ITEM 10.4. ATTACHMENT 5
Ordinance No. XX-2022 Page 3 of 3
k. The purpose of this Ordinance is to permanently add Chapter 16.82 to the Rancho Cordova Municipal Code.
SECTION 3. Amendment of Code. Chapter 16.82 “SunCreek Specific Plan Development Impact Fees”, attached hereto as Exhibit A, is hereby added to the Rancho Cordova Municipal Code.
SECTION 4. CEQA. Approval of this Ordinance is exempt from further environmental review under the general rule in California Environmental Quality Act (“CEQA”) Guidelines section 15061(b)(3) that CEQA only applies to projects that have the potential for causing a significant effect on the environment. The proposed Ordinance is statutorily exempt from CEQA under Pub. Res. Code Section 21080(b)(8)(D) and CEQA Guidelines Section 15273(a)(4) because it involves the establishment of fees for the purpose of obtaining funds for capital projects necessary to maintain services within the SunCreek Specific Plan Area.
SECTION 5. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.
SECTION 6. Effective Date. Within fifteen (15) days after adoption, a Summary of this Ordinance shall be published once in the Grapevine Independent, or the Sacramento Bee, a newspaper of general circulation printed and published in Sacramento County and circulated in the City of Rancho Cordova, in accordance with Government Code section 36933. This Ordinance shall take effect 30 days after its adoption and, pursuant to Government Code section 66017(a), the fees established hereby shall be effective 60 days after the adoption of this Ordinance.
ADOPTED, this 16th day of May 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________________________________
Donald Terry, Mayor
ATTEST:
__________________________
Stacy Leitner, CMC
City Clerk
5094725.1
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
CHAPTER 16.82
ESTABLISHMENT OF DEVELOPMENT IMPACT FEES TO FINANCE THE COST OF
PUBLIC FACILITIES WITHIN THE SUNCREEK SPECIFIC PLAN AREA Sections:
16.82.010 Purpose
16.82.020 Definitions
16.82.030 Establishment and Administration of the SunCreek Specific Plan Onsite Roadway Fund
16.82.040 Establishment and Administration of the SunCreek Specific Plan Offsite Roadway Fund
16.82.050 Establishment and Administration of the SunCreek Specific Plan Potable Water Fund
16.82.060 Establishment and Administration of the SunCreek Specific Plan Storm Drainage Fund
16.82.070 Establishment and Administration of the SunCreek Specific Plan Backbone Wetland Mitigation Fund
16.82.080 Establishment and Administration of the SunCreek Specific Plan Park Corridors and Trails Fund
16.82.090 Establishment and Administration of the SunCreek Specific Plan Wetland Preserve Buffer Fund
16.82.100 Establishment and Administration of the SunCreek Specific Plan Area Formation Fund
16.82.110 Establishment and Administration of the SunCreek Specific Plan Administration Fund
16.82.115 Establishment and Administration of the SunCreek Specific Plan Park Development Fund
16.82.120 Imposition of Development Impact Fees
16.82.130 Payment of Development Impact Fees
16.82.140 Adoption and Compliance with SunCreek Specific Plan Development Impact Fee Program
16.82.150 Establishment of Development Impact Fees
16.82.160 Calculation of Development Impact Fees
16.82.170 Establishment of Equivalent Dwelling Unit Factors for Land Uses
16.82.180 Credit for Construction of Public Facility Improvements
16.82.190 Reimbursement for Construction of Public Facility Improvements
16.82.195 Credit or Reimbursement for Construction of Park and Recreation Facilities
16.82.200 Annual Program Fee Adjustment
16.82.210 Alternative Method and Compliance With Other Laws
16.82.010 PURPOSE.
(a) The General Plan of the City of Rancho Cordova requires that areas chosen for urban expansion shall be capable of being provided within a reasonable period of time with an adequate level of public facilities including, but not limited to, roadways, potable water, storm drainage, park corridors, and trail facilities. (b) The General Plan further requires the preparation of a plan that identifies a mechanism for financing those facilities necessary to serve urban development in areas
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
designated for urban expansion. The General Plan also contains additional policies for supporting funding and use of developer dedications, development fees, and other means to pay for an acceptable level of public facilities.
(c) The purpose of this chapter is to implement the General Plan requirements set forth in subdivisions (a) and (b) of this section and to use the authority in Article XI, Section 7 of the California Constitution by imposing development fees to fund the cost of certain public facilities, the need for which is directly or indirectly generated by the type and extent of development proposed in the City of Rancho Cordova, on which the fees will be imposed. (d) It is the further purpose of this chapter to require that adequate provision is made for developer financed public facilities within the City of Rancho Cordova as a condition to any rezoning and prior to approval of certain permits within the City.
16.82.020 DEFINITIONS.
(a) "Area" means that geographic area established for public facilities financing purposes within the City of Rancho Cordova depicted in Figure 1 attached to this ordinance and incorporated herein by reference. A detailed map of the Area depicted on Figure 1 is on file with the City Planning Department, and such maps are incorporated by reference herein. (b) "Building Permit" means the permit issued or required for Residential Development, Non-Residential Development, Commercial Development, or other development within the City, pursuant to and as further defined by the City of Rancho Cordova Building Code. (c) “City” means the City of Rancho Cordova.
(d) "Costs" means amounts spent, or authorized to be spent, in connection with the planning, financing, acquisition and development of a public facility or infrastructure including, without limitation, the costs of land, construction and inspection, engineering, administration, and consulting fees.
(e) “Council” or “City Council” means the City Council of the City of Rancho Cordova. (f) "Department" means the City of Rancho Cordova Community Development Department.
(g) "Development Impact Fee" means the fee levied by this chapter upon the approval of one or more Building Permits.
(h) “Development Unit” means a dwelling unit, for Residential Development, or square foot of building floor area, for Non-Residential Development. (i) “Director” means the Director of the Rancho Cordova Community Development Department.
(j) "Facilities" means those public facilities designated in the SunCreek Specific Plan Development Impact Fee Program.
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
(k) “Fee Resolution” means the resolution and fee schedule adopted by the City Council, as may be amended from time to time, that approves the amount of the SunCreek Specific Plan Development Impact Fees.
(l) "Improvement Plan" means the site plan of property proposed for development showing all required improvements that must be approved by the Rancho Cordova Public Works Department.
(m) “Land Use Category” means detached dwelling units, attached dwelling units, mobile homes, commercial lodging units, commercial uses, office uses, or other uses as further defined in the Fee Resolution.
(n) "Non-Residential Development" means a subdivision map, parcel map, or permit for the original construction, grading or installation of buildings other than single-family detached homes, single-family attached homes, duplexes, townhomes, condominiums, apartments, manufactured homes, and mobile homes, or improvements thereto. Non-Residential Development includes Commercial Development. Typically, Non-Residential Development consists of buildings to be occupied by retail, service, or other commercial businesses or by offices as regulated by the City of Rancho Cordova Zoning Code, but may also include buildings for use by churches, daycare centers, private schools, and other institutional uses. Mixed-use buildings consisting of both dwelling units and commercial and/or office areas will have the respective building areas treated as either Residential Development or Non-Residential Development for purposes of this chapter.
(o) "Planning Director" means the Planning Director of the City of Rancho Cordova. (p) "Program Fee per Development Unit" means the development impact fee per Development Unit for a particular category of facilities. Such Program Fees, identified in the Fee Resolution, were established using an allocation of public facility costs, as identified in SunCreek Specific Plan Capital Improvement Plan based on land use categories identified in the SunCreek Specific Plan Development Impact Fee Program Nexus Study. (q) "Programmed Cost" means the estimated cost of constructing a facility based upon the unit costs for each construction item plus a fixed contingency costs for engineering, permits, and construction as set forth in the SunCreek Specific Plan Capital Improvement Plan and its public facilities project cost estimates, as periodically updated and adopted by resolution of the Council.
(r) “Residential Development” means a subdivision map, parcel map, or permit for the original construction, grading or installation of dwelling units for residential use including detached and attached housing for owner or rental occupancy. For purposes of this chapter, Residential Development includes construction of or improvements to buildings or portions of buildings consisting of dwelling units constructed on sites designated Low Density Residential, Medium Density Residential, Compact Density Residential, High Density Residential, High Density Residential, Village Center or Regional Town Center as defined in the SunCreek Specific Plan.. Non-residential development permitted by right or with a use permit, constructed on sites zoned for residential use are Non-Residential Development for purposes of this chapter.
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
(s) “SunCreek Capital Improvement Plan” means the projects identified and the cost estimates prepared, and as may be updated, for the public facilities identified in the SunCreek Specific Plan Development Impact Fee Nexus Study.
(t) "SunCreek Specific Plan Development Impact Fee Program" means the Fee Schedule, including any amendments thereto, adopted by resolution by the Council for financing of designated public facilities to serve the City of Rancho Cordova, including, but not limited to, a designation of those facilities to be constructed with the Development Impact Fees collected pursuant to this chapter, the priority list (“Priority List”) for commencement of construction, the estimated cost of construction of the facilities and the total number of dwelling unit equivalents within the SunCreek Specific Plan Area of the City of Rancho Cordova as established.
16.82.030 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN ONSITE ROADWAY FUND.
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Onsite Roadway Fund. All amounts collected from onsite roadway fees from the SunCreek Specific Plan Area pursuant to this chapter shall be placed in said fund and shall be expended by the City of Rancho Cordova or its successor agency solely to pay the costs identified for onsite roadways in the capital improvement plan of the SunCreek Specific Plan Development Impact Fee Program.
(b) The Onsite Roadway Fund shall be administered by the Director.
16.82.040 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN OFFSITE ROADWAY FUND.
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Offsite Roadway Fund. All amounts collected from offsite roadway fees from the SunCreek Specific Plan Area pursuant to this chapter shall be placed in said fund and shall be expended by the City of Rancho Cordova or its successor agency solely to pay the costs identified for offsite roadways in the capital improvement plan of the SunCreek Specific Plan Development Impact Fee Program.
(b) The Offsite Roadway Fund shall be administered by the Director.
16.82.050 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN POTABLE WATER FUND.
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Potable Water Fund. All amounts collected from potable water fees from the SunCreek Specific Plan Area pursuant to this chapter shall be placed in said fund and shall be expended by the City of Rancho Cordova or its successor agency solely to pay the costs identified for potable water facilities in the capital improvement plan of the SunCreek Specific Plan Development Impact Fee Program.
(b) The Potable Water Fund shall be administered by the Director.
16.82.060 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN STORM DRAINAGE FUND.
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Storm Drainage Fund. All amounts collected from storm drainage fees from the SunCreek Specific Plan Area pursuant to this chapter shall be placed in said fund and shall be expended by the City of Rancho Cordova or its successor agency solely to pay the costs identified for storm drainage facilities in the capital improvement plan of the SunCreek Specific Plan Development Impact Fee Program.
(b) The Storm Drainage Fund shall be administered by the Director.
16.82.070 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN BACKBONE WETLAND MITIGATION FUND.
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Backbone Wetland Mitigation Fund. All amounts collected from backbone wetland mitigation fees from the SunCreek Specific Plan Area pursuant to this chapter shall be placed in said fund and shall be expended by the City of Rancho Cordova or its successor agency solely to pay the costs identified for backbone wetland mitigation costs in the capital improvement plan of the SunCreek Specific Plan Development Impact Fee Program. (b) The Backbone Wetland Mitigation Fund shall be administered by the Director.
16.82.080 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN PARK CORRIDORS AND TRAILS FUND.
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Park Corridors and Trails Fund. All amounts collected from park corridors and trails fees from the SunCreek Specific Plan Area pursuant to this chapter shall be placed in said fund and shall be expended by the City of Rancho Cordova or its successor agency solely to pay the costs identified for park corridors and trails facilities in the capital improvement plan of the SunCreek Specific Plan Development Impact Fee Program. (b) The Park Corridors and Trails Fund shall be administered by the Director.
16.82.090 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN WETLAND PRESERVE BUFFER FUND.
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Wetland Preserve Buffer Fund. All amounts collected from storm drainage fees from the SunCreek Specific Plan Area pursuant to this chapter shall be placed in said fund and shall be expended by the City of Rancho Cordova or its successor agency solely to pay the costs identified for wetland preserve buffer facilities in the capital improvement plan of the SunCreek Specific Plan Development Impact Fee Program.
(b) The Wetland Preserve Buffer Fund shall be administered by the Director.
16.82.100 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN AREA FORMATION FUND.
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Area Formation Fund. All amounts collected from plan area formation fees from
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
the SunCreek Specific Plan Area pursuant to this chapter shall be placed in said fund and shall be expended by the City of Rancho Cordova or its successor agency solely to pay the costs identified for plan area formation and implementation in the capital improvement plan of the SunCreek Specific Plan Development Impact Fee Program.
(b) The Plan Area Formation Fund shall be administered by the Director.
16.82.110 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN ADMINISTRATION FUND.
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Administration Fund. All amounts collected from administration fees from the SunCreek Specific Plan Area pursuant to this chapter shall be placed in said fund and shall be expended by the City of Rancho Cordova or its successor agency solely to pay the costs associated with administering the SunCreek Specific Plan Development Impact Fee Program. (b) The Administration Fund shall be administered by the Director.
16.82.115 ESTABLISHMENT AND ADMINISTRATION OF THE SUNCREEK SPECIFIC PLAN PARK DEVELOPMENT FUND.
(a) There is hereby created a special interest-bearing account entitled the SunCreek Specific Plan Park Development Fund. All amounts collected from park development fees from the SunCreek Specific Plan Area pursuant to this chapter or pursuant to a City Development Agreement shall be placed in said fund and shall be expended by the City of Rancho Cordova, its successor agency, or another entity designed by City, solely to pay the costs identified for plan area park development in the SunCreek Specific Plan Area. (b) The Administration Fund shall be administered by the Director.
16.82.120 IMPOSITION OF DEVELOPMENT IMPACT FEE.
No change in a land use zoning designation shall be approved within the SunCreek Specific Plan Area unless payment of the Development Impact Fees established by this chapter is required of the property owner as a condition of such approval. No building permit shall be approved for property within the SunCreek Specific Plan Area unless the Development Fees for that property are paid as required by this chapter. No small lot final map shall be approved unless the Plan Area Formation Fee has been paid as required by this chapter.
16.82.130 PAYMENT OF DEVELOPMENT IMPACT FEES.
The Development Impact Fees imposed pursuant to this chapter shall be paid by the property owner to the Department, in an amount calculated pursuant to Sections 16.82.150, 16.82.160, and 16.82.170. The fees shall be calculated upon the approval of subdivision maps and shall be paid upon issuance of building permits, with the exception of the Plan Area Formation Fee which shall be paid prior to final map. For projects that are subject to building permits, but not subdivision map approval, the fees shall be both calculated and paid upon issuance of the building permits.
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
16.82.140 ADOPTION OF THE CAPITAL IMPROVEMENT PLAN AND COMPLIANCE
WITH THE PRIORITY LIST OF SUNCREEK SPECIFIC PLAN DEVELOPMENT IMPACT FEE PROGRAM.
(a) The Council shall by resolution adopt the capital improvement plan of the SunCreek Specific Plan Development Impact Fee Program. The Council shall review the capital improvement plan not less than annually and may amend it by resolution at its discretion. (b) With the exception of facilities approved by the Director for construction by a property owner pursuant to Section 16.82.190, all facilities shall be funded in accordance with the priority list established for the SunCreek Specific Plan Development Impact Fee Program.
16.82.150 ESTABLISHMENT OF DEVELOPMENT IMPACT FEES
(a) A separate Development Impact Fee is hereby established for each of the following categories:
1. SunCreek Specific Plan Onsite Roadway Fee.
2. SunCreek Specific Plan Offsite Roadway Fee.
3. SunCreek Specific Plan Potable Water Fee.
4. SunCreek Specific Plan Storm Drainage Fee.
5. SunCreek Specific Plan Backbone Wetland Mitigation Fee.
6. SunCreek Specific Plan Park Corridors and Trails Fee.
7. SunCreek Specific Plan Wetland Preserve Buffer Fee.
8. SunCreek Specific Plan Area Formation Fee.
9. SunCreek Specific Plan Administration Fee.
10. SunCreek Specific Plan Park Development Fee.
(b) There is hereby created the SunCreek Specific Plan Fee Area of the City of Rancho Cordova, as shown in Figure 1, attached to this ordinance, and incorporated herein by reference.
(c) The SunCreek Specific Plan Fees as listed above in Section 16.82.150(a) shall apply to all property within the SunCreek Specific Plan Fee Area. (d) Future Areas of the SunCreek Specific Plan Development Impact Fee Program may be created as additional public facilities financing plans are implemented for remaining undeveloped adjacent to the Specific Plan Area or other areas outside of the City of Rancho Cordova that may be annexed to the City in the future.
16.82.160 CALCULATION OF DEVELOPMENT IMPACT FEES.
(a) For Single Family Residential Development and Multi-Family Residential Development, the development fees per dwelling unit set forth in Sections 16.82.120 and
16.82.130 shall be calculated pursuant to the following formula:
F = P
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
Where:
F = the development fee for each category of public facilities to be paid for each dwelling unit by the owner of property for which a change in land use zone has been approved or the permits described in Section 16.82.120 are proposed for approval; and
P = Program Fee per Dwelling Unit for each category of public facilities for the type of development as shown in the SunCreek Specific Plan Development Impact Fee Program.
(b) For Non-Residential Development, the development fees per building permit set forth in Sections 16.82.120 and 16.28.130 shall be calculated pursuant to the following formula:
F = P x S
Where:
F = the development fee for each category of public facilities to be paid for each building permit by the owner of property for which a change in land use zone has been approved or the permits described in Section 16.82.120 are proposed for approval; and
P = Program Fee per square foot of building floor area for each category of public facilities for the type of development as shown in the SunCreek Specific Plan Development Impact Fee Program.
S = the number of square feet of building floor area proposed for development. (c) The administration fee per building permit as set forth in Sections 16.82.120 and
16.82.130 shall be calculated pursuant to the following formula:
F = T x 3.0%
Where:
F = the administration fee to be paid for each dwelling unit for Single Family Residential Development and Multi-Family Residential Development, or for each building permit for Non-Residential Development, by the owner of property for which a change in land use zone has been approved or the permits described in Section 16.82.120 are proposed for approval.
T = the sum of the Development Fees for all fee categories of public facilities to be paid for each dwelling unit for Single Family Residential Development and MultiFamily Residential Development, or for each building permit for Non-Residential Development, before any applicable credits pursuant to Sections 16.82.180 or
16.82.195 are applied, by the owner of property for which a change in land use zone has been approved or the permits described in Section 16.82.120 are proposed for approval.
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
(d) The plan area formation fee per acre as set forth in Sections 16.82.120 and
16.82.130 shall be calculated pursuant to the following formula:
F = P x A
Where:
F = the plan area formation fee to be paid for each final map by the owner of property for which a change in land use zone has been approved or the final map described in Section 16.82.120 are proposed for approval; and P = Program Fee per net developable acre for Plan Area Formation for residential development and non-residential development as shown in the SunCreek Specific Plan Development Impact Fee Program
A = net developable acre excluding public and other land uses, including roads, schools, parks, detention basins, public/quasi-public parcels, wetland preserves and wetland buffers.
(e) The Development Fees shall be paid by the property owner in the amount as calculated pursuant to subdivision (a), (b), (c) and (d) of this section for the categories of facilities established by Section 16.82.150, which are applicable. (f) For the purpose of calculating SunCreek Specific Plan Development Fees pursuant to subdivision (a), (b), (c), and (d) of this section for properties with an approved use permit which significantly changes the underlying use of the site or properties within a Special Planning Area, the Planning Director is hereby authorized to determine the EDU factors for each fee category which correspond most directly to the use and density. (f) For the purpose of calculating SunCreek Specific Plan Development Fees pursuant to subdivision (a), (b), (c), and (d) of this section for building permits for land use categories not included in this ordinance, the Planning Director is hereby authorized to determine the EDU factors for each fee category which correspond most directly to the use and density.
16.82.170 ESTABLISHMENT OF EQUIVALENT DWELLING UNIT FACTORS FOR LAND USES WITHIN THE SUNCREEK SPECIFIC PLAN AREA.
(a) The equivalent dwelling unit factors for property within the SunCreek Specific Plan area are based on the SunCreek Specific Plan Development Impact Fee Program. (b) The equivalent dwelling unit (EDU) factors utilized to calculate the Onsite and Offsite Roadway Development Fees shall be as follows:
Land Use Categories EDU Factor
Low Density Residential 1.00 per unit
Medium Density Residential 1.00 per unit
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
Compact Density Residential 0.78 per unit
High Density Residential 0.78 per unit
Village/Regional Town Center - Retail 1.08 per 1,000 sf Village/Regional Town Center - Office 0.95 per 1,000 sf (c) The equivalent dwelling unit (EDU) factors utilized to calculate the Potable Water Development Fees shall be as follows:
Land Use Categories EDU Factor
Low Density Residential 1.00 per unit
Medium Density Residential 1.00 per unit
Compact Density Residential 0.75 per unit
High Density Residential 0.75 per unit
Village/Regional Town Center - Retail 4.00 per acre
Village/Regional Town Center - Office 4.00 per acre
(d) The equivalent dwelling unit (EDU) factors utilized to calculate the Storm Drainage Development Fees shall be as follows:
Land Use Categories EDU Factor
Low Density Residential 0.40 per acre
Medium Density Residential 0.50 per acre
Compact Density Residential 0.70 per acre
High Density Residential 0.70 per acre
Village/Regional Town Center - Retail 0.90 per acre
Village/Regional Town Center - Office 0.90 per acre
(e) The equivalent dwelling unit (EDU) factors utilized to calculate the Wetland Mitigation, Wetland Preserve Buffer, and Plan Area Formation Development Fees shall be as follows:
Land Use Categories EDU Factor
Low Density Residential 1.00 per unit
Medium Density Residential 1.00 per unit
Compact Density Residential 1.00 per unit
High Density Residential 1.00 per unit
Village/Regional Town Center - Retail 1.00 per acre
Village/Regional Town Center - Office 1.00 per acre
(f) The equivalent dwelling unit (EDU) factors utilized to calculate the Park Corridors and Trails Development Fees shall be as follows:
Land Use Categories EDU Factor
Low Density Residential 2.95 per unit
Medium Density Residential 2.95 per unit
Compact Density Residential 2.03 per unit
High Density Residential 1.54 per unit
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
Village/Regional Town Center - Retail 0.00 per acre
Village/Regional Town Center - Office 0.00 per acre
16.82.180 CREDIT FOR CONSTRUCTION OF SPECIFIC PLAN PUBLIC FACILITIES. (a) Upon application by the property owner or his authorized agent, the Director may authorize the construction of any specific plan public facilities, or portions thereof, in order of priority as designated on the Priority List in the SunCreek Specific Plan Development Impact Fee Program in lieu of all, or a portion of, the Development Impact Fees required by this chapter. If so authorized, the credit toward Specific Plan Development Impact Fees to be provided to the property owner for such in lieu construction shall be equal to eighty percent (80%) of the programmed cost of the facility, as set forth in the SunCreek Specific Plan Development Impact Fee Program in effect at the time when the in lieu construction is so authorized, including, but not limited to, unit prices, quantities and project descriptions. Prior to credit being given and/or issuance of any of the approvals set forth in Section 16.82.130 (e.g., approvals of building permits, subdivisions or zoning amendments), the construction of any facility authorized by this section must either be accepted by the Department, or the property owner must post security for the complete performance of the construction in a form acceptable to the Director and the City Attorney.
(b) Upon acceptance of the completed facility and after reconciliation of the final facility costs, the remaining twenty percent (20%) of the programmed cost as designated in the SunCreek Specific Plan Development Impact Fee Program may be issued as a credit balance to the property owner that may be utilized within the City of Rancho Cordova as determined by the Director.
(c) Where the amount of the credit is less than the amount of the SunCreek Specific Plan Development Fee otherwise applicable to the development in question, the property owner must pay to the City the difference in accordance with Section 16.82.130. (d) Where the amount of the credit is greater than the amount of the SunCreek Specific Plan Development Fee, the property owner shall be paid the difference only from the applicable SunCreek Specific Plan Fund within a reasonable time after the project is accepted by the Department pursuant to Section 16.84.120 in order of priority on the Priority List in the SunCreek Specific Plan Development Impact Fee Program when funds are available. (e) Where a facility is proposed for construction by the property owner, the Director at his or her discretion may either (1) provide the property owner with a credit pursuant to this section or (2) enter into a reimbursement agreement with the property owner pursuant to Section 16.82.190.
16.82.190 REIMBURSEMENT FOR CONSTRUCTION OF SUNCREEK SPECIFIC
PLAN PROJECTS IN ADVANCE OF THE SUNCREEK SPECIFIC PLAN DEVELOPMENT IMPACT FEE PROGRAM PRIORITY LIST SCHEDULE.
(a) Upon application by the property owner or his authorized agent, the Director may enter into a reimbursement agreement authorizing the construction of any specific plan facilities, or portions thereof, designated in the SunCreek Specific Plan Development Impact Fee
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
Program. In addition to the requirements of subsection (d), the agreement shall set forth the amount to be reimbursed, the time and manner in which payments are to be made, and shall state that reimbursement by the City will only be made from the applicable SunCreek Specific Plan Fund when funds are available.
(b) The amount of reimbursement shall be the actual cost of the facility up to the programmed cost of the facility as set forth in the SunCreek Specific Plan Development Impact Fee Program in effect at the time the construction contract is awarded for that specific facility.
The time of reimbursement shall be the end of the fiscal year in which the facility is scheduled for construction, based on the Priority List in the SunCreek Specific Plan Development Impact Fee Program, or as different timing is otherwise authorized by the Director. (c) By entering into a reimbursement agreement, a property owner is not relieved of the obligation to pay the applicable SunCreek Specific Plan Development Fees in the manner and amount specified by this chapter.
(d) If the Director enters into an agreement authorized by subdivision (a) of this section, or credit agreement as authorized by Section 16.82.150(c) the agreement shall provide that: (1) The general fund of the City is not liable for payment of any obligations arising from the agreement; (2) the credit or taxing power of the City is not pledged for the payment of any obligations arising from the agreement; (3) the landowner shall not compel the exercise of the City taxing power or the forfeiture of any of its property to satisfy any obligations arising from the agreement; and (4) the obligation arising from the agreement is not a debt of the City, nor a legal or equitable pledge, charge, lien, or encumbrance, upon any of its property, or upon any of its income, receipts, or revenues, and is payable only from the applicable SunCreek Specific Plan Development Impact Fees deposited in the applicable Transportation Fund. (e) Property owner or his authorized agent shall apply for reimbursement as set forth in subdivisions (a) (b) (c) and (d) of this Section no later than five (5) years after the specific plan public project is constructed and accepted. Property owner shall waive the right of reimbursement for construction costs payable under this Section when the reimbursement is not applied for within said five (5) year limitation.
16.82.195 CREDIT OR REIMBURSEMENT FOR CONSTRUCTION OF PARK AND RECREATION FACILITIES.
(a) Upon application by the property owner or his authorized agent, City of Rancho Cordova or any other entity as designated by the City as the park facilities provider, may authorize the construction of any park and recreation facilities, or portions thereof, as designated in the SunCreek Specific Plan Development Impact Fee Program in lieu of all, or a portion of, the park improvement Development Fee required by the City’s Development Agreement and this chapter and may enter into a credit agreement pursuant to subsections (b), (c), and (d) of this section or may enter into a reimbursement agreement pursuant to subsections (e), (f), and (g) of this section. If so authorized, the credit to be provided to the property owner shall be equal to the estimated cost of the facility as set forth in the SunCreek Specific Plan Development Impact Fee Program, or other park nexus study, in effect at the time when the credit agreement is approved, including, but not limited to, unit prices, quantities and project descriptions. The construction of any facility authorized by this section must first be accepted by the City or other park facilities provider, as designated by the City or otherwise authorized by said park facilities provider, prior to credit being given and issuance of any of the approvals set forth in Section 16.82.130.
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
(b) Where the amount of the credit is less than the amount of the otherwise applicable park improvement Development Fee, the property owner must pay the difference as set forth in Section 16.82.130.
(c) Where the amount of the credit is greater than the amount of the Development Fee, the property owner shall be paid the difference only from the applicable SunCreek Specific Plan Park Improvement Fund within a reasonable time after the project is accepted by the park facilities provider.
(d) If the parks facilities provider and a property owner agree, the property owner may receive a credit against the park improvement Development Fee in an amount not to exceed the value of property conveyed to the provider as determined by the park facilities provider.
(e) Upon application by the property owner or his authorized agent, the park facilities provider may enter into a reimbursement agreement authorizing the construction of any park facilities, or portions thereof, designated in the SunCreek Specific Plan Development Impact Fee Program. The agreement shall set forth the amount to be reimbursed, the time and manner in which payments are to be made, and shall require reimbursement only from the applicable SunCreek Specific Plan Park Improvement Fund.
(f) The amount of reimbursement shall be the estimated cost of the facility as set forth in the SunCreek Specific Plan Development Impact Fee Program in effect at the time the construction contract is awarded for that specific facility. (g) By entering into a reimbursement agreement, a property owner is not relieved of the obligation to pay the Development Fees in the manner and amount specified by this chapter.
16.82.200 ANNUAL PROGRAM FEE ADJUSTMENT.
Beginning January 1, 2023, and thereafter each year no later than January 15, the Program Fee per Development Unit for each type of development in each fee category shall be adjusted as follows:
(a) A "mean" index will be computed by averaging the index for 20 U.S. cities with the index for San Francisco by resort to the October issue of the Engineering News Record magazine Construction Cost Index of the year in which the calculation is being made. (b) An adjustment factor shall be computed by dividing the "mean" index as calculated in subsection (a) of this section by the "mean" index for the previous October, however, if a new Program Fee has been adopted after January of the previous year, the adjustment factor shall use the "mean" index from the month that the fee was adopted. (c) The new Program Fee per Development Unit shall be calculated by multiplying the adjustment factor, as calculated in subsection (b) of this section, by the Program Fee per Development Unit in place prior to the annual adjustment.
ITEM 10.4. ATTACHMENT 6
Exhibit A to the Ordinance
(d) The estimated cost of the facilities used in SunCreek Specific Plan Capital Improvement Plan and for calculating credits and reimbursements pursuant to Sections
16.82.180, 16.82.190 and 16.82.195 shall be adjusted annually using the same adjustment factor pursuant to subsections (a), (b) and (c) of this section.
16.82.210 ALTERNATIVE METHOD AND COMPLIANCE WITH OTHER LAWS. (a) This chapter is intended to establish a supplemental method for funding the cost of certain facilities the need for which is expected to be generated by the level and type of development proposed in the City of Rancho Cordova. The provisions of this chapter shall not be construed to limit the power of the Council to impose any other fees or exactions or to continue to impose existing ones, on development within the City of Rancho Cordova, but shall be in addition to any other fee, exactions or other requirements that the City is authorized to impose, or has previously imposed, as a condition of approving plans, rezonings or other entitlements within the City of Rancho Cordova pursuant to state and local laws. In particular, individual property owners shall remain obligated to fund, construct, and/or dedicate the improvements, public facilities and/or pay other exactions authorized or required by, but not limited to: (1) the City of Rancho Cordova Public Works Department Improvement Standards; (2) the Sacramento County Municipal Services Agency Improvement Standards; (3) the Quimby Act (Government Code Section 66477 et seq.) and implementing ordinances (Chapter 22.40 of this Code); (4) school impact fees (Government Code Sections 65970 et. seq.) and implementing ordinances; and (5) City of Rancho Cordova storm drainage impact fees (Chapter
16.95). Any credits or repayments pursuant to Sections 16.82.180, 16.82.190 and 16.82.195 shall not include credits or repayment for the funding, construction or dedications described in this section.
(b) The construction of facilities by a private owner pursuant to Section 16.82.180,
16.82.190, and 16.82.195 shall be performed and contracted for only as required by law, including but not limited to, compliance with the Department’s Improvement Standards, and requirements for public works, if applicable to the particular facility.”
City Council Staff Report – Page 1 of 4
MEMORANDUM
ITEM 10.5.
DATE: May 16, 2022
TO: Honorable Mayor and Council Members
FROM: Elizabeth Sparkman, Community Development Director SUBJECT: SUNCREEK SPECIFIC PLAN DEVELOPMENT AGREEMENT AND
AFFORDABLE HOUSING PLAN AMENDMENTS
RECOMMENDATION
Waive the first reading and introduce the Ordinance and adopt the Resolutions.
RESULT OF RECOMMENDED ACTION
Adoption of the Ordinance will authorize execution of a First Amendment to the Development Agreement for five of the six properties in the SunCreek Specific Plan Area and reauthorize the execution of the Development Agreement for the Callahan Sun Creek, LLC. Adoption of the Resolutions will authorize the execution of a First Amendment to the Affordable Housing Plan for five of the six properties in the SunCreek Specific Plan Area and reauthorize the execution of the Affordable Housing Plan for the Callahan Sun Creek, LLC.
BACKGROUND
On November 18, 2013, by Resolution No. 128-2013, the City Council approved General Plan Amendments to the Land Use Element and the Open Space Element for the SunCreek Specific Plan; made findings regarding the environmental review required by the California Environmental Quality Act (CEQA) and approved the Public Facilities Finance Plan (the “Finance Plan”) for the SunCreek Specific Plan. On November 18, 2013, by Resolution No. 129-2013, the City Council approved the Affordable Housing Plans (AHP) for the six (6) ownerships in the SunCreek Specific Plan.
On December 2, 2013, the City Council adopted Ordinance No. 42-2013 approving Development Agreements (DA) for the SunCreek Project for the same six (6) ownerships identified as Lennar Sierra Sunrise, LLC; Callahan Sun Creek, LLC, et al; Grantline & Chrysanthy 220 Investors, LLC; Robert A. Gilmartin, et al; Shalako Investors, a California Limited Partnership; and Chris N. Vrame, et al (collectively referred to as “Landowners”), see Figure 1: Land Ownership in the Plan Area. All of the Landowners have subsequently executed their respective Afffordable Housing Plans and Development Agreements with the exception of Callahan Sun Creek, LLC.
The proposed First Amendments to the AHPs and the DAs will update the inflationary adjustment from March 1st to January 1st to be consistent with the timing of inflationary
City Council Staff Report – Page 2 of 4
adjustments for all other City fees; revise Section 7.3.2 of the DA to reflect updated language for implementation of a Land Equalization Fee concept described in the Finance Plan; and correct the effective date in Section 4.1.of select DAs, and other related minor edits. Since the AHP and the DA was never executed for the Callahan property, and since 2013 the ownership of that property has changed, the Resolution and Ordinance will also reauthorize the execution of the AHP with amendments and the DA with amendments for the Callahan property.
Figure 1: Land Ownership in the Plan Area
Development Agreement Amendments
Amendment to Section 4.1
Section 4.1 states the effective date of the Development Agreements which is the effective date of the City Ordinance adopting the DAs. Four of the five executed DAs incorrectly identify the effective date as January 1,2013.
The First Amendment will correct this date to January 1,2014 on specific DAs.
Amendment to Section 6.1
Section 6.1 of the Development Agreements quantify the park development and neighborhood green impact fee requirements and contain a provision that the impact fees will be adjusted beginning March 1, 2014 and annually thereafter on March 1st and no later than March 15th.
Currently all other fees in the City adjust annually on January 1st and no later than January 15th.
The First Amendment will add references to separate exhibits to the Development Agreements that provide land dedication tables for park lands and neighborhood greens and change the timing of the annual inflation adjustment to January 1st to be consistent with other existing fee adjustments.
Amendment to Section 7.3.2
The Finance Plan included language about a proposed Land Equalization Fee Program to equalize the costs of various public land uses that were disproportionately distributed among the
City Council Staff Report – Page 3 of 4
landowners in the Plan Area. The landowners, however, have since decided to simplify the land equalization by eliminating the public land uses other than Quimby parks. As a result, a Quimby In-Lieu Fee Program, which incorporates certain provisions from the SunCreek Land Equalization Fee Program requirements, is being implemented by Cordova Recreation and Park District (CRPD) and will be set forth in individual Park Development Agreements (PDA) between CRPD and the developers.
The First Amendment incorporates this change by replacing the existing language that required the developers to adopt and implement the Land Equalization Program as described in the Finance Plan with updated language that references the Quimby In-Lieu Fee Program being implemented by CRPD as will be set forth in individual Park Development Agreements (PDA).
The DA and the PDA, will both contain the same land equalization table that shows the park obligations for the SunCreek Specific Plan by property owner and the amount by which each property owner is over or under dedicating compared to its Quimby park obligation.
Changes of Ownership
An Assignment & Assumption Agreement was executed on August 17, 2021, between Grantline & Chrysanthy 220 Investors, LLC and Lennar Homes of California, Inc. that was recorded on August 17, 2021 as Document No. 202108171667. The First Amendment to the DA and the AHP relative to that property will be executed by the current ownership of Lennar Homes of California, LLC, a California limited liability company (as successor-in-interest by conversion to Lennar Homes of California, Inc. (hereafter referred to as Lennar Homes of California, LLC).
On July 29, 2015, Vrame, et. al, executed a grant deed conveying the Property to Smith/Dunmore Venture, LLC, a California Limited Liability Company. Therefore, the First Amendment to the DA and the AHP relative to that property will be executed by Smith/Dunmore Venture, LLC.
Execution of the Callahan DA.
In 2021, Quitclaim Deeds were recorded that terminate any and all interest of Callahan Suncreek, LLC by Kamilos Holdings, LLC to the remaining property owners. Since the Callahan DA was never executed, rather than execute and then amend it, an updated form of the DA will be authorized that contains the amendments as described above and in the name of the remaining ownership group which will now be referred to as the John J. Young et. al ownership.
The Ordinance, Attachment 1, authorizes the execution of the First Amendments to the Development Agreements for the five ownerships now identified as Lennar Sierra Sunrise, LLC; Lennar Homes of California, LLC; Robert A. Gilmartin, et al; Shalako Investors, a California Limited Partnership; and Smith/Dunmore Ventures, LLC; see Attachments 2-6, and re-approves the execution the John J. Young, et. al, Development Agreement, Attachment 7.
Affordable Housing Plan Amendments
Amendment to Section 3
Section 3 of the Affordable Housing Plans quantify the affordable housing in-lieu fee requirement and contain a provision that beginning March 1, 2014, the Affordable Housing Fee will adjust annually on March 1st and no later than March 15th. Currently all other fees in the City adjust annually on January 1st and no later than January 15th.
The First Amendment to the five executed Affordable Housing Plans will change the timing of the annual inflation adjustment to January 1st to be consistent with other existing fee adjustments.
City Council Staff Report – Page 4 of 4
Execution of the Callahan AHP
In 2021, Quitclaim Deeds were recorded that terminate any and all interest of Callahan Suncreek, LLC by Kamilos Holdings, LLC to the remaining property owners. Similarly, since the Callahan AHP was never executed, a new form of the AHP will be authorized that contains the fee timing amendments as described above and in the name of the remaining ownership group.
The Resolution, Attachment 8, authorizes the execution of the First Amendments to the Affordable Housing Plans for the five ownerships now identified as Lennar Sierra Sunrise, LLC; Lennar Homes of California, LLC; Robert A. Gilmartin, et al; Shalako Investors, a California Limited Partnership; and Smith/Dunmore Ventures, LLC; see Attachments 9-13. The Resolution, Attachment 14, re-approves the execution of the Affordable Housing Plan for the John J. Young, et. al, Attachment 15.
Recommendations
After consideration of any public testimony presented about this matter, it is recommended that the City Council adopt the Resolutions and introduce and waive its full reading and continue the Ordinance to the next regular council meeting for adoption.
FISCAL IMPACT
There is no fiscal impact to the general fund.
ATTACHMENT(S)
1. Ordinance
2. Exhibit A to Ordinance - First Amendment to DA for Lennar Sierra Sunrise, LLC
3. Exhibit B to Ordinance - First Amendment to DA for Grantline & Chrysanthy 220 Investors
4. Exhibit C to Ordinance - First Amendment to DA for Robert A. Gilmartin, et. al
5. Exhibit D to Ordinance - First Amendment to DA for Shalako
6. Exhibit E to Ordinance - First Amendment to DA Chris N. Vrame et al
7. Exhibit F to Ordinance - DA for the John J. Young, et al property
8. Resolution Approving AHP Amendments
9. Exhibit A to Resolution - First Amendment to AHP for Lennar Sierra Sunrise, LLC
10. Exhibit B to Resolution - First Amendment to AHP for Grantline & Chrysanthy 220 Investors
11. Exhibit C to Resolution - First Amendment to AHP for Robert A. Gilmartin, et. al
12. Exhibit D to Resolution - First Amendment to AHP for Shalako DA
13. Exhibit E to Resolution - First Amendment to AHP for Chris N. Vrame et al
14. Resolution Approving AHP
15. Exhibit A to Resolution - AHP for the John J. Young, et al property
ITEM 10.5. ATTACHMENT 1
Ordinance No. XX-2022 Page 1 of 7
CITY OF RANCHO CORDOVA
ORDINANCE NO. XX-2022
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA
APPROVING A FIRST AMENDMENT OF FIVE DEVELOPMENT AGREEMENTS AND
APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF RANCHO CORDOVA AND JOHN J. YOUNG TRUSTEE ET. AL FOR THE SUNCREEK PROJECT THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA DOES ORDAIN AS FOLLOWS:
Section 1. Recitals
A. In order to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the Legislature of the State of California adopted Section 65864, et seq., of the Government Code (the "Development Agreement Statute"), authorizing the City, and any person having a legal or equitable interest in the real property, to enter into a development agreement and establish certain development rights in the property, which is the subject of the development project application. Pursuant to Government Code section 65868, Development Agreements may be amended by mutual assent of the parties.
B. In 2013 the City of Rancho Cordova (“City”) adopted the SunCreek Specific Plan Project (“Project” or “Specific Plan”) and related approvals. The Specific Plan is a plan for a mixed-use development with a combination of employment-generating uses, retail and retail supporting services, recreational uses, and a broad range of residential uses and associated infrastructure and roads on an approximately 1,265-acre site in the City. The Project includes approximately 4,893 residential units at various densities on approximately 589 acres; approximately 80 acres of commercial use; approximately 12 acres of public/quasi-public uses; elementary schools and a combined middle/high school on approximately 111 acres; approximately 74 acres of parks and greens; approximately 387 acres of wetland preserve, stormwater detention basins and buffers; and major and minor roads with landscaping. In addition, the Project includes various on- and off-site infrastructure improvements; and C The property within the Specific Plan area is owned by the following six (6) landowners: Lennar Sierra Sunrise, LLC; John J. Young Trustee, et al; Lennar Homes of California, LLC, a California limited liability company; Robert A. Gilmartin, et al; Shalako Investors, a California Limited Partnership; and Smith Dunmore Venture, LLC, a California limited liability company (collectively referred to as “Landowners”). All of these Landowners, with the exception of John J. Young Trustee, et. al, have executed the Development Agreements approved by Ordinance No. 42-2013.
D. The Specific Plan’s purpose is to create a cluster of walkable residential villages and a major civic and recreation core compromised of a community park, schools, and major open space. The residential neighborhoods will create a distinctive district for the City and house a workforce to enhance the City’s jobs/housing balance. For the five previously executed SunCreek Development Agreements (“Previously Executed Development Agreements”) an amendment is proposed because the Specific Plan unevenly distributed the public facilities, including parks, schools, and public works and utility parcels with the result that certain owners had a larger portion of their land that would be dedicated to such uses and unavailable for development. The Financing Plan included a “Land Equalization Fee” to compensate the
Ordinance No. XX-2022 Page 2 of 7
developers within the Specific Plan with disproportionate responsibilities to dedicate land for these public services. The First Amendments simplify the land equalization by eliminating the public land uses other than Quimby parks. The City and Landowners desire to amend the Development Agreements to replace the Land Equalization Fee with a Quimby Park In-Lieu Fee Program that is being implemented by Cordova Park and Recreation District (CRPD).
E. In compliance with the requirements of the California Environmental Quality Act (“CEQA”), the City prepared an Environmental Impact Statement and an Environmental Impact Report for the Specific Plan (“EIR”).
F. John J. Young Trustee, et. al (“Developer”), has agreed to enter into a development agreement for their portion of the Specific Plan area. The attached development agreement, attached hereto as Exhibit F (“John J. Young Trustee et. al, Development Agreement”), is Developer specific and covers the Developer’s portion of the Specific Plan area.
G. On November 18, 2013, the City Council, pursuant to Resolution No. 127-2013, certified the EIR, adopted mitigation findings pursuant to CEQA guidelines Section 15091, adopted a statement of overriding considerations, and adopted a mitigation monitoring plan for the Specific Plan, which covered the attached previously executed Development Agreements and the John J. Young Trustee et. al, Development Agreement.
H. On December 2, 2013, the City Council approved the Development Agreements entered into by the City and Landowners, of which the five Previously Executed Development Agreements were recorded in the Official Records of Sacramento County. The Development Agreements with Lennar Homes of California, Lennar Sierra Sunrise, LLC, and Shalako Investors, a California limited partnership were recorded on January 21, 2014. The Development Agreement with Smith Dunmore Venture, LLC, a California limited liability company, was recorded on March 18. 2014. The Development Agreement with Robert A.
Gilmartin, et al, was recorded on April 1, 2014.
I. The City and the five Landowners that previously executed Development Agreements, pursuant to Government Code section 65868 and Section 11.1 of the Previously Executed Development Agreements desire to amend the Previously Executed Development Agreements to revise the Parties’ obligations with respect to the implementation and payment of the Land Equalization Fee.
J The City and John J. Young, et. al, desire to reapprove and enter into the Development Agreement substantially similar to the one that was authorized by Ordinance No. 42-2013, and which contains the same Quimby Park In-Lieu Fee Program as the First Amendments to the Previously Executed Development Agreements.
L. On May 16, 2022, the City Council held a public hearing and introduced City Council Ordinance No. XX-2022 approving the First Amendments to the Development Agreements. reapproving of the Development Agreement with John J. Young, et. al, and rescinding the authorization to enter into the Development Agreement pursuant to Ordinance No. 42-2013.
The City Council found the adoption of the First Amendments to the Previously Executed Development Agreements and the re-approval of the Development Agreement with John J.
Young et. al, exempt from CEQA under Public Resources Code Section 21166 because the impacts of the Project have already been analyzed, and no substantial changes result from the First Amendments or the re-approval of the Development Agreement.
Ordinance No. XX-2022 Page 3 of 7
Section 2: Findings
On the basis of (a) the foregoing Recitals, which are incorporated herein, (b) the SunCreek Specific Plan, (c) the City of Rancho Cordova’s General Plan, (d) the Environmental Impact Report for the SunCreek Specific Plan, and (e) on the basis of the specific conclusions set forth below, the City Council finds and determines that:
A. Consistency with the General Plan. The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement are consistent with the objectives, policies, general land uses, and programs specified and contained in the City’s General Plan. In accordance with Government Code section 65867.5(b), the Previously Executed Development Agreements and the reapproval of the John J. Young et. al, Development Agreement vest the five Landowners’ rights to proceed with development of the property in accordance with the Specific Plan. The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement do not amend or revise the development standards in the Specific Plan. Therefore, the First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement will be consistent with the General Plan if development under the Specific Plan is consistent with the City’s General Plan.
As required by Government Code section 65867.5(b), the City Council finds that the First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement, which vest development under the Specific Plan, are consistent with the City’s General Plan. The findings and evidence to support this General Plan consistency determination are set forth in Appendix X of the Specific Plan, “Analysis of Project Consistency with City Policies,” and as follows:
i. The Specific Plan is consistent with the desired land use patterns (neighborhoods, villages, and districts) and corresponding development parameters in the General Plan Land Use Element. Specifically, the land use types, distribution, densities, and intensities of the Specific Plan are consistent with the SunCreek/Preserve Planning Area (Figure LU-28), corresponding text description, and assumed development potential (Table LU-5) outlined in the General Plan. The First Amendments to the Previous Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
ii. The Specific Plan includes a land use plan and use and development standards, as well as guidelines for subsequent Project design consistent with the goals of the General Plan Urban Design Element. Specifically, the location and design concepts for the village, local, and regional town centers within SunCreek are in keeping with the building block concepts outlined in the General Plan’s Urban Design Element (Goal UD-1 and corresponding policies and actions). Additionally, design guidelines in Appendix A establish a unique project identity with context-sensitive design provisions envisioned in Goals UD-3 and UD-4. The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
Ordinance No. XX-2022 Page 4 of 7
iii. The Specific Plan includes land use designations for two village centers and one regional town center. This plan implements General Plan Economic Development Element Goals ED-1 and ED-2 in terms of diversifying the local economy and providing new local and regional retail opportunities. The First Amendments to the Previously Executed Development Agreements and the reapproval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
iv. The SunCreek Land Use Plan (Figure 3-2) includes a wide range of residential land use designations, including single-family residential, medium density residential, and high density residential, as well as opportunities for high density housing in select mixed-use center locations. Residential land use designations (allowing between 2 and 40 units/acre) are distributed throughout the Project site, with high density housing located in close proximity to schools, parks, jobs, and employment. The mix and distribution of housing are consistent with the General Plan Housing Element Goals H-1 and H-4 in terms of balancing employment and housing and encouraging housing opportunities by the implementation of an Affordable Housing Plan for each property owner within the Project area. The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
v. The SunCreek Circulation Plan (Figure 4-2) is consistent with the General Plan Circulation Plan (Figure C-1) and establishes a roadway system for local Project traffic and improved community circulation. It is also consistent with the regional transportation system with the addition of two major north-south roadways (Rancho Cordova Parkway and Americanos Boulevard), as well as improvements to the east-west connectivity. SunCreek Circulation Plan (Figure 4-2) is consistent with the General Plan Bikeway and Trails Plan (Figure C-2) as well as the City’s current Bikeway Master Plan. Section I.4 of the SunCreek Specific Plan identifies planned street improvements for major roadways and trials and establishes standards and principles for subsequent review of local streets and trail connections in keeping with the General Plan Circulation Element Goals C-1 and C-2 for multi-modal facilities and connectivity. The First Amendments to the Previously Executed Development Agreements and the reapproval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
vi. The SunCreek Land Use Plan (Figure 3-2), as amended, designates approximately 74.8 acres for parks and open space, which excludes stormwater detention and private recreation areas. Project open space includes 310 acres of wetland preserve, drainage parkways/basins, landscape corridors, and greenbelts. The total Project open space (non-developable) amounts to approximately 30 percent of the Project area. Planned open space, parks, and trails for SunCreek are consistent with General Plan Open Space, Parks, and Trails Element Goals OSPT-1, OSPT-2, and OSPT-3 in establishing a premier system of public parks, establishing connected and diverse open space systems, and maximizing opportunities for pedestrians and cyclists. vii. SunCreek Circulation and Infrastructure Plans of the Specific Plan identify necessary infrastructure, utilities, and services for the Project consistent with the
Ordinance No. XX-2022 Page 5 of 7
goals and policies outlined in the General Plan Infrastructure, Services, and Finance Element. SunCreek Specific Plan, Section I.9 (Implementation) identifies the requirements for the Financing Plan and includes guiding principles regarding infrastructure funding and phasing to ensure consistency with the General Plan.
The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
viii. The Environmental Impact Report/Environmental Impact Statement for the SunCreek Project identifies all known and protected resources within the Project area. Required protection and mitigation measures have been incorporated into the Specific Plan (Figure 3-2) and as described in Section I.6 (Natural Resources). The SunCreek Project is consistent with the General Plan Natural Resources Element Goals NR-1, NR-2, and NR-3 regarding protection and preservation of wildlife, plant habitats, wetlands, and creek corridors. The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
ix. The Specific Plan includes drainage improvements consistent with General Plan Safety Element Goal S-2 (and corresponding policies and actions) to reduce the possibility of a flooding or drainage issue causing damage to urban land uses. Finally, the SunCreek Development Regulations (Volume II) incorporate best practices from the Crime Prevention Through Environmental Design standards to ensure consistency with Safety Element Goal 7 regarding design of neighborhoods and buildings to maximize safety/security and minimize crime. The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
x. The SunCreek Land Use Plan (Figure 3-2) incorporates desired development patterns for a balanced mix of uses that incorporate housing, jobs, and services in close proximity connected by roadways and trails to reduce vehicular travel and maximize opportunities for walking and biking. The land use plan and corresponding circulation exhibits are consistent with the General Plan Air Quality Element Goals AQ-2 and AQ-3 regarding land use patterns and densities, as well as circulation systems to reduce vehicle trips and air quality impacts. The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
xi. The SunCreek Land Use Plan (Figure 3-2) maintains residential setbacks and, in some cases, sound walls to mitigate noise impacts from heavily traveled roadways. This land plan and provisions in the SunCreek Development Regulations (Volume II) are consistent with the General Plan Noise Element Goal N-1 to ensure that new development is free of noise disturbances. The First Amendments to the Previously Executed Development Agreements and the reapproval of the John J. Young et. al, Development Agreement do not alter this consistency analysis.
Ordinance No. XX-2022 Page 6 of 7
xii. The First Amendments to the Previously Executed Development Agreements are consistent with the SunCreek Specific Plan in that the development standards under the SunCreek Specific Plan are incorporated into and vested by the Development Agreements. The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement do not amend or alter the development standards under the Specific Plan.
B. Public Interest. The proposed First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement will not be detrimental to the public interest, health, safety, convenience, or welfare of the City. The Specific Plan, with the First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement are consistent with and are expected to result in no change in the currently existing jobs/housing ratio and include the designation of public uses, including public schools, parks and other public or quasi-public uses. The Amendments make no change to the Specific Plan’s integration of sustainable development practices at each level of community planning and implementation, retail opportunities and a variety of residential densities resulting in a range of housing opportunities for a range of income levels. As a result of the Amendments and the reapproval of the John J. Young et. al, Development Agreement, the same public facilities described in the Specific Plan as originally adopted will still be built.
C. CEQA Compliance. In compliance with the requirements of CEQA, the City prepared an Environmental Impact Statement and an EIR for the SunCreek Specific Plan. On November 18, 2013, the City Council adopted Resolution No. 127-2013 certifying the EIR and adopting environmental findings, a statement of overriding consideration and a mitigation monitoring and reporting program for the SunCreek Specific Plan Project approvals. The First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement are exempt from CEQA pursuant to Public Resources Code Section 21166 because an EIR has already been prepared for the Project and:
(1) substantial changes are not proposed in the project which will require major revisions of the EIR; (2) substantial changes will not occur with respect to the circumstances under which the Project is being undertake which will require major revisions to the EIR; and (3) No new information, which was not known and could not have been known at the time the EIR was certified as complete, has become available.
Section 3: Approval of the First Amendment to the Previously Executed Development Agreements and Re-Approval of the John J. Young et. al Development Agreement.
The City Council hereby approves the First Amendments to the Previously Executed Development Agreements and the re-approval of the John J. Young et. al, Development Agreement, attached hereto as Exhibits A-F, in a form approved by the City Attorney, and authorizes the City Manager to execute the First Amendments to the Previously Executed Development Agreements and the John J. Young et. al, Development Agreement.
Section 4: Rescission of Ordinance 42-2013 With Regard to Development Agreement with John J. Young et. al.
The City Council hereby rescinds Ordinance 42-2013 to the extent that it authorizes the City to enter into the John J. Young, et. al, Development Agreement.
Ordinance No. XX-2022 Page 7 of 7
Section 5: Recordation.
Within ten (10) days after the First Amendments to the Previously Executed Development Agreements are executed by the City Manager, the City Clerk shall submit the First Amendments to the Previously Executed Development Agreements and the John J. Young et. al, Development Agreement to the County Recorder for recordation.
Section 6: Severability.
If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, it shall not affect the remaining portions of this Ordinance that can be given effect without the invalid provision and, to this end, the provisions of this Ordinance are severable. This City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance enforced.
Section 7: Publication and Effective Date.
Within fifteen (15) days after adoption, a summary of this Ordinance shall be published once in the Grapevine Independent or the Sacramento Bee, a newspaper of general circulation printed and published in Sacramento County and circulated in the City of Rancho Cordova, in accordance with Government Code section 36933. This Ordinance shall take effect and be enforced thirty (30) days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova this 16th day of May 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Donald Terry, Mayor
ATTEST:
__________________________________
Stacy Leitner, CMC
City Clerk
5102408.7
ITEM 10.5. ATTACHMENT 2
Exhibit A to the Ordinance
2. Revised Section 4.1. Section 4.1 is amended as follows (strikethrough is delete, italics is addition):
"4.1 Effective Date. The effective date of this Development Agreement ("Effective Date") is January 1, � 2014 which is the effective date of City Ordinance No. 42-2013, adopting this Development Agreement.
3. Revised Section 6.1. Section 6.1 is amended as follows (strikethfough is delete, italics is addition):
"6.1 New Park and Neighborhood Green Dedication and Fee Obligation. Developer's obligation to dedicate land for new parks and neighborhood greens shall be satisfied by Developer's dedication of its share of the Park land and Neighborhood Greens provided by the Specific Plan, which share is generally shown set forth more speeifieally in Exhibit 6.1 (the "Dedicated Lands") and more specifically quantified in the park land equalization table in Exhibit 7.3.2 and the Neighborhood Green land table at Exhibit 6.1.A. City agrees and acknowledges that Developer's dedication of the Dedicated Lands, together with its commitment to pay the band Equali�tion Fee Quimby In-Lieu Program Fee, if any, described in Section
7.3.2 below, will satisfy the Developer's dedication requirements of Resolution No. 28-2005.
Prior to approval of the first small lot final subdivision map, or for residential properties that do not require subdivision, prior to issuance of the first building permit therefor within the Project, the City, acting as the land use authority, and in consultation with CRPD, will use good faith efforts to adopt a Citywide New Park Development Fee and a Citywide Neighborhood Green Fee that will apply to all residential development within the Project (respectively, the "New Park Development Fee" and "Neighborhood Green Fee"); in the event that City does not adopt the New Park Development Fee or the Neighborhood Green Fee by such time, the Developer will pay a new park development impact fee (the "Interim Park Impact Fee") in the amount of Eight Thousand Four Hundred and Twenty Dollars ($8,420) per Single Family EDU and a Neighborhood Green Fee (the "Interim Neighborhood Green Fee") in the amount of One Thousand Two Hundred and Four Dollars ($1,204) per Single Family EDU when each building permit for residential development is issued within the Project. Thereafter, the Developer shall pay the New Park Development Fee and the Neighborhood Green Fee after they are adopted for all remaining residential building permits within the Project, regardless of whether such fees are higher or lower than the applicable Interim Park Impact Fee or Interim Neighborhood Green Fee.
The New Park Development Fee will generally be used to develop the Parks, and shall not be used to develop the Neighborhood Greens.
The Interim Park Impact Fee and the Interim Neighborhood Green Fee will be adjusted on January 1, 2014 Mareh 1, 2014 and annually thereafter no later than January 15th Mareh 151il as follows:
(a)
(b)
A "mean" index will be computed by averaging the index for 20-City Construction Cost Index (CCI) and the San Francisco CCI as reported in the Engineering News-Record (ENR) for the twelve-month period ending October of the prior year. U.S. eilies with the inde* fer San Francisco by resort to the January issue of the 6ngi1�eering News Record 1'ftaga2ine Construction Cost Index of the year in whieh the ealeulation is being made.
An adjustment factor shall be computed by dividing the "mean" index as calculated in subsection (a) of this section by the "mean" index for the previous ITEM 10.5. ATTACHMENT 2 Exhibit A to the Ordinance
ITEM 10.5. ATTACHMENT 2
Exhibit A to the Ordinance
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Exhibit A to the Ordinance
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Exhibit B to the Ordinance
FIRST AMENDMENT OF
DEVELOPMENT AGREEMENT BY
AND BETWEEN
THE CITY OF RANCHO CORDOVA
AND ROBERT A. GILMARTIN,
BARBARA A. GILMARTIN,
ROBERT A. GILMARTIN and
BARBARA A. GILMARTIN, AS
TRUSTEES OF THE HEATHER C.
GILMARTIN 2003 IRREVOCABLE
TRUST UNDER AGREEMENT
DATED JUNE 12, 2003, ROBERT A.
GILMARTIN AND BARBARA A.
GILMARTIN, AS TRUSTEES OF
THE SHANNON K. GILMARTIN
2003 IRREVOCABLE TRUST
UNDER AGREEEMENT DATED
JUNE 12, 2003, WILLIAM H.
TREVOR AND NATHALIE
TREVOR, AS TRUSTEES OF THE
JAMES HENRY TREVOR 2003
IRREVOCABLE TRUST UNDER
AGREEMENT DATED JUNE 12,
2003, WILLIAM H. TREVOR and
NATHALIE TREVOR, AS
TRUSTEES OF THE MICHAEL
GREGORY TREVOR 2003
IRREVOCABLE TRUST UNDER
AGREEMENT DATED JUNE 12,
2003, WILLIAM H. TREVOR AND
NATHALIE TREVOR, AS
TRUSTEES OF THE AMY IRENA
TREVOR 2003 IRREVOCABLE
TRUST UNDER AGREEMENT
DATED JUNE 12, 2003, AND
WILLIAM H. TREVOR AND
NATHALIE TREVOR, AS
TRUSTEES OF THE WILLIAM
RANDOLPH TREVOR 2003
IRREVOCABLE TRUST UNDER
AGREEMENT DATED JUNE 12,
2003
RELATIVE TO THE SUNCREEK
PROJECT
This First Amendment of the Development Agreement ("First Amendment") is entered into as of this_ day of May, 2022, by and between the CITY OF RANCHO CORDOVA, a municipal corporation ITEM 10.5. ATTACHMENT 4 Exhibit C to the Ordinance
ITEM 10.5. ATTACHMENT 4
Exhibit C to the Ordinance
2. Revised Section 6.1. Section 6.1 is amended as follows (striketl=trm,igh is delete, italics is addition):
"6.1 New Park and Neighborhood Green Dedication and Fee Obligation. Developer's obligation to dedicate land for newparks and neighborhood greensshall besatisfied by Developer's dedication of its share of the Park land and Neighborhood Greens provided by the Specific Plan, which share is generally shown set forth morespeoifieally in Exhibit 6.1 (the "Dedicated Lands") and more specifically quantified in the park land equalization table in Exhibit 7.3.2 and the Neighborhood Green land table at Exhibit 6.1.A. City agrees and acknowledges that Developer's dedication of the Dedicated Lands, together with its commitment to pay the LaAa6qt-:1eli:tatioR Pee Quimby In-Lieu Program Fee, if any, described in Section 7.3.2 below, will satisfy the Developer's dedication requirements of Resolution No. 28-2005.
Prior to approval of the first small lot final subdivisionmap, or for residential properties that do not require subdivision, prior to issuance of the first building permit therefor within the Project, the City, acting as the land use authority, and in consultation with CRPD, will use good faith efforts to adopt a Citywide New Park Development Fee and a Citywide Neighborhood Green Fee that will apply to all residential development within the Project (respectively, the "New Park Development Fee" and "Neighborhood Green Fee"); in the event that City does not adopt the New Park Development Fee or the Neighborhood Green Fee by such time, the Developer will pay a new park development impact fee (the "Interim Park Impact Fee") in the amount of Eight Thousand Four Hundred and Twenty Dollars ($8,420) per Single Family EDU and a Neighborhood Green Fee (the "Interim Neighborhood Green Fee") in the amount of One Thousand Two Hundred and Four Dollars ($1,204) per Single Family EDU when each building permit for residential development is issued within the Project. Thereafter, the Developershall pay the New Park Development Fee and the Neighborhood Green Fee after they are adopted for all remaining residential building permits \.Vithin the Project, regardless of \vhether such fees are higher or lower than the applicable Interim Park Impact Fee or Interim Neighborhood Green Fee. The New Park Development Fee will generally be used to develop the Parks, and shall not be used to develop the Neighborhood Greens.
The Interim Park Impact Fee and the Interim Neighborhood Green Fee will be adjusted on January 1, 2014 March l, 2014 and annually thereafter no later than January 15th March 15t1t as follows:
(a) A "mean" index will be computed by averaging the index for 20-City Construction Cost Index (CCI) and the San Francisco CCI as reported in the Engineering News-Record (ENJ?J for the twelve-month period ending October of the prior year.U.S. eities with the index for San Francisco by resort totAo Jan liar)' issue ofthe engineering News Kecord maga:tme Construction Cost Index. of the year in ·.vhich tho calcttlation is being made. (b) An adjustment factor shall be computed by dividing the "mean" index as calculated in subsection (a) of this section by the "mean" index for the previous October January. For example, the March January 2014 Neighborhood Green Fee shall be calculated by taking the October January 2013 "mean" index and dividing by the October January 2012 "mean" index and multiplying that result by $1,204 (the 2013 Neighborhood Green Fee per residential unit)."
3. Revised Section i.3.2. Section 7.3.2 is hereby amended and revised in its entirety to read as follows:
ITEM 10.5. ATTACHMENT 4 Exhibit C to the Ordinance
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Exhibit F to the Ordinance
ITEM 10.5. ATTACHMENT 8
Resolution No. XX-2022 Page 1 of 4
CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA
APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE FIRST
AMENDMENTS TO AFFORDABLE HOUSING PLANS WITH FIVE LANDOWNERS OWNING
PROPERTY WITHIN
THE SUNCREEK SPECIFIC PLAN
WHEREAS, Rancho Cordova Housing Element Policy H.1.5 states that “Developers of new residential projects within the newly developing areas of the City (generally in the large, vacant areas south of Highway 50) shall prepare an Affordable Housing Plan for the project for City review and approval that identifies the project’s plan for providing affordable housing.” (City of Rancho Cordova Housing Element adopted 6/21/21); and WHEREAS, all large-scale development in the City’s undeveloped areas, generally located south of Highway 50, is required to provide a range of housing opportunities responding to the housing needs associated with the proposed development. Developers must prepare an Affordable Housing Plan (“AHP”) which “shall be approved in conjunction with the earliest stage of project entitlement, typically with the City Council approval of the Specific Plan, Development Agreement, or other primary land use entitlement”; and
WHEREAS, the Housing Element also states that “[in order t]o ensure the production and preservation of housing affordable to the City’s workforce, no productive, reasonable program or incentive option will be excluded from consideration within project-specific Affordable Housing Plans...”; and
WHEREAS, AHPs contain two major components: Regional Housing Needs Allocation (RHNA) - or proof of capacity (i.e., appropriately zoned land); and Affordable Housing Performance (i.e., production or other strategies); and WHEREAS, as a new large-scale development of undeveloped area, developers within the SunCreek Specific Plan are required to prepare Affordable Housing Plans for the Specific Plan area; and
WHEREAS, the SunCreek Specific Plan Project (“Specific Plan”) is a plan for a mixeduse development with a combination of employment-generating uses, retail, and retail supporting services, recreational uses, and a broad range of residential uses and associated infrastructure and roads on an approximately 1,265-acre site in the City. The Specific Plan, as currently amended, includes approximately 4,628 residential units at various densities on approximately 604 acres; approximately 78 acres of commercial use; approximately 8 acres of public/quasi-public uses; elementary schools and a combined middle/high school on approximately 111 acres; approximately 75 acres of parks and greens; approximately 389 acres of wetland preserve, stormwater detention basins and buffers; and major and minor roads with landscaping. In addition, the Project includes various on- and off-site infrastructure improvements; and
WHEREAS, the property within the SunCreek Specific Plan is owned by the following six (6) landowners: Lennar Sierra Sunrise, LLC; John J. Young, Trustee, et al; Lennar Homes of California, LLC, a California limited liability company; Robert A. Gilmartin, et al; Shalako
ITEM 10.5. ATTACHMENT 8
Resolution No. XX-2022 Page 2 of 4
Investors, a California Limited Partnership; and Smith/Dunmore Venture, LLC, a California Limited Liability Company (collectively referred to as “Landowners”); and WHEREAS, the Specific Plan’s purpose is to create a cluster of walkable residential villages and a major civic and recreation core compromised of a community park, schools and major open space. The residential neighborhoods will create a distinctive district for the City and house a work force to enhance the City’s jobs housing balance; and WHEREAS, the SunCreek Specific Plan was adopted by the City Council on November 18, 2013 through Ordinance No. 41-2013, and was most recently amended on June 21, 2021 through No. Ordinance 12-2021; and
WHEREAS, Development Agreements for the projects within the Specific Plan were approved by Council on November 18, 2013 through the introduction of Ordinance No. 42-2013; and
WHEREAS, First Amendments to these Development Agreements have also been presented for Council’s consideration on May 16, 2022 through the introduction of Ordinance No. XX-2022; and
WHEREAS, all of the Landowners, except John J. Young, Trustee, et. al, have previously executed Affordable Housing Plan Agreements; and WHEREAS, the five Landowners who have previously executed Affordable Housing Plan Agreements desire to amend those agreements to revise the methodology for calculating the annual adjustment to the SunCreek Affordable Housing In-Lieu Fee; and WHEREAS, the attached First Amendments to the SunCreek Affordable Housing Plan Agreements identify very low, low-, moderate-, and above moderate-income housing, and provide both affordable housing in-lieu fees and land dedication in order to comply with Housing Element requirements; and
WHEREAS, the attached First Amendments to the Affordable Housing Plan Agreements will satisfy the following affordable housing requirements for the Specific Plan:
1. Designation of 44.2 acres of RD-40 zoned land described as “High Density Residential – RHNA”;
2. Dedication to the City of three (3) sites, totaling 6.7 acres of net buildable property for the construction of affordable housing projects;
3. Granting the City an option to purchase one additional 2.5-acre high density site within the SunCreek Specific Plan; and
4. Payment of an Affordable Housing In-Lieu Fee of $1,460 per market rate unit.
WHEREAS, the attached First Amendments to the Affordable Housing Plan Agreements shall be binding on Landowners and on any and all of Landowners’ successors and assigns developing property within the SunCreek Specific Plan area. The First Amendments to the Affordable Housing Plan Agreements and the requirements therein shall run with the property
ITEM 10.5. ATTACHMENT 8
Resolution No. XX-2022 Page 3 of 4
and remain in place until amended by mutual consent of the City and individual Landowners or terminated by the City in its sole discretion.
NOW THEREFORE, the City Council of the City of Rancho Cordova hereby resolves as follows:
Section 1. RECITALS
The foregoing recitals are true and correct and made a part of this Resolution.
Section 2. GENERAL PLAN CONSISTENCY
A. The attached First Amendments to the Affordable Housing Plan Agreements (Exhibits A-E) are consistent with Rancho Cordova Housing Element Policy H.1.5, which requires “Developers of new residential projects within the newly developing areas of the City (generally in the large, vacant areas south of Highway 50) [to] prepare an Affordable Housing Plan for the project for City review and approval that identifies the project’s plan for providing affordable housing”; and
B. The SunCreek Specific Plan and the attached First Amendments to the Affordable Housing Plan Agreements (Exhibits A-E) are consistent the Housing Element Action H.1.2.1, which requires that residential development projects of 100 gross acres or more include a minimum of 5 percent of the total project residential developable acreage (net) for residential uses of 30 units per acre or higher, and 5 percent for residential uses of 10 units per acre or higher. The SunCreek Specific Plan, as amended, meets both requirements; the Specific Plan contains 603.8 total residential gross acres, of which 45.2 are designated for residential uses of 18.1 to 40 units per acre or higher and 27.5 designated for 12.1 to 18 units per acre. The attached Affordable Housing Plan Agreements require Landowners to designate certain portions of their property “High Density Residential,” which supports 30 dwelling units per acre or higher; and
C. The land designations required under the attached First Amendments to the Affordable Housing Plan Agreements (Exhibits A-E) are consistent with the SunCreek Specific Plan. These designations are also consistent with the General Plan as described in Appendix X of the SunCreek Specific Plan, “Analysis of Project Consistency with City Policies.” Section 3. APPROVAL OF AFFORDABLE HOUSING PLAN AGREEMENTS The City Council approves the attached First Amendments to the Affordable Housing Plan Agreements between the City and Landowners covering five of the Projects within the SunCreek Specific Plan (Exhibits A-E), in a form approved by the City Attorney, and authorizes the City Manager to execute the First Amendments to the Affordable Housing Plan Agreements.
The attached First Amendments to the Affordable Housing Plan Agreements are as follows:
i. First Amendment to the Affordable Housing Plan Agreement for the SunCreek Specific Plan by and between the CITY OF RANCHO CORDOVA and LENNAR SIERRA SUNRISE, LLC;
ITEM 10.5. ATTACHMENT 8
Resolution No. XX-2022 Page 4 of 4
ii. First Amendment to the Affordable Housing Plan Agreement for the SunCreek Specific Plan by and between the CITY OF RANCHO CORDOVA and Lennar Homes of California, LLC, a California limited liability company; iii. First Amendment to the Affordable Housing Plan Agreement for the SunCreek Specific Plan by and between the CITY OF RANCHO CORDOVA and ROBERT A. GILMARTIN, BARBARA A. GILMARTIN, ROBERT A. GILMARTIN and BARBARA A.
GILMARTIN, as Trustees of The Heather C. Gilmartin 2003 Irrevocable Trust under agreement dated June 12, 2003, ROBERT A. GILMARTIN and BARBARA A. GILMARTIN, as Trustees of The Shannon K. Gilmartin 2003 Irrevocable Trust under agreement dated June 12, 2003, WILLIAM H. TREVOR and NATHALIE TREVOR, as Trustees of The James Henry Trevor 2003 Irrevocable Trust under agreement dated June 12, 2003, WILLIAM H. TREVOR and NATHALIE TREVOR, as Trustees of The Michael Gregory Trevor 2003 Irrevocable Trust under agreement dated June 12, 2003, WILLIAM H. TREVOR and NATHALIE TREVOR, as Trustees of The Amy Irene Trevor 2003 Irrevocable Trust under agreement dated June 12, 2003, and WILLIAM H.
TREVOR and NATHALIE TREVOR, as Trustees of The William Randolph Trevor 2003 Irrevocable Trust under agreement dated June 12, 2003;
v. First Amendment to the Affordable Housing Plan Agreement for the SunCreek Specific Plan by and between the CITY OF RANCHO CORDOVA and SHALAKO INVESTORS, a California limited partnership; and
vi. First Amendment to the Affordable Housing Plan Agreement for the SunCreek Specific Plan by and between the CITY OF RANCHO CORDOVA and Smith/Dunmore Venture, LLC, a California Limited Liability Company.
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova this 16th day of May 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________
Donald Terry, Mayor
ATTEST:
Stacy Leitner, CMC
City Clerk
5104293.2
FIRST AMENDMENT OF
AFFORDABLE HOUSING PLAN
AGREEMENT FOR THE
SUNCREEK SPECIFIC PLAN BY
AND BETWEEN
THE CITY OF RANCHO CORDOVA
AND LENNAR SIERRA SUNRISE,
LLC
This First Amendment of the Affordable Housing Plan Agreement (“First Amendment”) is entered into as of this 16th day of May, 2022, by and between the CITY OF RANCHO CORDOVA, a municipal corporation (“City”), and LENNAR SIERRA SUNRISE, LLC, a California limited liability company( “Developer”) pursuant to Government Code section 65580 et. seq., relating to Housing Elements. City and Developer are hereinafter collectively referred to as the “Parties,” and singularly as “Party.”
RECITALS
A. City and Developer entered into an Affordable Housing Plan Agreement (the “AHP”) which was approved by the City Council on November 18, 2013, and recorded on January 21, 2014, in the Official Records of Sacramento County as Book 20140121 Page 1149. Except as otherwise defined, all capitalized terms used shall have the meanings ascribed thereto in the AHP.
B. City and Developer e n t e r e d into the AHP relative to that certain 242.4-acre portion of the SunCreek Specific Plan Area as more precisely defined in Exhibits “1-A” and “1-B” of the AHP (the “Property”).
C. This First Amendment affects the entire Property as more precisely defined in Exhibits “1-A” and “1-B” of the AHP. This First Amendment is authorized by section VII. C. of the AHP and pursuant to G o v e r n m e n t Code section 65588(b) and shall run with the Property.
D. City and Developer intend for this First Amendment to revise the methodology for calculating the annual a d j u s t m e n t to the SunCreek Affordable Housing In-Lieu Fee.
E. On ________, 2022, the City Council held a public hearing and introduced City Council Resolution No. ___-2022 a p p r o v i n g this First Amendment. City adopted City Council Resolution __- 2022 on [INSERT DATE]. On [INSERT DATE], by Resolution No. __-2022, the City Council found the adoption of this First Amendment exempt from CEQA under Public Resources Code Section 21166 as the impacts of the Project have already been analyzed, and no substantial changes result from this First Amendment.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. Amendment of the AHP. Section III. C. is amended as follows (strikethrough is delete, italics is addition):
“C. SUNCREEK AFFORDABLE HOUSING IN-LIEU FEE: $1,460 (per market rate unit):
ITEM 10.5. ATTACHMENT 9 Exhibit A to the Resolution
Developer shall pay an affordable housing in-lieu fee (“Affordable Housing In-Lieu Fee” or “In-Lieu Fee”) of $1,460 per market rate unit. This amount incorporates a reduction of the In-Lieu Fee to reflect a credit for land dedication of $315 per market rate unit, reducing the In-Lieu Fee from $1,775 to $1,460 per market rate unit. Developer and Landowners have agreed to have non-dedicating Landowners, such as Developer, pay their fair share of the fair market value of the dedicated sites through a Land Equalization Fee as described in Section III(B) and in the SunCreek Specific Plan Finance Plan.
Beginning on March 1, 2014 January 1, 2014, the Affordable Housing In-Lieu Fee required under this AHP shall be adjusted annually in March January based upon the December October to December October index value increase found in the 20-City Building Cost Index (BCI) published in Engineering News Record (ENR), averaged with the ENR’s index of the City of San Francisco between December and December of each for the twelve-month period ending October of the prior year. This In-Lieu Fee shall be paid to the City no later than prior to issuance of the building permit for each market rate residential unit.
In order to determine the requirements for the SunCreek Specific Plan, the City calculated the average cost associated with completing a housing project that would satisfy the housing allocation for the SunCreek Specific Plan. The City calculated this figure amount by analyzing comparable tax credit type developments. The funding needed after a tax credit award is referred to as the funding shortfall (“gap”).
The value of the 6.7 acres of dedicated land, required from the SunCreek Specific Plan as specified in Exhibit 3, was then credited against the funding gap. The remaining gap amount was then calculated into an Affordable Housing In-Lieu Fee as described in this Section. Landowners are to fund a 50% share of the remaining funding gap and the City will fund the remaining 50% of the gap. The City will aggressively seek funds from all available grant sources to satisfy the City’s 50% portion of the funding gap. It is anticipated that no General Fund monies will be used as grant funding of this effort to pay the gap.
The In–Lieu Fee and land dedication required of in the SunCreek Specific Plan reflect the current challenging market climate and fiscal uncertainty. The level of these requirements provides for a certain amount of “relief from current market conditions.”
3. Consistency with Government Code section 65588(a). The City Council has found and determined in Resolution No. ____ that this First Amendment is consistent with Government Code section 65588(a) because it appropriately addresses the housing goals, objectives, and policies of the City to meet the community’s needs.
4. Consistency with General Plan. The City Council has found and determined in Resolution No. ____ that this First Amendment is consistent with the General Plan and the SunCreek Specific Plan.
5. Amendment Applicable to Property. This First Amendment applies to the Property more particularly described in Exhibit 1-A and Exhibit 1-B.
6. Amendment. This First Amendment amends, but does not replace or supersede, the AHP except as specified herein. As amended hereby with respect to the Property, all other sections of the AHP remain in full force and effect.
7. Incorporation of Recitals. The Preamble, Recitals, and all exhibits attached hereto are incorporated into this First Amendment as if set forth herein in full.
ITEM 10.5. ATTACHMENT 9 Exhibit A to the Resolution
8. Effective Date and Term of the First Amendment. The Effective Date of this First Amendment is ________ which is the effective date of City Resolution No. ___-2022, adopting this First Amendment.
City Manager Authorization. City, a municipal corporation, has authorized this First Amendment to be executed in two (2) duplicate originals, each of which is deemed to be an original, by its City Manager and attested to by its City Clerk under the authority of Resolution No. _____-2022, adopted by the City Council on _______day of ______, 2022, and has caused this First Amendment to be executed.
“CITY”
CITY OF RANCHO CORDOVA,
a municipal corporation
By: _________________________________
Name: Cyrus Abhar
Its: City Manager
Date: _______________________________
“DEVELOPER”
LENNAR SIERRA SUNRISE, LLC
By: Lennar Homes of California, Inc., a California
Corporation
Its: Managing Member
By: _________________________________
Name: Larry Gualco, Vice President
Date: _______________________________
ATTEST:
__________________________________
City Clerk
5095304.4
5095304.9
ITEM 10.5. ATTACHMENT 9 Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 10
Exhibit B to the Resolution
ITEM 10.5. ATTACHMENT 10
Exhibit B to the Resolution
ITEM 10.5. ATTACHMENT 10
Exhibit B to the Resolution
FIRST AMENDMENT OF
AFFORDABLE HOUSING PLAN
AGREEMENT FOR THE
SUNCREEK SPECIFIC PLAN BY
AND BETWEEN
THE CITY OF RANCHO CORDOVA
AND ROBERT A. GILMARTIN,
BARBARA A. GILMARTIN,
ROBERT A. GILMARTIN and
BARBARA A. GILMARTIN, AS
TRUSTEES OF THE HEATHER C.
GILMARTIN 2003 IRREVOCABLE
TRUST UNDER AGREEMENT
DATED JUNE 12, 2003, ROBERT A.
GILMARTIN AND BARBARA A.
GILMARTIN, AS TRUSTEES OF
THE SHANNON K. GILMARTIN
2003 IRREVOCABLE TRUST
UNDER AGREEMENT DATED
JUNE 12, 2003, WILLIAM H.
TREVOR AND NATHALIE
TREVOR, AS TRUSTEES OF THE
JAMES HENRY TREVOR 2003
IRREVOCABLE TRUST UNDER
AGREEMENT DATED JUNE 12,
2003, WILLIAM H. TREVOR and
NATHALIE TREVOR, AS
TRUSTEES OF THE MICHAEL
GREGORY TREVOR 2003
IRREVOCABLE TRUST UNDER
AGREEMENT DATED JUNE 12,
2003, WILLIAM H. TREVOR AND
NATHALIE TREVOR, AS
TRUSTEES OF THE AMY IRENA
TREVOR 2003 IRREVOCABLE
TRUST UNDER AGREEMENT
DATED JUNE 12, 2003, AND
WILLIAM H. TREVOR AND
NATHALIE TREVOR, AS
TRUSTEES OF THE WILLIAM
RANDOLPH TREVOR 2003
IRREVOCABLE TRUST UNDER
AGREEMENT DATED JUNE 12,
2003
This First Amendment of the Affordable Housing Plan Agreement (“First Amendment”) is entered into as of this 16th day of May, 2022, by and between the CITY OF RANCHO CORDOVA, a ITEM 10.5. ATTACHMENT 11 Exhibit C to the Resolution
municipal corporation (“City”), and GRANTLINE & CHRYSANTHY 220 INVESTORS, LLC, a California limited liability company( “Developer”) pursuant to Government Code section 65580 et. seq., relating to Housing Elements. City and Developer are hereinafter collectively referred to as the “Parties,” and singularly as “Party.”
RECITALS
A. City and Developer entered into an Affordable Housing Plan Agreement (the “AHP”) which was approved by the City Council on November 18, 2013, and recorded on January 21, 2014, in the Official Records of Sacramento County as Book 20140401 Page 0588. Except as otherwise defined, all capitalized terms used shall have the meanings ascribed thereto in the AHP.
B. City and Developer entered into the AHP relative to that certain 240.2-acre portion of the SunCreek Specific Plan Area as more precisely defined in Exhibits “1-A” and “1-B” of t h e AHP (the “Property”).
C. This First Amendment affects the entire Property as more precisely defined in Exhibits “1-A” and “1-B” of the AHP. This First Amendment is authorized by section VII. C. of the AHP and pursuant to Government Code section 65588(b) and shall run with the Property.
D. City and Developer intend for this First Amendment to revise the methodology in calculating the annual adjustment to the SunCreek Affordable Housing In-Lieu Fee.
E. On ________, 2022, the City Council held a public hearing and introduced City Council Resolution ___-2022 approving this First Amendment. City adopted City Council Resolution __- 2022 on [INSERT DATE]. On [INSERT DATE], by Resolution No. __-2022, the City Council found the adoption of this First Amendment exempt from CEQA under Public Resources Code Section 21166 as the impacts of the Project have already been analyzed, and no substantial changes result from this First Amendment.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. Amendment of the AHP. Section III. C. is amended as follows (strikethrough is delete, italics is addition):
“C. SUNCREEK AFFORDABLE HOUSING IN-LIEU FEE: $1,460 (per market rate unit):
Developer shall pay an affordable housing in-lieu fee (“Affordable Housing In-Lieu Fee” or “In-Lieu Fee”) of $1,460 per market rate unit. This amount incorporates a reduction of the In-Lieu Fee to reflect a credit for land dedication of $315 per market rate unit, reducing the In-Lieu Fee from $1,775 to $1,460 per market rate unit. Developer and Landowners have agreed to have non-dedicating Landowners, such as Developer, pay their fair share of the fair market value of the dedicated sites through a Land Equalization Fee as described in Section III(B) and in the SunCreek Specific Plan Finance Plan.
Beginning on March 1, 2014 January 1, 2014, the Affordable Housing In-Lieu Fee required under this AHP shall be adjusted annually in March January based upon the December October to December October index value increase found in the 20-City Building Cost Index (BCI) published in Engineering News Record (ENR), averaged with the ENR’s index of the City of San Francisco between December and December of each for the twelve-month period ending October of the prior year. This In-Lieu Fee shall ITEM 10.5. ATTACHMENT 11 Exhibit C to the Resolution
be paid to the City no later than prior to issuance of the building permit for each market rate residential unit.
In order to determine the requirements for the SunCreek Specific Plan, the City calculated the average cost associated with completing a housing project that would satisfy the housing allocation for the SunCreek Specific Plan. The City calculated this figure amount by analyzing comparable tax credit type developments. The funding needed after a tax credit award is referred to as the funding shortfall (“gap”).
The value of the 6.7 acres of dedicated land, required from the SunCreek Specific Plan as specified in Exhibit 3, was then credited against the funding gap. The remaining gap amount was then calculated into an Affordable Housing In-Lieu Fee as described in this Section. Landowners are to fund a 50% share of the remaining funding gap and the City will fund the remaining 50% of the gap. The City will aggressively seek funds from all available grant sources to satisfy the City’s 50% portion of the funding gap. It is anticipated that no General Fund monies will be used as grant funding of this effort to pay the gap.
The In–Lieu Fee and land dedication required of in the SunCreek Specific Plan reflect the current challenging market climate and fiscal uncertainty. The level of these requirements provides for a certain amount of “relief from current market conditions.”
3. Consistency with Government Code section 65588(a). The City Council has found and determined in Resolution No. ____ that this First Amendment is consistent with Government Code section 65588(a) because it appropriately addresses the housing goals, objectives, and policies of the City to meet the community’s needs.
4. Consistency with General Plan. The City Council has found and determined in Resolution No. ___that this First Amendment is consistent with the General Plan and the SunCreek Specific Plan.
5. Amendment Applicable to Property. This First Amendment applies to the Property more particularly described in Exhibit 1-A and Exhibit 1-B.
6. Amendment. This First Amendment amends, but does not replace or supersede, the AHP except as specified herein. As amended hereby with respect to the Property, all other sections of the AHP remain in full force and effect.
7. Incorporation of Recitals. The Preamble, Recitals, and all exhibits attached hereto are incorporated into this First Amendment as if set forth herein in full.
8. Effective Date and Term of the First Amendment. The Effective Date of this First Amendment is ________ which is the effective date of City Resolution No. ___-2022, adopting this First Amendment.
City Manager Authorization. City, a municipal corporation, has authorized this First Amendment to be executed in two (2) duplicate originals, each of which is deemed to be an original, by its City Manager and attested to by its City Clerk under the authority of Resolution No. _____-2022, adopted by the City Council on _______day of ______ 2022, and has caused this First Amendment to be executed.
ITEM 10.5. ATTACHMENT 11 Exhibit C to the Resolution
“CITY”
CITY OF RANCHO CORDOVA,
a municipal corporation
By: _________________________________
Name: Cyrus Abhar
Its: City Manager
Date: _______________________________
ATTEST
____________________________________
City Clerk
“DEVELOPER”
ROBERT A. GILMARTIN, BARBARA A.
GILMARTIN, ROBERT A. GILMARTIN and
BARBARA A. GILMARTIN, AS TRUSTEES OF
THE HEATHER C. GILMARTIN 2003
IRREVOCABLE TRUST UNDER AGREEMENT
DATED JUNE 12, 2003, ROBERT A.
GILMARTIN AND BARBARA A. GILMARTIN,
AS TRUSTEES OF THE SHANNON K.
GILMARTIN 2003 IRREVOCABLE TRUST
UNDER AGREEEMENT DATED JUNE 12, 2003,
WILLIAM H. TREVOR AND NATHALIE
TREVOR, AS TRUSTEES OF THE JAMES
HENRY TREVOR 2003 IRREVOCABLE TRUST
UNDER AGREEMENT DATED JUNE 12, 2003,
WILLIAM H. TREVOR and NATHALIE
TREVOR, AS TRUSTEES OF THE MICHAEL
GREGORY TREVOR 2003 IRREVOCABLE
TRUST UNDER AGREEMENT DATED JUNE
12, 2003, WILLIAM H. TREVOR AND
NATHALIE TREVOR, AS TRUSTEES OF THE
AMY IRENA TREVOR 2003 IRREVOCABLE
TRUST UNDER AGREEMENT DATED JUNE
12, 2003, AND WILLIAM H. TREVOR AND
NATHALIE TREVOR, AS TRUSTEES OF THE
WILLIAM RANDOLPH TREVOR 2003
IRREVOCABLE TRUST UNDER AGREEMENT
DATED JUNE 12, 2003
By: _________________________________
Name: Robert A. Gilmartin
By: _________________________________
Name: Barbara A. Gilmartin
By: _________________________________
Name: Robert A. Gilmartin, as Trustee of the
Heather C. Gilmartin 2003 Irrevocable Trust under
agreement dated June 12, 2003
By: _________________________________
Name: Barbara A. Gilmartin, as Trustee of the
Heather C. Gilmartin 2003 Irrevocable Trust under
agreement dated June 12, 2003
By: _________________________________
ITEM 10.5. ATTACHMENT 11 Exhibit C to the Resolution
50098713.1
5098713.5
Name: Robert A. Gilmartin, as Trustee of the
Shannon K. Gilmartin 2003 Irrevocable Trust under
agreement dated June 12, 2003
By: _________________________________
Name: William H. Trevor, as Trustee of the James
Henry Trevor 2003 Irrevocable Trust under
agreement dated June 12, 2003
By: _________________________________
Name: Nathalie Trevor, as Trustee of the James
Henry Trevor 2003 Irrevocable Trust under
agreement dated June 12, 2003
By: _________________________________
Name: William H. Trevor, as Trustee of the
Michael Gregory Trevor 2003 Irrevocable Trust
under agreement dated June 12, 2003
By: _________________________________
Name: Nathalie Trevor, as Trustee of the Michael
Gregory Trevor 2003 Irrevocable Trust under
agreement dated June 12, 2003
By: _________________________________
Name: William H. Trevor, as Trustee of the Amy
Irene Trevor 2003 Irrevocable Trust under
agreement dated June 12, 2003
By: _________________________________
Name: Nathalie Trevor, as Trustee of the Amy
Irene Trevor 2003 Irrevocable Trust under
agreement dated June 12, 2003
By: _________________________________
Name: William H. Trevor, as Trustee of the William
Randolph Trevor 2003 Irrevocable Trust under
agreement dated June 12, 2003
By: _________________________________
Name: Nathalie Trevor, as Trustee of the William
Randolph Trevor 2003 Irrevocable Trust under
agreement dated June 12, 2003
ITEM 10.5. ATTACHMENT 11 Exhibit C to the Resolution
FIRST AMENDMENT OF
AFFORDABLE HOUSING PLAN
AGREEMENT FOR THE
SUNCREEK SPECIFIC PLAN BY
AND BETWEEN
THE CITY OF RANCHO CORDOVA
AND SHALAKO INVESTORS, A
CALIFORNIA LIMITED
PARTNERSHIP
This First Amendment of the Affordable Housing Plan Agreement (“First Amendment”) is entered into as of this 16th day of May, 2022, by and between the CITY OF RANCHO CORDOVA, a municipal corporation (“City”), and SHALAKO INVESTORS, a California limited partnership ( “Developer”) pursuant to Government Code section 65580 et. seq., relating to Housing Elements. City and Developer are hereinafter collectively referred to as the “Parties,” and singularly as “Party.”
RECITALS
A. City and Developer entered into an Affordable Housing Plan Agreement (the “AHP”) which was approved by the City Council on November 18, 2013, and recorded on January 21, 2014, in the Official Records of Sacramento County as Book 20140121 Page 1145. Except as otherwise defined, all capitalized terms used shall have the meanings ascribed thereto in the AHP.
B. City and Developer entered into the AHP relative to that certain 321.4-acre portion of the SunCreek Specific Plan Area as more precisely defined in Exhibits “1-A” and “1-B” of the AHP (the “Property”).
C. This First Amendment affects the entire Property as more precisely defined in Exhibits “1-A” and “1-B” of the AHP. This First Amendment is authorized by section VII. C. of the AHP and pursuant to Government Code section 65588(b) and shall run with the Property.
D. City and Developer intend for this First Amendment to revise the methodology for calculating the annual adjustment to the SunCreek Affordable Housing In-Lieu Fee.
E. On ________, 2022, the City Council held a public hearing and introduced City Council Resolution ___-2022 approving this First Amendment. City adopted City Council Resolution __- 2022 on [INSERT DATE]. On [INSERT DATE], by Resolution No. __-2022, the City Council found the adoption of this First Amendment exempt from CEQA under Public Resources Code Section 21166 as the impacts of the Project have already been analyzed, and no substantial changes result from this First Amendment.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. Amendment of the AHP. Section III. C. is amended as follows (strikethrough is delete, italics is addition):
“C. SUNCREEK AFFORDABLE HOUSING IN-LIEU FEE: $1,460 (per market rate unit):
ITEM 10.5. ATTACHMENT 12 Exhibit D to the Resolution
Developer shall pay an affordable housing in-lieu fee (“Affordable Housing In-Lieu Fee” or “In-Lieu Fee”) of $1,460 per market rate unit. This amount incorporates a reduction of the In-Lieu Fee to reflect a credit for land dedication of $315 per market rate unit, reducing the In-Lieu Fee from $1,775 to $1,460 per market rate unit. Developer and Landowners have agreed to have non-dedicating Landowners, such as Developer, pay their fair share of the fair market value of the dedicated sites through a Land Equalization Fee as described in Section III(B) and in the SunCreek Specific Plan Finance Plan.
Beginning on March 1, 2014 January 1, 2014, the Affordable Housing In-Lieu Fee required under this AHP shall be adjusted annually in March January based upon the December October to December October index value increase found in the 20-City Building Cost Index (BCI) published in Engineering News Record (ENR), averaged with the ENR’s index of the City of San Francisco between December and December of each for the twelve-month period ending October of the prior year. This In-Lieu Fee shall be paid to the City no later than prior to issuance of the building permit for each market rate residential unit.
In order to determine the requirements for the SunCreek Specific Plan, the City calculated the average cost associated with completing a housing project that would satisfy the housing allocation for the SunCreek Specific Plan. The City calculated this figure amount by analyzing comparable tax credit type developments. The funding needed after a tax credit award is referred to as the funding shortfall (“gap”).
The value of the 6.7 acres of dedicated land, required from the SunCreek Specific Plan as specified in Exhibit 3, was then credited against the funding gap. The remaining gap amount was then calculated into an Affordable Housing In-Lieu Fee as described in this Section. Landowners are to fund a 50% share of the remaining funding gap and the City will fund the remaining 50% of the gap. The City will aggressively seek funds from all available grant sources to satisfy the City’s 50% portion of the funding gap. It is anticipated that no General Fund monies will be used as grant funding of this effort to pay the gap.
The In–Lieu Fee and land dedication required of the SunCreek Specific Plan reflect the current challenging market climate and fiscal uncertainty. The level of these requirements provides for a certain amount of “relief from current market conditions.”
3. Consistency with Government Code section 65588(a). The City Council has found and determined in Resolution No. ___ that this First Amendment is consistent with Government Code section 65588(a) because it appropriately addresses the housing goals, objectives, and policies of the City to meet the community’s needs.
4. Consistency with General Plan. The City Council has found and determined in Resolution No. ___ that this First Amendment is consistent with the General Plan and the SunCreek Specific Plan.
5. Amendment Applicable to Property. This First Amendment applies to the Property more particularly described in Exhibit 1-A and Exhibit 1-B.
6. Amendment. This First Amendment amends, but does not replace or supersede, the AHP except as specified herein. As amended hereby with respect to the Property, all other sections of the AHP remain in full force and effect.
7. Incorporation of Recitals. The Preamble, Recitals, and all exhibits attached hereto are incorporated into this First Amendment as if set forth herein in full.
ITEM 10.5. ATTACHMENT 12 Exhibit D to the Resolution
8. Effective Date and Term of the First Amendment. The Effective Date of this First Amendment is ________ which is the effective date of City Resolution No. ___-2022, adopting this First Amendment.
City Manager Authorization. City, a municipal corporation, has authorized this First Amendment to be executed in two (2) duplicate originals, each of which is deemed to be an original, by its City Manager and attested to by its City Clerk under the authority of Resolution No. _____-2022, adopted by the City Council on _______day of ______, 2022, and has caused this First Amendment to be executed.
“CITY”
CITY OF RANCHO CORDOVA,
a municipal corporation
By: _________________________________
Name: Cyrus Abhar
Its: City Manager
Date: _______________________________
ATTEST:
____________________________________
City Clerk
5098684.2
5098684.6
“DEVELOPER”
SHALAKO INVESTORS, a California Limited
Partnership
By: _________________________________
Name: William M. Campbell, III
Its: General Partner
By: _________________________________
Name: Stephen Tofft
Its: General Partner
By: _________________________________
Name: William Ramey Osborne
Its: General Partner
By: _________________________________
Name: Ronald J. Parr
Its: General Partner
By: _________________________________
Name: Frank R. Catalano
Its: General Partner
By: _________________________________
Name: John C. Walker
Its: General Partner
ITEM 10.5. ATTACHMENT 12 Exhibit D to the Resolution
ITEM 10.5. ATTACHMENT 13
Exhibit E to the Resolution
ITEM 10.5. ATTACHMENT 13
Exhibit E to the Resolution
ITEM 10.5. ATTACHMENT 13
Exhibit E to the Resolution
ITEM 10.5. ATTACHMENT 14
Resolution No. XX-2022 Page 1 of 4
CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA
APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AFFORDABLE HOUSING PLAN BY AND BETWEEN THE CITY OF RANCHO CORDOVA AND ALICE M.
CALLAHAN, TRUSTEE OF THE ALICE M. CALLAHAN REVOCABLE LIVING TRUST, ALICE M. CALLAHAN, TRUSTEE OF THE ALICE M. CALLAHAN GRANDCHILDREN’S IRREVOCABLE TRUST, JOHN J. YOUNG, TRUSTEE OF THE JOHN J. YOUNG REVOCABLE TRUST ESTABLISHED JUNE 20, 2021, REBECCA T. YOUNG. TRUSTEE OF THE YOUNG FAMILY TRUST, MARK CLEWETT AND HEATHER S. CLEWETT, TRUSTEES
OF THE MARK AND HEATHER CLEWETT REVOCABLE TRUST ESTABLISHED JANUARY 22, 2016, AND KATHRYN BLANKENBURG (“JOHN J. YOUNG, TRUSTEE, ET. AL”) WITHIN
THE SUNCREEK SPECIFIC PLAN
WHEREAS, Rancho Cordova Housing Element Policy H.1.5 states that “Developers of new residential projects within the newly developing areas of the City (generally in the large, vacant areas south of Highway 50) shall prepare an Affordable Housing Plan for the project for City review and approval that identifies the project’s plan for providing affordable housing.” (City of Rancho Cordova Housing Element adopted 6/21/21); and WHEREAS, all large-scale development in the City’s undeveloped areas, generally located south of Highway 50, is required to provide a range of housing opportunities responding to the housing needs associated with the proposed development. Developers must prepare an Affordable Housing Plan (“AHP”) which “shall be approved in conjunction with the earliest stage of project entitlement, typically with the City Council approval of the Specific Plan, Development Agreement, or other primary land use entitlement”; and
WHEREAS, the Housing Element also states that “[in order t]o ensure the production and preservation of housing affordable to the City’s workforce, no productive, reasonable program or incentive option will be excluded from consideration within project-specific Affordable Housing Plans...”; and
WHEREAS, the AHP will contain two major components: Regional Housing Needs Allocation (RHNA) - or proof of capacity (i.e., appropriately zoned land); and Affordable Housing Performance (i.e., production or other strategies); and WHEREAS, as a new large-scale development of undeveloped area, developers within the SunCreek Specific Plan are required to prepare Affordable Housing Plans for the Specific Plan area; and
WHEREAS, the SunCreek Specific Plan Project (“Specific Plan”) is a plan for a mixeduse development with a combination of employment-generating uses, retail, and retail supporting services, recreational uses, and a broad range of residential uses and associated infrastructure and roads on an approximately 1,265-acre site in the City. The Specific Plan, as currently amended, includes approximately 4,628 residential units at various densities on approximately 604 acres; approximately 78 acres of commercial use; approximately 8 acres of public/quasi-public uses; elementary schools and a combined middle/high school on approximately 111 acres; approximately 75 acres of parks and greens; approximately 389 acres of wetland preserve, stormwater detention basins and buffers; and major and minor roads with
ITEM 10.5. ATTACHMENT 14
Resolution No. XX-2022 Page 2 of 4
landscaping. In addition, the Project includes various on- and off-site infrastructure improvements; and
WHEREAS, the property within the SunCreek Specific Plan is owned by the following six (6) landowners: Lennar Sierra Sunrise, LLC; John J. Young, Trustee, et al; Lennar Homes of California, LLC, a California limited liability company; Robert A. Gilmartin, et al; Shalako Investors, a California Limited Partnership; and Smith/Dunmore Venture, LLC, a California Limited Liability Company (collectively referred to as “Landowners”); and WHEREAS, the Specific Plan’s purpose is to create a cluster of walkable residential villages and a major civic and recreation core compromised of a community park, schools and major open space. The residential neighborhoods will create a distinctive district for the City and house a work force to enhance the City’s jobs housing balance; and WHEREAS, the SunCreek Specific Plan was adopted by the City Council on November 18, 2013 through Ordinance No. 41-2013, and was most recently amended on June 21, 2021 through No. Ordinance 12-2021; and
WHEREAS, the attached SunCreek Affordable Housing Plan identifies very low, low-, moderate-, and above moderate-income housing, and provides both affordable housing in-lieu fees and land dedication in order to comply with Housing Element requirements; and WHEREAS, the attached Affordable Housing Plan Agreement will satisfy the following affordable housing requirements for the Specific Plan:
1. Designation of 44.2 acres of RD-40 zoned land described as “High Density Residential – RHNA”;
2. Dedication to the City of three (3) sites, totaling 6.7 acres of net buildable property for the construction of affordable housing projects;
3. Granting the City an option to purchase one additional 2.5-acre high density site within the SunCreek Specific Plan; and
4. Payment of an Affordable Housing In-Lieu Fee of $1,460 per market rate unit.
WHEREAS, the attached Affordable Housing Plan Agreement shall be binding on John J. Young, Trustee, et. al, and on any and all of John J. Young, Trustee, et. al’s successors and assigns developing property within the SunCreek Specific Plan area. The Affordable Housing Plan Agreement and the requirements therein shall run with the property and remain in place until amended by mutual consent of the City and John J. Young, Trustee, et. al, or terminated by the City in its sole discretion.
NOW THEREFORE, the City Council of the City of Rancho Cordova hereby resolves as follows:
Section 1. RECITALS
The foregoing recitals are true and correct and made a part of this Resolution.
Section 2. GENERAL PLAN CONSISTENCY
ITEM 10.5. ATTACHMENT 14
Resolution No. XX-2022 Page 3 of 4
A. The attached Affordable Housing Plan Agreement (Exhibit A) is consistent with Rancho Cordova Housing Element Policy H.1.5, which requires “Developers of new residential projects within the newly developing areas of the City (generally in the large, vacant areas south of Highway 50) [to] prepare an Affordable Housing Plan for the project for City review and approval that identifies the project’s plan for providing affordable housing”; and B. The SunCreek Specific Plan and the attached Affordable Housing Plan Agreement (Exhibit A) are consistent the Housing Element Action H.1.2.1, which requires that residential development projects of 100 gross acres or more include a minimum of 5 percent of the total project residential developable acreage (net) for residential uses of 30 units per acre or higher, and 5 percent for residential uses of 10 units per acre or higher. The SunCreek Specific Plan meets both requirements; the Specific Plan, as amended, contains 603.8 total residential gross acres, of which 45.2 are designated for residential uses of 18.1 to 40 units per acre or higher and 27.5 designated for 12.1 to 18 units per acre. The attached Affordable Housing Plan Agreement requires John J. Young, Trustee, et. al, to designate certain portions of their property “High Density Residential,” which supports 30 dwelling units per acre or higher; and C. The land designations required under the attached Affordable Housing Plan Agreement (Exhibit A) are consistent with the SunCreek Specific Plan. These designations are also consistent with the General Plan as described in Appendix X of the SunCreek Specific Plan, “Analysis of Project Consistency with City Policies.” Section 3. APPROVAL OF AFFORDABLE HOUSING PLAN AGREEMENTS The City Council approves the attached Affordable Housing Plan Agreement between the City and John J. Young, et. al, covering their Project within the SunCreek Specific Plan (Exhibit A), in a form approved by the City Attorney, and authorizes the City Manager to execute the Affordable Housing Plan Agreement. The attached Affordable Housing Plan Agreement is as follows:
i. Affordable Housing Plan Agreement for the SunCreek Specific Plan by and between the CITY OF RANCHO CORDOVA and CALLAHAN SUN CREEK, LLC, a California limited liability company, ALICE M. CALLAHAN, Trustee of the Alice M. Callahan Revocable Living Trust, ALICE M. CALLAHAN, Trustee of the Alice M. Callahan Irrevocable Trust, ALICE M. CALLAHAN, Trustee of the Alice M. Callahan Grandchildren’s Irrevocable Trust, MARK CLEWETT, HEATHER CLEWETT, JOHN J. YOUNG, Trustee of the John J.
Young Revocable Trust established June 20, 2012, REBECCA T. YOUNG, Trustee of the Young Family Trust, and KATHRYN BLANKENBURG;
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova this 16th day of May 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ITEM 10.5. ATTACHMENT 14
Resolution No. XX-2022 Page 4 of 4
____________________________
Donald Terry, Mayor
ATTEST:
Stacy Leitner, CMC
City Clerk
5104289.2
OFFICIAL BUSINESS
Document entitled to free
recording Government Code
Section 6103
RECORDING REQUESTED BY AND
WHEN RECORDED, MAIL TO:
City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 95670
Attention: City Clerk
(SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE)
AFFORDABLE HOUSING PLAN
FOR THE SUNCREEK SPECIFIC
PLAN
BY AND BETWEEN
THE CITY OF RANCHO
CORDOVA AND
ALICE M. CALLAHAN, Trustee
of the Alice M. Callahan Revocable Living Trust,
ALICE M. CALLAHAN, Trustee of the Alice M.
Callahan Grandchildren's Irrevocable Trust, JOHN J.
YOUNG, Trustee of the
John J. Young Revocable Trust Established June 20, 2012, REBECCA T. YOUNG, Trustee of the Young Family Trust,
MARK CLEWETT and HEATHER S. CLEWETT, Trustees of
the Mark and Heather Clewett Revocable Trust Established January 22, 2016, and KATHRYN BLANKENBURG
THIS AFFORDABLE HOUSING PLAN AGREEMENT ("AHP" or "Agreement"), and the requirements herein, are agreed upon by and between the CITY OF RANCHO CORDOVA ("City") and ALICE M. CALLAHAN, Trustee of the Alice M. Callahan Revocable Living Trust, ALICE M. CALLAHAN, Trustee of the Alice M. Callahan Grandchildren's Irrevocable Trust, JOHN J. YOUNG, Trustee of the John J. Young Revocable Trust established June 20, 2012, REBECCA T. YOUNG, Trustee of the Young Family Trust, MARK CLEWETT and HEATHER S. CLEWETT, Trustees of the Mark and Heather Clewett Revocable Trust Established January 22, 2016, and KATHRYN BLANKENBURG, an individual ("Developer" or " John J. Young, Trustee, et. al"), as of this day of ____ ,2022. This AHP shall be binding on Developer and on any and all of Developer's successors and assigns developing the real property described in Exhjbjt 1-A and Exhjbjt 1-B attached hereto (the "Property"), within the SunCreek Specific Plan.
RECITALS
AHP FOR SUNCREEK SPECIFIC PLAN
DEVELOPER JOHN J.
YOUNG,TRUSTEE,ET.
AL
Paae 1 of 13
ITEM 10.5. ATTACHMENT 15 Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
ITEM 10.5. ATTACHMENT 15
Exhibit A to the Resolution
City Council Staff Report – Page 1 of 1
MEMORANDUM
ITEM 10.6.
DATE: May 16, 2022
TO: Honorable Mayor and Council Members
FROM: Nicholas Sosa, Associate Planner
SUBJECT: LOGISTICENTER AT RANCHO CORDOVA MAJOR DESIGN REVIEWPROJECT NO. PLND-1021-0015 PROPERTY OWNER:
DPML Bear Hollow, LLC
5500 Equity Avenue
Reno, NV 89502
APPLICANT/DEVELOPER:
Dermody Properties
George Condon
5500 Equity Avenue
PROJECT: Logisticenter at Rancho Cordova – Major Design Review FILE: PLND – 1021-0015
LOCATION: Corner of Bear Hollow Drive and N. Mather Boulevard APN: 072-2360-041-0000
PLANNER: Nicholas Sosa, Associate Planner
RECOMMENDATION
The proposed project has been continued to an uncertain date. The project will be re-noticed in accordance with Government Code Section 65090.
MEMORANDUM
City Council Staff Report - Page 1 of 4
ITEM 11.1.
DATE: May 16, 2022
TO: Honorable Mayor and Council Members
FROM: Arlene Granadosin-Jones, Senior Planner
SUBJECT: FLAVORED TOBACCO ORDINANCE- FIRST READING
RECOMMENDATION
Waive the first reading and introduce the Ordinance
RESULT OF RECOMMENDED ACTION
Adoption of the Ordinance would amend Title 4, Business Regulation, Chapter 4.07, Tobacco Retailer License prohibiting the sale of flavored tobacco city-wide. The ordinance would also repeal Title 6 Health and Sanitation, Chapter 6.86, Distribution of Tobacco Products to Minors.
And revise Chapter 6.84.020, Regulation of Smoking, Definitions, and Title 23, Zoning Code, Chapter 23.919.100, Smokers’ Lounge, Hookah Bar, E-Cigarette Lounge and Vapor Lounge/Bar to be consistent with State and federal law. The ordinance would come back for a second reading and adoption at the next regular City Council meeting.
BACKGROUND
Staff presented proposed amendments to the Municipal Code on April 18, 2022. After receiving comments and recommendations from community organizations on potential changes to the ordinance, City Council continued the first reading to the next regularly scheduled City Council meeting. City staff included additional amendments to specific chapters of the Municipal Code to address community concerns.
ANALYSIS
City and State laws currently regulate the sale and use of tobacco products in Ranch Cordova.
The State of California prohibits the sale of tobacco products to anyone under the age of 21, requires that retailers check photo identification or purchasers, and requires that tobacco products be stored behind counters or in lockboxes. In addition to these State regulations, Title 4, Chapter 4.07 and Title 6, Chapter 6.86 of the Rancho Cordova Municipal Code regulates the sale of tobacco products.
City staff has reviewed the City’s existing regulations and is proposing the following amendments to accomplish the goal of more strictly regulating flavored tobacco products in Rancho Cordova. The proposed amendments to Title 4, Chapter 4.07, have been organized into the following categories: definitions, exemptions, and fines and violations. In addition, Title
City Council Staff Report - Page 2 of 4
6, Chapter 6.86 of the Rancho Cordova Municipal Code will be deleted because provisions contained in this section are already included in Title 4, Chapter 4.07. Amendments are also proposed for Chapter 6.84.020 to update relevant definitions and Chapter 23.919.100 to ensure consistency with State and federal law regarding the minimum age for sale of tobacco products.
Definitions
The following definitions are added to Title 4, Chapter 4.07.030 of the Rancho Cordova Municipal Code. City staff has included revised definitions for “e-cigarette” or “electronic cigarette” or “electronic smoking device” and “tobacco product” to be consistent with updated definitions that consider newer tobacco product types in response to community input. “Characterizing flavor” means a taste or aroma, other than the taste or aroma of tobacco, imparted either prior to or during consumption of a tobacco product or any byproduct produced by the tobacco product, including, but not limited to, tastes or aromas relating to menthol, mint, wintergreen, fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcohol beverage, herb, or spice.
“E-cigarette” or “electronic cigarette” or “electronic smoking device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, vape pen, or e-hookah. “E-cigarette”, “electronic cigarette”, or “electronic smoking device” includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine .“E-cigarette,” “electronic cigarette,” or “electronic smoking device” does not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.
“Flavored tobacco product” means any tobacco product that imparts a characterizing flavor.
“Tobacco product” means:
1) Any product containing, made of, or derived from tobacco or nicotine, whether natural or synthetic, that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by any other means, including but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, or snus; 2) Any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or 3) Any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes.
“Tobacco product” does not mean drugs, devices, or combination products authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.
“Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, hookah, or any other lighted or heated tobacco or plant product intended
City Council Staff Report - Page 3 of 4
for inhalation, including marijuana, whether natural or synthetic, in any manner or in any form. “Smoking” includes the use of an electronic smoking device which creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking.
The following definitions are revised:
“Tobacco paraphernalia” means, any item designed or marketed for the consumption, use, or preparation of a tobacco product.
Staff also determined that additional amendments are required to definitions contained in Chapter 6.84.020 of the Rancho Cordova Municipal Code to be consistent with proposed revised definitions for “e-cigarette or electronic cigarette or electronic smoking device”, “tobacco product”, and “smoking.”
Exemption
Chapter 4.07.100 is revised to add the following exemption. This language has been expanded from the previously proposed version and moved to another section to indicate that the exemption only applies to any existing establishment that has been formally permitted to allow the on-site smoking of tobacco products and would only be allowed to sell shisha tobacco products for on-site consumption.
2. This Chapter shall not apply to any existing establishment that (i) has been formally permitted to allow the on-site smoking of tobacco products under Section 23.919.100 of the Rancho Cordova Municipal Code and that (ii) sells only shisha tobacco products (as defined in California Health and Safety Code Section 104559.5) for onsite consumption. The hookah tobacco retailer has a valid license to sell tobacco products issued pursuant to Chapter 2 (commencing with Section 22971.7) of Division 8.6 of the Business and Professions Code. Retail sales of flavored tobacco products other than shisha tobacco products (as defined in California Health and Safety Code Section 104559.5) by such smoking lounges are prohibited. No flavored shisha tobacco products purchased at such smoking lounges may be removed from the premises. As required in Section 23.919.100 of the Rancho Cordova Municipal Code, all consumption or use of flavored shisha tobacco products at such smoking lounges shall occur indoors. The hookah tobacco retailer shall operate in accordance with all relevant state and local laws relating to the sale of tobacco products.
Fines and Violations
As directed by City Council, Chapter 4.07.100 is revised adding language which prohibits the sale, offer for sale, or distribution of flavored tobacco products 90 days after the effective date of the adopted ordinance.
Section 4.07.110 is also revised to include a $1,000 administrative fine for each violation of these regulations. This section has been further revised to indicate that the administrative fine would be charged to the tobacco retailer or licensee.
A. Any tobacco retailer or licensee violating the provisions of this Chapter shall be guilty of a misdemeanor, and in addition to any other remedy, shall be liable for an administrative fine of one thousand dollars ($1,000) per violation. Each day a violation exists shall constitute a
City Council Staff Report - Page 4 of 4
new and separate violation.
ENVIRONMENTAL
Under Title 14 of the California Code of Regulations, Section 15061(b)(3), this activity is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a project which has the potential to cause a significant effect on the environment.
FISCAL IMPACT AND FUNDING SOURCE
There is no Fiscal Impact.
ATTACHMENT(S)
1. Flavored Tobacco Ordinance
2. Exhibit A to the Ordinance
3. Track Changes Title 4 Title 6 Chap 23 Updated Changes 0425
ITEM 11.1. ATTACHMENT 1
Ordinance No. XX-2022 Page 1 of 3
CITY OF RANCHO CORDOVA
ORDINANCE NO. XX-2022
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA AMENDING TITLE 4 (BUSINESS REGULATIONS), CHAPTER 4.07 (TOBACCO RETAILER LICENSE) WHICH WOULD REPEAL AND REPLACE TITLE 6 (HEALTH AND SANITATION), CHAPTER 6.86 (DISTRIBUTION OF TOBACCO PRODUCTS TO MINORS), AND AMENDING CHAPTER 6.84.020 (REGULATION OF SMOKING, DEFINITIONS) AND TITLE 23 (ZONING CODE), CHAPTER 23.919.100 (SMOKERS’ LOUNGE, HOOKAH BAR, E-CIGARETTE LOUNGE, AND VAPOR LOUNGE/BAR).
Section 1. Purpose and Declarations.
WHEREAS, Rancho Cordova Municipal Code (RCMC) Title 4, Chapter 4.07 regulates the sale of tobacco in the City of Rancho Cordova; and
WHEREAS, RCMC Title 6, Chapter 6.86 regulates the distribution of tobacco products to minors in the City of Rancho Cordova; and
WHEREAS, RCMC Title 6, Chapter 6.84 regulates smoking in public places and places of employment; and
WHEREAS, RCMC Title 23, Chapter 23.919.100 regulates smokers’ lounges, hookah bars, ecigarette lounges, and vapor lounges/bars; and WHEREAS, recent studies have estimated 4.31 million middle and high school students in the U.S. used flavored tobacco within a given 30-day period, which included flavored e-cigarettes, menthol cigarettes, flavored cigars and hookah, and flavored pipe tobacco; and WHEREAS, the City Council sees a benefit and a need to prohibit the sale, offer of sale, and distribution of flavored tobacco products as mentholated and flavored products have been shown to be “starter” products for youth who begin using tobacco and these products help establish tobacco habits that can lead to long-term-addiction; and WHEREAS, this ordinance amends Title 4- Chapter 4.07, Title 6- Chapter 6.84.020, Title 6- Chapter 6.86, and Title 23- Chapter 23.919.100 to prohibit the sale, offer of sale, and distribution of flavored tobacco products; and
WHEREAS, on May 16, 2022 the City Council held a properly noticed public hearing for this Ordinance and considered all oral and written testimony.
Section 2: Findings. The City Council hereby finds:
A. CEQA Compliance. CEQA requires analysis of agency approvals of discretionary “projects.” A “project,” under CEQA, is defined as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (CEQA Guidelines, § 15378.) As reflected in State CEQA Guideline 15061 (b) (3), an activity is not subject to CEQA, “[where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment…” The proposed amendments are not a “project” within the meaning of CEQA because the amendments seek to add language to the Municipal Code related to the regulation
ITEM 11.1. ATTACHMENT 1
Ordinance No. XX-2022 Page 2 of 3
of flavored tobacco products. The amended language would prohibit the sale, offer of sale, and distribution of flavored tobacco products, including definitions, exemptions, and fines and violations. Thus, the proposed ordinance is not subject to the requirements of CEQA. However, in the event that adoption of the ordinance is considered a CEQA project, it would nonetheless qualify for categorical exemptions as set forth below.
CEQA Guidelines Section 15061(b)(3) states that a project is exempt from CEQA “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The approval of the code amendments set forth in the proposed ordinance does not approve any physical development and it would not result in a direct or indirect physical changes in the environment. The amended language would prohibit the sale, offer of sale, and distribution of flavored tobacco products, including definitions, exemptions, and fines and violations. For these reasons, the proposed amendments would not have the potential to result in individually or cumulatively significant effects on the environment and these Municipal Code amendments are exempt from review under CEQA and no further environmental review is necessary.
B. The proposed amendments comply with applicable state law and local ordinances.
California Business and Professions Code Section 22971.3 reserves to cities the ability to enact local tobacco control laws, except for laws related to the collection of state taxes. Section 22971.3 also authorizes cities to implement local tobacco licensing laws. Revisions to the Municipal Code implement and are consistent with both local and state regulations.
Section 3. Amendments to Title 4 Business Regulations, Title 6 Health and Sanitation, and Title 23 Zoning Code
The City Council hereby adopts the amendments to Title 4 Business Regulations, Chapter 4.07 Tobacco Retailer License, and Title 6 Health and Sanitation, Chapter 6.86 Distribution of Tobacco Products to Minors, and Title 6.84.020 Regulation of Smoking, Definitions, and Title 23 Zoning Code, Chapter 23.919.100 Smokers’ Lounge, Hookah Bar, E-Cigarette Lounge, and Vapor Lounge/Bar of the Rancho Cordova Municipal Code, as shown and incorporated in Exhibit A to this ordinance.
Section 4. Severability
If any provision of this Ordinance or the application thereof to any person or circumstance, is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid or unenforceable.
Section 5. Effective Date
Within fifteen (15) days after adoption, a Summary of this Ordinance shall be published once in the Grapevine Independent, or the Sacramento Bee, a newspaper of general circulation printed and published in Sacramento County and circulated in the City of Rancho Cordova, in
ITEM 11.1. ATTACHMENT 1
Ordinance No. XX-2022 Page 3 of 3
accordance with Government Code Section 36933. This Ordinance shall take effect and be enforced thirty (30) days after its inception.
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 16th day of May 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________
Donald Terry, Mayor
__________________________
Stacy Leitner, CMC
City Clerk
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 1/18
Chapter 4.07
TOBACCO RETAILER LICENSE
Sections:
4.07.010 Legislative findings.
4.07.020 Purpose.
4.07.030 Definitions.
4.07.040 Requirement for tobacco retailer license.
4.07.050 Application procedure.
4.07.060 Issuance and renewal of license.
4.07.070 Display of license.
4.07.080 License fee.
4.07.090 License nontransferable.
4.07.100 License violation.
4.07.110 Administrative fine.
4.07.120 Suspension or revocation of license.
4.07.130 Denial, suspension and revocation – Appeals.
4.07.140 Hearings – Generally.
4.07.150 Conduct of hearing.
4.07.160 Form and contents of decision – Finality of decision.
4.07.170 Enforcement.
4.07.180 Severability.
4.07.190 Effective date and publication.
4.07.010 Legislative findings.
The city council of the city of Rancho Cordova finds and determines that:
A. The United States Surgeon General has declared nicotine, a key ingredient of cigarettes and tobacco products, as addictive as cocaine or heroin; yet no other addictive product or drug is as accessible to minors or as heavily advertised and promoted to minors as tobacco products. Once addicted, minors necessarily have great difficulty in complying with laws regulating access by minors to tobacco.
B. Since 1971, federal law has banned the advertising of tobacco products on radio and television, in part because of substantial evidence showing that the most persuasive advertising was being conducted on radio and television, and these broadcasts were particularly effective in reaching a large audience of young people.
C. Studies show an association between tobacco use and use of alcohol and illicit drugs. The National Institute on Drug Abuse found that teenagers who smoke are 14 times more likely to abuse alcohol, 100 times more likely to smoke marijuana and 32 times more likely to use cocaine than their nonsmoking peers.
D. Eighty-eight percent of adults who have ever smoked tried their first cigarette by the age of 18, and the average age at which smokers try their first cigarette is 14.5.
E. Although the tobacco industry insists the sole purpose of advertising is to convince current smokers to switch brands, it spends over $5,000,000,000 a year in advertising and promotion costs to aggressively recruit new smokers. To replace smokers who quit or die prematurely (some 3,000 smokers a day) the tobacco industry must attract approximately 2,000,000 new smokers each year. Most new smokers are children and
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 2/18
adolescents. The tobacco industry sells $1,260,000,000 in tobacco products (over 947,000,000 packs of cigarettes and 26,000,000 containers of smokeless tobacco) each year to children under 18. Thus, the tobacco industry earns $1,500,000,000 annually from the illegal sale of tobacco to children.
F. Based upon the foregoing facts and findings, the city has a substantial interest in promoting compliance with state laws prohibiting sales of cigarettes and tobacco products to minors, in promoting compliance with federal, state and local laws intended to discourage the purchase of tobacco products by minors, and in protecting children from being lured into illegal activity through the misconduct or illegal acts of adults.
G. State law prohibits the sale or furnishing of cigarettes, tobacco products and smoking paraphernalia to persons under 21 years of age except active duty military personnel who are 18 years of age or older (Section 308 of the Penal Code).
H. State law requires that tobacco retailers check the identification of tobacco purchasers who reasonably appear to be under 21 years of age (Section 22956 of the California Business and Professions Code) and provides procedures for using persons under 21 years of age to conduct on-site compliance checks of tobacco retailers (Section 22952 of the California Business and Professions Code).
I. State law requires that tobacco retailers post a conspicuous notice at each point of sale stating that selling tobacco products to anyone under 21 years of age is illegal (Section 22952 of the California Business and Professions Code and Section 308 of the California Penal Code).
J. State law prohibits the sale or display of cigarettes through a self-service display and prohibits public access to cigarettes without the assistance of a clerk (Section 22962 of the California Business and Professions Code).
K. State law prohibits the sale of “bidis” (a type of hand-rolled filterless cigarette)except at those businesses that prohibit the presence of minors (Section 308.1 of the California Penal Code).
L. State law prohibits the manufacture, distribution, or sale of cigarettes in packages of less than 20 and prohibits the manufacture, distribution, or sale of “roll-your-own” tobacco in packages containing less than six-tenths of an ounce of tobacco (Section 308.3 of the California Penal Code).
M. State law prohibits public school students from smoking or using tobacco products while on campus, while attending school-sponsored activities, or while under the supervision or control of school district employees (Section 48901(a) of the California Education Code).
N. RCMC 4.61.040 prohibits the sale or distribution of tobacco products from vending machines.
O. From 2013 to 2015, an estimated 15% of ninth and eleventh grade students in California reported using electronic smoking devices.
P. Over 9% of high school students in California reported buying their own electronic cigarette from a store.
Q. In 2016, an estimated 82% of tobacco retailers in California sold flavored non-cigarette tobacco products, over 90% of tobacco retailers sold menthol cigarette, and 80% of tobacco retailers near schools sold flavored non-cigarette tobacco products.
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 3/18
R. Mentholated and flavored products have been shown to be “starter” products for youth who begin using tobacco and these products help establish tobacco habits that can lead to long-term-addiction.
S. Flavored tobacco has significant public health implications for youth and people of color as a result of targeted industry marketing strategies and product manipulation.
T. Neither federal nor California state laws restrict the sale of menthol cigarettes or flavored non-cigarette tobacco products, electronic smoking devices, or the solutions used in these devices.
U. Despite these restrictions, minors continue to be exposed to and influenced by tobacco advertising, and to purchase or steal or otherwise obtain cigarettes and other tobacco products at alarming rates. Studies show that nearly one-quarter of all teenagers in this country are smokers.
V. California courts, in Cohen vs. Board of Supervisors, 40 Cal. 3d 277 (1985), and Bravo Vending vs. City of Rancho Mirage, 16 Cal. App. 4th 383 (1993), have affirmed the power of local jurisdictions to regulate business activity in order to discourage violations of law.
W. State law authorizes local tobacco retailer licensing laws to provide for the suspension or revocation of the local tobacco retailer license for any violation of a state tobacco control law (Section 22971.3 of the Business and Professions Code).
X. A requirement for a tobacco retailer license will not unduly burden legitimate business activities of retailers who sell or distribute cigarettes or other tobacco products to adults. It will, however, allow the city to regulate the operation of lawful businesses to discourage violations of federal, state, and local tobacco laws. [Ord. 3- 2005 § 2].
4.07.020 Purpose.
A. The purpose of this chapter is to encourage responsible tobacco retailing and to discourage violations of tobacco-related laws, especially those that prohibit or discourage the sale or distribution of tobacco products to minors, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalty provided for violations. [Ord. 3-2005 § 2].
4.07.030 Definitions.
As used in this chapter, the following words and phrases shall have the meanings given them in this section, unless the context clearly requires otherwise:
“Characterizing flavor” means a taste or aroma, other than the taste or aroma of tobacco, imparted either prior to or during consumption of a tobacco product or any byproduct produced by the tobacco product, including, but not limited to, tastes or aromas relating to menthol, mint, wintergreen, fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcohol beverage, herb, or spice. “City” means the city of Rancho Cordova.
“City manager” means the city manager of the city of Rancho Cordova or his or her designee.
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 4/18
“E-cigarette” or “electronic cigarette” or “electronic smoking device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, vape pen, or e-hookah. “E-cigarette”, “electronic cigarette”, or “electronic smoking device” includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine .“Ecigarette,” “electronic cigarette,” or “electronic smoking device” does not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. “Flavored tobacco product” means any tobacco product that imparts a characterizing flavor. “Itinerant tobacco retailing” means engaging in tobacco retailing at other than a fixed location. “License” means a tobacco retailer license issued by the city pursuant to this chapter. “Licensee” means any proprietor holding a license issued by the city pursuant to this chapter. “Person” means any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.
“Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a 10 percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person has, or can have, sole or shared control over the day-to-day operations of a business. “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, hookah, or any other lighted or heated tobacco or plant product intended for inhalation, including marijuana, whether natural or synthetic, in any manner or in any form. “Smoking” includes the use of an electronic smoking device which creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking. “Tobacco paraphernalia” means any item designed or marketed for the smoking consumption, use, or preparation of a tobacco product.
“Tobacco product” means:
1) Any product containing, made of, or derived from tobacco or nicotine, whether natural or synthetic, that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by any other means, including but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, or snus;
2) Any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or 3) Any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes.
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 5/18
“Tobacco product” does not mean drugs, devices, or combination products authorized for sale by the U.S.
Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. “Tobacco retailer” means any person who sells, offers for sale, exchanges, or offers to exchange for any form of consideration tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, offered for sale, exchanged, or offered for exchange.
“Tobacco retailing” means selling, offering for sale, exchanging, or offering to exchange for any form of consideration tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, offered for sale, exchanged, or offered for exchange. [Ord. 13-2014 §§ 4 – 6; Ord. 3-2005 § 2].
4.07.040 Requirement for tobacco retailer license.
A. It shall be unlawful for any person to act as a tobacco retailer without first obtaining a license for each location at which tobacco retailing is to occur. No license will be issued to authorize tobacco retailing at other than a fixed location. No license will be issued for itinerant tobacco retailing or tobacco retailing from vehicles.
B. Nothing in this chapter shall be construed to grant any person obtaining a license any status or right other than the right to act as a tobacco retailer at the location in the city identified on the face of the license, subject to compliance with all other applicable laws, regulations, and ordinances. Nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law, including, without limitation, any condition or limitation on indoor smoking made applicable to business establishments by Section 6404.5 of the Labor Code. [Ord. 3-2005 § 2].
4.07.050 Application procedure.
All applications for a license shall be submitted to the city manager in the name of each proprietor proposing to conduct tobacco retailing and shall be signed by each proprietor or an authorized agent thereof. A proprietor proposing to conduct tobacco retailing at more than one location shall submit a separate application for each location. Every application shall be submitted on a form supplied by the city manager and shall contain the following information:
A. The name, address, and telephone number of each proprietor; and B. The business name, address, and telephone number of the fixed location for which a license is sought; and C. Whether or not any proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation; and D. Such other information as the city manager deems necessary for the administration or enforcement of this chapter. [Ord. 3-2005 § 2].
4.07.060 Issuance and renewal of license.
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 6/18
A. Upon the receipt of an application for a license and the applicable license fee, the city manager shall issue a license unless:
1. The application is incomplete or inaccurate;
2. The application seeks authorization for tobacco retailing at an address that appears on a license that is suspended, has been revoked, or is subject to suspension or revocation proceedings for violation of any of the provisions of this chapter; provided, however, this subsection shall not constitute a basis for denial of a license if either or both of the following apply:
a. The applicant provides the city with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arm’s length transaction. For the purposes of this subsection, an “arm’s length transaction” is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this chapter that occurred at the location, is presumed not to be an “arm’s length transaction”;
b. It has been more than five years since the most recent license for that location was revoked;
3. The application seeks authorization for tobacco retailing that is unlawful pursuant to this code, or that is unlawful pursuant to any other local, state, or federal law;
4. The city manager has information that the applicant or his or her agents or employees has violated any local, state or federal tobacco control law at the location for which the license or renewal of the license is sought within the preceding 30-day period;
5. There are grounds for denial pursuant to Chapter 4.06 RCMC; or
6. No general business license has been granted for the enterprise pursuant to Chapter 4.06 RCMC.
B. A license shall be valid for one year and an application for renewal must be filed not later than 30 days prior to the expiration of the license, but no earlier than 60 days prior to the expiration of the license. Unless revoked on an earlier date, all licenses shall expire one year after the date of issuance. A license may be renewed for additional periods of one year by submitting an application to the tax and license collector and payment of the applicable license fee; provided, however, a license that is suspended, has been revoked, or is subject to suspension or revocation proceedings shall not be renewed. The application and license fee shall be submitted at least 30 days, but not more than 60 days, prior to the expiration of the current valid license. The applicant shall follow all of the procedures and provide all of the information required by RCMC 4.07.050, and the tax and license collector shall process the application according to the provisions of this section. Provided that an application is made within the time period required by this subsection, a licensee may continue the sale of tobacco products pending a determination of the tax and license collector to renew or disapprove the license.
C. Where the city manager does not approve a license or renewal of a license, the procedures for denial, including appeals therefrom, of RCMC 4.07.120 shall apply. [Ord. 3-2005 § 2].
4.07.070 Display of license.
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 7/18
Each license shall be prominently displayed in a publicly visible location at the licensed premises. [Ord. 3- 2005 § 2].
4.07.080 License fee.
The fee for issuance or renewal of a license shall be established by the city manager and shall be in addition to the city’s business operation tax and any other license or permit fee imposed by this code upon the applicant.
The license fee shall be paid to the city at the time the license application is submitted. The amount of the fee shall be determined on the basis of the costs incurred in the enforcement of tobacco retailing laws together with the costs, including the costs of counsel, incurred in the administration of this chapter. [Ord. 6-2010 § 5; Ord. 3-2005 § 2].
4.07.090 License nontransferable.
A license is nontransferable. If a licensee changes business location, that licensee must obtain a new license prior to acting as a tobacco retailer at the new location. If a business licensed to conduct tobacco retailing is sold, the new owner must obtain a license for that location before acting as a tobacco retailer. [Ord. 3-2005 § 2].
4.07.100 License violation.
A. It shall be a violation of a license for a licensee or his or her agents or employees to violate any local, state, or federal tobacco-related law. [Ord. 3-2005 § 2].
B. It shall be a violation of a license for a licensee, or a licensee’s agents or employees to sell, offer for sale, or distribute any flavored tobacco product. There is a rebuttable presumption that a tobacco product is a flavored tobacco product, if a tobacco manufacturer or its agents or employees has made a public statement or claim that the tobacco product has or produces a characterizing flavor, including, but not limited to, text, color, or images on the product’s labeling or packaging that are used to expressly or impliedly communicate that a tobacco product has a characterizing flavor.
1. After ninety (90) calendar days from the effective date of this Chapter, it shall be a violation of this Chapter for a tobacco licensee, or a licensee’s agents or employees to sell, offer for sale, or distribute any prohibited product.
2. This Chapter shall not apply to any existing establishment that (i) has been formally permitted to allow the on-site smoking of tobacco products under Section 23.919.100 of the Rancho Cordova Municipal Code and that (ii) sells only shisha tobacco products (as defined in California Health and Safety Code Section 104559.5) for onsite consumption. The hookah tobacco retailer has a valid license to sell tobacco products issued pursuant to Chapter 2 (commencing with Section 22971.7) of Division 8.6 of the Business and Professions Code. Retail sales of flavored tobacco products other than shisha tobacco products (as defined in California Health and Safety Code Section 104559.5) by such smoking lounges are prohibited. No flavored shisha tobacco products purchased at such smoking lounges may be removed from the premises. As required in Section 23.919.100 of the Rancho Cordova Municipal Code, all consumption or use of flavored shisha tobacco products at such smoking lounges shall occur indoors. The hookah tobacco retailer shall operate in accordance with all relevant state and local laws relating to the sale of tobacco products.
4.07.110 Administrative fine.
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 8/18
A. Any tobacco retailer or licensee violating the provisions of this Chapter shall be guilty of a misdemeanor, and in addition to any other remedy, shall be liable for an administrative fine of one thousand dollars ($1,000) per violation. Each day a violation exists shall constitute a new and separate violation.
B. Any violation of this Chapter may be remedied by a civil action brought by the City Attorney. The city may recover reasonable attorney’s fees and costs of any civil action brought by the City Attorney to remedy any violation of this Chapter.
C. Additional Amounts. Administrative costs, interest, late payment charges, costs of compliance reinspections, and collection costs are in addition to the fine as set forth in Subsection (A).
D. A notice of violation and of intent to impose a fine shall be personally served on, or sent by certified mail to, the person or persons subject to the fine. The notice shall state the basis of the city’s determinations and include an advisement of the right to request a hearing to contest the fine. Any request for a hearing must be in writing and must be received by the city within 10 calendar days of personal service of the notice on the person or persons subject to a fine or within 15 calendar days if the person or persons subject to a fine are served by mail.
E. If no request for a hearing is timely received, the city’s determination on the violation and the imposition of a fine and any additional amounts pursuant to subsection (C) of this section shall be final and payment shall be made within 30 calendar days of written demand made in the manner specified above for a notice of violation.
If the fine is not paid within that time, the fine may be collected, along with any additional amounts pursuant to subsection (C) of this section, in any manner provided by law. In the event that a judicial action is necessary to compel payment, the person or persons subject to the fine and any additional amount shall also be liable for the costs of the suit and attorneys’ fees incurred by the city in collecting the fine.
F. If a hearing is requested pursuant to subsection (D) of this section, the city shall provide written notice, within 45 calendar days of its receipt of the hearing request, to the person or persons subject to a fine and any additional amount, of the date, time, and place of the hearing in the manner specified above for a notice of violation.
G. The hearing shall be conducted in accordance with the procedures set forth in RCMC 4.07.140 through
4.07.160.
H. If no timely notice of appeal to the superior court is filed, or the city is not timely served with a copy of a notice of appeal, the hearing officer’s decision and findings shall be deemed confirmed and the fine and any additional amounts imposed pursuant to subsection (C) of this section shall be collected pursuant to subsection (E) of this section. [Ord. 6-2010 § 6; Ord. 3-2005 § 2].
4.07.120 Suspension or revocation of license.
A. In addition to any other remedy authorized by law, a license shall be suspended or revoked as provided in this section if the city manager finds that the licensee or his or her agents or employees has or have violated any of the provisions of this chapter; provided, however, violations by a licensee at one location may not be accumulated against other locations of that same licensee, nor may violations accumulated against a prior licensee at a licensed location be accumulated against a new licensee at the same licensed location.
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 9/18
1. Upon a finding by the city manager of a first license violation within any five-year period, the license shall be suspended for 30 days.
2. Upon a finding by the city manager of a second license violation within any five-year period, the license shall be suspended for 90 days.
3. Upon a finding by the city manager of a third license violation within any five-year period, the license shall be suspended for one year.
4. Upon a finding by the city manager of a fourth license violation within any five-year period, the license shall be revoked.
B. Notwithstanding RCMC 4.07.110(A), a license shall be revoked if the city manager finds that either one or both of the following conditions exist:
1. One or more of the bases for denial of a license under RCMC 4.07.060(A) existed at the time application was made or at any time before the license was issued.
2. The information contained in the license application, including supplemental information, if any, is found to be false in any material respect.
C. In the event the city manager suspends or revokes a license, written notice of the suspension or revocation shall be served upon the licensee within five days of the suspension or revocation. The notice shall contain:
1. A brief statement of the specific grounds for such suspension or revocation;
2. A statement that the licensee may appeal the suspension or revocation by submitting an appeal, in writing, in accordance with the provisions of RCMC 4.07.130, to the city manager, within 10 calendar days of the date of service of the notice; and
3. A statement that the failure to appeal the notice of suspension or revocation will constitute a waiver of all right to an administrative appeal hearing, and the suspension or revocation will be final.
D. A licensee for whom a license suspension is in effect must remove all tobacco products and tobacco paraphernalia from public view at the address that appears on the suspended license. [Ord. 3-2005 § 2].
4.07.130 Denial, suspension and revocation – Appeals.
A. Any applicant or licensee aggrieved by the decision of the city manager in denying, suspending, or revoking a license may appeal the decision by submitting a written appeal to the city manager within 10 calendar days from the date of service of the notice of denial, suspension, or revocation. The written appeal shall contain:
1. A brief statement in ordinary and concise language of the specific action protested, together with any material facts claimed to support the contentions of the appellant;
2. A brief statement in ordinary and concise language of the relief sought, and the reasons why it is claimed the protested action should be reversed or otherwise set aside;
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 10/18
3. The signatures of all parties named as appellants and their official mailing addresses; and
4. The verification (by declaration under penalty of perjury) of at least one appellant as to the truth of the matters stated in the appeal.
B. The appeal hearing shall be conducted in accordance with RCMC 4.07.140 through 4.07.160.
C. Upon receipt of any appeal filed pursuant to this section, the city manager shall transmit said appeal to the secretary of the hearing examiner who shall calendar the matter for hearing within 45 days.
D. Written notice of the time and place of the hearing shall be given at least 10 calendar days prior to the date of the hearing to each appellant by the secretary of the hearing examiner either by causing a copy of such notice to be delivered to the appellant personally or by mailing a copy thereof, postage prepaid, addressed to the appellant at the address shown on the appeal.
E. Failure of any person to file a timely appeal in accordance with the provisions of this section shall constitute an irrevocable waiver of the right to an administrative hearing and a final adjudication of the notice and order, or any portion thereof.
F. Only those matters or issues specifically raised by the appellant in the appeal notice shall be considered in the hearing of the appeal.
G. Any suspension or revocation of a license shall be stayed during the pendency of an appeal which is properly and timely filed pursuant to this section. [Ord. 3-2005 § 2].
4.07.140 Hearings – Generally.
A. The city manager shall appoint a hearing examiner to hear appeals brought pursuant to this chapter.
B. The city manager shall promulgate rules and procedures as necessary for the use of the hearing examiner.
C. At the time set for hearing, the hearing examiner shall proceed to hear the testimony of the city manager, the appellant, and other competent persons, including members of the public, respecting those matters or issues specifically listed by the appellant in the notice of appeal.
D. The proceedings at the hearing shall be electronically recorded. Either party may provide a certified shorthand reporter to maintain a record of the proceedings at the party’s own expense.
E. The hearing examiner may, upon request of the appellant or upon request of the city manager, grant continuances from time to time for good cause shown, or upon his or her own motion.
F. In any proceedings under this chapter, the hearing examiner has the power to administer oaths and affirmations and to certify to official acts. [Ord. 3-2005 § 2].
4.07.150 Conduct of hearing.
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 11/18
A. Hearings need not be conducted according to the technical rules relating to evidence and witnesses. Section 11513, Subsections (a), (b) and (c), of the Government Code as presently written or hereinafter amended shall apply to hearings under this chapter.
B. Oral evidence shall be taken only upon oath or affirmation.
C. Irrelevant and unduly repetitious evidence shall be excluded.
D. Each party shall have these rights, among others:
1. To call and examine witnesses on any matter relevant to the issues of the hearing;
2. To introduce documentary and physical evidence;
3. To cross-examine opposing witnesses on any matter relevant to the issues of the hearing;
4. To impeach any witness regardless of which party first called the witness to testify;
5. To rebut the evidence presented against the party; and
6. To represent himself, herself, or itself or to be represented by anyone of his, her, or its choice who is lawfully permitted to do so.
E. In reaching a decision, official notice may be taken, either before or after submission of the case for decision, of any fact that may be judicially noticed by the courts of this state or that may appear in any of the official records of the city or any of its departments. [Ord. 3-2005 § 2].
4.07.160 Form and contents of decision – Finality of decision.
A. If it is shown, by a preponderance of the evidence, that one or more bases exist to deny, suspend, or revoke the license, the hearing examiner shall affirm the city manager’s decision to deny, suspend, or revoke the license. The decision of the hearing examiner shall be in writing and shall contain findings of fact and a determination of the issues presented.
B. The decision shall inform the appellant that the decision is a final decision and that the time for judicial review is governed by Section 1094.6 of the California Code of Civil Procedure. Copies of the decision shall be delivered to the parties personally or sent by certified mail to the address shown on the appeal. The decision shall be final when signed by the hearing examiner and served as provided in this section. [Ord. 3-2005 § 2].
4.07.170 Enforcement.
A. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity.
B. Any violation of this chapter may be remedied by a civil action brought by the city attorney, including, for example, administrative or judicial nuisance abatement proceedings, civil or criminal enforcement
ITEM 11.1. ATTACHMENT 2
Exhibit A to the Ordinance
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 12/18
proceedings, and suits for injunctive relief. The city may recover reasonable attorneys’ fees and costs of suit in any civil action brought by the city attorney to remedy any violation of this chapter.
C. Violations of this chapter are hereby declared to be public nuisances subject to abatement by the city. [Ord. 3-2005 § 2].
4.07.180 Severability.
If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this chapter or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, that decision shall not affect the validity or effectiveness of the remaining portions of this chapter or any part thereof. The city council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrase hereof be declared invalid or unenforceable. [Ord. 3-2005 § 2].
4.07.190 Effective date and publication.
Within 15 days from and after adoption, the ordinance codified in this chapter shall be published once in the Grapevine Independent, a newspaper of general circulation printed and published in Rancho Cordova City and circulated in the city of Rancho Cordova, in accordance with Section 36933 of the California Government Code. The ordinance codified in this chapter shall take effect and be enforced 30 days after its adoption. [Ord. 3-2005 § 2
Rancho Cordova Municipal Code
Chapter 6.84.020 Regulation of Smoking Page 13/18
Chapter 6.84
REGULATION OF SMOKING
6.84.020 Definitions.
A. “Bar” means an area in which the serving of food is only incidental to the consumption of alcoholic beverages and where no persons under the age of 18 years are allowed to enter except to travel to the restroom facilities. The term “bar” shall not include an adjacent restaurant dining area when meals are being served.
B. “Business” means any sole proprietorship, partnership, joint venture, corporation or other business entity formed for profit-making purposes, including retail establishments where goods and services are sold, as well as professional corporations and other entities under which professional services are delivered.
C. “Child care facilities” means any family day care home regulated by Sections 1597.30 through 1597.621 of the California Health and Safety Code, and any day care center for children regulated by Section 1596.90 et seq. of the California Health and Safety Code. It does not include foster homes or residential child care facilities.
D. “Cigarette” means any roll for smoking, made wholly or in part of tobacco, irrespective of size or shape and irrespective of whether the tobacco is flavored, adulterated or mixed with any other ingredient, where such roll has a wrapper or cover made of paper or any other material, except where such wrapper is wholly or in the greater part made of tobacco and such roll weighs over three pounds per thousand, as defined in Revenue and Taxation Code Section 30003, as it may be subsequently amended or superseded.
E. “Dining area” means any area, including streets and sidewalks, that is available to or commonly used by the general public or an employee and which is designated, established or regularly used for the consumption of food or drink.
F. “E-cigarette” or “electronic cigarette” or “electronic smoking device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, vape pen, or e-hookah. “E-cigarette”, “electronic cigarette”, or “electronic smoking device” includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine .“Ecigarette,” “electronic cigarette,” or “electronic smoking device” does not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.
G. “Employee” means any person who is employed by an employer for direct or indirect monetary wages or profit, including those employed full-time, part-time, temporary or contracted for from a third party; “employee” also means any person who performs services as a volunteer or intern for a business or nonprofit entity.
H. “Employer” means any person, business, corporation, entity, partnership, municipal corporation or agency, or nonprofit entity which employs the services of one or more persons, and includes the city.
I. “Enclosed” means closed in by a roof and three or more connected, floor-to-ceiling walls with appropriate openings for ingress and egress.
J. “Multifamily residential property,” for purposes of this chapter, means residential property containing two or more total units with one or more shared walls, floors or ceilings, including but not limited to rental
Rancho Cordova Municipal Code
Chapter 6.84.020 Regulation of Smoking Page 14/18
complexes, apartments, residential cooperatives, condominium complexes, senior citizen residences, assisted living complexes and skilled nursing facilities. “Multifamily residential property” does not include:
1. A hotel or motel that meets the requirements of Section 1940(b)(2) of the Civil Code;
2. A mobile home park;
3. A campground;
4. A single-family residence;
5. A single-family home with a detached in-law or second unit when permitted pursuant to a city ordinance and/or applicable state law.
K. “Mall” means enclosed public walkway or hall area which serves to connect retail or professional establishments, whether publicly or privately owned.
L. “Nonprofit entity” means any corporation, unincorporated association or other entity created for charitable, philanthropic, educational, character-building, political, social or other similar purposes, the net proceeds from the operation of which are not for private financial gain. A public agency is not a nonprofit entity within the meaning of this chapter.
M. “Open space” means any lot or area of land or water essentially or partially unimproved and set aside, dedicated, designated or reserved for public use or enjoyment, or for the use and enjoyment of owners and occupants of land adjoining or neighboring such open space.
N. “Place of employment” means any enclosed area under the control of a public, nonprofit, or private employer which employees normally frequent during the course of employment, including but not limited to work areas, employee lounges and restrooms, conference rooms and classrooms, vehicles, taxis, employee cafeterias or eating places, and hallways. A private residence is not a place of employment for the purposes of this chapter, unless it is used as a child care or health care facility, or unless it is used for a permitted home occupation having one or more employees, or which is visited by the public twice a month or more.
O. “Private club” means any eating establishment, organization, club, boardinghouse or guesthouse which gives or offers food for sale to the public, guests, patrons or employees, as well as kitchens in which food is prepared on the premises for serving elsewhere, including catering functions, except that the term “restaurant” shall not include bars.
P. “Recreational area” means any area that is publicly owned or controlled and open to the general public for recreational purposes. The term “recreational area” includes but is not limited to parks, picnic areas, playgrounds, sports fields, open space, walking paths, gardens, hiking trails, bike paths, riding trails, swimming pools, skateboard parks, and ice-skating rinks, but does not include golf courses.
Q. “Service area” means any publicly or privately owned area, including streets and sidewalks, that is designated to be used or is regularly used by one or more persons to wait for or receive a service or make a transaction, whether or not such service or transaction involves the exchange of money. The term “service area” includes automated teller machine waiting areas, all bus stops, light rail stops, and other local public transit facilities.
Rancho Cordova Municipal Code
Chapter 6.84.020 Regulation of Smoking Page 15/18
R. “Smoke” means the gases, particles or vapors released into the air by combustion, electronic ignition or vaporization when the apparent or usual purpose of the combustion, electronic ignition or vaporization is human inhalation of the resulting combustion products, including but not limited to tobacco smoke, cigarette smoke, marijuana smoke, and gases, aerosol or vapor released by the ignition of e-cigarettes or electronic smoking devices. “Smoke” does not include the product of combustion of incense or similar products when used solely for olfactory purposes and not containing tobacco or nicotine.
S. “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, hookah, or any other lighted or heated tobacco or plant product intended for inhalation, including marijuana, whether natural or synthetic, in any manner or in any form. “Smoking” includes the use of an electronic smoking device which creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking.
T. “Sports arena” means any sports pavilion, gymnasium, health spa, boxing arena, swimming pool, roller rink, ice rink, bowling alley, pool hall, and other similar places where members of the general public assemble to engage in physical exercise, participate in athletic competition, or witness sports events.
U. “Tobacco product” means:
1) Any product containing, made of, or derived from tobacco or nicotine, whether natural or synthetic, that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by any other means, including but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, or snus;
2) Any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or 3) Any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes.
“Tobacco product” does not mean drugs, devices, or combination products authorized for sale by the U.S.
Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.
V. “Unenclosed area” means any area that is not an enclosed area.
W. “Work area” or “workplace” means any area of a place of employment enclosed by floor-to-ceiling walls in which two or more employees are assigned to perform work for an employer. [Ord. 14-2020 § 2; Ord. 13-2014 § 3; Ord. 9-2014 §§ 2 – 4; Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0810 § 2, 1990; SCC 610 § 2, 1984. Formerly 6.84.010, 6.84.015, 6.84.024, 6.84.041, 6.84.045, 6.84.055]
Rancho Cordova Municipal Code
Chapter 23.919.100 Smokers’ lounge, hookah bar, e-cigarette lounge and vapor lounge/bar Page 16/18
23.919.100 Smokers’ lounge, hookah bar, e cigarette lounge and vapor lounge/bar A. Purpose and Findings.
1. The council finds that the use of hookah pipes, electronic cigarettes, and other similar devices in smokers’ lounges, hookah bars, and vapor bars/lounges and the activities associated with such businesses (including loud music, large numbers of customers congregating for long periods, etc.) have been associated with increases in odors, noise, vapors, second-hand smoke, parking impacts, loitering, and disturbances in the peace. The purpose of this section is to prevent the overconcentration of this land use and to mitigate the negative impacts associated with this land use.
2. The council also finds that smoking and vaping uses expose minors to dangerous secondhand smoke by-products and increase the potential for minors to associate smoking of electronic tobacco devices and hookah pipes with a normative or healthy lifestyle.
3. The council also finds that the tobacco smoke, including secondhand smoke, from hookah pipes and electronic cigarettes contributes to indoor air pollution and is a significant health hazard and carcinogen to smokers and nonsmokers alike, including employees of smokers’ lounges and hookah bars.
4. The U.S. Food and Drug Administration conducted laboratory analysis of electronic cigarette samples and found them to contain carcinogens and toxic chemicals to which users and bystanders could potentially be exposed, suggesting that the same health and public nuisance concerns present with conventional cigarettes exist with electronic cigarettes.
5. The U.S. Centers for Disease Control and Prevention reports that smoking a hookah has many of the same health risks as cigarette smoking; that hookah use by youth is increasing; that the charcoal used to heat hookah tobacco can have negative health risks because it produces high levels of carbon monoxide, metals, and carcinogens; that hookah smokers may absorb more of the toxic substances also found in cigarette smoke than cigarette smokers do; that secondhand smoke from hookahs can be a health risk for nonsmokers; and that new forms of electronic hookah smoking are now on the market and very little information is available on the health risks of electronic tobacco products.
6. The city has banned indoor smoking in places accessible to the public under Chapter 6.84 RCMC (Regulation of Smoking). However, California Labor Code Section 6404.5(d)(4) allows for indoor smoking within retail or wholesale tobacco shops and private smokers’ lounges and such businesses do currently exist within the city; and therefore the council finds that it is necessary to enact clear and defined regulations for this use.
B. Applicability.
1. The provisions of this section shall apply in addition to other regulations of this zoning code and municipal code. In the event of a conflict between other sections and this section, this section shall control.
2. The provisions of this section shall apply to new facilities established following the effective date of the ordinance codified in this title. All legal, code-compliant smokers’ lounges, hookah bars, vapor bars, and e-cigarette lounges currently located in the city shall become legal, nonconforming uses and as such must comply with the regulations set forth in Chapter 23.170 RCMC.
C. Location. Smokers’ lounges, hookah bars, e-cigarette, and vapor bars/lounges shall only be permitted in general commercial (GC) and light industrial (M-1) zoning districts.
Rancho Cordova Municipal Code
Chapter 23.919.100 Smokers’ lounge, hookah bar, e-cigarette lounge and vapor lounge/bar Page 17/18 D. Operational and Development Standards. The following operational and development standards shall apply to all smokers’ lounges, hookah bars, vapor bars, and e-cigarette lounges in the city and shall be included as conditions imposed upon any license, permit, or other entitlement granted for such a business:
1. Distance Requirements. All e-cigarette lounges, hookah bars, vapor bars, and smokers’ lounges shall be located at least 500 feet from other e-cigarette lounges, hookah bars, smokers’ lounges, smoke shops, and tobacco shops. All e-cigarette lounges, hookah bars, vapor bars, and smokers’ lounges shall be located at least 1,000 feet from the following:
a. Public or private K-12 schools and day cares.
b. Libraries.
c. Churches.
d. Community and recreation centers.
e. Liquor stores.
f. Sexually oriented businesses.
g. Tattoo parlors.
h. Pawnshops.
i. Bars and nightclubs.
j. Card rooms.
k. Check cashing businesses.
l. Parks.
m. Residential zones.
2. The business shall be owner-operated or otherwise exempt from the prohibition of smoking in the workplace pursuant to California Labor Code Section 6404.5.
3. The establishments shall operate in compliance with all federal, state, county, and local laws and regulations.
4. Minors Prohibited. No persons under 21 years of age shall be permitted within the establishment, including as employees, and business owners or operators shall require proof of identification to verify the age of customers, visitors, and employees. This means that all employees must be at least 21 years of age.
5. Parking Standards. Parking shall be provided under the standards established for bars and nightclubs in Table 23.719-1, as may be amended from time to time.
Rancho Cordova Municipal Code
Chapter 23.919.100 Smokers’ lounge, hookah bar, e-cigarette lounge and vapor lounge/bar Page 18/18
6. Hours of Operation. Operating hours shall be limited to 8:00 a.m. to 10:00 p.m.
7. Indoor Operation Only. All business-related activity, including smoking, shall be conducted entirely within a building. Outdoor seating, operating outdoor barbecues or braziers, and/or lighting coals outdoors shall not be permitted.
8. Entertainment and Admission Charges Prohibited. No live entertainment, including dancers, singers, disc jockeys, or comedians shall be permitted within the business. No admission charges, including a cover charge or minimum purchase requirement, shall be permitted.
9. Food and beverages, including alcoholic beverages and prepackaged food and beverages, shall not be sold, served, or consumed on the premises.
10. Visibility and Illumination. No window coverings or signage shall prevent visibility of the interior of the establishment from the outside during operating hours. The interior of the establishment shall have lighting adequate to make the conduct of patrons within the establishment readily discernible to people of normal visual capabilities.
11. Ventilation. Adequate ventilation must be provided in accordance with all standards imposed by the building official and fire department, and those establishments by state or federal laws. The requirements imposed by the building official or fire department may be more comprehensive than current building codes to prevent negative health and nuisance impacts on neighboring properties, including a requirement for a separate system to prevent smoke and vapors from migrating to adjoining suites or buildings. The ventilation shall, at a minimum, prevent smoke and vapors from migrating into adjacent buildings and/or suites and to outdoor public areas. A mechanical exhaust hood system shall be required if an establishment heats coals indoors.
12. Noise. Any amplified noise shall be subject to the regulations established in the municipal code, including those in Chapter 6.68 RCMC (Noise Control) and Chapter 23.737 RCMC (Noise, Odor, and Vibration Performance Standards), as may be amended from time to time.
13. Security. Uniformed security guard(s) shall be provided, as deemed necessary by the chief of police or his/her designee.
E. Penalties and Enforcement. Any violation of this section shall be enforced under Chapter 23.173 RCMC. [Ord. 4-2017 § 3 (Exh. B); Ord. 1-2016 § 2].
ITEM 11.1. ATTACHMENT 3
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 1/22
Chapter 4.07
TOBACCO RETAILER LICENSE
Sections:
4.07.010 Legislative findings.
4.07.020 Purpose.
4.07.030 Definitions.
4.07.040 Requirement for tobacco retailer license.
4.07.050 Application procedure.
4.07.060 Issuance and renewal of license.
4.07.070 Display of license.
4.07.080 License fee.
4.07.090 License nontransferable.
4.07.100 License violation.
4.07.110 Administrative fine.
4.07.120 Suspension or revocation of license.
4.07.130 Denial, suspension and revocation – Appeals.
4.07.140 Hearings – Generally.
4.07.150 Conduct of hearing.
4.07.160 Form and contents of decision – Finality of decision.
4.07.170 Enforcement.
4.07.180 Severability.
4.07.190 Effective date and publication.
4.07.010 Legislative findings.
The city council of the city of Rancho Cordova finds and determines that:
A. The United States Surgeon General has declared nicotine, a key ingredient of cigarettes and tobacco products, as addictive as cocaine or heroin; yet no other addictive product or drug is as accessible to minors or as heavily advertised and promoted to minors as tobacco products. Once addicted, minors necessarily have great difficulty in complying with laws regulating access by minors to tobacco.
B. Since 1971, federal law has banned the advertising of tobacco products on radio and television, in part because of substantial evidence showing that the most persuasive advertising was being conducted on radio and television, and these broadcasts were particularly effective in reaching a large audience of young people.
C. Studies show an association between tobacco use and use of alcohol and illicit drugs. The National Institute on Drug Abuse found that teenagers who smoke are 14 times more likely to abuse alcohol, 100 times more likely to smoke marijuana and 32 times more likely to use cocaine than their nonsmoking peers.
D. Eighty-eight percent of adults who have ever smoked tried their first cigarette by the age of 18, and the average age at which smokers try their first cigarette is 14.5.
E. Although the tobacco industry insists the sole purpose of advertising is to convince current smokers to switch brands, it spends over $5,000,000,000 a year in advertising and promotion costs to aggressively recruit new smokers. To replace smokers who quit or die prematurely (some 3,000 smokers a day) the tobacco industry must attract approximately 2,000,000 new smokers each year. Most new smokers are children and adolescents. The tobacco industry sells $1,260,000,000 in tobacco products (over 947,000,000 packs of
ITEM 11.1. ATTACHMENT 3
Rancho Cordova Municipal Code
Chapter 4.07 Tobacco Retailer License Page 2/22
cigarettes and 26,000,000 containers of smokeless tobacco) each year to children under 18. Thus, the tobacco industry earns $1,500,000,000 annually from the illegal sale of tobacco to children.
F. Based upon the foregoing facts and findings, the city has a substantial interest in promoting compliance with state laws prohibiting sales of cigarettes and tobacco products to minors, in promoting compliance with federal, state and local laws intended to discourage the purchase of tobacco products by minors, and in protecting children from being lured into illegal activity through the misconduct or illegal acts of adults.
G. State law prohibits the sale or furnishing of cigarettes, tobacco products and smoking paraphernalia to minors, as well as the purchase, receipt, or possession of tobacco products by minors persons under 21 years of age except active duty military personnel who are 18 years of age or older (Section 308 of the Penal Code).
H. State law requires that tobacco retailers check the identification of tobacco purchasers who reasonably appear to be under 2118 years of age (Section 22956 of the California Business and Professions Code) and provides procedures for using persons under 2118 years of age to conduct on-site compliance checks of tobacco retailers (Section 22952 of the California Business and Professions Code).
I. State law requires that tobacco retailers post a conspicuous notice at each point of sale stating that selling tobacco products to anyone under 2118 years of age is illegal (Section 22952 of the California Business and Professions Code and Section 308 of the California Penal Code).
J. State law prohibits the sale or display of cigarettes through a self-service display and prohibits public access to cigarettes without the assistance of a clerk (Section 22962 of the California Business and Professions Code).
K. State law prohibits the sale of “bidis” (a type of hand-rolled filterless cigarette)s imported primarily from India and Southeast Asian countries) except at those businesses that prohibit the presence of minors (Section 308.1 of the California Penal Code).
L. State law prohibits the manufacture, distribution, or sale of cigarettes in packages of less than 20 and prohibits the manufacture, distribution, or sale of “roll-your-own” tobacco in packages containing less than six-tenths of an ounce of tobacco (Section 308.3 of the California Penal Code).
M. State law prohibits public school students from smoking or using tobacco products while on campus, while attending school-sponsored activities, or while under the supervision or control of school district employees (Section 48901(a) of the California Education Code).
N. RCMC 4.61.040 prohibits the sale or distribution of tobacco products from vending machines.
O. From 2013 to 2015, an estimated 15% of ninth and eleventh grade students in California reported using electronic smoking devices.
P. Over 9% of high school students in California reported buying their own electronic cigarette from a store.
Q. In 2016, an estimated 82% of tobacco retailers in California sold flavored non-cigarette tobacco products, over 90% of tobacco retailers sold menthol cigarette, and 80% of tobacco retailers near schools sold flavored non-cigarette tobacco products.
R. Mentholated and flavored products have been shown to be “starter” products for youth who begin using tobacco and these products help establish tobacco habits that can lead to long-term-addiction.
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S. Flavored tobacco has significant public health implications for youth and people of color as a result of targeted industry marketing strategies and product manipulation.
T. Neither federal nor California state laws restrict the sale of menthol cigarettes or flavored non-cigarette tobacco products, electronic smoking devices, or the solutions used in these devices.
U. Despite these restrictions, minors continue to be exposed to and influenced by tobacco advertising, and to purchase or steal or otherwise obtain cigarettes and other tobacco products at alarming rates. Studies show that nearly one-quarter of all teenagers in this country are smokers.
VP. California courts, in Cohen vs. Board of Supervisors, 40 Cal. 3d 277 (1985), and Bravo Vending vs. City of Rancho Mirage, 16 Cal. App. 4th 383 (1993), have affirmed the power of local jurisdictions to regulate business activity in order to discourage violations of law.
WQ. State law authorizes local tobacco retailer licensing laws to provide for the suspension or revocation of the local tobacco retailer license for any violation of a state tobacco control law (Section 22971.3 of the Business and Professions Code).
XR. A requirement for a tobacco retailer license will not unduly burden legitimate business activities of retailers who sell or distribute cigarettes or other tobacco products to adults. It will, however, allow the city to regulate the operation of lawful businesses to discourage violations of federal, state, and local tobacco laws. [Ord. 3-2005 § 2].
4.07.020 Purpose.
A. The purpose of this chapter is to encourage responsible tobacco retailing and to discourage violations of tobacco-related laws, especially those that prohibit or discourage the sale or distribution of tobacco products to minors, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalty provided for violations. [Ord. 3-2005 § 2].
B. This Chapter shall not apply to any existing establishment that (i) has been formally permitted to allow the on-site smoking of tobacco products under Section 23.919.100 of the Rancho Cordova Municipal Code and that (ii) sells only shisha tobacco products (as defined in California Health and Safety Code Section 104559.5) for onsite consumption. Retail sales of flavored tobacco products other than shisha tobacco products (as defined in California Health and Safety Code Section 104559.5) by such smoking lounges are prohibited. No flavored shisha tobacco products purchased at such smoking lounges may be removed from the premises. As required in Section 23.919.100 of the Rancho Cordova Municipal Code, all consumption or use of flavored shisha tobacco products at such smoking lounges shall occur indoors.This Chapter shall not apply to any existing establishment that has been formally permitted to operate a “smoking lounge” as defined in this Chapter. Section 23.919.100 of the Rancho Cordova Municipal Code establishes regulations for “smoking lounge.”
4.07.030 Definitions.
As used in this chapter, the following words and phrases shall have the meanings given them in this section, unless the context clearly requires otherwise:
“Characterizing flavor” means a taste or aroma, other than the taste or aroma of tobacco, imparted either prior to or during consumption of a tobacco product or any byproduct produced by the tobacco product, including,
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but not limited to, tastes or aromas relating to menthol, mint, wintergreen, fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcohol beverage, herb, or spice. “City” means the city of Rancho Cordova.
“City manager” means the city manager of the city of Rancho Cordova or his or her designee. “E-cigarette” or “electronic cigarette” or “electronic smoking device” means any electronic or battery-operated device, the use of which resembles smoking, that can be used to deliver an inhalable dose of nicotine or other substances by delivering a vaporized solution. “E-cigarette,” “electronic cigarette,” or “electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor.means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, ecigar, vape pen, or e-hookah. “E-cigarette”, “electronic cigarette”, or “electronic smoking device” includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine . “E-cigarette,” “electronic cigarette,” or “electronic smoking device” does not include drugs, devices, or combinationany products authorized for sale specifically approved by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. for use in the mitigation, treatment, or prevention of disease. “Flavored tobacco product” means any tobacco product that imparts a characterizing flavor. “Itinerant tobacco retailing” means engaging in tobacco retailing at other than a fixed location. “License” means a tobacco retailer license issued by the city pursuant to this chapter. “Licensee” means any proprietor holding a license issued by the city pursuant to this chapter. “Person” means any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.
“Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a 10 percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person has, or can have, sole or shared control over the day-to-day operations of a business. "Smoking lounge" means any business establishment that is dedicated to the smoking of tobacco products, including, but not limited to, establishments known variously as cigar lounges, hookah lounges or tobacco clubs. For purposes of this Chapter, "smoking lounge" means private smokers' lounge as defined in California Labor Code § 6404.5
“Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, hookah, or any other lighted or heated tobacco or plant product intended for inhalation, including marijuana, whether natural or synthetic, in any manner or in any form. “Smoking” includes the use of an electronic smoking device which creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking.
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“Tobacco paraphernalia” means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette-rolling machines, electronic cigarettes, e-cigarettes, electronic smoking devices, electronic cigarette cartridges, electronic smoking device cartridges and related products, and any other item designed or marketedused for the smoking consumption, use, or preparation or ingestion of a tobacco products. “Tobacco product” shall means any tobacco cigarette, cigar, pipe tobacco, smokeless tobacco, snuff, chewing tobacco, e-cigarette or electronic smoking device as defined in RCMC 6.84.020(F), or any other form of tobacco or product containing at least 50 percent tobacco which may be utilized for smoking, chewing, inhalation or other manner of ingestion. “Tobacco product” shall not include any cessation product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco dependence, unless such product emits smoke as defined by RCMC 6.84.020(R). “Tobacco product” means:
1) Any product containing, made of, or derived from tobacco or nicotine, whether natural or synthetic, that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by any other means, including but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, or snus;
2) Any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or 3) Any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes.
“Tobacco product” does not mean drugs, devices, or combination products authorized for sale by the U.S.
Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. “Tobacco retailer” means any person who sells, offers for sale, exchanges, or offers to exchange for any form of consideration tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, offered for sale, exchanged, or offered for exchange.
“Tobacco retailing” means selling, offering for sale, exchanging, or offering to exchange for any form of consideration tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, offered for sale, exchanged, or offered for exchange. [Ord. 13-2014 §§ 4 – 6; Ord. 3-2005 § 2].
4.07.040 Requirement for tobacco retailer license.
A. It shall be unlawful for any person to act as a tobacco retailer without first obtaining a license for each location at which tobacco retailing is to occur. No license will be issued to authorize tobacco retailing at other than a fixed location. No license will be issued for itinerant tobacco retailing or tobacco retailing from vehicles.
B. Nothing in this chapter shall be construed to grant any person obtaining a license any status or right other than the right to act as a tobacco retailer at the location in the city identified on the face of the license, subject to compliance with all other applicable laws, regulations, and ordinances. Nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law, including, without limitation, any condition or limitation on indoor smoking made applicable to business establishments by Section 6404.5 of the Labor Code. [Ord. 3-2005 § 2].
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4.07.050 Application procedure.
All applications for a license shall be submitted to the city manager in the name of each proprietor proposing to conduct tobacco retailing and shall be signed by each proprietor or an authorized agent thereof. A proprietor proposing to conduct tobacco retailing at more than one location shall submit a separate application for each location. Every application shall be submitted on a form supplied by the city manager and shall contain the following information:
A. The name, address, and telephone number of each proprietor; and B. The business name, address, and telephone number of the fixed location for which a license is sought; and C. Whether or not any proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation; and D. Such other information as the city manager deems necessary for the administration or enforcement of this chapter. [Ord. 3-2005 § 2].
4.07.060 Issuance and renewal of license.
A. Upon the receipt of an application for a license and the applicable license fee, the city manager shall issue a license unless:
1. The application is incomplete or inaccurate;
2. The application seeks authorization for tobacco retailing at an address that appears on a license that is suspended, has been revoked, or is subject to suspension or revocation proceedings for violation of any of the provisions of this chapter; provided, however, this subsection shall not constitute a basis for denial of a license if either or both of the following apply:
a. The applicant provides the city with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arm’s length transaction. For the purposes of this subsection, an “arm’s length transaction” is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this chapter that occurred at the location, is presumed not to be an “arm’s length transaction”;
b. It has been more than five years since the most recent license for that location was revoked;
3. The application seeks authorization for tobacco retailing that is unlawful pursuant to this code, or that is unlawful pursuant to any other local, state, or federal law;
4. The city manager has information that the applicant or his or her agents or employees has violated any local, state or federal tobacco control law at the location for which the license or renewal of the license is sought within the preceding 30-day period;
5. There are grounds for denial pursuant to Chapter 4.06 RCMC; or
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6. No general business license has been granted for the enterprise pursuant to Chapter 4.06 RCMC.
B. A license shall be valid for one year and an application for renewal must be filed not later than 30 days prior to the expiration of the license, but no earlier than 60 days prior to the expiration of the license. Unless revoked on an earlier date, all licenses shall expire one year after the date of issuance. A license may be renewed for additional periods of one year by submitting an application to the tax and license collector and payment of the applicable license fee; provided, however, a license that is suspended, has been revoked, or is subject to suspension or revocation proceedings shall not be renewed. The application and license fee shall be submitted at least 30 days, but not more than 60 days, prior to the expiration of the current valid license. The applicant shall follow all of the procedures and provide all of the information required by RCMC 4.07.050, and the tax and license collector shall process the application according to the provisions of this section. Provided that an application is made within the time period required by this subsection, a licensee may continue the sale of tobacco products pending a determination of the tax and license collector to renew or disapprove the license.
C. Where the city manager does not approve a license or renewal of a license, the procedures for denial, including appeals therefrom, of RCMC 4.07.120 shall apply. [Ord. 3-2005 § 2].
4.07.070 Display of license.
Each license shall be prominently displayed in a publicly visible location at the licensed premises. [Ord. 3- 2005 § 2].
4.07.080 License fee.
The fee for issuance or renewal of a license shall be established by the city manager and shall be in addition to the city’s business operation tax and any other license or permit fee imposed by this code upon the applicant.
The license fee shall be paid to the city at the time the license application is submitted. The amount of the fee shall be determined on the basis of the costs incurred in the enforcement of tobacco retailing laws together with the costs, including the costs of counsel, incurred in the administration of this chapter. [Ord. 6-2010 § 5; Ord. 3-2005 § 2].
4.07.090 License nontransferable.
A license is nontransferable. If a licensee changes business location, that licensee must obtain a new license prior to acting as a tobacco retailer at the new location. If a business licensed to conduct tobacco retailing is sold, the new owner must obtain a license for that location before acting as a tobacco retailer. [Ord. 3-2005 § 2].
4.07.100 License violation.
A. It shall be a violation of a license for a licensee or his or her agents or employees to violate any local, state, or federal tobacco-related law. [Ord. 3-2005 § 2].
B. It shall be a violation of a license for a licensee, or a licensee’s agents or employees to sell, offer for sale, or distribute any flavored tobacco product. There is a rebuttable presumption that a tobacco product is a flavored tobacco product, if a tobacco manufacturer or its agents or employees has made a public statement or claim that the tobacco product has or produces a characterizing flavor, including, but not limited to, text, color, or images on the product’s labeling or packaging that are used to expressly or impliedly communicate that a tobacco product has a characterizing flavor.
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1. After ninety (90) calendar days from the effective date of this Chapter, it shall be a violation of this Chapter for a tobacco licensee, or a licensee’s agents or employees to sell, offer for sale, or distribute any prohibited product.
2. This Chapter shall not apply to any existing establishment that (i) has been formally permitted to allow the on-site smoking of tobacco products under Section 23.919.100 of the Rancho Cordova Municipal Code and that (ii) sells only shisha tobacco products (as defined in California Health and Safety Code Section 104559.5) for onsite consumption. The hookah tobacco retailer has a valid license to sell tobacco products issued pursuant to Chapter 2 (commencing with Section 22971.7) of Division 8.6 of the Business and Professions Code. Retail sales of flavored tobacco products other than shisha tobacco products (as defined in California Health and Safety Code Section 104559.5) by such smoking lounges are prohibited. No flavored shisha tobacco products purchased at such smoking lounges may be removed from the premises. As required in Section 23.919.100 of the Rancho Cordova Municipal Code, all consumption or use of flavored shisha tobacco products at such smoking lounges shall occur indoors. The hookah tobacco retailer shall operate in accordance with all relevant state and local laws relating to the sale of tobacco products.
4.07.110 Administrative fine.
A. Any tobacco retailer or licensee person violating the provisions of this Chapter shall be guilty of a misdemeanor, and in addition to any other remedy, shall be liable for an administrative fine of one thousand dollars ($1,000) per violation. Each day a violation exists shall constitute a new and separate violation. If the city finds, based on substantial evidence, that any unlicensed person, including a person named on a revoked or suspended license, has engaged in tobacco retailing in violation of RCMC 4.07.040, such person shall be subject to an administrative citation and fine as provided for in RCMC 16.18.205(F).
B. Any violation of this Chapter may be remedied by a civil action brought by the City Attorney. The city may recover reasonable attorney’s fees and costs of any civil action brought by the City Attorney to remedy any violation of this Chapter.
C. Additional Amounts. Administrative costs, interest, late payment charges, costs of compliance reinspections, and collection costs are in addition to the fine as set forth in Subsection (A)RCMC 16.18.205(F).
C. Each day that such a person engages in tobacco retailing shall constitute a separate violation.
D. A notice of violation and of intent to impose a fine shall be personally served on, or sent by certified mail to, the person or persons subject to the fine. The notice shall state the basis of the city’s determinations and include an advisement of the right to request a hearing to contest the fine. Any request for a hearing must be in writing and must be received by the city within 10 calendar days of personal service of the notice on the person or persons subject to a fine or within 15 calendar days if the person or persons subject to a fine are served by mail.
E. If no request for a hearing is timely received, the city’s determination on the violation and the imposition of a fine and any additional amounts pursuant to subsection (CB) of this section shall be final and payment shall be made within 30 calendar days of written demand made in the manner specified above for a notice of violation. If the fine is not paid within that time, the fine may be collected, along with any additional amounts pursuant to subsection (CB) of this section, in any manner provided by law. In the event that a judicial action is necessary to compel payment, the person or persons subject to the fine and any additional amount shall also be liable for the costs of the suit and attorneys’ fees incurred by the city in collecting the fine.
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F. If a hearing is requested pursuant to subsection (D) of this section, the city shall provide written notice, within 45 calendar days of its receipt of the hearing request, to the person or persons subject to a fine and any additional amount, of the date, time, and place of the hearing in the manner specified above for a notice of violation.
G. The hearing shall be conducted in accordance with the procedures set forth in RCMC 4.07.140 through
4.07.160.
H. If no timely notice of appeal to the superior court is filed, or the city is not timely served with a copy of a notice of appeal, the hearing officer’s decision and findings shall be deemed confirmed and the fine and any additional amounts imposed pursuant to subsection (CB) of this section shall be collected pursuant to subsection (E) of this section. [Ord. 6-2010 § 6; Ord. 3-2005 § 2].
4.07.120 Suspension or revocation of license.
A. In addition to any other remedy authorized by law, a license shall be suspended or revoked as provided in this section if the city manager finds that the licensee or his or her agents or employees has or have violated any of the provisions of this chapter; provided, however, violations by a licensee at one location may not be accumulated against other locations of that same licensee, nor may violations accumulated against a prior licensee at a licensed location be accumulated against a new licensee at the same licensed location.
1. Upon a finding by the city manager of a first license violation within any five-year period, the license shall be suspended for 30 days.
2. Upon a finding by the city manager of a second license violation within any five-year period, the license shall be suspended for 90 days.
3. Upon a finding by the city manager of a third license violation within any five-year period, the license shall be suspended for one year.
4. Upon a finding by the city manager of a fourth license violation within any five-year period, the license shall be revoked.
B. Notwithstanding RCMC 4.07.110(A), a license shall be revoked if the city manager finds that either one or both of the following conditions exist:
1. One or more of the bases for denial of a license under RCMC 4.07.060(A) existed at the time application was made or at any time before the license was issued.
2. The information contained in the license application, including supplemental information, if any, is found to be false in any material respect.
C. In the event the city manager suspends or revokes a license, written notice of the suspension or revocation shall be served upon the licensee within five days of the suspension or revocation. The notice shall contain:
1. A brief statement of the specific grounds for such suspension or revocation;
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2. A statement that the licensee may appeal the suspension or revocation by submitting an appeal, in writing, in accordance with the provisions of RCMC 4.07.130, to the city manager, within 10 calendar days of the date of service of the notice; and
3. A statement that the failure to appeal the notice of suspension or revocation will constitute a waiver of all right to an administrative appeal hearing, and the suspension or revocation will be final.
D. A licensee for whom a license suspension is in effect must remove all tobacco products and tobacco paraphernalia from public view at the address that appears on the suspended license. [Ord. 3-2005 § 2].
4.07.130 Denial, suspension and revocation – Appeals.
A. Any applicant or licensee aggrieved by the decision of the city manager in denying, suspending, or revoking a license may appeal the decision by submitting a written appeal to the city manager within 10 calendar days from the date of service of the notice of denial, suspension, or revocation. The written appeal shall contain:
1. A brief statement in ordinary and concise language of the specific action protested, together with any material facts claimed to support the contentions of the appellant;
2. A brief statement in ordinary and concise language of the relief sought, and the reasons why it is claimed the protested action should be reversed or otherwise set aside;
3. The signatures of all parties named as appellants and their official mailing addresses; and
4. The verification (by declaration under penalty of perjury) of at least one appellant as to the truth of the matters stated in the appeal.
B. The appeal hearing shall be conducted in accordance with RCMC 4.07.140 through 4.07.160.
C. Upon receipt of any appeal filed pursuant to this section, the city manager shall transmit said appeal to the secretary of the hearing examiner who shall calendar the matter for hearing within 45 days.
D. Written notice of the time and place of the hearing shall be given at least 10 calendar days prior to the date of the hearing to each appellant by the secretary of the hearing examiner either by causing a copy of such notice to be delivered to the appellant personally or by mailing a copy thereof, postage prepaid, addressed to the appellant at the address shown on the appeal.
E. Failure of any person to file a timely appeal in accordance with the provisions of this section shall constitute an irrevocable waiver of the right to an administrative hearing and a final adjudication of the notice and order, or any portion thereof.
F. Only those matters or issues specifically raised by the appellant in the appeal notice shall be considered in the hearing of the appeal.
G. Any suspension or revocation of a license shall be stayed during the pendency of an appeal which is properly and timely filed pursuant to this section. [Ord. 3-2005 § 2].
4.07.140 Hearings – Generally.
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A. The city manager shall appoint a hearing examiner to hear appeals brought pursuant to this chapter.
B. The city manager shall promulgate rules and procedures as necessary for the use of the hearing examiner.
C. At the time set for hearing, the hearing examiner shall proceed to hear the testimony of the city manager, the appellant, and other competent persons, including members of the public, respecting those matters or issues specifically listed by the appellant in the notice of appeal.
D. The proceedings at the hearing shall be electronically recorded. Either party may provide a certified shorthand reporter to maintain a record of the proceedings at the party’s own expense.
E. The hearing examiner may, upon request of the appellant or upon request of the city manager, grant continuances from time to time for good cause shown, or upon his or her own motion.
F. In any proceedings under this chapter, the hearing examiner has the power to administer oaths and affirmations and to certify to official acts. [Ord. 3-2005 § 2].
4.07.150 Conduct of hearing.
A. Hearings need not be conducted according to the technical rules relating to evidence and witnesses. Section 11513, Subsections (a), (b) and (c), of the Government Code as presently written or hereinafter amended shall apply to hearings under this chapter.
B. Oral evidence shall be taken only upon oath or affirmation.
C. Irrelevant and unduly repetitious evidence shall be excluded.
D. Each party shall have these rights, among others:
1. To call and examine witnesses on any matter relevant to the issues of the hearing;
2. To introduce documentary and physical evidence;
3. To cross-examine opposing witnesses on any matter relevant to the issues of the hearing;
4. To impeach any witness regardless of which party first called the witness to testify;
5. To rebut the evidence presented against the party; and
6. To represent himself, herself, or itself or to be represented by anyone of his, her, or its choice who is lawfully permitted to do so.
E. In reaching a decision, official notice may be taken, either before or after submission of the case for decision, of any fact that may be judicially noticed by the courts of this state or that may appear in any of the official records of the city or any of its departments. [Ord. 3-2005 § 2].
4.07.160 Form and contents of decision – Finality of decision.
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A. If it is shown, by a preponderance of the evidence, that one or more bases exist to deny, suspend, or revoke the license, the hearing examiner shall affirm the city manager’s decision to deny, suspend, or revoke the license. The decision of the hearing examiner shall be in writing and shall contain findings of fact and a determination of the issues presented.
B. The decision shall inform the appellant that the decision is a final decision and that the time for judicial review is governed by Section 1094.6 of the California Code of Civil Procedure. Copies of the decision shall be delivered to the parties personally or sent by certified mail to the address shown on the appeal. The decision shall be final when signed by the hearing examiner and served as provided in this section. [Ord. 3-2005 § 2].
4.07.170 Enforcement.
A. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity.
B. Any violation of this chapter may be remedied by a civil action brought by the city attorney, including, for example, administrative or judicial nuisance abatement proceedings, civil or criminal enforcement proceedings, and suits for injunctive relief. The city may recover reasonable attorneys’ fees and costs of suit in any civil action brought by the city attorney to remedy any violation of this chapter.
C. Violations of this chapter are hereby declared to be public nuisances subject to abatement by the city. [Ord. 3-2005 § 2].
4.07.180 Severability.
If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this chapter or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, that decision shall not affect the validity or effectiveness of the remaining portions of this chapter or any part thereof. The city council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrase hereof be declared invalid or unenforceable. [Ord. 3-2005 § 2].
4.07.190 Effective date and publication.
Within 15 days from and after adoption, the ordinance codified in this chapter shall be published once in the Grapevine Independent, a newspaper of general circulation printed and published in Rancho Cordova City and circulated in the city of Rancho Cordova, in accordance with Section 36933 of the California Government Code. The ordinance codified in this chapter shall take effect and be enforced 30 days after its adoption. [Ord. 3-2005 § 2].
Rancho Cordova Municipal Code
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DISTRIBUTION OF TOBACCO PRODUCTS TO MINORS
Sections:
6.86.010 Purposes.
6.86.020 Definition – Distribute.
6.86.030 Definition – Person.
6.86.040 Definition – Tobacco product.
6.86.050 Definition – Tobacco vending machine.
6.86.060 Definition – Tobacco vending machine owner.
6.86.070 Distribution of tobacco products to minors prohibited.
6.86.080 Distribution of tobacco products to minors prohibited – Premises managers.
6.86.090 Proof of age.
6.86.100 Defense – Evidence of majority.
6.86.110 Repealed.
6.86.120 Posting of signs required.
6.86.010 Purposes.
The protection of the public welfare requires that potential access by minors to all forms of tobacco products be strictly regulated.
Harvard University and the National Institute on Drug Abuse have reported that the nicotine in tobacco is a powerful, habit-forming drug that leads to compulsive use, and produces strong withdrawal symptoms. The U.S. Public Health Service has described nicotine addiction as the most widespread example of drug dependence in our country.
Studies have found that nicotine addiction typically begins in childhood. It has been estimated that thousands of American children smoke for the first time every day. Many youth, particularly male teenagers, use smokeless tobacco. Reported tests have shown that minors as young as 11 years of age have experienced little or no difficulty in purchasing tobacco products.
The purpose of this chapter is to reduce the likelihood of minors obtaining tobacco products in the city of Rancho Cordova by regulation of the potential sources thereof without unduly interfering with permitted transactions or prohibiting tobacco vending machines. This chapter enables affected persons to determine for themselves the methods they will employ to achieve compliance herewith. [Ord. 38-2007 § 1 (Exh. 1(A)); Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.020 Definition – Distribute.
“Distribute” shall mean to sell, give away, or in any way furnish as part of a commercial transaction, including by means of direct retail sale, vending machine sale, or promotional free distribution. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.030 Definition – Person.
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Chapter 6.86 Distribution of Tobacco Products to Minors Page 14/22 “Person” shall mean an individual, a partnership, corporation, unincorporated association, joint venture or other entity. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.040 Definition – Tobacco product.
“Tobacco product” shall mean any tobacco cigarette, cigar, pipe tobacco, smokeless tobacco, snuff, chewing tobacco, electronic cigarette, e-cigarette or electronic smoking device, as defined in RCMC 6.84.024, or any other form of tobacco or product containing at least 50 percent tobacco which may be utilized for smoking, chewing, inhalation or other manner of ingestion. “Tobacco product” shall not include any cessation product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco dependence, unless such product emits smoke as defined by RCMC 6.84.041. [Ord. 9-2014 § 5; Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.050 Definition – Tobacco vending machine.
“Tobacco vending machine” shall mean any electronic or mechanical device the operation of which depends upon the insertion of money, in coin or paper bill, or other thing representative of value, which dispenses or vends a tobacco product. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.060 Definition – Tobacco vending machine owner.
“Tobacco vending machine owner” shall mean any person who has an ownership or leasehold interest in a tobacco vending machine and who installs or places, or causes to be installed or placed, such tobacco vending machine on any premises for the purpose of distributing a tobacco product therefrom. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.070 Distribution of tobacco products to minors prohibited.
Any person, including a tobacco vending machine owner, who distributes a tobacco product to a minor who is in fact under the age of 18 years, whether or not the fact of such minority was known to such person at the time of distribution, is guilty of an infraction. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.080 Distribution of tobacco products to minors prohibited – Premises managers.
Any person who authorizes the installation or placement of a tobacco vending machine upon premises which the person manages or otherwise controls and who permits or suffers, knowingly or unknowingly, any tobacco product to be distributed from such vending machine to a minor under the age of 18 years is guilty of an infraction. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.090 Proof of age.
For the purpose of preventing the violation of RCMC 6.86.070 or 6.86.080, any person may refuse to distribute a tobacco product to a person who is unable to produce adequate written evidence that he or she is over the age of 18 years. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.100 Defense – Evidence of majority.
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Chapter 6.86 Distribution of Tobacco Products to Minors Page 15/22 Proof that the defendant, or his employee or agent, demanded, was shown, or acted in reliance upon bona fide evidence of majority and identity in any transaction prohibited by RCMC 6.86.070 or 6.86.080 shall be a defense to any criminal prosecution therefor, or to any civil proceeding based thereon. Bona fide evidence of majority and identity of a person shall be a document issued by a federal, state, county or municipal government, or subdivision or agency thereof, which contains the name, date of birth, description and picture of the person, including, without limitation, a motor vehicle operator’s license, or an identification card issued to a member of the armed forces. [Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988]
6.86.110 Purchase of tobacco products by minors prohibited.
Repealed by Ord. 19-2020. [Ord. 38-2007 § 1 (Exh. 1(A)); Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988].
6.86.120 Posting of signs required.Share
A. Every person who distributes tobacco products within the city of Rancho Cordova shall post conspicuously and keep so posted in each place of business from which tobacco products are distributed a sign in letters at least one inch high which states as follows:
It is unlawful to distribute tobacco products to a minor under the age of 18 years.
It is unlawful for a minor under the age of 18 years to purchase tobacco products.
RCMC 6.86.070, 6.86.080
B. Every tobacco vending machine owner shall affix and keep affixed to the front of each tobacco vending machine within the city of Rancho Cordova a sign as described in subsection (A) of this section. [Ord. 38-2007 § 1 (Exh. 1(A)); Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0734 § 1, 1988
Rancho Cordova Municipal Code
Chapter 6.84.020 Regulation of Smoking Page 16/22
Chapter 6.84
REGULATION OF SMOKING
6.84.020 Definitions.
A. “Bar” means an area in which the serving of food is only incidental to the consumption of alcoholic beverages and where no persons under the age of 18 years are allowed to enter except to travel to the restroom facilities. The term “bar” shall not include an adjacent restaurant dining area when meals are being served.
B. “Business” means any sole proprietorship, partnership, joint venture, corporation or other business entity formed for profit-making purposes, including retail establishments where goods and services are sold, as well as professional corporations and other entities under which professional services are delivered.
C. “Child care facilities” means any family day care home regulated by Sections 1597.30 through 1597.621 of the California Health and Safety Code, and any day care center for children regulated by Section 1596.90 et seq. of the California Health and Safety Code. It does not include foster homes or residential child care facilities.
D. “Cigarette” means any roll for smoking, made wholly or in part of tobacco, irrespective of size or shape and irrespective of whether the tobacco is flavored, adulterated or mixed with any other ingredient, where such roll has a wrapper or cover made of paper or any other material, except where such wrapper is wholly or in the greater part made of tobacco and such roll weighs over three pounds per thousand, as defined in Revenue and Taxation Code Section 30003, as it may be subsequently amended or superseded.
E. “Dining area” means any area, including streets and sidewalks, that is available to or commonly used by the general public or an employee and which is designated, established or regularly used for the consumption of food or drink.
F. “E-cigarette” or “electronic cigarette” or “electronic smoking device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, vape pen, or e-hookah. “E-cigarette”, “electronic cigarette”, or “electronic smoking device” includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine .“Ecigarette,” “electronic cigarette,” or “electronic smoking device” does not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. “E-cigarette” or “electronic cigarette” or “electronic smoking device” means any electronic or battery-operated device, the use of which resembles smoking, that can be used to deliver an inhalable dose of nicotine or other substances by delivering a vaporized solution. “Ecigarette,” “electronic cigarette,” or “electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. “Ecigarette,” “electronic cigarette,” or “electronic smoking device” does not include any product specifically approved by the United States Food and Drug Administration for use in the mitigation, treatment, or prevention of disease.
G. “Employee” means any person who is employed by an employer for direct or indirect monetary wages or profit, including those employed full-time, part-time, temporary or contracted for from a third party; “employee” also means any person who performs services as a volunteer or intern for a business or nonprofit entity.
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Chapter 6.84.020 Regulation of Smoking Page 17/22
H. “Employer” means any person, business, corporation, entity, partnership, municipal corporation or agency, or nonprofit entity which employs the services of one or more persons, and includes the city.
I. “Enclosed” means closed in by a roof and three or more connected, floor-to-ceiling walls with appropriate openings for ingress and egress.
J. “Multifamily residential property,” for purposes of this chapter, means residential property containing two or more total units with one or more shared walls, floors or ceilings, including but not limited to rental complexes, apartments, residential cooperatives, condominium complexes, senior citizen residences, assisted living complexes and skilled nursing facilities. “Multifamily residential property” does not include:
1. A hotel or motel that meets the requirements of Section 1940(b)(2) of the Civil Code;
2. A mobile home park;
3. A campground;
4. A single-family residence;
5. A single-family home with a detached in-law or second unit when permitted pursuant to a city ordinance and/or applicable state law.
K. “Mall” means enclosed public walkway or hall area which serves to connect retail or professional establishments, whether publicly or privately owned.
L. “Nonprofit entity” means any corporation, unincorporated association or other entity created for charitable, philanthropic, educational, character-building, political, social or other similar purposes, the net proceeds from the operation of which are not for private financial gain. A public agency is not a nonprofit entity within the meaning of this chapter.
M. “Open space” means any lot or area of land or water essentially or partially unimproved and set aside, dedicated, designated or reserved for public use or enjoyment, or for the use and enjoyment of owners and occupants of land adjoining or neighboring such open space.
N. “Place of employment” means any enclosed area under the control of a public, nonprofit, or private employer which employees normally frequent during the course of employment, including but not limited to work areas, employee lounges and restrooms, conference rooms and classrooms, vehicles, taxis, employee cafeterias or eating places, and hallways. A private residence is not a place of employment for the purposes of this chapter, unless it is used as a child care or health care facility, or unless it is used for a permitted home occupation having one or more employees, or which is visited by the public twice a month or more.
O. “Private club” means any eating establishment, organization, club, boardinghouse or guesthouse which gives or offers food for sale to the public, guests, patrons or employees, as well as kitchens in which food is prepared on the premises for serving elsewhere, including catering functions, except that the term “restaurant” shall not include bars.
P. “Recreational area” means any area that is publicly owned or controlled and open to the general public for recreational purposes. The term “recreational area” includes but is not limited to parks, picnic areas, playgrounds, sports fields, open space, walking paths, gardens, hiking trails, bike paths, riding trails, swimming pools, skateboard parks, and ice-skating rinks, but does not include golf courses.
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Chapter 6.84.020 Regulation of Smoking Page 18/22
Q. “Service area” means any publicly or privately owned area, including streets and sidewalks, that is designated to be used or is regularly used by one or more persons to wait for or receive a service or make a transaction, whether or not such service or transaction involves the exchange of money. The term “service area” includes automated teller machine waiting areas, all bus stops, light rail stops, and other local public transit facilities.
R. “Smoke” means the gases, particles or vapors released into the air by combustion, electronic ignition or vaporization when the apparent or usual purpose of the combustion, electronic ignition or vaporization is human inhalation of the resulting combustion products, including but not limited to tobacco smoke, cigarette smoke, marijuana smoke, and gases, aerosol or vapor released by the ignition of e-cigarettes or electronic smoking devices. “Smoke” does not include the product of combustion of incense or similar products when used solely for olfactory purposes and not containing tobacco or nicotine.
S. “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, hookah, or any other lighted or heated tobacco or plant product intended for inhalation, including marijuana, whether natural or synthetic, in any manner or in any form. “Smoking” includes the use of an electronic smoking device which creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking.“Smoking” means engaging in an act that generates smoke, as defined in subsection (R) of this section, including but not limited to the lighting or possession of a lighted pipe, cigar, cigarette, or hookah water pipe, an operating e-cigarette or electronic smoking device, as defined in subsection (F) of this section, or a lighted smoke inhalation device of any kind that generates smoke of any kind, from tobacco, marijuana, any liquid cartridge, or any other weed or plant.
Smoking does not mean the operation of any device or product specifically approved by the United States Food and Drug Administration for the use in mitigation, treatment, or prevention of disease.
T. “Sports arena” means any sports pavilion, gymnasium, health spa, boxing arena, swimming pool, roller rink, ice rink, bowling alley, pool hall, and other similar places where members of the general public assemble to engage in physical exercise, participate in athletic competition, or witness sports events.
U. “Tobacco product” means:
1) Any product containing, made of, or derived from tobacco or nicotine, whether natural or synthetic, that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by any other means, including but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, or snus;
2) Any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or 3) Any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes.
“Tobacco product” does not mean drugs, devices, or combination products authorized for sale by the U.S.
Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.“Tobacco product” shall mean any tobacco cigarette, cigar, pipe tobacco, smokeless tobacco, snuff, chewing tobacco, e-cigarette or electronic smoking device as defined in subsection (F) of this section, or any other form of tobacco or product containing at least 50 percent tobacco which may be utilized for smoking, chewing, inhalation or other manner of ingestion. “Tobacco product” shall not include any cessation product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco dependence, unless such product emits smoke as defined by subsection (R) of this section.
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Chapter 6.84.020 Regulation of Smoking Page 19/22
V. “Unenclosed area” means any area that is not an enclosed area.
W. “Work area” or “workplace” means any area of a place of employment enclosed by floor-to-ceiling walls in which two or more employees are assigned to perform work for an employer. [Ord. 14-2020 § 2; Ord. 13-2014 § 3; Ord. 9-2014 §§ 2 – 4; Ord. 21-2003 §§ 2, 4; Ord. 20-2003 §§ 2, 4; SCC 0810 § 2, 1990; SCC 610 § 2, 1984. Formerly 6.84.010, 6.84.015, 6.84.024, 6.84.041, 6.84.045, 6.84.055]
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Chapter 23.919.100 Smokers’ lounge, hookah bar, e-cigarette lounge and vapor lounge/bar Page 20/22
23.919.100 Smokers’ lounge, hookah bar, e cigarette lounge and vapor lounge/bar A. Purpose and Findings.
1. The council finds that the use of hookah pipes, electronic cigarettes, and other similar devices in smokers’ lounges, hookah bars, and vapor bars/lounges and the activities associated with such businesses (including loud music, large numbers of customers congregating for long periods, etc.) have been associated with increases in odors, noise, vapors, second-hand smoke, parking impacts, loitering, and disturbances in the peace. The purpose of this section is to prevent the overconcentration of this land use and to mitigate the negative impacts associated with this land use.
2. The council also finds that smoking and vaping uses expose minors to dangerous secondhand smoke by-products and increase the potential for minors to associate smoking of electronic tobacco devices and hookah pipes with a normative or healthy lifestyle.
3. The council also finds that the tobacco smoke, including secondhand smoke, from hookah pipes and electronic cigarettes contributes to indoor air pollution and is a significant health hazard and carcinogen to smokers and nonsmokers alike, including employees of smokers’ lounges and hookah bars.
4. The U.S. Food and Drug Administration conducted laboratory analysis of electronic cigarette samples and found them to contain carcinogens and toxic chemicals to which users and bystanders could potentially be exposed, suggesting that the same health and public nuisance concerns present with conventional cigarettes exist with electronic cigarettes.
5. The U.S. Centers for Disease Control and Prevention reports that smoking a hookah has many of the same health risks as cigarette smoking; that hookah use by youth is increasing; that the charcoal used to heat hookah tobacco can have negative health risks because it produces high levels of carbon monoxide, metals, and carcinogens; that hookah smokers may absorb more of the toxic substances also found in cigarette smoke than cigarette smokers do; that secondhand smoke from hookahs can be a health risk for nonsmokers; and that new forms of electronic hookah smoking are now on the market and very little information is available on the health risks of electronic tobacco products.
6. The city has banned indoor smoking in places accessible to the public under Chapter 6.84 RCMC (Regulation of Smoking). However, California Labor Code Section 6404.5(d)(4) allows for indoor smoking within retail or wholesale tobacco shops and private smokers’ lounges and such businesses do currently exist within the city; and therefore the council finds that it is necessary to enact clear and defined regulations for this use.
B. Applicability.
1. The provisions of this section shall apply in addition to other regulations of this zoning code and municipal code. In the event of a conflict between other sections and this section, this section shall control.
2. The provisions of this section shall apply to new facilities established following the effective date of the ordinance codified in this title. All legal, code-compliant smokers’ lounges, hookah bars, vapor bars, and e-cigarette lounges currently located in the city shall become legal, nonconforming uses and as such must comply with the regulations set forth in Chapter 23.170 RCMC.
C. Location. Smokers’ lounges, hookah bars, e-cigarette, and vapor bars/lounges shall only be permitted in general commercial (GC) and light industrial (M-1) zoning districts.
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Chapter 23.919.100 Smokers’ lounge, hookah bar, e-cigarette lounge and vapor lounge/bar Page 21/22 D. Operational and Development Standards. The following operational and development standards shall apply to all smokers’ lounges, hookah bars, vapor bars, and e-cigarette lounges in the city and shall be included as conditions imposed upon any license, permit, or other entitlement granted for such a business:
1. Distance Requirements. All e-cigarette lounges, hookah bars, vapor bars, and smokers’ lounges shall be located at least 500 feet from other e-cigarette lounges, hookah bars, smokers’ lounges, smoke shops, and tobacco shops. All e-cigarette lounges, hookah bars, vapor bars, and smokers’ lounges shall be located at least 1,000 feet from the following:
a. Public or private K-12 schools and day cares.
b. Libraries.
c. Churches.
d. Community and recreation centers.
e. Liquor stores.
f. Sexually oriented businesses.
g. Tattoo parlors.
h. Pawnshops.
i. Bars and nightclubs.
j. Card rooms.
k. Check cashing businesses.
l. Parks.
m. Residential zones.
2. The business shall be owner-operated or otherwise exempt from the prohibition of smoking in the workplace pursuant to California Labor Code Section 6404.5.
3. The establishments shall operate in compliance with all federal, state, county, and local laws and regulations.
4. Minors Prohibited. No persons under 2118 years of age shall be permitted within the establishment, including as employees, and business owners or operators shall require proof of identification to verify the age of customers, visitors, and employees. This means that all employees must be at least 2118 years of age.
5. Parking Standards. Parking shall be provided under the standards established for bars and nightclubs in Table 23.719-1, as may be amended from time to time.
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Chapter 23.919.100 Smokers’ lounge, hookah bar, e-cigarette lounge and vapor lounge/bar Page 22/22
6. Hours of Operation. Operating hours shall be limited to 8:00 a.m. to 10:00 p.m.
7. Indoor Operation Only. All business-related activity, including smoking, shall be conducted entirely within a building. Outdoor seating, operating outdoor barbecues or braziers, and/or lighting coals outdoors shall not be permitted.
8. Entertainment and Admission Charges Prohibited. No live entertainment, including dancers, singers, disc jockeys, or comedians shall be permitted within the business. No admission charges, including a cover charge or minimum purchase requirement, shall be permitted.
9. Food and beverages, including alcoholic beverages and prepackaged food and beverages, shall not be sold, served, or consumed on the premises.
10. Visibility and Illumination. No window coverings or signage shall prevent visibility of the interior of the establishment from the outside during operating hours. The interior of the establishment shall have lighting adequate to make the conduct of patrons within the establishment readily discernible to people of normal visual capabilities.
11. Ventilation. Adequate ventilation must be provided in accordance with all standards imposed by the building official and fire department, and those establishments by state or federal laws. The requirements imposed by the building official or fire department may be more comprehensive than current building codes to prevent negative health and nuisance impacts on neighboring properties, including a requirement for a separate system to prevent smoke and vapors from migrating to adjoining suites or buildings. The ventilation shall, at a minimum, prevent smoke and vapors from migrating into adjacent buildings and/or suites and to outdoor public areas. A mechanical exhaust hood system shall be required if an establishment heats coals indoors.
12. Noise. Any amplified noise shall be subject to the regulations established in the municipal code, including those in Chapter 6.68 RCMC (Noise Control) and Chapter 23.737 RCMC (Noise, Odor, and Vibration Performance Standards), as may be amended from time to time.
13. Security. Uniformed security guard(s) shall be provided, as deemed necessary by the chief of police or his/her designee.
E. Penalties and Enforcement. Any violation of this section shall be enforced under Chapter 23.173 RCMC. [Ord. 4-2017 § 3 (Exh. B); Ord. 1-2016 § 2].
MEMORANDUM
City Council Staff Report - Page 1 of 3
ITEM 12.1.
DATE: May 16, 2022
TO: Honorable Mayor and Council Members
FROM: Michelle Mingay, Senior Finance Analyst
SUBJECT: A RESOLUTION AUTHORIZING THE ISSUANCE OF SPECIAL TAX
BONDS FOR AND ON BEHALF OF THE CITY OF RANCHO
CORDOVA COMMUNITY FACILITIES DISTRICT NO. 2014-1
(MONTELENA), APPROVING AND DIRECTING THE EXECUTION OF
A SUPPLEMENTAL FISCAL AGENT AGREEMENT AND BOND
PURCHASE AGREEMENT, APPROVING THE FORM OF THE
PRELIMINARY OFFICIAL STATEMENT, APPROVING SALE OF
SUCH BONDS, AND APPROVING RELATED DOCUMENTS AND
ACTIONS
RECOMMENDATION
Adopt the Resolution.
RESULT OF RECOMMENDED ACTION
Adoption of this resolution will authorize the sale of the second series of Special Tax Bonds (the “Bonds”) for and on behalf of Community Facilities District No. 2014-1 (Montelena) for the purpose of providing money for the acquisition and construction of improvements, and the payment of certain development impact fees related to the project, within the Community Facilities District.
BACKGROUND
Community Facilities District No. 2014-1 (Montelena) (“CFD 2014-1”) or (the “District”) was formed in 2014 to assist in the financing of the acquisition and construction of certain public facilities and payment of certain fees within the Montelena project. Through various City Council actions, the City Council has declared the necessity to incur bonded indebtedness in a maximum principal amount not to exceed $28,250,000.
On July 27, 2021, the City issued its $10,000,000 City of Rancho Cordova Community Facilities DistrictNo. 2014-1 (Montelena) Special Tax Bonds, Series 2021, which was thefirst series of bonds under the authorization.
Based on the current status of the property within the District, the appraisal estimates the value of the property within the District at approximately $220 million. This has created an opportunity for the District to issue special tax bonds. Based on the expected par amount of $9.78 million,
City Council Staff Report - Page 2 of 3
the property value compared to bonded debt lien would exceed the required 4:1 value to lien requirement, which is consistent with prior special tax bonds issued within the City.
The financing-related resolution approves the sale of the Bonds in an amount not to exceed $12 million, approves the Supplemental Agreement No. 1 to Fiscal Agent Agreement, approves the Bond Purchase Agreement, approves the Preliminary Official Statement and authorizes related documents on behalf of the District. Descriptions of these documents are as follows:
Supplemental Agreement No. 1 to Fiscal Agent Agreement: Supplemental Agreement No. 1 to Fiscal Agent Agreement allows U.S. Bank to act on behalf of the City to provide for the issuance of the Bonds, the disbursement of proceeds of the Bonds, the disposition of the special taxes securing the Bonds, and the administration and payment of the Bonds.
Bond Purchase Agreement: The Bond Purchase Agreement is a legally binding document between the issuer (City on behalf of the District) and an underwriter (Piper Sandler & Co.) establishing the terms of the Bond sale. The underwriter will put the Bonds on the market at the price and yield established during the Bond pricing call and agreed to by the City, currently scheduled for the week of May 30th. Approximately two weeks later the City delivers the Bonds to the underwriter and the underwriter pays the City for them, and investors purchase the Bonds from the underwriter.
Preliminary Official Statement: The preliminary Official Statement is a document that serves as the offering prospectus for the Bonds used by the underwriter to market the Bonds and indicates the security (special taxes) and source of payment for the Bonds. It is the City’s disclosure document relied on by Bond investors for making a purchase decision and discloses associated investment risks. A final version of Official Statement is produced once the pricing is determined.
Assuming the City Council approves this financing, staff will work with the Bond finance team to determine the final Bond sizing, and the preliminary Official Statement will be finalized and posted electronically for investors to review. Assuming the market remains stable, the City; NHA Advisors, LLC, the City’s Municipal Advisor; and Piper Sandler & Co., the bond underwriter, will hold a pre-pricing call the week of May 30, 2022 to review bond market conditions and the preliminary interest rates, after which, the Bonds will be sold. An authorized officer will then execute, on behalf of the City, a Bond Purchase Agreement with Piper Sandler & Co., finalizing the bond interest rates and setting the delivery date.
FISCAL IMPACT AND FUNDING SOURCE
None. The Special Tax Bonds are secured solely by the Special Taxes levies within the District and are not a debt of the City’s General Fund. Costs of issuance are payable solely from Bond proceeds.
In accordance with Government Code 5852.1, the following information consists of estimates of certain costs and charges for the Bonds that have been provided by NHA Advisors, LLC, the City’s municipal advisor, which has been represented by such party to have been provided in good faith as of May 5, 2022: (1) estimated true interest cost of the Bonds: 5.03%; (2) estimated finance charge of the Bonds (sum of all fees and charges paid to third parties):
$504,915; (3) estimated amount of proceeds of the Bonds received by the City (net of finance charges, reserves and capitalized interest, if any): $10,487,623; and (4) estimated total payment amount (sum total of all payments to pay debt service on the Bonds plus the finance
City Council Staff Report - Page 3 of 3
charge not paid with proceeds of the Bonds) calculated to the final maturity of the Bonds:
$20,254,088.
ATTACHMENT(S)
1. Resolution Authorizing Special Tax Bonds (Montelena) - 2022
2. Supplemental Agmt No. 1 FA (Montelena) - 2022
3. Bond Purchase Agmt - CFD No. 2014-1 (Montelena) 2022 Bonds
4. Preliminary Official Statement - CFD 2014-1 (Montelena)
ITEM 12.1. ATTACHMENT 1
Resolution No. XX-2022 Page 1 of 4
CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE
OF CALIFORNIA, AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS FOR AND ON BEHALF OF THE CITY OF RANCHO CORDOVA COMMUNITY FACILITIES DISTRICT NO. 2014-1 (MONTELENA), APPROVING AND DIRECTING THE EXECUTION OF A
SUPPLEMENTAL AGREEMENT TO FISCAL AGENT AGREEMENT AND BOND PURCHASE
AGREEMENT, APPROVING THE FORM OF PRELIMINARY OFFICIAL STATEMENT,
APPROVING SALE OF SUCH BONDS, AND APPROVING OTHER RELATED DOCUMENTS
AND ACTIONS
WHEREAS, the City Council has conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to form the City of Rancho Cordova Community Facilities District No. 2014-1 (Montelena) (the “CFD”), to authorize the levy of special taxes upon the land within the CFD, and to issue bonded indebtedness secured by said special taxes for the purpose of providing moneys for the construction and acquisition of improvements, and the payment of certain fees, authorized for the CFD; and WHEREAS, on June 2, 2014, the City Council, as legislative body of the CFD, and the qualified electors of the CFD, authorized the issuance of bonded indebtedness for the CFD in the maximum principal amount of not to exceed $28,250,000 (the “Authorization”); and WHEREAS, on July 27, 2021, the City previously issued for and on behalf of the CFD, the City of Rancho Cordova Community Facilities District No. 2014-1 (Montelena) Series 2021 (the “2021 Bonds”) in the initial principal amount of $10,000,000, which 2021 Bonds constituted the first series of bonds issued pursuant to the Authorization; and WHEREAS, the City now desires to issue a second series of the special tax bonds pursuant to the Authorization, as described in more detail herein (the “Bonds”); and WHEREAS, there has been submitted to the City Council a Supplemental Agreement No. 1 to Fiscal Agent Agreement (the “Supplemental Agreement”), which will supplement and amend the Fiscal Agent Agreement, dated as of July 1, 2021 (as so supplemented, the “Fiscal Agent Agreement”), between the City and U.S. Bank Trust Company, National Association (as successor to U.S. Bank National Association), as fiscal agent, providing for the issuance of the Bonds of the City for the CFD, and the City Council, with the aid of City staff, has reviewed the Supplemental Agreement and found it to be in proper order, and now desires to approve the Supplemental Agreement and the issuance of the Bonds; and WHEREAS, the City proposes to sell the Bonds to Piper Sandler & Co., as underwriter (the “Underwriter”), pursuant to the terms of a Bond Purchase Agreement by and between the City and the Underwriter, and the Underwriter proposes to offer the Bonds to the investing public by means of a Preliminary Official Statement, and the City Council, with the aid of City staff, has reviewed the Bond Purchase Agreement and the Preliminary Official Statement and found them to be in proper order, and now desires to approve said documents; and WHEREAS, the information required to be obtained and disclosed with respect to the Bonds by the City Council in accordance with Section 5852.1 of the California Government Code is set forth in the staff report accompanying this Resolution; and