6.4.1(ii) Dedication of Open Space Land. Landowner’s obligation to dedicate open space land shall be satisfied by Landowner’s dedication of Lot “A” to CRPD and Lot “H” to the City as shown on the Large Lot Tentative Subdivision Map, attached hereto as Exhibit 1.
3. Revised Section 6.4.1(iii) . City and Landowner agree that Section 6.4.1(iii) of the Development Agreement is hereby deleted in its entirety and replaced with the following:
6.4.1(ii
i) Open Space Land Improvement . Lot “A” shall be rough graded and improved with abutting street frontage, public sidewalks along the street frontage, and public storm water facilities and utility connections as described in the Conditions of Approval and as approved by the City and CRPD in the mass grading plans for Lot A and the subdivision improvement plans. The mass graded site will be landscaped with erosion control seeding approved by CRPD specified in the mass grading plans and the subdivision improvement plans. Mass grading, subdivision improvement plans , and erosion control seeding will be to the satisfaction of CRPD and per CRPD specifications. Improvements shall be constructed by Landowner, at Landowner’s cost, at the time noted in the phasing plan. The improved Lot “A” shall be dedicated to CRPD. There will be no reimbursement to developer for the Lot “A” improvements described in this paragraph.
CRP
D agrees to design and construct additional enhancements on Lot “A” as described in the Park Development Agreement utilizing Park Development Impact Fees.
Lot “
H” shall be improved with landscaping, a 7-foot wide sidewalk, and other associated facilities to the satisfaction of the City and per City specifications. Improvements shall be constructed by Landowner, at Landowner’s cost, at the time noted in the phasing plan. The improved Lot “H” shall be dedicated to the City. The Lot “H” improvements described in this paragraph shall be eligible for credit /reimbursement under City’s Community Places fee program subject to Landowner and City entering into a credit/reimbursement agreement for such improvements.
4. Revised Section 6.4.2(i) . City and Landowner agree that Section 6.4.1( i) of the Development Agreement shall be revised to delete the fourth sentence: “The City shall be named a third party beneficiary to the park development agreement.”
5. Revised Section 6.4.2(ii) . City and Landowner agree that Section 6.4.2(ii) of the Development Agreement is hereby deleted in its entirety and replaced with the following:
6.4.2(ii
) Open Space. Landowner shall irrevocably offer to dedicate Lot “A” to CRPD and Lot “H” to the City as shown on the Large Lot Tentative Subdivision Map prior to or concurrent with the recordation of the final subdivision map including any portion of such property.
6. Consistency with General Plan. The City Council has found and determined that this Second Amendment is consistent with the General Plan and the Sunridge Specific Plan.
7. Amendment Applicable to Property. This Second Amendment applies to development of the Property and does not affect or apply in any manner with respect to the development of any other property within the Sunridge Specific Plan Area.
8. Amendment. This Second Amendment amends, but does not replace or supersede, the ITEM 13.6.
ATTACHMENT 2
Exhibit A to the Ordinance
Development Agreement except as specified herein. As amended hereby with respect to the Property, the Development Agreement remains in full force and effect.
9. Incorporation of Recitals. The Preamble, Recitals, and all exhibits attached hereto are incorporated into this Second Amendment as if set forth herein in full.
10. Effective Date and Term of Second Amendment. The Effective Date of this Second Amendment is _______, 2026 which is the effective date of City Ordinance No. ________-2026, adopting this Second Amendment.
City
Manager Authorization . City, a municipal corporation, has authorized this Second 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 Ordinance No. _____-2026 adopted by the City Council on the ____ day of ________, 2026, and has caused this Second Amendment to be executed.
“CITY”
CIT
Y OF RANCHO CORDOVA,
a municipal corporation
By: _____
____________________________
Name: Micah Runner
Its: City Manager
Date: _______________________________
“LANDOWNER”
LAL BR
OTHERS, LLC,
a California limited liability company
By:
________________________________
Aman Lal, Managing Partner
Dat
e: _______________________________
ATTEST:
_____________________
_____________
City Clerk
ITEM 13.6.
ATTACHMENT 2
Exhibit A to the Ordinance
MEMORANDUM
City Council Staff Report - Page 1 of 1
ITEM 13.7.
DATE: January 5, 2026
TO: Honorable Mayor and Council Members
FROM:
Albert Stricker, Public Works Director
Quoc Nham, Principal Civil Engineer
Khaliq McClean, Associate Civil Engineer
SUBJECT: SECOND READING OF AN ORDINANCE ESTABLISHING A SPECIAL
TAX FOR TRANSIT-RELATED SERVICES FOR THE BIG BALLER
STORAGE RV PROJECT
RECOMMENDATION
Waive the second reading and adopt the Ordinance.
RESULT OF RECOMMENDED ACTION
Adoption of the Ordinance would assist the city in meeting the costs of providing transit-related services by creating a special tax area zone and establishing a special tax for transit-related services for the Big Baller Storage RV project.
BACKGROUND
The City Council adopted Resolution No.141-2005 on November 7, 2005, providing for a special tax for transit-related services to be imposed upon new development within the city.
Pursuant to that Resolution, a property owner approves a special tax on the parcels within a subdivision or project. The City Council then adopts a resolution creating a zone that encompasses the subdivision or project and an ordinance establishing the special tax.
This item will establish tax area Zone 35, the boundaries of which will be contiguous to the boundaries of the Big Baller Storage RV project, Attachment 2. In addition to creating the special tax, the Ordinance, Attachment 1, will also set the date for the transit-related services tax election, which will be held on February 19, 2026, at which time the ballot(s) will be tabulated by the City Clerk, and the results will be declared at the City Council meeting on March 2, 2026.
FISCAL IMPACT AND FUNDING SOURCE
There is no fiscal impact to the city.
ATTACHMENT(S)
1. Ordinance
2. Exhibit A to the Ordinance
3. Exhibit B to the Ordinance
ITEM 13.7. ATTACHMENT 1 Ordinance No. XX-2026 Page 1 of 5
CITY OF RANCHO CORDOVA
ORDINANCE NO. XX-2026
AN ORDINANCE OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA,
ESTABLISHING A SPECIAL TAX FOR TRANSIT-RELATED SERVICES FOR THE BIG
BALLER STORAGE RV PROJECT SUBJECT TO VOTER APPROVAL
THE CITY COUNCIL OF THE CITY OF THE RANCHO CORDOVA DOES ORDAIN AS FOLLOWS:
Section 1. Purpose, Intent and Authority.
It is of critical importance to the City Council of the City of Rancho Cordova that residents of and employees working in the city receive high quality transit-related services.
In carefully reviewing the city’s budget and revenue projections, it is clear to city staff that the city budget does not contain adequate funding to ensure the continued delivery of adequate high-quality transit-related services unless additional revenues are obtained.
It is the purpose and intent of this non-codified Ordinance to generate additional funds to pay for transit-related services by authorizing the levy of a tax on improved parcels of real property on the secured property tax roll of Sacramento County that are within Zone 35 of the Rancho Cordova Transit-Related Services Special Tax Area (the “Zone”).
This tax is a special tax within the meaning of Section 4 of the Article XIIIA of the California Constitution. Because the burden of this tax falls upon property, this tax also is a property tax, but this tax is not determined according to nor in any manner based upon the value of property; this tax is levied on a parcel and use of property basis. Insofar as not inconsistent with this Ordinance or with legislation authorizing special taxes and insofar as applicable to a property tax that is not based on value, such provisions of the California Revenue and Taxation Code and of Article XIII of the California Constitution as relate to ad valorem property taxes are intended to apply to the collection and administration of this tax (Section 4 of this Ordinance), as authorized by law. This tax is not an ad valorem property tax; it is an excise tax on the use of property. Because the revenue from the tax may be used only to fund transit-related services, it is also a special tax.
The revenues raised by this tax are to be used solely for the purpose of providing transit-related services as are deemed necessary by the City Council for the benefit of the residents and/or employees of Zone 35.
At the time that the Council adopted this non- codified Ordinance, there were zero (0) registered voters residing in Zone 35 and one property owner. Because the Transit-Related Services Special Tax will be imposed on property in Zone 35 and paid by the owner of the property, the Council finds that restricting the vote on the Transit-Related Services Special Tax to property owners in Zone 35 is appropriate and consistent with the principles and requirements of California Constitution article XIIIC (Proposition 218).
ITEM 13.7. ATTACHMENT 1 Ordinance No. XX-2026 Page 2 of 5
Section 2. Definitions.
The following definitions shall apply throughout this Ordinance.
A. "Constant first year dollars" shall mean an actual dollar amount which, in years subsequent to the first fiscal year the tax is levied, shall have the same purchasing price as the base amount in first fiscal year dollars as measured by the Consumer Price Index. The base amount shall be the amount of tax per parcel as specified in Section 3(A) herein. The adjustments from actual to constant dollars shall be made by use of the Consumer Price Index, as specified in Section 3(B) herein.
B. "Consumer Price Index" means the Consumer Price Index for all Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose Area as published by the U.S.
Department of Labor, Bureau of Labor Statistics. If the Consumer Price Index is discontinued or revised, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Consumer Price Index had not been discontinued or revised.
C. “Fiscal year" means the period of July 1 through the following June 30.
D. “Parcel" means the land and any improvements thereon, designated by an assessor’s parcel map and parcel number and carried on the secured property tax roll of Sacramento County. For the purposes of this Ordinance, parcel does not include any land or improvements outside the boundaries of Zone 35, nor any land or improvements owned by any governmental entity.
E. “Rancho Cordova Transit-Related Services Special Tax Area" means all the properties within the jurisdictional limits of the City of Rancho Cordova.
F. “Rancho Cordova Transit-Related Services Special Tax Area Zone 35 (the “Zone”) means that portion of the incorporated area of the City of Rancho Cordova located within the boundaries as shown on the map Exhibit A.
G. “Transit-Related Services” means providing, operating, maintaining and subsidizing transit services and all supporting facilities, infrastructure, programs and incentives that benefit the residents of the Rancho Cordova Transit-Related Services Special Tax Area, and shall be calculated and set according to the methodology described in Engineer’s Report County Service Area No. 10 and Benefit Zone No. 1 County of Sacramento, November 18, 2004, which established the methodology for the original service charge for Benefit Zone No. 1.
H. “Voter” means a person who owns real property within Zone 35, as shown on the last equalized assessment role prepared by the Sacramento County Assessor’s Office, at the time that the City Council adopts an ordinance authorizing the imposition of a transit- related services tax to the voters of Zone 35.
Section 3. Amount and Level of Taxes.
The tax per year on each parcel in the Zone shall not exceed the amount applicable to the parcel, as specified below.
ITEM 13.7. ATTACHMENT 1 Ordinance No. XX-2026 Page 3 of 5
A. For First Fiscal Year:
The tax per year for the first fiscal year (July 1, 2026 through June 30, 2027) shall be the amount of Tax per Parcel for a Land Use Code Category as set forth on Exhibit B hereto. The use code assigned to each parcel shall be reviewed and updated periodically.
Rates in Exhibit B shall be calculated and set according to the methodology described in Engineer’s Report County Service Area No. 10 and Benefit Zone No. 1 County of Sacramento, November 18, 2004, which established the methodology for the original service charge for Benefit Zone No. 1.
B. For Subsequent Fiscal Years:
In order to keep the tax on each parcel in constant first year dollars for each fiscal year subsequent to the first fiscal year, the tax per year shall be adjusted as set forth below to reflect any increase in the Consumer Price Index beyond the first fiscal year the tax is levied.
In June or July of each year, City Council shall determine the amount of taxes to be levied upon the parcels in Zone 35 for the then current fiscal year, as set forth below.
For each Land Use Category on Exhibit B, the tax per year on each parcel for each fiscal year subsequent to the first fiscal year shall be an amount determined as follows:
Tax Per Parcel
For then Current =
Fiscal Year
Tax Per Parcel
For Immediately
Preceding X
Fiscal Year
Consumer Price Index
from April of immediately
Preceding Fiscal Year to April of
then Current Fiscal Year
OR 6 percent, whichever is less
Provided, however, that in no event shall the tax per parcel for any fiscal year be less than the amount established for the first fiscal year.
C. Nature of Tax Levy.
The taxes levied on each parcel pursuant to this Article shall be a charge upon the parcel and shall be due and collectible as set forth in Section 4, below.
Section 4. Collection and Administration.
A. Taxes as Liens Against the Property.
The amount of taxes for each parcel each year shall constitute a lien on such property, in accordance with Revenue and Taxation Code Section 2187, and shall have the same effect as an ad valorem real property tax lien until fully paid.
B. Collection.
The taxes on each parcel shall be billed on the secured roll tax bills for ad valorem property taxes and are to be collected in the same manner in which Sacramento County collects secured roll ad valorem property taxes. Insofar as feasible and insofar as not inconsistent with this Ordinance, the times and procedures regarding exceptions, due dates,
ITEM 13.7. ATTACHMENT 1 Ordinance No. XX-2026 Page 4 of 5
installment payments, corrections, cancellations, refunds, late payments, penalties, liens, and collections for secured roll ad valorem property taxes (as established by Sacramento County) shall be applicable to the collection of this tax. Notwithstanding anything to the contrary in the foregoing, as to this tax:
1. The secured roll tax bills shall be the only notices required for this tax, and
2. The homeowners and veterans exemptions shall not be applicable because such exemptions are determined by dollar amount of value.
C. Costs of Administration by County.
The reasonable costs incurred by the County officers collecting and administering this tax shall be deducted from the collected taxes.
D. Use of Tax Revenue.
The revenue collected from the tax imposed by this ordinance shall be placed into a separate account and may be used only to fund transit-related services, including the costs of administering and collecting the tax and enforcing the provisions of this ordinance.
Revenue from the tax may be used for transit-related services citywide.
E. Refunds.
1. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city pursuant to this ordinance, it may be refunded as provided in this Section.
2. No refund may be made except upon a written claim verified by the person who paid the tax or by his or her guardian or conservator or the executor or administrator of his or her will or estate and stating the grounds upon which the claim is made. All claims filed pursuant to this subsection must be presented within one year after payment of the amount for which the claimant is seeking a refund.
3. No order of a refund may be made until a written claim therefor has been presented in accordance with this subsection. No suit for money, damages or a refund may be brought against the city until a written claim therefor has been presented to the City and has been acted upon or has been deemed rejected by the city, in accordance with this subsection. Only the person who filed the claim may bring such a suit, and if another person should do so, judgment shall not be rendered for the plaintiff.
F. Initiatives to Affect Tax.
Consistent with the California Constitution (art. XIIIC, § 3) the tax imposed by this ordinance may be affected by initiative. The procedures for qualification of such an initiative and the election on a qualified initiative shall be consistent with the California Constitution (art. 2, sec. 8), the California Elections Code (Chapter 3 of Division 9), and the Municipal Code. The minimum number of signatures necessary to qualify an initiative to affect the tax approved by this ordinance shall be equal to 5 percent of the votes in the city for all
ITEM 13.7. ATTACHMENT 1 Ordinance No. XX-2026 Page 5 of 5
candidates for Governor at the last gubernatorial election. The election on a qualified initiative to affect the tax shall be a regular citywide election. An initiative affecting the tax shall be approved only if at least two-thirds of the votes cast on the measure are in favor of its approval.
Section 5. Severability Clause.
If any article, section, subsection, sentence, phrase of clause of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion of this Ordinance. The voters of Zone 35 hereby declare that they would have adopted the remainder of this Ordinance, including each article, section, subsection, sentenced phrase or clause, irrespective of the invalidity of any other article, section, subsection, sentence, phrase or clause.
Section 6. Effective Date and Posting.
This Ordinance shall take effect immediately upon its approval by two-thirds of the voters voting within the Zone in an election to be held on February 19, 2026, so that taxes shall first be collected hereunder for the tax year beginning July 1, 2026.
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova this 5th day of January 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________
Garrett Gatewood, Mayor
ATTEST:
________
Stacy Leitner, CMC
City Clerk
Exhibit A
Legend
Annexation Boundary
Parcel Boundary
APN
072-0370-087
!
CITY OF RANCHO CORDOVA
TRANSIT RELATED SERVICES SPECIAL TAX AREA
ANNEXATION 35
BIG BALLER STORAGE RV PARK
ITEM 13.7.
ATTACHMENT 2
Exhibit A to the Ordinance
Amount of Tax per Parcel by Land Use Category
A. Residen
tial Dwelling Units
As adjusted
for inflation from the original base year, the amount of Tax per Parcel for fiscal year 2024- 2025 for Residential Land Use Categories shall be $ 87.54 per low density residential dwelling unit or low density residential dwelling unit equivalent, $70.02 per medium density residential dwelling unit or medium density residential dwelling unit equivalent, or $52.52 per high density residential dwelling unit or high density residential dwelling unit equivalent (Multi-family residential units on a single parcel shall be assessed on a proportionately equivalent basis (e.g., a two-unit attached housing structure, such as a duplex, would be deemed to consist of two residential parcels for purposes of the Transit- Related Services Special Tax).
B. Non -Residenti
al
As adjusted
for inflation from the original base year, the amount of Tax per Parcel for fiscal year 2024- 2025 for Non -Residential Land Use Categories (except Recreational and Agricultural) shall be $2,244.27 per retail and service commercial acre, $1,929.16 per Business Park acre, and $805.28 per light industrial acre.
C. Infla
tor Formula
The tax is s
ubject to an annual inflator formula based on the Consumer Price Index for all Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose Area, or six percent, whichever is less.
ITEM 13.7.
ATTACHMENT 3
Exhibit B to the Ordinance
MEMORANDUM
City Council Staff Report - Page 1 of 2
ITEM 14.1.
DATE: January 5, 2026
TO: Honorable Mayor and Council Members
FROM: Stefan Heisler, Housing Manager
SUBJECT: A RESOLUTION APPROVING THE ISSUANCE OF MULTIFAMILY
REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE
AUTHORITY IN SUPPORT OF AN AFFORDABLE 236 UNIT
MULTIFAMILY DEVELOPMENT PROJECT TO BE KNOWN AS
ASTERIA FLATS
RECOMMENDATION
Adopt the Resolution.
RESULT OF RECOMMENDED ACTION
Adoption of the Resolution would approve the issuance of multifamily housing revenue bonds for the Asteria Flats project in an amount not to exceed $50 million by the California Municipal Finance Authority (“CMFA”).
BACKGROUND
The City Council is being asked to conduct a public hearing pursuant to the federal Tax Equity and Fiscal Responsibility Act (“TEFRA”) and adopt a resolution which would approve the issuance of multifamily housing revenue bonds (the “Bonds”) by the California Municipal Finance Authority for the purpose of financing the construction of an affordable residential housing development to be located at the southeast corner of Sunrise Boulevard. and Chrysanthy Boulevard. in the City of Rancho Cordova (the “Project”). The purpose of the Resolution is to authorize the financing to meet a requirement of the Internal Revenue Code of 1986 (the “Code”).
The Code requires that the “applicable elected representatives” of the jurisdiction in which a project to be financed with “private activity bonds” is situated adopt a resolution approving the issuance of such “private activity bonds” after holding a public hearing which has been noticed in a newspaper of general circulation in such jurisdiction. The City Council is being asked to hold such public hearing which has been noticed as required by the Code. The proposed Resolution would act as the approval by the “applicable elected representatives” with respect to the proposed Project.
The adoption of this Resolution is one of the steps in the process of financing the proposed Project. The Project has secured a “private activity bond” allocation from the California Debt Limit Allocation Committee (“CDLAC”) and prior to the issuance of bonds, CMFA will need to
City Council Staff Report - Page 2 of 2
adopt a resolution which would approve the execution and delivery of certain bond documents that will reflect the terms of the Bonds.
CMFA is a joint powers authority formed to assist local governments, non-profit organizations, and businesses with the issuance of both taxable and tax-exempt debt, and would be the issuing agency for the proposed bonds under this approval. Because the City of Rancho Cordova is a non-charter member of CMFA, CMFA has the authority to serve as the issuer of the bonds for the Project. The city became a member of CMFA in 2007.
The Joint Exercise of Powers Agreement provides that CMFA is a public entity, separate and apart from each member executing such agreement. The debts, liabilities and obligations of CMFA do not constitute debts, liabilities or obligations of the members executing such agreement.
The Bonds to be issued by CMFA for the Project will be the sole responsibility of the Borrower, and the city will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City of Rancho Cordova or the State of California, but are to be paid for solely from funds provided by the Borrower.
FISCAL IMPACT AND FUNDING SOURCE
There is no fiscal impact for issuance of the Bonds. The Bonds would be tax-exempt private activity bonds for the purposes of the Internal Revenue Code and, as such, require the approval of the elected body of the governmental entity having jurisdiction over the area where the project to be financed is located. The city will not be under any obligation to repay the Bond indebtedness. This action does not create any additional debt.
As a non-charter member of CMFA, the Authority will share a portion of the administrative fees received for the Project with the City, estimated to be approximately $1,000 annually.
ATTACHMENT(S)
1. Resolution
ITEM 14.1. ATTACHMENT 1
Resolution No. XX-2026 Page 1 of 2
CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE
OF CALIFORNIA, APPROVING THE ISSUANCE BY THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY OF EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $50,000,000 FOR THE PURPOSE OF FINANCING OR
REFINANCING THE ACQUISITION AND CONSTRUCTION OF THE AFFORDABLE
MULTIFAMILY HOUSING PROJECT TO BE KNOWN AS ASTERIA FLATS AND CERTAIN
OTHER MATTERS RELATING THERETO
WHEREAS, Rancho Cordova Owner, LP or a partnership of which Lincoln Avenue Communities (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $50,000,000 in outstanding aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at the southeast corner of Sunrise Boulevard and Chrysanthy Boulevard, Rancho Cordova, California (the “Project”); and
WHEREAS, the Project is located within the City of Rancho Cordova (the "City"); and
WHEREAS, the City is a member of the Authority; and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City because the Project is located within the territorial limits of the City; and
WHEREAS, the City Council of the City of Rancho Cordova (the "City Council”) is the elected legislative body of the City and is the applicable elected representative under Section 147(f) of the Code; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; and
WHEREAS, the City Council understands that its actions in holding this public hearing and in approving this Resolution do not obligate the City in any manner for payment of the principal, interest, fees or any other costs associated with the issuance of the Bonds, and said City Council expressly conditions its approval of this Resolution on that understanding.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA as follows:
1. The City Council hereby approves the issuance of the Bonds by the Authority for the purposes of financing the Project. It is the purpose and intent of the City Council that this
ITEM 14.1. ATTACHMENT 1
Resolution No. XX-2026 Page 2 of 2
Resolution constitute approval of the issuance of the Bonds by the Authority for the purpose of Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located.
2. The officers of the City Council are hereby authorized and directed, jointly and severally, to do any and all things and execute and deliver any and all documents, certificates and other instruments which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this Resolution and the financing transaction approved hereby. Any actions heretofore taken by such officers are hereby ratified and approved.
3. The City Council expressly conditions its approval of this Resolution on its understanding that the City shall have no obligation whatsoever to pay any principal, interest, fees or any other costs associated with the Authority's issuance of the Loan for the financing of the Project.
4. This Resolution shall take effect from and after its passage and approval.
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 5th day of January 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Garrett Gatewood, Mayor
Stacy Leitner, CMC
City Clerk
MEMORANDUM
City Council Staff Report - Page 1 of 3
ITEM 15.1.
DATE: January 5, 2026
TO: Honorable Mayor and Council Members
FROM: Amanda Norton, Economic Development Director
SUBJECT: A RESOLUTION AUTHORIZING THE CITY MANAGER TO WAIVE
SPECIFIC CITY FEES FOR ALPHA ONE SPORTS AND
ENTERTAINMENT GROUP, LLC AND KOZPURE DEVELOPMENT,
LLC IN AN AMOUNT NOT TO EXCEED $940,000 TOWARD THE
DEVELOPMENT AND CONSTRUCTION OF A NEW ARENA AND
PLAZA TO BE LOCATED AT THE SOUTH EAST CORNER OF
TRADE CENTER BOULEVARD AND KILGORE ROAD IN THE CITY
OF RANCHO CORDOVA
RECOMMENDATION
Adopt the Resolution.
RESULT OF RECOMMENDED ACTION
Adoption of the Resolution would authorize the City Manager to waive specific city fees for Alpha One Sports and Entertainment Group, LLC and KozPure Development LLC toward the development and construction of a 7,500 seat arena and plaza, in an amount not to exceed nine hundred and forty thousand dollars ($940,000).
BACKGROUND
In September 2025, City Council received a presentation for an Economic Development Participation Agreement (EDPA) with Alpha One Sports and Entertainment Group, LLC and KozPure Development LLC (Developers). Staff sought to obtain direction on entering into an EDPA through a City Council Ad Hoc. The EDPA would serve as the beginning of negotiations for any city involvement in the sports arena anchored entertainment district. City Council approved the EDPA on September 23, 2025.
OVERVIEW
The Developers are proposing to develop and construct a sports arena anchored entertainment district located at the corner of Trade Center Drive and Kilgore Drive in Rancho Cordova (APNs: 072-0223-004-0000, 072-0223-003-0000,072-0223-001-0000, 072-0223-002-0000, and 072-0490-024-0000). The properties have never been developed. The proposed development would contain:
• A 7,500 seat arena
City Council Staff Report - Page 2 of 3
• At least two hotels, one would be a four-star hotel, with a minimum of 800 rooms between the hotels
• Retail and dining district
• Residential units, minimum 640 units
• Cardroom
• Structure and/or surface parking
• Plaza
There are various components of the EDPA where negotiation will begin, and a Development Agreement could be drafted and brought back before City Council for consideration. As that process begins, the EDPA in Section 4.3.B also indicated that the city could consider paying a portion or possibly all permit processing and building fees.
PROJECT
The purpose of this public hearing is the consideration of an economic development subsidy in the form of a waiver of specific city fees to support the Developers' development and construction of a new sports anchored arena entertainment district. The waiver of specific city fees would support the development and construction of the 7,500 seat arena and plaza on vacant land (APN: 072-0223-004-0000 and a portion of 072-0490-024-0000) located at the south east corner of Trade Center Drive and Kilgore Drive in Rancho Cordova.
The specific city fees to be waived would be those required for a Design Review application, CEQA consultant review, Civil Plan Review and Grading Permit, City Attorney fees to draft the Development Agreement and implement the EDPA, and Building Plan Review and Zone Check.
Generally, the city requires full cost recovery for the above fees from a developer. The estimate of fees required above would be Nine Hundred and Forty Thousand Dollars $940,000. As these fees are generally full cost recovery, the fee waiver would require City Council approval. The waiving of the fees would be to offset the cost of construction of a 7,500-seat arena and plaza.
The arena will anchor an entertainment district that will include hotels, residential units, a retail and dining district, a public plaza, and structured and surface parking. The Developers are estimating the total cost for the arena development and construction to be $175,000,000.
The public will benefit from the new sports anchored arena entertainment development, as the arena will provide the community with seventy (70) full-time jobs and three hundred (300) part- time jobs. The arena will also provide a venue for the community to attend live arena soccer, other sporting events, live concerts, entertainment, graduations and events. The plaza will be activated with outdoor events, live music festivals, and family-friendly and community center events. There is currently no other venue in the city to host large events.
It is estimated that the arena will generate, on average, $150,000 in sales tax revenue to the city per year from the sale of merchandise and concessions and $240,000 in property tax.
The arena will employ seventy (70) full-time and three hundred (300) part-time positions. During the construction of the arena three hundred and fifty (350) construction related jobs will comprise the following trades: laborers, carpenters, operators, masons, electricians, plumbers/pipefitters, sheet metal trades, electricians, roofers, glazers, sprinkler fitters, landscapers, architects, engineers, project management, surveyors, testing services, cleaning services, and administrative services.
City Council Staff Report - Page 3 of 3
REQUEST FOR CONSIDERATION
The Developers are requesting a waiver of specific city fees up to $940,000. The Developer has estimated that the construction costs for the arena and plaza to be $175,000,000. The waiver of specific city fees will begin on January 6, 2026 and end on July 1, 2031.
The EDPA and any waiving of specific city fees between the city and the Developer would not guarantee that the project will commence construction, and the city is not obligated to make any additional waivers of fees.
A new arena and plaza would bring new jobs, new revenue, and provide a venue for the community to attend live arena soccer, other sporting events, live concerts, entertainment, graduations and events. The plaza will be activated with outdoor events, live music festivals, and family-friendly and community center events. There is currently no other venue in the city to host large indoor events.
FISCAL IMPACT AND FUNDING SOURCE
The fee waivers and costs described above will be funded by the General Fund. The city will continue to monitor these fiscal impacts that may require a future budget amendment.
ATTACHMENT(S)
1. Resolution
2. Presentation
ITEM 15.1. ATTACHMENT 1
Resolution No. XX-2026 Page 1 of 2
CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE
OF CALIFORNIA, AUTHORIZING THE CITY MANAGER TO WAIVE SPECIFIC CITY FEES
FOR ALPHA ONE SPORTS AND ENTERTAINMENT GROUP, LLC AND KOZPURE DEVELOPMENT, LLC IN AN AMOUNT NOT TO EXCEED $940,000 TOWARD THE
DEVELOPMENT AND CONSTRUCTION OF A NEW ARENA AND PLAZA TO BE LOCATED
AT THE SOUTH EAST CORNER OF TRADE CENTER BOULEVARD AND KILGORE ROAD
IN THE CITY OF RANCHO CORDOVA
WHEREAS, City Council approved an Economic Development Participation Agreement (EDPA) with Alpha One Sports and Entertainment Group, LLC and KozPure Development, LLC on September 23, 2025; and
WHEREAS, the EDPA established a framework for good-faith negotiations regarding potential future city participation; and
WHEREAS, the EDPA in Section 4.3.B identified the potential waiver of certain city development-related fees as one form of assistance that the city could consider facilitating project feasibility and timely delivery of the arena and plaza; and
WHEREAS, the requested fee waiver is limited to specified city fees associated with design review, environmental review, civil plan review, grading permits, building plan review and zone checks, and City Attorney services related to implementation of the EDPA and a future Development Agreement, and does not include any direct cash subsidy or reimbursement to the Developers; and
WHEREAS, the estimated value of the requested fee waiver, not to exceed nine hundred and forty thousand dollars ($940,000), represents a small fraction of the overall project cost and is intended to offset early-stage development and construction costs that can present significant barriers to large-scale catalytic projects; and
WHEREAS, the waiver of specified City fees is intended to serve a legitimate public purpose by facilitating development that expands employment opportunities, enhances quality of life, strengthens the city’s tax base, and advances long-term economic development objectives; and
WHEREAS, the proposed development is expected to generate substantial public benefits, including approximately seventy (70) full-time jobs, three hundred (300) part-time jobs, and approximately three hundred fifty (350) construction-related jobs across a wide range of skilled trades and professional services; and
WHEREAS, the arena and associated uses are projected to generate ongoing fiscal benefits to the city, including estimated annual sales tax revenue of approximately One Hundred Fifty Thousand Dollars ($150,000) and annual property tax revenue of approximately two hundred forty thousand dollars ($240,000), in addition to indirect and induced economic activity; and
ITEM 15.1. ATTACHMENT 1
Resolution No. XX-2026 Page 2 of 2
WHEREAS, the proposed arena and plaza are intended to function as the anchor for a broader entertainment district and would provide Rancho Cordova with its first large-scale indoor event venue capable of hosting live arena soccer, other sporting events, live concerts, entertainment, graduations, and events. The plaza will be activated with outdoor events, live music festivals, and family friendly and community centered events; and
WHEREAS, the requested fee waiver would be effective from January 6, 2026 through July 1, 2031; and
WHEREAS, the City Council of the City of Rancho Cordova has conducted a properly noticed public hearing on January 5, 2026, pursuant to Government Code Section 53083 and has duly considered all written and verbal testimony presented during the hearing.
NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA hereby authorizes the City Manager to waive specific city fees for Alpha One Sports and Entertainment Group, LLC and KozPure Development, LLC in an amount not to exceed $940,000 for the development and construction of a new arena and plaza to be located at the southeast corner of Trade Center Drive and Kilgore Road in the City of Rancho Cordova.
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 5th day of January 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Garrett Gatewood, Mayor
Stacy Leitner, CMC
City Clerk
1 Economic Development
Subsidy
Incentive for Alpha One Sports and Entertainment
Group, LLC & KozPure Development LLC
CityOfRanchoCordova.org
ITEM 15.1.
ATTACHMENT 2
2 • Purpose
• Background
• Overview
• Project
• Economic Development Subsidy
• Request for Consideration
Agenda
ITEM 15.1.
ATTACHMENT 2
3 Conduct a public hearing on for an Economic Development Subsidy for potential waiver of specific city fees for Alpha One Sports and Entertainment Group, LLC and KozPure Development LLC.
Pursuant to Government Code Section 53083, local agencies must provide public notice and hearing for any expenditure of public funds or loss of revenue to a local agenda in the amount of $100,000 or more, for the purpose of stimulating economic development within the jurisdiction of a local agency.
Purpose
ITEM 15.1.
ATTACHMENT 2
4 • In September 2025, A City Council Ad Hoc was assembled. • An Economic Development Participation Agreement (EDPA) was drafted to e
stablish a framework for negotiations for a sports arena anchored entertainment district.
• September 2025, City Council received presentation on a proposed EDPA with A
lpha One Sports and Entertainment Group, LLC and KozPure Development, LLC.
• Council approved the EDPA on September 23, 2025.
• EDPA Section 4.3.B indicates that the city could consider paying a portion of po
ssibly all permitting processing and building fees.
Background
ITEM 15.1.
ATTACHMENT 2
5 The Developers are proposing to develop and
construct a sports arena anchored entertainment
district located at the corner of Trade Center Drive and Kilgore Drive. The proposed development would
contain:
• A 7,500-s
eat arena
• Plaza
• At least two hotels, one would be a four-s tar hotel, minimum of 800 rooms between the hotels
• Retail and dining district
• Residential units, minimum 640 units
• Cardroom
• Structure and/or surface parking
Overview
ITEM 15.1.
ATTACHMENT 2
6 The purpose of this public hearing is the consideration of an economic development subsidy in the form of a waiver of specific city fees to support the development and construction of a new 7,500-seat arena and plaza.
The specific city fees would be in the form of:
• Design Review application and CEQA consultant review, • Civil Plan Review and Grading Permit,
• City attorney fees to draft the Development Agreement and implement the EDPA, and • Building Plan Review and Zone Check fees.
T
he estimate of waiver of specific city fees: $940,000.
Project
ITEM 15.1.
ATTACHMENT 2
7 Project
The public will benefit as the arena will
provide a venue for the community to attend
live arena soccer, other sporting events, live
concerts, entertainment, graduations and
events. The plaza will be activated with
outdoor events, live music festivals, and
family friendly and community events.
Estimated annual tax generation:
• $150,000 s
ales tax
• $240,000 property tax
E
stimated jobs created for arena and plaza:
• 70 Full time
• 300 Part time
• 350 Temporary construction-r elated
ITEM 15.1.
ATTACHMENT 2
8 In compliance with Government Code Section 53083, the City of Rancho Cordova Economic Development Subsidy Public Hearing, contains the following information:
1. In receipt of the subsidy: 1. Alpha One Sports and Entertainment Group, LLC, and KozPure Development, LLC, 3195 Zinfandel Dr., Rancho Cordova, CA 95670
2. Start and end dates and schedule of subsidy: The waiver of specific city fees will begin on January 6, 2026, and end on July 1, 2031.
3. Description of the subsidy: The City will waive specific city fees in an amount not to exceed Nine Hundred and Forty Thousand Dollars ($940,000) to off-set the cost of construction for a 7,500-seat arena and plaza. The arena will anchor an entertainment district that will include hotels, residential units, a retail and dining district, public plaza, and structured and surface parking.
4. Public purpose and benefit: The public will benefit from the new sports anchored arena entertainment development, as the arena will provide the community with seventy (70) full time jobs and three hundred (300) part time jobs. The arena will also provide a venue for the community to attend live arena soccer, other sporting events, live concerts, entertainment, graduations and events. The plaza will be activated with outdoor events, live music festivals, and family friendly and community center events. There is currently no other venue in the city to host large events.
5. Net tax revenue: It is estimated that the arena will generate, on average, $150,000 in sales tax revenue to the city per year from the sale of merchandise and concessions and $240,000 in property tax.
6. Job creation: The arena will employ seventy (70) full time and three hundred (300) part time positions. During the construction of the arena three hundred and fifty (350) construction related jobs will comprise of the following trades: laborers, carpenters, operators, masons, electricians, plumbers/pipefitters, sheet metal trades, electricians, roofers, glazers, sprinkler fitters, landscapers, archi tects, engineers, project management, surveyors, testing services, cleaning services, and administrative services.
Economic Development Subsidy Public Hearing
ITEM 15.1.
ATTACHMENT 2
9 The Alpha One Sports and Entertainment Group, LLC and KozPure Development LLC are requesting a waiver of specific city fees up to $940,000.
The waiver of specific city fees will begin on January 6, 2026 and end on July 1, 2031.
City Council to hold a public hearing for an Economic Development Subsidy in compliance with Government Code Section 53083 and consider all written and public testimony.
For Council’s Consideration:
• Adopt a resolution approving the City Manager to waive specific city fees.
I
n accordance with Government Code Section 53083, if approved, the Economic Development Subsidy Report will be published on the City’s website.
Request for Consideration
ITEM 15.1.
ATTACHMENT 2
10 THANK YOU
CityOfRanchoCordova.org
ITEM 15.1.
ATTACHMENT 2
MEMORANDUM
City Council Staff Report - Page 1 of 2
ITEM 16.1.
DATE: January 5, 2026
TO: Honorable Mayor and Council Members
FROM: Maria Kniestedt, Communications and Public Affairs Director
SUBJECT: 2026 LEGISLATIVE UPDATE
RECOMMENDATION
Receive presentations by Covino Smith & Simon and Joe A. Gonsalves & Son regarding key 2025 legislation affecting the city, as well as staff update regarding 2026 legislative priorities and federal funding priorities. Receive consultant presentations and updates; provide direction and/or approval to staff on city's 2026 Legislative Priorities.
RESULT OF RECOMMENDED ACTION
Staff will proceed with recommended direction and approval to finalize the city's 2026 legislative program. This includes producing the annual legislative brochure, which Council and staff use for meetings with legislators and key agencies.
BACKGROUND
There are two elements to the 2026 Legislative Priorities update:
1. Federal Funding Requests
Annually, the city has an opportunity to submit applications for federal and/or state funding. If appropriations opportunities exist for 2026, applications will be submitted through the offices of our elected representatives or appropriate federal agency in Washington, D.C., or through the appropriate state-level process.
In keeping with recommended practices and citywide goals and priorities, staff is recommending the attached projects to the appropriate federal agencies and elected officials.
These projects have been vetted and further the city’s goals of sustaining and improving transportation and connectivity, as well as providing a community where residents live, work, and thrive.
Attachment 1 includes the recommended projects.
2. 2026 Legislative Advocacy Platform
Managing federal funding requests is just one part of the city’s legislative program. The
City Council Staff Report - Page 2 of 2
program, founded on a set of policy guidelines that were first approved by the Rancho Cordova City Council in 2007, also directs the city’s advocacy efforts to support or oppose legislation that significantly impacts the city, or to work with legislators through our advocacy partners on amendments.
Attachment 2 shows the city’s proposed 2026 Legislative Platform, with changes from the previous year highlighted.
FISCAL IMPACT AND FUNDING SOURCE
There is no fiscal impact.
ATTACHMENT(S)
1. 2026 Projects for Possible Federal Funding Opportunities
2. 2026 Legislative Advocacy Platform
3. Presentation
ITEM 16.1. ATTACHMENT 1
1 2026 Projects for Federal Funding Opportunities
Project Description
Rancho Cordova Parkway
Interchange
This project will construct a new interchange on US Highway 50 between Sunrise Boulevard and Hazel Avenue, and a six-lane road connecting south to White Rock Road. This project is part of a concerted, regional effort to improve overall mobility and spur economic development, including job creation and affordable housing.
The project accomplishes these goals by strengthening the connection between 65,000+ jobs in the City of Rancho Cordova and surrounding communities. The project has full environmental approval.
Total Project Cost: $182 million
Sunrise Boulevard -
Kiefer Boulevard to State
Route 16 (Jackson
Highway)
This project would widen Sunrise Boulevard from two at-capacity lanes to four lanes from Kiefer Boulevard to State Route 16 (Jackson Highway) and construct intersection improvements at Sunrise Boulevard and State Route 16. The project includes modifications to the bridge on Sunrise Boulevard, Laguna Creek and Folsom South Canal. This project will include raising a portion of Sunrise Boulevard above a local flood plain. When this section of Sunrise Boulevard floods, it cuts off a critical connection to the southeast county.
Total Project Cost: $38.8 million
Douglas Road, Sunrise
Blvd. to West City
Boundary
This project will widen Douglas Road from two to four lanes from Sunrise Boulevard to the west city boundary. The scope includes removing the existing bridge over the Folsom South Canal and replacing it with a six-lane bridge. This will be a complete streets project and will provide better access for bicycle and pedestrian mobility. This project will also provide relief to the congestion along Sunrise Boulevard.
Total Project Cost: $30 million
White Rock Road
Improvements, Macal
Drive to Eastern City
Limits
This project represents the final phase of the White Rock Road Safety and Congestion Relief parent project. This project is part of an innovative planning effort to alleviate regional congestion, improve roadway safety, nurture economic development, and promote the livability and quality of life in the greater Sacramento region. The proposed project will improve the final 2.0 miles of White Rock Road from Macal Drive to the City limits, provides parallel capacity and be a reliever route to U.S. Highway 50, replace the deteriorating segment of roadway, realign and widen the road from two to four travel lanes to add critically needed capacity.
Total Project Costs: $24 million
ITEM 16.1. ATTACHMENT 1
2 Mather Veterans Village
Homeless Housing
Development, Phase 5
This project will continue the City of Rancho Cordova’s successful model of housing homeless veterans by creating an additional 60 units of rental townhomes and apartments adjacent to the previous four phases of the Mather Veterans Village housing project (150 existing units and 70 units to be under construction). The city is partnering with Sacramento County, Mercy Housing and Nation’s Finest to bring an additional phase of new housing to provide for homeless and disabled veterans with larger units designed for veteran families.
Nationwide, California has the highest number of homeless veterans.
However, this number is decreasing in Sacramento County due to projects like the Mather Veterans Village, which is within walking distance of the regional VA Northern California Medical Center.
Total Project Cost: $40 million
Capital Southeast
Connector
The Capital Southeast Connector is a vital 34-mile connection between communities in the greater Sacramento region including the City of Rancho Cordova. The first phase within Rancho Cordova and Sacramento County’s shared jurisdiction includes realigning Grant Line Road generally from White Rock Road to Jackson Highway and adding a separated walking and cycling path. The regionally important project will provide critical emergency access routes, improve safety, foster economic growth, and connect communities through active modes of transportation. The project alignment is approximately seven miles long with proposed improvements valued at $100 million dollars.
Environmental is approved with construction expected to begin in 2026.
Total Project Cost: TBD
ITEM 16.1. ATTACHMENT 2
2026 Legislative Advocacy Platform
The Legislative Advocacy Platform is adopted annually to authorize the city’s active participation in the decision-making process for federal and state legislation and budget issues. It also guides city staff and the city’s advocacy partners in pursuing federal or state funding, and/or to act upon legislative issues.
Using the Legislative Advocacy Platform as a guide, the city will take positions on specific legislation and amendments. The mayor or appointed designee will sign legislative letters based on the city’s identified interests, and Council Members may be actively involved in advocacy efforts. The legislative programs of CalCities, the National League of Cities, and other organizations may also influence city activities when there are common interests.
Areas of support and opposition are stated broadly in most cases to provide the flexibility needed to respond in a timely manner and to serve as a guide to assist staff in identifying specific issues that are important to the city, as well as to determine interest in specific legislation. In addition, these priority areas will help Council Members, city staff and advocacy partners focus on key issues and funding areas when speaking to representatives.
In addition, the city will evaluate legislation and pursue funding to enhance the community based on specific policy areas, such as transportation and infrastructure, economic development, planning, public safety, and housing.
Generally, the city will evaluate legislation based on the following broad criteria:
▪ Protection of local revenues
▪ Protection/increase of local government discretion
▪ Protection/increase of funding for specific programs or services ▪ Support of key programmatic goals
▪ Prevention of unfunded mandates
▪ Consistency with existing city policy
▪ Direct impact upon the city and the region
Based on the above criteria, the following policy positions are recommended.
Artificial Intelligence (AI) and Cyber Security
Support:
• Legislation that supports the increasing need for cybersecurity and the responsible use of Artificial Intelligence.
• Legislation that designates and funds regional AI, robotics, and advanced manufacturing hubs, including testbeds, demonstration projects, and shared lab. • Legislation that provides grants, tax incentives, and technical assistance to help small and mid-sized businesses adopt AI, robotics, and automation. • Legislation that expands access to secure broadband and cloud infrastructure needed for AI, robotics, and data-intensive research.
• Federal and state efforts that invest in public-sector AI capacity, including funding for pilot projects, technical assistance, and modernized procurement tools. • Legislation that strengthens cybersecurity and data protection for AI, digital twin, and smart infrastructure systems.
ITEM 16.1. ATTACHMENT 2
• Legislation that supports privacy-preserving and secure data use, including clear standards for data governance, anonymization, and protections for sensitive resident and business information.
• Legislation that invests in cybersecurity and data-protection workforce development. • Legislation that supports the funding, development and deployment of digital twins for transportation, utilities, housing, climate resilience, and land-use planning. • Legislation that promotes interoperable, standards-based digital twin platforms, enabling cities, universities, and industry partners to securely share data, test scenarios, and de-risk major infrastructure and economic development investments.
Oppose:
• Any legislation that does not adhere to the principles above or includes unfunded mandates.
Brown Act/Elections Code/Political Reform Act/Public Records Act
Support:
• Legislation on administration of the Brown Act and the Public Records Act that provides additional opportunities to recover costs.
• Legislation that seeks to protect the City’s ability to obtain confidential advice from legal counsel on items such as anticipated and pending litigation and real estate acquisition. • Legislation that explores the use of virtual meeting technology to provide additional opportunities for meeting participation.
Oppose:
• Additional mandates in this policy area without full cost recovery. • Legislation that would invade the attorney-client privilege and upset the balance between the public's right to know the conduct of its business and a city's need for privileged conversations with legal counsel.
Economic Development
Support:
• Legislation, strategies, and policies that: attract, retain, and expand business; support job creation, retention, expansion, extended opportunity zones, and new redevelopment, and infill plans; maximize revenue opportunities; foster placemaking; support workforce development; and enhance community amenities.
• Legislation that promotes the state as an economically viable and strong destination for businesses to locate.
• Legislation that supports the CHIPS and Science Act.
Oppose:
• Legislation that, under the guise of environmental protection restricts its land use and authority. adversely impacts the ability of communities to attract and retain jobs.
ITEM 16.1. ATTACHMENT 2
• Legislation that deletes local government representation and participation on state and federal environmental regulatory bodies.
• Legislation that overburdens small business with costly and resource-intensive environmental regulations.
Education
Support:
• Legislation that promotes college access, affordability and success. • Legislation that supports training and education in the area of Artificial Intelligence (AI).
Environment
Support:
• Legislation that ensures local government representation and participation on state and federal environmental regulatory bodies.
• Legislation to standardize and streamline state and federal environmental regulations. • Legislation that provides the city with the flexibility to enact environmental standards that are stricter than state or federal standards, if the city chooses. • Legislation that increases funding or revenue sources for water quality and stormwater reuse projects.
Oppose:
• Legislation that, under the guise of environmental protection, restricts its land use authority. • Legislation that deletes local government representation and participation on state and federal environmental regulatory bodies.
Housing
Support:
• Legislation that provides needed resources and flexibility to local governments to produce housing that meets all socioeconomic needs and local demands. • Legislation that supports and facilitates affordable housing production of special needs populations (e.g., veterans, homeless, seniors)
• Measures that would provide local governments with greater flexibility in the housing element process.
• Legislation that provides or enhances needed federal and state incentives that help facilitate the production and preservation of affordable housing units including, but not limited to, housing bond funds and tax credits, project-based vouchers, and relief from prevailing wage requirements.
• Adequate and fair funding for the city and equitable distribution of housing dollars in the region.
ITEM 16.1. ATTACHMENT 2
Oppose:
• Legislation that eliminates opportunities for public review, project-level environmental review and restricts design review.
• Legislation that eliminates or weakens the low-income housing tax credit, the new markets tax credit, or Community Development Block Grants.
Local Control
Support:
• Legislation that enhances local control of resources and tools that allows the City Council to make decisions that address the needs of residents and businesses within the local jurisdiction they serve, as well as the broader interest of the region.
Oppose:
• Legislation that erodes local control, whether by state or federal legislation, or ballot propositions.
Mandates
Support:
• Legislation that encourages the use of state and federal incentives for local government action rather than mandates.
• Legislation to enhance local government’s ability to comply with state and federal mandates. • Measures to provide funding for federal and state mandates. • Measures to streamline the process by which local governments are reimbursed by the state for the cost of unfunded mandates.
• Future legislation that repeals previously unfunded mandates.
Oppose:
• Legislation that seeks to impose additional unfunded mandates on local governments that produce inequitable burdens and financial and other hardships. • Measures that would further delay reimbursement for unfunded mandates.
Planning
Support:
• Measures that seek to enhance the flexibility of local planning agencies to meet community needs, strengthen local land-use policies and provide community enhancement. • Legislation to resolve ambiguous or unworkable planning and environmental statutes so that local agencies have clear direction from the federal and state governments. • Legislation that provides technical and financial support for streamlining the Endangered Species Act and Clean Water Act permitting programs.
ITEM 16.1. ATTACHMENT 2
Oppose:
• Legislation to impose additional mandatory and arbitrary reviews by non-local agencies of local planning documents.
Public Safety
Support:
• Legislation and measures to enhance public safety by providing additional funding for local agencies in their efforts to safeguard the public, increase the quality of life, reduce or prevent crime, educate citizens, and build community partnerships. • Legislation that provides local law enforcement with additional tools to protect the public and prevent crime.
• Measures that establish task forces, which unite multiple public safety resources in an effort to combat criminal acts, which extend beyond the jurisdictional borders. • Legislation to assist local law enforcement in its role as “first responders” to natural and man-made disasters.
Oppose:
• Legislation that limits the public safety policy tools available to local governments to deal with local conditions.
• Measures to reduce subventions and grant programs for public safety. • Legislation that will limit or restrict public safety professionals from the efficient performance of their duties or that limits the law enforcement tools available to local public safety professionals.
• Legislation that provides local enforcement with additional tools to protect the public from substandard housing and dangerous structures.
Revenue Protection
Support:
• Measures that give local government greater stability and independence in the state-local fiscal relationship, including full, constitutional protection of all local government revenues. • Legislation that provides additional opportunities for local governments to be financially self- sufficient and oppose legislation that erodes the fiscal independence of local governments. • Legislation that will enhance the state’s fiscal stability and minimize the impact to local governments of state budget deficits.
Oppose:
• Legislation that would give the state or federal government greater control over local revenue sources or in any way reduces or diminishes City authority over local revenues. • Legislation that would result in the permanent loss of City revenues unless it is part of a broader local government revenue protection package.
• Legislation that further exacerbates the state’s long-term budget imbalance and further exposes local governments to the effects of state budget deficits.
ITEM 16.1. ATTACHMENT 2
Technology and Telecommunications
Support:
• Legislation that maintains local control over public rights-of-way; protects local revenues used for essential local services, including public safety; guarantees access to, and funding for, public, educational and government access television. • Legislation that ensures that the public is appropriately compensated by telecommunications providers that use the public’s rights-of-way.
• Legislation that supports the increasing need for cybersecurity and the responsible use of Artificial Intelligence. Moved to new AI section.
Oppose:
• Any legislation that does not adhere to the principles above or includes unfunded mandates.
Transportation and Infrastructure
Support:
• Additional funding for local transportation and other critical unmet infrastructure needs. • Adequate and fair funding for the city and equitable distribution of transportation dollars within the SACOG region.
Oppose:
• Legislation that would reduce the ability of growing communities to address transportation and infrastructure needs with adequate funding (from diversified sources) and with as much flexibility as possible.
• Legislation that would in any way unduly restrict the city’s ability to ensure that necessary public improvements are completed as part of new subdivisions.
1 2026 Legislative Update
Insights, Platform, Funding Priorities
ITEM 16.1.
ATTACHMENT 3
2 Presentations from our State and
Federal advocacy partners
• Action: Presentation/Discussion
L
egislative advocacy platform and
projects for possible federal funding
opportunities
• Action: Discussion/Approval
Tonight’s Discussion
ITEM 16.1.
ATTACHMENT 3
3 2025 Insights/2026 Look Ahead
• Presentation by Jason Gonsalves with Joe
A
. Gonsalves & Son, State Advocacy
Partner
• Presentation by Jen Covino Smith with
C
ovino Smith & Simon, Federal Advocacy
Partner
ITEM 16.1.
ATTACHMENT 3
4 • 2026 Legislative Platform Updates
o New section: AI & Cyber Security
• 2026 Federal Funding Requests
o Six Projects
o Updated Project Costs
2026 Legislative Priorities
ITEM 16.1.
ATTACHMENT 3
5 Legislative
Program
Update
Questions and Discussion
Motion/Vote to Approve
Platform
2026 Legislative Priorities
ITEM 16.1.
ATTACHMENT 3
MEMORANDUM
City Council Staff Report - Page 1 of 4
ITEM 16.2.
DATE: January 5, 2026
TO: Honorable Mayor and Council Members
FROM: Stefan Heisler, Housing Manager
SUBJECT: AUTHORIZATION TO EXECUTE DOCUMENTS FOR MATHER
VETERANS VILLAGE PHASE 4 PROJECT
RECOMMENDATION
Adopt the Resolutions.
RESULT OF RECOMMENDED ACTION
Adoption of the Resolution as shown in Attachment 1 would allow the City Manager to proceed with the execution of a Purchase and Sale Agreement and Affordable Housing Agreement with Mercy Housing California 122 LLC, a California limited liability company (Developer), for the approximately 2.0 acre parcel located at 3641 Bleckely Street, APN 067-0010-114-0000 (Property), for the amount of $10 for the Mather Veterans Village Phase 4 multifamily housing project for homeless and disabled veterans, and homeless families.
Adoption of the Resolution as shown in Attachment 2 would allow the City Manager or his designee to execute a Grant Subrecipient Agreement with Mercy Housing California to receive $1,000,000 in Community Project Fund (CPF) grant funds for the Mather Veterans Village Phase 4 project (Project).
BACKGROUND
The city has partnered with Mercy Housing California and Nation’s Finest/Veterans Housing Development Corporation (the Development Team) to develop the affordable housing project on the Parcel. The project is known as Mather Veterans Village Phase 4 and consists of a 70- unit multifamily residential apartment project for homeless and/or disabled veterans or homeless households (the Project). Sixty-nine (69) of the units will be rented at an affordable monthly rent to households earning up to 50 percent of area median income for a period of 55 years. One (1) unit will be an unrestricted manager’s unit. The project will also have a priority for serving seniors aged 62 and older. The project will be new construction, three stories, single-loaded, and elevator served. The unit mix includes 58 one-bedroom units and 12 two- bedroom units. The residential units will be arranged around a centrally landscaped courtyard.
An approximately 4,000 square foot community clubhouse, offices, and a shared patio will be located within the courtyard.
The Project has completed the entitlement phase, has received state funding, and is now ready to proceed to construction. A Conditional Use Permit and Airport Land Use Commission
City Council Staff Report - Page 2 of 4
overrule were approved by the City Council on July 1, 2024. Major Design Review for the Project was approved by the Planning Commission on December 11, 2024. A joint Homekey+ application funding application with Mercy Housing California was authorized by the City Council on March 3, 2025, and on September 25, 2025 an award was accepted. On December 10, 2025 the disposition of the Property for the Project was found to be consistent with the General Plan by the Planning Commission. The next step is to complete the land sale with the Developer to begin construction of the Project.
When the city acquired the parcel from Sacramento County (County) on June 27, 2024, the County required an affordable housing agreement to be recorded on the property limiting the use of the property for housing of homeless and disabled veterans and homeless families. That agreement with the County will now be terminated in favor of executing a new affordable housing agreement between the city and the Developer containing substantially the same terms and conditions as the previous affordable housing agreement between the city and County.
City staff recommend the adoption of two resolutions to further the project. The first Resolution (Attachment 1) would authorize execution of a Purchase and Sale Agreement and an Affordable Housing Agreement with the Developer that will allow the Developer to complete the purchase of the property from the city. The land disposition transaction will co-occur with the start of construction of the Project, anticipated for February 2026.
COMMUNITY PROJECT FUND GRANT
In the Consolidated Appropriations Act, 2024 (Public Law 118-42) (the FY2024 Act), and the Further Consolidated Appropriations Act, 2024 (Public Law 118-47) (the Further FY2024 Act) Congress made $3,290,054,336 in funding available for the Community Project Fund (CPF). On March 16, 2023 city staff submitted an application for FY 24 CPF to Congressman Ami Bera for $1,000,000 to assist with the hard construction costs of the Mather Veterans Village Phase 4 project.
On August 24, 2024 the city received an award letter from the Department of Housing and Urban Development (HUD) confirming that $1,000,000 had been awarded to the city for the Project. Before executing a Grant Agreement the city completed National Environmental Protection Act (NEPA) review and clearance. On October 6, 2025 the City Council provided authorization to accept the award and execute a CPF Funding Agreement, which has been executed. Adoption of a subsequent Resolution (Attachment 2) would authorize execution of a grant subrecipient agreement to commit the funds to Mercy Housing California for the Project.
The $1,000,000 grant will be used to pay for a portion of the vertical construction costs of the Project. The city will have until August 31, 2032 to spend this funding. The Project is expected to begin construction in February 2026 and begin occupancy in fall 2027.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (Section 21000, et. seq. of the California Public Resources Code, hereafter 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.” The sale of surplus government property is a project as defined by CEQA. Pursuant to CEQA Guidelines Section 15312 (Categorical Exemption Class 12, Surplus Government Property Sales) sales of surplus government
City Council Staff Report - Page 3 of 4
property is exempt, except for parcels of land located in an area of statewide, regional, or areawide concern identified by CEQA Guidelines Section 15206(b)(4). The Property is not located in an area of statewide, regional, or areawide concern, and therefore the activity is not subject to CEQA pursuant to CEQA Guidelines Section 15312.
The commitment of funding to construct affordable housing is similarly a project as defined by CEQA. As described below, the Project meets the exemption requirements for CEQA Guidelines Section 15332, In-Fill Development Projects, Section 15183 Projects “Consistent with the Community Plan, General Plan or Zoning”, Section 15194 Affordable Housing Exemption, and AB 1449 (Chapter 761. Statutes of 2023) Public Resources Code (PRC) Section 21080.40 Affordable Housing statutory exemption and is therefore not subject to further environmental review.
Pursuant to CEQA Guidelines Section 15332 (Categorical Exemption Class 32, In-Fill Development Projects) projects meeting specified conditions are exempt from the provisions of CEQA. Pursuant to this section none of the circumstances described in Public Resources Code Section 21166 and State CEQA Guidelines Section 15162 have occurred: the proposed Project does not represent a substantial change in the original Mather Field Specific Plan project and no major revisions to the previous Mather Field Specific Plan Environmental Impact Report (“EIR), adopted February 1997, are required; the Mather Field Specific Plan EIR adequately analyzed the potential impacts of developing the project site as proposed; therefore, no further environmental review is required; the multi-family buildings are Categorically Exempt under Section 15332, In-Fill Development, of the California Environmental Quality Act Guidelines.
The Project has been analyzed and is exempt per CEQA Guidelines Section 15183 “Projects Consistent with a Community Plan, General Plan or Zoning.” The proposed multifamily residential project is a conditionally permitted use consistent with the development densities established by the city’s General Plan and zoning for which an EIR was certified (June 2006).
None of the exceptions identified in CEQA Guidelines Section 15300.2 apply to the Project.
The Project (a) meets the threshold criteria set forth in section 15192. The Project will (b) not be on a site more than five acres in area; (c) meet location requirements relating to population density and site-specific location requirements on previously developed land as an urban use adjacent to other current developed urban uses; and (d) meet requirements regarding provision of affordable housing, the Project includes fewer than 100 units and the units will remain affordable for longer than 30 years. Therefore, the Project is exempt per CEQA Guidelines Section 15194 Affordable Housing Exemption.
The Project will consist of multifamily residential uses only, be dedicated to lower-income households, is within the city boundaries of the City of Rancho Cordova, and is on a parcel surrounded by urban uses. Furthermore the Project can be adequately served by existing utilities, complies with the limitations on location found in Government Code 65913.4(a)(6)(B-K), does not contain tribal cultural resources, a Phase 1 environmental assessment has been completed and has determined that there is no potential for exposure of future occupants to significant health hazards, is not located on a site where multifamily housing is not permitted, is not located within 500 feet of a freeway or within 3,200 feet of a facility that actively extracts or refines oil or natural gas, and is not within a very high fire hazard severity zone. The Project is exempt pursuant to the AB 1449 (Chapter 761. Statues of 2023) Public Resources Code Section 21080.40 Affordable Housing statutory exemption.
Receiving CPF funds also triggers National Environmental Review Act (NEPA) for the project.
City Council Staff Report - Page 4 of 4
An Environmental Assessment has been prepared and the city has determined that the project will have no significant impact on the human environment. Therefore, an Environmental Impact Statement under the National Environmental Policy Act of 1969 (NEPA) is not required.
Authority to Use Grant Funds was received from HUD on May 19, 2025.
SURPLUS LAND ACT
California Government Code Sections 54220-54234 require jurisdictions to notify the California Department of Housing and Community Development (HCD) when they intend to dispose of publicly owned land and follow the Surplus Land Act (SLA) process for such dispositions if the property is not declared exempt. The city intends to use the entire property for affordable housing to very low income homeless and disabled veterans or homeless families. The property will be restricted to households earning 50% of the area median income or less for a term of fifty-five (55) years. Therefore, this use qualifies the city’s disposition of the Parcel to Mercy Housing California for the SLA Guidelines Section 103(c)(2) Exempt Surplus Land for Affordable Housing. Per the SLA Guidelines Section 400(e), the city submitted a resolution declaring the property exempt surplus land to HCD for review and confirmation. HCD provided confirmation on March 10, 2025 that the disposition qualifies as “exempt surplus land” under Government Code section 54221, subdivision (f)(1)(A).
FISCAL IMPACT AND FUNDING SOURCE
The sale price for the land is $10. Escrow closing costs are an estimated $1,000. There is minimal fiscal impact for the CPF administration, limited to a small amount of staff time to administer the grant funding.
ATTACHMENT(S)
1. Resolution - Authorizing a Purchase and Sale Agreement and Affordable Housing Agreement
2. Resolution - Authorizing a Community Project Funding Grant Subrecipient Agreement
3. Purchase and Sale Agreement
4. Affordable Housing Agreement
5. Community Project Fund Grant Subrecipient Agreement
6. Presentation
ITEM 16.2. ATTACHMENT 1
Resolution No. XX-2026 Page 1 of 3
CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE
OF CALIFORNIA, AUTHORIZING THE EXECUTION OF A PURCHASE AND SALE
AGREEMENT AND AN AFFORDABLE HOUSING AGREEMENT WITH MERCY HOSUING CALIFORNIA 122 LLC FOR THE PROPERTY AT 3641 BLECKELY STREET, APN 067-0010- 114-0000 FOR THE MATHER VETERANS VILLAGE PHASE 4 MULTIFAMILY HOUSING
PROJECT FOR HOMELESS VETERANS
WHEREAS, the City of Rancho Cordova (the “City”) is the owner of the approximately
2.0 acre property on the former Mather Air Force base at 3641 Bleckely St, APN 067-0010-114- 0000 (the “Property”), located adjacent to the existing three completed phases of the Mather Veterans Village, and is willing to sell the Property, and Mercy Housing California 122 LLC (“Developer”) desires to acquire the Property for a fourth phase of the Mather Veterans Village; and
WHEREAS, the Property provides opportunity to expand the Mather Veterans Village, and the City has partnered with the Developer, to construct a housing project, Mather Veterans Village Phase 4, which will include sixty nine (69) units of multifamily rental apartments for very low-income homeless and disabled veterans and homeless families, one (1) unrestricted manager’s unit, and resident community space (the “Project”); and
WHEREAS, in consideration of City conveying the Property to the Developer, Developer shall construct, or cause to be constructed, housing units specifically designated for homeless and/or disabled veteran households and homeless families, and the City, Developer, and Sacramento County, wish to execute and record documents concurrently with this sale, specific provisions to allow Mercy Housing California and its affiliates to develop and operate the Property for the Project for a period of fifty-five (55) years, and that the construction of homeless and/or disabled veterans and homeless housing is a valid public purpose of need within the city; and
WHEREAS, the Developer has received sufficient funding to construct and operate the Project including American Rescue Plan Act (“ARPA”), Community Project Funding (“CPF”), and Homekey+; and
WHEREAS, the City will sell the Property to the Developer for a purchase price of Ten Dollars ($10.00); and
WHEREAS, the Planning Commission found on December 10, 2025 that the sale of the Property to the Developer for the Project is consistent with the Rancho Cordova General Plan; and
WHEREAS, the Surplus Land Act, Government Code Section 54220, et seq., as amended by Assembly Bill 1486 effective January 1, 2020, provides that local public agencies must determine whether land owned by the public agency is “surplus land” or “exempt surplus land,” and must send notices of the availability of surplus land to specified parties prior to the conveyance of such land; and
ITEM 16.2. ATTACHMENT 1
Resolution No. XX-2026 Page 2 of 3
WHEREAS, Section 103(c)(2) of the Surplus Land Act provides that “exempt surplus land” includes City-owned surplus land transferred for the development of affordable housing meeting the requirements of Government Code Section 37364; and
WHEREAS, the Surplus Land Act Guidelines provide that a local agency which determines that property is exempt from the Surplus Land Act shall support such a determination with written findings and shall provide a copy of the written determination to the California Department of Housing and Community Development (“HCD”); and
WHEREAS, on March 10, 2025 HCD found that the Property qualifies as “exempt surplus land” under Government Code section 54221, subdivision (f)(1)(A); and
WHEREAS, the Property is surplus government property not located in an area of statewide, regional, or areawide concern identified by California Environmental Quality Act (CEQA) Guidelines Section 15206(b)(4), and therefore the sale of the Property is categorically exempt from further CEQA review pursuant to Title 14 of the California Code of Regulations, Chapter 3, Division 6 (State CEQA Guidelines) Section 15312 (Categorical Exemption Class 12, Surplus Government Property Sales).
NOW, THEREFORE, BE IT RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA hereby:
1. Authorizes the City Manager, or his designee, to execute a Purchase and Sale Agreement for the sale of the Property at a sale price of $10, and an Affordable Housing Agreement, with the Developer, which agreements shall be in a form approved by the City Attorney.
2. Finds that the Property at APN 067-0010-114-0000, to be sold to the Developer, meets the requirements of California Government Code 37364 where not less than eighty percent of the Property will be used for affordable housing, more than forty percent of the units will be restricted to very low income households, and the units will be restricted by a regulatory agreement for not less than thirty (30) years, and therefore within the meaning of Section 103(c)(2) of the Surplus Land Act, the Property is exempt surplus land.
3. Directs the City Manager or his designee to transmit a copy of this Resolution to the California Department of Housing and Community Development, and to transmit such further documents as are necessary for the Department’s review of compliance of this transaction with the requirements of the Surplus Land Act.
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova this 5 th day of January 2026, by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
ITEM 16.2. ATTACHMENT 1
Resolution No. XX-2026 Page 3 of 3
___________________________
Garrett Gatewood, Mayor
ATTEST:
______________________________
Stacy Leitner, CMC
City Clerk
ITEM 16.2. ATTACHMENT 2
Resolution No. XX-2026 Page 1 of 2
CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE
OF CALIFORNIA, AUTHORIZING EXECUTION OF A COMMUNITY PROJECT FUNDING
GRANT SUBRECIPIENT AGREEMENT WITH MERCY HOUSING CALIFORNIA IN THE AMOUNT OF $1,000,000 FOR THE MATHER VETERANS VILLAGE PHASE 4 PROJECT
WHEREAS, in the Consolidated Appropriations Act, 2024 (Public Law 118-42) (the FY2024 Act), and the Further Consolidated Appropriations Act, 2024 (Public Law 118-47) (the Further FY2024 Act) Congress made $3,290,054,336 in funding available for Community Project Funding (“CPF”); and
WHEREAS, in March 2023 the City of Rancho Cordova applied for a CPF grant in the amount of $1,000,000 to support the construction of the Mather Veterans Village Phase 4 project (“Project”); and
WHEREAS, in August 2024 Congress approved and the United States Department of Housing and Urban Development (“HUD”) awarded the City of Rancho Cordova the full $1,000,000 requested; and
WHEREAS, the city completed National Environmental Protection Act (“NEPA”) review and received the federal Authority to Use Grant Funds on May 19, 2025; and
WHEREAS, the City Council provided authorization to execute a Fiscal Year 2024 Community Project Funding Grant Agreement with HUD to accept and receive CPF funding for the Project on October 6, 2025, and that agreement has been executed; and
WHEREAS, the City Council of the City of Rancho Cordova desires to enter into a grant subrecipient agreement with Mercy Housing California for $1,000,000 to use the CPF grant for the Project.
NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA does authorize the City Manager or his designee to execute a Mather Veterans Village Grant Subrecipient Agreement with Mercy Housing California in an amount not to exceed $1,000,000 and in a form approved by the City Attorney, to use CPF funding for the Mather Veterans Village Phase 4 project.
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 5th day of January 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ITEM 16.2. ATTACHMENT 2
Resolution No. XX-2026 Page 2 of 2
____________________________
Garrett Gatewood, Mayor
ATTEST:
Stacy Leitner, CMC
City Clerk
ITEM 16.2. ATTACHMENT 3
PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (this “Agreement”) is entered into as of [MONTH] ___, 2026 (the “Effective Date”) by and between the City of Rancho Cordova, a California municipal corporation (“City”) and Mercy Housing California 122 LLC, a California limited liability company(the “Buyer” or “Mercy”). City and Buyer are each referred to as a “Party” and collectively referred to herein as the “Parties.”
RECITALS
A. City owns fee title to that certain real property located in the City of Rancho Cordova, California, APN 067-0010-114-0000 as more particularly described in Exhibit A attached to this Agreement (“Property"). The Property is located adjacent the Mather Veterans Village project which has been developed by Buyer and its affiliates.
B. City and the County of Sacramento ("County") have executed, among other things, an Affordable Housing Agreement, and Quitclaim Deed (collectively, the "City- County Documents") to the Property which, in relevant part, requires the Property to be used for affordable rental housing units for very low income disabled and/or homeless veteran households or homeless families for a period of fifty-five (55) years and any sale of the Property to be approved by the County.
C. The Parties, along with the County, wish to execute and record amended City-County Documents concurrently with this Agreement, including specific provisions to allow Mercy to develop and operate the Property for affordable rental housing units for very low income disabled and/or homeless veteran households or homeless families for a period of fifty- five (55) years.
D. Buyer proposes to construct an affordable housing project on the Property consisting of approximately 70 affordable rental housing units for very low income disabled and/or homeless veteran households or homeless families, and related improvements (the "Project").
E. On June 17, 2024, the City declared the Property “exempt surplus land” as defined in Section 103(c)(2) of the Surplus Land Act Guidelines, and in accordance with Government Code Sections 54221(f)(1)(A), and 37364.
F. On July 1, 2024, the Parties executed an Option Agreement to provide the Buyer an exclusive right and option to purchase the Property from City, which the Buyer exercised.
G. The Parties have been awarded California Department of Housing & Community Development (“HCD”) funding known as Homekey+ for construction of the Project, which requires the recording of a “HCD Homekey+ Regulatory Agreement” concurrently with this Agreement.
ITEM 16.2. ATTACHMENT 3
H. In addition to the Homekey+ grant, the Project will be funded through the following sources: Community Project Funding (CPF) grant, City Predevelopment Loan Agreement, among other sources.
I. Prior to Closing (defined below) on the Property, the City and the Buyer will enter, or have entered, into an Affordable Housing Agreement, HCD Homekey+ Regulatory Agreement, ARPA Subrecipient Agreement, PHLA Loan Agreement and deed of trust, and Grant Subrecipient Agreement. These shall be collectively referred to as the “City-Mercy Agreements”.
J. City desires to sell the Property to Buyer, and Buyer desires to purchase the property from City in accordance with the terms of this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged by the Parties, City and Buyer hereby agree as follows:
1. INCORPORATION OF RECITALS AND EXHIBITS. The Recitals set forth above and the Exhibits attached to this Agreement are each incorporated into the body of this Agreement as if set forth in full.
2. PURCHASE AND SALE.
2.1 Agreement to Buy and Sell. Subject to the terms and conditions set forth herein, City agrees to sell the Property to Buyer, and Buyer hereby agrees to acquire the Property from City.
2.2 Purchase Price. The purchase price to be paid by Buyer to City for the Property is Ten Dollars ($10.00) (the “Purchase Price”).
2.3 Payment of Purchase Price. The Purchase Price will be paid in immediately available funds to City from Buyer upon the Opening of Escrow (defined in Section 3 below).
3. ESCROW.
3.1 Escrow Account. City has opened an escrow account (the “Escrow”) maintained by Fidelity National Title Company as Escrow No. ______________, located at 8525 Madison Ave., Suite 110, Fair Oaks, CA 95628, Attn: Paul Avila (the “Escrow Holder”).
Escrow Holder shall perform all escrow and title services in connection with this Agreement.
3.2 Opening of Escrow. Within five (5) business days after the Effective Date, the Parties will deposit into Escrow the fully executed Agreement, or executed counterparts thereto. The date such fully executed Agreement is received by Escrow Holder will be deemed the “Opening of Escrow.”
ITEM 16.2. ATTACHMENT 3
3.3 Buyer’s Deposit. Upon Opening of Escrow, the Buyer shall deposit the Purchase Price into Escrow (the “Deposit”). The Deposit is non-refundable after the Due Diligence Contingency Period has expired but applicable to the Purchase Price at Closing. In the event Buyer does not approve Due Diligence on or before the expiration of the Due Diligence Contingency Period, Buyer’s deposit shall be immediately returned to Buyer and this Agreement shall terminate.
4. DUE DILIGENCE AND PROPERTY DISCLOSURE REQUIREMENTS.
4.1 Condition of Title/Preliminary Title Report. City shall cause the Escrow Holder to deliver to Buyer a Preliminary Title Report for the Property (the “Preliminary Report”) within twenty (20) days after the Effective Date. Buyer shall have thirty (30) days after receipt of the Preliminary Report to approve the Preliminary Report. If there are any changes to the Preliminary Report between the time of Buyer’s approval of the Preliminary Report and the Closing, Buyer shall have fifteen (15) days after receipt of the revised Preliminary Report to approve such changes. If Buyer fails to notify City in writing of its approval of the Preliminary Report on or before thirty (30) days of receipt, or fifteen (15) days after receipt of the revised Preliminary Report, it will be conclusively presumed that Buyer has approved the Preliminary Report. Buyer agrees to take title to the Property subject to the following “Permitted Exceptions”: (a) standard printed exceptions in the Preliminary Report, (b) general and special real property taxes and assessments constituting a lien not yet due and payable, and (c) any other title exceptions expressly approved by Buyer.
4.2 Due Diligence Contingency Period. Buyer will have sixty (60) days from the Effective Date (the “Due Diligence Contingency Period”) to complete physical inspections of the Property and due diligence related to the purchase of the Property. Buyer warrants that prior to the Effective Date, City has provided copies of all reasonably available and known documents relating to the ownership and operation of the Property, including but not limited to agreements, plans, permits and reports (environmental, structural, mechanical, engineering and land surveys) that City has in its possession. All physical inspections must be coordinated with City’s representative. Buyer hereby agrees to indemnify and hold City harmless for any damage to the Property caused (but not merely revealed) by Buyer’s inspections.
4.3 Satisfaction of Due Diligence Contingency. Buyer may only terminate this Agreement prior to the expiration of the Due Diligence Contingency Period, and receive a refund of Buyer’s Deposit, if Buyer finds the Project cannot be completed due to the condition of the Property, which condition was not previously disclosed to Buyer pursuant to this Agreement or otherwise. Buyer hereby agrees to provide written notice to City prior to the expiration of the Due Diligence Contingency Period if Buyer disapproves any due diligence items. Upon provision of such notice to City, this Agreement will terminate, and all amounts deposited by Buyer into escrow, together with interest thereon, if any, will be returned to Buyer, and neither Party will have any further rights or obligations hereunder except those which expressly survive the termination of this Agreement. If Buyer fails to notify City in writing of its approval of its due diligence on or before the expiration of the Due Diligence Contingency Period, it will be conclusively presumed that Buyer has approved due diligence.
ITEM 16.2. ATTACHMENT 3
4.4 Environmental and Natural Hazards Disclosure. California Health and Safety Code Section 78700 (formerly 25359.7) requires owners of non-residential real property who know, or have reasonable cause to believe, that any release of hazardous substances is located or has come to be located on or beneath the real property to provide written notice of same to the buyer of real property prior to the sale. Other applicable laws require City to provide certain disclosures regarding natural hazards affecting the Property. City agrees to make all necessary disclosures required by law.
5. CLOSING AND PAYMENT OF PURCHASE PRICE.
5.1 Closing. The closing (the “Closing” or “Close of Escrow”) will occur no later than ninety (90) days from the expiration of the Due Diligence Contingency Period (“Closing Date”) or such other date that the Parties agree in writing, or as otherwise provided for in this Agreement.
5.2 Buyer’s Conditions to Closing. Buyer's obligation to purchase the Property is subject to the satisfaction of all of the following conditions or Buyer's written waiver thereof (in Buyer’s sole discretion) on or before the Closing Date:
a. City has performed all obligations to be performed by City pursuant to this Agreement.
b. City's representations and warranties herein are true and correct in all material respects as of the Closing Date.
c. The Title Company shall be irrevocably committed to issue an CLTA Title Policy, together with any title insurance endorsements requested by Buyer, effective as of the Closing, insuring title to Buyer in the full amount of the appraised price subject only to the Permitted Exceptions.
5.3 City’s Conditions to Closing. The Close of Escrow and City's obligation to sell and convey the Property to Buyer are subject to the satisfaction of the following conditions or City's written waiver (in City’s sole discretion) of such conditions on or before the Closing Date:
a. Buyer has performed all obligations to be performed by Buyer pursuant to this Agreement before the Closing Date.
b. Buyer's representations and warranties set forth herein are true and correct in all material respects as of the Closing Date. c. Buyer shall have deposited into Escrow the Quitclaim Deed, the Non-Foreign Affidavits, and all other City-Mercy Agreements duly executed by the Parties.
ITEM 16.2. ATTACHMENT 3
d. Buyer shall have submitted to City evidence of the insurance policies required pursuant to this Agreement or City-Mercy Agreements. e. City is satisfied with Buyer’s progress and ability to complete the Project.
5.4 Conveyance of Title. City will deliver marketable fee simple title to Buyer at the Closing, subject only to the Permitted Exceptions. The Property will be conveyed by City to Buyer in an “as is” condition, with no warranty, express or implied, by City as to the physical condition including, but not limited to, the soil, its geology, or the presence of known or unknown faults or hazardous materials or hazardous waste (as defined by state and federal law); provided, however, that the foregoing shall not relieve City from disclosure of any such conditions of which City has actual knowledge.
5.5 Deposits into Escrow.
a. Deliveries by City. City shall deposit into the Escrow for delivery to Buyer at Closing: (i) City’s escrow fees, recording fees and Closing Costs (defined below) and the cost of the Title Policy; and (ii) an affidavit or qualifying statement which satisfies the requirements of paragraph 1445 of the Internal Revenue Code of 1986, as amended, any regulations thereunder (the “Non-Foreign Affidavit”).
b. Deliveries by Buyer. No less than one (1) business day prior to the Close of Escrow, Buyer shall deposit into escrow immediately available funds in the amount, which together with the Deposit plus interest thereon, if any, is equal to: (i) Buyer’s escrow fees, recording fees and Closing Costs (defined below); (ii) the duly executed City-Mercy Agreements.
c. Closing. Upon Closing, Escrow Holder shall: (i) record the Quitclaim deed; (ii) record the applicable City-Mercy Agreements; (iii) disburse to City the Purchase Price; (iv) deliver to Buyer the Non-Foreign Affidavit, and to City a copy of the recorded Quitclaim deed; (v) pay any commissions and other expenses payable through escrow; and (vi) distribute to itself the payment of escrow fees and expenses required hereunder. d. Closing Costs. All documentary transfer tax and conveyance taxes and recording charges shall be borne by City. The cost of a CLTA owner's title policy shall be borne by the City. All other expenses, fees or costs (except for attorneys' fees and costs) incurred in Close of Escrow for the Agreement shall be divided equally and paid by the City and Buyer.
Each party shall bear its own attorneys' fees and costs.(collectively, the “Closing Costs”). Buyer will pay all Broker Fees, if any.
6. REPRESENTATIONS, WARRANTIES AND COVENANTS.
6.1 City’s Representations, Warranties and Covenants. In addition to the representations, warranties and covenants of City contained in other sections of this Agreement, City hereby represents, warrants and covenants to Buyer that the statements below in this Section
6.1 are each true and correct as of the Closing Date provided however, if to City’s actual
ITEM 16.2. ATTACHMENT 3
knowledge any such statement becomes untrue prior to Closing, City will notify Buyer in writing and Buyer will have three (3) business days thereafter to determine if Buyer wishes to proceed with Closing.
a. Authority. City is a municipal corporation, lawfully formed, in existence and in good standing under the laws of the State of California. City has the full right, capacity, power and authority to enter into and carry out the terms of this Agreement. This Agreement has been duly executed by City, and upon delivery to and execution by Buyer is a valid and binding agreement of City.
b. Encumbrances. City has not alienated, encumbered, transferred, mortgaged, assigned, pledged, or otherwise conveyed its interest in the Property or any portion thereof, nor entered into any Agreement to do so, and there are no liens, encumbrances, mortgages, covenants, conditions, reservations, restrictions, easements or other matters affecting the Property, except as disclosed in the Preliminary Report. City will not, directly or indirectly, alienate, encumber, transfer, mortgage, assign, pledge, or otherwise convey its interest prior to the Close of Escrow, as long as this Agreement is in force.
The truth and accuracy of each of the representations and warranties, and the performance of all covenants of City contained in this Agreement are conditions precedent to Buyer’s obligation to proceed with the Closing hereunder. The foregoing representations and warranties shall survive Close of Escrow or the expiration or termination of this Agreement and shall not be deemed merged into the deed upon closing.
6.2 Buyer’s Representations, Warranties and Covenants. In addition to the representations, warranties and covenants of Buyer contained in other sections of this Agreement, Buyer hereby represents, warrants and covenants to City that the statements below in this Section 6.2 are each true as of the Effective Date, and, if to Buyer’s actual knowledge any such statement becomes untrue prior to Closing, Buyer shall so notify City in writing and City shall have at least three (3) business days thereafter to determine if City wishes to proceed with Closing.
a. Buyer have the full right, capacity, power and authority to enter into and carry out the terms of this Agreement. This Agreement has been duly executed by Buyer, and upon delivery to and execution by City shall be a valid and binding agreement of Buyer.
b. Buyer is not bankrupt or insolvent under any applicable federal or state standard, has not filed for protection or relief under any applicable bankruptcy or creditor protection statute, and has not been threatened by creditors with an involuntary application of any applicable bankruptcy or creditor protection statute. c. No litigation or other administrative or judicial proceeding that would materially affect Buyer’s ability to carry out its obligations with respect to the Project or would prevent the Project shall have been filed or be pending.
The truth and accuracy of each of the representations and warranties, and the performance of all covenants of Buyer contained in this Agreement are conditions precedent to
ITEM 16.2. ATTACHMENT 3
City’s obligation to proceed with the Closing hereunder. The foregoing representations and warranties shall survive Close of Escrow or the expiration or termination of this Agreement and shall not be deemed merged into the deed upon closing.
7. PROJECT ENTITLEMENT PROCESS
7.1 Project Entitlements. In order to develop the Project as contemplated in this City-Mercy Agreements, the Project will require land use approvals, entitlements, development permits, and use and/or construction approvals, which may include, without limitation: maps pursuant to the Subdivision Map Act, development plans, conditional use permits, variances, subdivision approvals, street abandonments, design review approvals, demolition permits, improvement agreements, infrastructure agreements, grading permits, and amendments thereto and to the Project Approvals. For purposes of this Agreement, the term “Entitlements” means all of the approvals, plans and agreements described in this Section 7.1. a. Commencement of Project. Buyer shall commence construction of the Project within the deadlines stated in the Homekey+ funding requirements and other City- Mercy Documents.
b. Completion of Project. Buyer shall complete the Project no later than November 18, 2027. Completion of the Project shall be deemed satisfied upon the City’s issuance of a temporary certificate of occupancy.
c. Costs of Entitlement, Development and Construction. Except as otherwise provided in the City-Mercy Agreements, Buyer agrees that all costs, expenses and fees associated with the development and construction of the Project (including, but not limited to governmental permits and approvals), shall be borne by Buyer. d. Rights of Access and Inspection. In addition to those rights of access to and across the Property to which the City may be entitled by law, employees and agents of the City shall have a reasonable right of access to the Property, without charge or fee, at any reasonable time, upon reasonable notice to Buyer (which may be telephonic notice to Buyer or its construction foreman) to inspect the work being performed at the Property in connection with the development of the Project, but City shall not be obligated to do so, and City shall not be liable for any failure to disclose any information discovered by City, or that could or should have been discovered by any City inspection.
e. Prevailing Wage Laws. Buyer shall carry out the construction of the Project on the Property in conformity with all applicable federal, state labor standards and prevailing wage laws, including Labor Code Section 1720, et seq., and its implementing regulations (“Prevailing Wage Laws”). Buyer shall be solely responsible for determining and effectuating compliance with any applicable Prevailing Wage Laws, and City makes no representation as to the applicability or non-applicability of the Prevailing Wage Laws to the Project. Buyer hereby releases from liability, and agrees to indemnify, defend, assume all responsibility for and hold City and its officers, employees, agents and representatives, harmless from any and all claims, demands, actions, suits, proceedings, fines, penalties, damages, expenses resulting from, arising out of, or based upon Buyer’s acts or omissions pertaining to the
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compliance with the Prevailing Wage Laws for the Project. The indemnification provisions of this Section shall survive the Close of Escrow and the termination of this Agreement. f. No Agency Created. In performing this Agreement, Buyer is an independent contractor and not the agent of City. City is not an agent of the Buyer. City shall not have any responsibility whatsoever for payment to any contractor or supplier of Buyer or its contractors.
7.2 Compliance with Laws. Buyer shall carry out the ownership, maintenance and development of the Property in conformity with all applicable laws and City- Mercy Agreements.
7.3 Forced Delay. The timelines in this Section 7 shall be extended where delays or defaults are due to events beyond a Party’s reasonable control, including but not limited to due to war; insurrection; strikes or other labor disputes; civil disobedience or disturbance; lock-outs; riots; accident; floods; earthquakes; fires; casualties; acts of God; or other deities; acts of terrorism or the public enemy; pandemics or epidemics; quarantine restrictions; freight embargoes; governmental restrictions or priority; governmental or judicial actions; litigation (including suits filed by third parties concerning or arising out of this Agreement); weather conditions which, in the opinion of the Buyer’s commercially reasonable judgement, will necessitate delays; delays of any contractor, sub-contractor or supplier; inability to secure necessary labor, materials or tools; acts of the other Party that constitute a default under this Agreement or City-Mercy Agreements; acts or failure to act of any public or governmental agency or entity (other than an act or failure to act of the City which shall give rise to the delaying act described above); or any other causes (other than Buyer’s inability to obtain financing for the Project). An extension of time for any cause shall be for the period of the delay and will be deemed granted if notice by the Party claiming such extension is sent to the other within ten (10) days from the date the Party seeking the extension first discovered the cause and such extension of time is not rejected in writing by the other Party within ten (10) days of receipt of the notice. If a notice under this Section 7.3 is timely rejected in writing, then the Parties shall meet and confer before pursuing their rights under Section 9. Times of performance under this Agreement may also be extended in writing by the City Manager and the Buyer, and a Party's consent to such extension shall not be unreasonably withheld, conditioned or delayed. In no event shall the total extensions granted under this Section 7.3 exceed one (1) year.
City Fees. City agrees that any development impact fees charged by City in connection with Buyer’s development of the Property shall be payable upon issuance of a certificate of occupancy for completed homes. All City fees charged with respect to Buyer’s development of the Property shall be at the levels in effect as of the date of the applicable permit approval.
8. ENVIRONMENTAL INDEMNIFICATION
8.1 Definitions.
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a. CVRWQCB. “CVRWQCB” means the Central Valley Regional Water Quality Control Board or any other government agency with lead jurisdiction over Hazardous Substances at the Property.
b. Environmental Laws. “Environmental Laws” means all federal, state, and local laws, statutes, rules, regulations, ordinances, and codes, and any judicial or administrative interpretation thereof or requirement thereunder, including any judicial or administrative order, by any government agency, relating to the regulation or protection of human health, safety, the environment and natural resources, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et seq.); the Hazardous Materials Transportation Act (49 U.S.C. § 5101 et seq.); the Clean Air Act (42 U.S.C. § 7401 et seq.); the Clean Water Act (33 U.S.C. § 1251 et seq.); the Safe Drinking Water Act (42 U.S.C. § 300f et seq.); the Solid Waste Disposal Act (42 U.S.C. § 6901 et seq.); the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.); the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.); the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.); the Emergency Planning and Community Right-To-Know Act (42 U.S.C. § 11001 et seq.); the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. § 136 et seq.); and any similar or comparable state or local laws (including the California Land Reuse and Revitalization Act of 2004), as such laws are in effect as of the date of this Agreement or as subsequently amended.
c. Existing Environmental Condition. “Existing Environmental Condition” means Hazardous Substances present at, on and under the Property as of the date of this Agreement as referenced in the Phase I Environmental Site Assessment, prepared by Brusca Associates, Inc. and dated February 3, 2025, the Phase II Environmental Site Assessment prepared by Tetra Tech, Inc. and dated September 5, 2024. Existing Environmental Condition shall also include Hazardous Substances encountered during grading and other earth moving activities in connection with construction of the Project, and in accordance with a permit issued pursuant to Rancho Cordova Municipal Code Chapter 16.44. The City and CVRWQCB shall be promptly notified of any Hazardous Substances encountered during grading and other earth moving activities in connection with construction of the Project, and appropriate action shall be taken by the Parties in accordance with Environmental Laws. d. Hazardous Substances. “Hazardous Substances” means (a) any chemical, compound, material, mixture or substance that is now or hereafter defined or listed in, or otherwise classified pursuant to, any Environmental Laws as a “hazardous substance,” “hazardous material,” “hazardous waste,” “extremely hazardous waste,” “toxic substance,” “pollutant,” or “contaminant,” as well as any formulation not mentioned herein intended to define, list or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity or toxicity; (b) petroleum and petroleum products, natural gas, natural gas liquids, and mixtures thereof and products related thereto; (c) per- and polyfluoroalkyl substances (PFAS) and (d) any other chemical, material or substance that, because of its quantity, concentration or physical or chemical characteristics, exposure to which is limited or regulated for health and safety reasons by any government agency.
8.2 Environmental Indemnification.
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a. Mercy Indemnification. The term “Claims” shall mean any and all claims, liabilities, and costs. City hereby agrees to indemnify, defend and hold Mercy Housing, its affiliates, and lenders (collectively, “Mercy Parties”), harmless from any and all Claims resulting from the Existing Environmental Condition of the Property (“Hazardous Material Claims”) for the term of the Affordable Housing Agreement. Any defense of any or all of the Mercy Parties required by this Section shall be at City’s sole cost and expense and by counsel selected by the City, subject to the reasonable approval of the indemnified person, which counsel may also represent City in such investigation, action or proceeding. If any of the Mercy Parties being indemnified determines reasonably and in good faith that its defense by City is likely to cause a conflict of interest, such indemnified person may elect to conduct its own defense through counsel of its own choosing, subject to the reasonable approval of City, and at the expense of City. Notwithstanding the following or anything to the contrary set forth in this Agreement, Mercy is not released from any liability to City for fraud or breach of any covenant, obligation, representation or warranty, or any other term, set forth in this Agreement, or from any Hazardous Substances created on the Property after the Close of Escrow. b. Mercy Duty to Follow CVRWQCD Approved Mitigation
Approach. Mercy is solely responsible for complying with all “Post-Closing Mitigation Measures” described in CVRWQCB’s letter titled “REVIEW OF CONCEPTUAL MITIGATION APPROACH, MATHER VETERANS VILLAGE 4 PROPERTY, SCHIRRA AVENUE AND BLECKELY STREET, RANCHO CORDOVA, SACRAMENTO COUNTY”, attached to this Agreement and incorporated herein as Exhibit B, including such updated, revised, supplemented or amended Post-Closing Mitigation Measures required by CVRWQCD in the future. City has agreed to pay for costs of implementation of Post-Closing Mitigation Measures out of its American Rescue Plan Act (ARPA) funding commitment to the Project as evidenced by the Parties’ existing ARPA Agreement, including all ancillary expenses reasonably related to such implementation.
Notwithstanding the foregoing, Mercy shall take all commercially reasonable precautions to prevent the release of any Hazardous Substances into the environment in violation of Environmental Laws, but such precautions shall not prohibit the use of substances of kinds and in amounts ordinarily and customarily used or stored in similar properties for the purposes of cleaning or other maintenance or operations and otherwise in compliance with all Environmental Laws. Such precautions shall include compliance with all Environmental Laws with respect to Hazardous Substances.
e. Mercy Responsibilities for Cleanup Costs and Default. Mercy shall be fully and completely liable for any and all cleanup costs, and any and all other charges, fees, penalties (civil and criminal) imposed by any governmental authority, including but not limited to CVRWQCD, or third party, with respect to Mercy’s use, disposal, transportation, generation and/or sale of Hazardous Substances, in or about the Property arising after the Close of Escrow.
c. Mercy’s Release for Post-Closing Mitigation Measures Effective upon the Close of Escrow. Mercy waives releases, remises, acquits and forever discharges City, and its officers, directors, legislative body members, managers, employees and
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agents, and any other person acting on behalf of City, from any and all Claims arising from or in connection with Mercy’s implementation of or failure to implement CVRWQCD’s Post-Closing Mitigation Measures, and Mercy’s failure to comply with Environmental Laws and commercially reasonable precautions pertaining to Hazardous Substances.
8.3 Environmental Review. This Agreement is not intended to limit in any manner the discretion of City or other agency, as applicable, in connection with the issuance of approvals and entitlements for the Property, including, without limitation, the undertaking and completion of any required environmental review pursuant to the California Environmental Quality Act (“CEQA”) and the National Environmental Policy Act (“NEPA”), as applicable, and the review and approval of plans and specifications relating to the Property. Prior to approval of any Project Approval for the Property, City, acting as lead agency or co-lead agency, shall complete any environmental review required under CEQA or NEPA.
9. REMEDIES In the event of a breach or default under this Agreement by either Party, if such breach or default occurs prior to Close of Escrow, the Parties may (a) seek specific performance, or (b) to do any of the following: (i) to waive the breach or default and proceed to close as provided herein; (ii) to extend the time for performance and the Closing Date until breaching Party is able to perform provided, however, that the Close of Escrow shall not be extended to a date later than one hundred eighty (180) days after Closing Date; or (iii) to terminate this Agreement upon written notice to breaching Party, and except for the rights and obligations expressly provided to survive termination of this Agreement, no Party shall have any further obligations or liabilities hereunder. IN NO EVENT SHALL ANY PARTY BE
ENTITLED TO DAMAGES, LOST PROFITS OR CONSEQUENTIAL DAMAGES AS A RESULT OF THE OTHER PARTY’S BREACH OF THIS AGREEMENT.
__________ _________
Buyer’s Initials City’s Initials
10. BROKERS. City represents that no real estate broker has been retained by City in the sale of the Property or negotiation of this Agreement. City is not responsible for any broker fees related to the sale of the Property. Buyer shall indemnify, hold harmless and defend City from any and all claims, actions and liability from any commission, finder’s fee, or similar charges arising out of Buyer purchase of the Property.
11. ASSIGNMENT. Absent an express signed written agreement between the Parties to the contrary, Buyer may not assign its rights or delegate its duties under this Agreement without the express written consent of the City, which consent may be withheld for any reason.
No permitted assignment of any of the rights or obligations under this Agreement shall result in a novation or in any other way release the assignor from its obligations under this Agreement.
12. MISCELLANEOUS.
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12.1 Attorneys’ Fees. If any Party employs counsel to enforce or interpret this Agreement, including the commencement of any legal proceeding whatsoever (including insolvency, bankruptcy, arbitration, mediation, declaratory relief or other litigation), the prevailing party shall be entitled to recover its reasonable attorneys’ fees and court costs (including the service of process, filing fees, court and court reporter costs, investigative fees, expert witness fees, and the costs of any bonds, whether taxable or not) and shall include the right to recover such fees and costs incurred in any appeal or efforts to collect or otherwise enforce any judgment in its favor in addition to any other remedy it may obtain or be awarded.
Any judgment or final order issued in any legal proceeding shall include reimbursement for all such attorneys’ fees and costs. In any legal proceeding, the “prevailing party” shall mean the party determined by the court to most nearly prevail and not necessarily the party in whose favor a judgment is rendered.
12.2 Interpretation. This Agreement has been negotiated at arm’s length and each Party has had the opportunity to have this Agreement reviewed and revised by counsel.
Accordingly, each Party hereby waives any benefit under any rule of law (including Section 1654 of the California Civil Code) or legal decision that would require interpretation of any ambiguities in this Agreement against the Party drafting it.
12.3 Survival. All indemnities, covenants, representations and warranties contained in this Agreement shall survive Close of Escrow.
12.4 Successors. Except as provided to the contrary in this Agreement, this Agreement shall be binding on and inure to the benefit of the Parties and their successors and assigns.
12.5 Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of California.
12.6 Integrated Agreement; Modifications. This Agreement, along with the City-Mercy Agreements, contains all the agreements of the Parties concerning the subject hereof any cannot be amended or modified except by a written instrument executed and delivered by the parties. There are no representations, agreements, arrangements or understandings, either oral or written, between or among the parties hereto relating to the subject matter of this Agreement and City-Mercy Agreements, that are not fully expressed. In addition, there are no representations, agreements, arrangements or understandings, either oral or written, between or among the Parties upon which any party is relying upon in entering this Agreement that are not fully expressed herein.
12.7 Severability. If any term or provision of this Agreement is determined to be illegal, unenforceable, or invalid in whole or in part for any reason, such illegal, unenforceable, or invalid provisions or part thereof shall be stricken from this Agreement, any such provision shall not be affected by the legality, enforceability, or validity of the remainder of this Agreement. If any provision or part thereof of this Agreement is stricken in accordance with the provisions of this Section, then the stricken provision shall be replaced, to the extent possible, with a legal, enforceable and valid provision this is in keeping with the intent of the Parties as expressed herein.
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12.8 Notices. Any delivery of this Agreement, notice, modification of this Agreement, collateral or additional agreement, demand, disclosure, request, consent, approval, waiver, declaration or other communication that either Party desires or is required to give to the other Party or any other person shall be in writing. Any such communication may be served personally, or by nationally recognized overnight delivery service (i.e., Federal Express) which provides a receipt of delivery, or sent by prepaid, first class mail, return receipt requested to the Party’s address as set forth below:
To Buyer: Mercy Housing California
2512 River Plaza Drive, Suite 200
Sacramento, CA 95833
Attention: Richard C. Ciraulo
To City: City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 95670
Attention: City Manager
To Escrow Holder:
[NAME]
[ADDRESS]
Attention:
12.9 Any such communication shall be deemed effective upon personal deliver or on the date of first refusal to accept delivery as reflected on the receipt of delivery or return receipt, as applicable. Any Party may change its address by notice to the other Party. Each Party shall make an ordinary, good faith effort to ensure that it will accept or receive notices that are given in accordance with this section and that any person to be given notice actually receives such notice.
12.10 Time. Time is of the essence to the performance of each and every obligation under this Agreement.
12.11 Days of Week. If any date for exercise of any right, giving of any notice, or performance of any provision of this Agreement falls on a Saturday, Sunday or holiday, the time for performance will be extended to 5:00 p.m. on the next business day.
12.12 Reasonable Consent and Approval. Except as otherwise provided in this Agreement, whenever a party is required or permitted to give its consent or approval under this Agreement, such consent or approval shall not be unreasonably withheld or delayed. If a party is required or permitted to give its consent or approval in its sole and absolute discretion or if such consent or approval may be unreasonably withheld, such consent or approval may be unreasonably withheld but shall not be unreasonably delayed.
12.13 Further Assurances. The Parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as
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may be reasonably required or appropriate to carry out the intent and purposes of this Agreement.
12.14 Waivers. Any waiver by any party shall be in writing and shall not be construed as a continuing waiver. No waiver will be implied from any delay or failure to take action on account of any default by any party. Consent by any party to any act or omission by another party shall not be construed to be a consent to any other subsequent act or omission or to waive the requirement for consent to be obtained in any future or other instance.
12.15 Signatures/Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any one of such completely executed counterparts shall be sufficient proof of this Agreement.
12.16 Date and Delivery of Agreement. Notwithstanding anything to the contrary contained in this Agreement, the Parties intend that this Agreement shall be deemed effective, and delivered for all purposes under this Agreement, and for the calculation of any statutory time periods based on the date an agreement between parties is effective, executed, or delivered, as of the Effective Date.
12.17 Representation on Authority of Parties. Each person signing this Agreement represents and warrants that he or she is duly authorized and has legal capacity to execute and deliver this Agreement. Each Party represents and warrants to the other that the execution and delivery of the Agreement and the performance of such Party’s obligations hereunder have been duly authorized and that the Agreement is a valid and legal agreement binding on such Party and enforceable in accordance with its terms.
SIGNATURES ON FOLLOWING PAGE
ITEM 16.2. ATTACHMENT 3
IN WITNESS WHEREOF, this Agreement is executed to be effective as of the date first set forth above.
CITY: City of Rancho Cordova
By: ____________________________
Micah Runner, City Manager
Attest:
___________________________________
Stacy Leitner, CMC, City Clerk
Reviewed as to Form:
___________________________________
Adam U. Lindgren, City Attorney
BUYER: Mercy Housing California 122 LLC,
a California limited liability company
By: Mercy Housing California,
a California nonprofit public benefit
corporation,
its sole member/manager
By:
_____________________________
Richard C. Ciraulo,
Vice President
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EXHIBIT A
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EXHIBIT B
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Recording requested by and when
recorded mail to:
City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 95670
Attn: City Clerk
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Space above this line for Recorder’s use.
AFFORDABLE HOUSING AGREEMENT
by and between
THE CITY OF RANCHO CORDOVA
and
MERCY HOUSING CALIFORNIA 122 LLC
Date ______________, 2026
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THIS AFFORDABLE HOUSING AGREEMENT (this “Agreement”) is entered into effective as of _____________, 2026 (the “Effective Date”) by and between the City of Rancho Cordova, a California municipal corporation (“City”) and Mercy Housing California 122 LLC, a California limited liability company (the “Owner”). City and Owner are hereinafter collectively referred to as the “Parties.”
RECITALS
A. The City and the Owner have entered into that certain Purchase and Sale Agreement dated _______________, 2026 (the “Conveyance Agreement”), pursuant to which the City has agreed to convey an approximately 2 acre portion of Assessor Parcel Number 067-0010-114-0000, as more particularly described in Exhibit A attached hereto (the "Property") which is the subject of this Agreement.
B. Conveyance of the Property to the Owner is subject to the Owner entering into an Affordable Housing Agreement with the City, pursuant to which the Owner will agree to construct seventy (70) rental of housing units for homeless and/or disabled veteran households and homeless families (the “Project”) on the Property, pursuant to the proposal provided to the City on September 9, 2022 in response to the City’s request for proposals for affordable housing targeted to veterans.
C. The Parties have agreed to enter into and record this Agreement in order to satisfy the conditions described in the foregoing Recitals.
D. The Parties intend the covenants set forth in this Agreement to run with the land and to be binding upon all parties having or acquiring any right, title or interest in the Property or any part thereof, their heirs, successors and assigns.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. Definitions. The following terms shall have the meanings set forth below whenever such terms are used in this Agreement and the Exhibits attached hereto.
Additional terms are defined in the Recitals and text of this Agreement.
1.1 “Affordable Rent” shall have the meaning ascribed to such term in California Health and Safety Code Section 50053 or successor provision and the regulations promulgated pursuant thereto. Pursuant to the foregoing, as of the Effective Date, Affordable Rent means the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit.
Pursuant to California Health and Safety Code Section 50053(d) and 50052.5(h), the phrase “adjusted for household size appropriate to the unit” shall mean a household
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of one person for a studio unit, two persons for a one-bedroom unit, three persons for a two-bedroom unit, four persons for a three-bedroom unit, and five persons for a four bedroom unit.
1.2 “Area Median Income” or “AMI” means the area median income for Sacramento County, California, adjusted for household size, published periodically by the California Department of Housing and Community Development (“HCD”) in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c). If HCD ceases to make such determination, Area Median Income shall be the median income applicable to Sacramento County, with adjustments for household size, as determined from time to time by the U.S. Department of Housing and Urban Development ("HUD") pursuant to the United States Housing Act of 1937 as amended, or such other method of median income calculation applicable to the City of Rancho Cordova that HUD may hereafter adopt in connection with such Act.
1.3 “Eligible Tenant” means a prospective tenant of a Restricted Unit who has been approved by the City or its designee and who satisfies all of the following requirements:
(a) Gross income for the prospective tenant’s household does not exceed Very Low-Income, and has not exceeded such amount for the full calendar year immediately preceding the date of lease of the Restricted Unit.
(b) The prospective tenant certifies that he or she intends to occupy the Restricted Unit as his or her principal residence.
(c) At least one of the prospective tenants in a household is a disabled and/or homeless veteran, or the household is a homeless family.
1.4 “Restricted Unit” means a dwelling unit that is reserved for occupancy at an Affordable Rent by an Eligible Tenant.
1.5 “Unrestricted Unit” means one (1) manager’s unit that will not be restricted to the tenant and affordability restrictions in this Agreement.
1.6 “Very Low-Income” means an annual gross income that is not greater than fifty percent (50%) of Area Median Income, adjusted for household size, and as the determination for what qualifies as gross income may be adjusted to be consistent with HCD and U.S. Veterans Administration programs applicable to the Project.
1.7 “Veteran” means any individual who served honorably on active duty in a branch of the armed services of the United States Armed Forces, and as may be adjusted to be consistent with HCD and U.S. Veterans Administration programs applicable to the Project.
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2. Covenant to Construct Housing for Eligible Tenants.
2.1 Owner hereby covenants to construct or cause to be constructed sixty nine (69) Restricted Units for Very Low-Income households on the Property for Eligible Tenants, and one (1) Unrestricted Unit, as defined in this Agreement. The Owner will restrict the occupancy of Restricted Units for a term of fifty-five (55) years from the date the Project receives a certificate of occupancy (the “Term”). Notwithstanding anything to the contrary contained herein, as of the date hereof, the Project is intended to have the benefit of a contract with respect to project based rental assistance. If at any time during the term of this Agreement, the Project’s rental subsidies are reduced, not renewed, or terminated, then the rent and income restriction levels set forth herein for all Restricted Units may be adjusted upward by the Property owner as allowed by and in accordance with California Tax Credit Allocation Committee (CTCAC) California Code of Regulations, Title 4, Section 10337, et seq. (the “Regulations”). If the Project’s rental subsidies are reduced, not renewed, or terminated, Property Owner shall comply with the procedures set forth in Regulations Section 10337(a)(3)(A)-(B).
2.2 Owner shall market the Restricted Units in the Project to Eligible Tenants in compliance with all applicable fair housing laws. Owner shall approve Eligible Tenants. Owner shall provide to the City proof that prospective tenants of the Restricted Units qualify as Eligible Tenants at such time as City may reasonably require, including upon full occupancy of the Project.
2.3 In the event that a Restricted Unit has been vacant for more than thirty (30) days, and prior to that time the Owner has not received a rental application from a homeless family or homeless and/or disabled Veteran household that is otherwise an Eligible Tenant, then the Owner, with the City’s prior written authorization may rent the vacant Restricted Unit to a prospective tenant that is a veteran household that satisfies subsections (a) and (b) of Section 1.3, but that does not satisfy subsection (c) of Section
1.3. 3. Compliance Monitoring. Owner shall annually monitor the annual gross income of the Eligible Tenants that occupy the Project in order to ensure that only Eligible Tenants (except as otherwise provided in Section 2.3) occupy Restricted Units. the City shall monitor Owner’s compliance with this Section, and accordingly, Owner shall provide to the City, at such time as City may reasonably require, including upon full occupancy of the Project, proof that tenants that occupy the Project qualify as Eligible Tenants.
4. Maintenance of Property. Owner shall maintain the improvements and landscaping, or shall ensure that such improvements and landscaping are maintained, on the Property in accordance with the Rancho Cordova Municipal Code, and in a manner consistent with community standards so as to maintain the value of the
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Property. Owner shall comply with any and all covenants and agreements established by any Declaration of Covenants, Conditions, and Restrictions affecting the Property, and shall comply with all applicable federal, state and local laws affecting the Property.
5. Limitations on Change in Ownership, Management and Control of Owner.
5.1 Change Pursuant to this Agreement. Owner has represented that it possesses the necessary expertise, skill and ability to carry out the Project. The qualifications, experience, financial capacity and expertise of Owner is of particular concern to the City. It is because of these qualifications, experience, financial capacity and expertise that the City has entered into this Agreement with Owner. No voluntary or involuntary successor, assignee or transferee of Owner shall acquire any rights or powers under this Agreement, except as expressly provided herein.
5.2 Prohibition on Transfer. Prior to the expiration of the term of this Agreement, Owner shall not, except as expressly permitted by this Agreement, directly or indirectly, voluntarily, involuntarily or by operation of law make or attempt any total or partial sale, transfer, conveyance, assignment or lease (collectively, “Transfer”) of the whole or any part of Owner’s interest in the Property, the Project, or this Agreement, without the prior written approval of City, which approval shall not be unreasonably withheld or delayed.
Any such attempt to assign any of these interests without the City’s consent shall be null and void and shall confer no rights or privileges upon the purported assignee. In addition to the foregoing, prior to the expiration of this Agreement, except as expressly permitted by this Agreement, Owner shall not undergo any significant change of ownership without the prior written approval of City. For purposes of this Agreement, a “significant change of ownership” shall mean a transfer of the beneficial interest of more than twenty-five percent (25%) in aggregate of the present ownership and/or control of Owner, taking all transfers into account on a cumulative basis.
5.3 Permitted Transfers. Notwithstanding any contrary provision hereof, the prohibitions set forth in this Section 5 shall not be deemed to prevent the following Transfers: (i) the lease of the residential units consistent with this Agreement; (ii) granting of easements or licenses necessary for the operation of the Project; (iii) a conveyance of the Property resulting from the foreclosure (or deed in lieu of foreclosure) of a deed of trust secured by the Property; or (iv) a Transfer to an entity which is under the direct control or under common control with Owner, or in which Owner or one of its affiliates is the general partner or sole member of the general partner (“Controlled Affiliate”).
5.4 Requirements for Proposed Transfers. The City may, in the exercise of its sole discretion, consent to a proposed Transfer of this Agreement if all of the following requirements are met (provided however, the requirements of this Section 5.4 shall not apply to Transfers described in Section 5.3):
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(i) The proposed transferee demonstrates to the City’s satisfaction that it has the qualifications, experience and financial resources necessary and adequate as may be reasonably determined by the City to competently complete and manage the Project and to otherwise fulfill the obligations undertaken by the Owner under this Agreement.
(ii) The Owner and the proposed transferee shall submit for City review and approval all instruments and other legal documents proposed to effect any Transfer of this Agreement together with such documentation of the proposed transferee’s qualifications and capacity as the City may reasonably request.
(iii) The proposed transferee shall expressly assume all of the rights and obligations of the Owner under this Agreement, all other obligations of Owner related to the Project arising prior to the effective date of the Transfer (unless Owner expressly remains responsible for such obligations) and shall agree to be subject to and assume all of Owner’s obligations set forth in this Agreement.
(iv) The Transfer shall be effectuated pursuant to a written instrument satisfactory to the City.
Consent to any proposed Transfer may be given by the City Manager unless the City Manager, in his or her discretion, refers the matter of approval to the City Council. If the City rejects a proposed Transfer, the City, as applicable, shall provide the reasons for such rejection in writing within thirty (30) days following receipt of written request by Owner, and representatives of the City shall meet with Owner and the proposed transferee to discuss in good faith the reasons for the rejection and Owner’s and transferee’s responses thereto.
5.5 Effect of Transfer without City Consent.
5.5.1 In the absence of specific written agreement by the City, no Transfer by Owner shall be deemed to relieve the Owner or any other party from any obligation under this Agreement.
5.5.2 Without limiting any other remedy City may have under this Agreement, or under law or equity, this Agreement may be terminated by City if without the prior written approval of the City, Owner assigns or Transfers this Agreement. This Section 5.5.2 shall not apply to Transfers permitted under Section 5.3.
5.6 Recovery of City Costs. Owner shall reimburse City for all costs, including but not limited to attorneys’ fees, incurred in reviewing instruments and other legal documents proposed to affect a Transfer under this Agreement and in reviewing the qualifications and financial resources of a proposed successor, assignee, or transferee within ten
ITEM 16.2. ATTACHEMENT 4
days following City’s delivery to Owner of an invoice detailing such costs. This Section
5.6 shall not apply to Transfers permitted under Section 5.3.
6. Enforcement. The City is deemed to be the beneficiary of this Agreement and the covenants herein, both for and in their own right and for the purpose of protecting the interests of the community and other parties, public or private, for whose benefit this Agreement and the covenants set forth herein have been provided. If any such covenants are breached, and following the expiration of any applicable cure period, the City shall have the right to exercise all rights and remedies at law or in equity, expressly including the remedy of specific performance, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties hereunder are cumulative.
7. Default and Remedies.
7.1 Events of Default. The occurrence of any one or more of the following events shall constitute an event of default hereunder ("Event of Default"):
(a) Except as otherwise provided in Section 2.3, Owner’s failure to ensure that the Project is occupied by Eligible Tenants. (b) Subject to Owner’s right to contest the following charges, Owner’s failure to pay taxes or assessments due on the Property or the Project or failure to pay any other charge that may result in a lien on the Property or the Project, and Owner’s failure to cure such default within ten (10) business days of receiving notice of default. (c) Owner’s default in the performance of any term, provision or covenant under this Agreement, and unless such provision specifies a shorter cure period for such default, the continuation of such default for ten (10) business days in the event of a monetary default or thirty (30) days in the event of a non-monetary default following the date upon which Owner has received written notice of the default by City, or if the nature of any such non-monetary default is such that it cannot be cured within thirty (30) days, Owner’s failure to commence to cure the default within thirty (30) days and thereafter prosecute the curing of such default with due diligence and in good faith, but in no event longer than ninety (90) days from receipt of the notice of default, unless otherwise agreed to by the parties.
7.2 Remedies. If following the expiration of the applicable cure period, Owner fails to cure a default or fails to commence to cure and diligently pursue completion of a cure, as applicable, or if a cure is not possible, City may bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief; or exercise any rights and remedies available to City under applicable law or in equity.
ITEM 16.2. ATTACHEMENT 4
7.3 No Waiver. No failure or delay by the City in the assertion of any of its rights and remedies as to any default shall operate as a waiver of any default or of any such rights or remedies.
7.4 Limitation on Damages. In no event shall damages be awarded against Owner or City upon an event of default or upon termination of this Agreement.
7.5 Non-Liability of Officials, Employees, and Agents. No member, official, officer, director, employee, or agent of the Owner shall be personally liable to City for any obligation created under the terms of this Agreement, except in the case of actual fraud or willful misconduct by such person.
8. Covenants to Run with the Land. Owner hereby subjects the Property to the covenants, conditions and restrictions set forth in this Agreement. The Parties hereby declare their express intent that all such covenants, conditions and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s successors in title to the Property. All covenants without regard to technical classification or designation shall be binding for the benefit of the Owner and the City, and such covenants shall run in favor of the City for the entire term of this Agreement.
Each and every contract, deed or other instrument hereafter executed applicable to or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, conditions and restrictions, regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed or other instrument.
9. Nondiscrimination. There shall be no discrimination against or segregation of any person, or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or the Project, or any part thereof, nor shall Owner, or any party or person claiming under or through Owner, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property, or any part thereof.
10. Term. The term of this Agreement shall commence upon the Effective Date, and shall, without regard to technical classification or designation, shall run with the land and be binding on Owner and its successors and assigns for the benefit of the Owner and the City until the expiration of the Term.
ITEM 16.2. ATTACHEMENT 4
11. Insurance and Indemnity.
11.1 Indemnity. Owner shall indemnify, defend (with counsel approved by City) and hold City, its City Council, officers, directors, employees, agents, and representatives (collectively, the “Indemnitees”) harmless from and against all liability, loss, cost, expense (including without limitation attorneys’ fees and costs of litigation), claim, demand, action, suit, judicial or administrative proceeding, judgment, penalty, deficiency, fine, order, and damage (all of the foregoing collectively “Claims”) arising directly or indirectly, in whole or in part, as a result of or in connection with Owner’s development, sale or ownership of the Restricted Units and/or the Project, or Owner’s performance or nonperformance under this Agreement. Owner’s indemnification obligations under this Section 11.1 shall not extend to the extent of any Claims resulting solely from the negligence or willful misconduct of any Indemnitee. The provisions of this Section 11.1 shall survive the expiration or earlier termination of this Agreement and the release of the Property or any part thereof from the burdens of this Agreement, as to any Claims accruing prior to the expiration or termination of this Agreement. It is further agreed that City does not and shall not waive any rights against Owner that they may have by reason of this indemnity and hold harmless agreement because of the acceptance by City, or the deposit with City by Owner, of any of the insurance policies described in this Agreement.
11.2 Insurance. For so long as Owner maintains an interest in the Property or the Project, Owner shall maintain at Owner’s expense, comprehensive general liability insurance and property damage insurance with such coverage and limits as may be reasonably requested by City from time to time, but in no event less than the sum of Two Million Dollars ($2,000,000) per occurrence combined single limit. Such policies shall be issued by insurers licensed to issue such policies in California and having a rating of A-VII or better in Best’s Insurance Guide, shall be primary coverage not contributing with and not in excess of any coverage that Owner may carry, and shall name the Indemnitees (defined in Section 11.1) as additional insureds. Upon City request, Owner shall provide City with such proof of insurance as City shall reasonably request.
12. Miscellaneous.
12.1 Notices. Except as otherwise specified in this Agreement, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered in accordance with this Section. All such notices shall be sent by:
(i) personal delivery, in which case notice shall be deemed delivered upon receipt;
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(ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered two (2) business days after deposit, postage prepaid in the United States mail;
(iii) nationally recognized overnight courier, in which case notice shall be deemed delivered one (1) day after deposit with such courier; or
(iv) facsimile transmission, in which case notice shall be deemed delivered on transmittal, provided that a transmission report is generated reflecting the accurate transmission thereof. Any notice given by facsimile shall be considered to have been received on the next business day if it is received after 5:00 p.m. recipient’s time or on a nonbusiness day.
Owner: Mercy Housing California 122 LLC
c/o Mercy Housing California
2512 River Plaza Drive, ste 200
Sacramento, CA 95833
Attention: Rich Ciraulo
City: City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 95670
Attn: City Clerk
12.2 Attorneys’ Fees. Any party may bring a suit or proceeding to enforce or require performance of the terms of this Agreement, and each party shall be responsible for its own attorney’s fees and costs.
12.3 Waivers; Modification. No waiver of any breach of any covenant or provision of this Agreement shall be deemed a waiver of any other covenant or provision hereof, and no waiver shall be valid unless in writing and executed by the waiving party. An extension of time for performance of any obligation or act shall not be deemed an extension of the time for performance of any other obligation or act, and no extension shall be valid unless in writing and executed by the waiving party. This Agreement may be amended or modified only by a written instrument executed by the Parties and duly recorded in the Official Records of Sacramento County.
12.4 Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect.
12.5 Captions; Construction. The section headings and captions used herein are solely for convenience and shall not be used to interpret this Agreement. The Parties acknowledge that this Agreement is the product of negotiation and compromise
ITEM 16.2. ATTACHEMENT 4
on the part of both Parties, and the Parties agree, that since both Parties have participated in the negotiation and drafting of this Agreement, this Agreement shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it.
12.6 Action or Approval. Whenever action and/or approval by City is required under this Agreement, the City Manager, or his or her designee, may act on and/or approve such matter unless specifically provided otherwise, or unless the City Manager determines in his or her discretion that such action or approval requires referral to City Council for consideration. Any consent or approval required under this Agreement shall not be unreasonably withheld, delayed, or conditioned.
12.7 Entire Agreement. This Agreement, including Exhibit A attached hereto and incorporated herein by this reference contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior written or oral agreements, understandings, representations or statements with respect to the subject matter hereof.
12.8 Binding on Successors. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. Each reference in this Agreement to a specifically named Party shall be deemed to apply to any successor or assign of such Party who has acquired an interest in the Property.
12.9 Due Authorization. Owner hereby represents and warrants that all actions necessary on the part of Owner to authorize the execution of this Agreement and to undertake the actions contemplated hereby have been undertaken and the persons executing this Agreement on behalf of Owner have been duly authorized to do so.
12.10 Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another.
12.11 Third Party Beneficiary. Owner and City hereto acknowledge and agree that the County of Sacramento (“County”) is an intended third-party beneficiary of this Agreement with the right and privilege, but not the obligation, to enforce the provisions of this Agreement. This Agreement shall be enforceable by the County, and its successors and assigns, by all remedies available at law or in equity as set forth in this Agreement. County’s failure or delay to exercise any right, remedy or privilege hereunder shall not operate as a waiver of such right, remedy or privilege nor prevent subsequent enforcement thereof.
ITEM 16.2. ATTACHEMENT 4
12.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one instrument.
12.13 Further Assurances. The Parties agree to execute such instruments and to undertake such actions, as may be necessary to effectuate the intent of this Agreement.
12.14 Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. Any action to enforce or interpret this Agreement shall be filed in the Superior Court of Sacramento County, California or in the Federal District Court for the Northern District of California.
12.15 Time is of the Essence. In all matters under this Agreement, the Parties agree that time is of the essence.
SIGNATURES ON FOLLOWING PAGE.
ITEM 16.2. ATTACHEMENT 4
IN WITNESS WHEREOF, the Owner and City have executed Agreement as of the date first written above.
CITY
CITY OF RANCHO CORDOVA
________________________________
By: Micah Runner
Its: City Manager
ATTEST:
_______________________________
Stacy Leitner, CMC, City Clerk
APPROVED AS TO FORM:
________________________
Adam U. Lindgren, City Attorney
OWNER:
Mercy Housing California 122 LLC,
a California limited liability company
By: Mercy Housing California,
a California nonprofit public benefit corporation,
its sole member/manager
By: _____________________________
Richard C. Ciraulo,
Vice President
SIGNATURES MUST BE NOTARIZED.
ITEM 16.2. ATTACHEMENT 4
Exhibit A
ALL THAT CERTAIN REAL PROPERTY IN THE CITY OF RANCHO CORDOVA, COUNTY OF SACRAMENTO, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS:
A PORTION OF RANCHO DE LOS AMERICANOS FILED IN THE OFFICE OF THE RECORDER OF SACRAMENTO COUNTY, IN BOOK 1 OF MAPS, MAP NO. 2 MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE INTERSECTION OF SCHIRRA AVENUE AND BLECKELY
STREET AS SHOWN ON THAT CERTAIN RECORD OF SURVEY RECORDED IN BOOK 57 OF SURVEYS, PAGE 20; THENCE ALONG THE CENTERLINE OF SAID SCHIRRA AVENUE NORTH 85°26’14” EAST 289.97 FEET; THENCE LEAVING SAID CENTERLINE SOUTH 04°30’15” EAST 348.70 FEET TO A POINT ON THE NORTH LINE OF THAT
CERTAIN EASEMENT FOR PUBLIC ROADWAY AND PUBLIC UTILITIES RECORDED IN BOOK 20050527, PAGE 1016 OF OFFICIAL RECORDS; THENCE ALONG THE NORTH LINE OF SAID PUBLIC ROADWAY EASEMENT SOUTH 85°31’05” WEST 289.92 FEET TO A POINT ON THE CENTERLINE OF BLECKELY STREET; THENCE ALONG THE CENTERLINE OF BLECKELY STREET NORTH 04°30’43” WEST 348.29 FEET TO THE POINT OF BEGINNING.
ITEM 16.2. ATTACHMENT 5
485.266/677703
MATHER VETERANS VILLAGE GRANT SUBRECIPIENT AGREEMENT BETWEEN
THE CITY OF RANCHO CORDOVA AND MERCY HOUSING
This Agreement is entered [DATE] by and between the City of Rancho Cordova, a California municipal corporation, as RECIPIENT (hereinafter referred to as “CITY”), and Mercy Housing California, a California nonprofit public benefit corporation, as SUBRECIPIENT.
RECITALS
This Agreement sets forth the responsibilities of CITY and SUBRECIPIENT in accomplishing the objectives of the United States Department of Housing and Urban Development (“HUD”) Community Project Funding Grant (“CPF”) as set forth in the Consolidated Appropriations Act, 2024 (Public Law 118-42) and the Explanatory Statement for Division L of that Act, which was printed in the Senate section of the Congressional Record on March 5, 2024 (Explanatory Statement) as deemed to be amended by the Further Consolidated Appropriations Act, 2024 (Public Laws 118-47).
The CPF program related thereto are referred to from time to time as the “CPF” or “CP FUNDS.”
On August 27, 2024, CITY received a Grant Award Letter (“Award Letter”) from HUD by which HUD proposed to award a grant in the amount of $1,000,000.00, Grant Number B-24-CP-CA-0100 (the “Grant”), to City for a project entitled Mather Veterans Village 4, (the “Project”), which Award Letter is attached hereto as Exhibit C.
Along with the Award Letter, HUD provided City with a Grant Agreement, which delineates City’s duties as a grant recipient (Exhibit D), and a Community Project Funding Grant Guide (“CPFGG,” Exhibit E). Both the Grant Agreement and CPFGG are incorporated herein by reference.
Pursuant to Article III, Section H of the Grant Agreement, City is authorized by HUD to subaward some or all of the Grant funds to one or more subrecipients, “subject to the subaward requirements under 2 CFR Part 200, including 2 CFR 200.332,” as well as “other requirements provided by [the] Grant Agreement.” CITY agrees to engage the services of SUBRECIPIENT, and SUBRECIPIENT agrees to perform the services for CITY, for the terms hereinafter described, and subject to the covenants and conditions herein set forth.
1. SUBRECIPIENT Services
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SUBRECIPIENT agrees to perform the tasks, obligations, and services set forth in the “Scope of Work” attached to this Agreement as Exhibit A and incorporated herein by reference.
2. Payment for Services
Payments shall be distributed by CITY to SUBRECIPIENT for the services rendered and expenses incurred related to the approved project budget and in accordance with grant guidelines.
3. Availability of Funds/Modifications
CITY’s provision of funding to SUBRECIPIENT pursuant to this Agreement is contingent on the availability of CP FUNDS and continued Federal authorization for CPF PROGRAM activities and is subject to amendment or termination due to lack of funds or authorization. This Agreement is subject to written modification and termination as necessary by CITY in accordance with requirements contained in any future Federal or local legislation, regulations, rules or policies.
4. Obligation of Funds
SUBRECIPIENT shall not commit or spend any project funds (HUD or non-HUD funds) on hard costs or take any choice limiting actions, until all environmental review has been completed and certified by HUD in accordance with HUD’s NEPA-implementing regulations 24 CFR Part 50 or 24 CFR Part 58, and all appropriate federal environmental and historic preservation laws, regulations, and Executive Orders, and CITY has received a written “Release of Funds and Certification.” from HUD, as applicable.
5. Term of Agreement
The term of this Agreement shall retroactively be from August 13, 2024 to August 31, 2032.
6. Period of Performance
SUBRECIPIENT shall not perform any work under this Agreement until (i) SUBRECIPIENT furnishes proof of insurance or self- insurance as required under Section 20 of this Agreement, and (ii) CITY gives SUBRECIPIENT a written, signed and numbered purchase order (which shall serve as an Authorization to obligate funds and incur costs). Notwithstanding the preceding sentence, work performed under this Agreement between August 13, 2024, and SUBRECIPIENT’s furnishing the above proof of insurance or self-insurance and CITY’s giving SUBRECIPIENT the above purchase order shall be reimbursed from the Grant, after such proof of insurance or self- insurance has been furnished. All services required of SUBRECIPIENT under this Agreement shall be completed on or before the end of the term of this Agreement.
7. Designated Representative
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(a) CITY’s representative is as follows:
City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 95670
Attention: Stefan Heisler
(b) SUBRECIPIENT’s representative, who shall be responsible for job performance, negotiations, contractual matters and coordination with the CITY Representative, is as follows:
Mercy Housing California
2512 River Plaza Drive, Suite 200
Sacramento, CA 95833
Attention: Richard C. Ciraulo
SUBRECIPIENT’s professional services shall be actually performed by, or shall be immediately supervised by, SUBRECIPIENT’s representative.
8. Compliance
SUBRECIPIENT agrees that it shall have the same obligations to CITY that CITY has undertaken to HUD pursuant to the Grant Agreement, Grant Award Letter, and CPFGG.
SUBRECIPIENT’s must comply with all Federal laws and regulations, including, but not limited to, those described in Grant Agreement Articles III, IV, V & VI (“Award- Specific Requirements,” “General Federal Requirements,” “Drawdown Requirements,” and “Program-Specific Reporting Requirements,” respectively).
SUBRECIPIENT further agrees to comply with any environmental, procurement, construction, and other guidelines provided by CITY and/or the CPFGG. SUBRECIPIENT must comply with all local code regulations, and SUBRECIPIENT’s services must conform to those standards.
As required by Section 30, SUBRECIPIENT shall obtain any permits, licenses and certificates which may be necessary for its performance under this Agreement. Failure to meet established performance goals and standards and/or non-compliance with applicable rules and regulations shall constitute non-compliance with the terms of this Agreement. CITY is entitled to use one or more of the following remedies for non- compliance: temporarily withhold cash payments pending correction of deficiencies by SUBRECIPIENT; disallow all or part of the cost of the activity or action not in compliance; wholly or partly suspend or terminate the current award for SUBRECIPIENT’s program; withhold further awards for the program; and/or take other remedies allowed by law.
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9. Subcontracts
SUBRECIPIENT shall incorporate the same or substantially equivalent requirements as are contained in this Agreement in all subcontracts which utilize any Grant and/or support the Project covered by this Agreement, to the extent applicable to such subcontracts. When project(s) utilize(s) Grant funds and other funding sources, all such funds shall be subject to Grant requirements, as described in this Agreement, as well as Exhibits C, D and E. SUBRECIPIENT, by entering into any such subcontract for performance of any portion of its Project, is not relieved of its responsibilities to CITY as set forth in this Agreement.
10. Non-Discrimination/Grievance Procedures
No person with responsibilities in the operation of any project under this Agreement will discriminate because of race, color, national origin, age, sex, political affiliation, disability, or marital or familial status.
11. Standard of Conduct/Conflict of Interest and Lobbying No member, officer or employee of SUBRECIPIENT or its designee or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercises any functions or responsibilities with respect to the program during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the process thereof, for work to be performed in connection with the program activities assisted under this Agreement.
No member, officer or agent of SUBRECIPIENT shall participate in the selection of the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved.
No covered persons who exercise or have exercised any functions or responsibilities with respect to Grant-assisted activities, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the Grant-assisted activity, or with respect to proceeds from the Grant-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this Section, a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the SUBRECIPIENT, or any designated public agency.
By entering into this Agreement, SUBRECIPIENT certifies:
a) No Federal appropriated funds have been paid or will be paid, by or on behalf of SUBRECIPIENT, to any person for influencing or attempting to influence an
ITEM 16.2. ATTACHMENT 5
officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into a cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, SUBRECIPIENT shall complete and submit Standard Form LL, “Disclosure Form to Report Lobbying,” in accordance with its instructions, and other Federal disclosure forms as requested.
c) SUBRECIPIENT shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all SUBRECIPIENTS shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
12. Fiscal Control
SUBRECIPIENT shall be responsible for the internal control and monitoring of fiscal and programmatic/operational goals and procedures. SUBRECIPIENT shall establish such fiscal controls and fund accounting procedures as required by Federal regulations, or as may be deemed necessary by HUD and CITY to ensure the proper dispersal of, and accounting for, funds paid to SUBRECIPIENT under the Grant Guidelines.
a) Disbursement of Funds: Grant funds shall generally be disbursed by CITY to SUBRECIPIENT within thirty days of receipt of invoice for services rendered or expenses incurred related to the approved project budget. b) Deposit of Funds: SUBRECIPIENT shall maintain separate accounts within established bookkeeping systems for the deposit of Grant Funds. c) Payment by CITY is not to be construed as final in the event HUD disallows reimbursement for the project or any portion thereof. Reasonable back-up documentation, as specified by CITY, shall be submitted by SUBRECIPIENT with request for payment.
ITEM 16.2. ATTACHMENT 5
d) SUBRECIPIENT shall be liable for all amounts which are determined to be due by HUD including, but not limited to, disallowed cost which are the result of SUBRECIPIENT’s or its contractor’s conduct under this Agreement. SUBRECIPIENT shall be notified in writing and shall be permitted to respond regarding any controversy or proceeding between CITY and HUD arising from this Agreement. e) All financial transactions must be supported by complete and verifiable source documents. Records shall provide a clear audit trail and shall be maintained as specified in Section 16 of this Agreement.
13. Program Income
Program income requirements are defined in section 2 CFR 200.307 and are described as gross income received by SUBRECIPIENT and directly generated from the use of CPF FUNDS. SUBRECIPIENT has stated they will not collect any program income through the use of Grant Funds.
14. Equipment
Equipment, which shall be defined as tangible, nonexpendable, personal property having a useful life of more than one (1) year and an acquisition cost of $1,000 or more per unit, is eligible for purchase using Grant Funds only upon prior approval of CITY and subject to all relevant conditions in the Grant Agreement and Federal law. Such equipment shall be used by SUBRECIPIENT in the project for which it was acquired as long as needed, regardless of whether such project continues to be supported by Federal funds; at the time, equipment may be used in other activities currently or previously supported by a Federal agency. Use of such equipment is also subject to provisions of 2 CFR Part 200.313(c) and (4). SUBRECIPIENT shall also establish procedures for managing equipment, which meet the requirements of 2 CFR Part 200.313(d). Further, proceeds from disposition of such equipment shall be treated as program income as specified in Section 13 and 14 of this Agreement.
15. Records and Reports
SUBRECIPIENT agrees to supply to CITY, on at least a semiannual basis (or more frequently period if so designated in Exhibit A – Scope of Services), any progress reports and/or other documentation as may be required by CITY to audit performance of this Agreement and/or to enable CITY to analyze and evaluate SUBRECIPIENT’s program.
SUBRECIPIENT shall maintain separate accounting and financial records for each funding (revenue) source in support of the project(s).
a) Expenditure Summary and Payment Request (ESPR). SUBRECIPIENT shall submit ESPR and supporting documents for payment to CITY no later than 15 calendar days after the end of the 6-month reporting period. The first of these reporting periods begins on the first of January. SUBRECIPIENT will be responsible for making any corrections to the ESPR requested by HUD. The Expenditure Summary and Payment Request must be in alignment with the approved project budget (found in Exhibit A, scope of services), and any changes to any line items must be approved by HUD and the CITY.
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SUBRECIPIENT is prohibited from making project or budget changes that would conflict with the Applicable Appropriations Act Conditions described in Article III, section D of the Grant Agreement.
b) Progress Reports: Progress reports shall address project status and, if applicable, an explanation of any problems/delays encountered and/or anticipated and measures to be taken to correct such problems; revised milestones including anticipated schedule for project completion; direct benefit statistics; and a summary of expenditures, obligations, program income, and drawdown to date.
c) Completion Report: SUBRECIPIENT shall prepare and submit to CITY a Completion Report within ninety (90) days of project completion. It shall include the following documentation, using templates if available from HUD’s Disaster Recovery Grant Reporting (DRGR) system when possible:
1) A Certification of Project Completion.
2) A Grant Closeout Agreement.
3) A final financial report giving the amount and types of project costs charged to the grant (that meet the allowability and allocability Page 8 FY 2024 COMMUNITY PROJECT FUNDING GRANT AGREEMENT NO. B-24-CP-CA- 0100 requirements of 2 CFR part 200, subpart E); a certification of the costs; and the amounts and sources of other project funds.
4) A final performance report providing a comparison of actual accomplishments with the objectives of the Project, the reasons for slippage if established objectives were not met and additional pertinent information including explanation of significant cost overruns.
5) A final property report, if specifically requested by HUD at the time of closeout.
16. Agreement Responsibility for Monitoring and Records HUD, the Office of the Inspector General (OIG), and the designated representatives of CITY, and other appropriate officials shall have access to all personnel records, management information, and fiscal data of SUBRECIPIENT and any agency or contractor with whom SUBRECIPIENT executes a subcontract necessary to carry out the Project for monitoring purposes. SUBRECIPIENT shall respond in a timely manner to all identified corrective action needs as a result of HUD, CITY, or other monitoring.
SUBRECIPIENT shall submit to CITY all required reports and monitoring corrective action plans on a timely basis, as delineated by CITY. Records shall be maintained as follows:
a) SUBRECIPIENT agrees to retain all pertinent records relating to the Grant or the Project, including financial records, until advised by CITY that further retention is unnecessary. Generally, records shall be retained for a period of three (3) years from the end of the fiscal year in which the last project covered by CITY’s annual agreement with HUD is completed. Records shall be open and available for inspection by auditors and/or other staff assigned by HUD and/or CITY during the normal business hours of
ITEM 16.2. ATTACHMENT 5
SUBRECIPIENT. If at the end of such four (4) year period (fiscal year plus three years), there is ongoing litigation, claims, negotiations, audit or other action involving SUBRECIPIENT’s or CITY’s records, which has started before expiration of the four (4) year period, SUBRECIPIENT will retain the records until the completion of the action and resolution of all issues which arise from it as stated in 2 CFR Part 200.334. b) Consistent with applicable state and local laws regarding privacy and obligations of confidentiality, SUBRECIPIENT must provide citizens with reasonable access to records on the past use of Grant funds.
c) Records for nonexpendable property shall be retained for a period of five (5) years after final disposition of the property, if applicable.
17. Inspection Rights
SUBRECIPIENT agrees to allow CITY to inspect the physical premises of any project(s) upon 24-hour advance notice.
18. Request for Technical Assistance
SUBRECIPIENT shall refer to the HUD grant officer, Njeri Santana-Carter/ [email protected], any regulatory or procedural questions regarding operation of its CPF PROGRAM and keep the designated CITY representatives informed of all communication. All formal requests for technical assistance to the CITY shall be submitted in writing. Requests should specify the problem area, particular assistance being requested and proposed solution if applicable. Informal questions regarding day- to-day program operation may be directed to the designated CITY representative.
19. Insurance
Prior to commencing performance of the services required by this Agreement, and at all other times this Agreement remains in effect, SUBRECIPIENT shall procure and maintain in full force and effect all of the insurance or self-insurance required by Exhibit B attached hereto and by this reference incorporated herein.
20. Hold Harmless
SUBRECIPIENT shall hold CITY and CITY’s officers, employees, agents and volunteers harmless and free from any and all claims, liabilities or expenses, including attorney’s fees, arising out of or relating to any negligent act, negligent omission, or other wrongful conduct related in any way to SUBRECIPIENT’S performance of its services pursuant to this Agreement. In the event CITY and/or any of CITY’s officers, employees, agents or volunteers are named in any lawsuit, or should any claim be made against it or any of them by lawsuit or otherwise arising out of or relating to such negligent act, negligent omission or other wrongful conduct, SUBRECIPIENT shall indemnify them for any judgment rendered against them, any sums paid out in settlement or otherwise, and all costs incurred by them in their defense, including, but not limited to attorney’s fees.
ITEM 16.2. ATTACHMENT 5
SUBRECIPIENT also understands and agrees that it is being employed to perform the services provided for by this Agreement because of SUBRECIPIENT’S professed expertise and experience in performing the services provided for under this Agreement.
In addition, SUBRECIPIENT understands and agrees that while CITY and CITY’s officers, employees, agents and volunteers, may elect to do so, they have no duty to review, inspect, or supervise the work performed by SUBRECIPIENT pursuant to this Agreement.
Therefore, SUBRECIPIENT waives any right of contribution or indemnity against CITY or any of CITY’s officers, employees, agents and volunteers arising out of such failure to inspect, review, monitor or supervise the work performed by SUBRECIPIENT pursuant to this Agreement.
21. Covenants and Conditions
Each term and each provision of this Agreement to be performed by SUBRECIPIENT shall be construed to be both a covenant and a condition.
22. Termination
a) Termination of Agreement for Convenience: This Agreement may be terminated by either party after thirty (30) days written notice of intention to terminate, setting forth the reasons and the effective date of such termination, provided, however, that no notice of termination given by SUBRECIPIENT shall be effective unless HUD has agreed to release CITY from its obligations pursuant to the Program Activity(ies).
Alternatively, this Agreement will automatically terminate if the United States Government terminates the Grant or terminates the Program Activity(ies) which is/are the subject of this Agreement.
b) Termination of Agreement for Cause: The parties understand that pursuant to CITY's execution of the HUD application, CITY assumed responsibility for the performance of the projects. If for any reason SUBRECIPIENT fails to fulfill in a timely and proper manner its obligations under this Agreement to undertake, conduct or perform the project(s) identified in this Agreement, or if SUBRECIPIENT violates any of the covenants, agreements, or stipulations of this Agreement, CITY shall have the right to terminate this Agreement by giving written notice of such termination and specifying the effective date thereof at least (5) days before the effective date of such termination.
Notwithstanding the above, SUBRECIPIENT shall not be relieved of liability to CITY for damages sustained by CITY by virtue of any payments to SUBRECIPIENT for the purpose of set-off until such time as the exact amount of damages due CITY from SUBRECIPIENT is determined.
SUBRECIPIENT hereby expressly waives any and all claims for damages for compensation arising under this Agreement except as set forth in this Section 22 in the event of such termination.
23. Effect of Termination
Upon termination, as stated in Section 3 or 22 of this Agreement, CITY shall be liable to SUBRECIPIENT only for work done by SUBRECIPIENT up to and including the
ITEM 16.2. ATTACHMENT 5
date of termination of this Agreement, unless the termination is for cause, in which event SUBRECIPIENT need be compensated only to the extent required by law.
24. Taxpayer Identification Number
SUBRECIPIENT shall provide CITY with a complete Request for Taxpayer Identification Number and Certification, Form W-9, as issued by the Internal Revenue Service.
25. Modification of Agreement
This Agreement may be modified only upon mutual written consent of CITY and SUBRECIPIENT.
26. Use of the term “CITY”
Reference to “CITY” in this Agreement includes CITY Manager, the designated CITY representative, or any authorized representative acting on behalf of CITY, except that any such individual shall not be held individually responsible for any duty or liability accruing to CITY due to this Agreement.
27. Notices
All notices given, or required to be given, pursuant to this Agreement shall be in writing and may be given by personal delivery or by U.S. mail. Notice sent by mail shall be addressed to each party’s designated representative as set forth above. When addressed in accordance with Section 7, such notice shall be deemed given upon deposit in the United States mail, postage prepaid. In all other instances, notices shall be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this Section.
28. Permits and Licenses
SUBRECIPIENT, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement.
29. Waiver
A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement whether of the same or different character.
30. Governing Law
ITEM 16.2. ATTACHMENT 5
The terms of this Agreement shall be interpreted according to the laws of the State of California. Should litigation occur, venue shall be in the Superior Court of Sacramento County.
31. Specific Conditions
SUBRECIPIENT agrees to the following specific conditions: NONE
32. Assignment
SUBRECIPIENT shall not assign its benefits and/or burdens under this Agreement without the express written approval of CITY, and any attempt by SUBRECIPIENT to assign those benefits or burdens without such written approval shall be null and void.
33. Integrated Agreement
This Agreement represents the entire Agreement between CITY and SUBRECIPIENT with respect to the subject matter set forth herein, and all preliminary negotiations and agreements are deemed a part of this Agreement. No verbal agreement or implied covenant shall be held to vary the provisions of this Agreement. This Agreement shall bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns.
34. Counterparts
This Agreement may be executed in one or more counterparts with each counterpart being deemed an original. No counterpart shall be deemed to be an original or presumed delivered unless and until the counterparts executed by the other parties hereto are in the physical possession of the counterpart(s) executed by the party or parties seeking enforcement thereof.
35. Authority to Execute
The person or person executing this Agreement on behalf of any party warrants and represents that he/she/they has/have the authority to execute this Agreement on behalf of their party and has/have the authority to bind their party to the performance of its obligations hereunder.
In Witness Whereof, the parties have signed this Agreement on the dates set forth below.
SIGNATURES ON FOLLOWING PAGE
ITEM 16.2. ATTACHMENT 5
SUBRECIPIENT:
Mercy Housing California, a California nonprofit public benefit corporation
By:
By:
Name:
Its:
CITY:
CITY OF RANCHO CORDOVA,
a California municipal corporation
By: _________________________ Micah Runner, City Manager
ATTEST:
By: __________________________ Stacy Leitner, CMC, City Clerk
APPROVED AS TO FORM:
By: ____________________________ Adam U. Lindgren, City Attorney
Attachments:
Exhibit A - Scope of Work
Exhibit B - Insurance Requirements
Exhibit C – Grant Award Letter
Exhibit D – Grant Agreement
Exhibit E – CPF Grant Guide
ITEM 16.2. ATTACHMENT 5
EXHIBIT A
SCOPE OF WORK
ITEM 16.2. ATTACHMENT 5
Scope of Work
The proposed project would construct a total of 70 units comprised of 58 one-bedroom units and 12 two-bedroom units. One unit would be reserved for the onsite manager, and 69 units would provide permanent supportive housing VASH-supported units for senior veterans aged 55+ experiencing homelessness. All units would include closets in the bedrooms, central air conditioning and heating, and kitchens equipped with a refrigerator, stove and hood, sink, cabinets, dishwasher, and garbage disposal. Communal laundry facilities are centrally located within the residential building.
Landscaping would feature drought tolerant plants and emphasize tree-shading of open space areas.
Mechanical equipment and HVAC units will be screened with either planting or fencing. The proposed project is on the former Mather Air Force Base directly south of the existing Mather Veterans Village Phase 1 and 3. The project would be constructed complimentary to the existing Phases 1 and 3 design directly across Schirra Ave. This includes constructing a 3,500 square foot community building which will house staff office spaces, a community kitchen and a large multipurpose space. Outdoor amenities would feature a large open courtyard and shared patio.
The CPF Grant funding will be used for hard construction costs including, but not limited to the following: site prep, grading, underground utilities, foundations & underground mechanical, electric, plumbing, slab on grade, exterior framing, roofing, doors, windows, interior framing, rough mechanical, electrical, plumbing & fire, drywall, painting, grading, trenching and footings for parking lot, sidewalks, site lighting, shade structures and irrigation, finished paving and sidewalks, finished landscaping, site lighting and irrigation, building finishes, interior casework.
ITEM 16.2. ATTACHMENT 5
EXHIBIT B
INSURANCE REQUIREMENTS
Throughout the term of this Agreement, Borrower shall obtain and maintain, at Borrower’s expense, the following policies of insurance.
A. Liability Insurance. Commercial general liability insurance on an “occurrence basis” covering all claims with respect to injury or damage to persons or property occurring on, in or about the Property and the Improvements. The limits of liability under this Paragraph B shall be not less than Two Million Dollars ($2,000,000) combined single limit per occurrence, with a deductible no greater than Ten Thousand Dollars ($10,000) or such higher deductible as may be approved by City, which approval shall not be unreasonably withheld.
B. Worker’s Compensation Insurance. Worker’s compensation insurance, in the amount required under then applicable state law, covering Borrower’s employees, if any, at work on the Predevelopment Work or engaged in services or operations in connection with the Project or the Property. Borrower shall require that any contract entered into by Borrower with regard to work to be undertaken on the Property include a contractual undertaking by the contractor to provide worker’s compensation insurance for its employees in compliance with applicable state law.
C. General Insurance Provisions.
1. All policies of insurance provided for in this Exhibit shall be provided under valid and enforceable policies, in such forms and amounts as hereinbefore specified, issued by insurers licensed to do business in the State of California (or approved to do business in California and listed on the California Department of Insurance list of Eligible Surplus Lines Insurers or successor listing) and having a rating of A-VII or better in Best Insurance Guide or, if Best Insurance Guide is no longer in existence, a comparable rating from a comparable rating service. Borrower shall deliver to City certificates evidencing the insurance required to be carried by Borrower under this Exhibit E. If requested by City, Borrower shall deliver within ten (10) days following such request, certified, complete copies of the insurance policies required hereunder.
2. Each policy of insurance obtained pursuant to this Agreement, other than worker’s compensation insurance, shall contain endorsements which provide:
a) A waiver by the insurer of the right of subrogation against City for negligence of the City,
b) A statement that the insurance shall not be invalidated should any insured waive in writing prior to the loss any or all right of recovery against any party for loss accruing to the property described in the insurance policy, and
ITEM 16.2. ATTACHMENT 5
c) A provision that no act or omission of Borrower which would otherwise result in forfeiture or reduction of the insurance therein provided shall affect or limit the obligation of the insurance company to pay the amount of any loss sustained.
d) By endorsements, City, and its elected and appointed officials, officers, employees and agents shall be named as additional insured under the liability insurance required to be maintained by Borrower hereunder.
City shall be named as loss payee on the property insurance policies required to be maintained hereunder.
3. Each policy required hereunder shall include a Notice of Cancellation or Change in Coverage Endorsement which shall provide that such policy shall not be cancelled or materially changed without at least thirty (30) days’ prior written notice by registered or certified mail to City.
4. All insurance policies shall provide that there shall be no exclusion from coverage for cross liability among the listed insureds.
5. Each policy shall contain an endorsement that provides that the insurance applies separately to each insured that is seeking coverage or against whom a claim is made, except with respect to the limits of liability
6. Each policy shall be written as a primary policy not contributing with and not in excess of coverage that City may carry.
7. Each policy shall expressly provide that City shall not be required to give notice of accidents or claims and that City shall have no liability for premiums.
D. Blanket Policies. Any insurance provided for in this Exhibit E may be placed by a policy or policies of blanket insurance; provided, however, that such policy or policies provide that the amount of the total insurance allocated to the Property and the Project shall be such as to furnish protection the equivalent of separate policies in the amounts herein required, and provided further that in all other respects any such policy or policies shall comply with the other provisions of this Agreement.
E. Waiver of Subrogation. To the extent permitted by law and the policies of insurance required to be maintained hereunder, and without affecting such insurance coverage, City and Borrower each waive any right to recover against the other:
1. Damages for injury or death of persons,
2. Damage to property,
3. Damage to the Property or the Improvements or any part thereof, or
4. Claims arising by reason of any of the foregoing, to the extent that such damages and/or claims are covered (and only to the extent of such coverage) by insurance actually carried by either City or Borrower.
ITEM 16.2. ATTACHMENT 5
This provision is intended to restrict each party (as permitted by law) to recover against insurance carriers to the extent of such coverage, and waive fully, and for the benefit of each, any rights and/or claims which might give rise to a right of subrogation in any insurance carrier.
Compliance with Policy Requirements. Borrower shall observe and comply with the requirements of all policies of public liability, fire and other policies of insurance at any time in force, and Borrower shall so perform and satisfy the requirements of the companies writing such policies that at all times companies of good standing shall be willing to write or to continue such insurance.
ITEM 16.2. ATTACHMENT 5
EXHIBIT C
Award Letter
ITEM 16.2. ATTACHMENT 5
EXHIBIT D
Grant Agreement
ITEM 16.2. ATTACHMENT 5
EXHIBIT E
Community Project Funding Grant Guide
1 MATHER VETERANS
VILLAGE PHASE 4
EXECUTION OF AGREEMENTS
CityOfRanchoCordova.org
ITEM 16.2.
ATTACHMENT 6
2 • Authorize a Purchase and Sale Agreement to transfer the MVV Phase 4 site to
Mercy Housing
• Authorize an Affordable Housing Agreement restricting the use of the proper
ty to very low income homeless and disabled veterans and homeless households
• Authorize a Community Project Fund (CPF) subrecipient agreement to prov
ide $1,000,000 of CPF funds to the MVV Phase 4 project
PURPOSE OF THIS ACTION
ITEM 16.2.
ATTACHMENT 6
3 Key project details:
• 70 units of multifamily
apart
ments
• 58 one-bedr oom, 12 two-
bedroom
• Homeless and disabled
vet
erans or homeless
families
• Senior veterans 62 and
older
a priority
• 50% Area Median Income
MVV PHASE 4 PROJECT OVERVIEW
North
ITEM 16.2.
ATTACHMENT 6
4 STAFF RECOMMENDATION
Staff recommends adopting the two Resolutions.
Next steps:
• Staff will work with Mercy Housing to execute the agreements • The project is anticipated to begin construction in late February 2026 • A groundbreaking ceremony is being planned, stay tuned for a save the date! ITEM 16.2.
ATTACHMENT 6
5 THANK YOU
QUESTIONS AND COMMENTS
CityOfRanchoCordova.org
ITEM 16.2.
ATTACHMENT 6
MEMORANDUM
City Council Staff Report - Page 1 of 1
ITEM 16.3.
DATE: January 5, 2026
TO: Honorable Mayor and Council Members
FROM: Anthony Adams
Sacramento Regional Transit Director of Planning
SUBJECT: HORN ROAD LIGHT RAIL STATION UPDATE AND REQUEST FOR
DESIGN INPUT
RECOMMENDATION
Receive presentation on Horn Road Light Rail Station from Sacramento Regional Transit (SacRT) and provide input.
RESULT OF RECOMMENDED ACTION
SacRT will incorporate input and proceed with final design.
BACKGROUND
Sacramento Regional Transit will present conceptual designs and layouts for the Horn Road Light Rail Station located on Folsom Boulevard near the intersection of Horn Road. The Project recently completed environmental review, has design fully funded, and SacRT is seeking funding to close the funding gap for construction. SacRT is seeking input from Council and the public to ensure the design meets community expectations. If funding is awarded in subsequent grants, the project is expected to begin construction in 2027 and be open for service in 2029.
FISCAL IMPACT AND FUNDING SOURCE
The project does not impact the city's General Fund.
ATTACHMENT(S)
1. Presentation
Horn Road Light Rail Station
January 5th, 2026
ITEM 16.3.
ATTACHMENT 1
Meeting Objectives
• Share Pro ject Status and Outreach to date with City/Public • Share Conceptual Design Schemes
• Previous Shelter Scheme Selection by City Council (2016) • Receive Input on Preferred Alternatives and Amenities ITEM 16.3.
ATTACHMENT 1
Outreach Summary – November 19th, 2025
Design & Aesthetics
• T here was a preference for large shelters (Scheme D1) for shade and rain protection. • Interest in natural aesthetic enhancements such as plantings/ivy, murals, and integrated artwork. • Trees and greenery preferred if maintained; xeriscape (low maintenance) as alternative. • Clock tower only if functional and multi-purpose. Additional costs would be a concern.
Safety & Comfort
• Station must be safe (increased security), clean, well-lit, and convenient. • Windbreak elements suggested.
Connectivity & Functionality
• Smaller station expected (no park-and-ride); buses will continue with route adjustments.
Community Concerns & Preferences
• Concern of overspending on low-use stations.
• Shade is critical due to summer heat.
General comments regarding light rail stations
• Likes: Glenn Station (bike access), Historic Folsom (community feel), LA Metro (security). • Dislikes: Some stations are perceived as unsafe or underused. • Prefer repurposing empty lots for cafés or food trucks.
ITEM 16.3.
ATTACHMENT 1
Project Status and Outreach
• Project S tatus
o 30% Plans
o Environmental Document
o Board Acceptance – Cat Ex 2018
o FTAApproval - Cat Excl 2023
o Final Design - Now
o Construction – Partially Funded
2028-2029
• Outreach with City/Public
o West-East Workshop – 1/27/15
o Design Workshop – 2/20/15
o Public Image Workshop – 4/15/15
o Concept Briefing with City/SacRT – 9/18/15
o City Council Meeting – 10/5/15
ITEM 16.3.
ATTACHMENT 1
Site Layout and Design Elements
Site Layout
• Gold Line Extension
• Raised Platform - Low Floor Vehicles
• Bus Stop and Kiss-and-Ride
• City’s Complete Streets Project
• Kassis Development
Architectural Design
• Initial Shelter Concepts
• Conceptual Design Schemes C, D, and E
ITEM 16.3.
ATTACHMENT 1
Station Design Elements
• Raised P latform - Low Floor Vehicles
• Bus Stop and Kiss-and-Ride
• Shelters, Benches, Lockers
• EMS, Smart-Card Reader
• Unique Design
• Landscaping
ITEM 16.3.
ATTACHMENT 1
Site and Context
• Neighborhood ove rview
• Roadways and streetscape
i
mprovements
• Library, Former Winery
• Restaurant, Of fice Park
• Kiyo’s tree
• Exi
sting adjac ent stations
ITEM 16.3.
ATTACHMENT 1
Site and Context
ITEM 16.3.
ATTACHMENT 1
Integration of Art
• Benches
• S
helters
• Fencing
• Screens/Shade
• Lighting
ITEM 16.3.
ATTACHMENT 1
Integration of Landscaping
• Scale-T ransition
• Buffer/Screening
• Shade
• Space Def inition
• Sustainable Des ign
ITEM 16.3.
ATTACHMENT 1
Conceptual Design
Township 9
Site Context and Scale
• Boulevard Scale
• Economics/Design Strategy
Broadway Station
larger scale
ITEM 16.3.
ATTACHMENT 1
Conceptual Design
Site Context and Scale
• Boulevard Scale
• Economics/Design Strategy
smaller scale
ITEM 16.3.
ATTACHMENT 1
Scheme C - Conceptual Site Plan
ITEM 16.3.
ATTACHMENT 1
Scheme C – Precedent Images
39th Street Station
ITEM 16.3.
ATTACHMENT 1
Scheme C – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme C – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme C – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme C – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme D – Conceptual Site Plan
ITEM 16.3.
ATTACHMENT 1
Scheme D – Precedent Images
Township 9 Station
ITEM 16.3.
ATTACHMENT 1
Scheme D – Precedent Images
Train Shed
Broadway Station
ITEM 16.3.
ATTACHMENT 1
Scheme D – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme D – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme D – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme D – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme D1 – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme D1 – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme E – Conceptual Site Plan
ITEM 16.3.
ATTACHMENT 1
Scheme E – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme E – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme E – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Scheme E – Conceptual Design
ITEM 16.3.
ATTACHMENT 1
Comparative Views
Scheme C Scheme D
Scheme E Scheme D1
ITEM 16.3.
ATTACHMENT 1
Comparative Views
Scheme C Scheme D
Scheme E Scheme D1
ITEM 16.3.
ATTACHMENT 1
Comparative Views
Scheme C Scheme D
Scheme E Scheme D1
ITEM 16.3.
ATTACHMENT 1
Questions & Answers
ITEM 16.3.
ATTACHMENT 1
ITEM 16.3.
ATTACHMENT 1
ITEM 16.3.
ATTACHMENT 1
MEMORANDUM
City Council Staff Report - Page 1 of 2
ITEM 16.4.
DATE: January 5, 2026
TO: Honorable Mayor and Council Members
FROM: Adam Lindgren, City Attorney
SUBJECT: A RESOLUTION APPROVING AN INCENTIVE PAYMENT FOR 2025
PERFORMANCE AND A SALARY INCREASE FOR MICAH RUNNER
FOR SERVICE AS CITY MANAGER, AND ADJUSTING THE FULL
TIME EMPLOYEE SALARY SCHEDULE FOR THE POSITION OF CITY
MANAGER
RECOMMENDATION
Receive oral report summarizing the proposed changes to the City Manager's pay and benefits and adopt the Resolution.
RESULT OF RECOMMENDED ACTION
Adoption of the Resolution would authorize payment of a 5% ($14,635) performance incentive payment to City Manager Micah Runner based on his 2025 performance, increase his annual salary by $25,305 to $318,000 ($26,500 per month), and update the Full Time Employee Salary Schedule for the position of City Manager to $26,500 per month.
BACKGROUND
Micah Runner has served as the City Manager for the City of Rancho Cordova since December 2022. The City Council conducted closed sessions to evaluate Mr. Runner's performance, and to receive information and provide direction regarding his salary and benefits package. The City Council determined that the City Manager's overall performance in 2025 was very positive.
Consistent with the terms of the City's employment agreement with the City Manager, the Resolution before the City Council would approve a 5% performance incentive payment ($14,635) to be paid immediately based on the City Council's conclusion that Mr. Runner received a very positive 2025 performance review and succeeded in achieving the specific objectives previously established by the City Council. The Resolution would also increase the City Manager’s base salary by $25,305 per year from $292,695 to $318,000 ($26,500 per month), and update the Full Time Employee Salary Schedule for the position of City Manager to $26,500 per month. The new City Manager’s salary is 3.3% above the median and 2.1% below the average of the eleven Sacramento regional City Manager comparison group.
Before taking final action, the City Council would orally report a summary of the recommended actions on City Manager pay and benefits during this open session of a regular City Council meeting.
City Council Staff Report - Page 2 of 2
FISCAL IMPACT AND FUNDING SOURCE
The ongoing fiscal impact will be $25,305 plus the cost of additional CalPERS retirement and insurance benefits in the approximate amount of $4,625, plus a one-time fiscal impact of $14,635 for the performance incentive payment. The City Manager's salary and benefits are paid by the city's General Fund.
ATTACHMENT(S)
1. Resolution
2. Exhibit A to the Resolution - City Manager Salary Schedule
ITEM 16.4. ATTACHMENT 1
Resolution No. XX-2026 Page 1 of 2
CITY OF RANCHO CORDOVA
RESOLUTION NO. XX-2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA, APPROVING AN INCENTIVE PAYMENT FOR 2025 PERFORMANCE AND
A SALARY INCREASE FOR MICAH RUNNER FOR SERVICE AS CITY MANAGER, AND
ADJUSTING THE FULL TIME EMPLOYEE SALARY SCHEDULE FOR THE POSITION OF
CITY MANAGER
WHEREAS, Micah Runner has served as City Manager for the City of Rancho Cordova since December of 2022; and
WHEREAS, the City Council approved an employment agreement (“Agreement”) with Micah Runner (“City Manager”) on December 19, 2022; and
WHEREAS, Section II.A.1 of his Agreement allows up to a 5% performance incentive benefit, in addition to his salary; and
WHEREAS, the City Council conducted a performance evaluation of City Manager in closed session at its December 9, 2025 meeting, and reported out of closed session that the City Manager’s overall performance in 2025 was a very positive annual review; and
WHEREAS, the City Council met in closed session on December 15, 2025, to conduct labor negotiations related to the City Manager; and
WHEREAS, following the performance review and labor negotiations, the City Council directed that an item be placed on the City Council agenda for the Council to consider awarding the City Manager the maximum performance incentive pay of five percent (5%) available for 2025 based on his performance, as demonstrated by his success in meeting the specific objectives established by the City Council, and increasing Mr. Runner’s salary by $25,305 per year to $318,000 per year which is $26,500 per month; and
WHEREAS, this Resolution would adjust the adopted Full Time Employee Salary Schedule most recently approved on June 2, 2025, by Resolution No. 55-2025 to increase the identified City Manager monthly salary from $24,391 per month to $26,500 per month.
NOW THEREFORE BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA as follows:
1. City Manager, Micah Runner, shall be awarded a performance incentive for his positive 2025 performance in the amount of $14,635.
2. Section II.A.1 of the “Employment Agreement with City Manager and City of Rancho Cordova” between the City of Rancho Cordova and Micah Runner entered into on December 19, 2022, is amended, effective January 1, 2026, to state:
“The City Manager shall be paid a monthly salary of Twenty-Six Thousand Five Hundred Dollars which amount is Step E in the Salary Range Table as adopted by Resolution ___ - 2026. This constitutes “Base Salary.”
ITEM 16.4. ATTACHMENT 1
Resolution No. XX-2026 Page 2 of 2
3. The adopted Full Time Employee Salary Schedule most recently approved on June 2, 2025, by Resolution No. 55-2025 is hereby adjusted to increase the identified City Manager monthly salary from $24,391 per month to $26,500 per month as identified in Exhibit A hereto.
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova this 5th day of January 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________
Garrett Gatewood, Mayor
ATTEST:
Stacy Leitner, CMC
City Clerk
Fiscal Year 2025/2026
(Effective 1/1/2026)
Classification Step A
Hourly
Step A Bi-
Weekly
Step A
Monthly
Step A1
Hourly
Step A1
Bi-
Weekly
Step A1
Monthly
Step B
Hourly
Step B Bi-
Weekly
Step B
Monthly
Step B1
Hourly
Step B1
Bi-
Weekly
Step B1
Monthly
Step C
Hourly
Step C Bi-
Weekly
Step C
Monthly
Step C1
Hourly
Step C1
Bi-
Weekly
Step C1
Monthly
Step D
Hourly
Step D Bi-
Weekly
Step D
Monthly
Step D1
Hourly
Step D1
Bi-
Weekly
Step D1
Monthly
Step E
Hourly
Step E Bi-
Weekly
Step E
Monthly
Proposed
Annual
Salary
City Manager (1/1/2026 -
12/31/2026)
26,500.00$ $ 318,000.00
Resolution 55-2025; effective 6-22-2025
Resolution 75-2020; effective 7-1-2020
Resolution 80-2021; effective 6-27-2021
Resolution 122-2022; effective 6-26-2022
Resolution 65-2023; effective 6-25-2023
Resolution 119-2024; effective 7-7-2024
Resolution 99-2015; retroactively effective 7-1-15
Resolution 87-2017; retroactively effective 7-1-2016
Resolution 87-2017; effective 7-1-2017
Resolution 144-2018; effective 7-1-2018
Resolution 141-2019; effective 7-1-2019
Revision Summary
Resolution 47-2012; effective 6-1-2012
Resolution 103-2012; retroactively made effective 7-1-2011 Resolution 63-2013; effective 7-1-2013
Resolution 62-2014; retroactively effective 7-1-13
negotiated by
City Council
.
Note: In accordance with Resolution #103-2012 and 20-2004, the City Manager is authorized to make title, salary range and classification changes during the fiscal year.
ITEM 16.4.
ATTACHMENT 2
Exhibit A to the Resolution