The Treasury Department released an Interim Final Rule on May 17, 2021 and allowed for comments until July 16, 2021. The Final Rule became effective on April 1, 2022. The Final Rule provides a non-exclusive list of allowable expenditures and guidance regarding reporting and usage of funds, including the requirement to obligate funds by December 31, 2024 and expend them by December 31, 2026.
The allowable uses in the Final Rule include the following:
Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic
Provide premium pay for essential workers, offering additional support to those who have and will bear the most significant health risks because of their service in critical infrastructure sectors Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and expand access to broadband internet
Ineligible uses include the following:
Contribution towards federal matching requirements, pension liability, financial reserves, legal settlements, and debt service
Infrastructure not directly addressed in the Rescue Plan Changes that reduce net tax revenue
In April 2021, staff created a webpage where community members could learn more about the Rescue Plan and submit ideas: https://www.myvallejo.com/american-rescue-plan-act. The page has continued to be updated as more information and resources have become available.
After taking direction on outreach from the Council, (3) three ARPA presentations were offered. (2) Two in-person sessions were offered on September 27, 2022 and October 4, 2022 and a virtual presentation was conducted on September 21, 2022. After the presentations, an interactive module was made available for stakeholders to vote on funding allocations. The module elicited over 300 votes and comments asking the City to allocate funding to specific categories. The categories in order of interest include:
1. Water, Sewer, and Broadband Infrastructure
2. Premium Pay for Essential Workers
3. Economic Impacts of the Public Health Emergency
4. Public Health Funding
5. Lost Public Sector Revenue
In addition to gathering feedback from the community, staff used a previous needs assessment in combination with Council direction and concluded with an extensive list totaling over $100 million in projects. To develop recommendations, staff considered community and department needs along with the National League of Cities Principles, City Council Goal-Setting, and the Solano County Community Health Assessment.
Allocation Criteria
Allocate 2nd half of the City's allocation - $12,863,868 Date: December 13, 2022
Subject: AMERICAN RESCUE PLAN ACT (ARPA) STATE AND LOCAL FISCAL RECOVERY
FUNDS (SLFRF) NOTICE TO AMEND THE BUDGET
The second Tranche was received in June 2022. City Staff recommends allocating the second tranche of the funds.
In September 2021, the city Council allocated the first tranche of the City's Coronavirus State and Local Fiscal Recovery Funds to 12 general projects.
Allocate to one-time projects
Allocating funding towards one-time projects limits the City's ongoing liabilities and increases the City's fiscal health. Projects that require
ongoing support from the General Fund are not recommended. Instead, Staff suggests allocating funds to one- time projects to promote fiscal security.
Allocate the funds consistent with the City Council and community member input Staff recommends supporting projects and programs consistent with City Council desires and feedback from community members. Specifically, Staff suggests using Council's vision for a safe, prosperous, and vibrant City as the basis of the allocation categories.
Allocate the funds for projects that will result in a return on investment and community impact Council was clear on their desire to invest in projects that will have a long-term fiscal impact on Vallejo. Staff took this direction into account in formulating the following recommendations.
Recommendations
The recommendation before City Council is to provide funding for the following high-priority areas:
Category Proposed Allocation Anticipated Projects
Economic Development $1.8 M Aid to businesses; Assistance to nonprofits; Attention to the
waterfront; Downtown cleanup;
ADA compliance
Broadband Infrastructure $500 K IIJA grant matching; Buildout of broadband infrastructure
Youth Services $1.55 M Early learning center; School
property maintenance; Preschool
vouchers
Community Responsiveness $2.8 M Brush Trucks; VCAT; Comm ops equipment; Costar software
subscription
City COVID Recovery $2.8 M COVID-19 Delta Variant
Coordination; Grant software;
Temp staff; Retention program
City Expenses $3.41 M Parking fund; HUD replacement
Additional information regarding the proposed projects, including anticipated fiscal impact, can be found in Attachment 1.
Other aid included in the American Rescue Plan
Date: December 13, 2022
Subject: AMERICAN RESCUE PLAN ACT (ARPA) STATE AND LOCAL FISCAL RECOVERY
FUNDS (SLFRF) NOTICE TO AMEND THE BUDGET
This emergency legislative package funds vaccinations, provides immediate direct relief to individuals, and supports struggling communities. There are over 200 sections of relief outlined in the legislation; some notable funds and provisions include:
Stimulus checks for individuals
Expanded unemployment benefits
Emergency rental and homeowner assistance
School emergency relief fund
Low-income water assistance program
Supplemental nutrition assistance program (increase in CalFresh benefits) Shuttered venue relief and
Programs for restaurants and small business owners
FISCAL IMPACT
Staff is providing a notice of intent to amend the FY 2022-23 Expenditure Budget to include the $12,863,868 received through the American Rescue Plan Act.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
ATTACHMENTS
1. Projects - CivicClerk
2. ARPA Overview
CONTACT
Terrance Davis, Assistant City Manager
[email protected]
(707) 648-4301
Category Project (22 Total)
COVID-19 Public Health Response
Purchase of Type 1 Fire Engine
Purchase of Type VI Brush Truck
Comms Ops Equipment
Downtown Projects (CCRC)
COVID-19 Economic Response (General)
Early Learning Center
School Property Maintenance
Preschool Vouchers for Working Parents
New Beds at Christian Help
Center/Transformation Villiage
Mural Program & Downtown Clean-Up
VCAT
Art Walk
Art Grants
Waterfront & Downtown specific update
Community Gift Cards - Vallejo Specific
COVID-19 Economic Response (Public Sector)
COVID-19 Delta Variant Coordination
Grant Software and staff
Costar Software Subscription
Broadband
Broadband Buildout
Government Services (Revenue Loss)
Retention Program (Incentives)
Marina bathrooms ADA
Sacramento Street Apartments
Parking
Allocation Amount Proposed Department
1.7 - Other COVID-19 Public Health Expenses (including
Communications,
Enforcement, Isolation/Quarantine)
875,000 Fire
1.7 - Other COVID-19 Public Health Expenses (including
Communications,
Enforcement, Isolation/Quarantine)
250,000 Fire
1.7 - Other COVID-19 Public Health Expenses (including
Communications,
Enforcement, Isolation/Quarantine)
1,500,000 PD
1.9 - COVID-19 Assistance to Non-Profits 100,000 EDD
2.14 - Education Assistance: Early Learning 450,000 CMO
2.24 - Education Assistance: Aid to High-Poverty Districts 1,000,000 CMO
2.25 - Addressing Educational Disparities: Academic, Social, and Emotional
Services
100,000 CMO
2.34 - Aid to nonprofit organizations 48,000 CMO
2.34 - Aid to nonprofit organizations 340,000 CMO
2.34 - Aid to nonprofit organizations 100,000 CMO
2.35 - Aid to Tourism, Travel, or Hospitality 25,000 EDD
2.35 - Aid to Tourism, Travel, or Hospitality 100,000 EDD
2.35 - Aid to Tourism, Travel, or Hospitality 500,000 CMO
2.37 - Economic Impact Assistance: Other 200,000 EDD
3.1-Public Sector Workforce: Payroll and Benefits for
Public
Health, Public Safety, or Human Services Workers
367,437 HR
HR
3.2-Public Sector Workforce: Rehiring Public Sector Staff 924,609 CMO
Finance
Finance
3.4 - Public Sector Capacity: Effective Service Delivery 50,380 EDD
5.21 - Broadband: Other projects/5.20 - IIJA Grant Match 500,000 IT
6.1 Provision of Government Services 1,500,000 HR
6.1 Provision of Government Services 516,000 PW
6.1 Provision of Government Services 2,154,058 Housing
6.1 Provision of Government Services 1,263,383 PW
OUTLINE
Background
Funding
Overall
Local Allocation
Payment Reporting
Spending Deadline
Guidelines
Allowable Uses
Additional Uses
Ineligible Uses
Additional Funding Considerations
Suggested Allocation of Funds
Data Sources
Recommendations
References & Resources
Expenditure Categories in Reporting Guidelines
AMERICAN RESCUE PLAN ACT
CORONAVIRUS STATE AND LOCAL FISCAL
RECOVERY FUNDS OVERVIEW
1 The City of Vallejo has$25.7 M
of ARPA funds to use towards
recovery efforts.
2 Funds must be obligated by
December 31, 2024 & expended
by December 31, 2026.
3 The City is taking a strategic
and community-oriented
approach in making a
recommendation.
K E Y
H I GH L I GH T S
Direct stimulus payments
Tax credits & Expanded Benefits
Renter & Homeowner Assistance
Homeless Intervention
Utility assistance
Nutrition assistance
Youth and education
Broadband
Small business programs
Shuttered venues
On March 11, 2021, President Biden signed the 1.9 trillion-dollar American Rescue Plan Act (ARPA) of 2021 into law to address the COVID-19 pandemic and the corresponding economic crisis. The American Rescue Plan established the Coronavirus State and Local Fiscal Recovery Funds which provides $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments
The Coronavirus State and Local Fiscal Recovery Funds (herein referred to as “Local Recovery Funds”) are designed to bolster agencies’ responses to the COVID-19 pandemic and its economic impacts by supporting the immediate pandemic response, bringing back jobs, and laying the groundwork for a strong and equitable recovery.
The Local Recovery Funds are just a portion of the rescue plan funds. ARPA has over 200 provisions and includes funding for items including:
The focus of this document is on the Local Recovery Funds. These Funds provide direct and flexible funding to municipalities to meet local needs arising from the pandemic. The following pages describe the Local Recovery Funds guidelines and recommend an approach for the use of the funds.
BACKGROUND
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
States
53.5%
Counties
17.8%
Metropolitan Cities
17.8%
Tribal Governments
5.5%
Local Funds
State governments
$195.3 billion
Counties
$61.5 billion
Metropolitan Cities
(Vallejo's designation)
$61.5 billion
Tribal governments
$20 billion
Non-entitlement Units
of Local Government
$19.5
State of California
$27,017,016,860.10
FUNDING
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control
Replace lost public sector revenue to strengthen support for vital public services and help retain jobs
Support immediate economic stabilization for households and businesses Address systemic public health and economic challenges that have contributed to the inequal impact of the pandemic
The funding outlined below was allocated to deliver the following objectives:
Overall Allocation
Solano County
$86,949,405
City of Vallejo
$25,727,736
The American Rescue Plan Act allocated a total of $350 billion towards the Local Recovery Funds Payment
Direct payments will be issued to metropolitan cities in two tranches. The first payment is issued after the processing of the application and the second following 12 months later.
Reporting
Metropolitan cities must submit an interim report and quarterly Project and Expenditure reports thereafter.
Spending Deadline
Recipients may only use funds to cover costs incurred during the period beginning March 3, 2021 and ending December 31, 2021. Funds must be obligated by December 31, 2024 and expended by December 31, 2026.
The Final Rule, released by the Treasury Department on April 1, 2022, provides a non-exclusive list of allowable expenditures. Categories include intervention for Qualified Census Tracts, public health, direct aid, community and economic development, and infrastructure. Encouraged expenditures include categories such as addressing racial disparities, inequities, and disproportionate harm.
FUNDING (CONTINUED)
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
GUIDELINES
ALLOWABLE USES
SUPPORT
PUBLIC
HEALTH
RESPONSE
REPLACE
PUBLIC
SECTOR
REVENUE
LOSS
WATER,
SEWER,
BROADBAND
INVESTMENTS
ADDRESS
NEGATIVE
ECONOMIC
IMPACTS
PREMIUM
PAY FOR
ESSENTIAL
WORKERS
SERVING THE
HARDEST HIT
COMMUNITIES
& FAMILIES
Support Public Health Response
Services and programs to contain and mitigate the spread of COVID-19 Services to address behavioral healthcare needs exacerbated by the pandemic Payroll and covered benefits for public health personnel responding to pandemic Revenue Loss
Ensure continuity of vital government services
Revenue loss will be calculated at multiple points during the program. Once a shortfall in revenue is identified, recipients have broad latitude to use this funding to support government services up to this amount of lost revenue.
The revenue loss calculation is based on the formula provided in the interim rules. It excludes:
Refunds and other correcting transactions
Proceeds from issuance of debt or the sale of investments Agency or private trust transactions
Revenue generated by utilities
Revenue generated by insurance trusts (e.g., pensions)
A fund or administrative unit established to account for and control a particular activity
Intergovernmental transfers from the Federal government The Final Rule gives recipients broad latitude to use funds for the provision of government services to the extent of reduction in revenue. Government services can include, but are not limited to, maintenance of infrastructure or pay-go spending for
building new infrastructure, including roads; modernization of cybersecurity, including hardware, software, and protection of critical infrastructure; health services; environmental remediation; school or educational services; and the provision of police, fire, and other public safety services.
The funds for the provision of government services cannot be used towards the ineligible items listed in the Final Rule.
ALLOWABLE USES
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
Water, Sewer, and Broadband Infrastructure
Includes improvements to water and sewer infrastructure as aligned with the Environmental Protection Agency project categories for the Clean Water State Revolving Fund and Drinking Water State Revolving Fund
To fund projects that deliver reliable service (100 Mbps download and upload speed) Address Negative Economic Impacts of Pandemic
Delivering assistance to workers and families
Supporting small business
Speeding the recovery of the tourism, travel, and hospitality sectors Rebuilding public sector capacity
Premium Pay for Essential Workers
Funds can be used to provide premium pay directly, or through grants to private employers, to a broad range of essential workers who must be physically present at their jobs. The Final Rule emphasizes the need to prioritize premium pay for lower-income workers.
ALLOWABLE USES (CONTINUED)
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
Serving the Hardest Hit Communities
and Families
This allowable use is specifically for
Qualified Census Tracts – a low-
income area as designated by the
Department of Housing and Urban
Development
Addressing health disparities and the
social determinants of health
Investments in housing and
neighborhoods
Addressing educational disparities
Promoting healthy childhood
environments
Additional uses
Transfers
Recipient governments can transfer funds to a:
Private nonprofit organization
A public benefit corporation involved in the transportation of passengers or cargo A special-purpose unit of State or local government.
No restrictions on local governments prohibiting tax-cuts or local stimulus payments
Recipients of the Local Recovery Funds can use funds towards items outside of explicitly listed categories and examples provided in the rules so long as expenditures can be justified using the following framework.
Framework to Assess Eligibility for Projects and Services
1. Identify the harmful effect of COVID-19 the activity will address.
2. Assess the causal or compounding connection.
3. Assess for disproportionate impact on distressed sectors or populations.
4. Determine how to prove the expense produces the expected outcome.
ALLOWABLE USES (CONTINUED)
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
Federal matching requirements
Pensions
Infrastructure not directly addressed in ARPA
Rainy day funds and financial reserves
Debt service
Legal settlements or judgments
Changes that reduce net tax revenue
INELIGIBLE USES
National League of Cities (NLC) Principles
NLC has recommended the five following principles for municipalities:
Use dedicated grants and programs first whenever possible Assess government operations AND community needs
Prioritize fiscal stability and returning to work
Maintain records and document success
Include your Congressional delegates as part of your success City Council Goal-Setting
The City Council held a two-day goal-setting session in May 2021 following an extensive community outreach effort facilitated by Urban Strategies Council. Council members coalesced around the following components for the City’s updated vision statement:
Vallejo is a SAFE, PROSPEROUS, and VIBRANT city. Council members identified the following primary areas for the FY 2021-2022 goals:
Improve public safety in Vallejo.
Incorporate a focus on youth development throughout Vallejo city government.
Improve Vallejo’s quality of life (cleanliness, roads, food access, recreation, etc.).
Increase housing affordability and address homelessness in Vallejo.
Advance Vallejo’s economic development opportunities/potential.
Department Pandemic Impacts Needs Assessment
City Staff requested a list of projects, programs, and services negatively impacted due to COVID-19 from Department Heads. The final product was a list of 60+ items amounting to $103 million.
The allocation recommendations have been strategically crafted based on various information sources, including:
Continued on the next page
SUGGESTED ALLOCATION OF FUNDS
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
City Council Budget Conversation
During the Fiscal Year (FY) 21-22 budget hearing, Councilmembers expressed interest in increasing to various initiatives and projects including Participatory Budgeting, back-up generators for fire stations, the reopening of Glencover fire station, youth projects, economic development, mental health, childcare, social services, arts, broadband, and code enforcement.
Solano County Community Health Assessment
Solano County Public Health conducted a Community Health Assessment and presented their results to the Board of Supervisors in April 2021. The assessment ranked health needs in the following order:
Economic Security
Housing
Education
Violence and Injury Prevention
Behavioral Health
Healthy Eating/Active Living
Public Input
City Staff offered three (3) community ARPA presentations per direction of the Council. Two (2) in- person sessions were held on September 27, and October 4, and a virtual presentation was conducted on September 21. The virtual presentation is still available for viewing on MyVallejo.com.
An interactive module was made available after each presentation for stakeholders to vote on funding allocations. The module elicited over 300 votes and comments asking the City to allocate funding to specific categories.
SUGGESTED ALLOCATION OF FUNDS
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
Community members have been engaging on MyVallejo.com since April 2021 to provide input and ideas on how the City should allocate ARPA funds. The City received numerous votes and comments from community members suggesting how the City should direct their ARPA expenditures for the second tranche.
Below are the total votes by community members for each category. To find more detailed information, please visit: www.myvallejo.com/arpa
*Please note, not all community ideas qualify as eligible ways to allocate ARPA funds. City staff made best attempt to summarize community ideas into global categories. Some ideas may fall under multiple categories.
COMMUNITY INPUT
Allocate second half of the City's allocation of funds - $12,863,868
RECOMMENDED ALLOCATION CRITE
RIA
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
1 Half of the funds have been delivered to the City with the second half expected to be received in June 2022. City Staff recommends allocating the first tranch of the funds.
Community needs may shift and the allocation of the remaining funds at a later date provides the City Council with the flexibility to adapt to and address future local needs.
Allocate the funds consistent with the City Council and community member input
2 Allocate funds to one-time projects
3 Staff recommends supporting projects and programs that are consistent with City Council desires and feedback from community members. Specifically, staff suggests using Council's vision for a safe, prosperous, and vibrant City as the basis of the allocation categories.
Allocating funding towards one-time projects limits the City's ongoing liabilities and increases the City's fiscal health. Projects that require ongoing support from the General Fund are not recommended. Staff suggests allocating funds to one-time projects to promote fiscal security.
Allocate the funds for projects that will result in a return on investment and significant community impact
4 Staff recommends investing in projects that will provide a community benefit and a return on investment.
RECOMMENDATIONS
ARPA - Coronavirus State & Local Fiscal
Recovery Funds
General Overview
CATEGORY
Youth Services
Broadband Buildout
Revenue Loss
General Economic Response
Public Sector Economic Response
Public Health Response
COST
$1,550,000
$500,000
$1,125,000
$1,979,380
$4,292,046
$3,417,442
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
RECOMMENDATIONS - ESTIMATED ALLOTMENTS
Youth Services - $1,550,000
Scope
This funding will be allocated to opening the early learning center already approved by Council, school property maintenance, and preschool vouchers for working parents.
General & Fiscal Impact
The impact of these funds directed to Vallejo's youth will be long-lasting.
Funds directed toward the early learning center and maintenance to the school property will not be taken out of general funds. Preschool vouchers for working parents will increase the amount of people available for work and reduce the finacial strain of paying for preschool
Broadband Buildout - $500,000
Scope
The funds are to be used for building out broadband infrastructure in the city.
The goal is to extend fiber to the schools, anchor businesses, lateral buildouts for the businesses, fiber to new developments coming to the city. Provide WIFI access in public gathering places like Vallejo waterfront, major city parks, and Vallejo Downtown. Provide free WIFI/broadband access to our disadvantaged communities. This funding may also be used for IIJA grant matches.
General & Fiscal Impact
Additional broadband infrastructure in the City will (1) increase access to Vallejo residents and close the digital divide that exists in our disadvantaged communities (2) serve as an economic development and vitality driver to attract businesses in the city (3) promote broadband and highspeed internet for future development for Mare Island and (4) provide Vallejo residents multiple options for broadband besides Comcast and AT&T.
RECOMMENDATIONS - ESTIMATED ALLOTMENTS
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
Fire Department Equipment Upgrade
Scope
This project will fund the purchase of a Type 1 Fire Engine and a Type VI Brush Truck.
General & Fiscal Impact
The purchase of this equipment will result in improved public safety, shorter response times, and will mitigate future fleet maintenance costs.
Revenue Loss - $3,417,442
Scope
This funding will be directed to deficits incurred during or because of the pandemic. Inculded in this allocation are: rectifying the negative balance of the City's parking fund, and addressing the Sacramento Street Apartment situation.
General & Fiscal Impact
The funding allocated to these deficits will take advantage of this unique one-time opportunity and spare constituents from being responsible for the bill.
Public Health Response - $1,125,000
RECOMMENDATIONS - ESTIMATED ALLOTMENTS
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
General Economic Response -$1,979,380
Downtown & Waterfront Projects & Update
Scope
These funds will go towards a variety of ED efforts including: Downtown & Waterfront facade improvement, Costar software subscription for City research, ADA upgrades to the Marina bathrooms, and providing additional downtown lighting.
General & Fiscal Impact
These strategic investments in the community have significant return in property taxes, and sales taxes and business licenses. Additionally, these projects will keep more businesses in Vallejo, have a strategic targeted message and services to keep businesses and help them expand – all providing significant employment and tax revenue for the city. $1,166,380
Downtown Beautification
Scope
This funding will focus on projects directed towards downtown Vallejo.
Grants will be distributed for art projects and the construction of an art walk in selected downtown locations. Further, the City will create a mural program and conduct a downtown clean-up.
General & Fiscal Impact
These clean-up and COVID prevention efforts will work to creating a safe and vibrant City and could increase economic development opportunities within the City.
$465,000
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
Scope
This project will fund gift card matches, outreach, and administration of the community gift cards which can only be used in Vallejo. In addition, this designation will allow VCAT to continue their operation in Vallejo, and provide new beds at the Christian Help Center/Transformation Villiage.
General & Fiscal Impact
ARPA will provide matching dollars for every purchase within the City of Vallejo. This project will not only bring additional money to designated areas, but will also serve as free advertisement for businesses. Moreover, the funding directed to the Nonprofits will allow them to continue vital operations that will not be subtracted out of the City's general fund. $348,000
RECOMMENDATIONS - ESTIMATED ALLOTMENTS
Small Business & Non Profit Assistance
Public Sector Economic Response - $2,792,046
Grant Software & Staff
Scope
This project covers the costs of a grants management system and two limited- term Administrative Analyst positions.
General & Fiscal Impact
The procurement & implementation of a grants management system and the creation of two limited term Grant Analyst positions increase the City's capacity to identify and pursue grant opportunities and ensure compliance with grant requirements. Incoming grant money will serve as a supplement to the City's general fund.
$924,609
RECOMMENDATIONS - ESTIMATED ALLOTMENTS
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
Scope
These funds will be used to hire a limited term employee to coordinate COVID-19 communications, compliance, monitoring and tracking for City employees.
General & Fiscal Impact
The Human Resources Department has an influx of work due to COVID-19, and is seeing a rise in COVID-19 cases due to the Delta Variant. This limited-term position would provide an opportunity for even more outreach and coordination related to COVID-19, while removing a majority of that extra work from staff, allowing them to focus on their day to day work.
$367,437COVID-19 Delta Variant Coordination
Retention Program $1,500,000
Scope
These funds will be used as incentives and bonuses to essential workers who were vital to the City's opperations during the COVID-19 pandemic.
General & Fiscal Impact
This allocation will allow us to award and retain many of the City's most vital workforce.
Transfer of Communication Opperator's Division $1,500,000 Scope
Funding here will be earmarked to move the dispatcher
division to City Hall.
General & Fiscal Impact
The impact to Vallejo will be immense and immediate in
response time and quality of service.
REFERENCES & RESOURCES
ARPA - Coronavirus State & Local
Fiscal Recovery Funds
Full Text – American Rescue Plan Act
https://www.congress.gov/bill/117th-congress/house-bill/1319/text Interim Rules
https://www.federalregister.gov/documents/2021/05/17/2021-10283/coronavirus-state-and- local-fiscal-recovery-funds
Treasury Compliance and Reporting Guidelines
https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf National League of Cities - COVID-19 Pandemic Response & Relief https://www.nlc.org/covid-19-pandemic-response/#arp
California Department of Finance – Local Recovery Fund Allocations:
https://www.dof.ca.gov/budget/COVID-19/Local_Fiscal_Recovery_Fund_Allocations/ Treasury Department – Local Fiscal Recovery Funds Website & Fact Sheet:
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal- governments/state-and-local-fiscal-recovery-funds
https://home.treasury.gov/system/files/136/SLFRP-Fact-Sheet-FINAL1-508A.pdf League of California Cities – Guide to Local Recovery:
https://www.cacities.org/Policy-Advocacy/Hot-Issues/Guide-to-Local-Recovery Solano County Board of Supervisors Meeting:
35 21-446 Receive an overview of the American Rescue Plan Act of 2021 for local fiscal recovery; and Provide initial direction regarding development of a Recovery Plan utilizing the direct allocation to Solano County of $86,949,405 in Coronavirus State and Local Fiscal Recovery Funds https://solano.granicus.com/MediaPlayer.php?view_id=8&clip_id=1973&meta_id=334601 https://solanocounty.com/depts/bos/meetings/videos.asp
ACTION ITEM 9.B.
DATE: December 13, 2022
TO: Mayor and Members of the City Council
FROM: Gillian Hayes, Assistant City Manager
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN A LEASE WITH THE YOCHA DEHE WINTUN NATION FOR 35 YEARS WITH FOUR 5-YEAR OPTIONAL EXTENSIONS FOR THE PROPERTY LOCATED AT 285 MARE ISLAND WAY, VALLEJO, CA 94590 (APNS 0055 170 040 AND 0055 170 410) AFTER FINDING THE ACTION
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO GUIDELINES SECTION 15301
RECOMMENDATION
Adopt a resolution authorizing the City Manager to sign a lease with the Yocha Dehe Wintun Nation for 35 years with four 5-year optional extensions for the property located at 285 Mare Island Way, Vallejo, California 94590 (APNs 0055 170 040 and 0055 170 410) after finding the action exempt from the California Environmental Quality Act pursuant to Guidelines Section 15301.
REASONS FOR RECOMMENDATION
In order to stimulate economic growth and activate the waterfront, staff recommends that the City Council approve this proposed lease for the property located at 285 Mare Island Way.
BACKGROUND AND DISCUSSION
A key goal for the City is to stimulate development in key target areas, including areas near the Mare Island Causeway, the ferry building, the downtown corridor, and the southern and central waterfront sites. In order to do so, the City must work with existing and prospective tenants to jointly stimulate economic development that achieves mutual goals and objectives for the business community and the residents of the City. The negotiation of this proposed lease helps support these goals of economic stimulation and activation of the central waterfront.
In 2019, the Tribe purchased the existing lease at 285 Mare Island Way – previously known as the Dentist Building, located directly south of the Ferry Building on the waterfront.
On January 14, 2020, the Yocha Dehe Wintun Nation (Tribe), through its representatives, made a presentation to the City Council outlining to the City Council a vision for this location. The preliminary concept for this site was the demolition and replacement of the current building with development of a new facility that would include a cultural center, tasting room, restaurant and associated amenities to serve the area, and support revitalization at the central waterfront.
For over 10 years prior to the proposed lease, the City has been working on the development of the Waterfront History Park (Park) directly south of the proposed lease site. Some Participatory budgeting funds were allocated to get the conceptual design started, but the Park design and construction are estimated to cost approximately $10 Million. To support orderly development of the area, the Tribe is interested in concurrent processing of the Park with its future development proposal. The proposed lease includes future rent offsets in exchange for payments for the design and construction of the Park. This will allow for the Tribe’s conceptual future project and the future City Park to be developed simultaneously. Without the Tribe’s participation, there
Date: December 13, 2022
Subject: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN A LEASE WITH THE YOCHA DEHE WINTUN NATION FOR 35 YEARS WITH FOUR 5-YEAR OPTIONAL EXTENSIONS FOR THE PROPERTY LOCATED AT 285 MARE ISLAND WAY, VALLEJO, CA 94590 (APNS 0055 170 040 AND 0055 170 410) AFTER FINDING
THE ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO GUIDELINES SECTION 15301
is no identifiable funding source to fully design and develop the Park.
On November 16, 2021, the City Council and the Tribal Council approved a Letter of Intent (LOI) that contained future lease agreement details. The current draft lease contains all of the terms identified within the prior LOI including the points outlined above.
Key provisions of the proposed Lease include:
A 35-year lease term with four 5-year extension options for a total of 55 years. Fair market rent based on the appraisal is approximately $114,000 per year. The agreed upon rent will reflect the amount considered in the Letter of Intent of $71,000 per year in consideration of the Park contributions. If the Tribe does not improve the Park, the lease reverts to full fair market rent value. In return for paying Park design and development costs up to $10 Million, the Tribe will receive rent offsets in the actual amount contributed to the Park up to $10 Million over the life of the lease. The ability of the City to resume control of the site if Governmental Uses for the site become a priority. This would include a buy back of the depreciation of the improvements installed by the Tribe of the site, if any.
Park-naming approval in partnership with the City. Both the City Council and the Tribal Council will hold approval authority on the overall Waterfront History Park name and Patwin translation name, as well as the internal park phased area names. Signage throughout the Park will contain both Patwin and English translations.
The Park will retain the elements of the overall history of the waterfront from first Native American use through today, including all cultures that have participated on the waterfront throughout history. The City and the Tribe will provide a reciprocal use of event space for up to 6 events per year. The Tribe will maintain the surrounding common areas including sidewalks and landscaping in lieu of paying the Common Area Maintenance fees to the City for City maintenance. The Tribe will submit entitlement applications within 12 months of the executed lease document. If the entitlements being applied for are approved by the City, the parties will negotiate a license agreement to provide the Tribe up to 200 parking spaces throughout City parking areas for special events.
The Tribe will have Right of First Offer and Right of First Refusal for the site.
Next Steps
If City Council approves the proposed lease, it will be executed and City staff will work with the Tribe’s staff to execute a Maintenance Agreement within 60 days for the premises and surrounding common areas. Staff is requesting approval to make minor modifications to the lease language since Tribal Council is hearing the proposed lease on the same night as City Council and there may be some minor edits necessary prior to execution. This staff delegation would not include any major lease deal points.
Entitlements are expected to be submitted within 1 year of the executed Lease. Park entitlements will also be submitted on a similar timeline. CEQA analysis will be conducted for both projects at this time.
The public and the City Council will have multiple opportunities to engage on both future projects through public meetings and entitlement hearings. Entitlement applications for the Tribe’s proposal and the City’s Park Date: December 13, 2022
Subject: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN A LEASE WITH THE YOCHA DEHE WINTUN NATION FOR 35 YEARS WITH FOUR 5-YEAR OPTIONAL EXTENSIONS FOR THE PROPERTY LOCATED AT 285 MARE ISLAND WAY, VALLEJO, CA 94590 (APNS 0055 170 040 AND 0055 170 410) AFTER FINDING
THE ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO GUIDELINES SECTION 15301
will be considered by the Planning Commission, Design Review Board, and City Council. If approved, a parking License Agreement will be executed. After all entitlement approvals and approval of building permits, construction will commence.
FISCAL IMPACT
The fiscal impact of the proposed lease will not result in General Fund expenditures for the duration of the lease. Future lease revenue is dependent upon the number and amount of rent offsets, if any.
ENVIRONMENTAL REVIEW
This action is exempt from CEQA according to the CEQA Guidelines Section 15301 Existing Facilities. The existing building is contemplated under the lease. At the time the Revised Project is submitted for entitlements, further appropriate environmental review will be conducted.
ATTACHMENTS
1. Appraisal of 285 Mare Island Way
2. Final reso stamped
3. 285 Mare Island Wy Final Lease 12.9.22
CONTACT
Gillian Hayes, Assistant City Manager (707) 648-4163
[email protected]
RESOLUTION NO.
AUTHORIZING THE CITY MANAGER TO SIGN LEASE AGREEMENT WITH THE YOCHA DEHE WINTUN NATION AT 285 MARE ISLAND WAY, AND FINDING THE
PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO CEQA GUIDELINES SECTION 15301
WHEREAS, the City of Vallejo leases the existing office building located at 285 Mare Island Way to the Yocha Dehe Wintun Nation, which lease is expiring as of October 21, 2024; and WHEREAS, the Yocha Dehe Wintun Nation began discussions with City staff regarding a long- term lease and development proposal following their acquisition of the lease in 2019 and made a presentation to the City Council on January 14, 2020 to share their vision for the site; and WHEREAS, on November 16, 2021, the City Council authorized the City Manager to sign a Letter of Intent with the Yocha Dehe Wintun Nation to negotiate a lease extension at 285 Mare Island Way; and
WHEREAS, City staff negotiated terms of the lease agreement to derive at long-term lease of up to fifty-five years at a fair market rate of approximately $9,253 annually until Certificate of Occupancy is approved at the Rent Adjustment Date, at which time the lease increases to $72,288 annually; and
WHEREAS, the lease agreement sets forth a framework for potential appropriate uses of the site, rent offsets for up to $10 million in contribution to the design and development of a proposed Waterfront Historic Park, maintenance obligations, and other stipulations; and WHEREAS, the City has been working on the development of the Waterfront History Park and the current design and construction implementation is estimated to cost approximately $10 million; WHEREAS, the Yocha Dehe Wintun Nation has proposed to make a significant contribution towards the development of the Park; and
WHEREAS, one of the City of Vallejo’s primary goals is to stimulate development in key target areas, such as the Mare Island Causeway, the ferry building, the downtown corridor, and the southern and central waterfront sites, and this project supports such goals.
NOW, THEREFORE, BE IT RESOLVED that the City Council finds that approval of the Lease Agreement with the Yocha Dehe Wintun Nation at Sekha Hills, 285 Mare Island Way, is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 because it involves a lease of an existing public structure.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to sign a Lease Agreement with the Yocha Dehe Winton Nation at 285 Mare Island Way and along with the City Attorney to make non-substantial edits to the draft lease as needed.
BE IT FURTHER RESOLVED that all provisions of this Resolution are effective immediately upon adoption.
Adopted by the City Council of the City of Vallejo at a regular meeting held on December 13, 2022 with the following vote:
AYES:
NOES: None
ABSENT: None
ABSTAIN: None
______________________________________
ROBERT H. MCCONNELL, MAYOR
ATTEST:
_________________________________________
DAWN G. ABRAHAMSON, CITY CLERK
NO FEE RECORDING PURSUANT
TO GOVERNMENT CODE §27383
RECORDING REQUESTED BY AND
AFTER RECORDATION, MAIL TO:
City of Vallejo
Attn: City Clerk
555 Santa Clara Street
Vallejo, CA 94590
APNs 0055-170-400; 0055-170-410
LEASE
By and Between
THE CITY OF VALLEJO
and
YOCHA DEHE WINTUN NATION
285 Mare Island Way
Vallejo, California 94590
LEASE
Section 1. Definitions
Section 2. Premises
Section 3. Term and Termination
Section 4. Rent
Section 5. Use
Section 6. Right of First Offer
Section 7. Right of First Refusal
Section 8. Common Areas
Section 9. Park Name and Design
Section 10. Maintenance and Repairs
Section 11. Lessee Improvements
Section 12. Taxes
Section 13. Parking
Section 14. Services and Utilities
Section 15. Signage Requirements
Section 16. Lessee’s Contributions
Section 17. Use of Other Party’s Facilities
Section 18. Assignment and Subletting
Section 19. Financing
Section 20. Insurance
Section 21. Indemnification
Section 22. Holding Over
Section 23. Surrender Conditions
Section 24. Non-Discrimination
Section 25. Force Majeure
Section 26. Legal Effect
Section 27. Defaults and Remedies
Section 28. Notices
Section 29. Waiver
Section 30. Governing Law
Section 31. Entire Agreement
Section 32. Inspection By Certified Access Specialist
Section 33. Prevailing Wages
Section 34. City Municipal Powers
Section 35. Estoppel
Section 36. Severability
Section 37. Successors and Assigns
Section 38. Condemnation
Exhibits
Exhibit A. Premises
Exhibit B. Parking Area
Exhibit C. Common Areas
Exhibit D. Depreciation
Exhibit E. Prior Lease Documents
1 LEASE AGREEMENT
285 Mare Island Way
APNs 0055-170-400 & 0055-170-410
THIS LEASE AGREEMENT (" Lease") is entered into as of ________________, 2022 (the “Effective Date”), by and between the City of Vallejo, a municipal corporation (the "Lessor"), and Yocha Dehe Wintun Nation, a federally recognized tribal government (the "Lessee"), (hereinafter, collectively the "Parties") with respect to the following facts:
RECITALS
A. City is the owner of that certain re al property situated in the City of Vallejo, State of California, County of Solano (as more particularly described in Exhibit A, the “Premises); and
B. On October 21, 1974, City and Warren Martin Adams, Glenda Dell Adams, Charles Edward Pickett and Margalee Pickett (“ Original Lessee ”) entered into that certain Lease of Land for Private Redevelopment (as more particularly described in Exhibit E, the “Prior Lease”). Pursuant to the Prio r Lease, City Leased to Original Lessee a portion of the Premises (“Original Lease Premises”) for the purposes of redevelopment and urban renewal; and
C. Pursuant to the Prior Lease, Original Lessee was required to redevelop existing improvements and construct new improvements resulting in the construction/rehabilitation of an approximately 3,666 square foot building on the Original Lease Premises (“Original Office Building”); and
D. As of August 8, 2019, Lessee succeeded to the interest of Or iginal Lessee pursuant to the Prior Lease. The Prior Lease expires on October 21, 2024; and
E. On January 14, 2020, Lessee and its representatives made a presentation to the City Council of the City of Vallejo expressing preliminary interest in the concept of replacing the Original Office Building with a new cultural center, restaurant, and tasting room that would serve the area and contribute to the revitalization of the waterfront; and
F. Lessor has been working to develop the Waterfront History Park adja cent to the Premises (“Waterfront Park Rehabilitation”), which is estimated to cost approximately $10 million dollars, but grant funding and community fundraising has been slow; and
G. Lessee has offered to contribute up to $10 million dolla rs to the design and construction of the Waterfront Park Rehabilitation in exchange for certain concessions from the Lessor pursuant to a new long term lease of the Premises, provided that Lessee elects to move forward with its development project on the Premises as described herein; and
H. Lessor and the Lessee now desire to enter into this Lease for the Premises, pursuant to the terms and conditions set forth herein.
NOW, THEREFORE the Parties hereto agree as follows:
SECTION 1.
2 DEFINITIONS
Section 1.1 Definitions.
The following terms shall have the following meanings in this Lease:
“City” shall mean the City of Vallejo in its governmental capacity; “Common Area” shall mean the sidewalks and improvements immediately surrounding the Premises as described in Exhibit C, attached hereto and incorporated herein by reference; “Demolition Permit” shall mean all Entitlements required for the demolition of the Original Office Building and other improvements existing on the Premises as of the Effective Date; “Due Diligence Period” shall mean the one hundred-twenty (120)-day period following the Effective Date, subject to extension as provided in Section 3.3, during which Lessee shall be entitled to conduct studies to determine whether it is satisfied in all respects with the Premises; “Entitlements” shall mean all land use permits, entitlements, permissions, consents, and related environmental review pursuant to the Californi a Environmental Quality Act (CEQA), and the National Environmental Policy Act (NEPA), as applicable , including but not limited to permits or entitlements that may be required by the City, the Bay Conservation and Development Commission (BCDC), the US Army Corps of Engineers, the US Fish and Wildlife Service, California Fish and Wildlife, the Regional Water Quality Control Board, and the State Lands Commission;
“Event of Default” shall have the meaning set forth in Section 27 below; “Event Parking” shall have the meaning as set forth in Section 13 below; “Go Date” shall mean the business day following the date, if any, on which the last of the following have occurred: (i) Lessee has obtained the Demolition Permit, all Lessee Land Use Entitlements and building permits related thereto , the executed License Agreement and the executed Maintenance Agreement, in each case in form and substance acceptable to Lessee in its sole discretion, and the prior consent of GVRD (which may be by way of a cultural easement) for Lessee to use the Waterfront History Park in connection with Section 17.2, (ii) the final Depreciation Schedule has been attached as Exhibit D hereto by mutual agreement of the Parties, (iii) Lessee is satisfied in its sole discretion with Project Plan and the plan and design for the Waterfront Park Rehabilitation as complementary with the design and feel of the Lessee Improvements, and with the City’s program for ensuring the maintenance and upkeep of the Park; (iv) the City has approved names for the Park and components thereof that are acceptable to Lessee in its sole discretion; (v) the City has provided all approvals contemplated herein necessary for the Lessee to complete the Lessee Improvements, and (vi) Lessee is otherwise satisfied that the City has taken no steps to undermine recognition of the uniquely significant historical connection between the Patwin people and the land now within the City, provided that the Lessee shall make the determination regarding whether it is so satisfied with regard to this clause (vi) no later than five (5) business days after last to occur of (i), (ii), (iii), (iv), or (v);
“Governmental Purpose” means any non-commercial activity or program carried out by a governmental agency or affiliate in its official capacity for the benefit of the public; “GVRD” means Greater Vallejo Recreation District;
3 “Hazardous Materials” means any and all materials, substances and wastes that are or become regulated by any governmental authority that pose a material threat to the environment, including (a) any materials, substances or wastes defined as a “hazardous waste”, “hazardous material”, “hazardous substance”, “extremely hazardous waste,” “restricted hazardous waste,” “toxic substance” or “toxic waste” under any Laws, (b) petroleum products and by -products, (c) asbestos, (d) polychlorinated biphenyls, or (e) radioactive materials;
“Lease Term” shall mean an initial term of thirty -five (35) years together with any extension thereof in accordance with Section 3.4 below;
“Lessee” shall mean the Yocha Dehe Wintun Nation and its permitted successors and assigns; “Lessee Improvements” shall mean those improvements to the Premises that may be proposed by Lessee and approved by the City Council of the City, pursuant to in Section 11 below; “Lessee Land Use Entitlements” shall mean all discretionary land use entitlements required in connection with the development of the Lessee Improvements;
“Lessor” shall mean the City of Vallejo in its proprietary capacity; “License Agreement” shall mean that certain license for the Parking Area and the “Event Parking” as set forth in Section 13 below. The License Agreement shall be coterminous with this Lease and shall bind the Parties and their successors and assigns;
“Maintenance Agreement” shall mean that certain Maintenance Agreement as set forth in Section 8 below.
The Maintenance Agreement shall be coterminous with this Lease and shall bind the Parties and their successors and assigns;
“Negotiation Period” shall have the meaning set forth in Section 6 below; “Original Building Remaining Value” shall mean an amount equal to the remaining unamortized portion of the sum of Two Hundred Thirty Thousand Dollars ($230,000.00) , minus any portion of such val ue as Lessee has previously paid to Lessor , as amortized on a fifteen (15) year straight line basis. The Parties acknowledge that the appraised value of the Original Office Building as of the Effective Date is Two Hundred Thirty Thousand Dollars ($230,000.00);
“Original Office Building” have the same meaning as set forth in Recital C; “Park” shall mean the Waterfront History Park;
“Parking Area” shall mean the parking area located on APN 0055 170 008, and depicted in Exhibit B, attached hereto and incorporated herein by reference;
“Premises” shall mean that certain real property located generally at 285 Mare Island Way in Vallejo, California, County of Solano, comprising the parcels identified as Assessor’s Parcel Nos. 0055 170 400 and 0055 170 041 and as depicted on Exhibit A, attached hereto and incorporated herein by reference, subject to any and all easements, covenants, and restrictions of record affecting the Premises. The Premises do not include any portion of the parking area depicted as APN 0055 170 008; “Prior Lease” shall have the meaning set forth in Recital B; “Rent Adjustment Date” shall mean the date Lessee receives a Certificate of Occupancy for the Lessee Improvements; and
4 “Waterfront Park Rehabilitation” shall have the meaning set forth in Recital F.
SECTION 2
PREMISES
2.1 Lessor leases the Premises to the Lessee, and the Lessee leases the Premises from the Lessor, pursuant to the terms of this Lease.
2.2 The Partie s shall cause this Lease to be recorded against the Premises in the Official Records of the County of Solano.
2.3 As of the Effective Date, subject to Lessor’s reversionary interest below, Lessor hereby remises, releases, and quitclaims to Lessee all of Lessor’s right, title, and interest in and to the improvements on the Premises including without limita tion the Original Office Building. All of such existing, and hereafter constructed or installed, improvements upon the Premises shall, at all times from the Effective Date until the expiration of the Lease Term, be and remain real property, with title thereto being vested in Lessee, for tax and all other purposes; provided, however, that upon the expiration, or earlier termination of this Lease for whatever cause, title to any such improvements shall vest in Lessor.
SECTION 3
TERM AND TERMINATION
3.1 The Lease Term shall commence on the Effective Date and shall continue for thirty -five (35) years unless extended or earlier terminated in accordance with the terms hereof.
3.2 The Prior Lease is hereby terminated as of the Effective Date. The Parties acknowledge that rent in the approximate amount of $ 28,123.08 has been permitted to accrue under the terms of the Prior Lease pending negotiation and documentation of this Lease (such unpaid rent, prorated through the Effective Date, the “Unpaid Prior Rent ”). Such Unpaid Prior Rent shall be an obligation of Lessee under this Lease, to be paid and credited as set forth herein.
Except for the foregoing, each Pa rty hereby releases the other from any further duties, liabilities or obligations, known or unknown, under the Prior Lease.
3.3 During the Due Diligence Period, Lessee shall be entitled to conduct studies to determine whether it is satisfied in all respects with the Premises, including the physical (including the environmental) condition of the Premises, the condition of title to the Premises and its suitability for Lessee’s use and development. If Lessee is not satisfied with the results of its due diligence investigation, it may elect, prior to the expiration of the Due Diligence Period, to terminate this Lease. Lessee’s failure to terminate this Lease during the Due Diligence Period shall not be deemed to waive Lessee’s approval rights as described elsewhere in this Lease. The Due Diligence Period may be extended up to an additional sixty (60) days (or a longer period) upon mutual agreement of the Parties.
3.4 Lessee shall have the right upon written notice to Lessor, delivered at least ninety (90) days prior to the then -pending expiration of the Lease Term , as determined in Lessee’s sole and absolute discretion, to extend the Lease Term for four (4) successive five (5) year periods on the same terms and conditions as set forth herein, provided that Lessee is not otherwise in default under the Lease. 5 3.5 At any time following the tenth (10th) anniversary of the Effective Date, Lessee shall have the right to terminate the Lease on twelve (12) months’ written notice. In the event that Lessee terminates the Lease prior to the end of the Lease Term, Lessee shall surrender the Premises and all improvements located thereon to Lessor in reasonable order, condition and repair, subject to reasonable wear and tear and casualty, as set forth in Section 23 hereof.
3.6 If at any time, this Lease is terminated by either Party for any reason (other than as a result of a casualty) and at the time of termination, Lessee has demolished the existing Original Office Building, but has not yet constructed Lessee Improvements, Lessee shall pay Lessor the Original Building Remaining Value as of the termination date.
3.7 Notwithstanding the foregoing, this Lease shall be terminable by Lessor (i) upon the occurrence of an Event of Default as provid ed in Section 27 hereof, or (ii) upon one hundred and eighty (180) days written notice if the Premises are needed for City Governmental Purposes, as determined by the City Council
in its reasonable discretion, or (iii) as otherwise expressly provided in this Lease.
3.8 In the event this Lease is terminated for City Governmental Purposes as provided in Section
3.7(ii), immediately above, the Parties may elect to consider in good faith (but will not be bound to accept) alternatives that would permit Lessee to continue to use a portion of the Premises and/or Parking Area for the purposes contemplated herein, if possible, on terms and conditions that are acceptable to both parties.
3.9 In addition, in the event the entire Lease is terminated by Lessor at any time prior to the end of the Lease Term hereof and any Term extension authorized by Section 3.4 hereof for any reason other than an uncured Event of Default by Lessee under the terms of the Lease, Lessor shall reimburse Lessee for the unamortized value of Lessee’s actual out-of-pocket investment in the Lessee Improvements, including the hard costs associated with the Lessee Improvements and, to the extent paid for or reimbursed by Lessee or its affiliates, the hard and soft costs associated with the Waterfront Park Rehabilitation, all as further identified in the Depreciation Schedule set forth to Exhibit D to be attached and incorporated as hereinafter set forth (“Depreciation Schedule”) (the Parties agreeing that amortization shall commence on the date of completion of the Lessee Improvements and shall be calculated on a fifteen (15) year straight line basis).
Such reimbursement shall exclude all of the following: (1) all Rent actually offset to date as set forth in Section 4.2 hereof; (2) if Section 3.6 is applicable, the Original Building Remaining Value ; (3) all outstanding Unpaid Prior Rent; and (4) for absence of doubt (but without duplication), the depreciation associated with Lessee Improvements and the Waterfront Park Rehabilitation improvements paid for by the Lessee as set forth on the Depreciation Schedule. Following the Effective Date, the Parties shall negotiate the Depreciation Schedule in good faith and attach the same as Exhibit D hereto when agreed to by the Parties.
3.10 All personal property of Lessee which does not constitute fixtures (and any fixtures that the Parties otherwise agree shall remain personal property notwithstandi ng their attachment to the Premises) may be removed by and shall remain the property of the Lessee. Lessee shall repair any damage caused by such removal and shall surrender the Premises and all improvements located thereon to Lessor in reasonable order, condition and repair, subject to reasonable wear and tear and casualty, as set forth in Section 23 hereof.
3.11 The Lease shall be terminable by Lessee (i) upon the occurrence of an Event of Default on the part of Lessor as provided in Section 27 below, or (ii) as otherwise expressly provided in this Lease.
SECTION 4
6 RENT
4.1 Rent Schedule. Until the Rent Adjustment Date, Lessee shall pay base rent, triple net, at the rate of $771.15 per month, which amount is the prorated amount of base rent which was payable on an annual basis under the Prior Lease. From and after the Rent Adjustment Date, Lessee shall pay annual base rent in the amount of $72,288.00 ($1.80 per square foot times 40,160 square feet) triple net (which amount represents the fair market rental value of the Premises). Such rental rate is not subject to adjustment due to any inaccuracy in measurement of the Premises. The base rent amount shall increase annually based upon the increase in the Consumer Price Index for All Urban Consumers (CPI -U) for the San Francisco/Oakland/Hayward Area for the remainder of the Lease Term (including any approved options to extend) which in no event shall be less than a ten percent (10%) net increase every ten (10) years.
4.2 Rent Offsets.
a. Lessee shall be entitled to offset against the total rent payable by Lessee under the Lease during the Term, including base rent and Unpaid Prior Rent, up to the total of all rent due during the Term hereof and any extensions permitted herein, an amount equal to the total cost of actual construction of the Lessee Improvements together with the total funds contributed by Lessee for the Waterfront Park Rehabilitation.
b. Further, to the extent Lessee pays, with the consent of the City, for ongoing maintenance and repair of City-owned improvements beyond those addressed in the Maintenance Agreement, Lessee shall, in addition to the offset described in Section 4.2 (a) above, be permitted to offset the reasonable documented costs and expenses, as confirmed by the City, incurred by Lessee in connection therewith against Lessee’s rent due pursuant to Section 4.1.
c. At the end of every fiscal year, on June 1 for July 1, the Parties shall reconcile the total rent paid hereunder with the total amount contributed toward the Waterfront Rehabilitation Park Project, such that the total amount contributed to the P roject is credited against as much rent (whether previously paid or not) as possible. Within sixty (60) days of the end of every fiscal year, Lessor shall refund to Lessee any such amount of rent which was previously paid by Lessee but offset during the reconciliation. Lessee may elect instead to reallocate any such refund as a contribution to the Waterfront Rehabilitation Park Project in connection with Section 16.1.
d. In the event that Lessee determines not to proceed with the Waterfront Rehabilitation Park Project contributions, the fair market rent based n the April 2022 appraisal shall be due at Certificate of Occupancy. and shall increase annually based upon the increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco/Oakland/Hayward Area for the remainder of the Lease Term (including any approved options to extend) which in no event shall be less than a ten percent (10%) net increase every ten (10) years.
4.3 Security Deposit.
7 Lessee shall not be required to pay a security deposit.
SECTION 5
USE
5. Lessee has expressed interest in and, during the Due Diligence Period and prior to the Go Date, will evaluate the feasibility of, design, development, construction, and operation of a tasting room, cultural center, restaurant, and associated uses; however, plans for these potential uses have not yet developed sufficiently to render meaningful environmental information available for review, and other uses and improvements may later be contemplated or proposed. Lessee may use the Premises for lawful purposes other than those referenced in this paragraph, subject to the prior written approval by the City in its sole discretion. Further, any and all use of the Premises is subject to applicable law, including but not limited to: the requirements of Lessee Land Use Entitlements, CEQA, NEPA, The General Plan, the Zoning Ordinance, and the California State Lands Commission Public Trust Doctrine.
SECTION 6
RIGHT OF FIRST OFFER
6. To the extent permitted by law, Lessee shall have a right of first offer (“ ROFO”) during the Lease Term with respect to any proposed sale of City’s fee interest in the Premises to the extent that any Transfer of the Premises is lawfully permitted pursuant to applicable law, including but not limited to, the Public Trust. In the event that City determines to lawf ully sell the Premises at any time during the Lease Term hereof, City will provide written notice of Intent to Sell the Premises to Lessee and Lessee shall have sixty (60) calendar days from said notification to notify Lessor, in writing, of Lessee’s desire to purchase the Premises. Following Lessor’s receipt of such notice, Lessor and Lessee shall use commercially reasonable efforts to enter into a Purchase and Sale Agreement with City on terms acceptable to City and Lessee. In the event that the Lessee and City do not reach an agreement on the terms and conditions of such Purchase and Sale Agreement within ninety (90) calendar days following such notice from Lessee (“Negotiation Period”), or if escrow does not close within ninety (90) calendar days of the full execution of the Purchase and Sale Agreement, City will be free to sell the Premises to any other purchaser.
The Parties may extend the Negotiation Period up to an additional ninety (90) days by mutual agreement, in writing. Any such sale to any other purchaser shall be subject to the terms and conditions of this Lease.
SECTION 7
RIGHT OF FIRST REFUSAL
7.1 If during the Lease Term, Lessor receives a lawful offer to purchase the Premises and it intends to accept the offer, Lessor shall notify Less ee, in writing, of its intent to sell the Premises. Said notice shall include a written copy of any offer to purchase the Premises, provided that Lessee shall keep such offer confidential and not disclose the same to third parties, except to its legal counsel and its financial advisers and as required by applicable law or court order. Lessee shall have sixty (60) calendar days from said notification to notify Lessor, in writing of Lessee’s intent to purchase the Premises on the same terms and conditions as the offer identified in the notice. If Lessee so notifies Lessor of its intent to purchase the Premises, Lessee will be bound to purchase the Premises, and Lessor will be bound to sell the Premises, strictly in accordance with the terms of the offer, as supplemented by reasonable and customary terms and conditions.
8 7.2 Lessee shall not have the right of first opportunity to purchase as described herein if, at the time Lessor receives an offer to purchase the Premises: (i) Lessee is in default under the Terms of this Lease beyond applicable notice and cure periods , or (ii) Lessee has assigned this Lease to a third party not affiliated with the originally named Lessee.
7.3 The rights granted to Lessee in this section are personal and may not be assigned by Lessee in connection with an assignment of this Lease or otherwise other than to a Permitted Transferee, as defined in Section 18. Any attempted assignment of Lessee’s rights pursuant to this section shall be of no effect and will immediately terminate the rights granted by this section.
7.4 If Lessee does not elect to purchase the Premises as set forth in Section 7.1 and thereafter Lessor seeks to enter into a purchase agreement reflecting a purchase price that is less than 95% of the purchase price r eflected in Lessor’s notice, then Lessor shall be required to offer such changed terms to Lessee in accordance with Section 7.1.
SECTION 8
COMMON AREAS
8. City and Lessee shall negotiate in good faith a Maintenance Agreement (the “Maintenance Agreement”) pursuant to which Lessee shall, from and after the Rent Adjustment Date, be entitled to maintain and repair, and be responsible for the maintenance and repair of the Common Area to a standard jointly determined by the Parties, consistent with Section 10 hereof. Lessee shall not be entitled to a rent offset for any costs or expenses associated with any such maintenance and repair. In the event such Maintenance Agreement is not executed by the Go Date (and the Go Date has occurred because Lessee has waived its receipt of an executed Maintenance Agreement as a condition precedent to the Go Date) , Lessee shall be required to pay Common Area Maintenance Fees to the City calculated by the Cit y using standard methodology applicable to such Common Area Maintenance Fees for the Common Area.
SECTION 9
PARK NAME AND DESIGN
9. (a) City shall consult with Lessee regarding the design and development of the Park and its various design components. F inal approval of such design and development shall be at the sole discretion of the City in accordance with applicable law, including City laws, rules, regulations, and policies.
(b) The Park shall have both an English name and a Patwin name. Additionally, Lessee shall have the right to suggest Patwin names for the various design components of the Park. Such names shall be subject to the approval of the City in accordance with existing law, including City laws, rules, regulations, and policies.
(c) City a cknowledges that Lessee’s ability to participate in the design and development of the Park and to name the various design component areas of the Park is a meaningful part of the consideration supporting Lessee’s willingness to fund the Park’s design and de velopment.
Accordingly, Lessee shall have the right to terminate the Lease if such names are not approved by Lessee’s Tribal Council. The Parties also shall also use their best efforts to include Patwin language translations of English language (and vice versa) on signs in and around the Park. 9 SECTION 10
MAINTENANCE AND REPAIRS
10.1 Lessee acknowledges and represents (a) that Lessee takes the Premises in its “as is ” condition without representation or warranty by City, (b) that Lessee is en tering into this Lease solely in reliance on Lessee ’s own investigation, and that no other representations or warranties of any kind whatsoever, express or implied, have been made by the City or City ’s agents, officers, employees or representatives, except those expressly set forth in this Lease, (c) that Lessee has had the opportunity to review, to the extent it deems necessary all grants, loans, leases, stipulations and other agreements between the City and State Lands, the State and/or Division of Boating and Waterways, if any and to the extent provided to Lessee by City, as well as all applicable provisions of the California Harbors and Navigation Code, and all other federal, state and local laws, rules and regulations pertinent to the Premises, (d) that Lessee has had ample opportunity to access all parts of the Premises to inspect and ascertain, to its entire satisfaction, whether the Prem ises is suitable to its needs and can be improved, used, maintained and operated in accordance with this Lease, (e) that Lessee has had ample access to review all reports, investigations, studies, evaluations and all other documents regarding the Premises and the Property, to the extent publicly available, including but not limited to, the City’s files pertaining to the Premises, environmental studies, bathymetrical depth reports, title surveys, preliminary title reports, and other reports and documents Lessee deemed necessary to its decision to enter this Lease, and (f) that Lessee is entirely satisfied, except as otherwise expressly provided in this Lease, as to the Premises’ physical condition, environmental condition, title, and all other aspects of the Premises and each component thereof, including but not limited to, investigation of the presence of any Hazardous Materials at and surrounding the Premises; determination of suitability of the Premises for the uses contemplated herein; investigation of conditions, at, of and surrounding the Premises, including, but not limited to, geotechnical, soils, drainage, flooding, subsidence, erosion, stormwater, earthquake, fault rupture, ground shaking, liquefaction, seiche, tsunami, sea level rise, unstable soils, expansive soils, effect of tides (including, but not limited to King Tide conditions), parking, access, lighting, and utility availability; investigation and determination of the costs and other financial considerations associated with this Lease and the uses and improvements contemplated herein and/or the fitness of the Premises or any improvements located thereon, for Lessee ’s intended use, and/or the compliance of the Premises and/or any improvements located thereon with any applicable laws, rules and regulations, including, without limitation, the Am ericans With Disabilities Act of 1990. Lessee warrants and represents that it is a sophisticated owner of real property, and is familiar and experienced with the requirements for the development, management, financing, operation and ownership of same. Notwithstanding the foregoing, nothing in this Section 10.1 shall be construed to limit Lessee’s rights to terminate this Lease for any reason (including without limitation its dissatisfaction with any of the matters described above) in its sole discretion during to the Due Diligence Period or otherwise pursuant to Section 11.6.
10 10.2 Lessee acknowledges that City has never controlled the improvements existing on the Premises that were the subject of the Prior Lease an d was not responsible for the maintenance, repair, or replacement of any such improvements. Lessee specifically acknowledges that except as otherwise may be expressly provided in this Lease, the Lessor has made no representations concerning the condition of the Premises or any improvements located thereon, including, without limitation, the presence of any Hazardous Materials at and surrounding the Premises; conditions, at, of and surrounding the Premises, including, but not limited to, geotechnical, soils, drainage, flooding, subsidence, erosion, stormwater, earthquake, f ault rupture, ground shaking, liquefaction, seiche, tsunami, sea level rise, unstable soils, expansive soils, effect of tides (including, but not limited to King Tide conditions), parking, access, lighting, and utility availability; the costs and other financial considerations associated with the Lease and the uses and improvements contemplated and/or the fitness of the Premises or any improvements located thereon, for Lessee’s intended use, and/or the compliance of the Premises and/or any improvements located thereon with any applicable laws, including, without limitation, the Americans With Disabilities Act of 1990, and Lessee expressly waives any duty which Lessor might have to make any disclosures in connection with the subject matter of this Section. Lessee further agrees that, in the event Lessee leases or assigns its interest in this Lease, Lessee shall protect, indemnify, defend and hold harmless the City for, from and against any matters which arise as a result of Lessee’s failure to disclose any relevant information about the Premises and/or improvements located thereon to any subtenant or assignee. It is the intention of the Lessor and Lessee that the provisions of this Section shall survive termination of this Lease for any reason.
10.3 Lessee shall maintain the Premises and all improvements located thereon, including but not limited to all portions of the Original Office Building and, if approved, following demolition of said Original Office Building, the Lessee Improvements. Lessee shall maintain, repair, and, as necessary, replace, all elements of the Premises, the Original Office Building (only until demolished, and Lessee shall not be required to make capital expenditures in maintaining the Original Office Building or to maintain the Original Office Building in a state better than the state on which it exists on the Effective Date) , and thereafter, if approved, the Lessee Improvements, including but not limited to, the struc tural and other elements and interior and exterior surfaces of the Original Office Building and thereafter, if approved, Lessee Improvements, including roof, roof membrane, and roof covering, walls, ceiling, doors, windows, concrete slab, footings, undergr ound or otherwise unexposed plumbing and electrical systems, and the heating, ventilating and air-conditioning system (“HVAC”) at Lessee’s sole cost and expense. Lessee shall also be responsible for all other improvements located on and exclusively serving the Premises, including all landscaping, irrigation, utility service and connections, etc. It being expressly understood that City shall have no responsibility whatsoever for maintenance, repair, or replacement of any improvements of any nature whatsoever located on the Premises or of any portion of the Premises or the Common Area during the Term hereof other than utilities, storm and sanitary sewers, the sea wall and other public improvements not exclusively serving the Premises. Common Area shall be maintained in accordance with Section 8 hereof.
10.4 Notwithstanding anything herein to the contrary, Lessor acknowledges that as between Lessor and Lessee, Lessee shall be responsible for the investigation, remediation and removal of only such Hazardous Materials as have been brought onto the Premises by Lessee, its agents, employees or contractors (including under the Prior Lease).
11 10.5 Access to the Property. Lessee agrees that Lessor shall have the right at all reasonable times to enter upon and to examine and inspect the premises upon a 48-hour notice unless in case of an emergency related to maintenance of the site. Lessee further agrees that Lessor shall have such rights of access to the Premises as may be reasonably necessary to cause the proper maintenance of the Premises in the event of failure by the Lessee to perform its obligations hereunder.
SECTION 11
LESSEE IMPROVEMENTS
11.1 Lessee Improvements shall be built in accordance with detailed plans and specifications prepared by Lessee and approved by City, in accordance with all applicable governmental laws, rules, regulations, ordinances and requirements, including the Vallejo Waterfront Planned Development Master Plan and Design Guidelines, as amended from time to time (“ PDMP”), the City’s General Plan 2040, as amended from time to time, and CEQA.
11.2 Subject to Section 3.9, City shall not be responsible for any payment of costs incurred by Lessee with respect to the design, permitting, and construction of the Lessee Improvements.
11.3 Lessee acknowledges that City retains full and complete discretion as to whether to approve, deny, or condition applications to the City, if a ny, for any Lessee Land Use Entitlements. No final action taken by the City (e.g., approval, conditional approval, denial), in the exercise of its discretion, relating to an application for approval of Lessee Improvements shall constitute an event of defau lt of this Lease by Lessor.
11.4 Nothing in this Agreement shall be interpreted to bind the City to any definite course of action regarding Lessee Improvements prior to CEQA compliance. Further, this Agreement shall not be interpreted to restrict or prevent the City from considering feasible mitigation measures for, or alternatives to, any Lessee Improvements.
11.5 Subject to Section 3.3, Lessee shall use commercially reasonable efforts to submit complete applications to the City for Entitlements necessary for Lessee Improvements on or before the date that is one (1) year from the end of the Due Diligence Period. To the extent that the same are required to be paid by all applicants for entitlements, Lessee shall be responsible for the costs of processing applications to the City for Entitlements necessary for Lessee Improvements, including but not limited to any CEQA environmental review required in connection with the Lessee Improvements (which process sh all be conducted by the City), consistent with generally-applicable City fee schedules. The Parties’ timeline shall be subject to extension due to force majeure events (includin g any delays resulting from the COVID -19 pandemic or other similar pandemics and any event specified in Section 25).
11.6 If Lessee determines at any time that the conditions described in clauses (i) through (vi) of the definition of “Go Date” will not be satisfied in a manner that is acceptable to Lessee in its sole and absolute discretion, then Lessee shall be entitled to notify City that it is withdrawing any pending applications for approvals of the Lessee Improvements and terminating this Lease. Upon the giving of such notice, the Lease (and any agreements executed in connection herewith including the Maintenance Agreement and the License Agreement) shall terminate, and the Parties shall have no further obligations thereunder except that Lessee shall surrender the Premises to Lessor in a broom clean condition and in accordance with the maintenance requirements hereof with respect to the Original Office Building (provided the same still exists) and shall be obligated to Lessor for the Original Office Building Remaining Value.
12 SECTION 12
TAXES
12. Notice is hereby given pursuant to California Revenue and Taxation Code Section 107.6, that the interest granted to Lessee pursuant to this Lease to occupy the Premises may create a possessory interest in Lessee subject to property taxation and Lessee may by subject to the payment of property taxes levied on such interest. Lessee shall be responsible for paying any possessory interest tax and special tax assessments in connection with Lessee’s development, occupancy and possession of the Premises and Lessee’s Improvements and for any business personal property taxes on its personal property located on the Premises. At Lessee’s request, Lessor shall cooperate reasonably with Lessee in any proceedings to appeal any possessory interest tax or special tax assessments attributable to this Lease or Lessee’s possessory interest in the Premises.
SECTION 13
PARKING
13. City shall not provide Lessee with exclusive parking for the Premises and does not waive parking requirements but will work with Lessee on alternative parking opportunities. As part of any application by Lessee to the City for Lessee Improvements, City and Lessee shall negotiate in good faith a License Agreement, to provide: (1) for non -exclusive general use of the Parking Area; and (2) for event parking during off-peak hours and otherwise to the extent additional parking is available, for reserved use of up to 200 parking spaces of City- owned parking located wi thin one-half mile of the Premises, which reserved spots may be used by Lessee for valet parking for special events at no additional cost to Lessee (“Event Parking”).
SECTION 14
SERVICES AND UTILITIES
14.1 Lessee shall provide separate meters for all of L essee’s required utility services and shall provide a separate fire sprinkler riser. Lessee shall pay for all utility hookup fees and permits. The Lessee shall be responsible for the cost of all utilities, including water, heat, gas, electricity, waste removal, sewers, and other utilities or services supplied to the Premises, and the Lessee shall pay or cause utility costs to be paid currently and as due. All common area utilities shall be separately metered and billed back to Lessee as set forth in Maintenance Agreement.
14.2 Lessee shall keep the Premises and Common Area reasonably clean and free from rubbish, trash, and garbage, and at its own expense, arrange for removal of same.
SECTION 15
SIGNAGE REQUIREMENTS
15. Lessee’s signage shall follow the design guidelines as set forth in the Plan Development Master Plan and Vallejo Municipal Code as applicable.
13 SECTION 16
LESSEE’S CONTRIBUTIONS
16. Prior to the commencement of the Waterfront Park Rehabilitation Project, both Parties shall review and agree upon the Park design, budget, and work plan, and the names associated with the Park and its elements, each in their discretion (“ Project Plan”). Following the Go Date, provided Lessee has not terminated this Lease as permitted herein , Lessee shall reimburse to the Lessor an amount equal to the contract price for design of the Waterfront Park Rehabilitation Project (“Park Design Contribution”), to the extent Lessor has actually incurred, and provided its prior written approval of, such cost and provided that Lessor has delivered to Lessee all contracts and invoices reasonably evidencing such cost and the payment thereof. The current estimated cost of the design for the Waterfront Park Rehabilitation Project is approximately Six Hundred Thousand Dollars ($600,000.00). Lessor shall use the Park Design Contribution to pay for the actual design costs associated with the Waterfront Park Rehabilitation Project as approved by Lessee and the City.
16.1 After the Go Date, provided Lessee has not terminated this Lease as permitted herein, Lessee shall reimburse the Lessor up to Ten Million Dollars ($10,000,000.00) in the aggregate, including the Park Design Contribution, for amounts actually incurred by Lessor in connection with the actual documented cost for the Waterfront Park Rehabilitation Project, to the extent such costs and expenses are consistent with the Project Plan. City shall provide to Lessee on a bi-monthly basis invoices for such amounts actually paid to date in accordance with the Project Plan, together with evidence of payment and lien waivers, and Lessee shall reimburse Lessor for the same within thirty (30) days of the date of its receipt of the required documentation reasonably evidencing such amount and its purpose, unless other dates are agreed upon by both Parties. If the Project Plan is thereafter changed by the City following its approval by Lessee, Lessee shall not be obligated to contribute funds to such changed Waterfront Park Rehabilitation Project. If the City determines that any change to the Project Plan is necessary or desirable, the City shall promptly notify Lessee in writing and provide such information as Lessee may request in order to evaluate whether Lessee desires to continue to support the Waterfront Park Rehabilitation Project . The City shall provide Lessee with complete copies of all contracts and invoices for which the City seeks reimbursement from Lessee. In the event Lessor receives a refund, discount, or other credit for any amount Lessee has reimbursed to Lessor pursuant to this Section 16.1, such refund, discount, or other credit shall be credited against other costs incurred in accordance with the Project Plan.
16.2 Lessee shall pay all applicable Application and permit processing fees, including without limitation, fees for plan checking, inspection, monitoring, land use approvals, design review, grading, demolition and building permits, and all other City permits and entitlements in effect at the time of payment for each such permit or entitlement, as set forth in City’s fee schedule as annually updated (all of the foregoing, “City Fees”).
16.3 Third Party Costs. Lessee shall pay City’s reasonable, documented, out-of-pocket third-party costs for legal and other professional and consulting services (plus 20% for administrative costs incurred in the case of professional and consulting services) necessary to review entitlements n ecessary for the Lessee Improvements, to the extent such costs are agreed to in advance in the Project Plan. At Lessee’s request, and subject to reimbursement by Lessee, the City shall use commercially reasonable efforts to engage a third party consultant planner and/or engineer for the purpose of facilitating the City’s review of the proposed Lessee Land Use Entitlements.
SECTION 17
14 USE OF THE OTHER PARTY’S FACILITIES
17. In the spirit of partnership between two governments, the Lessor and Lessee are each amenable to allowing the other to use space owned by it from time to time, assuming the requested space is available for the particular date and time requested and subject to the following:
17.1 City use of the Premises, including any Lessee Improvement s, shall be subject to the approval of Lessee, in its sole and absolute discretion, as to the purpose, scope and intensity of such use in each instance. The portion of the Lessee Improvements comprising the Yocha Dehe Wintun Nation cultural center shall not be available for use by the City pursuant to this provision. City use of the other portions of the Premises shall be permitted for up to six (6) times per year with no facility rental charge for such City use (other than food and beverage and use of Le ssee’s personnel to the extent the same would be charged to any other user). For each use in excess of six (6) times per year, the City shall pay Lessee’s then market rate facility rental charge in addition to food, beverage, and personnel charges. In every instance of City use, regardless of whether use is subject to a facility rental charge, City will provide at City’s sole cost and expense, all necessary janitorial and garbage services for all such City uses. City insurance shall apply to any instances of City use of the Premises, including any Lessee Improvements. The City acknowledges that its use of any part of any Lessee Improvements may never be for political purposes and must always otherwise comply with applicable law.
17.2 Lessee use of any part of City owned and operated facilities that the City otherwise rents through special permits through the City (“City Facilities”), shall be permitted for up to six (6 ) times per year at no facility rental charge to Lessee. Said City Facilities shall include the Waterfront History Park and any other facilities managed by GVRD for the benefit of the City . Such use of any facilities owned by GVRD shall be subject to GVRD’s consent. Lessor shall use commercially reasonable efforts to obtain such consent, which may be by way of cultural easement(s). In every instance of Lessee use of the City Facilities hereunder, Lessee will provide at Lessee’s sole cost and expense, all necessary janitorial and garbage services for all such Lessee uses. Lessee shall be required to obtain a “no cost” permit for any such use and shall be required to comply with City standard insurance requirements related thereto. Such City Facilities may never be for political purposes and must always otherwise comply with applicable law.
SECTION 18
ASSIGNMENT AND SUBLETTING
18.1 Lessee shall not have the right to sublet or assign all or a part of the Premises at any time without Lessor’s prior written consent , not to be unreasonably withheld, conditioned or delayed. No consent shall be required in connection with an assignment or subletting to an entity which (a) is a successor, by merger or otherwise, to all or substantially all of Lessee’s assets, (b) controls, is controlled by or is under common control with Lessee, (c) is engaged in a joint venture with Lessee, or (d) is an affiliate of Lessee (the foregoing, each, a “Permitted Transferee”). Consent is not required to sublease less than 3,000 square feet of the Lessee Improvements to a company that provides any of the uses consistent with Section 5 above, and Lessee shall retain 100% of any revenues from any such sublease. Lessee shall provide written notice of any successor, merger, joint venture, affiliate, or sublease of the Premises with in fifteen (15) days of such assignment. Special event rental of Lessee Improvements shall be permitted provided such rental complies with all applicable laws, rules, and regulations and that all permits are obtained as otherwise would be required.
15 SECTION 19
FINANCING
19. Lessee shall have the right to mortgage its leasehold estate with notification to the Lessor prior to the mortgage commencing. In no event shall Lessor be required to subordinate its reversionary fee interest to Lessee’s lender. In connection with any such financing, Lessor shall provide appropriate consents and waivers to Lessee’s lender. Lessor shall afford any leasehold mortgagee the rights and remedies customarily afforded to real estate lenders with respect to borrower loan defaults and shall agree to provide any leasehold mortgagee with notice and the opportunity to cure any defaults by Lessee under this Lease.
SECTION 20
INSURANCE
20.1 Required Insurance Coverage.
(a) Commercial Property Coverage. The Lessee shall keep the Premises and Lessee Improvements insured against loss or damage by a standard commercial property special form policy in amounts not less than the replacement value of the Lessee Improvements.
The amount of such insurance shall be adjusted by reappraisal of the Lessee Improvements by the insurer or its designee at least once every five (5) years during the Lease Term, if requested by the Lessor. If a special form policy insuring the full replacement value of the Lessee Improvements is not reasonably and commercially available, then the Lessee shall obtain and maintain an extended coverage endorsement that ensures the full replacement value of the Lessee Improvements as soon as such coverage becomes co mmercially and reasonably available. The property policy shall provide for losses to be payable to the Lessor and Lessee as their interests may occur and that the insurer shall not have rights of recovery against the Lessor and Lessee.
(b) Liability and Property Damage Insurance. The Lessee shall at all times during the Lease Term of this Lease keep in full force and effect a policy or policies of commercial general liability insurance against liability for bodily injury to or death of any person or property damage arising out of or in any way related to the operation, use, occupancy, or development or construction upon the Premises and on any occurrence on or about the Lessee Improvements. The insurance shall be written on an occurrence basis and the limits of such insurance shall be not less than Four Million Dollars ($4,000,000) combined single limit for bodily injury and
property damage. The limits of the insurance shall be adjusted once every five (5) years if and as reasonably required by the Lessor.
(c) Workers' Compensation Insurance. The Lessee shall carry or cause to be carried workers' compensation insurance, with statutory limits as required by the California Labor Code, covering all persons employed by the Lessee in connection with the Premises/and or Development which shall provide for a waiver of subrogation in favor of the Lessor. Such coverage shall include a waiver of subrogation endorsement in favor of Lessor.
16 (d) Builders' Risk Insurance. During the course of any alteration, construction or reconstruction, the cost of which exceeds Fifty Thousand Dollars ($50,000), the Lessee shall provide and require any contractor to provide builders' risk insurance for one hundred percent (100%) completed value on the insurable part of the Lessee Improvements. The builder's risk policy shall provide for losses to be payable to the Lessor and Lessee as their interests may occur and that the insurer shall not have rights of recovery against the Lessor and Lessee.
(e) Contractor Insurance. All contractors employed by Lessee to perform construction work on the Lessee Improvements, regardless of the value of such construction, shall carry commercial general liability insurance, worker’s compensation insurance and automobile insurance as required pursuant to this Section 20.1 and Section 20.2 and shall name Lessor and Lessee as additional insureds with endorsements in a form acceptable to Lessor.
(f) Automobile Insurance. If the Lessee and its contractors and agents own, use, or lease vehicles, then the Lessee shall carry or caused to be carried comprehensive automobile liability insurance with limits not less than One Hundred Thousand Dollars ($100,000) per occurrence/Three Hundred Thousand Dollars ($300,000) aggregate for bodily injury and property damage, including coverages for owned, non- owned and hired vehicles, as applicable.
20.2 Insurance Policies and Premiums.
(a) All liability policies required by this Lease, including without limitation all policies obtained by Lessee's contractors pursuant to Section 20.1 above, shall name the Lessor and Lessor’s elected and appointed officials, officers, employees, agents, volunteers, guests, invitees and contractors as additional insureds, and shall provide cross liability among insureds, and state that as to claims re lated to the work performed or related to the Premises, the Lessee Improvement or any and all activity permitted pursuant to this Lease, the insurance shall be primary as to the additional insureds under this Lease, so that any other policies held by the Lessor, if any, shall not contribute to any loss under the insurance. Coverage shall be at least as broad as coverage set forth in ISO 20 10 11 85 endorsement.
(b) Insurance shall be placed with insurers with a current Best Rating of no less than A:VII. If at any time the Best Rating of Lessee’s insurer falls below A:VII, the Lessee shall have 30 days to secure a new insurer who satisfies a Best Rating of A:VII. Any deductible or self -insured retention shall be disclosed to and approved, in writing, by the Lessor.
(c) Upon execution of this Lease, the Lessee shall furnish the Lessor with certificates and original endorsements effecting the required coverage in a form acceptable to Lessor. Thereafter, such evidence shall be provided annually or, if, and when, there are changes of insurance and, in any event, promptly upon request. The endorsements shall be signed by persons authorized by the insurer to bind coverage on its behalf. The endorsements shall be on forms provided by the Lessor or as approved by the Lessor. If the Lessee does not keep all required insurance policies in full force and effect, or such insurance does not satisfy the terms and conditions of this Lease, then the Lessor may, in addition to other remedies under this Lease, take out the necessar y insurance, and the Lessee shall pay the cost of such insurance within ten (10) days of invoice from Lessor. All insurance required by this Section shall provide for severability of interests 17 and shall provide that an act or omission of one of the named insureds shall not reduce or avoid coverage to the other named insureds.
(d) Each policy of insurance required pursuant to this Lease shall provide that it may not be cancelled, reduced in amount of coverage, or otherwise materially modified without notice, in writing, delivered to Lessee and the Lessor at their respective principal offices at least thirty (30) days before the effective date of change or cancellation.
20.3 Proceeds of Insurance.
(a) In the event of damage or destruction to the Premises and/or the Lessee Improvements, all commercial property insurance (including builder's risk) proceeds shall be applied to the payment of the costs of repairing or rebuilding that part of the Premises and Lessee Improvements damaged or destroyed, provided that the extent of Lessee's obligation to restore the Premises and Lessee Improvements shall be limited to the amount of the insurance proceeds.
(b) All insurance proceeds received under the policies set forth in this Section shall be paid to the Parties hereto in proportion to their interests, provided that the Lessee shall apply such proceeds, to the extent possible, to reconstruction or repair in a manner consistent with the provisions of Section 20.3 (a), above.
(c) If the Lessee Improvements are damaged or destroyed, then Lessee shall, to the extent insured, or required to be insured, and with reasonable diligence, repair, reconstruct or replace such Lessee Improvements (to the extent the same is commercially feasible) to a condition substantially similar to their condition immediately prior to such damage or destruction. All such repair, reconstruction or replacements shall be at the sole cost and expense of Lessee and, upon completion thereof, shall be free and clear of all mechanics’ liens. In the event fifteen percent (15%) or more of the total square footage of Lessee Improvements are damaged or destroyed or rebuilding or repair of such damage or destruction would reasonably take more than one hundred eighty (180) days, Lessee may elect not to rebuild and to terminate this Lease. Upon such election, this Lease shall terminate and the parties shall have no further obligations to one another, except that Lessee shall pay any net insurance proceeds paid to Lessee as compensation for such damage or destruction to Lessor.
20.4 Self-Insurance. Notwithstanding anything to the contrary, Lessee may satisfy any or all insurance requirements in this Section 20 through self-insurance, provided that such self-insurance affords coverage that is substantially the same or better than the coverage required elsewhere in this Section 20. If Lessee self-insures, Lessee shall provide Lessor evidence reasonably evidencing compliance with this Section 20.4.
SECTION 21
INDEMNIFICATION
21.1 Except to the extent caused by the gross negligence or willful misconduct of Lessor or Lessor’s council members, officials, officers, agents, board members, employees, agents, volunteers, consultants, contractors, or representatives, Lessee agrees to and shall indemnify, defend, and hold the 18 Lessor, its council members, officers, agents, consultants, employees and representatives harmless from liability for claims, damage , liabilities and costs, including but not limi ted to personal injury, including death, and claims for property damage which may arise from (a) the demolition of the Original Office Building, the design and/or construction of the Lessee Improvements and the conduct occurring on and management of the Pr emises or of any business therein, or any work or thing whatsoever done, or any condition created in or about the Premises during the Term; (b) any negligence, willful misconduct, act, error or omission of Lessee or Lessee’s officials, officers, agents, bo ard members, employees, agents, volunteers, consultants, contractors, representatives, invitees, guests, or sublessees using any portion of the Premises or the Lessee Improvements; (c) any accident, injury, or damage whatsoever occurring in or at the Premises and Lessee Improvements including but not limited to any damage or injury caused by or related to the existing and future conditions of the Premises and specifically including but not limited to conditions described in Section 10; (d) any material breach or default by Lessee of the Lease or activity permitted pursuant to this Lease; and (e) any liens or encumbrances arising out of any work performed or materials furnished by or for Lessee.
21.2 Except to the extent caused by the gross negligence, willful misconduct, acts, errors or omissions of Lessee or Lessee’s council members, officials, officers, agents, board members, employees, agents, volunteers, consultants, contractors, or representatives, Lessor agrees to and shall indemnify, defend and hold the Lessee , its council members, officials, officers, agents, consultants, employees and representatives harmless from liability for claims, damage, liability and costs, including but not limited to personal injury, including death, and claims for property damage which may arise from (i) the gross negligence or willful misconduct of Lessor or Lessor’s council members, officials, officers, agents, board members, employees, agents, volunteers, consultants, contr actors, or representatives, or (ii) any material breach or default by Lessor of the Lease.
SECTION 22
HOLDING OVER
22. If Lessee remains in possession of the Premises after the expiration of the Term, then Lessee shall be deemed to be occupying the Premises as a tenant at sufferance subject to all conditions, provisions, and obligations of the Lease. Lessee’s holdover shall not exceed one (1) year subsequent to the expiration of the Term.
SECTION 23
SURRENDER CONDITIONS
23. On expiration or termination of the lease, Lessee shall surrender the Premises and all improvements thereon to Lessor in reasonable order, condition, and repair subject to the terms of this Lease.
SECTION 24
NON-DISCRIMINATION
19 24. Lessee shall refrain from restricting the use of the Premises on the basis of age, sex, ancestry, primary language, immigration status, genetic information, citizenship, medical condition, gender identity, disability, marital status, race, color, religion, creed, ancestry, sexual orientation, veteran status, or national origin of any person. Notwithstanding the foregoing, nothing in this Section 24 shall be construed (i) to restrict Lessee’s rights given its status as a federally-recognized Tribal government, including without limitation its right to prefer Native Americans in any hiring decisions, or (ii) to restrict use of the cultural center or other areas of the Premises that Lessee deems culturally sensitive or which Lessee does not hold open to the public.
SECTION 25
FORCE MAJEURE
25. If either Party shall be delayed or prevented from the performance of any act required by this Lease by reason of acts of God, acts of the public enemy, war, terrorism, strikes, lockouts, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or other cause without fault and beyond the reasonable control of the Party obligated (financial inability excepted), performance of such act shall be excused for the period of the delay; and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay.
SECTION 26
LEGAL EFFECT
26.1 All obligations of Lessee are expressly made conditions of this Lease, any breach of which shall, at the option of Lessor, terminate this Lease.
26.2 Provided no Event of Default then exists, during the T erm, the Lessor shall provide the Lessee with quiet use and enjoyment of the Premises, and the Lessee shall, during such Term, peaceably and quietly have and hold and enjoy the Premises. The Lessor will, at the request of Lessee and at Lessee’s cost, join in any legal action in which the Lessee asserts its right to such possession and enjoyment to the extent Lessor may lawfully do so. Notwithstanding the foregoing, the Lessor shall have the right to inspect the Premises as provided in Section 10.
SECTION 27
DEFAULTS AND REMEDIES
27.1 Events of Default; Remedy for Default by Lessee.
(a) Subject to Section 25, any one or more of the following events shall constitute an “Event of Default”:
(i) Failure to make any payment required hereunder, and continuance of such failure for a period of sixty (60) days after receipt by the Lessee of written notice specifying the nonpayment; or
20 (ii) Attachment, execution, or other judicial seizure of this leasehold, which is not dismissed, bonded, or stayed within sixty (60) days; or
(iii) Lessee’s provision of written notice to Lessor that it has, or will, abandon the Premises and cease to utilize the Premises in accordance with Section 5 , above (except in connection with a termination as permitted herein); or
(iv) Failure of the Lessee to observe and perform any other covenant, condition, or agreement hereunder on its part to be performed, and continuance of such failure for a period of sixty (60) days after receipt by the Lessee of written notice specifying the nature of such default.
If Lessee reasonably believes that more than sixty (60) days are required to remedy the violation, Lessee shall provide Lessor with a written notice stating the action proposed to remedy the violation and the reason why such remedy w ill require more than sixty (60) days. The Lessee shall also include in this written notice the soonest reasonable date by which the violation will be remedied.
The Lessor shall not unreasonably withhold an additional period of up to sixty (60) additional days for Lessee to remedy the violation at issue. The Lessee may further seek to extend this period for an additional sixty (60) days, but the decision of whether or not to provide this additional sixty (60) days shall rest with the sole and absolute discretion of Lessor . Notwithstanding the immediately preceding sentence, the extension of any such sixty - (60-) day cure period shall be granted by Lessor for any time period associated with any failure by the City to process any application for Entitlements in a timely manner.
(b) Upon the occurrence of an Event of Default under this Lease by Lessee, Lessor is entitled at Lessor's option to the following:
(i) to reenter and take exclusive possession of the Premises; (ii) to collect immediately the present value of the unpaid rent reserved for the entire term, or to collect each installment of rent as it becomes due; (iii) to continue this Lease in force or to terminate it at any time; (iv) to relet the Premises for any period on Lessee's account and at L essee's expense, including real estate commissions actually paid, and to apply the proceeds received during the balance of Term to Lessee's continuing obligations under this Lease; (v) to take custody of all personal property on the Premises to dispose o f the personal property and to apply the proceeds from any sale of that property to Lessee's obligations under this Lease;
(vi) to recover from Lessee the damages described in Civil Code § 1951.2(a)(1), 1951.2(a)(2), 1951.2(a)(3), and 1951.2(a)(4), the provisions of which are expressly made a part of this Lease;
(vii) to restore the Premises to the same condition as received by Lessee, or to alter the Premises to make them suitable for reletting, all at Lessee's expense; and (viii) to enforce by suit or otherwise all obligations of Lessee under this Lease and to recover from Lessee all remedies now or later allowed by law. 21 Any act that Lessor is entitled to do in exercise of Lessor’s rights upon an Event of Default may be done at a time and in a manner deemed reasonable by Lessor in Lessor's sole discretion.
27.2 Events of Default; Remedy for Default by Lessor. In addition to all rights and remedies set forth herein with respect to a material default by Lessor, in the event of Lessor’s material default or breach of any obligation hereunder, Lessee may avail itself of all remedies available under applicable law, provided that for non-emergency defaults or breaches Lessee has given Lessor written notice of the same and sixty (60) days (which time period Les sor may extend as reasonably necessary if completion of the cure is reasonably infeasible within sixty (60) days and Lessor continuously has been and will continue to pursue completion of the cure diligently) have passed since the giving of such notice wit hout completion of the cure.
27.3 The City’s failure to process Lessee’s Land Use Entitlements or building permits in a timely manner shall not constitute an event of default for either Party.
SECTION 28
NOTICES
28. All notices or instruments required to be given or delivered hereunder or by applicable law shall be in writing and shall be effective upon receipt thereof and shall be by personal service or delivered by depositing the same in any United States Post Office, registered or certified mail, post age prepaid, addressed to:
If to Lessor:
City of Vallejo City Manager
555 Santa Clara Street, 3
rd Floor
Vallejo, CA 94590
with a copy to:
City of Vallejo City Attorney
555 Santa Clara Street, 3
rd Floor
Vallejo, CA 94590
If to Lessee:
Tribal Chairperson
Yocha Dehe Wintun Nation
18960 Puhkum Road
PO Box 18
Brooks, CA 95606
with copy to:
Office of the Attorney General
Yocha Dehe Wintun Nation
18960 Puhkum Road
PO Box 18
Brooks, CA 95606
22 A Party may change its address for receiving notices by givi ng written notice of such change to the other Party in accordance with this Section.
SECTION 29
WAIVER
29. Any waiver given hereunder by Lessor must be in writing and shall not be deemed a waiver of any subsequent breach of the same or any other term, covenant or condition herein waived. The subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any term, covenant, or condition of this Lease, other than the failure of Lessee to pa y the particular rent so accepted, irrespective of Lessor’s knowledge of such preceding breach at the time of the acceptance of such rent. The failure of Lessor to enforce a provision of this Lease shall not be deemed a waiver for any purpose.
SECTION 30
GOVERNING LAW
30. This Lease shall in all respects be governed by the law of the State of California and to the extent applicable, the laws of the United States. Litigation arising out of or connected with this Lease shall be instituted and maintained in the courts of Solano County in the State of California or in the United States District Court, Eastern District of California, Sacramento, California, and the Parties consent to jurisdiction over their person and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts. The Parties agree that in the event of any dispute hereunder, they shall first use reasonable efforts to resolve the same through mediation (with the Parties each being responsi ble for one half of the fees and expenses of the mediator). If the Parties cannot agree on a mediator, then either Party may apply to a court of competent jurisdiction for appointment of a mediator. Applicable statutes of limitation shall be tolled until such time as either Party notifies the other in writing that it has elected to discontinue such mediation efforts (provided that no Party may discontinue such mediation efforts sooner than sixty (60) days after initiating the same). Provided both Parties agree, the Parties may opt to arbitrate the dispute in lieu of, or following, such mediation.
SECTION 31
ENTIRE AGREEMENT
31. Entire Agreement; Modification. This Lease constitutes the entire agreement between Lessor and Lessee with respect to the subject matter hereof and supersedes all prior offers and negotiations, oral and written, pertaining to the Premises. This Lease may only be modified in by an instrument in writing signed by Lessor and Lessee.
SECTION 32
INSPECTION BY CERTIFIED ACCESS SPECIALIST
32. Lessor discloses that the Premises have not undergone inspection by a Certified Access Specialist.
23 California Civil Code Section 1938 subsection (e) provides: “A Certified Access Specialist (CASp) can inspect the subject premises a nd determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by lessee or tenant. The Parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making and repairs necessary to correct violations of construction- related accessibility standards within the premises.”
If Lessee wishes to have the Premises inspected by a CASp: (i) the inspection will be at Lessee’s sole cost and expense; (ii) any repairs or modifications necessary to correct any violation of construction- related accessibility standards that is noted in the CASp report shall be Lessee’s responsibility; and (iii) Lessee must provide a copy of the CASp report to Lessor on completion.
SECTION 33
PREVAILING WAGES
33. Lessee acknowledges that Lessor has made no representation, express or implied, to Lessee or any person associated with Lessee regarding whether or not laborers employed relative to any construction on the Premises must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to California Labor Code Sections 1720 et seq. Lessee agrees with Lessor that Lessee shall assume the responsibility and be solely responsible for determining whether or not laborers employed relative to any construction on the Premises undertaken by Lessee must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to California Labor Code Sections 1720 et seq. Lessor shall not be under any duty to monitor or ensure the compliance of Lessee with any State of California l abor laws, including, without limitation, prevailing wage laws. Lessee shall indemnify Lessor in accordance with the provisions of Section 21 against any claims pursuant to California Labor Code Section 1781 arising from Lessee’s construction of any improvements, work, or alterations on the Premises.
SECTION 34
CITY MUNICIPAL POWERS
34. The Lessor is entering into this Lease in its proprietary capacity, and not in its regulatory or governmental capacity. Nothing in this Lease shall be construed as restraining, impairing, or restricting the City in its regulatory capacity, excusing any duties or obligations of the City in its regulatory or governmental capacity, or granting any rights upon the Lessee with respect to the use, occupancy or operation of the Premises in a manner inconsistent with Law. This Lease does not grant any development rights upon the Lessee with respect to the Premises and any such development shall be subject to all applicable provisions of the Vallejo Municipal Code.
SECTION 35
ESTOPPEL
35. Lessor and Lessee will, at no cost to the requesting Party , at any time and from time to time, upon not less than fifteen (15) days’ prior written request by the other, execute, acknowledge and deliver to the other a statement in writing, executed by Lessor or Lessee, certifying (i) that this Lease is 24 unmodified and in full effect (or, if there have been modifications, that this Lease is in full effect as modified, setting forth such modifications); (ii) the dates to which rent and other expenses paya ble hereunder have been paid; (iii) that to the knowledge of the Party executing such certificate, no default by either Lessor or Lessee exists hereunder or specifying each such default of which such Party may have knowledge; and (iv) the remaining Lease Term hereof.
SECTION 36
SEVERABILITY
36. If any term or provision of this Lease or the application thereof to any provision of this Lease or the application thereof to any person or circumstances is found by a court of law with governing jurisdiction to be invalid and unenforceable, the remainder of this Lease, or the application of such term or provision to person or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each term and provision of this Lease will be valid and will be enforced to the extent permitted by applicable law.
SECTION 37
SUCCESSORS AND ASSIGNS
37. This Lease will run with the land and will inure to the benefit of and bind Lessor and Lessee and their heirs, distributees, personal representatives, successors and assigns.
SECTION 38
CONDEMNATION
38. In the event of condemnation or taking of the Premises, or any portion thereof, by condemnation or eminent domain, this Lease shall terminate with respect to the portion so taken on the effective date of the final determination by a court of law. Condemnation awards shall be paid to the Parties in proportion to their respective interests in the Premises and the improvements thereon, provided that if this Lease remains in effect, all proceeds shall be made available for the restoration of the Premises and the improvements thereon. If a portion of the Premises is taken such that, notwithstanding the use of condemnation proceeds to restore the Premises and the Lessee’s Improvements, the Premises cannot in the reasonable determination of Lessee be used for their intended purpose, then Lessee shall be entitled to terminate this Lease by written notice to Lessor, and such termination shall be deemed to be a termination by Lessor for Governmental Purposes for purposes of Section 3.9. Upon any taking of a portion of the Premises, the rent payable under this Lease shall be equitably adjusted to reflect the impairment of Lessee’s use thereof. If the Le ase is terminated as a result of any taking, then Lessee shall be entitled to reimbursement under Section 3.9 as a termination for Governmental Purposes.
[Signatures on the following page]
25 1
BY SIGNING BELOW, the Parties confirm their agreement to the terms of this Lease as of the date first written above.
ATTEST: LESSOR:
______________________ City of Vallejo
City Clerk
By: ____________________________________
APPROVED AS TO FORM: Its: ____________________________________
_______________________
City Attorney LESSEE:
Yocha Dehe Wintun Nation
By: ____________________________________
Its: ____________________________________
APPROVED AS TO FORM:
_______________________
Attorney General
NOTE: ALL SIGNATURES MUST BE NOTARIZED FOR RECORDATION PURPOSES
1 EXHIBIT A
[Insert description of Premises]
PARCEL 613 2 PM 10
S57° 22' 47"W
S12° 32' 42"E 204.80'
N57° 22' 47"E140.00'
S32° 37' 13"E30.00'S59° 14' 28"W6.79'S30° 45' 32"E137.38' PARCEL 6102 PM 10PARCEL 6112 PM 10
PARCEL 6122 PM 10
N32° 37' 13"W 167.09'
N32° 37' 13"W 192.36'
PARCEL 6162 PM 10
MAREMARE
WAY
ISLAND
STRAIT
N57° 22' 47"E128.75'ISLAND
ROW
58.45'
ACCESS RD.CITY HALLGEORGIA ST.
Site
MAINE ST.MARE ISLANDWAY
SURVEYORSINSPECTORSENGINEERSCHAUDHARY& ASSOCIATES, INC.Tel: (707) 255-2729 FAX. (707) 255-5021 WWW.CHAUDHARY.COM211 GATEWAY ROAD WEST, SUITE 204NAPA, CALIFORNIA 94558 EXHIBIT A1 inch = ft.( IN FEET )GRAPHIC SCALE0 5050100 50 1
EXHIBIT B
[Insert depiction of Parking Area, APN 0055 170 008]
1 EXHIBIT C
[Insert description of Common Area]
1 EXHIBIT D
[Insert Depreciation Schedule]
To be attached as set forth in the Lease.
1 EXHIBIT E
[Insert Schedule of Prior Lease Documents]
ACTION ITEM 9.C.
DATE: December 13, 2022
TO: Mayor and Members of the City Council
FROM: Melissa L. Tigbao, PE, Public Works Director
Dan Sequeira, Assistant Public Works Director/City Engineer SUBJECT: CONDUCT A PUBLIC HEARING AND ADOPT A RESOLUTION ESTABLISHING NEW
PUBLIC WORKS DEPARTMENT-ENGINEERING DIVISION FEES AND CHARGES FOR FISCAL YEAR 2022-2023 EFFECTIVE JANUARY 1, 2023
RECOMMENDATION
Conduct a public hearing and, upon conclusion, adopt a resolution establishing new Public Works Department - Engineering Division fees and charges for FY 2022-2023 effective January 1, 2023.
REASONS FOR RECOMMENDATION
Staff recommends revising the FY2022-2023 Fee Schedule to maximize cost recovery through fees that accurately reflect time, materials and efficiency improvements by moving to flat or hourly fees. Although City fees have been adjusted annually for changes in CPI (Consumer Price Index), the last fee study that included Public Works Department - Engineering Division fees was completed in 2019. That 2019 study recommended fee studies should be prepared at least every three years.
BACKGROUND AND DISCUSSION
The City contracted with MGT of America Consulting (MGT) to conduct a comprehensive review of and to update fees for the Public Works Department - Engineering Division services. A fee study is conducted periodically so that fees reflect current costs to provide services and meet full cost recovery targets, to add new fees when applicable for new City services, and/or to eliminate fees for discontinued services. The California Constitution grants cities the authority to establish fees to recover the cost of providing services, so long as the fees do not exceed the reasonable cost of the service for which they are collected.
Fee Study Methodology
The purpose of conducting a fee study is to identify the full cost to provide fee-related services and to recommend recovery levels for each fee. In order to determine the full cost of a service, it is necessary to analyze all services, both direct and indirect, and to fairly distribute costs across all activities provided by the Public Works Department - Engineering Division. The costs are calculated using the hourly rate of staff providing the service and the average time required to provide the service. MGT provided guidance on the fee study process and its best practice calculation methodology was used to develop the full cost of each fee.
Data was collected using the current budget, as well as staff time estimates and service volume data. MGT's Executive Summary attached hereto as Attachment No. 2 provides an overview of the findings and results of the city-wide fee analysis.
The intent of these fees is to cover up to 100% of the cost of providing the service associated with the fee.
Cost recovery analysis consists of three components:
1. Direct Labor cost. Employee hours spent directly on the fee-related service. This rate includes the employee's salary and benefits.
Date: December 13, 2022
Subject: CONDUCT A PUBLIC HEARING AND ADOPT A RESOLUTION ESTABLISHING NEW
PUBLIC WORKS DEPARTMENT-ENGINEERING DIVISION FEES AND CHARGES FOR FISCAL YEAR 2022-2023 EFFECTIVE JANUARY 1, 2023
2. Departmental Indirect Labor cost. Departmental employees not directly working on the fee-related service, but responsible for supervision and administrative activities. This cost layer includes administrative support staff, a portion of the department head's time and material and supply costs.
3. Central Overhead cost. This component includes costs for those departments that provide support to Public Works (e.g. City Attorney, City Manager, Finance and Human Resources).
Fee Study Findings
Staff carefully analyzed each fee and developed recommendations based on simplicity, competitive fees to encourage development, consideration of the public/community-wide benefit, and the effect of price increases on the demand for services. In the process of recommending cost recovery levels, staff considered the impact increased fees might have on individuals utilizing our services, and the community. These fees are charges for services or products from which individuals or businesses receive a benefit.
Overall, the Fee Study concluded that the Public Works Department - Engineering Division's current cost recovery target is $397,825, and that the Engineering Division generates fee-related revenues of $378,528, which represents a cost recovery level of 96%. This indicates the City is providing an overall annual subsidy of $17,797 to fee payers. For comparison, levels for all city departments range from 74% to 100%.
The study proposes adjusting the Public Works Department - Engineering Division fees to equal the difference of the current cost recovery and revenues ($17,797), which would provide a cost recovery level of 100%. The proposed fee adjustments are associated with three categories:
Grading projects - plan check of the grading plans, permit issuance and construction inspection Land development projects - plan check of the construction plans and construction inspection of the work
Stormwater projects - plan check of land development projects that are subject to National Pollution Discharge Elimination System (NPDES) Permit requirements as mandated by the San Francisco Bay Regional Water Quality Control Board
MGT has included a comparison of sample user fees charged in neighboring jurisdictions that include Antioch, Concord, Fairfield, Richmond, and Vacaville. Because each jurisdiction is unique, staff recommends that the information contained in the market comparison of fees be used as a secondary decision-making tool, rather than the primary tool for establishing an acceptable price point for services. The results of the fee survey are shown in Attachment No. 2 to this report. Attachment 3 shows the recommended fee increases with the CPI increase for fiscal year 2022-2023.
Annual Fee Updates
In between comprehensive fee updates, fees for service are administratively revised and increased annually by a factor equal to the net change in City salary and benefit costs for that fiscal year. Such a net change is measured by comparing the total budgeted city salary and benefit costs for the fiscal year in which the change is to become effective to the total budgeted city salary and benefit costs for the prior fiscal year. This provision allows City fees to keep pace with increased costs for services without having to conduct a complete fee study each year.
Date: December 13, 2022
Subject: CONDUCT A PUBLIC HEARING AND ADOPT A RESOLUTION ESTABLISHING NEW
PUBLIC WORKS DEPARTMENT-ENGINEERING DIVISION FEES AND CHARGES FOR FISCAL YEAR 2022-2023 EFFECTIVE JANUARY 1, 2023
FISCAL IMPACT
Under proposed City cost recovery percentages, staff estimates the new fees will increase annual revenues by approximately $18,000 based on the FY 2021-22 fee schedule. These are estimates only. The actual revenue will depend upon the demand for services. To the extent the City does not fully recover its costs for these services, General Fund taxes will subsidize the activity. See the following table:
Department Revenue at
Recommended Fee
Total Cost Over-Recover or
(Under Recover)
Proposed Cost
Recovery
Percentage
Public Works -
Engineering
$397,825 $397,825 0 100%
ENVIRONMENTAL REVIEW
The adoption of this resolution is not a project as defined by the California Environmental Quality Act (CEQA) pursuant to section 15378(b)(4) of Title 14 of the California code of Regulations and is not subject to CEQA review.
ATTACHMENTS
1. Attachment 1 - RESO Eng Fee Study_CAO Stamp
2. Attachment 2 - City of Vallejo Public Works Fee Report 5.24.22
3. Attachment 3 - PW 2022-2023 Master Fee Schedule for 12.13.22 Council Staff Report
CONTACT
Melissa L. Tigbao, Public Works Director (707) 648-4433 [email protected]
RESOLUTION NO. _____ N.C.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VALLEJO
ESTABLISHING NEW FEES AND CHARGES FOR SERVICES PROVIDED BY THE
PUBLIC WORKS DEPARTMENT, ENGINEERING DIVISION EFFECTIVE JANUARY 1, 2023
BE IT RESOLVED by the City Council of the City of Vallejo as follows:
WHEREAS, the City of Vallejo (“City”) is empowered to impose reasonable fees, rates, and charges for municipal services. California Government Code Section 66000 et seq. authorizes the City to adopt fees for municipal services, provided such fees do not exceed the cost to the City for providing the services. The City periodically amends and updates its Master Fee Schedule to account for the various cost increases relating to municipal programs, services and activities; and
WHEREAS, the Council of the City of Vallejo has determined that in order to continue providing effective services for the public welfare, the City must establish and increase or decrease fees for certain municipal services which accurately reflect the City’s true cost in providing such services; and
WHEREAS, the Council desires to enact some new fees and increase, decrease, remove, or leave unchanged existing fees for certain services and programs provided by Public Works Department – Engineering Division and to include the new, increased, decreased, or unchanged fees in the Master Fee Schedule, as attached to this Resolution as Attachment 3 and incorporated into it by this reference; and WHEREAS, the City has conducted an extensive analysis of its Engineering services, the costs reasonably borne by the City in providing its services, the beneficiaries of such services, and the revenues produced by those paying fees and charges for such services. The City retained an independent consultant, MGT of America Consulting (“MGT”), to conduct the analysis of the Engineering Division’s services and related costs. MGT collected data and interviewed City personnel as part of that analysis.
Public Works Department – Engineering Division has reviewed the fee schedule and made certain recommendations. MGT completed that certain Fee Study Final Report dated May 24, 2022. The Study is on file with the City Finance Department and is incorporated by this reference. The Study sets forth a mechanism to ensure that fees adopted by the City do not exceed the reasonable estimated cost for providing the services for which the fees are charged; and
WHEREAS, pursuant to Government Code Sections 66014 and 66018, the specific fees to be charged for certain services must be adopted by resolution,
following notice and public hearing; and
WHEREAS, the Public Works Department – Engineering Division has reviewed the fees charged for such services, and with the approval of the City Manager, recommend the adoption of certain fees; and
WHEREAS, based upon all written and oral reports and presentations to Council, including the Agenda Report and the Attachment thereto, the City Council finds and determines that the proposed modifications and additions to the Master Fee Schedule set forth herein are necessary to reimburse the City for the costs of performing the various Public Works - Engineering Division functions, and that these fees do not exceed the proportional cost of the service or benefit attributable to the fee payer.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
VALLEJO, CALIFORNIA, DOES HEREBY DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. Notice of the public meeting and public hearing at which this Resolution was considered was properly given, and all oral and written presentations made to and heard by the City Council were properly considered under California Government Code Sections 66016 and 66018.
SECTION 2. Pursuant to Government Code Sections 66014 and 66018, the specific fees to be charged for certain services must be adopted by resolution, following notice and public hearing.
SECTION 3. The cost estimates produced by Public Works – Engineering Division staff and considered by the City Council in establishing fees under this Resolution are reasonable cost estimates for the provision of the Public Works - Engineering Division services to which the fees pertain and were made available to the public under Government Code Section 66016.
SECTION 4. This City Council hereby finds and determines that based upon the data, information, analysis, oral and written documentation presented to this City Council concerning the rates, fees, surcharges, and charges described in “Attachment 3” attached hereto and by this reference incorporated herein, the rates, fees, surcharges, and charges set forth in said “Attachment 3” do not exceed the estimated reasonable cost of providing the service for which the rates, fees, surcharges, or charges are levied.
SECTION 5. The rates, fees, surcharges, and charges set forth in “Attachment 3” are hereby adopted and approved as the rates, fees, surcharges, and charges for the services identified for each such rate, fee, surcharge, and/or charge.
SECTION 6. The rates, fees, and charges set forth in “Attachment 3” shall be effective and shall be implemented commencing January 1, 2023.
SECTION 7. FLAT FEES - Where applicable, flat fees have been established for certain services where the average cost is subject to minimum fluctuation. These flat fees are included on schedules incorporated into this resolution.
SECTION 8. HOURLY CHARGES - Where applicable, hourly charges shall be accumulated for development processing activities and the applicant shall pay all such costs prior to final action on the related project or as soon thereafter as such costs may be finally determined. The payment of such costs may be a condition of approval for any such application. If payment is not received within 7 working days after the invoice due date, all development processing activities will be suspended until payment is received.
SECTION 9. DEPOSITS - In cases where an hourly rate is being charged, as opposed to a flat fee, each applicant shall place on deposit with the City the sum of one-half of the estimated total fees. Deposits have been estimated to represent the minimum amount required to process each case type. The costs of an individual case may be significantly more than the initial deposit amount. Costs will be charged against the deposit until the development case deposit balance is less than ten percent (10%) of the total estimated cost at which time the applicant will be required to post an additional deposit equal to the estimated remaining fees. The applicant shall submit the additional deposit within 10 days of notice. If payment is not received within 10 working days after the notice, the City has the right to stop all development processing activities until payment is received. Any charges incurred in excess of the total deposits will be due prior to issuance of building permits. A late fee of ten percent (10%) shall be levied against delinquent development processing charges.
SECTION 10. REFUNDS - If the amount on deposit pursuant to Section 9 exceeds all accumulated costs at the time of the final action on subject application, the excess deposit shall be refunded to the applicant.
SECTION 11. The surcharges set forth in “Attachment 3” are hereby adopted and incorporated into the City’s fee schedule as shown in Attachment 3.
SECTIION 12. PERMIT STREAMLINING SURCHARGE – The Permit Streamlining Surcharge shall be three percent (3%) and shall be applied to all Building, Planning and Engineering fees, except those fees prohibited by state law.
SECTION 13. TECHNOLOGY SURCHARGE – The Technology Surcharge shall be four percent (4%) and shall be applied to all Building, Planning and Engineering fees, except those fees prohibited by state law.
SECTION 14. Specific engineering fees adopted under this resolution supersede all prior like and applicable fees from any and all previous resolutions and ordinances to the extent that they are inconsistent with the fees hereby adopted. Any and all fees and resolution provisions not inconsistent with the provisions of this resolution shall continue in full force and effect.
SECTION 15. Effective January 1, 2023, and each year thereafter, all fees in “Attachment 3”, unless otherwise noted, shall be administratively revised and increased annually by a factor equal to the net change in Public Works - Engineering Division salary and benefit costs for that fiscal year. Such net change is measured by comparing the total budgeted engineering salary and benefit costs for the fiscal year in which the change is to become effective to the total budgeted engineering salary and benefit costs for the prior fiscal year. Notwithstanding the foregoing, in no event shall the annual administrative revision described in this Section 15 apply to any fees and charges established by other agencies or as otherwise may be prohibited by applicable law.
SECTION 16. The City Manager shall have the authority to interpret the provisions of this resolution for purposes of resolving ambiguities. The City Manager shall have the authority to authorize and require reasonable compensation for the temporary use of City property or receipt of City services not otherwise provided for in this resolution or other applicable resolutions or ordinances. Such compensation shall be based upon the City’s fully burdened hourly rates or costs as described in the aforementioned Fee Study.
SECTION 17. The City Manager is authorized to waive, modify or amend fees on any matter in their reasonable discretion, provided that in no event may said fees be increasedr.
SECTION 18. The State of California requires cities to charge state-established fees, rates, and charges, which are paid to the State. The City Council hereby directs the City Manager to incorporate such State-imposed fees, rates and charges into the Master Fee Schedule, and every year hereafter.
SECTION 19. The restatement in the attached Fee Study of existing rates and amounts for previously imposed taxes, fees, and charges is for the purpose of administrative convenience and is not intended, and shall not be construed, as the imposition, extension, or increase of any such tax, fee, or charge.
SECTION 20. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Resolution or any part hereof is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portion of this Resolution or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared invalid or unconstitutional.
SECTION 21. If any portion of this Resolution is declared invalid or unconstitutional then it is the intention of the City Council to have passed the entire Resolution and all its component parts, and all other sections of this Resolution shall remain in full force and effect.
SECTION 22. If there are any conflicts between the Public Works - Engineering Division fees adopted in this resolution and Public Works - Engineering Division fees adopted by any prior resolution or fee schedule, the Public Works - Engineering Division fees adopted pursuant to this resolution shall take control. If there are any conflicts between the portion of the Fee Study set forth in this resolution and any prior fee schedule, the portion of the Fee Study attached to this resolution shall control.
SECTION 23. This resolution shall take effect January 1, 2023.
Adopted by the City Council of the City of Vallejo at a regular meeting held on December 13, 2022, with the following vote:
AYES:
NOES:
ABSENT:
____________________________________
ROBERT H. McCONNELL, MAYOR
ATTEST: _____________________________________
DAWN G. ABRAHAMSON, CITY CLERK
CITY OF V ALLEO
PUBLIC WORKS DEPARTMENT
USER FEE STUDY
MAY 24, 2022
TABLE OF CONTENTS
2 SECTION 1
Executive Summary
SECTION 1
Executive Summary
Introduction
MGT Consulting Group (MGT) is pleased to present the City of Vallejo with this summary of findings for the recently completed Public Works department user fee study.
MGT analyzed Public Works department fees in 2017. In late 2021, the City contracted with MGT to perform a user fee study update for the Public Works department using fiscal year 2020/2021 budgeted figures, staffing and operational information. The current City fees represent the fees being charged at the beginning of this study.
This report is the culmination of an extensive study conducted by MGT in collaboration with Public Works staff. MGT would like to take this opportunity to gratefully acknowledge all staff who participated on this project for their efforts and coordination.
Study Scope and Objectives
3 This study included a review of fee-for-service activities within the following areas:
Public Works
SECTION 1
Executive Summary
4 Study Findings
The study's primary objective is to provide the City's decision-makers with the basic data needed to make informed pricing decisions. This report details the full cost of services and presents recommended fee adjustments and their fiscal impact. Recommendations are based on careful consideration of the results of the cost analysis, industry best practices and market comparisons.
The exhibit on the following page displays the average cost recovery rates and FY 2020/2021 budgeted revenues of each department into the following categories:
Column A, User Fee Costs –$396,325 of the department’s costs are related to user fee services.
It is this $ 396,325 that is the focus of this study and represents the total potential for user fee- related revenues for the City. These results exclude recreation..
Column B, Current Revenues – Based on current individual fee levels, the department generates fee-related revenues of $378,528 and is experiencing an 96% overall cost recovery level. Current cost recovery levels for the departments range from 74% to 100%.
Column C, Current Subsidy – Current fee revenues recover 96% of full cost, leaving 4% or $17,797 to be funded by other funding sources. This $ 17,797 represents an opportunity for the City to adjust fees and revenues within the various departments.
Column D, Recommended Recovery – Adjusting fees to the proposed cost recovery, based on the City’s User Fee Policy would balance the specified fee revenue to $397,825. This would set the overall cost recovery level at 100%.
Column E, Increased Revenue – $ 397,825 in potential revenue could be generated. This would represent a $19,243 increase in the revenue currently being collected for these activities by the department on an annualized basis. Management should take a conservative approach to increase revenue projections in light of the current Covid-19 pandemic, as it could reduce construction activity and revenue.
SECTION 1
Executive Summary
Study Findings continued..
5 * The proposed fee structures were changed significantly from their existing structure. Several categories were added, deleted, consolidated or broken-down into sub-categories. These changes were made primarily with the customer in mind to increase overall user-friendliness of the fee schedule. Due to the proposed comprehensive changes in fee structure, fiscal impacts are only estimates.
* Surcharges of 3% for permit streamlining and 4% for technology add an estimated $27,848 in additional revenue annually based on the annual volume in FY21. This totals annual estimated revenue of $425,673 for flat fees within the public works department. * The estimated annual revenues do not include revenues from percentage-of-cost based fees or deposit/time-based fees.
SECTION 1
Executive Summary
Methodology
6 MGT’s standard approach for analyzing the cost of providing fee-related services is commonly referred to as a “bottom-up” approach. The bottom-up approach was used to analyze all of the Department’s fees for service. A general description of the bottom-up approach is as follows:
1. Identify all direct staff time spent on the fee related activity or service MGT conducted a series of meetings to identify work directly in support of fee related services.
Direct staff costs are incurred by employees who are “on the front line” and most visible to the customers. Once all direct staff were identified, subject matter experts estimated how much time those employees spend, on average, performing each particular fee service.
Developing time estimates for fee related services can be challenging and staff should be commended for the time and effort they put into this. Although MGT provided direction with templates and other tools to assist them in developing average or “typical” time estimates, these calculations were necessarily developed by the subject matter experts within each fee area.
2. Calculate direct cost of the staff time for each fee using productive hourly rates “Productive hours” means the time staff are in their office or in the field. A full-time City employee typically has 2,080 paid hours per year (40 hours x 52 weeks). However, cost studies reduce this number to account for non-productive hours (sick leave, vacation, holidays, training days, meetings, etc.). MGT calculates the productive hourly rate for each staff classification by dividing annual salary and benefits by annual productive hour figures. The average productive hours for the City’s staff providing services ranged was 1,700 hours per year.
3. Determine indirect or “overhead” costs
Generally, there are two types of indirect costs: department (or division)-specific and citywide overhead. These indirect costs are allocated across user fee services in order to capture the full cost of providing the service. If a department performs non-fee related services, a commensurate amount of indirect cost is segregated and not allocated to the fee related services.
Departmental overhead costs – these costs include managers, supervisors, and support staff as well as other operational costs, such as materials and supplies that are incurred for a common purpose and not readily assigned to a particular service or program.
Centralized overhead costs – each department that charges fees receive support from central departments whose main function is to keep the County running. An example of a central service SECTION 1
Executive Summary
Methodology Continued…
7 department is Human Resources. These costs are distributed to each receiving department through the cost allocation plan.
4. Compare total costs to the current fee schedule
Once all direct and indirect costs are calculated, MGT compared the total cost for each fee- related service to the fee currently charged to the public. In most cases we found the total cost of providing a service exceeded the fee charged. In these instances, the fee can be increased to recover these subsidies, up to the maximum allowed fee. However, there were some services for which the total calculated cost was less than the fee charged. In these cases, the fee must be lowered to comply with State law.
5. Costs and revenues are annualized by incorporating annual volume figures Up to this point we have calculated fee costs and revenues on a per-unit basis. By incorporating annual volume figures into the analysis, we extrapolate the per-unit results into annual cost and annual revenue information. This annualization of results gives management an estimate of the fiscal impact of proposed fee adjustments.
Because annual volume will vary from one year to the next, these figures are estimates only. Actual revenue will depend on future demand level and collection rates.
6. Recommend fee adjustments
MGT provides fee adjustment recommendations based on full cost information, staff recommendations and industry best practices. Of course, MGT’s recommendations are advisory in nature only, ultimately the Board must decide what fee levels are appropriate.
Legal, Economic, & Policy Considerations
Calculating the true cost of providing City services is a critical step in the process of establishing user fees and corresponding cost recovery levels. Although it is a principal factor, other factors must also be given consideration. City decision-makers must also consider the effects that establishing fees for services will have on the individuals purchasing those services, as well as the community.
SECTION 1
Executive Summary
The following legal, economic and policy issues help illustrate these considerations. • Legal restrictions – In California user fees are limited to the "estimated reasonable cost of providing a service" by Government Code section 66014(a) and other supplementary legislation. Proposition 26 was approved by California voter in November of 2010 and clarified which charges are considered user fees and which are considered taxes. The significance of this distinction is that user fees may be raised by Council action up to the limit of actual cost, whereas taxes may not be increased without a majority vote of the public. None of the fee adjustments recommended by MGT are considered taxes per Proposition 26 guidelines. It should be noted that fees charged for the use of government property are exempt from Proposition 26. These include fees for parks and facility rentals as well as green fees, cart and other equipment rental fees. All of these fees may be set at a price the market will bear.
Legal, Economic, & Policy Considerations
8 • Economic barriers - It may be a desired policy to establish fees at a level that permits lower income groups to use services that they might not otherwise be able to afford. • Community benefit - If a user fee service benefits the community as a whole to some extent, it is appropriate to subsidize a portion of the fee. Development fees are typically considered to have zero community benefit, with the benefit accruing to the developer. • Private benefit - If a user fee primarily benefits the fee payer, the fee is typically set at, or close to, 100% full cost recovery. Development related fees generally fall into this category; however, exceptions are sometimes made for services such as appeal fees or fees charged exclusively to residential applicants.
• Service driver - In conjunction with the third point above, the issue of who is the service recipient versus the service driver should also be considered. For example, code enforcement activities benefit the community as a whole, but the service is driven by the individual or business owner that violates City code.
• Managing demand - Elasticity of demand is a factor in pricing certain City services; increasing the price of some services results in a reduction of demand for those services, and vice versa.
SECTION 1
Executive Summary
Legal Economic, & Policy Considerations
Continued…
• Managing demand - Elasticity of demand is a factor in pricing certain City services; increasing the price of some services results in a reduction of demand for those services, and vice versa.
• Competition - Certain services, such as park usage or facility rentals, may be provided by neighboring communities or the private sector, and therefore demand for these services can be highly dependent on what else may be available at lower prices. Furthermore, if the City's fees are too low, demand enjoyed by private-sector competitors could be adversely affected.
• Incentives - Fees can be set low to encourage participation in a service, such as obtaining a water heater permit.
• Disincentives - Penalties can be instituted to discourage undesirable behavior. 9 SECTION 2
Analysis Highlights
SECTION 2
Analysis Highlights
Below is a brief discussion of findings the department’s analysis. Please see the user fee summary sheets in Section 3 of this report for details on each fee calculation and cost analysis. 10 Public Works – MGT worked with Public Works staff to revised fees into an industry standard best practices format. The proposed fee schedule significantly streamlines and simplifies fee categories. Several new fees were added, and several fee sections were restructured. All fees are recommended at full cost recovery rates. Grading Fees– The grading plan check fee section was restructured. Five new fees were added to this section and are intended to breakout fee charges based on size (Cy).
These fees are set based on CY up to 1,000 cubic yards. Anything beyond 1,000 cubic yards will be charged based at 1.5% of the Engineer’s construction cost estimate. Stormwater Fees– This section was heavily restructured. Previously, these fees were charged via a deposit. Staff recommended to adopt fixed fees. In the past, deposits were useful as the amount of time and effort varied significantly from project to project. However, time tracking presented its own challenges which motivated staff to charge fixed fees. 11 new fees were added for this section based on occupancy type and size (square feet).
Planning Fee Support– The Public Works department heavily supports Planning across 21 fee categories. MGT analyzed these fees to calculate the annual cost of providing cross support to Planning. Based on FY21 annual volume, the cost for PW to support Planning is roughly $74,274 annually. PW is not recovering any of those revenues currently.
Surcharges– The Public Works department adds two different surcharges to their fees: a 3% permit streamlining surcharge and a 4% technology surcharge. MGT helped the department add those surcharges to their recommended fee amounts. Adding these two charges increased annual revenues by an estimated $27,848. Bringing the total annual revenue to an estimated $425,673.
SECTION 2
Analysis Highlights
Recommendations Going Forward:
MGT recommends that the City build on its investment in this cost-of-service analysis by continuing to analyze its fees and charges whether this is done by staff or outside consultants. Once the commitment is made to understand the full cost of providing services, it is important to review and update the analysis in order to keep pace with changes in service delivery, staffing changes, and demand levels.
Most of our agencies ask us at the conclusion of the study: how often should this type of study be undertaken? Our advice is to perform this detailed analysis at least every three but not more than five years, with minor adjustments in the non-study years (to keep pace with economic impacts).
MGT recommends the City apply an inflation adjustment to fees annually, based CPIfrom All Urban Consumers for the San Francisco Bay area to keep pace with inflation. The industry best practice is to apply this index once per year as part of the City’s annual budget process. This is particularly helpful once an agency has chosen to adopt a cost recovery policy –whether 100% of cost or something less – in order to keep fees at the desired level. 11 SECTION 3
User Fee Summary
Public Works
12 13
14 SECTION 4
Fee Schedule
Comparison Analysis
SECTION 4
Fee Schedule Comparison Analysis
A component of the Fee Analysis scope calls for a comparison of Vallejo’s fees against those charged by similar agencies. For Public Works fees, with help and recommendations from staff, MGT compared fee amounts and structure to the following agencies: Antioch, Concord, Fairfield, Richmond & Vacaville.
The purpose of this component is to give Vallejo an understanding of fee structures typical in the region. This analysis gives Vallejo management an opportunity to review fee structures and fee amounts employed by other agencies and emulate any as appropriate.
MGT understands the value of this information, but believes it is important to provide the following context: 1) unless MGT has performed a similar study for the surrounding jurisdiction, we do not know what cost components are included in the fees, 2) a simple comparison of fees does not provide the City with the knowledge of whether the neighboring city has a policy of full cost recovery, or something less than 100%, 3) service levels may vary widely from jurisdiction to jurisdiction, and 4) it can be difficult to ensure an exact match up of services when each agency describes a service in its own unique manner .
The following pages display the comparison analysis results. 15 MGT Consulting Group 16
MGT Consulting Group 17
(* Fees include a 7% surcharge when applicable)
Line
No. Service Name Fee Description Proposed Fee based
on MGT
Updated Fee based on
MGT with CPI Increase
Technology
Surcharge 4%
Permit
Streamlining
Surcharge 3%
FY 2022-23 Fee with
Surcharges (UPDATED) Footnotes
Excavation Permits
1 Excavation Permit Processing Fee Fee $671.18 $712.06 $28.00 $21.00 $761.06 2 Open Cut Excavations:
3 Excavation Insp Open Cut - 1 to 50 ft Fee $789.99 $838.10 $34.00 $25.00 $897.10 4 Excavation Insp Open Cut - 51 to 100 ft Fee $1,211.09 $1,284.85 $51.00 $39.00 $1,374.85 5 Excavation Insp Open Cut - 101 to 200 ft Fee $2,226.23 $2,361.81 $94.00 $71.00 $2,526.81 6 Excavation Insp Open Cut - each add'l 100 ft Fee $1,015.14 $1,076.96 $43.00 $32.00 $1,151.96 per each 100 feet above 200 7 Vertical Boring/Horizontal Directional Drilling Excavations:
8 Excavation Insp HDD - 1 to 50 Cft Fee $539.91 $572.79 $23.00 $17.00 $612.79 9 Excavation Insp HDD - 51 to 100 Cft Fee $908.80 $964.14 $39.00 $29.00 $1,032.14 10 Excavation Insp HDD - 101 to 200 Cft Fee $1,275.78 $1,353.47 $54.00 $41.00 $1,448.47 11 Excavation Insp HDD - each add'l 50 Cft Fee $421.10 $446.75 $18.00 $13.00 $477.75 per each 50 cubic feet above 200 12 Excavation Permit - Lower Lateral Replacement (the first 50') Fee $1,079.82 $1,145.58 $46.00 $34.00 $1,225.58 13 Consultant Review and/or Inspection Deposit + Consultant % of Cost-based-fees % of Cost-based-fees TBD TBD Actual Cost + 20% Dredging/Grading Services
Grading Plan Check - 1 to 50 cy $599.30 $635.80 $25.00 $19.00 $679.80 Broken down fees by MGT Grading Plan Check - 51 to 100 cy $665.89 $706.45 $28.00 $21.00 $755.45 Broken down fees by MGT Grading Plan Check - 101 to 1,000 cy (Initial 100 cy) $665.89 $706.45 $28.00 $21.00 $755.45 Broken down fees by MGT Grading Plan Check Fee for 101 - 1,000 Cubic Yards (Over 100 cy) $20.00 $21.22 $1.00 $1.00 $23.22 Broken down fees by MGT 14 Grading Plan Check Deposit + T/M % of Cost-based-fees % of Cost-based-fees TBD TBD Deposit + T/M Staff hourly rates identified below 15 Grading Inspection Deposit + T/M % of Cost-based-fees % of Cost-based-fees TBD TBD Deposit + T/M Staff hourly rates identified below 16 Consultant Review and/or Inspection Deposit + Consultant % of Cost-based-fees % of Cost-based-fees TBD TBD Actual Cost + 20% Site Development (on and offsite)
17 Improvement Plan Check Deposit + T/M % of Cost-based-fees % of Cost-based-fees TBD TBD Deposit + T/M Staff hourly rates identified below 18 Improvement Inspection Deposit + T/M % of Cost-based-fees % of Cost-based-fees TBD TBD Deposit + T/M Staff hourly rates identified below 19 Consultant Review and/or Inspection Deposit + Consultant % of Cost-based-fees % of Cost-based-fees TBD TBD Actual Cost + 20% Storm Water
Storm Water Plan Check - Single/Multi Family 2,500 to 9,999 SF 532.71$ $565.16 $23.00 $17.00 $605.16 Broken down fees by MGT Storm Water Plan Check - Single/Multi Family > 10,000 SF 947.24$ $1,004.93 $40.00 $30.00 $1,074.93 Broken down fees by MGT Storm Water Plan Check - Multi Family Residential Development > 10,000 SF - 51 or more Units 2,723.55$ $2,889.41 $116.00 $87.00 $3,092.41 Broken down fees by MGT Storm Water Plan Check - Gas/Auto Service, Restaurant, Parking Lot - All Gas Stations 2,190.84$ $2,324.26 $93.00 $70.00 $2,487.26 Broken down fees by MGT Storm Water Plan Check - Commercial/Industrial <2,499 SF -$ $0.00 $0.00 $0.00 $0.00 Broken down fees by MGT Storm Water Plan Check - Commercial/Industrial 2,500 to 9,999 SF 947.24$ $1,004.93 $40.00 $30.00 $1,074.93 Broken down fees by MGT Storm Water Plan Check - Commercial/Industrial 5,000 SF and Up - Less than 1 Acre 1,479.96$ $1,570.09 $63.00 $47.00 $1,680.09 Broken down fees by MGT Storm Water Plan Check - Commercial/Industrial 5,000 SF and Up - 1 to 4.99 Acres 2,279.03$ $2,417.82 $97.00 $73.00 $2,587.82 Broken down fees by MGT Surcharges
City of Vallejo Master Fee Schedule FY 2022-2023
Engineering Division - Fee Calculations
(* Fees include a 7% surcharge when applicable)
Line
No. Service Name Fee Description Proposed Fee based
on MGT
Updated Fee based on
MGT with CPI Increase
Technology
Surcharge 4%
Permit
Streamlining
Surcharge 3%
FY 2022-23 Fee with
Surcharges (UPDATED) Footnotes
Surcharges
City of Vallejo Master Fee Schedule FY 2022-2023
Engineering Division - Fee Calculations
Storm Water Plan Check - Commercial/Industrial 5,000 SF and Up - 5 Acres & Up 2,811.74$ $2,982.98 $119.00 $89.00 $3,190.98 Broken down fees by MGT Storm Water Plan Check - Residential Subdivisions 2,279.03$ $2,417.82 $97.00 $73.00 $2,587.82 Broken down fees by MGT 20 Storm Water Plan Check Flat -> Deposit % of Cost-based-fees % of Cost-based-fees TBD TBD Flat -> Deposit Staff hourly rates identified below 21 Storm Water Inspection Flat -> Deposit % of Cost-based-fees % of Cost-based-fees TBD TBD Flat -> Deposit Staff hourly rates identified below 22 Consultant Review and/or Inspection Deposit + Consultant % of Cost-based-fees % of Cost-based-fees TBD TBD Actual Cost + 20% Other Permits
23 Tree Trimming Permit (free) Fee TBD TBD Free
24 Tree Removal Permit, first Fee 59.00$ $62.59 $3.00 $2.00 $67.59 25 Tree Removal Permit, each additional tree on same property each 59.00$ $62.59 $3.00 $2.00 $67.59 26 Encroachment Permit Fee 421.00$ $446.64 $18.00 $13.00 $477.64 27 Hauling Permit, per load Fee 59.40$ $63.02 $3.00 $2.00 $68.02 28 Sidewalk and Driveway Permit - 1st 25 ft Fee 59.40$ $63.02 $3.00 $2.00 $68.02 29 Sidewalk and Driveway Permit - each add'l 25 ft Fee 59.40$ $63.02 $3.00 $2.00 $68.02 30 Working without Permit Penalty 500.00$ $530.45 $21.00 $16.00 $567.45 Other Services
31 Abandonment of ROW Fee 1,968.58$ $2,088.46 $84.00 $63.00 $2,235.46 Low Activity 32 Address Change/ Correction Fee 606.80$ $643.75 $26.00 $19.00 $688.75 Low Activity 33 Apportionment of Assessment Fee 2,959.92$ $3,140.18 $126.00 $94.00 $3,360.18 Low Activity 34 Benchmark Maintenance Fee Fee 237.61$ $252.08 $10.00 $8.00 $270.08 plus Public Notice Lists fee 35 Certificate of Map Correction Fee 356.42$ $378.13 $15.00 $11.00 $404.13 plus Public Notice Lists fee 36 City Property Rental Permit Per Day 1,825.22$ $1,936.38 $77.00 $58.00 $2,071.38 37 Data Request Fee % of Cost-based-fees % of Cost-based-fees TBD TBD T&M Staff hourly rates identified below Lot Line Adjustment 1,746.32$ $1,852.67 $74.00 $56.00 $1,982.67 Fees not on City's record 38 Flood Map Revision Fee 947.24$ $1,004.93 $40.00 $30.00 $1,074.93 39 Flood Plain Letter Fee 266.36$ $282.58 $11.00 $8.00 $301.58 40 Quit Claim (abandoned easement) Fee 1,213.60$ $1,287.51 $52.00 $39.00 $1,378.51 Low Activity 41 Recycle: Construction & Demo Debris Fee Fee 532.71$ $565.16 $23.00 $17.00 $605.16 42 Street Closure Permit Per Day 532.71$ $565.16 $23.00 $17.00 $605.16 Cul de sacs and school district: no
charge; Residential streets: $55; All
other streets: $586.
43 Street Name Change Fee 2,896.95$ $3,073.37 $123.00 $92.00 $3,288.37 44 Final Map 5 - 20 Lots Fee 8,391.52$ $8,902.56 $356.00 $267.00 $9,525.56 45 Final Map 21+ Lots Fee 12,341.38$ $13,092.97 $524.00 $393.00 $14,009.97 46 Parcel Map Fee 3,552.61$ $3,768.96 $151.00 $113.00 $4,032.96 47 Administrative Time Extention Fee 10.3% of orig. fee % of Cost-based-fees % of Cost-based-fees% of Cost-based-fees TBD 10.30% 48 Utility Easement Agreement Fee 1,658.12$ $1,759.10 $70.00 $53.00 $1,882.10 Staff hourly rates identified below (* Fees include a 7% surcharge when applicable)
Line
No. Service Name Fee Description Proposed Fee based
on MGT
Updated Fee based on
MGT with CPI Increase
Technology
Surcharge 4%
Permit
Streamlining
Surcharge 3%
FY 2022-23 Fee with
Surcharges (UPDATED) Footnotes
Surcharges
City of Vallejo Master Fee Schedule FY 2022-2023
Engineering Division - Fee Calculations
49 Deferred Improvement Agreement Deposit + T/M % of Cost-based-fees % of Cost-based-fees TBD TBD Deposit + T/M Staff hourly rates identified below 50 Plot Plan Check Fee Deposit + T/M % of Cost-based-fees % of Cost-based-fees TBD TBD Deposit + T/M 51 Consultant Review and/or Inspection Deposit + Consultant % of Cost-based-fees % of Cost-based-fees TBD TBD Actual Cost + 20% 52 Map Amendment 25% of applicable map fee % of Cost-based-fees % of Cost-based-fees TBD TBD 25% of applicable map fee 53 Technology installations on City-owned Facilities Fee 2,896.95$ $3,073.37 $123.00 $92.00 $3,288.37 Staff Hourly Rates
Staff hourly rates for overtime will be
billed at 150% of the regular hourly rate
54 Sr. Civil Engineer Hourly Rate 173$ $183.96 $7.00 $6.00 $196.96 55 Associate Civil Engineer Hourly Rate 148$ $157.20 $6.00 $5.00 $168.20 56 Assistant Civil Engineer Hourly Rate 133$ $141.29 $6.00 $4.00 $151.29 57 Sr. Engineering Technician Hourly Rate 142$ $150.97 $6.00 $5.00 $161.97 58 Engineering Technician II Hourly Rate 119$ $126.04 $5.00 $4.00 $135.04 Staff hourly rates identified above 59 Consultant Review and/or Inspection Deposit + Consultant % of Cost-based-fees % of Cost-based-fees n/a n/a Actual Cost + 20% 60 Traffic Impact Analysis - Staff Deposit + T/M % of Cost-based-fees % of Cost-based-fees n/a n/a Deposit + T/M 61 Traffic Impact Analysis - Consultant Deposit + Consultant % of Cost-based-fees % of Cost-based-fees n/a n/a Actual Cost + 20% ACTION ITEM 9.D.
DATE: December 13, 2022
TO: Mayor and Members of the City Council
FROM: Mike Malone, City Manager
SUBJECT: INTRODUCE AN ORDINANCE AMENDING CHAPTER 2.52 OF THE VALLEJO
MUNICIPAL CODE RELATED TO COMPENSATION OF THE MAYOR AND COUNCIL
RECOMMENDATION
Introduce an Ordinance amending Chapter 2.52 of the Vallejo Municipal Code related to compensation of the Mayor and Council
REASONS FOR RECOMMENDATION
Vallejo City Council directed staff to come back at a future meeting to discuss a potential increase to Council salaries. The salary amounts that the Mayor and City Council of the City of Vallejo receive are less than the amounts authorized by state law. Section 305 and 206 of the Charter set forth the bounds of compensation for City Council members, and the Mayor, respectively. Specifically, Section 305 requires that compensation is fixed by ordinance and shall not exceed the amount which the City Council of a general law city, of a comparable population, can prescribe under the provisions of State law. In 2009, the Council positions received their last compensation increase. The Mayor’s salary was increased to $3,066.67 monthly and the rest of the Council’s salary was increased to $1,166.67 per month. This was enacted via Ordinance 1616.
BACKGROUND AND DISCUSSION
Per the City Charter, the City Council may increase the members’ salary up to the maximum permitted by state law through the adoption of an ordinance. California Government Code section 36516 authorizes a city to provide its city council members with an initial salary of between $300 and $1,000 per month, depending upon the city's population. In cities over 75,000 up to and including 150,000 in population, compensation is set forth as up to and including six hundred dollars ($600) per month. In 2009, the Mayor’s salary was increased to $3,066.67 monthly and the rest of the Council’s salary was increased to $1,166.67. This was enacted via Ordinance No. 1616.
A directly elected mayor may be provided with compensation in addition to that which he or she receives as a council member (§36516.1). That additional compensation may be provided by an ordinance adopted by the city council or by a majority vote of the electors voting on the proposition at a municipal election.
According to the 2020 federal census, the City of Vallejo population is 126,090. Section 36516.5 also authorizes an increase in Council salaries in an amount not to exceed 5% for each calendar year from the operative date of the last adjustment. Thus, if the Council wishes to adjust compensation, it can adopt an ordinance to do so based upon this formula.
Vallejo is a charter city and therefore can specify through an ordinance who is eligible to receive an adjusted salary and when it can become effective.
Compensation Comparisons
Staff conducted a review of neighboring jurisdiction council compensation packages to determine how the City
Date: December 13, 2022
Subject: INTRODUCE AN ORDINANCE AMENDING CHAPTER 2.52 OF THE VALLEJO
MUNICIPAL CODE RELATED TO COMPENSATION OF THE MAYOR AND
COUNCIL
of Vallejo’s generally compared in the market. Below are the current monthly compensation rates for comparison cities.
Vallejo: Mayor: $3,066.67; Council: $1,166.67
Benicia: Mayor: $525.09; Council: $393.59
Suisun: Mayor and Council: $654.86
Richmond: Mayor: $3,875; Council: $1,402.50
Dixon: Mayor: $630; Council: $535.50
Napa: Mayor: $2,870; Council: $1,435
Fairfield: Mayor: $1,500; Council: $1,300
Berkeley: Mayor: $5,108.71; Council: $3,224.58
Antioch: Mayor and Council: $1,600.04
Vacaville: Mayor and Council: $829.00
American Canyon: Mayor and Council: $315
Hercules: Mayor and Council: $792
Pinole: Mayor and Council: $6750
Options before the Council this evening are:
1. Per Section 305 of the Vallejo City Charter, introduce an ordinance, in accordance with the authorization allowable via formula as prescribed by section 36516, to increase compensation up to a maximum of 5% per year since the date of the last increase, or 60%.
2. It is well-established that the compensation paid to officers and employees of charter cities is a municipal affair subject to the city charter. If compensation is desired differing from state law, Council can direct staff to return to Council prior to the 2024 General Election to introduce an Ordinance to Place an item on the 2024 ballot to amend the City Charter.
FISCAL IMPACT
Current annual cost of salaries and benefits for all members is $248,767. The proposal to increase salary by 60% will have an annual impact of $85,524. Fiscal impact for the remaining 6 months of the current fiscal year will be $42,762.
Adopted
Budget
Proposed
Increase
Updated
Amounts
Net
increase
(Full-year)
Net
increase
for
balance
FY
Description
Base Salaries @
$14,000
102,900
60%
164,640
61,740
30,870
Date: December 13, 2022
Subject: INTRODUCE AN ORDINANCE AMENDING CHAPTER 2.52 OF THE VALLEJO
MUNICIPAL CODE RELATED TO COMPENSATION OF THE MAYOR AND
COUNCIL
Additional
Compensation - Mayor
22,800
-
22,800
-
Benefits
123,067
-
146,851
23,784
11,892
Total Wages
248,767
334,291
85,524
42,762
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has the potential to result in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
ATTACHMENTS
1. Ordinance Amending Chapter 2.52 Re_Compensation of Mayor and Council_CAO Stamp 12.13.22
CONTACT
Terrance Davis, Assistant City Manager (707) 648-4301
[email protected]
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VALLEJO AMENDING CHAPTER 2.52 OF THE VALLEJO MUNICIPAL CODE RELATED TO
COMPENSATION OF THE MAYOR AND COUNCIL
[Deleted text is shown in strikethrough;
added text is shown in bold italic]
THE CITY COUNCIL OF THE CITY OF VALLEJO DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 2.52.010 of the Vallejo Municipal Code is hereby amended to read as follows:
2.52.010 – Annual Salary.
The mayor and each council member shall receive an annual salary, payable in equal monthly installments in accordance with the provisions of Charter Section 305. Effective January 128, 200923, the annual salary of the mayor and each council member shall be increased to the sum of fourteen thousand seven hundred twenty-three thousand five hundred dollars per annum.
SECTION 2. Severability
If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact one or more provisions may be declared invalid.
SECTION 3. Effective Date.
This Ordinance shall take effect and be in full force and effect from and after thirty (30) days after its final passage.
Adopted by the City Council of the City of Vallejo at a regular meeting held on December 20, 2022, with the following vote:
AYES:
NOES:
ABSENT:
____________________________________
ROBERT H. McCONNELL, MAYOR
ATTEST: _____________________________________
DAWN G. ABRAHAMSON, CITY CLERK