Agenda packet — Vallejo City Council, September 24, 2024 (part 6 of 6)

Addendum to Standard Industrial/Commercial Land Lease – Gross by and between
Blue Rock Springs, LLC, a Delaware limited liability company, as Lessor and City of Vallejo, a municipal corporation, as Lessee
This Addendum is incorporated into and made a part of that certain AIRCRE Standard Industrial/Commercial Land Lease – Gross (“Lease”), dated for reference purposes as of December ___, 2022, as described above (“Addendum”). In the event of any conflict between the terms of the Lease and the terms of this Addendum, the terms of this Addendum shall prevail.

2.2 The existing text of Paragraph 2.2 is deleted and replaced with the following:

2.2 Condition; As-Is. Premises is leased to Lessee on an “as-is” basis, and notwithstanding anything to the contrary herein shall be maintained by Lessee to maintain its as-is condition. Lessor makes no representations or warranties as to the Premises, the land, or any improvements located thereon (including without limitation any and all structures; any and all existing electrical, plumbing, drainage, or lighting improvements; or any and all utilities), in any respect, including its suitability for Lessee’s intended purpose or compliance with the requirements of the Americans with Disabilities Act. Other than as is expressly required by this Lease, Lessor shall have no obligation to maintain or repair the Premises.

2.3 The existing text of Paragraph 2.3 is deleted and replaced with the following:

2.3 Compliance. Lessor makes no representations or warranties that the Premises or the improveme nts located thereon comply with the building codes, applicable laws, covenants or restrictions or record, regulations and ordinances (“Applicable Requirements”) that are in effect as of the Commencement Date or were in effect at the time that such improvements, or portion thereof, were constructed. Lessee is responsible for determining whether or not the Applicable Requirements, and especially the zoning, are appropriate for Lessee’s intended use, and acknowledges that past uses of the Premises may no longer be allowed. Lessee shall comply with the Applicable Requirements at its sole cost and expense.

9. The existing text of Paragraph 9 is deleted and replaced with the following:

9. Damage or Destruction. Except for any damage to the Premises caused by the sole gross negligence or willful misconduct of Lessor, Lessee shall have the sole responsibility to repair, if desired, any damage to or destruction of the Premises or the improvements located thereon. In the event that such damage results in the cessation of golf course operations or other Agreed Use for a period of more than 180 days, Lessor may terminate the lease, in its sole and absolute discretion. For the avoidance of doubt, Lessee does not assume any obligation to make repairs to the Premises in the event of damage or destruction of the Premises, and may terminate the lease in the event of damage or destruction, if desired.

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The following Paragraph 51 is appended to the Lease: “

51. Rescission; Survival. Notwithstanding anything to the contrary herein, Lessor and Lessee acknowledge that the December 20, 2022 Purchase and Sale Agreement and Joint Escrow Instructions between Lessee (as seller) and Lessor (as buyer) permits rescission of Lessor’s acquisition of the Premises in certain circumstances. In the event of rescission, this Lease shall terminate, and Rent due to Lessor shall be prorated as of the date of termination.

The obligations established by Paragraphs 4 [Rent]; 6.2(b) [Duty to Inform Lessor]; 6.2(c) [Lessee Remediation]; 6.2(d) [Lessee Indemnification]; 6.2(f) [Investigations and Remediations]; 8.7 [Indemnity]; 8.8 [Exemption of Lessor and its Agents from Liability];

8.9 [Failure to Provide Insurance]; 10.2 [Payment of Taxes]; 10.5 [Personal Property Taxes]; 11.1 [Utilities and Services]; 31 [Attorneys’ Fees] of this Lease shall survive termination of the Lease for a period of four (4) years.

IN WITNESS WHEREOF, the Parties have executed the Lease and this Addendum as of December ___, 2022.

THE CITY OF VALLEJO
a municipal corporation
_____________________________________
By: Michael Malone
Its: City Manager
Executed at: ___________________
On: __________________________

BLUE ROCK SPRINGS, LLC
a Delaware limited liability company
By: LEWIS MANAGEMENT CORP.,
a Delaware corporation
Its: Manager
_______________________________
By: John Goodman
Its: Chief Executive Officer and
Executive Vice President
Executed at: ___________________
On: __________________________
ATTEST:
_____________________________________
By: Dawn Abrahamson
Its: City Clerk
Executed at: ___________________
On: __________________________
DocuSign Envelope ID: DD048B7C-3F32-4019-B775-453A28F31325 Terrance Davis
acting City Manager
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APPROVED AS TO CONTENT:
_____________________________________
By: Gillian Hayes
Its: Assistant City Manager
Executed at: ___________________
On: __________________________
APPROVED AS TO FORM:
_____________________________________
By: Veronica A. F. Nebb
Its: City Attorney
Executed at: ___________________
On: __________________________
APPROVED AS TO INSURANCE:
_____________________________________
By: Armond Sarkis
Its: Risk Manager
Executed at: ___________________
On: __________________________
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City of Vallejo
Blue Rock Springs, LLC
Blue Rock Springs
Deposit and Indemnification Agreement
THIS DEPOSIT AND INDEMNIFICATION AGREEMENT (“Agreement”) is entered into this 26th day of February, 2023 (“Effective Date”), between Blue Rock Springs, LLC, a Delaware limited liability company (“Applicant”), and the CITY OF VALLEJO, a municipal corporation organized and existing under the laws of the State of California (“City”).

This Agreement is predicated upon the following findings:

A. On December 28, 2022, Applicant acquired from the City – pursuant to that certain December 20, 2022 Purchase and Sale Agreement and Joint Escrow Instructions (“Purchase Agreement”) – a portion of the real property on which Blue Rock Springs golf course is located, commonly known as 655 Columbus Parkway, Vallejo, California, and more specifically described as a portion of each of Solano County Assessor ’s Parcel Numbers APN 0081-040-100, 0081 -040-880, 0081-191-010, 0081-040-110, and 0181 - 190-010 (“Property”).

B. Applicant intends to submit an application (the “Application”) to develop the Property with certain residential and commercial improvements (“Project”). The scope of the Project has yet to be determined.

C. The proposed Project will be subject to a comprehensive planning and environmental review process, which is currently planned by Applicant to include a General Plan Amendment, Planned Development Permit, Master Plan re-zoning of the Property, submittal of a Parcel Map to divide sections for the property for commercial and/or multifamily development, and a Tentative Map to further subdivide portions of the Property for single family home development.

D. Public Resource Code section 21082.1 authorizes the City to enter into agreements for completion of environmental documents for a project, and Public Resource Code Section 21089 authorizes the City to collect fees to recover the costs from the Applicant for the preparation of these documents.

E. Based on the expertise needed to prepare additional information and analysis in connection with the Application, the City will need to obtain services from City-Designated consultants, on the condition that the Applicant pay the City for its expense in contracting for such services. Cit y anticipates engaging a qualified “Planning Consultant,” “Legal Consultant,” “Environmental Review Consultant,” and “Financial Consultant ,” the identities of whom shall be subject to Applicant ’s approval, which approval shall not be unreasonably withheld, conditioned, or delayed.

The intent of this Agreement is to set forth procedures and a funding mechanism for payment to the City by the Applicant relating to the consulting services rendered by the DocuSign Envelope ID: F39EDF5A-CCA8-46B1-9037-4F5971E34B45 DocuSign Envelope ID: 3417DF61-F11D-4FDE-BF05-90FCDAE8CF80 DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA

2 Reimbursement Agreement – Blue Rock Springs
Planning Consultant, Legal Consultant, Environmental Review Consultant, and Financial Consultant for the preparation of documents associated with the Application review process, as more fully described in the following documents, which shall be completed and appended to this Agreement by amendment prior to submittal of the Application. § Exhibit A: Planning Consultant Scope of Work § Exhibit B: Legal Consultant Scope of Work § Exhibit C: Environmental Review Scope of Work § Exhibit D: Financial Consultant Scope of Work The above consultant services shall be collectively described and referred to as “Professional Services” and the above consultants referred to as the “Professional Services Consultants” or “Consultants”. NOW, THEREFORE, in consideration of the mutual promises set forth herein, the parties agree as follows: 1. Payment for Professional Services. City will contract directly with the Professional Services Consultants for the Professional Services to provide contract planning, legal and environmental consulting services including but not limited to preparation of a staff report and resolutions, analysis of project economics and of an Initial Study and Environmental Determination. Applicant will pay City for all costs associated with or arising out of the contracts for Professional Services to the extent that they relate to the Project. It is understood that these costs are in addition to any generally applicable processing or development fees which may also be due to the City. Applicant agrees to be liable to City for any costs resulting from the Professional Services contracted by City on behalf of Applicant’s project. The Applicant further agrees that the City shall add a 20% administrative fee per the City of Vallejo fee schedule made effective July 1, 2022. This fee shall cover all administrative expenses related to the City’s coordination of the consultants plus review of environmental documents. 2. Deposits. Based on the work and estimates detailed in Exhibits A-C, and the 20% administrative fee, Applicant shall deposit the initial sum of One Hundred Thousand Dollars ($100,000.00) with the City to complete the work necessary to process the Application to completion for consideration by the City Council. The Deposit shall be made no earlier than the latter of (a) February 27, 2023, i.e., 60 calendar days after Applicant acquired the Property; or (b) 90 days prior to the submittal of development applications; pursuant to Section 6(c)(ii) of the Purchase Agreement. The City will hold the Deposit and charge invoices received from the Professional Services Consultants listed above against the Deposit. In the event the scope of work in Exhibit A, B, C and/or D changes through the course of rendering Professional Services because additional or different work is necessary to process the Application to completion for consideration by City Council, and additional funds are required, a new and additional sequential Exhibit shall be created and incorporated into this Agreement. The City shall notify the Applicant of the additional work and the amount of additional Deposit required consistent with the new scope of work. Any such additional Deposits shall be made within 15 days of receiving notice from DocuSign Envelope ID: F39EDF5A-CCA8-46B1-9037-4F5971E34B45 DocuSign Envelope ID: 3417DF61-F11D-4FDE-BF05-90FCDAE8CF80 DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA

3 Reimbursement Agreement – Blue Rock Springs
the City. Applicant shall continue to make such Deposits until all of City’s costs for Professional Services are paid. In the event the required deposits are not received within 15 days of the notice, City shall immediately communicate to the Professional Services Consultants to cease work so as not to incur unfunded costs. In the event that funds remain on deposit at the conclusion of the Professional Services contemplated by this Agreement, or upon the early termination of this Agreement as set forth in Section 20, they shall be refunded to Applicant. 3. Binding Effect of Agreement. The burdens of this Agreement shall apply to and bind and the benefits of the Agreement inure to the successors in interest to the parties to it. 4. Relationship of Parties. a. It is understood that the contractual relationships between the City and the Professional Services Consultants is such that they are independent contractors. b. City and Applicant agree that nothing contained herein or in any document executed in connection herewith shall be construed as making Applicant and City joint venturers or partners. c. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision in this Agreement. 5. No Entitlements Granted. Nothing in this Agreement shall commit or otherwise require the City, or be interpreted as committing or requiring the City, to approve the Project, or any portions thereof, or provide Applicant with any right to secure approval of any development plan, building permit or other entitlement for the Project or otherwise. Professional Services Consultants shall prepare said reports so as to be accurate and objective as reasonably possible. It is further agreed that in all matters pertinent to Applicant, the Professional Service Consultants and their subconsultants shall act solely as the consultants to the City and shall not act, in any capacity as consultants to, representative of, or agent of the Applicant. The Applicant shall not engage in communications or contact with the Professional Services Consultants and their subconsultants without prior written authorization of the City which shall not be unreasonably withheld. 6. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by certified mail, postage prepaid, return receipt requested, to the principal offices of the City and Applicant and its representative and Applicants’ successors and assigns. Notice shall be effective on the date it is delivered in person, or the date when the postal authorities indicate the mailing was delivered to the address of the receiving party indicated below:

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4 Reimbursement Agreement – Blue Rock Springs
Notice to City: Gillian Hayes Assistant City Manager City Manager’s Office City of Vallejo 555 Santa Clara Street Vallejo, CA 94590 Email: [email protected] Phone: (707) 648-4576 With a copy to: Veronica Nebb City Attorney’s Office 555 Santa Clara Street Vallejo, CA 94590 Email: [email protected] Phone: (707) 648-4456 Notice to Applicant: Blue Rock Springs, LLC c/o Lewis Management Corp. 1156 North Mountain Avenue P.O. Box 670 Upland, CA 91786 Blue Rock Springs, LLC c/o Lewis Management Corp. 9216 Kiefer Blvd. Sacramento, CA 95826 With a copy to: Corie A. Edwards Reuben, Junius & Rose, LLP One Bush Street, Suite 600 San Francisco, CA 94104 Email: [email protected] Phone: (415) 567-9000 7. Indemnification, Defense and Hold Harmless. a. Applicant agrees to and shall indemnify, defend and hold the City, its council members, officers, agents, environmental consultants, employees and representatives harmless from liability for damage or claims of damage, for personal injury, including death, and claims for property damage to the extent caused by the negligence or willful acts of Applicant in connection with this Agreement. b. Applicant’s obligation under this section to indemnify, defend and hold harmless the City, its council members, officers, agents, professional services consultants, employees, and representatives shall not extend to liability for damage or claims for damage arising out of (i) the sole negligence or willful act of the City, its council members, officers, agents, employees or representatives or (ii) the negligence or willful misconduct of the Professional Services Consultants or their employees. In addition, Applicant’s obligation shall not extend to any award of punitive damages against the City resulting from the conduct of the City, its council members, officers, agents, employees or representatives. c. With respect to any action challenging the validity of this Agreement or any environmental, financial or other documentation related to approval of this Agreement, Applicant further agrees to defend, indemnify, hold harmless, pay all damages, costs and fees, if any incurred to either the City or plaintiff (s) filing such an action should a court award plaintiff(s) damages, costs and fees, and to provide a defense for the City in any DocuSign Envelope ID: F39EDF5A-CCA8-46B1-9037-4F5971E34B45 DocuSign Envelope ID: 3417DF61-F11D-4FDE-BF05-90FCDAE8CF80 DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA

5 Reimbursement Agreement – Blue Rock Springs
such action with legal counsel selected by Applicant and approved by the City. The City may elect, at its discretion, to participate in the defense of any such action. 8. Amendments. No amendment of this Agreement shall be valid or binding unless made in writing, signed, and duly authorized on behalf of both parties. 9. No Third Party Beneficiaries. This Agreement is solely for the benefit of the parties, and it does not, nor is it intended to, create any rights in favor of or obligation owing to any third parties. 10. Administrator. The City employee with responsibility for administering this Agreement is Michael Nimon or other employee as designated by the City Manager. 11. Integration Clause. This Agreement contains the entire agreement between the parties and supersedes whatever oral or written understanding they may have had prior to the execution of this Agreement. 12. Severability Clause. Should any provision of this Agreement ever be deemed to be legally void or unenforceable, all remaining provisions shall survive and be enforceable. 13. Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 14. Waiver. Waiver by either party of any default, breach or condition precedent shall not be construed as a waiver of any other default, breach or condition precedent or any other right hereunder. 15. Public Record. This Agreement and all written non-privileged documents prepared pursuant to this Agreement shall be maintained as a public record. 16. Ambiguity. The parties acknowledge that this is a negotiated agreement, that they have had the opportunity to have this Agreement reviewed by their respective legal counsel, and that the terms and conditions of this Agreement are not to be construed against any party on the basis of such party’s draftsmanship thereof. 17. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Litigation arising out of or connected with this Agreement 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.

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6 Reimbursement Agreement – Blue Rock Springs

18. Counterparts. The parties may execute this Agreement in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument. 19. Authority. The person signing this Agreement for Applicant hereby represents and warrants that he/she is fully authorized to sign this Agreement on behalf of Applicant. 20. Termination. The withdrawal of the Application by Applicant constitutes the early termination of this Agreement. Upon such early termination, any portion of the Deposit that remains after the payment of all outstanding invoices from the Consultants for all Professional Services performed through the early termination date shall be returned to Applicant by the City within 15 days after such termination. (SIGNATURES ARE ON FOLLOWING PAGE) DocuSign Envelope ID: F39EDF5A-CCA8-46B1-9037-4F5971E34B45 DocuSign Envelope ID: 3417DF61-F11D-4FDE-BF05-90FCDAE8CF80 DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA 7 Reimbursement Agreement – Blue Rock Springs
IN WITNESS WHEREOF this Agreement has been executed by the parties on the day and year first above written.

BLUE ROCK SPRINGS, LLC,
a Delaware limited liability company
By: LEWIS MANAGEMENT CORP.,
a Delaware corporation
Its: Manager
By: John M. Goodman
Its: Chief Executive Officer and
Senior Executive Vice
President
(City Seal)

CITY OF VALLEJO,
a municipal corporation
By:

Michael Malone
City Manager
ATTEST:

By:

Dawn G. Abrahamson
City Clerk
APPROVED AS TO CONTENT:

Gillian Hayes
Assistant City Manager
APPROVED AS TO FORM:

Veronica A. F. Nebb
City Attorney
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FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT AND

JOINT ESCROW INSTRUCTIONS
This First Amendment to Purchase and Sale Agreement and Joint Escrow Instructions (“Amendment”) is made and entered by and between The City of Vallejo, a municipal corporation (“City”) and Blue Rock Springs, LLC, a Delaware limited liability company, or its assignee (“ BRS”) (each a “Party,” and collectively, “Parties”), dated for reference purposes as of January 20, 2023. City and BRS do mutually agree as follows:

RECITALS
This Amendment is made with reference to the following facts, which the Parties agree are true and accurate:

A. City and BRS are parties to that certain Purchase and Sale Agreement and Joint Escrow Instructions dated as of December 20, 2022 (“Agreement”), pursuant to which BRS agreed to acquire the Subject Property.

B. Escrow closed on BRS’ acquisition of the Property on or about December 28, 2022.

C. Section references and capitalized terms not defined in this Amendment shall have the meanings given to them in the Agreement.

NOW, THEREFORE, in consideration of the foregoing, and the mutual promises and covenants contained in this Agreement, the receipt and adequacy of which is acknowledged, the Parties, intending to be legally bound, agree as follows:

AGREEMENT
The Recitals set forth in the introductory paragraphs of this Amendment constitute a material part of this Amendment , and are fully incorporated herein by this reference, as if set forth in their entirety.

1. Release of Subject Property from Loan Obligations. Section 6(a)(i) the Agreement shall be and hereby is amended to provide City until February 3, 2023 to record the Union Bank Documents. The date for Rescission to occur based on a failure to complete such recording shall be and hereby is similarly extended.

2. Ratification. The Agreement, as amended, is hereby ratified and the Parties hereby reaffirm their obligations under the Agreement, as so amended as described herein. Except as otherwise provided in this Amendment, the terms of the Agreement are not modified, altered or amended, and remain in full force and effect.
[SIGNATURES FOLLOW]
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IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above.

THE CITY OF VALLEJO
a municipal corporation
_____________________________________
By: Michael Malone
Its: City Manager

BLUE ROCK SPRINGS, LLC
a Delaware limited liability company
By: LEWIS MANAGEMENT CORP.,
a Delaware corporation
Its: Manager
_______________________________
By: John M. Goodman
Its: Chief Executive Officer and
Senior Executive Vice President
ATTEST:
_____________________________________
By: Dawn Abrahamson
Its: City Clerk
APPROVED AS TO CONTENT:
_____________________________________
By: Gillian Hayes
Its: Assistant City Manager
APPROVED AS TO FORM:
_____________________________________
By: Veronica A. F. Nebb
Its: City Attorney
DocuSign Envelope ID: 9CF9E1BF-C937-41B3-8DC8-0A7B4BA42D15 DocuSign Envelope ID: 3417DF61-F11D-4FDE-BF05-90FCDAE8CF80 DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA

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SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
This Second Amendment to Purchase and Sale Agreement and Joint Escrow Instructions (“ Second Amendment”) is made and entered by and between The City of Vallejo, a municipal corporation (“City”) and Blue Rock Springs, LLC, a Delaware limited liability company, or its assignee (“ BRS”) (each a “Party,” and collectively, “Parties”), dated for reference purposes as of April 14, 2023. City and BRS do mutually agree as follows:

RECITALS
This Second Amendment is made with reference to the following facts, which the Parties agree are true and accurate:

B. Escrow closed on BRS’ acquisition of the Property on or about December 28, 2022.

C. The Agreement was modified by that certain First Amendment to Purchase and Sale Agreement and Joint Escrow Instructions, dated for reference purposes as of January 20, 2023 (“First Amendment”).

D. Section references and capitalized terms not defined in this Second Amendment shall have the meanings given to them in the Agreement.

AGREEMENT
The Recitals set forth in the introductory paragraphs of this Second Amendment constitute a material part of this Second Amendment, and are fully incorporated herein by this reference, as if set forth in their entirety.

1. Participation Agreement. Section 6(d)(i) of the Agreement shall be and hereby is amended to provide that the Parties shall have one hundred eighty (180) days after Close of Escrow to negotiate and execute a Participation Agreement under the terms of the Agreement. The date for Rescission to occur based on a failure to negotiate and execute a Participation Agreement shall be and hereby is similarly extended.

2. Performance Agreement. Section 6(f)(i) shall be and hereby is amended to provide that the Parties shall have one hundred eighty (180) days after Close of Escrow to negotiate and execute a Performance Agreement under the terms of the Agreement. The date for Rescission to occur based on a failu re to negotiate and execute a Performance Agreement shall be and hereby is similarly extended.
[SIGNATURES FOLLOW]
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IN WITNESS WHEREOF, the Parties have executed this Second Amendment as of the date first written above.

THE CITY OF VALLEJO
a municipal corporation
_____________________________________
By: Michael Malone
Its: City Manager

BLUE ROCK SPRINGS, LLC
a Delaware limited liability company
By: LEWIS MANAGEMENT CORP.,
a Delaware corporation
Its: Manager
_______________________________
By: John M. Goodman
Its: Chief Executive Officer and
Senior Executive Vice President
ATTEST:
_____________________________________
By: Dawn Abrahamson
Its: City Clerk
APPROVED AS TO CONTENT:
_____________________________________
By: Gillian Hayes
Its: Assistant City Manager
APPROVED AS TO FORM:
_____________________________________
By: Veronica A. F. Nebb
Its: City Attorney
DocuSign Envelope ID: CA7E71B3-3E56-47A9-A2E2-A51CC791D3D3 DocuSign Envelope ID: 3417DF61-F11D-4FDE-BF05-90FCDAE8CF80 DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA

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THIRD AMENDMENT TO PURCHASE AND SALE AGREEMENT AND

JOINT ESCROW INSTRUCTIONS
This Third Amendment to Purchase and Sale Agreement and Joint Escrow Instructions (“ Third Amendment”) is made and entered by and between The City of Vallejo, a municipal corporation (“City”) and Blue Rock Springs, LLC, a Delaware limited liability company, or its assignee (“ BRS”) (each a “Party,” and collectively, “Parties”), dated for reference purposes as of June ___, 2023. City and BRS do mutually agree as follows:

RECITALS
This Third Amendment is made with reference to the following facts, which the Parties agree are true and accurate:

B. Escrow closed on BRS’ acquisition of the Property on or about December 28, 2022.

D. The Agreement was modified by that certain Second Amendment to Purchase and Sale Agreement and Joint Escrow Instructions , dated for reference purposes as of April 14, 2023 (“Second Amendment”)
E. Section references and capitalized terms not defined in this Third Amendment shall have the meanings given to them in the Agreement.

AGREEMENT
The Recitals set forth in the introductory paragraphs of this Third Amendment constitute a material part of this Third Amendment, and are fully incorporated herein by this reference, as if set forth in their entirety.

1. Participation Agreement. Section 6(d)(i) of the Agreement shall be and hereby is amended to provide that the Parties shall have two hundred seventy-six (276) days after Close of Escrow, i.e., until Friday, September 29, 2023, to negotiate and execute a Participation Agreement under the terms of the Agreement. The date for Rescission to occur based on a failure to negotiate and execute a Participation Agreement shall be and hereby is similarly extended.

2. Performance Agreement. Section 6(f)(i) shall be and hereby is amended to provide that the Parties shall have two hundred seventy-six (276) days after Close of Escrow, i.e., until Friday, September 29, 2023, to negotiate and execute a Performance Agreement under the terms of the 21 DocuSign Envelope ID: 9F03D4D1-A30A-4721-9938-0A24BB311621 DocuSign Envelope ID: 3417DF61-F11D-4FDE-BF05-90FCDAE8CF80 DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA

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Agreement. The date for Rescission to occur based on a failure to negotiate and execute a Performance Agreement shall be and hereby is similarly extended.

3. Form of Agreements. Notwithstanding the terms of Section 1 and 2 above, BRS and the City may elect to include both the Participation Agreement and Performance Agreement in one single agreement.

4. Ratification. The Agreement, as amended, is hereby ratified and the Parties hereby reaffirm their obligations under the Agreement, as so amended as described herein. Except as otherwise provided in this Third Amendment, the terms of the Agreement are not modified, altered or amended, and remain in full force and effect.
[SIGNATURES FOLLOW]
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IN WITNESS WHEREOF, the Parties have executed this Third Amendment as of the date first written above.

THE CITY OF VALLEJO
a municipal corporation
_____________________________________
By: Michael Malone
Its: City Manager

BLUE ROCK SPRINGS, LLC
a Delaware limited liability company
By: LEWIS MANAGEMENT CORP.,
a Delaware corporation
Its: Manager
_______________________________
By: John M. Goodman
Its: Chief Executive Officer and
Senior Executive Vice President
ATTEST:
_____________________________________
By: Dawn Abrahamson
Its: City Clerk
APPROVED AS TO CONTENT:
_____________________________________
By: Gillian Hayes
Its: Assistant City Manager
APPROVED AS TO FORM:
_____________________________________
By: Veronica A. F. Nebb
Its: City Attorney
DocuSign Envelope ID: 9F03D4D1-A30A-4721-9938-0A24BB311621 DocuSign Envelope ID: 3417DF61-F11D-4FDE-BF05-90FCDAE8CF80 DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA

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FOURTH AMENDMENT TO PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
This Fourth Amendment to Purchase and Sale Agreement and Joint Escrow Instructions (“ Fourth Amendment”) is made and entered into by and between the City of Vallejo, a municipal corporation (“City”) and Blue Rock Springs, LLC, a Delaware limited liability company, or its assignee (“ BRS”) (each a “Party,” and collectively, “Parties”), dated for reference purposes as of September 1, 2023.

RECITALS
A. City and BRS are parties to that certain Purchase and Sale Agreement and Joint Escrow Instructions dated as of December 20, 2022 (“Agreement”), pursuant to which BRS agreed to acquire that certain real property commonly known as 655 Columbus Parkway, Vallejo, California (“Subject Property”).

B. Escrow closed on BRS’ acquisition of the Subject Property on or about December 28, 2022.

C. Section 6(d)(i) and 6(f)(i) of the Agreement provide that the Parties may extend the time period in which to negotiate and execute a Participation Agreement and Performance Agreement, respectively, subject to a written agreement executed by both Parties extending such deadline.

D. Section references and capitalized terms not defined in this Fourth Amendment shall have the meanings given to them in the Agreement.

AGREEMENT
The Recitals set forth in the introductory paragraphs of this Fourth Amendment constitute a material part of this Fourth Amendment, and are fully incorporated herein by this reference, as if set forth in their entirety.

1. Participation Agreement; Performance Agreement . Section 6(d)(i) and 6(f)(i) of the Agreement shall be and hereby are amended to provide that the Parties shall have four hundred fifty-six (456) days after Close of Escrow, i.e., until Wednesday, March 27, 2024, to negotiate and execute a Participation Agreement and Performance Agreement, respectively. The date for Rescission to occur based on a failure to negotiate and execute such agreement(s) shall be and hereby is similarly extended.

2. Ratification. The Agreement, as amended, is hereby ratified and the Parties hereby reaffirm their obligations under the Agreement, as so amended as described herein. Except as otherwise provided in this Fourth Amendment, the terms of the Agreement are not modified, altered or amended, and remain in full force and effect.

DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA

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IN WITNESS WHEREOF, the Parties have executed this Fourth Amendment as of the date first written above.

CITY OF VALLEJO
a municipal corporation
_____________________________________
By: Michael Malone
Its: City Manager

BLUE ROCK SPRINGS, LLC
a Delaware limited liability company
By: LEWIS MANAGEMENT CORP.,
a Delaware corporation
Its: Manager
_________________________________
By: John M. Goodman
Its: Chief Executive Officer and
Senior Executive Vice President
ATTEST:
_____________________________________
By: Dawn Abrahamson
Its: City Clerk
APPROVED AS TO CONTENT:
_____________________________________
By: Gillian Hayes
Its: Assistant City Manager
APPROVED AS TO FORM:
____________________________________
By: Veronica A. F. Nebb
Its: City Attorney

DocuSign Envelope ID: DDDBA410-D9E5-4412-AAE5-EC18320956DA ACTION ITEM 9.A.

DATE: September 24, 2024
TO: Mayor and Members of the City Council
FROM: Veronica A.F. Nebb, City Attorney
SUBJECT: CONSIDERATION OF AN ORDINANCE ADDING CHAPTER 5.10 OF THE VALLEJO

MUNICIPAL CODE RELATING TO TOBACCO RETAIL LICENSING AND PROVIDE

DIRECTION TO STAFF REGARDING POSSIBLE MODIFICATIONS TO THE DRAFT

ORDINANCE

RECOMMENDATION
Consider the proposed Tobacco Retail Licensing Ordinance proposed as Chapter 5.10 of the Vallejo Municipal Code and provide direction to staff regarding any desired modifications to the draft ordinance.

REASONS FOR RECOMMENDATION
Staff seeks direction from the Council based on the community input requested by the Council.

BACKGROUND AND DISCUSSION
The Council has directed staff to bring forward a Tobacco Retail Licensing (TRL) Ordinance for review and approval to ensure that retailers comply with tobacco control laws and business standards, and to protect the health, safety, and welfare of the community, particularly Vallejo's youth. The draft TRL licensing provisions include the adoption of a new Chapter 5.10 of the Municipal Code relating to the issuance of retail licences and also includes companion changes to other sections of the Vallejo Municipal Code relating to Tobacco and Zoning to conform such other sections to the new Chapter 5.10.

After consideration and recommendation by the Planning Commission, the City Council considered the proposed ordinances at a duly noticed public hearing held on June 25, 2024. At the conclusion of the public hearing, the Council directed staff to conduct additional public outreach to discuss concerns expressed during the hearing.

Staff conducted the following community outreach and hearings relating to the adoption of the new ordinance both before and after the City Council public hearing held on June 25, 2024. • A noticed workshop held in the Vallejo room to go over the provisions of the draft ordinance on February 26, 2024.
• A noticed public hearing before the Planning Commission on June 3, 2024. • A noticed public hearing before the City Council on June 25, 2024. • A meeting between the proponents/supporters of the ordinance and tobacco retailers on June 18, 2024.
• A noticed community meeting, including interpreters in various languages with the Tobacco Retailers on August 14, 2024.
• A zoom meeting with proponents/supporters of the ordinance on August 19, 2024. • A noticed community meeting, including interpreters and table facilitators with both the Tobacco Retailers and ordinance proponents and supporters on August 21, 2024.

Date: September 24, 2024
Subject: CONSIDERATION OF AN ORDINANCE ADDING CHAPTER 5.10 OF THE VALLEJO

MUNICIPAL CODE RELATING TO TOBACCO RETAIL LICENSING AND PROVIDE

DIRECTION TO STAFF REGARDING POSSIBLE MODIFICATIONS TO THE DRAFT

ORDINANCE

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Representatives of various different groups have attended one or more meetings, including Tobacco Retailers, American Petroleum and Convenience Store Operators, LGBTQ minus tobacco, Solano County Public Health, the American Lunch Association, Finishing the Fight, Bay Area Community Resources, and American Heart Association. These individuals and organizations represent both retailers, ordinance proponents/supporters as well a public health organizations who have provided input and information. We have also received an offer from Tim Murrill, Director of the Napa-Solano Small Business Development Center to provide some available resources to retailers relating revenue strategies for replacing income from tobacco. We anticipate that individuals and perhaps some of these groups will be in attendance at your Council meeting and may have input they would like to provide.

With regard to expressed concerns and options for potential amendments to the draft ordinance, the community meetings requested by the City Council were well attended. At the first meeting on August 14, 2024, retailers focused on sections of the proposed retail licensing ordinance which they were concerned about. At the second meeting, proponents/supporters focused on concerns of the retailers expressed at the public hearings as well as sections of the proposed ordinance that they were concerned about. At the third community meeting, with both retailers and supporters in attendance, staff consolidated the concerns previously discussed into specific topics and broke the group into tables with both retailers and supporters at each table. Each table also had a facilitator to help answer questions and moderate the table discussions. The goal of these sessions was to try to bring the ordinance proponents and tobacco retailers together in a solutions-oriented manner to discuss possible suggestions for modifications to the ordinance. Group discussion was then had at each table on the topics of transferability of the license, pricing and packaging, density, and enforcement, with each table reporting what they had discussed and the ideas that came out of their discussion. Staff's presentation on this item will include a summary of the concerns and possible amendments discussed at the August 21, 2024 meeting on the group discussion topics.

Staff now seeks direction from the City Council regarding the draft ordinance and potential amendments to same. After Council input, as may be directed by the Council, staff will bring back the ordinance for a continued public hearing and possible introduction of the ordinance. If introduced, the ordinance will return to the City Council at a subsequent meeting for adoption and consideration of the applicable license fees relating to same.

FISCAL IMPACT
The financial impact of this action is not known at this time, but any costs are anticipated to be offset by licensing fees.

ENVIRONMENTAL REVIEW
The project is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), which states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. As a series of Municipal Code text amendments that address the sale of tobacco, it can be seen with certainty that there is no possibility that the proposed action may result in a significant effect on the environment, and the proposed revisions to the Municipal Code are exempt from further review under CEQA.

ATTACHMENTS

1. Exhibit A__Tobacco Retail Licensing Ordinance Adding Chapter 5.10 Date: September 24, 2024
Subject: CONSIDERATION OF AN ORDINANCE ADDING CHAPTER 5.10 OF THE VALLEJO

MUNICIPAL CODE RELATING TO TOBACCO RETAIL LICENSING AND PROVIDE

DIRECTION TO STAFF REGARDING POSSIBLE MODIFICATIONS TO THE DRAFT

ORDINANCE

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CONTACT
Veronica A.F. Nebb, City Attorney (707) 648-4545
[email protected]

Exhibit A - Chapter 5.10 TOBACCO RETAIL LICENSING

ORDINANCE
Chapter 5.10 – TOBACCO RETAIL LICENSING ORDINANCE

5.10.010 DEFINITIONS. The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise:

A. “Arm’s Length Transaction” means a sale in good faith and for valuable consideration that reflects the fair market value between two informed and willing parties, neither of which is under any compulsion to participate in the transaction.

B. "Cannabis" has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time.

C. "Cannabis products" has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time.

D. "Cannabis Business Retailer" means any retail establishment in which cannabis or Cannabis products are sold or offered for sale to persons that do not hold a license to engage in commercial cannabis activity issued by the State of California in accordance with California Business and Professions Code Section 26000 et seq., as the same may be amended from time to time.

E. “Child-Resistant Packaging” means packaging that meets the definition set forth in Code of Federal Regulations, title 16, section 1700.15(b), as in effect on January 1, 2024, and was tested in accordance with the method described in Code of Federal Regulations, title 16, section 1700.20, as in effect on January 1, 2024.

F. “Cigar” means any roll of tobacco other than a cigarette wrapped entirely or in part in tobacco or any substance containing tobacco weighing more than 4.5 pounds per thousand.

G. “Cigarette” means: (1) any roll of tobacco wrapped in paper or in any substance not containing tobacco; and (2) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described herein. 2 H. “City” means the City of Vallejo, California.

I. “Compliance checks” means systems the department may use to investigate and ensure that tobacco retailers are following and complying with the requirements of this chapter. Compliance checks may involve the use of persons between the ages of 18 and 20 who purchase or attempt to purchase tobacco products. Compliance checks may also be conducted by the department or other units of government for educational, research, and training purposes or for investigating or enforcing federal, state, or local laws and regulations relating to tobacco products.

J. “Coupon” means any voucher, rebate, card, paper, note, form, statement, ticket, image, or other issue, whether in paper, digital, or other form, used for commercial purposes to obtain an article, product, service, or accommodation without charge or at a discounted price.

K. “Delivery sale” means the sale of any tobacco product to any person for personal consumption and not for resale when the sale is conducted by any means other than an in-person, over-the-counter sales transaction in a tobacco retail establishment. Delivery sale includes the sale of any tobacco product when the sale is conducted by telephone, other voice transmission, mail, the internet, or app-based service. Delivery sale includes delivery by licensees or third parties by any means, including curbside pick-up.

L. “Department” means the City department in charge of Code Enforcement personnel in the City and any other department or personnel designated by the City Manager to enforce or administer the provisions of this chapter.

M. “Electronic smoking device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. Electronic smoking device includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine. Electronic smoking device does not include drugs, devices, or combination products authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.

N. “Flavored Tobacco Product” means any tobacco product that imparts:

1. a taste or odor, other than the taste or odor of tobacco, that is distinguishable by an ordinary consumer, either prior to or during the consumption of such tobacco product, including but not limited 3 to, tastes or odors relating to any fruit, menthol, mint, wintergreen, chocolate, cocoa, vanilla, honey, molasses, candy, dessert, alcoholic beverage, herb, or spice; or

2. a cooling or numbing sensation distinguishable by an ordinary consumer during the consumption of such tobacco product.

3. Any communication by or on behalf of the manufacturer or retailer of a tobacco product that such tobacco product imparts a taste or odor other than the taste or odor of tobacco, or that imparts a cooling or numbing sensation, constitutes presumptive evidence that the tobacco product is a flavored tobacco product.

This includes but is not limited to public statements that a product has a minty or cooling effect, such as describing the product as “chill,” “ice,” “fresh,” “arctic,” “frost”, or similar terms.

O. “Full Retail Price” means the price listed for a tobacco product on its packaging or on any related shelving, advertising, or display where the tobacco product is sold or offered for sale, plus all applicable taxes and fees if such taxes and fees are not included in the listed price.

P. “Little Cigar” means any roll of tobacco other than a cigarette wrapped entirely or in part in tobacco or any substance containing tobacco and weighing no more than 4.5 pounds per thousand. “Little Cigar” includes.

But is not limited to tobacco products known or labeled as small cigar, little cigar or cigarillo.

Q. “Manufacturer” means any person, including any repacker or relabeler, who manufactures, fabricates, assembles, processes, or labels a tobacco product; or imports a finished tobacco product for sale or distribution into the United States.

R. “Moveable place of business” means any form of business that is operated out of a kiosk, truck, van, automobile or other type of vehicle or transportable shelter and not a fixed address store front or other permanent type of structure authorized for sales transactions.

S. “Person” means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity.

T. “Pharmacy” means any retail establishment in which the profession of pharmacy is practiced by a pharmacist licensed by the State of California in accordance with the Business and Professions Code and where prescription pharmaceuticals are offered for sale, regardless of whether the 4 retail establishment sells other retail goods in addition to prescription pharmaceuticals.

U. “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a 10% or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person has or shares ultimate control over the day-to-day operations of a business.

V. “Recreation Facility” means an area, place, structure, or other facility that is used either permanently or temporarily for community recreation, even though it may be used for other purposes, and includes but is not limited to a gymnasium, playing court, playing field, and swimming pool.

W. “Sale” or “Sell” means any transfer, exchange, barter, gift, offer for sale, or distribution for a commercial purpose, in any manner or by any means whatsoever.

X. “Self-Service Display” means the open display or storage of tobacco products in a manner that is physically accessible in any way to the general public without the assistance of the retailer or employee of the retailer and a direct face-to-face transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of self- service display.

Y. “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated product containing, made, or derived from nicotine, tobacco, cannabis, or other plant, whether natural or synthetic, that is intended for inhalation. “Smoking” includes using an electronic smoking device.

Z. “Tobacco Product” means:

1. any product containing, made of, or derived from tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including but not limited to, cigarettes, cigars, little cigars, chewing tobacco, pipe tobacco, snuff, or snus; and

2. any electronic device that delivers nicotine or any other substances to the person inhaling from the device, that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine, including, but not limited to, a vaporizer/vape, electronic cigarette, electronic cigar, electronic pipe, or electronic hookah; or 5 3. any component, part, or accessory of (1) or (2), whether or not any of these contain tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes.
“Tobacco product” does not include drugs, devices, or products authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act or Cannabis Products.

AA. “Tobacco Retailer” means any person who sells, offers for sale, or exchanges or offers to exchange for any form of consideration, tobacco products. This definition is without regard to the quantity of tobacco products sold, offered for sale, exchanged, or offered for exchange.

AB. “Tobacco Retailing” means engaging in the activities of a tobacco retailer.

AC. “Tobacco Retail Store" means any business establishment utilized for the sale of any Tobacco Product.

AD. “Youth-Oriented Facility” means a parcel in the City that is occupied by:

1. a private or public kindergarten, elementary, middle, junior high, or high school;

2. a library open to the public;

3. a playground open to the public;

4. a youth center, defined as a facility where children, ages 6 to 17, inclusive, come together for programs and activities;

5. a recreation facility open to the public, defined as an area, place, structure, or other facility that is used permanently for community recreation, even though it may be used for other purposes;

6. a park open to the public or to all the residents of a private community;

7. a licensed child-care facility or preschool including, but not limited to, a small-family day care home or a large-family day care home as defined in California Health & Safety Code §1596.78.

5.10.020 GENERAL REQUIREMENTS AND PROHIBITIONS.
6 A. TOBACCO RETAILER’S LICENSE REQUIRED. It shall be unlawful for any person to engage in tobacco retailing in the City without first obtaining and maintaining a valid tobacco retailer’s license for each location at which tobacco retailing is to occur. Tobacco retailing without a valid tobacco retailer’s license is a nuisance as a matter of law.

B. LAWFUL BUSINESS OPERATION. In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a license issued, it shall be a violation of this chapter for a licensee, any of the licensee’s agents or employees, or any other person to violate any local, state, or federal law applicable to the sale of tobacco products.

C. SMOKING GENERALLY PROHIBITED. Smoking, including smoking for the purpose of sampling any tobacco product, is prohibited within the indoor area of any retail establishment licensed under this chapter unless a separate permit for a Cigar-Tobacco Bar or Lounge, smoking room or other similar establishment has been issued in accordance with the Vallejo Municipal Code.

D. MINIMUM LEGAL SALES AGE. No person engaged in tobacco retailing shall sell a tobacco product to a person under 21 years of age.

E. DISPLAY OF LICENSE. Each tobacco retailer license shall be prominently displayed in a publicly visible location at the licensed location.

F. POSITIVE IDENTIFICATION REQUIRED. No person engaged in tobacco retailing shall sell a tobacco product to another person without first verifying by means of government- issued photographic identification that the recipient is at least 21 years of age.

G. SELF-SERVICE DISPLAYS PROHIBITED. Tobacco retailing by means of a self-service display is prohibited.

H. ON-SITE SALES. All sales of tobacco products shall be conducted in- person in the licensed location. It shall be a violation of this chapter for any tobacco retailer or any of the tobacco retailer’s agents or employees to engage in the delivery sale of tobacco products or to knowingly or recklessly sell or provide tobacco products to any person that intends to engage in the delivery sale of the tobacco product in the city.

5.10.030 SALE OF FLAVORED TOBACCO PRODUCTS AND ELECTRONIC DEVICES PROHIBITED.

A. FLAVORED TOBACCO PRODUCT SALES PROHIBITED. It shall be unlawful for any tobacco retailer to sell any flavored tobacco product. 7 B. PRESUMPTIVE FLAVORED TOBACCO PRODUCT. A public
statement or claim made or disseminated by the manufacturer of a tobacco product, or by any person authorized or permitted by the manufacturer to make or disseminate public statements concerning such tobacco product, that such tobacco product has a taste or smell other than tobacco shall constitute presumptive evidence that the tobacco product is a flavored tobacco product.

5.10.040 TOBACCO PRODUCT PRICING AND PACKAGING.

A. PACKAGING AND LABELING. No tobacco retailer shall sell any tobacco product to any consumer unless the tobacco product: (1) is sold in the manufacturer’s packaging intended for sale to consumers; (2) conforms to all applicable federal labeling requirements; and (3) conforms to all applicable child-resistant packaging requirements.

B. DISPLAY OF PRICE. The price of each tobacco product offered for sale shall be clearly and conspicuously displayed on the tobacco product or on any related shelving, posting, advertising, or display at the location where the item is sold or offered for sale.

C. DISTRIBUTION OF TOBACCO SAMPLES OR PROMOTIONAL
ITEMS. It is unlawful for any person to distribute free or nominally priced tobacco products or tobacco products.

D. PROHIBITION OF TOBACCO COUPONS AND DISCOUNTS. No
tobacco retailer shall:

1. Honor or redeem, or offer to honor or redeem, a coupon to allow a consumer to purchase a tobacco product for less than the full retail price;

2. Sell any tobacco product to a consumer through a multiple- package discount or otherwise provide any such product to a consumer for less than the full retail price in consideration for the purchase of any tobacco product or any other item; or

3. Provide any free or discounted item to a consumer in consideration for the purchase of any tobacco product.

E. MINIMUM PACKAGE SIZE REQUIREMENTS FOR CIGARS. No
tobacco retailer shall sell:

1. Any little cigar unless it is sold in a package of at least ten (10) little cigars; or
8 2. Any cigar unless it is sold in a package of at least ten (10) cigars provided however, that this subsection shall not apply to the sale of a single cigar that has a price of at least $10.00 per cigar, including all applicable taxes and fees.

F. MINIMUM PRICE REQUIREMENTS FOR CIGARETTES AND
CIGARS. No tobacco retailer shall sell:

1. Cigarettes at a price that is less than $10.00 per package of twenty (20) cigarettes, including all applicable taxes and fees;

2. Little Cigars at a price that is less than $10.00 per package, including all applicable taxes and fees; or

3. Cigars at a price that is less than $50.00 per package, or $10.00 per cigar, including all applicable taxes and fees.

G. ADJUSTMENT OF MINIMUM PRICE. The prices established in this section shall be adjusted annually by the Department in proportion with the Consumer Price Index, all urban consumers for all items for the Vallejo-Fairfield statistical area as reported by the United States Bureau of Labor Statistics or any successor to that index, using a system established by the Department.

5.10.050 LIMITS ON ELIGIBILITY FOR A TOBACCO RETAILER LICENSE.

A. MOBILE VENDING. No license may be issued to authorize tobacco retailing at other than a fixed location. No tobacco retail license will be issued to a moveable place of business, including, but not limited to a car, cart, tent, or any other movable vendor apparatus.

B. LICENSED CANNABIS BUSINESSES RETAILER. No license may be issued, and no existing license may be renewed, to authorize tobacco retailing at a location licensed for commercial cannabis activity by the State of California under Business and Professions Code Division 10.

C. PHARMACIES. No license may be issued, and no existing license may be renewed, to authorize tobacco retailing in a pharmacy.

D. PROXIMITY TO YOUTH-ORIENTED FACILITIES. No license may be issued, to authorize tobacco retailing within 1000 feet of a youth- oriented facility as measured by a straight line from the nearest point of the property line of the parcel on which the youth-oriented facility is located to the nearest point of the property line of the parcel on which the applicant’s business is located.
9 E. PROXIMITY TO OTHER TOBACCO RETAILERS. No license may be issued, to authorize tobacco retailing within 1000 feet of a tobacco retailer location already licensed pursuant to this chapter or which predates the effective date of this chapter, as measured by a straight line from the nearest point of the property line of the parcel on which the applicant’s business is located to the nearest point of the property line of the parcel on which an existing licensee’s business is located.

F. PROXIMITY TO CANNABIS BUSINESS RETAILERS. No license may be issued, to authorize tobacco retailing within 1000 feet of an existing cannabis business retailer as measured by a straight line from the nearest point of the property line of the parcel on which the applicant’s business is located to the nearest point of the property line of the parcel on which an existing cannabis business retailer is located.

G. POPULATION AND DENSITY. The issuing of tobacco retailer licenses is limited as follows:

1. The total number of tobacco retailer licenses within the incorporated area of Vallejo shall be limited to one for each 2,500 inhabitants, or fraction thereof, of the City of Vallejo;

2. For the purposes of this subsection, the total population of the City shall be determined by the most current published total available from the U.S. Census Bureau or the California State Department of Finance, whichever has been more recently updated, as of the date the license application is filed.

3. No new license may be issued to authorize tobacco retailing if the number of tobacco retailer licenses already issued equals or exceeds the total number authorized pursuant to subsection G.1. of this section.

H. EXISTING RETAILERS EXEMPTED FROM DENSITY AND
PROXIMITY REQUIREMENTS. Notwithstanding subsections D. through G. of this section, a tobacco retailer operating lawfully on the date the ordinance codified in this chapter is introduced that would otherwise be eligible for a tobacco retailer license for the location for which a license is sought may receive or renew a license for that location so long as all of the following conditions are met:

1. The license is obtained on or before 60 calendar days after the effective date of this ordinance and is renewed without lapse or permanent revocation (as opposed to temporary suspension); 10 2. The tobacco retailer is not closed for business or otherwise suspends tobacco retailing for more than 60 consecutive days;

3. The tobacco retailer does not substantially change the business operation. A substantial change to the business operation includes, but is not limited to, the transferring of a business:
a. To a new proprietor(s) in an arm’s length transaction; or b. To a new location.

4. The tobacco retailer retains the right to operate under all other applicable laws.

5. In the event that a tobacco retailer fails to obtain a tobacco retailer license on or before 60 calendar days after the effective date of this chapter, such tobacco retailer shall be required to comply with all density and location requirements set forth in subsections D. through G. of this section. In the event that the location of the tobacco retail store does not comply with such location and density requirements and has not obtained such tobacco retail license on or before the 60-calendar day period, such retailer shall immediately cease the sale of any and all tobacco products.

I. LOCATIONS PROHIBITED OR RESTRICTED BY ZONING. No
license may issue to authorize tobacco retailing at a location where:

1. Such use is prohibited at the requested location by Title 16 of the Vallejo Municipal Code; or

2. Such use is required to have a land use entitlement, including, but not limited to a use permit in order to do business at the requested location and such entitlement has been denied or has yet to be approved.

5.10.060 APPLICATION PROCEDURE.

A. An application for a tobacco retailer’s license shall be submitted in the name of each proprietor proposing to conduct retail tobacco sales and shall be signed by each proprietor or an authorized agent thereof. All applications shall be submitted on a form supplied by the Department.

B. A license issued contrary to this chapter, contrary to any other law, or on the basis of false or misleading information, shall be revoked pursuant to Section 5.10.130 C. of this chapter. Nothing in this chapter shall be construed to vest in any person obtaining and maintaining a tobacco 11 retailer’s license any status or right to act as a tobacco retailer in contravention of any provision of law.

C. Applicant submissions shall contain the following information:

1. The name, address, and telephone number of each proprietor of the business seeking a license.

2. The business name, address, and telephone number of the location for which a license is sought.

3. The name and mailing address authorized by each proprietor to receive all communications and notices required by, authorized by, or convenient to the enforcement of this chapter.

4. Proof that the location for which a tobacco retailer’s license is sought has been issued all necessary state licenses for the sale of tobacco products and has either been issued or applied for any required land use entitlements/permits required by Title 16 of the Vallejo Municipal Code.

5. Whether or not any proprietor or any agent of the proprietor has admitted violating, or has been found to have violated, this chapter or any other local, state, or federal law governing the sale of tobacco products and, if so, the dates and locations of all such violations within the previous five years.

6. A signed affidavit affirming that the proprietor has not sold and will not sell any tobacco product without a license required by this chapter.

7. Such other information as the Department deems necessary for the administration or enforcement of this chapter as specified on the application form required by this section.

D. A licensed tobacco retailer shall inform the Department in writing of any change in the information submitted on an application for a tobacco retailer’s license within 10 business days of a change.

5.10.70 LICENSE ISSUANCE OR DENIAL.

A. ISSUANCE OF LICENSE. Upon the receipt of a complete and adequate application for a tobacco retailer’s license and the license fee required by this chapter, the Department may approve or deny the application for a license, or it may delay action for a reasonable period of time to complete any investigation of the application or the applicant deemed necessary. 12 B. DENIAL OF APPLICATION. The Department may deny an application for a tobacco retailer’s license based on any of the following:

1. The information presented in the application is inaccurate or false.

Intentionally supplying inaccurate or false information shall be a violation of this chapter;

2. The application seeks authorization for tobacco retailing at a location for which this chapter or any other chapter of the Vallejo Municipal Code prohibits a licensed to be issued or a tobacco retail store to be operated;

3. The application seeks authorization for tobacco retailing for a proprietor to whom this chapter prohibits a license to be issued; or

4. The application seeks authorization for tobacco retailing in a manner that is prohibited pursuant to this chapter, that is unlawful pursuant to any other chapter of this Code, or that is unlawful pursuant to any other law.

5. Any other suitable reason the granting of a license to the applicant is not consistent with the public health and welfare, including the applicant’s history of noncompliance with this chapter and other laws relating to the sale of tobacco products.

5.10.080 LICENSE RENEWAL AND EXPIRATION.

A. RENEWAL OF LICENSE. A tobacco retailer’s license is invalid if the appropriate fee has not been timely paid in full or if the term of the license has expired. The term of a tobacco retailer license is 1 year. Each tobacco retailer shall apply for the renewal of their tobacco retailer’s license and submit the license fee no later than 60 days prior to expiration of the current license. A retailer that fails to timely submit a renewal application and fee is ineligible for license renewal and must submit a new application pursuant to Section 5.10.060.

5.10.090 LICENSES NOT TRANSFERABLE; PAST VIOLATIONS AT RETAIL LOCATION.

A. LICENSES NOT TRANSFERRABLE. A tobacco retailer’s license may not be transferred from one person to another or from one location to another. A new tobacco retailer’s license is required whenever a tobacco retailing location has a change in proprietors or location.

B. PAST VIOLATIONS. Notwithstanding any other provision of this chapter, prior violations at a location shall continue to be counted against a subsequent location and license ineligibility/suspension periods shall continue to apply to a location unless:
13 1. the location has been acquired by new proprietor(s) in an arm’s length transaction; and

2. the new proprietor(s) provides the city with clear and convincing evidence that the new proprietor(s) has acquired the location in an arm’s length transaction.

5.10.100 LICENSE CONVEYS A LIMITED, CONDITIONAL PRIVILEGE.

Nothing in this chapter shall be construed to grant any person obtaining and maintaining a tobacco retailer’s license any status or right other than the limited conditional privilege to act as a tobacco retailer at the location in the City identified on the face of the permit. Nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of, any other provision of applicable law.

5.10.110 FEE FOR LICENSE.

The fee to issue or to renew a tobacco retailer’s license shall be established from time to time by resolution of the City Council. The fee shall be calculated so as to recover the total cost of administration and enforcement of this chapter, including, but not limited to, issuing a license, administering the license program, retailer education, retailer inspection and compliance checks, documentation of violations, and prosecution of violators, but shall not exceed the cost of the regulatory program authorized by this chapter. All fees and interest upon proceeds of fees shall be used exclusively to fund the program. Fees are nonrefundable except as may be required by law.

5.10.120 COMPLIANCE MONITORING.

A. Compliance with this chapter may be monitored by the Department.

In addition, the City Manager may designate additional persons to monitor compliance with this chapter. All licensed premises must be open to inspection by city staff or designated persons during regular business hours.

B. The Department, or designated persons, may inspect each tobacco retailer at least 2 times per 12-month period to ensure compliance with this chapter. At least one of those visits may involve the participation of persons under the age of 21 to enter licensed premises to attempt to purchase tobacco products.

C. Nothing in this section shall create a right of action in any licensee or other person against the city or its agents.

5.10.130 SUSPENSION OR REVOCATION OF LICENSE.

A. SUSPENSION OR REVOCATION OF LICENSE FOR VIOLATION. In addition to any other penalty authorized by law, a tobacco retailer’s 14 license shall be suspended or revoked if the Department finds, based on a preponderance of the evidence, after the licensee is afforded notice and an opportunity to be heard, that the licensee, or any of the licensee’s agents or employees, have violated any of the requirements, conditions, or prohibitions of this chapter; such violation is determined by any court of competent jurisdiction; or the licensee has pleaded guilty, “no contest” or its equivalent, or admitted to a violation of any law designated in Section

5.10.020 above.

1. Upon a finding by the Department of a first violation of this chapter at a location, the license shall be suspended for 30 days.

2. Upon a finding by the Department of a second violation of this chapter at a location within any 5-year period, the license shall be suspended for 90 days.

3. Upon a finding by the Department of a third violation of this chapter at a location within any 5-year period, the license shall be suspended for 1 year.

4. Upon a finding by the Department of four or more violations of this chapter at a location within any 5-year period, the license shall be revoked.

B. APPEAL OF SUSPENSION OR REVOCATION. A decision of the Department to suspend or revoke a license is appealable to the City Council and any appeal must be filed in writing with the City Clerk within ten (10) calendar days of mailing of the Department’s decision along with the appropriate appeal fee. If such an appeal is timely made, it shall stay enforcement of the appealed action. An appeal to Council is not available for a revocation made pursuant to subsection C. below.

C. REVOCATION OF LICENSE WRONGLY ISSUED. A tobacco retailer’s license shall be revoked if the Department finds, after the licensee is afforded notice and an opportunity to be heard, that one or more of the bases for denial of a license under Section 5.10.070 existed at the time application was made or at any time before the license issued. The decision by the Department shall be the final decision of the City.

5.10.140 TOBACCO RETAILING WITHOUT A VALID LICENSE.

A. INELIGIBLE FOR LICENSE. In addition to any other penalty authorized by law, if the Department finds, or if a court of competent jurisdiction determines, based on a preponderance of evidence after notice and an opportunity to be heard, that any person has engaged in tobacco retailing at a location without a valid tobacco retailer’s license, either directly or through the person’s agents or employees, the person shall be ineligible to apply for, or to be issued, a tobacco retailer’s license as follows:
15 1. After a first violation of this section at a location, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until 30 days have passed from the date of the violation.

2. After a second violation of this section at a location within any 5- year period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until 90 days have passed from the date of the violation.

3. After of a third violation of this section at a location within any 5- year period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until 1 year has passed from the date of the violation.

4. After a fourth or subsequent violation of this section at a location within any 5-year period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until 5 years has passed from the date of the violation.

5.10.150 ADDITIONAL REMEDIES.

A. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity, including, but not limited to administrative citation issued by the Department in accordance with Chapter 1.15 of the Vallejo Municipal Code.

B. Whenever evidence of a violation of this chapter is obtained in any part through the participation of a person under the age of 18 years, such a person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this chapter and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented.

C. Violations of this chapter are subject to a civil action brought by the district attorney, or the city attorney and are punishable by a civil fine not less than $250 and not exceeding $1,000 per violation. The license holder shall be solely responsible for payment of fines.

D. Violations of this chapter may, in the discretion of the district attorney or city attorney, as applicable, be prosecuted as infractions or misdemeanors when the interests of justice so require.

E. Violations of this chapter are hereby declared to be public nuisances. 16 F. In addition to other remedies provided by this chapter or by other law, any violation of this chapter may be remedied by a civil action brought by the district attorney or city attorney, including administrative proceedings, judicial nuisance abatement proceedings, civil code enforcement proceedings, and suits for injunctive relief.

G. Tobacco products offered for sale in violation of this chapter are subject to seizure by the Department or its designee and shall be forfeited after the licensee or any other owner of the tobacco products seized is given reasonable notice and an opportunity to demonstrate that the tobacco products were not offered for sale in violation of this chapter. The decision by the Department may be appealed pursuant to the procedures set forth in Section 5.10.130 B. Forfeited tobacco products shall be destroyed and properly disposed of at the cost of the seller after all internal appeals have been exhausted and the time in which to seek judicial review pursuant to California Code of Civil Procedure section 1094.6 or other applicable law has expired without the filing of a lawsuit or, if such a suit is filed, after judgment in that suit becomes final.

H. For the purposes of the civil remedies provided in this chapter:

1. Each day on which a tobacco product is distributed, sold, or offered for sale in violation of this chapter shall constitute a separate violation of this chapter; and

2. Each individual tobacco product that is distributed, sold, or offered for sale in violation of this chapter shall constitute a separate violation of this chapter.

I. All tobacco retailers are responsible for the actions of their employees relating to the sale, offer to sell, and furnishing of tobacco products at the retail location. The sale of any tobacco product by an employee shall be considered an act of the tobacco retailer. Notwithstanding the provisions of this subsection, enforcement action may also be brought against any employee of a tobacco retailer for a violation of this chapter.

5.10.160 EXCEPTIONS.

A. Nothing in this chapter prevents the provision of tobacco products to any person as part of an indigenous practice or a lawfully recognized religious or spiritual ceremony or practice.

B. Nothing in this chapter shall be construed to penalize the purchase, use, or possession of a tobacco product by any person not engaged in tobacco retailing.

ACTION ITEM 9.B.

DATE: September 24, 2024
TO: Mayor and Members of the City Council
FROM: Kristin Pollot, AICP, Director of Planning & Development Services Dong Yoo, Code Enforcement Manager
SUBJECT: HOLD A PUBLIC HEARING AND ADOPT A RESOLUTION APPROVING AN AMENDMENT TO THE MASTER FEE SCHEDULE FOR FISCAL YEAR 2024-25

ESTABLISHING NEW USER FEES FOR CODE ENFORCEMENT

RECOMMENDATION
Hold a public hearing and adopt a resolution approving an amendment to the Master Fee Schedule for Fiscal Year 2024-25 establishing new User Fees for Code Enforcement.

REASONS FOR RECOMMENDATION
The current Fiscal Year 2024-25 Master Fee Schedule does not include fees for the following existing Code Enforcement activities: 1) posting for Notice of Violations or Administrative Citations, 2) processing payment demand requests, 3) processing lien releases, and 4) processing Vacant Real Property Program renewals.

Adopting new fees for these standard activities would align with the best practices of peer agencies and help to increase cost recovery for the Code Enforcement Division. The annual revenue increase associated with the recommended action is estimated to be approximately $361,628.

BACKGROUND AND DISCUSSION
The California Constitution grants cities the authority to establish fees to recover the cost of providing services.

The last time that Code Enforcement fees were analyzed was in 2017. In late 2023, the City contracted with MGT Consulting to analyze City Code Enforcement fees specifically. See attached User Fee Study, Final Report dated September 2024.

New Fees Proposed

As described in the User Fee Study, several new fees are recommended for consideration in order to recover staff time for standard tasks that the City does not currently charge for. As requested by City staff, the User Fee Study analyzed existing code enforcement processing fees and compared them against neighboring jurisdictions. The study also included interview findings from existing Code Enforcement staff regarding their tasks and processes. Following this analysis, the study made recommendations to add four new fees to be more consistent with peer agencies and increase cost recovery associated with existing processes. These include: 1) posting (on-site) Notice of Violations or Administrative Citations, 2) processing payment demand requests, 3) processing lien releases, and 4) processing Vacant Real Property Registration Program renewals. New fees are recommended to be adopted at 80% of full cost recovery.

Other Existing Fees

Staff recommends that the “Warrant Lien Processing Administrative Charge” be adjusted to match the estimated full cost amount of $393.86. Staff recommends no additional changes to any other existing Code Enforcement fees at this time. As proposed, the cost recovery rate for the division would increase from 32% to 80%, which is a significant increase from the current baseline. Including additional fee increases at this time

Date: September 24, 2024
Subject: HOLD A PUBLIC HEARING AND ADOPT A RESOLUTION APPROVING AN AMENDMENT TO THE MASTER FEE SCHEDULE FOR FISCAL YEAR 2024-25

ESTABLISHING NEW USER FEES FOR CODE ENFORCEMENT

Page 2 ends

could result in an undue burden on residents and property owners, which could be counter-productive to the division goals of working with the community to maintain properties across the City.

FISCAL IMPACT
Current annual revenue collected by the Division is approximately $245,921. This translates to a 32% overall cost recovery. Upon adoption of the new fees, the Consultant estimates additional annual revenue in the amount of $361,628, which would raise the total annual estimated revenue to approximately $607,548 at 80% cost recovery.

Upon City Council approval, the new fees would go into effect November 25, 2024.

ENVIRONMENTAL REVIEW
The approval of new user fees to meet the City's operating expenses is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Sections 15273(a)(1) of the CEQA Guidelines. This action is further exempt pursuant to Section 15378(B)(4) of the CEQA Guidelines because it creates a funding mechanism that does not involve any commitment to a specific project which might result in a potentially significant environmental impact.

ATTACHMENTS

1. Resolution - New User Fees for Code Enforcement Activities CAO Stamp

2. Exhibit A to the Resolution - User Fee Study Summary Sheet

3. User Fee Study September 2024 Final Report

CONTACT
Kristin Pollot, AICP, Director of Planning & Development Services (707) 648-4283 [email protected]

1 RESOLUTION NO. _____ N.C.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VALLEJO APPROVING AN AMENDMENT TO THE MASTER FEE SCHEDULE FOR FISCAL YEAR 2024-25

ESTABLISHING NEW USER FEES FOR CODE ENFORCEMENT
WHEREAS, California Government Code Section 66000 et seq. authorizes the City of Vallejo (“City) to adopt fees for municipal services, provided such fees do not exceed the cost to the City for providing the services; and WHEREAS, the City has conducted an extensive analysis of its Code Enforcement 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, to conduct the analysis of the City’s Code Enforcement services and related costs, which analysis is contained within the “MGT User Fee Study – City of Vallejo Code Enforcement Department Final Report of September 2024” (“User Fee Study”); and WHEREAS, the User Fee 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, the Code Enforcement Division has reviewed the User Fee Study, and with the approval of the City Manager, recommends the adoption of the fees set forth in the User Fee Study Summary Sheet attached to this Resolution as Exhibit A; and WHEREAS, on September 24, 2024, at the hour of 7:00 p.m. at the City Council Chambers located at 555 Santa Clara Street, Vallejo, California, the City Council of the City of Vallejo held a public hearing to consider the adoption of new user fees to cover existing services provided by the Code Enforcement Division, notice of which hearing was given as required by law; and
2 WHEREAS, all persons interested and desiring to be heard at the hearing were given an opportunity to be heard, and all matters and things pertaining to the adoption of the new fees were fully heard and considered by the City Council.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby declare, find, determine and order as follows:

SECTION 1. Notice of the 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. The cost estimates produced by City staff and considered by the City Council in establishing fees under this Resolution are reasonable cost estimates for the provision of the City services to which the fees pertain and were made available to the public pursuant to Government Code Section 66016.

SECTION 3. This City Council hereby finds and determines that based upon the data, information, analysis, oral and written documentation presented to the City Council concerning the fees described in Exhibit A, the fees set forth in said Exhibit A do not exceed the established reasonable cost of providing the service for which the fees are levied.

SECTION 4. The fees forth in Exhibit A are hereby adopted and approved as the fees for providing the services identified for each such fee.

SECTION 5. The fees set forth in Exhibit A shall be effective and shall be implemented commencing November 25, 2024.
3 SECTION 6. Specific 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 7. The City Manager shall have the authority to interpret the provisions of this resolution for purposes of resolving ambiguities.

SECTION 8. 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.

Adopted by the City Council of the City of Vallejo at a regular meeting held on September 24, 2024 with the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
ROBERT H. MCCONNELL, MAYOR
ATTEST:
________________________________
DAWN G. ABRAHAMSON, CITY CLERK
User Fee Study Summary Sheet
Agency: City of Vallejo
Department: Code Enforcement
Fiscal Year: 2023‐2024
Ord Service Name Fee
Descriptio
Annual
Volume
Current
Fee Full Cost Current
Recovery Annual Cost Annual
Revenue
Annual
Subsidy
Recovery
Level
Recommended
Fee
Annual
Revenue2
Increased
Revenue
Recommended
Subsidy
1 Warrant Processing Fee Flat 6 1,476.77$ 1,814.35 $ 81% 10,886 $ 8,861 $ 2,025 $ 81% 1,469.62 $ 8,818 $ (43) $ 2,068$ 2 Warrant Lien Process Admin. Charge Flat 6 494.38$ 393.86 $ 126% 2,363 $ 2,966 $ (603) $ 100% 393.86 $ 2,363 $ (603) $ ‐ $ 3 Notice of Violations Appeals Fees (Non‐Refundable) Flat 8 509.23$ 2,764.99$ 18% 22,120 $ 4,074 $ 18,046 $ 18% 2,764.99 $ 22,120 $ 18,046 $ ‐ $ 4 Administrative Citation Fine Per Code Section Violated ‐ 1st C itation Per Violation 91 283.26$ 446.90 $ 63% 40,668 $ 25,777 $ 14,892 $ 63% 283.26 $ 25,777 $ ‐ $ 14,892$ 5 Administrative Citation Fine Per Code Section Violated ‐ 2nd C itation Per Violation 24 566.52$ 446.90 $ 127% 10,726 $ 13,596 $ (2,871) $ 127% 566.52 $ 13,596 $ ‐ $ (2,871)$ 6 Administrative Citation Fine Per Code Section Violated ‐ 3rd and All Subsequent Citations Per Violation 20 850.84$ 446.90 $ 190% 8,938 $ 17,017 $ (8,079) $ 190% 850.84 $ 17,017 $ ‐ $ (8,079)$ 7 Administrative Citation Lien Processing and Late Payment Penal ty Per Citation 61 503.93$ 406.94 $ 124% 24,823 $ 30,740 $ (5,916) $ 124% 503.93 $ 30,740 $ ‐ $ (5,916)$ 8 Notice of Violation Admin. Charge Flat 183 409.51$ 446.90 $ 92% 81,783 $ 74,940 $ 6,843 $ 92% 411.15 $ 75,241 $ 300 $ 6,543$ 9 Vacant Real Property Annual Registration Fee Flat 150 453.00$ 1,448.78$ 31% 217,317 $ 67,950 $ 149,367 $ 31% 449.12 $ 67,368 $ (582) $ 149,949$ 10 Notice of Violation or Administrative Citation Posting Fee New Fee 400 ‐ $ 80.62$ 0% 32,247 $ ‐ $ 32,247$ 100% 80.62 $ 32,247 $ 32,247 $ ‐ $ 11 Demand Request Processing Fee New Fee 150 ‐ $ 212.09$ 0% 31,814 $ ‐ $ 31,814$ 100% 212.09 $ 31,814 $ 31,814 $ ‐ $ 12 Lien Release Request Processing Fee New Fee 400 ‐ $ 701.12$ 0% 280,448 $ ‐ $ 280,448$ 100% 701.12 $ 280,448 $ 280,448 $ ‐ $ 13 Vacant Real Property Renewal Fee (75% of regular fee) New Fee ‐ ‐ $ 981.67$ 0% ‐ $ ‐ $ ‐ $ 100% 75% of regular fee ‐ $ ‐ $ Total User Fees $764,134 $245,921 $518,213 $607,548 $361,628 $156,586 % of Full Cost 32% 68% 80% 147% 20%
1 Fees #4‐7 are fines are exempt from Prop 26.
2 Fee #11 is a fee for requesting a payment demand, also known a s demand payoff).

Per Unit Annual Per Unit Annual
Current Recommendations
USER FEE STUDY – CITY OF VALLEJO
Code Enforcement Department
Final Report
September 2024
MGTCONSULTING.COM

TABLE OF CONTENTS
2 I. EXECUTIVE SUMMARY
Introduction............................................................................... 3 Study Scope & Objectives.......................................................... 3 Study Findings............................................................................ 4 Methodology.............................................................................. 5 Legal, Economic, & Policy Considerations.................................. 6 II. ANALYSIS HIGHLIGHTS
Code Enforcement..................................................................... 9 III. USER FEE SUMMARIES
Code Enforcement..................................................................... 13 IV. FEE SCHEDULE COMPARISON ANALYSIS
Fee Schedule Comparison Analysis........................................... 15 Comparison Tables...................................................................... 16 SECTION 1Executive Summary
SECTION 1
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 Code Enforcement department user fee study.

MGT analyzed Code Enforcement department fees in 2017. In late 2023, the City contracted with MGT to perform a user fee study update for the Code Enforcement department using fiscal year 2023/2024 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 Code Enforcement 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:
 Code Enforcement
The study was performed under the general direction of the Code Enforcement department. The primary goals of the study were to:
• Develop a catalog of fees
• Define what it costs the department to provide various fee-related services • Compare full costs against current fee
• Survey what regional cities charge for similar services • Identify additional revenue potential
• Provide recommendations
The information summarized in this report addresses each of these issues and provides the City with the tools necessary to make informed decisions about any proposed fee adjustments.

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 below on the following page displays the average cost recovery rates and FY 2023/2024 budgeted revenues of the Code Enforcement department into the following categories:

Column A, User Fee Costs – $784,730 of the department’s costs are related to user fee services. It is this $784,730 that is the focus of this study and represents the total potential for user fee-related revenues for the City.

Column B, Current Revenues – Based on current individual fee levels, the department generates fee-related revenues of $245,921 and is experiencing an 31% overall cost recovery level. Current cost recovery levels for the departments range from 63% to 190%.

Column C, Current Subsidy – Current fee revenues recover 31% of full cost, leaving 69%, or $538,809, to be funded by other funding sources. This $538,809 represents an opportunity for the City to adjust fees and revenues within the department.

Column D, Recommended Recovery – Adjusting fees to the proposed cost recovery, would balance the specified fee revenue to $786,704. This would set the overall cost recovery level at 100%.

Column E, Increased Revenue – $786,704 in potential revenue could be generated. This would represent a $540,783 increase in the revenue currently being collected for these activities by the department on an annualized basis.

Department
(A) Full Cost
User Fee
Services
(E) Increased
Revenue
Code Enforcement 784,730$ 245,921$ 31% 538,809$ 69% 786,704$ 100% 540,783$ Totals: 784,730$ 245,921$ 31% 538,809$ 69% 786,704$ 100% 540,783$ (B) FY2023/2024
Estimated
Revenue
(C) Current
Subsidy
(D) Cost Recovery
Policy
Current Recommended
SECTION 1
Executive Summary
Methodology
5 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 1,620 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 City running. An example of a central service SECTION 1
Executive Summary
Methodology Continued…
6 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. Those fees are fines and are exempt from Prop 26 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 using 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 as a fine/penalty are exempt from Proposition

26. Legal, Economic, & Policy Considerations
7 • 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. • Private benefit - If a user fee primarily benefits the fee payer, the fee is typically set at, or close to, 100% full cost recovery.
• 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. • 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. • Disincentives - Penalties can be instituted to discourage undesirable behavior .

SECTION 1Analysis Highlights
SECTION 2
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. 9  Code Enforcement – MGT worked with Code Enforcement staff to revised fees into an industry standard best practices format. The proposed fee schedule streamlines fee categories. Several new fees were added. All fees are recommended at full cost recovery rates.
 Fines/Penalties– The department currently has four administrative citation fees. Staff recommends keeping those fees at the same fee amount.  New Fees– The department recommends adding the following fees:
• Notice of Violation or Administrative Citation Posting Fee • Demand Request Processing Fee
• Lien Release Request Processing Fee
• Time Extension Request - Good Faith Deposit (any extension more than 60 days)
• Vacant Real Property Renewal Fee (75% of regular fee) Staff is already providing these services but did not previously have a way to recover their cost. Establishing these new fees will help the department recover cost for these activities
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 CPI from 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.
10 SECTION 1User Fee Summary
SECTION 3
Code Enforcement
13 Agency: ty of Vallejo
Department ode Enforcement
Fiscal Year: 23-2024
Service Name Fee Description Annual
Volume Current Fee Full Cost Current
Recovery % Annual Cost Annual
Revenue
Annual
Subsidy Recovery Level Fee @ Policy
Level
Annual
Revenue2
Increased
Revenue
Recommended
Subsidy
1 Warrant Processing Fee Flat 6 1,476.77$ 1,814.35$ 81% 10,886$ 8,861$ 2,025$ 100% 1,814.35$ 10,886$ 2,025$ -$ 2 Warrant Lien Process Admin. Charge Flat 6 494.38$ 393.86$ 126% 2,363$ 2,966$ (603)$ 100% 393.86$ 2,363$ (603)$ -$ 3 Notice of Violations Appeals Fees (Non-Refundable) Flat 8 509.23$ 2,764.99$ 18% 22,120$ 4,074$ 18,046$ 100% 2,764.99$ 22,120$ 18,046$ -$ 4 Administrative Citation Fine Per Code Section Violated - 1st Citation Per Violation 91 283.26$ 446.90$ 63% 40,668$ 25,777$ 14,892$ 63% 283.26$ 25,777$ -$ 14,892$ 5 Administrative Citation Fine Per Code Section Violated - 2nd Citation Per Violation 24 566.52$ 446.90$ 127% 10,726$ 13,596$ (2,871)$ 127% 566.52$ 13,596$ -$ (2,871)$ 6 Administrative Citation Fine Per Code Section Violated - 3rd and All Subsequent Citations Per Violation 20 850.84$ 446.90$ 190% 8,938$ 17,017$ (8,079)$ 190% 850.84$ 17,017$ -$ (8,079)$ 7 Administrative Citation Lien Processing and Late Payment Penalty Per Citation 61 503.93$ 406.94$ 124% 24,823$ 30,740$ (5,916)$ 124% 503.93$ 30,740$ -$ (5,916)$ 8 Notice of Violation Admin. Charge Flat 183 409.51$ 446.90$ 92% 81,783$ 74,940$ 6,843$ 100% 446.90$ 81,783$ 6,843$ -$ 9 Vacant Real Property Annual Registration Fee Flat 150 453.00$ 1,448.78$ 31% 217,317$ 67,950$ 149,367$ 100% 1,448.78$ 217,317$ 149,367$ -$ 10 Notice of Violation or Administrative Citation Posting Fee New Fee 400 -$ 80.62$ 0% 32,247$ -$ 32,247$ 100% 80.62$ 32,247$ 32,247$ -$ 11 Demand Request Processing Fee New Fee 150 -$ 212.09$ 0% 31,814$ -$ 31,814$ 100% 212.09$ 31,814$ 31,814$ -$ 12 Lien Release Request Processing Fee New Fee 400 -$ 701.12$ 0% 280,448$ -$ 280,448$ 100% 701.12$ 280,448$ 280,448$ -$ 13 Time Extension Request - Good Faith Deposit (any extension more than 60 days) New Fee 200 -$ 102.98$ 0% 20,596$ -$ 20,596$ 100% 102.98$ 20,596$ 20,596$ -$ 14 Vacant Real Property Renewal Fee (75% of regular fee) New Fee - -$ 981.67$ 0% -$ -$ -$ 100% 75% of regular fee -$ -$ 15 Tobacco Retail License New Fee - -$ -$ 0% -$ -$ -$ 100% -$ -$ -$ -$ Total User Fees $784,730 $245,921 $538,809 $786,704 $540,783 -$1,974 % of Full Cost 31% 69% 100% 220% 0%
Footnotes
1 Fees #4-7 are fines are are exempt from Prop 26.
2 Fee #11 is a fee for requesting a payment demand, also known as demand payoff). 3 Fee #13 is a fee for requesting for a time extension on a case.

Per Unit Annual Per Unit Annual
Current Recommendations

SECTION 1Fee Schedule
Comparison Analysis
SECTION 4
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 Code Enforcement fees, with help and recommendations from staff, MGT compared fee amounts and structure to the following agencies: Santa Rosa, San Pablo, 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
Vallejo Code Enforcement Current Fee Proposed Fee Santa Rosa Concord Fairfield San Pablo Richmond Vacaville Warrant Processing Fee $1,476.77 $1,814.35 N/A Actual Cost - $148/hr N/A Actual Cost Warrant Lien Process Admin. Charge $494.38 $393.86 N/A $465 N/A Actual Cost Notice of Violations Appeals Fees $509.23 $2,764.99
Appeal to Board of Building
Regulations Appeals: $811.98.

If appeal is through
Administrative Hearing
Process: Hearing Officer
requests cost recovery
Actual Cost - $148/hr N/A
Abatement contract cost
+ actual City costs
$519.00 + actual cost of
Hearing Examiner
divided equally between
City and appellant.

Administrative Citation Fine Per Code
Section Violated - 1st Citation $283.26 $283.26 $130 $316 $119 $100 $250 $100 Administrative Citation Fine Per Code
Section Violated - 2nd Citation $566.52 $566.52 $700 $716 $239 $200 $500 $200 Administrative Citation Fine Per Code
Section Violated - 3rd and All Subsequent
Citations
$850.84 $850.84 $700 $716 $597 $500 $1,000 $500
Administrative Citation Lien Processing and
Late Payment Penalty $503.93 $503.93 $226 + Vendor Cost We cite through Data
Ticket, they charge the
late fees and do the lien
process against property.

Admin Citation + 50%
late fee
Actual Cost + 28%
Penalty N/A
We do not lien for
citations. If they do not
pay we will send them to
collections
Notice of Violation Admin. Charge $409.51 $446.90 N/A $450 $339 N/A N/A No charge Vacant Buildings Annual Registration Fee $453.00 $1,448.78 $1,040 $465 $185 N/A $228 No charge Peer Agencies
City of Vallejo - Peer Comparison Study
Inspection Warrant – $1,132
Abatement Warrant – $1,330
Abatement Warrant – $1,330
Notice of Violation Appeal
(Vehicle Abatement) – $0
Abatement Administrative –
$750
Lien and Special assessments –
$2,659
Late fees are 10 % of charge
Abatement of Public
Nuisance
Basic Each $321.00
Substandard Each
$1,423.00
Inspection Warrant
Each $250.00
ACTION ITEM 9.C.

DATE: September 24, 2024
TO: Mayor and Members of the City Council
FROM: Andrew Murray, City Manager
SUBJECT: PRESENTATION ON ROLES OF THE CITY COUNCIL AND CITY MANAGER IN COUNCIL-MANAGER FORM OF OPERATION AND DISCUSSION OF CITY COUNCIL’S

GOALS FOR CITY MANAGER

RECOMMENDATION
Receive a presentation from consultant Joe Gorton of Bob Hall and Associates on the traditional roles of the City Council and the City Manager in a council-manger form of operation and discuss the City Council’s collective goals for and expectations of City Manager Andrew Murray.

REASONS FOR RECOMMENDATION
The City Manager has arranged a presentation to the City Council on the roles of the City Council and City Manager and a discussion of the City Council’s collective goals for the City Manager to fulfill a City Council request stemming from the recent City Manager selection process.

BACKGROUND AND DISCUSSION
As part of the selection process that resulted in the appointment of Andrew Murray as City Manager in May 2024, the City Council expressed an interest in receiving a presentation at a future City Council meeting on the roles of the City Council and City Manager and communicating the City Council’s collective goals and expectations to the new City Manager.

Roles and Responsibilities

The traditional roles of the City Council and City Manager in a council-manager form of operation are well documented in many publications. The International City/County Management Association (ICMA), the professional association of City Managers, describes the council-manager form or organization and roles as follows:

Under this form, residents elect a governing body to adopt legislation and set policy. The elected officials also focus on the community’s big-picture goals, such as community growth and sustainability.

The governing body hires a manager with authority to carry out those policies and oversee the local government’s day-to-day operations. The elected officials hire a professional city manager based on that person’s education, experience, skills, and abilities and not on their political allegiances. The elected officials supervise the manager’s performance, and if that person is not responsive and effective in their role, the elected officials have the authority to remove her or him.

Some traditional responsibilities of a City Manager include the following:
• Preparing the annual budget and capital improvement program, and ensuring the financial health of the community;
• Managing the delivery of local services, such as public works, police, fire, and public safety;

Date: September 24, 2024
Subject: PRESENTATION ON ROLES OF THE CITY COUNCIL AND CITY MANAGER IN

COUNCIL-MANAGER FORM OF OPERATION AND DISCUSSION OF CITY COUNCIL’S GOALS FOR CITY MANAGER

Page 2 ends

• Serving as a primary liaison between the city and residents, business owners, and other stakeholders; • Collaborating with the mayor and city council to develop long-term visions for the community; • Recruiting, hiring, and supervising the local government workforce; • Responding to emergency crises; and
• Addressing concerns raised by citizens.

As noted above, the City Council supervises the City Manager’s performance. In order for the City Manager to meet the performance expectations of the City Council, it is beneficial for the City Council to clearly communicate its performance expectations to the City Manager.

City Council Priorities

During its most recent strategic planning effort, the City Council established the following five priorities for the community and City organization:
• Public Safety
• Efficient, Effective & Responsive Government
• Economic Development
• Housing and the Unhoused
• Youth Development

City Manager Goals

A discussion of the City Council’s goals for and expectations of the City Manager is a good opportunity for the City Manager to share information with the City Council about the Manager’s goals. City Manager Murray’s overarching goal is to provide excellent service to the City Council, community, and City organization in order to achieve the City Council’s priorities. City Manager Murray intends to provide excellent service and achieve the City Council’s priorities by creating strong relationships and communication; helping make the City organization as efficient and effective as possible; and developing smart strategies to address key issues to improve quality of life. City Manager Murray will observe the following core values in pursuing his work:
honesty, integrity, respect, compassion, accountability, collaboration, equity, effectiveness, and creativity.

Over the course of the first three months with the City, City Manager Murray has focused on the following activities:
• Creating relationships (with Council Members, City staff, key community stakeholders, and peer agencies);
• Gaining an understanding of all key City programs and procedures and beginning to formulate plans to appropriately resource them and ensure they are efficient and effective; and • Gaining an understanding of City Council priorities and community issues and beginning to formulate plans to achieve them.

Over the course of the fourth through six month with the City, City Manager Murray intends to focus on the following activities:
• Continuing to build relationships and increase communication and engagement; Date: September 24, 2024
Subject: PRESENTATION ON ROLES OF THE CITY COUNCIL AND CITY MANAGER IN

COUNCIL-MANAGER FORM OF OPERATION AND DISCUSSION OF CITY COUNCIL’S GOALS FOR CITY MANAGER

Page 3 ends

• Implementing near-term opportunities to appropriately resource and improve the efficiency and effectiveness of City programs and procedures and continue developing longer-term assessments and plans; and
• Implementing near-term opportunities to achieve City Council priorities and address community issues and continue developing longer-term plans.

City Manager Murray will present the goals, values, and activities listed above to the City Council for their review and feedback at the September 24, 2024 Council meeting.

City Council Goals and Expectations

Mr. Gorton will speak with Council Members about their goals for and expectations of City Manager Murray in advance of the September 24, 2024 Council meeting and will present a summary at that meeting.

Subsequent to City Manager Murray’s and Mr. Gorton’s presentations, City Manager Murray and the City Council will discuss the City Council’s goals for and expectations of the City Manager and the City Council will provide direction to the City Manager. City Manager Murray’s employment agreement states that the City Council will conduct an informal evaluation of the City Manager’s performance in November of 2024. The goals and expectations communicated during the September 24, 2024 Council meeting can serve as a basis for this informal performance evaluation.

FISCAL IMPACT
There is no fiscal impact from the City Council receiving a presentation on roles and communicating goals for and expectations of the City Manager.

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. Frameable Code of Ethics (tenets only) April 2023 (1)

CONTACT
Andrew Murray, City Manager (707) 648-4576
[email protected]

ICMA CODE OF ETHICS

The mission of ICMA is to create excellence in local governance by developing and fostering professional local government management worldwide. To further this mission, certain principles, as enforced by the Rules of Procedure, shall govern the conduct of every member of ICMA, who shall:

1. We believe professional management is essential to effective, efficient, equitable, and democratic local government.

2. Affirm the dignity and worth of local government services and maintain a deep sense of social responsibility as a trusted public servant.

3. Be dedicated to the highest ideals of honor and integrity in all public and personal relationships in order that the member may merit the respect and confidence of the elected officials, of other officials and employees, and of the public.

4. Serve the best interests of all community members.

5. Submit policy proposals to elected officials; provide them with facts, and technical and professional advice about policy options; and collaborate with them in setting goals for the community and organization.

6. Recognize that elected representatives are accountable to their community for the decisions they make; members are responsible for implementing those decisions.

7. Refrain from all political activities which undermine public confidence in professional administrators. Refrain from participation in the election of the members of the employing legislative body.

8. Make it a duty continually to improve the member’s professional ability and to develop the competence of associates in the use of management techniques.

9. Keep the community informed on local government affairs. Encourage and facilitate active engagement and constructive communication between community members and all local government officials.

10. Resist any encroachment on professional responsibilities, believing the member should be free to carry out official policies without interference, and handle each problem without discrimination on the basis of principle and justice.

11. Manage all personnel matters with fairness and impartiality.

12. Public office is a public trust. A member shall not leverage his or her position for personal gain or benefit.

Adopted by the ICMA Executive Board in 1924, and most recently revised by the membership in April 2023.

Vallejo City CouncilSeptember 24, 2024

Vallejo City Council
September 24, 2024