have significant national and local California experience, and we have completed numerous COS and rate studies, financial planning and analysis, expert witness testimony filings, appraisals and depreciation studies, and strategic planning projects for electric utility clients in California, as shown in the following graphic.

Our team has a long history of working with municipal entities in California and across the county on a variety of critical regulatory, financial, and economic issues. As a company, we routinely provide insight and analysis for electric, water, wastewater, solid waste, natural gas, and other municipal utility areas.

We also understand the nuances of California’s wholesale power market, as we routinely provide financial and utility consulting services for the growing number of Community Choice Aggregator (CCA) entities. 142
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Our team members have substantial experience navigating the dynamic electric market in the State of California, primarily with CCAs and public power clients who maintain diligent benchmarking against the state’s IOUs. Our experience includes:

A wide range of publicly owned power utilities in California such as CCAs, cities just beginning to offer service (e.g., Moreno Valley), established public power utilities (e.g., Alameda Municipal Utilities), and communities considering municipalization (e.g., San Francisco).

Multiple COS analysis and rate studies completed for public power utilities in California, as well as strategic planning efforts, depreciation studies, and performance benchmarking studies.

Evaluating assets for possible acquisition from California IOUs. Our franchise, municipalization, and acquisition work includes the City of San Francisco, the City of San Diego, and South San Joaquin Irrigation District.

Unique insight into CCA efforts and cost-related issues or concerns as we support CCAs’ intervention in IOU regulatory proceedings before the California Public Utilities Commission (CPUC). We have assisted CCAs with their review and protest of Power Charge Indifference Adjustment (PCIA) rate applications for Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). We have also evaluated each of the three IOU’s general rate cases on behalf of CCA clients, focusing on the functionalization or unbundling of costs and underlying issues that will further benefit the CCAs’ cost structure and strategic goals.
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NewGen’s engagement with California public power clients often involves understanding the evolution of the California energy market as it pertains to increasing Renewable Portfolio Standards, distributed energy resource (DER) impacts, Net Energy Metering (NEM) 2.0 successor tariffs, and end-use customers’ desire for greater flexibility and control in choosing clean power resources for their energy consumption. We also are very aware of the issues surrounding Proposition 26 and have developed various strategies and solutions in coordination with internal and external counsel, including representatives from Colantuono, Highsmith & Whatley, P.C. We have supported our clients in navigating the convergence of multiple DERs, including solar, fuel cells, energy storage, and electric vehicles (EVs), as it pertains to their operations, financial condition, and planning efforts.

Project Experience with California Electric Utilities
NewGen has national expertise and local California experience, having completed numerous COS and rate studies, appraisals and depreciation studies, and strategic planning projects for electric utility clients. We have had over 100 municipal/public utility clients in various utility areas.

Our specific electric experience includes:

Completion of 50 projects in the past five years in California. Specifically, members of the NewGen Project Team were involved in COS and/or rate-related studies for the following California entities:

City of Alameda (2015–2020)
City of Anaheim (2016–2017 and 2019, 2023)
City of Glendale (2017– Present)
City of Pasadena (2018–2022)
City of Redding (2016–2017, 2020, and Ongoing)
City of Riverside (2016–2018 and Ongoing)
City of Santa Clara (2020–2021)
City of Vernon (2015–Present)
Confidential Client (2017–2019 and Ongoing)
Imperial Irrigation District (2020–Present)
Merced Irrigation District (2015–Present)
Turlock Irrigation District (2015, Ongoing)
NewGen was engaged by San Diego Community Power (SDCP) to review the SDG&E forecast for Energy Resource Recovery Account (ERRA), Power Charge Indifference Adjustment (PCIA), and Portfolio Allocation Balancing Account (PABA).

NewGen was retained by a confidential California CCA to assist with the development of initial analytics for advanced metering infrastructure (AMI) data.

NewGen worked with California Community Choice Association (CalCCA) to build an analytical tool to dynamically project PCIA rates for multiple IOUs and to assist CCAs with their own financial planning and analysis, including potential impacts on customers’ rates. 144
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Project Team Qualifications
BB&A Background
BB&A is a management and strategic consulting firm serving the utility industry and public sector clients in the West. They offer independent development, review, and assessment of strategic plans and initiatives, including municipalization efforts and renewable project and power supply development.

BB&A is comprised of former Chief Financial Officers, financial advisors, and bankers, so they understand the complexities that clients face, especially for municipalization programs that face a myriad of complex business, operational, and risk issues. These issues are particularly acute in the infancy of any public power program, and identifying and addressing these policy considerations is one of the strengths of BB&A.

Working in and for utilities in the West is a core strength of BB&A. BB&A has worked on project development, strategic plans, feasibility reports, economic valuations, project development, resource planning, risk management policies, rate design, reserve policies, capital and business plans, and risk analysis for numerous publicly owned utilities, including the public utilities of:

Anaheim Los Angeles Roseville
Burbank Pasadena San Diego
Glendale Pittsburg San Francisco
Lodi Redding
Long Beach Riverside
This work also includes significant experience with municipalization efforts. In 2025, BB&A was retained by the City of Oakdale to conduct an Electric Service Feasibility Study assessing the potential migration of service from PG&E for existing and new load in support of broader economic development objectives.

BB&A is currently assisting the City of Lincoln with an update to its 2020 Energy Options Analysis, which evaluated a range of alternatives, including the formation of a new municipal utility, establishment of a joint utility district, and partnership with an existing publicly owned utility.

BB&A also worked with the City of Indio, and is currently supporting the City of Coachella, in developing an electric infrastructure funding program associated with the construction and expansion of substations to enhance reliability and accommodate future economic growth. BB&A and its principals have conducted feasibility analyses evaluating service to existing and greenfield development, either through the formation of a new utility or in coordination with an existing utility provider.

Members of the Project Team have also performed considerable work for other agencies throughout the West. Much of this work involves highly tailored advice and analysis surrounding strategic initiatives, including COS, feasibility work, asset acquisition and divestiture, and organizational and operational risk assessment. Additional utility clients include:

Bonneville Power Administration San Francisco Public Utilities Commission Imperial Irrigation District South San Joaquin Irrigation District San Diego County Water Authority Yuba County Water Agency 145
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Barr Background
Barr is an employee-owned engineering and environmental consulting firm with extensive experience supporting power utilities and public sector clients. Barr provides multidisciplinary expertise in engineering analysis, infrastructure planning, environmental permitting, and technical advisory services.

The firm has supported complex energy and utility projects across planning, design, and implementation phases, bringing practical, data-driven solutions tailored to client objectives.

Project Team Experience
The following project profiles provide summaries of our collective experiences for each firm within the NewGen Project Team. Each project provides unique aspects of electric utility strategy that is directly applicable to the City’s request. The projects listed below were completed collaboratively by NewGen and our subcontracting partners.

City of Clearwater | Municipal Utility Feasibility Study The City of Clearwater, Florida (Clearwater) engaged NewGen, in partnership with Barr and legal counsel, to conduct a Feasibility Study evaluating the establishment of a municipal electric utility (MEU) to serve customers currently served by Duke Energy Florida (Duke). The study compared projected average system retail rates for Clearwater MEU to Duke’s estimated rates by developing a total annual revenue requirement that included operating costs, power supply and transmission costs, distribution system operations and maintenance (O&M), customer-related costs, and debt service associated with acquiring Duke’s distribution assets. The analysis assumed no MEU ownership of generation, consistent with Florida law allowing publicly owned utilities to procure wholesale power through Federal Energy Regulatory Commission (FERC)-regulated markets. Asset acquisition costs were estimated using data from Duke and the Clearwater, supplemented by a detailed field assessment and depreciation analysis to develop a Reproduction Cost New Less Depreciation (RCNLD) value, as required under Florida law. Conducted over a 30-year period beginning in 2026, the study concluded that a Clearwater MEU could potentially provide reliable service at lower average retail rates than Duke, subject to key assumptions related to asset valuation, future power costs, system separation and reintegration, potential stranded costs, and ongoing operating expenses; results were presented to City Council in October 2025, and the City subsequently engaged NewGen to complete a formal asset appraisal anticipated in spring 2026.

Hudson Valley Power Authority | Financial Feasibility Study The Hudson Valley for Public Power (HVPP) coalition sought a Financial Feasibility Study to evaluate the potential creation of a new state authority: the Hudson Valley Power Authority (HVPA). The HVPA would be formed from the current utility assets of Central Hudson Gas & Electric Corporation (Central Hudson), which serves approximately 309,000 electric and 84,000 natural gas customers in eight counties of New York State’s Mid-Hudson River Valley region. The purpose of this study was to provide an initial assessment of the financial feasibility of establishing the HVPA as envisioned in the HVPA Act (A20127 and S2026). This evaluation was accomplished by reviewing publicly available information on the reported assets and operations of Central Hudson to establish a potential range of purchase prices based on our experience. This study did not include a physical review of the assets to be acquired by HVPP. Additionally, NewGen teamed with Duncan & Allen to evaluate the potential legal considerations, including estimates of negotiation and litigation costs, as well as the need for federal approval. We assumed that the HVPA would issue debt to obtain these assets, which will be included as an element of the revenue requirement for the public power entity. Current and projected system-level revenue requirements for Central Hudson were compared to projected system-level revenue requirements for HVPA to establish feasibility. The 146
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results indicated that it would be financially feasible to form a publicly owned electric and natural gas utility from the Central Hudson assets. Results were provided to the HVPP in December 2025 during a press conference that included a presentation of our findings.

City of Ann Arbor | Preliminary Municipalization Study
The City of Ann Arbor (Ann Arbor) engaged members of the NewGen Project Team, through a contract with 5 Lakes Energy, LLC (5 Lakes), to conduct a Preliminary Municipalization Study evaluating the feasibility of forming an MEU through acquisition of DTE Electric’s (DTE) distribution system within City boundaries. Supported by Barr (formerly Exponential Engineering [Exponential]), the team conducted onsite asset evaluations in 2022 and developed Original Cost (OC) and Replacement Cost New (RCN) estimates, asset condition assessments, and a range of acquisition values, including an asset valuation using the FERC income approach. NewGen developed a 30-year pro forma financial model assuming an “overnight” acquisition of DTE assets, with revenue requirements derived from O&M costs, power supply, customer and administrative costs, debt service, severance and interconnection costs, start-up expenses, and future capital investments. The resulting all-in MEU energy rate, $/kilowatt-hour (kWh), was compared to a status quo scenario assuming continued DTE service, using publicly available delivery rate data. Both scenarios assumed power supply portfolios meeting Ann Arbor’s goal of 100% carbon-free energy by 2030. Phase I results were presented to Ann Arbor City Council and made publicly available (https://www.a2gov.org/departments/sustainability), and the City is currently evaluating next steps.

City of San Diego | Public Power Feasibility Study – Phase I and Phase II (in progress) The City of San Diego (San Diego) engaged NewGen, in partnership with BB&A and Siemens Power Technologies International (Siemens PTI), to conduct a Phase I and Phase II Public Power Feasibility Study evaluating options to expand public utility services to include electric delivery consistent with San Diego’s Strategic Plan goals. The multi-phased study evaluates the processes, costs, risks, and opportunities associated with municipalizing SDG&E’s electric delivery assets to form an MEU, with Phase I completed in 2023 and Phase II underway and anticipated for completion in 2025. Phase I included development of municipalization process maps outlining legal, regulatory, and operational pathways; an organizational assessment of San Diego operations and evaluation of governance and structural options for a potential MEU; and preliminary financial and operational analyses of electric system assets and public power options. The Phase I Feasibility Report concluded that municipalization of SDG&E’s electric delivery assets is preliminarily feasible and could generate a potential cumulative financial benefit of $6 billion to $15 billion over a 30-year period compared to continued service, subject to significant assumptions and uncertainties; SDG&E’s natural gas system was excluded due to inconsistency with San Diego policy objectives. The process maps identified established legal and regulatory pathways but indicated that full municipalization would likely require a minimum of eight to ten years and could be extended by external factors. Phase I recommended continued evaluation through Phase II, including development of a Municipalization Strategic Plan aligned with San Diego’s Carbon Action Plan, expanded stakeholder engagement, preparation of a Local Agency Formation Commission application, updated asset field inspections, and refinement of financial analyses. The Phase I report is publicly available at https://www.sandiego.gov/sustainability-mobility/energy/public-power.

South San Joaquin Irrigation District | Strategic Planning, COS Study, and Analysis and Testimony of Retail Electric Service
BB&A’s principals have worked for South San Joaquin Irrigation District (SSJID or the District) for more than a decade, including peer review of financial cost/benefit analysis for the District’s long-term municipal electric utility effort, Local Agency Formation Commission (LAFCO) support, expert testimony, 147
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and recent feasibility work. A core part of our services is supporting SSJID’s pursuit of retail electric service to SSJID customers in lieu of the current service provider, PG&E.

BB&A also conducted a comprehensive COS analysis to support the development of equitable raw water charges for the District’s willing to pay customers. The engagement included review of the District’s revenue requirements, capital improvement program (including the Canyon Tunnel project), and financial policies; development of conceptual cost-allocation models using market-rate benchmarking, proportional facility use, and direct cost-of-supply methodologies; and preparation of recommended raw water rate adjustments with supporting technical memoranda and Board presentation materials.

Previously, BB&A developed the District’s 2024 Strategic Plan. In this capacity, BB&A conducted over 40 interviews with staff, led workshops, and interacted with both executive leadership and the Board. The Strategic Plan outlined six Strategic Priorities for the next five years, including Water Supply, Infrastructure, Treatment, and Distribution; Finance and Rates; Workforce and Culture; Customer and Community Relations; Legislative and Regulatory; and the provision of Retail Electric Service.

Yuba County Water Agency | Community Choice Aggregation Feasibility Report BB&A has worked on a number of assignments relating to community choice aggregation. On behalf of Yuba Water, BB&A has worked on the creation of a potential CCA program in Yuba County for the past two years. In this capacity, BB&A prepared a feasibility report assessing the potential costs and benefits, including an alternatives analysis, the development of a proforma model and outline of key considerations. BB&A has also provided peer review studies in connection with this feasibility work of power supply strategy and costs. BB&A is currently working on a draft implementation plan, that should stakeholders ultimately elect to proceed, would form the basis of a submission to the CPUC for consideration.

City of Long Beach | Consolidation of Water and Gas Utilities Feasibility Report At the request of the City of Long Beach's (Long Beach) utilities, BB&A prepared a comprehensive feasibility report assessing the preliminary feasibility of merging Long Beach’s water utility and gas utility into a single, consolidated entity. The study evaluated four primary policy, business, and operational considerations: 1) Governance: evaluated benefits of consolidating under a single City Department and Utilities Commission; 2) Labor: assessed workforce impacts, finding cost savings could be achieved through attrition without layoffs; 3) Service Levels: determined consolidation would improve customer service through better coordination; and 4) Budget/Operations: identified $2.75M short-term and $6.5M five-year potential savings. The report was a jumping off point for this strategy, and the city successfully consolidated its water, sewer, and natural gas utilities into a single department after voters approved it in November 2022. This engagement demonstrates BB&A's capability to analyze governance alternatives, assess operational efficiencies, and develop actionable recommendations for municipal utility decisions— directly applicable to the city's evaluation of public power alternatives.

PROJECT TEAM ORGANIZATION
The proposed NewGen Project Team is structured to provide the City with a coordinated, multidisciplinary approach that integrates technical, financial, and strategic expertise. NewGen will serve as the prime consultant and overall project lead, supported by BB&A (and Barr, as necessary). Together, the team brings extensive experience in utility feasibility analysis, system planning, rate and financial analysis, governance and organizational design, and advisory services. Full resumes for key Project Team members are included in Appendix A.
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NewGen Key Personnel
Scott Burnham, Partner | Project Role: Project Manager
Scott Burnham, Partner at NewGen, brings over 25 years of experience in the areas of project management, COS and rate design, asset valuation, and financial feasibility analysis. Scott leads efforts to create financial models that develop revenue requirements, cost allocation, financing for strategic capital and operating objectives, and rate/rate structure alternatives, ensuring our clients have reliable and defensible results. Additionally, Scott routinely presents study findings and recommendations to utility management, boards, city councils, and other governing bodies. He has developed and reviewed pro forma financial models to determine projected revenue and costs associated with various projects and financing approaches for a variety of power generation facilities. Scott is well-versed in cost allocation theories and methodologies, rate design concepts, and approaches, and in providing summary analyses and recommendations to industry clients. Scott co-leads the semi-annual COS and Rate Design class through EUCI, an industry conference organization, which is routinely attended by all types of utility stakeholders.

Nick Coomer, Manager | Project Role: Lead Consultant
Nick Coomer is a Manager at NewGen with a strong background in utility economics, financial modeling, and asset valuation. Since joining NewGen in 2021, he has contributed to a wide range of projects involving COS and rate design, appraisals for acquisitions and CCN decertification, depreciation studies, and financial planning for public utilities across the water, wastewater, and energy sectors. Nick develops tailored financial and budget models that help clients plan for operating, capital, and reserve needs under various usage and revenue scenarios. He is a Certified Rate of Return Analyst (CRRA) and an active member of the Society of Depreciation Professionals and the American Society of Appraisers, where he serves as Vice President and Treasurer for the Middle Tennessee Chapter. Nick holds both an MBA and BBA from Belmont University.

Brody Liebler, Consultant | Project Role: Lead Analyst
Brody Liebler joined NewGen as a full-time consultant in July 2024. He assists on COS and rate design projects, emphasizing data-driven analytics and applying his econometric analysis skills. Brody’s experience includes financial modeling, rate calculation, cost allocation analysis, and Microsoft Excel.

BB&A Key Personnel
BB&A has three principals and a number of associates that work for the firm. BB&A is led by Alex Burnett, Mike Bell, and Drew Atwater who have between 15 and 45 years of experience working for and in the public sector. BB&A prides themselves on having a very rich and deep set of expertise that draws on real world experience across organizational and operational business lines and is not predisposed to an individual strategy or organizational approach.

Alex Burnett | Project Role: Senior Advisor
Alex brings 35 years of infrastructure and utility experience as both a banker and financial advisor, having served as the Head of the West Coast for Public Finance at JP Morgan, a Managing Director at Citigroup and as a Managing Director at Public Financial Management, the nation’s largest independent financial advisory firm serving the public sector, where he spent 15 years. In this capacity, Alex has worked on 149
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project development, financial and strategic planning, organizational assessments, financial strategy, rate and cost design, credit strategy, contract and developer negotiation, and project delivery. Alex has served as an investment banker and financial advisor managing capital market transactions in excess of $50 billion, resulting in a deep understanding of project development, financial alternatives, technical modeling, funding and budgeting strategies, and financial markets.

Mike Bell | Project Role: Senior Advisor
Mike brings 45 years of public sector experience as a public sector executive and consultant, including the last five years as a founder of BB&A. Mike is the former Chief Financial Officer for Anaheim Public Utilities and Southern California Public Power Authority where he was responsible for managing the day-to-day activities of the utility. Mike is the former Executive Director of the California Municipal Utility Association (CMUA) and served as Principal and Senior Director of Client Services for R.W. Beck’s electric, water, wastewater, and transportation businesses in California. Mike has also served as Assistant General Manager and Economic Planning Manager for 20 years for Anaheim Public Utilities (California) and City Water, Light and Power in Springfield, Illinois. Mike brings particular expertise to the team in governance, financial and strategic analysis, and financial controls, having been responsible for these areas in the past at several large public agencies.

Drew Atwater | Project Role: Senior Advisor
Drew brings 15 years of public sector experience as a public sector executive and consultant. Drew has served as Deputy General Manager of the Moulton Niguel Water District and Manager of Rates, Charges, & Financial Planning for the Metropolitan Water District of Southern California, the largest water wholesaler in the United States. Drew brings particular expertise in funding and cost/benefit analysis, data management, and financial modeling. Barr Key Personnel
Barr will support NewGen as a technical subcontractor for this engagement. Barr is an employee-owned engineering and environmental consulting firm with more than 60 years of experience providing engineering and technical services to the power industry. Barr’s professionals have supported a wide range of electric utilities nationwide, including public power entities and IOUs, with expertise in transmission facilities, substation configuration, and infrastructure assessments.

Tom Ghidossi | Project Role: Lead Engineer
Tom has more than four decades of experience serving as principal and project manager for electrical engineering projects. He has an extensive background in designing and analyzing low-, medium-, and high-voltage power generation, transmission, and distribution systems including utility, industrial, and commercial system. He has specialized expertise in protective relaying and communication systems. Tom focuses on larger substation, generation, and transmission/distribution projects. Prior to joining Barr, Tom founded Exponential Engineering Company in 1993, leading that firm to provide responsive and personalized service to the electric power industry 150
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SCOPE OF SERVICES
The NewGen Project Team is well qualified to provide the City with the services requested. As described above, we have worked with a large number of utilities and other entities around the country on issues of COS and rate issues, as well as load and load shape forecasting, transmission and distribution planning/engineering, legal support for regulatory filings at state and federal commissions, financial planning and model development, strategic planning for electric utilities, including evaluation of alternative generation services and/or distributed energy resources, stakeholder engagement/feedback solicitation, organizational development and other utility services.

The process for developing a public power entity is not easy; it will require substantial resources and a long-term commitment that will likely last for years. There are a multitude of cautionary tales throughout the country that can provide critical lessons which the City should consider in its strategic analysis.

However, there may be alternatives to acquiring the electric delivery assets from the incumbent utility PG&E, such as the development of a sustainable electric utility that could allow the City to implement its policy objectives. Having a team that is fully versed in these challenges is critical because any excitement should be tempered by the reality of establishing a public power utility, even as limited as the scale envisioned by the City. That is why we have created a dedicated Project Team of professional independent utility consultants that are deeply experienced and recognize the substantial value that can be created through municipally owned utility operations.

NewGen proposes to develop a preliminary (Phase I) analysis that will include a preliminary assessment of the financial viability of developing a “limited” City-owned electric utility. For the purposes of this proposal, “limited” is meant to apply only to specific loads within or around the City (i.e., the industrial loads identified by the City).

Our proposal is to provide elements of the Study in a phased approach. Phase I will result in a Preliminary Feasibility Study that will provide a high-level summary of the costs, benefits, and other issues related to establishing a publicly owned utility for the City. Phase I will be conducted to support a determination by the City if it is prudent to move forward with its public power utility development effort, and to identify and propose a Scope of Services for additional research, investigation, and analysis to achieve the City’s objectives. The current proposal is limited to the Phase I efforts. If the City chooses to move forward, a Phase II Scope of Services will be fully developed at that time. Phase II services may include the development of additional analytical support to detail expected results associated with various option(s) chosen by the City for the formation of a City-owned utility.

The analysis proposed to be developed for the City from this Study will focus on the benefits that may accrue to the businesses of the City as a result of the development of a “limited” public power utility.

These benefits will focus on the potential savings from the purchase of power from the “portfolio” of assets provided by a third-party developer group (Developer), compared to the costs of continuing to purchase retail power from the selected load from PG&E. This would include costs incurred by the City associated with the creation of a municipally owned electric utility, including potential development of a “standalone” sustainable electric utility (as defined in future conversations with the City). These benefits may also be qualitatively described relative to the policy objectives of the City. The benefits and costs may include different options and scales available for the City to create a publicly owned sustainable energy utility, or a more “traditional” utility operation, as defined by future conversations.

Our proposed phases, including our project methodology, presentation of information, schedule, and work plan, are as detailed in the sections below.
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Phase I Study
Phase I will include a review of relevant documents provided by the City, a kickoff meeting with the City’s team, and the development of a preliminary financial analysis of estimated annual cash requirements for an operational electric utility (preliminary pro forma financial model, as described below). As indicated, Phase I is designed to provide a preliminary assessment of the economic and strategic aspects of the City’s purchase of power from the Developers (including the distribution assets to be provided by the Developer), the creation of a “municipally owned” utility, and potential separation costs to be paid by the City to PG&E. This will be accomplished by estimating the annual cash flow requirements for a City-owned electric utility compared to the cash flow requirements of continued ownership by PG&E. Specific tasks identified for the Phase I Study are described below.

Task 1: Data Acquisition
NewGen will develop a Data Request for the City, as appropriate, which may include information from the City’s current franchise agreement with PG&E, the load associated with the large industrial customers to be served by the City, a summary of discussions and details provided by the Developer to the City, the City’s renewable energy policies or objectives adopted by the City, and other relevant data.

Task 2: Project Kickoff/Strategic Assessment
NewGen will establish a time that is convenient for the City to conduct an onsite kickoff meeting. The purpose of this meeting will be to review the Scope of Services and the data provided to date (as well as additional data necessary) and to establish communication protocols for the Study. As part of this kickoff meeting, NewGen will conduct a strategic assessment of the City’s goals and objectives as they relate to this Study and the City’s electric utility development effort. This will include a discussion of a proposed specific rate-related objectives of the City’s proposed actions, and how the potential savings to the City’s customers may be evaluated. The strategic assessment will be critical to defining the success of the Study, as well as outlining various alternatives to the development of a City electric utility that are consistent with the Study goals and supportive of its overall objectives as they relate to electric utility services (such as development of a potential concurrent Sustainable Electric Utility).

The strategic assessment process will result in the development of a Strategic Assessment Summary Report to the City, which will provide a summary of the discussions, outcomes, and objectives related to this Study. The strategic direction for the Study will guide the Study process.

Task 3: Preliminary Financial Model
NewGen will develop a Preliminary Financial Model (Model) to create a projection of electric utility revenue requirements (on a cash basis) to compare the existing status quo case (continued service from PG&E) to the City-owned municipal utility option. The Model will be developed on an annual basis over a 30-year study period. The Model will be preliminary in nature for the Phase I effort; NewGen will utilize estimates regarding inputs and will rely on assumptions, expertise, and analysis of publicly available data for various elements of the Model. To the extent confidential information provided by the City is incorporated into the Model, NewGen will identify it as such for the purposes of this Study.

The Model will utilize an estimated costs for power, as provided by the City and/or Developer, which may include the costs associated with the distribution system to connect the power sources to the industrial load, as identified by the City. This may include on-going costs to move power from the Developer resources located beyond the City to the industrial load, including, but not limited to utilizing PG&E’s 152
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Wholesale Distribution Tariff (WDT) provisions, as necessary. The power from the Developer will be purchased by the City and charged to the selected industrial or large commercial customers.

The City may need to issue debt to finance various start-up related costs, including, but not limited to, potential “exit” fees to PG&E, as appropriate. If the City does issue debt, it would be expected to be repaid by industrial ratepayers over an appropriate period of time. The Model will include estimates of applicable start-up costs, as well as projected annual O&M expenses associated with dedicated distribution assets and the customer service and administrative functions of a “limited” operating municipal utility. Cost estimates of future capital requirements for normal renewal and replacement will be developed and included in the Model on an annualized basis, as appropriate. The Model will include additional debt issues for funding investments, as necessary, such as those that may be required for working capital, inventory, or other items.

Cash requirements for the City-owned utility may include operating reserves, general transfers (as applicable), and potential improvements to the distribution infrastructure or various customer programs, as defined in the Strategic Assessment Summary Report developed in Task 2. Annual cash requirements for the status quo will be included in the current estimated average rate revenue (assuming that PG&E rates currently recover its costs), which will be escalated based on estimates of future investment by PG&E utilizing publicly available information.

As part of the development of the Model, NewGen will review PG&E invoices, contracts, and electric billing patterns provided by the City to provide insight on total load, number, and types of selected industrial/large commercial customers to be served and their average monthly electricity usage. This may also include a review of various CPUC proceedings, FERC reports, and other public sources of data, as well as potential information developed during previous discussions with the City, Developers or others.

Start-Up/Ongoing Costs: As part of the development of the Model, NewGen will develop estimates associated with start-up costs (including cost estimates for expenses prior to operation, as well as those for the initial phases of operation), financing-related costs, O&M costs by functional element, requirements for capital investments, and estimates of administrative and general (A&G) costs. These cost estimates will be developed based on average $/customer expenses and/or our expertise in providing analysis of publicly owned electric utility systems.

NewGen will leverage its extensive experience with municipal utilities across the U.S. to gather cost information for purposes of developing the projected ongoing O&M expenses, and will use other sources of publicly useful information, which contain financial and statistical information about the operations of electric municipal utilities individually and in various groups, including O&M expenses, sales information, balance sheet data, sales statistics including number of customers and megawatt-hour (MWh) sales by customer class, revenues, key performance indicators, etc.

Financing Costs: NewGen will work with the City to identify the preferred type of financing for the costs associated with investments required for the system. Publicly owned electric utilities are generally financed through the issuance of revenue bonds because of their comparatively low interest cost. The revenue bondholders have a lien on the revenues of the municipal utility as security, or collateral for the outstanding revenue bonds not yet redeemed. However, other options will be considered, as appropriate.

Based on information from the previous tasks, the Project Team will estimate the amount of capital to be obtained through financing and the corresponding bond issuance amount considering the estimates for acquisition costs, severance costs, funding of utility reserves and operating funds, bond issuance fees, etc.

This information will then be used to project annual debt service over the 30-year study period. Publicly available indices will be used to estimate the associated interest rate. 153
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Replacement of Municipal Revenues Lost through Municipalization: To the extent that the City is successful in serving selected load from power provided by the Developers, it is possible that the revenue currently received by the City under PG&E franchise charges may need to be replaced. The most common way to implement such replacement is by imposing a payment in lieu of taxes (PILOT) requirement on the municipal electric utility. Our report will also evaluate and report on alternative means of replacing lost franchise fee revenues.

Model Results: The intent of the Model is to compare preliminary costs and revenues associated with operations of the proposed limited City utility system under existing ownership (PG&E) and the public power scenario (City-owned). Utilizing the projections for annual cash needs, the Model will determine an average system retail rate under both scenarios over the 30-year planning horizon. The difference between the average system retail rates will determine the potential savings associated with a public power utility on an annual basis.

Additionally, NewGen may provide a comparative analysis of the net present value of the projected total revenue requirement (total costs) under the two scenarios. The summary of results for the Model will be included in a dashboard embedded in the Model for ease of understanding, as well as to facilitate additional analyses.

Task 4: Prepare Report/Presentation
NewGen will prepare draft and final reports that present the results of the Phase I Study, including potential advantages and disadvantages of City utility ownership. Additionally, we propose to present the initial Study findings to the City management team and other stakeholder groups, as requested.

Work Plan and Deliverables
The NewGen Project Team will work with the City to further develop the work plan and deliverables based on the strategic objectives of the City. Based on the proposed scope, as developed herein, the following deliverables are envisioned:

Data Request/onsite kickoff meeting
Strategic Assessment Summary Report
Preliminary Financial Model/results
Draft and final reports
Presentation of Study findings
Project Budget
The NewGen Project Team proposes to conduct this Study on a time and materials basis for a not-toexceed budget of $100,000, inclusive of travel related expenses as necessary. Hourly rates by position for the NewGen Project Team are included below, as well as those for staff for BB&A and Barr, as appropriate. 154
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NewGen Project Team
2026 Billing Rates
Name, Project Role Company Hourly Rate
Scott Burnham, Project Manager NewGen $320
Nick Coomer, Lead Consultant NewGen $255
Brody Leibler, Lead Analyst NewGen $225
Administrative Support NewGen $140
Alex Burnett, Senior Advisor BB&A $500
Mike Bell, Senior Advisor BB&A $500
Drew Atwater, Senior Advisor BB&A $500
Tom Ghidossi, Lead Engineer Barr $275
Note: Billing rates are subject to change based on annual reviews and salary increases.

NewGen may assign other staff to assist with this effort, with the approval of the City, based on the following rates by position.

NewGen Strategies and Solutions
2026 Billing Rates
Position Hourly Billing Rate
Partner $305 – $455
Principal $295 – $455
Senior Manager $250 – $295
Manager $220 – $250
Senior Consultant $200 – $220
Consultant $185 – $200
Administrative Services $145
Note: Billing rates are subject to change based on annual reviews and salary increases. 155
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SCOTT H. BURNHAM
Partner
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net

CONTACT
225 Union Blvd., Ste 450
Lakewood, Colorado 80228
[email protected]
www.newgenstrategies.net

EDUCATION
Master of Business Administration in
Finance, University of Colorado
Master of Public Affairs and Master of
Science, Indiana University
Bachelor of Science, Texas A&M
University

KEY EXPERTISE
Economic Evaluation
Feasibility and Financial Analyses
Rates Negotiation
Retail Rate and Cost of Service
Unbundled Cost Analysis
Mr. Scott Burnham joined NewGen Strategies and Solutions, LLC (NewGen) in April 2016. He offers over 25 years of experience in cost of service (COS) and rate design analysis, financial feasibility, municipalization studies, and restructuring for electric utilities. Mr. Burnham leads the comprehensive and independent review of cost of service and retail rate design practices for various electric utilities, including analyzing the impacts of net metering, electric vehicle charging, and ways to enhance fixed cost recovery in the face of increasing levels numerous classes on cost of service and rate design methodology, including semi-annual courses for EUCI, an industry conference organization.

Mr. Burnham conducts acquisition, privatization, and competitive assessments, which include the development and evaluation of financial models that provide clients with an assessment of the impacts associated with several technical and financial feasibility alternatives. These analyses include impacts on projected net operating results from potential financings, investments, and other client actions. His efforts have involved assessing public versus private utility ownership, developing sales and revenue summaries, analyzing utility investment options, and reviewing power price trends.

RELEVANT EXPERIENCE
Cost of Service and Rate Design
Mr. Burnham participates in and leads the review of cost of service and retail rate design practices for numerous electric utilities. The services provided include the development of historical and projected revenue requirements and defensible cost allocation methodologies to apply to clients' customer classes.

He has utilized COS methodologies, unbundling approaches, cost classification techniques, cost allocation methods, and rate design alternatives. He has provided the technical and financial analysis associated with the utility's distribution, transmission, and generation functions.

Mr. Burnham has led projects requiring re-classification of large energy users within the system from contract rates to tariff rates. Mr. Burnham has determined fixed cost allocation by customer class from detailed feeder analysis, provided testimony supporting revenue requirements in a litigated hearing process, and developed testimony to support utility cost allocation methodologies.

Mr. Burnham has provided the methodology and analysis to determine the value associated with various distributed solar technologies. He has also explored rate options designed to improve fixed cost recovery in the face of increasing levels of distributed generation on clients' systems. This has included working with clients on reforming existing net energy metering rates. He has also reviewed existing COS analysis associated with electric vehicle charging, street lighting and traffic lighting retail rate classes. He has developed specific rates and rate programs for the industrial customer base, including developing interruptible rate offerings that benefit both the industrial customer and the client.

Mr. Burnham has been responsible for leading the analysis and development of the presentations and reports and presenting results and recommendations, including proposed rates, before city councils and governing boards. 157
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SCOTT H. BURNHAM
Partner
Thoughtful Decision Making for Uncertain Times 2
Cost of Service and Rate Design (cont.)
Additionally, he has facilitated citizen advisory groups and stakeholder processes to solicit input into rate design.

American Samoa Electric
Utility, American Samoa
Arizona Public Service
Company, AZ
Aurora, CO
Austin Energy, TX
Brenham, TX
Brownfield, TX
City of Longmont (CO) /
Longmont Power and
Communications (LPC)
Colorado Springs Utilities, CO
Dover Electric System, DE
Farmington Electric Utility
System, NM
Fayetteville Public Works
Commission (NC)_
Fort Collins Utilities, CO
Georgetown Electric Utility, TX
Lafayette Consolidated
Government, LA
New England States
Committee on Electricity
(NESCOE)
Peninsula Clean Energy, CA
(CCA)
Pedernales Electric
Cooperative, Inc.

Platte River Power
Authority, CO
Port of Oakland, CA
Redding Electric Utility, CA
Riverside Public Utilities, CA
San Francisco Public Utility
Commission, CA
Silicon Valley Power, CA
South Carolina Public Service
Authority (Santee Cooper), SC
Turlock Irrigation District, CA
Vermont Public Service
Department, VT
Virgin Islands Water and
Power Authority, U.S. Virgin
Islands
Feasibility Studies and Financial Analyses
structures. He also develops pro forma financial models to determine projected revenue and costs associated with various projects and financing approaches for power generation and distribution facilities. These financial models focus on developing operating results, debt service coverage ratios, and other applicable financial metrics within the terms of a proposed financing effort. His models and associated reports have been relied upon to assess investment decisions in capital markets.

Mr. Burnham has developed projected operating results for consulting engineering reports and associated financing certifications. Further, he provided financial models that included the technical, financial, and economic input parameters to optimize the value of multiple generation sitting alternatives. He also developed a pro forma financial model for portfolio financing over 7,500 megawatts of generation capacity. Clients include:

Arizona Public Service, AZ
Black Hills Energy, CO
Brownsville Public Utilities
Board, TX
City of San Diego, CA
City of Slayton, MN
City of Valley Center, KS
CORE Electric Company, CO
Duke Energy, NC
Lafayette Consolidated
Government, LA
Vistra Energy
Wyoming Municipal Power
Agency, WY
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SCOTT H. BURNHAM
Partner
NewGen Strategies and Solutions, LLC 3
Central Electric
Cooperative, SC
City of Ann Arbor, MI
City of Chicago, IL
City of Decorah, IA
El Paso County, CO
Ember Infrastructure LLC, NY
Escalante H2 Power, TX
Fortis Capital Corp.,
Santiago, Chile

WORKSHOPS AND PRESENTATIONS
Mr. Burnham has given numerous presentations and participated in training and workshops. These activities have focused on cost of service, ratemaking, and distributed energy resources. Host organizations and the topics Mr. Burnham presented are displayed below.

Electric Utility Consultants, Inc. (EUCI)
Introduction to Cost of Service Concepts and Techniques for Electric Utilities Distributed Energy Cost / Benefit Analysis Summary / Methodology Introduction to Rate Design for Electric Utilities
Indiana State Bar Association Utility Law Section
Electric Ratemaking Workshop (CLE Credit Course)
Municipal Electric System of Oklahoma (MESO)
Distributed Energy Resources Workshop
Cost of Service / Rate Design Workshop
American Public Power Association
Review of AMI Investment Decision (with LUS)
RMEL (formerly Rocky Mountain Electrical League)
Cost of Service and Utility Rate Design
Western Load Research Association
Integrating Load Analyses into the Cost of Service and Rate Design Process (with Redding Electric Utility) Northwest Public Power Association
Blue Sky Rates Facilitation Workshop
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BRODY LIEBLER
Consultant
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net

CONTACT
225 Union Boulevard, Suite 450
Lakewood, CO 80228
[email protected]
www.newgenstrategies.net

EDUCATION
Bachelor of Science in Business
Administration, Marquette University
International Business Immersion
Program, Universidad Loyola

KEY EXPERTISE
Economic Analysis
Rate Studies
Financial Modeling
Mr. Brody Liebler joined NewGen as a Consultant in July 2024. He assists on cost of service and rate design projects, emphasizing data-driven analytics and applying his econometric analysis skills. Mr. Liebler’s experience includes financial modeling, rate calculation, cost allocation analysis, and Microsoft Excel.

PRIOR RELEVANT EXPERIENCE
Honey Smoked Fish Co.

Sales and Marketing Coordinator
The Martec Group
Market Analyst
Provided strategic direction to all outsourced partners including social, email, design, experiential, and public relations agencies. Ensured consumer-facing content aligned with the company’s brand standards and positioning.

Managed syndicated data platforms, including Nielsen Byzzer, Costco CRX, and 8451 OnDemand/Stratum (Kroger).

Responsible for presenting KPI’s, velocity lifts, and returns on marketing investments to leadership team.

Coordinated all company events and experiential activations. Notable projects include Natural Product ExpoWest and Costco Roadshows.

Supported launch and development of the first refrigerated seafood snack pack to market, Honey Smoked Salmon Stackers®, now sold nationwide.

Executed 20+ commercial due diligence engagements for private equity clients across various industries including ESG utility management, renewable energy, building & construction, food & beverage, healthcare, chemical manufacturing, automotive, and professional associations.

Conducted in-depth qualitative and quantitative research through 500+ in-depth interviews, focus groups, online discussion boards, and surveys, producing comprehensive data analyses and strategic recommendations tailored to client needs.

Composed 20+ market research reports and PowerPoint presentations. 162
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BRODY LIEBLER
Consultant
Thoughtful Decision Making for Uncertain Times 2
Huron Capital Partners
Private Equity Intern
Examined CIMs for potential platform and add on acquisitions for Flagship and Flex Equity Funds.

Engaged in calls with bankers regarding logistics of companies to better understand their investment thesis and value proposition.

Conducted detailed diligence on prospective investments, including analysis of business model and assisted in financial modeling to value potential targets. 163
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Financial and technical
education and training
BA — Princeton University,
Politics and East Asian Studies
R. Alexander Burnett
Principal, Bell Burnett & Associates
Financial and Strategic Advisors
+1 415 994 6750
[email protected] Professional experience summary • Alex Burnett is a Principal with Bell Burnett & Associates, a management and strategic consulting company serving the general municipal, utility and transportation sectors. • Alex is a finance expert with 34 years of public sector utility and transportation experience as both a banker and financial advisor having served as Head of the West Coast for Public Finance at JP Morgan, a Managing Director at Citigroup and as a Managing Director at Public Financial Management, the nation’s largest independent financial advisory firm serving the public sector, where he spent 15 years. • Alex has served as senior manager, co-manager or financial advisor on infrastructure transactions in excess of $50 billion. • Representative experience includes: financial and strategic planning, cashflow modeling and management, balance sheet strategy, rate design, credit strategy and negotiation, contract negotiation and project financing and delivery. • Municipal clients include: State of California, City of San Diego, City and County of San Francisco, San Francisco Public Utilities Commission, East Bay Municipal Utility District, Metropolitan Water District of Southern California, City of San Jose, Bonneville Power Administration, Energy Northwest, Southern California Public Power Authority, Anaheim Public Utilities, Burbank Water and Power, City of Vernon, Northern California Power Agency, Silicon Valley Power, Transmission Agency of Northern California, Bay Area Rapid Transit District, County of Alameda.

Select engagement experience
• City of Indio– Served as the lead working with Indio. BB&A’s responsibilities include developing a Strategic and Funding Plan for critical electric infrastructure investment in the City in connection with the Imperial Irrigation District. • San Francisco Public Utilities Commission – Served as Engagement Leader for three different enterprise funds of the SFPUC. In this capacity, responsible for the development of a cost optimization model for the City’s Sewer System Improvement Program (SSIP), a 20-year city-wide infrastructure program with an overall cost in excess of $4 billion. Evaluated both capital and operating forecasts over a 50-year period to assess the impacts of different assumptions on financial health, rates and charges, financial feasibility, customer affordability, and compliance with SFPUC policies.

Currently working with the SFPUC on infrastructure development for the Power Enterprise. • Imperial Irrigation District – Worked with IID in the economic valuation and funding strategy for potential transmission assets, including analyzing cost/benefit and identifying financial, risk, and operational considerations.

BB&A RESUMES
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1 Financial and technical
education and training
Harvard University Program
for Senior Executives in State
and Local Government
Pepperdine University
Masters of Business
Administration
St. Louis University Bachelor
of Science
Michael A. Bell
Principal, Bell Burnett & Associates
Financial and Strategic Advisors
+1 209 217 6358 [email protected]
Professional experience summary
Mike Bell is a Principal with Bell Burnett & Associates, a management and strategic consulting company serving the general municipal, utility and transportation sectors.

Mike is a finance expert with 40 years of public sector experience as a financial advisor and working within government. Mike spent 20 years in executive management positions in city government and the utility industry.

Mike founded Michael Bell Management Consulting (MBMC), a strategic and financial consulting firm, and managed the engineering, design, and management consulting services for RW Beck, a nationally recognized consulting engineering company serving the electric, water, wastewater, and solid waste businesses in California. Mike served as Assistant General Manager and Economic Planning Manager for 20 years, working for both the Anaheim Public Utilities and City Water, Light and Power in Springfield (IL).

Representative experience includes: strategic planning, organizational reviews, operational and financial planning, and program and service development to cities, counties, utilities and special districts.

Mike has detailed knowledge of both long- and short-term financing strategies and has acted as the key decision-maker in more than $9.0 billion project financings. He has prepared numerous analyses and feasibility reports used to finance infrastructure, including major water, wastewater, telecommunications, and electric generation, transmission and distribution system projects. Mike has provided expert testimony before various public bodies such as city councils, utility boards, and participating organizations in multifaceted business concerns.

Select engagement experience
Bonneville Power Administration (BPA) – Mr. Bell provided professional expertise and advice in the development of long term financial and strategic plans for the BPA. The plans included targets for financial health, including cash balances, leveraging, secondary revenue risk management and capital deployment efficiency. Mr. Bell continued service to assist BPA with implementation of the plans with an emphasis on operational and program reviews, cost containment and efficiency studies.

Glendale Water and Power (GWP) – Developed a comprehensive update of GWP’s Water and Electric Department financial plans including the development of a 5-year financial plan. During this assignment annual audits and budgets were completed and adopted; cost of service analysis updated; new water, and electric rates implemented, and two bond issues completed, including document development and review, discussions with rating agencies, and interaction with the City’s advisors, attorneys, and bankers.

Riverside Public Utilities (RPU) – Assisted RPU with the development of guidelines and goals that provide direction for the financial management of RPU. Policies and guidelines include revenue, debt, investment, risk management, accounting and reporting, budget, and reserves.
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2 Financial and technical
education and training
University of California;
Riverside, CA – Master of
Science, Environmental
Economics & Natural
Resource Economics &
Policy
Reed College; Portland, OR –
Bachelor of Arts, Physics
Drew Atwater
Principal, Bell Burnett & Associates
Financial and Strategic Advisors
+1 818 935 0205
Professional experience summary
Drew Atwater is an Principal with Bell Burnett & Associates, a management and strategic consulting company serving the general municipal, utility and transportation sectors.

Drew is a finance expert with 15 years of public sector experience as a utility rate consultant and working within government. Drew spent 5 years in executive management positions in the utility industry.

Built highly skilled team of top talent, focusing on recruiting mission-driven individuals who understand organization’s purpose, fostering culture of innovation and continuous improvement, and establishing feedback mechanisms to enhance employee support. Achieved recognition as top workplace in Orange County and US.

Enhanced financial management operations by establishing streamlined flow of information across departments, building cross-functional relationships, and enabling cutting-edge modeling for forecasting purposes:
o Achieved AAA rating from Fitch and S&P, won numerous financial awards, and implemented financial best practices certified by various organizations.
o Secured high-value grant awards, including $10M Federal Emergency Management Agency (FEMA), $2M grant for operations and supportability implementation system (OASIS) ranking, $405K US Bureau of Reclamation (USBR) project, and water efficiency rebates of $500K.

Led several high-impact capital projects for Moulton Niguel Water District (MNWD) that garnered awards for customer benefits and innovative technologies, including $8M transition to smart meters, replacement of outdated billing system, organization-wide Resiliency Action Plan with global utility best practices and implementation of new work order maintenance management system.

Lead efforts to optimize metropolitan water district’s rate structure.

Oversaw stakeholder management, provided strategic policy recommendations, led development and implementation of key financial planning processes, studies, and policies, ensured compliance with government regulations, and supported organization’s strategic goals through financial forecasting and analysis.
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barr.com

EXPERIENCE
Tom has more than four decades of experience serving as principal and project manager for electrical engineering projects. He has an extensive background in designing and analyzing low-, medium-, and high-voltage power generation, transmission, and distribution systems including utility, industrial, and commercial systems (600V to 500kV). He has specialized expertise in protective relaying and communication systems. Tom focuses on larger substation, generation, and transmission/distribution projects. Prior to joining Barr, Tom founded Exponential Engineering Company in 1993, leading that firm to provide responsive and personalized service to the electric power industry.

An active and dedicated member of the clean energy technology and renewable energy sectors, Tom served as co-chair of the Colorado Clean Energy Cluster from 2015–2017. He stays at the forefront of technological innovation to integrate new technologies into existing systems. He is passionate about keeping power affordable and sustainable by moving existing electric and energy systems toward more distributed, local microgrids, storage and local generation. A leader in the power industry, he is committed to teaching and mentoring clients and employees.

Colorado Springs Utilities; Kelker Substation; Colorado Springs, CO; lead electrical engineer
Provided physical design of a substation to replace an existing installation on the same property. The substation includes a fivebay 230kV breaker-and-a-half bus, a six-bay 115kV breaker-anda-half bus, four 230/115kV 280MVA transformers, one 230-

34.5kV 104MVA transformer, and two 230-13.2kV 37MVA
transformers.

Title

TOM GHIDOSSI,
PE
Vice President, Senior Electrical Engineer
Education
MBA, University of Colorado, 1981
BS, Electrical Engineering, Minor
in business administration,
University of Colorado, 1979
Registration
Professional Engineer: Alaska,
California, Colorado, Florida,
Indiana, Louisiana, Michigan,
Nebraska, New Mexico, Puerto
Rico, Texas, Utah, Washington,
Wisconsin, and Wyoming
Digital skill set
ASPEN; SKM; ETAP; Milsoft; PLSCADD; Mathcad
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TOM GHIDOSSI, PE
Loveland Water & Power; Master Plan; Loveland, CO; lead electrical engineer Worked on the ten-year master plan for the distribution utility, including system modeling for load growth and capital construction projects; capital expenditure estimating and scheduling; review of feeder ties and operational philosophies.

DKMT Associates; Utility Evaluation and Strategic Plan; Independence, MO; project manager and lead electrical engineer
Evaluated existing generation, transmission, substation, and distribution assets, including condition assessment. Also developed a strategic plan to predict future capital and operating requirements and rate impacts.

Work before Barr
Various clients; various projects; U.S.; project manager and principal electrical engineer Provided protective relaying services for more than four decades for all protective relaying systems manufactured from the 1940s to the present. Work includes design, application, specification, setting, testing, maintenance, and training of personnel. Specialized in microprocessor relaying systems for generation interconnections, large generators, and transmission lines.

Various clients; various projects; U.S.; project manager and principal electrical engineer Managed and designed numerous transmission line projects (69kV–345kV) across the U.S. for municipal and rural electric utilities. Responsibilities include electrical design, structure staking, design data preparation, structure mechanical analysis, conductor loading, equipment specification, and construction administration and observation.

Various clients; various projects; U.S.; project manager and principal electrical engineer Developed power system planning studies that range from two-year construction work plans to 20-year long range plans. Work includes loadflow, short circuit, protective device coordination, sectionalizing, and stability studies for overhead and underground systems through 345kV. More complex analyses include feasibility, system impact, and facilities studies for transmission and distribution interconnection of generation systems ranging from 1MW to 300MW; arc flash hazard analyses for enclosed equipment and open-air substations; and modeling and analysis for starting large motors connected to weak systems.

Various clients; various projects; U.S.; project manager and principal electrical engineer Designed outdoor, indoor, and GIS substation projects (4.16kV–500kV), including station arrangement, grounding, lightning protection, structures and bus, equipment specifications, protective relaying and control schemes, SCADA interface, testing, and checkout. His projects encompass not only new substations but conversions, expansions, and voltage upgrades.

Various clients; various projects; intermountain region of the U.S.; project manager and principal electrical engineer
Provided design and field staking for distribution lines (5kV–34.5kV), both overhead and underground. Work includes upgrades/replacements, conversion to three-phase, and new installations. 168
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TOM GHIDOSSI, PE
Various clients; various projects; intermountain region of the U.S.; project manager and principal electrical engineer
Planned and performed field data collection with GPS, constructed GIS databases, and provided finished electric utility maps. Includes development of field mapping databases for GPS units, coordination of field crews, data validation, and conversion from various database formats.

Various clients; various projects; U.S.; project manager and principal electrical engineer Provided a range of generation interconnection services for renewable and battery storage projects ranging from small (1MW) to large (300MW) facilities. Work included creating interconnection applications, performing system impact and facility studies, designing distribution and transmission interconnections, and creating protective relay settings for interconnection protection.

Various clients; various projects; U.S.; project manager and principal electrical engineer Performed distribution and transmission severance planning and analysis; cost estimation using systeminventory data; and field-observation condition assessments for severance planning. Work includes overseeing the analysis process, which includes conducting load flow and voltage drop studies for base systems as well as under N-1 conditions.

Various clients; various projects; U.S.; principal electrical engineer Trained electrical engineers, staff, technicians, and line workers through classes and seminars across the U.S. for 40-plus years, in both academic and professional settings. Includes providing complete training in protective relaying application, setting, testing, and maintenance. Relaying topics range from vintage electromechanical through solid-state to microprocessor devices and includes substation, transmission, generation, distribution, and motor protection. Other seminar topics include transmission-line design and applying PLS-CADD and PLS-POLE analysis software.

Various clients; various projects; U.S.; principal electrical engineer Provided expert testimony related to the design and performance of utility transmission, distribution, and substation facilities. Includes testifying before state utility regulators, arbitration boards, courts of law, city councils, and utility boards.

Affiliations Institute of Electrical and Electronics Engineers (IEEE) life member National Society of Professional Engineers (NSPE)
Tau Beta Pi Engineering Honor Society
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TOM GHIDOSSI, PE
Training Westinghouse Protective Relay School, 1983
Basler Generator Protection, 2000
Advanced Protective Relaying, University of Wisconsin, 2002 University of Wisconsin Design of Transmission Line Structures and Foundations, 2003
WindMil Work Plan, 2004
NESC Seminar, 2006
APPA Arc Flash Seminar, 2016
Publications and
presentations
Fundamentals of Protective Relaying (two-to-four-day course), 2006, 2009, 2015, 2019, 2024
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NewGen Strategies Solutions
Amendment to Original Proposal
Scope of Services – Preliminary Power Supply Feasibility Analysis The scope of services includes a series of tasks designed to evaluate the City’s potential proposal to purchase power from the Developers (which includes a portfolio of various resources, including the nearby waste to energy facilities, future solar installations and other generation). Further, the Developers propose to construct a limited distribution system that would intertie with the generation resource to serve selected industrial load within the City. The City would resell the power purchased from the Developers, operate the distribution system, and be responsible for billing the industrial customers for the electrical service provided. The scope of services is designed to determine the financial feasibility of the proposed arrangement to create a “limited” municipal electric utility (MEU). For the purposes of this proposal, “limited” is meant to apply only to specific industrial loads within or around the City (i.e., the industrial loads identified by the City) Additionally, the City wishes to evaluate the potential to create a unique Community Choice Aggregator (CCA) entity, separate from the existing arrangement to join Pioneer CCA (which is estimated to begin operations for the City in 2027, and has indicated that it would allow the City to withdraw its current membership application without penalty). The creation of a City CCA would allow the City to purchase power from the Developers (and likely other sources) and compete to provide power supply alternatives for load with Pacific Gas & Electric (PG&E). As with other CCA entities, the City would continue to rely on PG&E to deliver power to existing customers within the City, which would have the option to purchase power supply from the City CCA. The evaluation of these two scenarios (a limited MEU and a City CCA) will be accomplished by estimating the annual cash flow requirements for each entity compared to the cash flow requirements of continued service by PG&E.

Task I Data Request and Kick-Off Meeting (Virtual)
NewGen will develop a data request for the City regarding specific information to be considered for this analysis. This will include data regarding the existing industrial electrical load to be served by the City under the potential arrangement with the Developers (monthly usage characteristics, including energy and demand usage by meter for the previous two years, as included in monthly bills received from PG&E by the current industrial load customers). This will include information provided to the City from the Developers regarding indicative power pricing ($/MWh) from its portfolio of resources by month, or whatever time period as appropriate (and any indication of price adjustments over the time of the proposed Power Purchase Agreement). The data requested from the City will also include any estimated costs associated with exit fees or other provisions of services to be required by PG&E, as appropriate.

Additionally, this data request will include data regarding the entire City load for evaluation of the potential City CCA analysis (total load by class, including potential billing determinants such 172
Item 10.
as energy sales, billed demand and number of meters). Historical and projected City load growth will also be included within the data request. This request will also include price estimates for potential power contracts (in addition to those provided by the Developers) to be able to serve the entire City load, as well as any indicative pricing the City may have received from Pioneer CCA. NewGen will rely on the City to obtain reasonable indicative power pricing estimates for the City CCA scenario. Task 1 will also include a virtual kick-off meeting between NewGen and the City representatives to establish a timeline of project milestones, communication protocols, and review and discussion of the initial data request.

Task 2. Develop Preliminary Financial Feasibility Model NewGen will create an Excel based financial feasibility model (Model) for the purposes of developing a preliminary analysis to evaluate the potential savings or costs to the City, under both the “limited MEU” scenario, and the City CCA scenario. The Model will be constructed on an annual cash basis over a 10 year-period and will include estimated operational and maintenance costs (O&M), including those for purchase power, administrative and general (A&G) costs, as well as potential upfront costs (start-up costs) estimated to be necessary to allow for its operations as an electric utility. To the extent that the MEU (or City CCA) will be required to issue debt to pre-fund reserves, power purchase agreements, or capital investments, the Model will include estimated financing mechanisms to do so (including a consideration of the cash reserve needs to meet potential liquidity requirements). These costs will be developed in coordination with the City, based on NewGen’s industry experience working with municipal electric utilities and CCAs in California. The Model will estimate the annual all-in costs to serve the selected industrial customers by the City (under the limited MEU scenario), compared to the estimated annual all-in costs for to the industrial customers under continued PG&E service (retail rates as published, and estimated to increase based on historical year over year changes).

Financial feasibility will be defined within the context of this project as the annual cost difference for the City to serve industrial customers via power provided by the Developers compared to continued PG&E retail service (under the limited MEU scenario). Similarly, the model will determine the financial feasibility associated with the City CCA scenario compared to either the indicative pricing provided by Pioneer CCA or continued power supply service by PG&E. This cost difference will be established on an “all-in” unit basis (i.e. dollars per kilowatt hour (kWh) sale of electricity or $/kWh for the system). Additional analysis may be developed to create a net present value difference of the annual cash flow streams in coordination with the City.

Task 3. Report / Presentation
NewGen will create a draft letter report that describes the methodology, results, and recommendations from the analysis developed for this project. This draft letter report will be provided to the City for review and comment, which will be incorporated into the final letter report, as appropriate. Additionally, NewGen will develop a presentation summarizing the information include in the report that will be suitable for City management and/or City 173
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Council. NewGen as included in its budget estimate one on-site visit for the purposes of presenting the study results to the City.

Budget Estimate
NewGen will conduct this Study on a time and materials basis for an estimated fee of $40,000, inclusive of travel related expense as necessary, utilizing the hourly rates and personnel provided in the proposal provided to the City on 2/17.

Schedule
NewGen estimates that this Study will require approximately three to four months to complete, depending on the availability of data provided by the City. To the extent that data is not available, NewGen will work with the City to create a reasonable proxy, however, this may result in a delay in project completion.
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CITY OF OROVILLE

STAFF REPORT
TO: MAYOR PITTMAN & COUNCIL MEMBERS
FROM: BRIAN RING, CITY ADMINISTRATOR
RE: ADDITIONAL ROAD FUNDING FOR FISCAL YEAR 2025/26
DATE: APRIL 7, 2026

SUMMARY
The City Council shall consider appropriating up to $200,000 in additional funding for road projects in Fiscal year 2025/26.

DISCUSSION
This request was initially brought before the Council on February 17, 2026, at the request of Council Member Webber, Mayor Pittman and Council Member Johnstone. At that time, staff were directed to bring this item back at the first meeting in April, after Hewitt Park was open and the rainy season was coming to an end so the Council would have a better understanding if there were additional draws on the City contingency account.

The contingency account was developed to appropriate funding for unanticipated items that come up through the fiscal year that were not included in the adopted budget. If these funds are not expended, the funds remain in fund balance to help balance the budget in the following fiscal year.
$500,000 was included in this fiscal year, with $101,560 being expended thus far.

FISCAL IMPACT
Up to $200,000 from fund balance.

ACTION REQUESTED -
PROVIDE DIRECTION TO STAFF.
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ATTACHMENTS
Project list of potential uses of additional appropriations. 176
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Proposed Road Work – March through June
$139,500 for Mastic:
 Oro Dam Blvd East from Acacia Ave to Pine Oaks Rd
 Mitchell Ave from Bridge Street to Washington Ave
 Table Mountain Blvd from Grand Ave to the river
 Feather River Blvd from Oro Dam Blvd to Cal oak Rd
 Various areas on Canyon Highlands, Oro Bangor Hwy, and Valley View Dr
$60,000 for Grind and Repair:
 Foothill Blvd
 Highlands Blvd
 Myers St south of Oro Dam Blvd
 Brookdale Dr
 Nelson Ave at 3rd St
 Sections of Oro Quincy Hwy
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Page 1 ends

Oroville City CouncilApril 7, 2026

Oroville City Council
April 7, 2026