RECOMMENDATION TO APPROVE
THE ISSUANCE OF QUALIFIED
501(C)(3) BONDS BY CALIFORNIA
MUNICIPAL FINANCE AUTHORITY
TO STEP UP HOUSING FOR THE
ACQUISITION AND CONVERSION
OF BAY VILLAGE APARTMENTS
MARKET RATE UNITS TO INCLUDE
AFFORDABLE HOUSING UNITS
Action item: 9.A
Alicia M. Jones
Housing Director
November 4, 2025
Background and Discussion
The public hearing under the Tax and Equity Fiscal Responsibility Act ("TEFRA") in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the "CMFA"), a joint exercise of powers authority and public entity of the State of California concluded October 28, 2025, by Vallejo City Council.
The purpose of the bonds is to assist local governments, non-profit organizations, and businesses with the issuance of both taxable and tax-exempt debt.
TEFRA public hearings provide the public and interest groups an opportunity to comment on the issuance of bonds by CMFA. The hearings are held in the jurisdiction a project is located, and that the governing body approve the proposed financing.
Background and Discussion
Project: Bay Village Apartments
Currently Market Rate Units
Conversion to mix of affordable housing and market rate units.
Non-Profit Developer: Step Up Housing
Michael Potter, Board Chair for Step Up Housing
California Municipal Finance Authority (CMFA)
Travis Cooper, Finance Advisor CMFA
Purpose:
• Step Up Housing has asked that the California Municipal Finance (the “CMFA”) be the issuer of tax-exempt financing in an amount not to exceed $80,000,000. The proceeds of the bonds will be used to finance or refinance the acquisition, rehabilitation, improvement and equipping of a rental housing project located at 1107 Porter Street, Vallejo, California known as Bay Village Apartments.
• This action is Council consideration of the approval of an issuance of bonds by another public agency for a project to be constructed within the City of Vallejo and not an issuance of bonds by the City of Vallejo. The City has no financial obligation for these bonds.
Recommendation
• The Borrower has requested that the CMFA issue one or more series of revenue bonds in an aggregate principal amount not to exceed $80,000,000, including but not limited to revenue bonds issued as part of a plan to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 1107 Porter Street, Vallejo, California, known as “Bay Village.” • Staff recommends City Council Adopts a Resolution approving the issuance of the Bonds by the CMFA for the that the City Council adopt a resolution approving the issuance of bonds by the CMFA for the benefit of the Borrower. Such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code, and the California Government Code Section 6500.
CONTACT(S)
Alicia M. Jones, Housing Director
[email protected]
UPDATE -PUBLIC SAFETY STAFFING EMERGENCY
Jason Ta, Chief of PoliceNovember 4, 2025
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ADJUSTMENTS FOR LOWER STAFFINGService Model Reduction (“Phase #1”)•Prioritize responses to certain calls for service (CFS) -CompletedRotation of Officers to Patrol Shifts (“Phase #2“)•Non-patrol officers filling vacant patrol slots -CompletedTemporarily Eliminate (“Collapse”) Traffic Division (“Phase #3”)•Collapsed Traffic Division -Completed Modify Patrol Shifts to 12-hours or Another Staffing Model (“Phase #4“)•Due to recent staffing trends, Phase #4 does not appear to be needed 3 –By July 2025, expect to…•Assign an Officer back to reconstituted Traffic Unit–Effective September 20thassigning a 2ndtraffic officer (1-Sgt, 2 Ofc)•Assign an Officer back to federal task force–TBD -Pending additional staffing numbers•Assign four Officers to a dedicated Problem Oriented Policing (POP) Unit –Effective September 20th( 1-Sgt, 1-Cpl, and 2 Ofc’s)•Increase number of Police Assistants (community service officers) over time to supplement officers–Effective October 28, 2024, a Police Assistant was assigned to the Traffic Unit to address abandoned vehicles full time.
Staffing Level Has Begun to Increase Modestly
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6 CURRENT STAFFING NUMBERSTotal Sworn Staffing8180Modified Duty Officers22Off on Worker’s Comp.11Sworn Working Full Duty7877 Anticipated Officers Resigning11Officers Starting /Final Offers00 Officers Working Patrol4640Supervisors Working Patrol (Sgts)55Officers in FTO20 09-09-2025Current
–Sheriff’s Office contract services •SB 1379 approved by Gov. Newsom Sept of 2024•Implementation of either (9-23-25 B.O.S. decision)–Solano SO contract services (as proposed or reduced)–Continued assistance from the CHP•CHP sideshow deterrence detail and/or increased enforcement–Expansion of the Security Guard program–Expansion of technology to help reduce crime and aid with investigations Options Being Explored to Supplement Officers
VPD Average Response Times
•August 2025 (12-month average as compared to SPLY)•Priority 1 –50% improvement•Priority 2 –23% improvement•Priority 3 –22% improvement August/September 2024 -34 Officers assigned to Patrol
August/September 2025 -46 Officers assigned to Patrol
Revitalize VPD Community Volunteer Program •To increase community engagement, expand department capacity for non-enforcement duties, and strengthen trust •Cost-effective alternative to additional sworn police staffing •A phased launch can begin in January 2026 –Request Council's consideration and finding to continue the declared State of Local Emergency due to ongoing public safety staffing challenges Continuation of Local Emergency –Public Safety Staffing
CONTACT(S)
Jason Ta, Chief of PoliceBob Knight, Deputy Chief of Police Mare Island Infrastructure Assessment (MIIA)Presentation to the City of Vallejo City Council November 4, 2025 Anne Girtz, PEDoug Moore, PE
Gillian Haen, Assistant City Manager / Interim Economic Development DirectorIvette Iraheta, Economic Development Program Manager
Agenda1.Project Overview2.Project Goal & Objectives3.Infrastructure System Assessment & Findings4.Next Steps, Q&A Inspection on Railroad Avenue
Project Overview•Partnered with VFWD/Mare Island Co. to pursue EDA grant•EDA Grant Awarded to the City in Sept. 2021 •Additional funding requested from EDA and received, June 2023•Originally a three (3) year grant, but with increased funding became a four (4) year grant project; Grant close-out Dec. 2025 EDA Grant$960,000MIC Local Share$326,365Local Match$240,000EDA Increase$555,927Total Project Cost$2,082,292 •Mare Island Infrastructure Assessment (MIIA): Assessment of Water, Sewer, Storm Drainage, Seawall, Roads, and Dry Utility infrastructure systems across the Island Mare Island: Getting Ready for the Future
Waterfront north of the ferry landing at Mare Island Naval Shipyard, circa 1885. Photograph from the William H. Topley Collection. Courtesy of Mr. Charles M. Loring, Napa, California, 1969. •Infrastructure dates back over 100 years, some to the original Navy development of the Island.•Many of these systems are aging, in poor condition, or undocumented all together.•To support growth and redevelopment, we must first understand the current condition of Mare Island’s infrastructure systems.
MIIA Project Goal & Objectives
Evaluating existing conditionIdentify what needs to be fixed nowPredict future capacity demandsIdentify required infrastructure Provide a comprehensive understanding of the current condition of infrastructure systems on the island and the improvements required to support the successful redevelopment of Mare Island.
Water System AssessmentWhat is the Current Condition?•Reviewed age of pipelines, tank, valves, meters •Inspected water tank including diving•Evaluated seismic resilience of tank •Tested 8 water pipelines for corrosion Mare Island concrete water tank, constructed 1999
What is the Capacity –Can it Serve Mare Island Now and in the Future?•Developed a hydraulic model to check whether the system meets design and performance standards
Water FindingsAging Infrastructure•60% of pipelines are 100+ years old –which is older than water pipelines are expected to last.Pipeline Corrosion•Testing showed a range of corrosion, from negligible to significant.•Some pipes believed to be 100+ years old were tested to be in fair to good condition.
Side of pipe with minor surface corrosion
Top of excavated pipe
Water Pipeline Age
Water FindingsTank Condition•The one tank is in good condition and requires only minor repairs.System Capacity & Reliability•3.9 miles of pipeline is recommended to be upsized or replaced to support near-term development and system reliability.
Minor corrosion on inlet pipe flange (interior of water tank)
Roads System AssessmentsWhat is the Current Condition?•Reviewed and catalogued 21 miles of streets (100% of the Island, or 114 “street sections”)•Took samples of road layers and tested pavement strength & thickness•Used testing results and surveys to evaluate pavement condition Dynamic cone pentrometer testing to estimate structural layer thicknesses Pavement boring
Roads Condition •Heaviest wear on industrial corridors•Most MI paved roads (PCI 76) are in better condition than the average mainland City road (PCI 48)•PCI ranges from 0 and 100; New road = 100Repair PlanSurface Seal Treatments (within 2-3 Years): •Slurry Seal –17.5 sections•Rubberized Cape Seal –7.5 sectionsHeavier Rehabilitation (within 3-5 Years): •Rebuild Top Layers (Cold-in-Place Recycling + Overlay) –7 sections•Partial Rebuild (Mill & Overlay) –12.5 sections•Remove and Replace –4.5 sections Recommended Road Treatments
Roads Findings
Island Energy (electric and natural gas)Comcast/Xfinity (cable communications)AT&T (telephone and cable communications)VIPFiber(City-owned broadband infrastructure)Dry UtilitiesWhat Did We Do?•Identified and contacted existing utility companies•Gathered existing maps, plans, schematics, and reports•Discussed current coverage, planned expansions, and concerns for serving future development What Did We Find?•Many were installed or reconstructed after the Navy left (1996), so the systems are generally newer than the water, sewer, storm systems. •South of G Street àfunctional and easily expandable•North Mare Island àeither non-existent or rudimentary and will need to be completely designed and constructed
Sea Wall•Extends ~1.9 miles on the east side of the Island along the MI Strait •Protects the land from waves, tides, flooding, and sea level rise; supports marine operations –docks and piers for ships•Built originally over 100 years ago•Earliest repair drawings date to 1921; also from 1940s, and 1980s
EXTENTS OF MARE ISLAND SEA WALL
Sea Wall Findings•Built and repaired with different materials and methods. •Some areas are in poor condition and need repairs.•Not adequate for Sea Level Rise (SLR) projections.•More detailed inspections are required (below water, materials testing) before repairs or upgrades can be designed. •Improvements should be coordinated with redevelopment, SLR.
Underside section with heavy concrete damage (spalling) and exposed rebar. Note culvert ¾ filled with silt.
Existing sewer and storm infrastructure is inadequate to support current and/or future uses. •Most sewer infrastructure is old, poor condition, and not built to current standards. •Significant inflow and infiltration (I&I) to the sewer system; immediate action is needed to reduce I&I.•Storm drain system requires significant upgrades to handle sea level rise and storms.•Timing of repairs/rehabilitation and capacity increases should be coordinated with redevelopment.
Sewer & Storm Drainage Findings
Sewer and storm systems were presented at 10/21 VFWD Board Meeting Overall Recommendations1)Fix and Upgrade Key Infrastructure First•Start with repairs that affect reliability, safety, and support planned development•Phase future upgrades with development 2) Obtain More Information Where There are Still Questions •Perform additional investigations•Design and plan adaptively3) Plan for Sea Level Rise•Begin development of a long-term strategy to protect Mare Island’s shoreline •Plan should support today’s infrastructure and future development 4) Continue Stakeholder Coordination•MIIA Shared, Interactive WebMap Recommendations & Next Steps 1.Receive presentation –provide feedback/input for completion2.West Yost will finalize MIIA report3.Close out EDA assessment grant by 12/31/20254.Report informs the MISP and CEQA/NEPA environmental impact review5.Utilize the report findings to apply for another EDA grant for further sea wall and sewer assessments6.Utilize both reports to apply for infrastructure funding for implementation of necessary improvements to support redevelopment of the island concurrent with the MISP implementation THANK YOUQuestions or Comments?