City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00137 1/13/2026
Establishment of a Multi-Year Operating Project for the Sutter Medical Office Remodel (I21006800)
File ID: 2026-00137
Location: 660 J Street, District 4
Recommendation: Adopt a Resolution authorizing the City Manager or designee to: 1) establish a multi-year operating project (MYOP) for the Sutter Medical Office Remodel project (I21006800); and 2) establish revenue and expenditure budgets in the MYOP in the Development Services Fund (Fund 2016) based on the actual amount of fees received.
Contact: Charles Clark, Chief Building Official, (916) 808-3725, [email protected], Community Development Department
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: The use of Multi-Year Operating Projects (MYOPs) provides better accountability and monitors actual Community Development Department costs incurred for the development of the project. As this project will cross multiple fiscal years, staff is requesting authority to establish a MYOP for the Sutter Medical Office Remodel (I21006800) project. This project consists of a 119,000 square foot (sq. ft.), four-story medical office building; two-story parking under building.
Policy Considerations: The recommended action requires City Council approval pursuant to City Council Resolution 2025-0162, Section 13.2; City Council approval is required for the establishment of a MYOP.
As part of Resolution 2015-0123, a policy for the Development Services Fund (Fund 2016) was adopted to ensure the prudent management of development funds for the public and the City management of major development projects, when the building valuation is more than $50.0 million (as adjusted by the Consumer Price Index, or $74 million for Fiscal Year 2025/26).
File ID: 2026-00137 1/13/2026
Economic Impacts: Not applicable.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) [CEQA Guidelines Section 15061 (b) (3); 15378 (b) (2)].
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: This project requires building plan review and inspection services.
The expected project completion date is in 2029. City review and processing fees are based on project valuation, staff hourly rates, and flat fees adopted by resolution and are paid in accordance with established City policies and procedures. Establishing a MYOP to monitor the development will allow staff to administer and manage project expenses related to plan review and permit inspections services over the life of the project.
Financial Considerations: Staff recommends that the City Council authorize the establishment of the Sutter Medical Office Remodel project (I21006800). Budgets will be initially established as $250,000 and then adjusted, based on the actual amount of development review fees received.
Local Business Enterprise (LBE): None.
RESOLUTION NO. 2026-
Adopted by the Sacramento City Council
January 13, 2026
Establishment of a Multi-year Operating Project
for the Sutter Medical Office Remodel (I21006800)
BACKGROUND:
A. The Sutter Medical Office Remodel project is located at 660 J Street in Council District 4.
B. This project requires building plan review and inspection services that will continue through two or more fiscal years. City review and processing fees are based on project valuation, staff hourly rates, and flat fees adopted by resolution and are paid in accordance with established City policies and procedures.
C. The Development Services Fund was established in 1999 (Resolution 99- 077) to account for major plan review and building permit projects, to account for environmental impact review projects, and to stabilize appropriations between business cycles for multi-year projects.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or designee is authorized to establish a multi-year operating project (MYOP) for the Sutter Medical Office Remodel project as I21006800.
Section 2. The City Manager or designee is authorized to establish revenue and expenditure budgets in the Development Services Fund (Fund 2016) in the amount of $250,000 for the Sutter Medical Office Remodel (I21006800). Project budgets will be adjusted based on the actual amount of fees received.