Agenda packet — Rancho Cordova City Council, August 17, 2026 (part 2 of 3)

ITEM 9.8. 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, DESIGNATING A TIME AND PLACE FOR HEARING PROTESTS IN

CONNECTION WITH THE ANNUAL STORMWATER UTILITY FEE FOR THE RANCHO CORDOVA DOUGLAS 103 SUBDIVISION PROJECT

WHEREAS, the Stormwater Utility Fee was established on September 2, 2014 by Ordinance No. 7-2014 to fund services and facilities furnished by the city in connection with its storm drain system. The Proposed Stormwater Utility Fee may be billed through the County Utility Billing Service (CUBS) as part of the consolidated utility bill or may be collected on the County of Sacramento tax roll, commencing in Fiscal Year 2026-2027, in the same manner, by the same persons, and at the same time as, together with and not separately from, the general taxes of the city in the manner prescribed by Sections 5471 et seq. of the California Health and Safety Code; and

WHEREAS, this Council has caused a written report entitled, "Rate Analysis Report", dated August 7, 2014, (the "Written Report") prepared by Harris & Associates and filed with the City Clerk containing a description of each parcel of real property within the city to which the Proposed Stormwater Utility Fee is applicable collectively, the "Identified Parcels") and the amount of the Proposed Stormwater Utility Fee for each such Identified Parcel for Fiscal Year 2014-15. The Written Report is on file in the office of the City Clerk and is available for public inspection; and

WHEREAS, Article XIII D of the California Constitution and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750, et seq.) (the "Implementation Act") imposes certain procedural and substantive requirements relating to the imposition of property- related fees and charges (as defined in Article XIII D), such as the Proposed Stormwater Utility Fee, including the requirement to conduct a protest hearing and balloting for consideration of the Proposed Stormwater Utility Fee. In accordance with Article XIII D and the Implementation Act, the City Council hereby approves the "Procedures for the Conduct of a Protest Hearing and Balloting Relating to a Proposed Stormwater Utility Fee" as set forth in Exhibit A and incorporated herein by reference (the "Procedures"); and

WHEREAS, this Council has received petitions and waivers from the owners of 100% of the area of land proposed to be included in the Proposed Stormwater Utility Fee in which the Petitioner has waived all notices of hearings and all published notices regarding the establishment of the stormwater utility fee, notices of election, and applicable waiting periods.

NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA as follows:

1. The foregoing recitals are true and correct and incorporated herein.

2. Notice is hereby given that the City Council designates Tuesday, September 8, 2026, at the hour of 5:30 p.m., in the Council Chambers, City Hall, 2729 Prospect Park Drive, Rancho Cordova, California, as the time and place for a public hearing on the above-described written report and protests or objections to the imposition of the proposed Stormwater Utility Fee. At

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ITEM 9.8. ATTACHMENT 1 Resolution No. XX-2026 Page 2 of 2 the above-described public hearing, all interested persons shall be afforded the opportunity to hear and be heard, and the City Council shall consider all protests against the Proposed Stormwater Utility Fee. If written protests against the Stormwater Utility Fee are presented by a majority of owners of the Identified Parcels, the city shall not impose the Proposed Stormwater Utility Fee. In the absence of a majority protest, the City Council may submit the Proposed Stormwater Utility Fee to a vote of the property owners in accordance with Article XIII D of the California Constitution.

3. The City Clerk is hereby authorized and directed to give notice of the above-described public hearing in accordance with law and the Procedures.

4. Reference is hereby made to the Written Report described in Section 2, which is on file in the office of the City Clerk, for a full and detailed description of the Proposed Stormwater Utility Fee upon parcels of land within the city.

5. The City Council hereby designates Khaliq McClean, Associate Civil Engineer, telephone number, (916) 851-8708 to answer inquiries regarding the public hearing, protest proceedings and procedural or technical matters.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 17th day of August 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

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EXHIBIT "A"

PROCEDURES FOR THE CONDUCT OF A

PROTEST HE ARING AND VOTE RELATING TO A PROPOSED

STORMWATER UTILITY FEE
The following Procedures have been adopted by the City Council of the City of Rancho Cordova for the purpose of conducting a pro test hearing required by Article XIII D of the California Constitution for consideration of the imposition of a proposed Stormwater Utility Fee (the "Proposed S tormwater Utility Fee”).

TABLE OF CONTENTS
A. Rate Analysis Report
B. Notice of the Public Hearing on the Proposed Stormwater Utility Fee C. Eligibility to File a Protest
D. Submission of Written Protests
E. Conduct of the Public Hearing; Determination of A Majority Protest F. Conduct Property Owner Vote; Determination of a Majority Protest

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A. Rate Analysis Report
The City shall cause to be prepared a written report (" Rate Analysis Report"), which shall contain a list of all parcels to which the Proposed Stormwater Utility Fee will apply (the "Identified Parcels") and the amount of the Proposed Stormwater Utility Fee for each Identified Parcel for Fiscal Year 2026-2027.

The Rate Analysis Report shall be placed on file in the office of the City Clerk prior to the mailing of the Notice of Public Hearing on the Proposed Stormwater Utility Fee and shall remain available for public inspection.

B. Notice of the Public Hearing on the Proposed Stormwater Utility Fee Notice of the public hearing on the Proposed Stormwater Utility Fee shall be sent, postage prepaid, by first class mail at least forty -fi ve (45) days prior to the date set for the public hearing to the Record Owner of each Identified Parcel. The forty -five (45) day requirement may be waived with the unanimous consent of the property owners.

ITEM 9.8.

ATTACHMENT 2
Exhibit A to the Resolution

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"Record Owner" means the owner of an Identified Parcel whose name and address appears on the last acramento County equalized secured property tax assessment roll (the "Assessment Roll"), or in the case of any public entity, the State of California, or the United States, means the representative of that public entity at the address of that entity known to the City.

Notices shall be mailed to the Record Owners of the Identified Parcels, addressed to the names and addresses as they appear on the Assessment Roll, and, in the case of any public entity, the State of California, or the United States, addressed to the public entity at the address of that entity known to the City. In addition, notices shall be mailed to owners of the Identified Parcels, addressed to the names and addresses known to the City Clerk, if different than shown on the Assessment Roll.

Each mailed notice shall contain all of the following:
· A reference to filing of the Rate Analysis Report;
· A reference to the proposed ordinance imposing the Proposed Stormwater Utility Fee and providing for the collection of the Fee on the County tax roll; · The amount of the Proposed Stormwater Utility Fee to be imposed upon the Identified Parcel covered by the notice;
· The basis upon which the amount of the Proposed Stormwater Utility Fee was calculated; · The reason for the Proposed Stormwater Utility Fee;
· A statement that the Proposed Stormwater Utility Fee may be collected as part of a consolidated utility bill via CUBS or on the County of Sacramento tax roll each year, commencing with Fiscal Year 2021-2022.
· The effect of a majority protest; and
· The date, time and location of a public hearing on the Proposed Stormwater Utility Fee.

The City Clerk, or the designee of the City Clerk, may certify the proper mailing of notices by an affidavit, which shall constitute conclusive proof of mailing in the absence of fraud.

Failure of any person to receive notice shall not invalidate the proceedings.

Notice of the filing of the Rate Analysis Report and the public hearing shall be published once a week for two successive weeks in the Grapevine Independent, with the first publication at least fourteen (14) days prior to the date of the public hearing, and with at least five (5) days intervening between the first and second publications. The published notice may be waived by unanimous consent of the property owners.

C. Eligibility to File a Protest
The As
sessment Roll shall be presumptive evidence of ownership of an Identified Parcel for protest purposes.

ITEM 9.8.

ATTACHMENT 2
Exhibit A to the Resolution

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If the owner of any Identified Parcel is not shown on the Assessment Roll, such owner may file a protest for such parcel by filing with the City Clerk a proxy from the Record Owner in a form satisfactory to the City Attorney or evidence of ownership satisfactory to the City Attorney. Any such proxy or evidence must be received by the City Clerk prior to the conclusion of the public hearing.

When an Identified Parcel is held by a partnership, as community property, in joint tenancy, or as a tenancy in common, any partner, spouse, joint tenant, or tenant in common, as the case may be, may file a protest for such parcel.

An executor, administrator, or guardian may file a protest for an Identified Parcel on behalf of the estate it represents. If such representative is shown on the Assessment Roll as paying taxes and assessments levied against the parcel, that fact shall establish the right of such representative to file the protest. If such representative is not shown on the Assessment Roll, the representative must file with the City Clerk written documentation satisfactory to the City Attorney establishing the legal representation. Any such documentation must be filed with the City Clerk prior to the conclusion of the public hearing.

When an Identified Parcel is held by a corporation or unincorporated association, a protest may be filed by any person authorized in writing by the board of directors or trustees or other managing body thereof to take such actions. The corporation or unincorporated association must file with the City Clerk written authorization satisfactory to the City Attorney. Any such written authorization must be filed with the City Clerk prior to the conclusion of the public hearing.

D. Submission of Written Protests
Written protests may be mailed (via U.S. mail) to the City Clerk at City Hall or delivered in person to the City Clerk at City Hall or at the public hearing.

No protests delivered via e-mail will be counted for purposes of determining whether a majority protest exists, but the City Council may, in its discretion, consider such protests in making determinations regarding the Proposed Stormwater Utility Fee Each written protest must identify the property covered by the protest and be signed.

No protest received after the close of the public hearing shall be counted in determining the existence of a majority protest. The last pick up by the City Clerk of protests mailed or delivered to City Hall will occur at 5:30 p.m. on the date scheduled for the public hearing. To ensure that protests which are mailed or delivered to City Hall are received by the City Clerk prior to the close of the public hearing, such protests must be received by the City Clerk at City Hall prior to 5:30 p.m. on the date scheduled for the public hearing. The City Clerk shall endorse on each written protest the date it is filed with the City. The City Clerk shall identify any protests which are received after the close of the public hearing.

Written protests may be withdrawn in writing at any time before the conclusion of the public hearing by the person who submitted the written protest.

For purposes of determining whether a majority protest exists, only one protest for each Identified Parcel will be counted.

ITEM 9.8.

ATTACHMENT 2
Exhibit A to the Resolution

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All written protests shall be considered public records.

E. Conduct of the Public Hearing; Determination of a Majority Protest

1. At the time, date and place fixed for the public hearing, the City Council shall:
(i) Conduct a public hearing pertaining to the Proposed Stormwater Utility Fee; (ii) Hear all persons interested in the matter of the Proposed Stormwater Utility Fee; and (iii) Receive all written communications regarding the Proposed Stormwater Utility Fee.

2. The public hearing may be continued from time to time, as the City Council determines is necessary to complete its consideration of the Proposed Stormwater Utility Fee.

3. If the City Council determines at the close of the public hearing that written protests have been presented, and not withdrawn, by a majority of owners of the Identified Parcels (i.e., there is a majority protest), the Proposed Stormwater Utility Fee shall not be approved.

4. If the City Council determines at the close of the public hearing that there is not a majority protest, the City Council may:
(i) Remedy and correct any clerical error in the Rate Analysis Report or otherwise modify the Rate Analysis Report; provided that any such modification or correction shall not result in a Proposed Stormwater Utility Fee for any Identified Parcel which is greater than the amount shown in the notice of the public hearing that was mailed to the Record Owner of the Identified Parcel;
(ii) Confirm the Rate Analysis Report, as originally filed or as amended in accordance with subparagraph (i), above;
(iii) Adopt a resolution calling for a property owner vote regarding the Proposed Stormwater Utility Fee.

F. Conduct Property Owner Vote: Determination of a Majority Consent Pursuant to Government Code Section 53755 .S(c), the proceedings described in this section shall not constitute an election or voting for purposes of Article II of the California Constitution or of the Elections Code.

An election on the Proposed Stormwater Utility Fee shall be sent, postage prepaid, by first class mail at least forty -five (45) days prior to the date set for the election to the Record Owner of each Identified Parcel. The forty-five (45) day requirement may be waived with the unanimous consent of the property owners.

Each mailed ballot shall contain all of the following:
• On the face of the envelope in which the notice of election and ballot are mailed, there shall appear in substantially the following form in no smaller than 16- point bold type:
"OFFICIALBALLOT ENCLOSED."
ITEM 9.8.

ATTACHMENT 2
Exhibit A to the Resolution

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• The ballot shall include the agency's address for return of the ballot , the date and location where the ballots will be tabulated, and a place where the person returning it may indicate his or her name, a reasonable identification of the parcel, and his or her support or opposition to the proposed fee. The ballots shall be tabulated in a location accessible to the public. The ballot shall be in a form that conceals its content once it is sealed by the person submitting it. The ballot shall remain sealed until the ballot tabulation commences.

No ballot received after the time of the ballot tabulation shall be counted in determining the existence of majority consent. The last pick up by the City Clerk of ballots mailed or delivered to City Hall will occur at 1:30 p.m. on the date scheduled for the election. To ensure that ballots which are mailed or delivered to City Hall are received by the City Clerk prior to the commencement of the ballot tabulation , such ballots must be received by the City Clerk at City Hall prior to 5 :30 p.m. on the date scheduled for the ballot tabulation. The City Clerk shall endorse on each ballot the date it is filed with the City. The City Clerk shall identify any ballots which are received after the commencement of the ballot tabulation.

An impartial person designated by the City who does not have a vested interest in the outcome of the proposed fee shall tabulate the ballots submitted in support of or opposition to the proposed fee. An impartial person includes, but is not limited to, the City Clerk. If the City uses City personnel for the ballot tabulation , or if the City contracts with a vendor for the ballot tabulation and the vendor or its affiliates participated in the research, design, engineering, public education, or promotion of the fee, the ballots shall be unsealed and tabulated in public view to permit all interested persons to meaningfully monitor the accuracy of the tabulation process.

The ballot tabulation may be continued to a different time or different location accessible to the public, provided that the time and location are announced at the location at whi ch the tabulation commenced and posted by the City in a location accessible to the public. The impartial person may use technological methods to tabulate the ballots, including, but not limited to, punchcard or optically readable (bar -coded) ballots. During and after the tabulation , the ballots and, if applicable, the information used to determine the weight of each ballot, shall be treated as public records, subject to public disclosure and made available for inspection by any interested person. The ballots shall be preserved for a minimum of two years, after which they may be destroyed.

Majority approval of the Record Owners shall exist if the number of valid ballots in favor of the fee exceeds the number of valid ballots in opposition to the fee.

At the time, date and place fixed for the ballot tabulation, the City Council shall direct the City Clerk to commence the ballot tabulation.

If there is no majority approval, the Stormwater Utility Fee shall not be imposed.

If majority approval exists, the City Council may impose the Stormwater Utility Fee pursuant to the Ordinance.

ITEM 9.8.

ATTACHMENT 2
Exhibit A to the Resolution

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Legend
Annexation Boundary
Parcel Boundary
APN
067-0040-026
APN
067-0040-017
APN
067-0040-018

DOUGLAS RD

AMERICANOS BLVD

CYPRESS GROVE DR

KNIGHTSBROOK AVE HEARST CASTLE WAY

BORDERLANDS
DR!

CITY OF RANCHO CORDOVA
ST

ORMWATER UTILITY FEE AREA
ANNEXATION 43
(DOUGLAS 103)
ITEM 9.8.

ATTACHMENT 3

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Used to update Protest Notice Rates for City
Max Rate for Max Rate for Max Rate for Max Rate for
FY 2026-27 FY 2025-26 FY 2024-25 FY 2023-24
CPI Max. Single Family Residential Parcels
Increase Rate 0.16 acres or less $162.77 $158.03 $154.33 $150.42 FY 2014-15 $114.63 0.17 - 0.25 acres $179.03 $173.82 $169.75 $165.45 FY 2015-16 $114.63 0.26 – 0.33 acres $191.27 $185.70 $181.35 $176.76 FY 2016-17 3.2% $118.29 0.34 – 0.50 acres $203.44 $197.52 $192.90 $188.02 FY 2017-18 3.5% $122.43 greater than 0.50 acres $203.44 $197.52 $192.90 $188.02 for the first .50 Acres FY 2018-19

2.9% $125.98 $101.70 $98.74 $96.43 $93.99 plus per acre over 0.50 acres FY 2019-20 4.5% $131.64 Multi-Family Residential Parcels FY 2020-21 2.5% $134.93 18 dwelling units per acre or less $1,424.54 $1,383.05 $1,350.64 $1,316.42 per Acre FY 2021-22 2.0% $137.62 Greater than 18 dwelling units $1,526.31 $1,481.86 $1,447.13 $1,410.46 per Acre FY 2022-23 4.2% $143.40 Commercial $1,526.31 $1,481.86 $1,447.13 $1,410.46 per Acre FY 2023-24 4.9% $150.42 Industrial $1,628.07 $1,580.66 $1,543.62 $1,504.51 per Acre FY 2024-25 2.6% $154.33 Schools $1,017.53 $987.90 $964.75 $940.31 per Acre FY 2025-26 2.4% $158.03 Private Recreation $508.73 $493.92 $482.35 $470.13 per Acre FY 2026-27 3.0% $162.77 Parks & Greenbelts $203.44 $197.52 $192.90 $188.02 per Acre Public Property $610.49 $592.71 $578.82 $564.16 per Acre All Urban Consumers, for the San Francisco-Oakland-Hayward Areas Change from Dec to Dec See the separate tab for "The Ranch" Rate Calcs by Consumer Price Index (CPI) increases
FY 2026-27 CPI WORKSHEET
Maximum Assessment Rate Calculation
Stormwater Utility II (SWU2) Fee
ITEM 9.8.

ATTACHMENT 4

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CPI Increase
Original
Max. Rate
The Ranch -
Rate w/
private
facilities
removed CPI I ncrease
The Ranch - MFR1 Rate
per Acre
FY 2014-15 $114 .63 $26.67 FY 2014-15 $250.06
FY 2015-16 $1 14.63 $26.67 FY 2015-16 $250.06
FY 2016-17 3.2 % $118.29 $27.52 FY 2016-17 3.2% $258.06 FY 2017-18 3.5 % $122.43 $28.48 FY 2017-18 3.5% $267.09 FY 2018-19 2.9 % $125.98 $29.30 FY 2018-19 2.9% $274.83 FY 2019-20 4.5 % $131.64 $30.61 FY 2019-20 4.5% $287.19 FY 2020-21 2.5 % $134.93 $31.37 FY 2020-21 2.5% $294.36 FY 2021-22 2.0 % $137.62 $31.99 FY 2021-22 2.0% $300.24 FY 2022-23 4.2 % $143.40 $33.33 FY 2022-23 4.2% $312.85 FY 2023-24 4.9 % $150.42 $34.96 FY 2022-23 4.9% $328.17 FY 2024-25 2.6 % $154.33 $35.86 FY 2024-25 2.6% $336.70 FY 2025-26 2.4 % $158.03 $36.72 FY 2025-26 2.4% $344.78 FY 2026-27 3.0 % $162.77 $37.82 FY 2026-27 3.0% $355.12 Reduced Stormwater Utility II (SWU2 Reduced) Fee
ITEM 9.8.

ATTACHMENT 4

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Used to update Protest Notice Rates for City
Max Rate for Max Rate for Max Rate for Max Rate for
FY 2026-27 FY 2025-26 FY 2024-25 FY 2023-24
CPI Max. Single Family Residential Parcels
Increase Rate SFR1 $238.52 $231.58 $226.16 $220.43
FY 2022-23 $210.14 SFR2 $262.39 $254.75 $248.78 $242.48 FY 2023-24 4.9% $220.43 SFR3 $280.27 $272.11 $265.74 $259.01 FY 2024-25 2.6% $226.16 SFR4 $298.17 $289.49 $282.71 $275.55 FY 2025-26

2.4% $231.58 SFR5 $372.82 $361.97 $353.49 $344.54
FY 2026-27

3.0% $238.52 Multi-Family Residential Parcels $2,236.37 $2,171.24 $2,120.36 $2,066.63 per Acre Commercial $2,236.33 $2,171.20 $2,120.32 $2,066.59 per Acre Industrial $2,385.43 $2,315.96 $2,261.68 $2,204.37 per Acre Schools $1,490.91 $1,447.49 $1,413.57 $1,377.75 per Acre Private Recreation $745.45 $723.74 $706.78 $688.87 per Acre Parks & Greenbelts $298.17 $289.49 $282.71 $275.55 per Acre Public Property $894.54 $868.49 $848.14 $826.65 per Acre All Urban Consumers, for the San Francisco-Oakland-Hayward Areas Change from Dec to Dec
Low Impact Development Stormwater Utility II
(SWU2 Enhanced) Fee
Maximum Assessment Rate Calculation
by Consumer Price Index (CPI) increases
FY 2026-27 CPI WORKSHEET
ITEM 9.8.

ATTACHMENT 4

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ITEM 9.8.

ATTACHMENT 5

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ITEM 9.8.

ATTACHMENT 5

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MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 9.9.

DATE: August 17, 2026

TO: Honorable Mayor and Council Members

FROM:

Albert Stricker, Public Works Director
Quoc Nham, Principal Civil Engineer
Khaliq McClean, Associate Civil Engineer

SUBJECT: A RESOLUTION APPROVING THE BOUNDARY MAP FOR THE DOUGLAS 103 SUBDIVISION PROJECT ANNEXATION TO THE CITY
OF RANCHO CORDOVA COMMUNITY FACILITIES DISTRICT NO.
2018-2 (COMMUNITY PLACES AND NEIGHBORHOOD GREENS)

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would approve Annexation Boundary Map No. 10 for the Douglas 103 Subdivision project to Community Facilities District No. 2018-2 (Community Places and Neighborhood Greens) and approve the recording of the Annexation Boundary Map and the Notice of Special Tax Lien.

BACKGROUND

On August 6, 2018, the city adopted a Resolution of Intention to establish a Community Facilities District (CFD) and Future Annexation Area for citywide maintenance of community places and neighborhood greens. The special tax contributes to the cost of the operation and maintenance of public improvements, including community plazas, neighborhood greens, and regional trails. On September 17, 2018, the city adopted the resolution forming CFD No. 2018-2 pursuant to the Mello-Roos Community Facilities Act of 1982 (State of California Government Code Section 5311 et seq.) (the “Act”). The action defining the Future Annexation Area for the District provided for a more efficient process for the annexation of property when the property owners have provided unanimous consent. Defining the Future Annexation Area provided the resolution of intention, noticing, and public hearing for the entire Future Annexation Area, so these steps do not need to be repeated for each annexation.

The annexation process for projects within the Future Annexation Area is streamlined to receiving a petition and waiver from the property owner(s), The City Council approving the Annexation Boundary Map by resolution, followed by the recording of the Annexation Boundary Map and Notice of Special Tax Lien by the City Clerk.

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City Council Staff Report - Page 2 of 2

DISCUSSION

The project included in this action was conditioned to annex to CFD No. 2018-2 to provide funding for maintenance of community places and neighborhood greens, including community plazas and bicycle trails, and to pay for the capital replacement of said facilities. In July 2026, the property owners signed a unanimous approval of the annexation to CFD No. 2018-2, Attachment 4. Adoption of the Resolution, Attachment 1, approves Annexation Boundary Map No. 10 for the Douglas 103 Subdivision project, Attachment 2, and directs the City Clerk to execute and record the Annexation Boundary Map and Notice of Special Tax Lien for the project, Attachment 3.

FISCAL IMPACT AND FUNDING SOURCE

This annexation has no impact on the city's general fund. Funds collected will be used for maintenance of community places and neighborhood greens.

ATTACHMENT(S)

1. Resolution

2. Exhibit A to the Resolution - Annexation Boundary Map

3. Exhibit B to the Resolution - Notice of Special Tax Lien

4. Exhibit C to the Resolution - Unanimous Approval

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ITEM 9.9. 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 BOUNDARY MAP FOR THE DOUGLAS 103

SUBDIVISION PROJECT ANNEXATION TO THE CITY OF RANCHO CORDOVA COMMUNITY FACILITIES DISTRICT NO. 2018-2 (COMMUNITY PLACES AND

NEIGHBORHOOD GREENS)

WHEREAS, the Conditions of Approval for the Douglas 103 Subdivision project require the property owner/applicant to participate in the provision of funding to provide fair share maintenance of Community Places and Neighborhood Greens associated with the project; and

WHEREAS, on August 6, 2018, the city adopted a Resolution of Intention to establish Community Facilities District No. 2018-2 (Community Places and Neighborhood Greens) (the “District”) and Future Annexation Area for maintenance of community places and neighborhood greens. On September 17, 2018, the city adopted a Resolution forming CFD No. 2018-2 pursuant to the Mello-Roos Community Facilities Act of 1982 (State of California Government Code Section 5311 et seq.) (the “Act”); and

WHEREAS, the action defining the Future Annexation Area for the District provided for a more efficient process for the annexation of property when the property owners have provided for their unanimous consent such that the annexation process for projects within the Future Annexation Area has been reduced to receiving a petition, consent and waiver from the property owner(s); and

WHEREAS, in July 2026, the property owner(s)s executed a unanimous approval form which irrevocably consents to and votes in favor of the annexation of the property to the District and the levy of the special tax on the property to finance the services of the CFD in accordance with the Rate and Method of the District Exhibit C; and

WHEREAS, in the case of annexation proceedings, pursuant to Streets and Highways Code Section 3110.5 a separate map of the area proposed to be annexed is required to be prepared and adopted; and

WHEREAS, city staff has caused to be prepared Annexation Boundary Map No. 10 for the property known as the Douglas 103 Subdivision project, Exhibit A attached hereto, for the annexation of the property to No. 2018-2 (Community Places and Neighborhood Greens).

NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA as follows:

1. The Council so finds and determines the above recitals are true and correct.

2. Council approves Annexation Boundary Map No. 10 and finds and determines that the territory shown in the Annexation Boundary Map is hereby added to and made a part of the District with full legal effect.

3. The City Clerk is directed to execute and record Annexation Boundary Map No. 10 in the

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ITEM 9.9. ATTACHMENT 1 Resolution No. XX-2026 Page 2 of 2 office of the County Recorder of Sacramento County not later than 15 days after the adoption of this resolution.

4. The City Council finds and determines that a special tax shall be levied within the Territory to be annexed and which special tax shall be the same as the tax to be levied within the District.

5. Collection of said tax shall commence in Fiscal Year 2026-2027, and the rate and method of apportionment of said tax shall be as set forth in the Resolution of Formation of the District.

6. The City Clerk is directed to execute and record a Notice of Special Tax Lien in substantially the same form as shown in Exhibit B attached hereto, in the office of the County Recorder of Sacramento County not later than 15 days after recordation of the Annexation Boundary Map No. 10.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 17th day of August 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

Page 171 of 340 ends

APN
067-0040-026
APN
067-0040-017
APN
067-0040-018

CANYONLANDS

DR AMERICANOS BLVD

KNIGHTSBROOK
AV
E

LA GRANADA WAY PIER VIEW WAY

GLASS BEACH DR

ROSILLA COAST LN

SALT POINT WAY

DAYLILY COAST LN

BORDERLANDS
DR

PAWCATUCK WAY

EL PORTAL WAY

OCEANVIEW DR
IVAN
WAY

KIBBIE LAKE WAY

MACKERRICHER WAY

HEARST CASTLE WAY

KATAHDIN
DR

CYPRESS GROVE DR

TOWER BEACH WAY
AMBRO
SIA
WAY

PAISLEYSHIRE WAY

NOBELTON WAYETOWAY WAY MONTBROOK WAY

PINOCHE PEAK WAY
BIG
MEADOW
WAY

MONTA UK WAY

SECURITY PARK DR

DOUGLAS RD

WHEATRIDGE
DR

BLUEBLANC WAY

QUANTUM WAY

CORDYLINE WAY

SEAHAVEN WAY

CARRIZO

PLAIN WAY

THORNTONHALL DR

QUICKSILVER DR

CUYAMACA CIR

PRESERVE WAY

QUARTER
DOME
CIR

AMENDED PROPOSED BOUNDARY MAP
1 1
!
Legend
Annexation Boundary

HARRIS & ASSOCIATES
101 PROGRESS, SUITE 250

IRVINE, CALIFORNIA
92618
800-827-4901

REFERENCE THE SACRAMENTO COUNTY ASSESSOR'S MAPS FOR A DETAILED DESCRIPTION OF PARCEL LINES AND DIMENSIONS

VICINITY MAP

ANNEXATION
LOCA
TION

SUNRISE BLVD

DOUGLAS RD

KIEFER BLVD

NIKE RD

GRANT LINE RD
US 50

WHITE ROCK RD

COUNTY OF SACRAMENTO, STATE OF CALIFORNIA

COMMUNITY F
ACILITIES DISTRICT NO. 2018-2
(COMMUNITY PLACES AND NEIGHBORHOOD GREENS)

PROPOSED BOUNDARY OF
ANNEXATION 10
(DOUGLAS 103) TO

CITY OF RANCHO CORDOVA
City of Rancho Cordova
Annexation 10 (Douglas 103)
Community Facilities District No. 2018-2
County of Sacramento, California
Sheet ____ of ____
1:6,000
FILED THIS ______ DA
Y OF ________________ 2026. AT THE HOUR OF ___________ O'CLOCK ____.M. IN BOOK _______ OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS PAGE NO. _____ IN THE OFFICE OF THE COUNTY RECORDER IN THE COUNTY OF SACRAMENTO, STATE OF CALIFORNIA.

DONNA ALLRED

COUNTY RECORDER OF THE COUNTY OF SACRAMENTO, CALIFORNIA BY: ___________________________________________________ DEPUTY
FILE: ___________________________________________________

COUNTY RECORDER'S FILING STATEMENT
I HEREBY CERTIFY THAT THE AREA SHOWN ON THIS MAP OF THE PROPOSED ANNEXATION 10 TO COMMUNITY FACILITIES DISTRICT NO. 2018-2, (COMMUNITY PLACES AND NEIGHBORHOOD GREENS), CITY OF RANCHO CORDOVA, COUNTY OF SACRAMENTO,

STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA AT A REGULARLY SCHEDULED MEETING THEREOF, HELD ON THE ____ DAY OF ______________ 2026. BY ITS RESOLUTION NO. _____________. _____________________________________________

CITY CLERK OF THE CITY OF RANCHO CORDOVA

CLERK'S MAP STATEMENT
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF RANCHO CORDOVA THIS ______ DAY OF ______________ 2026. _____________________________________________

CITY CLERK OF THE CITY OF RANCHO CORDOVA

CLERK'S MAP STATEMENT
ITEM 9.9.

ATTACHMENT 2
Exhibit A to the Resolution

Page 172 of 340 ends

RECORDING REQUESTED BY

AND WHEN
RECORDED RETURN TO:

City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, California 95670
Attention: City Clerk
____________________________________________________________________________

AMENDED NOTICE OF SPECIAL TAX LIEN
COMMUNITY FACILITIES DISTRICT NO. 2018-2
(COMMUNITY PLACES AND NEIGHBORHOOD GREENS)

OF THE CITY OF RANCHO CORDOVA
Pursuant to the requirements of Section 3114.5 of the Streets and Highways Code and Section 53328.3 of the Government Code, the undersigned clerk of the legislative body of the City of Rancho Cordova (the “City”), State of California, hereby gives notice that a lien to secure payment of special taxes is hereby imposed by the City Council of the City. The special taxes secured by this lien are authorized to be levied for the purpose of providing services as described in Exhibit A attached hereto and hereby made a part hereof.

The special taxes are authorized to be levied within Annexation Boundary Map No. 10 (the “Annexed Area”) of the City of Rancho Cordova Community Facilities District No. 2018-2 (Community Places and Neighborhood Greens) (the “District”), which has now been officially annexed to the District, and the lien of the special taxes are a continuing lien which shall secure each annual levy of the special taxes and which shall continue in force and effect until the special taxes cease to be levied and a notice of cessation of special taxes is recorded in accordance with Section 53330.5 of the Government Code.

The rate, method of apportionment, and manner of collection of authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. The obligation to pay the special tax may not be permanently satisfied by way of prepayment of the special tax and the lien of the special tax cannot be canceled in this manner.

Notice is further given that upon the recording of this notice in the office of the county recorder, the obligation to pay the special tax levies shall become a lien upon all nonexempt real property within the District in accordance with Section 3115.5 of the Streets and Highways Code.

The name of the owner and the assessor’s parcel number(s) of the real property included within the District and not exempt from the special tax are as set forth in Exhibit C attached hereto.

Reference is hereby made to the Notice of Special Tax Lien with respect to the District recorded on October 4, 2018, as Document No. 201810040991 page 15, in the office of the County Clerk & Recorder of the County of Sacramento, California, which contains a list of the then existing owners and assessor tax parcel numbers of the original boundaries of the District.

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 173 of 340 ends

Reference is made to the boundary map of the District recorded on A ugust 21, 2018, as Document No. 201808210674, at Book 126 of Maps of Assessment and Community Facilities Districts at Page No.19, in the office of the County Clerk & Recorder of the County of Sacramento, California, (the “ Original Boundary Map”), and the map of the Annexed Territory recorded at Book xxx, Page xx, Document No. xxxxxxxxxx in the Offi ce of the County Recorder for the County of Sacramento, State of California, which map together with the Original Boundary Map and the boundary maps of record for all prior annexations, are now the final boundary maps of the Community Facilities District including the Annexed Territory.

For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Department of Public Works of the City of Rancho Cordova, 2729 Prospect Park Drive, Rancho Cordova, California 95670, (916) 851-8710.

Dated: ___________________________ ___________________________________

CITY CLERK OF THE CITY OF

RANCHO CORDOVA

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 174 of 340 ends

CITY OF RANCHO CORDOVA
Community Facilities District No. 2018-2
(Community Places and Neighborhood Greens)

LIST OF FACILITIES AND SERVICES AUTHORIZED TO BE FUNDED The City of Rancho Cordova (the “City”) is establishing Community Facilities District No. 2018-2 ( Community Places and Neighborhood Greens) (the “CFD”) to fund, in whole or in part, the following facilities and services (the terms “facilities” and "services" shall have the meaning as given in the Mello -Roos Community Facilities Act of 1982.

AUTHORIZED FACILITIES
The C
FD is being established to fund the maintenance, operations, servicing, rehabilitation and replacement of CFD Facilities. The costs associated with the initial capital improvements required for the construction or installation of the Facilities are not included in the costs to be funded by the CFD. A general list of the Facilities to be operated, maintained and serviced by the CFD include:

1. Community Plazas. Community Plazas are a component of the Community Places category of City Open Space, as defined in the City’s Open Space Guidelines. Community Plazas are typi
cally located in Village and Town Centers to provide areas for congregation, socializing and community events/activities. Two Community Plazas are planned for the CFD.

Specific amenities will be determined on a site- by-site basis. Typical amenities may include, but are not limited to, expanded public gathering space; outdoor seating and shade structures; signage and lighting; trash and recycling receptacles; bicycle parking; features of interest such as fountains, art work, engaging landscapes and other unique structures/treatments; hardscape areas; and formal landscaping in planter boxes; and general landscaping elements including trees, shrubs, grasses, vines and ground covers.

2. Bicycle Trails. Bicycle Trails are a component of the Green Infrastructure category of City O
pen Space as defined in the City’s Open Space Guidelines. A system of Bicycle Trails, defined as the Class I Bicycle Trails East of Sunrise Boulevard in the City’s Bicycle Trails Master Plan, is planned for the CFD. This system of trails will have an estimated 250,530 linear feet of bicycle trails (over 47 miles) that will be a part of the City’s overall Bicycle Trail network.

Primary trails are 16’ in overall width (12’ of asphalt pavement with a 2’ shoulder on each side).

Primary trails are typically located within a corridor of at least 50 feet in width, with larger widths up to 100 feet encouraged. Corridors of less than 50 feet in width may be accepted based on the unique opportunities and constraints within a given development project.

Secondary trails feed into primary trails and provide connections to significant corridors and local trails. Secondary trails are 14’ in overall width (10’ of asphalt pavement with a 2’ shoulder ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 175 of 340 ends

on each side) and are typically located within a corridor of at least 35 feet in width, with larger widths encouraged.

Typical amenities for Bicycle Trails may include, but are not limited to, native and/or draught tolerant plants; railings and edge protections; grade separated crossings; signage and lighting; shade trees; and trailheads where trails begin or connect to other trails. Trailheads are small open space areas that may include benches; signage and lighting; trash and recycling receptacles; maps; and other elements to assist trail users.

3. Neighborhood Greens. Neighborhood Greens are the most commonly occurring component of the Community Places category of City Open Space, as defined in the City’s Open Space Guidelines. Neighborhood Greens are small-scale urban and suburban open spaces serving as places to meet, gather, socialize, commune with nature or otherwise participate in passive recreation activities. Neighborhood Greens are typically located in small developed and landscaped areas generally within residential neighborhoods in new development areas.

Specific amenities will be determined on a site-by -site basis. Typical amenities may include, but are not limited to, public gathering space; multi -purpose tables, benches and shade structures; signage and lighting; trash and recycling receptacles; water fountains, barbeque areas and bicycle parking; walking paths, including those with special paving materials; landscape areas and hardscape areas; and distinguished areas with a special design feature such as tree variety or other similar amenity.

4. Other Facilities. In addition to the facilities described above, the following features as described in the City’s Open Space Guidelines may be maintained by the CFD:

Community Places Green Infrastructure
Neighborhood Greens Pedestrian Trails
Town Greens Pedestrian Paseos
Community Gardens / Rose Gardens / Display
Gardens
Utility Easements
Water Resources / Streams / Ponds / Lakes Green Streets Community Wide Open Space Facilities Local Residential Street Landscape Enhancement
Outdoor Amphitheaters Enhanced Detention Basins / Drainage Ways Additionally, Facilities may include any other facilities permitted under the Mello-Roos Community Facilities Act of 1982, including the facilities described in Section 53313.5 of the California Government Code, as amended from time to time, provided that such facilities satisfy at least one of the following criteria: 1) augment, improve or expand existing CFD ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 176 of 340 ends

Facilities that are primarily for the benefit of the CFD; or 2) repair or rehabilitate existing CFD Facilities.

AUTHORIZED SERVICES
The CFD is being established to fund the cost of all authorized CFD Services which are to include, but are not limited to:

1. Capital Replacement. Capital Replacement includes any and all costs associated with repairing and replacing any of the Facilities described above.

2. Maintenance. Maintenance includes any and all costs associated with maintaining, operating and servicing all of the Facilities described above. This includes, but is not limited to the cost of labor, mechanical and automotive expenses, maintenance services, materials and supplies, water, electricity and other utilities, refuse collection, sewage disposal, security services or other costs incurred for the Facilities.

3. General CFD Costs. General Costs include any and all administrative costs associated with the CFD including, but not limited to, the costs of setting the annual levy and the collection of Special Taxes, such as county tax collection fees, consultant fees, legal fees and city staff costs.

Additionally, Services may include any other facilities permitted under the Mello-Roos Community Facilities Act of 1982, including the facilities described in Section 53313.5 of the California Government Code, as amended from time to time, provided that su ch services are related to at least one of the following criteria: 1) the augmentation, improvement or expansion of existing Facilities that are primarily for the benefit of the CFD; or 2) the reparation or rehabilitation of existing Facilities.

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 177 of 340 ends

EXHIBIT B

CITY OF RANCHO CORDOVA
Community Facilities District No. 2018-2
(Community Places and Neighborhood Greens)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL
TAX
A Special Tax as described herein and authorized under the Mello- Roos Community Facilities Act of 1982 (the “Act”) shall be applicable to parcels of land within the Community Facilities District No. 2018- 2 (Community Places and Neighborhood Greens) (the “C FD”) of the City of Rancho Cordova (the “City”), including any parcels of land subsequently annexed into the CFD unless a separate Rate and Method of Apportionment of Special Tax is adopted at the time of annexation. The Special Tax shall be levied and collected as determined by the City through the application of the Rate and Method of Apportionment as described below.

A. Definitions
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Age-Qualified Residential Parcel” means a Residential Parcel within an age- qualified community as defined in the Fair Housing Act of 1968 or the 1995 Housing for Older Persons Act including amendments to those Acts.
“Age-Qualified Multi- Family Residential Parcel” means a Multi -Family Residential Parcel that meets the criteria for an Age- Qualified Residential Parcel. “Age-Qualified Single Family Residential Parcel” means a Single Family Residential Parcel that meets the criteria for an Age- Qualified Residential Parcel. “Administrative Expenses” means the actual or reasonably estimated costs incurred by the City acting for and on behalf of the CFD as administrator thereof, to determine, levy and collect the Special Taxes, in responding to public inquiries regarding the Special Taxes, including sa laries of City employees and a proportionate amount of the City’s general administrative overhead related thereto; the fees of consultants and legal counsel providing services related to the administration of the CFD; any amounts estimated or advanced by the City or CFD for any other administrative purposes; and any other costs required to administer the CFD as determined by the City. “Annual Special Tax” means the total Special Tax levied against a Residential Parcel in the CFD in a Fiscal Year.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the County Assessor of the County designating lots or parcels by an Assessor’s Parcel Number.

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 178 of 340 ends

“Assessor’s Parcel Number” means the Assessor’s Parcel Number for any Parcel based on the County Assessor’s secured property tax roll as of July 1 of each Fiscal Year. “Authorized Facilities and Services” or “Facilities and Services” means the authorized facilities, maintenance activities and/or services, and expenses that may be funded by the CFD pursuant to the Act as amended, including, without limitation, the facilities and services authorized to be funded by the CFD as set forth in the documents adopted by the City Council at the time the CFD was formed. “Base Year” means the Fiscal Year beginning July 1, 2018 and ending June 30, 2019.
“Building Permit” means a building permit issued by the City prior to the June 30 preceding the Fiscal Year in which the Special Tax is being levied. “Capital Replacement Reserve Fund(s)” means a fund or funds that may be maintained for the CFD to provide for the accumulation and holding of funds for long- term capital projects, asset replacement, or other large anticipated expenditures. “CFD” or “CFD No. 2018 -2” means Community Facilities District No. 2018- 2 (Community Places and Neighborhood Greens) of the City of Rancho Cordova. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“City” means the City of Rancho Cordova.
“City Council” means the City Council of the City of Rancho Cordova, acting as legislative body of the CFD.
“County” means the County of Sacramento.
“Developed Residential Parcel” means any residential parcel for which a building permit has been issued by the City prior to the start of the current Fiscal Year. “Dwelling Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units.
“Final Subdivision Map” means a subdivision of property creating residential buildable lots by recordation of a Final Subdivision Map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursua nt to the California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to June 30 preceding the Fiscal Year in which the Special Tax is being levied. “Fiscal Year” means the period starting July 1 and ending the following June 30. “Maximum Annual Special Tax” means the Maximum Special Tax that may be levied against a Taxable Parcel in a Fiscal Year determined in accordance with Section C and Section D.
“Maximum Special Tax Rate” means the amount shown in Section C that is used in calculating the Maximum Annual Special Tax that may be levied on a Residential Parcel ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 179 of 340 ends

based on its residential land use and the number of residential Dwelling Units on the Parcel for a Fiscal Year.
“Multi-Family Residential Parcel” means a Residential Parcel with authorized residential use to consist of two or more for -rent Dwelling Units that share common walls, including, but not limited to, apartments and Residential Property that are not for sale to an end user and are under common management.
“Operating Reserve Fund” means a fund that may be maintained for the CFD each Fiscal Year to provide necessary cash flow to pay for the operation, maintenance and servicing of the CFD Facilities, Administrative Expenses and any other allowable CFD costs through the first six mont hs of each Fiscal Year, which is at or around the time in which the City will receive the first allocation from the County of the annual Special Tax levy. “Other Land Use Parcel” means a Taxable Parcel that does not have authorized residential use that is verified by issuance of a Building Permit for residential use, secured assessment roll classification for residential land use and assessed valuation that includes the improved value of residential Dwelling Unit(s) by the County Assessor, Final Subdivision Map or other authorization of the City or County allowing the Parcel to be used for residential purposes.
“Proportionately” means that the ratio of the Annual Special Tax to the Maximum Annual Special Tax is equal for all Taxable Parcels levied within the CFD. “Public Parcel” means any Parcel, in its entirety, that is or is intended to be publicly owned and is normally exempt from the levy of general ad valorem property taxes under California law, including, but not limited to, public streets, schools, parks, fire stations, police stations, and public drainage ways; public landscaping, wetlands, greenbelts, and public open space. These parcels are exempt from the levy of Special Taxes and classified as Tax-Exempt Parcels.
“Residential Parcel” means a Taxable Parcel that does have authorized residential use. A Residential Parcel is further classified as either a Single- Family Residential or a Multi-Family Residential Parcel depending on the type of residential use authorized for the Parcel. Once classified as a Residential Parcel, no Parcel shall be removed from the Residential Parcel classification unless the Building Permit or other authorization expires, is revoked, or is otherwise terminated.
“Resolution of Formation” means the City Council resolution establishing the CFD and authorizing the levy the Special Tax.
“Single-Family Residential Parcel” means a Residential Parcel with authorized residential use to consist of one Dwelling Unit that may or may not share common walls with one or more other Dwelling Unit(s), including, but not limited to, detached homes, duplexes, triplexes, townhomes, condominiums, and other Residential Parcels that are for sale to an end user and are not under common management. “Special Tax” means any Special Tax authorized to be levied in the CFD under the Act and the Resolution of Formation.
“Special Tax Requirement” means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs for the operation, maintenance and services of the Authorized Facilities and Services during such Fiscal Year based upon the ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 180 of 340 ends

service levels established at the time of formation or as may be amended by the City in the future, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish the Operating Reserve Fund, (iv) establish or replenish the C apital Replacement Reserve Fund(s), (v) pay incidental expenses related to the Authorized Facilities and Services as authorized pursuant to the Act, and less (vi) any excess funds available in the Operating Reserve Fund, the Capital Replacement Reserve Fun d(s), or other funds associated with the CFD as determined by the CFD Administrator. “Tax Escalation Factor” means an annual percentage increase equal to the greater of (i) the annual average Consumer Price Index (CPI), for San Francisco -Oakland-San Jose, All Urban Consumers (CPI -U) for the prior calendar year, or (ii) three percent (3%). If the CPI listed above is no longer published, the Administrator shall select a new tax escalation factor that is reasonably comparable to the CPI that is no longer published. “Taxable Parcel” means any Parcel that is not a Tax -Exempt Parcel. “Tax-Exempt Parcel” means a Parcel not subject to the Special Tax. Tax -Exempt Parcels are Public Parcels (subject to the limitations set forth in Section B), or privately owned Parcels that are non- developable, such as common areas, wetlands, and open space, all of which are exempt from the levy of Special Taxes as determined by the City. “Tax Zone” means one of two (2) mutually exclusive tax zones identified in Exhibit 1 of this Rate and Method of Apportionment, which may be updated to include new assessor’s parcels or new Tax Zones added to the CFD as a result of future annexations. “Tax Zone A” means the Tax Zone that includes parcels located in a development that has local neighborhood greens within such development that will be maintained by the City.
“Tax Zone B” means the Tax Zone that includes parcels located in a development that does not have local neighborhood greens within such development or has local neighborhood greens that will be maintained by an entity or agency other than the City. “Total Annual Special Tax” means the total of the Annual Special Taxes levied against all Residential Parcels in the CFD in a Fiscal Year. “Total Maximum Annual Special Tax” means the total of the Maximum Special Taxes that could be levied against all Residential Parcels in the CFD in a Fiscal Year. “Undeveloped Residential Parcel” means any residential parcel for which a building permit has not been issued by the City prior to the start of the current Fiscal Year.

B. Data Collection for the Annual Special Tax Levy
On July 1 of each Fiscal Year, commencing with the Base Year, the Administrator shall classify the Parcels in the CFD using the Definitions in Section A, the Parcel records of the Assessor’s secured property tax roll as of July 1 and other City or County development approval records as follows:
i. Each Parcel shall be assigned to either Tax Zone A or Tax Zone B; ii. Each Parcel shall be classified as a Taxable Parcel or a Tax-Exempt Parcel;
iii. Each Taxable Parcel shall be further classified as a Residential ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 181 of 340 ends

Parcel or an Other Land Use Parcel;
iv. Each Residential Parcel for shall be classified as a Single- Family Residential Parcel or a Multi -Family Residential Parcel; v. Each Residential Parcel that meets the criteria for an Age- Qualified Residential Parcel shall be further designated as either an Age- Qualified Single Family Residential Parcel or an Age-Qualified Multi- Family Residential Parcel
If a Tax-Exempt Parcel is converted to a Taxable Parcel as a result of the sale of a Tax-Exempt Parcel to a private owner for residential development, it shall become subject to the Special Tax.

Conversely, if a Taxable Parcel is converted to a Tax -Exempt Parcel as a result of either (i) the sale of the Taxable Parcel to a public entity, and such entity is normally exempt from the levy of general ad valorem property taxes under California law or ( ii) the inability of the private owner to develop the parcel as described in the definition of “Tax -Exempt Parcel,” it shall become a Tax -Exempt Parcel.

C. Maximum Special Tax Rates
The annual Maximum Special Tax Rates for Residential Parcels for Base Year 2018/19 are as follows:

Residential Land Use
Maximum Special Tax per Dwelling Unit
Tax Zone A Tax Zone B
Single Family Residential $115.84 $28.49
Active Adult Single Family
Residential Parcel
$78.54 $19.32
Multi-Family Residential
Parcel
$60.48 $14.88
Active Adult Multi -Family
Residential Parcel
$41.01 $10.09
For each Fiscal Year following the Base Year, each of the Maximum Annual Special Tax Rates shall be increased from the prior Fiscal Year’s respective Maximum Annual Special Tax Rates by multiplying such prior Fiscal Year Maximum Special Tax Rates by the Tax Escalation Factor.

The annual Maximum Special Tax Rates for Residential Parcels for Base Year 2025/26 CFD Zone A are as follows:

CFD ZONE A
1 ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 182 of 340 ends

Maximum Special Tax Per Dwelling Unit CFD 2018-2
Residential Use
Category
Community
Plazas
Bicycle Trails Neighborhood
Greens
Maximum
Special Tax per
Dwelling Unit 2
Single Family
Residential
$7.406 $29.099 $111.922 $148.42 per
Dwelling Unit
Active Adult
Single Family 3
$5.023 $19.730 $75.872 $100.62 per
Dwelling Unit
Multi-Family
Residential
$3.870 $15.202 $58.426 $77.49 per
Dwelling Unit
Active Adult
Multi-family3
$2.628 $10.292 $39.612 $52.53 per
Dwelling Unit

1. CFD Zone A includes all parcels within developments that include planned or installed local Neighborhood Greens.

2. Special tax rates with odd cents are rounded down by one penny to even cents when levied for collection in two equal installments.

3. Active adult single family and multi -family parcels are those parcels that are located, or are to be located, within an age - restricted community designed for people who are 55 years of age or older. See "Age Qualified Single Family" and "Age Qualified Multi- Family" in the RMA.

The annual Maximum Special Tax Rates for Residential Parcels for Base Year 2025/26 CFD Zone B are as follows:

CFD ZONE B4
Maximum Special Tax Per Dwelling Unit CFD 2018-2
Residential Use
Category
Community
Plazas
Bicycle Trails Neighborhood
Greens
Maximum
Special Tax per
Dwelling Unit 2
Single Family
Residential
$7.406 $29.099 N/A $36.50 per
Dwelling Unit
Active Adult
Single Family 3
$5.023 $19.730 N/A $24.75 per
Dwelling Unit
Multi-Family
Residential
$3.870 $15.202 N/A $19.07 per
Dwelling Unit
Active Adult
Multi-family3
$2.628 $10.292 N/A $12.91 per
Dwelling Unit

1. CFD Zone A includes all parcels within developments that include planned or installed local Neighborhood Greens.

2. Special tax rates with odd cents are rounded down by one penny to even cents when levied for collection in two equal installments.

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 183 of 340 ends

4. CFD Zone B includes all parcels within developments that do not include planned or installed local Neighborhood Greens or has planned or installed local Neighborhood Greens that will be maintained by an entity or agency other than the City .

D. Determination of Multi -Family Residential Parcel’s Maximum Annual Special Tax When a building permit is issued for a Multi-Family Residential Parcel, the Maximum Annual Special Tax for the Parcel for which such building permit has been issued for each Fiscal Year shall be determined by multiplying the number of Dwelling Units assigned to the Parcel times the Maximum Special Tax Rate for the Parcel as determined in Section C.

E. Levy of the Annual Special Tax
Each year, the CFD Administrator shall levy the Annual Special Tax commencing with Fiscal Year 2018- 2019, and for each Fiscal Year thereafter as follows:
i. Each Year on July 1, the CFD Administrator shall determine the Special Tax Requirement for the current Fiscal Year.
ii. The Annual Special Tax shall be levied proportionately on each Developed Residential Parcel within each Tax Zone up to 100% of the applicable Maximum Annual Special Tax, not to exceed the Special Tax Requirement for the current Fiscal Year.
iii. If additional revenue is required to equal the Special Tax Requirement for the current Fiscal Year, the Annual Special Tax shall be levied proportionately on Undeveloped Residential Parcels up to 100% of the Maximum Annual Special Tax, not to exceed the remainder of the Annual Special Tax Requirement for which a Final Subdivision Map has been approved and Authorized Facilities have been accepted for maintenance by the City.

Under no circumstances will the Annual Special Tax levied in any Fiscal Year against any Residential Parcel be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the CFD by more than 10 percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults.

F. Manner of Collection
The Annual Special Tax will be collected in the same manner and at the same time as ad valorem property taxes, provided, however, that the Administrator or its designee may directly bill the Annual Special Tax and may collect the Annual Special Tax at a different time, such as on a monthly or other periodic basis, or in a different manner, if necessary, to meet the City’s financial obligations.

The Administrator shall prepare a listing of the amount of the of the Annual Special Tax levy for each Taxable Parcel and send it to the County Auditor -Controller requesting that it be placed on the County’s secured property tax roll for that Fiscal Year.

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 184 of 340 ends

G. Limitations
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Tax shall be levied on any Other Land Use Parcel, Public Parcel or Tax-Exempt Parcel.

H. Duration of the Special Tax
Parcels in the CFD will remain subject to the Special Tax in perpetuity, unless and until such time the City determines the revenues are no longer needed, in which case the Special Tax shall cease to be levied and City shall direct the County Recorder to record a Notice of Cessation of Special Tax. Such notice will state that the obligation to pay the Special Tax has ceased and that the lien imposed by the Notice of Special Tax Lien is extinguished.

The Notice of Cessation of Special Tax shall additionally identify the book and page of the Book of Maps of Assessment and Community Facilities Districts where the map of the boundaries of the CFD is recorded.

I. Appeals
Any taxpayer who believes that the amount of the Special Tax assigned to a Parcel is in error may file a notice with the City appealing the levy of the Special Tax. The City will then promptly review the appeal, and if necessary, meet with the applicant. If the City verifies that the Special Tax should be modified or changed, the Special Tax levy shall be corrected and, if applicable, a refund or revised tax bill shall be granted for the current Fiscal Year.

Interpretations may be made by Resolution of the City Council for purposes of clarifying any vagueness or ambiguity as it relates to the Maximum Annual Special Tax Rate, the method of apportionment, the classification of properties or any definition applicable to the CFD.

J. Prepayment of the Special Tax Obligation
The Special Tax for a Taxable Parcel may not be prepaid. The Special Tax is collected to fund Authorized Facilities and Services in perpetuity, or until the City Council determines that the Special Tax should no longer be collected.

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 185 of 340 ends

RATE AND METHOD OF APPORTIONMENT
EXHIBIT 1

TAX ZONE DESIGNATION

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

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TAX ZONE BOUNDARY: DOUGLAS 103

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

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EXHIBIT C
COMMUNITY FACILITIES DISTRICT NO. 2018-2
(COMMUNITY PLACES AND NEIGHBORHOOD GREENS)

OF THE CITY OF RANCHO CORDOVA
NAMES OF OWNER(S) AND THE ASSESSOR’S PARCEL NUMBER(S)

Parcel No. Property Owner
067-0040-017-0000 TPG AG EHC III (LEN) CA 2 L.P
067-0040-018-0000 TPG AG EHC III (LEN) CA 2 L.P
067-0040-026-0000 TPG AG EHC III (LEN) CA 2 L.P

ITEM 9.9.

ATTACHMENT 3
Exhibit B to the Resolution

Page 188 of 340 ends

CITY OF RANCHO CORDOVA
Community Facilities District No. 2018-2
(Community Places and Neighborhood Greens)
Annexation No. 10

UNANIMOUS APPROVAL
of Annexation to a Community Facilities District
and Related Matters
To t
he City Council
City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 956703
Me
mbers of the City Council:

This constitutes the Unanimous Approval (the “Unanimous Approval”) of TPG AG EHC III (LEN) CA 2 L.P, the record owner(s) (the “Property Owner”) of the fee title to the real property identified below (the “Property”) contemplated by Section 53339.3 et seq. of the Mello- Roos Community Facilities Act of 1982, as amended (the “Act”) to annexation of the Property to the "City of Rancho Cordova Community Facilities District No. 20 18-2 ( Community Places and Neighborhood Greens ) (the “CFD”), and it states as follows:

1. Property Owner. This Unanimous Approval is submitted by the Property Owner (whether one or more) identified below as or for the recorded owner(s) of the Property identified below. The Property Owner warrants to the City of Ranch o Cordova (the “City”) that they are such Property Owner or is legally authorized to execute this Unanimous Approval for and on behalf of such Property Owner.

2. Approval of Annexation . This Unanimous Approval constitutes the unanimous approval and unanimous vote by the Property Owner in favor of the annexation of the Property to the CFD. The CFD was formed to finance the municipal services (the “Services”) described in
Exhibit A hereto and made a part hereof.

3. Approval of Special Tax and the Facilities . This Unanimous Approval constitutes the unanimous approval and unanimous vote by the Property Owner in favor of the levy of special taxes (the “Special Taxes”) on the Property to finance the Services, according to the Rate and Method of Apportionment of Special Taxes for the CFD attached hereto as Exhibit B and made a part hereof (the " Rate and Method ").

Exhibit B describes the maximum special tax rate for the Services . This annexed property will be placed into Tax Zone A with local neighborhood greens or Tax Zone B without local neighborhood greens for purposes of computation of the Special Tax.

4. Approval of the Appropriations Limit . This Unanimous Approval constitutes the unanimous approval and unanimous vote by the Property Owner in favor of the appropriations limit established for the CFD.

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

Page 189 of 340 ends

5. Waivers and Vote . The Property Owner hereby confirms that this Unanimous Approval constitutes its approval and unanimous vote as described herein and as contemplated by Section 53339.3 et seq. of the Act and Article XIIIA of the California Constitution. The Property Owner hereby waives all other rights with respect to the annexation of the Property, the levy of the Special Taxes on the Property and the other matters covered in this Unanimous Approval.

6. Recordation of Amendment to Notice of Special Tax Lien. The Notice of Special Tax Lien for the CFD was heretofore recorded in the Office of the County Recorder of the County of Sacramento , State of California on September 14, 2018, recorded at Book 20180914 at Page 0535.

The Property Owner hereby authorizes and directs the City Clerk to execute and cause to be recorded in the Office of the County Recorder of the County of Sacramento an amendment to the Notice of Special Tax Lien for the CFD as required by Section 3117.5 of the California Streets and Highways Code. The amendment to the Notice of Special Tax Lien shall include the Rate and Method as an exhibit thereto.

7. City Warranted. The Property Owner warrants to the City that the presentation of this Unanimous Approval, any votes, consents or waivers contained herein, and other actions mandated by the City for the annexation of the Property to the CFD shall not constitute or be construed as events of default or delinquencies under any existing or proposed financing documents entered into or to be entered into by the Property Owner for the Property, including any “due-on-encumbrance” clauses under any existing security instruments secured by the Property. If requested by the City, the Property Owner agrees, at its own expense, to supply to the City, current title evidence so that the City may verify ownership for the annexation to the CFD.

8. Due Diligence and Disclosures. The Property Owner agrees to cooperate with the City and its attorneys and consultants and to provide all information and disclosures required by the City about the Special Taxes to purchasers of the Property or any part of it.

9. Agreements. The Property Owner further agrees to execute such additional or supplemental agreements as may be required by the City to provide for any of the actions and conditions described in this Unanimous Approval, including any cash deposit required to pay for the City's costs in annexing the Property to the CFD.

10. The Property. The Property is identified as follows:

County of Sacramento Assessor’s Parcel Numbers:
067-0040-026-0000, 067 -0040-017-0000, 067 -0040-018-0000: The property consists of a total of 104.88 acres.

The property consists of a total of 104.88 acres.

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

Page 190 of 340 ends

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

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CITY OF RANCHO CORDOVA
Community Facilities District No. 2018-2
(Community Places and Neighborhood Greens)

LIST OF FACILITIES AND SERVICES AUTHORIZED TO BE FUNDED The City of Rancho Cordova (the “City”) is establishing Community Facilities District No. 2018-2 (Community Places and Neighborhood Greens) (the “CFD”) to fund, in whole or in part, the following facilities and services (the terms “facilities” and "services" shall have the meaning as given in the Mello -Roos Community Facilities Act of 1982.

AUTHORIZED FACILITIES
The CFD is being established to fund the maintenance, operations, servicing, rehabilitation and replacement of CFD Facilities. The costs associated with the initial capital improvements required for the construction or installation of the Facilities are not included in the costs to be funded by the CFD. A general list of the Facilities to be operated, maintained and serviced by the CFD include:

1. Community Plazas. Community Plazas are a component of the Community Places category of City Open Space, as defined in the City’s Open Space Guidelines. Community Plazas are typically located in Village and Town Centers to provide areas for congregation, socializing and community events/activities. Two Community Plazas are planned for the CFD.

2. Bicycle Trails. Bicycle Trails are a component of the Green Infrastructure category of City Open Space as defined in the City’s Open Space Guidelines. A system of Bicycle Trails, defined as the Class I Bicycle Trails East of Sunrise Boulevard in the City’s Bicycle Trails Master Plan, is planned for the CFD. This system of trails will have an estimated 250,530 linear feet of bicycle trails (over 47 miles) that will be a part of the City’s overall Bicycle Trail network.

Primary trails are 16’ in overall width (12’ of asphalt pavement with a 2’ shoulder on each side).

ATTACHMENT 4
Exhibit C to the Resolution

Page 192 of 340 ends

on each side) and are typically located within a corridor of at least 35 feet in width, with larger widths encouraged.

4. Other Facilities. In addition to the facilities described above, the following features as described in the City’s Open Space Guidelines may be maintained by the CFD:

ATTACHMENT 4
Exhibit C to the Resolution

Page 193 of 340 ends

Facilities that are primarily for the benefit of the CFD; or 2) repair or rehabilitate existing CFD Facilities.

AUTHORIZED SERVICES
The CFD is being established to fund the cost of all authorized CFD Services which are to include, but are not limited to:

1. Capital Replacement. Capital Replacement includes any and all costs associated with repairing and replacing any of the Facilities described above.

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

Page 194 of 340 ends

EXHIBIT B

CITY OF RANCHO CORDOVA
Community Facilities District No. 2018-2
(Community Places and Neighborhood Greens)

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

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ATTACHMENT 4
Exhibit C to the Resolution

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ATTACHMENT 4
Exhibit C to the Resolution

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ATTACHMENT 4
Exhibit C to the Resolution

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C. Maximum Special Tax Rates
The annual Maximum Special Tax Rates for Residential Parcels for Base Year 2018/19 are as follows:

The annual Maximum Special Tax Rates for Residential Parcels for Base Year 2025/26 CFD Zone A are as follows:

CFD ZONE A
1 ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

Page 199 of 340 ends

1. CFD Zone A includes all parcels within developments that include planned or installed local Neighborhood Greens.

2. Special tax rates with odd cents are rounded down by one penny to even cents when levied for collection in two equal installments.

The annual Maximum Special Tax Rates for Residential Parcels for Base Year 2025/26 CFD Zone B are as follows:

1. CFD Zone A includes all parcels within developments that include planned or installed local Neighborhood Greens.

2. Special tax rates with odd cents are rounded down by one penny to even cents when levied for collection in two equal installments.

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

Page 200 of 340 ends

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

Page 201 of 340 ends

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

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RATE AND METHOD OF APPORTIONMENT
EXHIBIT 1

TAX ZONE DESIGNATION

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

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TAX ZONE BOUNDARY: DOUGLAS 103

ITEM 9.9.

ATTACHMENT 4
Exhibit C to the Resolution

Page 204 of 340 ends

MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 9.10.

DATE: August 17, 2026

TO: Honorable Mayor and Council Members

FROM: Albert Stricker, Public Works Director
Drew Hart, Principal Transportation Planner

SUBJECT: A RESOLUTION AUTHORIZING THE PUBLIC WORKS DIRECTOR TO

SUBMIT AND EXECUTE APPLICATIONS AND DOCUMENTS FOR

THE SACRAMENTO AREA COUNCIL OF GOVERNMENTS (SACOG)

NEXT GENERATION SOLUTIONS & CLEAN AIR FUNDING

PROGRAM AND THE SYSTEM PERFORMANCE FUNDING

PROGRAM

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would authorize the City of Rancho Cordova to submit applications and documents to Sacramento Area Council of Governments (SACOG) and designates the Public Works Director or their designee to execute all grant documents.

BACKGROUND

The Sacramento Area Council of Governments plays a central role in funding transportation improvements throughout the region by administering Surface Transportation Block Grant (STBG) and Congestion Mitigation and Air Quality (CMAQ) funds across three programs.

SACOG manages a competitive process that establishes performance-based funding targets for each county to ensure resources are distributed in line with regional priorities and measurable outcomes. Through its three core programs, Next Generation Solutions & Clean Air, System Performance, and System Preservation, SACOG directs federal funds to projects that improve mobility, enhance safety, support sustainability, and advance equity.

SACOG requires agencies who wish to apply for grant funds to adopt a Resolution that authorizes submittal of the grant applications to SACOG. The Resolution confirms the agency’s intent to submit applications, identifies authorized staff, and commits the agency to meeting all funding, match, and project delivery requirements if an award is made. The city intends to apply for the following two Projects under the respective programs:
• Zinfandel Drive Bikeway (Design only funds) for the Next Generation Solutions & Clean Air Grant Program. This project will design a physically separated bikeway along Zinfandel Drive from White Rock Road to the southern city limits. This is approximately

Page 205 of 340 ends

City Council Staff Report - Page 2 of 2

1.8 miles and will connect to the forthcoming Zinfandel Pedestrian Overcrossing and Art Walk and provide an low-stress bikeway suitable for all ages and all abilities; and • Folsom Boulevard Complete Streets Phase 6 and Bike Path (Design and Construction funds) for the System Performance Grant Program. This project will continue the streetscape enhancements along Folsom Boulevard from Sunrise Boulevard to Citrus Road including, a new shared use path east of the light rail station, new signalized pedestrian crossing, and improved safety and aesthetic enhancements. Additionally, it will convert an abandoned rail line along Citrus Road to a shared use path, connecting to the Sunrise Corridor Bikeway (also known as Citrus Road Bike Path).

FISCAL IMPACT AND FUNDING SOURCE

Approving this Resolution would allow the City of Rancho Cordova to apply for the upcoming SACOG Next Generation Solutions & Clean Air Funding Program and the System Performance Funding Program. There are no fiscal impacts associated with approving this Resolution.

ATTACHMENT(S)

1. Resolution

Page 206 of 340 ends

ITEM 9.10. 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 APPLICATIONS FOR GRANT FUNDING FROM THE SACRAMENTO AREA COUNCIL OF GOVERNMENTS (SACOG) 2026 FEDERAL FUNDING PROGRAMS; AUTHORIZING THE THE PUBLIC WORKS DIRECTOR TO SUBMIT CITY OF RANCHO CORDOVA SACOG 2026 FEDERAL FUNDING PROGRAM APPLICATION PRIORITIES; AND AUTHORIZING THE PUBLIC WORKS DIRECTOR TO

EXECUTE ALL GRANT DOCUMENTS AND TIMELY PROJECT DELIVERY

REQUIREMENTS

WHEREAS, the Sacramento Area Council of Governments (SACOG) has announced three 2026 Federal Funding Cycle Programs (Funding Programs), which are open to sponsoring agencies within the six-county SACOG region: System Preservation Program, System Performance Program, and Next Generation Solutions & Clean Air Program; and WHEREAS, the System Preservation Program invests in maintaining and resurfacing major roadways that keep people and goods moving; and
WHEREAS, the System Performance Program funds projects that improve how the transportation system functions day-to-day, including roadway and safety improvements, transit upgrades, EV charging, new bike and pedestrian connections, mobility hubs, and smart- transportation technologies that help manage traffic and improve reliability; and WHEREAS, the Next Generation Solutions & Clean Air Program supports projects that reduce emissions and improve air quality such as high-capacity transit, zero-emission vehicles and charging infrastructure, bikeways and trails, Complete Streets, traffic flow improvements, and programs that encourage carpooling, transit use, and other clean transportation options; and
WHEREAS, eligible projects for Funding Programs must be listed in the 2025 Blueprint or fit within 2025 Blueprint lump-sum project categories including but not limited to road maintenance and reconstruction, transit vehicle replacements, operational improvements, Intelligent Transportation Systems, and bicycle and pedestrian investments; and WHEREAS, SACOG limits Funding Programs grant applications to no more than three applications per sponsoring agency for any one of the three different Funding Programs to SACOG, up to a maximum of nine total applications per sponsoring agency; and WHEREAS, applicants shall affirm their commitment to delivering projects in accordance with the requirements of Surface Transportation Block Grant (STBG) Program and Congestion Mitigation & Air Quality (CMAQ) Improvement Program, as applicable; and WHEREAS, grant proposals for construction work shall obligate Funding Program dollars for construction activities no later than the end of federal fiscal year 2028-29; and WHEREAS, SACOG will not provide additional federal or state funding in the event that cost overruns are identified; and

Page 207 of 340 ends

ITEM 9.10. ATTACHMENT 1 Resolution No. XX-2026 Page 2 of 2 WHEREAS, project sponsors shall commit to providing local matching dollars, typically

11.47% of the total project cost; and
WHEREAS, SACOG requires that if awarded federal funds by the SACOG Board, City of Rancho Cordova staff are responsible for project delivery must attend quarterly project delivery meetings with SACOG staff to receive assistance until project closeout.

NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA as follows:

SECTION 1. The Public Works Director or designee is authorized to execute all documents necessary to committing City of Rancho Cordova to federal, state and regional funding and project delivery requirements, including but not limited to abiding by Funding Program guidelines.

SECTION 2. Acknowledges that in the event of receiving an award by the SACOG Board of Funding Program dollars, that City of Rancho Cordova will be required to abide by multiple timely use of funding requirements described in Funding Program guidelines and SACOG’s Regional Delivery Policies, including but not limited to, obligating federal funding no later than the end of federal fiscal year 2028-2029 for construction activities, committing to securing required local match dollars, acknowledge that SACOG does not cover cost overruns, and commits staff to attend delivery meetings until project closeout.

SECTION 3. The Public Works Director or designee is directed to submit the following applications for 2026 Six-County Federal Funding Cycle System Performance Program and Next Generation Solutions & Clean Air Programs:
• Zinfandel Drive Bikeway for the Next Generation Solutions & Clean Air Grant Program; and
• Folsom Boulevard Complete Streets Phase 6 and Bike Path for the System Performance Grant Program
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 17th day of August 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

Page 208 of 340 ends

MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 9.11.

DATE: August 17, 2026

TO: Honorable Mayor and Council Members

FROM: Michelle Mingay, Assistant Director of Administrative Services - Finance

SUBJECT: A RESOLUTION ADOPTING THE AMENDED INVESTMENT POLICY

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would approve the updated Investment Policy, ensuring continued compliance with California Government Code.

BACKGROUND

California Government Code Sections 53600 through 53659 govern the investment of public funds by local agencies. The city's Investment Policy establishes the guidelines, objectives, and authorized investment instruments for managing public funds in accordance with state law and prudent investment practices.

Consistent with Government Code Section 53646, Finance staff conducted its annual review of the Investment Policy to ensure it remains consistent with current state law, industry best practices, and the city's investment objectives, including:
• California Government Code
• Governmental Accounting Standards Board (GASB) guidance • Current market conditions
• Best practices published by the California Municipal Treasurers Association (CMTA), California Society of Municipal Finance Officers (CSMFO), and the Government Finance Officers Association (GFOA), where applicable.

Based on this review, staff recommends several revisions. Most of the proposed changes are administrative in nature and improve clarity, update statutory references, and reflect current organizational titles. In addition, staff recommends several policy revisions to incorporate recent changes to California Government Code enacted through SB 595 and SB 858. No changes have been made to the city's investment objectives or the types of investments authorized by the policy.

The following policy revisions are substantive in nature:

Page 209 of 340 ends

City Council Staff Report - Page 2 of 2

• Updates the designation of the City Treasurer from the Finance Director to the Assistant City Manager/Chief Financial Officer to reflect the City's current organizational structure. • Increases the maximum allowable maturity for Commercial Paper from 270 days to 397 days, consistent with amendments to California Government Code enacted by SB 595 and SB 858.

These statutory changes expand the city's investment authority but do not require staff to utilize the additional investment capacity. Each revision has been reviewed by the city's investment advisors and legal counsel, as appropriate. Additional updates are highlighted in Attachment 3.

FISCAL IMPACT AND FUNDING SOURCE

Although adoption of the policy has no immediate fiscal impact, maintaining an updated investment policy allows the city to continue investing public funds in accordance with state law and contributes to maximizing investment earnings while protecting public funds.

ATTACHMENT(S)

1. Resolution

2. Exhibit A to the Resolution - Investment Policy

3. Investment Policy - Tracked Changes

Page 210 of 340 ends

ITEM 9.11. ATTACHMENT 1
Resolution No. XX-2026 Page 1 of 1

CITY OF RANCHO CORDOVA

RESOLUTION NO. XX-2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE

OF CALIFORNIA, ADOPTING THE AMENDED INVESTMENT POLICY

WHEREAS, California Government Code Sections 53600 through 53659 authorize local agencies to invest public funds and require the annual review of the agency's investment policy; and

WHEREAS, the City Council desires to ensure that public funds are invested in a prudent manner that emphasizes safety, liquidity, and yield consistent with state law; and

WHEREAS, staff, in coordination with the city's investment advisors, has reviewed the city's Investment Policy and recommends its adoption for Fiscal Year 2026-27; and

WHEREAS, the amended Investment Policy is in compliance with California Government Code Guidelines.

NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA hereby adopts the Investment Policy attached hereto as Exhibit A.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 17th day of August 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

Page 211 of 340 ends

CIT

Y OF RANCHO CORDOVA

CALIFORNIA

STATEMENT OF INVESTMENT POLICY
Adopt
ed August XX, 2026
ITEM 9.11.

ATTACHMENT 2
Exhibit A to the Resolution

Page 212 of 340 ends

CITY OF RANCHO CORDOVA, CALIFORNIA

STATEMENT OF INVESTMENT POLICY

POLICY

It is the policy of the City of Rancho Cordova, CA (the “City”) to invest public funds in a manner that will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

SCOPE

This investment policy applies to all financial assets of the City. These funds are accounted for in the City Comprehensive Annual Financial Report and may include:

General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Permanent and Private Purpose Trust Funds

This Policy shall also apply to all funds of the City of Rancho Cordova including those funds which may be created as well as any other fund under the control of the City Treasurer.

PRUDENCE

The standard of prudence to be used by investment officials shall be the “prudent investor” standard and shall be applied in the context of managing an overall portfolio. The “prudent investor” standard states that:

When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

OBJECTIVE

The primary objectives, in priority order, of the City’s investment activities shall be:

Safety: Safety of principal is the foremost objective of the investment program.

Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.

Liquidity: The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

ITEM 9.11.

ATTACHMENT 2
Exhibit A to the Resolution

Page 213 of 340 ends

Return on Investments (Yield): The City’s investments shall be designed with the objective of attaining a market rate of return throughout the budget and economic cycles, taking into account the investment risk constraints and liquidity needs.

DELEGATION OF AUTHORITY
The
City Council annually delegates investment authority to the City Treasurer, who is appointed by the City Manager and currently serves as the Assistant City Manager/Chief Financial Officer . The City Treasurer is charged with the responsibility for carrying out the policies of the City Council and shall assume full responsibility for investment transactions until the delegation of authority is revoked or expires.

Th
e City Treasurer is responsible for the overall administration of the City's investment program, including cash management, investment transactions, and account reconciliations. The City Treasurer may delegate administrative and operational responsibilities associated with the investment program to qualified members of the Finance Department, who shall act under the direction and supervision of the City Treasurer. Such delegation shall not relieve the City Treasurer of the responsibility for investment transactions or compliance with this Investment Policy. The City Treasurer shall establish procedures for the operation consistent with this investment policy.

The
City Treasurer and authorized individuals acting in accordance with established written procedures , this investment policy, and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

ETHICS AND CONFLICT OF INTEREST
Offic
ers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program or which could impair their ability to make impartial decisions.

Officers and employees involved in the investment process shall abide by the Conflict of Interest Code, (California Government Code Section 1090 et seq.) and the California Political Reform Act (California Government Code Section 81000 et seq.).

PERMITTED INVESTMENTS
Ca
lifornia Government Code Sections 53601, 53635 and 16429.1 govern the investments permitted for purchase by the City. Eligible investments are summarized in the chart below. Specific footnotes pertaining to these investments can be found in Appendix I. Limitations and definitions of these investments can be found in Appendix II and in the Glossary of this Policy.

In t
he event an apparent discrepancy is found between this Policy and the Government Code, the most restrictive parameters will take precedence. Percentage holding limits listed in this Policy apply at the time the security is purc hased. Credit ratings, where shown, specify the minimum credit rating category required at the time the security is purchased. Securities that have been downgraded to a level that is below the minimum ratings described herein may be sold or held at the City’s discretion. The portfolio will be bro ught back into compliance with Inves tment Policy guidelines as soon as is practicable.

ITEM 9.11.

ATTACHMENT 2
Exhibit A to the Resolution

Page 214 of 340 ends

ELIGIBLE INVESTMENTS UNDER STATE CODE

Investment Typea Maximum
Maturity
Maximum Specified
Percentage of
Portfolioc
Minimum
Quality Requirements
Local Agency Bonds 5 yearsb None None
U.S. Treasury Obligations 5 yearsb None None
State of California Obligations 5 yearsb None None
CA. Local Agency Obligations 5 yearsb None None
U.S. Agencies 5 yearsb None None
Bankers' Acceptances 180 days 40 percent None
Commercial Paper 397 days 25 percent of the
agency's moneyf,e
"A-1or equivalent; if
the issuer has issued
long-term debt it must
be rated "A" without
regard to modifiers
f
Certificates of Deposit 5 years 30 percentg None

Repurchase Agreements 1 year None None
Reverse Repurchase Agreements and
Securities Lending Agreements
92 daysh 20 percent of the base
value of the portfolio
Nonei
Medium-Term Notesj 5 years 30 percent "A" rating
Mutual Funds N/A 20 percentk Multiplel,m
Collateralized Bank Deposits 5 years None None
Mortgage Related Securities 5 years 20 percentd "AA" Ratingn Asset-Backed Securities 5 years 20 percentd "AA" Ratingn Supranationals 5 years 30 percent “AA” Rating
County Pooled Investment Funds N/A None None
Joint Powers Authority Pool N/A None Multipleo
Local Agency Investment Fund (LAIF) N/A None None

INELIGIBLE INVESTMENTS

As provided in California Government Code section 53601.6, the City shall not invest any funds in inverse floaters, range notes, mortgage derived interest -only strips or in any security that could result in zero interest accrual if held to maturity.

ELIGIBLE INVESTMENTS FOR BOND PROCEEDS

Bond proceeds shall be invested in securities permitted by the applicable bond documents. If the bond documents are silent as to the permitted investments, bond proceeds will be invested in securities permitted by this Policy.

ITEM 9.11.

ATTACHMENT 2
Exhibit A to the Resolution

Page 215 of 340 ends

With respect to maximum maturities, the Policy authorizes investing bond reserve fund proceeds beyond five years if prudent in the opinion of the City Treasurer.

MAXIMUM MATURITIES

Notwithstanding the five year maturity limitation, the City Council grants its express authority per Government Code Section 53601 to invest with maturities extending beyond five years.

SELECTION OF BROKER/DEALERS

Each approved broker/dealer must possess an authorizing certificate from the California Commissioner of Corporations as required by Section 25210 of the California Corporations Code.

To be eligible, a firm must meet at least one of the following criteria:

1. be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or

2. report voluntarily to the Federal Reserve Bank of New York, or

3. qualify under Securities and Exchange Commission (SEC) Rule 15c3- 1 (Uniform Net Capital Rule).

The City Treasurer will select broker/dealers on the basis of their expertise in public cash management and their ability to provide service to the City’s account. The City may engage the services of investment advisory firms to assist in the management of the Portfolio. Such investment advisors may utilize their own list of approved broker/dealers; however, the list shall comply with the criteria listed above and shall be provided to the City on an annual basis or upon request.

In the event that an investment advisory firm is not used in the process of recommending a particular transaction in the City’s portfolio, authorized broker/dealers shall submit and annually update a City approved broker/dealer information request form that includes the firm’s most recent financial statements.

The City may purchase commercial paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the criteria outlined in the Eligible Investments section of this Investment Policy.

SAFEKEEPING AND CUSTODY

The City Treasurer shall select one or more financial institutions to provide safekeeping and custodial services for the City. A Safekeeping or Custodial Agreement approved by the City shall be executed with each custodian bank prior to utilizing that bank's safekeeping services.

Custodian banks will be selected on the basis of their ability to provide services for the City's account and the competitive pricing of their safekeeping related services.

ITEM 9.11.

ATTACHMENT 2
Exhibit A to the Resolution

Page 216 of 340 ends

The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. Ownership of all securities shall be perfected in the name of the City . Sufficient evidence to title shall be consistent with modern investment, banking and commercial practices.

All investment securities purchased by the City shall be delivered by book entry and shall be held in third- party safekeeping by the City approved custodian bank, its correspondent bank or the Depository Trust Company (DTC).

The City’s custodian shall be required to furnish the City a list of holdings on at least a monthly basis and safekeeping receipts or customer confirmations shall be issued for each transaction.

INTERNAL CONTROL

The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits to be derived and that the valuation of costs and benefits requires estimates and judgments by management.

REPORTING

The City Treasurer shall provide a quarterly investment report to the City Council, which provides a clear picture of the status of the current investment portfolio. This report will be submitted to the City Council each quarter at a public meeting.

Schedules in the quarterly Treasurer’s Report will include the following:

1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City;

2. A description of the funds, investments and programs;

3. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;

4. A statement of compliance with the investment policy or an explanation for non- compliance; and

5. A statement of the City’s ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case.

The quarterly report shall state compliance of the portfolio to the investment policy, or manner in which the portfolio is not in compliance. The quarterly report shall also include a statement denoting the ability of the City to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

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POLICY REVIEW

The investment policy shall be adopted by resolution of the City Council . The investment policy shall be reviewed at least annually by Staff to ensure its consistency with the overall objections of preservation of principal, liquidity and yield, and its relevance to current law and financial and economic trends. Any amendments to the policy shall be forwarded to the City Council for approval.

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Appendix I

i. Reverse repurchase agreements must be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state chartered bank that ha s a significant relationship with the local agency. The local agency must have held the securities used for the agreements for at least 30 days. j. "Medium-term notes" are defined in Government Code Section 53601 as "all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S. No more than 10 percent of the City’s funds may be invested in the commercial paper and the medium-term notes of any one issuer.
k. No more than 10 percent of the City’s money may be invested in any one mutual fund. l. A mutual fund must receive the highest ranking by not less than two nationally recognized statistical ratings organizations or the fund must retain an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years experience investing in instruments authorized by Government Code Sections 53601 and 53635.

m. A money market mutual fund must receive the highest ranking by not less than two nationally recognized statistical ratings organizations or retain an investment advisor registered with the SEC or exempt from registration and who has not less than five years experience investing in money market instruments with assets under management in excess of $500 million.
n. Security must have an "A A" rating or better as provided by a nationally recognized statistical rating organization (NRSRO), if the issuer is not a US agency or government-sponsored enterprise. o. A joint powers authority pool , organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in Government Code Section 53601 subdivisions (a) to (r) , inclusive.

To be eligible, it must retain an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years experience investing in instruments authorized by Government Code Section 53601, subdivisions (a) to (q).

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Appendix II

LIGIBLE INVESTMENTS

A. State of California Local Agency Investment Fund (“LAIF”). The City may invest in LAIF pursuant to California Government Code Section 16429.1.

B. California Asset Management Trust. The City may invest in the shares in the California Asset Management Trust, so long as the portfolio is rated among the top two rating categories by a NRSRO.

C. Certificates of Deposit. A uthorized under Sections 53601.8, 53635.8, and 53601(i). No more than 30% of the City’s total funds may be invested in Certificates of Deposit.
.

D. Banker’s Acceptances. Banker’s acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System.

Purchases of banker’s acceptances may not exceed 180 days maturity.

Investments in banker’s acceptances are further limited to 40% of the portfolio.

E. U.S. Government Issues. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.

F. Federal Agency Securities. Federal agency or United States government - sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.

G. Repurchase Agreements. Repurchase agreements which have a final maturity not exceeding one year from the date of trade settlement. The City may enter into repurchase agreements with counterparties which have ( i) minimum assets and capital of $25 billion in assets and $350 million in capital; (ii) five years of acceptable audited financial results; and ( iii) a strong reputation among market participants.

The following collateral restrictions will be observed:

Only U.S. Treasury securities or Federal Agency securities will be acceptable collateral. All securities underlying repurchase agreements must be delivered to the City’s custodian bank versus payment or be handled under a properly executed tri -party repurchase agreement. The total market value of all collateral for each repurchase agreement must equal or exceed 102 percent of the total dollar value of the money invested by the City for the term of the investment. For any repurchase agreement with a term of more than one day, the value of the underlying securities must be reviewed on an on- going basis according to market conditions. Market value must be calculated each time there is a substitution of collateral.

The City or its Trustee shall have perfected first security interest under the Uniform Commercial Code in all securities subject to repurchase agreements.

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The City shall have properly executed a Professional Services Agreement with each counter party with which it enters into repurchase agreements.

H. Commercial Paper. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided by a NRSRO.

The entity that, issues commercial paper shall meet all of the following conditions in one of the following

a. The entity meets the following criteria:
i. Is organized and operating within the United States as a general corporation.
ii. Have total assets in excess of $500 million.
iii. Has debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO

(or)

b. The entity meets the following criteria:
i. Is organized within the United States as a special purpose corporation, trust, or limited liability company.
ii. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond.

Investments in commercial paper are limited to a maximum of 25% of the portfolio with no more than 5% of the portfolio invested in the commercial paper of any one issuer . Purchases shall not exceed 10 percent of the outstanding paper of the issuing corporation. The maximum investment maturity is restricted to 397 days.

I. Mutual Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1, et seq.).

The City may invest in shares of beneficial interest issued by a company which shall have met either of the following criteria:

a. Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.

(or)

b. Retained an investment advisor registered or exempt from registration with the SEC with not less than five years experience in managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).

The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include any commission that the companies may charge.

Investments in Mutual Funds are limited to 20% of the portfolio and no more than 10% of the portfolio may be invested in any one fund.

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J. Shares of Beneficial Interest issued by a joint powers authority organized pursuant to Section 6509.7 that invest in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that:

(1) is registered or exempt from registration with the Securities and Exchange Commission.
(2) has at least five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601.
(3) has assets under management in excess of $500,000,000.

K. The Sacramento County Investment Pool . The City may invest in this investment pool, established by the Sacramento County Treasurer for the benefit of local public agencies.

L. Municipal & State Obligations:

A. Municipal bonds including registered notes or bonds of any of the 50 states, including bonds payable solely out of the revenues from a revenue - producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the 50 states.

B. In addition, bonds, notes, warrants, or other evidences of indebtedness of any local agency in California, including bonds payable solely out of the revenues from a rev enue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

M. Medium-Term Notes. Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a final maturity not exceeding five years from the date of trade settlement, and rated at least “A” or the equivalent by a NRSRO. Investments in medium -term notes are limited to 30% of the portfolio.

N. Asset-Backed Securities. A mortgage passthrough security, collateralized mortgage obligation, mortgage -backed or other pay- through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable- backed bond of a maximum of five years’ maturity. If the issuer is not a US agency or government -sponsored enterprise, s ecurities eligible for investment under this subdivision shall be rated at least “AA” or higher as provided by a NRSRO and may not exceed 20% of the portfolio.

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O. Supranationals. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better by a NRSRO and are limited to 30% of the portfolio.

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CITY OF RANCHO CORDOVA

STATEMENT OF INVESTMENT POLICY

GLOSSARY OF TYPES OF INVESTMENTS

AVAILABLE TO LOCAL GOVERNMENTS

STATE INVESTMENT POOL (LAIF)

The Local Agency Investment Fund (LAIF) is a voluntary program created by statute; began in 1977 as an investment alternative for California's local governments and special districts. The enabling legislation for the LAIF is Section 16429.1 et seq. of the California Government Code.

This program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the Treasurer's Office investment staff at no additional cost to the taxpayer. This in - house management team is comprised of civil servants who have each worked for the State Treasurer's Office for an average of 20 years.

The LAIF is part of the Pooled Money Investment Account (PMIA). The PMIA began in 1953 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in -house Investment Committee. The PMIB members are the State Treasurer, Director of Finance, and State Controller.

The Local Investment Advisory Board (LIAB) provides oversight for LAIF. The Board consists of five members as designated by statute. The Chairman is the State Treasurer or his designated representative. Two members qualified by training and experience in the field of investment or finance, and the State Treasurer appoints two members who are treasurers, finance or fiscal officers or business managers employed by any county, city or local district or municipal corporation of this state. The term of each appointment is two years or at the pleasure of the appointing authority.

All securities are purchased under the authority of Government Code Section 16430 and 16480.4. The State Treasurer's Office takes delivery of all securities purchased on a delivery versus payment basis using a third party custodian. All investments are purchased at market and a market valuation is conducted monthly.

Additionally, the PMIA has Policies, Goals and Objectives for the portfolio to make certain that our goals of Safety, Liquidity and Yield are not jeopardized and that prudent management prevails. These policies are formulated by investment staff and reviewed by both the PMIB and the LIAB on an annual basis.

The State Treasurer’s Office is audited by the Bureau of State Audits on an annual basis and the resulting opinion is posted to the STO website following its publication. The Bureau of State Audits also has a continuing audit process throughout the year. All investments and LAIF claims are audited on a daily basis by ITEM 9.11.

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the State Controller’s Office as well as an in -house audit process involving three separate divisions.

Under Federal Law, the State of California cannot declare bankruptcy, thereby allowing the Government Code Section 16429.3 to stand. This Section states that “moneys placed with the Treasurer for deposit in the LAIF by cities, counties, special districts, nonprofit corporations, or qualified quasi -governmental agencies shall not be subject to either of the following: (a) transfer or loan pursuant to Sections 16310, 16312, or 16313, or (b) impoundment or seizure by any state official or state agency.”

During the 2002 legislative session, California Government Code Section 16429.4 was added to the LAIF’s enabling legislation. The Section states that “the right of a city, county, city and county, special district, nonprofit corporation, or qualified quasi-governmental agency to withdraw its deposited moneys from the LAIF, upon demand, may not be altered, impaired, or denied in any way, by any state official or state agency based upon the state’s failure to adopt a State Budget by July 1 of each new fiscal year.”
Investments in LAIF may not exceed the legally authorized limits.

County Pool Investment Funds

County Pool Investment Funds are local government investment pools operated on the C ounty level. Funds are aggregated from public agencies and placed in the custody of the County T reasurer or C hief Finance Officer for investment and reinvestment. County pools have no maximum maturity and no specifications for the maximum percentage of a portfolio that can be invested in the pools. There are also no minimum rating requirements for the quality of these pools.

Joint Powers Authority Pools

Joint Powers Authority Pools (JPAs) are local government investment pools comprised of at least two entities and accredited by the California Joint Powers Authority (CAJPA). Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission,
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in Section 53601, subdivisions (a) to (n), and (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

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CAMP (the California Asset Management Program), for instance, provides California public agencies, together with any bond trustee acting on behalf of such public agency, assistance with the investment of and accounting for bond proceeds and surplus funds. For bond proceeds, the objective of CAMP is to invest and account of such proceeds in compliance with arbitrage management and rebate requirements of the Internal Revenue Service. The program includes the California Asset Management Trust, a California common law trust organized in 1989. The Trust currently offers a professionally managed money market investment portfolio, the Cash Reserve Portfolio, to provide public agencies with a convenient method of pooling funds for temporary investment pending their expenditure. The Trust also provides record keeping, custodial and arbitrage rebate calculation services for bond proceeds. As part of the program, public agencies may also establish individual, professionally managed investment accounts.

The Pool seeks to attain as high a level of current income as is consistent with the preservation of principal. The Pool purchases only investments of the type in which public agencies are permitted by statute to invest surplus funds and proceeds of their own bonds.

Collateralized Bank Deposits

Bank deposits with appropriate securities (ie: surety bonds or letters of credit) pledged by the depositories in order to safeguard the underlying value of the original deposit. Such deposits shall have a final maturity not exceeding five years from the date of trade settlement. Investments in such issues are not limited in the portfolio.

CERTIFICATES OF DEPOSITS (CD)

Certificates of Deposits, sometimes known as "Jumbo Accounts" or "Fixed CD's" are savings accounts with Banks or Savings and Loans. These accounts are for a specific amount, have a set interest rate, and set maturity date. There is a substantial interest penalty if the CD is withdrawn prior to the maturity date.

The State law requires Public Fund CD's to be collateralized by the financial institution at 110% with US Government notes/bonds or at 150% with quality First Trust Deeds. This collateral can be waived if Federal Insurance (FDIC for banks or FSLIC for savings and loans) is available.

The City generally waives the collateralization requirements for the FDIC or FSLIC insurance. The waiver of collateral is a wide spread practice and will generally generate higher interest rates and provide the greatest security for the funds from the Federal Insurance Agencies.

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NEGOTIABLE CERTIFICATE OF DEPOSIT (NCD)

This investment is similar to the Fixed CD's above. However, the NCD can be sold through a broker on a "secondary market" prior to the maturity date. Normally, NCD's are issued in $500,000 and $1,000,000 amounts. The State Code limits NCD's to not more than 30% of the local agency's portfolio and to a five -year maximum term. The security is the credit worthiness of the issuer. These deposits are uninsured and uncollateralized promissory notes.

BANKER'S ACCEPTANCES (BA)

A Banker's Acceptance is a time draft of invested funds, which has been drawn on and accepted for repayment by a bank. This financial instrument is generally used for short term (30 and 180 days) financing of export, import, or storage of goods. By accepting the draft (investment of City funds), the bank is liable for the payment at maturity. This bank liability makes the Banker's Acceptance a marketable investment. The State Code limits BA's to not more than 180 days to maturity and 40% of the local agency's portfolio. In addition, not more than 30% of the local agency’s portfolio may be placed in any one bank.

US TREASURY BILLS

Commonly referred to as T -Bills, these are short -term marketable securities sold as obligations of the US Government. They are offered in three month, six month, nine month and one -year maturities. T -Bills do not accrue interest but are sold at a discount, and pay the face value at maturity.

US TREASURY NOTES

These are marketable, interest -bearing securities sold as obligations of the US Government with original maturities of one to ten years. Interest is paid semi - annually.

US TREASURY BONDS

These are the same as US Treasury Notes except they have original maturities of ten years or longer.

FEDERAL AGENCY ISSUES

Many Federal Government Agencies are authorized to issue short term and long term obligations that are used to finance various programs such as home loans, business loans, farm loans, etc. These Agencies were created by the Federal Government in the 1930's and have since become independent quasi -public agencies. The security for their issues is the guarantee of the Agency to pay. The Federal Government has only an implied liability to the extent that the Agency has an open credit line to borrow from the U.S. Treasury. It is widely accepted that Federal Agency issues are as secure as U.S. Government notes.

There is an active secondary market available to sell these issues prior to maturity.

The issues are fairly liquid depending on the prevailing market interest rates at the time of sale.

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Some of the more common agency notes are issued by the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Banks, Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Farm Credit Banks.

REPURCHASE AGREEMENTS AND REVERSE REPURCHASE AGREEMENTS (REPOS)

A Repurchase Agreement is a short-term investment agreement to loan City funds for a fixed period in return for a fixed interest rate and secured collateral, such as U.S.

Treasuries or Agency Notes. This type of investment is usually done for overnight or very short term (7 days) investment of funds left in the general operating checking account. Reverse Repurchase agreements is a short-term investment, which is used to take advantage of market interest rate changes and increase the size of the portfolio.

State law was amended in 1996 to limit the use of both repurchase and reverse repurchase agreements. The City Council must approve each reverse repurchase agreement.

COMMERCIAL PAPER (CP)

Commercial Paper is unsecured promissory notes of industrial corporations, utilities and bank holding companies. The notes are in bearer form in amounts starting at $100,000. State law limits the City to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating.

Cities may not invest more than 25% of the portfolio in commercial paper and the CP’s may not exceed a term of 397 days.

MUTUAL FUNDS

An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments, cities may invest in Mutual Funds or Money Market funds that receive the highest ranking or the highest letter and numerical rating by two of the three largest nationally recognized statistical ratings organizations. The Mutual Funds must abide by the same investment restrictions and regulations that apply to public agencies in California . Money Market Funds must follow regulations specified by the Security and Exchange Commission under the Investment Company Act of 1940. The City must verify that the Mutual Fund is in compliance with state laws for public agencies prior to purchasing shares.

GUARANTEED INVESTMENT CONTRACT (GIC)

This is an agreement acknowledging receipt of funds for deposit, specifying terms for withdrawal and guaranteeing a rate of interest to be paid. The investment follows all state laws for the investment of public funds.

ASSET-BACKED SECURITIES

Asset-backed securities are financial securities backed by a loan, lease or receivables against assets other than real estate and mortgage -backed securities. They are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset -backed securities are structured as trusts in order to perfect a security interest in the underlying assets. They shall have a final maturity ITEM 9.11.

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not exceeding five years from the date of trade settlement. If the issuer is not a US agency or government-sponsored enterprise, no more than 20% of the local agency’s portfolio may be invested in asset-backed securities and these securities must be rated at least “AA” by a NRSRO.

MORTGAGE-RELATED SECURITIES

A type of asset -backed security that is secured by a mort gage or collection of mortgages and usually pays periodic payments that are similar to coupon payments.

Furthermore, the mortgage must have originated from a regulated and authorized financial institution. Mortgage related securities shall have a final maturity not exceeding five years from the date of trade settlement . If the issuer is not a US agency or government-sponsored enterprise, no more than 20% of the local agency’s portfolio may be invested in mortgage related securities and these securities must be rated at least “AA” by a NRSRO.

SUPRANATIONAL OBLIGATIONS

Debt securities issued by international financial institutions, such as the World Bank, that provide development financing, advisory services, and/or other financial services to their member countries to achieve overall goal of improving living standards through sustainable economic growth. California Government Code limits investments to the International Bank for Reconstruction and Development, International Finance Corporation, and the Inter-American Development Bank.

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CITY OF RANCHO CORDOVA

CALIFORNIA

STATEMENT OF INVESTMENT POLICY
Adopted
August XX, 2026
ITEM 9.11.

ATTACHMENT 3

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1 CITY OF RANCHO CORDOVA, CALIFORNIA

STATEMENT OF INVESTMENT POLICY

POLICY

It is the policy of the City of Rancho Cordov a, CA (the “City”) to invest public funds in a manner that will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

SCOPE

This investment policy applies to all financial assets of the City. These funds are accounted for in the City Comprehensive Annual Financial Report and may include:

General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Permanent and Private Purpose Trust Funds

This Policy shall also apply to all funds of the City of Rancho Cordova including those funds which may be created as well as any other fund under the control of the City Treasurer.

PRUDENCE

The standard of prudence to be used by in vestment officials shall be the “prudent investor” standard and shall be applied in the context of managing an overall portfolio. The “prudent investor” standard states that:

When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with ca re, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

OBJECTIVE

The primary objectives, in priority order, of the City’s investment activities shall be:

Safety: Safety of principal is the foremost objective of the investment program.

Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.

Liquidity: The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

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2 Return on Investments (Yield): The City’s investments shall be designed with the objective of attaining a market rate of return throughout the budget and economic cycles, taking into account the investment risk constraints and liquidity needs.

DELEGATION OF AUTHORITY

The City Council annually delegates investment authority to the The City Treasurer , who is appointed by the City Manager and currently serves as the. The City Treasurer is currently the Finan ce DirectorAssistant City Manager/Chief Financial Officer. Pursuant to the Government Code, the City Council delegates the authority to invest or to reinvest funds, or to sell or exchange securities so purchased, to the City Treasurer for a one-year period. The City Treasurer is charged with the responsibility for carrying out the policies of the City Council and shall assume full responsibility for investment transactions until the delegation of authority is revoked or expires.

The City Treasurer is responsible for th e overall administra tion of the City's investment program, including cash management, investment transactions, and account reconciliations. The City Treasur er may delegate administrative and operational responsibilities associated with the investment program to qualified members of the Finance Department, wh o shall act under the direction and supervision of the City Treasurer. Such delegation shall not relieve the City Treasurer of the responsibility for investment transactions or compliance with this Investment Policy. The daily cash manage ment, investment transactions and account reconciliations are the primary responsibilities of the City Treasurer. These activities are also carried out by other members of the Finance Department under the direction of the City Treasurer. The City Treasurer shall establish procedures for the operation consistent with this investment policy.

The City Treasurer and authorized individuals acting in accordance with established written procedures, and thethis investment policy , and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

ETHICS AND CONFLICT OF INTEREST

Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program or which could impair their ability to make impartial decisions.

PERMITTED INVESTMENTS

California Government Code Sections 53601, 53635 and 16429.1 govern the investments permitted for purchase by the City. Eligible investments are summarized in the chart below. Specific footnotes pertaining to these investments can be found in Appendix I. Limitations and definitions of these investments can be found in Appendix II and in the Glossary of this Policy.

In the event an apparent discrepancy is found between this Policy and the Government Code, the most restrictive para meters will take precedence. Percentage ITEM 9.11.

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3 holding limits listed in this Policy apply at the time the security is purchased. Credit ratings, where shown, specify the minimum credit rating category required at the time the security is purchased. Securities that have been do wngraded to a level that is below the minimum ratings described herein may be sold or held at the City’s discretion. The portfolio will be brought back into compliance with Investment Policy guidelines as soon as is practicable.

ELIGIBLE INVESTMENTS UNDER STATE CODE

Investment Typea Maximum
Maturity
Maximum Specified
Percentage of
Portfolioc
Minimum
Quality Requirements
Local Agency Bonds 5 yearsb None None
U.S. Treasury Obligations 5 yearsb None None
State of California Obligations 5 yearsb None None
CA. Local Agency Obligations 5 yearsb None None
U.S. Agencies 5 yearsb None None
Bankers' Acceptances 180 days 40 percent None
Commercial Paper 270 397 days 25 percent of the
agency's moneyf,e
"A-1or equivalent; if
the issuer has issued
long-term debt it must
be rated "A" without
regard to modifiers
f
Certificates of Deposit 5 years 30 percentg None

Repurchase Agreements 1 year None None
Reverse Repurchase Agreements and
Securities Lendin
g Agreements
92 daysh 20 percent of the base
value of the portfolio
Nonei
Medium-Term Notesj 5 years 30 percent "A" rating
Mutual Funds N/A 20 percentk Multiple l,m
Collateralized Bank Deposits 5 years None None
Mortgage Related Securities 5 years 20 percentd "AA" Ratingn Asset-Backed Securities 5 years 20 percentd "AA" Ratingn Supranationals 5 years 30 percent “AA” Rating
County Pooled Investment Funds N/A None None
Joint Powers Authority Pool N/A None Multipleo
Local Agency Investment Fund (LAIF) N/A None None

INELIGIBLE INVESTMENTS

As provided in California Government Code section 53601.6, the City shall not invest any funds in inverse floaters, range notes, mo rtgage derived interest-only strips or in any security that could result in zero interest accrual if held to maturity.

ELIGIBLE INVESTMENTS FOR BOND PROCEEDS
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4 Bond proceeds shall be invested in securities permitted by the applicable bond documents. If the bond documents are silent as to the permitted investments, bond proceeds will be invested in securities permitted by this Policy.

With respect to maximum maturities, the Policy authorizes investing bond reserve fund proceeds beyond five years if prudent in the opinion of the City Treasurer.

MAXIMUM MATURITIES

Notwithstanding the five year maturity limitation, the City Council grants its express authority per Government Code Section 53601 to invest with maturities extending beyond five years.

SELECTION OF BROKER/DEALERS

Each approved broker/dealer must possess an authorizing certificate from the California Commissioner of Corporations as required by Section 25210 of the California Corporations Code.

To be eligible, a firm must meet at least one of the following criteria:

1. be recognized as Primary Dealers by th e Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or

2. report voluntarily to the Federal Reserve Bank of New York, or

3. qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).

The City Treasurer will select broker/dealers on the basis of their expertise in public cash management and their abi lity to provide service to th e City’s account. The City may engage the services of investment adviso ry firms to assist in the management of the Portfolio. Such investment advisors may utilize their own list of approved broker/dealers; however, the list shall comply with the criteria li sted above and shall be provided to the City on an annual basis or upon request.

SAFEKEEPING AND CUSTODY

The City Treasurer shall select one or more financial institutions to provide safekeeping and custodial services for the City. A Safekeeping or Custodial ITEM 9.11.

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5 Agreement approved by the City shall be executed with each custodian bank prior to utilizing that bank's safekeeping services.

Custodian banks will be selected on the basis of their ability to provide services for the City's account and the competitive pricing of their safekeeping related services.

The purchase and sale of securities and re purchase agreement transactions shall be settled on a delivery versus payment basis. Ownership of all securities shall be perfected in the name of the City. Sufficient evidence to title shall be consistent with modern investment, banking and commercial practices.

All investment securities purchased by the City shall be delivered by book entry and shall be held in third-party safekeeping by the City approved custodian bank, its correspondent bank or the Depository Trust Company (DTC).

The City’s custodian shall be required to furnish the City a list of holdings on at least a monthly basis and safekeeping receipts or customer confirmations shall be issued for each transaction.

INTERNAL CONTROL

REPORTING

Schedules in the quarterly Treasurer’s Report will include the following:

1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City;

2. A description of the funds, investments and programs;

3. A market value as of the date of the re port (or the most recent valuation as to assets not valued monthly) and the source of the valuation;

4. A statement of compliance with the investment policy or an explanation for non- compliance; and

5. A statement of the City’s ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case.

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6 The quarterly report shall state compliance of the portfolio to the investment policy, or manner in which the portfolio is not in compliance. The quarterly report shall also include a statement denoting the ability of the City to meet its expenditure requirements for the next six months, or pr ovide an explanation as to why sufficient money shall, or may, not be available.

POLICY REVIEW

The investment policy shall be adopted by resolution of the City Council. The investment policy shall be reviewed at least annually by Staff to ensure its consistency with the overall objections of preservation of principal, liquidity and yield, and its relevance to current law and financial and economic trends. Any amendments to the policy shall be forwarded to the City Council for approval.

ITEM 9.11.

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7 Appendix I

Table of Notes for Exhibit 1
a. Sources: Government Code Sections 16429.1, 53601, 53601.8, 53635, and 53638. b. Government Code Section 53601 provides that th e maximum term of any investment authorized under this section, unless otherwise stated, is five years. Ho wever, with the consent of this policy, the legislative body grants express authority to make investments as a part of an investment program approved by the legislative body that exceeds this five year maturity limit. The said approval must be issued no less than three months prior to the purchase of any security exceeding the five-year maturity limit. c. Percentages apply to all portfol io investments regardless of source of funds. For instance, cash from a reverse repurchase agreement would be subject to the restrictions. d. No more than 20 percent of the agency's funds may be in mortgage-backed securities, collateralized mortgage obligations, and consumer receivables as authorized under Section 53601 (o), if the issuer is not a US agency or government-sponsored enterprise.
e. No more than 10 percent of the City’s funds may be invested in the commercial paper and the medium- term notes of any one issuer.
f. Issuing corporation must be organized and operat ing with the U.S. and have assets in excess of $500,000,000 or meets other criteria as authorized by Government Code Section 53601 (h). g. No more than 30 percent of the City’s total funds may be invested in Certificates of Deposits authorized under Sections 53601.8, 53635.8, and 53601 (i) combined. h. Reverse repurchase agreements or securities lending agreements may exceed the 92-day term if the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repur chase agreement or securities lending agreement and the final maturity dates of the same security.
i. Reverse repurchase agreements mu st be made only with primary deal ers of the Federal Reserve Bank of New York or with a nationally or state chartered bank that has a significant relationship with the local agency. The local agency must have held the securities used for the agreements for at least 30 days. j. "Medium-term notes" are defined in Government Code Section 53601 as "all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the U.S. or by deposito ry institutions licensed by the U.S. or any state and operating within the U.S. " “Organized and Operating” is defined in Government Code Section 53601 (h) No more than 10 percent of the City’s funds may be invested in the commerc ial paper and the medium- term notes of any one issuer.
k. No more than 10 percent of the City’s mo ney may be invested in any one mutual fund. l. A mutual fund must receive the highest ranking by not less than two nationally recognized statistical ratings organizations or the fund must retain an investment advisor who is registered with the SEC (or exempt from registration), has asse ts under management in excess of $500 million, and has at least five years experience investing in instruments authorized by Government Code Sections 53601 and 53635. m. A money market mutual fund must receive the high est ranking by not less than two nationally recognized statistical ratings organizations or retain an investme nt advisor registered with the SEC or exempt from registration and who has not less than five years experience investing in money market instruments with assets under management in excess of $500 million.
n. Issuer Security must have an "A A" rating or better for the issuer's debt as provided by a nationally recognized statistical rating s organization (NRSRO), if the issuer is not a US agency or government- sponsored enterprise.
o. A joint powers authority pool , organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in Government Code Section 53601 subdivisions (a) to (r), inclusive.

To be eligible, i t must retain an investment advisor who is registered with the SEC (or exempt from ITEM 9.11.

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8 registration), has assets under management in excess of $500 million, and has at least five years experience investing in instruments authorized by Government Code Section 53601, subdivisions (a) to (nq).

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9 Appendix II

LIGIBLE INVESTMENTS

A. State of California Local Agency Investment Fund (“LAIF”). The City may invest in LAIF pursuant to California Government Code Section 16429.1.

B. California Asset Management Trust. The City may invest in the shares in the California Asset Management Trust, so long as the portfolio is rated among the top two rating categories by a Nationally Recognized Statistical Rating Organization (NRSRO). NRSRO.

C. Certificates of Deposit. Authorized under Sections 53601.8, 53635.8, and 53601(i). No more than 30% of the City’s total funds may be invested in Certificates of Deposit.
.

D. Banker’s Acceptances. Banker’s acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System.

Purchases of banker’s acceptances ma y not exceed 180 days maturity.

Investments in banker’s acceptances are further limited to 40% of the portfolio.

F. Federal Agency Securities. Federal agency or United States government- sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaran teed as to principa l and interest by federal agencies or United States government-sponsored enterprises.

G. Repurchase Agreements. Repurchase agreements which have a final maturity not exceeding one year from the date of trade settlement. The City may enter into repurchase agreements with counterparties which have (i) minimum assets and capital of $25 billion in assets and $350 million in capital; (ii) five years of acceptable audited financial results; and (iii) a strong reputation among market participants.

The following collateral restrictions will be observed:

Only U.S. Treasury securities or Federal Agency securities will be acceptable collateral. All securities underlying repurchase agreements must be delivered to the City’s custodian bank versus payment or be handled under a properly executed tri-party repurchase agreemen t. The total market value of all collateral for each repurchase agreement must equal or exceed 102 percent of the total dollar value of the money invested by the City for the term of the investment. For any repurchase agreement with a term of more than one day, the value of the underlying securities must be reviewed on an on-going basis according to market conditions. Market value must be calculated each time there is a substitution of collateral.

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10 The City or its Trustee shall have perfected first security interest under the Uniform Commercial Code in all securitie s subject to repurchase agreements.

The City shall have properly executed a Professional Services Agreement with each counter party with which it enters into repurchase agreements.

H. Commercial Paper. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided by a NRSRO.

The entity that, issues commercial paper shall meet all of the following conditions in one of the following

(or)

Investments in commercial paper are limited to a maximum of 25% of the portfolio with no more than 5% of the portfolio invested in the commercial paper of any one issuer. Purchases shall not exceed 10 percent of the outstanding paper of the issuing corporation. The maximum investment maturity is restricted to 270 397 days.

I. Mutual Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission (S EC) under the Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1, et seq.).

The City may invest in shares of bene ficial interest issued by a company which shall have met either of the following criteria:

a. Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.

(or)

The purchase price of shares of benefici al interest purchased pursuant to this subdivision shall not include any commission that the companies may charge.

Investments in Mutual Funds are limited to 20% of the portfolio and no more than 10% of the portfolio may be invested in any one fund.

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11 J. Shares of Beneficial Interest issued by a joint powers authority organized pursuant to Section 6509.7 that invest in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that:

(1) is registered or exempt from registration with the Securities and Exchange Commission.
(2) has at least five years of experi ence investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601.
(3) has assets under management in excess of $500,000,000.

K. The Sacramento County Investment Pool . The City may invest in this investment pool, established by the Sacramento County Treasurer for the benefit of local public agencies.

L. Municipal & State Obligations:

A. Municipal bonds including registered notes or bonds of any of the 50 states, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled , or operated by a state or by a department, board, agency, or authority of any of the 50 states.

B. In addition, bonds, notes, warrants, or other evidences of indebtedness of any local agency in California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

M. Medium-Term Notes. Notes issued by corporatio ns organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a final maturity not exceeding five years from the date of trade settlement, and rated at least “A” or the equivalent by a NRSRO. Investments in medium-term notes are limited to 30% of the portfolio.

N. Asset-Backed Securities. A mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer r eceivable passthrough certificate, or consumer receivable-backed bond of a maximum of five years’ maturity. If the issuer is not a US agency or government-sponsored enterprise, Ssecurities eligible for investment under this subdivision shall be issued by an issuer having an rated at least “AA” or higher rating for the issuer’s debt as provided by an NRSRO and ITEM 9.11.

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12 rated in a rating category of “AA” or its equivalent or better by an NRSRO.

Purchase of securities authorized by this subdivision and may not exceed 20% of the portfolio.

O. Supranationals. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better by a n NRSRO and are limited to 30% of the portfolio.

Securities that have been downgraded to a level that is below the minimum ratings described herein may be sold or held at the City's discretion. The portfolio will be brought back into compliance with Investment Policy guidelines as soon as is practical.

Commented [MM1]: This was moved up into the beginning of the Policy document
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13 CITY OF RANCHO CORDOVA

STATEMENT OF INVESTMENT POLICY

GLOSSARY OF TYPES OF INVESTMENTS

AVAILABLE TO LOCAL GOVERNMENTS

STATE INVESTMENT POOL (LAIF)

The Local Agency Investment Fund (LAIF) is a voluntary program created by statute; began in 1977 as an investment alternative for California's local governments and special districts. Th e enabling legislation for the LAIF is Section 16429.1 et seq. of the California Government Code.

This program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the Treasurer's Office investment staff at no ad ditional cost to the taxpayer. This in- house management team is comprised of ci vil servants who have each worked for the State Treasurer's Office for an average of 20 years.

The LAIF is part of the Pooled Money Investment Account (PMIA). The PMIA began in 1953 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Commit tee. The PMIB members are the State Treasurer, Director of Finance, and State Controller.

The Local Investment Adviso ry Board (LIAB) provides oversight for LAIF. The Board consists of five members as designat ed by statute. The Chairman is the State Treasurer or his designated representative. Two members qualified by training and experience in the field of investment or fina nce, and the State Treasurer appoints two members who are treasurers, finance or fiscal officers or business managers employed by any county, city or local district or municipal corporation of this state. The term of each appointment is two years or at the pleasure of the appointing authority.

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14 the State Controller’s Office as well as an in-house audit process involving three separate divisions.

Under Federal Law, the State of Californ ia cannot declare bankruptcy, thereby allowing the Government Code Section 16429.3 to stand. This Section states that “moneys placed with the Treasurer for deposit in the LAIF by cities, counties, special districts, nonprofit corporations, or qualified quasi-governmental agencies shall not be subject to either of the following: (a) transfer or loan pursuant to Sections 16310, 16312, or 16313, or (b) impoundment or seizure by any state official or state agency.”

During the 2002 legislative session, California Government Code Section 16429.4 was added to the LAIF’s enabling legislation. The Section states that “the right of a city, county, city and county, special district, nonprofit corporation, or qualified quasi-governmental agency to withdraw its deposited moneys from the LAIF, upon demand, may not be altered, impaired, or denied in any way, by any state official or state agency based upon the st ate’s failure to adopt a Stat e Budget by July 1 of each new fiscal year.”
Investments in LAIF may not exceed the legally authorized limits.

County Pool Investment Funds

County Pool Investment Funds are local government investment pools operated on the County level. Funds ar e aggregated from public agencies and placed in the custody of the County Treasurer or Ch ief Finance Officer for investment and reinvestment. County pools have no maximum maturity and no specifications for the maximum percentage of a portfolio that can be invested in the pools. There are also no minimum rating requirements for the quality of these pools.

Joint Powers Authority Pools

Joint Powers Authority Pools (JPAs) are local government investment pools comprised of at least two entities and accr edited by the California Joint Powers Authority (CAJPA). Each shar e shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is register ed or exempt from registrati on with the Securities and Exchange Commission,
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in Section 53601, subdivisions (a) to (n), and (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

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15 CAMP (the California Asset Management Program), for instance, provides California public agencies, together with any bond trustee acting on behalf of such public agency, assistance with the investment of and accoun ting for bond proceeds and surplus funds. For bond proceeds, the objec tive of CAMP is to invest and account of such proceeds in compliance with arbitrage management and rebate requirements of the Internal Revenue Service. The program includes the California Asset Management Trust, a California common law trust organized in 1989. The Trust currently offers a professionally managed money market investment portfolio, the Cash Reserve Portfolio, to provide public agencies with a convenient method of pooling funds for temporary investment pending their expenditure. The Trust also provides record keeping, custodial and arbi trage rebate calculation services for bond proceeds. As part of the program, public agencies may also establish individual, professionally managed investment accounts.

Collateralized Bank Deposits

CERTIFICATES OF DEPOSITS (CD)

The State law requires Public Fund CD's to be collateralized by the financial institution at 110% with US Government notes/bonds or at 150% with quality First Trust Deeds. This collateral can be waiv ed if Federal Insurance (FDIC for banks or FSLIC for savings and loans) is available.

The City generally waives the collateraliz ation requirements for the FDIC or FSLIC insurance. The waiver of collateral is a wide spread practi ce and will generally generate higher interest rates and provide th e greatest security for the funds from the Federal Insurance Agencies.

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16 NEGOTIABLE CERTIFICATE OF DEPOSIT (NCD)

This investment is similar to the Fixed CD's above. However, the NCD can be sold through a broker on a "secondary market" prior to the maturity date. Normally, NCD's are issued in $500,000 and $1,000,000 amounts. The State Code limits NCD's to not more than 30% of the local agency 's portfolio and to a five-year maximum term. The security is the credit worthiness of the issuer. These deposits are uninsured and uncollateralized promissory notes.

BANKER'S ACCEPTANCES (BA)

A Banker's Acceptance is a time draft of invested funds, whic h has been drawn on and accepted for repayment by a bank. This financial instrument is generally used for short term (30 and 180 days) financing of export, import, or storage of goods. By accepting the draft (inve stment of City funds), the bank is liable for the payment at maturity. This bank liability makes the Banker's Acceptance a marketable investment. The State Code limits BA's to not more than 180 days to maturity and 40% of the local agency's portfolio. In addition, not more than 30% of the local agency’s portfolio may be placed in any one bank.

US TREASURY BILLS

Commonly referred to as T-Bills, these are sh ort-term marketable securities sold as obligations of the US Government. They are offered in three month, six month, nine month and one-year maturities. T-Bills do not accrue interest but are sold at a discount, and pay the face value at maturity.

US TREASURY NOTES

These are marketable, interest-bearing secu rities sold as obligations of the US Government with original maturities of one to ten years. Interest is paid semi- annually.

US TREASURY BONDS

These are the same as US Treasury Notes excep t they have original maturities of ten years or longer.

FEDERAL AGENCY ISSUES

Many Federal Government Agencies are authorized to issue short term and long term obligations that are used to finance various programs such as home loans, business loans, farm loans, etc. Th ese Agencies were created by the Federal Government in the 1930's and have since become independe nt quasi-public agen cies. The security for their issues is the guarantee of the Agency to pay. The Federal Government has only an implied liability to the extent that the Agency has an open credit line to borrow from the U.S. Treasury. It is wide ly accepted that Federal Agency issues are as secure as U.S. Government notes.

There is an active secondary market available to sell these issues prior to maturity.

The issues are fairly liquid depending on the prevailing market interest rates at the time of sale.

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17 Some of the more common agency notes are issued by the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Banks, Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Farm Credit Banks.

REPURCHASE AGREEMENTS AND REVERSE REPURCHASE AGREEMENTS (REPOS)

A Repurchase Agreement is a short-term investment agreement to loan City funds for a fixed period in return for a fixed interest rate and secured colla teral, such as U.S.

State law was amended in 1996 to limit the use of both repurchase and reverse repurchase agreements. The City Council must approve each reverse repurchase agreement.

COMMERCIAL PAPER (CP)

Cities may not invest more than 25% of the portfolio in commercial paper and the CP’s may not exceed a term of 270 397 days.

MUTUAL FUNDS

An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments, cities may invest in Mutual Funds or Money Market funds that receive the highest ranking or the highest letter and numerical rating by two of the three largest nationally recognized statistical ratings organizations. The Mutual Funds must abide by the same investment restrictions and regulations that apply to public agencies in California. Money Market Funds must follow regulations specified by the Security and Exchange Commission under the Investment Company Act of 1940. The City must verify that the Mutual Fund is in comp liance with state laws for public agencies prior to purchasing shares.

GUARANTEED INVESTMENT CONTRACT (GIC)

ASSET-BACKED SECURITIES

Asset-backed securities are financial securiti es backed by a loan, lease or receivables against assets other than real estate and mortgage-b acked securities. They are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset-backed securities are structured as trusts in order to perfect a security interest in the underlying assets. They shall have a final maturity ITEM 9.11.

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18 not exceeding five years from the date of trade settlement . If the issuer is not a US agency or government-spo nsored enterprise, and no more than 20% of the local agency’s portfolio may be invest ed in asset-backed securities and . Tt hese securities must be rated at least “AA” by a nationally recognized statistical ratings organization, and the issuer’s debt must be rated at least ANRSRO.

MORTGAGE-RELATED SECURITIES

A type of asset-backed security that is secured by a mortgage or collection of mortgages and usually pays periodic payments that are similar to coupon payments.

Furthermore, the mortgage must have originated from a regulated and authorized financial institution. Mortgage related securities shall have a final maturity not exceeding five years from the date of trade settlement . If the issuer is not a US agency or government-sponsored enterprise, and no more than 20% of the local agency’s portfolio may be invested in mortgage related securities and . Tt hese securities must be rated at least “AA” by a nationally recognized statistical ratings organization, and the issuer’s debt must be rated at least ANRSRO.

U.S. INSTRUMENTALITIESSUPRANATIONAL OBLIGATIONS

Debt securities issued by international financial institutions, such as the World Bank, that provide development financing, advisory services, and/or other financial services to their member countries to achieve overall goal of improving living standards through sustainable economic growth. In 2014, the California Assembly passed Bill 1933, which will add bonds issued by certain supranational organizations effective January 1, 2015 to the list of permitted investments in the California Government Code limits investments to the International Bank for Reconstruction and Development, International Finance Corporation, and the Inter-American Development Bank.

ITEM 9.11.

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MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 9.12.

DATE: August 17, 2026

TO: Honorable Mayor and Council Members

FROM: Russell Ducharme, Neighborhood Services Director

SUBJECT: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT AMENDMENT NO. 2025-18-2 WITH CIVICA LAW GROUP
FOR AN AMOUNT NOT TO EXCEED $100,000, MAKING THE
CUMULATIVE AMOUNT OF THE CONTRACT $250,000, FOR ON-

CALL RECEIVERSHIP ATTORNEY SERVICES

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would increase the Contract with Civica Law Group from $150,000 to an amount not to exceed $250,000 for on-call Receivership Attorney Services.

BACKGROUND

The City of Rancho Cordova entered into Contract No. 2025-18 with Civica Law on February 12, 2025, for an amount not to exceed $100,000 to provide specialized legal services associated with the receivership of substandard and dangerous properties. As legal proceedings advanced and the complexity of the cases became more apparent, the city executed Contract Amendment No. 2025-18-1, increasing the contract by $50,000 for a revised total contract amount of $150,000.

The original contract was established to facilitate the receivership of three properties that had been determined to present significant health, safety, and welfare concerns to the surrounding community. Receivership is one of the city's most comprehensive code enforcement tools and is utilized only after traditional compliance efforts have been exhausted. The process involves extensive legal proceedings, coordination with court-appointed receivers, oversight of property rehabilitation or demolition activities, and ongoing court appearances to ensure compliance with court orders.

As the receivership cases have progressed, legal services required to successfully complete the proceedings have exceeded the original estimates. Additional legal work has included continued court appearances, preparation of legal filings, coordination with the court-appointed receiver, negotiations with interested parties, and oversight necessary to bring each case to final resolution.

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City Council Staff Report - Page 2 of 2

An additional appropriation of $100,000 is necessary to complete the remaining receivership activities and bring the affected properties into compliance. Approval of this amendment will increase the total contract amount from $150,000 to $250,000 and will allow Civica Law to continue providing the specialized legal services necessary to successfully conclude the city's active receivership cases.

FISCAL IMPACT AND FUNDING SOURCE

The funding source for this contract will come through general funds. The city has, and will continue to make every effort to recover all attorney fees associated with the receivership properties.

ATTACHMENT(S)

1. Resolution

2. Contract Amendment No. 2025-18-2

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ITEM 9.12. 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 EXECUTE CONTRACT AMENDMENT NO. 2025-18-2 WITH CIVICA LAW GROUP, INCREASING THE CONTRACT AMOUNT TO AN AMOUNT NOT TO EXCEED $250,000

WHEREAS, the City of Rancho Cordova identified a need for specialized legal services related to property receiverships; and

WHEREAS, on February 12, 2025, the city entered into a two-year agreement with Civica Law Group APC in an amount not to exceed $100,000 to provide specialized property receivership legal services; and

WHEREAS, on August 4, 2025, the City Council authorized proceeding with the receivership process for three specific nuisance properties whose owners are deceased or incarcerated; and

WHEREAS, significant progress has been made toward the receivership of the three nuisance properties, resulting in the expenditure of the original $100,000 contract amount; and

WHEREAS, on March 2, 2026, an additional $50,000 was approved and added to the agreement to continue the receivership proceedings for the three nuisance properties, and those funds have since been expended; and

WHEREAS, an additional $100,000 and a one-year extension of the agreement are necessary to complete the receivership proceedings for the three nuisance properties; and

WHEREAS, the city will pursue all available remedies to recover, to the extent permitted by law, the legal costs and expenses incurred in connection with the receivership proceedings.

NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA authorizes the City Manager to Execute Contract Amendment No. 2025-18-2 with Civica Law Group increasing the contract to an amount not to exceed $250,000 in a form approved by the City Attorney.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 17th day of August 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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ITEM 9.12. ATTACHMENT 1 Resolution No. XX-2026 Page 2 of 2 ATTEST:

Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

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CONTRACT NO. 2025-18-2
First Amendment to Professional Services Agreement between City of Rancho Cordova and Civica Law Group, APC Page 1 of 2 Revised 06/2025

FIRST AMENDMENT TO THE AGREEM

ENT BETWEEN

THE CITY OF RANCHO CORDOVA AND CIVICA LAW GROUP, APC
This First Amendment to the Agreement (“Amendment”) is made by and between the City of Rancho Cordova (“City”) and Civica Law Group, APC (“Law Firm”) as of October 1, 2025. City and Law Firm are hereinafter collectively referred to as the “Parties.”

RECITALS
WHEREAS, the Parties entered into an Agreement (“A
greement”) dated February 12, 2025; and
WHEREAS, Amendment 2025-18-1 increased the compensation by $50,000, with a new contract amount increasing from $100,000 to $150,000; and
WHEREAS, this Amendment 2025-18-2 will increase the compensation by $100,000, with a new contract amount going from $150,000 to $250,000;
WHEREAS, this Amendment 2025-18-2 will modify the end date of the Agreement by one year, with a new end date of February 12, 2028;
.WHEREAS, the Parties agree that changes to the term and services provided for in the Agreement are necessary in order for the City to continue receiving services by Professional.

NOW, THEREFORE, the Parties hereto agree as follows:

AGREEMENT

1. Section 3.3 of the Agreement, “Compensation,” provides for the City to pay Law Firm a sum not to exceed one-hundred thousand dollars: ($100,000). The Parties agree to amend Section 3 of the Agreement in order to increase the compensation amount to pay Professional for additional services. The first sentence of Section 3 of the Agreement is amended to read as follows:
"The total cost to the City under this Agreement shall not exceed two hundred-fifty thousand dollars ($250,000).”

2. The Parties agree to modify the end date of the Agreement from February 12, 2027, to February 12, 2028. The first sentence of Section 1.1 of the Agreement, “Term of Service,” is amended to read as follows:
"The term of this Agreement shall begin on the date first noted above and shall end on February 12, 2028, and Professional shall complete the work described in Exhibit A prior to that date; unless the term of the Agreement is otherwise terminated or extended, as provided in Section 8." ITEM 9.12.

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CONTRACT NO. 2025-18-2

First Amendment to Professional Services Agreement between City of Rancho Cordova and Civica Law Group, APC Page 2 of 2 Revised 06/2025

3. All other terms and conditions in the Agreement shall remain in full force and effect to the extent they are not in conflict with this Amendment.

4. The signatures of the Parties to this Am endment may be executed and acknowledged on separate pages or in counterparts which, when attached to this Amendment, shall constitute one complete Amendment.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first above written.

CITY OF RANCHO CORDOVA PROFESSIONAL

______________________________ ______________________________ Micah Runner, City Manager Matthew Silver, Managing Partner

Date:__________________ Date:__________________

Attest:

______________________________
Stacy Leitner, CMC, City Clerk

Date:__________________

Approved as to Form:

______________________________
Adam U. Lindgren, City Attorney

Date:_________________

ITEM 9.12.

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MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 9.13.

DATE: August 17, 2026

TO: Honorable Mayor and Council Members

FROM: Albert Stricker, Public Works Director
Kristine Courdy, Principal Civil Engineer

SUBJECT: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT NO. 2026-190 WITH DOKKEN ENGINEERING IN AN
AMOUNT NOT TO EXCEED $1,490,761.00 FOR DESIGN OF THE

SEWER LIFT STATION FOR NORTH CAMPUS ROAD

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would award the design contract initiating the design of North Campus Road sewer lift station, a critical utility connection to the future developments and potential school site that will promote livability and quality of life in Rancho Cordova.

BACKGROUND

The North Campus Road Project is an approximately one-mile roadway segment south of Chrysanthy Boulevard that runs east/west between Rancho Cordova Parkway and Americanos Boulevard. This roadway segment is a critical connection to future developments and a potential school site that will promote livability and quality of life in Rancho Cordova. The ultimate configuration of North Campus Road will be four-lanes, however construction may be phased based on the status of the proposed developments. The Project also includes designing a small connection of Americanos Boulevard to North Campus Road.

On October 20, 2025 the City Council approved a contract award with Dokken Engineering to perform the environmental and civil engineering services for the North Campus Road Project. A sewer lift station is included in the Suncreek Specific Plan to support the future development and potential school site and will be the subject of this design contract. The sewer lift station is an important component of the infrastructure to support the potential school site and development in this area.

FISCAL IMPACT AND FUNDING SOURCE

The design of the sewer lift station consists of funding from the Community Enhancement and Investment Fund. The majority of the design costs related to the sewer lift station are reimbursable by Sacramento Area Sewer District (SASD).

ATTACHMENT(S)

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City Council Staff Report - Page 2 of 2

1. Resolution

2. Contract No. 2026-190

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ITEM 9.13. ATTACHMENT 1 Resolution No. XX-2026 Page 1 of 1

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 EXECUTE CONTRACT NO. 2026-190 WITH DOKKEN ENGINEERING IN AN AMOUNT NOT TO EXCEED $1,490,761.00

FOR CIVIL ENGINEERING DESIGN SERVICES FOR THE NORTH CAMPUS ROAD SEWER

LIFT STATION PROJECT

WHEREAS, the City of Rancho Cordova desires to enter into Contract No. 2026-190 with Dokken Engineering in an amount not to exceed $1,490,761.00 for design development services of the Sewer Lift Station for North Campus Road; and

WHEREAS, the Project includes design of the North Campus Road sewer lift station, a critical utility connection for future developments and potential school site that will promote livability and quality of life in Rancho Cordova; and

WHEREAS, this project will consist of funding from the Community Enhancement and Investment Fund and a portion is reimbursable by Sacramento Area Sewer District (SASD); and

WHEREAS, the services will exceed the maximum amount the City Manager has authorization to approve.

NOW, THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA does authorize the City Manager to execute Contract No. 2026-190 with Dokken Engineering in an amount not to exceed $1,490,761.00 and in a form approved by the City Attorney for the North Campus Road Sewer Lift Station Project.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 17th day of August 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

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CONTRACT NO. 2026-190
Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 1 of 15 Revised 06/2025

PROFESSIONAL SERVICES AGREEMENT BETWEEN
TH

E CITY OF RANCHO CORDOVA AND DOKKEN ENGINEERING
THIS AGREEMENT (hereinafter referred to as “Agreement”) for professional services is made by and between the City of Rancho Cordova, a California municipal corporation, (herein “City”) and Dokken Engineering, (“Professional”) as of August 17, 2026.

SECTION 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Professional shall provide to City the services described in the Scope of Services attached as Exhibit A (“Services”) at the time and place and in the manner as specified therein. In the event of a conflict or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.

1.1 Term of Services. The term of this Agreement shall begin on the date first noted above and shall end on December 31, 2028, the date of completion specified in Exhibit A. Professional shall complete the services described in Exhibit A prior to that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Professional to complete the services required by this Agreement shall not affect the City’s right to terminate the Agreement, as provided for in Section 8.

1.2 Standard of Performance. Professional shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Professional is engaged in the geographical area in which Professional practices its profession. Professional shall prepare all work products required by this Agreement in a substantial, first-class manner and shall conform to the standards of quality normally observed by a person practicing in Professional's profession.

1.3 Assignment of Personnel. Professional shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Professional shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.4 Time. Professional shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 1.2 above and to satisfy Professional’s obligations hereunder.

SECTION 2. COMPENSATION. City hereby agrees to pay Professional a sum not to exceed one million four hundred ninety thousand, seven hundred and sixty one dollars and zero cents: ($1,490,761.00), notwithstanding any contrary indications that may be contained in Professional’s proposal, for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Professional’s proposal, attached as Exhibit B, regarding the amount of compensation, the Agreement shall prevail. City shall pay Professional for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Professional for services rendered pursuant to this Agreement. Professional shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City, Professional shall not bill City for duplicate services performed by more than one person.

ITEM 9.13.

ATTACHMENT 2

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 2 of 15 Revised 06/2025
Professional and City acknowledge and agree that compensation paid by City to Professional under this Agreement is based upon Professional’s estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Professional. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Professional and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.

2.1 Invoice. Professional shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information:
Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
The beginning and ending dates of the billing period; A Task Summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion;
At City’s option, for each work item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense;
The total number of hours of work performed under the Agreement by Professional and each employee, agent, and subcontractor of Professional performing services hereunder, as well as a separate notice when the total number of hours of work by Professional and any individual employee, agent, or subcontractor of Professional reaches or exceeds 800 hours, which shall include an estimate of the time necessary to complete the work described in Exhibit A;
The Professional’s signature.

2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Professional.

2.3 Final Payment. City shall make the final payment within sixty (60) days after completion of the services and submittal to City of a final invoice, if all services required have been satisfactorily performed.

2.4 Total Payment. City shall pay for the services to be rendered by Professional pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Professional in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement.

In no event shall Professional submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless ITEM 9.13.

ATTACHMENT 2

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 3 of 15 Revised 06/2025
the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment.

2.5 Hourly Fees. Fees for work performed by Professional on an hourly basis shall not exceed the amounts shown on the fee schedule set forth in Exhibit B.

2.6 Reimbursable Expenses. Reimbursable expenses, if any, are set forth shall not exceed the amount in Exhibit B. Expenses not listed in Exhibit B are not chargeable to City.

Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded.

2.7 Payment of Taxes. Professional is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

2.8 Payment upon Termination. In the event that the City or Professional terminates this Agreement pursuant to Section 10, the City shall compensate the Professional for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Professional shall maintain adequate logs and timesheets in order to verify costs incurred to that date.

2.9 Authorization to Perform Services. The Professional is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

SECTION 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Professional shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement. City shall make available to Professional only the facilities and equipment listed in this section, and only under the terms and conditions set forth herein.

City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Professional’s use while consulting with City employees and reviewing records and the information in possession of the City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities.

SECTION 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Professional, at its own cost and expense, shall procure "occurrence coverage" insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Professional and its agents, representatives, employees, and subcontractors.

Professional shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects to the City. Professional shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Professional's bid. Professional shall not allow any subcontractor to commence work on any subcontract until Professional has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of ITEM 9.13.

ATTACHMENT 2

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 4 of 15 Revised 06/2025
this Agreement prior to execution. Professional shall maintain all required insurance listed herein for the duration of this Agreement.

4.1 Workers’ Compensation. Professional shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Professional. The Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident. In the alternative, Professional may rely on a self-insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code.

Determination of whether a self-insurance program meets the standards of the Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or the Professional, if a program of self-insurance is provided, shall waive all rights of subrogation against the City and its officers, officials, employees, and volunteers for loss arising from work performed under this Agreement.

An endorsement shall state that coverage shall not be canceled except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.

Professional shall notify City within fourteen (14) days of notification from Professional’s insurer if such coverage is suspended, voided or reduced in coverage or in limits.

The requirement to maintain Statutory Worker’s Compensation and Employer’s Liability Insurance may be waived by the City upon written verification that Professional does not have any employees.

Professional hereby acknowledges and agrees to the insurance requirements set ______ forth in this section which shall be monitored for compliance by Ebix, RCS, Inc.

Initial

4.2 Commercial General and Automobile Liability Insurance.

4.2.1 General requirements. Professional, at its own cost and expense, shall maintain commercial general liability insurance for the term of this Agreement in an amount not less than TWO MILLION DOLLARS ($2,000,000.00) and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00). The commercial general liability and automobile liability insurance shall be per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a commercial general liability insurance or an automobile liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non-owned automobiles.

ITEM 9.13.

ATTACHMENT 2

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 5 of 15 Revised 06/2025

4.2.2 Minimum scope of coverage. Commercial general liability coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (most recent edition) covering comprehensive General Liability on an “occurrence” basis. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (most recent edition), Code 1 (any auto). No endorsement shall be attached limiting the coverage.

4.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as an endorsement to the policy.
a. City and its officers, employees, agents, and volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of activities performed by or on behalf of Professional, including the insured’s general supervision of Professional; products and completed operations of Professional; premises owned, occupied, or used by Professional; and automobiles owned, leased, or used by the Professional.

The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or volunteers. b. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
c. An endorsement must state that coverage is primary insurance with respect to the City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by the City shall be called upon to contribute to a loss under the coverage.
d. Any failure of Professional to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.
e. An endorsement shall state that coverage shall not be canceled except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Professional shall notify City within fourteen (14) days of notification from Professional’s insurer if such coverage is suspended, voided or reduced in coverage or in limits.

Professional hereby acknowledges and agrees to the insurance requirements set ______ forth in this section which shall be monitored for compliance by Ebix, RCS, Inc.

Initial

4.3 Professional Liability Insurance. Professional, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than TWO MILLION DOLLARS ($2,000,000) covering the licensed professionals’ errors and omissions.

ITEM 9.13.

ATTACHMENT 2

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 6 of 15 Revised 06/2025

4.3.1 Any deductible or self-insured retention shall not exceed $150,000 per claim.

4.3.2 An endorsement shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.

4.3.3 The following provisions shall apply if the professional liability coverages are written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement or the work, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Professional must provide extended reporting coverage for a minimum of five (5) years after completion of the Agreement or the work.

The City shall have the right to exercise, at the Professional’s sole cost and expense, any extended reporting provisions of the policy, if the Professional cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to the City prior to the commencement of any work under this Agreement.

Professional hereby acknowledges and agrees to the insurance requirements set ______ forth in this section which shall be monitored for compliance by Ebix, RCS, Inc.

Initial

4.4 All Polices Requirements.

4.4.1 Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests’ rating of no less than A:VII.

4.4.2 Verification of coverage. Prior to beginning any work under this Agreement, Professional shall furnish City with certificates of insurance and with original endorsements effecting coverage required herein. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

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

ITEM 9.13.

ATTACHMENT 2

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 7 of 15 Revised 06/2025

4.4.4 Deductibles and Self-Insured Retentions. Professional shall disclose to and obtain the approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement.

During the period covered by this Agreement, only upon the prior express written authorization of Contract Administrator, Professional may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Professional procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.

4.4.5 Waiver of Subrogation. Professional hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss. Consultant agrees to obtain any endorsements that may be necessary to effect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the Professional, its employees, agents, and subcontractors.

4.4.6 Notice of Reduction in Coverage. In the event that any coverage required by this section is reduced, limited, or materially affected in any other manner, Professional shall provide written notice to City at Professional’s earliest possible opportunity and in no case later than five (5) days after Professional is notified of the change in coverage.

4.5 Remedies. In addition to any other remedies City may have if Professional fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Professional’s breach:
Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;

Order Professional to stop work under this Agreement or withhold any payment that becomes due to Professional hereunder, or both stop work and withhold any payment, until Professional demonstrates compliance with the requirements hereof; and/or

Terminate this Agreement.

SECTION 5. INDEMNIFICATION AND PROFESSIONAL’S RESPONSIBILITIES.

5.1 General Requirements. Professional shall indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers, employees, agents, and volunteers ITEM 9.13.

ATTACHMENT 2

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 8 of 15 Revised 06/2025
from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Professional or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Professional shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises wholly from the negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Professional or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law.

It is understood that the duty of Professional to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Professional from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Professional acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.

5.2 PERS Indemnification. In the event that Professional or any employee, agent, or subcontractor of Professional providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS as an employee of City, Professional shall indemnify, defend, and hold harmless City for the payment of any and all employee and/or employer contributions for PERS benefits on behalf of Professional or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City, and any attorneys’ fees and costs incurred by the City to enforce this Section.

5.3 Design Professionals. To the extent that the services under this Agreement include design professional services subject to California Civil Code Section 2782.8, as may be amended from time to time, Professional’s duty to indemnify under Sections 5.1 and 5.2 shall only be to the maximum extent permitted by California Civil Code Section 2782.8.

SECTION 6. STATUS OF PROFESSIONAL.

6.1 Independent Contractor. At all times during the term of this Agreement, Professional shall be an independent contractor as defined in Labor Code Section 3353, and shall not be an employee of City. Nothing contained in this Agreement shall be construed to be inconsistent with the foregoing relationship or status. City shall have the right to control Professional only insofar as the results of Professional's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means and methods by which Professional accomplishes services rendered pursuant to this Agreement. Professional shall have no power or authority by this Agreement to bind the City in any respect. All employees and agents hired or retained by Professional are employees and agents of Professional and not of the City. The City shall ITEM 9.13.

ATTACHMENT 2

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 9 of 15 Revised 06/2025
not be obligated in any way to pay any wage claims or other claims made against Professional by any such employees or agents, or any other person resulting from performance of this Agreement.

Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Professional and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Professional shall not allow any employee, agent or subcontractor to become eligible for a claim for PERS benefits.

6.2 Professional Not an Agent. Except as City may specify in writing, Professional shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Professional shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

SECTION 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Professional and any subcontractors shall comply with all laws and regulations applicable to the performance of the work hereunder, including but not limited to, the California Building Code, the Americans with Disabilities Act, and any copyright, patent or trademark law. Professional’s failure to comply with any law(s) or regulation(s) applicable to the performance of the work hereunder shall constitute a breach of contract.

7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Professional and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

7.4 Licenses and Permits. Professional represents and warrants to City that Professional and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Professional represents and warrants to City that Professional and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Professional and any subcontractors shall obtain and maintain valid Business Licenses from City during the term of this Agreement.

7.5 Nondiscrimination and Equal Opportunity. Professional shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, ITEM 9.13.

ATTACHMENT 2

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 10 of 15 Revised 06/2025
applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Professional under this Agreement.

Professional shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Professional thereby.

Professional shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement.

SECTION 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Professional.

Professional may cancel this Agreement upon thirty (30) days’ written notice to City and shall include in such notice the reasons for cancellation.

In the event of termination, Professional shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Professional delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Professional or prepared by or for Professional or the City in connection with this Agreement.

8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Professional understands and agrees that, if City grants such an extension, City shall have no obligation to provide Professional with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Professional for any otherwise reimbursable expenses incurred during the extension period.

8.3 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.

8.4 Assignment and Subcontracting. City and Professional recognize and agree that this Agreement contemplates personal performance by Professional and is based upon a determination of Professional’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Professional.

Professional may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Professional shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator.

ITEM 9.13.

ATTACHMENT 2

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Professional Services Agreement between
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8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Professional shall survive the termination of this Agreement.

8.6 Options upon Breach by Professional. If Professional materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, the following:

8.6.1 Immediately terminate the Agreement;

8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Professional pursuant to this Agreement;

8.6.3 Retain a different Professional to complete the services described in Exhibit A not finished by Professional; and

8.6.4 Charge Professional the difference between the cost to complete the services described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Professional pursuant to Section 2 if Professional had completed the work.

SECTION 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Professional’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Professional prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Professional hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Professional agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

9.2 Professional’s Books and Records. Professional shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Professional pursuant to this Agreement.

9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Professional to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request ITEM 9.13.

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 12 of 15 Revised 06/2025
of City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement.

SECTION 10. MISCELLANEOUS PROVISIONS.

10.1 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that Party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Sacramento or in the United States District Court for the Eastern District of California.

10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.

10.6 Use of Recycled Products. Professional shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

10.7 Conflict of Interest. Professional may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Professional in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.

Professional shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq.

Professional hereby warrants that it is not now, nor has it been in the previous twelve (12) months, an employee, agent, appointee, or official of the City. If Professional was an employee, agent, appointee, or official of the City in the previous twelve months, Professional warrants that it did not participate in any manner in the forming of this Agreement. Professional understands that, if this Agreement is made in violation of ITEM 9.13.

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 13 of 15 Revised 06/2025
Government Code §1090 et seq., the entire Agreement is void and Professional will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Professional will be required to reimburse the City for any sums paid to the Professional. Professional understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California.

10.8 Solicitation. Professional agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

10.9 Contract Administration. This Agreement shall be administered by Kristine Courdy ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee.

10.10 Notices.

Any written notice to City shall be sent to:

ATTN: Kristine Courdy
City of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, CA 95670

Any written notice to Professional shall be sent to:

ATTN: Ashley Orsaba-Finders
110 Blue Ravine Rd #200
Folsom, CA 95630
Email Address: [email protected]

10.11 Professional Seal. Where applicable in the determination of the Contract Administrator or when required by law, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility," as in the following example.

_________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 14 of 15 Revised 06/2025

10.12 Integration. This Agreement, including the scope of services attached hereto and incorporated herein as Exhibit A, and the compensation schedule attached hereto and incorporated herein as Exhibit B, represents the entire and integrated agreement between City and Professional and supersedes all prior negotiations, representations, or agreements, either written or oral.

10.13 IRS Form W-9. Professional shall complete and submit Internal Revenue Service Form W- 9 to the City before execution of this Agreement. The City’s Finance Director shall have authority to waive this requirement.

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering Page 15 of 15 Revised 06/2025
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year set forth above, which date shall be considered the effective date of this Agreement.

CITY OF RANCHO CORDOVA PROFESSIONAL

______________________________ ______________________________ Micah Runner, City Manager John Klemunes, President

Date:__________________ Date:__________________

Attest:

______________________________
Stacy Leitner, CMC, City Clerk

Date:__________________

Approved as to Form:

______________________________
Adam U. Lindgren, City Attorney

Date:_________________

ITEM 9.13.

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering - Exhibit A Page 1 of 1 Revised 06/2025

EXHIBIT A

SCOPE OF SERVICES

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June 2, 2026
City of Rancho Cordova
Public Works Department
2729 Prospect Park Drive
Rancho Cordova, CA 95670
Attn: Kristine Courdy, PE

RE: Proposal for the North Campus Drive Project –
SASD Pump Station – Scope and Fee
Dear Ms. Courdy:

We understand the City’s urgency to procure design services for the sewer lift station serving the North Campus Drive Project. Our proposed services are for the design of the improvements, utility coordination, right of way acquisition services, bid support, and construction support of the project.

We have prepared the scope and fee based on our understanding of the project from our meetings with the City and SASD, review of development and utility master planning documents, current construction status, and field review. There are several unknowns for the project primarily related to specific site needs, phasing, timing of other developments, utilities within Rancho Cordova Parkway, and other elements.

We understand the City wishes to have design complete ahead of summer of 2028 in accordance with Elk Grove Unified’s schedule to have the schools under construction during that time period. We anticipate the coordination with the school district and their engineer will be required.

We thank you for the opportunity to work with the City to deliver this important project to a successful conclusion, and we look forward to the prospect of working with the City of Rancho Cordova. We understand the urgency of this project and are willing to negotiate with the City immediately on terms herein.

Sincerely,
DOKKEN ENGINEERING, INC.

John A. Klemunes, Jr., PE | President Ashley Orsaba-Finders, PE | Project Manager [email protected] [email protected] Office: 916-858-0642 Cell: 916-260-3041
Ashley Orsaba-Finders, PE, QSD/P MBA
Project Manager
Address: 110 Blue Ravine Road, Suite 200
Folsom, CA 95630
Telephone: (916) 858-0642
Fax: (916) 858-0643
Mobile: (916) 260-3041
E-Mail: [email protected]

DOKKEN ENGINEERING CONTACT
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Scope of Work
TASK 1 - PROJECT MANAGEMENT AND COORDINATION
Dokken will coordinate and attend meetings with City and SASD Project Manager s and other required representatives from affected stakeholders as deemed necessary by the City. Dokken will prepare minutes for each meeting and distribute them to the Project Managers and other attendees. Dokken will perform all project management coordination necessary to maintain the Project Schedule.

Task 1.1 Project Management
Dokken shall prepare progress reports to record the progress of the project and as supporting data for invoices presented monthly to the City. The progress report shall include accomplished tasks for the month, anticipated progress for the next month, pend ing issues, and schedule completion target dates. Dokken shall mail a progress report with each monthly invoice. Dokken shall pro vide a detailed project baseline schedule indicating milestones, major activities, critical path tasks, and deliverables to the City for review and comments. Dokken shall update the schedule as required and provide updated schedules at each PDT meeting.

Task 1.2 Meetings and Coordination
Dokken shall coordinate and attend Project Development Team (PDT) meetings with the City staff and other representatives from agencies and stakeholders. PDT meetings will be held bi-monthly, as appropriate. Meeting minutes shall be prepared by Dokken for each meeting and distributed to the City's Project Manager and attendees. An Action Item List and a Deliverables Status Matrix shall be prepared and updated for each PDT meeting.

Task 1.3 Quality Assurance and Quality Control
Dokken shall have a quality control plan in effect during the entire course of the project. Dokken shall develop a plan establishing a process to ensure design calculations are independently checked. Exhibits and plans shall also be checked, corrected, and back- checked for accuracy and completeness. Dokken shall review subconsultant submittals to ensure that appropriate background information, study methodology, interpretation of data, format, and content are completed in accordance with current standard s.

Dokken shall provide Quality Control (QC) documentation with each submittal.

Deliverables:
 Project schedule
 Monthly progress reports
 Meeting agendas and minutes

TASK 2 – SURVEY
Task 2.1 Topographic Survey
Control - UNICO will utilize City approved NAD83 California State Plane Coordinate System and NAVD88 elevation datums for the project or any existing project control from nearby development for overall consistency. UNICO will prepare a control report of all primary controls to be used for the project. UNICO will set durable control points along the project limits and just beyond for utilization of future surveys and construction control.

Aerial Topographic Mapping - UNICO will facilitate the delivery of an overall photogrammetric aerial topographic survey and orthophotography along the proposed alignment. UNICO will set and locate aerial control panels at locations and frequency adequate to meet National Mapping Accuracy Standards of 1” = 40’ scale mapping, with 1’ contour intervals based on the approved mapping limits. Global Positioning System (GPS) methods and digital levels will be used for elevation verification. Aerial b ased topographic mapping will show all visible surface features, roadways, structures, 1’ contours , DTM ground surface and spot elevations within the mapping limits. UNICO will augment the aerial with spot shots and key utility and drainage features. The general limits include an approximately 200 foot wide strip from the planned North Campus Road up Rancho Cordova Parkway to the existing pump station at Chrysanthy. Color photo background imagery will be provided along the project limits utilizing the aerial ITEM 9.13.

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photography. The imagery will be adjusted using ortho-correction within the mapping limits, and simple rectification within the ground control limits.

Supplemental Topographic Surveys - UNICO will perform supplemental ground surveys at key design areas. Anticipated items requiring supplemental ground surveys include, but are not limited to roadway surveys, conform surveys, curbs, gutters, sidew alks, structures, drainage ditches, culverts, fences, trees, signs, poles, signals, overhead wires, lights, gas, water, electrical, valves, vaults, storm drain structures and manholes, sewer manholes, fiber and other visible utilities, including boring locations. UNICO wil l perform measure downs to relative storm drain and sewer structures for depth, invert, pipe size and flow direction. UNICO will map and mesh all supplemental topographic features into the main aerial topographic survey base file. It is assumed that six field days (48 Hours) will be necessary for supplemental topographic surveys and mapping.

Deliverables:
 Supplemental Topographic Survey Base File, 3D Surface, Points Files  Aerial Based Photogrammetric Topographic Base Map
 Survey Control Report

Task 2.2 Boundary Surveys
Right of Way and Boundary Mapping - UNICO will prepare right of way mapping for the project. UNICO will request parcel maps, records of surveys, corner record cards, deeds and other record information to map the right of way and properties that are impacted by the project. Field surveys will be performed to locate monuments, pins, monument wells and other boundary markers necessary to resolve and map the right of way and affected parcels. An overall LANDNET base map will be prepared as the basis of the right of way and parcel boundaries, including all easements, right of way and other encumbrances that are plottable within the title reports. Base map will be prepared with sufficient detail and accuracy to be applicable to the development of plats and legal descriptions during later phases of the project. This effort assumes the City will provide Preliminary Title Reports.

Deliverable:
 Right of Way and Boundary Base LANDNET Map
Task 2.3 Existing Utility Coordination and Potholing
Dokken will lead the utility coordination effort using the APWA A, B, C letter process for utilities already constructed with in the project limits and primarily within Rancho Cordova Parkway. Utility potholing will be included in this effort and assumed 25 potholes may be required.

The subconsultant fee for the potholing subcontractor is included as an Other Direct Cost item.

Deliverables:
 Utility A, B, and C Letters
 Potholing

TASK 3 - GEOTECHNICAL INVESTIGATION
Task 3.1 Geotechnical and Pavement Recommendations Report Dokken’s geotechnical subconsultant Geocon will develop a Geotechnical and Pavement Recommendations Report for the project.

Geocon will perform the following:
• Perform a limited geologic literature review to aid in evaluating the geologic and seismic conditions present at the site. • Review available design plans and conceptual layouts to select exploratory boring locations.

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• Perform a site reconnaissance to determine access and mark out the proposed exploration locations. • Notify subscribing utility companies via Underground Service Alert (USA) a minimum of two business days (as required by law) prior to performing exploratory excavations.
• Apply for and obtain an encroachment permit from the City of Rancho Cordova Public Works Department for the portion of the work on Rancho Cordova Parkway.
• Since our borings will not extend to within 10 feet of groundwater, a permit from the Sacramento County Environmental Management Division is not required.
• Provide the necessary traffic control measures during our fieldwork operations within the City right-of way on Rancho Cordova Parkway.
• Perform up to twelve (12) exploratory borings along the project alignment using a truck -mounted drill rig equipped with solid- flight and hollow-stem augers. Boring depths will range from approximately 15 to 40 feet, depending on conditions encountered.

We assume permission to enter the site will be coordinated/obtained by others. • Obtain representative soil samples from the exploratory borings. • Log the borings in accordance with the Unified Soil Classification System (USCS). • Upon completion, backfill the borings with the excavated soil and restore the surface with rapidest concrete. Excess excavated soil will be spread in unpaved portions of the city right-of-way. We assume that saw cutting and patching our core locations with HMA is not required and therefore, have excluded this effort from our fee estimate. If this is subsequently required by the City, additional fees will apply. For unpaved areas: upon completion, backfill the borings with the excavated soil. Excess excavated soil will be spread onsite near the borings.
• Perform geotechnical laboratory tests on selected samples to evaluate pertinent geotechnical parameters. • Evaluate the field and laboratory testing data and develop geotechnical recommendations and design parameters for the project as presently proposed. Prepare a summary report with our findings, conclusions, and recommendations. The report will include:
o Site Plan showing the locations of the exploration locations; o Logs of the explorations, including depth to groundwater (if encountered); o Laboratory test results;
o Summary of geotechnical constraints and mitigation alternatives (if necessary); o Anticipated excavation characteristics;
o Site preparation and grading recommendations;
o Suitability of onsite materials for use as engineered fill, import fill recommendations; o Utility trench excavation and backfill recommendations; o Sewer lift station and pump station foundation recommendations, including suitable foundation type(s), allowable bearing capacity, minimum embedment depths, anticipated settlement; o Slab-on-grade recommendations;
o Code-based seismic design criteria (2022 C(CBC / ASCE 7-16) o Recommended lateral earth pressures;
o Flexible pavement structural section design;
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o Screening-level soil corrosion potential evaluation, and o Construction considerations.

If the structural design of the sewer pump station is based on the 2025 CBC / ASCE 7 -22, we propose to perform a geophysical survey including two-dimensional Refraction Microtremor (ReMi) survey lines to evaluate the seismic site class.

The project may also include vegetated swales or similar stormwater management facilities. W e will perform up to three (3) field infiltration tests at select locations within shallow boreholes using an Aardvark permeameter. The depth of the tests should be specified by the civil engineer. We assume that the test will be up to 5 feet deep. These borings will be backfilled with excess soil cuttings following completion of infiltration testing. We will provide the measured and recommended design infiltration rates in the report.

Deliverables:
 Draft and Final Geotechnical and Pavement Recommendations Report

TASK 4 – DESIGN
Task 4.1 Basis of Design
Dokken will prepare a Basis of Design Memorandum to document the design criteria for approval by the City and SASD. The Basis of Design, will set the standards, project elements, phasing requirements, and other considerations needed by the design team to set the scope and move the project forward into Preliminary Engineering.

Deliverables:
 Draft and Final Basis of Design Memorandum

Task 4.2 Preliminary Design and Layout
Dokken will prepare a Preliminary Level (35%-level) design and layout based upon the criteria agreed upon in the Basis of Design task. This task will also include the preparation of the Level 4 Sewer Study that may be required for the project. The Prel iminary Design and Level 4 Sewer Study will be circulated to both the City and SASD for their approval.

Deliverables:
 Draft and Final Preliminary Design
 Draft and Final Level 4 Sewer Study

Task 4.3 65% Design
Dokken will prepare 65% Plans, Specifications, and Estimate (PS&E) for the project. The design will build upon the 35 % Plans and incorporate profiles and more detailed design of project features. Utilities that will be relocated ahead of the project will be shown in their proposed locations. As it is expected that some utilities will be reconstructed during construction of the project, work on those utilities will be included in the planset as Utility Sheets. Environmentally or culturally sensitive areas wi ll be delineated. The design plans shall be created using AutoCAD/Civil 3D, and the plans should follow all applicable City, SASD, County, and Caltrans design standards. This scope assumes the City or SASD will provide “boilerplate” or front -end specifications and Dokken will provide technical provisions for the project. Hydraulic transient analysis will be performed for the project to determine number and location of blow off and air vacuum valves.

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• Valve Vault
• Mechanical Details
• Bypass Plans
• Offline Storage Plan
• Erosion Control and Landscaping layouts
• Electrical Layouts
Dokken will provide written responses for each comment received on the Preliminary Design submittal and mark each comment as “incorporated” or “not incorporated”. For each “not incorporated” response, we will provide a descriptive reasoning stating w hy and what design standards or impact implementing the requested change would have. A meeting will be he ld following each submittal to resolve any disputed comments. The comment response matrix will be updated to show final disposition after the meeting.

Deliverables:
 One PDF copy of the complete (full size) plans for City and SASD review and comments  One PDF copy of the Engineer’s Estimate for Construction  One PDF and Word document copy of the Specifications
 Response to comments matrix
Task 4.4 95% Design
Dokken will prepare 95% PS&E for the project building upon the 65% submittal by providing full details as needed to construct the project. Utility conflict resolutions will also be shown in the planset. Utilities that will be relocated ahead of the project will be shown in their proposed locations. Environmentally or culturally sensitive areas will be delineated. This scope assumes the City will provide “boilerplate” or front-end specifications and Dokken will provide technical provisions for the project.

The plans shall be clear and concise, and will include:
• Title sheet
• Sheet Index
• Project Control Sheets
• Grading Plan
• Forcemain Plan and Profile Sheets
• Construction Details
• Civil Development Plan
• Wetwell Plan
• Valve Vault
• Mechanical Details
• Bypass Plans
• Offline Storage Plan
• Erosion Control and Landscaping layouts
• Electrical Layouts
• Miscellaneous Structures

Dokken will provide written responses for each comment received and mark each comment as “incorporated” or “not incorporated”. For each “not incorporated” response, we will provide descriptive reasoning stating why and what design standa rds or impact implementing the requested change would have. A meeting will be held following each submittal to resolve any disputed comments. The comment response matrix will be updated to show the final disposition after the meeting.

Task 4.5 100% Design
Dokken will prepare draft 100% PS&E for the project building upon the 9 5% submittal by providing last comment resolutions and updates from coordination activities. Utility conflict resolutions will also be shown in the planset. Utilities that will be relocated ahead of the project will be shown in their proposed locations. As it is expected that some utilities will be reconstructed during construction of the project, work on those utilities will be included in the planset as Utility Sheets. Environmentally or culturally sensitive areas will be delineated. The PS&E package will be fully developed and inclusive of right of way, environmental, and other project commitments. This scope assumes the City will provide “boilerplate” or front -end specifications and Dokken will provide ITEM 9.13.

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technical provisions for the project. Dokken will submit the draft 100% PS&E package to the City for final review and approv al.

Once approval is received, Dokken will finalize the construction documents by signing and stamping all sheets, sign and stamp specifications, and provide an updated Engineer’s Estimate.

Deliverables:
 Electronic copy of the draft PS&E
 One hard copy and one Excel copy of the Engineer’s Estimate  One hard copy of the Specifications, and one electronic (Word document) copy  Quantity calculations (as requested)
 Civil 3D files (as requested)
 Copies of agency approvals and permits not already provided to the City Task 4.6 Final Design
Dokken will prepare the Final PS&E for the project building upon the 100% submittal by providing last comment resolutions and updates from coordination activities. The PS&E package will be fully developed and inclusive of right of way, environmental, and other project commitments. This scope assumes the City will provide “boilerplate” or front -end specifications and Dokken will provide technical provisions for the project. Dokken will finalize the construction documents by signing and stamping all sheets, sign and stamp specifications, and provide an updated Engineer’s Estimate.

Deliverables:
 Electronic copy of the draft PS&E
 Signed and stamped final plans: one set of 22”x34”, one set of 11”x17” bond copies, and one PDF full-size copy  One hard copy and one Excel copy of the Engineer’s Estimate  One signed and stamped copy of the Specifications, and one electronic (Word document) copy  Quantity calculations (as requested)
 Construction cross sections at 25-foot intervals with all significant construction offsets and elevations appropriately labeled (as requested)
 Civil 3D files (as requested)
 Copies of agency approvals and permits not already provided to the City Task 4.6 Right of Way Support
Dokken will assist the City in obtaining right of way needed for the pump station. This may include obtaining Preliminary Ti tle Reports, Appraisals, Property Owner Exhibits, and Plat and Legals. Dokken has provided a bank of 136 hours for this effort based on the unknown needs at this time. Right of way needs beyond this can be negotiated at a later date.

Task 4.7 Pump Station Building (Optional)
During preliminary discussions with SASD, the agency noted that a controls and equipment building may be required for the pro ject.

As this major scope item is not fully vetted or know if it is required, we have included a placeholder cost that is a basis for negotiation once the scope is fully known for this project element.

TASK 5 BID SUPPORT
Dokken will be available to provide clarification and information about the PS&E package during the construction advertising and bidding process. Dokken will assist the City in the preparation of any addenda to the PS&E during the advertisement period, attend the project pre-bid meeting and provide written meeting notes. Dokken will review and comment on pre-bid meeting notes to determine any necessary addenda. Dokken shall prepare any plan revisions as determined necessary by addenda.

Deliverables:
 Assist in developing the pre-bid meeting agenda, attend, and take notes  Provide clarification and revisions of documents during advertising and preparation of any addenda as required

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TASK 6 CONSTRUCTION SUPPORT
Dokken will provide Construction Support Engineering and Record Drawing services, as requested by the City. This task will include typical construction engineering support design services during an estimated 9-month construction period. Dokken will resolve any design discrepancies or errors identified during construction in a timely manner to ensure construction delays are avoided or minimized.

The deliverables included in this task include the preparation and response to Requests for Information (RFIs), and the work will conclude with the preparation of as-built documents.

Deliverables:
 Response to RFIs
 As-builts / Record Drawings

This project will also negate the need for the Task Order 4, Task 6.2.4 which assumed a gravity pipeline rather than pump sta tion.

The budget for this unused task will be allocated to a contingency fund for Task Order 4.

Task 6.2.4 Temporary Gravity Pipeline
Dokken will prepare final design plans, specifications, and engineer’s estimate for a temporary gravity sewer pipeline to serve the school and temporarily divert sewage to the existing sewer in The Ranch development should elevations prove feasible . These deliverables will be included in the overall project planset and submitted at the same milestones. These plans will also be circulated to SASD for their review and approval. This effort assumes that just the pipelines in North Campus Road and im mediate connection to existing infrastructure can be made within the project limits or immediate to Americanos. The plan sheets are expected to be inclusive of plan, profiles, details, and connection information.

ITEM 9.13.

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CONTRACT NO. 2026-190

Professional Services Agreement between
City of Rancho Cordova and Dokken Engineering - Exhibit B Page 1 of 1 Revised 06/2025

EXHIBIT B

COMPENSATION SCHEDULE

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COST PROPOSAL ‐ HOURS BREAKDOWN BY TASK
CITY OF RANCHO CORDOVA
TASK ORDER 6 ‐ NCR SEWER LIFT STATION
QA/QC Manager
Project Manager
Senior Engineer 3
Senior Engineer 2
Senior Engineer 1
Associate Engineer 2
Associate Engineer 1
Assistant Engineer 2
Assistant Engineer 1
Right of Way Manager
Senior Right of Way Agent
Right of Way Appraiser
Right of Way Assistant
Principal
Rob Marks
Survey Manager
Ryan Ming, PLS
Senior Land Surveyor
Todd Jordan, PLS
Land Surveyor
Roy Porter, LSIT
Land Surveyor
Party Chief
Rodman
Survey Technician /
Drafter
BILLING RATES* $405 $315 $315 $285 $245 $215 $185 $160 $135 $245 $205 $125 $95 $275 $241 $170 $142 $142 $213 $213 $97 Task 1 ‐ Project Management 40 200 30 60 20 350 $8,530 $117,980

1.1 Project Management 120 120 $2,946 $40,746

1.2 Meetings and Coordination 80 30 60 20 190 $4,322 $59,772

1.3 Quality Assuarance and Quality Control 40 40 $1,263 $17,463 Task 2 ‐ Survey 20 20 100 100 240 $3,320 $60,000 $105,920 12 24 12 40 80 80 72 320 $12,650 $68,022

2.1 Topographic Survey 10 10 $191 $2,641 4 4 64 64 64 200 $12,650 $47,607

2.2 Boundary Survey 10 10 $191 $2,641 8 24 8 40 16 16 8 120 $20,415

2.3 Utility Coordination 20 100 100 220 $2,938 $60,000 $100,638 Task 3 ‐ Geotechnical Investigation
Task 4 ‐ Design 4 396 488 64 60 300 810 820 4 20 40 40 3,046 $47,023 $300,000 $950,363 75 75 $20,625 6 24 18 48 $3,000 $11,090

4.1 Basis of Design 80 40 20 140 $3,102 $42,902

4.2 Preliminary Design and Layout 100 40 20 80 100 340 $5,682 $78,582

4.3 65% Design 80 100 100 260 300 840 $12,026 $166,326 75 75 $20,625

4.4 90% Design 80 200 40 40 80 250 200 890 $14,216 $196,616

4.5 100% D esign 50 80 20 20 80 140 160 550 $8,304 $114,854

4.6 Final Design 6 24 20 40 60 150 $2,099 $29,029

4.7 Right of Way Support 4 4 4 20 4 20 40 40 136 $1,595 $22,055 6 24 18 48 $3,000 $11,090

4.8 Pump Station Building (Optional) $300,000 $300,000
Task 5 ‐ Bid Support 60 80 20 20 20 200 $3,998 $55,298
Task 6 ‐ Construction Support 200 400 80 120 120 920 $17,708 $244,908 TOTAL HOURS WITHOUT OPTIONAL TASKS 40 204 686 1,048 84 60 520 950 1,060 4 20 40 40 4,756 75 75 18 48 12 58 80 80 72 368 TOTAL COST WITHOUT OPTIONAL TASKS $16,200 $64,260 $216,090 $298,680 $20,580 $12,900 $96,200 $152,000 $143,100 $980 $4,100 $5,000 $3,800 $80,579 $60,000 $1,174,469 $20,625 $20,625 $4,343 $8,174 $1,703 $8,233 $17,030 $17,030 $6,948 $15,650 $79,112 TOTAL HOURS WITH OPTIONAL TASKS 40 204 686 1,048 84 60 520 950 1,060 4 20 40 40 4,756 75 75 18 48 12 58 80 80 72 368 TOTAL COST WITH OPTIONAL TASKS $16,200 $64,260 $216,090 $298,680 $20,580 $12,900 $96,200 $152,000 $143,100 $980 $4,100 $5,000 $3,800 $80,579 $360,000 $1,474,469 $20,625 $20,625 $4,343 $8,174 $1,703 $8,233 $17,030 $17,030 $6,948 $15,650 $79,112 *Billing Rates are in accordance with those set forth in the On‐Call Civil Design Services, Professional Land Surveying, Environmental, and Stormwater Services Contract (2/20/2025).

TASK DESCRIPTION
DOKKEN ENGINEERING
TOTAL

HOURS ESCALATION
OTHER
DIRECT
COST
TOTAL
COST
SCOTT FOSTER
ENGINEERING, INC. UNICO ENGINEERING
TOTAL
HOURS
TOTAL
COST
TOTAL
HOURS
OTHER
DIRECT
COST
TOTAL
COST

Page 1 of 3 ends

ITEM 9.13.

ATTACHMENT 2

Page 283 of 340 ends

COST PROPOSAL ‐ HOURS BREAKDOWN BY TASK
CITY OF RANCHO CORDOVA
TASK ORDER 6 ‐ NCR SEWER LIFT STATION
BILLING RATES*
Task 1 ‐ Project Management

1.1 Project Management

1.2 Meetings and Coordination

1.3 Quality Assuarance and Quality Control
Task 2 ‐ Survey

2.1 Topographic Survey

2.2 Boundary Survey

2.3 Utility Coordination
Task 3 ‐ Geotechnical Investigation
Task 4 ‐ Design

4.1 Basis of Design

4.2 Preliminary Design and Layout

4.3 65% Design

4.4 90% Design

4.5 100% Design

4.6 Final Design

4.7 Right of Wa y Support

4.8 Pump Station Building (Optional)
Task 5 ‐ Bid Support
Task 6 ‐ Construction Support
TOTAL HOURS WITHOUT OPTIONAL TASKS
TOTAL COST WITHOUT OPTIONAL TASKS
TOTAL HOURS WITH OPTIONAL TASKS
TOTAL COST WITH OPTIONAL TASKS
TASK DESCRIPTION
Sr. Staff Engineer /
Geologist
Sr. Staff Engineer /
Geologist
Sr. Staff Engineer /
Geologist (PW)
Sr. Project Engineer /
Geologist
Project Engineer /
Geologist
Senior Engineer
Drafting/Word Processing
Drafting
Word Processing
Principal
Project Manager
Staff Engineer
Designer
Drafting
Administrative
$145 $140 $195 $170 $155 $185 $90 $110 $95 $222 $185 $160 $132 $100 $85 350 $117,980
120 $40,746
190 $59,772
40 $17,463
560 $72,650 $173,942
210 $12,650 $50,248
130 $23,056
220 $60,000 $100,638
34 10 16 6 11 7 2 6 2 94 $36,155 $50,655 94 $36,155 $50,655 50 100 180 275 464 1,069 $141,100 4,238 $303,000 $1,123,178 140 $42,902
340 $78,582
50 100 180 275 464 1,069 $141,100 1,984 $328,051
890 $196,616
550 $114,854
150 $29,029
184 $3,000 $33,144
$300,000 $300,000
200 $55,298
6 24 59 64 8 4 165 $24,800 1,085 $269,708
34 10 16 6 11 7 2 6 2 94 56 124 239 339 472 4 1,234 6,527 $4,930 $1,400 $3,120 $1,020 $1,705 $1,295 $180 $660 $190 $36,155 $50,655 $12,432 $22,940 $38,240 $44,748 $47,200 $340 $165,900 $111,805 $1,490,761 34 10 16 6 11 7 2 6 2 94 56 124 239 339 472 4 1,234 6,527 $4,930 $1,400 $3,120 $1,020 $1,705 $1,295 $180 $660 $190 $36,155 $50,655 $12,432 $22,940 $38,240 $44,748 $47,200 $340 $165,900 $411,805 $1,790,761 GRAND
TOTAL COST
GRAND
TOTAL
OTHER
DIRECT
COSTS
GRAND
TOTAL
HOURS
ENGINEERING PARTNERS, INC.

TOTAL
HOURS
TOTAL
COST
OTHER
DIRECT
COST
TOTAL
COST
GEOCON CONSULTANTS
TOTAL
HOURS

Page 2 of 3 ends

*Billing Rates are in accordance with those set forth in the On‐Call Civil Design Services, Professional Land Surveying, Environmental, and Stormwater Services Contract (2/20/2025).

ITEM 9.13.

ATTACHMENT 2

Page 284 of 340 ends

Direct Labor Total Hours per Avg 5 Year
Subtotal per Cost Cost Proposal Hourly Contract
Proposal Rate Duration
= $217.39 Year 1 Avg
Hourly Rate
Avg Hourly Rate Proposed Escalation
Year 1 + 5.0% = $228.26 Year 2 Avg Hourly Rate
Year 2 + 5.0% = $239.67 Year 3 Avg Hourly Rate
Year 3 + 5.0% = $251.65 Year 4 Avg Hourly Rate
Year 4 + 5.0% = $264.23 Year 5 Avg Hourly Rate
Estimated % Completed Total Hours per Cost Total Hours per Each Year Proposal Year
Year 1 * 4,756 = 1189 Estimated Hours Year 1
Year 2 * 4,756 = 1427 Estimated Hours Year 2
Year 3 * 4,756 = 1189 Estimated Hours Year 3
Year 4 * 4,756 = 476 Estimated Hours Year 4
Year 5 * 4,756 = 476 Estimated Hours Year 5
Total Total = 4,756
Avg Hourly Rate Estimated hours
(Calculated above) (Calculated Above)
Year 1 * 1189 = Estimated Hours Year 1
Year 2 * 1427 = Estimated Hours Year 2
Year 3 * 1189 = Estimated Hours Year 3
Year 4 * 476 = Estimated Hours Year 4
Year 5 * 476 = Estimated Hours Year 5
Total Direct Labor Cost with Escalation =
Direct Labor Subtotal before Escalation =
Estimated total of Direct Labor Salary Increase = Transfer to Page 1 Year
$251.65

3. Calculate estimated hours per year (Multiply estimate % each year by total hours)

25.0%

4. Calculate Total Costs including Escalation (Multiply Average Hourly Rate by the number of hours) Cost Per
4,756

1. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation %) $217.39
$228.26
$239.67
$217.39
$258,472.50
DOKKEN ESCALATION CALCULATION
$80,579.45
$239.67 $284,965.93

25.0%

10.0%

10.0%
100.000%
$228.26 $325,675.35

30.0%

1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) $1,033,890.00
$251.65 $119,685.69
$264.23 $125,669.98
$1,114,469.45
$1,033,890.00

Page 3 of 3 ends

Rancho Cordova City CouncilAugust 17, 2026

Rancho Cordova City Council
August 17, 2026