Rancho Cordova City Council
September 21, 2026

IA No. 3 of Arista del Sol CFD No. 2022-1 12 August 28, 2026

1. Full Prepayment

The Special Tax obligation applicable to a Parcel in Improvement Area No. 3 may be prepaid and the obligation of the Parcel to pay the Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Special Tax obligation shall provide the City with written notice of intent to prepay. Within 30 days of receipt of such written notice, the City or its designee shall notify such owner of the prepayment amount for such Parcel. Prepayment must be made not less than 75 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows: (capitalized terms as defined below):

Bond Redemption Amount
plus R emaining Facilities Amount
plus Redemption Premium
plus Defeasance Requirement
plus Administrative Fees and Expenses
less Reserve Fund Credit
equals Prepayment Amount

As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps:

Step 1. Identify the Maximum Special Tax for the Parcel prepaying the Special Tax in the Fiscal Year in which prepayment would be received by the City. If this Section H is being applied to calculate a prepayment pursuant to Section D above, compute the amount by which the proposed Land Use Change would reduce Expected Maximum Special Tax Revenues below the amount needed for Required Coverage, and use this amount for purposes of this Step 1.

Step 2. Divide the Maximum Special Tax computed pursuant to Step 1 for such Parcel by the total Expected Maximum Special Tax Revenues for all property in Improvement Area No. 3, as shown in Attachment 2.

Step 3. Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

Step 4. Compute the current Remaining Facilities Costs (if any).

Step 5. Multiply the quotient computed pursuant to Step 2 by the amount determined pursuant to Step 4 to compute the amount of Remaining Facilities Costs to be prepaid (the “Remaining Facilities Amount”).

Step 6. Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

IA No. 3 of Arista del Sol CFD No. 2022-1 13 August 28, 2026 Step 7. Compute the amount needed to pay interest on the Bond Redemption Amount starting with the first Bond interest payment date after which the prepayment will be received until the earliest redemption date for the Outstanding Bonds. However, if Bonds are calla ble at the first interest payment date after the prepayment has been received, Steps 7, 8 and 9 of this prepayment formula will not apply.

Step 8: Compute the amount of interest the City reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the prepayment has been received until the redemption date for the Outstanding Bonds.

Step 9: Subtract the amount computed pursuant to Step 8 from the amount computed pursuant to Step 7 (the “Defeasance Requirement”).

Step 10. The administrative fees and expenses associated with the prepayment will be determined by the Administrator and include the costs of computing the prepayment, redeeming Bonds and recording any notices to evidence the prepayment and the redemption (the “ Administrative Fees and Expenses”).

Step 11. If and to the extent so provided in the Indenture, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”).

Step 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 5, 6, 9, and 10, less the amount computed pursuant to Step 11 (the “Prepayment Amount”).

Step 13. From the Prepayment Amount, the amounts computed pursuant to Steps 3, 6, and 9 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to Step 5 shall be deposited into the Improvement Fund. The amount computed pursuant to Step 10 shall be retained in the account or fund that is established to pay Administrative Expenses.

Once a full prepayment of a Parcel’s Special Tax obligation has been received, a Notice of Cancellation of Special Tax Lien shall be recorded against the Parcel to reflect the discharge of the Parcel’s obligation to pay the Special Tax. However, a Notice of Cancellation of Special Tax Lien shall not be recorded until all Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected. The Administrator shall also update Attachment 2 to reflect the prepayment.

ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

IA No. 3 of Arista del Sol CFD No. 2022-1 14 August 28, 2026

2. Partial Prepayment

A partial prepayment may be made in an amount equal to any percentage of full prepayment desired by the party making a partial prepayment, except that the full amount of Administrative Fees and Expenses determined in Step 10 shall be included in the partial prepayment. The Maximum Special Tax that can be levied on a Parcel after a partial prepayment is made shall be equal to the portion of the Maximum Special Tax that was not prepaid, subject to 2% annual increases each July 1. Once a partial prepayment has been received, an Amended Notice of Special Tax Lien shall be recorded against the Parcel to reflect the reduced Special Tax lien for the Parcel, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Special Tax Revenues. However, an Amended Notice of Special Tax Lien shall not be recorded until all Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected.

3. Maintaining Required Coverage

Notwithstanding the foregoing, if at any point in time the Administrator determines that the Maximum Special Tax revenue that could be collected from Taxable Property that remains subject to the Special Tax after the proposed prepayment would be less than Required Coverage on Bonds that will remain outstanding after defeasance or redemption of Bonds from proceeds of the estimated prepayment, the amount of the prepayment shall be increased until the amount of Bonds defeased or redeemed is sufficient to reduce remaining annual debt service to a point at which Required Coverage is maintained.

I. INTERPRETATION OF RMA

Interpretations may be made by Resolution of the City Council to interpret, clarify, and/or revise this RMA to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Tax, method of apportionment, classification of properties, or any definition applicable to Improvement Area No. 3 of the CFD, as long as such correction does not materially affect the levy and collection of Special Taxes. The City, upon the request of an owner of land within Improvement Area No. 3 which is not Developed Property, may also amend this RMA in any manner acceptable to the City, by resolution or ordinance following a public hearing, upon the affirmative vote of such owner to such amendment and without the vote of owners of any other land within Improvement Area No. 3, provided such amendment only affects such owner's land. Under no circumstances may such revisions to the RMA decrease the Expected Maximum Special Tax Revenues to a level that will reduce debt service coverage below Required Coverage.

ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

BUILDING RELATIONSHIPS ONE PROJECT AT A TIME
3301 C St, Bldg. 100-B Tel 916.341.7760
Fax 916.341.7767 Sacramento, CA 95816
ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

ATTACHMENT 2

Improvement Area No. 3 of the
City of Rancho Cordova
Arista del Sol
Community Facilities District No. 2022-1

Expected Land Uses and Expected Maximum Special Tax Revenues in Improvement Area No. 3

Land Use

Expected
Land Uses

Base Special Tax
(FY 2026-27) *
Expected
Maximum Special
Tax Revenues
(FY 2026-27) *

Single Family Detached Property
Lot Category A
Lot Category B

55 Residential Units
104 Residential Units

$1,633 per Residential Unit
$2,071 per Residential Unit

$89,815
$215,384
Single Family Attached Property 0 Residential Units $1,633 per Residential Unit $0 Other Property 0 Acres $22,369 per Acre $0
Expected Maximum Special Tax Revenues (FY 2026-27 $) $305,199

* On July 1, 2027, and each July 1 thereafter, all dollar amounts shown above shall be increased by 2% of the amount in effect in the prior Fiscal Year.

ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

EXHIBIT B

CITY OF RANCHO CORDOVA
Arista Del Sol Community Facilities District No. 2022-1

Description of Authorized Facilities

The Facilities shown below are to be finance by the City of Rancho Cordova Arista Del Sol Community Facilities District No. 2022-1 (the, “CFD”).

Facilities
The Facilities which are proposed to be financed with the proceeds of the sales of bonds of the proposed CFD, or the payment of the fees to the appropriate jurisdiction with respect to such facilities proposed to be financed with the proceeds of the sale of bonds of the proposed CFD, are generally described as follows:
- Park Improvements
- Chrysanthy Blvd Improvements
- Americanos Blvd Improvements
- In-tract Improvements for development within the CFD

Impact, Development Agreement and Specific Plan Fees for Facilities - Transportation Impact Fee
- Sunrise Douglas Community Plan Roadway Impact Fee
- City Supplemental Transportation Fee
- Park Renovation Fee
- Sunrise Douglas Park Fee
- Sacramento County Water Agency Zone 40 Water Fee
Other
- Any other facilities serving substantially the same purpose as the above described facilities.
- 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 District facilities that are primarily for the benefit of the District, or 2) repair or rehabilitate existing District facilities.

The foregoing description of the type of Facilities eligible to be financed is general in nature and includes any appurtenant work and incidental expenses related to the Facilities. The final nature and location of the facilities will be determined upon the preparation of final plans and specifications for such facilities.

ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

#223775 v2 9103.32 B-2
Incidentals
The bond related expenses authorized include the City, underwriters discount, financial advisor, appraisals, reserve fund balance, capitalized interest, bond counsel, disclosure counsel, special tax consultant, bond and official statement printing and all other incidental expenses. CFD formation costs and administrative fees include those of the City, the CFD, the bond trustee or fiscal agent, legal counsel, the special tax consultant and other costs related to the CFD or the Bonds.

ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

EXHIBIT C

CITY OF RANCHO CORDOVA
Arista Del Sol Community Facilities District No. 2022-1

Annexation No. 2

PROPERTY ANNEXED TO THE CFD

Assessor’s Parcel Nos. Owner(s) of Record

ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

EXHIBIT D

CITY OF RANCHO CORDOVA
Arista Del Sol Community Facilities District No. 2022-1

Annexation Map

See attached.

ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

BUILDING RELATIONSHIPS ONE PROJECT AT A TIME
3301 C St, Bldg. 100-B Tel 916.341.7760
Fax 916.341.7767 Sacramento, CA 95816
ITEM 16.10.

ATTACHMENT 2
Exhibit A to the Resolution

EXHIBIT B

CITY OF R

ANCHO CORDOVA
Arista Del Sol Community Facilities District No. 2022-1 Description o
f Authorized Facilities
The Facilities s
hown below are to be finance by the City of Rancho Cordova Arista Del Sol Community Facilities District No. 2022-1 (the, “CFD”).

Facilities
The Facilities which are proposed to be financed with the proceeds of the sales of bonds of the proposed CFD, or the payment of the fees to the appropriate jurisdiction with respect to such facilities proposed to be financed with the proceeds of the sale of bonds of the proposed CFD, are generally described as follows:
- Park Improvements
- Chrysanthy Blvd Improvements
- Americanos Blvd Improvements
- In-tract Improvements for development within the CFD
Impact, D
evelopment Agreement and Specific Plan Fees for Facilities - Transportation Impact Fee
- Sunrise Douglas Community Plan Roadway Impact Fee
- City Supplemental Transportation Fee
- Park Renovation Fee
- Sunrise Douglas Park Fee
- Sacramento County Water Agency Zone 40 Water Fee
Other
- Any other facilities serving substantially the same purpose as the above described facilities.
- 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 District facilities that are primarily for the benefit of the District, or 2) repair or rehabilitate existing District facilities.

The foregoing
description of the type of Facilities eligible to be financed is general in nature and includes any appurtenant work and incidental expenses related to the Facilities. The final nature and location of the facilities will be determined upon the preparation of final plans and specifications for such facilities.

Incidentals
The bond related expenses authorized include the City, underwriters discount, financial advisor, appraisals, reserve fund balance, capitalized interest, bond counsel, disclosure counsel, special tax consultant, bond and official statement printing and all other incidental expenses. CFD formation costs and administrative fees include those of the City, the CFD, the bond trustee or fiscal agent, legal counsel, the special tax consultant and other costs related to the CFD or the Bonds.

ITEM 16.10.

ATTACHMENT 3
Exhibit B to the Resolution

BUILDING RELATIONSHIPS ONE PROJECT AT A TIME
3301 C St, Bldg. 100-B Tel 916.341.7760
Fax 916.341.7767 Sacramento, CA 95816
ITEM 16.10.

ATTACHMENT 4
Exhibit C to the Resolution

MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 16.11.

DATE: September 21, 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 ANNEXATION OF THE IONNA EV

CHARGING PROJECT TO THE CITY OF RANCHO CORDOVA
COMMUNITY FACILITIES DISTRICT NO. 2014-2 (STREET,

LIGHTING, AND LANDSCAPE MAINTENANCE)

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would approve Annexation Map. No. 20 for the IONNA EV Charging project to Community Facilities District No. 2014-2 (Street, Lighting, and Landscape Maintenance) and approve the recording of the annexation map and the Notice of Special Tax Lien.

BACKGROUND

On April 21, 2014, the city adopted a Resolution of Intention to establish a Community Facilities District (CFD) and Future Annexation Area for citywide street, lighting, and landscape maintenance services. On June 2, 2014, the city adopted the resolution forming CFD No. 2014- 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 by 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.

The project included in this action was conditioned to annex to CFD No. 2014-2 to provide funding for maintenance services including the maintenance, repair, replacement and lighting of public streets, roads, landscape, and appurtenant facilities in the public right of way. In August

City Council Staff Report - Page 2 of 2

2026, the property owner signed a unanimous approval of the annexation to CFD No. 2014-2, Attachment 4. Adoption of the attached Resolution, Attachment 1, approves Annexation Boundary Map No. 20, for the IONNA EV Charging project and directs the City Clerk to execute and record the Map, Attachment 2, and Notice of Special Tax Lien, Attachment 3, for the project.

FISCAL IMPACT AND FUNDING SOURCE

There is no fiscal impact to the city. Funds collected will be used for maintenance of streets, lighting, and landscape maintenance services.

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

ITEM 16.11. 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 ANNEXATION OF THE IONNA EV CHARGING PROJECT TO THE CITY OF RANCHO CORDOVA COMMUNITY FACILITIES DISTRICT NO. 2014-2 (STREET, LIGHTING, AND LANDSCAPE MAINTENANCE)

WHEREAS, the Conditions of Approval for the IONNA EV Charging project require the property owner/applicant to participate in the provision of funding to provide fair share maintenance of any existing and all new public improvements associated with the project; and

WHEREAS, on April 21, 2014, the city adopted Resolution No. 20-2014 declaring its intention to establish Community Facilities District No. 2014-2 (Street, Lighting, and Landscape Maintenance) (the “District”) and Future Annexation Area for maintenance of street, lighting, and landscape maintenance services. On June 2, 2014, the city adopted Resolution No. 34- 2014 forming CFD No. 2014-2 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; and

WHEREAS, in August 2026, the property owner executed a unanimous approval form which irrevocably consents to and votes in favor of the annexation of a portion 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, attached hereto; 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. 20 for a property known as the IONNA EV Charging project, Exhibit A, attached hereto, for the annexation of the property to CFD No. 2014-2 (Street, Lighting, and Landscape Maintenance).

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

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

2. Council approves Annexation Boundary Map No. 20 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.

ITEM 16.11. ATTACHMENT 1 Resolution No. XX-2026 Page 2 of 2

3. The City Clerk is directed to execute and record Annexation Boundary Map No. 20 in the office of the County Recorder of Sacramento County no 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. 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.

5. The City Clerk is directed to execute and record a Notice of Special Tax Lien, Exhibit B, attached hereto, in the office of the County Recorder of Sacramento County no later than 15 days after recordation of the Annexation Boundary Map No. 20.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 21st day of September 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

APN
072-0210-099
£¤50

MARCEL WAY

ZINFANDEL DR

HUNT DR

BURTON CT

CAPITAL CENTER DR

PAIUTE WAY

GRAYSON WAY

KACHINA WAY

CALLE DEL SOL WAY

DATA DR

QUALITY DR

GOLD CENTER DR

WHITE ROCK RD

PROPOSED BOUNDARY MAP
City of Rancho Cordova
Community Facilities District No. 2014-2
Annexation 20 (Ionna EV Charging)
County of Sacramento, California
Sheet ____ of ____1 1

PROPOSED BOUNDARY OF
ANNEXATION 20
(IONNA EV CHARGING) TO

CITY OF RANCHO CORDOVA
COMMUNITY FACILITIES DISTRICT NO. 2014-2
(STREET MAINTENANCE, LIGHTING AND LANDSCAPING)

COUNTY OF SACRAMENTO, STATE OF CALIFORNIA
!
Legend
Annexation Boundary

HARRIS & ASSOCIATES
101 PROGRESS, SUITE 250
IRVINE, CALIFORNIA 92618
800-827-4901

SUNRISE BLVD

DOUGLAS RD

KIEFER BLVD

NIKE RD

GRANT LINE RD
US 50

WHITE ROCK RD
£¤50
ÄÆ16

ANNEXATION

LOCATION

VICINITY MAP
1:2,400
ITEM 16.11.

ATTACHMENT 2
Exhibit A to the Resolution

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

C
ity of Rancho Cordova
2729 Prospect Park Drive
Rancho Cordova, California 95670
Attention: City Clerk
______________________________________________________________________

NOTICE OF SPECIAL TAX LIEN
CO
MMUNITY FACILITIES DISTRICT 2014-2
(STREET, LIGHTING, AND LANDSCAPE MAINTENANCE)

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.

T
he special taxes are authorized to be levied within Annexation Boundary Map No. 20 (the “Annexed Area”) of the City of Rancho Cordova Community Facilities District No. 20 14-2 (Street, Lighting, and Landscape Maintenance) (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 prepaid and permanently satisfied and the lien of the special taxes canceled.

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 tax 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.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

Refer
ence is hereby made to the Notice of Special Tax Lien with respect to the District recorded on June 17, 2014, as Document No. 20140617 page 353, 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.

Reference is made to the boundary map of the District recorded at Book 116, Pages 0023- 0024, Document No. 20140430 Pg 0873 of Maps and Assessment and Community Facilities Districts in the Office of the County Recorder for the County of Sacramento, State of California (the “ Original Boundary Map”), and the map of the Annexed Territory recorded at Book xxx, Page xx, Document No. xxxxxxx in the Office 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) 851-8708.

Dat
ed: ___________________________ ________________________________

CITY CLERK OF THE CITY OF

RANCHO CORDOVA
ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

EXHI
BIT A

CITY OF RANCHO CORDOVA
COMMUNITY FACILITIES DISTRICT NO. 2014-2
(Streets, Lighting, and Landscape Maintenance)
DESCRI

PTION OF SERVICES
Descrip
tion of services:

Mai
ntenance of public street, lighting, and landscape improvements • Maint
enance means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of the public street, lighting, and landscaping improvements, dedicated easements, and appurtenant facilities, and administration and overhead of all aspects of the C
Reserve Fund
• The CFD special taxes may be collected and set-aside in designated funds, collected over several years, that may be used by the CFD to fund future repairs to public streets, lighting and landscaping improvements and other services as determined by the CFD.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

EXHIBIT B

CITY OF RANCHO CORDOVA
COMMUNITY FACILITIES DISTRICT NO. 2014-2
(STREET, LIGHTING AND LANDSCAPING MAINTENANCE)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
FOR ANNEXATION NO. 20 (IONNA EV CHARGING)
ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

EXHIBIT B
Rate and Method of Apportionment (RMA)
ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

EXHIBIT B

CITY OF RANCHO CORDOVA
COMMUNITY FACILITIES DISTRICT NO. 2014-2
(STREET, LIGHTING AND LANDSCAPING MAINTENANCE)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
ANNEXATION NO. 20 (IONNA EV CHARGING)

A Special Tax applicable to each Assessor’s Parcel in Community Facilities District No. 2014 -2 (Street, Lighting and Landscaping Maintenance) shall be levied and collected according to the tax liability determined by the City Council, acting in its capacity as the legislative body of CFD No. 2014- 2, through the application of the appropriate Special Tax rate, as described below. All of the property in CFD No. 2014-2, unless exempted by law or by the provisions of Section E below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to CFD No. 2014-2 unless a separate Rate and Method of Apportionment of Special Tax is adopted for the annexation area.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final subdivision map, a final parcel map, a final approved condominium plan, or functionally equivalent final map or instrument recorded in the Office of the County Recorder. If the area shown on said map is in square footage, Acreage shall be calculated by dividing the square footage by 43,560.

“Additional Load and Decorative Lighting Parcel” means any Parcel that is determined by the City to be both an Additional Load Parcel and a Decorative Lighting Parcel.

“Additional Load Parcel” means any Parcel of Commercial Property or Industrial Property that is determined by the City to create excessive wear and tear on the roadways and/or a high volume of vehicular traffic.

“Administrative Expenses” means the costs incurred by the City to determine, levy and collect the Special Tax, including salaries of City employees and fees of consultants and the costs of collecting installments of the Special Taxes upon the general tax rolls, preparation of required reports, and any other costs required to administer the CFD.

“Administrator” means the person or firm designated by the City to administer the Special Taxes according to this Rate and Method of Apportionment of Special Tax.

“Annual Escalation Factor” means the annual percentage increase in the McGraw-Hill Engineering News Record Construction Cost Index (ENR CCI) for the San Francisco area from January of the previous year to January of the year that the Special Tax is levied. In the event that the ENR CCI defined above is no longer reported, the City Council shall select a similar index to replace it.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

“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 designating parcels by Assessor’s Parcel number.

“Authorized Services” means the public services authorized to be funded by CFD No. 2014-2 as set forth in the documents adopted by the City Council when the CFD was formed.

“CFD” or “CFD No. 2014-2” means the City of Rancho Cordova Community Facilities District No. 2014-2 (Street, Lighting and Landscaping Maintenance).

“City” means the City of Rancho Cordova.

“ City Council” means the City Council of the City of Rancho Cordova, acting as the legislative body of CFD No. 2014-2.

“Commercial Property” means, in any Fiscal Year, all Developed Property for which a building permit or use permit has been issued for a commercial establishment which includes, but is not limited to, retail stores, clothing stores, book stores, convenience stores, drug stores, professional services (i.e., barber shops, dry cleaners), restaurants, supermarkets, hospitals, movie theaters, appliance and electronics stores, home supply stores, auto parts stores, and other retail uses. The City shall make the determination if a Parcel is Commercial Property.

“County” means the County of Sacramento.

“Decorative Lighting Parcel” means any Parcel of Developed Property that is determined by the City to have or benefit from decorative lighting features.

“Developed Property” means, in any Fiscal Year, all Parcels of Taxable Property for which a use permit or building permit for new construction of a residential or non-residential structure (which shall not include a permit issued solely for construction of the foundation if another permit remains to be issued for vertical construction of the building) was issued prior to June 30 of the preceding Fiscal Year.

“Fiscal Year” means the period starting on July 1 and ending on the following June 30.

“Heavy Truck Traffic Parcel” means, any Parcel of Developed Property that is determined by the City to have heavy truck traffic impact on the public streets and include, but are not limited to, fulfillment centers, logistics centers, freight, truck terminals, and other facilities intended for the movement of goods (manufactured or raw) prior to their distribution.

“Hotel Property” means, in any Fiscal Year, all Developed Property for which a building permit or use permit has been issued for a structure that constitutes a place of lodging providing sleeping accommodations and related facilities for travelers.

“In
dustrial Property” means, in any Fiscal Year, all Developed Property for which a building permit or use permit has been issued for construction of an industrial, manufacturing, or warehousing structure, fulfillment centers, logistics centers, freight, truck terminals, and other facilities intended for the movement of goods (manufactured or raw) prior to their distribution. The City shall make the ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

determination if a Parcel is Industrial Property.

“Maximum Special Tax” means the greatest amount of Special Tax that can be levied on an Assessor’s Parcel in any Fiscal Year determined in accordance with Section C below.

“Micro-Unit Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit has been issued for construction of a residential structure with five (5) or more Units of approximately 800 square feet of floor area or less for each such Unit that share a single Assessor’s Parcel number, all of which are offered for rent to the general public and cannot be purchased by individual homebuyers.

“Multi-Family Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit has been issued for construction of a residential structure with five (5) or more Units that share a single Assessor’s Parcel number, all of which are offered for rent to the general public and cannot be purchased by individual homebuyers.

“Non-Residential Property” means, collectively, Commercial Property, Hotel Property, Industrial Property, and Office Property.

“Office Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit has been issued for a building in which professional, banking, insurance, real estate, administrative or in-office medical or dental activities are cond ucted. The City shall make the determination if a Parcel is Office Property.

“Ordinary Use Parcel” means any Parcel of Taxable Property that is not an Additional Load Parcel, Decorative Lighting Parcel, Residential Alley Parcel, Additional Load and Decorative Lighting Parcel, Residential Alley and Decorative Lighting Parcel, Private Street Parcel, 50/50 Public & Private Residential Street Parcel, or Heavy Truck Traffic Parcel.

“Private Street Parcel” means, any Taxable Property where all or the majority of the residential streets are private within the development and the maintenance of the residential components are not funded by the CFD or by the federal government, State of California, County, City, or other public agency.

“50/50 Public & Private Residential Street Parcel” means, any Taxable Property where there is a fairly even split of public and private streets associated with a development.

“Proportionately” means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Parcels of Developed Property.

“Public Property” means any property within the boundaries of CFD No. 2014- 2 that is owned by the federal government, State of California, County, City, or other public agency.

“Residential Alley and Decorative Lighting Parcel” means any Parcel that is determined by the City to be both a Residential Alley Parcel and a Decorative Lighting Parcel.

“Residential Alley Parcel” means any Parcel of Residential Property that is determined by the City to have residential alleys that are part of the public roadways.

“Residential Property” means, collectively, Single Family Attached Property, Single Family Detached Property, and Multi-Family Property.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

“Single Family Attached Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit was issued for construction of a residential structure consisting of two (2) to four (4) Units that share common walls, have separate Assessor’s Parcel numbers assigned to them (except for a duplex unit, which may share an Assessor’s Parcel with another duplex unit), and are offered as for- sale Units (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit(s)), including such residential structures that meet the statutory definition of a condominium contained in Civil Code Section 1351.

“Single Family Detached Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit was issued for construction of a Unit that does not share a common wall with another Unit.

“Soundwall Parcel” means any Parcel of Developed Property whose tract boundary is encompassed by soundwalls maintained within the CFD.

“Special Tax Requirement” means the amount of revenue needed in any Fiscal Year to pay for the following: (i) Authorized Services, (ii) Administrative Expenses, and (iii) amounts needed to cure any delinquencies in the payment of Special Taxes which have occurred or (based on delinquency rates in prior years) may be expected to occur in the Fiscal Year in which the tax will be collected.

“Special Tax” means a special tax levied in any Fiscal Year on property within CFD No. 2014- 2 to pay the Special Tax Requirement.

“Square Foot,” “Square Footage,” or “Square Feet” means the building square footage reflected on the original building permit issued for construction of a building.

“Taxable Property” means all Assessor’s Parcels within the boundaries of CFD No. 2014-2 which are not exempt from the Special Tax pursuant to law or Section E below.

“Taxable Public Property” means, in any Fiscal Year, all Assessor’s Parcels in CFD No. 2014-2 that had, in prior Fiscal Years, been taxed as Developed Property and subsequently came under the ownership of a public agency.

“Tax Zone” means a mutually exclusive tax zone identified in Attachment 1 of this Rate and Method of Apportionment of Special Tax, as may be updated to include new Parcels or new tax zones added to the CFD as a result of future annexations.

“Unit” means an individual single-family detached unit or an individual residential unit within a duplex, triplex, fourplex, townhome, condominium, or apartment structure. Unit shall also mean a rentable single hotel room or rentable unit on a Parcel of Hotel Property.

B. DATA COLLECTION FOR ANNUAL TAX LEVY

Each Fiscal Year, the Administrator shall identify the current Assessor’s Parcel number for all Parcels of Taxable Property within CFD No. 2014-2 and shall determine within which Tax Zone each Assessor’s Parcel is located. Upon each annexation of property into CFD No. 2014-2, the Administrator shall update Attachment 1 to include the new Assessor’s Parcel number(s). In addition, for all Parcels of ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

Developed Property, if applicable to the Tax Zone in which the Parcels are located, the Administrator shall determine if each Parcel is an Ordinary Use Parcel, an Additional Load Parcel, a Residential Alley Parcel, a Decorative Lighting Parcel, an Additional Load and Decorative Lighting Parcel, a Residential Alley and Decorative Lighting Parcel, Private Street Parcel, 50/50 Public & Private Residential Street Parcel, or a Heavy Truck Traffic Parcel.

Based on review of building permit records for property within the CFD, the Administrator shall determine which Parcels in the CFD are Developed Property for purposes of levying the Special Tax pursuant to Section D below. For Single Family Attached Property, Multi-Family Property, Micro-Unit Property, and Hotel Property, the number of Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan for the property. For Residential Property, the Administrator shall determine the Square Footage of each Unit. For Non-Residential Property, the Administrator shall determine the Acreage of, and Square Footage on, each Parcel.

If a Parcel in the CFD is rezoned prior to such Parcel becoming Developed Property, the City may in its sole discretion, move the Parcel to a different Tax Zone based on the rezone. If a Parcel rezones after the Parcel has been taxed as Developed Property in prior Fiscal Years, the City can either continue to apply the Maximum Special Tax to the Parcel that had applied prior to the rezone or, in the City’s sole discretion, allow for the Parcel to be moved to a different Tax Zone based on the rezone.

In any Fiscal Year, if it is determined that (i) a parcel map for a portion of property in CFD No. 2014-2 was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly-created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel map, and (iii) one or more of the newly-created Parcels meets the definition of Developed Property, the Administrator shall calculate the Special Tax for the property affected by recordation of the parcel map by determining the Special Tax that applies separately to each newly-created Parcel, then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map.

C. MAXIMUM SPECIAL TAX

1. All Tax Zones

The following Maximum Special Taxes apply to all Parcels of Developed Property within each Tax Zone of CFD No. 2014-2, unless otherwise specified in Attachment 1. a. Ordinary Use Parcels

MAXIMUM SPECIAL TAXES

ORDINARY USE PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $533.86 per Unit
Single Family Attached Property $421.74 per Unit
Multi-Family Property $304.29 per Unit
Micro-Unit Property $202.96 per Unit
ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

Commercial Property $796.52 per 1,000 Sq. Ft.

Hotel Property $314.98 per Unit
Industrial Property $240.24 per 1,000 Sq. Ft.

Office Property $795.45 per 1,000 Sq. Ft.

On each July 1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.
b. Residential Alley Parcels

MAXIMUM SPECIAL TAXES

RESIDENTIAL ALLEY PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $579.57 per Unit
Single Family Attached Property $457.87 per Unit
Multi-Family Property $330.36 per Unit
Micro-Unit Property $220.35 per Unit
Commercial Property N/A
Hotel Property N/A
Industrial Property N/A
Office Property N/A

On each July 1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

c. Decorative Lighting Parcels

MAXIMUM SPECIAL TAXES

DECORATIVE LIGHTING PARCELS
(FISCAL YEAR 2025-26)
Land Use Class Maximum Special Tax
Single Family Detached Property $542.02 per Unit
Single Family Attached Property $428.19 per Unit
Multi-Family Property $308.95 per Unit
Micro-Unit Property $206.07 Per Unit
Commercial Property $808.70 per 1,000 Sq. Ft.

Hotel Property $319.79 per Unit
Industrial Property $243.91 per 1,000 Sq. Ft.

Office Property $807.61 per 1,000 Sq. Ft.

On each July
1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.
d. Additional Load Parcels

MAXIMUM SPECIAL TAXES

ADDITIONAL LOAD PARCELS
(FISCAL YEAR 2025-26)
Land Use Class Maximum Special Tax
Single Family Detached Property N/A
Single Family Attached Property N/A
Multi-Family Property N/A
Micro-Unit Property N/A
Commercial Property $826.74 per 1,000 Sq. Ft.

Hotel Property N/A
Industrial Property $249.35 per 1,000 Sq. Ft.

Office Property N/A
On each July
1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

e. Soundwall Parcels

MAXIMUM SPECIAL TAXES

SOUNDWALL PARCELS
(FISCAL YEAR 2025-26)
Land Use Class Maximum Special Tax
Single Family Detached Property $556.55 per Unit
Single Family Attached Property $439.67 per Unit
Multi-Family Property $317.23 per Unit
Micro-Unit Property $211.59 per Unit
Commercial Property $830.38 per 1,000 Sq. Ft.

Hotel Property $328.37 per Unit
Industrial Property $250.45 per 1,000 Sq. Ft.

Office Property $829.27 per 1,000 Sq. Ft.

On each July
1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.
f. Additional Load and Decorative Lighting Parcels
MAXI

MUM SPECIAL TAXES

ADDITIONAL LOAD AND DECORATIVE LIGHTING PARCELS
(FISCAL YEAR 2025-26)
Land Use Class Maximum Special Tax
Single Family Detached Property N/A
Single Family Attached Property N/A
Multi-Family Property N/A
Micro-Unit Property N/A
Commercial Property $838.92 per 1,000 Sq. Ft.

Hotel Property N/A
Industrial Property $253.03 per 1,000 Sq. Ft.

Office Property N/A
On each July
1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

g. Residential Alley and Decorative Lighting Parcels

MAXIMUM SPECIAL TAXES

RESIDENTIAL ALLEY AND DECORATIVE LIGHTING PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $587.73 per Unit
Single Family Attached Property $464.32 per Unit
Multi-Family Property $335.01 per Unit
Micro-Unit Property $223.45 per Unit
Commercial Property N/A
Hotel Property N/A
Industrial Property N/A
Office Property N/A

On each July 1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

h. Residential Alley and Soundwall Parcels

MAXIMUM SPECIAL TAXES

RESIDENTIAL ALLEY AND SOUNDWALL PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $605.84 per Unit
Single Family Attached Property $478.62 per Unit
Multi-Family Property $345.33 per Unit
Micro-Unit Property $230.34 per Unit
Commercial Property N/A
Hotel Property N/A
Industrial Property N/A
Office Property N/A

On each July 1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

i. Decorative Lighting and Soundwall Parcels

MAXIMUM SPECIAL TAXES

DECORATIVE LIGHTING AND SOUNDWALL PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $564.51 per Unit
Single Family Attached Property $445.96 per Unit
Multi-Family Property $321.77 per Unit
Micro-Unit Property $214.62 per Unit
Commercial Property $842.24 per 1,000 Sq. Ft.

Hotel Property $333.05 per Unit
Industrial Property $254.02 per Unit
Office Property $841.12 per Unit

On each July 1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

j. Residential Alley, Decorative Lighting, and Soundwall Parcels

MAXIMUM SPECIAL TAXES

RESIDENTIAL ALLEY, DECORATIVE LIGHTING AND SOUNDWALL PARCELS (FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $609.88 per Unit
Single Family Attached Property $481.80 per Unit
Multi-Family Property $347.63 per Unit
Micro-Unit Property $231.87 per Unit
Commercial Property N/A
Hotel Property N/A
Industrial Property N/A
Office Property N/A

On each July 1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

k. Private Street Parcel

MAXIMUM SPECIAL TAXES

PRIVATE STREET PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $350.75 per Unit
Single Family Attached Property $277.08 per Unit
Multi-Family Property $199.92 per Unit
Micro-Unit Property $133.35 per Unit
Commercial Property N/A
Hotel Property N/A
Industrial Property N/A
Office Property N/A

On each July 1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

l. 50/50 Public & Private Residential Street Parcels

MAXIMUM SPECIAL TAXES
50/50 PUBLIC & PRIVATE RESIDENTIAL STREET PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $442.04 per Unit
Single Family Attached Property $349.21 per Unit
Multi-Family Property $251.96 per Unit
Micro-Unit Property $168.06 per Unit
Commercial Property N/A
Hotel Property N/A
Industrial Property N/A
Office Property N/A

On each July 1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

m. Heavy Truck Traffic Parcels

MAXIMUM SPECIAL TAXES

HEAVY TRUCK TRAFFIC PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property N/A
Single Family Attached Property N/A
Multi-Family Property N/A
Micro-Unit Property N/A
Commercial Property N/A
Hotel Property N/A
Industrial Property $345.20 per 1,000 Sq. Ft.

Office Property N/A

On each July 1, the Maximum Special Taxes shown above shall be increased by the Annual Escalation Factor.

D. METHOD OF LEVY AND COLLECTION OF SPECIAL TAX

Each Fiscal Year, the Special Tax shall be levied as follows until the amount of the levy equals the Special Tax Requirement for that Fiscal Year:

First: The Special Tax shall be levied proportionately on each Parcel of Developed Property up to 100% of the Maximum Special Tax determined for each category of Developed Property within the CFD and each Tax Zone until the amount levied is equal to the Special Tax Requirement for the Fiscal Year.

Second: If additional revenue is needed after the first step has been completed, the Special Tax shall be levied proportionately on each Parcel of Taxable Public Property up to 100% of the Maximum Special Tax that would have applied to the Parcel had the Parcel not become Public Property until the amount levied is equal to the Special Tax Requirement for the Fiscal Year.

The Special Tax for CFD No. 2014-2 shall be collected at the same time and in the same manner as ordinary ad valorem property taxes provided, however, that the City may (under the authority of Government Code Section 53340) collect Special Taxes at a different time or in a different manner if necessary to meet CFD No. 2014-2 financial obligations and the Special Tax shall be equally subject to foreclosure if delinquent.

E. LIMITATIONS Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no special Tax shall be levied on (i) any Parcel of Public Property that ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

is not Taxable public Property, and (ii) any Parcel in CFD No. 2014-2 that is not Developed Property.

F. DURATION OF SPECIAL TAX
The Special Tax shall be levied in perpetuity to fund the Special Tax Requirement, unless no longer required as determined at the sole discretion of the City Council.

G. INTERPRETATION OF SPECIAL TAX FORMULA

The City reserves the right to make minor administrative and technical changes to this document that does not materially affect the Rate and Method of Apportionment of Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the City’s discretion. The City may make interpretations by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Taxes.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

ATTACHMENT 1

CITY OF RANCHO CORDOVA
COMMUNITY FACILITIES DISTRICT NO. 2014-2
(STREET, LIGHTING AND LANDSCAPING MAINTENANCE)

IDENTIFICATION OF TAX ZONES

TAX ZONE 1

Assessor’s Parcels Included
in Tax Zone 1 *
Fiscal Year In Which
Property Was Added
to CFD No. 2014-2
067-1210-001 through 067-1210-055
067-1220-001 through 067 -1220-059
067-1230-001 through 067 -1230-060

2013-14

Tax Zone 1 – Maximum Special Taxes

The Maximum Special Taxes for Zone 1 do not incorporate the long- term maintenance activities which are included as a part of CFD No. 2014 -1. On July 1 of each Fiscal Year thereafter, the Maximum Special Taxes shall be increased by the Annual Escalation Factor.

MAXIMUM SPECIAL TAXES

SOUNDWALL & DECORATIVE LIGHTING
(EXLUDING LONG TERM MAINT.)
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $398.6361 per Unit
Single Family Attached Property $314.9204 per Unit
Multi-Family Property $227.2304 per Unit
Micro-Unit Property N/A
Commercial Property $299.1373 per 1,000 Sq. Ft.

Hotel Property $235.1932 per Unit
Industrial Property $179.3827 per 1,000 Sq. Ft.

Office Property $299.1373 per 1,000 Sq. Ft.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

TAX ZO
NE 2
Assessor's Parcels Included in Tax Zone 2*
Fiscal Year in Which
Property was Added to
CFD No. 2014-2
067-1050-001 Through 067-1050-009 2016-17
072-2870-001 Through 072-2870-072
072-2880-001 Through 072-2880-082
072-2890-001 Through 072-2890-088
072-2900-001 Through 072-2900-080
072-2910-001 Through 072-2910-083 2014-15
072-2920-001 Through 072-2920-069
072-2940-001 Through 072-2940-066
072-2950-001 Through 072-2950-063
072-2960-001 Through 072-2960-065
Tax Zone
2 – Maximum Special Taxes
These
Maximum Special Taxes include the maintenance of street lighting only. On July 1 of each Fiscal Year thereafter, the Maximum Special Taxes shall be increased by the Annual Escalation Factor.

MAXIMUM SPECIAL TAXES

DECORATIVE LIGHTING ONLY
(FISCAL YEAR 2025-26)
Land Use Class Maximum Special Tax
Single Family Detached Property $54.1297 per Unit
Single Family Attached Property $54.1297 per Unit
Multi-Family Property $223.6408 per Unit
Micro-Unit Property N/A
Commercial Property $299.1373 per 1,000 Sq. Ft.

Hotel Property $231.5322 per Unit
Industrial Property $176.5907 per 1,000 Sq. Ft.

Office Property $299.1373 per 1,000 Sq. Ft.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

TAX ZONE 3
Assessor's Parcels Included in Tax Zone 3*
Fiscal Year in Which
Property was Added to
CFD No. 2014-2
067-1070-001 Through 067-1070-059 2016-17
067-1090-001 Through 067-1090-089
067-1060-003 Through 067-1060-004
067-1170-001 Through 067-1170-085
067-1180-001 Through 067-1180-016 2017-18
067-1190-001 Through 067-1190-066
067-1200-001 Through 067-1200-054
067-1100-008
067-1240-001
067-1250-001
067-1100-005
067-1120-001
067-1130-001
067-1140-001
067-1080-007
067-1150-001
067-1160-001
067-1260-001
067-1270-001
067-1280-001
067-1290-001
Through
Through
Through
Through
Through
Through
Through
Through
Through
Through
Through
Through
Through
067-1240-048
067-1250-108
067-1100-007
067-1120-027
067-1130-176
067-1140-038
067-1080-017
067-1150-080
067-1160-065
067-1260-061
067-1270-113
067-1280-094
067-1290-032
2018-19
067-0040-035-0000 Through 067-0040-036-0000
067-1080-018-0000 Through 067-1080-023-0000
067-1080-027-0000 Through 067-1080-030-0000 2020-21
067-1330-028-0000 Through 067-1330-064-0000
067-1360-001-0000 Through 067-1360-166-0000
067-1370-001-0000 Through 067-1370-168-0000
072-0370-046-0000 Through 072-0370-048-0000
072-0370-102-0000
072-0370-107-0000
072-3880-001-0000 Through 072-3880-004-0000
072-3880-007-0000 Through 072-3880-009-0000 2021-22
072-3880-011-0000 Through 072-3880-016-0000
072-3900-001-0000 Through 072-3900-108-0000
072-3910-001-0000 Through 072-3910-065-0000
072-3920-001-0000 Through 072-3920-088-0000
072-4070-001-0000 Through 072-4070-017-0000
067-2410-006-0000 Through 067-2410-008-0000
067-2410-011-0000 Through 067-2410-018-0000
067-2420-003-0000 Through 067-2420-004-0000
067-2420-006-0000
067-2420-012-0000 Through 067-2420-013-0000
067-2420-016-0000 Through 067-2420-017-0000
067-2440-001-0000 Through 067-2440-140-0000 2022-23
067-2470-001-0000 Through 067-2470-072-0000
067-2470-074-0000
067-2480-001-0000 Through 067-2480-078-0000
067-2490-003-0000 Through 067-2490-056-0000
067-2500-001-0000 Through 067-2500-113-0000
067-2510-001-0000 Through 067-2510-015-0000
072-3880-017-0000 Through 072-3880-018-0000 2024-25
072-4070-018-0000 Through 072-4070-019-0000
067-1330-065-0000 Through 067-1330-092-0000
067-1340-039-0000 Through 067-1340-104-0000
067-1360-167-0000 Through 067-1360-211-0000
067-2730-001-0000 Through 067-2730-018-0000 2025-26 067-2740-001-0000 Through 067-2740-059-0000 067-2760-001-0000 Through 067-2760-036-0000
067-2770-001-0000 Through 067-2770-071-0000
072-4500-001-0000 Through 072-4500-045-0000
ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

Tax Zone
3 – Maximum Special Taxes
These
Maximum Special Taxes include the maintenance of soundwalls. On July 1 of each Fiscal Year thereafter, the Maximum Special Taxes shall be increased by the Annual Escalation Factor.

MAXIMUM SPECIAL TAXES

SOUNDWALLS
(FISCAL YEAR 2025-26)
Land Use Class Maximum Special Tax
Single Family Detached Property $556.5521 per Unit
Single Family Attached Property $439.6749 per Unit
Multi-Family Property $317.2280 per Unit
Micro-Unit Property N/A
Commercial Property $830.3768 per 1,000 Sq. Ft.

Hotel Property $328.3673 per Unit
Industrial Property $250.4492 per 1,000 Sq. Ft.

Office Property $829.2657 per 1,000 Sq. Ft.

TAX ZO
NE 4
Assessor's Parcels Included in Tax Zone 4*
Fiscal Year in Which
Property was Added to
CFD No. 2014-2
072-4050-017-0000
072-4050-025-0000
Through
Through
072-4050-018-0000
072-4050-029-0000 2023-24
072-4050-033-0000 Through 072-4050-037-0000
072-4050-033-0000
072-4050-038-0000 Through 072-4050-045-0000
2024-25
Tax Zone 4 – M
aximum Special Taxes
These
Maximum Special Taxes include the maintenance of streets determined by the City to have a heavy truck impact on the public streets. On July 1 of each Fiscal Year thereafter, the Maximum Special Taxes shall be increased by the Annual Escalation Factor.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

MAXIMUM SPECIAL TAXES

HEAVY TRUCK TRAFFIC
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property N/A
Single Family Attached Property N/A
Multi-Family Property N/A
Micro-Unit Property N/A
Commercial Property N/A
Hotel Property N/A
Industrial Property $345.2005 per 1,000 Sq. Ft.

Office Property N/A

TAX ZONE 5

Assessor's Parcels Included in Tax Zone 5*
Fiscal Year in Which
Property was Added to
CFD No. 2014-2
067-0030-081-0000 Through 067-0030-082-0000
067-2590-001-0000 Through 067-2590-049-0000 2023-24
067-2600-001-0000 Through 067-2600-074-0000
067-0030-083-0000
067-2590-050-0000 2024-25
067-2420-035-0000
067-2690-001-0000 Through 067-2690-046-0000
067-2700-001-0000 Through 067-2700-140-0000 2025-26
067-2720-001-0000 Through 067-2720-088-0000
067-2750-001-0000 Through 067-2750-101-0000

Tax Zone 5 – Maximum Special Taxes

On July 1 of each Fiscal Year thereafter, the Maximum Special Taxes shall be increased by the Annual Escalation Factor.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

MAXIMUM SPECIAL TAXES

PRIVATE STREET PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $350.7453 per Unit
Single Family Attached Property $277.0789 per Unit
Multi-Family Property $199.9238 per Unit
Micro-Unit Property $133.3491 per Unit
Commercial Property $523.3029 per 1,000 Sq. Ft.

Hotel Property N/A
Industrial Property N/A
Office Property N/A

TAX ZONE 6

Assessor's Parcels Included in Tax Zone 6*
Fiscal Year in Which
Property was Added to
CFD No. 2014-2
067-2370-001-0000 Through 067-2370-011-0000 2021-22
067-2370-002-0000 Through 067-2370-003-0000
067-2370-012-0000
067-2610-001-0000
Through
Through
067-2370-015-0000
067-2610-062-0000
2024-25
067-2620-001-0000 Through 067-2620-117-0000
067-2370-016-0000 Through 067-2370-023-0000
067-2550-116-0000 Through 067-2550-117-0000
067-2580-103-0000 Through 067-2580-104-0000
072-0300-015-0000 Through 072-0300-021-0000
072-4440-001-0000 Through 072-4440-076-0000 2025-26
072-4450-001-0000 Through 072-4450-062-0000
072-4460-001-0000 Through 072-4460-125-0000
072-4510-001-0000 Through 072-4510-082-0000
072-4520-001-0000 Through 072-4520-104-0000

Tax Zone 6 – Maximum Special Taxes
On July 1 of each Fiscal Year thereafter, the Maximum Special Taxes shall be increased by the Annual Escalation Factor.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

MAXIMUM SPECIAL TAXES

ORDINARY USE PARCELS
(FISCAL YEAR 2025-26)

Land Use Class

Maximum Special Tax
Single Family Detached Property $533.8604 per Unit
Single Family Attached Property $421.7409 per Unit
Multi-Family Property $304.2939 per Unit
Micro-Unit Property $202.9640 per Unit
Commercial Property $796.5173 per 1,000 Sq. Ft.

Hotel Property $314.9774 per Unit
Industrial Property $240.2358 per 1,000 Sq. Ft.

Office Property $795.4489 per 1,000 Sq. Ft.

ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

EXHIBI
T C
OWNER AND THE ASSESSOR’S TAX PARCEL NUMBER(S)
Parcel
No. Property Owner
072-0210-099-0000 DHIR Capital Incorporated
ITEM 16.11.

ATTACHMENT 3
Exhibit B to the Resolution

CITY OF RANCHO CORDOVA
Community Facilities District No. 2014-2
(Street, Lighting and Landscape Maintenance)
Annexation No. 20

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

This constitutes the Unanimous Approval (the "Unanimous Approval") of DHIR Capital Incorporated, 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. 2014-2 (Street, Lighting and Landscape Maintenance) (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 Rancho 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 Band made a part hereof (the "Rate and Method"). Exhibit B describes the maximum special tax rate for the Services. This annexed property is placed in Tax Zone 3 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.

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 June 17, 2014 recorded at Book 20140617 at Page 0345 (Document No. 20140617PG0345).

The Property Owner hereby authorizes and directs the City Clerk to execute and cause to be recorded in 1--, /l the Office of the County Recorder of the County of Sacramento an amendment to the Notice of Special Tax Lien / 01l_.

ITEM 16.11.

ATTACHMENT 4
Exhibit C to the Resolution

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. Ifr equested 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:
072-0210-099-0000:

The property consists of a total of 1.32 acres.

By executing this Unanimous Approval, the Property Owner agrees to all of the above.

The Petitioner (record owner) of the Property is:

By: - ------- - Rakes h Dhir, Owner
Dated: ~ ' ( ) U) /~ , 2026
The address to which the ballots for the CFD elections are to be sent:

ATTN: Mauro J Gonzalez (iONNA)
ADDRESS: 4022 Stirrup Creek Drive, Suite 315
Durham, NC 27703
ITEM 16.11.

ATTACHMENT 4
Exhibit C to the Resolution

MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 16.12.

DATE: September 21, 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 DECLARING THE CITY'S INTENTION TO IMPOSE

AN ANNUAL STORMWATER UTILITY FEE FOR THE MAINTENANCE

OF STORM DRAINAGE AND FLOOD PROTECTION SYSTEMS FOR

THE IONNA EV CHARGING PROJECT

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would declare the Council’s intention to impose an annual Stormwater Utility Fee for the maintenance of the storm drainage and flood protection system in the IONNA EV Charging project.

BACKGROUND

The IONNA EV Charging project was previously approved with a condition of approval which requires that the property owner fund operation and maintenance of the storm drainage system.

This condition will be satisfied by participation in the City’s Stormwater Utility Fee for storm drainage and flood protection services, which is the subject of this action.

Previously, projects were required to annex to the County’s Stormwater Utility. Since the City has taken over drainage maintenance and operations services from the County, it was necessary to establish the Stormwater Utility District to fund drainage services to ensure compliance with new state and federal laws and regulations. The Stormwater Utility Fee was established on September 2, 2014, by Ordinance No. 7-2014.

DISCUSSION

The property owners have submitted a petition and waiver for the City to institute the proceedings to impose the Stormwater Utility Fee, Attachment 5. The IONNA EV Charging project is being annexed into the Stormwater Utility Fee bounded by the area outlined in Attachment 3. The maintenance services to be funded include the furnishing of services and materials for the ordinary and usual operation, maintenance, and servicing of the storm drain and flood protection improvements.

City Council Staff Report - Page 2 of 2

A “Rate Analysis Report” was adopted on August 7, 2014, by Resolution No. 103-2014. The report calculated the Fiscal Year 2014/2015 maximum annual Stormwater Utility Fee amount for each parcel proportionate to the estimated stormwater runoff for each parcel. The maximum annual fee increases each subsequent Fiscal Year by the annual change in the Consumer Price Index (CPI), during the preceding year, for all Urban Consumers, for the San Francisco- Oakland-San Jose areas, published by the United States Department of Labor, Bureau of Labor Statistics. A sample of the Stormwater Utility Fees for Fiscal Year 2026-2027 is provided in Attachment 4.

In accordance with Article XIII D, the “Procedures for the Conduct of a Protest Hearing and Balloting Relating to a Proposed Stormwater Utility Fee” as set forth in Attachment 2 and incorporated herein by reference (the “Procedures”).

The Resolution, Attachment 1, sets the public hearing at 5:30 p.m., or as soon thereafter as possible, on October 5, 2026, as the time and date for a hearing on the matters set forth therein and directs the City Clerk to give notice of the public hearing. Notice of the Public Hearing will be published in the Grapevine Independent as required by law.

FISCAL IMPACT AND FUNDING SOURCE

There is no fiscal impact on the city's General Fund. The annual stormwater utility fees collected are deposited into an enterprise fund specifically for the maintenance of the storm drainage and flood protection system.

ATTACHMENT(S)

1. Resolution

2. Exhibit A to the Resolution

3. Annexation Boundary Map

4. Stormwater Utility Fee - Rate Sheet FY26-27

5. Petition with Waivers

ITEM 16.12. 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, DESIGNATING A TIME AND PLACE FOR HEARING PROTESTS IN

CONNECTION WITH THE ANNUAL STORMWATER UTILITY FEE FOR THE RANCHO

CORDOVA IONNA EV CHARGING 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 Monday, October 5, 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 the above-described public hearing, all interested persons shall be afforded the opportunity to

ITEM 16.12. ATTACHMENT 1
Resolution No. XX-2026 Page 2 of 2 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 hereof, 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 21st day of September 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

ATTACHMENT 2
Exhibit A to the Resolution
Page1
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

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 16.12.

ATTACHMENT 2
Exhibit A to the Resolution
Page2

"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 Assessment Roll shall be presumptive evidence of ownership of an Identified Parcel for protest purposes.

ITEM 16.12.

ATTACHMENT 2
Exhibit A to the Resolution
Page3
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 16.12.

ATTACHMENT 2
Exhibit A to the Resolution
Page4

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 16.12.

• 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 16.12.

ATTACHMENT 2
Exhibit A to the Resolution

Legend
Annexation Boundary
Parcel Boundary
APN
072-0210-099
£¤50

HUNT DR

WHITE ROCK RD

PAIUTE WAY

CALLE DEL SOL WAY

QUALITY DR

ZINFANDEL DR
!

CITY OF RANCHO CORDOVA
ST

ORMWATER UTILITY FEE AREA
ANNEXATION 44
(IONNA EV CHARGING)
ITEM 16.12.

ATTACHMENT 3

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 16.12.

ATTACHMENT 4

CPI Increase
Original
Max. Rate
The Ranch -
Rate w/
private
facilities
removed C PI Increase
The Ranch - MFR1 Rate
per Acre
FY 2014-15 $ 114.63 $26.67 FY 2014-15 $250.06
FY 2015-16 $114.63 $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 16.12.

ATTACHMENT 4

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
Attachment 4
ITEM 16.12.

ATTACHMENT 4

CITY OF RANCHO CORDOVA

PETITION
(With Waivers)
Related to the Imposition of a Stormwater Utility Fee
and Other Related Matters
This is a petition to impose a stormwater utility fee and related matters under the Health and Safety Code and Article XIIID of the California State Constitution and it states as follows:

1. Petitioner. This Petition is submitted by the person (the "Petitioner") (whether one or more) identified below as or for the record owner(s) of the parcels of land identified below (the "Property"). The Petitioner warrants to the City that the Petitioner is such owner, or is legally authorized to execute this Petition for and on behalf of such owner(s).

2. Proceedings Requested. This Petition a sks that t he City Council undertake proceedings under the Health and Safety Code and Article XIIID of the California State Constitution to impose a stormwater utility fee.

3. Boundaries. This Petition asks that the territory to be included consist of that shown on a map of the proposed area of the stormwater utility fee described in Exhibit "A" and attached hereto made a part hereof and which map includes the Property.

4. Purpose. This Petition asks that the stormwater utility fee be created, and the fee be levied to finance all or a part of the storm and flood protection services.

5. Waivers. To expedite the completion of the proceedings, the Petitioner waives all notices of hearing and all published notices regarding the establishment of the stormwater utility fee, notices of election, applicable waiting periods for the holding of any public hearing and for election and all ballot arguments and analysis for the election, it being acknowledged by the Petitioner that all such notices are for the benefit of the Petitioner and may be waived.

The Property that is subject to this petition is identified as:

County of Sacramento Assessor's Parcel Numbers:
072-0210-099-0000: The property consists of a total of 1.32 acres.

The property consists of a total of 1.32 acres.

Project: IONNA EV
ITEM 16.12.

ATTACHMENT 5

By executing this Unanimous Approval, the Property Owner agrees to all of the above.

The Petitioner (record owner) of the Property is:

Prop·ertv Owner
DHIR Capital lncor r
Rakesh Dhir, Owner
Dated: -AU 01 / /, 2026
The address to which the ballots for the CFO elections are to be sent:

ATTN: Mauro J Gonzalez (iONNA)
ADDRESS: 4022 Stirrup Creek Drive, Suite 315
Durham, NC 27703
Project: IONNA EV
ITEM 16.12.

ATTACHMENT 5

Exhibit A

CITY OF RANCHO CORDOVA

STORMWATER UTILITY FEE AREA
ANNEXATION 44
(IONNA EV CHARGING)
................... - ---.'
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i APJ
!on-0210-omi
i :
'!' ., .. , --- ....... ,.
j L~~~;d Annexation Boundary
f ~ Parcel Boundary
ITEM 16.12.

ATTACHMENT 5

MEMORANDUM

City Council Staff Report - Page 1 of 1

ITEM 16.13.

DATE: September 21, 2026

TO: Honorable Mayor and Council Members

FROM: Adam Lindgren, City Attorney

SUBJECT: A RESOLUTION APPROVING THE INCREASE OF THE CONTRACT

WITH OUTSIDE COUNSEL SANDERS ROBERTS, LLP, FOR
EMPLOYMENT LITIGATION TO $650,000

RECOMMENDATION

Adopt the Resolution to approve a contract amendment to increase the existing contract with outside counsel Sanders Roberts, LLP to the total amount of $650,000 for employment litigation for the city as may be assigned by the City Attorney in consultation with the City Manager, in a form approved by the City Attorney.

RESULT OF RECOMMENDED ACTION

This item will pay to defend the City of Rancho Cordova in employment litigation.

BACKGROUND

The City Attorney’s law firm, Meyers Nave, provides the city with comprehensive services on personnel and employment matters relating to the city and its employees and officials. From time to time, on particular matters, it may be beneficial to receive litigation services for certain employment litigation from other counsel. For one such matter, the city recently entered into an initial contract for legal services from the law firm Sanders Roberts, LLP. Sanders Roberts, LLP has an impressive record representing public agencies in employment litigation.

FISCAL IMPACT AND FUNDING SOURCE

The City of Rancho Cordova will pay for these services out of the General Fund.

ATTACHMENT(S)

1. Resolution

ITEM 16.13. 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 APPROVE THE INCREASE OF

THE CONTRACT WITH OUTSIDE COUNSEL SANDERS ROBERTS, LLP FOR EMPLOYMENT LITIGATION TO $650,000
WHEREAS, The City Attorney’s law firm, Meyers Nave, provides the City of Rancho Cordova with comprehensive services on personnel and employment matters relating to the city and its employees and officials; and
WHEREAS, from time to time, on particular matters, it may be beneficial to receive litigation services for certain employment litigation from other counsel; and WHEREAS, for one such matter, the City of Rancho Cordova entered into a contract for legal services from the law firm Sanders Roberts, LLP.

NOW THEREFORE, BE IT HEREBY RESOLVED THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, approves the increase of the contract with outside counsel Sanders Roberts, LLP for employment litigation to an amount not to exceed Six Hundred Fifty Thousand Dollars ($650,000) in a form approved by the City Attorney.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 21st day of September 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: ____________________________
Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

MEMORANDUM

City Council Staff Report - Page 1 of 2

ITEM 17.1.

DATE: September 21, 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 CREATING SPECIAL TAX AREA ZONE 36 AND

FIRST READING OF AN ORDINANCE ESTABLISHING A SPECIAL

TAX FOR TRANSIT- RELATED SERVICES FOR THE IONNA EV

CHARGING PROJECT

RECOMMENDATION

Adopt the Resolution, waive the first reading and introduce the Ordinance.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution and Ordinance would assist the City of Rancho Cordova in meeting the costs of providing transit-related services by creating a special tax area zone and establishing a special tax for transit-related services for the IONNA EV Charging project.

BACKGROUND

The City Council adopted Resolution No. 141-2005 on November 7, 2005, providing for a special tax for transit-related services to be imposed upon new development within the city.

Pursuant to that Resolution, a property owner approves a special tax on the parcels within a subdivision or project. The City Council then adopts a resolution creating a zone that encompasses the subdivision or project and an ordinance establishing the special tax.

This item will establish tax area Zone 36, the boundaries of which will be contiguous to the boundaries of the IONNA EV Charging project, see Attachment 2. In addition to creating the special tax, the Ordinance will also set the date for the transit-related services tax election, which will be held on October 27, 2026, at which time the ballot(s) will be tabulated by the City Clerk, and the results will be declared at the City Council meeting on November 16, 2026.

FISCAL IMPACT AND FUNDING SOURCE

There is no fiscal impact to the city.

ATTACHMENT(S)

1. Resolution

2. Exhibit A to the Resolution

3. Ordinance

City Council Staff Report - Page 2 of 2

4. Exhibit A to the Ordinance

5. Exhibit B to the Ordinance

ITEM 17.1. ATTACHMENT 1

Resolution No. XX-2026 Page 1 of 2

CITY OF RANCHO CORDOVA

RESOLUTION NO. XX-2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA, CREATING SPECIAL TAX AREA ZONE 36 FOR THE IONNA EV

CHARGING PROJECT

WHEREAS, it is the intention of the City Council to create Zone 36 within the City of Rancho Cordova Transit-Related Services Special Tax Area and authorize an election; and

WHEREAS, it is the intention of the City Council to adopt an ordinance establishing a special tax for transit-related services within Zone 36; and

WHEREAS, the city recognizes the need for increased transit-related services in Zone 36 and the difficulty of funding the current or increased level of services with revenues now available; and

WHEREAS, it is the intention of the City Council to direct the City Clerk to conduct an election by mail ballot pursuant to Elections Code Section 4000 and to be held on the earliest date permitted by law; and

WHEREAS, the provision of funding to provide transit-related services was made a condition of approval for the IONNA EV Charging project. Conditions of Approval require the property owner/applicant to participate in the provision of funding to provide transit-related services for the project. This will be accomplished by the property owner(s) participation in the transit-related services special tax area; and

WHEREAS, the transit-related services tax as inflated to Fiscal Year 2025-2026 is $89.90 per low density residential dwelling unit or low density residential dwelling unit equivalent, $71.92 per medium density residential dwelling unit or medium density residential dwelling unit equivalent, $53.94 per high density residential dwelling unit or high density residential dwelling unit equivalent, $2,304.78 per retail and service commercial acre, $1,981.18 per business park use or office acre, and $856.99 per light industrial acre, $11,644.30 per Zone 10 MOU Parcel, subject to an annual inflator formula based on the Consumer Price Index for the San Francisco-Oakland-San Jose Area, or six percent, whichever is less. Multi-family residential units on a single parcel shall be assessed on a proportionately equivalent basis (e.g., a two-unit attached housing structure, such as a duplex, would be deemed to consist of two residential parcels for purposes of the transportation tax); and

WHEREAS, for the purposes of this Resolution, a “voter” entitled to vote on the creation of Zone 36 is a person who owns real property within Zone 36, as shown on the last equalized assessment role prepared by the Sacramento County Assessor’s Office, at the time that the City Council submits an ordinance authorizing the imposition of a transit-related services tax to the voters of Zone 36. At the time that the Council adopted this Resolution, there were zero (0) registered voters residing within Zone 36 and one property owner. Because the Transit-Related Services Special Tax will be imposed on property in Zone 36 and paid by the owner of the property, the Council finds that restricting the vote on the Transit-Related Services Special Tax to property owners in Zone 36 is appropriate and consistent with the principles and requirements of California Constitution article XIIIC (Proposition 218).

ITEM 17.1. ATTACHMENT 1

Resolution No. XX-2026 Page 2 of 2

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

1. That portion of the City of Rancho Cordova shown on the Map, Exhibit A attached hereto is established as Zone 36 of the Rancho Cordova Transit-Related Services Special Tax Area.

2. That Ordinance, reviewed and approved by the City Council on the same date as the Resolution, is to be presented for approval of the voter of Zone 36 by a mail ballot election, to be held on October 27, 2026. The ballot proposition shall read as follows:

“Shall Ordinance No. XX-2026 of the City Council of the City of Rancho Cordova be approved so as to authorize a special tax on property located in Zone 36 of the Rancho Cordova Transit-Related Services Special Tax Area to maintain the present level of transit- related services and provide additional funding for increased transit-related services?”

3. The City Clerk is directed to take all steps necessary to conduct the election required by this order. Said election shall be conducted by mailed ballot pursuant to Elections Code Section 4000 and shall be held October 27, 2026.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 21st day of September, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

Legend
Annexation Boundary
Parcel Boundary
APN
072-0210-099
£¤50

HUNT DR

KACHINA WAY

PAIUTE WAY

DATA DR
CA
LLE DE

L SOL W
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QUALITY DR

ZINFANDEL DR

WHITE ROCK RD
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CITY OF RANCHO CORDOVA

TRANSIT

RELATED SERVICES SPECIAL TAX AREA
ANNEXATION 36

IONNA EV CHARGING
ITEM 17.1.

ATTACHMENT 2
Exhibit A to the Resolution

ITEM 17.1. ATTACHMENT 3
Ordinance No. XX-2026 Page 1 of 5

CITY OF RANCHO CORDOVA
ORDINANCE NO. XX-2026

AN ORDINANCE OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA,

ESTABLISHING A SPECIAL TAX FOR TRANSIT-RELATED SERVICES FOR THE IONNA

EV CHARGING PROJECT SUBJECT TO VOTER APPROVAL

THE CITY COUNCIL OF THE CITY OF THE RANCHO CORDOVA DOES ORDAIN AS FOLLOWS:

Section 1. Purpose, Intent and Authority.

It is of critical importance to the City Council of the City of Rancho Cordova that residents of and employees working in the city receive high quality transit-related services. In carefully reviewing the city’s budget and revenue projections, it is clear to city staff that the city budget does not contain adequate funding to ensure the continued delivery of adequate high-quality transit-related services unless additional revenues are obtained.

It is the purpose and intent of this non-codified Ordinance to generate additional funds to pay for transit-related services by authorizing the levy of a tax on improved parcels of real property on the secured property tax roll of Sacramento County that are within Zone 36 of the Rancho Cordova Transit-Related Services Special Tax Area (the “Zone”).

This tax is a special tax within the meaning of Section 4 of the Article XIIIA of the California Constitution. Because the burden of this tax falls upon property, this tax also is a property tax, but this tax is not determined according to nor in any manner based upon the value of property; this tax is levied on a parcel and use of property basis. Insofar as not inconsistent with this Ordinance or with legislation authorizing special taxes and insofar as applicable to a property tax that is not based on value, such provisions of the California Revenue and Taxation Code and of Article XIII of the California Constitution as relate to ad valorem property taxes are intended to apply to the collection and administration of this tax (Section 4 of this Ordinance), as authorized by law. This tax is not an ad valorem property tax; it is an excise tax on the use of property. Because the revenue from the tax may be used only to fund transit-related services, it is also a special tax.

The revenues raised by this tax are to be used solely for the purpose of providing transit-related services as are deemed necessary by the City Council for the benefit of the residents and/or employees of Zone 36.

At the time that the Council adopted this non-codified Ordinance, there were zero (0) registered voters residing in Zone 36 and one property owner. Because the Transit-Related Services Special Tax will be imposed on property in Zone 36 and paid by the owner of the property, the Council finds that restricting the vote on the Transit-Related Services Special Tax to property owners in Zone 36 is appropriate and consistent with the principles and requirements of California Constitution article XIIIC (Proposition 218).

Section 2. Definitions.

ITEM 17.1. ATTACHMENT 3
Ordinance No. XX-2026 Page 2 of 5

The following definitions shall apply throughout this Ordinance.

A. "Constant first year dollars" shall mean an actual dollar amount which, in years subsequent to the first fiscal year the tax is levied, shall have the same purchasing price as the base amount in first fiscal year dollars as measured by the Consumer Price Index. The base amount shall be the amount of tax per parcel as specified in Section 3(A) herein. The adjustments from actual to constant dollars shall be made by use of the Consumer Price Index, as specified in Section 3(B) herein.

B. "Consumer Price Index" means the Consumer Price Index for all Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose Area as published by the U.S.

Department of Labor, Bureau of Labor Statistics. If the Consumer Price Index is discontinued or revised, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Consumer Price Index had not been discontinued or revised.

C. “Fiscal year" means the period of July 1 through the following June 30.

D. “Parcel" means the land and any improvements thereon, designated by an assessor’s parcel map and parcel number and carried on the secured property tax roll of Sacramento County. For the purposes of this Ordinance, parcel does not include any land or improvements outside the boundaries of Zone 36, nor any land or improvements owned by any governmental entity.

E. “Rancho Cordova Transit-Related Services Special Tax Area" means all the properties within the jurisdictional limits of the City of Rancho Cordova.

F. “Rancho Cordova Transit-Related Services Special Tax Area Zone 36 (the “Zone”) means that portion of the incorporated area of the City of Rancho Cordova located within the boundaries as shown on the map Exhibit A.

G. “Transit-Related Services” means providing, operating, maintaining and subsidizing transit services and all supporting facilities, infrastructure, programs and incentives that benefit the residents of the Rancho Cordova Transit-Related Services Special Tax Area, and shall be calculated and set according to the methodology described in Engineer’s Report County Service Area No. 10 and Benefit Zone No. 1 County of Sacramento, November 18, 2004, which established the methodology for the original service charge for Benefit Zone No. 1.

H. “Voter” means a person who owns real property within Zone 36, as shown on the last equalized assessment role prepared by the Sacramento County Assessor’s Office, at the time that the City Council adopts an ordinance authorizing the imposition of a transit- related services tax to the voters of Zone 36.

Section 3. Amount and Level of Taxes.

The tax per year on each parcel in the Zone shall not exceed the amount applicable to the parcel, as specified below.

ITEM 17.1. ATTACHMENT 3
Ordinance No. XX-2026 Page 3 of 5

A. For First Fiscal Year:

The tax per year for the first fiscal year (July 1, 2025 through June 30, 2026) shall be the amount of Tax per Parcel for a Land Use Code Category as set forth on Exhibit B hereto.

The use code assigned to each parcel shall be reviewed and updated periodically. Rates in Exhibit B shall be calculated and set according to the methodology described in Engineer’s Report County Service Area No. 10 and Benefit Zone No. 1 County of Sacramento, November 18, 2004, which established the methodology for the original service charge for Benefit Zone No. 1.

B. For Subsequent Fiscal Years:

In order to keep the tax on each parcel in constant first year dollars for each fiscal year subsequent to the first fiscal year, the tax per year shall be adjusted as set forth below to reflect any increase in the Consumer Price Index beyond the first fiscal year the tax is levied.

In June or July of each year, City Council shall determine the amount of taxes to be levied upon the parcels in Zone 36 for the then current fiscal year, as set forth below.

For each Land Use Category on Exhibit B, the tax per year on each parcel for each fiscal year subsequent to the first fiscal year shall be an amount determined as follows:

Tax Per Parcel
For then Current =
Fiscal Year
Tax Per Parcel
For Immediately
Preceding X
Fiscal Year
Consumer Price Index
from April of immediately
Preceding Fiscal Year to April of
then Current Fiscal Year
OR 6 percent, whichever is less

Provided, however, that in no event shall the tax per parcel for any fiscal year be less than the amount established for the first fiscal year.

C. Nature of Tax Levy.

The taxes levied on each parcel pursuant to this Article shall be a charge upon the parcel and shall be due and collectible as set forth in Section 4, below.

Section 4. Collection and Administration.

A. Taxes as Liens Against the Property.

The amount of taxes for each parcel each year shall constitute a lien on such property, in accordance with Revenue and Taxation Code Section 2187, and shall have the same effect as an ad valorem real property tax lien until fully paid.

B. Collection.

The taxes on each parcel shall be billed on the secured roll tax bills for ad valorem property taxes and are to be collected in the same manner in which Sacramento County collects secured roll ad valorem property taxes. Insofar as feasible and insofar as not inconsistent with this Ordinance, the times and procedures regarding exceptions, due dates,

ITEM 17.1. ATTACHMENT 3
Ordinance No. XX-2026 Page 4 of 5

installment payments, corrections, cancellations, refunds, late payments, penalties, liens, and collections for secured roll ad valorem property taxes (as established by Sacramento County) shall be applicable to the collection of this tax. Notwithstanding anything to the contrary in the foregoing, as to this tax:

1. The secured roll tax bills shall be the only notices required for this tax, and

2. The homeowners and veterans exemptions shall not be applicable because such exemptions are determined by dollar amount of value.

C. Costs of Administration by County.

The reasonable costs incurred by the County officers collecting and administering this tax shall be deducted from the collected taxes.

D. Use of Tax Revenue.

The revenue collected from the tax imposed by this ordinance shall be placed into a separate account and may be used only to fund transit-related services, including the costs of administering and collecting the tax and enforcing the provisions of this ordinance. Revenue from the tax may be used for transit-related services citywide.

E. Refunds.

1. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city pursuant to this ordinance, it may be refunded as provided in this Section.

2. No refund may be made except upon a written claim verified by the person who paid the tax or by his or her guardian or conservator or the executor or administrator of his or her will or estate and stating the grounds upon which the claim is made. All claims filed pursuant to this subsection must be presented within one year after payment of the amount for which the claimant is seeking a refund.

3. No order of a refund may be made until a written claim therefor has been presented in accordance with this subsection. No suit for money, damages or a refund may be brought against the city until a written claim therefor has been presented to the city and has been acted upon or has been deemed rejected by the city, in accordance with this subsection. Only the person who filed the claim may bring such a suit, and if another person should do so, judgment shall not be rendered for the plaintiff.

F. Initiatives to Affect Tax.

Consistent with the California Constitution (art. XIIIC, § 3) the tax imposed by this ordinance may be affected by initiative. The procedures for qualification of such an initiative and the election on a qualified initiative shall be consistent with the California Constitution (art. 2, sec. 8), the California Elections Code (Chapter 3 of Division 9), and the Municipal Code. The minimum number of signatures necessary to qualify an initiative to affect the tax approved by this ordinance shall be equal to 5 percent of the votes in the city for all

ITEM 17.1. ATTACHMENT 3
Ordinance No. XX-2026 Page 5 of 5

candidates for Governor at the last gubernatorial election. The election on a qualified initiative to affect the tax shall be a regular citywide election. An initiative affecting the tax shall be approved only if at least two-thirds of the votes cast on the measure are in favor of its approval.

Section 5. Severability Clause.

If any article, section, subsection, sentence, phrase of clause of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion of this Ordinance. The voters of Zone 36 hereby declare that they would have adopted the remainder of this Ordinance, including each article, section, subsection, sentenced phrase or clause, irrespective of the invalidity of any other article, section, subsection, sentence, phrase or clause.

Section 6. Effective Date and Posting.

This Ordinance shall take effect immediately upon its approval by two-thirds of the voters voting within the Zone in an election to be held on October 27, 2026, so that taxes shall first be collected hereunder for the tax year beginning July 1, 2027.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova this ___ day of ____________, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: _________________________________
Garrett Gatewood, Mayor

_________________________________
Stacy Leitner, CMC
City Clerk

ITEM 17.1. ATTACHMENT 4
Exhibit A to the Ordinance
£¤50
APN
072-0210-099
Exhibit A - Annexation Boundary Map

CITY OF RANCHO CORDOVA

TRANSIT RELATED SERVICES SPECIAL TAX AREA
ANNEXATION 36

IONNA EV CHARGING

Legend
Annexation Boundary
Parcel Boundary
QUALIT
Y DR

ZINFANDEL DR
Y

KACHINA
WAY
CA

LLE DEL SOL
WA
HUNT
DR

PAIUTE WAY

DATA DR
WHITE

ROCK RD
!

ITEM 17.1. ATTACHMENT 5
Exhibit B to the Ordinance

Exhibit B – Property Land Use Category
Amount of Tax per Parcel by Land Use Category

A. Residential Dwelling Units

As adjusted for inflation from the original base year, the amount of Tax per Parcel for fiscal year 2025-2026 for Residential Land Use Categories shall be $89.90 per low density residential dwelling unit or low density residential dwelling unit equivalent, $71.92 per medium density residential dwelling unit or medium density residential dwelling unit equivalent, or $53.94 per high density residential dwelling unit or high density residential dwelling unit equivalent (Multi-family residential units on a single parcel shall be assessed on a proportionately equivalent basis (e.g., a two-unit attached housing structure, such as a duplex, would be deemed to consist of two residential parcels for purposes of the Transit-Related Services Special Tax).

B. Non-Residential

As adjusted for inflation from the original base year, the amount of Tax per Parcel for fiscal year 2025-2026 for Non-Residential Land Use Categories (except Recreational and Agricultural) shall be $2,304.78 per retail and service commercial acre, $1,981.18 per Business Park acre, and $826.99 per light industrial acre.

C. Inflator Formula

The tax is subject to an annual inflator formula based on the Consumer Price Index for all Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose Area, or six percent, whichever is less.

City Council Staff Report – Page 1 of 3

ITEM 17.2.

DATE: September 21, 2026
TO: Honorable Mayor and Council Members
FROM: Chance Finley-Ross, AICP, Associate Planner
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA, AMENDING TITLE 23, ZONING CODE, ARTICLE 9 SPECIFIC USE PROVISIONS, ACCESSORY DWELLING UNITS (ADUS), OF THE RANCHO CORDOVA MUNICIPAL CODE (EXEMPT
PURSUANT TO SECTION 15061(B)(3) OF THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES)

RECOMMENDATION

Waive the first reading and introduce the Ordinance

RESULT OF RECOMMENDED ACTION

The City Council would introduce the Ordinance and waive the first reading. The Ordinance would then be scheduled for a second reading and adoption at a subsequent City Council meeting.

Approval of the Ordinance would amend Title 23 Zoning Code, Article 9 Specific Use Provisions, Section 23.901.060 Accessory dwelling units.

BACKGROUND

Periodically, amendments to the Municipal Code are necessary to address ambiguities, provide clarification, maintain consistency with customary practice, and comply with changes in State law.

In recent years, the State has adopted several amendments to Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) regulations intended to reduce barriers to housing production and streamline permitting processes.

The city previously updated its ADU regulations in 2024. Since that time, additional changes to State ADU and JADU law have taken effect. The city also received a technical assistance letter from the California Department of Housing and Community Development (HCD) identifying provisions of the city's ADU Ordinance that should be revised or clarified to maintain consistency with State law.

The proposed amendments were originally considered by the Planning Commission on May 27, 2026. On the day of the public hearing, the city received correspondence raising questions regarding several of the proposed amendments and their consistency with State ADU law. To allow additional time to review the correspondence, the Planning Commission continued the public hearing.

Following the continuance, city staff met with a representative from HCD to review the proposed

MEMORANDUM

City Council Staff Report – Page 2 of 3
amendments. HCD confirmed that the revisions accurately implement current State ADU law and address the technical assistance comments previously provided by the Department. Following its review, the Planning Commission adopted a resolution recommending that the City Council adopt the proposed ADU Ordinance amendments.

The proposed amendments primarily consist of State law compliance and clarification updates, including revisions to permitting procedures, ADU and JADU development standards, unit allowances, impact fees, fire sprinkler requirements, owner occupancy requirements, and rental term restrictions. Minor grammatical, formatting, and organizational revisions are also included to improve clarity and consistency throughout the ordinance.

ANALYSIS

Section 23.901.060 Accessory Dwelling Unit (ADU) Ordinance Update

An updated Section 23.901.060 Accessory Dwelling Units has been prepared to maintain consistency with current State ADU and JADU law and address the technical assistance comments provided by HCD.

The proposed amendments include updates to application completeness and appeal procedures; unit allowances; impact fee applicability; height and setback standards; fire sprinkler requirements; ADU deed restrictions; JADU bathroom access, construction, owner occupancy, and rental requirements; and applicable definitions and references to State law.

Following the May 27, 2026, Planning Commission continuance, staff met with HCD to review the proposed amendments and confirm their consistency with current State law. HCD confirmed that the revisions appropriately address the Department's technical assistance comments. The Planning Commission subsequently adopted a resolution recommending that the City Council approve the proposed amendments.

The proposed Ordinance before the City Council would amend Title 23, Article 9, Section

23.901.060, Accessory Dwelling Units, of the Rancho Cordova Municipal Code. The amendments are primarily intended to ensure compliance with current State law, clarify existing requirements, and improve the organization and readability of the City's ADU regulations.

Attachments 3 and 4 provide the proposed amendments for Council's consideration. Attachment 3 includes a clean version of the proposed ordinance, while Attachment 4 includes the amendments in track changes format, with new language underlined and deleted language shown in strikethrough. Only sections containing proposed amendments are included in Attachment 4 as excerpts from the Rancho Cordova Municipal Code.

ENVIRONMENTAL ANALYSIS

CEQA requires analysis of agency approvals of discretionary “projects.” A “project” under CEQA is defined as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (CEQA Guidelines, § 15378.)
As reflected in CEQA Guidelines Section 15061(b)(3), an activity is not subject to CEQA where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.”
The proposed amendments are not a “project” within the meaning of CEQA because the

City Council Staff Report – Page 3 of 3
amendments primarily clarify and update existing development standards and procedures to maintain consistency with State law. The amendments do not approve or authorize any specific physical development beyond what is already permitted by existing regulations and State law. As such, no significant expansion of uses or activities would occur as a result of the proposed amendments, and no possibility exists that the ordinance amendments would result in a significant effect on the environment.

Further, any future development projects facilitated by the ordinance amendments would remain subject to applicable permitting requirements and environmental review, as necessary. Therefore, the proposed ordinance amendments are exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), and no further environmental review is required.

FISCAL IMPACT AND FUNDING SOURCE

There is no fiscal impact.

ATTACHMENT(S)

1. Ordinance

2. Exhibit A to the Ordinance

3. Track Changes

ITEM 17.2. ATTACHMENT 1 Ordinance No. XX-2026 Page 1 of 3

CITY OF RANCHO CORDOVA
ORDINANCE NO. XX-2026

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA, STATE OF CALIFORNIA AMENDING TITLE 23, ZONING CODE, ARTICLE 9 SPECIFIC USE

PROVISIONS OF THE CITY OF RANCHO CORDOVA MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF RANCHO CORDOVA DOES ORDAIN AS FOLLOWS:

Section 1. Purpose and Declarations.

WHEREAS, the city conducts periodic updates of the provisions of the Rancho Cordova Municipal Code (RCMC) to ensure compliance with current laws, changes in local policy, consistency with adopted plans and programs, clarify ambiguities, address changing market conditions, reflect best practices, and to address issues or concerns with current regulations; and

WHEREAS, Title 23 Chapter 23.901 Residential Uses, Section 23.901.060 Accessory Dwelling Units of the Municipal Code, sets forth provisions for Accessory Dwelling Units; and

WHEREAS , The Ordinance would amend Section 23.901.060 to make the accessory dwelling unit provisions consistent with State law and to make minor grammatical and structural changes for improved clarity; and

WHEREAS, on September 21,, 2026, the City Council held a properly noticed public hearing for this Ordinance and considered all oral and written testimony.

Section 2: Findings. This Ordinance is adopted pursuant to the following findings:

A. CEQA Compliance. CEQA requires analysis of agency approvals of discretionary “projects.” A “project,” under CEQA, is defined as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (CEQA Guidelines, § 15378.) As reflected in State CEQA Guideline 15061 (b) (3), an activity is not subject to CEQA, “[where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment…” The proposed amendments are not a “project” within the meaning of CEQA because the amendments seek to provide clarification of uses, standards and/or enforcement procedures, address inconsistencies between definitions, delete text that is no longer necessary. Because no expansion of uses or activities is reasonably anticipated, no possibility exists that the ordinance will result in a significant effect on the environment. Thus, the proposed ordinance is not subject to the requirements of CEQA. However, in the event that adoption of the ordinance is considered a CEQA project, it would nonetheless qualify for categorical exemptions as set forth below.

CEQA Guidelines Section 15061(b)(3) states that a project is exempt from CEQA “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The approval of the code amendments set

ITEM 17.2. ATTACHMENT 1 Ordinance No. XX-2026 Page 2 of 3
forth in the proposed ordinance does not approve any physical development and it would not result in direct or indirect physical changes in the environment. Any specific development projects that may result from these changes will be subject to environmental review. The proposed amendments are consistent with the city’s General Plan. For these reasons, the proposed amendments would not have the potential to result in individually or cumulatively significant effects on the environment and these Zoning Code amendments are exempt from review under CEQA and no further environmental review is necessary.

B. The proposed amendment is consistent with the General Plan. The attached Zoning Code Amendments (“Amendments”) are consistent with the General Plan. The amendments would address inconsistencies, delete text and graphics that are no longer necessary, and provide clarifying language for implementation.

C. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the city. The amendments would address inconsistencies, delete text and graphics that are no longer necessary, and provide clarifying language for implementation. None of these proposed amendments will be detrimental to the public interest, health, safety, convenience, or welfare of the city.

D. The proposed amendments are internally consistent with other applicable provisions in this Zoning Code. The Amendments have been reviewed for consistency with the entirety of the Zoning Code and are consistent with other applicable provisions of the Zoning Code.

Section 3. Amendments to Title 23 Zoning Code

The City Council hereby adopts the amendments to Title 23 Zoning Code of the Rancho Cordova Municipal Code, as shown and incorporated in Exhibit A to this Ordinance.

Section 4. Severability

If any provision of this Ordinance or the application thereof to any person or circumstance, is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid or unenforceable.

Section 5. Effective Date

Within fifteen (15) days after adoption, a Summary of this Ordinance shall be published once in the Grapevine Independent, or the Sacramento Bee, a newspaper of general circulation printed and published in Sacramento County and circulated in the City of Rancho Cordova, in accordance with Government Code Section 36933. This Ordinance shall take effect and be enforced thirty (30) days after its adoption.

ITEM 17.2. ATTACHMENT 1 Ordinance No. XX-2026 Page 3 of 3
PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the ___ day of _____, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: ____________________________
Garrett Gatewood, Mayor

________________________
Stacy Leitner, CMC
City Clerk

ATTACHMENT 2
Exhibit A to the Ordinance
ITEM 17.2.

Rancho Cordova

Municipal Code
Amendments

ATTACHMENT 2
Exhibit A to the Ordinance
ITEM 17.2.

Note to Reader: Only those sections and/or subsections listed within this document are being amended. Unless otherwise indicated, all sections and subsections prior to and after the amended section and/or subsection shall remain unchanged.

23.901.060 Accessory dwelling units.

A. Purpose and Intent. This section establishes regulations and a ministerial review process for accessory dwelling units. Accessory dwelling units are intended to expand housing opportunities for low-income and moderate-income or elderly households by increasing the number of rental units available within existing neighborhoods while maintaining the architectural character of the area.

B. Applicability. This section applies to all accessory dwelling units, including junior accessory dwelling units, as defined.

C. Where Permitted. Accessory dwelling units are permitted by right in any zoning district which permits single- family or multifamily homes.

D. Relationship to General Plan and Zoning.

1. Any accessory dwelling unit which conforms with the requirements of this chapter shall be deemed to be consistent with the General Plan designation and zoning for the parcel, regardless of any limitations on residential density imposed by the General Plan or zoning.

2. Accessory dwelling units shall not be counted when determining residential density for conformance with General Plan or zoning.

E. Permits and Approval.

1. Ministerial Action. Approval or denial of an accessory dwelling unit or junior accessory dwelling unit is a ministerial action and subject to compliance with the standards in this section.

2. Building Permit. All accessory dwelling units or junior accessory dwelling units shall require a building permit, subject to all the standard application and processing fees and procedures that apply to building permits generally. No other separate planning-related permit is required.

3. Application Completion Determination. Within 15 business days of receiving an application for an accessory dwelling unit or junior accessory dwelling unit, the City shall determine whether the application is complete and shall provide written notice of the determination to the applicant. If the application is determined to be incomplete, the written notice shall identify the missing information and describe how the application may be made complete.

4. Issuance of Permit. The city shall issue a building permit for an accessory dwelling unit within 60 calendar days from the date on which the city received a completed submittal package application, unless either:

ATTACHMENT 2
Exhibit A to the Ordinance
ITEM 17.2.

a. The applicant requests a delay, in which case the 60-day time period is put on hold for the period of the requested delay; or

b. The application to create an accessory dwelling unit or junior accessory dwelling unit is submitted with an application to create a new single-family or new multifamily dwelling on the parcel. The city may delay acting on the permit application for the accessory dwelling unit or junior accessory dwelling unit until the city acts on the permit application to create the new single-family or new multifamily dwelling on the parcel.

F. Denial. If the City denies an application for an accessory dwelling unit or junior accessory dwelling unit, the City shall provide the applicant, within the applicable review period, a written notice identifying all items that are incomplete, deficient, or otherwise require correction. The notice shall describe the steps or revisions necessary for the applicant to remedy the identified issues and resubmit a complete application.

G. Appeals. The City shall provide a process for an applicant to appeal a determination that an application is incomplete or a denial of an accessory dwelling unit or junior accessory dwelling unit permit. The City shall issue a final written determination on the appeal within 60 business days of receipt of the appeal.

H. Definitions. The following words and phrases shall, for the purposes of this chapter, have the meanings respectively ascribed to them by this section, as follows:

1. “Accessory dwelling unit or ADU means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary dwelling. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation and shall be constructed on the same parcel as the single-family or multifamily dwelling unit that is the primary dwelling unit or will be situated. An accessory dwelling unit also includes the following: (a) an efficiency unit, as defined in Section 17958.1 of the Health and Safety Code, and (b) a manufactured home, as defined in Section 18007 of the Health and Safety Code. This definition shall be interpreted as consistent with and including the definition of accessory dwelling unit found in Government Code Section 66313.

2. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same parcel. This definition shall be interpreted as consistent with and including the definition of accessory structure found in Government Code Section 66313.

3. “Car share” means a program that allows customers hourly access to shared vehicles from a dedicated home location, with the vehicles required to be returned to that same location at the end of the trip.

4. “Efficiency kitchen” means a cooking facility that includes all of the following:

a. A cooking facility with appliances.

b. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

5. Efficiency Unit. As defined in Section 17958.1 of the Health and Safety Code.

6. Junior Accessory Dwelling Unit or JADU. A “junior accessory dwelling unit” means a unit that is no more than 500 square feet of interior livable space contained entirely within a single-unit primary dwelling. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the primary dwelling. This definition shall be interpreted as consistent with and including the definition of junior accessory dwelling unit found in Government Code Section 66313.

ATTACHMENT 2
Exhibit A to the Ordinance
ITEM 17.2.

7. “Living area” means the interior habitable area of a dwelling unit including basements and attics, but does not include a garage or any accessory structure. This definition shall be interpreted as consistent with and including the definition of living area found in Government Code Section 66313.

8. “Passageway” means a pathway that is unobstructed, clear to the sky and extends from a street or alley to one entrance of the accessory dwelling unit. This definition shall be interpreted as consistent with and including the definition of passageway found in Government Code Section 66313.

9. “Primary dwelling” means an existing or proposed residential structure on a lot with an accessory dwelling unit.

10. “Public transit” means a location, including but not limited to a bus stop or train station, where the public may access buses, trains, subway, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

11. Single-Unit and Multi-Unit. “Single-unit” means the same as a single-family dwelling and “multi-unit” means multifamily dwellings with two or more units.

12. “Tandem parking” means two or more automobiles parked on a driveway or in any other location on a parcel, lined up behind one another.

I. Types of Accessory Dwelling Units. The following are the types of accessory dwelling units:

1. Accessory dwelling unit, attached and detached, as defined below.

a. Attached. An accessory dwelling unit that is attached to an existing or proposed primary dwelling, such as through a shared wall, floor, or ceiling, including attached garages, storage areas or similar uses, or within an accessory structure. An attached accessory dwelling unit can be created by converting a portion of an existing primary dwelling, by constructing a new primary dwelling with an integral accessory dwelling unit, or by constructing an addition to an existing primary dwelling.

b. Detached. An accessory dwelling unit that is physically detached or separated from the primary dwelling. Detached includes a second-story addition above an existing detached structure. A detached accessory dwelling unit can be new construction or the conversion or expansion of an existing structure.

2. Junior Accessory Dwelling Unit. An attached accessory dwelling unit is a unit that meets specific criteria as specified below.

a. Maximum of 500 square feet in size.

b. Contained entirely within a single-unit primary dwelling.

c. Has a separate entrance from the main entrance to the primary dwelling.

d. Includes a bathroom within the JADU or shares a bathroom with the primary dwelling, provided the JADU has a separate entrance that is not the main entrance and maintains interior access to the primary living area.

e. Includes an efficiency kitchen.

ATTACHMENT 2
Exhibit A to the Ordinance
ITEM 17.2.

J. Number of Accessory Dwelling Units or Junior Accessory Dwelling Units Allowed per Parcel in Zones Permitting Single-Family Homes. In all zoning districts where single-family homes are a permitted use, the following units are allowed per parcel:

1. One accessory dwelling unit and one junior accessory dwelling unit located within the existing or proposed space of a single-family dwelling or accessory structure, as provided in Government Code Section 66323(a)(1).

2. One detached, newly constructed accessory dwelling unit, as provided in Government Code Section 66323(a)(2).

3. One additional accessory dwelling unit authorized pursuant to Government Code Section 66314, independent of the accessory dwelling units permitted under Government Code Section 66323.

K. Type and Number of Accessory Dwelling Units per Lot with an Existing Multifamily Home. The following apply to accessory dwelling units in all zoning districts that allow multifamily homes as a permitted use:

1. Accessory Dwelling Units.

a. At least one ADU or up to 25 percent of the existing multifamily units shall be allowed within an existing multifamily dwelling.

b. Accessory dwelling units in a multifamily development may be created only through the conversion of parts of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages.

2. Detached Accessory Dwelling Units.

a. Up to eight detached accessory dwelling units shall be allowed on a parcel with existing multifamily structures, subject to compliance with the development standards for detached accessory dwelling units in this chapter. The number of ADUs may not exceed the number of existing units on the lot. b. If the existing multifamily dwelling has a rear or side setback of less than four feet, no modification of the existing multifamily dwelling shall be required as a condition of approving the application to construct an accessory dwelling unit.

L. Development Standards for Attached and Detached Accessory Dwelling Units. The following standards apply to accessory dwelling units:

1. Attached Accessory Dwelling Units.

a. Location. Attached accessory dwelling units shall be located on the same lot or parcel as an existing or proposed primary dwelling unit and be attached to the primary dwelling unit by at least one wall or by a ceiling (above or below the primary dwelling unit) on a lot that is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling.

b. Size. The total floor area of an attached accessory dwelling unit shall not exceed 850 square feet for a one-bedroom unit or 1,000 square feet for an accessory dwelling unit that provides more than one bedroom. If there is an existing primary dwelling, the total floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing primary dwelling. These limits do not include up to 150 square feet of area added to the primary dwelling for the sole purpose of providing ingress and egress to the accessory dwelling unit.

c. Setbacks.

i. Front yard setback: Per the zoning district standard for the primary dwelling, except that no front setback requirement shall preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacks and a height of at least 16 feet.

ATTACHMENT 2
Exhibit A to the Ordinance
ITEM 17.2.

ii. Side yard: Four feet.

iii. Rear yard: Four feet.

iv. No setback shall be required for an existing living area or accessory structure, or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit.

d. Height. 25 feet or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower. This height requirement shall not require the city to allow an accessory dwelling unit to exceed two stories.

e. Access. An attached accessory dwelling unit shall have direct exterior access separate from the main entrance to the primary dwelling.

f. Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit.

g. Fire Sprinklers. Fire sprinklers are not required in an accessory dwelling unit if they are not required for the primary dwelling. Construction of an accessory dwelling unit shall not trigger fire sprinkler installation in an existing primary dwelling.

h. Landscape. Landscaped areas within setbacks shall meet the requirements of this code.

i. No provision within this section, including but not limited to lot coverage, building separation, or legal nonconformity, shall preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacks

2. Detached Accessory Dwelling Unit Development Standards.

a. Location. Detached accessory dwelling units shall be located on the same lot or parcel as an existing or proposed primary dwelling on a lot that is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling.

b. Size. A detached accessory dwelling unit shall not exceed 850 square feet for a one-bedroom unit or 1,000 square feet for an accessory dwelling unit that provides more than one bedroom.

c. Setbacks.

i. Front yard setback: Per the zoning district standard for the primary dwelling, except that no front setback requirement shall preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacks and a height of at least 16 feet

ii. Side yard: Four feet.

iii. Rear yard: Four feet.

d. Height. The maximum height of a detached accessory dwelling unit shall be:
a. 16 feet for new structures built specifically as an accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit. Existing structures taller

ATTACHMENT 2
Exhibit A to the Ordinance
ITEM 17.2.

than 16 feet can be converted to an accessory dwelling unit consistent with the requirements of this chapter.
b. 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor. An additional two feet in height may be permitted to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
c. 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed multifamily, multistory dwelling.

e. Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit.

f. Fire Sprinklers. Fire sprinklers are not required in an accessory dwelling unit if they are not required for the primary dwelling. Construction of an accessory dwelling unit shall not trigger fire sprinkler installation in a primary dwelling.

g. Landscape. All setback areas shall be landscaped as required by this code.

h. Building Separation. An accessory dwelling unit shall comply with the building separation requirements of the underlying zone, except that such requirements shall not preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacks.

i. No provision within this section, including but not limited to lot coverage, building separation, or legal nonconformity, shall preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacks.

3. Junior Accessory Dwelling Unit Development Standards.

a. Location. Shall be located on the same lot or parcel as a primary dwelling unit and shall be constructed entirely within the walls of the single-family residence, including an attached garage. A junior accessory dwelling unit may be located above or below the primary dwelling unit.

b. Size. Maximum of 500 square feet of interior livable space.

c. Setbacks. A junior accessory dwelling unit shall be constructed entirely within the existing or proposed single-family residence, including an attached garage, and shall not involve an expansion of the primary dwelling unit to create the junior accessory dwelling unit. No additional setbacks shall be required beyond those applicable to the primary dwelling, except as required by applicable building or fire codes.

d. Access. A junior accessory dwelling unit shall have a separate entrance that is not the main entrance to the primary dwelling.

e. Kitchen. Each junior accessory dwelling unit shall include an efficiency kitchen which must include (i) a cooking facility with appliances and (ii) a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

f. Fire Sprinklers. Fire sprinklers shall not be required for a junior accessory dwelling unit if they are not required for the primary dwelling. Construction of a junior accessory dwelling unit shall not trigger a requirement for fire sprinklers in the primary dwelling.

ATTACHMENT 2
Exhibit A to the Ordinance
ITEM 17.2.

g. Utilities.

i. A junior accessory dwelling unit shall not be considered a separate or new dwelling unit for the purposes of calculating connection fees or capacity charges for utilities, including water, sewer, power service, or impact fees.

ii. No new or separate utility connection between the junior accessory dwelling unit and the utility shall be required, although the property owner may voluntarily install a submeter for the junior accessory dwelling unit.

iii. Any utility charges or fees shall be consistent with state law.

h. Parking. No additional off-street parking is required for the junior accessory dwelling unit.

i. Owner Occupancy and Deed Restriction.

i. If a junior accessory dwelling unit shares sanitation facilities with the primary dwelling, a person with legal or equitable title to the property shall reside on the property in either the primary dwelling or the junior accessory dwelling unit as their legal domicile and permanent residence.

ii. If the junior accessory dwelling unit includes separate sanitation facilities, owner occupancy shall not be required.

iii. The owner occupancy requirement does not apply if the property is entirely owned by a governmental agency, land trust, or nonprofit housing organization.

iv. Prior to issuance of a building permit for a junior accessory dwelling unit, a deed restriction shall be recorded against the property in a form approved by the City Attorney consistent with state law. The deed restriction shall run with the land and shall be binding on all future property owners pursuant to Government Code Section 66333.

j. Rental Term. junior accessory dwelling unit shall not be rented for a term of less than 30 days.

M. Impact Fees.

1. Impact Fee Requirements.

a. No city-imposed impact fees shall be charged for an accessory dwelling unit that is less than 750 square feet in size.

b. For accessory dwelling units 750 square feet or larger, city-imposed impact fees shall be charged proportionately in relation to the square footage of the primary dwelling.

c. Impact fees do not include any connection fee or capacity charge charged by a local agency, special district, or water corporation.

N. Required Parking for Accessory Dwelling Units.

1. Number of Parking Spaces. Parking for accessory dwelling units shall be provided per the following:

ATTACHMENT 2
Exhibit A to the Ordinance
ITEM 17.2.

a. One off-street parking space, covered or uncovered, is required for each attached and detached accessory dwelling unit or bedroom, whichever is less. These spaces may be provided as tandem parking on a driveway.

b. Notwithstanding any other section, no off-street parking is required for an attached or detached accessory dwelling unit if one or more of the following applies:

i. The accessory dwelling unit is located within one-half-mile walking distance of public transit, including transit stations and bus stations.

ii. When on-street parking permits are required by the city, but not offered to the occupant of the accessory dwelling unit.

iii. The accessory dwelling unit is part of the proposed or existing primary residence.

iv. The accessory dwelling unit is located within an architecturally and historically significant historic district.

v. When there is a car share vehicle located within one block of the accessory dwelling unit.

vi. When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this chapter.

c. Off-street parking shall be permitted in setback areas in locations determined by the city or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions.

2. When a garage, carport, or covered parking structure is demolished to allow for the construction of an accessory dwelling unit or for the conversion of a structure to an accessory dwelling unit it shall not be required to be replaced.

3. Guest parking spaces shall not be required for accessory dwelling units under any circumstances. [Ord. 17- 2021 § 3 (Exh. A); Ord. 4-2017 § 3 (Exh. B); Ord. 12-2011 § 3 (Exh. A); Ord. 27-2008 § 1 (Exh. A § 5.1.060)].

23.901.065 Junior accessory dwelling units.

Repealed by Ord. 1-2022. [Ord. 4-2017 § 3 (Exh. B)].

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

Rancho Cordova

Municipal Code
Amendments

TRACK CHANGES

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

Note to Reader: Only those sections and/or subsections listed within this document are being amended. Unless otherwise indicated, all sections and subsections prior to and after the amended section and/or subsection shall remain unchanged.

23.901.060 Accessory dwelling units.

A. Purpose and Intent. This section establishes regulations and a ministerial review process for accessory dwelling units. Accessory dwelling units are intended to expand housing opportunities for low-income and moderate-income or elderly households by increasing the number of rental units available within existing neighborhoods while maintaining the architectural character of the area.

B. Applicability. This section applies to all accessory dwelling units, including junior accessory dwelling units, as defined.

C. Where Permitted. Accessory dwelling units are permitted by right in any zoning district which permits single- family or multifamily homes.

D. Relationship to General Plan and Zoning.

1. Any accessory dwelling unit which conforms with the requirements of this chapter shall be deemed to be consistent with the General Plan designation and zoning for the parcel, regardless of any limitations on residential density imposed by the General Plan or zoning.

2. Accessory dwelling units shall not be counted when determining residential density for conformance with General Plan or zoning.

E. Permits and Approval.

1. Ministerial Action. Approval or denial of an accessory dwelling unit or junior accessory dwelling unit is a ministerial action and subject to compliance with the standards in this section.

2. Building Permit. All accessory dwelling units or junior accessory dwelling units shall require a building permit, subject to all the standard application and processing fees and procedures that apply to building permits generally. No other separate planning-related permit is required.

3. Application Completion Determination. Within 15 business days of receiving an application for an accessory dwelling unit or junior accessory dwelling unit, the City shall determine whether the application is complete and shall provide written notice of the determination to the applicant. If the application is determined to be incomplete, the written notice shall identify the missing information and describe how the application may be made complete.

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

43. Issuance of Permit. The city shall issue a building permit for an accessory dwelling unit within 60 calendar days from the date on which the city received a completed submittal package application, unless either:
a. The applicant requests a delay, in which case the 60-day time period is put on hold for the period of the requested delay; or
b. The application to create an accessory dwelling unit or junior accessory dwelling unit is submitted with an application to create a new single-family or new multifamily dwelling on the parcel. The city may delay acting on the permit application for the accessory dwelling unit or junior accessory dwelling unit until the city acts on the permit application to create the new single-family or new multifamily dwelling on the parcel.

F. Denial. If the City denies an application for an accessory dwelling unit or junior accessory dwelling unit, the City shall provide the applicant, within the applicable review period, a written notice identifying all items that are incomplete, deficient, or otherwise require correction. The notice shall describe the steps or revisions necessary for the applicant to remedy the identified issues and resubmit a complete application.

G. Appeals. The City shall provide a process for an applicant to appeal a determination that an application is incomplete or a denial of an accessory dwelling unit or junior accessory dwelling unit permit. The City shall issue a final written determination on the appeal within 60 business days of receipt of the appeal.

FH. Definitions. The following words and phrases shall, for the purposes of this chapter, have the meanings respectively ascribed to them by this section, as follows:

1. “Accessory dwelling unit or ADU means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary dwelling. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation and shall be constructed on the same parcel as the single-family or multifamily dwelling unit that is the primary dwelling unit or will be situated. An accessory dwelling unit also includes the following: (a) an efficiency unit, as defined in Section 17958.1 of the Health and Safety Code, and (b) a manufactured home, as defined in Section 18007 of the Health and Safety Code. This definition shall be interpreted as consistent with and including the definition of accessory dwelling unit found in Government Code Section 66313.

2. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same parcel. This definition shall be interpreted as consistent with and including the definition of accessory structure found in Government Code Section 66313.

3. “Car share” means a program that allows customers hourly access to shared vehicles from a dedicated home location, with the vehicles required to be returned to that same location at the end of the trip.

4. “Efficiency kitchen” means a cooking facility that includes all of the following:
a. A cooking facility with appliances.
b. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

5. Efficiency Unit. As defined in Section 17958.1 of the Health and Safety Code.

6. Junior Accessory Dwelling Unit or JADU. A “junior accessory dwelling unit” means a unit that is no more than 500 square feet of interior livable space contained entirely within a single-unit primary dwelling. A

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the primary dwelling. This definition shall be interpreted as consistent with and including the definition of junior accessory dwelling unit found in Government Code Section 66313.

7. “Living area” means the interior habitable area of a dwelling unit including basements and attics, but does not include a garage or any accessory structure. This definition shall be interpreted as consistent with and including the definition of living area found in Government Code Section 66313.

8. “Passageway” means a pathway that is unobstructed, clear to the sky and extends from a street or alley to one entrance of the accessory dwelling unit. This definition shall be interpreted as consistent with and including the definition of passageway found in Government Code Section 66313.

9. “Primary dwelling” means an existing or proposed residential structure on a lot with an accessory dwelling unit.

10. “Public transit” means a location, including but not limited to a bus stop or train station, where the public may access buses, trains, subway, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

11. Single-Unit and Multi-Unit. “Single-unit” means the same as a single-family dwelling and “multi-unit” means multifamily dwellings with two or more units.

12. “Tandem parking” means two or more automobiles parked on a driveway or in any other location on a parcel, lined up behind one another.

IG. Types of Accessory Dwelling Units. The following are the types of accessory dwelling units:

1. Accessory dwelling unit, attached and detached, as defined below. a. Attached. An accessory dwelling unit that is attached to an existing or proposed primary dwelling, such as through a shared wall, floor, or ceiling, including attached garages, storage areas or similar uses, or within an accessory structure. An attached accessory dwelling unit can be created by converting a portion of an existing primary dwelling, by constructing a new primary dwelling with an integral accessory dwelling unit, or by constructing an addition to an existing primary dwelling. b. Detached. An accessory dwelling unit that is physically detached or separated from the primary dwelling. Detached includes a second-story addition above an existing detached structure. A detached accessory dwelling unit can be new construction or the conversion or expansion of an existing structure.

2. Junior Accessory Dwelling Unit. An attached accessory dwelling unit is a unit that meets specific criteria as specified below.
a. Maximum of 500 square feet in size.
b. Contained entirely within a single-unit primary dwelling. c. Has a separate entrance from the main entrance to the primary dwelling.

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

d. Includes a bathroom within the JADU or shares a bathroom with the primary dwelling, provided the JADU has a separate entrance that is not the main entrance and maintains interior access to the primary living area.Has a bathroom that is either in the junior ADU or in the primary dwelling. e. Includes an efficiency kitchen.

J. Number of Accessory Dwelling Units or Junior Accessory Dwelling Units Allowed per Parcel in Zones Permitting Single-Family Homes. In all zoning districts where single-family homes are a permitted use, the following units are allowed per parcel:

1. One accessory dwelling unit and one junior accessory dwelling unit located within the existing or proposed space of a single-family dwelling or accessory structure, as provided in Government Code Section 66323(a)(1).

2. One detached, newly constructed accessory dwelling unit, as provided in Government Code Section 66323(a)(2).H. Number of Accessory Dwelling Units or Junior Accessory Dwelling Units per Lot or Parcel in Zones Which Allow Single-Family Homes. The following number of accessory dwelling units apply in all zoning districts that allow single-family homes as a permitted use:

3. One additional accessory dwelling unit authorized pursuant to Government Code Section 66314, independent of the accessory dwelling units permitted under Government Code Section 66323.1. One attached or detached accessory dwelling unit shall be allowed on a parcel with a primary dwelling unit.

2. One junior accessory dwelling unit shall be allowed on a parcel with a primary dwelling.

3. Up to one attached or detached accessory dwelling unit and one junior accessory dwelling unit shall be allowed on a single parcel.

KI. Type and Number of Accessory Dwelling Units per Lot with an Existing Multifamily Home. The following apply to accessory dwelling units in all zoning districts that allow multifamily homes as a permitted use:

1. Accessory Dwelling Units.
a. At least one ADU or up to 25 percent of the existing multifamily units shall be allowed within an existing multifamily dwelling.
b. Accessory dwelling units in a multifamily development may be created only through the conversion of parts of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages.

2. Detached Accessory Dwelling Units.
a. Up to two eight detached accessory dwelling units shall be allowed on a parcel with existing multifamily structures, subject to compliance with the development standards for detached accessory dwelling units in this chapter. The number of ADUs may not exceed the number of existing units on the lot..
b. If the existing multifamily dwelling has a rear or side setback of less than four feet, no modification of the existing multifamily dwelling shall be required as a condition of approving the application to construct an accessory dwelling unit.

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

LJ. Development Standards for Attached and Detached Accessory Dwelling Units. The following standards apply to accessory dwelling units:

1. Attached Accessory Dwelling Units.
a. Location. Attached accessory dwelling units shall be located on the same lot or parcel as an existing or proposed primary dwelling unit and be attached to the primary dwelling unit by at least one wall or by a ceiling (above or below the primary dwelling unit) on a lot that is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling. b. Size. The total floor area of an attached accessory dwelling unit shall not exceed 850 square feet for a one-bedroom unit or 1,000 square feet for an accessory dwelling unit that provides more than one bedroom. If there is an existing primary dwelling, the total floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing primary dwelling. These limits do not include up to 150 square feet of area added to the primary dwelling for the sole purpose of providing ingress and egress to the accessory dwelling unit.
c. Setbacks.
i. Front yard setback: Per the zoning district standard for the primary dwelling, except that no front setback requirement shall preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacks and a height of at least 16 feet.Per the zoning district standard for the primary dwelling. ii. Side yard: Four feet.
iii. Rear yard: Four feet.
iv. No setback shall be required for an existing living area or accessory structure, or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit. d. Height. 25 feet or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower. This height requirement shall not require the city to allow an accessory dwelling unit to exceed two stories.
e. Access. An attached accessory dwelling unit shall have direct exterior access separate from the main entrance to the primary dwelling.
f. Design. Accessory dwelling units shall be compatible with the architectural style, materials, and colors of the primary dwelling unit.
fg. Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit.
gh. Fire Sprinklers. Fire sprinklers are not required in an accessory dwelling unit if they are not required for the primary dwelling. Construction of an accessory dwelling unit shall not trigger fire sprinkler installation in an existing primary dwelling.An attached accessory dwelling unit shall not be required to provide fire sprinklers if they are not required for the primary dwelling. hi. Landscape. Landscaped areas within setbacks shall meet the requirements of this code.

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

j. Before permit issuance, the city shall be provided with a copy of the recorded deed restriction, which shall run with the land, using the city’s form.
ik. No provision within this section, including but not limited to lot coverage, building separation, or legal nonconformity, shall preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacksNo provisions within this section, including lot coverage or legal nonconformity, shall preclude an attached minimum 800-square-foot accessory dwelling unit that is at least 16 feet in height with four-foot side yard and rear yard setbacks, and that is constructed in compliance with all other development standards.

2. Detached Accessory Dwelling Unit Development Standards. a. Location. Detached accessory dwelling units shall be located on the same lot or parcel as an existing or proposed primary dwelling on a lot that is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling. b. Size. A detached accessory dwelling unit shall not exceed 850 square feet for a one-bedroom unit or 1,000 square feet for an accessory dwelling unit that provides more than one bedroom. c. Setbacks.
i. Front yard setback: Per the zoning district standard for the primary dwelling, except that no front setback requirement shall preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacks and a height of at least 16 feetPer the zoning district standard for the primary dwelling. ii. Side yard: Four feet.
iii. Rear yard: Four feet.
d. Height. The maximum height of a detached accessory dwelling unit shall be:
a. 16 feet for new structures built specifically as an accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit. Existing structures taller than 16 feet can be converted to an accessory dwelling unit consistent with the requirements of this chapter.
b. 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor. An additional two feet in height may be permitted to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
c. 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed multifamily, multistory dwelling.
e. Design. Detached accessory dwelling units shall be compatible with the architectural style, materials, and colors of the primary dwelling unit.
ef. Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit.
fg. Fire Sprinklers. Fire sprinklers are not required in an accessory dwelling unit if they are not required for the primary dwelling. Construction of an accessory dwelling unit shall not trigger fire sprinkler

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

installation in a primary dwelling.An attached accessory dwelling unit shall not be required to provide fire sprinklers if they are not required for the primary dwelling. gh. Landscape. All setback areas shall be landscaped as required by this code. i. Before permit issuance, the city shall be provided with a copy of the recorded deed restriction, which shall run with the land, using the city’s form.
hj. Building Separation. An accessory dwelling unit shall comply with the building separation requirements of the underlying zone, except that such requirements shall not preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacks.An accessory dwelling unit shall comply with the building separation requirements of the underlying zone, but in no case shall said requirement prohibit an accessory dwelling unit that is a minimum of 800 square feet, maximum of 16 feet in height with four-foot side and rear yard setbacks. ik. No provision within this section, including but not limited to lot coverage, building separation, or legal nonconformity, shall preclude the construction of at least one accessory dwelling unit of up to 800 square feet with four-foot side and rear yard setbacks.No provisions within this section, including lot coverage or legal nonconformity, shall preclude a detached minimum 800-square-foot accessory dwelling unit that is at least 16 feet in height with four-foot side yard and rear yard setbacks, and that is constructed in compliance with all other development standards.

3. Junior Accessory Dwelling Unit Development Standards. a. Location. Shall be located on the same lot or parcel as a primary dwelling unit and shall be constructed entirely within the walls of the single-family residence, including an attached garage. A junior accessory dwelling unit may be located above or below the primary dwelling unit.Shall be located on the same lot or parcel as a primary dwelling unit and be within the walls of the single-family residence, including an attached garage, of the primary dwelling unit by at least one wall or by a ceiling. The junior accessory dwelling unit may be located above or below the primary dwelling unit. b. Size. Maximum of 500 square feet of interior livable space.500 square feet of living area. c. Setbacks. If the primary dwelling unit is expanded to create tA junior accessory dwelling unit shall be constructed entirely within the existing or proposed single-family residence, including an attached garage, and shall not involve an expansion of the primary dwelling unit to create the junior accessory dwelling unit. No additional setbacks shall be required beyond those applicable to the primary dwelling, except as required by applicable building or fire codes.he junior accessory dwelling unit, the addition shall maintain setbacks of four feet from side and rear yards or the same setback as the existing structure, whichever is less. Front setback shall be the same as the existing structure or per the zoning district for the primary structure, whichever is less. Larger setbacks shall apply if required by fire or building codes on a case-by-case basis.
d. Access. A junior accessory dwelling unit shall have a separate entrance that is separate from not the main entrance to the primary dwelling.
e. Kitchen. Each junior accessory dwelling unit shall include an efficiency kitchen which must include (i) a cooking facility with appliances and (ii) a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. f. Fire Sprinklers. Fire sprinklers shall not be required for a junior accessory dwelling unit if they are not required for the primary dwelling. Construction of a junior accessory dwelling unit shall not trigger a requirement for fire sprinklers in the primary dwelling.

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

gf. Utilities.
i. A junior accessory dwelling unit shall not be considered a separate or new dwelling unit for the purposes of calculating connection fees or capacity charges for utilities, including water, sewer, orsewer, power service, or impact fees.
ii. No new or separate utility connection between the junior accessory dwelling unit and the utility shall be required, although the property owner may voluntarily install a submeter for the junior accessory dwelling unit.
iii. Any utility charges or fees shall be consistent with state law. hg. Parking. No additional off-street parking is required for the junior accessory dwelling unit. ih. Owner Occupancy and Deed Restriction.
i. If a junior accessory dwelling unit shares sanitation facilities with the primary dwelling, a person with legal or equitable title to the property shall reside on the property in either the primary dwelling or the junior accessory dwelling unit as their legal domicile and permanent residence.A person with legal or equitable title to the primary dwelling shall reside on the property in either the primary dwelling or junior accessory dwelling unit as that person’s legal domicile and permanent residence.
ii. If the junior accessory dwelling unit includes separate sanitation facilities, owner occupancy shall not be required.
iii. The owner occupancy requirement does not apply if the property is entirely owned by a governmental agency, land trust, or nonprofit housing organization. iiiiv. Prior to issuance of a building permit for a junior accessory dwelling unit, a deed restriction shall be recorded against the property in a form approved by the City Attorney consistent with state law. The deed restriction shall run with the land and shall be binding on all future property owners Prior to issuance of a building permit for a junior accessory dwelling unit, a deed restriction shall be recorded in the chain of title of the primary single-unit property. The form of the deed restriction shall be approved by the city attorney pursuant to Government Code Section 66333.
j. Rental Term. junior accessory dwelling unit shall not be rented for a term of less than 30 days. iv. The deed restriction shall run with the land and shall be enforced against future property owners.

MK. Impact Fees.

1. Impact Fee Requirements.
a. No city-imposed impact fees shall be charged for an accessory dwelling unit that is less than 750 square feet in size.
b. For accessory dwelling units 750 square feet or larger, city-imposed impact fees shall be charged proportionately in relation to the square footage of the primary dwelling.

ITEM 17.2. ATTACHMENT 3
DRAFT Accessory Dwelling Unit Regulations XX-XX-26

c. Impact fees do not include any connection fee or capacity charge charged by a local agency, special district, or water corporation.

NL. Required Parking for Accessory Dwelling Units.

1. Number of Parking Spaces. Parking for accessory dwelling units shall be provided per the following:
a. One off-street parking space, covered or uncovered, is required for each attached and detached accessory dwelling unit or bedroom, whichever is less. These spaces may be provided as tandem parking on a driveway.
b. Notwithstanding any other section, no off-street parking is required for an attached or detached accessory dwelling unit if one or more of the following applies:
i. The accessory dwelling unit is located within one-half-mile walking distance of public transit, including transit stations and bus stations.
ii. When on-street parking permits are required by the city, but not offered to the occupant of the accessory dwelling unit.
iii. The accessory dwelling unit is part of the proposed or existing primary residence. iv. The accessory dwelling unit is located within an architecturally and historically significant historic district.
v. When there is a car share vehicle located within one block of the accessory dwelling unit. vi. When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this chapter.
c. Off-street parking shall be permitted in setback areas in locations determined by the city or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions.

2. When a garage, carport, or covered parking structure is demolished to allow for the construction of an accessory dwelling unit or for the conversion of a structure to an accessory dwelling unit it shall not be required to be replaced.

3. Guest parking spaces shall not be required for accessory dwelling units under any circumstances. [Ord. 17- 2021 § 3 (Exh. A); Ord. 4-2017 § 3 (Exh. B); Ord. 12-2011 § 3 (Exh. A); Ord. 27-2008 § 1 (Exh. A § 5.1.060)].

23.901.065 Junior accessory dwelling units.

Repealed by Ord. 1-2022. [Ord. 4-2017 § 3 (Exh. B)].

MEMORANDUM

City Council Staff Report - Page 1 of 3

ITEM 19.1.

DATE: September 21, 2026

TO: Honorable Mayor and Council Members

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

SUBJECT: A RESOLUTION AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS FOR AND ON BEHALF OF IMPROVEMENT AREA NO. 4 OF

THE CITY OF RANCHO CORDOVA THE RANCH COMMUNITY
FACILITIES DISTRICT NO. 2021-1, APPROVING AND DIRECTING

THE EXECUTION OF A FISCAL AGENT AGREEMENT, APPROVING

THE FORM OF PRELIMINARY OFFICIAL STATEMENT, APPROVING

SALE OF SUCH BONDS, AND APPROVING OTHER RELATED

DOCUMENTS AND ACTIONS

RECOMMENDATION

Adopt the Resolution.

RESULT OF RECOMMENDED ACTION

Adoption of the Resolution would authorize the sale of Special Tax Bonds (the “Bonds”) for and on behalf of Improvement Area No. 4 of the Ranch Community Facilities District No. 2021-1 for the purpose of providing money for the acquisition and construction of improvements, and the payment of certain development impact fees related to the project, within the Community Facilities District.

BACKGROUND

The Ranch Community Facilities District No. 2021-1 (“CFD 2021-1”) or (the “District”) was formed in 2021 to assist in the financing of the acquisition and construction of certain public facilities and payment of certain fees within a portion of The Ranch project, and at the time the City Council approved the necessity to incur bonded indebtedness in a maximum principal amount not to exceed $86,470,000. Through various City Council actions, Improvement Area Nos 1, 2, 3, 4 & 5 were designated within the District, with bonded indebtedness and annual appropriations limit of $20,350,000 for the territory within Improvement Area No. 1, $14,000,000 for the territory within Improvement Area No. 2, $16,000,000 for the territory within Improvement Area No. 3, and $22,250,000 for the territory within Improvement Area No. 4. Bonds have previously been issued for Improvement Area No. 1 ($12,975,000 in October 2022) and Improvement Area No. 2 ($10,880,000 in February 2025) and Improvement Area No. 3 ($12,980,000 in October 2025).

Based on the current status of the property within Improvement Area No. 4 of the District, the appraisal estimates the value of the property within Improvement Area No. 4 at approximately

City Council Staff Report - Page 2 of 3

$49.85 million. This has created an opportunity for the District to issue special tax bonds. Based on the expected bond par amount, the property value compared to bonded debt lien would exceed the required 4:1 value to lien requirement, which is consistent with prior special tax bonds issued within the city.

The proposed financing-related resolution approves: (i) the sale of the Bonds in an amount not to exceed $11.5 million; (ii) a Fiscal Agent Agreement; (iii) the Preliminary Official Statement; (iv) Bond Purchase Agreement, and authorizes related documents on behalf of the District.

Descriptions of these documents are as follows:
• Fiscal Agent Agreement: The Fiscal Agent Agreement allows U.S. Bank to act on behalf of the city to provide for the issuance of the Bonds, the disbursement of proceeds of the Bonds, the disposition of the special taxes securing the Bonds, and the administration and payment of the Bonds.
• Bond Purchase Agreement: The Bond Purchase Agreement is a legally binding document between the issuer (city on behalf of the District) and an underwriter (Piper Sandler & Co.) establishing the terms of the Bond sale wherein the city agrees to sell the Bonds to the underwriter. At the bond closing, the city delivers the Bonds to the underwriter, and the underwriter pays the city for them and simultaneously completes the sale to investors, all at the price and yield established during the Bond pricing call and reflected in the agreement at the time it is signed. Currently, the pricing is scheduled for the week of October 5th.
• Preliminary Official Statement: The preliminary Official Statement is a document that serves as the offering prospectus for the Bonds. It is the disclosure document relied on by Bond investors that details the underlying security for the Bonds and all associated investment risks. The Official Statement sets forth the security of the bonds and other important details about the District and is used by the underwriter to market the Bonds to ultimate investors.

Assuming the City Council approves this financing, staff will work with the Bond finance team to determine the final Bond sizing, and the preliminary Official Statement will be finalized and posted electronically for investors to review. Assuming the market remains stable, the City; NHA Advisors, LLC, the City’s Municipal Advisor; and Piper Sandler & Co., the bond underwriter, will hold a pre-pricing call on the week of October 5th to review bond market conditions and the preliminary interest rates, after which, the Bonds will be sold. An authorized officer will then execute, on behalf of the City, a Bond Purchase Agreement with Piper Sandler & Co., finalizing the bond interest rates and setting the delivery date, which is anticipated to occur the week of October 19th.

FISCAL IMPACT AND FUNDING SOURCE

There is no fiscal impact to the city's General Fund. The Special Tax Bonds are secured solely by the Special Taxes levied within the District and are not a debt of the city’s General Fund.

Costs of issuance are payable solely from Bond proceeds.

In accordance with Government Code 5852.1, the following information consists of estimates of certain costs and charges for the Bonds that have been provided by NHA Advisors, LLC, the City’s municipal advisor, which has been represented by such party to have been provided in good faith as of August 28, 2026: (1) estimated true interest cost of the Bonds: 5.65%; (2) estimated finance charge of the Bonds (sum of all fees and charges paid to third parties):
$605,000; (3) estimated amount of proceeds of the Bonds received by the City (net of finance

City Council Staff Report - Page 3 of 3

charges, reserves and capitalized interest, if any): $7,939,601; and (4) estimated total payment amount (sum total of all payments to pay debt service on the Bonds plus the finance charge not paid with proceeds of the Bonds) calculated to the final maturity of the Bonds: $20,168,906.

ATTACHMENT(S)

1. Resolution

2. Fiscal Agent Agreement

3. Preliminary Official Statement

4. Bond Purchase Agreement

ITEM 19.1. ATTACHMENT 1
Resolution No. XX-2026 Page 1 of 4

CITY OF RANCHO CORDOVA

RESOLUTION NO. XX-2026

A RESOLUTION AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS FOR AND ON BEHALF OF IMPROVEMENT AREA NO. 4 OF THE CITY OF RANCHO CORDOVA THE RANCH COMMUNITY FACILITIES DISTRICT NO. 2021-1, APPROVING

AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT, APPROVING THE

FORM OF PRELIMINARY OFFICIAL STATEMENT, APPROVING SALE OF SUCH BONDS,

AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS

WHEREAS, the City Council has conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to (i) establish the City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 (the “CFD”), (ii) designate within the CFD, “Improvement Area No. 1 of the City of Rancho Cordova The Ranch Community Facilities District No. 2021-1” (“Improvement Area No. 1”), and (iii) establish a “City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 (Future Annexation Area)” for the CFD (the “Future Annexation Area”); and

WHEREAS, under the Act, the City Council is authorized to issue bonded indebtedness secured by special taxes levied within the CFD and improvement areas therein for the purpose of providing moneys for the construction and acquisition of improvements, and the payment of certain fees, authorized for the CFD; and

WHEREAS, on December 6, 2021, the City Council, as legislative body of the CFD, established the bonded indebtedness limit for the CFD in the principal amount of not to exceed $86,470,000 (excluding bonds described in Section 53364.2(e) of the Act), initially allocated as follows: (i) for Improvement Area No. 1, $20,350,000 and (ii) for land within the Future Annexation Area, $66,120,000; and

WHEREAS, in October 2022 the city issued bonds for Improvement Area No. 1 of the District, in March 2025 the city issued bonds for Improvement Area No. 2 of the District and in October 2025 the city issued bonds for Improvement Area No. 3 of the District; and

WHEREAS, this Council authorized land to be annexed to the District from the Future Annexation Area by unanimous consent of the owner(s) of land proposed to be annexed, and pursuant to a Unanimous Consent, Waiver and Vote of Sole Landowner, dated July 22, 2025 land designated as Improvement Area No. 4 of the District (“Improvement Area No. 4”) was annexed to the District and bonded indebtedness for Improvement Area No. 4 was authorized in the amount not to exceed $22,250,000 (the “Authorization”), and the city now desires to issue the first series of special tax bonds under the Authorization; and

WHEREAS, there has been submitted to the City Council a Fiscal Agent Agreement, between the city and U.S. Bank Trust Company, National Association, as fiscal agent (the “Fiscal Agent Agreement”), providing for the issuance of a first series of special tax bonds of the city for Improvement Area No. 4, designated as the “City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 Improvement Area No. 4 Special Tax Bonds Series 2026” (the “Bonds”), and the City Council, with the aid of city staff, has reviewed the Fiscal Agent Agreement and found it to be in proper order for the purpose intended, and now desires to approve the Fiscal Agent Agreement and the issuance of the Bonds; and

ITEM 19.1. ATTACHMENT 1
Resolution No. XX-2026 Page 2 of 4

WHEREAS, the city proposes to sell the Bonds to Piper Sandler & Co., as underwriter (the “Underwriter”), pursuant to the terms of a Bond Purchase Agreement (the “Bond Purchase Agreement”) by and between the city and the Underwriter, and the Underwriter proposes to offer the Bonds to the investing public by means of a Preliminary Official Statement (the “Preliminary Official Statement”); and

WHEREAS, the information required to be obtained and disclosed with respect to the Bonds in accordance with Government Code Section 5852.1 is set forth in the staff report accompanying this Resolution; and

WHEREAS, all conditions, things and acts required to exist and to have been performed precedent to and with respect to the issuance of the Bonds and the levy of the special taxes securing the Bonds, as contemplated by this resolution and the Fiscal Agent Agreement, have happened and exist as required by the laws of the State of California, including the Act, and the actions to be performed in due time for the issuance of the Bonds conform in form and manner to the applicable laws of the State of California, including the Act.

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

SECTION 1. Findings. This Council finds and determines that (i) it is prudent in the management and development of land in the city and the CFD to issue the Bonds to provide money for the construction and acquisition of improvements, and the payment of certain fees, authorized for the CFD, and (ii) the Bonds, the CFD and Improvement Area No. 4 of the CFD are substantially in compliance with the city’s Statement of Policies and Procedures for Special Assessment and Community Facilities District Debt Financing Programs, with any deviations hereby approved.

SECTION 2. Law Applicable. For the purposes of these proceedings in and for the CFD, the Act shall be the authority for the issuance of the Bonds.

SECTION 3. Bonds Authorized. Pursuant to the Act, this Resolution and the Fiscal Agent Agreement, the Bonds, in an aggregate principal amount not to exceed $11,500,000, are hereby authorized to be issued. The Bonds shall be executed in the form set forth in, and otherwise as provided in, the Fiscal Agent Agreement. The Bonds shall be dated and executed in the forms, be in the principal amounts, denominations, mature, be payable at the place and in the priorities and bear interest at the rates as set forth in and otherwise as provided in the Fiscal Agent Agreement.

The Bonds shall not be issued unless the value of the real property within Improvement Area No. 4 subject to the special tax to pay debt service on the Bonds, based on assessed values and/or an appraisal by an independent appraiser hired by the city for the purpose of determining such value, is at least four times the proposed principal amount of the Bonds proposed to be issued and secured by a special tax levied pursuant to the Act on property within Improvement Area No. 4.

SECTION 4. Fiscal Agent Agreement. The Fiscal Agent Agreement in substantially the form on file with the City Clerk is hereby approved. The City Manager, Assistant City Manager or such other person or persons as any of them may designate (each an “Authorized Officer”) are hereby separately authorized and directed to execute and deliver the Fiscal Agent

ITEM 19.1. ATTACHMENT 1
Resolution No. XX-2026 Page 3 of 4

Agreement, with such additions thereto or changes therein as are approved by the Authorized Officer upon consultation with the city’s bond counsel, and including but not limited to such additions or changes as are necessary or advisable to permit the timely issuance, sale and delivery of the Bonds; provided, however, that no additions or changes shall authorize the issuance of an aggregate principal amount of Bonds which would cause bonds issued for Improvement Area No. 4 to be in excess of the Authorization.

The date, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in the Fiscal Agent Agreement, as finally approved and executed by an Authorized Officer. The terms and provisions of the Fiscal Agent Agreement, as finally executed, are incorporated herein by reference as if fully set forth herein. The approval of such additions or changes shall be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement by an Authorized Officer.

SECTION 5. Bond Preparation and Delivery; Sale of the Bonds. The Bonds, when executed, shall be delivered to the fiscal agent for authentication. The fiscal agent is hereby requested and directed to authenticate the Bonds by executing the fiscal agent’s certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to the Underwriter in accordance with written instructions executed on behalf of the city by the Mayor and/or an Authorized Officer, which instructions are hereby authorized, for and in the name and on behalf of the city, to be delivered.

SECTION 6. Covenant to Foreclose. The city hereby covenants, for the benefit of the owners of the Bonds, to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of debt service on the Bonds, said foreclosure action to be commenced and pursued as more completely set forth in the Fiscal Agent Agreement.

SECTION 7. Approval of Preliminary Official Statement. The City Council hereby approves the Preliminary Official Statement in substantially the form presented to the City Council at this meeting. The Authorized Officers are each hereby authorized and directed to execute a final Official Statement (the “Official Statement”), for and in the name and on behalf of the city, in such form, together with any additions thereto or changes therein deemed necessary or advisable by the Authorized Officer executing such document upon consultation with the city’s bond counsel. The City Council hereby authorizes and directs the Underwriter to distribute copies of the Preliminary Official Statement to persons who may be interested in the purchase of the Bonds and to deliver copies of the Official Statement to all actual purchasers of the Bonds. The City Council hereby authorizes the delivery of the Preliminary Official Statement and the Official Statement. The City Council hereby authorizes and directs an Authorized Officer, on behalf of the city, to deem “final,” pursuant to Rule 15c2-12 of the Securities Exchange Act of 1934, the Preliminary Official Statement prior to its distribution to prospective purchasers of the Bonds.

SECTION 8. Approval of Purchase Agreement. The City Council hereby approves the Bond Purchase Agreement; provided, however, that the aggregate principal amount of Bonds shall not exceed $11,500,000 or result in an Underwriter’s discount in excess of 1.65%, or a true interest cost in excess of 6.95%. Subject to the foregoing parameters, an Authorized Officer is hereby authorized and directed to execute the Bond Purchase Agreement in substantially the form on file with the City Clerk, together with such changes and additions thereto deemed advisable by the Authorized Officer executing the same. The City Council hereby finds and

ITEM 19.1. ATTACHMENT 1
Resolution No. XX-2026 Page 4 of 4

determines that the sale of the Bonds at negotiated sale as contemplated by the Bond Purchase Agreement will result in a lower overall cost.

SECTION 9. Actions Authorized. All actions heretofore taken by the officers, employees and agents of the city with respect to the establishment of the CFD and the designation of Improvement Area No. 4 therein, and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the Authorized Officers are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with this Resolution, and any certificate, agreement, and other document described in the documents herein approved. All actions to be taken by an Authorized Officer as specified herein, may be taken by the Authorized Officer or any designee, with the same force and effect as if taken by such Authorized Officer.

SECTION 10. Effectiveness. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED by the City Council of the City of Rancho Cordova on the 21st day of September 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: __________________________________
Garrett Gatewood, Mayor

Stacy Leitner, CMC
City Clerk

Jones Hall Draft 9.10.26
FISCAL

AGENT AGREEMENT
by and between

CITY OF RANCHO CORDOVA
and
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
as Fiscal Agent
Dated as of October 1, 2026
Relating to:
$_____________
Improvement Area No. 4 of
City of Rancho Cordova
The Ranch Community Facilities District No. 2021-1
Special Tax Bonds Series 2026
ITEM 19.1.

ATTACHMENT 2

i

TABLE OF CONTENTS

ARTICLE I

STATUTORY AUTHORITY AND DEFINITIONS
Section 1.01. Authority for this Agreement ............................................................................................ 3 Section 1.02. Agreement for Benefit of Bondowners ............................................................................ 3 Section 1.03. Definitions ........................................................................................................................ 3

ARTICLE II

THE BONDS
Section 2.01. Principal Amount; Designation ...................................................................................... 12 Section 2.02. Terms of 2026 Bonds .................................................................................................... 12 Section 2.03. Redemption ................................................................................................................... 13 Section 2.04. Form of Bonds ............................................................................................................... 16 Section 2.05. Execution of Bonds ....................................................................................................... 16 Section 2.06. Transfer of Bonds .......................................................................................................... 16 Section 2.07. Exchange of Bonds ....................................................................................................... 16 Section 2.08. Bond Register ................................................................................................................ 17 Section 2.09. Temporary Bonds .......................................................................................................... 17 Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen .................................................................. 17 Section 2.11. Limited Obligation .......................................................................................................... 17 Section 2.12. Book-Entry Only System ............................................................................................... 18 Section 2.13. No Acceleration ............................................................................................................. 19

ARTICLE III

ISSUANCE OF BONDS
Section 3.01. Issuance and Delivery of Bonds .................................................................................... 20 Section 3.02. Application of Proceeds of Sale of Bonds and Collection of Special Tax ...................... 20 Section 3.03. Special Tax Fund .......................................................................................................... 20 Section 3.04. Improvement Fund ........................................................................................................ 21 Section 3.05. Costs of Issuance Fund ................................................................................................. 22

ARTICLE IV
SPECIAL TAX REVENUES; BOND FUND AND RESERVE FUND
Section 4.01. Pledge of Special Tax Revenues and Other Amounts. ................................................. 23 Section 4.02. Bond Fund ..................................................................................................................... 23 Section 4.03. Reserve Fund ................................................................................................................ 24

ARTICLE V

OTHER COVENANTS OF THE CITY
Section 5.01. Punctual Payment ......................................................................................................... 27 Section 5.02. Limited Obligation .......................................................................................................... 27 Section 5.03. Extension of Time for Payment ..................................................................................... 27 Section 5.04. Against Encumbrances ................................................................................................. 27 Section 5.05. Books and Accounts ...................................................................................................... 27 Section 5.06. Protection of Security and Rights of Owners ................................................................. 27 Section 5.07. Compliance with Law; Completion of Project ................................................................ 28 Section 5.08. Private Activity Bond Limitation ..................................................................................... 28 Section 5.09. Federal Guarantee Prohibition ...................................................................................... 28 Section 5.10. Collection of Special Tax Revenues .............................................................................. 28 Section 5.11. Further Assurances ....................................................................................................... 28 Section 5.12. No Arbitrage .................................................................................................................. 29 Section 5.13. Maintenance of Tax-Exemption ..................................................................................... 29 Section 5.14. Annual State Reports .................................................................................................... 29 Section 5.15. Covenant to Foreclose .................................................................................................. 29 Section 5.16. Continuing Disclosure to Owners .................................................................................. 30 ITEM 19.1.

ATTACHMENT 2

ii
Section 5.17. Additional Bonds ........................................................................................................... 30 Section 5.18. Yield of the Bonds ......................................................................................................... 32

ARTICLE VI
INVESTMENTS; DISPOSITION OF INVESTMENT PROCEEDS;

LIABILITY OF THE CITY
Section 6.01. Deposit and Investment of Moneys in Funds ................................................................ 33 Section 6.02. Rebate of Excess Investment Earnings to the United States ........................................ 34 Section 6.03. Limited Obligation .......................................................................................................... 34

ARTICLE VII

THE FISCAL AGENT
Section 7.01. Appointment of Fiscal Agent ......................................................................................... 35 Section 7.02. Liability of Fiscal Agent .................................................................................................. 35 Section 7.03. Information .................................................................................................................... 36 Section 7.04. Notice to Fiscal Agent ................................................................................................... 36 Section 7.05. Compensation, Indemnification ..................................................................................... 37

ARTICLE VIII

MODIFICATION OR AMENDMENT

OF THIS AGREEMENT
Section 8.01. Amendments Permitted ................................................................................................. 38 Section 8.02. Owners’ Meetings .......................................................................................................... 38 Section 8.03. Procedure for Amendment with Written Consent of Owners ......................................... 39 Section 8.04. Disqualified Bonds ......................................................................................................... 39 Section 8.05. Effect of Supplemental Agreement ................................................................................ 39 Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments ............................. 40 Section 8.07. Amendatory Endorsement of Bonds ............................................................................. 40 Section 8.08. Opinion of Counsel Regarding Supplemental Agreement ............................................. 40

ARTICLE IX

MISCELLANEOUS
Section 9.01. Benefits of Agreement Limited to Parties ...................................................................... 41 Section 9.02. Successor is Deemed Included in All References to Predecessor ............................... 41 Section 9.03. Discharge of Agreement ................................................................................................ 41 Section 9.04. Execution of Documents and Proof of Ownership by Owners ...................................... 42 Section 9.05. Waiver of Personal Liability ........................................................................................... 42 Section 9.06. Notices to and Demands on City and Fiscal Agent ....................................................... 42 Section 9.07. Partial Invalidity ............................................................................................................. 43 Section 9.08. Unclaimed Moneys ........................................................................................................ 43 Section 9.09. Applicable Law .............................................................................................................. 43 Section 9.10. Conflict with Act ............................................................................................................. 43 Section 9.11. Conclusive Evidence of Regularity ................................................................................ 43 Section 9.12. Payment on Business Day ............................................................................................ 43 Section 9.13. Counterparts .................................................................................................................. 43 Section 9.14. U.S.A. Patriot Act .......................................................................................................... 43

EXHIBIT A FORM OF BOND
ITEM 19.1.

ATTACHMENT 2

FISCAL AGENT AGREEMENT
THIS FISCAL AGENT AGREEMENT (the “Agreement”) is made and entered into and dated as of October 1, 2026, by and between the City of Rancho Cordova, California, a municipal corporation and public body, corporate and politic, organized and existing under and by virtue of the Constitution and laws of the State of California (the “City”) for and on behalf of th e City of Rancho Cordova The Ranch Community Facilities District No. 2021 -1 (the “District”), and U.S.

Bank Trust Company, National Association, a national banking association duly organized and existing under the laws of the United States of America with a corporate trust office located in Los Angeles, California, as fiscal agent (the “Fiscal Agent”).

W I T N E S S E T H :

WHEREAS, the City Council has conducted proceedings under and pursuant to the Mello- Roos Community Facilities Act of 1982, as amended (the “Act”), to (i) establish the District (ii) designate within the District, “Improvement Area No. 1 of the City of Rancho Cordova The Ranch Community Facilities District No. 2021-1” (“Improvement Area No. 1”), and (iii) establish a “City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 (Future Annexation Area)” for the District (the “Future Annexation Area”); and WHEREAS, under the Act, the City Council is authorized to issue bonded indebtedness secured by special taxes levied within the District and improvement areas therein for the purpose of providing moneys for the construction and acquisition of improvements, and the payment of certain fees, authorized for the District; and
WHEREAS, on December 6, 2021, the City Council, as legislative body of the District, established the bonded indebtedness limit for the District in the principal amount of not to exceed $86,470,000 (excluding bonds described in Section 53364.2(e) of the Act), initially allocated as follows: (i) for Improvement Area No. 1, $20,350,000 and (ii) for land within the Future Annexation Area, $66,120,000; and
WHEREAS, this Council has also authorized land to be annexed to the District from the Future Annexation Area by unanimous consent of the owner(s) of land proposed to be annexed, and pursuant to Resolution No. _______ adopted by this Council on _________, 2026 and the Unanimous Consent, Waiver and Vote of Sole Landowner, dated July 22, 2025, land designated as Improvement Area No. 4 of City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 (“Improvement Area No. 4”) was annexed to the District and bonded indebtedness for Improvement Area No. 4 was authorized in the amount not to exceed $ 22,250,000 (the “Authorization”); and
WHEREAS, under the provisions of the Act, on ___________, 2026, the City Council of the City adopted its Resolution No. ________ (the “Resolution”), which resolution authorized the issuance of its Improvement Area No. 4 of City of Rancho Cordova The Ranch Community Facilities District No. 2021 -1 Special Tax Bonds S eries 2026 to provide moneys for the construction and acquisition of improvements for the District and provided that said issuance would be in accordance with the Act and this Agreement, and authorized the execution hereof; WHEREAS, it is in the public interest and for the benefit of the City, the District, the persons responsible for the payment of special taxes and the Owners of the Bonds that the City enter into this Agreement to provide for the issuance of the Bonds, the disbursement of proceeds ITEM 19.1.

ATTACHMENT 2

2 of the Bonds, the disposition of the special taxes securing the Bonds authorized to be issued hereunder and the administration and payment of the Bonds; and

WHEREAS, the City has determined that all things necessary to cause the Bonds, when authenticated by the City for the District and issued as in the Act, the Resolution and this Agreement provided to be legal, valid and binding and special obligations of the City for the District in accordance with their terms, and all things necessary to cause the creation, authorization, execution and delivery of this Agreement and the creation, authorization, execution and issuance of the Bonds, subject to the terms hereof, have in all respects been duly authorized.

NOW, THEREFORE, in consideration of the covenants and provisions herein set forth and for other valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:

ITEM 19.1.

ATTACHMENT 2

3 ARTICLE I

STATUTORY AUTHORITY AND DEFINITIONS

Section 1.01. Authority for this Agreement. This Agreement is entered into pursuant to the provisions of the Act and the Resolution.

Section 1.02. Agreement for Benefit of Bondowners . The provisions, covenants and agreements herein set forth to be performed by or on behalf of the City shall be for the equal benefit, protection and security of the Owners. All of the Bonds, without regard to the time or times of their issuance or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided in or permitted by this Agreement. The Fiscal Agent may become the Owner of any of the Bonds in its own or an y other capacity with the same rights it would have if it were not Fiscal Agent.

Section 1.03. Definitions . Unless the context otherwise requires, the terms defined in this Section 1.03 shall, for all purposes of this Agreement, of any Supplemental Agreement, and of any certificate, opinion or other document herein mentioned, have the meanings herein specified. All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement, and the words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof.

“Acquisition Agreement” means the Funding, Construction and Acquisition Agreement, dated as of October 1, 2022, by and between the City and K. Hovnanian at Jaeger Ranch, LLC, a California limited liability company (the “Developer”), and any amendments thereto.

“Act” means the Mello -Roos Community Facilities Act of 1982, as amended, being Sections 53311 et seq. of the California Government Code.

“Additional Bonds” means any series of bonds other than the 2026 Bonds issued pursuant to Section 5.17 hereof.

“Administrative Expense Priority” means (i) for fiscal year 2027-28, $30,000, and (ii) for each subsequent year, an amount equal to the preceding fiscal year’s Administrative Expense Priority plus an additional 2% of such amount.

“Administrative Expenses” means any or all of the following: the fees and expenses of the Fiscal Agent (including any fees or expenses of its counsel), the expenses of the City in carrying out its duties hereunder (including, but not limited to, the levying and collection of the Special Taxes, and the foreclosure of the liens of delinquent Special Taxes) including the fees and expenses of its counsel, an allocable share of the salaries of City staff directly related thereto and a proportionate amount of City general administrative overhead related thereto, any amounts paid by the City from its general funds pursuant to Section 6.02, and all other costs and expenses of the City or the Fiscal Agent incurred in connection with the issuance and administration of the Bonds and/or the discharge of their respective duties hereunder (including, but not limited to, the calculation of the levy of the Special Taxes, foreclosures with respect to delinquent taxes, and the calculation of amounts subject to rebate to the United States) and, in the case of the City, in any way related to the administration of the District and Improvement Area No. 4. Administrative Expenses shall include any such expenses incurred in prior years but not yet paid, and any advances of funds by the City under Section 6.02 hereof.

ITEM 19.1.

ATTACHMENT 2

4 “Agreement” means this Fiscal Agent Agreement, as it may be amended or supplemented from time to time by any Supplemental Agreement.

“Annual Debt Service” means, for each Bond Year, the sum of (i) the interest due on the Outstanding Bonds in such Bond Year, assuming that the Outstanding Bonds are retired as scheduled, and (ii) the principal amount of the Outstanding Bonds, including any mandatory sinking fund payments, due in such Bond Year.

“Assistant City Manager ” means the Assistant City Manager , including any acting or interim Assistant City Manager , of the City, or if there is no Assistant City Manager , the person serving in a similar capacity or responsible for administration of the City’s bonds, or a designee of such person.

“Authorization” means a principal amount of Bonds for Improvement Area No. 4 not to exceed $22,250,000 (excluding bonds described in Section 53364.2(e) of the Act).

“Authorized Officer” means the City Manager, Deputy City Manager, Assistant City Manager (including any interim official) or any other officer or employee authorized by the City Council of the City or by an Authorized Officer to undertake the action referenced in this Agreement as required to be undertaken by an Authorized Officer.

“Bond Counsel” means any attorney or firm of attorneys acceptable to the City and nationally recognized for expertise in rendering opinions as to the legality and tax-exempt status of securities issued by public entities.

“Bond Fund” means the fund by that name established pursuant to Section 4.02(A) hereof.

“Bond Year” means each twelve -month period beginning on September 2 in any year and extending to the next succeeding September 1, both dates inclusive; except that the first Bond Year shall begin on the Closing Date and end on September 1, 2027.

“Bonds” means (i) the 2026 Bonds, and (ii) any Additional Bonds at any time Outstanding under this Agreement and any Supplemental Agreement.

“Business Day” means any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in the state in which the Principal Office of the Fiscal Agent is located are authorized or obligated by law or executive order to be closed.

“Capitalized Interest Account” means the fund by that name established pursuant to Section 4.02(A) hereof.

“CDIAC” means the California Debt and Investment Advisory Commission of the office of the State Treasurer of the State of California or any successor agency or bureau thereto.

“City” means the City of Rancho Cordova, California, and any successor thereto.

“Closing Date” means the date upon which there is a physical delivery of the Bonds in exchange for the amount representing the purchase price of the Bonds by the Original Purchaser.

ITEM 19.1.

ATTACHMENT 2

5 “C
ode” means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the Bonds, together with applicable temporary and final regulations promulgated, and applicable official public guidance published, under the Code. “Continuing Disclosure Certificate” means the Continuing Disclosure Certificate, dated as of _________, 2026, by and among the City and Goodwin Consulting Group, Inc., in its capacity as Dissemination Agent, as originally executed and as it may be amended from time to time in accordance with the terms thereof.
“Costs of Issuance” means items of expense payable or reimbursable directly or indirectly by the City and related to the authorization, sale and issuance of the Bonds, which items of expense shall include, but not be limited to, printing costs, costs of reproducing and binding documents, closing costs, filing and recording fees, initial fees, expenses and charges of the Fiscal Agent including its first annual administration fee, expenses incurred by the City in connection with the issuance of the Bonds, financial advisor fees, Bond (underwriter’s) discount or underwriting fee, legal fees and charges, including bond counsel, charges for execution, transportation and safekeeping of the Bonds and other costs, charges and fees in connection with the foregoing.
“Costs of Issuance Fund” means the fund by that name established pursuant to Section 3.05(A) hereof.
“DTC” means the Depository Trust Company, and its successors and assigns. “Debt Service” means the scheduled amount of interest and amortization of principal payable on the Bonds during the period of computation, excluding amounts scheduled during such period which relate to principal which has been retired before the beginning of such period. “Debt Service Account” means the account of the Special Tax Fund by that name established by Section 3.03(A) hereof.
“Depository” means (a) initially, DTC, and (b) any other Securities Depository acting as Depository pursuant to Section 2.12.
“District” means the City of Rancho Cordova The Ranch Community Facilities District No. 2021-1, established pursuant to the Resolution of Formation. “Fair Market Value ” means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm’s length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of Section 1273 of the Code) and, otherwise, the term “Fair Market Value” means the acquisition price in a bona fide arm’s length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (ii) the inv estment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security —State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or ITEM 19.1.

ATTACHMENT 2

6 (iv) the investment is the Local Agency Investment Fund of the State of California, but only if at all times during which the investment is held its yield is reasonably expected to be equal to or greater than the yield on a reasonably comparable direct obligation of the United States.

“Federal Securities” means any of the following which are non -callable and which at the time of investment are legal investments under the laws of the State of California for funds held by the Fiscal Agent (the Fiscal Agent entitled to rely upon investment direction from the City as a certification that such investment constitutes a legal investment).

(i) Direct general obligations of the United States of America (including obligations issued or held in book-entry form on the books of the United States Department of the Treasury) and obligations, the payment of principal of and interest on which are directly or indirectly guaranteed by the United States of America, including, without limitation, such of the foregoing which are commonly referred to as “stripped” obligations and coupons; or

(ii) Any of the following obligations of the following agencies of the United States of America: (i) direct obligations of the Export -Import Bank, (ii) certificates of beneficial ownership issued by the Farmers Home Administration, (iii) participation certificates issued by the General Services Administration, (iv) mortgage-backed bonds or pass-through obligations issued and guaranteed by the Government National Mortgage Association, (v) project notes issued by the United States Department of Housing and Urban Development, and (vi) public housing notes and bonds guaranteed by the United States of America.

“Fiscal Agent” means the Fiscal Agent appointed by the City and acting as an independent fiscal agent with the duties and powers herein provided, its successors and assigns, and any other corporation or association which may at any time be substituted in its place, as provided in Section 7.01.

“Fiscal Year” means the twelve-month period extending from July 1 in a calendar year to June 30 of the succeeding year, both dates inclusive.

“Improvement Area No. 4 ” means Improvement Area No. 4 of City of Rancho Cordova The Ranch Community Facilities District No. 2021-1.

“Improvement Fund” means the fund by that name established pursuant to Section 3.04(A) hereof.

“Interest Payment Dates” means March 1 and September 1 of each year, commencing March 1, 2027.

“Maximum Annual Debt Service” means the largest Annual Debt Service for any Bond Year after the calculation is made through the final maturity date of any Outstanding Bonds.

“Officer’s Certificate” means a written certificate of the City signed by an Authorized Officer of the City.

“Ordinance” means any ordinance of the City levying the Special Taxes.

“Original Purchaser” means the first purchaser of the Bonds from the City.

ITEM 19.1.

ATTACHMENT 2

7 “O
utstanding,” when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 8.04) all Bonds except (i) Bonds theretofore canceled by the Fiscal Agent or surrendered to the Fiscal Agent for cancellation; (ii) Bonds paid or deem ed to have been paid within the meaning of Section 9.03; and (iii) Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed, issued and delivered by the City pursuant to the Agreement or any Supplemental Agreement. “Owner” or “Bondowner” means any person who shall be the registered owner of any Outstanding Bond.
“Participating Underwriter” shall have the meaning ascribed thereto in the Continuing Disclosure Certificate.
“Permitted Investments” means any of the following, to the extent that they are lawful investments for City funds at the time of investment, and are acquired at Fair Market Value (the Fiscal Agent entitled to rely upon investment direction from the City as a certification that s uch investment constitutes a legal investment):
(i) Federal Securities;
(ii) any of following obligations of federal agencies not guaranteed by t he
Un
ited States of America: (a) debentures issued by the Federal Housing Administration; (b)
participation certificates or senior debt obligations of the Federal Home Loan Mortgage Corporation or Farm Credit Banks (consisting of Federal Land Banks, Federal Intermediate Credit Banks or Banks for Cooperatives); (c) bonds or debentures of the Federal Home Loan Bank Board established under the Federal Home Loan Bank Act, bonds of any federal home loan bank established under said act and stocks, bonds, debentures, participations and other obligations of or issued by the Federal National Mortgage Association, the Student Loan Marketing Association, the Government National Mortgage Association and the Federal Home Loan Mortgage Corporation; and
bonds,
notes or other obligations issued or assumed by the International Bank for Reconstruction and Development;
(iii) interest-bearing demand or time deposits (including certificates of deposit) in federal or State of California chartered banks (including the Fiscal Agent), provided that (a) in the case of a savings and loan association, such demand or time deposits shall be fully insured by the Federal Deposit Insurance Corporation, or the unsecured obligations of such savings and loan association shall be rated in one of the top two rating categories by a nationally recognized rating service, and (b) in the case of a bank, such demand or time deposits shall be fully insured by the Federal Deposit Insurance Corporation, or the unsecured obligations of such bank (or the unsecured obligations of the parent bank holding company of which such bank is the lead bank) shall be rated in one of the top two rating categories by a nationally recognized rating service;
(iv) repurchase agreements with a registered broker/dealer subject to the Securities Investors Protection Corporation Liquidation in the event of insolvency, or any commercial bank provided that: (a) the unsecured obligations of such bank shall be rated in one of the top two rating categories by a nationally recognized rating service, or such bank shall be the lead bank of a banking holding company whose unsecured obligations ITEM 19.1.

ATTACHMENT 2

8 are rated in one of the top two rating categories by a nationally recognized rating service; (b) the most recent reported combined capital, surplus an undivided profits of such bank shall be not less than $100 million; (c) the repurchase obligation under any such repurchase obligation shall be required to be performed in not more than 30 days; (d) the entity holding such securities as described in clause (c) shall have a pledged first security interest therein for the benefit of the Fiscal Agent under the C alifornia Commercial Code or pursuant to the book -entry procedures described by 31 C.F.R. 306.1 et seq. or 31 C.F.R. 350.0 et seq. and are rated in one of the top two rating categories by a nationally recognized rating service;

(v) bankers acceptances endorsed and guaranteed by banks described in clause (iv) above;

(vi) obligations, the interest on which is exempt from federal income taxation under Section 103 of the Code and which are rated in the one of the top two rating categories by a nationally recognized rating service;

(vii) money market funds which invest solely in Federal Securities or in obligations described in the preceding clause (ii) of this definition, or money market funds which are rated in the highest rating category by Standard & Poor’s Ratings Services or Moody’s Investor Service, including funds which are managed or maintained by the Fiscal Agent;

(viii) units of a taxable government money market portfolio comprised solely of obligations listed in (i) and (iv) above;

(ix) any investment which is a legal investment for proceeds of the Bonds at the time of the execution of such agreement, and which investment is made pursuant to an agreement between the City or the Fiscal Agent or any successor Fiscal Agent and a financial institution or governmental body whose long term debt obligations are rated in one of the top two rating categories by a nationally recognized rating service;

(x) commercial paper of “prime” quality of the highest ranking or of the highest letter and numerical rating as provided for by Moody’s Investors Service, or Standard and Poor’s Corporation, of issuing corporations that are organized and operating within the United States and having total assets in excess of $500,000,000, and having a rating of at least “AA” (without regard to qualifier) for the issuer’s debentures, other than commercial paper, as provided for by Moody’s Investors Service or Standard and Poor’s Corporation, and provided that purchases of eligible commercial paper may not exceed 180 days maturity nor represent more than 10 percent of the outstanding paper of an issuing corporation;

(xi) any general obligation of a bank or insurance company whose long term debt obligations are rated in one of the two highest rating categories of a national rating service;

(xii) shares in a common law trust established pursuant to Title 1, Division 7, Charter 5 of the Government Code of the State which invests exclusively in investments permitted by Section 53635 of Title 5, Division 2, Chapter 4 of the Government Code of the State, as it may be amended;

ITEM 19.1.

ATTACHMENT 2

9 (xiii) shares in the California Asset Management Program;

(xiv) the Local Agency Investment Fund established pursuant to Section 16429.1 of the Government Code of the State of California, provided, however, that the Fiscal Agent will be permitted to make investments and withdrawals in its own name and the Fiscal Agent may restrict investments in the such fund if necessary to keep moneys available for the purposes of this Fiscal Agent Agreement; or

(xv) any other lawful investment for City funds.

“Prepayment Account” means the account of the Bond Fund by that name established by Section 4.02(A) hereof.

“Principal Office” means the corporate trust office of the Fiscal Agent set forth in Section 9.06, or such other or additional offices as may be designated by the Fiscal Agent.

“Project” means the acquisitions and improvements described in the Resolution of Formation and pursuant to the Acquisition Agreement and any joint community facilities agreements.

“Qualified Reserve Fund Credit Instrument” means an irrevocable standby or direct -pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Fiscal Agent pursuant to Section 4.03, provided that all of the following requirements are met at the time of its issuance: (i) the long-term credit rating of such bank or insurance company is rated in at least the “AA” category (without regard to qualifier) by S&P or Moody’s; (ii) such letter of credit or surety bond has a term of at least twelve (12) months; (c) such letter of credit or surety bond has a stated amount at least equal to the portion of the Reserve Requirement with respect to which funds are proposed to be released pursuant to Section 4.03; and (d) the Fiscal Agent is authorized pursuant to the terms of such le tter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Bond Fund for the purpose of making payments required pursuant to Section 4.03.

“Rate and Method” means the Rate and Method of Apportionment of Special Tax for Improvement Area No. 4, as initially approved and as may be amended.

“Record Date” means the 15th day of the month next preceding the month of the applicable Interest Payment Date whether or not such day is a Business Day.

“Regulations” means temporary and permanent regulations promulgated under the Code.

“Reserve Fund” means the fund by that name established pursuant to Section 4.03(A) hereof.

“Reserve Requirement” means the least of (i) 125% of the average Annual Debt Service on the 2026 Bonds; (ii) Maximum Annual Debt Service on the 2026 Bonds; and (iii) 10% of the original principal amount of the 2026 Bonds (or, if the 2026 Bonds have more than a de minimis amount of original issue discount or premium, 10% of the issue price of of the 2026 Bonds); provided, that –

(a) in no event shall the City be obligated to deposit an amount in the Reserve Fund in excess of the amount permitted by the applicable provisions of the Code to be so ITEM 19.1.

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10 deposited from the proceeds of tax -exempt bonds without having to restrict the yield of any investment purchased with any portion of such deposit and, if the amount of any such deposit is so limited, the Reserve Requirement shall be only the amount of such deposit as permitted by the Code;

(b) the City may meet all or a portion of the Reserve Requirement with respect to the Bonds by depositing a Qualified Reserve Fund Credit Instrument in accordance with the Fiscal Agent Agreement; and

(c) the Reserve Requirement shall be set at the time of issuance of the Bonds and shall not increase thereafter but may decrease.

“Resolution” means Resolution No. _________, adopted by the City Council of the City on __________, 2026, which resolution authorized the issuance of the Bonds.

“Resolution of Formation” means Resolution No. 195-2021, adopted by the City Council of the City on December 6, 2021, establishing the District, designating Improvement Area No. 1 as an initial improvement area therein, and establishing the Future Annexation Area.

“Securities Depositories” means The Depository Trust Company, and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such other securities depositories as the City may designate in an Officer’s Certificate delivered to the Fiscal Agent.

“Series” means any series of bonds authorized for Improvement Area No. 4 pursuant to this Fiscal Agent Agreement or any Supplemental Agreement.

“Special Tax Fund” means the fund by that name established by Section 3.03(A) hereof.

“Special Taxes” means the “Special Tax” as defined in the Rate and Method, levied within Improvement Area No. 4 pursuant to the Act, the Ordinance and this Agreement.

“Special Tax Revenues” means the proceeds of the Special Taxes annually received by the City, including all scheduled payments, prepayments and delinquent payments thereof, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes, net of the Administrative Expense Priority and excluding any penalties and extraordinary Administrative Expenses collected in connection with any such foreclosure.

“Supplemental Agreement” means an agreement which is amendatory of or supplemental to this Agreement, but only if and to the extent that such agreement is specifically authorized hereunder.

“Surplus Account” means the account of the Special Tax Fund by that name established by Section 3.03(A) hereof.

“2026 Bonds” means the Improvement Area No. 4 of City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 Special Tax Bonds Series 2026.

“2026 Costs of Issuance Fund ” means the fund by that name established pursuant to Section 3.05(A) hereof.

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11 “2026 Reserve Account” means the account by that name established within the Reserve Fund pursuant to Section 4.03(A) hereof.

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12 ARTICLE II

THE BONDS

Section 2.01. Principal Amount; Designation . 2026 Bonds in the aggregate principal amount of $_____________ are hereby authorized to be issued by the City for Improvement Area No. 4 under and subject to the terms of the Resolution and this Agreement, the Act and other applicable laws of the State of California. The 2026 Bonds shall be designated the “Improvement Area No. 4 of City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 Special Tax Bonds Series 2026.”

Section 2.02. Terms of 2026 Bonds.

(A) Form; Denominations. The 2026 Bonds shall be issued as fully registered Bonds without coupons in the denomination of $5,000 or any integral multiple of $5,000 in excess thereof. The 2026 Bonds shall be lettered and numbered in a customary manner as determined by the Fiscal Agent.

(B) Date of 2026 Bonds. The 2026 Bonds shall be dated the Closing Date for the 2026 Bonds.

(C) CUSIP Identification Numbers. “CUSIP” identification numbers shall be imprinted on the 2026 Bonds, but such numbers shall not constitute a part of the contract evidenced by the 2026 Bonds and any error or omission with respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and pay for the 2026 Bonds. In addition, failure on the part of the City or the Fiscal Agent to use such CUSIP numbers in any notice to Owners shall not constitute an event of default or any violation of the City’s contract with such Owners and shall not impair the effectiveness of any such notice.

(D) Maturities. The 2026 Bonds shall be issued as term bonds and shall mature and become payable as follows:

Maturity Principal Interest CUSIP†
(September 1) Amount Rate (75211R)

T

(T) Term Bond.

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13 (E) Interest. The 2026 Bonds shall bear interest at the rates set forth above payable on the Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. Each 2026 Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Closing Date; provided, however, that if at the time of authentication of a 2026 Bond, interest is in default thereon, such 2026 Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon.

(F) Method of Payment . Interest on the 2026 Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed on the Interest Payment Dates by first class mail to the registered Owner thereof at such registered Owner’s address as it appears o n the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer made on such Interest Payment Date upon written instructions received by the Fiscal Agent on or before the Record Date preceding the Interest Payment Date of any Owner of $1,000,000 or more in aggregate principal amount of 2026 Bonds; provided that so long as any 2026 Bonds are in book-entry form, payments with respect to such 2026 Bonds shall be made by wire transfer or such other method acceptable to the Fiscal Agent to the Depository. The principal of the 2026 Bonds and any premium on the 2026 Bonds are payable in lawful money of the United States of America upon surrender of the 2026 Bonds at the Principal Office of the Fiscal Agent. All 2026 Bonds paid by the Fiscal Agent pursuant to this Section shall be cancelled by the Fiscal Agent.

The Fiscal Agent shall destroy the cancelled 2026 Bonds and issue a certificate of destruction thereof to the City.

Section 2.03. Redemption.

(A) Redemption Dates.

(i) Optional Redemption. The Bonds are subject to optional redemption from any source of available funds (other than prepayments of the Special Tax by property owners), in whole or in part among maturities as specified by the City and by lot within a maturity, on any date on and after September 1, ______ at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates
Redemption
Price
September 1, 20__ through August 31, 20__ 103%
September 1, 20__ through August 31, 20__ 102
September 1, 20__ through August 31, 20__ 101
September 1, 20__ and any date thereafter 100

(ii) Mandatory Redemption From Prepayments. The Bonds are subject to mandatory redemption from prepayments of the Special Tax by property owners, in whole or in part among maturities as shall be specified by the City and by lot within a maturity, on any Interest Payment ITEM 19.1.

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14 Date at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates
Redemption
Price
Interest Payment Dates through and including March 1, 20__ 103% September 1, 20__ and March 1, 20__ 102
September 1, 20__ and March 1, 20__ 101
September 1, 20__ and any Interest Payment Date thereafter 100

The proceeds of any such prepayment shall be deposited in the Prepayment Account of the Bond Fund and applied by the Fiscal Agent to pay the redemption price of the 2026 Bonds.

(iii) Mandatory Sinking Fund Redemption . The Bonds maturing September 1, 20__ and September 1, 20__ ( collectively, the “ Term Bonds ”) are subject to mandatory sinking payment redemption in part on September 1, 20__ and September 1, 20__ , and on each September 1 thereafter to maturity, by lot, at a redemption price equal to one hundred percent (100%) of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following tables:

September 1, 20__ Term Bonds

Mandatory
Redemption Date
(September 1)

Sinking Fund
Payment

September 1, 20__ Term Bonds

Mandatory
Redemption Date
(September 1)

Sinking Fund
Payment

The amounts in the foregoing tables shall be reduced pro rata at the direction of the City in an Officer’s Certificate, in order to maintain substantially uniform debt service, as a result of any prior partial redemption of the 2026 Bonds pursuant to Section 2.03(A)(i) or (ii) above.

In lieu of redemption under this Section 2.03, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding 2026 Bonds, upon the filing with the Fiscal Agent of an Officer’s Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event may 2026 Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase.

(B) Notice to Fiscal Agent. The City shall give the Fiscal Agent an Officer’s Certificate containing notice of its intention to redeem 2026 Bonds pursuant to subsections (A)(i) and (A)(ii) not less than 45 days prior to the applicable redemption date.

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15 (C) Redemption Procedure by Fiscal Agent. The Fiscal Agent shall cause notice of any redemption to be mailed by first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption, to the Municipal Securities Rulemaking Board and to the Securities Depositories, and to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books in the Principal Office of the Fiscal Agent; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds.

Such notice shall state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the CUSIP numbers and Bond numbers of the Bonds to be redeemed by giving the individua l CUSIP number and Bond number of each Bond to be redeemed or shall state that all Bonds between two stated Bond numbers, both inclusive, are to be redeemed or that all of the Bonds of one or more maturities have been called for redemption, shall state as to any Bond called in part the principal amount thereof to be redeemed, and shall require that such Bonds be then surrendered at the Principal Office of the Fiscal Agent for redemption at the said redemption price, and shall state that further interest on such Bonds will not accrue from and after the redemption date.

The City has the right to rescind any notice of the redemption of Bonds under Section

2.03(A)(i) by written notice to the Fiscal Agent on or prior to two Business Days prior the date fixed for redemption. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an event of default. The City and the Fiscal Agent have no liability to the Owners or any other party related to or arising from such rescission of redemption. The Fiscal Agent shall mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under this Section.

Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, of the Bonds being redeemed with the proceeds of such check or other transfer.

Whenever provision is made in this Agreement for the redemption of less than all of the Bonds of any maturity, the Fiscal Agent shall select the Bonds to be redeemed, from all Bonds or such given portion thereof of such maturity by lot in any manner which the Fiscal Agent in its sole discretion shall deem appropriate.

Upon surrender of Bonds redeemed in part only, the City shall execute and the Fiscal Agent shall authenticate and deliver to the registered Owner, at the expense of the City, a new Bond or Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds.

(D) Effect of Redemption . From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the Bonds so called for redemption shall have been deposited in the Bond Fund, such Bonds so called shall cease to be entitled to any benefit under this Agreement other than the right to receive payment of the redemption price, and no interest shall accrue thereon on or after the redemption date specified in such notice.

ITEM 19.1.

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16 All Bonds redeemed and purchased by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the cancelled Bonds and issue a certificate of destruction thereof to the City.

Section 2.04. Form of Bonds . The Bonds, the form of Fiscal Agent’s certificate of authentication and the form of assignment, to appear thereon, shall be substantially in the forms, respectively, set forth in Exhibit A attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Agreement, the Resolution and the Act.

Section 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the City by the Mayor and the City Clerk of the City who are in office on the date of adoption of this Agreement or at any time thereafter, and the seal of the City shall be impressed, imprinted or reproduced by facsimile signature thereon. If any officer whose signature appears on any Bond ceases to be such officer before delivery of the Bonds to the Owner, such signature shall nevertheless be as effective as if the officer had remained in office until the delivery of the Bonds to the Owner. Any Bond may be signed and attested on behalf of the City by such persons as at the actual date of the execution of such Bond shall be the proper officers of the City although at the nominal date of such Bond any such person shall not have been such officer of the City.

Only such Bonds as shall bear thereon a certificate of authentication in substantially the form set forth in Exhibit A, executed and dated by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of authentication of the Fiscal Agent shall be conclusive evidence that the Bonds registered hereunder have been duly authenticated, registered and delivered hereunder and are entitled to the benefits of this Agreement.

Section 2.06. Transfer of Bonds . Any Bond may, in accordance with its terms, be transferred, upon the books required to be kept pursuant to the provisions of Section 2.08 by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form acceptable to the Fiscal Agent. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the City. The Fiscal Agent shall collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer.

Whenever any Bond or Bonds shall be surrendered for transfer, the City shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds, for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity.

No transfers of Bonds shall be required to be made (i) within fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.

Section 2.07. Exchange of Bonds . Bonds may be exchanged at the Principal Office of the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such exchange shall be paid by the City. The Fiscal Agent shall collect from the Owner requesting such exchange any tax or other governmental charge required to be paid with respect to such exchange.

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17 No exchanges of Bonds shall be required to be made (i) within fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.

Section 2.08. Bond Register . The Fiscal Agent will keep or cause to be kept, at its Principal Office, sufficient books for the registration and transfer of the Bonds (the “Bond Register”), which books shall show the series number, date, amount, rate of interest and Owner of each Bond and shall at all times be open to inspection by the City during regular business hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the ownership of the Bonds as hereinbefore provided.

Section 2.09. Temporary Bonds . The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the City, and may contain such reference to any of the provisions of this Agreement as may be appropriate.

Every temporary Bond shall be executed by the City upon the same conditions and in substantially the same manner as the definitive Bonds. If the City issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange for the definitive Bonds at the Principal Office of the Fiscal Agent or at such other location as the Fiscal Agent shall designate, and the Fiscal Agent shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary bonds shall be entitled to the same benefits under this Agreement as definitive Bonds authenticated and delivered hereunder.

Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen . If any Bond shall become mutilated, the City shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent shall be canceled by it and destroyed by the Fiscal Agent who shall deliver a certificate of destruction thereof to the City. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and indemnity for the Fiscal Agent and the City satisfactory to the Fiscal Agent shall be given, the City shall execute, an d the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen. The City may require payment of a sum not exceeding the actual cost of preparing each new Bond delivered under this Section and of the expenses which may be incurred by the City and the Fiscal Agent for the preparation, execution, authentication and delivery. Any Bond delivered under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the City whether or not the Bond so alleged to be lost, destroyed or stolen is at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to this Agreement.

Section 2.11. Limited Obligation. All obligations of the City under this Agreement and the Bonds shall be special obligations of the City, payable solely from the Special Tax Revenues and the funds pledged therefore hereunder. Neither the full faith and credit nor the taxing power of the City (except to the limited extent set forth herein) or the State of California or any political subdivision thereof is pledged to the payment of the Bonds.

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18 Section 2.12. Book-Entry Only System. DTC shall act as the initial Depository for the Bonds. One Bond for each maturity of the Bonds shall be initially executed, authenticated, and delivered as set forth herein as a separate fully registered certificate (in printed or typewritten form). Upon initial execution, authentication, and delivery, the ownership of the Bonds shall be registered in the Bond Register kept by the Fiscal Agent for the Bonds in the name of Cede & Co, as nominee of DTC or such nominee as DTC shall appoint in writing.

The Authorized Officers and the Fiscal Agent are hereby authorized to take any and all actions as may be necessary and not inconsistent with this Agreement to qualify the Bonds for the Depository’s book -entry system, including the execution of the Deposito ry’s required representation letter.

With respect to Bonds registered in the Bond Register in the name of Cede & Co, as nominee of DTC, the Fiscal Agent shall not have any responsibility or obligation to any broker-dealer, bank, or other financial institution for which DTC holds Bonds as Depository from time to time (the “DTC Participants”) or to any person for which a DTC Participant acquires an interest in the Bonds (the “Beneficial Owners”). Without limiting the immediately preceding sentence, the Fiscal Agent shall not have any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co, or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant, any Beneficial Owner, or any other person, other than DTC, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository of the beneficial interests in the Bonds to be redeemed in the event the City elects to redeem the Bonds in part, (iv) the payment to any DTC Participant, any Beneficial Owner, or any other person, other than DTC, of any amount with respect to the principal of or interest on the Bonds, or (v) any consent given or other action taken by the Depository as Owner of the Bonds.

The Fiscal Agent may treat as and deem DTC to be the absolute Owner of each Bond for which DTC is acting as Depository for the purpose of payment of the principal of and interest on such Bonds, for the purpose of giving notices of redemption and other matters with respect to such Bonds, for the purpose of registering transfers with respect to such Bonds, and for all purposes whatsoever. The Fiscal Agent shall pay all principal of and interest on the Bonds only to the Owners as shown on the Registration Boo ks, and all such payments shall be valid and effective to fully satisfy and discharge all obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid.

No person other than an Owner, as shown on the Bond Register, shall receive a physical Bond. Upon delivery by DTC to the Fiscal Agent of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the transfer provisions in Section 2.06 hereof, references to “Cede & Co.” in this Section 2.12 shall refer to such new nominee of DTC.

DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the Fiscal Agent and the City during any time that the Bonds are Outstanding, and discharging its responsibilities with respect thereto under applicable law.

The City may terminate the services of DTC with respect to the Bonds if it determines that DTC is unable to discharge its responsibilities with respect to the Bonds or that continuation of the system of book-entry transfers through DTC is not in the best interest of the Beneficial Owners, and the City shall mail notice of such termination to the Fiscal Agent.

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19 Upon the termination of the services of DTC as provided in the previous paragraph, and if no substitute Depository willing to undertake the functions hereunder can be found which is willing and able to undertake such functions upon reasonable or customary terms, or if the City determines that it is in the best interest of the Beneficial Owners of the Bonds that they be able to obtain certificated Bonds, the Bonds shall no longer be restricted to being registered in the Bond Register of the Fiscal Agent in the name of Cede & Co., as nominee of DTC, but may be registered in whatever name or name the Owners shall designate at that time, in accordance with Section 2.06.

To the extent that the Beneficial Owners are designated as the transferee by the Owners, in accordance with Section 2.06, the Bonds will be delivered to such Beneficial Owners as soon as practicable.

Section 2.13. No Acceleration . The principal of the Bonds shall not be subject to acceleration hereunder. Nothing in this Section 2.13 shall in any way prohibit the redemption of Bonds under Section 2.03 hereof, or the defeasance of the Bonds and discharge of this Agreement under Section 9.03 hereof.

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20 ARTICLE III

ISSUANCE OF BONDS

Section 3.01. Issuance and Delivery of Bonds. At any time after the execution of this Agreement, the City may issue the Bonds in the aggregate principal amount set forth in Section 2.01 or as authorized in any supplemental agreement and deliver such Bonds to the Original Purchaser. The Authorized Officers of the City are hereby authorized and directed to deliver any and all documents and instruments necessary to cause the issuance of Bonds in accordance with the provisions of the Act, the Resolution and this Agreement, to authorize the payment of Costs of Issuance of the Bonds from the proceeds of the Bonds and to do and cause to be done any and all acts and things necessary or convenient for delivery of the Bonds to the Original Purchaser.

Section 3.02. Application of Proceeds of Sale of 2026 Bonds.

The proceeds of the purchase of the 2026 Bonds by the Original Purchaser in the amount of $____________ (which represents the aggregate principal amount of the Bonds ($_____________.00), plus an original issue premium of $____________, and less an Underwriter’s discount of $____________), shall be paid to the Fiscal Agent, who shall forthwith deposit such proceeds on the Closing Date as follows:

(i) Deposit in the Improvement Fund $____________;

(ii) Deposit in the 2026 Reserve Account of the Reserve Fund $____________
;

(iii) Deposit $____________ in the Capitalized Interest Account of the Bond Fund; and

(iv) Deposit in the Costs of Issuance Fund $____________.

Section 3.03. Special Tax Fund.

(A) Establishment of Special Tax Fund. There is hereby established as a separate fund to be held by the Administrative Services Director, known as City of Rancho Cordova The Ranch Community Facilities District No. 2021 -1 Improvement Area No. 4 Special Tax Bonds, Series 2026, Special Tax Fund. Within the Special Tax Fund, the Assistant City Manager shall establish and maintain two accounts, (i) the Debt Service Account, to the credit of which the City shall deposit, immediately upon receipt, all Special Tax Revenues received by the City, and any amounts required by Section 3.05(B) to be deposited in the Special Tax Fund, and (ii) the Surplus Account, to the credit of which the City shall deposit surplus Special Tax Revenues described in Section 3.03(B) below. Moneys in the Special Tax Fund shall be held in trust by the City for the benefit of the City and the Owners of the Bonds, shall be disbursed as provided below and, pending any disbursement, shall be subject to a lien in favor of the Owners of the Bonds.

(B) Disbursements. All Special Tax Revenues shall be deposited in the Debt Service Account upon receipt. No later than 10 Business Days prior to each Interest Payment Date, the City shall withdraw from the Debt Service Account of the Special Tax Fund and transfer (i) to the Fiscal Agent for deposit in the Reserve Fund an amount such that the amount then on deposit ITEM 19.1.

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21 therein is equal to the Reserve Requirement, and (ii) to the Fiscal Agent for deposit in the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund such that the amount in the Bond Fund equals the principal, including any man datory sinking fund payments, premium, if any, and interest due on the Bonds on the next Interest Payment Date.

After the transfers under subsections (i) and (ii) have been made, the City may, on or after September 15th of each year transfer to the Surplus Account the amount remaining in the Debt Service Account. Notwithstanding the foregoing, the City may semi -annually transfer from the Special Tax Fund so held an amount equal to one-half of the Administrative Expense Priority as necessary for the payment of Administrative Expenses up to the Administrative Expense Priority.

From time to time, the City may withdraw from the Surplus Account of the Special Tax Fund amounts needed to pay costs of the Project or incidental expenses of the District authorized under the Act, including Administrative Expenses in excess of the Administrative Expense Priority.

Moneys in the Surplus Account may, at the City’s discretion, also be used to pay the principal of, premium, if any, and interest on the Bonds or to replenish the Reserve Fund to the amount of the Reserve Requirement and if not ne eded for those purposes shall be available, to the extent required under the Acquisition Agreement, to directly finance the Project (so -called pay-as-you- go funds).

(C) Investment. Moneys in the Special Tax Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from such investment and deposit shall be retained in the Special Tax Fund to be used for the purposes thereof.

Section 3.04. Improvement Fund.

(A) Establishment of Improvement Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, known as City of Rancho Cordova The Ranch Community Facilities District No. 2021 -1 Improvement Area No. 4 of Special Tax Bonds Series 2026 Improvement Fund to the credit of which a deposit shall be made as required by Section 3.02 and as required by Section 3.03. Moneys in the Improvement Fund shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection (B) of this Section for the payment or reimbursement of costs of the Project.

(B) Procedure for Disbursement. Disbursements from the Improvement Fund shall be made as determined by an Authorized Officer for the payment or reimbursement of the costs of the Project, including for costs of acquisition of portions of the Project, which may include authorized admini strative expenses of the City and payment of Bonds in the event of a delinquency by the Developer, in accordance with the Acquisition Agreement, by submission of an Officer’s Certificate to the Fiscal Agent requesting disbursement of moneys. The Fiscal Agent need not make any such payment if it has received notice of any lien, right to lien or attachment upon, or claim affecting the right to receive payment of, any of the moneys to be so paid, that has not been released or will not be released simultaneously with such payment. The Fiscal Agent shall not incur any liability for any disbursement from t he Improvement Fund made in reliance upon any Officer’s Certificate.

(C) Investment. Moneys in the Improvement Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits from the investment of amounts in the Improvement Fund shall be retained in the Improvement Fund to be used for the purposes of the Improvement Fund.

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22 (D) Closing of Fund. Upon the filing of an Officer’s Certificate stating that the portion of the Project to be financed from the Improvement Fund has been completed and that all costs of such portion of the Project have been paid or are not required to be paid from the Improvement Fund, the Authorized Officer shall request the Fiscal Agent to transfer the amount, if any, remaining in the Improvement Fund to the Bond Fund for application to the payment of principal of and interest on the Bonds in accordance with Section 4.02 and the Improvement Fund shall be closed.

Section 3.05. Costs of Issuance Fund.

(A) Establishment of Costs of Issuance Fund . There is hereby established as a separate fund to be held by the Fiscal Agent, known as City of Rancho Cordova The Ranch Community Facilities District No. 2021 -1 Improvement Area No. 4 Special Tax Bonds S eries 2026 Costs of Issuance Fund, to the credit of which a deposit shall be made as required by Section 3.02. Moneys in the Costs of Issuance Fund shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection (B) of this Section for the payment or reimbursement of Costs of Issuance of the 2026 Bonds.

(B) Disbursement. Amounts in the Costs of Issuance Fund shall be disbursed from time to time to pay Costs of Issuance, as set forth in an Officer’s Certificate containing respective amounts to be paid to the designated payees, signed by the Assistant City Manager or a designee thereof and delivered to the Fiscal Agent. The Fiscal Agent shall pay all Costs of Issuance of the 2026 Bonds upon receipt of an invoice from any such payee which requests payment in an amount which is less than or equal to the amount set forth with respect to such payee in such Officer’s Certificate, or upon receipt of an Officer’s Certificate requesting payment of a Costs of Issuance not listed on the initial Officer’s Certificate delivered to the Fiscal Agent on the Closing Date of the 2026 Bonds. The Fiscal Agent shall maintain the Costs of Issuance Fund for a period of 3 months from the Closing Date of the 2026 Bonds and then shall transfer any moneys remaining therein, including any investment earnings thereon, to the Improvement Fund, and if the Improvement Fund has been closed then to the Special Tax Fund, and the Costs of Issuance Fund shall be closed. Thereafte r, every invoice received by the Fiscal Agent shall be submitted to the Assistant City Manager for payment from amounts on deposit in the Special Tax Fund.

(C) Investment. Moneys in the Costs of Issuance Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from said investment shall be retained by the Fiscal Agent in the Costs of Issuance Fund to be used for the purposes of such fund.

ITEM 19.1.

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23 ARTICLE IV

SPECIAL TAX REVENUES; BOND FUND AND RESERVE FUND

Section 4.01. Pledge of Special Tax Revenues and Other Amounts . All of the Special Tax Revenues and all moneys deposited in the Bond Fund and, until disbursed as provided herein, the Improvement Fund and the Special Tax Fund are hereby pledged to secure the repayment of the Bonds. In addition, the 2026 Bonds shall be secured by a pledge of all amounts in the 2026 Reserve Account of the Reserve Fund, and each series of Additional Bonds shall be secured by a reserve account within the Reserve Fund or a separate reserve fund, as provided in the applicable Supplemental Agreement for such Series. Such pledge shall constitute a first lien on the Special Tax Revenues and said amounts.

The Special Tax Revenues and all moneys deposited into such funds (except as otherwise provided herein) are hereby dedicated in their entirety to the payment of the principal of, including any mandatory sinking fund payments, and interest and any premium on, the Bonds as provided herein and in the Act until all of the Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose in accordance with Section 9.03.

Amounts in the Costs of Issuance Fund for any Series of Bonds are not pledged to the repayment of the Bonds. The facilities acquired with the proceeds of the Bonds are not in any way pledged to the repayment of the Bonds. Any proceeds of condemnation, de struction or other disposition of any facilities financed with the proceeds of the Bonds are not pledged to the repayment of the Bonds and are free and clear of any lien or obligation imposed hereunder.

Section 4.02. Bond Fund.

(A) Establishment of Bond Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, known as City of Rancho Cordova The Ranch Community Facilities District No. 2021-1 Improvement Area No. 4 of Special Tax Bonds Series 2026 Bond Fund, to the credit of which deposits shall be made as required by Section 3.03(B)(ii), Section 4.03 and any other amounts required to be deposited therein by this Agreement or the Act. Within the Bond Fund, the Fiscal Agent shall establish a Prepayment Account and deposit therein moneys received, if any, from prepayments of the Special Tax pursuant to Section 2.03(A)(ii). Moneys in the Bond Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds, shall be disbursed for the payment of the principal of, and interest and any premium on, the Bonds as provided below, and, pending such disbursement, shall be subject to a lien in favor of the Owners of the Bonds.

There is also hereby created within the Bond Fund a “Capitalized Interest Account” which account is hereby established for purposes of accounting for the disposition of 2026 Bonds, a portion of the proceeds of which will be deposited to such Capitalized Interest Account pursuant to Section 3.02. The amount deposited to the Capitalized Interest Account and any investment earnings thereon shall be used solely to make interest payments on a portion of the 2026 Bonds on September 1, 2027. Any excess amounts therein on September 2, 2027 shall be transferred to the Special Tax Fund, and the Capitalized Interest Account shall thereupon be closed.

(B) Disbursements. On each Interest Payment Date, the Fiscal Agent shall withdraw from the Bond Fund and pay to the Owners of the Bonds the principal of, and interest and any premium, then due and payable on the Bonds, including any amounts due on the Bonds by ITEM 19.1.

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