Agenda — Roseville City Council, May 11, 2022 (part 2 of 4)

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accrue to the benefit of the CTC and shall thereafter be subject to any necessary enforcement action by CTC or STATE. All terms and conditions stated in the aforesaid CTC Resolutions and CTC-approved Guidelines in place at the time the PROGRAM SUPPLEMENT is signed (if applicable) shall also be considered to be binding provisions of this AGREEMENT.

(3) RECIPIENT shall conform to any and all permit and mitigation duties associated with PROJECT as well as all environmental obligations established in CTC Resolution G- 91-2 and/or its successors in place at the time a PROGRAM SUPPLEMENT is signed, as applicable, at the expense of RECIPIENT and/or the responsible party and without any further financial contributions or obligations on the part of STATE unless a separate PROGRAM SUPPLEMENT expressly provides funding for the specific purpose of hazardous materials remediation.

(4) RECIPIENT acknowledges when the PROGRAM SUPPLEMENT is executed the RECIPIENT is to comply with all CTC resolutions as adopted or currently amended as well as the guidelines, and policies applicable to state funded programs (or projects) including, but not limited to, Prop 116, STIP, TCR, Proposition 1A, and the Road Repair and Accountability Act of 2017.

B. RECIPIENT Resolution

(1) RECIPIENT has executed this AGREEMENT pursuant to the authorizing RECIPIENT resolution, attached as Attachment II to this AGREEMENT, which empowers RECIPIENT to enter into this AGREEMENT and which may also empower RECIPIENT to enter into all subsequent PROGRAM SUPPLEMENTS adopting the provisions of this AGREEMENT.

(2) If RECIPIENT or STATE determines that a separate Resolution is needed for each PROGRAM SUPPLEMENT, RECIPIENT will provide information as to who the authorized designee is to act on behalf of the RECIPIENT to bind RECIPIENT with regard to the terms and conditions of any said PROGRAM SUPPLEMENT or amendment and will provide a copy of that additional Resolution to STATE with the PROGRAM SUPPLEMENT or any amendment to that document.

C. Termination

(1) STATE reserves the right to terminate funding for any PROGRAM SUPPLEMENT upon written notice to RECIPIENT in the event that RECIPIENT fails to proceed with PROJECT work in accordance with the PROGRAM SUPPLEMENT, the bonding requirements, if applicable, or otherwise violates the conditions of this AGREEMENT and/or the PROGRAM SUPPLEMENT or the funding allocation such that substantial performance is significantly endangered.

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(2) No such termination shall become effective if, within thirty (30) days after receipt of a Notice of Termination, RECIPIENT either cures the default involved or, if not reasonably susceptible of cure within said thirty (30)-day period, RECIPIENT proceeds thereafter to complete the cure in a manner and time line acceptable to STATE. Any such termination shall be accomplished by delivery to RECIPIENT of a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this AGREEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, RECIPIENT and STATE shall meet to attempt to resolve any dispute.

(3) Following a fund encumbrance made pursuant to a PROGRAM SUPPLEMENT, if RECIPIENT fails to expend TCR/GENERAL FUND monies by June 30 of any applicable Fiscal Year that those funds would revert, those funds will be deemed withdrawn and will no longer be available to reimburse PROJECT work unless those funds are specifically made available beyond the end of that Fiscal Year through re- appropriation or other equivalent action of the Legislature and written notice of that action is provided to RECIPIENT by STATE.

(4) In the event STATE terminates a PROGRAM SUPPLEMENT for convenience and not for a default on the part of RECIPIENT as is contemplated in C (1) and (2) above of this Section 3, RECIPIENT shall be reimbursed its authorized costs up to STATE’s proportionate and maximum share of allowable PROJECT costs incurred to the date of RECIPIENT’s receipt of that notice of termination, including any unavoidable costs reasonably and necessarily incurred up to and following that termination date by RECIPIENT to effect such termination following receipt of that termination notice.

D. Third Party Contracting

(1) RECIPIENT shall not award a construction contract over $10,000 or other contracts over $25,000 [excluding professional service contracts of the type which are required to be procured in accordance with Government Code Sections 4525 (d), (e) and (f)] on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. Contracts awarded by RECIPIENT, if intended as local match credit, must meet the requirements set forth in this AGREEMENT regarding local match funds.

(2) Any subcontract entered into by RECIPIENT as a result of this AGREEMENT shall contain the provisions of ARTICLE II – GENERAL PROVISIONS, Section 2. Audits and Reports and shall mandate that travel and per diem reimbursements and third-party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors.

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(3) To be eligible for local match credit, RECIPIENT must ensure that local match funds used for the PROJECT meet the General Provisions requirements outlined in this ARTICLE II in the same manner as required of all other PROJECT expenditures.

(4) In addition to the above, the preaward requirements of third party contractor/consultants with local transit agencies should be consistent with Local Program Procedures (LPP-00-05).

E. Change in Funds and Terms/Amendments

This AGREEMENT and the resultant PROGRAM SUPPLEMENTS may be modified, altered, or revised only with the joint written consent of RECIPIENT and STATE.

F. Project Ownership

(1) Unless expressly provided to the contrary in a PROGRAM SUPPLEMENT, subject to the terms and provisions of this AGREEMENT, RECIPIENT, or a designated subrecipient acceptable to STATE, as applicable, shall be the sole owner of all improvements and property included in the PROJECT constructed, installed or acquired by RECIPIENT or subrecipient with funding provided to RECIPIENT under this AGREEMENT. RECIPIENT, or subrecipient, as applicable, is obligated to continue operation and maintenance of the physical aspects of the PROJECT dedicated to the public transportation purposes for which PROJECT was initially approved unless RECIPIENT, or subrecipient, as applicable, ceases ownership of such PROJECT property; ceases to utilize the PROJECT property for the intended public transportation purposes; or sells or transfers title to or control over PROJECT and STATE is refunded the Credits due STATE as provided in paragraph (4) herein below.

(2) Should State bond funds be encumbered to fund any part of a PROJECT under this AGREEMENT, then, at STATE’s option, before RECIPIENT will be permitted to make any proposed change in use, RECIPIENT shall be required to first obtain a determination by Bond Counsel acceptable to the State Treasurer’s Office and STATE that a change in the operation, proportion, or scope of PROJECT as originally proposed by RECIPIENT will not adversely affect the tax exempt status of those bonds.

(3) PROJECT right-of-way, PROJECT facilities constructed or reconstructed on a PROJECT site and/or PROJECT property (including vehicles and vessels) purchased by RECIPIENT (excluding temporary construction easements and excess property whose proportionate resale proceeds are distributed pursuant to this AGREEMENT) shall remain permanently dedicated to the described public transit use in the same proportion and scope, and to the same extent as mandated in the PROGRAM SUPPLEMENT and related Bond Fund Certification documents, if applicable, unless STATE agrees otherwise in writing. Vehicles acquired as part of PROJECT, including, but not limited to, buses, vans, rail passenger equipment and ferry vessels, shall be dedicated to that public transportation use for their full economic life cycle, which, for the purpose of this AGREEMENT, will be determined in accordance with City of Roseville
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standard national transit practices and applicable rules and guidelines, including any extensions of that life cycle achievable by reconstruction, rehabilitation or enhancements.

(4) (a) Except as otherwise set forth in this Section 4, STATE, or any other STATE- assignee public body acting on behalf of the CTC, shall be entitled to a refund or credit (collectively the Credit), at STATE’s sole option, equivalent to the proportionate PROJECT funding participation received by RECIPIENT from STATE if RECIPIENT, or a sub-recipient, as applicable, (i) ceases to utilize PROJECT for the original intended public transportation purposes or (ii) sells or transfers title to or control over PROJECT. If federal funds (meaning only those federal funds received directly by RECIPIENT and not federal funds derived through or from the State) have contributed to the PROJECT, RECIPIENT shall notify both STATE and the original federal source of those funds of the disposition of the PROJECT assets or the intended use of those sale or transfer receipts.

(b) STATE shall also be entitled to an acquisition Credit for any future purchase or condemnation of all or portions of PROJECT by STATE or a designated representative or agent of STATE.

(c) The Credit due STATE will be determined by the ratio of STATE’s funding when measured against the RECIPIENT’s funding participation (the Ratio). For purposes of this Section 4, the State’s funding participation includes federal funds derived through or from STATE. That Ratio is to be applied to the then present fair market value of PROJECT property acquired or constructed as provided in (d) and (e) below.

(d) For Mass Transit vehicles, this Credit [to be deducted from the then remaining equipment value] shall be equivalent to the percentage of the full extendable vehicle economic life cycle remaining, multiplied by the Ratio of funds provided for that equipment acquisition. For real property, this same funding Ratio shall be applied to the then present fair market value, as determined by STATE, of the PROJECT property acquired or improved under this AGREEMENT.

(e) Such Credit due STATE as a refund shall not be required if RECIPIENT dedicates the proceeds of such sale or transfer exclusively to a new or replacement STATE approved public transit purpose, which replacement facility or vehicles will then also be subject to the identical use restrictions for that new public purpose and the Credit ratio due STATE should that replacement project or those replacement vehicles cease to be used for that intended described pre-approved public transit purpose.

(1) In determining the present fair market value of property for purposes of calculating STATE’s Credit under this AGREEMENT, any real property portions of a PROJECT site contributed by RECIPIENT shall not be included.

In determining STATE’s proportionate funding participation, STATE’s City of Roseville
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contributions to third parties (other than RECIPIENT) shall be included if those contributions are incorporated into the PROJECT.

(2) Once STATE has received the Credit as provided for above because RECIPIENT, or a sub-recipient, as applicable, has (a) ceased to utilize the PROJECT for the described intended public transportation purpose(s) for which STATE funding was provided and STATE has not consented to that cessation of services or (b) sold or transferred title to or control over PROJECT to another party (absent STATE approval for the continued transit operation of the PROJECT by that successor party under an assignment of RECIPIENT’s duties and obligations), neither RECIPIENT, subrecipient, nor any party to whom RECIPIENT or subrecipient, as applicable, has transferred said title or control shall have any further obligation under this AGREEMENT to continue operation of PROJECT and/or PROJECT facilities for those described public transportation purposes, but may then use PROJECT and/or any of its facilities for any lawful purpose.

(3) To the extent that RECIPIENT operates and maintains Intermodal Transfer Stations as any integral part of PROJECT, RECIPIENT shall maintain each station and all its appurtenances, including, but not limited to, restroom facilities, in good condition and repair in accordance with high standards of cleanliness (Public Utilities Code section 99317.8). Upon request of STATE, RECIPIENT shall also authorize State-funded bus services to use those stations and appurtenances without any charge to STATE or the bus operator.

This permitted use will include the placement of signs and informational material designed to alert the public to the availability of the State-funded bus service (for the purpose of this paragraph, "State-funded bus service" means any bus service funded pursuant to Public Utilities Code section 99316).

(4) Special conditions apply to any proposed sale or transfer or change of use as respects PROJECT property, facilities or equipment acquired with tax free State bond funds and RECIPIENT shall conform to those restrictions as set forth herein and in said bonds.

G. Disputes

STATE and RECIPIENT shall deal in good faith and attempt to resolve potential disputes informally. If the dispute persists, RECIPIENT shall submit to the STATE’s District Contract Manager or designee a written demand for a decision regarding the disposition of any dispute arising under this agreement. The District Contract Manager shall make a written decision regarding the dispute and will provide it to the fund RECIPIENT. The fund RECIPIENT shall have an opportunity to challenge the District Contract Manager’s determination but must make that challenge in writing within ten (10) working days to the Mass Transportation Program Manager or his/her designee. [If the fund RECIPIENT challenge is not made within the ten (10) day period, the District Contract Manager’s decision shall become the final decision of the STATE.] STATE and RECIPIENT shall submit written, factual information and supporting City of Roseville
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data in support their respective positions. The decision of the Mass Transportation Program Manager or his/her designee shall be final, conclusive and binding regarding the dispute, unless RECIPIENT commences an action in court of competent jurisdiction to contest the decision in accordance with Division 3.6 of the California Government Code.

H. Hold Harmless and Indemnification

(1) Neither STATE nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by RECIPIENT, its agents and contractors under or in connection with any work, authority, or jurisdiction delegated to RECIPIENT under this AGREEMENT or any PROGRAM SUPPLEMENT or as respects environmental clean-up obligations or duties of RECIPIENT relative to PROJECT. It is also understood and agreed that, RECIPIENT shall fully defend, indemnify and hold the CTC and STATE and their officers and employees harmless from any liability imposed for injury and damages or environmental obligations or duties arising or created by reason of anything done or imposed by operation of law or assumed by, or omitted to be done by RECIPIENT under or in connection with any work, authority, or jurisdiction delegated to RECIPIENT under this AGREEMENT and all PROGRAM SUPPLEMENTS.

(2) RECIPIENT shall indemnify, defend and hold harmless STATE, the CTC and the State Treasurer relative to any misuse by RECIPIENT of State funds, PROJECT property, PROJECT generated income or other fiscal acts or omissions of RECIPIENT.

I. Labor Code Compliance

RECIPIENT shall include in all subcontracts awarded using PROJECT funds, when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code §§ 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective the date of Contract award by the RECIPIENT.

J. Non-Discrimination

(1) In the performance of work under this AGREEMENT, RECIPIENT, its contractor(s) and all subcontractors, shall not unlawfully discriminate, harass or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age, marital status, family and medical care leave, pregnancy leave, and disability leave. RECIPIENT, its contractor(s) and all subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.

RECIPIENT, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code section 12900 et seq.), and the applicable regulations promulgated thereunder (California Code of Regulations, City of Roseville
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Title 2, section 11000 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full. Each of RECIPIENT’s contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate.

(2) Should federal funds be constituted as part of PROJECT funding or compensation received by RECIPIENT under a separate Contract during the performance of this AGREEMENT, RECIPIENT shall comply with this AGREEMENT and with all federal mandated contract provisions as set forth in that applicable federal funding agreement.

(3) RECIPIENT shall include the non-discrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this AGREEMENT.

K. State Fire Marshal Building Standards Code

The State Fire Marshal adopts building standards for fire safety and panic prevention. Such regulations pertain to fire protection design and construction, means of egress and adequacy of exits, installation of fire alarms, and fire extinguishment systems for any State-owned or State- occupied buildings per section 13108 of the Health and Safety Code. When applicable, RECIPIENT shall request that the State Fire Marshal review PROJECT PS&E to ensure PROJECT consistency with State fire protection standards.

L. Americans with Disabilities Act

By signing this Master Agreement, RECIPIENT assures STATE that RECIPIENT shall comply with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA (42 U.S.C. 12101 et seq.).

M. Access for Persons with Disabilities

Disabled access review by the Department of General Services (Division of the State Architect) is required for all publicly funded construction of buildings, structures, sidewalks, curbs and related facilities. RECIPIENT will award no construction contract unless RECIPIENT’s plans and specifications for such facilities conform to the provisions of sections 4450 and 4454 of the California Government Code, if applicable. Further requirements and guidance are provided in Title 24 of the California Code of Regulations.

N. Disabled Veterans Program Requirements

(1) Should Military and Veterans Code sections 999 et seq. be applicable to RECIPIENT, RECIPIENT will meet, or make good faith efforts to meet, the 3% Disabled Veterans City of Roseville
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Business Enterprises goals (or RECIPIENT’s applicable higher goals) in the award of every contract for PROJECT work to be performed under these this AGREEMENT. (2) RECIPIENT shall have the sole duty and authority under this AGREEMENT and each PROGRAM SUPPLEMENT to determine whether these referenced code sections are applicable to RECIPIENT and, if so, whether good faith efforts asserted by those contractors of RECIPIENT were sufficient as outlined in Military and Veterans Code sections 999 et seq.

O. Environmental Process

Completion of the PROJECT environmental process (“clearance”) by RECIPIENT (and/or STATE if it affects a State facility within the meaning of the applicable statutes) is required prior to requesting PROJECT funds for right-of-way purchase or construction. No State agency may request funds nor shall any State agency, board or commission authorize expenditures of funds for any PROJECT effort, except for feasibility or planning studies, which may have a significant effect on the environment unless such a request is accompanied with all appropriate documentation of compliance with or exemption from the California Environmental Quality Act (CEQA) (including, if as appropriate, an environmental impact report, negative declaration, or notice of exemption) under California Public Resources Code section 21080(b) (10), (11), and (12) provides an exemption for a passenger rail project that institutes or increases passenger or commuter services on rail or highway rights-of-way already in use.

P. Force Majeure

Each party will be excused from performance of its obligations where such non-performance is caused by any extraordinary event beyond its reasonable control, such as any non-appealable order, rule or regulation of any federal or state governmental body, fire, flood, earthquake, storm, hurricane or other natural disaster, epidemic, pandemic, war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption, provided that the party excused hereunder shall use all reasonable efforts to minimize its non-performance and to overcome, remedy or remove such event in the shortest practical time.

Should a force majeure event occur which renders it impossible for a period of forty-five (45) or more consecutive days for either party to perform its obligations hereunder, the Parties agree to negotiate in good faith to amend the existing Master Agreement or Supplemental Agreement to deal with such event and to seek additional sources of funding to continue the operation of the Service.

ARTICLE III – SPECIAL PROVISIONS

Section 1. Bond Provisions (Applicable only to State Bond Funding encumbered against a specific Program Supplement).

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A. General Bond Provisions

(1) If RECIPIENT enters into a management contract with a private party (including AMTRAK) for operation of rail, ferry or other transportation services in connection with PROJECT, RECIPIENT will obtain prior approval from Bond Counsel acceptable to STATE that the terms of that management contract meet the requirements of Internal Revenue Service Revenue Procedure 97-13 (as supplemented or amended) or any successor thereto (dealing generally with guidelines for when management contracts may be deemed not to create a "private use" of bond-financed property) or are otherwise acceptable. RECIPIENT must also be prepared to certify, upon request of STATE, that the revenues which RECIPIENT (or its manager) will receive directly from the operation of transportation services in connection with PROJECT (but not including any subsidy of the transportation operation from taxes or other outside fund sources) are, for any fiscal year, less than the ordinary and necessary expenses directly attributable to the operation and maintenance of the transportation system (excluding any overhead or administrative costs of RECIPIENT).

(2) Except as provided in this Article III, A (1), STATE and RECIPIENT agree that any costs of PROJECT acquired or constructed by RECIPIENT allocable to portions of PROJECT which are subject to any property interests held by a non-governmental person(s) in connection with business activities, such as easements, leases, or fee interests, not generally enjoyed by the public (hereinafter referred to as “Non- Governmentally Used Property” or “NUP”) shall require the prior approval of STATE and the State Treasurer, as applicable. If RECIPIENT receives any revenues or profits from any NUP activities allowed pursuant to this Article (whether approved at this time or hereafter approved by STATE), RECIPIENT agrees that such revenues or profits shall be used exclusively for the public transportation services for which PROJECT was initially approved, either for capital improvements or operating costs. If RECIPIENT does not so dedicate those revenues or profits, a proportionate share shall (unless disapproved by Bond Counsel) be paid to STATE equivalent to the Ratio of STATE’s percentage of participation in PROJECT.

(3) Notwithstanding the foregoing, RECIPIENT may be authorized to receive an allocation of bond proceeds for NUP activity, in an amount not to exceed the amount specified in the PROGRAM SUPPLEMENT, if RECIPIENT submits a certified bond certification questionnaire to the STATE, and both the STATE and the State Treasurer approve the private activities contained therein.

(4) RECIPIENT shall not loan any portion of bond proceeds funding PROJECT to any private (including nonprofit) person or business. For this purpose, a “loan” includes any arrangement that is the economic equivalent of a loan, regardless of how it is named.

(5) Delivery by STATE of any bond funds is contingent on the sale of bonds by the State Treasurer. STATE shall not be held liable for any resulting damage or penalty to RECIPIENT in the event bond sales are delayed, canceled, or downsized or other City of Roseville
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AGREEMENT funds are restricted, limited or otherwise conditioned by acts of Congress, the Internal Revenue Service, the United States Department of Transportation, the Legislature, or the CTC.
(6) RECIPIENT shall, for the purposes of any State bond funded right of way acquisition which will become a permanent part of PROJECT (such acquisitions exclude temporary construction easements, property allocated to matching funds, and excess property purchased with State funds whose resale proceeds are returned or credited to STATE), maintain ownership of such PROJECT property for a minimum of twenty years or until the bonds have matured, whichever occurs first, before transferring or selling such property (subject to all refunds or Credits due STATE as provided hereinabove).

(7) Where RECIPIENT’s PROJECT includes a commuter rail PROJECT within the meaning of Proposition 116, RECIPIENT shall coordinate and share with other public transit operators any rail rights-of-way, common maintenance services and station facilities used for intercity and commuter rail. Intercity and commuter rail services shall be coordinated with each other, with other providers and with freight traffic to provide integrated rail passenger and freight services with minimal conflict.

(8) RECIPIENT agrees that all passenger vehicles, rail, and water borne ferry equipment, and all facilities acquired or constructed with Proposition 116 bond funds shall be accessible to persons with physical disabilities, including wheelchair users, at all stops, stations and terminals, whether or not staffed.

(9) NUP shall, for accounting and bookkeeping purposes, first be allocated to funding sources other than the State bond funds. For purposes of making such allocations, the costs attributable to NUP involving a sale, easement, lease or similar arrangement shall be determined on the basis of a fair allocation of value, which may include determinations based upon square meters/feet of the area encumbered by the NUP lease or easement relative to the total area acquired or constructed if all such area is of approximately equal value.

(10) NUP will include, but is not limited to, property which is sold (including sales of air and subsurface rights), and property subject to easements, leases or similar rights. A rail right of way will not be treated as NUP solely as a result of a Freight Use Easement retained by the seller of the right of way to RECIPIENT, provided that the sales agreement appropriately excludes the Freight Use Easement from the property or rights being acquired. Further, notwithstanding anything in this Article III to the contrary, RECIPIENT may allocate grant funds to the cost of any NUP if (a) neither RECIPIENT nor any other governmental entity will receive, directly or indirectly, any payments from or on behalf of the non-governmental user of the NUP, or (b) the payment from such user does not exceed the operation and maintenance costs fairly attributable or allocable to the non-governmental use of the NUP.

(11) RECIPIENT shall request, in writing, STATE’s advance approval if PROJECT funds are to be allocated to any NUP except "incidental use" property described below. If City of Roseville
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property, the costs of which have previously been allocated to PROJECT funds, is to become NUP before the State bond funds are fully paid or redeemed, then RECIPIENT may allocate the costs of such property to another funding source as provided or obtain STATE’s approval that the allocation of the costs of such property to the bond funds may remain. It is anticipated that STATE’s approval will be granted if, taking into account the existing and expected uses of the proceeds of the State bonds, STATE determines that the continued tax-exempt status of the State bonds will not be adversely affected and that the use of the property is consistent with PROJECT and its described purpose.

(12) For purposes of these fund source allocations, RECIPIENT does not have to consider NUP as including those "incidental uses" of PROJECT (for example, advertising billboards, vending machines, telephones, etc.) which meet the applicable requirements of federal tax regulations (IRS Notice 87-69 or any successor thereto). In general, such Notice requires that the incidental use not be physically separated from the rest of PROJECT and not comprise, in the aggregate, more than 2-1/2% of the total costs of PROJECT.

Section 2. TCRP PROJECTS

The TRAFFIC CONGESTION RELIEF (TCR) ACT OF 2000 (the “ACT”), was added (in Chapter 4.5, commencing with section 14556) to part 5.3 of Division 3 of Title 2 of the Government Code by AB 2928 and SB 406, as amended by SB 1662 and AB 1705. As directed by the ACT and the CTC established Guidelines (as set out in CTC Resolution G-06-04), and as those Guidelines may be amended prior to the execution of a future PROGRAM SUPPLEMENT, said Guidelines shall apply to each TCRP funded PROJECT. By this reference, those Guidelines are made an express part of this AGREEMENT and shall apply to each TCRP funded PROJECT. RECIPIENT will cause its specific TCRP mandated Resolution to be attached as part of any TCRP funded PROGRAM SUPPLEMENT as a condition precedent to the acceptance of TCR ACT funds for that PROJECT.

Section 3. PROJECT MANAGEMENT

(1) STATE’s PROJECT administrator for this AGREEMENT shall be the chief of the State Transit Grants Branch of the Division of Rail and Mass Transportation. RECIPIENT’s General Manager, Executive Director or a Designee as named in writing to STATE following execution of this AGREEMENT shall be the administrator acting for RECIPIENT.

(2) PROGRAM SUPPLEMENT administrators for STATE shall be the applicable District Division Chief for Planning and for RECIPIENT, the designee named in the applicable PROGRAM SUPPLEMENT.

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IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT by their duly authorized officers.

STATE OF CALIFORNIA RECIPIENT NAME:

DEPARTMENT OF TRANSPORTATION CITY OF ROSEVILLE

DIVISION OF RAIL AND MASS

TRANSPORTATION

BY: BY:

KYLE GRADINGER, Chief
Division of Rail and Mass Transportation
DOMINICK CASEY, City Manager
City of Roseville

APPROVED AS TO FORM AND PROCEDURE

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

BY:

Attorney, California Department of
Transportation

City of Roseville
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ATTACHMENT I

CTC RESOLUTION G-91-2
Passed by the CTC on February 21, 1991

CALIFORNIA TRANSPORTATION COMMISSION
RESOLUTION G-9l-2
Commission Policy Resolution for Hazardous Waste Identification and Cleanup for Rail Right-of-Way

WHEREAS, the Commission has programmed funding for rail right -of-way acquisition in the 1990 State Transportation Improvement Program and may allocate funds for rail right -of-way acquisition from the Clean Air and Transportation Improvement Act; and

WHEREAS, hazardous wastes, based upon federal and state statutes and regulations, include but are not limited to such categories as heavy metals, (e.g., lead), inorganic (e.g., excessive mineral levels) and organic compounds (e.g., petroleum products), and can occur on a property's surface and subsurface; and

WHEREAS, rail properties often have hazardous wastes exceeding State of California and federal hazardous waste standards; and

WHEREAS, such properties contaminated with hazardous wastes require mitigation prior to using them for rail purposes; and

WHEREAS, hazardous wastes discovered on rail property may significantly impact property value, project scheduling and future liability for the grant applicant; and

WHEREAS, the Commission must be assured that acquisition of rail properties have been fully reviewed by the grant applicant, and if warranted, the grant applicant has tested for hazardous wastes; and

WHEREAS, if hazardo us wastes exist, the Commission must be assured that the hazardous wastes identified has either been cleaned up, or financial responsibility for the cleanup has been determined prior to title transfer to the grant applicant, or easement has been secured in lieu of purchasing the property, and the subsurface rights and liability for hazardous wastes remain with the property seller; and

WHEREAS, hazardous wastes identified subsequent to title transfer to the grant applicant will be cleaned up by the seller or a mechanism to recover clean -up-costs is established and executed as a condition prior to title transfer; and

WHEREAS, full due diligence is necessary in discovering hazardous waste and is an essential element in acquiring rail right-of-way properties by the grant applicant; and

NOW THEREFORE BE IT RESOLVED, that acquisition of all rail right-of -way properties will be fully investigated by the grant applicant to determine the absence/presence of hazardous wastes. Investigations shall be conducted in accordance to the standards and practices of the local, state and/or federal regulatory agencies having jurisdiction and by personnel adequately trained in hazardous waste investigation; and

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-2-

BE IT FURTHER RESOLVED, that all properties, discover ed with hazardous wastes, which exceed the federal/state standards, will be cleaned up to the satisfaction of the responsible local, state and/or federal regulatory agency. The appropriate regulatory agency shall certify to grant applicant that the cleanup has been completed; and

BE IT FURTHER RESOLVED, that the grant applicant will certify by formal resolution to the Commission that all reasonable steps have been completed to assure full due diligence in the discovery of hazardous waste has been achieved during the acquisition of rail right -of-way and the state is held harmless from cleanup liability or damages, both present and future; and

BE IT FURTHER RESOLVED, that the grant applicant will certify by formal resolution that it will not seek further state funding, for cleanup, damages, or liability cost associated with hazardous wastes on or below acquired property's surface; and

BE IT FURTHER RESOLVED, that the grant applicant will certify to the Commission:

• that all rail right-of-way acquisition properties have been investigated and have been found clean; • or that the cleanup of discovered hazardous waste has been completed prior to acquisition of the property;
• or that the grant applicant has obtained permanent easement and the subsurface rights and liability and full responsibility to pay for and remove such hazardous waste remains with the seller in conformance with applicable State and Federal law;

• or if hazardous wastes are known to exist prior to acquisition and if the applicant determines that time is of the essence for acquisition, then and in that event, an enforceable agreement will be entered into requiring the responsible party(ies) to clean all hazardous wastes by a date certain, with the option of funds sufficient for the clean-up costs deposited in escrow by the seller.

In the event of failure to clean up by the date determined, the recipient of the grant will make full restitution to the STATE for its participation. This resolve does not preclude the recipient from requesting re-allocation not to exceed the refunded amount after the hazardous waste(s) have been fully removed from the subject site; and

BE IT FURTHER RESOLVED, that the grant applicant will certify to the Commission that the seller from whom properties have been acquired retain liability for any hazardous waste investigation and/or cleanup, and damages discovered subsequent to the transfer of title; and

BE IT FURTHER RESOLVED, the Commission declares all future liability resulting from hazardous wastes remain with the seller or the grant applicant, not the state, and the grant applicant has been indemnified by the seller for any costs resulting from failure to eliminate hazardous wastes; and

BE IT FURTHER RESOLVED, no state funds will be made available for any fu ture costs associated with cleanup; damages, or liability costs associated with hazardous wastes on or below the acquired property’s surface.

City of Roseville
Master Agreement No. 64A0232-01

Page 25 of 26 ends

Revised December 23,2020

ATTACHMENT II

(INSERT AGENCY BOARD RESOLUTION)

COUNCIL COMMUNICATION
CC #:
2057
File #:
0800-03
Title:

Roseville Advanced Homes Program - Professional Services Agreement Contact:

Susan Hernandez 916-774-5623 [email protected]

Meeting Date: 5/11/2022
Item #: 7.8.

RECOMMENDATION TO COUNCIL
Staff recommends City Council adopt a resolution authorizing the City Manager to execute a three-year professional services agreement with TRC Solutions, Inc (TRC) on behalf of the City of Roseville. Staff also recommends City Council authorize the City Manager, or his designee, to execute three (3) one (1) year renewals
without further City Council approval, provided that the applicable budget is approved by the City Council each year, or until City staff determines that continuing is not in the City’s best interest.

BACKGROUND
Roseville Advanced Home Program (RAHP) provides incentives to home builders with qualifying single family residential new construction projects. These homes must exceed California building standards to qualify. The program requires a detailed evaluation of building plans to determine the level of qualification for each residential unit developed. The existing program was designed specifically to coincide with the programs offered by other regional utilities, including both the Sacramento Municipal Utility District (SMUD) and Pacific Gas and Electric Company (PG&E), in effort to provide consistency and encourage participation from developers with projects in the two other electric service territories.

As part of the RAHP, home builders are also offered incentives to develop “all-electric” homes and villages. This is a critical component to our electrification effort and allows us to support building electrification pre-construction when the measures are more cost effective, and helps the electric utility to meet regulatory requirements. It also helps Roseville Electric Utility to better understand and prepare for customer adoption of electric appliances and other electric technology in residences.

Roseville Electric Utility solicited proposals through RFP 07-075 in March 2022. One proposal was received. The proposal was evaluated based on qualifications, experience, project understanding, and proposed cost. Roseville Electric Utility selected TRC Solutions, Inc. to continue to work to design, develop, and market new construction energy efficiency programs that exceed Title 24 standards. TRC Solutions, Inc. developed a common framework, a rebate calculator and the reporting structure for both SMUD and PG&E’s residential new construction programs. In order to provide continuity across energy efficiency programs offered by the Sacramento region’s electric utilities and increase overall program participation, staff recommends executing a professional service agreement with TRC Solutions, Inc.

FISCAL IMPACT
The total cost of services will not exceed $1,057,851 over a three-year period. Funding for the agreement is included in the proposed Electric Fund FY2022-23 budget. Future annual funding requirements are approximately $365,000 for each of the potential one (1) year renewals, contingent on City Council’s approval of the associated budgets each year.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) only applies to projects which have the potential to cause a significant effect on the environment. 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 activity is not subject to CEQA. (CEQA Guidelines §15061(b)(3)).

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
Susan Hernandez, Energy Services Account Representative Dan Beans, Electric Utility Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 22-145
PSA for Roseville Advanced Homes Program
RESOLUTION NO. 22-145

APPROVING A PROFESSIONAL SERVICES AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND TRC SOLUTIONS, INC., AND AUTHORIZING THE CITY

MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, a professional services agreement for the Roseville Advanced Homes Program, by and between the City of Roseville and TRC Solutions, Inc., has been reviewed by the City Council; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said professional services agreement is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.

BE IT FURTHER RESOLVED that the City Manager or his designee is authorized to execute three (3) additional one (1) year renewals without further City Council approval, provided that the applicable budget is approved by the City Council each year, or until City staff determines that continuing is not in the City’s best interest

PASSED AND ADOPTED by the Council of the City of Roseville this day of , 2022, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR

ATTEST:

City Clerk

COUNCIL COMMUNICATION
CC #:
2049
File #:
0704-01 & 0201-01
Title:

Sierra Vista Neighborhood Park Sites JM-51 and JM-52 – Budget Adjustment Contact:

Tara Gee 916-774-5253
[email protected]

Meeting Date: 5/11/2022
Item #: 7.9.

RECOMMENDATION TO COUNCIL
Staff recommends that City Council adopt an ordinance to approve a budget adjustment allocating $150,270.93 from the Sierra Vista Neighborhood Park Fund (3319) for reimbursement of frontage improvements at Park Site JM-51 and $118,054.55 from the Sierra Vista Neighborhood Park Fund (3319) for reimbursement of frontage improvements at Park Site JM-52.

BACKGROUND
According to the Development Agreement, the construction costs for certain park frontage improvements are entitled to reimbursements from the Neighborhood Park Fund. JMC Homes has completed frontage improvements and seeks reimbursement in the amounts of $150,270.93 for Park Site JM-51 and $118,054.55 for Park Site JM-52. After reviewing the requested amounts with actual work performed, staff recommends approval of the budget adjustment.

FISCAL IMPACT
The budget adjustment establishes appropriations for reimbursements from the Sierra Vista Neighborhood Park Fund (3319). There will be no General Fund impact from this request.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The budget adjustment for Park Sites JM-51 and JM-52 meets the above criteria and is not subject to CEQA. No additional environmental review is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
Tara Gee, Park Planning & Development Superintendent
Jill Geller, Parks, Recreation & Libraries Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Ordinance 6487
BA - JM-51 and JM-52
ORDINANCE NO. 6487

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2021-22

BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY

EFFECTIVE AS AN APPROPRIATION MEASURE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2021-22, is hereby amended by transferring appropriations for reimbursement of park frontage improvements for Park Sites JM-51 and JM-52.

SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.

SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.

PASSED AND ADOPTED by the Council of the City of Roseville, this day of , 2022, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk
4/5/20221:01 PM
1 REQUEST FOR BUDGET ADJUSTMENT
REQUESTER NAME & TITLE: Tara Gee, Parks Planning & Development Superinte FISCAL YEAR: 2021-22 PREPARER NAME & TITLE: Kathy Cullen, Management Analyst II COUNCIL DATE (if applicable): 05/04/2022 DEPARTMENT/DIVISION: Parks, Recreation & Libraries ORDINANCE:

EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
3319 6587 84001 500289 150,271
3319 6587 84001 500290 118,055
268,326

REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
-
268,326

FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
3319 (268,326)
(268,326)
Justification for Budget Adjustment:

REQUESTING DEPARTMENT HEAD / DESIGNEE DATE BUDGET MANAGER / DESIGNEE DATE

CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE

POSTED BY DATE
Revised: June 24, 2019

ACCOUNT STRING
TOTAL

DESCRIPTION
Sierra Vista Neighborhood park fund balance
REQUIRED APPROVALS:

BUDGET DEPARTMENT USE ONLY:

The Parks, Recreation & Libraries Department is requesting a total of $268,326 from the Sierra Vista Neighborhood Park fund (3319) for the reimbursement of frontage improvements at JM-51 and JM-52. According to the Development Agreement, the developer is entitled to reimbursement of constructions costs for certain park frontage improvements from the Neighborhood Park Fund. JMC Homes has completed frontage improvements and seeks reimbursement as follows: $150,270.93 for frontage improvements at JM-51 and $118,054.55 for frontage improvements at JM-52.

TOTAL
TOTAL

ACCOUNT STRING DESCRIPTION
Reimbursement of JM-51 neighborhood park frontage
improvements
Reimbursement of JM-52 neighborhood park frontage
improvements

NET ADJUSTMENT

ACCOUNT STRING DESCRIPTION
04/05/2022

COUNCIL COMMUNICATION
CC #:
2045
File #:
0400-04-15 & 0400-04-15-02 & 0400-02
Title:

Second Reading - Amoruso Ranch Specific Plan Rezone and Development Agreement Amendments
Contact:

Shelby Maples 916-746-1347 [email protected]

Meeting Date: 5/11/2022
Item #: 7.10.

RECOMMENDATION TO COUNCIL
ORDINANCE NO. 6482 OF THE COUNCIL OF THE CITY OF ROSEVILLE AMENDING ZONING ORDINANCE NO. 5428 OF THE CITY OF ROSEVILLE CHANGING THE

ZONING OF CERTAIN REAL PROPERTY LOCATED WITHIN THE CITY OF ROSEVILLE; and adopt ORDINANCE NO. 6483 OF THE COUNCIL OF THE CITY OF

ROSEVILLE ADOPTING A SECOND AMENDMENT OF THE DEVELOPMENT

AGREEMENT BY AND BETWEEN THE CITY OF ROSEVILLE, BROOKFIELD SUNSET, LLC AND JENNIFER M. AMORUSO, SUCCESSOR TRUSTEE OF THE AMORUSO FAMILY LIVING TRUST DATED MARCH 14, 2005 RELATIVE TO THE AMORUSO RANCH SPECIFIC PLAN (525.7 ACRES) AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE; and adopt ORDINANCE NO. 6484 OF THE COUNCIL OF THE CITY OF ROSEVILLE ADOPTING A SECOND

AMENDMENT OF THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ROSEVILLE, BROOKFIELD SUNSET, LLC AND JENNIFER M. AMORUSO,

SUCCESSOR TRUSTEE OF THE AMORUSO FAMILY LIVING TRUST DATED MARCH 14, 2005 RELATIVE TO THE AMORUSO RANCH SPECIFIC PLAN (148.7 ACRES) AND

AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE, for second reading and adoption.

BACKGROUND
Not applicable.

FISCAL IMPACT
Not applicable.

ENVIRONMENTAL REVIEW
Not applicable.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
Shelby Maples, Associate Planner
Mike Isom, Development Services Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Ordinance 6482
Ordinance 6483
Ordinance 6484
ORDINANCE NO. 6482

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AMENDING ZONING ORDINANCE NO. 5428 OF THE CITY OF ROSEVILLE

CHANGING THE ZONING OF CERTAIN REAL PROPERTY LOCATED

WITHIN THE CITY OF ROSEVILLE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1. The Council of the City of Roseville has reviewed the findings of the Planning Commission regarding approval of the rezone specified herein, and make the following findings pursuant to Section 19.86.050 of the Zoning Ordinance:

1. The rezone is in conformance with the public interest, health, safety, or welfare of the City; and

2. The rezone is consistent with the objectives, policies, programs, and land use designations of the City of the Roseville General Plan and the Amoruso Ranch Specific Plan.

SECTION 2. Section 19.06.020 of the Zoning Ordinance of the City of Roseville, Ordinance No. 5428, is amended to change the zoning of that portion of certain real property within the City of Roseville known as the Amoruso Ranch Specific Plan (ARSP), as shown and so designated in Exhibit “B”, which is attached hereto and incorporated herein by reference, to adjust the acreage and configuration of zoning boundaries for Small Lot Residential (RS) Parcels AR-1 through AR-9, AR-11 through AR-16, AR-18, AR-21, AR-22, AR-24 through AR-26, AR-30, AR- 32 through AR-35, AR-37, AR-39, AR-40, AR-42 and AR-43; adjust the acreage and configuration for Multifamily Residential (R3) Parcels AR -19, AR-36, AR-38, and AR-44; adjust the acreage and configuration for Public/Quasi Public Parcels (P/QP) AR -50 and AR -54; adjust the acreage and configuration for Commercial Parcels (CM U-SA and CC) AR-51 through AR-53, adjust the acreage and configuration of Parks and Recreation (P/R) Parcels AR -62 through AR-64, AR-66, and AR-67; adjust the acreage and configuration of Open Space (OS) Parcels AR -70 through AR -78, AR -80, AR-81, AR-91, AR-93, AR-95 through AR-99, AR-101 through AR-106, AR-108, AR-112, AR- 113, AR-115, and adjust the acreage for Westbrook Boulevard right-of-way and roads throughout the Specific Plan.

SECTION 3. This ordinance shall be effective at the expiration of thirty (30) days from the date of adoption.

SECTION 4. The City Clerk is hereby directed to cause this ordinance to be published in full at least once within fourteen (14) days after it is adopted in a newspaper of general circulation in the City, or shall within fourteen (14) days after its adoption cause this ordinance to be posted in full in at least three (3) public places in the City and enter in the Ordinance Book a certificate stating the time and place of said publication by posting.

PASSED AND ADOPTED by the Council of the City of Roseville this day of , 2022, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

[C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\A0F167F6-E346-45F1-A803 2 -F7EC9D7330CA\Roseville.29445.1.Ordinance_-_Rezone.doc: 3/31/22] ORDINANCE NO. 6483

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE

ADOPTING A SECOND AMENDMENT OF THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ROSEVILLE, BROOKFIELD SUNSET, LLC AND JENNIFER M.

AMORUSO, SUCCESSOR TRUSTEE OF THE AMORUSO FAMILY LIVING TRUST DATED MARCH 14, 2005 RELATIVE TO THE AMORUSO RANCH SPECIFIC PLAN (525.7 ACRES)

AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY

OF ROSEVILLE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1. In accordance with Chapter 19.84 of Title 19 of the Roseville Municipal Code (the Zoning Ordinance) of the City of Roseville, the City Council ha s received the recommendation of the Planning Commission that the City of Roseville enter into a Second Amendment of the Development Agreement by and between the City of Roseville, Brookfield Sunset, LLC, a California limited liability company (“Brookfield”), and Jennifer M. Amoruso, Successor Trustee of the Amoruso Family Living Trust Dated March 14, 2005 (“Amoruso”)(collectively, “Landowner”), pertaining to the property located within the Amoruso Ranch Specific Plan area (525.7 acres).

SECTION 2. Prior to considering the proposed Second Amendment to Development Agreement, the City Council considered the Addendum to the Amoruso Ranch Specific Plan Environmental Impact Report (EIR) certified on June 15, 2016, pursuant to the California Environmental Quality Act, California Public Resources Code Section 21000 et seq.

SECTION 3. The Council of the City o f Roseville has reviewed the findings of the Planning Commission recommending approval of the Second Amendment to Development Agreement, and makes the following findings:

1. The Second Amendment to Development Agreement is consistent with the objectives, policies, programs and land use designations of the City of Roseville General Plan and the Amoruso Ranch Specific Plan;

2. The Second Amendment to Development Agreement is consistent with the City of Roseville Zoning Ordinance;

3. The Second Amendment to Development Agreement is in conformance with the public health, safety and welfare;

4. The Second Amendment to Development Agreement will not adversely affect the orderly development of the property or the preservation of property values; and

5. The provisions of the Second Amendment to Development Agreement will provide sufficient benefit to the City to justify entering into said Amendment; 2 SECTION 4. The Second Amendment to Development Agreement, by and between the City of Roseville, Brookfield Sunset, LLC, a California limited liability company (“Brookfield”), and Jennifer M. Amoruso, Successor Trustee of the Amoruso Family Living Trust, Dated March 14, 2005, pertaining to the property located within the Amoruso Ranch Specific Plan area (525.7 acres), a copy of which is on file in the City Clerk’s Department and incorporated herein by reference, is hereby approved and the City Manager is authorized to execute it on behalf of the City of Roseville.

SECTION 5. The City Clerk is directed to record the executed Development Agreement Amendment within ten (10) days of the execution of the agreement by the City Manager with the County Recorder's Office of the County of Placer.

SECTION 6. This ordinance shall be effective at the expiration of thirty (30) days from the date of its adoption.

SECTION 7. The City Clerk is hereby directed to cause this ordinance to be published in full at least once within fourteen (14) days after it is adopted in a newspaper of general circulation in the City, or shall within fourteen (14) days after its adoption cause this ordinance to be posted in full in at least three (3) public places in the City and enter in the Ordinance Book a certificate stating the time and place of said publication by posting.

PASSED AND ADOPTED by the Council of the City of Roseville this day of , 2022, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

[C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\CECAF2A5-E8B6-4162-B4B8-4CDFC71B6A04\Roseville.29502.1.Ordinance_- _Second_Amendment_to_Development_Agreement_(525.7_acres).doc: 4/5/22] ORDINANCE NO. 6484

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE

ADOPTING A SECOND AMENDMENT OF THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ROSEVILLE, BROOKFIELD SUNSET, LLC AND JENNIFER M.

AMORUSO, SUCCESSOR TRUSTEE OF THE AMORUSO FAMILY LIVING TRUST DATED MARCH 14, 2005 RELATIVE TO THE AMORUSO RANCH SPECIFIC PLAN (148.7 ACRES)

AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY

OF ROSEVILLE

THE CITY OF ROSEVILLE ORDAINS:

2. The Second Amendment to Development Agreement is consistent with the City of Roseville Zoning Ordinance;

3. The Second Amendment to Development Agreement is in conformance with the public health, safety and welfare;

4. The Second Amendment to Development Agreement will not adversely affect the orderly development of the property or the preservation of property values; and

5. The provisions of the Second Amendment to Development Agreement will provide sufficient benefit to the City to justify entering into said Amendment; 2 SECTION 4. The Second Amendment to Development Agreement, by and between the City of Roseville, Brookfield Sunset, LLC, a California limited liability company (“Brookfield”), and Jennifer M. Amoruso, Successor Trustee of the Amoruso Family Living Trust, Dated March 14, 2005, pertaining to the property located within the Amoruso Ranch Specific Plan area (148.7 acres), a copy of which is on file in the City Clerk’s Department and incorporated herein by reference, is hereby approved and the City Manager is authorized to execute it on behalf of the City of Roseville.

SECTION 6. This ordinance shall be effective at the expiration of thirty (30) days from the date of its adoption.

PASSED AND ADOPTED by the Council of the City of Roseville this day of , 2022, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

[C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\72E59571-F75E-4195-8EC4-C470E455B736\Roseville.29503.1.Ordinance_- _Second_Amendment_to_Development_Agreement_(148.7_acres).doc: 4/5/22]

COUNCIL COMMUNICATION
CC #:
2046
File #:
0400-04-12-1 & 0400-04
Title:

Second Reading - Sierra Vista Specific Plan Parcels KT-40A & KT-40B - Development Agreement Amendments
Contact:

Kinarik Shallow 916-746-1309 [email protected]

Meeting Date: 5/11/2022
Item #: 7.11.

RECOMMENDATION TO COUNCIL
ORDINANCE NO. 6485 OF THE COUNCIL OF THE CITY OF ROSEVILLE ADOPTING A

FIRST AMENDMENT OF THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ROSEVILLE AND KV SIERRA VISTA, LLC (“BAYBROOK”) RELATIVE TO THE

SIERRA VISTA SPECIFIC PLAN AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE; and adopt ORDINANCE NO. 6486 OF THE COUNCIL OF THE CITY OF ROSEVILLE ADOPTING A SECOND

AMENDMENT OF THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ROSEVILLE AND KV SIERRA VISTA, LLC (“BASELINE P&R”) RELATIVE TO THE

SIERRA VISTA SPECIFIC PLAN AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE, for second reading and adoption.

BACKGROUND
Not applicable.

FISCAL IMPACT
Not applicable.

ENVIRONMENTAL REVIEW
Not applicable.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
Kinarik Shallow, Associate Planner
Mike Isom, Development Services Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Ordinance 6485
Ordinance 6486
ORDINANCE NO. 6485

ADOPTING A FIRST AMENDMENT OF THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ROSEVILLE AND KV SIERRA VISTA, LLC (“BAYBROOK”)

RELATIVE TO THE SIERRA VISTA SPECIFIC PLAN AND AUTHORIZING THE CITY

MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 2. Prior to considering the proposed First Amendment to Development Agreement, the City Council considered the 7 th Addendum to the Sierra Vista Specific Plan Environmental Impact Report (EIR) (SCH # 2008032115, certified May 5, 2010), pursuant to the California Environmental Quality Act, California Public Resources Code Section 21000 et seq.

SECTION 3. The Council of t he City of Roseville has reviewed the findings of the Planning Commission recommending approval of the Second Amendment to Development Agreement, and makes the following findings:

1. The First Amendment to the Development Agreement is consistent with the objectives, policies, programs and land use designations of the City of Roseville General Plan and the Sierra Vista Specific Plan;

2. The First Amendment to the Development Agreement is consistent with the City of Roseville Zoning Ordinance;

3. The First Amendment to the Development Agreement is in conformance with the public health, safety and welfare;

4. The First Amendment to the Development Agreement will not adversely affect the orderly development of the property or the preservation of property values; and

5. The provisions of the First Amendment to the Development Agreement will provide sufficient benefit to the City to justify entering into said Amendment.

SECTION 4. The First Amendment to Development Agreement, by and between the City of Roseville and KV Sierra Vista, LLC, a copy of which is on file in the City Clerk's Department and incorporated herein by reference, is hereby approved and the City Manager is authorized to execute it on behalf of the City of Roseville.

SECTION 6. This ordinance shall be effective at the expiration of thirty (30) days from the date of its adoption.

PASSED AND ADOPTED by the Council of the City of Roseville this day of 2022, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

2 ORDINANCE NO. 6486

ADOPTING A SECOND AMENDMENT OF THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ROSEVILLE AND KV SIERRA VISTA, LLC (“BASELINE P&R”)

RELATIVE TO THE SIERRA VISTA SPECIFIC PLAN AND AUTHORIZING THE CITY

MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 2. Prior to considering the proposed Second Amendment to Development Agreement, the City Council considered the 7 th Addendum to the Sierra Vista Specific Plan Environmental Impact Report (EIR) (SCH # 2008032115, certified May 5, 2010), pursuant to the California Environmental Quality Act, California Public Resources Code Section 21000 et seq.

SECTION 3. The Council of th e City of Roseville has reviewed the findings of the Planning Commission recommending approval of the Second Amendment to Development Agreement, and makes the following findings:

1. The Second Amendment to the Development Agreement is consistent with the objectives, policies, programs and land use designations of the City of Roseville General Plan and the Sierra Vista Specific Plan;

2. The Second Amendment to the Development Agreement is consistent with the City of Roseville Zoning Ordinance;

3. The Second Amendment to the Development Agreement is in conformance with the public health, safety and welfare;

4. The Second Amendment to the Development Agreement will not adversely affect the orderly development of the property or the preservation of property values; and

5. The provisions of the Second Amendment to the Development Agreement will provide sufficient benefit to the City to justify entering into said Amendment.

SECTION 4. The Second Amendment to Development Agreement, by and between the City of Roseville and KV Sierra Vista, LLC, a copy of which is on file in the City Clerk's Department and incorporated herein by reference, is hereby approved and the City Manager is authorized to execute it on behalf of the City of Roseville.

SECTION 6. This ordinance shall be effective at the expiration of thirty (30) days from the date of its adoption.

PASSED AND ADOPTED by the Council of the City of Roseville this day of 2022, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

2 COUNCIL COMMUNICATION
CC #:
2062
File #:
0400-04-17-2 & 0400-02
Title:

Second Reading - 649 Riverside Avenue – Infill Parcel 179 - Rezone Contact:

Sean Morales 916-774-5282
[email protected]

Meeting Date: 5/11/2022
Item #: 7.12.

RECOMMENDATION TO COUNCIL
ORDINANCE NO. 6489 OF THE COUNCIL OF THE CITY OF ROSEVILLE AMENDING ZONING ORDINANCE NO. 5428 OF THE CITY OF ROSEVILLE CHANGING THE

ZONING OF CERTAIN REAL PROPERTY LOCATED WITHIN THE CITY OF ROSEVILLE, for second reading and adoption.

BACKGROUND
Not applicable.

FISCAL IMPACT
Not applicable.

ENVIRONMENTAL REVIEW
Not applicable.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal E - Deliver exceptional city services

Respectfully Submitted,
Sean Morales, Associate Planner
Mike Isom, Development Services Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Ordinance 6489
ORDINANCE NO. 6489

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AMENDING ZONING ORDINANCE NO. 5428 OF THE CITY OF ROSEVILLE

CHANGING THE ZONING OF CERTAIN REAL PROPERTY LOCATED

WITHIN THE CITY OF ROSEVILLE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1. The Council of the City of Roseville has reviewed the findings of the Planning Commission recommending approval of the rezone specified herein, and makes the following findings pursuant to Section 19.86.050 of the Zoning Ordinance:

1. The rezone is in conformance with the public interest, health, safety, or welfare of the City; and

2. The rezone is consistent with the objectives, policies, programs, and land use designations of the City of Roseville General Plan.

SECTION 2. That Section 19.06.020 of the Zoning Ordinance of the City of Roseville, Ordinance No. 5428, is amended to change the zoning of that portion of certain real property located on Parcel 179 of the Infill area of the City of Roseville, as shown and so designated in Exhibit C, attached and incorporated herein by reference, is hereby rezoned from Floodway (FW) to Open Space/Floodway (OS/FW).

SECTION 3. This ordinance shall be effective at the expiration of thirty (30) days from the date of adoption.

PASSED AND ADOPTED by the Council of the City of Roseville this day of , 20 , by the following vote on roll

call: AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

COUNCIL COMMUNICATION
CC #:
2047
File #:
0209
Title:
505 Royer Street and 300 Taylor Street - Purchase and Sale Agreement Contact:

Wayne Wiley 916-774-5283 [email protected]

Meeting Date: 5/11/2022
Item #: 8.1.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council a
dopt a resolution authorizing the City Manager to execute the Purchase and Sale Agreement and all escrow-related documents and agreements with Bridge Housing Corporation regarding the real property located at 505 Royer Street and 300 Taylor Street.

BACKGROUND
The subject site is located within the Downtown Roseville Specific Plan (DTSP) and consists of two parcels totaling 1.17 acres (located at 505 Royer Street and 300 Taylor Street). The property is zoned Commercial/Special Area – Downtown (CM/SA-DT), which allows for various uses, including public/quasi-public, commercial, offices, and multifamily residential. The project site was previously owned by Placer County and was last utilized for the Placer County Superior Courthouse in 2009, prior to being sold to the City of Roseville. After acquiring the property in 2014, the City explored options for repurposing the building in support of ongoing economic development efforts; however, the necessary improvements to upgrade the building were cost- prohibitive.

There are currently no future City needs identified for this site, and the City Council declared the property as surplus on October 23, 2019. At that time, an appraisal noted that the property's highest and best use was as a vacant parcel. Accordingly, the City demolished the building in the Spring of 2021 to help incentivize future development and prepare for selling the property. An updated appraisal was prepared at that time (see Attachment 2).

Pursuant to recent State legislation (Assembly Bill 1486), the disposition of City surplus property must be offered to housing sponsors/other specified recipients before releasing a Request for Proposals (RFP) to sell a property. Consistent with this legislation and Government Code Sections 54220 et seq., starting on March 18, 2021, the City provided the required notification to the State of California’s Housing and Community Development (HCD) Department and other required entities (see Attachment 3). In response to that notification, on May 21, 2021, Bridge Housing Corporation expressed an interest, through a Notice of Interest, in purchasing the property for the development of a senior affordable housing project for residents with income
levels between 30% - 50% of Placer County Area Median Income (AMI) (see Attachment 4).

Subsequently, the City entered into negotiations, consistent with HCD guidelines, with Bridge Housing Corporation to identify the feasibility of the proposed project and has come to mutually agreeable terms regarding the disposition of the property. At this time, the City wishes to move forward with the sale of the property as outlined within this report and consistent with the Purchase and Sale Agreement (see Attachment 1), subject to approval, of HCD (as required by state law).

Project Description
The proposed development plan includes a 55,506 square-foot affordable senior apartment building at 505 Royer Street, ranging from three to five stories in height. The natural topography of the parcel has been integrated into the project design to limit impacts on the adjacent properties. The building will total three stories adjacent to the single-family residences to the west (totaling 40 feet in height) and will total five stories interior to the site closest to Dry Creek (totaling 58 feet in height). The development will include 69 units consisting of 8 studios, 60 1-bedrooms, and one 2-bedroom unit. The ground floor of the building will consist of a community room for residents, a courtyard, and property management offices that front onto Royer Street. The adjacent parcel at 300 Taylor Street will include a 61-space parking lot (resulting in a parking ratio of .88 per unit). The project site will also have a garden area with raised planter beds providing outdoor recreation space for residents (see Attachment 5).

In 2021, the City Council adopted a resolution to establish Objective Design Standards (ODS) to streamline the construction of qualified, affordable housing projects in compliance with State housing legislation. Qualified projects are subject to a non-discretionary ministerial permit process and can forego the City’s design review process and, upon ODS certification, may proceed directly to building permit and engineering permit review. As proposed, this project qualifies for the ODS process and will be evaluated against the ODS checklist, with no further design review required. In addition, because the project qualifies for the ODS process, it is exempt from the California Environmental Quality Act (CEQA). However, due to the project’s use of federal funds, National Environmental Policy Act (NEPA) requirements will apply to this project, and HCD will be the NEPA lead agency to ensure adherence to federal requirements.

Purchase and Sale Agreement
Based on negations with Bridge Housing Corporation, City staff proposes moving forward with a Purchase and Sale Agreement. The Purchase and Sale Agreement identifies the terms and conditions of the property sale. Conditions of particular note are outlined below:

1 .

Purchase Price
– The Purchaser will purchase the property at $650,000. 2 .

Escrow Deposit
– Within five days of escrow opening, the Purchaser shall deposit $35,000 as an earnest money Initial Deposit. An additional $65,000 shall be deposited in escrow within three business days following delivery of the Purchaser’s Approval Notice (120 days from the commencement of this agreement).
3 .

Liquidated Damages
- The total Initial Deposit amount shall be non-refundable in the event that the Closing fails to occur due to the default of the Purchaser. 4 .

Finance Terms
– Typical of affordable housing funding structures, the project financing will consist of various Federal, State, and local funding sources and private equity. 5 .

Closing Conditions
– The close of escrow shall occur no later than January 31, 2024, and only after Purchaser has secured and allocated full financing of the project.

Pursuant to the approval of the Purchase and Sale Agreement, the Purchaser will work on the following during the escrow: 1) receiving approval from HCD; 2) securing project financing through a variety of affordable housing funding sources; and 3) securing the necessary NEPA approvals to begin construction within a month of closing on the property .

FISCAL IMPACT
The proceeds from the property sale (totaling $650,000 less escrow fees and taxes) will be deposited into the City’s Strategic Improvement Fund (SIF) in FY2023-24 based on the anticipated close of the escrow date. No General Fund resources will be used as part of this project.

Economic Development / Jobs Created

The sale of the subject property for an affordable housing project will help catalyze downtown development and result in several hundred jobs (related to construction, service, and professional industries). The anticipated development will also result in approximately $32 million in capital investment. In addition, residents living at this site will patronize local businesses to support downtown revitalization efforts further.

Staff also finds the proposal to be in the City's best interest for the following reasons:

The disposition of the property is consistent with the State of California Housing Community Development requirements of supporting affordable housing initiatives (i.e., the project will help the City meet the RHNA obligation);
The development proposal is consistent with the intent of the DTSP; The proposed project would provide for a housing mix in the City’s downtown core; The City has no plans to utilize the property for governmental purposes, and the sale of the site would remove the City’s obligations to manage real property; and The project does not include any public financial or ownership participation and will be financed with private equity.

Based on the analysis noted within this report, Council can make the finding (per Roseville Municipal Code (RMC) Section 4.12.110(B)) that the sale and development of the property are in the best interest of the City.

ENVIRONMENTAL REVIEW
The proposed development plan qualifies for the ODS process and is therefore exempt from California Environmental Quality Act (CEQA), and no further environmental analysis is required.

The proposed project involving the sale of surplus property is not located in an area of statewide, regional, or area-wide concern and is an activity categorically exempt from CEQA as a Class 12 Exemption (State CEQA Guidelines Section 15312). The Exemption has been prepared, and no further CEQA action is required (see Attachment 6).

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal D - Enhance economic vitality

Respectfully Submitted,
Wayne Wiley, Economic Development Manager
Melissa Anguiano, Economic Development Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 22-138
Attachment 1 - Purchase and Sale Agreement
Attachment 2 - Property Appraisal
Attachment 3 - Surplus Property Notification Letter
Attachment 4 - Bridge Housing Letter of Interest
Attachment 5 - Project Design
Attachment 7 - Proof of Publication
RESOLUTION NO. 22-138

APPROVING A PURCHASE AND SALE AGREEMENT, BY AND BETWEEN THE CITY OF

ROSEVILLE AND BRIDGE HOUSING CORPORATION, AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE AGREEMENT AND ALL RELATED DOCUMENTS

ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, the City of Roseville owns 1.17 acres of real property located at 505 Royer Street and 300 Taylor Street; and

WHEREAS, after acquiring the property in 2014, the City explored options for repurposing the building in support of ongoing economic development efforts; however, the necessary improvements to upgrade the building were cost-prohibitive; and

WHEREAS, there are currently no future City needs identified for this site and the City Council declared the property as surplus on October 23, 2019; and

WHEREAS, pursuant to recent State legislation (Assembly Bill 1486), the disposition of City surplus property requires that a specific noticing and negotiation process occur, with the intent to connect developers who are interested in building affordable homes with surplus land, prior to the release of a Request for Proposals (RFP) to sell property; and

WHEREAS, consistent with this legislation and Government Code Section 54220 et seq., commencing on March 18, 2021, the City provided the required notification to the State of California’s Housing and Community Development (HCD) Department and other required entities; and

WHEREAS, Bridge Housing Corporation expressed an interest, by submitting a required Notice of Interest, in purchasing the property for the development of an age-restricted housing project for residents with income levels between 30% - 50% of Placer County Area Median Income; and

WHEREAS, staff also recommends that this disposition is in the City's best interest for at least the following reasons:

 The disposition of the property is consistent with HCD’s requirements and intent to support affordable housing initiatives (i.e. the project will help the City meet the RHNA obligation);  The development proposal is consistent with the intent of the DTSP;  The proposed project would provide for a housing mix in the City’s downtown core;  The City has no plans to utilize the property for governmental purposes and the sale of the site would remove the City’s obligations to manage real property; and  The project does not include any public financial or ownership participation and will be financed with private equity.

WHEREAS, based on the analysis noted within the staff report, Council can make the finding per Roseville Municipal Code (RMC) Section 4.12.110(B), that this disposition of the property is in the best interest of the City; and
WHEREAS, staff recommends approving and authorizing this Purchase and Sale Agreement and making the findings as described herein, which has been reviewed by the City Council.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that the Purchase and Sale Agreement and Escrow Instructions are hereby approved and the City Manager is authorized to execute said agreement, including all related escrow documents and agreements necessary to effectuate the disposition on behalf of the City of Roseville; and that we find the disposition of the property as described herein to be in the best interest of the City of Roseville; and that the City Clerk is hereby directed to record or cause to be recorded any required documents and to carry out any other action consistent with this disposition or as determined to be required by the City Manager related hereto.

PASSED AND ADOPTED by the Council of the City of Roseville this day of , 20 , by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

B-1
01757.00051/1232209v5

EXHIBIT B
Covenant or Restriction to be Recorded

Not less than 25 percent of the total number of residential units developed on the property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. Rental units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enfor ceable against any o wner who violates a covenant o r restriction an d each successor-i n-interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code.

Date: ______________________
_____________________________________[LOCAL AGENCY NAME] By: ____________________________
Name: __________________________
Title: ___________________________

Integra Realty Resources
Sacramento
Appraisal of Real Property
505 Royer Street
Roseville, Placer County, California 95678
Prepared For:

City of Roseville Economic Development Department
Effective Date of the Appraisal:

March 4, 2021
Report Format:

Appraisal Report – Standard Format
IRR ‐ Sacramento
File Number: 193‐2021‐0132

505 Royer Street
Roseville, California

Integra Realty Resources 590 Menlo Drive T 916.435.3883 Sacramento Suite 1 F 916.435.4774
Rocklin, CA 95765 www.irr.com

March 22, 2021

Laura Matteoli
Economic Development Director
City of Roseville Economic Development Department
311 Vernon Street
Roseville, CA 95678

SUBJECT: Market Value Appraisal
505 Royer Street
Roseville, Placer County, California 95678
IRR ‐ Sacramento File No. 193‐2021‐0132

Dear Ms. Matteoli:

Integra Realty Resources – Sacramento is pleased to submit the accompanying appraisal of the referenced property. The purpose of the appraisal is to develop an opinion of the market value ‐ as if vacant of the fee simple interest in the property. The client for the assignment is City of Roseville Economic Development Department, and the intended use is for to be used for establishing the market value of the subject property for marketing purposes.

The subject property represents vacant land previously improved with a county courthouse building which contained 7,900± square feet of rentable area. The property is comprised of three Assessor’s parcels encompassing 1.229± acres, or 53,657 square feet of land area. The land area is inclusive of a portion of an alley currently dividing two of the parcels. The City of Roseville has plans to abandon a portion of the alley and add the land area to the subject property. Portions of the subject are located within either a floodplain, or floodway and are subject to development restrictions. As of the date of inspection, the building was in the process of being demolished. Our analysis is based on the hypothetical condition the remaining portion of the improvements have already been demolished and we only estimate the market value of the underlying land. A more detailed legal and physical description of the subject property, as well as related market area characteristics, is contained within the attached report.

Laura Matteoli
City of Roseville Economic Development Department
March 22, 2021

Page 2 ends

The appraisal is intended to conform with the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, applicable state appraisal regulations, and the appraisal guidelines of City of Roseville Economic Development Department.

To report the assignment results, we use the Appraisal Report option of Standards Rule 2‐ 2(a) of USPAP. As USPAP gives appraisers the flexibility to vary the level of information in an Appraisal Report depending on the intended use and intended users of the appraisal, we adhere to the Integra Realty Resources internal standards for an Appraisal Report – Standard Format. This format summarizes the information analyzed, the appraisal methods employed, and the reasoning that supports the analyses, opinions, and conclusions.

Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, our opinion of value is as follows:

Value Conclusion
Appraisal Premise Interest Appraised Date of Value Value Conclusio n Market Value ‐ As If Vacant Fee Simple March 4, 2021 $650,000

Extraordinary Assumptions and Hypothetical Conditions

1. As of the date of inspection, two of the subject parcels (APN s 013‐290‐005 and ‐006) were divided by a portion of an alley. The City of Roseville has plans to abandon a portion of the alley and add the land area to the subject property. Our analysis assumes the portion of the alley will be abandoned as planned and the estimated land area of the alley is included in the subject's total land area. If at a later date the estimated land area of the alley differs significantly from what was provided, or the City of Ro seville does not abandon the portion of the alley as planned, our value conclusion presented herein could be impacte d.

1. The subject was previously improved with a 7,900 square foot county courthouse. As of the date of inspection, the building was in the process of being demolished. The estima te of market value is based on the hypothetical condit ion t he re m aining port ion of t he im prove m e nt s have alre ady been demolished and we only estimate the market value of the underlying land, with no deduction for demo l i ti on cos ts .

The use of any extraordinary assumption or hypothetical conditi on may have affected the assignment results.

The value conclusions are based on the following hypothetical c onditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the p urpose of analysis.

The value conclusions are subject to the following extraordinar y assum pt ions. A n e xt raordinary assum pt ion is an assignm e nt ‐spe cific assum pt ion as of t he e ffe ct ive dat e re garding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or c onclusions.

As of the date of value, the economy (globally, nationally, and locally) was in a state of rapid transition with a widespread expectation of the imminent onset of a significant recession.

The outbreak of COVID‐19 (coronavirus disease of 2019) in China was declared a global pandemic by the World Health Organization (WHO) on March 11, 2020. Some market deterioration had occurred shortly before this date, but the declaration by the WHO soon led to municipal and statewide orders to “shelter in place,” causing widespread closures of businesses and a massive disruption to general commerce. The status of economic Laura Matteoli
City of Roseville Economic Development Department
March 22, 2021

Page 3 ends

conditions is changing rapidly, creating great uncertainty in the markets. Our analysis of these and related issues is presented in the attached report. The value expressed herein represents our opinion based on the best available data reflective as of the date of value.

While values are always subject to change over time, we caution the reader that in the current economic climate, market volatility creates the potential for a more significant change in value over a relatively short period of time.

If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service.

Respectfully submitted,
INTEGRA REALTY RESOURCES ‐ SACRAMENTO

Lance Jordan, MAI
Managing Director
California Certificate # AG012709
Telephone: 916‐435‐3883, ext. 232
Email: [email protected]
Ligia Dejeu
Certified General Real Estate Appraiser
California Certificate # 3004823
Telephone: 916‐435‐3883, ext. 240
Email: [email protected]

Table of Contents
505 Royer Street
Executive Summary 1
General Information 2
Identification of Subject 2
Sale History 2
Pending Transactions 2
Purpose of the Appraisal 2
Definition of Market Value 2
Definition of Property Rights Appraised 3
Intended Use and User 3
Applicable Requirements 3
Report Format 3
Prior Services 4
Scope of Work 4
Economic Analysis 6
Area Analysis – Sacramento MSA 6
Surrounding Area Analysis 13
Property Analysis 32
Land Description and Analysis 32
Real Estate Taxes 41
Highest and Best Use 42
Valuation 45
Valuation Methodology 45
Sales Comparison Approach 46
Analysis and Adjustment of Sales 50
Land Value Conclusion 54
Reconciliation and Conclusion of Value 55
Exposure Time 56
Marketing Period 56
Certification 57
Assumptions and Limiting Conditions 59
Addenda
A. Appraiser Qualifications
B. Grant Deed
C. Comparable Data
D. Engagement Letter

Executive Summary 1
505 Royer Street
Executive Summary
Address
Property Type
Owner of Record
Tax ID
Land Area 1.23 acres; 53,657 SF
Zoning Designation
Highe st and Be st U se
Exposure Time; Marketing Period 9‐12 months; 12‐15 months Effective Date of the Appraisal March 4, 2021
Date of the Report March 22, 2021
Property Interes t Apprai s ed
Sale s Com parison A pproach
Number of Sal es 6
Range of Sal e Dates Sep 17 to Dec 20
Range of Prices per Usable SF (Unadjusted) $10.10 ‐ $25.12 Market Value Conclusion $650,000 ($12.11/Usable SF)
The values reported above are subject to the definitions, assum ptions, and limiting conditions set forth in the accompanying r eport of which this summary is a part. No party other than City of Roseville Econom ic Development Department may use or rely on the information, opinions, and conclusions contained in the report. It is assumed that the use rs of the report have read the entire report, including all of the definitions, assumptions, and limiting conditions contained therein.

CMU/FF/SA ‐ DT‐7 (Dry Creek Mixed‐Use District),
Commercial Mixed‐Use/Floodway Fringe/Special Area ‐
Downtown Specific Plan (DT‐7 ‐ Dry Creek Mixed‐Use
District)
Hol d for future mul ti ‐fami l y devel opment (apartments , condominiums and/or senior housing)
Fee Si mpl e
City of Roseville
013‐290‐005, 013‐290‐006, 013‐172‐023 and Alley
505 Royer St.

Roseville, Placer County, California 95678
La nd

Extraordinary Assumptions and Hypothetical Conditions

1. As of the date of inspection, two of the subject parcels (APN s 013‐290‐005 and ‐006) were divided by a portion of an alle y. T he Cit y of Rose ville has plans t o abandon a port ion of the alley and add the land area to the subject prope rt y. Our analysis assum e s t he port ion of t he alle y will be abandoned as planned and the estimated land area of the alley is included in the subject's total land area. If a t a l ater date the es ti ma ted l a nd area of the a l l ey differs significantly from what was provided, or the City of Ro seville does not abandon the portion of the alley as planned, our value conclusion presented herein could be impacte d.

1. The subject was previously improved with a 7,900 square foot county courthous e. As of the date of i ns pecti on, t he building was in t he proce ss of be ing de m olishe d. T he e st im ate of market value is based on the hypothetical condit ion t he re m aining port ion of t he im prove m e nt s have alre ady been demolished and we only estimate the market value of the underlying land, with no deduction for demo lit ion cost s.

The use of any extraordinary assumption or hypothetical conditi on may have affected the assignment results.

The value conclusions are based on the following hypothetical c onditions. A hypothetical condition is a condition, dire ct ly re lat e d t o a spe cific assignm e nt , w hich is cont rary t o what is known by the appraiser to exist on the effecti ve date of the as s i gnment res ul ts , but i s us ed for the purpose of analysis.

The value conclusions are subject to the following extraordinar y assum ptions. A n e xt raordinary assum ption is an assignm e nt ‐spe cific assum pt ion as of the e ffe ct ive dat e re garding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or c onclusions.

General Information 2
505 Royer Street
General Information
Identification of Subject
The subject property represents vacant land previously improved with a county courthouse building which contained 7,900± square feet of rentable area. The property is comprised of three Assessor’s parcels encompassing 1.229± acres, or 53,657 square feet of land area. The land area is inclusive of a portion of an alley currently dividing two of the parcels. The City of Roseville has plans to abandon a portion of the alley and add the land area to the subject property. Portions of the subject are located within either a floodplain, or floodway and are subject to development restrictions. As of the date of inspection, the building was in the process of being demolished. Our analysis is based on the hypothetical condition the remaining portion of the improvements have already been demolished and we only estimate the market value of the underlying land. A legal description of the property is within the grant deed, a copy of which is located within the addenda to this report.

Property Identification
Address 505 Royer St.

Roseville, California 95678
Tax ID 013‐290‐005, 013‐290‐006, 013‐172‐023 and Alley
Owner of Record City of Roseville
Census Tract Number 209.01 / 1

Sale History
To the best of our knowledge, no sale or transfer of ownership has taken place within a three‐year period prior to the effective appraisal date.

Pending Transactions
To the best of our knowledge, the property is not subject to an agreement of sale or an option to buy, nor is it listed for sale, as of the effective appraisal date.

Purpose of the Appraisal
The purpose of the appraisal is to develop an opinion of the market value ‐ as if vacant of the fee simple interest in the property as of the effective date of the appraisal, March 4, 2021. The date of the report is March 22, 2021. The appraisal is valid only as of the stated effective date or dates.

Definition of Market Value
Market value is defined as:
“The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

General Information 3
505 Royer Street
 Buyer and seller are typically motivated;
 Both parties are well informed or well advised, and acting in what they consider their own best interests;
 A reasonable time is allowed for exposure in the open market;  Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
 The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.” (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Definition of Property Rights Appraised
Fee simple estate is defined as, “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”
Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)
Intended Use and User
The intended use of the appraisal is for to be used for establishing the market value of the subject property for marketing purposes. The client and intended user is City of Roseville Economic Development Department. The appraisal is not intended for any other use or user. No party or parties other than City of Roseville Economic Development Department may use or rely on the information, opinions, and conclusions contained in this report.

Applicable Requirements
This appraisal is intended to conform to the requirements of the following:
 Uniform Standards of Professional Appraisal Practice (USPAP);  Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute;
 Applicable state appraisal regulations;
 Appraisal guidelines of City of Roseville Economic Development Department.

Report Format
This report is prepared under the Appraisal Report option of Standards Rule 2‐2(a) of USPAP. As USPAP gives appraisers the flexibility to vary the level of information in an Appraisal Report depending on the intended use and intended users of the appraisal, we adhere to the Integra Realty Resources internal standards for an Appraisal Report – Standard Format. This format summarizes the information General Information 4
505 Royer Street
analyzed, the appraisal methods employed, and the reasoning that supports the analyses, opinions, and conclusions.

Prior Services
USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have prepared two appraisals of the subject property for the current client. We have provided no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three‐year period immediately preceding the agreement to perform this assignment.

Scope of Work
To determine the appropriate scope of work for the assignment, we considered the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors. Our concluded scope of work is described below.

Valuation Methodology
Appraisers usually consider the use of three approaches to value when developing a market value opinion for real property. These are the cost approach, sales comparison approach, and income capitalization approach. Use of the approaches in this assignment is summarized as follows:

Approaches to Value
A pproach A pplicabilit y t o Subje ct U se in A ssignm e nt Cost A pproach N ot A pplicable N ot U t ilize d
Sale s Com parison A pproach A pplicable U t ilize d
Incom e Capit alizat ion A pproach N ot A pplicable N ot U t ilize d

In accordance with our opinion of highest and best use of the property, the value of the underlying land as vacant, exceeds the value of the property as currently improved. Thus, we only value the underlying land in our valuation. For the analysis, we use only the sales comparison approach in developing an opinion of value for the subject. This approach is applicable to the subject because there is an active market for similar properties, and sufficient sales data is available for analysis.

The cost approach is not applicable because there are no improvements that contribute value to the property, and the income approach is not applicable because the subject is not likely to generate rental income in its current state.

Research and Analysis
The type and extent of our research and analysis is detailed in individual sections of the report. This includes the steps we took to verify comparable sales, which are disclosed in the comparable sale profile sheets in the addenda to the report. Although we make an effort to confirm the arms‐length nature of each sale with a party to the transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable.

General Information 5
505 Royer Street
Inspection
Lance Jordan, MAI, conducted an on‐site inspection of the property on March 4, 2021 and March 10, 2021. Ligia Dejeu conducted an on‐site inspection on March 10, 2021.

Area Analysis – Sacramento MSA 6
505 Royer Street
Economic Analysis
Area Analysis – Sacramento MSA
Introduction
The worldwide outbreak of the COVID‐19 virus and the subsequent chain of events enacted in an effort to minimize the impacts of the pandemic are still in process and evolving. Healthcare and economic responses to this crisis are unfolding in the present, with limited quantifiable data available to gauge the future impact on the local, state and national economies. The following analysis is largely based on historical information as a means of identifying past demographic and general economic trends, both of which will be impacted as more time passes and data becomes available for analysis.

The Sacramento MSA is comprised of four counties – Sacramento, Placer, El Dorado and Yolo – and spans from the Sacramento River Delta in the west to the Sierra Nevada mountain range in the east. It represents portions of two key regions in California – the Central Valley and the Sierra Nevada mountains. The Sacramento MSA is the most populous metropolitan area in the Central Valley and the fifth‐largest in the state of California. The region’s largest city, Sacramento, is the State Capital and the seat of government for Sacramento County. Sacramento is located approximately 385 miles north of Los Angeles, 500 miles south of Oregon, 85 miles northeast of San Francisco, 105 miles west of South Lake Tahoe, and 135 miles southwest of Reno, Nevada. The region has relatively stable seismic conditions, especially compared to the San Francisco Bay Area and Southern California. Sacramento and adjoining cities rank among the lowest in the state for the probability of a major earthquake.

Population
The region has a population of over 2.37 million and has grown at an average rate of 1.1% per year for the past five years. The following table illustrates recent population trends for each county in the region. The figures are estimated as of January each year.

Placer and El Dorado Counties have led the region with growth of 1.7% and 1.2% per year, respectively. Most of this growth has occurred in the cities of Roseville, Rocklin, Lincoln and El Dorado Hills. The region’s growth is attributed in large to in‐migration of residents from other locations.

The population in the region is expected to continue growing. According to the California Department of Finance, the population in the Sacramento MSA is projected to increase to around 2,601,607 by Population Trends
County 2015 2016 2017 2018 2019 2020 %/Yr
Sacramento 1,481,751 1,496,385 1,512,721 1,527,132 1,541,301 1,555,36 51 . 0 % Placer 371,264 376,508 383,598 389,387 395,978 403,711 1.7% El Dorado 182,540 183,684 185,147 188,185 190,018 193,227 1.2% Yolo 210,801 215,016 218,039 219,990 220,896 221,705 1.0% Total 2,246,356 2,271,593 2,299,505 2,324,694 2,348,193 2,374,008 1.1% Source: California Department of Finance
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2030 and 2,914,939 by 2050. The region’s growth is expected to outpace the growth of most other metropolitan areas in California, as well as the state as a whole.

Employment & Economy
Historically, the Sacramento region has been one of the more stable employment centers in California, with a significant number of jobs in State government. The California Employment Development Department has reported the following employment data for the Sacramento MSA over the past five years.

For most areas within the state and nation, including the Sacramento MSA, unemployment declined from 2004 through 2006, increased from 2007 to 2010, and declined between 2011 to 2019.

Unemployment spiked in April 2020 as a result of COVID‐19 business closures and, although it gradually declined as restrictions were relaxed, it remained elevated through 2020. A depiction of the unemployment rate trend since 2006 is provided below.

The region experienced a significant decline in jobs in 2009, but the rate of decline moderated in 2010, and job growth was positive in each year from 2011 through 2019. Prior to the coronavirus outbreak, unemployment rates had been at historical lows in recent years. The 2017 unemployment rate of 4.5% was the lowest experienced since 2001 and the 2018 and 2019 rates further decreased, closing out 2019 with an average rate of 3.6%. However, this downward trend has shifted as a result of the current COVID‐19 crisis. In an effort to prevent the spread and impact of the virus, statewide public health Stay‐At‐Home orders were on March 19th, which directed residents to stay at home except to Employment Trends
2015 2016 2017 2018 2019 2020
Labor Force 1,052,800 1,068,400 1,075,300 1,089,600 1,101,000 1,087,700 Employment 991,200 1,011,900 1,026,400 1,048,200 1,061,400 993,900 Job Growth 20,900 20,700 14,500 21,800 13,200 (67,500)
Unemployment Rate 5.9% 5.3% 4.5% 3.8% 3.6% 8.6%
Source: California Employment Development Department

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perform essential activities necessary for the health and safety of individuals and their families. These unprecedented measures left just "essential" businesses open. The closure of non‐essential businesses has had a significant impact on employment, with some sectors of the workforce impacted more significantly than others.

The average annual unemployment rate in the Sacramento MSA was 3.6% in 2019 and remained in the 3.8%‐4.8% range during the first quarter 2020. However, the California Employment Development Department reported an unemployment rate of 14.0% in April 2020 and 13.6% in May 2020. As of December 2020, the rate has dropped to 7.9%, which is above the year ago estimate of 3.2%. This compares to rates of 8.8% for California and 6.5% for the nation in December 2020. The average annual unemployment rate was 8.6% in 2020.

It was reported 71,500 jobs were lost year‐over‐year as of December 2020, a 6.9% decline. The greatest job loss was in the Leisure/Hospitality sector with 28,400 jobs lost, followed by the Educational/Health Services sector with 15,700 jobs lost and Other Services with 10,400 jobs lost.

The local economy has transitioned from a government and agricultural center to a more diverse economy. Growing industries in the region include healthcare, technology, clean energy and life sciences. The region is a western hub for data processing, customer call centers and other corporate back office support activities. However, the Sacramento market is also largely dependent on the services sector and, as a result, it may be impacted more significantly by the economic disruption caused by COVID‐19. The degree of impact will depend at some le vel on local, state and federal government economic responses and relief aid.

The following chart indicates the percentage of total employment for each sector within the region as of December 2020.

The region’s largest employment sectors are Government, Trade/Transportation/Utilities (including retail and wholesale trade), Educational and Health Services, and Professional and Business Services.

Government jobs account for 24.5% of total employment in the region. This percentage has declined

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in the past couple of decades – government employment was near 30% of the total in 1990. Major government employers include the State of California, U.S. Government, Sacramento County, University of California – Davis and Elk Grove Unified School District. The region’s largest private sector employers are listed in the following table.

Household Income
Median household income represents a broad statistical measure of well‐being or standard of living in a community. The median income level divides households into tw o equal segments with one half of households earning less than the median and the other half earning more. The median income is considered to be a better indicator than the average household income as it is not dramatically affected by unusually high or low values. The following chart illustrates the median household income (in 2019 inflation‐adjusted dollars) for each county in the region, as well as the state of California.

Placer and El Dorado Counties exhibit the highest income levels in the Sacramento region. Household incomes in these counties are among the highest in California.

Largest Private‐Sector Employers
Employer Industry Employees
1 Kaiser Permanente Healthcare 23,485
2 Sutter Health Healthcare 18,947
3 Dignity Health (formerly Mercy) Healthcare 9,033
4 Intel Corp. Semiconductors 6,200
5 Raley's Grocery 5,915
6 Apple, Inc. Technology / Warehou 5,000
7 Amazon ‐ Sacramento Fulfillment Center Retail / Distribution 4,5 00 8 Safeway Grocery 4,242
9 Adventist Health System/West Healthcare 3,646
10 Health Net, Inc. Healthcare Plans 3,227
Source: Sacramento Business Journal, Book of Lists ‐ Sacramento Area Largest Private‐Sector Employers, July 2020

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Transportation
A significant strategic advantage of the Sacramento region is its proximity to large markets and its transportation accessibility to these markets provided by extensive highway, rail, water and air systems.

The Sacramento region has over 800 miles of maintained state highways. The hub of freeways in the region makes the Sacramento area a good center for freight distribution. U.S. Highway 50, Interstate 80, and the Capital City Freeway are the principal routes for commuters living in the densely populated eastern suburbs. Commuters from the north and south of Sacramento travel on Interstate 5 and State Highway 99. State Highways 65 and 70 link Placer County to Yuba and Sutter Counties to the north. Interstate 5 provides a direct route to Redding, Oregon and Washington to the north and Los Angeles to the south. Interstate 80 extends travel to Nevada and Utah to the east and the San Francisco Bay Area to the west. Lake Tahoe and Nevada are accessible within a couple hours traveling east on U.S. Highway 50, which originates in Sacramento. State Highway 99 provides access from the upper Sacramento Valley through the San Joaquin Valley to the south.

The main public transit system in the Sacramento area is operated by Sacramento Regional Transit District (SacRT), with additional service provided by other local public and private transit operators.

SacRT covers nearly 400 square miles and transports approximately 23 million passengers annually by means of 205 buses, 23 shuttle vans and 97 light rail vehicles. Light Rail began operation in 1987 along a two‐pronged route linking Downtown Sacramento with populous suburbs to the east and north. In 2003 and 2004, SacRT completed extensions to the Meadowview area in South Sacramento (Blue Line) and Sunrise Boulevard in Rancho Cordova (Gold Line). In 2005, an eastward extension to the city of Folsom was completed. In 2012, SacRT completed the first phase of the Green Line to the Airport light rail extension with the opening of the Green Line to the River District. This 1.1‐mile light rail extension to the north connected Downtown Sacramento to the River District. In August 2015, SacRT opened the second phase of the Blue Line project, extending the line 4.3 miles south to Cosumnes River College.

The Sacramento region has access to a number of railroads. The north‐south and east‐west main lines of the Union Pacific Railroad intersect in Sacramento; Sacramento also has access to the Burlington Northern Santa Fe Railway as a result of the merger of Union Pacific and Southern Pacific in 1996.

Union Pacific’s major freight classification facility for Northern California, Nevada and Oregon is located in Roseville (Placer County). Amtrak provides daily passenger service from Sacramento. The Capital Corridor system provides high‐speed commuter rail service from Roseville to San Jose.

The region has good water transportation capabilities. The Port of Sacramento is a deep‐water port located 79 miles northeast of San Francisco in the city of West Sacramento, serving ocean‐going vessels handling a variety of cargo types. The 30‐foot depth of the channel, along with extensive rail and truck cargo handling facilities, make the Port highly productive for long distance shipping. The Port is equipped for handling bulk cargo and some agricultural and forest products.

Finally, the region includes several air transport facilities. Most notably, Sacramento International Airport is served by 12 passenger carriers and numerous cargo carriers. Major expansions of the terminals and parking facilities were completed between 2004 and 2012. In 2017, 10.9 million passengers traveled through Sacramento International Airport; 12.05 million passengers traveled in Area Analysis – Sacramento MSA 11
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2018, and 13.17 million passengers traveled in 2019. Service declined significantly in 2020 as a result of the coronavirus outbreak and restrictions on travel, with an estimated 5.58 million passengers. The region is also served by Sacramento Executive Airport, Lincoln Regional Airport, McClellan Airfield, Mather Airport (the latter two being former Air Force Bases) and several smaller airports and airfields.

Recreation & Culture
The Sacramento region offers innumerable recreational and cultural opportunities. The American River Parkway offers 5,000 acres of recreation area along both sides of the river for 30 miles, with Folsom Lake situated at the eastern end. The Sacramento‐San Joaquin Delta has over 1,000 miles of waterways. The rivers and lakes within the Sacramento Area offer boating, fishing and water‐skiing opportunities. In addition, numerous parks and golf courses are located throughout the region.

Professional sports teams in Sacramento include an NBA team (the Sacramento Kings) and a Triple‐A minor league baseball team (the River Cats).

Cultural attractions in the region include the Old Sacramento Historic District, California State Railroad Museum, Crocker Art Museum, Historic Governor’s Mansion, Sutter’s Fort State Historic Park and Sacramento Zoo. Sacramento is home to several theaters and performing arts centers offering world‐ class shows. Annual events in Sacramento include the California State Fair and the Music Circus.

In terms of higher education, the region’s largest universities are the University of California Davis and California State University, Sacramento. Six community colleges are located in the region, including Sierra College, American River, Cosumnes River, Folsom Lake, Sacramento City and Woodland Community College. Several private colleges are located in the area, as well as satellite campuses of colleges headquartered elsewhere. The region also contains numerous vocational schools.

Other recreational and cultural opportunities are available within a short drive of the Sacramento area. To the west are the San Francisco Bay Area, the Napa Valley wine country, the coastal redwood forests, and the beaches of the Pacific Ocean. To the east are Lake Tahoe and the Sierra Nevada Mountains, which are home to more than a dozen snow‐skiing resorts. Legalized casino gambling is available in Nevada, as well as several tribal casinos in the Sacramento region.

Conclusion
The Sacramento region is the fifth‐largest metro area in California, with average population growth of

1.1% per year over the past five years. The area’s advantages include a diverse economy, mild climate, seismic stability, ample recreational and cultural opportunities, and expansive transportation systems.

Further, the region offers greater affordability compared to the Bay Area and Southern California.

After a period of contraction in the economy and real estate markets around 2008‐2010, the region experienced improvement in employment and economic conditions over the past few years and most real estate sectors showed signs of expansion. However, employment conditions declined sharply in April 2020 following stay‐at‐home mandates and non‐essential business closures, and the near‐term outlook is uncertain as a result of the COVID‐19 pandemic. A better understanding of the potential impacts will be gained as economic policies aimed at financial relief and resuming business operations are implemented. The historical stability of the local economy and emergence from past recessions bodes well for the long‐term outlook for the region.

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Area Map

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Surrounding Area Analysis
Introduction
This section of the report provides an analysis of the observable data that indicate patterns of growth, structure and/or change that may enhance or detract from property values. For the purpose of this analysis, a neighborhood is defined as “a group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises.

Neighborhood Boundaries
The boundaries of a neighborhood identify the physical area that influences the value of the subject property. These boundaries may coincide with observable changes in prevailing land use or occupant characteristics. Physical features such as the type of development, street patterns, terrain, vegetation and parcel size tend to identify neighborhoods. Roadways, waterways and changing elevations can also create neighborhood boundaries.

The subject property is located within the downtown area of the City of Roseville. The subject’s neighborhood can generally be described as Interstate 80 to the east, Douglas Boulevard to the south, Foothills Boulevard to the west, and Pleasant Grove Boulevard to the north.

Access and Linkages
The subject property is located at the southwest corner of Royer and Taylor Streets, north of Douglas Boulevard. Royer and Taylor Streets are interior streets. Primary neighborhood thoroughfares in the subject’s vicinity include Washington Boulevard, Main Street, Church Street, Atlantic Street, Douglas Boulevard and Riverside Avenue. The latter three thoroughfares connect with Interstate 80 within two miles of the subject. Interstate 80 is a major east‐west freeway connecting the area with Sacramento and San Francisco to the west and Reno, Nevada to the east. South of the subject property are railroad tracks used by Union Pacific for freight transport and Amtrak for passenger transport. The Union Pacific Rail yards are located south of the subject, east of Foothills Boulevard. Amtrak’s passenger rail station is located on Pacific Street in Downtown Roseville southwest of the subject and provides daily service to Sacramento, Davis, Martinez, and Emeryville to the west; to the east, the trains connect with Colfax, Truckee and Reno and ultimately reach Chicago, Illinois.

Public transportation in the neighborhood is available via Placer County Transit (PCT), a regional bus system that serves Roseville, Granite Bay, Loomis, Rocklin, Auburn, and Colfax. Currently, the PCT has a free transfer agreement with all of the Sacramento Regional Transit buses and trains.

Demographic Factors
A demographic profile of the surrounding area, including population, households, and income data, is presented in the following table.

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As shown above, the current population within a 3‐mile radius of the subject is 113,780, and the average household size is 2.6. Population in the area has grown since the 2010 census, and this trend is projected to continue over the next five years. Compared to the City of Roseville overall, the population within a 3‐mile radius is projected to grow at a slower rate.

Median household income is $83,253, which is lower than the household income for the City of Roseville. Residents within a 3‐mile radius have a lower level of educational attainment than those of the City of Roseville, while median owner occupied home values are considerably lower.

Land Uses
The subject neighborhood contains a mix of residential, commercial and community uses. The neighborhood is estimated to be over 90% built‐out. The immediate vicinity of the subject represents the Downtown/Historic Old Town District of Roseville. Downtown is located south of the railroad tracks primarily along the Vernon Street corridor, while, Historic Old Town is located north of the railroad tracks and is bounded by Main Street to the north, Pacific Street to the south, Washington Boulevard to the west and Lincoln Street to the east.

The subject’s immediate area and just north, has enjoyed recognition as a revitalized historic commercial district and benefits from its proximity to significant mature and new residential development, as well as regional transportation routes. The subject’s neighborhood is primarily composed of mature retail development with supporting residential and office development interspersed throughout. The residential development in the neighborhood is generally targeted toward median‐income buyers and is primarily located south and west of the subject property. The Surrounding Area Demographics
2021 E st im at e s 1‐Mile Radius 3‐Mile Radius 5‐Mile Radius Rose ville , CA
(city) Placer County, CA
Population 2010 14,377 105,594 283,914 118,788 348,432
Population 2021 14,304 113,780 314,738 138,841 402,773
Population 2026 14,408 117,480 326,826 144,989 421,090
Compound % Change 2010‐2021 0.0% 0.7% 0.9% 1.4% 1.3%
Compound % Change 2021‐2026 0.1% 0.6% 0.8% 0.9% 0.9%
Households 2010 5,744 40,392 105,405 45,024 132,627
Households 2021 5,998 44,183 116,846 52,937 154,777
Households 2026 6,132 45,812 121,368 55,421 162,359
Compound % Change 2010‐2021 0.4% 0.8% 0.9% 1.5% 1.4%
Compound % Change 2021‐2026 0.4% 0.7% 0.8% 0.9% 1.0%
Median Household Income 2021 $56,892 $83,253 $87,733 $96,142 $95,620 Avera ge Hous ehol d Si ze 2.3 2.6 2.7 2.6 2.6
College Graduate % 25% 34% 35% 42% 40%
M e d i a n A g e 4 04 03 94 04 3
Owner Occupied % 48% 59% 65% 66% 71%
Renter Occupied % 52% 41% 35% 34% 29%
Median Owner Occupied Housing Value $367,605 $439,838 $454,845 $515 ,988 $563,277 Median Year Structure Built 1967 1985 1989 1996 1994
Avera ge Travel Ti me to Work i n Mi nutes 25 27 29 28 30 Source: Environics Analytics
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quality and condition of the homes in the subject’s neighborhood are considered average relative to other areas of Roseville.

In order to support private and public investment in the area, the City of Roseville has focused on several public improvement projects that will benefit the subject neighborhood. Additionally, the City has been actively working on the Downtown Vernon Street and Historic Old Town Specific Plan Project, which will help implement the Downtown Vision created by planners in early 2006. The Roseville City Council adopted the Downtown Specific Plan on April 1, 2009. The project area is 160 acres and includes Vernon Street, Historic Old Town, Royer Park, Dry Creek and the Oak Street/ Douglas corridor. The goals of the project are to improve connectivity within Downtown as well as between Downtown and its surroundings; identify land uses and development standards responsive to market opportunities and that facilitate quality architecture and urban design; reinforce identity through the establishment of character districts and gateway elements; create and enhance public places that support community activity, spirit and involvement; and promote arts, culture, heritage, entertainment and education.

Two prominent structures that have been completed along Vernon Street in Downtown Roseville are the Civic Plaza Office Complex and Parking Garage project. These developments are located between Vernon and Oak Streets at Grant Street. The parking portion was completed in 2007 and is a five‐level, approximately 550‐space free public parking garage. The parking facility also includes 5,000 square feet of ground floor retail space fronting Vernon Street that is occupied by Roseville Arts. As the neighborhood’s first multi‐level parking facility, this structure was constructed to meet parking demands and provide supplementary parking inventory into the future. The Civic Plaza Office Complex consists of a four‐story, 50,000± square foot office building with ground floor retail space located at 116 S. Grant Street. Construction of this building was ultimately completed to warm shell condition in early 2016. The building remained vacant for several years before the Roseville City Council approved the purchase of the property in December 2019 and will be partially occupied by the City utility Roseville Electric.

The Vernon Street Town Square project commenced construction in August 2012 and was completed in August 2013. The Vernon Street Town Square is located adjacent to the Roseville Civic Center and is bordered by Oak, S. Grant, and Vernon Streets. The purpose of the Town Square project was to provide a public space that can accommodate a variety of events and activities year‐round. The space provides landscaping and lighting, event amenities (stage, convertible spaces, etc.), an interactive water fountain, signage and other improvements. The total cost was estimated at $4.5 million.

Current events include, but are not limited to, free concerts, Wine down at Town Square, Comedy Night, Movie Night Sing‐Along, Food Truck Mania and Friday Flicks.

Another four‐story, 83,000± square foot mixed‐use building (ground floor retail and office on the upper floors) was completed in late 2016. The building is located at 316 Vernon Street and replaces the old city hall building. The new building houses a large portion of the city staff and adult education/continuing education classes for Sierra College. Construction of a second parking garage at the corner of Oak and Washington Streets was completed and opened for operation in mid‐June 2018.

This garage has seven‐stories with 429 parking spaces, bringing the total garage parking to nearly 1,000 spaces.

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Other recently completed and proposed projects include the construction and relocation of the existing fire station from 401 Oak Street to the corner of Oak and Lincoln Streets, the Bridges and Trail project, The Lohse Apartments and a more recently proposed project in the historic downtown Roseville area, Junction Crossing. A summary description (some verbatim from city documents) as to what is proposed, and some design drawings are as follows:
 “The relocation of Fire Station #1 from the intersection of S. Grant Street and Oak Street will provide an approximately 3‐acre development site. Integrated into the development is a creek walk intended to connect Douglas Blvd. to the current Icehouse bridge location. From there you will be able to gain access to the fully completed bike trail system that will take you all the way out to Sierra College Blvd. This level of development will then help to activate the Downtown! As part of the Downtown Specific Plan the relocation of Fire Station No. 1 was supported by the community. An evaluation of where to site a new station was performed and the intersection of Oak and Lincoln Street was selected.” Construction of the new fire station was recently completed and opened June 2018

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 “The Downtown Bridges and Trails Project continues implementation of that vision by providing three important bridge connections across Dry Creek and continuation of the Dry Creek/Miners Ravine trail system. The project implements the Downtown Vision by improving connections between Royer Park and the Vernon Street/ Town Squa re area, and by closing the gap in the Class I trail system.” As of September 2019, construction of all three bridges was completed.

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 The Lohse Apartments: The Lohse Apartments is a four‐story, mixed‐use project located at 623 Vernon Street. The project includes 58 affordable housing units with approximately 2,900 square feet of ground‐floor retail space. The property also includes 60 underground and four surface parking spaces. Project amenities include a community room, computer area, lounge area and laundry room and outdoor play facilities in a central courtyard. The project is comprised of one‐, two‐ and three‐bedroom units ranging in size from 557 to 1,095± square feet. The project was developed by Mercy Housing California and was primarily funded through affordable housing tax credits. The project was completed and held its grand opening in early 2019.

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 Junction Crossing: “The applicant requests approval of a Minor Design Review Permit to allow a four‐story, approximately 80,460 square foot, 80‐unit affordable multi‐family residential building, with associated parking for St. Anton’s Communities. A Tentative Subdivision Map is also requested to allow the merging and resubdivision of 11 parcels, totaling approximately

1.38 acres, into two parcels (Parcel 1 = 0.07 acres, Parcel 2 = 1.31 acres), with right‐of‐way abandonments and dedications, consistent with Government Code Section 66499.20.2.”

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 Main Street Plaza: A 65‐unit affordable housing project located at the intersection of Washington Boulevard and Main Street. The project will offer one‐, two‐ and three‐bedroom unit types and ground‐floor retail. Construction commenced in the first quarter of 2019 and the project was completed in March 2021.

The following map illustrates the projects discussed and their location in relation to the subject.

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Note: Subject is identified by the red star
Community Uses
There are several community uses in the neighborhood, such as schools, churches, parks, and recreational and cultural facilities. Parks near the subject property include William L. Taylor Park to the east and Royer Park to the south. The subject is also proximate to numerous religious facilities of various faiths. Bradford Woodbridge Fundamental Elementary School is located northwest of the subject and Roseville High School is located northeast of the subject. Additionally, the Placer County Fairgrounds and All American Speedway are located to the northwest.

Outlook and Conclusions
In summary, a balance of residential and supporting commercial and community uses characterize the area. The historic and downtown Roseville areas are experiencing some revitalization of older properties and redevelopment and these trends are expected to continue for the next few years.

However, market participants are cautious at this time due to the expected recession resulting from COVID‐19.
2 3 4
65 7
8 9LEGEND
1‐Parking garage completed in
2007
2‐116 S. Grant St.
3‐Vernon Street Town Square
4‐Civic Center
5‐316 Vernon St.
6‐Parking garage (200 Oak St.)
7‐New Fire Station (80 Lincoln St.)
8‐The Lohse Apartments
9‐Junction Crossing
10‐Main Street Plaza
1 10
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Surrounding Area Map

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COVID‐19 Impact on Current Valuations
Transaction indicators are the best measure of any impact on values due to COVID‐19. Given the unique nature and recency of this event, minimal activity is evident from which to draw benchmark comparisons based on transactional data. In the absence of transaction data, market and property specific empirical data can be gleaned to assist in estimating current value. In this initial phase of the pandemic, early emerging trends include:

As of Monday, January 25, 2021, Governor Newsom lifted the State of California’s Stay At Home order effective immediately. California reverted to the previously established color tiered system as each county was moved back to the Purple Tier – Widespread. The four‐tier colored system assists in the gradual reopening of the economy as movement through each tier is intended to reintroduce activities and sectors in a phased manner with necessary modifications to protect public health, and result in a lower risk for COVID‐19 transmission and outbreak in a community.

The four‐tier color‐coded system was originally introduced in September 2020; however, a new system was implemented as ICU capacity across the state was anticipated to reach new lows not yet experienced since COVID‐19 was declared a pandemic back in Marc h of 2020. In response, Governor Newsom introduced a statewide Stay at Home order on December 5, 2020 that resulted in businesses deemed as nonessential by the State of California to once again close, with strict limitations for businesses that remained opened. Governor Newsom’s directive on January 25, 2021 is a significant step in reopening California’s economy and overall response to the COVID‐19 pandemic.

Under the Purple Tier, the following sectors are allowed to resume and/or continue operations with the following modifications in conjuncture with state mandated social distancing, masking when applicable, and increased surface sanitization:

Property Level
Operating
impairment
 Nonpayment
of Rent
 Increased
Vacancy
Liquidity
duration
Fundamental
Economic
Fear
Re‐Pricing
Risk (Debt
and Equity)
Reduction in
Listing
Activity
Market Level
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 Retail: Allow indoor operation at 25% capacity, and 50% of capacity for standalone grocery stores. Additionally, special hours should be instituted for seniors and others with chronic conditions or compromised immune systems.
 Shopping centers: Allow indoor access at 25% capacity. Additionally, special hours should be instituted for seniors and others with chronic conditions or compromised immune systems.  Hotels and lodging: Allow for COVID‐19 mitigation and containment measures, treatment measures, provide accommodation for essential workers, or providing housing solutions, including measures to protect homeless populations. As well as leisure travel is now open.  Entertainment production: Industries, studios, and other related establishments such as establishments that provide content for professional broadcast can operate.  Libraries: Are now allowed open for indoor activities with a maximum 25% capacity  Personal Care Services: Nail salons hair salons, barbershops, electrolysis operations, etc. can operate indoors.
 Professional sports: Can take place without live audience  Restaurants: Are open for to‐go/ take out orders, as well as outdoor seating under tents.

Indoor seating is still prohibited. Additionally, Bars, pubs, breweries, and distilleries offering sit‐down meals may operate outdoors as long as no more than two sides are enclosed with non‐permeable walls.
 Schools: schools that have reopened for in‐person instruction, either under a waiver or while Sacramento County was in Red Tier 2 (Sep. 29 – Nov. 10, 2020) are permitted to continue to conduct in‐person instruction with mitigation measures in place. Schools that have no reopened must wait until they are eligible again, either when Sacramento County returns to Red Tier 2 for at least two weeks or through State of California approved process for school reopening.
 Family Entertainment Centers: bowling alleys, miniature golf, batting cages, etc.  Gyms and Fitness centers
 Movie theaters: Maximum 25% capacity or 100 people, whichever is fewer  Museums, zoos and aquariums
 Places of Worship: Maximum 25% capacity or 100 people, whichever is fewer  Playgrounds, dog parks, skate parks, and recreational facilities Based on discussions and interviews with a wide range of market participants, a variety of factors and concerns are prevalent in the market that will likely have a negative impact broadly on CRE values, depending on property type and region. However, the broader market will experience a myriad of issues based on survey respondents including:

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Each of the above observations provides empirical evidence that the market has shifted downward and real estate values will likewise be impacted, but to what degree is not certain.

Few experts or economists at this point are willing to state a threshold duration at which point everything will return to normal quickly, versus a duration of limited economic activity that spirals into worldwide recession. At the moment, the prevailing hope of the world is that science miraculously manufactures a cure, while in the meantime, social activity has slowed worldwide.

Integra Current Valuation Framework (Q2 ‐ present)
The preceding property market analysis focuses on recent historic trends before the physical and social impacts of the COVID‐19 pandemic were revealed in the U.S. in early March 2020. What we do know with reasonable certainty:
 Q2‐Q3 economic performance was dismal, though employment figure s have since improved somewhat.
 Shelter‐in‐Place and Stay‐at‐Home executive orders and phased reopenings will have a profound impact on GDP with rising unemployment damaging forward economic performance for six months at a minimum.
 The Federal Reserve's attempt to lower nominal rates was thwarted by lenders setting floors on spreads. Congress subsequently approved a $2 Trillion stimulus package on March 27, 2020. This provided some economic relief, but businesses, owners, investors, and bankers need to support payroll retention and an aggressive program of economic goodwill throughout all sectors of the economy.

Everything forward beyond those three known factors remains subject to considerable risk/uncertainty. Our recent surveys of market participants indicate a focus in the following areas impacting value:

Uncertainty
 Restricted access to
capital
 Unemployment concerns
(increasing to 15% in Q2)
 GDP decline (‐30% in Q2)
 Duration of crisis
Lender Concerns
 DSCR are impacted based
on changes in rental
revenue and collections
 Loan covenants could
trigger due to changes in
near‐term value
 Borrowers are concerned
about their tenants'
ability to pay rent
 Borrowers are concerned
about their ability to keep
their loans current
 Lenders are also
concerned about the
need for loan
modifications or work
outs
Publicly Traded Securities
 Stock indexes were down
approximately 25% to
30% but have since
rebounded
 REIT pricing was down
approximately 25% but
have since rebounded
 Crude oil was down
approximately 40% but
has since partially
rebounded
Return Requirements
 Interest rates may stay in
the 4% ‐ 4.5% range,
despite the Federal
Reserve’s reduction
efforts. Banks tightly
manage their capital
reserves and ratios, and
therefore are requiring
higher spreads for current
risk profile
 Durability of Cash Flow
forces (new) equity
investors to reprice risk.

Standby (available,
uncommitted) equity now
has to be patient until a
clearer “path forward”
emerges
 Impact on cap rates
would be upward
Surrounding Area Analysis 27
505 Royer Street
 Impacts could (should) vary by property type, class, and location  Cost of capital (both debt and equity) is increasing, but at different rates for different asset classes
 Declines in property operations/forecasts (NOI) vary in duration based on property type, class; location, and tenant durability under potential recessionary pr essures  Increases in cap rates (and normalized yields) will vary by property type, class and location as will the underlying assumptions on stabilized or periodic cash flow  Marketing times for most assets will increase. To a large extent, deal flow was halted based on the sheer physical constraints imposed on property showings/due diligence, etc. under distancing restrictions. As these restrictions are lifted, the market is showing signs of activity, some pent up demand and increased interest, although commercial property deal flow remains muted.

Impact by Property Type, Class & Location
Below is a graph from Greenstreet Advisors plotting the sensitivity (and risk) associated with various property types with the negative impact on value being greater for those assets with greater sensitivity. Those assets relating to essential business operations (grocery, medical, distribution) are less affected than for example lodging and malls where social distancing is challenging.

Cost of Capital/Liquidity
The cost of capital, both for debt and equity, had been at near historic lows through early 1Q20.

Borrowers had a myriad of options from a variety of capital sources. As the crisis began to unfold in early 2020, treasury rates were moving down as the Fed sought to keep the market liquid. When it became clear the global crisis had landed in the United States, the Fed moved rates to near zero.

Many lending institutions instituted floors (spreads widened) because the fixed costs of doing a deal had to be covered.

Surrounding Area Analysis 28
505 Royer Street
As lenders came to grips with the severity of the economic outlook, many pulled back from the market altogether while others reacted by raising interest rates, lowering loan to values, increasing reserve requirements, or a combination thereof. Some lenders are “out” while others remain in the market.

Clearly, there are fewer options in the market and those options are more expensive. The rise in cost varies notably by property type with agency lenders and HUD determined to provide liquidity to the multifamily market while at the other end of the spectrum, financing a hotel at this point is challenging.

The rising cost of debt and equity and its impact on capitalization rates is illustrated below:

An asset for example that historically attracted debt at 3.75 percent and equity (cash on cash) at 5 percent would see a rise in overall capitalization rate of 83bps (6.65% versus 5.82%) if the cost of debt rises to 4.25 percent (50 bp increase) and equity rates move to 7 percent (40 percent increase). All else equal, the rise in the overall rate would equate to a drop in value (potential market conditions adjustment) of 14 percent (.0083 / .0582).

Declines in Property Operations/Forecasts
The lodging, retail, student housing and senior sectors are expecting to suffer the greatest. Once again, this varies by location and type. Restaurant retail is generally viewed as having high risk but is expected to rebound quickly as pent‐up demand explodes when social distancing requirements loosen. Grocery retail is performing well with big box stores setting record sales per square foot.

Apartments should fare well but once again, varying by type and location depending on the tenant base employment and its ability to weather the crisis. Industrial distribution facilities are expected to perform well while multi‐tenant industrial with non‐essential businesses may struggle.

There is an expectation in the market that, for many retail centers in particular, tenants will not be paying rent. Without customers, particularly in states with stay‐at‐home orders, there simply is no revenue available. Tenants and owners alike are reviewing force majeure clauses in their leases.

Rent projections are being held flat in modeling many cash flows going forward with the length of time dependent on the asset type.

3.00% 5.00% 7.00% 9.00% 11.00% 13.00%

3.50% 5.11% 5.71% 6.31% 6.91% 7.51% 8.11%

3.75% 5.22% 5.82% 6.42% 7.02% 7.62% 8.22%

4.00% 5.33% 5.93% 6.53% 7.13% 7.73% 8.33%

4.25% 5.45% 6.05% 6.65% 7.25% 7.85% 8.45%

4.50% 5.57% 6.17% 6.77% 7.37% 7.97% 8.57%

4.75% 5.69% 6.29% 6.89% 7.49% 8.09% 8.69%

5.00% 5.81% 6.41% 7.01% 7.61% 8.21% 8.81%
Interest Rate
OAR Sensitivity Matrix ‐ 70% LTV/25Yr AM
Equity Dividend Rate
Surrounding Area Analysis 29
505 Royer Street
Premiums on Capitalization Rates
While many deals have fallen out of contract, other deals are still closing. Some are closing at their pre‐crisis contract price levels while many deals are being re‐traded in the market with discounts influenced by property type, location and buyer/seller motivations.

As the transaction market solidifies, the impact on capitalization rates will become more clear. The OAR sensitivity matrix presented earlier can be viewed as a potential leading indicator. Some market participants believe the answer to market value lies in the capitalization rates while others believe rates are not moving – only net operating income in the short run is being impacted. Once again, the answers vary by property type and location.

Normalization of Yields
All yield capitalization is based on forward forecasting of property performance to generate a current cash flow, and future forecasted reversion. Therefore, the timeframe for the market to reach a point of pricing transparency to “return to par” is the critical assumption in the yield cap.

The longer or less likely the assumptions are, the higher the near‐term yields. Valuation theory and past downward economic cycles suggest a shortening of the holding period and a normalization of “overall yield” applied over the shorter holding period.

As the transaction market solidifies, the impact on investment rates and relationship of assumption risk to market risk will become more clear.

Marketing and Exposure Time
At the present time, there is consensus of declining market demand in CRE transactions, due to market conditions ensuing from COVID‐19. It is natural to assume that marketing time on properties either for sale or lease, will be extended for most assets. Comparing recent pre‐COVID‐19 market time (perhaps the best) to the banking crisis of 2008/2009 (perhaps the worst) can glean insight to potential market times going forward.

Sector Months on Market
March 2008‐09
Months on Market
March 2018‐19
Change in Months % Change Peak to
Trough
Office 29.6 14.8 14.8 100%
Retail 15 11.4 3.6 32%
Industrial 19.6 6.7 12.9 192%
Average 21.4 11.0 10.4 95%
Source: Costar – data presented in Months
Marketing time increased substantially in the last economic crisis of 2008‐2009 from the prior boom with an average of 21 months for major property classes at the bottom of the market. Market times for the trailing 12 months preceding the COVID‐19 crisis averaged 11 months. We note these are national averages with well located, better quality assets having substantially lower market times.

Surrounding Area Analysis 30
505 Royer Street
Based on this historical perspective, exposure time could potentially double from current levels. This would have to be tempered recognizing that the depth and duration of this current crisis is health centric and may return to more recent norms when a resolution becomes apparent.

Conclusion
Based on the above information, which is empirical more so than transactional, it is clear the market has changed and valuation parameters must be modified. Many market participants believe the current disruption in the market is operational in nature with the impact on asset pricing limited to cash flow short falls until the market returns to “normal.” Others believe repricing risk exists due to the cost of capital (debt and equity) as well as a rethinking of CRE investments.

The following chart represents our understanding of market sentiment regarding operational and repricing risk by property class. Assets in the lower left portion of the chart reflect low near‐term cash flow loss expectation and little longer‐term repricing risk while the opposite is true for assets in the upper right corner. And as noted throughout, there are various risk profiles within each property type displayed.

Considering the subject’s relative sensitivity to the COVID‐19 risks as of the effective date of the valuation, we rate the relative risks of the subject as of the effective date in the following table, which is also considered in the valuation of the subject property.

O Lodging
O Student Housing
O SNF O Restaurant
O Strip Center
O Non‐essential Industrial
O General office
O Multi family
O Self storage
O Grocery Retail
O Distribution
O Net Leased Essential Business
O Medical office
O Data centers
Longer term Asset Repricing Risk
Property Operations/Cash Flow Risk
Surrounding Area Analysis 31
505 Royer Street
Risk Analysis
Property Type Sensitivity to Risk Low – Market participants expect multifamily to be among the property sectors least impacted
by the pandemic and quickest to recover post‐
pandemic. This has shown to be true over the
last 12 months.

Property Location Sensitivity to Risk Low – Although unemployment continues to effect tenant’s abilities to pay around the
country, the Sacramento MSA has remained
relatively strong, and most tenants are keeping
up with payments.

Cost of Capital Impact/Risk Low – Multifamily interest rates are low, and financing is still readily available for assets with
durable cash flows.

Property Operations Risk Low – There is some risk of short‐term rent loss should tenants experience a decrease in
income resulting from a job loss/furlough and
are unable to pay rent. However, the initial
impact of job losses due to the pandemic has
subsided and while some landlords/owners are
focusing on maintaining occupancy and have
been negotiating deferred rent agreements for
these tenants, overall, rental rates have
increased over the past 12 months.

Land Description and Analysis 32
505 Royer Street
Property Analysis
Land Description and Analysis
Land Description
Land Area 1.23 acres; 53,657 SF
Land Area (Usable) 1.23 acres; 53,657 SF
Source of Land Area Public Records
Pri mary Street Frontage Royer
Shape Irregular
Corner Yes
Topography Gently Sloping
Drainage No problems reported or observed
Environmental Hazards No problems reported or observed
Ground Stability No problems reported or observed
Flood Area Panel Number 06061C‐1031H
Date November 2, 2018
Zone X and AE
Description Outside of 500‐year floodplain and within 100‐year f loodplain Insurance Required? Yes
Zoning; Other Regulations
Zoning Jurisdiction City of Roseville
Zoning Designation CMU/FF/SA ‐ DT‐7 (Dry Creek Mixed‐Use Distric t) Description Commercial Mixed‐Use/Floodway Fringe/Special Area ‐ Downtown Specific Plan (DT‐7 ‐ Dry Creek Mixed‐Use Legally Conforming? Appears not to be legally conforming Zoning Change Likely? No
Purpos e a nd Permi tted Us es The s ubj ect i s l oca ted i n the Downtow n Specific Plan area. The purpose of the Downtown Specific Plan is to direct public and private development consistent with the community vi sion for the downtown specific plan area.

Redevelopment within the older areas of the City of Roseville p resents unique development challenges. The Downtown Speci fi c Pl an Downtown Code i s therefore a comprehens ive document that provi des detai l ed performance criteria and development standards that are intende d t o facilit at e de ve lopm e nt w hile re cognizing t he area’s uni que character. The s ubj ect i s l ocated wi thi n the Dry Creek Mixed‐Use district (DT‐7), which is a Commerci al Mi xed‐Us e zone. The Commerci al Mi xed‐Us e zones are intended to promote a variety of commercial and hi gher i ntens i ty res i denti al us es and the fl exi bl e s i ti ng of other uses that are typically considered to be compatible with commercial development. It is the intent of th e CMU zoning dist rict t o e st ablish a m ix of use s, which will be accompanied by overlay zone s, to ensure that comm ercial and higher intensity residential uses will be succe ssfully int e grat e d int o de sirable , cohe sive m ixe d use dist rict s. T he SA , spe cial are a dist rict is an ove rlay district which allows modification of the underlying general di strict regulations (including both permitted use types and development standards) by reference to regulations ad opted either in a specific plan, which applies to the property so classified, or in the ordinance rezoning the pr operty s o cl as s i fi ed. The Dry Creek Mi xed‐Us e Di s tri ct is comprised of the districts formerly designated Community Com m e rcial (CC) and Floodw ay Fringe (FF). Principally permitted uses in the Dry Creek Mixed‐Use district include mixe d‐use, retail, restaurants, public/quasi‐public, office s, m ult ifam ily re side nt ial, live /w ork space and public m arkets.

Mi ni mum Lot Area Defi ned by devel opment des i gn
Maxi mum Bui l di ng Hei ght 4‐s tory/60 feet
Maxi mum Fl oor Area Rati o 3.5
Parking Requirement Varies by land use
Other Land Use Regulations None
Utilities
Service Provider
Wat e r Cit y of Rose ville
Se w e r Cit y of Rose ville
E le ct ricit y Cit y of Rose ville
Natural Gas PG&E

Land Description and Analysis 33
505 Royer Street
Portions of the subject are located either within floodplain or floodway zones and there are moderate to substantial restrictions placed on potential development. The following map depicts the areas of the subject located within the floodplain and floodway. Note, APN 013‐172‐023 is not depicted on the map. This parcel is comprised primarily of a creek and is not developable.

Land Description and Analysis 34
505 Royer Street
The portion of the property located within the floodplain could be developed with restrictions, such as elevated structures with piers or pylons to allow water to flow through. Development within the floodway is even more restrictive and could likely only be developed with parking or recreational areas. Any development in these areas must be approved by FEMA and the City of Roseville. Generally speaking, the City of Roseville has higher standards for development within the floodplain than FEMA.

Note, a potential developer recently discussed developing a 10 foot high ground floor parking with multi‐story residential above within the floodplain.

The following table provides a breakdown of total land area and the areas outside and within the floodplain and floodway for each parcel and the alley that will be abandoned.

Land Area Summary
Tax ID Total SF
Outside FP
& FW SF
Floodplain
(FP) SF
Floodway
(FW) SF
Total
Acres
Outside FP
& FW Acres
Floodplain
Acres
Floodway
Acres
013‐290‐005 16,425 14,789 1,636 0 0.377 0.339 0.038 0.000 013‐290‐006 34,053 0 20,329 13,728 0.782 0.000 0.467 0.315 013‐172‐023 982 0 0 982 0.020 0.000 0.000 0.020
Alley 2,197 151 1,850 196 0.050 0.003 0.042 0.005
Total 53,657 14,940 23,815 14,906 1.229 0.342 0.547 0.340

We are not experts in the interpretation of zoning ordinances. An appropriately qualified land use attorney should be engaged if a determination of compliance with zoning is required.

Easements, Encroachments and Restrictions
An inspection of the subject property revealed no apparent adverse easements, encroachments or other conditions currently impacting the subject. However, the exact locations of typical roadway and utility easements, or any additional easements, which would be referenced in a preliminary title report, were not provided to the appraiser. The appraiser is not a surveyor nor qualified to determine the exact location of easements. It is assumed any easements noted in a current preliminary title report do not have an impact on the opinion(s) of value as provided in this report. If, at some future date, any easements are determined to have a detrimental impact on value, the appraiser reserves the right to amend the opinion(s) of value contained herein.

Seismic Hazards
According to the Seismic Safety Commission, the subject is located within Zone 3, which is considered to be the lowest risk zone in California. There are only two zones in California: Zone 4, which is assigned to areas near major faults; and Zone 3, which is assigned to all other areas of more moderate seismic activity. In addition, the subject is not located in a Fault‐Rupture Hazard Zone (formerly referred to as an Alquist‐Priolo Special Study Zone), as defined by Special Publication 42 (revised January 1994) of the California Department of Conservation, Division of Mines and Geology.

Land Description and Analysis 35
505 Royer Street
Conclusion of Land Analysis
Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses including those permitted by zoning. We are not aware of any other particular restrictions on development.

Land Description and Analysis 36
505 Royer Street

Land Description and Analysis 37
505 Royer Street

Land Description and Analysis 38
505 Royer Street
Aerial View

Source: Google Maps (parcel boundaries are approximate)

Subject Property
Unusable Usable with
Restrictions
Alley
Land Description and Analysis 39
505 Royer Street
Parcel Maps

Land Description and Analysis 40
505 Royer Street

Real Estate Taxes 41
505 Royer Street
Real Estate Taxes
The property tax system in California was amended in 1978 by Article XIII to the State Constitution commonly referred to as Proposition 13. It provides for a limitation on property taxes and for a procedure to establish the current taxable value of real property by reference to a base year value, which is then modified annually to reflect inflation (if any). Annual increases cannot exceed 2% per year.

The base year was set at 1975‐76 or any year thereafter in which the property is substantially improved or changes ownership. When either of these two conditions occurs, the property is to be reappraised at market value, which becomes the new base year assessed value. Proposition 13 also limits the maximum tax rate to 1% of the value of the property, exclusive of bonds and direct charges.

Bonded indebtedness approved prior to 1978, and any bonds subsequently approved by a two‐thirds vote of the district in which the property is located, can be added to the 1% tax rate.

The subject property is not taxed because it is owned by a public entity. However, if sold to a non‐ public entity, the subject would be taxed similar to other commercial properties in the vicinity, which would be based on the tax rate applied to the assessed value, plus any additional direct charges. The subject property is located in tax rate area 005‐029, which has a current tax rate of 1.073793%.

Highest and Best Use 42
505 Royer Street
Highest and Best Use
Process
Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as vacant, and as improved. By definition, the highest and best use must be:
 Physically possible.
 Legally permissible under the zoning regulations and other restrictions that apply to the site.  Financially feasible.
 Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses.

As Vacant
Legally Permissible
The legal factors influencing the highest and best use of the subject property are primarily government regulations, such as zoning and building codes. As previously presented, the subject property is zoned CMU/FF/SA ‐ DT‐7 (Dry Creek Mixed‐Use District), Commercial Mixed‐Use/Floodway Fringe/Special Area ‐ Downtown Specific Plan (DT‐7 ‐ Dry Creek Mixed‐Use District). Principally permitted uses in the Dry Creek Mixed‐Use district include mixed‐use, retail, restaurants, public/quasi‐ public, offices, multifamily residential, live/work space and public markets. This area has undergone extensive planning and review; zoning modifications are considered highly unlikely. Based on a review of the subject’s zoning ordinance, the primary legally permissible uses of the subject property are for retail, office, multifamily residential and/or mixed‐use development.

To our knowledge, there are no legal restrictions such as easements or deed restrictions that would effectively limit the use of the property. Given prevailing land use patterns in the area, commercial property market conditions, surrounding land uses and the subject’s location on interior streets, only multi‐family development (some form of apartments, condominiums and/or senior housing) is given further consideration in determining highest and best use of the site, as though vacant.

Physically Possible
The physical characteristics of a site that affect its possible use(s) include, but are not limited to, location, street frontage, visibility, access, size, shape, topography, availability of utilities, off‐site improvements, easements and soil and subsoil conditions. Since the legally permissible test has resulted in a potential for office development, at this point the physical characteristics are examined to see if they are suited for the legally permissible uses.

Locational considerations include the compatibility and position of the subject property with respect to surrounding uses. Based on our physical inspection of the subject property, we know of no reason why the property would not support any legal development.

The topography of the majority of the subject property appears adequate for development. It is noted, APN 013‐172‐023 is comprised of a portion of a creek and undevelopable. Additionally, a portion of Highest and Best Use 43
505 Royer Street
APN 013‐290‐005 is located within a floodplain and APN 013‐290‐006 is located within a floodplain and floodway. These areas are subject to additional development guidelines/restrictions by FEMA and the City of Roseville. The property is not located within a Fault‐Rupture Hazard Zone. All utility services are available, and evidence of construction in the immediate area provides additional support for the possibility of development. Typical roadway and utility easements exist but are not unusual in any way. It is assumed any easements do not adversely affect the subject’s potential for development.

The subject property is located within the city of Roseville, and the subject’s location is considered average for the legally permissible uses. The property is located proximate to the main downtown corridors along Vernon and Oak Streets, which bodes well for the subject, since many retail and office properties are located within walking distance. In addition, the property is proximate to Interstate 80 via Douglas Boulevard. Overall, the subject property has physical characteristics that support the legally permissible uses.

Financially Feasible
The subject property is located in the downtown area of Roseville, which has experienced some revitalization, property appreciation, increased rental rates and new construction in recent years. A determination of financial feasibility is dependent on regional supply and demand influences. In the 12 months leading up to the COVID‐19 pandemic, the apartment market was regarded as one of the best performing property investment sectors, with strong increases in rental rates and sale prices in recent years. However, market participants are cautious at this time due to the COVID‐19 pandemic, which has substantially increased unemployment and overall uncertainty. Therefore, the highest and best use of the subject as vacant would be a short‐term hold for future multi‐family development (apartments, condominiums and/or senior housing) until the COVID‐19 pandemic has more substantially subsided. Market conditions would then need to be re‐evaluated to determine if construction of a multifamily residential property would be financially feasible. Our expectation is once the crisis is over the multifamily market will return to robust market conditions. but will likely not return with the robust conditions of recent years.

Maximally Productive
Legal, physical and market conditions have been analyzed to evaluate the highest and best use of the subject property. The analysis is presented to evaluate the type of use(s) that will generate the greatest level of future benefits possible to the property. Construction of some form of a multi‐family project is legally permissible and physically possible; however, given the uncertainty of the impacts of the COVID‐19 pandemic, it is our opinion the highest and best use of the subject is to hold for future multi‐family development (apartments, condominiums and/or senior housing).

Conclusion
Based on the factors previously discussed, a short hold for future development is the maximally productive land use that is legally permissible, physically possible and financially feasible. Considering the subject’s specific characteristics, the highest and best use of the subject property – as vacant – is a short term hold for future construction, but future multi‐family construction will be dependent on pandemic conditions. As of the date of inspection, the courthouse building was in the process of being demolished. Our analysis is based on the hypothetical condition that the remaining improvements have already been demolished.

Highest and Best Use 44
505 Royer Street
Most Probable Buyer
Considering the functional utility of the site and area development trends, the probable buyer would be an investor, for‐profit developer, speculator, or non‐profit multi‐family developer, looking at a short term hold for future development.

Valuation Methodology 45
505 Royer Street
Valuation
Valuation Methodology
Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach.

The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvement s for which there is little or no sales data from comparable properties.

The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner‐user properties.

The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income‐ producing properties.

Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type.

The methodology employed in this assignment is summarized as follows:

As previously discussed, the subject’s improvements are considered to be at the end of their economic life, offering no contributory value to the property. Our analysis is based on the hypothetical condition that the improvements have already been demolished and we only estimate the market value of the underlying land.

Sales Comparison Approach 46
505 Royer Street
Sales Comparison Approach
To develop an opinion of the subject’s land value, as if vacant and available to be developed to its highest and best use, we utilize the sales comparison approach. This approach develops an indication of value by researching, verifying, and analyzing sales of similar properties.

Our sales research focused on transactions within the following parameters:
 Location: Our initial search focused on the subject’s immediate downtown Roseville area; however, due to the limited number of transactions, we expanded our search to include properties throughout the City of Roseville and neighboring cities.  Size: Less than four acres
 Use: Zoned for commercial/mixed‐use, with an emphasis on multifamily uses  Transaction Date: Within approximately three years of the effective date of value For this analysis, we use price per usable square foot as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. As previously discussed, portions of the subject are located either within a floodplain, or floodway and there are moderate to substantial restrictions placed on potential development. We will first determine a price per square foot of land area as‐if the subject is entirely outside of a floodplain and floodway, then we will apply discounts to the areas within the floodplain and floodway. The most relevant sales are summarized in the following table.

Sales Comparison Approach 47
505 Royer Street
Summary of Comparable Land Sales
No. Name/Address
Sale
Date;
Status
E ffe ct ive Sale
Price
SF;
Acres Zoni ng
$/SF
Land $/Acre
1 326 Church Street Dec‐20 $120,000 9,828 $12.21 $531,915 326 Church St. Closed 0.23
Rose ville
Placer County
CA
2 430, 502 & 510 Lincoln Street Jun‐19 $807,430 41,457 $19.48 $848,40 8 430, 502 & 510 Lincoln St. Closed 0.95
Rose ville
Placer County
CA
3 304 Washington Blvd Mar‐19 $875,500 34,848 $25.12 $1,094,375 Rose ville Close d 0. 80
Placer County
CA
4 Vacant Commercial Land Nov‐18 $1,364,000 135,036 $10.10 $440,000 Galewind Dr. Closed 3.10
Li ncol n
Placer County
CA
5 2450 Pleasant Grove Blvd. Oct‐17 $1,645,000 143,748 $11.44 $498,485 Rose ville Close d 3. 30
Placer County
CA
6 Vacant Land Sep‐17 $200,000 11,354 $17.61 $767,165
129 Vernon St. Closed 0.26
Rose ville
Placer County
CA
Subject 53,657
505 Royer Street 1.23
Rose ville , CA
Central Bus.

Dist./Sp. Area‐
Downtown
Spe cific Plan
Comments: Sale of a property improved as a parking lot at the t ime of sale. The buyer has plans to develop the site as a five‐ story, 42,680 square foot mixed‐use project comprised of 24 residential units and approximately 2,000 square feet of retail space.

Old Town
Historic
Dist rict , Spe cial
Area,
Commercial
Old Town
Historic
District/Special
Area
General
Commercial
Commercial
Mixed‐
Us e/Fl oodway
Comments: This transaction represents the sale of a 0.23 acre parcel zoned general commercial. The general commercial zone is intended to serve the entire community by providing areas for commercial facilities that are more of a service or heavy commercial character than are permitted in the Community Commercial District, and may involve outdoor display, storage or activity areas. Surrounding land u ses include single‐family residential and auto service uses and vacant land .

Comments: This transaction represents the sale of three contiguous parcels located in the Old Town Historic District of the City of Roseville.

Two of the parcels were improved with residential buildings totaling 4,743 square feet that had r eached the end of their economic life and offered no contributory valu e (built in 1914 and 1926 and repre sented original construction). According to the listing broker, the buyer was responsible for the cost of demolition of the buildings.

Comments: This comparable represents the sale of 3 non‐contiguous parcels located at the northeast corner of Main Street and Washington Boulevard in Old Roseville. It appears the City of R oseville financed the transaction; however, the terms are unknown. The property is currently being developed as Main Street Plaza apar tments, which will consist of of a 44‐unit mixed‐use affordable housing complex with 3,000 square feet of community‐integrated commercial space, a 21‐unit affordable housing complex and a public ped estrian paseo.

Comments: This comparable represents the sale of vacant land zoned for commercial development. It is located adjacent to the Kaiser Permanente Lincoln Medical Center as well as several developing residential subdivisions. The buyer intends to a construct a 1 04‐room La Quinta Inn & Suites Hotel. The property was unentitled at the time of sale.

Comments: In total, APNs 017‐153‐003 and ‐004 en compass 17.85 a cres; however, this transaction comprised only 3.3 acres. The seller indicated while the property is zoned commercial, it can be developed with an assisted living facility.

Commercial

Sales Comparison Approach 48
505 Royer Street
Comparable Land Sales Map

Sales Comparison Approach 49
505 Royer Street

Sale 1
326 Church Street
Sale 2
430, 502 & 510 Lincoln Street
Sale 3
304 Washington Blvd
Sale 4
Vacant Commercial Land
Sale 5
2450 Pleasant Grove Blvd.

Sale 6
Vacant Land
Sales Comparison Approach 50
505 Royer Street
Analysis and Adjustment of Sales
The sales are compared to the subject and adjusted to account for material differences that affect value. The adjustment process is typically applied through either quantitative or qualitative analysis, or a combination of the two. Quantitative adjustments are often developed as dollar or percentage amounts and are most credible when there is sufficient data to perform a paired sales analysis.

While we present percentage adjustments in the adjustment grid that follows, they are based on qualitative judgment rather than empirical research as there is not sufficient data to develop a sound quantitative estimate. Although the adjustments appear to be mathematically precise, they are merely intended to illustrate the appraisers’ thought process. Except for market conditions, our adjustments are based on a scale, with a minor adjustment in the range of 1‐5% and a substantial adjustment considered to be 20% or greater.

Our rating of each comparable sale in relation to the subject is the basis for the adjustments. If the comparable is superior to the subject, its sale price is adjusted downward to reflect the subject’s relative attributes; if the comparable is inferior, its price is adjusted upward.

Adjustments are considered for the following factors, in the sequence shown below.

Adjustment Factor Accounts For Comments
Effective Sale Price Atypical economics of a transaction, such as demolition cost or
expenditures by buyer at time of
purchase.

Sale 2 was improved with two
residential structures totaling 4,743
square feet that reached the end of
their economic life and needed to
be demolished prior to
redevelopment. This sale is adjusted
upward by an estimated $10 per
square foot for the cost to demolish
the buildings. No further
adjustments are necessary.

Real Property Rights Fee simple, leased fee, leasehold, partial interest, etc.

All the sales reflect fee simple
transactions that do not require
adjustment.

Financing Terms Seller financing, or assumption of
existing financing, at non‐market
terms.

The comparable sales represented
cash to the seller transactions and,
therefore, do not require
adjustments.

Conditions of Sale Extraord inary motivation of buyer
or seller, assemblage, forced sale.

No adjustments are required.

Market Conditions Changes in the economic
environment over time that affect
Market conditions for nearly all
commercial sectors had been
improving in recent years leading up
Sales Comparison Approach 51
505 Royer Street
Adjustment Factor Accounts For Comments
the appreciation and depreciation
of real estate.
to the COVID‐19 pandemic, with
relatively steady quarter‐over‐
quarter appreciation in sale prices.

However, due to current market
uncertainty, we have not adjusted
any comparables transferring in
2019 or later for market conditions.

We have accounted for a minor
market condition adjustment for
Sales 4 through 6, which transferred
in 2018 and 2017.

Location Market or submarket area
influences on sale price;
surrounding land use influences.

The subject is located within the
downtown area of Roseville. Factors
considered in evaluating location
include, but are not limited to,
demographics, growth rates,
surrounding land uses and property
values. Sale 4 is located in a more
remote undeveloped part of Lincoln
which is considered to be in an
inferior area compared to that of
the subject, and an upward
adjustment is applied. Sale 3 is also
located in Roseville; however, it is
located in an area of dense
commercial development and a
downward adjustment is warranted
for its superior location. No further
adjustments are considered
necessary.

Access/Exposure Convenience to transportation
facilities; ease of site access;
visibility; traffic counts.

The subject property is considered
to possess average access/
exposure. Sale 3 is located along a
major thoroughfare and is adjusted
downward for its superior
access/exposure. The remaining
sales are considered to possess
similar access and exposure
attributes and no further
adjustments are required.

Sales Comparison Approach 52
505 Royer Street
Adjustment Factor Accounts For Comments
Size Inverse relationship that often
exists between parcel size and unit
value.

Applicable adjustments are applied
for differences in size. The
comparables that are appreciably
smaller than the subject are
adjusted downward and vice versa.

Shape/Topography/
Site Utility
Primary physical factors that affect
the utility of a site for its highest
and best use.

The subject property has average
site utility given its shape, relatively
level topography, and lack of
vegetation, trees, rocks or other
impediments to development. The
majority of the sales have similar
site utility and do not require
adjustments. The smaller size of
Sales 1 and 6 makes the utility of
the site somewhat inferior and
these sales are adjusted upward.

Zoning Government regulations that affect
the types and intensities of uses
allowable on a site.

Similar to the subject property, all
of the sales have zoning permitting
a variety of commercial, office,
multifamily or mixed‐use
development. Our selection of
comparables focused on properties
purchased for plans to develop with
some form of residential (multi‐
family, condominiums, senior
housing, etc.). All of the
comparables allow similar uses and
no adjustments are warranted.

Off‐Site
Improvements
Off‐site improvements include
utilities to the site, streets, curbs,
gutters and sidewalks.

The subject has all off‐site
improvements in place as is the case
with the majority of the
comparables. However, Sale 4 has
inferior off‐site improvements and
is adjusted upward.

Sales Comparison Approach 53
505 Royer Street
The following table summarizes the adjustments we make to each sale.

Land Sales Adjustment Grid
Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparab le 5 Com parable 6 Name 505 Royer Street 326 Church Street 430, 502 & 510
Lincoln Street
304 Washington
Blvd
Vacant
Com m e rcial L and
2450 Pleasant
Grove Bl vd.

Vacant Land
Address 505 Royer St. 326 Church St. 430, 502 & 510
Lincoln St.
304 Washington
Blvd.

Galewind Dr. 2450 Pleasant
Grove Bl vd.
129 Vernon St.

Cit y Rose ville Rose ville Rose ville Rose ville L incoln Rose ville Rose vil le Sale Date Dec‐20 Jun‐19 Mar‐19 Nov‐18 Oct‐17 Sep‐17
Sale Stat us Close d Close d Close d Close d Close d Close d Sale Price $120,000 $760,000 $875,500 $1,364,000 $1,645,000 $200,000 Price Adjustment
– $47,430 – – – –
Description of Adjustment Demo. Cost
Effective Sale Price $120,000 $807,430 $875,500 $1,364,000 $1,645,00 0 $200,000 Square Feet 53,657 9,828 41,457 34,848 135,036 143,748 11,354 A c r e s 1 . 2 30 . 2 30 . 9 50 . 8 03 . 1 03 . 3 00 . 2 6 Usable Square Feet 53,657 9,828 41,457 34,848 135,036 143,748 11,354 $12.21 $19.48 $25.12 $10.10 $11.44 $17.61
Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple ––––––
Cash to se lle r Cash t o se lle r Se lle r financing Cash t o se lle r Cash to seller Cash to seller ––––––
Ma rket Ma rket Ma rket Ma rket Ma rket Ma rket
––––––
Market Conditions 3/4/2021 Dec‐20 Jun‐19 Mar‐19 Nov‐18 Oct‐17 Sep‐17 Annual % Adjustment – – – 4% 6% 6%
$12.21 $19.48 $25.12 $10.51 $12.13 $18.67
––‐ 5 % 5 % ––
––‐ 5 % –––
‐5% – – 15% 15% ‐5%
5 % ––––5 %
––––––
–––1 0 % ––
Net $ Adjustment $0.00 $0.00 ‐$2.51 $3.15 $1.82 $0.00
Net % Adjustment 0% 0% ‐10% 30% 15% 0%
Final Adjusted Price $12.21 $19.48 $22.61 $13.66 $13.95 $18.67 Overall Adjustment 0% 0% ‐10% 35% 22% 6%
Average
Indicated Value
$12.21 ‐ $22.61
$16.76
$17.00
Zoning
Off‐Site Improvements
A cce ss/E xposure
Size
Price per Usable Square Foot
Property Rights
Financing Terms
Conditions of Sale
Cumulative Adjusted Price
% Adj us tment
% Adj us tment
% Adj us tment
Loca ti on
Shape /T opography/Sit e U t ilit y
Range of Adjusted Prices

Sales Comparison Approach 54
505 Royer Street
Land Value Conclusion
Prior to adjustment, the sales reflect a range of $10.10 ‐ $25.12 per usable square foot. After adjustment, the range is narrowed to $12.21 ‐ $22.61 per usable square foot, with an average of $16.76 per usable square foot.

Sale 1 is the most recent transaction in the data set, but represents the low end of the range. Sales 2 and 3 are also reasonably recent transactions and are relatively similar in size; however, Sale 3 represents the high end of the range. Sales 4 and 5 are significantly larger in size. While Sale 6 is the most dated transaction in the data set, it is also located within the downtown area of Roseville.

Overall, no single sale is considered to provide the best indicator of value for the subject and relatively equal emphasis is given to the entire data set. Given the previous discussion, we conclude a market value of $17.00 per square foot of land area for the subject.

As discussed throughout the report, portions of the subject property are located within either a floodplain, or floodway and are subject to additional development restrictions from FEMA and the City of Roseville. The indicated land value conclusion is applicable to the portion of the site that does not have any development restrictions. A developer would likely require some level of “incentive” in order to purchase and take on the additional steps required to develop the property. Without a specific project proposal, it is difficult to apply a discount to the areas located within the floodplain and floodway; however, we estimate the land area within the floodplain to be discounted by 25% and the land area within the floodway to be discounted by 65%. By applying the discounts to the previously concluded value, and the subject’s respective land areas, we arrive at a total land value conclusion as follows:

Land Value Conclusion
Outside FP & FW Floodplain Floodway
Base $/SF ‐ Land Area $17.00 14,940 SF 23,815 SF 14,906 SF Discount 0% 25% 65%
Discounted $/SF $17.00 $12.75 $5.95
Component Value $253,980 $303,641 $88,691
Indicated Value $646,312
Rounded $650,000

If the subject were not affected by development restrictions, the indicated value of the property would be $910,000 (rounded), or approximately 29% ($260,000) more than our final value conclusion.

We believe this projection is reasonable based on the development constraints.

Reconciliation and Conclusion of Value 55
505 Royer Street
Reconciliation and Conclusion of Value
As discussed previously, we use only the sales comparison approach in developing an opinion of value for the subject. The cost and income approaches are not applicable and are not used.

Based on the preceding valuation analysis and subject to the definitions, assumptions, and limiting conditions expressed in the report, our value opinion follows:

Value Conclusion
Appraisal Premise Interest Appraised Date of Value Value Conclusio n Market Value ‐ As If Vacant Fee Simple March 4, 2021 $650,000

Extraordinary Assumptions and Hypothetical Conditions

1. As of the date of inspection, two of the subject parcels (APN s 013‐290‐005 and ‐006) were divided by a portion of an alley. The City of Roseville has plans to abandon a portion of the alley and add the land area to the subject property. Our analysis assumes the portion of the alley will be abandoned as planned and the estimated land area of the alley is included in the subject's total land area. I f a t a l a ter da te the es ti ma ted l a nd a rea of the a l l ey differs significantly from what was provided, or the City of Ro seville does not abandon the portion of the alley as planned, our value conclusion presented herein could be impacte d.

1. The subject was previously improved with a 7,900 square foot county courthouse. As of the date of inspection, the building was in the process of being demolished. The estima te of market value is based on the hypothetical condition the remaining portion of the improvements have alread y been demolished and we only estimate the market value of the underlying land, with no deduction for demo lition costs.

The use of any extraordinary assumption or hypothetical conditi on ma y ha ve a ffected the a s s i gnment res ul ts .

The value conclusions are based on the following hypothetical c onditions. A hypothetical condition is a condition, dire ct ly re lat e d t o a spe cific assignm e nt , w hich is cont rary t o what is known by the appraiser to exist on the effective date of the assignment results, but is used for the p urpose of analysis.

The value conclusions are subject to the following extraordinar y assumptions. A n e xtraordinary assumption is an assignm e nt ‐spe cific assum ption as of the e ffe ctive dat e re garding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or c onclusions.

As of the date of value, the economy (globally, nationally, and locally) was in a state of rapid transition with a widespread expectation of the imminent onset of a significant recession. The outbreak of COVID‐19 (coronavirus disease of 2019) in China was declared a global pandemic by the World Health Organization (WHO) on March 11, 2020. Some market deterioration had occurred shortly before this date, but the declaration by the WHO soon led to municipal and statewide orders to “shelter in place,” causing widespread closures of businesses and a massive disruption to general commerce. The status of economic conditions is changing rapidly, creating great uncertainty in the markets. The value expressed herein represents our opinion based on the best available data reflective as of the date of value. While values are always subject to change over time, we caution the reader that in the current economic climate, market volatility creates the potential for a more significant change in value over a relatively short period of time.

Reconciliation and Conclusion of Value 56
505 Royer Street
Exposure Time
Exposure time is the period a property interest would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. In attempting to estimate a reasonable exposure time for the subject property, we looked at both the historical exposure times of a number of sales, as well as current and past economic conditions. Based on a survey of market participants, a transfer of commercial properties in the region typically occurs within 9‐12 months of exposure. It is estimated the exposure time for the subject property, if appropriately priced, would have been within 9‐12 months of initial exposure.

Marketing Period
Marketing time is an estimate of the time to sell a property interest in real estate at the estimated market value during the period immediately after the effective date of value. A reasonable marketing time is estimated by comparing the recent exposure time of similar properties, and then taking into consideration current and future economic conditions and how they may impact marketing of the subject property.

Given the uncertainty in the current market due to the COVID‐19 pandemic, the marketing time for the subject property is anticipated to be longer than the exposure time. Thus, the marketing time is estimated at 12‐15 months or less.

Certification 57
505 Royer Street
Certification
We certify that, to the best of our knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions.

3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

4. We have prepared two appraisals of the subject property for the current client. We have provided no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three‐year period immediately preceding the agreement to perform this assignment.

5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.

7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations.

9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.

10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

11. Lance Jordan, MAI, has made a personal inspection of the property that is the subject of this report. Ligia Dejeu has also personally inspected the subject.

12. No one provided significant real property appraisal assistance to the person(s) signing this certification.

13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP.

14. As of the date of this report, Lance Jordan, MAI, has completed the continuing education program for Designated Members of the Appraisal Institute.

Certification 58
505 Royer Street
Lance Jordan, MAI
Managing Director
California Certificate # AG012709
Ligia Dejeu
Certified General Real Estate Appraiser
California Certificate # 3004823

Assumptions and Limiting Conditions 59
505 Royer Street
Assumptions and Limiting Conditions
This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report:

1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use.

2. There are no existing judgments or pending or threatened litigation that could affect the value of the property.

3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property.

4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction.

5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes.

6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.

This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report:

1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised.

2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events.

3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated.

4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies.

5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment.

6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal

Assumptions and Limiting Conditions 60
505 Royer Street
covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct.

7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal.

8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes.

9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context.

10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report.

11. Information, estimates and opinions contained in the report and obtained from third‐party sources are assumed to be reliable and have not been independently verified.

12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results.

13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate.

14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered.

15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur.

16. The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions.

17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic Assumptions and Limiting Conditions 61
505 Royer Street
conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material.

18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations.

Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non‐ conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance.

19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk.

20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR ‐ Sacramento, Integra Realty Resources, Inc., and their respective officers, owners, managers, directors, agents, subcontractors or employees (the “Integra Parties”), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist.

Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property.

21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non‐existent or minimal.

22. We are not a building or environmental inspector. The Integra Parties do not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended.

23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner.

24. IRR ‐ Sacramento is an independently owned and operated company. The parties hereto agree that Integra shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR ‐ Sacramento. In addition, it is expressly agreed that in any Assumptions and Limiting Conditions 62
505 Royer Street
action which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly agreed that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the assignment (unless the appraisal was fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees charged herein are in reliance upon the foregoing limitations of liability.

25. IRR ‐ Sacramento is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided.

Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable).

26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer‐seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property.

27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future.

28. The appraisal is also subject to the following:

Assumptions and Limiting Conditions 63
505 Royer Street
Extraordinary Assumptions and Hypothetical Conditions

1. As of the date of inspection, two of the subject parcels (APN s 013‐290‐005 and ‐006) were divided by a portion of an alley. The City of Roseville has plans to abandon a portion of the alley and add the land area to the subject property. Our analysis assumes the portion of the alley will be abandoned as planned and the estimated land area of the alley is included in the subject's total land area. I f a t a l a ter da te the es ti ma ted l a nd a rea of the a l l ey differs significantly from what was provided, or the City of Ro seville does not abandon the portion of the alley as planned, our value conclusion presented herein could be impacte d.

1. The subject was previously improved with a 7,900 square foot county courthouse. As of the date of inspection, the building was in the process of being demolished. The estima te of market value is based on the hypothetical condition the remaining portion of the improvements have alread y been demolished and we only estimate the market value of the underlying land, with no deduction for demo lition costs.

The use of any extraordinary assumption or hypothetical conditi on ma y ha ve a ffected the a s s i gnment res ul ts .

The value conclusions are based on the following hypothetical c onditions. A hypothetical condition is a condition, dire ct ly re lat e d t o a spe cific assignm e nt , w hich is cont rary t o what is known by the appraiser to exist on the effective date of the assignment results, but is used for the p urpose of analysis.

The value conclusions are subject to the following extraordinar y assumptions. A n e xtraordinary assumption is an assignm e nt ‐spe cific assum ption as of the e ffe ctive dat e re garding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or c onclusions.

Addenda
505 Royer Street
Addendum A
Appraiser Qualifications
Ligia Dejeu Sacramento
Integra Realty Resources
irr.com
T 916-435-3883
F
590 Menlo Drive
Suite 1
Rocklin, CA 95765
Experience
Ms. Dejeu is an Appraiser at the firm. After completing her bachelor’s degree at California State University, Chico, Ms. Dejeu worked in banking as a branch manager for ten years before she joined the firm full-time in 2012. Ms. Dejeu is assisting in the research, analysis and writing of narrative appraisal reports for a wide variety of commercial properties including multifamily, office, retail and industrial, as well as commercial land and special-use properties such as Low Income Housing Tax Credit (LIHTC) projects, self-storage facilities and surgery centers. Ms. Dejeu has developed the experience and background necessary to deal with complex assignments covering an array of property types.

Licenses
California, Certified General Real Estate, 3004823, Expires October 2021 Education
Academic:

Bachelor of Science in Business Administration (Concentration in Business Management), California State University, Chico
Appraisal and Real Estate Courses:

Basic Appraisal Principles
Basic Appraisal Procedures
General Appraiser Sales Comparison Approach
General Appraiser Site Valuation and Cost Approach
General Appraiser Income Approach Part 1
General Appraiser Income Approach Part 2
General Appraiser Report Writing and Case Studies
General Appraiser Market Analysis and Highest and Best Use Real Estate Finance Statistics and Valuation Modeling
Uniform Standards of Professional Appraisal Practice
Residential Sales and Income Approach
Laws and Regulation for California Appraisers
[email protected] - 916-435-3883 x240

Lance Jordan, MAI Integra Realty Resources -
Sacramento
irr.com
T 916-435-3883
F 916-435-4774
590 Menlo Drive
Suite 1
Rocklin, CA 95765
Experience
Managing Director for INTEGRA REALTY RESOURCES – Sacramento (IRR). Actively engaged in real estate valuation and consulting since 1989. Prior to joining IRR, was a partner with Seevers Jordan Ziegenmeyer since 1997. Extensive experience in the valuation of all forms of industrial properties, community/neighborhood shopping centers, office buildings - CBD and suburban, multi-family, hotels and motels, vacant land and special purpose properties. Clients served include banks and financial institutions, developers and investors, law and accounting firms, business/industry, government, and mortgage bankers. Valuations have been performed for financing, eminent domain purposes, as well as estate tax and estate planning. In summary, with over 28 years of experience in the field, he has developed the expertise and background necessary to deal with complex assignments covering a wide range of property types.

Professional Activities & Affiliations
Chairman: Appraisal Institute - Sacramento/Sierra Chapter - California Government Relations Committee, January 2015 - December 2017
Committee: Appraisal Institute - Sacramento/Sierra Chapter - California Government Relations, January 2014 - December 2017
Board of Director: Appraisal Institute - Sacramento/Sierra Chapter, January 2014 - December 2016
Appraisal Institute, Member (MAI) , May 2012
Vice President: Appraisal Institute - Sacramento/Sierra Chapter, January 2007 - December 2007
Other: Appraisal Institute - Sacramento/Sierra Chapter - Secretary/Treasurer, January 2006 - December 2006
Licenses
California, Certified General Real Estate Appraiser, AG012709, Expires January 2022 Washington, Certified General Real Estate Appraiser, 20110463, Expires January 2022 Arizona, Certified General Real Estate Appraiser, 1013474, Expires September 2022 Oregon, Certified General Real Estate Appraiser, C001427, Expires January 2022 Education
Bachelor of Science - Accountancy, CSU - Sacramento, 1991 Recent Continuing Education:

Lake Tahoe Litigation Conference – Appraisal Institute
Forecasting Revenue – Appraisal Institute
Appraising Distressed Commercial Real Estate – Appraisal Institute Litigation Appraising: Specialized Topics and Applications – Appraisal Institute Business Practices and Ethics – Appraisal Institute
The Essentials, Current Issues & Misconceptions in Appraising – Appraisal Institute Review Theory - General
Qualified Before Courts & Administrative Bodies
Court Appointed Expert Witness, Placer County Superior Courts, 2014 [email protected] - 916-435-3883 x232

About IRR
Integra Realty Resources, Inc. ( IRR) provides world‐class comme rcial real estate valuation, counseling, and advisory services. Routinely ranked among leading property valuation and consulting firms, we are now the largest independent firm in our industry in the United States, with local offices coast to coast and in the Caribbean.

IRR offices are led by MAI‐designated Senior Managing Directors , industry leaders who have over 25 years, on average, of commercial real estate experience in their local markets. This experience, coupled with our understanding of how national trends affect the local markets, empowers our clients with the unique knowledge, access, and historical perspective they need to make the most informed decisions.

Man y of t h e n at i on ' s t op fi n an c i al i n st itu t i on s, de ve lop e r s, c orporations, law firms, and government agencies rely on our professional real estate opinions to best understand the value, use, and feasibility of real estate in their market.

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Addenda
505 Royer Street
Addendum B
Grant Deed

Addenda
505 Royer Street
Addendum C
Comparable Data

Land Sale Profile Sale No. 1
Location & Property Identification
326 Church Street Property Name:

Sub‐Property Type: Commercial
326 Church St. Address:

Roseville, CA 95678 City/State/Zip:

Placer County:

Suburban Market Orientation:

IRR Event ID: 2488355
Sale Information
$120,000 Sale Price:
$120,000 Effective Sale Price:
12/24/2020 Sale Date:

Listing Price: $175,000
Sale Status: Closed
$/Acre(Gross):   $531,915
$/Land SF(Gross):   $12.21
$/Acre(Usable): $531,915
$/Land SF(Usable):   $12.21
Grantor/Seller: Lynette A. Robinson
Grantee/Buyer: Ahmed Aboudkhil and Aicha
Benbrahim
Property Rights: Fee Simple
Financing: Cash to seller
Document Type: Deed
Recording No.: 2020‐0152485
Verified By: Ligia Dejeu
Verification Type: Secondary Verification
Secondary Verific. Source: CoStar, Listing Flyer
Improvement and Site Data
012‐153‐013 Legal/Tax/Parcel ID:

0.23/0.23 Acres(Usable/Gross):
9,828/9,828 Land‐SF(Usable/Gross):

Usable/Gross Ratio: 1.00
Corner Lot: Yes
Zoning Code: GC
Zoning Desc.: General Commercial
Source of Land Info.: Public Records
Comments
This transaction represents the sale of a 0.23 acre parcel zoned general commercial. The general commercial zone is intended to serve the entire community by providing areas for commercial facilities that are more of a service or heavy commercial character than are permitted in the Community Commercial District, and may involve outdoor display, storage or activity areas. Surrounding land uses include single‐family residential and auto service uses and vacant land.
326 Church Street

Land Sale Profile Sale No. 2
Location & Property Identification
430, 502 & 510 Lincoln StreetProperty Name:

Sub‐Property Type: Commercial
430, 502 & 510 Lincoln St. Address:

Roseville, CA 95678 City/State/Zip:

Placer County:

CBD Market Orientation:

IRR Event ID: 2490901
Sale Information
$760,000 Sale Price:
$760,000 Effective Sale Price:
06/11/2019 Sale Date:

Recording Date: 06/12/2019
Listing Price: $750,000
Sale Status: Closed
$/Acre(Gross): $798,571
$/Land SF(Gross): $18.33
Grantor/Seller: Dolores Marlene Manring
Grantee/Buyer: Old Roseville, LLC
Property Rights: Fee Simple
Financing: Cash to seller
Document Type: Deed
Recording No.: 2019‐0039984
Verified By: Ligia Dejeu
Verification Date: 08/18/2020
Confirmation Source: Victoria Shaw
Verification Type: Confirmed‐Seller Broker
Secondary Verific. Source: MLS, RealQuest, Deed
Improvement and Site Data
011‐147‐012, ‐003, 014 Legal/Tax/Parcel ID:

0.95 Acres(Gross):
41,457 Land‐SF(Gross):

Zoning Code: HD/SA‐DT
Zoning Desc.: Old Town Historic
District/Special Area
Source of Land Info.: Public Records
Comments
This transaction represents the sale of three contiguous parcels located in the Old Town Historic District of the City of Roseville. Two of the parcels were improved with residential buildings totaling 4,743 square feet that had reached the end of their economic life and offered no contributory value (built in 1914 and 1926 and represented original construction).

According to the listing broker, the buyer was responsible for the cost of demolition of the buildings.

The property is located within the Roseville Downtown
Specific Plan.
430, 502 & 510 Lincoln Street

Land Sale Profile Sale No. 3
Location & Property Identification
304 Washington Blvd Property Name:

Sub‐Property Type: Residential
304 Washington Blvd. Address:

Roseville, CA 95678 City/State/Zip:

Placer County:

Historic District Market Orientation:

IRR Event ID: 2298294
Sale Information
$875,500 Sale Price:
$875,500 Effective Sale Price:
03/04/2019 Sale Date:

Sale Status: Closed
$/Acre(Gross): $1,094,375
$/Land SF(Gross): $25.12
Grantor/Seller: City of Roseville
Grantee/Buyer: Main Street Plaza, LLC.

Assemblage: Yes
Portfolio Sale: No
Assets Sold: Real estate only
Property Rights: Fee Simple
Financing: Seller financing
Document Type: Deed
Recording No.: 12818 & 12819
Verification Type: Secondary Verification
Secondary Verific. Source: CoStar
Improvement and Site Data
MSA: Sacramento‐‐Roseville‐‐Arden‐
Arcade, CA
011‐145‐005,
011‐146‐018, ‐019
Legal/Tax/Parcel ID:

0.80 Acres(Gross):
34,848 Land‐SF(Gross):

Shape: Irregular
Topography: Level
Corner Lot: Yes
Zoning Code: HD/SA‐DT
Zoning Desc.: Old Town Historic District,
Special Area, Downtown
Source of Land Info.: Public Records
Comments
This comparable represents the sale of 3 non‐contiguous parcels located at the northeast corner of Main Street and Washington Boulevard in Old Roseville. It appears the City of Roseville financed the transaction; however, the terms are unknown. The property is currently being developed as Main Street Plaza apartments, which will consist of of a 44‐unit mixed‐use affordable housing complex with 3,000 square feet of community‐integrated commercial space, a 21‐unit
affordable housing complex and a public pedestrian paseo. 304 Washington Blvd

Land Sale Profile Sale No. 4
Location & Property Identification
Vacant Commercial Land Property Name:

Sub‐Property Type: Commercial, Retail
Galewind Dr . Address:

Lincoln, CA 95648 City/State/Zip:

Placer County:

Suburban Market Orientation:

IRR Event ID: 2187248
Sale Information
$1,364,000 Sale Price:
$1,364,000 Effective Sale Price:
11/15/2018 Sale Date:

Sale Status: Closed
$/Acre(Gross):   $440,000
$/Land SF(Gross):   $10.10
$/Acre(Usable): $440,000
$/Land SF(Usable):   $10.10
Grantor/Seller: Pappas Arizona, LS
Grantee/Buyer: James Guertin and Jeanette
Lowe
Assets Sold: Real estate only
Property Rights: Fee Simple
% of Interest Conveyed: 100.00
Financing: Cash to seller
Document Type: Deed
Recording No.: 2018‐0083497
Verification Type: Secondary Verification
Improvement and Site Data
MSA: Sacramento‐‐Roseville‐‐Arden‐
Arcade, CA
329‐010‐068 Legal/Tax/Parcel ID:

3.10/3.10 Acres(Usable/Gross):
135,036/135,036 Land‐SF(Usable/Gross):

Usable/Gross Ratio: 1.00
Zoning Code: C
Zoning Desc.: Commercial
Source of Land Info.: Public Records
Comments
This comparable represents the sale of vacant land zoned for commercial development. It is located adjacent to the Kaiser Permanente Lincoln Medical Center as well as several
developing residential subdivisions. The buyer intends to a construct a 104‐room La Quinta Inn & Suites Hotel. The
property was unentitled at the time of sale.

Vacant Commercial Land

Land Sale Profile Sale No. 5
Location & Property Identification
2450 Pleasant Grove Blvd. Property Name:

Sub‐Property Type: Residential
2450 Pleasant Grove Blvd. Address:

Roseville, CA 95747 City/State/Zip:

Placer County:

Suburban Market Orientation:

IRR Event ID: 1899598
Sale Information
$1,645,000 Sale Price:
$1,645,000 Effective Sale Price:
10/27/2017 Sale Date:

Sale Status: Closed
$/Acre(Gross):   $498,485
$/Land SF(Gross):   $11.44
$/Acre(Usable): $498,485
$/Land SF(Usable):   $11.44
Grantor/Seller: VC Roseville, LLC
Grantee/Buyer: Oakmont of West Park, LLC
Assets Sold: Real estate only
Property Rights: Fee Simple
Document Type: Deed
Recording No.: 2017‐0084395
Verified By: Kari Tatton
Verification Date: 02/02/2018
Confirmation Source: West Park
Verification Type: Confirmed‐Seller
Improvement and Site Data
017‐153‐003 & ‐004 (ptns) Legal/Tax/Parcel ID:

3.30/3.30 Acres(Usable/Gross):
143,748/143,748 Land‐SF(Usable/Gross):

Usable/Gross Ratio: 1.00
Zoning Code: CC
Zoning Desc.: Commercial
Source of Land Info.: Owner
Comments
In total, APNs 017‐153‐003 and ‐004 encompass 17.85 acres; however, this transaction comprised only 3.3 acres. The seller indicated while the property is zoned commercial, it can be developed with an assisted living facility.
2450 Pleasant Grove Blvd.

Land Sale Profile Sale No. 6
Location & Property Identification
Vacant Land Property Name:

Sub‐Property Type: Commercial
129 Vernon St. Address:

Roseville, CA 95678 City/State/Zip:

Placer County:

CBD Market Orientation:

IRR Event ID: 1943795
Sale Information
$200,000 Sale Price:
$200,000 Effective Sale Price:
09/01/2017 Sale Date:

Recording Date: 09/01/2017
Sale Status: Closed
$/Acre(Gross):   $767,165
$/Land SF(Gross):   $17.61
$/Acre(Usable): $767,165
$/Land SF(Usable):   $17.61
Grantor/Seller: First Bank
Grantee/Buyer: Noah A. Baygell Trust
Property Rights: Fee Simple
Financing: Cash to seller
Document Type: Deed
Recording No.: 67802
Verified By: Ligia Dejeu
Verification Date: 04/25/2018
Confirmation Source: Noah. Baygell
Verification Type: Confirmed‐Buyer
Sale Analysis
Current Use at T .O.S.:   Parking lot
Proposed Use Change:   Yes
Proposed Use Desc.: Retail & multifamily
development
Improvement and Site Data
MSA: Sacramento‐‐Roseville‐‐Arden‐
Arcade MSA
013‐072‐008 Legal/Tax/Parcel ID:

0.26/0.26 Acres(Usable/Gross):
11,354/11,354 Land‐SF(Usable/Gross):

Usable/Gross Ratio: 1.00
Zoning Code: CBD/SA ‐ DT
Zoning Desc.: Central Bus. Dist./Sp.

Area‐Downtown Specific Plan
Source of Land Info.: Public Records
Comments
Sale of a property improved as a parking lot at the time of sale. The buyer has plans to develop the site as a five‐story, 42,680 square foot mixed‐use project comprised of 24
residential units and approximately 2,000 square feet of retail space.

Vacant Land
Addenda
505 Royer Street
Addendum D
Engagement Letter
Integra Realty Resources 590 Menlo Drive T 916.435.3883 Sacramento Suite 1 F 916.435.4774
Rocklin, CA 95765 www.irr.com

February 24, 2021

Laura Matteoli
Economic Development Director
City of Roseville ‐ Economic Development Department
Civic Center
311 Vernon Street
Roseville, California 95678

SUBJECT: Former Courthouse
505 Royer Street
Roseville, CA 95678

Dear Ms. Matteoli:

Thank you for considering Integra Realty Resources – Sacramento for your real estate valuation needs. Enclosed is my Agreement for Appraisal Services pertaining to the above referenced property. The total fee for delivery of the completed appraisal report will be $1,900.

Please return a signed copy of the attached Agreement to my office at your earliest convenience. The appraisal fee will be due 30 days NET after delivery of completed report.

Provided the signed contract is received within 3 business days, we anticipate delivery of the completed report no later than March 12, 2021.

In accordance with the attached Agreement for Appraisal Services, the scope of this assignment will require IRR – Sacramento to consider all relevant and applicable approaches to value as determined during the course of our research, analysis of the subject property and preparation of the report.

Laura Matteoli
City of Roseville ‐ Economic Development Department
Civic Center

Page 2 ends

If you have any questions, please do not hesitate to contact me at 916‐435‐3883, ext. 232 or by e‐mail at [email protected].

Respectfully submitted,
Integra Realty Resources ‐ Sacramento

Lance Jordan
Certified General Real Estate Appraiser
CA Certificate # AG012709
Telephone: 916‐435‐3883, ext. 232
Email: [email protected]

Attachments

Agreement for Appraisal Services
The terms of the agreement are outlined as follows:

Date of the Agreement February 24, 2021
Parties to the Agreement Integra Realty Resources – Sacramento (also identified as “IRR”) and City of Roseville (the “Client”).

Purpose of the Appraisal

Hypothetical Condition
To provide an opinion of market value of the fee simple interest in the subject property subject to a hypothetical condition.

This valuation will be subject to a hypothetical condition.

Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. The estimate of market value will be based on the hypothetical condition the existing improvements have already been demolished as of the
date of value. We will only estimate the market value of the underlying land, with no deduction for demolition costs.

Intended User The client and intended user is City of Roseville ‐ Economic Development Department. The appraisal is not intended for any other user.

Intended Use This appraisal is intended to be used for establishing the market value of the subject property for marketing
purposes. The appraisal is not intended for any other use.

Effective Date of Value Date of inspection.

Appraised Property The subject property is located at:
505 Royer Street
Roseville, CA 95678
APN’s: 013‐290‐005, 013‐290‐006, 013‐172‐023

USPAP Compliance The appraisal will be prepared in conformance with and subject to the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal
Practice (USPAP) developed by the Appraisal Standards
Board of the Appraisal Foundation.

Prior Services

The Ethics Rule of USPAP requires appraisers to disclose to the client any other services they have provided in
connection with the subject property in the prior three years, including valuation, consulting, property
management, brokerage, or any other services. We have
not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three‐year period immediately preceding acceptance of this assignment.

Scope of Work In accordance with our correspondence, the scope of this assignment will require IRR – Sacramento to consider all relevant and applicable approaches to value as determined during the course of our research, subject property analysis and preparation of the report.

Please note, Federal banking regulations require banks and other lending institutions to engage appraisers where
FIRREA compliant appraisals must be used in connection
with mortgage loans or other transactions involving
federally regulated lending institutions. Given that
requirement, this appraisal may not be accepted by a
Federally‐regulated financial institution.

Appraisal Report Format The appraisal will be communicated in an Appraisal Report – Summary / Standard format. All work will be performed under the direct supervision of the undersigned, together with other staff members. The appraisal and this letter agreement will be subject to our standard assumptions and limiting conditions a copy of which is attached as
Attachment I.

Fee The total fee for this assignment will be $1,900.

It is understood that simple interest of 15% per annum will accrue on any unpaid balance for compensation due, subject to reduction pursuant to any applicable usury law. We shall also be entitled to recover our costs (including attorneys’ fees), associated with collecting any amounts owed or
otherwise incurred in connection with this assignment. If the assignment is cancelled by either party prior to completion, you agree to pay us for all our expenses and our time to date based upon the percentage of work completed. Upon
default, we shall be permitted to file a lien against the subject property for any amounts owed pursuant to this
engagement.

Start, Acceptance, and Delivery
Dates
Provided the signed contract is received within 3 business days, we will commence work on the assignment.

Additionally, with these conditions met we anticipate
delivery of the appraisal report on March 12, 2021. This delivery date is contingent on the absence of events
outside our control, timely access for inspection of the subject property, as well as our receipt of all requested information necessary to complete the assignment.

Report Copies A PDF of the appraisal report will be provided.

Inspection Disclosure Please be advised that we are not experts in the areas of building inspection (including mold), environmental
hazards, ADA compliance or wetlands. Therefore, unless we have been provided with appropriate third‐party expert
reports, the appraisal will assume that there are no
environmental, wetlands, or ADA compliance problems.

The agreed upon fees for our services assume the absence of such issues inasmuch as additional research and analysis may be required. If an expert is required, you are
responsible for their selection, payment and actions.

Litigation Clause In the event that we receive a subpoena or are called to testify in any litigation, arbitration or administrative hearing of any nature whatsoever or as a result of this engagement or the related report, to which we are not a party, you agree to pay our then current hourly rates for such
preparation and presentation of testimony.

Use of Data You agree that: (i) the data collected by us in this assignment will remain our property; and (ii) with respect to any data provided by you, IRR – Sacramento and its
partner companies may utilize, sell and include such data (either in the aggregate or individually), in the Integra database and for use in derivative products. You agree that all data already in the public domain may be utilized on an unrestricted basis. Finally, you agree that we may use
commercially available as well as proprietary software
programs to perform your assignment (web based and
others).

Conflicts of Interest If we discover during the course of preparing the appraisal there is a conflict of interest with a separate IRR office, we reserve the right to cancel the agreement and withdraw
from the assignment without incurring penalties.

If you agree with the terms set forth in this letter and wish us to proceed with the engagement, please sign below and return one copy to us. Thank you for this opportunity to be of service and we look forward to working with you.

AGREED & ACCEPTED BY:

Integra Realty Resources – Sacramento

Lance Jordan
Managing Director

February 24, 2021

AGREED
& ACCEPTED BY:

________________________________________
Laura Matteoli
[email protected]
916‐774‐5284

________________________________________
Date

ATTACHMENT I
STANDARD ASSUMPTIONS & LIMITING CONDITIONS

The appraisal report and any work product related to the engagement will be limited by the following standard assumptions:

1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The subject property is under responsible ownership and competent management and is available for its highest and best use.

2. There are no existing judgments or pending or threatened litigation that could affect the value of the subject property.

3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the subject property more or less valuable. Furthermore, there is no asbestos in the subject property.

4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction.

5. The subject property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes.

6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.

The appraisal report and any work product related to the engagement will be subject to the following limiting conditions, except as otherwise noted in the report:

1. An appraisal is inherently subjective and represents our opinion as to the value of the subject property appraised.

2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events.

3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated.

5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the subject property without compensation relative to such additional employment.

6. We have made no survey of the subject property and assume no responsibility in connection with such matters. Any sketch or survey of the subject property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers

the subject property as described in this report, and the areas and dimensions set forth are assumed to be correct.

7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the subject property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal.

8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations, such as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes.

9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the subject property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context.

11. Information, estimates and opinions contained in the report and obtained from third‐party sources are assumed to be reliable and have not been independently verified.

12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results.

13. If the subject property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the subject property at the time these leases expire or otherwise terminate.

14. Unless otherwise stated in the report, no consideration has been given to personal property located on the subject property or to the cost of moving or relocating such personal property; only the real property has been considered.

15. The current purchasing power of the dollar is the basis for the value stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur.

17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic

conditions, the absence of material changes in the competitive environment and other matters.

Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material.

18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the subject property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject property with ADA regulations.

20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR – Sacramento and/or any of its officers, owners, managers, directors, agents, subcontractors or employees (the “Integra Parties”) shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property.

21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the subject property, and the value conclusion is predicated on the assumption that wetlands are non‐ existent or minimal.

23. The appraisal report and value conclusions for an appraisal assumes the satisfactory completion of construction, repairs or alterations in a workmanlike manner.

24. IRR – Sacramento is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the

engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable).

25. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer‐seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of the subject property.

26. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future.

As will be determined during the course of the assignment, additional extraordinary or hypothetical conditions may be required in order to complete the assignment. The appraisal shall also be subject to those assumptions.

City Manager’s Office / Economic Development Department 311 Vernon Street, Roseville, CA 95678
_________________________________________________________________________ ____________

March 26, 2021

To Whom It May Concern,

RE: Notice of Availability/Offer to Sell or Lease Surplus Property

Dear Ms. Escovedo:

As required by Government Code Section 54220 of the State of California, City of Roseville is providing notification that the City of Roseville intends to sell the surplus property listed in the accompanying table.

In accordance with Government Code Section 54222, subsecs. (e), you have sixty (60) days from the date this offer was sent via certified mail or electronic mail to notify the City of Roseville of your interest in acquiring the property for park and recreational or open-space purposes. However, this offer shall not obligate the City of Roseville to sell or lease the property to you. Instead, the City of Roseville would enter into at least ninety (90) days of negotiations with you pursuant to Government Code Section 54223. If no agreement is reached on sales price and terms, or lease terms, the City of Roseville may market the property to the general public.

As required by Government Code Section 54227, if the City of Roseville receives more than one letter of interest during this 60 day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.

In the event your agency or company is interested in purchasing or leasing the property, you must notify the City of Roseville in writing within sixty (60) days of the date this notice was sent via certified mail or electronic mail. Notice of your interest in acquiring the property shall be delivered to Wayne Wiley, Economic Development Department, at 311 Vernon Street. You may also direct your questions to [email protected] or by calling (916) 774-5283.

Entities proposing to submit a letter of interest are advised to review the requirements set forth in the Surplus Land Act (Government Code Section 54220-54234). Thank you for reviewing this important information and we look forward to hearing of any intentions no later than sixty (60) days after your receipt of this letter.

Regards,

Wayne Wiley
Economic Development Manager

May 21, 2021
Wayne
Wiley
Economic Development Manager/Economic Development Department 311 Vernon Street
Roseville, CA 95678
Sent electronically to [email protected]
Mr.

Wiley,
On behalf of BRIDGE Housing Corporation (BRIDGE), we are excited to express our interest in acquiring 505 Royer Street & 300 Taylor Street to develop housing with 100% affordable units. We applaud the City’s leadership in providing surplus property to nonprofit affordable housing developers like BRIDGE and are committed to forming a development team that can deliver on the City’s financial goals while satisfying Roseville’s housing goals in the most recent Regional Housing Needs Assessment.

As a mission-driven non-profit with a 37-year track record in affordable housing development and innovation, BRIDGE is ready to assist the City of Roseville in providing affordable housing that fits the character of Downtown Roseville. Our organization and staff bring experience that is uniquely matched with the challenges of this site:
• Unmatched track record: Since 1983, BRIDGE has developed more than 18,000 housing units in over a hundred properties. We are one of the largest non-profit developers of affordable housing on the West Coast. Our team has successfully developed affordable housing for families, seniors, and teachers. Our local experience includes numerous projects in Sacramento County and a senior affordable housing project located in North Highlands that is a 15-minute drive from 505 Royer Street.
• Innovation-driven: BRIDGE is a thought leader in the affordable housing industry and led the way for modular housing with two recently completed projects, Marea Alta and La Vereda in San Leandro. We are also the developer that created the 4%/9% hybrid in California while working with the California Tax Credit Agency on how to implement the financing in a successful model.

We believe the urgency of this housing crisis requires new thinking and new approaches, whether it is in financing or design and construction.
• Financial strength: BRIDGE is unique among nonprofit developers in possessing the financial strength and expertise to play a lead role in complex, public-private projects. We frequently team with market-rate partners such as Brookfield, Holland Partners, Lowe Enterprises, Avalon Bay, Essex Residential Trust, and Summerhill – allowing our local partners to leverage limited public resources. Unique amongst our peers, we have an A+ rating from Standard & Poor’s which allows BRIDGE to obtain financing at more advantageous terms than others.

Conceptual Plan for 505 Royer Street
Attached, please find our proposal for a 57-unit senior affordable building. These units will be available to seniors, adults who are 62 years of age or older, who make between 30% to 80% of the Average Median Income of Placer County. BRIDGE sees 505 Royer as an amazing place for seniors to thrive socially and economically. This will be a community where seniors can volunteer at the library in the morning, walk to Royer park during the day, and then head into Downtown at night all without necessarily needing a car. The location of this site allows for an expanded support network, energizes the seniors, prevents social isolation, and helps create a sense of community and safety for the development. BRIDGE’s nuanced services programming will also help decrease isolation. Strong supportive services for the senior population, most of who live on Social Security, means focusing on maintenance or improvement of health, wellness and quality of life for each individual. At the Coronet, BRIDGE’s service provider has shown that strong supportive services amongst seniors led to a reduction in health care expenditures, and lower rates of depression symptoms. Once in an agreement with the City of Roseville, BRIDGE would be happy to work with the City to further discuss design, affordability, and finance assumptions.

We look forward to working with the City of Roseville to ensure this site provides not only affordable homes and financial return to the City but also sets a precedent for innovation and collaboration in future projects. Our team is prepared to bring the full breadth of our experience, financial capacity, and innovative thinking to Roseville. Should you have any questions or need further information, please do not hesitate to contact Brad at 415.321.3565 or [email protected].

Sincerely,
Brad Wiblin
Executive Vice President
BRIDGE Housing Corporation
E
nclosed: BRIDGE Housing Overview, Proposed Unit Mix and Income Level, a Conceptual Plan and Relevant BRIDGE Project Examples

BUILDING SUSTAINING LEADING
BRIDGE Housing strengthens communities and improves the lives of its residents, beginning—but not ending—with affordable housing.

About BRIDGE Housing
Since 1983, BRIDGE has been a mission-driven
nonprofit that operates like a business. We pay
close attention to the double-bottom line of
financial and social return on investment, always
in pursuit of quality, quantity, affordability.
x Participated in the development of more
than 18,000 homes and apartments in
California, Oregon and Washington, with total
development cost of over $3 billion
x Approximately 12,300 apartments under
property and/or asset management
x $3.8 billion in total development cost
currently under construction and in pipeline
x Consistently ranked among the top affordable
housing developers in the nation, according
to Affordable Housing Finance
x Successful track record of partnerships
with all levels of government, market-rate
developers and other nonprofits
x 350+ resident programs at 80+ properties
x A+ rating from Standard & Poor’s, first
nonprofit developer of its kind to be rated
x Recipient of more than 180 local, national and
international awards, including five ULI Global
Awards for Excellence
x Headquartered in San Francisco, with offices
in Los Angeles, San Diego, Orange County,
Portland and Seattle
05/2020
www.bridgehousing.com

505 Royer Street Apartment – Proposed Unit Mix and Income Level Set Aside Rent Level Bedroom
Count
Number of
Units
Net Rent Vouchers
Senior 30% AMI 1 BR 8 $457 8
Senior 40% AMI 1 BR 5 $619
Senior 50% AMI 1 BR 20 $781
Senior 80% AMI 1 BR 23 $1,267
Managers
Unit
N/A 2 BR 1 N/A
Average
Affordability

58.5% AMI Total Units 57
Income
Level
One Person Two
Person
30% AMI $19,050 $21,750
40% AMI $25,400 $29,000
50% AMI $31,750 $36,250
80% AMI $50,800 $58,000

02 Architecture + Design
PROJECT NO.
02 Architecture + Design
PROJECT NO.

BUILDING SUSTAINING LEADING
BRIDGE houses over 4,500 people in its San Francisco properties and has:
• A 30+ year relationship with San Francisco
• Participated in the development of over 3,200 senior homes • Over 800 senior units in the pipeline

BRIDGE HOUSING/SENIOR DEVELOPMENTS
BRIDGE has participated in the development of over 4,100 homes for seniors with over 500 seniors units in the pipeline.

Completed Projects Location Units
25 Sanchez San Francisco 90
255 Woodside San Francisco 110
3850 18th Street San Francisco 107
462 Duboce San Francisco 42
Alta Torre Palo Alto 56
Armstrong Place Senior Housing San Francisco 116
Celadon at 9th & Broadway* San Diego 63
Chelsea Gardens* Santa Rosa 26
Chestnut Creek S. San Francisco 40
Coleridge Park Homes San Francisco 49
Cornelius Place Cornelius 45
Emery Villa Apartments Emeryville 50
Frank G. Mar Community Housing Oakland 65
Foothill Farms Sacramento 138
Geraldine Johnson Manor San Francisco 54
Heritage Park Livermore 167
Heritage Square Pasadena 70
Independence Plaza Alameda 186
La Vereda San Leandro 85
Madera Vista* Temecula 20
Mabuhay Court San Jose 96
Magnolia Plaza S. San Francisco 125
Marina Tower Annex Vallejo 57
Marina Tower Apartments Vallejo 155
Metro Center Senior Homes Foster City 60
Mission Dolores San Francisco 91
North Beach Place* San Francisco 48
Oak Circle San Jose 100
Ocean View Pacifica 99
Pacific Oaks Pacifica 104
Pinole Grove Apartments Pinole 70
Redwood Shores Vallejo 120
Rotary Valley Senior Village Lucas Valley 80
Completed Projects Location Units
San Rafael Commons San Rafael 83
Sierra Vista Apartments Sacramento 78
St. Joseph’s Senior Oakland 84
Strobridge Court* Castro Valley 96
Sutterview Apartments Sacramento 76
Sycamore Place Danville 74
The Arbors Hercules 60
The Carquinez Richmond 36
The Coronet San Francisco 150
The Fountains Mountain View 124
The Parkview Pleasanton 105
The Peninsula Regent San Mateo 207
Victoria at COMM22 San Diego 70
Visitacion Garden Brisbane 14
Washington Plaza Sacramento 76
Woodland Park Hillsboro, OR 40
Total Completed 4,157
In Construction
735 Davis San Francisco 54
Total in Construction 54
Predevelopment
Kindred San Diego 60
1740 San Pablo Avenue Berkeley 61
Cedar & Kettner San Diego 64
Heritage Square Phase 2 Pasadena 70
Paloma Del Mar (acq/rehab) Watsonville 130
Vermont & Manchester Senior Los Angeles 62
Westview Village Senior Ventura 50
Total in Predevelopment 497
GRAND TOTAL 4,708
* Mixed Population Development

BUILDING SUSTAINING LEADING
Foothill Farms, Sacramento, CA
Located in Sacramento, Foothill Farms was a former parking lot redeveloped into a senior rental community providing 138 apartment homes.

Affordable Units / Total Units: 138 / 138
Original Project Value: $26,000,000
Designed in a traditional style with earth-tone buildings surrounding a series of lush, landscaped courtyards, the apartments feature semi-private patios and decks, wall-to-wall carpeting and all-electric kitchens with dishwashers.

Elevators and an emergency call system provide convenience and additional safety for senior residents. Among the shared amenities are an elegant community room, pool and spa, bocce ball court, community garden and on-site laundry. The central courtyard also functions as a bioswale, ﬁ ltering and slowing storm runoff prior to its entry into the public storm drainage system. The site offers easy access to shopping, transportation and other amenities. Foothill Farms represents the culmination of many years of effort by the community to bring about the successful redevelopment of a formerly underutilized parking lot as new housing.

Architect: Kuchman Architects, PC
General Contractor: TRICORP HEARN Construction
Financial Partners: Sacramento Housing and Redevelopment Agency, Wells Fargo, California Community Reinvestment Corp

BUILDING SUSTAINING LEADING
The Rivermark, West Sacramento, CA
Situated in the 188-acre Bridge District smart growth area along the Sacramento River, The Rivermark offers 70 units of affordable housing for families.

Affordable Units / Total Units: 70 / 70
Original Project Value: $28,000,000
Residents of The Rivermark have access to an indoor community room and classroom space located on the ground ﬂ oor of the building—designed with large windows that activate the corridor along Fifth Street. Residents can enjoy landscaped outdoor space along Fifth Street and a peaceful community courtyard including a children’s rock climbing wall. The development will be GreenPoint Rated and includes a number of efﬁ cient building systems and components. The property is located three blocks from Raley Field (home to the Sacramento River Cats baseball team), a block from the River Walk Trail and is within walking distance of the Yolobus stop, which provides transit within West Sacramento and across the river to downtown Sacramento.

Architect: David Baker + Partners Architects
General Contractor: Sunseri Associates, Inc.

Financial Partners: City of West Sacramento, Chase, Raymond James, California Department of Housing and Community Development, California Community Reinvestment Corporation

BUILDING SUSTAINING LEADING
Cornelius Place brings 45 apartment homes for low-income seniors along with a new public library to Cornelius, Oregon.

Cornelius Place, Cornelius, OR
Affordable Units / Total Units: 45 / 45
Original Project Value: $13,005,000
BRIDGE partnered with Bienestar, Inc. and the City of Cornelius to develop Cornelius Place, a mixed-use development located near city services and amenities. The multi-use Cornelius Place development houses the expanded Cornelius Public Library including much-needed community convening space, a YMCA center, and 45 affordable apartments for adults age 55 and older. The new library provides a variety of services to support children, families, and seniors, including pre-reading and early education programs, student success programs and adult education. The residential component of Cornelius Place includes two floors of studio, one- and two-bedroom apartments for seniors with household incomes of up to 50-60 percent of Area Median Income (AMI). 11 of the households utilize project-based Section 8 vouchers, thereby allowing the project to target even deeper affordability with those residents paying no more than 30% of their income in rent. In addition to the expanded public library, the property features community convening space, a YMCA center, a landscaped courtyard and a resident community room for social gatherings and resident programs.

Architect: Scott Edwards Architecture Contractor: Walsh Construction Co.

Financial Partners: Oregon Housing and Community Services, Metro, Washington County, Housing Authority of Washington County, City of Cornelius, Enterprise Community Investment, Heritage Bank, Network for Oregon Affordable Housing, State of Oregon, State of Oregon Department of Administrative Services

BUILDING SUSTAINING LEADING
Madera Vista was originally a partially constructed, foreclosed property in Temecula when BRIDGE took on this phased development.

Madera Vista, Temecula, CA
Affordable Units / Total Units: 110 / 110
Original Project Value: $32,005,000
Madera Vista is a three-phase, intergenerational, mixed-income property located in Temecula. Phase One comprises 20 affordable apartments for households earning up to 80% of the area median income and Phases Two and Three offer 70 affordable apartments for households earning 30-60% of the area median income, as well as 20 units designed specifically for seniors. Seven apartments are set aside for Project-Based Section 8 vouchers and filled on a referral basis from the Housing Authority of the County of Riverside.

Madera Vista is located close to transit and amenities including two grocery stores, a hardware store, banks and other retail shops, along with several nearby large parks.

Architects: Phase I: Irwin Pancake; Phases II & III: KTGY Group, Inc.

General Contractors: Phase I & II: Wermers Multifamily; Phase III:

Sun Country Builders
Financial Partners: All Phases: City of Temecula; Phase II: Wells Fargo, California Community Reinvestment Corporation; Phase III:

County of Riverside Economic Development Agency, Housing Authority of the County of Riverside, Citibank, National Equity Fund, California Debt Limit Allocation Committee; Phases II & III: California Tax Credit Allocation Committee

BUILDING SUSTAINING LEADING
In 1988, BRIDGE launched an in-house property management company to maintain high-quality standards and community responsiveness in our award-winning developments.

BRIDGE Property Management Company (BPMC)
To the benefit of our residents, partners and partners, we are careful stewards of the operational, physical and financial health of our properties. Today BPMC manages approximately 9,000 rental apartments in more than 90 developments. BPMC also manages 61,000+ square feet of commercial space within our buildings, including projects with community-serving uses such as childcare centers and health clinics. Property management revenues in excess of costs are reinvested to support resident and community services, and to create new affordable housing opportunities.

Among the responsibilities of our dedicated, professional team:
• Leasing activities, including applicant screening and initial income certification • Rent collection
• Annual income recertifications for existing residents • Maintenance of apartments and common areas
• Collaboration with service providers to support residents’ housing retention • Community activities and resident relations
BPMC has a proven track record of managing properties with complex regulatory requirements, including set-asides for special populations, a range of rental tiers and layered subsidy programs such as low income housing tax credits, tax exempt bonds, HOME, CDBG, HOPWA, Section 8, Federal Home Loan Bank Affordable Housing Program, MHP, RHCP and other sources.

PROJECT NO.

ROYER STREET APARTMENTS ROSEVILLE, CACOVER SHEET
1332-0004 02/04/2022
A00

PROJECT TEAM
ARCHITECT:

LPAS ARCHITECTURE + DESIGN
2484 NATOMAS PARK DRIVE, SUITE 100
SACRAMENTO, CA 95833
CONTACT: CHRIS KELLY
916.443.0335
[email protected]
OWNER / DEVELOPER:

BRIDGE HOUSING CORPORATION
600 CALIFORNIA STREET, SUITE 900
SAN FRANCISCO, CA 94108
CONTACT: CLAIRE KOSTOHRYZ
415.321.4013
[email protected]
LANDACAPE ARCHITECT:

LPAS ARCHITECTURE + DESIGN
2484 NATOMAS PARK DRIVE, SUITE 100
SACRAMENTO, CA 95833
CONTACT: THAIS DEL CASTILLO
916.443.0335
[email protected]

VICINITY MAP SHEET INDEX
ARCHITECTURAL:

A00 COVER SHEET
A01 OVERALL SITE PLAN
A02 RENDERING
A03 RENDERING
A04 BUILDING PLANS

GROUND FLOOR

SECOND FLOOR
A05 BUILDING PLANS

THIRD FLOOR

FOURTH FLOOR
A06 BUILDING PLANS

FIFTH FLOOR

ROOF PLAN
A07 EXTERIOR ELEVATIONS
A08 UNIT PLANS
A09 BUILDING SECTION

LANDSCAPE
L01 LANDSCAPE PLAN
CIVIL:

C01 EXISTING CONDITIONS
C02 SITE PLAN
C03 PRELIMINARY GRADING PLAN
C04 PRELIMINARY GRADING PLAN
C05 PRELIMINARY UTILITY PLAN
C06 PRELIMINARY STORMWATER QUALITY PLAN

ROYER STREET APARTMENTS

PROJECT DATA
505 ROYER STREET ROSEVILLE, CA 95678

ENTITLEMENT SUBMITTAL
CIVIL ENGINEER:

BKF ENGINEERING.
980 9TH STREET, SUITE 2300
SACRAMENTO, CA 95614
CONTACT: JIM MCCURDY
916.556.5800
JMCCURDY@BKFCOM
4 YARD BIN4 YARD BIN4 YARD BIN
T
;;;
;;;

COMPACTCOMPACTCOMPACTCOMPACT

COMPACTCOMPACTCOMPACTCOMPACTCOMPACT
6' HIGH MASONRY WALLLANDSCAPE AREA

LANDSCAPE AREA
(E) PUBLICSIDEWALKPROPERTY LINE
PROPERTY LINE, TYP.

LANDSCAPEAREA, TYP.

LANDSCAPEAREA, TYP.
(E) TREE TOREMAIN

CONCRETEWALKTRANSFORMER

PUBLIC UTILITYEASEMENT
PROPERTY LINE, TYP.
(E) PUBLICSIDEWALK

RAMP CONNECTIONTAYLOR STREET
4'-0"
18'-0"
(E) RESIDENTIAL
(E) RESIDENTIAL

GOPHER GULCH ALLEY

ROYER STREET
46'-0"

COVEREDPATIO
10'-0"
20'-0"
26'-0"
9'-0"
24'-0"
3"
4'-10"
7"
15'-0"
6' HIGH MASONRY WALL,SEE DETAIL B, THIS SHEETLANDSCAPE AREA TRASH STAGINGAREALANDSCAPEAREA, TYP.

PROPERTY LINE, TYP.24'-0"
12'-0"
18'-0"
10'-0"
25' & 45' TRASHTURNING RADIUS
BENCH4' X 8' RAISEDPLANTER, TYP.
28'-0"
24'-0"COMMUNITY GARDEN WITH42" OPEN FENCE, SEEDETAIL A, THIS SHEET LANDSCAPEAREA, TYP.

CONCRETEPAVING

DECOMPOSEDGRANITE
TRELLIS,TYP.

RESIDENT COURTYARD

RAMP CONNECTION

BUILDING OVERHANG
LANDSCAPEAREA, TYP.

LANDSCAPEAREA, TYP.

REGULATORYFLOODWAY PERFEMA MAP

LIMIT OF BFE PERFEMA MAP
PROPERTY LINE, TYP.

DRY CREEK

ROYER PARK

STORMWATER TREATMENT LANDSCAPE AREA
65'-0"
2'-11"
5'-6"
5'-0"

PEDESTRIANCROSSING
3'-11"
14'-0"9'-0"

ENHANCED PEDESTRIANPAVING AT ENTRY

TERRACED PLANTERSWITH SHRUBS &GROUNDCOVER
ENHANCED PEDESTRIANPAVING AT PATIOBUILDING COLUMN, TYP.TRASH ROOM 18'-0"18'-0"9'-0"TYP.
14'-0"
9'-0"
18'-0"
(E) TREE TOREMAIN, TYP.
(E) TREE TO BEREMOVED, TYP.LANDSCAPEAREA, TYP.

BLDG. SETBACK
BLDG.SETBACK
BLDG.SETBACK
BLDG.SETBACK
02/04/2022 PROJECT NO.1332-0004ROYER STREETROSEVILLE, CAA01OVERALL SITE PLAN N FT6040 020 SCALE: 1" = 20'-0" N.T.S.CMU WALL AT PROPERTY LINEA 6'-0"

FINISH GRADECMU WALL, SPLITFACE BOTH SIDES
DECORATIVEWALL CAP, TYP.
3'-6"
10'-0" O/C., TYP.
3" CLR.
4" SQUARE HSS POST

FINISH GRADECONCRETE FOOTING
4'-6"
1'-6"WIRE FENCE AT COMMUNITY GARDENB 1332-0004_ZSPN.T.S. 3"CLR.
4" SQ. X 316" HSS TOP RAIL
4" SQ. X 316" HSS BOTTOM RAIL
3" X 3" SQUARE WELDEDWIRE MESH, GALVANIZED,0.2500 WIRE DIAMETER 6"MIN. TYP.
18' HIGH PARKING LOT LIGHTCN.T.S.

PROJECT NO.

ROYER STREET APARTMENTS ROSEVILLE, CAPERSPECTIVE RENDERING 1332-0004 02/04/2022
A02ROYER STREET VIEW
PROJECT NO.

ROYER STREET APARTMENTS ROSEVILLE, CAPERSPECTIVE RENDERING 1332-0004 02/04/2022
A03TAYLOR STREET VIEW
1 A09
UNIT
A2
UNIT
A2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A1
UNIT
A2.2
UNIT
A1.1
UNIT
A2.2 UNIT
S1
STAIR
STAIR
2 A09

VOLUME VOLUME
UNIT
A3
UP
UP
UP
DN
UNIT
A2.1
1 A09
UNIT
A2
TRASH
UNIT
A2
UNIT
A2
UNIT
A2
UNIT
A4
UNIT
A2

OFFICE OFFICE
EL: 149.42
EL: 146.92
EL: 146.92
EL: 151.42
95' - 3" 3' - 9" 10' - 0"
149' - 6"
51' - 8"
2 A09

COURTYARD

SEE LANDSCAPE

PLAN FOR DETAIL

COVERED PATIO

COVERED PATIO
UP

COMMUNITY
ROOM
OFFICE

LOBBY/LEASING
EQ
WORK
R.R. R.R.

MAINTENANCE

UTILITIES
TRASH
TRASH

KITCHEN
FIRE
ST.

LAUNDRY
UNIT
S1.1
11' - 9" 137' - 9"

FINISHED GRADE
AT ALLEY = EL: 143.50

SEE SITE PLAN

FOR RAMPING

SEE SITE PLAN

FOR RAMPING
46' - 2" 51' - 8"
0 PROJECT NO.
4 8 12
SCALE: 3/32"=1'-0"
FT

ROYER STREET APARTMENTS ROSEVILLE, CABUILDING PLANS
1332-0004 02/04/2022
A04FIRST AND SECOND FLOOR PLANS
3/32" = 1'-0" 2SECOND FLOOR PLAN
3/32" = 1'-0" 1FIRST FLOOR PLAN
1 A09
UNIT
S1 UNIT
A1
UNIT
A1.1
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.3
STAIR
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.1
UNIT
A2.2
UNIT
A3.1
UNIT
A1.1
UNIT
A1
UNIT
S1
UNIT
A2.2
UNIT
A2.2
2 A09
UP
DN
UP
DN
1 A09
UNIT
A1
UNIT
A1
UNIT
A1.1
UNIT
A1.1
UNIT
A2.2
UNIT
A2.2
UNIT
A2.1
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.3
UNIT
A3.1
UNIT
S1
UNIT
S1
CIR.

STAIR
STAIR
2 A09
UP
DN
UP
DN

LAUNDRY
TRASH
0 PROJECT NO.
4 8 12
SCALE: 3/32"=1'-0"
FT

ROYER STREET APARTMENTS ROSEVILLE, CABUILDING PLANS
1332-0004 02/04/2022
A05THIRD AND FOURTH FLOOR PLANS
3/32" = 1'-0" 1THIRD FLOOR PLAN
3/32" = 1'-0" 2FOURTH FLOOR PLAN
1 A09
UNIT
S1
UNIT
A2.2
UNIT
A2.2
UNIT
A2.3
UNIT
A2
UNIT
A2
UNIT
A2
UNIT
A2.4
UNIT
B1
UNIT
S1
UNIT
A2.2
UNIT
A2.2
STAIR
STAIR
2 A09
DN
DN
UNIT
A2
UNIT
A3
LOWER
ROOF
LOWER
ROOF

SOLAR PANELS
TYP. OF 276

ELEVATOR/STAIR
ROOF
5TH FLOOR
ROOF
0 PROJECT NO.
4 8 12
SCALE: 3/32"=1'-0"
FT

ROYER STREET APARTMENTS ROSEVILLE, CABUILDING PLANS
1332-0004 02/04/2022
A06FIFTH FLOOR PLAN AND ROOF PLAN
3/32" = 1'-0" 1FIFTH FLOOR PLAN\
ROOF
BELOW
ROOF
BELOW
3/32" = 1'-0" 2ROOF PLAN
0 PROJECT NO.
4 8 12
SCALE: 3/32"=1'-0"
FT

ROYER STREET APARTMENTS ROSEVILLE, CAEXTERIOR ELEVATIONS 1332-0004 02/04/2022
A07
UNIT
S1
29' - 5 1/2"
19' - 7"
BATH

LIVING/SLEEPING
19' X 10'

KITCHEN
UNIT
S1.1
23' - 5"
26' - 0 1/2" BATH

LIVING/SLEEPING
19' X 11'

KITCHEN
UNIT
A1
23' - 4"
27' - 9"
BATH
LIVING
11' -6" X 12' -6"

KITCHEN

BEDROOM
10' -8" X 10' -8"
UNIT
A1.1
23' - 4"
28' - 0"
BATH
LIVING
11' -6" X 12' -6"

KITCHEN

BEDROOM
10' -8" X 10' -4"
UNIT
A2
23' - 0"
26' - 0"
BATH
LIVING
11' -3" X 11' -0"

KITCHEN

BEDROOM
10' -8" X 11' -6"
UNIT
A2.1
23' - 0"
28' - 0"
BATH
LIVING
11' -3" X 13' -0"

KITCHEN

BEDROOM
10' -8" X 11' -6"
UNIT
A2.2
23' - 0"
28' - 0"
BATH
LIVING
11' -3" X 13' -0"

KITCHEN

BEDROOM
10' -8" X 11' -6"
UNIT
A2.3
27' - 11"
25' - 1"
BATH
LIVING
12' -6" X 13' -3"

KITCHEN

BEDROOM
11' -8" X 10' -4"
UNIT
A2.4
23' - 0"
26' - 0"
BATH
LIVING
11' -3" X 12' -6"

KITCHEN

BEDROOM
10' -8" X 11' -6"
25' - 11"
25' - 8"
UNIT
A3
BATH
LIVING
11' -0" X 11' -8"

KITCHEN

BEDROOM
10' -6" X 11' -6"
UNIT
A3.1
27' - 11"
27' - 8"
BATH
LIVING
11' -0" X 11' -8"

KITCHEN

BEDROOM
12' -6" X 11' -0"
UNIT
B1
34' - 6"
26' - 0"
BATH
LIVING
11' -3" X 11' -0"

KITCHEN

BEDROOM
11' -0" X 10' -8"
BATH

BEDROOM
10' -8" X 10' -8"
UNIT
A4
BATH
LIVING
11' -6" X 10' -8" KITCHEN

BEDROOM
10' -2" X 11' -0"
26' - 0"
26' - 0"
0 PROJECT NO.
4 8 12
SCALE: 1/8"=1'-0"
FT

ROYER STREET APARTMENTS ROSEVILLE, CAUNIT PLANS
1332-0004 02/04/2022
A08
1/8" = 1'-0" 1UNIT S1
0 PROJECT NO.
4 8 12
SCALE: 1/8"=1'-0"
FT

ROYER STREET APARTMENTS ROSEVILLE, CAUNIT PLANS
1332-0004 02/04/2022
A08
1/8" = 1'-0" 2UNIT S1.1
1/8" = 1'-0" 3UNIT A1
1/8" = 1'-0" 4Unit A1.1
1/8" = 1'-0" 5Unit A2
1/8" = 1'-0" 6Unit A2.1
1/8" = 1'-0" 7Unit A2.2
1/8" = 1'-0" 8Unit A2.3
1/8" = 1'-0" 9Unit A2.4
1/8" = 1'-0" 10Unit A3
1/8" = 1'-0" 11Unit A3.1
1/8" = 1'-0" 13Unit B1
469 S.F.
7 OCCURANCES
469 S.F.
1 OCCURANCE
590 S.F.
5 OCCURANCES
628 S.F.
5 OCCURANCES
594 S.F.
11 OCCURANCES
574 S.F.
3 OCCURANCES
614 S.F.
27 OCCURANCES
675 S.F.
3 OCCURANCES
574 S.F.
1 OCCURANCE
598 S.F.
1 OCCURANCE
657 S.F.
3 OCCURANCES
896 S.F.
1 OCCURANCE
575 S.F.
1 OCCURANCE\ 1/8" = 1'-0" 12Unit A4
2 A09
3rd Floor
20'-0"
4th Floor
30'-0"
5th Floor
40'-0"
2nd Floor
10'-0"
1st Floor
0'-0"
Community Level
2'-6"
Roof
50'-7"
UNIT
A2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2
STAIR
STAIR
STAIR
STAIR
UNIT
S1
UNIT
S1
UNIT
S1
UNIT
A1
UNIT
A1
R.R. R.R.

COVERED
PATIO
FLOOR ELEV = 151.42
FLOOR ELEV = 146.92
FLOOR ELEV = 149.42

TAYLOR STREET
7' - 0"
1 A09
UNIT
B1
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2
CIR.

UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2
UNIT
A2
UNIT
A2
UNIT
A2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
UNIT
A2.2
STAIR
1st Floor
0'-0"
Street Level
4'-6"
CIR.

CIR.

CIR. UNIT
S1
UNIT
S1
UNIT
S1
CIR.

UNIT
S1
UNIT
S1
UNIT
S1
UNIT
S1
UNIT
S1.1

DASHED LINE INDCATES

EXISTING GRADE

LOBBY/LEASING
STAIR
FLOOR ELEV = 151.42
FLOOR ELEV = 146.92

ROYER STREET

REAR FINISHEDD GRADE
ELEV= 143.50

AVERAGE GRADE LINE
58' - 0 1/2"

BUILDING HEIGHT
2nd Floor
10'-0"
3rd Floor
20'-0"
4th Floor
30'-0"
5th Floor
40'-0"
Roof
50'-7"
FLOOR ELEV = 156.92
FLOOR ELEV = 166.92
FLOOR ELEV = 176.92
FLOOR ELEV = 186.92
TOP OF ROOF FRAMING = 197.42
TOP OF STAIR FRAMING = 206.42
0 PROJECT NO.
4 8 12
SCALE: 3/32"=1'-0"
FT

ROYER STREET APARTMENTS ROSEVILLE, CABUILDING SECTIONS
1332-0004 02/04/2022
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3/32" = 1'-0" 2SECTION B
4 YARD BIN4 YARD BIN4 YARD BIN
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ROYER STREET
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PROPERTY LINE, TYP.

PARKING LOT SHADE TREE, TYP.
(E) TREE TO REMAIN, TYP.

FLOWERING ACCENT TREE, TYP.

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NATIVE SHRUBS ANDGROUNDCOVER

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UPRIGHT EVERGREENSHRUBS

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SHRUB ANDGROUNDCOVERAREA, TYP.

RAISED PLANTERSWITH FLOWERINGSHRUBS, TYP.

SHRUB ANDGROUNDCOVERAREA, TYP.

SHRUB AND GROUNDCOVERAREA, TYP.

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02/04/2022 PROJECT NO.1332-0004ROYER STREETROSEVILLE, CAL01LANDSCAPE PLAN N FT6040 020 SCALE: 1" = 20'-0"

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02/02/2022PROJECT NO.1332-0004ROYER STREETROSEVILLE, CAEXISTING CONDITIONSC01 4 YARD BIN4 YARD BIN4 YARD BIN
T

ROYER ST

TAYLOR ST
02/02/2022PROJECT NO.1332-0004ROYER STREETROSEVILLE, CASITE PLAN C02

ROYER ST

TAYLOR ST
02/02/2022PROJECT NO.1332-0004ROYER STREETROSEVILLE, CA MATCH LINE,SEE SHEET C04
PRELIMINARY GRADING PLANC03
4 YARD BIN4 YARD BIN4 YARD BIN
T

SECTION A

SECTION B

SECTION C
02/02/2022PROJECT NO.1332-0004ROYER STREETROSEVILLE, CA MATCH LINE,SEE SHEET C03
PRELIMINARY GRADING PLANC04
4 YARD BIN4 YARD BIN4 YARD BIN
T

ROYER ST

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02/02/2022PROJECT NO.1332-0004ROYER STREETROSEVILLE, CAPRELIMINARY UTILITY PLANC05 4 YARD BIN4 YARD BIN4 YARD BIN
T
DMA 1
DMA 2
DMA 3

ROYER ST

TAYLOR ST
02/02/2022PROJECT NO.1332-0004ROYER STREETROSEVILLE, CAPRELIMINARY STORMWATER QUALITY PLANC06

COUNCIL COMMUNICATION
CC #:
2055
File #:
0600-01
Title:

International Brotherhood of Electrical Workers, Local 1245 - Master Memorandum of Understanding and Salary Schedule Updates
Contact:

Stacey Peterson 916-774-5374 [email protected]

Meeting Date: 5/11/2022
Item #: 9.1.

RECOMMENDATION TO COUNCIL
Staff recommends that City Council:

1 .

Adopt a resolution approving the attached International Brotherhood of Electrical Workers (IBEW), Local 1245, Master Memorandum of Understanding; and 2 .

Adopt an ordinance to approve the attached IBEW Salary Schedule A and Salary Schedule B (Appendix A) reflecting labor market adjustments or a minimum of a 2% general wage increase and Salary Schedule B compressed salary ranges from 15 steps to 12 salary steps.

BACKGROUND
The current Memorandum of Understanding (MOU) for IBEW, Local 1245, represented employees expires on April 30, 2022. During negotiations in the prior and recent cycles with the City of Roseville employee bargaining units, the City’s goal has been to ensure it is competitive in the marketplace on recruitment and retention among comparable agencies while remaining fiscally responsible.

As a service organization, labor is the City’s biggest expense and the City has taken steps to control costs in this area. In the past eight years, the City has implemented policies to slow payroll growth, reduce retirement benefits, set total compensation (salaries and benefit packages) at median in the labor market (except for Electric Department positions), and control pension costs by transferring the responsibility to employees to fund 100 percent of the employees’ share of pension costs. During the time the City was implementing these cost-control measures, services were expanded to meet the needs of our growing population, yet staffing was reduced by 40 percent per capita from FY2007-08 to FY2021-22.

Maintaining the quality of services along with the integrity of the City’s more than $4 billion worth of infrastructure requires balancing our ability to attract and retain a high-performing workforce while living within our means. To this end, the City has strived during this round of bargaining to recognize the exceptional efforts of City staff through the COVID pandemic by providing outstanding service to the community which has been substantiated by the recent community surveys. This resulted in recommending the City salary philosophy remain at 75th percentile for Electric positions and aligning to the 55th percentile of the market for Environmental Utilities and Public Works positions, which is estimated to increase compensation by about 1.5 percent to recruit and retain highly engaged employees to continue great service to the community. The City also created a tiered benefits structure to provide a different contribution at the Employee only, Employee Plus One or Employee Plus Family medical benefit levels to be used by active employees to remain competitive and cost effective in the market.

Ultimately, the City’s compensation philosophy seeks to maintain internal equity among employee groups’ medical benefits for current employees and to compare its total compensation with jurisdictions that are similar in size, services, and geographical location to remain competitive and retain our talented City employees who have produced high service levels affirmed by the community.

RECOMMENDATION

After numerous bargaining sessions since February 17, 2022, IBEW membership ratified the Tentative Agreement reached during contract negotiations on April 21, 2022. The significant provisions of the successor agreement are as follows:

Term

The term covers 4 years from May 1, 2022, to April 30, 2026.

Salaries and Benefits

Adjustments to the salaries fall in two categories: those that address general wage increases and labor market adjustments.

1. Labor Market Adjustments

A total compensation study was conducted in February 2022 to determine the job classifications in the bargaining group behind the labor market. The City will provide a salary increase for each classification in the Electric Department falling below the 75th percentile of the total compensation market by an amount to match the 75th percentile of the market. The City will provide a salary increase for each classification in the Environmental Utilities and Public Works Departments falling below the 55th percentile of the total compensation market by an amount to match the 55th percentile of the market. A minimum general wage increase (GWI) of two percent (2%) is included for each job classification on the IBEW Salary Schedule A and B, where there is no labor market adjustment (LMA) or the LMA is below two percent (2%). Total Compensation studies will be conducted in year 2, 3, and 4 of the agreement using the same salary philosophy and methodology as 2022, including a two percent (2%) minimum GWI increase. Staff will present updated salary schedules to Council in April for approval prior to implementation in May 2023, May 2024, and May 2025.

Year 1 LMAs
- Effective May 7, 2022, include the following wage increases:

CLASS
TITLE
Salary
Schedule
Sala
ry
Schedule
B %
Change
A %
Change
Electric Apprentice Line Technician

6.31%

6.31%
Electric Apprentice Metering System Technician

6.03%

6.03%
Electric Apprentice Substation Technician

6.50%

6.50%
Electric Drafting Technician I

6.74%

6.74%
Electric Drafting Technician II

6.74%

6.74%
Electric Engineering Technician I

9.91%

9.91%
Electric Engineering Technician II

9.91%

9.91%
Electric Line Technician

6.31%

6.31%
Electric Line Troubleshooter

8.83%

8.83%
Electric Materials Technician I

8.18%

8.18%
Electric Materials Technician II

8.18%

8.18%
Electric Metering System Technician

6.02%

6.02%
Electric Pre-Apprentice

6.31%

6.31%
Electric Preventive Data System Technician

8.18%

8.18%
Electric Substation Technician

6.50%

6.50%
Electric System Dispatcher

6.30%

6.30%
Electric Technology System Technician

5.18%

5.18%
Electric Utility Inspection Technician

6.30%

6.30%
Electronics Technician I

6.46%
No LMA
Electronics Technician II

6.46%
No LMA
Environmental Utilities Instrument and Control
Technician I

6.46%
No LMA
Environmental Utilities Instrument and Control
Technician II

6.46%
No LMA
Generation Maintenance Scheduler-Coordinator

8.18%

8.18%
Instrument and Control Technician

5.17%

5.17%
Materials Technician

5.56%

5.56%
Plant and Equipment Maintenance Worker I

5.56%

5.56%
Plant and Equipment Maintenance Worker II

5.56%

5.56%
Plant and Equipment Mechanic I

5.56%

5.56%
Plant and Equipment Mechanic II

5.57%

5.57%
Power Engineer I

3.16%

3.16%
Power Engineer II

3.16%

3.16%
Power Plant Engineer I

3.16%

3.16%
Power Plant Engineer II

3.16%

3.16%
Power Plant Mechanic

5.18%

5.18%
Power Plant Operator Technician I

5.18%

5.18%
Power Plant Operator Technician II

5.18%

5.18%
Predictive Maintenance Technician I

6.46%
No LMA
Predictive Maintenance Technician II

6.46%
No LMA
Preventative Maintenance Coordinator

18.29%

18.29%
Preventative Maintenance Technician I

6.46%

3.73%
Preventative Maintenance Technician II

6.46%

3.73%
SCADA System Technician

6.46%
No LMA
Senior Electric Line Technician

6.30%

6.30%
Senior Electric Materials Technician

8.18%

8.18%
Senior Electric Metering Systems Technician

6.02%

6.02%
Senior Electric Substation Technician

6.51%

6.51%
Senior Electric System Dispatcher

6.30%

6.30%
Senior Electronic Technician

6.46%
No LMA
Senior Plant and Equipment Mechanic

5.56%

5.56%
Senior Power Plant Operator Technician

5.18%

5.18%
Senior Preventative Maintenance Technician

6.46%
No LMA
Senior SCADA System Technician

6.46%
No LMA
Senior Wastewater Utility Maintenance Worker

3.27%

3.27%
Senior Water Distribution Worker

3.27%

3.27%
Traffic Signal Maintenance Worker I

3.46%

3.46%
Traffic Signal Maintenance Worker II

3.46%

3.46%
Wastewater Utility Maintenance Worker I

3.46%

3.46%
Wastewater Utility Maintenance Worker II

3.46%

3.46%
Water Conservation Specialist

3.27%

3.27%
Water Conservation Worker I

3.46%

3.46%
Water Conservation Worker II

3.46%

3.46%
Water Distribution Worker I

3.46%

3.46%
Water Distribution Worker II

3.46%

2. Salary Schedule B Salary Ranges – Reduce from 15 steps to 12 steps

To promote retention of staff and stay competitive in our market, the Schedule B salary ranges will be reduced from 15 steps to 12 steps, using the same top and bottom salary steps, establishing 3 percent between salary steps, except for the difference between salary step A to B.

3. Health and Welfare Benefits – Tiered Flex Credit for Active Employees

To address increasing premium costs, the Flex Credit benefit is revised to provide a different level of contribution for those enrolled in Employee Only versus Employee Plus One or Employee Plus Family medical plans, to cover approximately eighty percent of the premium costs for medical, dental and vision at the family level. The following includes a summary of the recommended Flex Credit benefit adjustments to create a 3 Tiered benefit contribution:

Flex Credit
Effective
Employee Only
Employee Plus
One
Employee Plus
Family
May 1, 2022
-$58/month
+$15/month
+$150/month
January 1, 2023
No change
+$45/month
+$75/month
January 1, 2024
No change
+$45/month
+$75/month
January 1, 2025
No change
+$45/month
+$75/month
January 1, 2026
+$30/month
+$45/month
+$75/month

4. Certifications

To address the loss of skills and knowledge due to retirements, and recruitment and retention issues, the City negotiated additional certification pay opportunities to incentivize employees to take the required training and acquire higher skillsets through important certifications that will ensure effective and efficient operation of City utilities/services, as follows:

Power Plant Engineer - 5% of base pay for CA professional engineer license (2 positions)
Class A Drivers’ License - increased from 2.5% to 3% of base pay - if designated by management
Traffic Signals – up to 3% (5 positions)
Environmental Utilities Maintenance – up to 3% (23 positions) Reduced Environmental Utilities Wastewater/Water Distribution/Water Efficiency certification maximum cap from 5% to 3% and removed management designated certifications (e.g., Crane, Class A, Tanker Endorsement, USA Locates) from the maximum consideration

5. Standby

The number of hours of standby pay for coverage outside of regular shifts was adjusted to match the market median to recognize the impact this additional utility coverage for emergency response has on employees and to support retention for essential utility services:

Monday-Friday Standby 2 hours straight time rate per day Saturday, Sunday Standby 4 hours straight time rate per day Weekly Standby 18 hours straight time rate per week Holiday Standby 6 hours straight time rate per day

6. Non-recurring Holiday
The bargaining group will no longer observe non-recurring holidays as appointed by the President of the United States or the Governor of the State of California. This will remove the unanticipated loss of productivity and disruption of services to the City.

FISCAL IMPACT
The current total annual salary and benefit cost to the City for the 192 full-time positions in the IBEW, bargaining group is $25,123,294, of which zero is funded by the General Fund. The additional ongoing incremental cost for each calendar year of the 4 year term of the successor MOU is as follows:

Incremental
Year 1
Incremental
Year 2
Incremental
Year 3
Incremental
Year 4
Wages:

Labor Market Adjustment or
minimum 2% GWI
$907,972
$438,656
$447,429
$456,378
Schedule B Conversion
$180,777
-
-
-
Other costs:

Pension*
$134,001
$59,528
$62,322
$61,932
Health
(Year 1: effective May
1)
$152,153
$102,178
$100,400
$99,169
Certification Pay
$122,814
97,017
$113,385
$100,937
Standby
$167,375
$170,723
$174,137
$177,620
Deferred Compensation
$26,591
$12,886
$13,343
$13,407
Other Benefits
(Life, LTD,
OPEB)
$15,016
$5,443
$5,696
$5,662
Taxes
(Medicare, SUI)
$21,049
$9,326
$9,761
$9,702
Total Incremental Cost
$1,727,748
$895,757
$926,473
$924,807
*This incremental pension cost results only from the negotiated wage increase and does not include the cost of anticipated PERS rate changes. The terms and conditions of the pension benefit plan remain unchanged.
**The value of 1% of total compensation is $251,233.

The incremental cost of the negotiated agreement for Year 1 is projected to be up to $1,727,748 (6.88% of total compensation), however, the full projected increase will not be realized until employees obtain the required certifications in order to earn the added certification pay. Overall, the projected compounded salary and benefit costs specified above for the four year term is approximately $12 million and the ongoing cost at the end of the four year term will be approximately $4.5 million. The costs account for a 2% minimum general wage adjustment for year 2, 3, and 4. To maintain salaries at the 75th percentile of the market for Electric Department positions and 55th percentile for Environmental Utilities and Public Works Department positions consistent with the City’s new salary philosophy, the cost of future labor market adjustments will be presented to Council with the updated salary schedules prior to implementation in year 2, 3, and 4.

The cost of the successor IBEW salary and benefit adjustments for the FY2021-22 is $199,356 for the 3 pay periods remaining. The cost to the current fiscal year will be covered by existing appropriations in the utility enterprise funds
included in the FY2021-22 budget. The ongoing
costs will be incorporated into the proposed FY2022-23 budget.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Adoption of a Memorandum of Understanding and Salary Schedules meet the above criteria, and therefore are not subject to CEQA. No additional environmental review is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal E - Deliver exceptional city services

Respectfully Submitted,
Stacey Peterson, Human Resources Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 22-143
Final IBEW MOU
Final IBEW Redline MOU
Ordinance 6488
IBEW Salary Schedule A
IBEW Salary Schedule B
RESOLUTION NO. 22-143

APPROVING A MASTER MEMORANDUM OF UNDERSTANDING FOR PERSONNEL

REPRESENTED BY THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 1245, AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT

ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, a Master Memorandum of Understanding for personnel represented by the International Brotherhood of Electrical Workers, Local 1245, has been reviewed by the City Council;

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said Master Memorandum of Understanding is approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.

PASSED AND ADOPTED by the City Council of the City of Roseville this day of , 20 , by the following vote on roll call:

AYES COUNCIL MEMBER:

NOES COUNCIL MEMBER:

ABSENT COUNCIL MEMBER:

Mayor

ATTEST:

City Clerk

Master Memorandum of Understanding

International Brotherhood of Electrical Workers, Local 1245

Term of Agreement:

May 1, 2022 – April 30, 2026
Table of Contents
CHAPTER 1. ADMINISTRATIVE .................................................................................. 1 ARTICLE I. PARTIES TO UNDERSTANDING ............................................................................... 1 ARTICLE II. RECOGNITION ........................................................................................................... 1 ARTICLE III. STATE LAW COMPLIANCE...................................................................................... 1 ARTICLE IV. CITY COUNCIL APPROVAL..................................................................................... 1 ARTICLE V. CONTINUATION OF BENEFITS ............................................................................... 1 ARTICLE VI. SEVERABILITY OF AGREEMENT ........................................................................... 1 ARTICLE VII. TERM OF UNDERSTANDING ................................................................................. 2 CHAPTER 2. COMPENSATION ..................................................................................... 3 ARTICLE I. SALARIES ................................................................................................................... 3 ARTICLE II. OVERTIME .................................................................................................................. 9 ARTICLE III. CALL BACK ............................................................................................................. 10 ARTICLE IV. SERVICE TERM BONUS ........................................................................................ 11 ARTICLE V. PROMOTION ........................................................................................................... 12 ARTICLE VI. STANDBY................................................................................................................ 12 ARTICLE VII. WORKING OUT OF CLASS (Refer to Personnel Rules Section 3.07.080) .......... 12 ARTICLE VIII. PAYROLL ERRORS .............................................................................................. 14 CHAPTER 3. LEAVES ................................................................................................. 15 ARTICLE I. VACATION LEAVE .................................................................................................... 15 ARTICLE II. HOLIDAYS ................................................................................................................ 16 ARTICLE III. SICK LEAVE ............................................................................................................ 17 ARTICLE IV. CATASTROPHIC LEAVE ........................................................................................ 18 ARTICLE V. DISABILITY LEAVE ................................................................................................ 18 ARTICLE VI. MILITARY LEAVE .................................................................................................... 18 ARTICLE VII. JURY DUTY LEAVE ................................................................................................ 19 ARTICLE VIII. COMPENSATORY TIME ...................................................................................... 19 ARTICLE IX. PERSONAL LEAVE TIME ........................................................................................ 19 CHAPTER 4. INSURANCE BENEFITS ....................................................................... 21 ARTICLE I. MEDICAL AND DENTAL BENEFITS ........................................................................ 21 ARTICLE II. RETIREE HEALTH BENEFITS ................................................................................ 23 ARTICLE III. LONG TERM DISABILITY ....................................................................................... 25 ARTICLE IV. LIFE INSURANCE ................................................................................................... 26 ARTICLE V. EMPLOYEE ASSISTANCE PROGRAM .................................................................. 26 CHAPTER 5. RETIREMENT. ....................................................................................... 27 ARTICLE I. PUBLIC EMPLOYEES' RETIREMENT SYSTEM ..................................................... 27 ARTICLE II. DEFERRED COMPENSATION ................................................................................ 28 CHAPTER 6. HOURS, SCHEDULES, MEALS ........................................................... 29 ARTICLE I. GENERAL HOURS OF WORK ................................................................................. 29 ARTICLE II. INCLEMENT WEATHER SCHEDULE ..................................................................... 29 ARTICLE III. REST PERIODS ...................................................................................................... 30 ARTICLE IV. SPECIAL DUTY ASSIGNMENTS ........................................................................... 31 ARTICLE V. MEALS ..................................................................................................................... 31

CHAPTER 7. MISCELLANEOUS ISSUES .................................................................. 33 ARTICLE I. UNIFORMS AND SAFETY EQUIPMENT .................................................................. 33 ARTICLE II. UNION SECURITY AND MEMBERSHIP ................................................................. 35 ARTICLE III. CERTIFICATION OF ELIGIBLES AND APPOINTMENTS ..................................... 36 ARTICLE IV. CAUSES FOR DISCIPLINE .................................................................................... 37 ARTICLE V. GRIEVANCES - GENERAL AND PROCEDURES .................................................. 38 ARTICLE VI. MINIMUM SCORES AND COMPUTATIONS .......................................................... 38 ARTICLE VII. CITY MANAGEMENT RIGHTS ............................................................................... 39 ARTICLE VIII. NON-DISCRIMINATION ..................................................................................... 40 ARTICLE IX. ADMINISTRATION OF APPRENTICESHIP PROGRAMS IN ELECTRIC UTILITY DEPARTMENT ................................................................................................... 40 ARTICLE X. UNION ORIENTATION ............................................................................................. 43 ARTICLE XI. EDUCATIONAL REIMBURSEMENT ....................................................................... 43 ARTICLE XII. ALCOHOL AND DRUG POLICY ............................................................................ 43 ARTICLE XIII. UNION RELEASE TIME REIMBURSEMENT ........................................................ 43 APPENDIX “A” “A2” IBEW LOCAL 1245 CLASSES ................................................. 46 APPENDIX “B” TWELVE HOUR SHIFT- SPECIFIC PROVISIONS ............................ 48 APPENDIX “C” SURVEY AGENCIES ......................................................................... 50 APPENDIX “D” BENCHMARK CLASSES .................................................................. 51 APPENDIX “X” MAP .................................................................................................... 52 APPENDIX “Y” DRUG AND ALCOHOL POLICY ........................................................ 53

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 1 Memorandum of Understanding

MASTER MEMORANDUM OF UNDERSTANDING

CHAPTER 1. ADMINISTRATIVE

ARTICLE I. PARTIES TO UNDERSTANDING

This Memorandum of Understanding (MOU), also referred to as the Agreement, relates to issues within the scope of representation existing between the CITY OF ROSEVILLE, CALIFORNIA, (hereinafter referred to as "CITY"), and the INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL #1245 (hereinafter referred to as "UNION" or “IBEW Local 1245), and those employees occupying the classes listed in Appendix "A" and “A2”, attached hereto and incorporated herein by this reference.

ARTICLE II. RECOGNITION

Pursuant to the Meyers-Milias-Brown Act, the City recognizes the International Brotherhood of Electrical Workers, Local #1245 as the exclusive representative for all employees in the bargaining unit as provided by Chapter 3.17 of the Roseville Municipal Code (also known as the City’s Personnel Rules).

ARTICLE III. STATE LAW COMPLIANCE

This Memorandum of Understanding complies with the provisions of Section 3500 et seq. of the Government Code of the State of California in that the Employer-Employee representatives noted herein did meet and confer in good faith and did reach agreement on those matters within the scope of representation as specified herein.

ARTICLE IV. CITY COUNCIL APPROVAL

It is the mutual understanding of the parties hereto that this Memorandum of Understanding is of no force or effect in regard to matters within the authority of the City Council until such matters are submitted to, and accepted by, the City Council.

ARTICLE V. CONTINUATION OF BENEFITS

Except as otherwise provided herein, this Memorandum of Understanding does not modify existing benefits contained in the current salary ordinance and other compensation benefits or in the Personnel Ordinance (Municipal Code Title 3 also referred to as Personnel Rules). Such benefits shall remain unmodified and shall continue in full force and effect throughout the term of this MOU.

ARTICLE VI. SEVERABILITY OF AGREEMENT

This MOU is severable. Should any article, section, or portion thereof of this Agreement be held unlawful and unenforceable by any court of competent jurisdiction, such decision of the court shall only apply to the specific article, section, or portion thereof directly specified in the decision, and the remainder of this Agreement shall not be affected thereby.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 2 Memorandum of Understanding

ARTICLE VII. TERM OF UNDERSTANDING

This Memorandum of Understanding incorporates all modifications regarding wages, hours and other terms and conditions of employment. This Memorandum of Understanding shall be effective May 1, 2022, and shall expire on April 30, 2026. All existing benefits shall continue in full force until a subsequent agreement is reached. Should either party desire to commence the Meet and Confer process for the next subsequent Memorandum of Understanding, they shall notify the other in writing no earlier than one hundred twenty (120) days prior to the expiration date of this Agreement. With the parties’ mutual agreement, the notification and Meet and Confer process may begin earlier than one hundred twenty (120) days prior to the expiration date of this Agreement.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 3 Memorandum of Understanding

CHAPTER 2. COMPENSATION

ARTICLE I. SALARIES

A. SALARY

1. Labor Market Adjustments: Effective May 7, 2022, the base hourly rate for all classifications listed in Appendix “A” “A2” will be increased by 2% or the Labor Market Adjustment listed below if the Labor Market Adjustment is greater than 2%:

CLASS TITLE
Salary
Schedule
B %
Change
Salary
Schedule
A %
Change
Electric Apprentice Line Technician 6.31% 6.31%
Electric Apprentice Metering System Technician 6.03% 6.03% Electric Apprentice Substation Technician 6.50% 6.50%
Electric Drafting Technician I 6.74% 6.74%
Electric Drafting Technician II 6.74% 6.74%
Electric Engineering Technician I 9.91% 9.91%
Electric Engineering Technician II 9.91% 9.91%
Electric Line Technician 6.31% 6.31%
Electric Line Troubleshooter 8.83% 8.83%
Electric Materials Technician I 8.18% 8.18%
Electric Materials Technician II 8.18% 8.18%
Electric Metering System Technician 6.02% 6.02%
Electric Pre-Apprentice 6.31% 6.31%
Electric Preventive Data System Technician 8.18% 8.18%
Electric Substation Technician 6.50% 6.50%
Electric System Dispatcher 6.30% 6.30%
Electric Technology System Technician 5.18% 5.18%
Electric Utility Inspection Technician 6.30% 6.30%
Electronics Technician I 6.46% No LMA
Electronics Technician II 6.46% No LMA
Environmental Utilities Instrument and Control Technician I 6.46% No LMA Environmental Utilities Instrument and Control Technician II 6.46% No LMA Generation Maintenance Scheduler-Coordinator 8.18% 8.18% Instrument and Control Technician 5.17% 5.17%
Materials Technician 5.56% 5.56%
Plant and Equipment Maintenance Worker I 5.56% 5.56%
Plant and Equipment Maintenance Worker II 5.56% 5.56%

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 4 Memorandum of Understanding

Plant and Equipment Mechanic I 5.56% 5.56%
Plant and Equipment Mechanic II 5.57% 5.57%
Power Engineer I 3.16% 3.16%
Power Engineer II 3.16% 3.16%
Power Plant Engineer I 3.16% 3.16%
Power Plant Engineer II 3.16% 3.16%
Power Plant Mechanic 5.18% 5.18%
Power Plant Operator Technician I 5.18% 5.18%
Power Plant Operator Technician II 5.18% 5.18%
Predictive Maintenance Technician I 6.46% No LMA
Predictive Maintenance Technician II 6.46% No LMA
Preventative Maintenance Coordinator 18.29% 18.29%
Preventative Maintenance Technician I 6.46% 3.73%
Preventative Maintenance Technician II 6.46% 3.73%
SCADA System Technician 6.46% No LMA
Senior Electric Line Technician 6.30% 6.30%
Senior Electric Materials Technician 8.18% 8.18%
Senior Electric Metering Systems Technician 6.02% 6.02% Senior Electric Substation Technician 6.51% 6.51%
Senior Electric System Dispatcher 6.30% 6.30%
Senior Electronic Technician 6.46% No LMA
Senior Plant and Equipment Mechanic 5.56% 5.56%
Senior Power Plant Operator Technician 5.18% 5.18%
Senior Preventative Maintenance Technician 6.46% No LMA Senior SCADA System Technician 6.46% No LMA
Senior Wastewater Utility Maintenance Worker 3.27% 3.27% Senior Water Distribution Worker 3.27% 3.27%
Traffic Signal Maintenance Worker I 3.46% 3.46%
Traffic Signal Maintenance Worker II 3.46% 3.46%
Wastewater Utility Maintenance Worker I 3.46% 3.46%
Wastewater Utility Maintenance Worker II 3.46% 3.46%
Water Conservation Specialist 3.27% 3.27%
Water Conservation Worker I 3.46% 3.46%
Water Conservation Worker II 3.46% 3.46%
Water Distribution Worker I 3.46% 3.46%
Water Distribution Worker II 3.46% 3.46%

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 5 Memorandum of Understanding

2. Labor Market Adjustments: Effective the first full pay period in May 2023, May 2024, and May 2025:

The parties agree to use the survey agencies agreed upon for the 2021 Labor Market Study and pull the Total Compensation study survey data effective as of January 1st of the applicable calendar year. The Total Compensation Study shall be based on the same salary and benefit elements and methodology used in the 202 2 Total Compensation Study for each classification, which include:

Minimum Base Salary
Maximum Base Salary
Employee’s Portion of PERS Paid by the Employer (%)
Employee’s Portion of PERS Paid by the Employer
Deferred Compensation
Longevity Pay (Year 10)
Maximum Education/Certification Pay
Education/Certification Pay Notes
Cafeteria Plan
Health (Most Expensive Plan)
Dental
Vision
Life Insurance
Long-Term Disability Insurance
Retiree Health Savings Account (RHSA)
Social Security/Medi-Care
Employee Contributions Towards RHSA
Employer Portion of Retirement Paid by the Employee

a. 2023 Labor Market Adjustments
The Total Compensation Study will be prepared at the City's expense and the City will provide a draft of the result of the Total Compensation Study to IBEW Local 1245 for comments and to review for accuracy no later than March 1, 2023. IBEW Local 1245 will provide any comments regarding the accuracy of the Total Compensation Survey no later than April 1, 2023. Wage increases, if applicable, for the surveyed electric utilities classifications that are behind the 75th percentile and the environmental utilities and public works classifications that are behind the 55th percentile of the total compensation market, and their related internal relationships, will be implemented by an amount to match the applicable percentile in the market in the first full pay period in May 2023 for Salary Schedule B and Salary Schedule A or the base hourly rate for all classifications listed in Appendix “A” “A2” will be increased by 2% for both Salary Schedule A and B, whichever is greater.

b. 2024 Labor Market Adjustments
The Total Compensation Study will be prepared at the City's expense and the City will provide a draft of the result of the Total Compensation Study to IBEW Local 1245 for comments and to review for accuracy no later than March 1, 2024. IBEW Local 1245 will provide any comments regarding the accuracy of the Total Compensation Survey no later than April 1, 2024. Wage increases, if applicable, for the surveyed electric utilities classifications that are behind the 75
th percentile and the environmental utilities and public works classifications that are behind the 55th percentile of the total compensation market, and their related internal relationships, will be implemented by an amount to match the applicable percentile in the market in the first full pay period in May 2024 for Salary Schedule B and

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 6 Memorandum of Understanding

Salary Schedule A or the base hourly rate for all classifications listed in Appendix “A” “A2” will be increased by 2% for both Salary Schedule A and B, whichever is greater.

c. 2025 Labor Market Adjustments
The Total Compensation Study will be prepared at the City's expense and the City will provide a draft of the result of the Total Compensation Study to IBEW Local 1245 for comments and to review for accuracy no later than March 1, 2025 for the 2025 Labor Market Adjustments. IBEW Local 1245 will provide any comments regarding the accuracy of the Total Compensation Survey no later than April 1, 2025. Wage increases, if applicable, for the surveyed electric utilities classifications that are behind the 75th percentile and the environmental utilities and public works classifications that are behind the 55th percentile of the total compensation market, and their related internal relationships, will be implemented by an amount to match the applicable percentile in the market in the first full pay period in May 2025 for Salary Schedule B and Salary Schedule A or the base hourly rate for all classifications listed in Appendix “A” “A2” will be increased by 2% for both Salary Schedule A and B, whichever is greater.

3. Annual Merit Step Increases

A. Effective January 9, 2016, all employees hired before January 1, 2016 will remain on salary schedule (A) for all listed classifications in the bargaining unit. All such employees will continue on this salary schedule when promoted or transferred to other classifications within the bargaining unit.

B. Effective January 9, 2016, salary schedule (B) will apply to new hires for all listed classifications in the bargaining unit. For purposes of this provision, any employee who was initially hired before January 1, 2016 that had a break in City service and was rehired after January 1, 2016 will be deemed a newly hired employee under this provision.

C. Salary Schedule B Salary Ranges: Reduce from 15 steps to 12 steps: Effective May 7, 2022, the Schedule B salary ranges will be reduced from 15 steps to 12 steps, using the same top and bottom salary steps, establishing 3 percent between salary steps, except for the difference between salary step A to B, maintaining the same top and bottom salary steps.

D. This section supersedes Personnel Rule 3.11.030 C (1) only where salary Step A is paid upon initial employment, the employee shall become eligible for advancement to Step B upon their anniversary date, based on demonstrated satisfactory job progress and normal increased productivity. No salary step advancement shall be granted unless recommended by the department head and approved by the City Manager.

B. REGISTRATION AND CERTIFICATION PAY

1. A five percent (5%) differential will be paid to empl oyees in the classifications of Power Engineer I/II and Power Plant Engineer I/II who possess a California Professional Engineer (PE) license.

2. Employees in the classifications of Electric System Dispatcher and Senior Electric System Dispatcher who possess a NERC certificate as of July 20, 2011, will have the ability to earn three percent (3%) certification pay for maintaining their certification.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 7 Memorandum of Understanding

3. Employees in the classifications of Electronic Technician I/II or Senior Electronic Technician may be compensated by a maximum of three percent (3%) for the following certifications as specified. Employees who obtain and maintain an International Municipal Signal Association (IMSA) Traffic Signal Level III certification will be compensated at a rate of one percent (1%) higher than their base hourly rate. Employees who obtain and maintain a Certified Fiber Optic Installer (4 day program) certificate will be compensated at a rate of two percent (2%) higher than t heir base hourly rate and employees who obtain and maintain a CompTIA Server+ certification will be compensated at a rate of two percent (2%) higher than their base hourly rate.

4. Management staff will designate the number of employees who need to obtain and maintain a crane certification. The designated employees will be compensated at a rate of two and one-half percent (2.5%) higher than their base hourly rate.

5. Management staff will designate the number of employees who need to maintain a DOT Tanker Endorsement based on operational needs. The designated employees who possess the required DOT Tanker Endorsement will be compensated at a rate of one percent (1%) higher than their base hourly pay rate.

6. Management staff will designate the number of employees who need to possess a USA Locates certification based on operational needs. The designated employees who possess the required USA Locates certification will be compensated at a rate of one percent (1%) higher than their base hourly pay rate.

7. Management staff will designate the number of utilities maintenance employees who need to obtain and maintain CWEA Mechanical Technologist (Grade 2, 3) or CWEA Electrical/Instrumentation Technologist (Grade 2, 3) certification. The designated employees will be compensated at a rate of one percent (1%) higher than their base hourly rate for grade 2 certification and two percent (2%) higher for grade 3 certification. Employees may be compensated by a maximum of three percent (3%) for the above specified certifications. The certification pay may be designated where needed for the following classifications: Plant & Equipment Mechanic I/II, Senior Plant & Equipment Mechanic, Preventative Maintenance Technician I/II, Senior Preventative Maintenance Technician, EU Instrument and Control Technician I/II, SCADA System Technician, Senior SCADA System Technician, and Predictive Maintenance Technician I/II.

8. Management staff in the Environmental Utilities Department will designate the number of employees to maintain their Class A driver’s license and operate Class A vehicles/equipment as needed based on the business needs of the City. Once certified, the designated employees will be compensated at a rate of three percent (3%) higher than their base hourly rate.

9. Represented employees in the Environmental Utilities Department will have the ability to earn a maximum of three percent (3%) in certification pay based on the certifications for each classification in the chart below:

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 8 Memorandum of Understanding

Water Distribution

% Wastewater Collection %
Senior Cross Connection Control Specialist

Backflow Tester Certification

Distribution Operator Grade 4 or Grade
5 (SWRCB)(cumulative)

Treatment Operator Grade 1, 2, 3, 4, or
5 (SWRCB) (non-cumulative)

Water Sampler Certification
1%

CWEA Grade 3 or Grade 4
(cumulative)

Collection System Maintenance

Environmental Compliance Inspection

Worker I and II Cross Connection Control Specialist

Backflow Tester Certification

Conservation Certification

Distribution Operator, Grade 3, 4 or 5
(SWRCB) (cumulative)

Treatment Operator Grade 1, 2, 3, 4, or
5 (non-cumulative)

CWEA Grade 2, Grade 3 or Grade 4
(cumulative)

Collection System Maintenance

Environmental Compliance Inspection

Water Efficiency

Water
Conservation
Worker II

Water Use Efficiency Practitioner Grade 1, 2, 3 (AWWA) (cumulative)

Qualified Water Efficient Landscaper (QWEL)

Distribution Operator Grade 2 (SWRCB) Employees appointed after 5/1/22 are not eligible

Water
Conservation
Worker I

Water Use Efficiency Practitioner Grade 1, 2 (AWWA) (non-cumulative)

Qualified Water Efficient Landscaper (QWEL)

Distribution Operator Grade 1,2 (SWRCB) (non-cumulative)

Certified Landscape Irrigation Auditor (CLIA)

Water
Conservation
Specialist

Water Use Efficiency Practitioner Grade 2, 3 (AWWA) (cumulative)

Qualified Water Efficient Landscaper (QWEL)

Distribution Operator Grade 2 (SWRCB)

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 9 Memorandum of Understanding

C. SPANISH SPEAKING PAY DIFFERENTIAL

City shall compensate employees who are certified by the Human Resources Department as Spanish speaking at the rate of $46.15 bi-weekly ($100.00 per month).

D. FUTURE SALARY INCREASES

The parties agree to continue to meet during the term of the MOU to determine revenue increase thresholds that would lead to future salary increases.

ARTICLE II. OVERTIME

Pursuant to Section 3.11.070 of the City's Personnel Rules , the following section shall govern overtime provisions of this Agreement:

A. Overtime work may be required of any employees in order to meet special or unusual needs of service beneficial to the City and community. Overtime is defined as the number of hours worked in excess, and as an extension, of the normal schedule of work hours as illustrated below:

EMPLOYEE WORK SCHEDULE OVERTIME

1. Eight hours per day, Over eight hours per
five days per week (5/8 Plan) day and forty hours per
week

2. Ten hours per day, Over ten hours per day four days per week (4/10 Plan) and forty hours per week

3. A flex-time schedule Over the prescribed approved by the City Manager number of hours per day
in writing.

For purposes of this section, holidays, sick leave, vacation, Personal Leave Time (PLT) compensatory time off (CTO), and floating holidays are time worked for purposes of computing overtime. The following leave hours are not to be considered to be hours worked for purposes of computing overtime: Workers' Compensation, leave without pay requested by the employee, suspension or disciplinary action and a short work week worked by a new employee.

No employee shall be required to work overtime during any scheduled workweek in which the employee is on an unpaid status as a result of disciplinary action.

B. Incidental overtime, defined here as less than eight (8) minutes nonrecurring extension of the workday/shift, is not compensable in any form.

C. Overtime shall be compensable in increments of fifteen (15) minutes.

D. Overtime shall be compensable at the rate of one and one-half (1 ½) the employee's base hourly rate except as noted in Subsection F or G of this section.

E. Shift Extension. If an employee is called to work early or is worked beyond their normal work shift, compensation for overtime shall be calculated in accordance with Subsection C of this section.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 10 Memorandum of Understanding

F. Regular employees working outside of their regularly scheduled shift in the Department shall be compensated at double the employee's base hourly rate when working between the hours of 8:00 p.m. to 6:00 a.m. Overtime hours worked before or after the hours noted above will be paid in accordance with Subsection D.

G. A non-shift employee shall be compensated at double the employee's base hourly rate when working on a scheduled holiday. A shift employee who works on a holiday shall be compensated in accordance with Subsection D.

H. An employee responding to a call for assistance from an outside agency (Mutual Aid Agreement) shall be compensated at double the employee’s base hourly rate.

I. Compensatory Time Off (CTO): Maximum accumulation of compensatory time shall be reduced as follows:

a. Effective January 1, 2020, the maximum accumulation of CTO shall be one hundred sixty (160) hours;
b. Employees with CTO balances above the maximum cap on January 1, 2020 shall be allowed to maintain said balances but shall not be allowed to accrue additional CTO hours until their balance drops below the cap identified above that respective year.

ARTICLE III. CALL BACK

A. All call backs shall be for a minimum of two (2) hours and will be compensated in accordance with ARTICLE II. OVERTIME. Subsequent calls that occur during a two-hour callback and extend past the original two-hour call shall be compensated for actual time worked.

B. When the two (2) hours of a call back overlap a regularly scheduled shift the employee will be compensated at the overtime rate up to the start of his/her regularly scheduled work shift.

C. If an employee’s work shift has not ended and the employee must respond to a call requiring immediate action that extends beyond the end of the employee’s shift, it is considered a continuation of the shift and is subject to pay based on the actual time. If the employee’s shift has ended and the employee has to return to work to address a call requiring immediate action, the employee is entitled to a two (2) hour minimum period of overtime at the appropriate rate.

D. Standby Employees, as defined in Chapter 2, Article VI, will receive one half (1/2) hour compensation at the appropriate rate of pay when needed assistance can be appropriately handled over the phone and the employee is not required to physically respond to work.

E. Non-Standby employees will receive one (1) hour compensation at the appropriate rate of pay when needed assistance can be appropriately handled over the phone and the employee is not required to physically respond to work.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 11 Memorandum of Understanding

ARTICLE IV. SERVICE TERM BONUS

A. The City agrees to provide the following service term bonus for employees hired prior to May 5, 2012:

SERVICE TERM ANNUAL BONUS AMOUNT

Beginning of the 10th year 2.5% of base salary
and every year thereafter

Beginning of the 15th year
and every year thereafter 2.5% of base salary

B. Such service term bonus shall be included in each eligible employee's bi-weekly payroll.

C. Employees hired after May 5, 2012 will not be eligible for the service term bonus.

D. Effective February 17, 2007, for employees hired on or before May 5, 2012, the following certification pays will be calculated on longevity and reported to CalPERS as special compensation.

Backflow Tester Cert
Collection Sys Maint Cert
Commercial Drivers License Cert
Crane Operator Cert
Cross Connection Cert
CWEA Grade 1 Worker 2 Cert
CWEA Grade 2 Worker 2 Cert
CWEA Grade 3 or 4 Cert
DOHS Grade 4 Cert
DOHS Grade 5 Cert
Environmental Compliance Cert
NERC Cert
Professional Engineers Cert
Treatment Grade Operator Cert
WUEP Grade 1 Cert
WUEP Grade 2 Cert
WUEP Grade 3 Cert
Conservation Cert
Landscape Irrigation Auditor Cert
DOHS Grade 1 Cert
DOHS Grade 2 Cert
DOHS Grade 3 Cert
DOHS Grade 4 Cert
DOHS Grade 5 Cert

The service term bonus is to be considered as part of an employee's total compensation.

However, only actual costs of the service term bonus shall be used when calculating total compensation for the purpose of comparing salaries and benefits of the City to other benchmark .

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 12 Memorandum of Understanding

ARTICLE V. PROMOTION

Any employee who is promoted to a position in a class with a higher salary range shall be placed in the step in the new higher range, which is at least a ten percent (10%) increase over the employee's current salary step. In the event that the top step in the new range is less than ten percent (10%), the employee will then be assigned to the top step on the new salary range.

ARTICLE VI. STANDBY

The following provisions and EOP 2.0 City Standby Policy apply to represented employees. The number of available employees assigned to serve the standby needs of the department determines the application of provision A below.

A . Employees assigned to standby duty shall be compensated per the following schedule:

Monday-Friday Standby 2 hours straight time rate per day Saturday, Sunday Standby 4 hours straight time rate per day Weekly Standby 18 hours straight time rate per week
Holiday Standby 6 hours straight time rate per day

Employees shall not be assigned standby on their flex day, unless such employee volunteers.

B. Employees will be provided a cell phone when assigned to standby, if requested by the employee.

C. The department shall make standby assignments voluntary whenever practical.

D. The City reserves the right to schedule standby as needed.

E. Such payment shall be in addition to the overtime payments, which may be payable for call backs, pursuant to City Personnel Rules and Regulations. An employee on standby may be authorized to take a City vehicle home, provided the employee lives within the area bounded by heavy black lines on the attached map (Appendix "X").

Exceptions to Appendix “X” may be made on prior written approval of the Department Head or designee for employees who are assigned to standby duty.

ARTICLE VII. WORKING OUT OF CLASS (Refer to Personnel Rules Section 3.07.080)

The principle for paying employees for performing higher level job responsibilities due to operational necessity is based on such considerations as: the employee’s ability and qualifications to perform at a higher level, whether the employee would be required to perform only routine or a significant range of the higher job responsibilities, whether the lower level position is in direct line and job scope of the higher class, and the length of time necessary for an employee to perform in a higher class.

The purpose of compensating employees for performing work in a higher class is to establish a system by which employees will continuously receive a pay rate comparable to those job factors that establish pay for each class of work in City service. Authorization for an assignment to work in a higher class must be given by the employee’s supervisor and, except under emergency circumstances, requires advance approval of the

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 13 Memorandum of Understanding

department head, Human Resources Director and City Manager. The following conditions shall prevail as the definition and standards of compensation:

A. Employees are required to work at least four (4) hours in the higher class to receive the higher class pay, except in classifications where employees are required to operate heavy equipment that is paid at a higher level; in such cases employees will be eligible for higher class pay after one (1) hour of continuous work.

B. In the event that an employee is required to work in the higher class due to a call back, the employee shall receive out of class pay on an hour-for-hour basis with no minimum amount of time required to serve in the higher class.

C. Compensation in excess of an employee’s regular base salary rate shall not be authorized for work in a higher class unless such employee is in all respects qualified to perform in the higher class and required to perform at least a substantial range of the more essential tasks of the higher clas s.

Additionally, if an employee is temporarily assigned to perform work that is generally within the scope of their current class, but the work assignment is normally performed by a higher class due to the nature or scope of such work, then the temporaril y assigned employee shall not receive additional compensation for performance of their normal and customary duties as prescribed by their regular classification.

D. Employees assigned to work in a higher class, who are both qualified and required to perform at least a substantial range of the higher tasks, shall be compensated for the actual number of hours worked in the higher class as follows:

1. Compensation shall be five percent (5%) more than the employee’s current salary rate in the lower class unless the difference between classifications is less than five percent (5%).

In the event that the top step in the higher range is less than five percent ( 5%), the employee will be compensated at the top step in the higher class.

EXCEPTION: Employees assigned as a senior level worker or senior level technician shall be compensated ten percent (10%) more than the employee’s current salary rate in the lower class.

2. For employees assigned to management classifications the compensation shall be ten percent (10%) more than the employee’s current salary rate in the lower class. In the event that the top step in the higher range is less than ten percent (10%), the employee will be compensated at the top step in the higher class.

3. Work periods in higher class assignments shall not apply toward seniority or time- in-class considerations for layoff purposes as regards the higher class.

4. Temporary Acting Pay

An employee temporarily assigned in writing to an acting position in a classification with a higher salary range shall be compensated for the duration of the acting assignment by the payment of ten percent (10%) of the regular salary the employee received prior to the acting assignment, or the salary provided for in Step A of the higher classification, whichever is greater, but not to exceed top step of the higher classification for all time worked and any leave time paid. The higher classified position must be temporarily vacant due to a long-term absence of the incumbent or pending the filling of a vacant position. The temporary acting pay assignment shall be for a minimum of two full -time

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 14 Memorandum of Understanding

pay periods and limited to one year. Authorization for a temporary acting assignment must be given by the employee’s supervisor and requires advance approval of the Department Head, Human Resources Director and City Manager.

ARTICLE VIII. PAYROLL ERRORS

A. In the event an error has been made in the payment of an employee’s compensation (which may include, but is not limited to salary, overtime, payment or leave accruals), balances or usages, City shall, for purposes of future compensation adjust such compensation to the correct amount, giving written notice to employee.

B. In the event an employee received an overpayment or underpayment of wages, the employee may select one of the following methods:

1. Lump sum payment by employee or employer;

2. One-time deduction from accrued and unused vacation, or compensatory time off (CTO), or usable holiday leave balances equivalent to the overpayment at the employee’s curr ent hourly rate;

3. A repayment schedule through payroll adjustment; and/or

4. Other means, as may be mutually agreed to between the parties.

C. Action to enforce repayment of an overpayment, or to correct an underpayment, shall be limited to a period beginning on the first day of the City pay period two (2) years prior to the date that either City or the employee gives written notice to the other that a payment error has occurred.

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CHAPTER 3. LEAVES

ARTICLE I. VACATION LEAVE

The purpose of vacation leave is to provide eligible employees the opportunity to take paid time off from their job responsibilities in order to maintain a high standard of mental, emotional and physical conditioning.

A. Eligibility: All regular, full-time and part-time employees in the classified service shall be entitled to annual vacation leave with pay. Each employee will earn and accrue vacation hours pursuant to the accrual schedule as noted in subsection B . Exceptions to this provision shall only be granted in unusual circumstances substantiated by the department head in a recommendation to the City Manager who may approve or disapprove such variances.

B. Accrual: Each regular classified employee shall earn and accrue vacation leave with pay as follows:

Biweekly Days/Year Max.Hrs.

Service Category Accrual Equivalent Accrual

New employee to 3.693 hr. 12 days 240
completion of 4th year

Start of 5th year to 4.307 hr. 14 days 280 completion of 9th year

Start of 10th year to 4.923 hr. 16 days 320 completion of 14th year

Start of 15th year to 5.538 hr. 18 days 360 completion of 19th year

Start of 20th year and 6.153 hr. 20 days 400 succeeding years

1. As noted in Subsection A, new employees shall earn vacation at the bi-weekly rate shown above from the hire date. Eligible employees shall advance to the next higher rate of accrual upon completion of the maximum number of years at the lower accrual rate, and shall begin to accrue at the higher rate at the start of their qualifying year. Part-time employees shall receive a pro-rated accrual.

2. Except as provided in Section B, an employee’s maximum accrual of vacation hours may not exceed two and a half (2 1/2) the employee's annual accrual rate as specified above, and an employee will stop earning and accruing vacation hours while the employee’s accrual remains at the maximum allowed under this Section B. One (1) month prior to the employee's anniversary date, the department head shall review the number of hours accrued by the employee.

3. If the amount exceeds specified limits, the employee shall take the excess number of vacation hours up to a maximum of twenty (20) hours prior to the anniversary date or, if

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operational necessity will not permit taking such time, the employee may be paid the straight time hourly equivalent. Additionally, the maximum vacation hours an employee may accrue will be extended when an employee is on disability leave, jury duty, or military leave as provided in these rules . The employee shall be allowed to liquida te such excess accrual within thirty (30) calendar days following return to duty, by means of taking such time up to a maximum of twenty (20) hours or receiving the straight time hourly equivalent in compensation.

C. Use: Per Section 3.12.060(C) of the Roseville Municipal Code, an employee may elect to take all or part of earned vacation, or may carry over to the next service year all or part of earned vacation as approved by the department head and consistent with the provisions of Subsection B. However, the dates and amount of vacation selected by the employee shall be subject to approval of the department head. Vacation leave shall generally be taken in minimum increments of one (1) full work day/work shift, except that unusual, emergency, necessary, and infrequent use of vacation leave may be granted in one (1) hour increments.

Employees must request the vacation at least ten (10) workdays prior to the desired start of vacation leave. Under unusual or personal emergency circumstances, employees may request, and department heads may consider the approval of, vacation leave with fewer than ten (10) working days’ notice. In the event it becomes necessary to call an employee back to work from a scheduled vacation, the employee shall be credited wi th the unused vacation hours and shall have the opportunity to take such remaining vacation leave at a time of the employee's choosing and the department head's approval.

D. Holidays Within Vacation Leave: Holidays that occur during a scheduled vacati on period shall be counted as a holiday. Employees may request in advance that they extend their vacation leave by the number of holidays occurring within their scheduled leave, or they may request fewer vacation hours which, together with the holiday(s), will comprise the total time period of their scheduled leave.

ARTICLE II. HOLIDAYS

Pursuant to Section 3.12.140 of the City's Personnel Rules, the following shall constitute the City's practice regarding holidays:

A. The following holidays shall be observed by the City with respect to all employees. City offices shall be closed on these days except as otherwise provided herein.

1. January 1 (New Year's Day).

2. The third Monday in January (Martin Luther King’s Birthday).

3. The third Monday in February (Washington's Birthday).

4. The last Monday in May (Memorial Day).

5. July 4 (Independence Day).

6. The first Monday in September (Labor Day).

7. November 11 (Veteran's Day).

8. The day in November appointed by the President of the United States as Thanksgiving Day.

9. The day immediately following Thanksgiving Day.

10. December 25 (Christmas).

11. Sixteen (16) hours (floating Holiday) to be taken any time during the calendar year by employees who have completed at least six (6) months prior service (pro-rated for modified schedule employee). The employee and the employee's supervisor shall jointly determine a

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convenient date. Upon separation from service, if an employee has taken more holidays in advance than have been earned during the fiscal year, the City shall deduct an equivalent amount of pay for the holidays taken in advance from the employee's final paycheck, or such amount shall otherwise be owed to the City by the employee.

B. If January 1, July 4, November 11, or December 25 falls on a Saturday, the preceding Friday shall be a holiday; if any such day falls on a Sunday, then the following Monday shall be a holiday.

If a holiday occurs on the employee's first normal day off, the employee shall take the preceding day as the holiday; however, if the holiday occurs on the employee's second consecutive normal day off, the employee shall take the following day as the holid ay. This policy shall be adhered to where practical and may be modified only by written consent to other conditions by the department head.

ARTICLE III. SICK LEAVE

A. Refer to Section 3.12.070 of the Personnel Rules, section A – I, which will be modified to pay out sick leave upon retirement and exclude separations.

B. Payment for Unused Sick Leave Upon Retirement:

Payment for unused sick leave is authorized by the City as a means of rewarding employees who have made conscientious efforts to maximize their attendance on the job.

1. Non-probationary employees shall be entitled to a minimum payment as follows: (1) for sick leave accrued (not pro rata) up to their date of retirement. However, employees whose separation is caused by dismissal shall not be entitled to payment for unused sick leave.

2. No more than the maximum sick leave amount listed in the tables below may be used in ascertaining the amount of time for which the employee will be compensated at time of retirement. Payment will be determined as follows:

Non-24-Hour Shift Number of
Sick Leave Hours Accumulated
24-Hour Shift Number of Sick
Leave Hours Accumulated Percent of Compensation
Given
Max Max
956 to 1200 1434 to 1800 60%
764 to 955.99 1146 to 1433.99 50%
572 to 763.99 858 to 1145.99 40%
380 to 571.99 570 to 857.99 30%
188 to 379.99 282 to 569.99 20%
0 to 187.99 0 to 281.99 0%

3. In the event of a job-related death, the beneficiary of the employee, as shown on the records of the Public Employees’ Retirement System, shall be paid for those sick leave and vacation days for which the employee would have been paid had employment terminated on the date of death.

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4. Any sick leave balances remaining after payment shall be converted to PERS service credit.

ARTICLE IV. CATASTROPHIC LEAVE

Pursuant to City Personnel Rules Section 3.12.065, pertaining to Catastrophic Leave.

The parties have interest in making revisions to the catastrophic leave program/policy and will meet and confer over forthcoming City proposed revisions.

ARTICLE V. DISABILITY LEAVE

Pursuant to Section 3.12.100 of the City's Personnel Rules, the following shall constitute the City's practice regarding disability leave:

Employees may be granted paid disability leave based on the following circumstances, terms, and conditions.

The purpose of providing these programs of paid disability leave is to i nsure that regular employees have reasonable and equitable provisions concerning their job and economic security.

Work Related Temporary Disability:

A. If a regular employee is temporarily disabled by injury or illness arising out of and in the course of performing assigned job duties, the employee shall become entitled, regardless of length of service, to a leave of absence while so disabled without loss of salary, less workers' compensation disability payments, for up to seventy-five (75) calendar days, commencing upon the third (3rd) calendar day after the injured employee leaves work as a result of the injury. However, if the disability necessitates hospitalization or the disability continues more than three (3) calendar days, the aforesaid seventy- five (75) day leave of absence shall commence from the first day the injured employee leaves work or is hospitalized as a result of the injury. Employees injured on the job who are absent from work due to such disability for less than three (3) calendar days may utilize accrued sick leave during such absence.

B. Following the initial seventy-five (75) day period of temporary disability, an eligible employee may elect to receive either workers' compensation disability payments, or full salary by supplementing their workers' compensation disability payment by use of accrued vacation, compensatory time off (CTO), or sick leave on a one -half (1/2) hour sick leave for one (1) hour pay basis. Upon utilization of all accrued leave credits, the employee injured in the performance of assigned duties and who is entitled to compensation under the Workers' Compensation Insurance Act shall be continued on the rolls of the City without pay until workers' compensation is discontinued, or the employee reaches a permanent and stationary status, provided that the disability was not the result of the employee's willful violation of safety rules or negligent behavior.

ARTICLE VI. MILITARY LEAVE

A. Classified employees obligated to serve involuntary periods of active military duty shall be compensated for normal work hours and days or shifts during such absence from work, up to a maximum of thirty (30) calendar days in any calendar year.

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B. Employees exercising this provision of military leave will be required to submit properly documented evidence of their call to active duty within ten (10) calendar days prior to such military duty. Such documentation must be submitted through the department head to the Human Resources Director.

ARTICLE VII. JURY DUTY LEAVE

A. Classified employees who have been summoned or subsequently selected to serve on a jury shall receive their regular rate of compensation by the City for normal work hours and days or shifts during such absence from work.

B. Employees will be allowed to retain any mileage compensation granted to them by the respective court jurisdiction to which they were summoned or selected for jury duty.

C. Employees summoned to jury duty must provide evidence of such summons and subsequent jury duty days away from work through their respective department heads to the Human Resources Director.

D. If an employee normally assigned to any shift except days is summoned to jury duty and ordered to report, the employee’s shift shall be changed to days until the jury obligation has been fulfilled provided there is a period of 12 hours preceding the employee’s normally assigned shift. Any day that the employee is released from service having served fewer hours than normally scheduled, the employee shall report to work for the remainder of the shift.

ARTICLE VIII. COMPENSATORY TIME

Compensatory time shall be governed as follows:

A. An employee may use up to eighty (80) hours per calendar year of accrued compensatory time on conditions the same as those for the use of vacation. Approval by the employee's superintendent or first-line manager is sufficient for use.

B. Superintendents and first-line managers will grant an employee, at the employee's request, accrual of overtime as compensatory time, in accordance with Chapter 2, Article II.

C. Employee requests to use CTO will either be (1) granted within a reasonable time period or (2) at employee option, be paid off if use of CTO hours cannot be accommodated by the department.

D. The use of CTO must be a mutual agreement between the employee and the City.

ARTICLE IX. PERSONAL LEAVE TIME

Each full-time regular employee who is eligible for Personal Leave time (PLT) shall be provided a bank of forty-five (45) hours of PLT on January 1st of each calendar year.

A. Eligibility:

1. Initial Six Months of Employment

a. Personal leave time shall not accrue during the initial six months of employment in

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the bargaining unit and as such, employees who separate service prior to the completion of the initial six months of employment shall be ineligible to receive a PLT payoff.

b. Upon completion of the initial six months of employment, employees shall receive

22.5 hours of PLT for use in accordance with Section B. For the remainder of the respective calendar year, the PLT bank shall be prorated at the accrual rate of 0.8654 hours per week.

2. Annual Leave Bank

a. Employees who have completed the eligibility requirements in Sections A, subdivisions 1(a) and 1(b) above shall be provided a bank of forty-five (45) hours of PLT on January 1st of each calendar year. Part-time employees shall receive a pro-rated bank.

B. Usage:

Use of PLT time shall be subject to the following:

1. PLT may be used by employees for time off on an hour-for-hour basis until the employee has exhausted the bank.

a. Use of PLT shall be subject to the operating needs of the City. The City may deny an employee time off on PLT if such release time will adversely impact the operating or staffing needs of a City department.

2. PLT shall have cash value and may be cashed out by the employee on an hour-for-hour basis at the employee's regular straight-time hourly rate of pay. Employees may cash out unused PLT in any regular pay period pursuant to procedures established by the City Human Resources Department. Pursuant to Chapter 5, Article II, item A of this memorandum of understanding, employees may defer some or all cashed out PLT into the City's deferred compensation plan.

3. Any PLT time remaining in an employee's PLT bank on the last pay period of the calendar year shall not roll over into the next calendar year. Such PLT time shall be cashed out by the City on an hour-for-hour basis at the employee's regular straight-time hourly rate of pay.

4. Employees who terminate after six months of initial employment with the City or leave the bargaining unit shall be cashed out at the rate of 0.8654 hours per week up to the balance of the employee’s PLT bank. If an employee terminates and has taken more PLT in advance than 0.86538 hours per week, the City shall deduct an equivalent amount of pay for the PLT. Any time cashed out will be paid on an hour-for-hour basis at the employee’s regular straight-time hourly rate of pay. For example, if an employee terminates employment on March 31, the employee shall receive payment for thirteen (13) weeks of PLT, or 11.2502 hours of PLT time. Part-time employees will be receive a pro-rated cash out of their bank.

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CHAPTER 4. INSURANCE BENEFITS

ARTICLE I. MEDICAL AND DENTAL BENEFITS

A. Eligibility

Any regular employee working fifty percent (50%) or more of a full-time schedule shall be eligible to enroll in any health and welfare benefit provided by this Article and currently authorized by the IBEW Local 1245 bargaining unit. Regular part-time employees who are hired into a position funded as regular part-time after January 1, 2004, or current employees who laterally transfer or promote into a regular part-time allocated position, will receive a pro-rated amount toward their health and welfare contribution based on actual hours worked. The contribution amount will be based on the percentage of full-time the employee works. For example, employees working twenty (20) hours per week will receive fifty percent (50%) of the full-time contribution; employees working thirty (30) hours per week will receive seventy-five percent (75%) of the full-time contribution, etc.

B. Medical Insurance Benefits

The City agrees to contract with the California Public Employees’ Retirement System (CalPERS) for the purpose of providing employees and their eligible dependents with medical insurance benefits. Effective the first of the month after approval by the City Council or as soon as administratively possible, the City’s maximum monthly contribution for each eligible active employee shall be equal to the minimum employer contribution required under the Public Employees’ Medical and Hospital Care Act (PEMHCA).

C. Cafeteria Plan

1. The City agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code and any related regulations, for the purpose of providing employees with access to various health and welfare benefits. Benefits available through the Cafet eria Plan include medical insurance, dental insurance, long-term disability insurance (LTD) and vision insurance.

2. The City provides a Cafeteria Plan Allowance to all employees eligible to participate in City sponsored health and welfare benefits under Section A of this Article of up to $1,347 per month (less the direct PEMHCA payment provided in paragraph B).

3. Effective May 1, 2022, the City agrees to provide a flex plan credit based on medical plan tier election (EE only, EE+1, or Family) to be used by active employees for any benefit covered under the Cafeteria Plan, as follows:

Active Employee
Medical Election Tier
Employee Only
(EE Only)
Employee Plus One
Dependent (EE+1)
Employee Plus
Family (Family)
Flex Plan Credit $200/month $273/month $598/month

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4. Effective January 1, 2023, the City agrees to provide a flex plan credit based on medical plan tier election (EE only, EE+1 or Family) to be used by active employees for any benefit covered under the Cafeteria Plan, as follows:

Active Employee
Medical Election Tier
Employee Only
(EE Only)
Employee Plus One
Dependent (EE+1)
Employee Plus
Family (Family)
Flex Plan Credit $200/month $318/month $673/month

5. Effective January 1, 2024, the City agrees to provide a flex plan credit based on medical plan tier election (EE only, EE+1 or Family) to be used by active employees for any benefit covered under the Cafeteria Plan, as follows:

Active Employee
Medical Election Tier
Employee Only
(EE Only)
Employee Plus One
Dependent (EE+1)
Employee Plus
Family (Family)
Flex Plan Credit $200/month $363/month $748/month

6. Effective January 1, 2025, the City agrees to provide a flex plan credit based on medical plan tier election (EE only, EE+1 or Family) to be used by active employees for any benefit covered under the Cafeteria Plan, as follows:

Active Employee
Medical Election Tier
Employee Only
(EE Only)
Employee Plus One
Dependent (EE+1)
Employee Plus
Family (Family)
Flex Plan Credit $200/month $408/month $823/month

7. Effective January 1, 2026, the City agrees to provide a flex plan credit based on medical plan tier election (EE only, EE+1 or Family) to be used by active employees for any benefit covered under the Cafeteria Plan, as follows:

Active Employee
Medical Election Tier
Employee Only
(EE Only)
Employee Plus One
Dependent (EE+1)
Employee Plus
Family (Family)
Flex Plan Credit $230/month $453/month $898/month

8. Employees who elect not to participate in any of the medical, dental, LTD, and vision insurance benefits sponsored by the City and who provide proof of other medical coverage will not receive any Cafeteria Plan Allowance under Section C(2) of this Article. Instead, employees who opt out of these City sponsored benefits will receive $150 per month.

9. Any Cafeteria Plan Allowance provided for under Section C(2) of this Article can only be used by an employee to offset the cost of participation in City sponsored medical, dental, and vision insurance benefits for the employee and any eligible dependents.

D. The City agrees to continue its existing Section 125 plan. The City reserves the right to select the provider or self-administer this program and to set limits for medical reimbursement accounts.

E. The City agrees to provide a dental benefit as described in the evidence of coverage document.

The City reserves the right to select any dental carrier. The City will provide two (2) cleanings per year (except for periodontal patients who will continue to have four (4) cleanings). Open enrollment will be as described in the evidence of coverage document, but may be changed at the City's discretion in order to better manage the dental benefit.

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F. The City agrees to provide a vision benefit. Details of the City’s vision benefit are described in the evidence of coverage document. The City reserves the right to select any vision carrier.

Open enrollment will be as described in the evidence of coverage document.

G. From time to time, the City will change benefit providers due to administrative, s ervice, economic or other reasons. Due to carrier policies and procedures and Department of Insurance requirements, there can be no guarantee that one policy will exactly mirror the preceding one. The City desires to provide a consistent benefit, and insofar as is possible , benefits and language will be matched.

ARTICLE II. RETIREE HEALTH BENEFITS

A. Medical Insurance Benefits

The City agrees to contract with the California Public Employees’ Retirement System (CalPERS) for the purpose of providing employees and their eligible dependents with medical insurance benefits. Effective the first of the month after approval by the City Council or as soon as administratively possible, the City’s maximum monthly medical contribution for each eligible retiree shall be equal to the minimum employer contribution required for active employees under the Public Employees’ Medical and Hospital Care Act (PEMHCA).

The parties agreement to move from the CalPERS equal contribution method to the PEMHCA minimum employer contribution method does not modify retiree health benefits for employees in Tiers I and II pursuant to Article II B and C below.

B. For Employees Hired Prior To January 1, 2004 (Tier 1)

Employees hired prior to January 1, 2004 that qualify for post-retirement health benefits shall qualify for such benefits based on rules in effect prior to January 1, 2004, i.e. an e mployee that retires from the City of Roseville and is eligible for CalPERS service retirement shall receive a City contribution towards their post-retirement medical insurance benefit at the same level as full- time regular employees covered by this agreement. (See benefit level Chapter 4, Article I(C), Cafeteria Plan, subsection 2.

C. For Employees Hired On Or After January 1, 2004 And Prior To January 1, 2014 (Tier 2)

Employees hired on or after January 1, 2004 and prior to January 1, 2014, to be eligible to receive post-retirement health benefits, an employee must complete at least five (5) years of CalPERS-credited service with the City of Roseville. Employees who retire from the City of Roseville after meeting the service requirement stated above and who have at least ten (10) years of CalPERS-credited service will receive a City contribution towards their post-retirement health benefits as follows:

Total Credited % of
Years of Service City Contribution per current CalPERS Resolution for IBEW Local 1245

10 50 %
11 55
12 60

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13 65
14 70
15 75
16 80
17 85
18 90
19 95
20 + 100

Employees who have CalPERS-credited service through other public agencies must complete at least five (5) years of service with the City of Roseville and retire from the City of Roseville to be eligible for post-retirement health benefits. However, once an employee has completed five (5) years of service with the City of Roseville, their eligibility for post-retirement health benefits will include all years of CalPERS-credited service.

The vesting requirements for post-retirement health benefits will become effective January 1, 2004. Employees hired on or after January 1, 2004 shall be subject to the above post-retirement vesting schedule for health benefits (see benefit level Chapter 4, Article I(C), Cafeteria Plan, subsection 2).

D. If City withdraws from the PEHMCA program through the life of this contract, employees hired after January 1, 2004 must have five (5) years of continuous service with the City of Roseville before becoming eligible for City-paid retiree health insurance.

Employees under this scenario will be subject to the following schedule:

Total Credited % of
Years of Service City Contribution

5 25
6 30
7 35
8 40
9 45
10 50
11 55
12 60
13 65
14 70
15 75
16 80
17 85
18 90
19 95
20 + 100

E. For Employees Hired On Or After January 1, 2014 (Tier 3).

1. Employees hired on or after January 1, 2014, have no vested right in any post-employment medical benefits provided by the City of Roseville. Instead, upon hire, those employees shall contribute one percent (1%) of their base salary each pay period to a City sponsored Retirement

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Health Savings (RHS) account and shall contribute an additional one percent (1%) per pay period per year annually, up to a maximum of five percent (5%) per pay period annually thereafter, to be used to fund the employee’s medical costs upon retirement from the City.

2. After five (5) years of continuous service with the City of Roseville, and beginning on the first pay period of the sixth year of service, the City shall contribute a flat dollar amount equal to $100 per month to be deposited to the employee’s RHS account up until the employee’s retirement date or separation from the City. After accruing ten (10) cumulative years of service with the City and pursuant to the vesting schedule in Section C of this Article, employees may draw from the City contribution to this account upon retirement.

3. Employees who terminate City service for reasons other than retirement prior to twenty (20) years of cumulative service with the City will forfeit any City contributions.

4. Employees must retire from the City of Roseville and be enrolled in the City of Roseville’s health plan in order to utilize City contributions to the employee’s RHS accounts. After ten ( 10) years of cumulative service with the City of Roseville, City contributions to the employee’s RHS account may be used for all covered medical expenses pursuant to Section 213 of the IRS Code including participation in non-City sponsored plans.

ARTICLE III. LONG TERM DISABILITY

A. The City agrees to provide a Long Term Disability (LTD) Program with a waiting period of sixty (60) calendar days; whereupon an eligible employee shall be entitled to receive up to sixty percent (60%) of their gross monthly salary (a minimum of $100) until age sixty-seven (67) in accordance with the LTD plan.

B. After own occupation disability benefits have been payable for thirty-six (36) months, employee is disabled if the injury or sickness makes him/her unable to perform all the material duties of any occupation for which he/she may reasonably become qualified based on education, training or experience.

C. Other details of the City’s LTD Plan are described in the plan booklet. The City reserves the right to select any LTD carrier.

D. From time to time, the City will change benefit providers due to administrative, service, economic or other reasons. Due to carrier policies and procedures and Department of Insurance requirements, there can be no guarantee that one policy will exactly mirror the preceding one. The City desires to provide a consistent benefit, and insofar as is possible benefits and language will be matched.

E. After five (5) years as a regular employee of the City, the City agrees to pay one hundred percent (100%) of the premium for the LTD plan.

F. A program of voluntary group Supplemental LTD is available to those employees assigned to the classifications in Appendix “A” and “A2”. The City does not guarantee any minimum level of benefit provided to any Supplemental LTD program. The City reserves the right to select the insurance provider. The employee accepts sole responsibility for payment of any and all costs under this program. All premiums will be collected via payroll deduction.

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ARTICLE IV. LIFE INSURANCE

A. The City agrees to provide eligible employees with a fully paid life insurance program in the amount of twice the employee’s annual salary in effect as of July 1 of each year. The City reserves the right to select the insurance provider.

B. From time to time, the City will change benefit providers due to administrative, service, economic or other reasons. Due to carrier policies and procedures and Department of Insurance requirements, there can be no guarantee that one policy will exactly mirror the preceding one. The City desires to provide a consistent benefit, and insofar as is possible benefits and language will be matched.

ARTICLE V. EMPLOYEE ASSISTANCE PROGRAM

A. The City agrees to provide an Employee Assistance Program (EAP) for employees that includes up to six (6) visits a calendar year for each employee and each dependent family member and spouse.

The City desires to provide a consistent benefit, and insofar as is possible benefits and language will be matched.

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CHAPTER 5. RETIREMENT.

ARTICLE I. PUBLIC EMPLOYEES' RETIREMENT SYSTEM

A. Retirement System. Unit members are provided retirement benefits under the California Public Employee Retirement System (CalPERS) as described in this Article.

B Tier One: 2.7% at 55 Retirement Program – Bargaining Unit Members Hired On or Before December 31, 2012 and Unit Members Qualified for Reciprocity (Classic Member)

This Section B, including subsections, shall apply to bargaining unit members hired on or before December 31, 2012. In addition, this Section B shall apply to bargaining unit members hired on or after January 1, 2013, who are qualified for pension reciprocity as stated in Government Code Section 7522.02(c) and related CalPERS reciprocity requirements (Classic Member ):

1. 2.7% at 55 Pension Formula

The “2.7% @ 55” retirement program will be available to bargaining unit members covered by this Section.

2. Final Compensation Based On 12-Month Period

For the purposes of determining a retirement benefit, final compensation for bargaining unit members covered by this Section B shall mean the highest twelve (12) consecutive month period as specified in Government Code Section 20042.

3. Required Contributions

Bargaining unit members covered by this Section B shall continue to pay, through payroll deduction, 8.0% of compensation earnable contribution to CalPERS. 6.197% shall be contributed toward the City’s pension costs, and 1.803% shall be contributed toward the employees’ pension contribution.

The City shall pay 6.197% of compensation earnable as EPMC (Employer Paid Member Contribution) and shall report the same percent (value) of compensation earnable as special compensation pursuant to Government Code Section 20636(c)(4).

C. Tier Two: PEPRA Retirement Tier Required For Bargaining Unit Members Hired On or After January 1, 2013 and Not Qualified For Reciprocity

This Section C, including subsections, shall apply to bargaining unit members who were hired on or after January 1, 2013, and who do not qualify for pension reciprocity as stated in Government Code Section 7522.02(c).

1. 2% at 62 Pension Formula

The “2% @ 62” retirement program will be available to bargaining unit members covered by this Section C.

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2. Final Compensation Based On 36-Months
Effective January 1, 2013, for the purposes of determining a retirement benefit, final compensation for bargaining unit members covered by this Section C shall mean the highest annual average pensionable compensation earned during thirty-six (36) consecutive months of service.

3. Required Bargaining Unit Member Contributions

As required by Government Code Section 7522.04(g), effective January 1, 2013, bargaining unit members covered by this Section C shall pay, through payroll deduction, fifty percent (50%) of normal costs as determined by CalPERS.

D. Other Options Included In CalPERS Contract

Unit members continue to be eligible for the following options included in the City’s contract with CalPERS:
• Government Code Section 20965 (Conversion of unused sick leave balance to service credit.)
• Government Code Section 21573 (Third Level of 1959 Survivor Benefits). • Government Code Section 21548 (Pre-Retirement Option 2W Death Benefit).

ARTICLE II. DEFERRED COMPENSATION

A. The City agrees to maintain a deferred compensation plan, the choice of which shall be at the sole discretion of the City, wherein City employees can defer a portion of their earnings from State and Federal Income Tax as provided by applicable laws.

B. The City agrees to contribute one hundred dollars ($100) monthly into all employees’ deferred compensation plan. Employees may choose to contribute this allocation toward their health and welfare package. The election to place the contribution into their health and welfare package or deferred compensation must be made during a health open enrollment period.

C. The City agrees to contribute three percent (3%) of the employee’s base wages into the deferred compensation plan as a replacement benefit to the City’s withdrawal from the Social Security System for employees who have completed five (5) continuous years of classified employment with the City of Roseville.

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CHAPTER 6. HOURS, SCHEDULES, MEALS

ARTICLE I. GENERAL HOURS OF WORK

A. The following shall constitute the City's Hours of Service Policy except as otherwise provided herein.

The Department Head or his/her designated authority may waive these provisions in emergency situations as determined by the Department Head.

B. Except for part-time employees, eight (8) hours shall constitute a day's work. Five (5) days of eight (8) hours or forty (40) hours shall constitute a workweek for all employees. Employees will be subject to call twenty -four (24) hours per day and shall respond to suc h calls unless unable to perform required work.

C. All full-time employees shall have two (2) specified consecutive days off per week, Saturdays and Sundays, if possible, without deduction from pay. In case of emergency, and if the position must be continuously filled, an employee may be required by the employing officer, with the approval of the Human Resources Director, to work on weekly days off.

D. The appointing authority of each department shall draw up a schedule of days off for all full -time monthly employees under the department's jurisdiction.

E. Change of Schedule: Any employee involved in a mandatory change of schedule which involves a modification in an employee’s starting time or days off will be given a minimum of five (5) working days’ notice.

F. Employees may be assigned to work Saturdays, Sundays, holidays or regular days off and take days off during the week. Each such employee shall report for duty at the assigned duty station at the regular starting time and shall remain on duty eight (8) hours, performing all regular duties of the position and other duties in connection with the maintenance and operation of the department. During the other sixteen (16) hours of Saturdays, Sundays, holidays or regular days off, such employee will be available for call, but shall not be required to remain at home.

G. Troubleshooters may be assigned a rotational work schedule to include Saturdays and Sundays.

H. For purposes of defining the workweek in compliance with the Fair Labor Standards Act, the workweek begins at 12:01 a.m. on Saturday and ends at 12:00 midnight on Friday.

I. The City and IBEW Local 1245 agree that the Electric Utility Director and/or his/her designee will meet with IBEW Local 1245’s principals for purposes of discussing potential changes in shift schedules.

ARTICLE II. INCLEMENT WEATHER SCHEDULE

A. The City agrees that regular or probationary employees who are unable to work in the field because of inclement weather will receive pay for the full day, provided they have reported for duty. During such day they may be held pending emergency calls, may be given first aid, safety or other instruction or they may be assigned to perform miscellaneous duties in sheltered locations.

B. Temporary personnel who have reported to work but are unable to work in the field because of inclement weather will be paid only for the time they work or are held by the City, except, however, that they will be paid for not less than two (2) hours.

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C. The Utility Director, or a delegated subordinate, will be responsible for determining if weather conditions warrant commencement or cessation of outside work in inclement weather. In arriving at a decision with respect to weather conditions, the Utility Director or delegated subordinate shall take into account such factors as: (a) employee health and safety, (b) undue ha zards, (c) operating requirements, (d) service to the public, (e) job site working conditions, (f) anticipated duration of time required to leave unfinished job in a safe condition, (g) anticipated duration of inclement weather, and (h) distance from job site to operating headquarters.

ARTICLE III. REST PERIODS

It is the intent of this Article to provide for and insure a reasonable amount of rest for employees who may be required to work an extraordinary number of overtime hours between workdays or on a continuous emergency work schedule. In such circumstances, the City agrees to the following provisions as a means of assuring adequate rest, and the prevention of fatigue and safety hazards.

A. Rest Period Between Workdays

1. If an employee has worked for four (4) or more hours during the eight (8) hour period immediately preceding the beginning of his/her regular work shift, he/she is entitled to a five (5) hour rest period upon the completion of such overtime work.

2. If an employee has worked for six (6) or more hours during the twelve (12) hour period immediately preceding the beginning of his/her regular work shift, he/she is entitled to a seven (7) hour rest period upon the completion of such overtime work.

3. If an employee has worked for eight (8) or more hours during the sixteen (16) hour period immediately preceding the beginning of his/her regular work shift, he/she is entitled to a nine (9) hour rest period upon the completion of such overtime work.

4. Rest periods are to begin immediately upon employee’s release from overtime work. If the rest period in whole or in part overlaps the employee’s regular work hours he/she will receive pay at the straight time rate for the extent of the overlap.

5. If the rest period overlaps his/her regular work hours but does not extend into the second half of his/her workday, the employee may be excused from reporting for work until the beginning of the second half of his/her workday. Employee, in advance, will notify supervisor if he/she intends to exercise this option. The employee may request vacation or comp time to make up hours.

6. If the rest period extends into the second half of his/her regular day, the employee may be excused from reporting for work until the beginning of the following workday.

Employee, in advance, will notify supervisor if he/she intends to exercise this option. The employee may request vacation or comp time to make up hours.

7. At the discretion of the department head or designee, additional rest periods of up to 4 hours may be assigned in unusual or emergency circumstances. With supervisor/manager approval, these hours may be used in combination with the employee’s existing time-off banks, in combination with scenarios 1-3 above or the additional rest period hours used by themselves.

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B. Continuous or Emergency Work Schedule. When, in circumstances of emergencies or other business necessity, it becomes necessary for the City to require a continuous work schedule of twenty-four (24) or more hours of work, employees shall work under close supervision and will be released for rest at the discretion of the department head or designee. In such circumstances, the employee shall be entitled to the prevailing rate of overtime pay, and shall remain at such rate of pay until released from the work schedule for a minimum of eight (8) hours.

ARTICLE IV. SPECIAL DUTY ASSIGNMENTS

Refer to Administrative Regulation on Special Duty for the current policy on Special Duty Assignments.

When an employee is assigned a special duty assignment, the employee shall be compensated for hours worked at the regular rate of base salary and benefits regardless of whether or not the employee performs work within the regular classified position or is assigned to the employee’s regularly assigned department. If an employee is assigned to a special duty assignment of less than full time, compensation for hours worked may be supplemented by either accrued sick leave, or other available leave.

ARTICLE V. MEALS

All regular employees will be eligible for a $20.00 meal allowance as provided below:

A. OVERTIME WORKED CONTIGUOUSLY TO A REGULAR SHIFT.

1. All Overtime (emergency or scheduled) worked contiguously (before or after) to an employee’s regularly scheduled shift for a minimum of two (2) hours shall entitle the employee to one (1) meal allowance. Employees will be eligible for one (1) additional meal allowance for each additional four (4) hours of contiguous overtime worked.

2. Employees are entitled to a paid thirty (30) minute meal break for every four (4) contiguous hours of overtime worked.

Overtime hrs worked Total # of $20 meal allowances Total # of ½ hr paid breaks

>2 hrs < 4 hrs 1 = $20 0
>4 hrs < 6 hrs 1 = $20 1
>6 hrs < 8 hrs 2 = $40 1
>8 hrs < 10 hrs 2 = $40 2
>10 hrs < 12 hrs 3 = $60 2
>12 hrs < 16 hrs 3 max meals in 24 hours 3 >16 hrs 3 max meals in 24 hours 4

B. OVERTIME WORKED NON CONTIGUOUS TO A REGULAR SHIFT.

All overtime (emergency or scheduled) worked that is not contiguous with a normally scheduled shift shall entitle the employee to one (1) meal allowance for every four (4) hours of overtime worked. This scenario does not provide for the meal break to be compensated.

C. Under certain circumstances the City may provide a meal by bringing food to the worksite in lieu of “A1” or “B”.

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D. In no event shall an employee be entitled to more than three (3) meal allowances in a twenty -four (24) hour period from the beginning of the overtime shift.

E. The meal allowance will be recorded each eligible day in timekeeping to be paid with normal payroll periods.

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CHAPTER 7. MISCELLANEOUS ISSUES

ARTICLE I. UNIFORMS AND SAFETY EQUIPMENT

A. Uniforms (Non-Fire Retardant (FR) Clothing) Required To Be Worn Daily When an employee is required to wear a uniform on a daily basis, as determined by the department head, the employee may elect one of the following two options by January 1 of each year:

1. An employee will receive an annual jean allowance of $235.00 and el even (11) shirts selected by the City. The employee is responsible for cleaning the jeans, and must report to work in clean, well-maintained and repaired jeans. The jean allowance shall be payable in January of each year. The annual jean allowance shall be prorated for new employees by date of hire. The value of the uniform allowance is reported to CalPERS as compensation subject to retirement contributions for employees in the classic retirement tier (not PEPRA).

2. The City will provide and maintain for an employee annually eleven (11) shirts and eleven (pants) selected by the City to wear during working hours. The rental and maintenance of the uniform will be up to $500 each fiscal year based on the cost of renting and laundering of the uniform. The value of the uniform provided, cleaned and maintained, is reported to CalPERS as compensation subject to retirement contributions for employees in classic retirement tiers (not PEPRA).This excludes the monetary value for personal health and safety equipment.

B. Uniform (Non-FR Clothing) Not Required
If an employee, with the director’s approval, does not wear a City uniform, the employee will not be eligible for a uniform allowance.

C. Rain Gear
As needed, the City shall provide an employee with r ain gear consisting of one (1) each coat and pants.

D. Uniform Apparel – General Requirements
Employees who receive a jean allowance and employees who are provided with uniform apparel pursuant to this Article, including FR uniform apparel, are required to wear the provided clothing during all duty hours and to maintain a clothing standard consistent with representing the City to the public.

E. Safety Clothing and Equipment

1. Fire Retardant (FR) Clothing Required To Be Worn Daily If by law or regulation, due to hazard evaluation or CAL-OSHA requirements, an employee is required to wear FR clothing on a daily basis, the City shall provide all required FR clothing/uniform items, and the employee is not permitted to provide the employee’s own work clothing or to receive a jean allowance. The City shall provide eleven (11) FR pants

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and eleven (11) FR shirts annually, and shall provide other FR clothing items as needed as determined by the department head or designee.

2. Safety Boots/Shoes and Climbing Boots
a. Safety Boots/Shoes. As needed as determined by the department head or designee, the City shall provide an employee who is required to wear safety boots/shoes on a daily or intermittent basis with safety boots/shoes with a cost that does not exceed $250.00. The $250 may include maintenance and repair costs of the safety boot/shoe including but not limited to: shoe laces, toe guards and insoles and shall not exceed the $250 annual cost. At the City’s discretion, the City may provide safety boots/shoes through any method that allows an employee to choose safety boots/shoes that do not cost more than $250.00 and meet applicable safety requirements. Examples of methods the City could elect to use to provide safety boots/shoes, depending on the circumstances, i nclude, but are not limited to the following:

1. The City could authorize an employee to purchase safety shoes/boots and submit the original receipt for reimbursement. The reimbursement method requires the supervisor’s advance written authorization.

2. Or, an employee could select appropriate safety shoes/boots, and the City would order and pay for the selected boots.

3. Or, a supervisor could accompany an employee to a retail store and pay for the selected safety shoes/boots.

4. Or, the City could arrange for a vendor to provide a selection of appropriate safety shoes/boots from which employees may select/order safety shoes/boots at City expense.
b. Climbing Boots. As needed as determined by the department head or designee, the City shall provide an employee who is required to wear climbing boots with climbing boots with a cost that does not exceed $400.00. The $400 may include maintenance and repair costs of the safety boot/shoe including but not limited to:
shoe laces, toe guards and insoles and shall not exce ed the $400 annual cost. At the City’s discretion, the City may provide climbing boots through any method that allows an employee to choose climbing boots that do not cost more than $400.00 and meet applicable safety requirements. Examples of methods the City could elect to use to provide climbing boots, depending on the circumstances, include, but are not limited to the following:

1. The City could authorize an employee to purchase climbing boots and submit the original receipt for reimbursement. The reimbursement method requires the supervisor’s advance written authorization.

2. Or, an employee could select appropriate climbing boots, and the City would order and pay for the selected boots.

3. Or, a supervisor could accompany an employee to a retail store and pay for the selected climbing boots.

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4. Or, the City could arrange for a vendor to provide a selection of appropriate climbing boots from which employees may select/order at City expense. c. General Requirements.

1. Employees who are required to wear safety boots/shoes and/or climbing boots while performing their job duties must wear boots/shoes that are appropriate for their job classification and meet any CAL- OSHA requirements. The City reserves the right to determine if a boot or shoe is appropriate to the employee’s job classification in conformance with any applicable CAL-OSHA regulations.

2. To assure compliance with prescribed safe working practices or common sense, an employee who performs job duties without wearing appropriate safety boots/shoes or climbing boots whenever required by conditions and assigned duties will be subject to discipline.

3. Additional Safety Equipment
In addition to providing FR clothing, safety boots/shoes and climbing boots described above and as required by an employee’s job duties, the City shall provide employees with the following additional safety equipment and personal protective wear as needed, including, but not limited to: jackets, sweatshirts, hard hats, gloves, one (1) pair of insulated rubber boots with reinforced arches, and other materials and equipment required by CAL- OHSA to guard against potential on-the-job hazards to employees’ health and welfare. The City provides safety glasses in accordance with Administrative Regulation 2.02.

4. Safety Equipment – General Provisions
During their duty hours while performing their job duties, employees are required to use safety equipment and additional personal protective wear provided by the City as appropriate for the particular task. To assure compliance with prescribed safe working practices and common sense to protect against potential hazards to the health and welfare of employees, an employee who fails to use the appropriate safety equipment and personal protective wear shall be subject to discipline.

F. The parties agree to convene a labor management committee to evaluate options and meet and confer on the application and utilization of a new uniform service to address employees concerns on fire retardant clothing.

ARTICLE II. UNION SECURITY AND MEMBERSHIP

A. The Union is the sole and exclusive representative for all the employees covered by this agreement without regard to membership in the Union, with respect to all matters relating to hours, rates, terms and conditions of employment, and all other negotiable items.

B. Employees may authorize membership dues and other lawful deductions to be made from their salaries, wages, or retirement allowances for the payment of dues in accordance with the procedures required by law and set forth herein. To the extent required by Government Code Sections 1157.3 and 1157.12, the City shall honor employees’ voluntary authorizations for Union

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dues deductions from employee paychecks. Such authorized deductions shall be remitted monthly to the Union along with an adequate itemized record of deductions. After providing the required certification, the Union shall not be required to provide a copy of individual authorizations to the City unless a dispute arises about the existence or terms of the authorization. To the extent required by law, the City will rely on information provided by the Union in writing regarding whether dues deductions were properly cancelled or changed. Any requests from the Union that the City change dues deductions shall include a certification that the changes are requested with the affirmative consent of the individual employee(s) and otherwise comply with all requirements of state and federal law. The City shall make every reasonable effort to remit the amounts deducted within ten (10) working days following the payday on which the deductions were made.

C. Upon receiving notification from the Union, the City shall deduct the amount of regular and periodic Union dues, service fees, or insurance premiums as may be specified by the Union under the authority of written notification by the Union certifying that the employee has provided written affirmed consent for deduction of union membership dues or fair share service fees. Such authorized deductions shall be remitted monthly to the Union along with an adequate itemized record of deductions.

D. The Union shall indemnify, defend, protect and hold harmless the City and its elected and appointed officials, officers, employees, officers and agents (collectively hereafter the “Indemnitees”) from and against any and all claims, liabilities, losses, damages, fines, penalties, claims, demands, suits, actions, causes of action, judgments, costs and expenses (including, but not limited to, reasonable attorneys’ fees and court costs) arising from the application of any provisions under this Article, including, but not limited to, any claims made by any member employees for the membership dues deductions the City made in reliance on the Union’s certification, and any claims made by any member employees for any deduction cancellation or modification the City made in reliance on the information provided by the Union, provided that the City promptly notify the Union of any such matter for which it is seeking indemnification after the City has knowledge of the occurrence of such matter.

In the event any such action or proceeding is brought against the City by reason of any such claim, the Union, upon notice from the City, covenants to defend such action or proceeding by counsel reasonably satisfactory to the City. Further, the Union agrees to indemnify and hold harmless the Indemnitees for any loss or damage arising from the Union’s actions or inactions under this Article.

E. The employee’s earnings must be sufficient, after other legal and required deductions are made, to cover the amount of the membership dues deductions or any other deductions. When an employee is in a non-pay status for the full pay period when his/her deductions would normally be withheld, no deductions will be made to cover that withholding from the earnings. In the case of an employee who is in a non-pay status during only a part of the pay period and the salary is not sufficient to cover the full withholding, no deduction shall be made.

F. The City shall furnish the Union, on a monthly basis, the name, date of hire, salary, classification and work location of all newly-hired employees subject to this Agreement. The City agrees to provide the Union on a monthly basis a payroll dues deduction report.

ARTICLE III. CERTIFICATION OF ELIGIBLES AND APPOINTMENTS

Pursuant to City Personnel Rules Section 3.05.110 and Chapter 3.06, Appointments.

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ARTICLE IV. CAUSES FOR DISCIPLINE

The following may be causes for the City to initiate disciplinary action including demotion, reduction in pay, suspension, or dismissal of any employee, pursuant to these rules and regulation. The causes cited below are for both specific and exemplary reasons to alert employees to the more commonplace types of disciplinary issues. There are some serious acts of misconduct that by their nature are not appropriate for progressive discipline. Behavior of this type should be disciplined by suspension, or, if warranted, discharge on the first occasion. The rules governing discipline shall prevail as if the unlisted issue or infraction were listed as follows:

A. Attendance.

1. Improper or unauthorized use or abuse of sick leave;

2. Excessive absenteeism regardless of reason;

3. Being absent without authorized leave; repeated tardiness to assigned workstation, or leaving assigned work without authorization.

B. Behavior.

1. Willful or negligent violation of the Personnel Rules and Regulations, resolutions, and other related ordinances including departmental rules, regulations, and policies;

2. Insubordination (failure to carry out a direct order from a supervisor);

3. Acceptance of gifts or gratuities in connection with or relating to the employee's duties, except as provided in Section 3.15.030;

4. Conduct that is unbecoming a City officer or employee which tends to discredit the City or City service, including the wearing of City-identified uniforms off duty into a public or private establishment; the nature of which may adversely reflect upon the City; willful misrepresentation of the City;

5. Conviction of a crime, the nature of which reflects a possibility of serious consequences related to the continued assignment or employment of the employee;

6. Falsifying information related to employment application, payroll, or any work related record or report;

7. Soliciting outside work for personal gain during the conduct of City business engaging in outside employment for any business under contract by the City, participating in any outside employment that adversely affects the employee's City work performance, and engaging in unauthorized outside employment;

8. Discourteous treatment of the public or City employees;

9. Conduct interfering with the reasonable management and discipline of the City or any of its department or divisions;

10. Engaging in political activities while on duty;

11. Violation or neglect of safety rules;

12. Theft;

13. Physical altercations;

14. Any act or conduct that is discriminatory in nature towards another person's race, color, religion, ancestry, national origin, age, sex (including sexual harassment), sexual orientation, marital status, political affiliation, family care leave status, pregnanc y, physical or mental disability, medical condition, or legally protected characteristic.

C. Work Performance.

1. Inefficiency, incompetence, or negligence in the performance of duties, including failure to perform assigned tasks of training, or failure to discharge duties in a prompt, competent, and reasonable manner;

2. Refusal or inability to improve job performance in accordance with written or verbal direction after reasonable trial period;

3. Refusal to accept reasonable and proper assignment from an authorized supervisor;

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4. Possession of, or intoxication, or incapacity on duty due to the use of, alcohol or drugs;

5. Driving under the influence of alcohol or drugs while on duty; suspension of driver's license where job duties require driving;

6. Careless, negligent, or improper use of City property, equipment or funds, including unauthorized removal, or use for private purpose, or use involving damage or unreasonable risk of damage to property;

7. Unauthorized release of confidential information or official records;

8. Participation in a strike, work stoppage, slowdown, or other job action against the City.

ARTICLE V. GRIEVANCES - GENERAL AND PROCEDURES

Any represented employee who wishes to call his or her Union business representative regarding employment related matters, may do so on City paid time at his or her own expense, provided such telephone calls do not represent or create any unreasonable disruption of work.

A. Grievances in General. An employee, individually or in representation of a group of employees, may complain to the City management through the grievance procedure in this Article regarding any matter relating to that employee's wages, hours, or conditions of employment. A grievance may be either formal or informal. However, an informal grievance is a prerequisite to filing a formal grievance.

B. Informal Grievances. An employee, individually or in representation of a group of employees, with a grievance shall first discuss the matter with his or her immediate supervisor within ten (10) calendar days of the matter complained of. The supervisor and the employee shall attempt to informally resolve the dispute. If this is not accomplished, the employee shall next discuss the matter with the next level of supervision within ten (10) calendar days of the matter complained of. The supervisor and the employee shall attempt to informally resolve the dispute. If this is not accomplished, the employee shall next discuss the matter with the next level of supervision within ten (10) calendar days of the unsuccessful discussion and so on, until the employee reaches the department head. The decision of the department head regarding an informal grievance shall be final unless the employee files a formal grievance.

C. Formal Grievances.

1. An employee, individually or in representation of a group of employees, who has a grievance which remains unresolved after utilizing the informal grievance procedure may file a formal grievance in writing. The employee shall file a formal written grievance with the City Manager within ten (10) calendar days after the final decision on the informal grievance. The formal grievance shall contain all relevant information relating to the grievance, which the employee wishes the City Manager to consider. The City Manager shall meet with and respond in writing to the employee within ten (10) calendar days of the receipt of the grievance.

2. Except in those cases where the grievance is subject to Administrative Appeal to the Personnel Board pursuant to Roseville Municipal Code, Chapter 3.23, the decision of the City Manager regarding a formal grievance is final.

ARTICLE VI. MINIMUM SCORES AND COMPUTATIONS

Pursuant to City Personnel Rules Section 3.05.070.

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ARTICLE VII. CITY MANAGEMENT RIGHTS

Pursuant to Section 3.17.030 of the City's Personnel Rules, the following shall constitute the City's management rights:

A. To ensure that the City is able to carry out its statutory functions and responsibilities, nothing contained in this Article shall be construed to require the City to negotiate on matters, which are solely a function of management, including the following:

1. To manage the City generally and to determine the issues of policy.

2. To determine the existence of facts, which are the basis of management decisions.

3. To determine the necessity for and organization of any service or activity conducted by the City, and to expand or diminish services.

4. To determine the nature, manner, means, technology, and extent of services to be provided to the public.

5. To determine methods of financing.

6. To determine types of equipment or technology to be used.

7. To determine and/or change the facilities, methods, technology, means, organizational structure, and size and composition of the work force, and to allocate and assign the work by which City operations are to be conducted.

8. To determine and change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions, including, but not limited to, the right to contract for or subcontract any work or oper ation of the City, except where such contracts for service would be for the purpose of workforce reductions.

9. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments upon reasonable notice and good faith consultation.

10. To lay off employees from duties because of lack of work or funds, or under conditions where continued work would be ineffective or non-productive.

11. To establish and modify productivity and performance programs and standards.

12. To dismiss, suspend without pay, demote, reprimand, withhold salary step increases, or otherwise discipline employees for cause.

13. To determine minimum qualifications, skills, abilities, knowledge, selection procedures and standards, and job classifications, and to reclassify employees.

14. To hire, transfer, promote, and demote employees for nondisciplinary reasons.

15. To determine policies, procedures, and standards for selection, training, and promotion of employees.

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16. To establish reasonable employee performance standards including, but not limited to, quality and quantity standards; and to require compliance therewith.

17. To maintain order and efficiency in City facilities and operations.

18. To establish, publish, and/or modify rules and regulations to maintain order and safety and health in the City, which are not in contravention with these Regulations or the Personnel Rules.

19. To restrict the activity of an employee organization on the municipal property and on municipal time except as set forth in these regulations.

20. To take any and all necessary action to carry out the mission of the City in emergencies.

B. No neutral third party, including the Personnel Board, shall have the authority to add, delete or otherwise modify any provision of these employer rights, authorities, or functions, but shall be limited to matters of interpretation only.

C. The employer rights shall not remove or limit the right of any classified employee to exercise grievance procedures.

ARTICLE VIII. NON-DISCRIMINATION

The Union is obligated to comply fully with Titles VI and VII of the 1964 Civil Rights Act (as amended), such that employee organizations and labor unions shall not discriminate against any member or prospective member on the basis of such person's race, creed, color, national origin, sex, age (over 40), or religious affiliation, physical handicap (except where indicated by requirements of the position), medical condition, marital status and all other applicable State and Federal statutes relating to non-discrimination.

ARTICLE IX. ADMINISTRATION OF APPRENTICESHIP PROGRAMS IN ELECTRIC

UTILITY DEPARTMENT

The City of Roseville, desirous of establishing apprenticeship programs in the Electric Department, does hereby adopt the following rules for the administration of said programs in cooperation with the recognized majority representative of employees in this department, the International Brotherhood of Electrical Workers, AFL-CIO, Local #1245:

A. Committee.

An Apprenticeship Committee will be established and shall be composed of two (2) voting members appointed by the International Brotherhood of Electrical Workers, Local #1245 (Union), and two (2) members appointed by the City. Additional parties (Union and City) may attend monthly Apprentice Committee meetings upon mutual agreement of both parties (Union and City). This committee will prepare, review and revise training standards as necessary. Decisions of this committee are subject to the approval of the Union Business Manager (or designee) and the City Manager.

B. Training Standards.

A training standard of progress will be developed for each apprenticeship program and will

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be formalized in the Apprentice Training Program specific to each program. This standard will indicate the training time for each phase of training or work process. The training time indicated will not be restrictive, but rather will be indicative of the emphasis or amount of time that should be spent on each phase. Although the total time spent on any one phase during any one progression period may vary with the individual, work load and amount of related instructions, minimum assignments shall be met during the term of the apprenticeship as outlined in the City of Roseville Apprentice Line Technician, Apprentice Substation Technician and Apprentice Metering Systems Technician Training Programs.

C. Nondiscrimination Provision.

Selection of apprentices under the program shall be made from qualified applicants pursuant to the Personnel Rules of the City of Roseville and without regard to race, creed, color, national origin or ancestry, physical or mental disability, medical condition, denial of family and medical care leave, gender, gender identity and gender expression, sex, sexual orientation, marital status, age, or religious affiliation, military and veteran status, genetic information, and all other applicable state and federal statutes relating to discrimination.

D. Entrance Requirements.

To be eligible to enter an apprenticeship program, a candidate must pass an appropriate entrance examination and meet whatever other minimum requirements may be established for that classification. Employees will be given an opportunity to indicate their desires and intentions with regard to entering apprenticeship training programs. Vacanc ies in apprenticeship training programs will be announced in accordance with normal procedure.

E. Progression Tests.

To progress through the apprentice program will require passing a progression test for each step of the program. These tests and the manner in which they will be scored will be prepared and agreed to by the Joint Apprenticeship and Training Committee and outlined in the City of Roseville Apprentice Line Technician Training Program dated 08/2016, and Apprentice Substation Technician and Apprentice Metering Systems Technician Training Program dated 02/16/22 .

F. Review and Evaluation.

The Electric Utility Director shall appoint staff who shall review and evaluate the progress of each Apprentice during the program. Employees in the Apprentice classification shall receive a performance report for each six months of training. The completed performance review will be administered through the normal City process.

G. Instruction.

Related classroom instruction as agreed to by the Joint Apprenticeship and Training Committee will be given the apprentices during regular working hours. The instructors will be selected from personnel qualified to instruct.

Each apprentice shall pursue related and supplemental theoretical studies of not less than approximately eighty (80) hours per year. This outside training shall be approved by the Joint Apprenticeship and Training Committee and shall be pursued on the apprentice's own time and without pay from the City.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 42 Memorandum of Understanding

H. Salary Step Increases.

Employees are eligible for a salary merit increase based on successful (70%) completion of the required testing for each step as outlined in the City of Roseville Apprentice Line Technician, Apprentice Substation Technician and Apprentice Metering Systems Technician Training Programs.

I. Probationary Period.

Employees in the Apprentice Line Technician and Apprentice Electric Metering Systems Technician classification remain on a probationary status that is in effect throughout their entire Apprenticeship Program, which shall not exceed forty two (42) months. Employees in the Apprentice Electric Substation Technician classification shall remain on a probation status throughout their entire Apprentice program, which shall not exceed fifty-four (54) months. In any case where the Apprentice fails to adhere to standards outlined in the Apprentice Line Technician Program, the employee will be rejected on probation and removed from the program. The City retains its sole discretion to determine whether an Apprentice completes probation.

The Union and City acknowledge and agree that the length of the probationary period under this Apprenticeship Program reflects the unique nature and required training and evaluation time for the classifications contemplated herein. As described in Roseville Municipal Code, Section

3.06.130, the probationary period is an intrinsic part and extension of the employee selection process during which the employee shall be considered in training and under careful observation and evaluation by supervisory personnel. Generally, this period will be utilized to train and evaluate the employee’s effective adjustment to work tasks, conduct, observance of rules, attendance and job responsibilities, and to provide for the release of any probationar y employee whose performance does not meet required standards of job progress or adaptation.

J. Reinstatement Rights.

Employees rejected on probation within the first year of the Apprenticeship Program shall be reinstated to the classification from which the employee was promoted if the employee held regular status in the lower level position with the exception of those employees promoted from the Electric Pre-Apprentice position. Employees who were promoted from an Electric Pre-Apprentice position to the Apprentice position or employees who were rejected on probation from the Apprenticeship program in year two or three will be considered to be released from City service without cause at the sole discretion of the City and do not have reinstatement rights to a previously held position within the City. Such release shall not be subject to any appeal. Written notification of release shall be provided to the probationer, and a copy filed with the Human Resources Director or a designee thereof. As negotiated between the Union and City, the provisions of this Amendment #1 to the parties’ Memorandum of Understanding control, notwithstanding any other language contained in the City’s Personnel Rules, including, but not limited to, Roseville Municipal Code, Title 3, Sections 3.06.140, 3.06.170, and 3.06.180.

K. Demotion.

Employees wishing to voluntarily withdraw from the Apprenticeship Program may request a voluntary demotion pursuant to City’s Personnel Rules, Roseville Municipal Code, Title 3, Section

3.07.040.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 43 Memorandum of Understanding

ARTICLE X. UNION ORIENTATION

The City shall provide thirty minutes for the union’s business representative to attend new hire orientation to meet with all new IBEW Local 1245 bargaining unit employees for the purpose of explaining union contract orientation and enrollment. The City will provide IBEW Local 1245 one week notice of new hire orientations that include IBEW Local 1245 employees.

City agrees to meet with IBEW Local 1245 during the term of the MOU to further explore alternate release time procedures.

ARTICLE XI. EDUCATIONAL REIMBURSEMENT

Employees may be reimbursed for the tuition and fees connected with job- related educational courses up to $150.00 per course, not to exceed $300.00 per year. The cost of books is not covered in this Agreement.

The employee will submit the request for rei mbursement to the supervisor, who will accept or reject the request. The request must be made before the class has been completed. The request will then be forwarded to the Human Resources Department, who will make the final decision to accept or reject the request. No payment will be made until the final proof of passing grade is submitted to the Human Resources Department. The City will maintain a maximum fund of $6,000 to be administered by the Human Resources Department for educational reimbursement . Once the fund balance is depleted, no further reimbursements will be approved.

ARTICLE XII. ALCOHOL AND DRUG POLICY

The City and IBEW Local 1245 agree to continue enforcement of the Alcohol and Drug Policy as referenced in Appendix "Y".

In addition to the above-mentioned policy, all employees will be required to notify the City in writing of any criminal drug statute conviction for a violation occurring in the workplace no later than five (5) calendar days after such conviction.

ARTICLE XIII. UNION RELEASE TIME REIMBURSEMENT

At the written request of the Union and upon approval by the applicable department head, designated union stewards may be granted up to four (4) days off per calendar year per steward of reimbursable leave time off to perform union business. Employees shall elect to utilize their accumulated leave time off bank, excluding sick leave, to receive their full regular base wages for the duration of the union leave time off. The leave time off is subject to approval by the employee’s supervisor and shall not disrupt operations. The union may request to utilize an additional allotment of a total of 18 hours of reimbursable release time per calendar year for a steward(s) to attend union training sessions. The additional 18 hours may be designated for use to one steward or spread among multiple stewards.

Subsequently, upon written verification from the Union of the amount of time off taken by the employee for union business, the City shall invoice the Union for the total compe nsation cost of the employee’s time off.

Within thirty (30) calendar days of receiving the reimbursement payment from the Union for the employee’s time off, the City shall reinstate all hours of accumulated leave used for union business to the employee’s respective leave bank. While on union release time, the employee shall not be considered to be on City time and accordingly the City shall not incur any liability, including but not limited to workers’ compensation and tort liability, arising out of the employee’s performance of union business. The Union shall indemnify and hold

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 44 Memorandum of Understanding

harmless the City, its officers, agents, employees, and volunteers, individually and collectively, from and against any and all claims, cost, suits, losses, demands, actions, judgments, damages, fees, liabilities, and proceeding of any nature whatsoever arising of, or related to, its adherence to this Article.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 45 Memorandum of Understanding

The terms and conditions of this Memorandum of Understanding are effective May 1, 2022 by the Employer-Employee representatives whose signatures appear below on behalf of their respective organizations.

City of Roseville: IBEW, Local 1245:

________________________ ___________________________
Dominick Casey Bob Dean
City Manager Business Manager

_________________________ __________________________
Timothy L. Davis Charley Souders
Chief Negotiator Chief Negotiator

_________________________ ___________________________ Stacey Peterson Mike Barton
Member, Negotiation Committee Member, Negotiation Committee

_________________________ ____________________________ Ryan Devore Adam Carpineta
Member, Negotiation Committee Member, Negotiation Committee

__________________________ __________________________ Dan Beans Clinton Castle
Member, Negotiation Committee Member, Negotiation Committee

_________________________ ____________________________ Paul Cummings Brendan Gossic
Member, Negotiation Committee Member, Negotiation Committee

_________________________ ____________________________ Trent Johnson Shawn Murphy
Member, Negotiation Committee Member, Negotiation Committee

_________________________ ____________________________ Jason Grace Matt Jones

Member, Negotiation Committee Member, Negotiation Committee

_________________________
Chalyn Ferguson

Member, Negotiation Committee

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 46 Memorandum of Understanding

APPENDIX “A” “A2” IBEW LOCAL 1245 CLASSES

150 ELECTRIC APPRENTICE LINE TECHNICIAN
1086 ELECTRIC APPRENTICE METERING SYSTEM TECHNICIAN
1084 ELECTRIC APPRENTICE SUBSTATION TECHNICIAN
2328 ELECTRIC DRAFTING TECHNICIAN I
2330 ELECTRIC DRAFTING TECHNICIAN II
2340 ELECTRIC ENGINEERING TECHNICIAN I
2345 ELECTRIC ENGINEERING TECHNICIAN II
2285 ELECTRIC LINE TECHNICIAN
2286 ELECTRIC LINE TROUBLESHOOTER
2210 ELECTRIC MATERIALS TECHNICIAN I
2212 ELECTRIC MATERIALS TECHNICIAN II
1085 ELECTRIC METERING SYSTEM TECHNICIAN
2421 ELECTRIC PRE-APPRENTICE
2254 ELECTRIC PREVENTIVE DATA SYSTEM TECHNICIAN
1083 ELECTRIC SUBSTATION TECHNICIAN
2350 ELECTRIC SYSTEM DISPATCHER
2359 ELECTRIC TECHNOLOGY SYSTS TECHNICIAN
9250 ELECTRIC UTILITY INSPECTION TECHNICIAN
2360 ELECTRIC UTILITY TECHNICIAN I
2362 ELECTRIC UTILITY TECHNICIAN II
2380 ELECTRONICS TECHNICIAN I
2385 ELECTRONICS TECHNICIAN II
1037 ENVIRONMENTAL UTILITIES INSTRUMENT AND CONTROL TECHNICIAN I 1038 ENVIRONMENTAL UTILITIES INSTRUMENT AND CONTROL TECHNICIAN II 1082 GENERATION MAINTENANCE SCHEDULER-COORDINATOR
3608 INSTRUMENT & CONTROL TECHNICIAN
4520 MATERIALS TECHNICIAN
5319 PLANT & EQUIPMENT MAINTENANCE WORKER II
5316 PLANT & EQUIPMENT MAINTENANCE WORKER I
5327 PLANT & EQUIPMENT MECHANIC I
5328 PLANT & EQUIPMENT MECHANIC II
5401 PREDICTIVE MAINTENANCE TECHNICIAN I
5402 PREDICTIVE MAINTENANCE TECHNICIAN II
5500 PREVENTATIVE MAINTENANCE TECHNICIAN I
5502 PREVENTATIVE MAINTENANCE TECHNICIAN II
5533 PREVENTATIVE MAINTENANCE COORDINATOR
5595 POWER ENGINEER I
5596 POWER ENGINEER II
5590 POWER PLANT ENGINEER I

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 47 Memorandum of Understanding

5591 POWER PLANT ENGINEER II
5526 POWER PLANT MECHANIC
5522 POWER PLANT OPERATOR TECHNICIAN I
5523 POWER PLANT OPERATOR TECHNICIAN II
7020 SCADA SYSTEM TECHNICIAN
7118 SR ELECTRIC LINE TECHNICIAN
7169 SR ELECTRIC MATERIALS TECHNICIAN
7124 SR ELECTRIC METERING SYSTEMS TECHNICIAN
7126 SR ELECTRIC SUBSTATION TECHNICIAN
7168 SR ELECTRIC SYSTEM DISPATCHER
7170 SR ELECTRONIC TECHNICIAN
7205 SR PLANT & EQUIPMENT MECHANIC
7152 SR POWER PLANT OPERATOR/TECHNICIAN
7284 SR PREVENTATIVE MAINTENANCE TECHNICIAN
9559 SR SCADA SYSTEM TECHNICIAN
7204 SR WATER DISTRIBUTION WORKER
7202 SR WASTEWATER UTILITY MAINTENANCE WORKER
2375 TRAFFIC SIGNAL MAINTENANCE WORKER I
2376 TRAFFIC SIGNAL MAINTENANCE WORKER II
9078 WATER CONSERVATION SPECIALIST
9049 WATER CONSERVATION WORKER I
9051 WATER CONSERVATION WORKER II
9246 WATER DISTRIBUTION WORKER I
9248 WATER DISTRIBUTION WORKER II
9027 WASTEWATER UTILITY MAINTENANCE WORKER I
9029 WASTEWATER UTILITY MAINTENANCE WORKER II

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 48 Memorandum of Understanding

APPENDIX “B” TWELVE HOUR SHIFT- SPECIFIC PROVISIONS

In addition to the applicable sections of the MOU, the following shall govern twelve (12) hour shift personnel:

1. Shift work. “Shift work is defined as a position that is staffed with rotating shifts, allowing for twenty-four (24) hour per day coverage, on a seven (7) day per week basis, including holidays.”

2. Lunch and breaks. Lunch Periods: All personnel assigned to twelve (12) hour shifts receive a thirty (30) minute paid lunch. Employees assigned to this shift will not be allowed to leave the work premises and may be required to report to their work station during their meal break.

3. Relief Operator– Overtime – Relief employees will be utilized within the 12-hour shift schedule only when relieving for the Operators on shift. When not relieving, they will work five (5) eight- hour shifts. Overtime will be calculated in accordance with the existing MOU (over 8 and over 40).

4. Paid Leave. A shift work employee who does not work for an entire regularly sch eduled shift, shall use paid leave (vacation, CTO, sick, etc.) to supplement the hours worked to provide up to twelve (12) hours of paid time for that day.

5. FLSA work period: For purposes of defining the workweek in compliance with the Fair Labor Standards Act, the workweek for all staff except 12-hour shift employees begins at 12:01 a.m. on Saturday and ends at 12:00 midnight on Friday. The City of Roseville reserves the right to change start times of each work week within a period as appropriate to the selected shift. [The City and IBEW Local 1245 agree that the Electric Utility Director and/or his/her designee will meet with IBEW Local 1245’s principals for purposes of discussing twelve (12) hour shift schedules.]

6. Overtime for twelve (12) hour shifts:

Overtime work may be required of any employees in order to meet special or unusual needs of service beneficial to the City and community. Overtime is defined as the number of hours worked in excess, and as an extension, of the normal schedule of work hours as illustrated below:

EMPLOYEE WORK SCHEDULE OVERTIME

Twelve hours per day Over twelve hours per day
and forty hours per week

7. Holidays - Employees scheduled to a twelve (12) hour shifts shall receive one hundred ten (110) hours of holiday hours per year, in advance on January 1 of each year, earned in approximately nine (9) hour increments for each one (1) month of continuous employment. Employees must use a minimum of eight (8) hours of holiday with additional hours requested in one (1) hour increments up to twelve (12) hours.

a. In lieu of holiday time off, twelve (12) hour shift employees may elect to receive straight salary for up to one half (1/2) of earned and unused holiday credit within each calendar year. All holiday time to be converted to pay by an employee shall be in twelve (12) hour increments. Employees who are interested in cashing out their holiday hours must sell the holiday leave time by the last business day in January of the year the hours are earned.
b. All holiday time off is subject to advance approval of the department head.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 49 Memorandum of Understanding

c. Holiday hours which are not used by December 31 of the year they are earned will be forfeited by the employee. [If employee is denied use of his/her holiday hours due to operational necessity then leave balances may be cashed out] d. If an employee has taken more holidays in advance than have been earned at the time of separation from service, the City may deduct an equivalent amount of pay for the holidays taken in advance from the employee's final pay check.

8. General hours of work – Chapter 6. Article 1. Plant Operators/Technicians and Leadworkers may have week days off.

9. The following shall constitute the City's Hours of Service Policy except as otherwise provided herein:
a. Except for part time employees, eight (8) or twelve (12) hours (depending on assignment) shall constitute a day's work. Forty (40) hours shall constitute a workweek for employees. Employees will be subject to call twenty four (24) hours per day and shall respond to such calls unless unable to report for required work. Shift work is defined as a position that is staffed with rotating shifts, allowing for twenty-four (24) hour per day coverage on a seven (7) day a week basis, including holidays.

b. All full time employees shall have two (2) specified consecutive days off per week, Saturdays and Sundays, if possible, without deduction from pay. As a result of a shift change, an employee may not have two (2) consecutive days off in a given week. In case of emergency, and if the position must be continuously filled, an employee may be required to work on weekly days off.

c. The appointing authority of each department shall draw up a schedule of days off for all full time employees under the department's jurisdiction.

d. Change of Schedule: Employees involved in a mandatory change of schedule which involves a modification in an employee’s starting time or days off will be given a minimum of ten (10) working days’ notice. Relief shift personnel may have their schedule changes with little or no notice. Twelve (12) hour shift workers will be given a minimum of fourteen (14) calendar days notice.

e. The Department Head or his/her designated authority may waive the above-stated provisions in emergency situations as determined.

f. Employees may be assigned to work Saturdays, Sundays, holidays or regular days off and take days off during the week. Each such employee shall report for duty at the assigned duty station at the regular starting time and shall remain on duty eight (8) hours (twelve (12) hours of Power Plant staff), performing all regular duties of the position and other duties in connection with the maintenance and operation of the department. During the other sixteen (16) hours of Saturdays, Sundays, holidays or regular days off, such employee will be available for call, but shall not be required to remain at home.

g. Employees who report for work or extend their shift for turnover transition must have prior supervisory approval and will be compensated for the actual time worked.

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 50 Memorandum of Understanding

APPENDIX “C” SURVEY AGENCIES

Environmental Utilities Survey Agencies

City of Davis
City of Fairfield
City of Folsom
City of Sacramento
City of Vacaville
City of West Sacramento
City of Woodland
Placer County
Sacramento County
South Placer Municipal Utility District
Placer County Water Agency
El Dorado Irrigation District

Electric Survey Agencies

City of Alameda
City of Lodi
City of Palo Alto
City of Redding
City of Santa Clara
Modesto Irrigation District
Northern California Power Agency
Sacramento Municipal Utilities District
Turlock Irrigation District

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 51 Memorandum of Understanding

APPENDIX “D” BENCHMARK CLASSES

Electric Drafting Technician II
Electric Engineering Technician II
Electric Line Technician
Electric Metering Systems Technician
Electric Substation Technician
Electronics Technician II
Environmental Utilities Instrument and Control Technician Instrument and Control Technician
Plant and Equipment Mechanic II
Power Engineer II
Wastewater Utility Maintenance Worker II

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 52 Memorandum of Understanding

APPENDIX “X” MAP

22 Mile Radius

Take Home Vehicles
Distance Map

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/01/2022-04/30/2026 Page 53 Memorandum of Understanding

APPENDIX “Y” DRUG AND ALCOHOL POLICY

Master Memorandum of Understanding

International Brotherhood of Electrical Workers, Local 1245

Term of Agreement:

May 1April 27, 202219 – April 30,
20262
Table of Contents
CHAPTER 1. ADMINISTRATIVE .................................................................................. 1 ARTICLE I. PARTIES TO UNDERSTANDING ............................................................................... 1 ARTICLE II. RECOGNITION ........................................................................................................... 1 ARTICLE III. STATE LAW COMPLIANCE...................................................................................... 1 ARTICLE IV. CITY COUNCIL APPROVAL..................................................................................... 1 ARTICLE V. CONTINUATION OF BENEFITS ............................................................................... 1 ARTICLE VI. SEVERABILITY OF AGREEMENT ........................................................................... 1 ARTICLE VII. TERM OF UNDERSTANDING ................................................................................. 2 CHAPTER 2. COMPENSATION ..................................................................................... 3 ARTICLE I. SALARIES ................................................................................................................... 3 ARTICLE II. OVERTIME ................................................................................................................ 10 ARTICLE III. CALL BACK ............................................................................................................. 12 ARTICLE IV. SERVICE TERM BONUS ........................................................................................ 12 ARTICLE V. PROMOTION ........................................................................................................... 13 ARTICLE VI. STANDBY................................................................................................................ 13 ARTICLE VII. WORKING OUT OF CLASS (Refer to Personnel Rules Section 3.07.080) .......... 14 ARTICLE VIII. PAYROLL ERRORS .............................................................................................. 15 CHAPTER 3. LEAVES ................................................................................................. 17 ARTICLE I. VACATION LEAVE .................................................................................................... 17 ARTICLE II. HOLIDAYS ................................................................................................................ 18 ARTICLE III. SICK LEAVE ............................................................................................................ 19 ARTICLE IV. CATASTROPHIC LEAVE ........................................................................................ 20 ARTICLE V. DISABILITY LEAVE ................................................................................................ 20 ARTICLE VI. MILITARY LEAVE .................................................................................................... 21 ARTICLE VII. JURY DUTY LEAVE ................................................................................................ 21 ARTICLE VIII. COMPENSATORY TIME ...................................................................................... 21 ARTICLE IX. PERSONAL LEAVE TIME ........................................................................................ 22 CHAPTER 4. INSURANCE BENEFITS ....................................................................... 24 ARTICLE I. MEDICAL AND DENTAL BENEFITS ........................................................................ 24 ARTICLE II. RETIREE HEALTH BENEFITS ................................................................................ 26 ARTICLE III. LONG TERM DISABILITY ....................................................................................... 28 ARTICLE IV. LIFE INSURANCE ................................................................................................... 29 ARTICLE V. EMPLOYEE ASSISTANCE PROGRAM .................................................................. 29 CHAPTER 5. RETIREMENT. ....................................................................................... 30 ARTICLE I. PUBLIC EMPLOYEES' RETIREMENT SYSTEM ..................................................... 30 ARTICLE II. DEFERRED COMPENSATION ................................................................................ 31 CHAPTER 6. HOURS, SCHEDULES, MEALS ........................................................... 32 ARTICLE I. GENERAL HOURS OF WORK ................................................................................. 32 ARTICLE II. INCLEMENT WEATHER SCHEDULE ..................................................................... 32 ARTICLE III. REST PERIODS ...................................................................................................... 33 ARTICLE IV. SPECIAL DUTY ASSIGNMENTS ........................................................................... 34 ARTICLE V. MEALS ..................................................................................................................... 34 CHAPTER 7. MISCELLANEOUS ISSUES .................................................................. 36 ARTICLE I. UNIFORMS AND SAFETY EQUIPMENT .................................................................. 36 ARTICLE II. UNION SECURITY AND MEMBERSHIP ................................................................. 38 ARTICLE III. CERTIFICATION OF ELIGIBLES AND APPOINTMENTS ..................................... 40 ARTICLE IV. CAUSES FOR DISCIPLINE .................................................................................... 40 ARTICLE V. GRIEVANCES - GENERAL AND PROCEDURES .................................................. 41 ARTICLE VI. MINIMUM SCORES AND COMPUTATIONS .......................................................... 42 ARTICLE VII. CITY MANAGEMENT RIGHTS ............................................................................... 42 ARTICLE VIII. NON-DISCRIMINATION ..................................................................................... 43 ARTICLE IX. ADMINISTRATION OF APPRENTICESHIP PROGRAMS IN ELECTRIC UTILITY DEPARTMENT ................................................................................................... 43 ARTICLE X. UNION ORIENTATION ............................................................................................. 46 ARTICLE XI. EDUCATIONAL REIMBURSEMENT ....................................................................... 46 ARTICLE XII. ALCOHOL AND DRUG POLICY ............................................................................ 46 ARTICLE XIII. UNION RELEASE TIME REIMBURSEMENT ........................................................ 46 APPENDIX “A” “A2” IBEW LOCAL 1245 CLASSES ................................................. 50 APPENDIX “B” TWELVE HOUR SHIFT- SPECIFIC PROVISIONS ............................ 52 APPENDIX “C” SURVEY AGENCIES ......................................................................... 54 APPENDIX “D” BENCHMARK CLASSES .................................................................. 55 APPENDIX “X” MAP .................................................................................................... 56 APPENDIX “Y” DRUG AND ALCOHOL POLICY ........................................................ 57

International Brotherhood of Electrical Workers, Local 1245 – Term of Agreement 05/0104/27/202219-04/30/202622

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Roseville City CouncilMay 11, 2022

Roseville City Council
May 11, 2022