Agenda packet — West Sacramento City Council, August 21, 2024 (part 3 of 7)

ANALYSIS
Significant progress has been made in maintaining service levels for non-operating City properties, however, due to an increased number of identified parcels and heightened demand for services citywide, the contract and the associated budget are requested to be increased by $88,798.10.

Environmental Considerations
This action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines 15301 (Class 1). Class 1 consists of operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination.

Commission Recommendation
No Commission recommendations were provided.

Strategic Plan Integration
This item will advance work related to the City Council’s 2023 Strategic Plan Policy Agenda item, Sustainable Customer Service Model.

Alternatives
The City Council’s primary alternatives are summarized below:
1) Approve the recommended action.
2) Make adjustments to the recommended action; or
3) Decline to approve or delay the recommendation action.

Coordination and Review
This report was prepared by the Capital Projects Department and has been coordinated with and reviewed by the Public Works Operations and Maintenance Department and the Finance Department.

Budget/Cost Impact
The budget appropriation for the professional services outlined herein is included with the Mid-Term Operations and Maintenance Budget within the Capital Projects Department, Real Property and Property Management Division budget (104-9057).

ATTACHMENT(S)
1) ATT-1 CPE23-231 Brightview Amendment 1 082124
2) ATT-2 Exhibit A Schedule of Fees 082124
371
Brightview Landscape Services, Inc.

CPE23-231 – Contract Amendment 1
Expires 10/1/25
AMENDMENT NO. 1
to the

CONTRACT FOR SERVICES
between the

CITY OF WEST SACRAMENTO
and

BRIGHTVIEW LANDSCAPE SERVICES, INC
October 2, 2023
This Amendment No. 1 to the Contract for Services between the City of West Sacramento and Brightview Landscape Services, Inc dated October 2, 2023 is made and entered into this 21st day of August, 2024. Except as expressly amended herein, the October 2, 2023 Contract for Services is in full force and effect.

RECITALS

WHEREAS, the City and Contractor executed an Agreement for Professional Services dated October 2, 2023, for landscape maintenance services at various properties throughout the City of West Sacramento in an amount not to exceed $50,000; and WHEREAS, non-operating City parcels are in need of ongoing maintenance; and WHEREAS, the contractor has presented an estimate of fees to continue maintenance of these sites (attached hereto as Exhibit A); and
WHEREAS, additional compensation in the amount of $88,798.10 is needed to complete the project; and
WHEREAS, the City and Contractor desire to amend said contract.

NOW, THEREFORE, IT IS MUTUALLY AGREED by parties hereto to amend said agreement as follows:

I. SCOPE OF SERVICES:

The scope of services as set forth in the Contract for Services dated October 2, 2023, shall be revised to reflect the locations and rates as outlined in Exhibit A dated August 1, 2024.

II. COMPENSATION:

The compensation as set forth in the Contract for Services dated October 2, 2023, shall be revised to include the following:

The compensation shall be increased by $88,798.10 to cover additional services, but in no event shall total compensation exceed $138,798.10 without City’s express written approval.

III. TERMS:

The contract term as set forth in the Contract for Services dated October 2, 2023, shall remain in effect until October 1, 2025.

IN WITNESS WHEREOF the parties hereto have executed this Agreement as the date herein set forth.
372
Brightview Landscape Services, Inc.

CPE23-231 – Contract Amendment 1
Expires 10/1/25

CITY OF WEST SACRAMENTO
By:

Amanda Berlin, Assistant City Manager

BRIGHTVIEW LANDSCAPE SERVICES, INC
By:

Fairlight Beard, Vice President and General Manager

APPROVED AS TO FORM
By:

Jeffrey Mitchell, City Attorney
ATTEST:

By: ________________________________________________________ Jennifer Cusmir, City Clerk
373
FY 2024/25 Monthly* FY 2025/26
Address APN
(12mos; 7/2024-
6/2025)
(3 mos; 7/2025-
9/2025) Contract Cost Cost Center
Lighthouse/Fifth St. Widening: 485 Lighthouse Dr. 010-523-037-000 $ 4,836.00 $ 403.00 $ 1,209.00 104-9657-5561 West Capitol Avenue: 1801 West Capitol Ave 067-270-004-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 West Capitol Avenue: 2400 West Capitol Ave. 008-441-007-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 West Capitol Avenue: 2600 West Capitol Ave. 008-441-016-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Grand Gateway Master Plan: 820, 824, 826 West Capitol 008-150-167, 066, 033 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Grand Gateway Master Plan: 808, 811, 815 West Capitol Ave. 067-330-002, 017 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 West Capitol Avenue: 4761 West Capitol Ave 067-010-026-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Bridge Specific Plan 212 Tower Bridge Gateway 010-422-041-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Washington Specific Plan 231 2nd Street 010-102-010-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Stone Locks Frontage 1821 Jefferson Blvd 067-180-005-000 $ 10,400.00 $ 867.00 $ 2,601.00 104-9657-5561 Locks Drive & Village Pkwy 2100 Locks Drive 067-180-075, 074 $ 6,144.00 $ 512.00 $ 1,536.00 104-9657-5561 Commercial Parking Lot 1255 Halyard Drive 067-133-007-000 $ 15,624.00 $ 1,302.00 $ 3,906.00 104-9657-5561 Fire Station 42 Excess Parcel 3585 Jefferson Blvd 046-151-017-000 $ 4,992.00 $ 416.00 $ 1,248.00 104-9657-5561 Residential Lot 628 Cummings Way 1/2 014-783-030-000 $ 3,024.00 $ 252.00 $ 756.00 104-9657-5561 Residential Lot 101 5th Street 010-492-002-000 $ 3,024.00 $ 252.00 $ 756.00 104-9657-5561 YCTD Storage Yard (Lease) 528, 540, 544 Harbor Blvd 008-362-009, 010 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 2ft wide strip behind sidewalk South
side of C St- Between 3rd & 4th St 333, 327, 325, 319 & 305 C Street 010-482-013, 014, 017
& 019 $ 2,247.00 $ 187.25 $ 561.60
Total $ 71,037.80 $ 17,760.30 $ 88,798.10
*Monthly costs are rounded up to the nearest tenth.

Exhibit A
Schedule of Fees
The table is an estimate. Actual costs may vary based on need. 374
FY 2024/25 Monthly* FY 2025/26
Address APN (12mos; 7/2024-6/2025) (3 mos; 7/2025-9/2025) Contract Cost Cost Center Lighthouse/Fifth St. Widening: 485 Lighthouse Dr. 010-523-037-000 $ 4,836.00 $ 403.00 $ 1,209.00 104-9657-5561 West Capitol Avenue: 1801 West Capitol Ave 067-270-004-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 West Capitol Avenue: 2400 West Capitol Ave. 008-441-007-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 West Capitol Avenue: 2600 West Capitol Ave. 008-441-016-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Grand Gateway Master Plan: 820, 824, 826 West Capitol 008-150-167, 066, 033 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Grand Gateway Master Plan: 808, 811, 815 West Capitol Ave. 067-330-002, 017 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 West Capitol Avenue: 4761 West Capitol Ave 067-010-026-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Bridge Specific Plan 212 Tower Bridge Gateway 010-422-041-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Washington Specific Plan 231 2nd Street 010-102-010-000 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 Stone Locks Frontage 1821 Jefferson Blvd 067-180-005-000 $ 10,400.00 $ 867.00 $ 2,601.00 104-9657-5561 Locks Drive & Village Pkwy 2100 Locks Drive 067-180-075, 074 $ 6,144.00 $ 512.00 $ 1,536.00 104-9657-5561 Commercial Parking Lot 1255 Halyard Drive 067-133-007-000 $ 15,624.00 $ 1,302.00 $ 3,906.00 104-9657-5561 Fire Station 42 Excess Parcel 3585 Jefferson Blvd 046-151-017-000 $ 4,992.00 $ 416.00 $ 1,248.00 104-9657-5561 Residential Lot 628 Cummings Way 1/2 014-783-030-000 $ 3,024.00 $ 252.00 $ 756.00 104-9657-5561 Residential Lot 101 5th Street 010-492-002-000 $ 3,024.00 $ 252.00 $ 756.00 104-9657-5561 YCTD Storage Yard (Lease) 528, 540, 544 Harbor Blvd 008-362-009, 010 $ 2,305.20 $ 192.10 $ 576.30 104-9657-5561 2ft wide strip behind sidewalk South side
of C St- Between 3rd & 4th St 333, 327, 325, 319 & 305 C Street 010-482-013, 014, 017
& 019 $ 2,247.00 $ 187.25 $ 561.60
Total $ 71,037.80 $ 17,760.30 $ 88,798.10
*Monthly costs are rounded up to the nearest tenth.

Exhibit A
Schedule of Fees
The table is an estimate. Actual costs may vary based on need.

Attachment 2
375
376

CITY COUNCIL AGENDA REPORT
MEETING DATE: August 21, 2024 ITEM # 5
SUBJECT:

CONSIDERATION OF APPROVAL OF RESOLUTION 24-88 AUTHORIZING THE CITY

MANAGER TO EXECUTE GRANT AGREEMENTS WITH THE CALIFORNIA

DEPARTMENT OF TRANSPORTATION FOR TWO SUSTAINABLE TRANSPORTATION

PLANNING GRANT AWARDS
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Jimmy Fong, Senior Transportation Engineer
Steven Rosen, Associate Transportation Planner
Community Development Department
ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [ X ] Action

OBJECTIVE
The purpose of this report is to present City Council with sufficient information to approve Resolution 24-88 authorizing City Manager to accept two Fiscal Year 2024-25 Sustainable Transportation Planning Grant awards and authorize the City Manager to execute necessary grant agreements with California Department of Transportation.

RECOMMENDED ACTION
Staff respectfully recommends that the City Council adopt Resolution 24-88:
1) Authorizing the City Manager, or designee, to accept a grant award, in the amount of $309,855, from the California Department of Transportation Fiscal Year 2024-25 Sustainable Transportation Planning Grant, for the Bicycle, Pedestrian, and Trails Master Plan Update; and 2) Authorizing the City Manager, or designee, to accept a grant award, in the amount of $354,120 from the California Department of Transportation Fiscal Year 2024-25 Sustainable Transportation Planning Grant, for the Vehicle Miles Traveled Reduction and Mitigation Fee Program; and 3) Authorizing the City Manager, or designee, to sign and enter into funding agreements with California Department of Transportation and take such other actions as necessary or appropriate to obtain the Sustainable Transportation Planning Grant funding; and
4) Approve Resolution 24-88 Adopting related appropriations.

BACKGROUND
In September 2023, California Department of Transportation’s (Caltrans) Division of Transportation Planning issued a statewide solicitation for applications under the Sustainable Transportation Planning Grant (STPG) Sustainable Communities category totaling $29.5 million. The purpose of the grant program is to fund local and regional multi-modal transportation and land use planning projects that support state goals, implements Regional Transportation Plans/Sustainable Communities Strategies, contribute to the state’s greenhouse gas emissions reduction targets, and address the needs of underserved communities.

In January 2024, the City submitted two applications for funding consideration under the Caltrans STPG Sustainable Communities category: 1) Bicycle, Pedestrian, and Trails Master Plan (BPTMP) Update; and 2) Vehicle Miles Traveled Reduction and Mitigation Fee Program.

ANALYSIS
In July 2024, Caltrans announced a total of 146 applications were received under the STPG Program, with requests totaling approximately $73.9 million. Of these applications, Caltrans awarded 89 applications, totaling approximately $51.4 million. The City has been notified that both projects have been conditionally awarded for funding, pending adoption of the proposed Resolution 24-88 (Attachment 1).

The BPTMP Update was awarded $309,855. The BPTMP Update will inform the City of West Sacramento of the existing conditions for active transportation in West Sacramento and serve as a guide for the next five to ten years of investment in the active transportation network. The BPTMP Update is necessary because the City has made enough progress toward the goals laid out in the 2018 BPTMP that new goals are needed to keep us moving forward: New links are in the active transportation network, major projects are breaking ground, and COVID-19's changes to commute and retail activity necessitate establishing a new baseline and updated active transportation planning goals. The BPTMP is due for an update per the City’s General Plan Mobility Element, Implementation Program 12 – “The City shall review and update the Bicycle, Pedestrian, and Trails Master Plan at least every five years.”
377
FY24-25 Caltrans Sustainable Transportation Planning Grant Awards August 21, 2024

Page 2 ends

The Vehicle Miles Traveled Reduction and Mitigation Fee Program was awarded $354,120. Senate Bill 743 (SB 743) replaced vehicle delay with Vehicle Miles Traveled (VMT) as a finding of significance under the California Environmental Quality Act (CEQA), and the City desires to establish a VMT mitigation fee to support mobility improvements that would be more effective in reducing VMT and to streamline California Environmental Quality Act clearance. A VMT Reduction and Mitigation Program can provide a funding source and/or support the implementation of projects/programs identified the City's BPTMP; West Sacramento Mobility Action Plan; the Sacramento Area Council of Government’s Metropolitan Transportation Plan/Sustainable Communities Strategy; and state related efforts to invest in active transportation, climate change reduction, and underserved communities. Per the City’s General Plan Mobility Element, Implementation Program 14 – “The City shall develop and implement a VMT Reduction Program that includes VMT-reduction strategies.” These grants will support climate change reduction goals, reduce traffic congestion, and enhance mobility in underserved neighborhoods.

Environmental Considerations
Not applicable.

Commission Recommendation
This is an administrative item and does not have new policy implications that would require Transportation, Mobility, and Infrastructure Commission input. As such, this item was not presented to the TMI Commission.

Once these projects are initiated, the TMI Commission and City Council will receive updates and opportunities to provide feedback.

Strategic Plan Integration
This action is a procedural action, but the recommended action will allow the City to accept grant funding that will advance planning and projects that relate to the following Strategic Plan Principles:

1. Mobility and Connectivity - Provide convenient and sustainable choices for people to get where they are going.

2. Climate & Energy Resiliency - Reduce climate impact, protect our environment and energy and improve reliability.

3. Inclusive & Diverse - Effectuate equitable investment and social/environmental justice in the city and cultivate an organization that reflects our city’s diversity.

4. Core Services & Infrastructure - Sustain a financially sound city in which everyone feels safe and secure, with quality services and well-maintained infrastructure.

Alternatives
The Council’s primary alternatives are:

1. Approve the recommended actions;

2. Council may elect to approve Resolution 24-88 but redirect staff to utilize alternative funding sources toward the local match; or

3. Council may elect not to approve Resolution 24-88 at this time.

Alternative 1 is staff’s recommended action. Alternative 2 is not recommended unless action can be taken to secure the local match at the time of presentation, as the City must demonstrate their local match commitment by resolution to Caltrans no later than September 13, 2024. Alternative 3 is not recommended, as the City would be forced to forfeit the conditionally awarded grant funds from Caltrans and would not be able to proceed with work on these projects at this time.

Coordination and Review
This report was prepared by the Transportation & Mobility Division of the Community Development Department and received review from the Finance Department and City Manager’s Office.

Budget/Cost Impact
The midterm budget includes the appropriations for the Bike/Ped/Trails Master Plan project, both the grant funds and the local match. The VMT Reduction/Mitigation fee project has Council approved appropriations of $250,000 currently from Transportation Impact Fee funds. The attached resolution reduces this amount to the $45,880 local match required and adds the grant funding for this project. 378
FY24-25 Caltrans Sustainable Transportation Planning Grant Awards August 21, 2024

Page 3 ends

ATTACHMENT

1. Resolution 24-88
379
Attachment 1
RESOLUTION 24-88

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST SACRAMENTO

AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AGREEMENTS WITH

THE CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR A GRANT AWARD, IN THE AMOUNT OF $309,855, FOR THE BICYCLE, PEDESTRIAN AND TRAILS MASTER PLAN UPDATE, AND A GRANT AWARD, IN THE AMOUNT OF $354,120, FOR THE VEHICLE

MILES TRAVELED REDUCTION AND MITIGATION FEE PROGRAM
WHEREAS, the City of West Sacramento is eligible to receive Federal and/or State funding for certain transportation planning related plans through the California Department of Transportation (Caltrans); and
WHEREAS, Caltrans is offered an opportunity for the City to apply for the Fiscal Year 2024-25 Sustainable Transportation Planning Grant program; and WHEREAS, the City’s General Plan Mobility Element identifies Implementation Program 12 – “The City shall review and update the Bicycle, Pedestrian and Trails Master Plan at least every five years;” and
WHEREAS, the City’s General Plan Mobility Element identifies Implementation Program 14 – “The City shall develop and implement a VMT Reduction Program that includes VMT-reduction strategies. Projects and plans in Transit Priority Areas and in low-VMT areas are exempt from this VMT Reduction Program…;” and
WHEREAS, the City of West Sacramento submitted two applications – 1) Bicycle, Pedestrian and Trails Master Plan Update and 2) Vehicle Miles Traveled Reduction and Mitigation Fee Program – to the Caltrans Sustainable Planning Grant Program; and WHEREAS, on July 9th, 2024, the City Of West Sacramento was conditionally awarded grant funding from the FY 2024-25 Caltrans Sustainable Transportation Planning Grant Program in the amount of 1) $309,855 for the Bicycle, Pedestrian, and Trails Master Plan Update, and 2) $354,120 for the Vehicle Miles Traveled Reduction and Mitigation Fee Program; and
WHEREAS, the City of West Sacramento has available funds to fulfill its 11.47% required local match for the two grant awards: 1) $40,145 for the Bicycle, Pedestrian, and Trails Master Plan Update, and 2) $45,880 for the Vehicle Miles Traveled Reduction and Mitigation Fee Program; and
WHEREAS, a Restricted Grant Agreement is required to be executed with Caltrans before such funds can be claimed through the FY 2024-25 Sustainable Transportation Planning Grant Program; and
WHEREAS, approval is requested authorizing the City Manager, or designee, to execute such agreements and any amendments thereto; and WHEREAS, the grant and local match revenues for the Bicycle, Pedestrian, and Trails Master Plan project are included in the midterm budget proposed for adoption on tonight’s agenda, so this resolution corrects the budget for the Vehicle Miles Traveled Reduction and Mitigation Fee Program only; and
WHEREAS, the City Council has considered all information related to this matter, as presented at the public meetings of the City Council identified herein, including any supporting reports by City staff, and any other information provided during public meetings.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West Sacramento as follows:
380
Resolution 24-88

Page 2 ends

1. The City Council authorizes the City Manager, or designee, to accept the Caltrans Sustainable Transportation Planning Grant awards and execute all Restricted Grant Agreements and any amendments thereto with Caltrans.

2. The City Council hereby approves amendments to budget for the 2024-25 fiscal year as provided below:

SOURCES
$354,120 400-9900-4440/13005/4440 Caltrans Planning Grant/VMT Project $204,120 205-9211-4990 Transportation Improvement Fund
$354,120 TOTAL SOURCES
USES
$354,120 400-9900-4440/13005/4440 Citywide VMT Mitigation Fee Program ($204,120) 400-9900-5530/13005/5800 Citywide VMT Mitigation Fee Program $204,120 400-9900-5950/13005-5950 Transfer out from project $354,120 TOTAL USES
*Note – Interfund transfers are not included in funding sources and uses total to avoid duplication of total project budget and funding.

2. The City Council hereby finds that the facts set forth in the recitals to this Resolution are true and correct and establish the factual basis for the City Council’s adoption of this Resolution.

4. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED by the West Sacramento City Council this 21th day of August 2024, by the following vote:

AYES:

NOES:

ABSENT:

Martha Guerrero, Mayor
ATTEST:

Jennifer Cusmir, City Clerk
381

CITY COUNCIL AGENDA REPORT
MEETING DATE: August 21, 2024 ITEM # 6
SUBJECT:

CONSIDERATION OF APPROVAL OF RESOLUTION 24-83 AUTHORIZING THE CITY

MANAGER TO EXECUTE A GRANT AGREEMENT WITH THE YOLO-SOLANO AIR QUALITY MANAGEMENT DISTRICT FOR THE WEST SACRAMENTO – DOWNTOWN

SACRAMENTO ON-DEMAND RIDESHARE PILOT
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Stephanie Chhan, Senior Transportation Planner
Community Development Department
ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [ X ] Action

OBJECTIVE
The purpose of this report is to request City Council approval of Resolution 24-83 authorizing City Manager to execute a grant agreement with Yolo-Solano Air Quality Management District and approval of Amendment No. 1 to the Federal Contract for Professional Services with Nomad Transit LLC with service parameters for the West Sacramento - Downtown Sacramento On-Demand Rideshare Program Pilot.

RECOMMENDED ACTION
Staff respectfully recommends that the City Council:
1) Authorize staff to initiate the West Sacramento - Downtown Sacramento On-Demand Rideshare Pilot; 2) Approve the West Sacramento - Downtown Sacramento On-Demand Rideshare Program Pilot service parameters;
3) Approve and authorize the City Manager, or designee, to execute Amendment No. 1 to the Federal Contract for Professional Services with Nomad Transit LLC in the amount of $10,000; 4) Adopt Resolution 24-83 authorizing the City Manager, or designee, to execute all grant agreements and any amendments thereto with the Yolo-Solano Air Quality Management District for the Fiscal Year 2024 Clean Air Funds for the West Sacramento - Downtown Sacramento On-Demand Rideshare Pilot; and 5) Amend the On-Demand Rideshare Program budget to reflect the allocation of $13,700 in Clean Air Funds.

BACKGROUND
The West Sacramento On-Demand Rideshare Program was launched as a 1-Year Pilot on May 14, 2018, following robust Transportation, Mobility, and Infrastructure (TMI) Commission and City Council engagement dating back to June 2016. Due to its success, the City continued the Program. On June 5, 2024, the City Council awarded the incumbent operator Nomad Transit LLC, a wholly owned subsidiary of Via Transportation, the contract to continue to provide turn-key operations of the Program to the City.

Since the implementation of the On-Demand Rideshare Program, local residents, the TMI Commission, and City Council have expressed interest in, and growing demand for the program to serve Kaiser Permanente and the Sacramento Valley Amtrak Station in Downtown Sacramento. When City Council considered Amendment No. 1 to the Contract for Services with Nomad Transit, LLC on February 20, 2019, staff presented expansion scenarios into Downtown Sacramento. At the time, staff indicated that it would be costly to provide such a service while maintaining operating standards. Staff anticipated that these high-demand destinations combined with only two bridge crossings and peak-hour congestion would require a significant increase in vehicle and driver hours supply to maintain quality service for West Sacramento. In addition, the inter-agency coordination and required approvals identified at the time were seen as significant challenges.

Yolo County Transportation District (YoloTD) planned to initiate a Comprehensive Operational Analysis (also known as YoloGo) and planned YoloBus fixed route service enhancements to provide increased frequency between the West Sacramento Transit Center and Downtown Sacramento. In early 2020, the COVID-19 pandemic impacted both YoloTD’s transit service and the City’s On-Demand Rideshare Service. With the changes to YoloBus and the pandemic impacts to public transit, City staff suspended thoughts of expanding the On-Demand Rideshare Service to Downtown Sacramento and focused on managing the program. As ridership has recovered, staff has once again received requests to expand the On-Demand Rideshare Program into Downtown Sacramento.
382
West Sacramento - Downtown Sacramento On-Demand Rideshare Pilot August 21, 2024

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In January 2020, the Sacramento Regional Transit District (SacRT) began utilizing Via’s technology for software solutions and a mobile app for their on-demand microtransit system called SmaRT Ride. Their shift to Via has introduced an opportunity for collaboration not available in prior years and over the past few months Via has facilitated City and SacRT staff to identify common benefits and opportunities for greater partnership around microtransit.

Under Article XI, Section 9, Subsection A of the California Constitution: “A municipal corporation may establish, purchase, and operate public works to furnish its inhabitants with light, water, power, heat, transportation, or means of communication. It may furnish those services outside its boundaries, except within another municipal corporation which furnishes the same service and does not consent.” As such, following SacRT’s coordination on the subject with the City of Sacramento, West Sacramento, YoloTD and SacRT staff drafted a memorandum of understanding (MOU) that would allow for West Sacramento On-Demand rideshare service to pilot an expansion within SacRT’s service boundaries. On March 20, 2024, the City Council approved a Memorandum of Understanding (MOU) with the Sacramento Regional Transit District (SacRT) and YoloTD allowing West Sacramento On-Demand rideshare service to pilot an expansion within SacRT’s service boundaries. The MOU was signed on May 1, 2024 and will terminate on June 30, 2025, unless extended by mutual agreement or terminated earlier (Attachment 1).

As such, the City applied to Yolo-Solano Air Quality Management District’s (YSAQMD) Clean Air Funds (CAF) Program for $35,000 to support a Downtown Sacramento On-Demand Rideshare Pilot (Attachment 2). Staff and Via estimated a range between two to five percent annual ridership increase. The requested $35,000 would support a five percent increase in ridership, requiring $139,376 to support approximately 2,450 vehicle hours.

ANALYSIS
On June 12th, the YSAQMD Board awarded $13,700 to the West Sacramento - Downtown Sacramento OnDemand Rideshare Pilot (Pilot). This is a reduced funding award that would support a two percent increase in annual ridership, or approximately 3,900 rides. A two percent increase in annual ridership would require $55,750 for approximately 990 vehicle hours. Under this reduced funding scenario, the Pilot would conclude when 3,900 rides are complete. If there is high demand, this may be earlier than one-year.

On May 15, 2024, staff shared the grant application with the City Council during the On-Demand Rideshare Program budget and future continuation workshop. City Council expressed concerns regarding an expansion into Downtown Sacramento, which included not wanting to reduce the service area in the future given potential funding shortfalls, wishing to keep City tax dollars within the city boundaries, and concerns of impacts on service within the city boundaries. Due to City Council’s initial concerns regarding the West Sacramento - Downtown Sacramento On-Demand Rideshare Pilot during the budget workshops, staff is seeking City Council authorization to execute the Clean Air Funds grant agreement with YSAQMD through Resolution 24-83 (Attachment 3).

Staff is seeking City Council approval of Amendment 1 to the federal contract for professional services with Nomad Transit, LLC (Attachment 4) outlining the Pilot’s program parameters:
 Service Area: Rides in Downtown Sacramento will be limited to the following pick-up/drop-off locations:

Sacramento Valley Station, Kaiser Permanente Downtown Commons Medical Offices, and N Street/8th Street intersection. Exact pick-up/drop-off locations will be finalized with SacRT. The rides eligible for the West Sacramento - Downtown Sacramento On-Demand Rideshare Pilot must start or end in West Sacramento to certify the ride’s association to the City. As such, rides cannot be made between Downtown Sacramento pick-up/drop-off locations.
 Hours of Operation: The Pilot will run the same hours of operation as the City’s On-Demand Rideshare Program – 6AM to 11PM Mondays to Fridays, 9AM to 11PM Saturdays, 8AM to 8PM Sundays.  Fares: The fares for completed eligible rides in the Pilot will be subsidized by the Clean Air Funds, meaning that rides will be free. Though the City Council has shown interest in applying a surcharge on rides outside of the City’s limits, staff does not propose a charge or surcharge for eligible rides during the Pilot term. The intent of the Pilot is to gather data and understand extent of demand in expanding the OnDemand Rideshare Program service area into Downtown Sacramento. Staff does not know the current demand, and applying a charge or surcharge may be a confounding variable.  Pilot Term: Staff estimates a 5-month pilot term if there is high demand (5 percent increase in annual ridership) and a 12-month pilot term if there is low demand (2 percent increase in annual ridership).

The goal of the Pilot is to understand the demand to Downtown Sacramento using rideshare and use this information to determine whether the City’s On-Demand Rideshare Program should expand the service zone. 383
West Sacramento - Downtown Sacramento On-Demand Rideshare Pilot August 21, 2024

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Should City Council authorize the Pilot and adopt Resolution 24-83, staff will initiate the Pilot in Fall 2024. If the City Council recommends changes to the Pilot program parameters above, staff may need to return to SacRT and YoloTD to amend the MOU or return to YSAQMD to amend the scope of the Clean Air Funds grant.

As part of the microtransit MOU, the City, SacRT, and YoloTD will monitor the Pilot and potential impacts on local and intercity fixed-route transit. The MOU for the City expanding microtransit into Downtown Sacramento expires on June 30, 2025. Staff may request an extension to the MOU if the grant budget is not fully expended by June 30, 2025. Once the grant funds are expended and the Pilot concludes, staff will analyze the Pilot ridership data and return to City Council with the results and recommendations for future expansion into Downtown Sacramento. Staff will also release a survey to collect demographic and usage data for the Pilot participants.

If the City Council proposes to continue service in Downtown Sacramento as part of the On-Demand Rideshare Program, some potential future steps include:
 City will need to extend MOU or new MOU on microtransit services among the City, SacRT and YoloTD if Transportation Development Act Funds continue to fund the On-Demand Rideshare Program.  City Council will need to consider operations parameters and whether the parameters for the Downtown Sacramento zone differ from the existing Program. Staff will use data from the Pilot to recommend hours of operation, fare adjustments, adjustments to the pick-up/drop-off locations, or other operations parameters for a long-term expansion into Downtown Sacramento. These changes may require an amendment to the professional services contract with Nomad Transit, LLC.  City Council may need to consider and approve additional funding for an expansion. During the June 5th City Council meeting, the City Council approved the On-Demand Rideshare Program contract with Nomad Transit LLC, a subsidiary of Via Transportation, Inc. The estimated total Program cost for FY24- 25 through FY26-27 is $10,216,950 and staff estimated a shortfall of $1.05 million that will likely affect the Program in FY26-27. The Pilot will help the City understand how much an expansion to Downtown Sacramento may affect the Program budget and whether additional funds may be needed. It is possible that demand may be limited, and the existing vehicle hours could support rides without affecting existing service. However, if there is significant ridership growth resulting from ridership to/from Downtown Sacramento during peak hours, additional vehicle hours and/or vehicles may be needed which will increase the costs of the Program. Setting operations parameters for Downtown Sacramento rides will manage the additional costs for the program. For example, if the data indicates that the Pilot is significantly used for commuters, the City Council may consider setting limited hours during commute times which would reduce costs. City Council may also consider applying a surcharge for rides to or from Downtown Sacramento. The surcharge can be reinvested into the Program and can offset the additional costs of rides to/from Downtown Sacramento. Staff will continue to explore external grant opportunities to financially support a potential expansion.

Environmental Considerations
This action is not a project that is subject to CEQA because it is not an activity that may cause either a direct or reasonably foreseeable indirect physical change in the environment. (Pub. Resources Code, § 21065; CEQA Guidelines §§ 15060(c), 15378(a).)
The On-Demand Rideshare Program is exempt from CEQA as it can be seen with certainty that there is no possibility the activity in question may have a significant effect on the environment. (State CEQA Guidelines Section 15061 (b)(3)). The fundamental definition of a "significant effect" under CEQA is "a substantial adverse change in physical conditions". Per this definition, the operation shared-ride vehicles utilizing existing infrastructure with the intent of encouraging pooling and reducing traffic impacts by shifting community members out of higher vehicle miles traveled generating modes (i.e. single occupancy driving or ride hailing) does not constitute a significant impact.

Moreover, the project is within the scope of the EIR prepared for the General Plan 2035, and no new or substantially more adverse impacts would occur through implementation of the proposed project. The project directly implements multiple General Plan Mobility Element Policies aimed at providing a multi-modal transportation system that supports various modes and benefits community and environmental health. As a result, no new environmental document is required, consistent with State CEQA Guidelines Section 15162 and 15168(c)(2).
384
West Sacramento - Downtown Sacramento On-Demand Rideshare Pilot August 21, 2024

Page 4 ends

Commission Recommendation
City staff presented information regarding the Clean Air Funds grant application to TMI Commission on May 6, 2024. Generally, the TMI Commission was supportive of an expansion of the On-Demand Rideshare Program into Downtown Sacramento.

Strategic Plan Integration
The On-Demand Rideshare Program continues to advance the 2023 Strategic Plan principle of Mobility & Connectivity – “Provide convenient and sustainable choices for people to get where they are going.” This workshop on the budget furthers the City’s mission includes a City government that is financially sound and provides quality services to its residents and visitors.

Alternatives
The Council’s primary alternatives are:
1) Approve the recommended actions as stated above; or
2) Adopt Resolution 24-83, but direct conditions or modifications to the West Sacramento - Downtown Sacramento On-Demand Rideshare Pilot service parameters; or 3) Decline to adopt Resolution 24-83 and direct staff not to launch a West Sacramento - Downtown Sacramento On-Demand Rideshare Pilot at this time.

Staff recommends Alternative 1 as the City Council, TMI Commission, and public feedback has considered expanding the On-Demand Rideshare Program into Downtown Sacramento since the program’s inception.

Alternative 2 may require returning to SacRT and YoloTD to amend the microtransit MOU or to YSAQMD Board of Directors to approve any scope of work changes to the Clean Air Funds grant. Alternative 2 is not recommended because it may delay executing the grant agreement with YSAQMD and may require the City to extend the MOU with SacRT and YoloTD. Alternative 3 will require the City to decline the Clean Air Funds award from YSAQMD. Alternative 3 is not recommended because it will delay understanding the demand for ondemand microtransit services to Downtown Sacramento and the City will likely need to identify another grant program in the future to study or launch an expansion.

Coordination and Review
This report was prepared by the Transportation & Mobility Division of the Community Development Department with review and support from Finance and City Manager’s Office.

Budget/Cost Impact
Staff does not propose an increase to the On-Demand Rideshare Program budget. The program budget for FY24-25 through FY26-27 adopted by City Council on June 5, 2024 will support the Pilot. For FY24-25, this includes $3,247,258 for contracted services and $55,000 for staff time and resources. Approval of Resolution 24-83 would authorize the City Manager to execute a grant agreement with YSAQMD. By taking this action, City Council would be authorizing the acceptance of $13,700 in Clean Air Funds from the 2024 Clean Air Funds Grant program. The $13,700 will be reinvested into the On-Demand Rideshare Program, which still has a funding need estimated at approximately $1.05 million in FY2026-27.

ATTACHMENTS
1) Memorandum of Understanding for On-Demand Rideshare Transit Service Among the City of West Sacramento, Sacramento Regional Transit District, and Yolo County Transportation District 2) Yolo-Solano Air Quality Management District Clean Air Funds Program – Downtown Sacramento OnDemand Rideshare Pilot Application 3) Resolution 24-83
4) Amendment No. 1 to Federal Contract for Professional Services with Nomad Transit LLC 385
1 Memorandum of Understanding for On-Demand Transit Service Among the City of West Sacramento, Sacramento Regional
Transit District, and Yolo County Transporation District SacRT Resolution No. 2024-04-031

MEMORANDUM OF UNDERSTANDING FOR ON-DEMAND TRANSIT SERVICE

AMONG THE CITY OF WEST SACRAMENTO,

SACRAMENTO REGIONAL TRANSIT DISTRICT, AND YOLO COUNTY

TRANSPORTATION DISTRICT

THIS MEMORANDUM OF UNDERSTANDING FOR ON-DEMAND TRANSIT SERVICE is entered into effective this _____ day of _______________, 2024 among SACRAMENTO REGIONAL TRANSIT DISTRICT , the
CITY OF WEST SACRAMENTO , and YOLO COUNTY TRANSPORTATION DISTRICT ( YCTD ). SacRT, CITY, and YCTD

RECITALS
A. SacRT provides fixed-route, demand-response (SmaRT Ride) and complementary paratransit services (SacRT GO) in Sacramento County, as well as partnering to provide the Causeway Connection and associated complementary paratransit service within Yolo County.

B. YCTD provides fixed-route, demand-response (BeeLine), and complementary paratransit services (Yolobus Special) in Yolo County, as well as partnering to provide Sacramento International Airport service and associated complementary paratransit service within Sacramento County.

C. CITY, a municipality within Yolo County, is constitutionally authorized to provide its inhabitants with transportation services and currently provides demandresponse transit services through its On-Demand Rideshare service.

D. CITY
boundaries.

E. Under Article XI, Section 9 of the California Constitution, SacRT and CITY may not F. The parties desire to establish the terms and conditions for the granting of consent for the operation of CITY rideshare public transit services within jurisdiction.

NOW, THEREFORE, the Parties agree as follows:

1. CITY OPERATIONS WITHIN ACTIVATED SACRT BOUNDARIES
A. Subject to the provisions of this Section, CITY is hereby authorized to operate ondemand transit service and allow passengers to board and disembark within jurisdiction. The terms of this agreement pertain only to on-demand transit service. 1st May
Attachment 1
386
2 Memorandum of Understanding for On-Demand Transit Service Among the City of West Sacramento, Sacramento Regional
Transit District, and Yolo County Transporation District B. CITY will obtain prior written approval from SacRT before providing transit service . To obtain approval for a service zone or location, CITY must submit a written request directed to the party designated by SacRT for receipt of notices in accordance with Article 4, below. SacRT will respond to CITY of receipt by providing written notice of its acceptance or rejection of the request. SacRT use particular stop locations.
approval does not include consideration of nor is deemed to include consideration of the propriety of the proposed route, including such matters as safety. SacRT may revoke its approval as to a particular zone or stop unilaterally by providing CITY 60 written notice directed as specified in Article 4 below.

C. CITY must share anonymized ridership data for the on-demand transit service in with YCTD and SacRT. YCTD must share ridership data for local and intercity fixed route transit between West Sacramento and Sacramento with CITY and SacRT. Ridership data must be shared, at minimum, monthly while the MOU is in effect.

The Parties commit to monitor and discuss at mutually agreeable intervals potential - ridership.

2. FUNDING
The City is solely responsible for funding its own operations authorized under this MOU and will not seek funding contributions from SacRT or YCTD as a result of this MOU.

In addition, notwithstanding Public Utilities Code Section 99231(f), CITY will not assert any claim for additional Transportation Development Act funds as a result of operation of the demand-response service into jurisdiction.

3. DURATION OF THE MOU
This MOU will terminate on June 30, 2025, unless otherwise extended by mutual agreement or terminated earlier as set forth herein. CITY must present the MOU to City Council for approval to extend the MOU.

4. NOTICES
All notices and other communications under this MOU must be in writing and will be deemed to have been duly given (i) on the date of delivery, if delivered personally to the party to whom notice is given, or if made by email directed to the party to whom notice is to be given at the email address listed below, or (ii) at the earlier of actual receipt or the second business day following deposit in the United States mail, postage prepaid. Notices and other communications must be directed to the parties at the addresses shown below.

A party may change its person designated to receive notice, its email address, or its address from time to time by giving notice to the other party in accordance with the procedures set forth in this Article.

To SacRT: Sacramento Regional Transit District
387
3 Memorandum of Understanding for On-Demand Transit Service Among the City of West Sacramento, Sacramento Regional
Transit District, and Yolo County Transporation District Attn: James Drake
1102 Q Street, Suite 4100
Sacramento, CA 95811
Email: [email protected] To CITY: City of West Sacramento Attn: Jason McCoy
1110 W. Capitol Avenue
West Sacramento, CA 95691
Email: [email protected] To YCTD: Yolo County Transportation District Attn: Daisy Romero
350 Industrial Way
Woodland, CA 95776
Email: [email protected] 5. AGENCY RELATIONSHIP/INDEMNIFICATION A. Nothing in this MOU will be construed to create, nor do the parties intend to create, any contractual or other relationship, whether express or implied, of joint power, joint venture, partnership, principal-agent, independent contractor, master-servant, or otherwise that would result in either party being financially or otherwise responsible in whole or in part for bodily injury, death or property damage occurring as a proximate result of an act or omission arising out of the performance of this MOU or the provision of transit service by the other party. The imposition of such responsibility upon either party will be sufficient grounds for CITY, YCTD, or SacRT to terminate this MOU upon giving written notice thereof to the other in the manner provided in Article 4.

B. Each party to this MOU is to be held free by the other party from any and all liability, loss, and/or expense that arises in the manner described above.

C. Neither CITY, YCTD, nor SacRT is required to indemnify, defend, and hold harmless the other from any and all claims, demands, losses, or liability whether real or illusory as a result of this MOU.

6. Each party to this MOU understands and acknowledges that this MOU is not an employment contract among SacRT, YCTD, or CITY or among SacRT or YCTD and any agents, officers, or employees of any third party or third-party operator under contract with CITY to provide CITY transit service. SacRT and YCTD are compensation or any other benefits accruing under any federal or state law or acts to any employee or employees employed by CITY or by a third party or third-party operator in connection with the provision of CITY transit service. Similarly, CITY is not liable for any 388
4 Memorandum of Understanding for On-Demand Transit Service Among the City of West Sacramento, Sacramento Regional
Transit District, and Yolo County Transporation District to any employee or employees employed by SacRT or YCTD in connection with the provision of SacRT or YCTD transit service. Each party agrees compensation for its respective employees in accordance with State law.

7. INSURANCE
Each party to this MOU will maintain appropriate levels of insurance for the operation of its transit service.

8. GOVERNING LAW
The interpretation and enforcement of the MOU will be governed by the laws of the State of California, the state in which the MOU is signed. The parties agree to submit any disputes arising under the MOU to a court of competent jurisdiction located in Sacramento, California.

9. NONWAIVER
Waiver of any breach or default hereunder will not constitute a continuing waiver or a waiver of any subsequent breach either of the same or of another provision of this MOU.

10. SEVERABILITY
If any term, covenant, or condition of this MOU is held by a court of competent jurisdiction to be invalid, the remainder of this MOU will remain in effect.

11. TERMINATION FOR CONVENIENCE
Either party may terminate this MOU upon giving 60

12. NO OBLIGATION TO PROVIDE TRANSIT SERVICE
Nothing in this MOU is construed to require or to create an enforceable right in either party to require the other to provide a specified level or configuration of transit service during the term of this MOU.

13. MODIFICATION
No waiver, alteration, modification, or termination of this MOU will be valid unless made in writing and signed by the authorized representatives of the parties hereof.

14. INTEGRATION
This MOU embodies the entire agreement of the parties in relation to the scope of services herein described, and no other understanding whether verbal, written, or otherwise exists among the parties.

15. SUCCESSORS AND ASSIGNS This MOU will be binding upon and the benefits of this MOU will inure to the successors and assigns of the parties hereto. 389
5 Memorandum of Understanding for On-Demand Transit Service Among the City of West Sacramento, Sacramento Regional
Transit District, and Yolo County Transporation District IN WITNESS WHEREOF, the Parties have caused this MOU to be executed by their respective duly-authorized representative as of the Effective Date.

SACRAMENTO REGIONAL CITY OF WEST SACRAMENTO

TRANSIT DISTRICT
By: By:

HENRY LI AARON LAUREL
General Manager/CEO City Manager

YOLO COUNTY

TRANSPORTATION DISTRICT
By:

AUTUMN BERNSTEIN
Executive Director
Approved as to Legal Form: Approved as to Legal Form:

By: By:

OLGA SANCHEZ-OCHOA JEFFREY MITCHELL
General Counsel City Attorney
Attest:

By:

JENNIFER CUSMIR
City Clerk
https://sacrt01.sharepoint.com/sites/teamsGeneralCounsel/Contracts/2020 to 2024/K23Q4/MOU Microtransit West Sacramento CLEAN FINAL 2.29.24.docx 390
Yolo-Solano Air Quality Management District
2024 Clean Air Funds Application
Please complete this form. All fields are required. For details on project proposals including general project criteria, category-based project criteria and cost-effectiveness, please review the 2024 Clean Air Funds Program Information. Please contact District staff if you have questions regarding this form.

Attach required Project Proposal to this completed application form.

Applicant Information:

Business/Organization Name:

Physical Address:

City: State: Zip:

Mailing Address (if different from above):

City: State: Zip:

Primary Contact Name: Title:

Phone: Fax: Email:

Signing Authority Name: Title:

Phone: Fax: Email:

Project Information:

Project Title:

Brief Project Description:

Project Category: ܆Clean Vehicle Technology
܆Transit Services
܆Alternative Transportation
܆Public Information/Education
Start Date: Implementation Date*: Completion Date:

Project Life**: Not applicable to Public Education/Outreach Projects * Implementation date is the date that the project will begin it’s intended benefit to the community. E.g., school assemblies begin, construction completed, etc.
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Attachment 2
391
Funding Information:

Total Project Budget:

Period: Activity Description: $
Period: Activity Description: $
Period: Activity Description: $
Period: Activity Description: $
Total Project Amount: $
Funding Requested: $
Budget Breakdown
Expense Type YSAQMD Funding Match Funding Total
Capital $ $ $
Personnel $ $ $
Grant Administration $ 0.00 $ $
Total $ $ $
Source of Matching Funds: Funding Amount: Date Funding Available:
$
$
$
If reduced funding was available, would your project be able to proceed? Yes No If Yes, what is the minimum funding level at which your project could proceed? $ This application must be signed by the signing authority listed on this form. By signing this document, you are declaring that:
o All information contained in this document and in any attachment is true, accurate and complete to the best of your knowledge.
o The responsible official has the authority to apply for the grant funds on behalf of the applicant named.
o The applicant agrees to the terms and conditions of the agreement (included in the program information).
o Approved projects cannot be altered in any way without prior approval from the District (see draft agreement).

Signature: Date:

Print Name:

Application Deadline is 4:00 p.m. on Friday, April 19, 2024. Submit completed applications by:

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392
Yolo-Solano Air Quality Management District: 2024 Clean Air Funds Program West Sacramento-Downtown Sacramento On-Demand Rideshare Pilot 1 Section 1: Local Benefit
In 2018, the City of West Sacramento (City) launched the West Sacramento On-Demand Rideshare Program. Six years later, the program operates as a crucial part of the West Sacramento community, providing nearly 830,000 total rides. Ridership is now approximately 10% above pre-COVID levels, at a time in which many US transit agencies are still rebounding from ridership declines due to the Covid pandemic. This service is one of the most cost efficient microtransit programs in the country, with a cost per ride in 2023 of $13 per ride. For the passengers that comprise the 13,000+ rider accounts, opening the app on their phone (or calling in, for those without a smart phone or internet access) is a part of their routine, enabling them to get to where they need to go.

Since the implementation of the On-Demand Rideshare Program, local residents, the City of West Sacramento’s Transportation, Mobility, and Infrastructure Commission, and the City Council have expressed interest in, and growing demand for the program to serve Downtown Sacramento to access Kaiser Permanente, Sacramento regional transit options, and the Sacramento Valley Station. Currently, the Yolo County Transportation District (YoloTD) serves West Sacramento and the greater Yolo County with fixed route (Yolobus) and paratransit (Yolo Special) service. Yolobus fixed-route options in West Sacramento loop into Downtown Sacramento to provide regional connection, however there are still some inefficiencies and inaccessibility with the current fixed route service.

Supplemental A provides the transit route timetable for Yolobus routes in West Sacramento. Route 37 – the only fixed-route service connecting to the south part of the City – only operates on Mondays to Fridays with limited peak hour service. All local, fixedroute service ends by 7PM. Route 42A/B, provides service from 5AM to 11PM, but as an intercity route, it only traverses along the West Capitol Avenue corridor in West Sacramento. Overall, this leaves a transit gap and first-last mile gap for transit dependent people who work shifts outside the typical “9 to 5” job. As such, riders may have to take multiple methods of transportation, which extends travel times, discourages regional connectivity, and encourages reliance on single occupancy vehicular trips.

In comparison, the West Sacramento On-Demand Rideshare Program current operates citywide, corner-to-corner service on Monday to Fridays 6AM – 11PM, Saturdays 9AM – 11PM and Sundays 8AM – 8PM. Currently, fares are $3.50 or $1.75 for discounted riders (seniors and persons with disabilities), or riders can purchase a frequent rider pass, ViaPass, for 4 rides a day for 7 days for $15.

In January 2020, the Sacramento Regional Transit District (SacRT) began utilizing Via’s technology for software solutions and a mobile app for their on-demand microtransit system called SmaRT Ride. At the time, due to the COVID-19 pandemic impacts and

393
Yolo-Solano Air Quality Management District: 2024 Clean Air Funds Program West Sacramento-Downtown Sacramento On-Demand Rideshare Pilot 2 YoloTD’s planned Comprehensive Operational Analysis changes, City staff focused on managing the On-Demand Rideshare Program as is. As ridership has recovered and with SacRT’s shift to Via, in Fall 2023 Via facilitated conversations between City and SacRT staff to identify common benefits and opportunities for greater partnership around microtransit. As such, after coordination and conversations with the City of Sacramento and Yolo County Transportation District, a memorandum of understanding (MOU) was drafted that would allow West Sacramento On-Demand rideshare service to pilot an expansion within SacRT’s service boundaries. The MOU provides the opportunity to facilitate greater mobility and regional connectivity for West Sacramento residents who do not have a car or prefer to use rideshare transit services into Sacramento.

Furthermore, the City’s On-Demand Rideshare Program is served with a hybrid Toyota Sienna fleet – meaning lower tailpipe emissions than conventional internal combustion engine vehicles. The MOU is unilateral – it does not include provisions for SacRT to operate SmaRT Ride on-demand transit
within West Sacramento’s boundaries.

Proposed drop-off and pick-up zones or
locations in Sacramento are subject to
written approval from SacRT. The
parties will monitor the expansion for
potential impacts on local and intercity
fixed-route transit. The City Council and
the SacRT Board approved the MOU on
March 20, 2024 and April 8, 2024,
respectively. Currently, the MOU is
under route for signature by City,
SacRT, and YoloTD. The draft MOU is
attached as Supplemental B.

The City is seeking grant funding to
support a West Sacramento –
Downtown Sacramento On-Demand
Rideshare pilot expansion (Figure 1).

The goal of the pilot is to improve transit
service through new routes or
expanded offerings, promoting more
connectivity between these rapidly
growing regions. As such, rides must
either start or end in West Sacramento
– no rides in this pilot will be from and to
Existing On-Demand
1 Mile
Figure 1: Map showing the existing On-Demand
Rideshare zone and the pilot expansion zone in
relation to Yolobus service.

394
Yolo-Solano Air Quality Management District: 2024 Clean Air Funds Program West Sacramento-Downtown Sacramento On-Demand Rideshare Pilot 3 a location in Sacramento. By allowing riders to travel across Tower Bridge and into the adjacent city, West Sacramento and Via estimates that microtransit ridership will increase by 2-5 percent. In addition to encouraging shared rides on hybrid vehicles, this will open up economic opportunities and allow more equitable access to public transit in both communities.

Section 2: Project Merit
The expansion will reduce vehicle miles traveled (VMT) and total greenhouse gas emissions (GHGs) in the region by reducing the total number of single occupancy vehicle (SOV) trips and facilitating long-range trips on public transit. Riders will also be able to use the microtransit service to travel into the SacRT service boundaries, thereby enhancing the connectivity, integration, and coordination of various transit systems, including regional and local transit systems.

The on-demand platform utilized by this service includes advanced algorithms for vehicle assignment, routing, and tracking, and rider, safety driver, and administrator tools for endto-end service usage and monitoring. This includes powerful routing and passengeraggregation algorithms focused on pooling rides for maximum efficiency, reduced VMT, and fewer vehicles on the road.

The service is designed to help priority populations, including seniors, parents with small children, students, and those with low incomes, overcome potential first- and last-mile barriers to transit use. Instead of requiring access to a car or the ability to walk a considerable distance, the expanded microtransit system allows for anyone to book an affordable, low-emission shared ride to existing transit stations and other destinations in downtown Sacramento. In this manner, the microtransit service is designed to be complementary to the existing bus terminals, rail stations, and other shared mobility options. In addition, the app allows users to engage in multi-modal trip planning.

With anticipated award of this grant in June 2024, the City hopes to launch the pilot as soon as possible to be able to gather a year of data in line with the MOU expiration of June 30, 2025. The pilot will run until approximately 9,672 rides are completed or oneyear after pilot launch, whichever occurs first. If needed and should the pilot have a delayed launch, the MOU may be extended with City Council and the other parties’ approval.

395
Yolo-Solano Air Quality Management District: 2024 Clean Air Funds Program West Sacramento-Downtown Sacramento On-Demand Rideshare Pilot 4 Cost effectiveness:

The cost-effectiveness is based on eliminating auto trips for a 5 percent demand increase in ridership – assuming that 20 percent of West Sacramento’s riders use the service in lieu of a private vehicle.
$5,635.04 = $140,876
ݏ݊݋݅ݐܿݑ݁݀ݎ ݔܱܰ 2 + ݏ݊݋݅ݐܿݑ݁݀ݎ ܩܴܱ 3 + (ݏ݊݋݅ݐܿݑ݁݀ݎ ܯܲ 1 כ 20) Section 3: Matching Funds
West Sacramento estimates the following cost of this pilot based on demand levels, as shown in the table below:

Expansion Scenario
(Demand Increase)
Weekly Projected
Ridership
Weekly Projected
Vehicle Hours
Required
Annual Cost to
Run Pilot ($56.20
per vehicle hour)
2 Percent 75 19 $55,750
3 Percent 112 28.6 $83,626
5 Percent 186 47.7 $139,376
The City is seeking $34,000 in Clean Air Funds to cover the fares of the pilot – estimated at 9,672 annual rides x $3.50 per ride = $33,852. Fares are reinvested into the program, so this would cover part of the estimated cost. The City is proposing to commit up to $106,876 of the On-Demand Rideshare Program’s budget as the local match for this pilot, which is 76% of the pilot’s estimated annual cost under a 5 percent demand increase.

At this time, the current Contract for Services contract term executed with Nomad Transit LLC, a wholly owned subsidiary of Via Transportation, Inc. for the On-Demand Rideshare Program expires June 30, 2024. On December 6, 2023 the City released a Request for Proposals to seek a qualified vendor to operate the City’s On-Demand Rideshare Program. On March 20, 2024, the City Council approved the MOU that would allow West Sacramento to extend on-demand services into Downtown Sacramento.

Since the On-Demand Rideshare Program’s inception, Transportation Development Act funds have been used to support the program. City staff has presented to the City Council upcoming funding constraints for the On-Demand Rideshare Program under the current funding mechanism – Transportation Development Act funds. In March 2023, SACOG shared preliminary estimates for Transportation Development Act allocations. The Fiscal Year 2024-25 LTF preliminary allocation for the City is $3,518,677. With prior year reserves, City staff estimates $1.97 million in LTF available for local flexible use for the On-Demand Rideshare Program after other typical annual expenditures. Additionally, in tracking the Fiscal Year 2023-24 program budget, staff estimates approximately $300,000

396
Yolo-Solano Air Quality Management District: 2024 Clean Air Funds Program West Sacramento-Downtown Sacramento On-Demand Rideshare Pilot 5 of unused budget that can be rolled over into the next fiscal year. With TDA and unused budget, total available funds for FY 2024-25 for the On-Demand Rideshare Program is $2,270,365.92. City staff is awaiting YoloTD draft budget to finalize the budget and is scheduled to present and seek City Council direction on the On-Demand Rideshare Program budget and award the On-Demand Rideshare Program contract in May – June 2024.

Section 4: Applicant History
The City has received funding through the Clean Air Fund from the Yolo-Solano Air Quality Management District in the past:

A. Police Station EV Charging Station
a. Status: EV charging station installed at Police Station and activated in July 2023. City staff is awaiting one year after installation to have one full year of data for the final report. Clean Air Funds Agreement 22-05 end date is December 31, 2024.

B. West Sacramento Pedestrian and Bicycle Wayfinding Pilot a. Status: Final Report submitted on March 29, 2023.

C. West Sacramento – On-Demand RideShare Recreation Center Summer Pilot a. Status: Free ride program completed on April 17, 2023. City staff is awaiting one year after free ride program ended to analyze long-term ridership data and trends for the final report. Clean Air Funds Agreement 22-15 end date is September 30, 2024. This grant successfully funded a total of 17,796 free rides. Initial ridership of the program during the pilot was presented to the TMI Commission on November 6, 2023 (Supplemental C).

Section 5: Project Outcomes
To effectively evaluate the progress and impact of the microtransit expansion project in West Sacramento, a comprehensive set of metrics will be tracked, encompassing various aspects of the service and its utilization. These metrics will include:

Ɣ Ridership Numbers: Tracking daily, weekly, and monthly ridership figures will provide insights into the overall popularity and usage patterns of the service. This data will help identify peak usage times and potential areas for service expansion or schedule adjustments.

397
Yolo-Solano Air Quality Management District: 2024 Clean Air Funds Program West Sacramento-Downtown Sacramento On-Demand Rideshare Pilot 6 Ɣ Environmental Gains: In order to measure service efficiency and emission goals, the service will track key data pieces including vehicle revenue miles, vehicle miles traveled, and number of customers served per hour.

Ɣ User Satisfaction Ratings: Regular surveys and feedback mechanisms will be implemented to assess rider satisfaction. These ratings will cover various elements like ease of use, comfort, safety, and overall experience. User feedback will be instrumental in making service improvements and addressing specific concerns or suggestions.

Ɣ Wait Times and On-Time Performance: Measuring the average wait time for riders and the on-time performance of the service will be crucial in evaluating its efficiency and reliability. These metrics will help identify any operational bottlenecks or areas where service speed can be enhanced.

Ɣ Service Coverage and Accessibility: Analyzing the geographic reach and accessibility of the service, particularly in underserved areas, will be key. This includes assessing how effectively the service is bridging first- and last-mile gaps and whether it is reaching key destinations like workplaces, healthcare facilities, and educational institutions.

Ɣ Frequency of Service Utilization: Data on how often users are utilizing the service, including repeat usage rates, will provide insights into its effectiveness in meeting daily commuting needs.

Ɣ Cost Efficiency: Monitoring the cost per ride and overall operational costs will help in assessing the financial sustainability of the project. This will be crucial for long-term planning and potential scaling of the service.

These metrics will not only serve as indicators of the project's success but will also guide any necessary revisions. By continuously analyzing this data, the project team can make informed decisions to enhance service quality, expand coverage, and improve operational efficiency. Regular reporting on these metrics will also provide transparency and accountability to stakeholders, including the City and the local community. This datadriven approach ensures that the service remains responsive to user needs.

All data is tracked and stored in the VOC, specifically through two interfaces: Service KPI Dashboards and Data Generator Reports.

398
Yolo-Solano Air Quality Management District: 2024 Clean Air Funds Program West Sacramento-Downtown Sacramento On-Demand Rideshare Pilot 7 Ɣ Service KPI Dashboards. These dashboards function as the central view for service analysis and management. Through this interface, the City can organize and visualize the thousands of data points that the system collects every minute.

The City can leverage filtering and grouping tools to generate reports that range from neat and simple to highly complex. These reports provide data on metrics such as total ridership and on-time performance. Further, these tools will allow the City to easily measure the efficacy of marketing campaigns and rider engagement strategies to understand what is drawing and keeping riders on the service.

Ɣ The Data Generator provides more than a dozen raw data tables that will allow the City to conduct original, granular performance analyses. Staff will be able to organize tables for a detailed view of rider and/or driver activity, trip cost, vehicle information, and more, and pull data for any time period. Further, staff can easily export this data into any data analysis software, such as Microsoft Power BI, to conduct original analysis and create reports that incorporate additional datasets to investigate questions of specific interest. This will enable the City to gain an understanding of the impact of the service on broader trends, such as the impact on access to jobs or healthcare or a reduction in the use of single occupancy vehicles.

Funds through this grant opportunity would equip West Sacramento with the ability to dedicate vehicle hours of service to locations within downtown Sacramento. While the zone expansion is small geographically, its impact on West Sacramento is significant because vehicles must cross Tower Bridge, diverting them from the core West Sacramento service. The average trip from the middle of the West Sacramento zone to the easternmost part of the downtown Sacramento zone and back is approximately 8 miles and would take 18-40 minutes depending on traffic.

The zone expansion will serve the entire West Sacramento community and pick-up/dropoff locations in Downtown Sacramento. Pick-up/drop-off only within Sacramento will not be allowed through this pilot – there are various other transportation options and SacRT operates their own SmartRide in the Downtown-Midtown-East Sacramento zone.

Coordination between YoloTD, SacRT, and City under the MOU will also involve review of ridership on both the pilot and fixed-route transit. This zone expansion will greatly benefit workers who reside in West Sacramento who work in Sacramento, and vice versa.

The expansion will also spur economic development by allowing riders to frequent shopping, medical and recreational areas they may not have visited under the current transit system. In communities served with Via’s demand-response microtransit solutions,

399
Yolo-Solano Air Quality Management District: 2024 Clean Air Funds Program West Sacramento-Downtown Sacramento On-Demand Rideshare Pilot 8 the number of jobs accessible by public transit through this pilot will increase by 46 percent.

Expanding access into Sacramento also has a tangible environmental impact. Via’s mode shift analysis tool estimated that 20 percent of West Sacramento’s riders use the service in lieu of a private vehicle. If the expansion into Sacramento is approved and ~5 percent of total trips moving forward are into Sacramento, this accounts for approximately 9,560 rides/year (West Sacramento had 191,212 rides in 2023). Twenty percent of these trips = 1,912 rides from West Sacramento into Sacramento that would have been served by private vehicle. The average trip mileage for West Sacramento riders is approximately

3.4 miles, so the zone expansion would replace (1,912 rides x 3.4 miles) = ~6,500 miles otherwise served by private vehicles.

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AM times are light type.

PM times are bold type.

GREY SHADED AREAS
operate Monday - Friday only,
excluding some holidays.

YELLOW HIGHLIGHTED STOP
West Sacramento Transit Center
T

BLUE SHADED AREAS
operate Monday - Saturday only,
excluding some holidays.

WEST SACRAMENTO
350 Industrial Way, Woodland, CA 95776
[email protected] | (530) 666-2877
Yolobus.com | YoloTD.org
Fb.com/Yolobus @YolobusYCTD @YolobusYCTD

MONDAY - SUNDAY
Jefferson Blvd at Triangle
Bryte at Lisbon
40 - WEST SACRAMENTO LOCAL
Merkley at W. Capitol
Cummins at Reuter

MON-FRI MON-SAT
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W. Capitol at Merkley
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Southport at Promenade
Marshall at Rivermont
37 - Southport Local
Merkley at W. Capitol
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Southport at Promenade
Park at Stone Blvd
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Ikea Ct at Ikea
Reed at Stillwater
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Capitol Mall at Front St
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9th at L
Merkley at W. Capitol
Tower Bridge Gateway at Raley
Merkley at W. Capitol 7:10 8:10 10:10 11:10
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SAC WS
T
240
West Sacramento
Local

MON-SAT MON-SAT
Jefferson Blvd at Triangle
Lisbon at Bryte
Lighthouse at Fountain
Sacramento at Douglas
Jefferson Blvd at Triangle
41 - WEST SACRAMENTO LOCAL MONDAY - FRIDAY
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Local
Capitol Mall at Front St WB 7:07 8:07 9:07 10:07 11:07

5:07 6:07
6XSSOHPHQWDO$

401
YOLOBUS.COM
530-666-BUSS (2877)916-371-BUSS (2877)
Yolo Transportation District
350 Industrial Way Woodland, CA 95776
AM times are light type.

PM times are bold type. Transit Center T
42A

INTERCITY

CLOCKWISE

SACRAMENTO
L

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L
DAVIS
L

WOODLAND
L

SMF AIRPORT
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42B

INTERCITY

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WOODLAND
5:00 6:00 6:30 7:00 7:30 8:00 8:30 9:15 10:00 10:45 11:30 12 1: 5 1 0: 0 1 4: 5 2 3: 0 3 1: 5 4 0: 0 4 3: 0 5 0: 0 5 3: 0 6 0: 0 6 3: 0 7 1: 5 8 0: 0 8 4: 5 9 3: 0 10 1: 5 E. Main & Matmor 5:06 6:06 6:36 7:06 7:36 8:06 8:36 9:21 10:06 10:51 11:36 12 2: 1 1 0: 6 1 5: 1 2 3: 6 3 2: 1 4 0: 6 4 3: 6 5 0: 6 5 3: 6 6 0: 6 6 3: 6 7 2: 1 8 0: 6 8 5: 1 9 3: 6 10 2: 1 Airport Terminal A 5:20 6:26 6:56 7:26 7:56 8:26 8:51 9:36 10:21 11:06 11:51 12 3: 6 1 2: 1 2 0: 6 2 5: 1 3 3: 6 4 2: 4 4 5: 4 5 2: 4 5 5: 4 6 2: 4 6 5: 4 7 3: 6 8 2: 1 9 0: 6 9 5: 1 10 3: 6 Airport Terminal B 5:22 6:29 6:59 7:29 7:59 8:29 8:53 9:38 10:23 11:08 11:53 12 3: 8 1 2: 3 2 0: 8 2 5: 3 3 3: 8 4 2: 7 4 5: 7 5 2: 7 5 5: 7 6 2: 7 6 5: 7 7 3: 8 8 2: 3 9 0: 8 9 5: 3 10 3: 8 J & 8th 5:36 6:45 7:15 7:45 8:15 8:45 9:08 9:53 10:38 11:23 12 0: 8 12 5: 3 1 3: 8 2 2: 3 3 0: 8 3 5: 3 4 4: 4 5 1: 4 5 4: 4 6 1: 4 6 4: 4 7 1: 4 7 5: 3 8 3: 8 9 2: 3 10 0: 8 10 5: 3 L & 5th (Golden 1 Center) 5:40 6:49 7:19 7:49 8:19 8:49 9:12 9:57 10:42 11:27 12 1: 2 12 5: 7 1 4: 2 2 2: 7 3 1: 2 3 5: 7 4 4: 8 5 1: 8 5 4: 8 6 1: 8 6 4: 8 7 1: 8 7 5: 7 8 4: 2 9 2: 7 10 1: 2 10 5: 7 West Sac TC 5:45 6:56 7:26 7:56 8:26 8:56 9:18 10:03 10:48 11:33 12 1: 8 1 0: 3 1 4: 8 2 3: 3 3 1: 8 4 0: 3 4 5: 5 5 2: 5 5 5: 5 6 2: 5 6 5: 5 7 2: 5 8 0: 3 8 4: 8 9 3: 3 10 1: 8 11 0: 3 W. Capitol & Enterprise 5:57 7:09 7:39 8:09 8:39 9:09 9:31 10:16 11:01 11:46 12 3: 1 1 1: 6 2 0: 1 2 4: 6 3 3: 1 4 1: 6 5 0: 8 5 3: 8 6 0: 8 6 3: 8 7 0: 8 7 3: 8 8 1: 6 9 0: 1 9 4: 6 10 3: 1 11 1: 6 Mace & 2nd 6:07 7:20 7:50 8:20 8:50 9:20 9:43 10:28 11:13 11:58 12 4: 3 1 2: 8 2 1: 3 2 5: 8 3 4: 3 4 2: 8 5 2: 0 5 5: 0 6 2: 0 6 5: 0 7 2: 0 7 5: 0 8 2: 8 9 1: 3 9 5: 8 10 4: 3 11 2: 8 5th & Cantrill 6:14 7:28 7:58 8:28 8:58 9:28 9:50 10:35 11:20 12 0: 5 12 5: 0 1 3: 5 2 2: 0 3 0: 5 3 5: 0 4 3: 5 5 2: 8 5 5: 8 6 2: 8 6 5: 8 7 2: 8 7 5: 8 8 3: 5 9 2: 0 10 0: 5 10 5: 0 11 3: 5 UC Davis Memorial Union 6:30 7:43 8:13 8:43 9:13 9:43 10:05 10:50 11:35 12 2: 0 1 0: 5 1 5: 0 2 3: 5 3 2: 0 4 0: 5 4 5: 0 5 4: 3 6 1: 3 6 4: 3 7 1: 3 7 4: 3 8 1: 3 8 5: 0 9 3: 5 10 2: 0 11 0: 5 11 5: 0 Anderson & Hanover 6:35 7:52 8:22 8:52 9:22 9:52 10:12 10:57 11:42 12 2: 7 1 1: 2 1 5: 7 2 4: 2 3 2: 7 4 1: 2 4 5: 7 5 5: 2 6 2: 2 6 5: 2 7 2: 2 7 5: 2 8 2: 2 8 5: 7 9 4: 2 10 2: 7 11 1: 2 11 5: 7 County Fair Mall Arrive 6:48 8:05 8:35 9:05 9:35 10:05 10:25 11:10 11:55 12 4: 0 1 2: 5 2 1: 0 2 5: 5 3 4: 0 4 2: 5 5 1: 0 6 0: 5 6 3: 5 7 0: 5 7 3: 5 8 0: 5 8 3: 5 9 1: 0 9 5: 5 10 4: 0 11 2: 5 12 1: 0 County Fair Mall Depart 5:20 5:50 6:20 6:50 7:20 7:50 8:35 9:20 10:05 10:50 11:35 12 2: 0 1 0: 5 1 5: 0 2 3: 5 3 2: 0 3 5: 0 4 2: 0 4 5: 0 5 2: 0 5 5: 0 6 3: 5 7 2: 0 8 0: 5 8 5: 0 9 3: 5 10 2: 0 Anderson & Hanover 5:34 6:04 6:34 7:04 7:34 8:04 8:49 9:34 10:19 11:04 11:49 12 3: 4 1 1: 9 2 0: 4 2 4: 9 3 3: 4 4 0: 4 4 3: 4 5 0: 4 5 3: 4 6 0: 4 6 4: 8 7 3: 3 8 1: 8 9 0: 3 9 4: 8 10 3: 3 UC Davis Memorial Union 5:43 6:13 6:43 7:13 7:43 8:11 8:56 9:41 10:26 11:11 11:56 12 4: 1 1 2: 6 2 1: 1 2 5: 6 3 4: 3 4 1: 3 4 4: 3 5 1: 3 5 4: 3 6 1: 3 6 5: 3 7 3: 8 8 2: 3 9 0: 8 9 5: 3 10 3: 8 5th & Cantrill 5:56 6:26 6:56 7:26 7:56 8:24 9:09 9:54 10:39 11:24 12 0: 9 12 5: 4 1 3: 9 2 2: 4 3 0: 9 3 5: 6 4 2: 6 4 5: 6 5 2: 6 5 5: 6 6 2: 6 7 0: 6 7 5: 1 8 3: 6 9 2: 1 10 0: 6 10 5: 1 Mace & 2nd 6:06 6:36 7:06 7:36 8:06 8:34 9:19 10:04 10:49 11:34 12 1: 9 1 0: 4 1 4: 9 2 3: 4 3 1: 9 4 0: 6 4 3: 6 5 0: 6 5 3: 6 6 0: 6 6 3: 6 7 1: 6 8 0: 1 8 4: 6 9 3: 1 10 1: 6 11 0: 1 W. Capitol & Enterprise 6:18 6:48 7:18 7:48 8:18 8:45 9:30 10:15 11:00 11:45 12 3: 0 1 1: 5 2 0: 0 2 4: 5 3 3: 0 4 1: 8 4 4: 8 5 1: 8 5 4: 8 6 1: 8 6 4: 8 7 2: 5 8 1: 0 8 5: 5 9 4: 0 10 2: 5 11 1: 0 West Sac TC 6:30 7:00 7:30 8:00 8:30 8:56 9:41 10:26 11:11 11:56 12 4: 1 1 2: 6 2 1: 1 2 5: 6 3 4: 1 4 3: 0 5 0: 0 5 3: 0 6 0: 0 6 3: 0 7 0: 0 7 3: 2 8 1: 7 9 0: 2 9 4: 7 10 3: 2 11 1: 7 J & 8th 6:43 7:13 7:43 8:13 8:43 9:06 9:51 10:36 11:21 12 0: 6 12 5: 1 1 3: 6 2 2: 1 3 0: 6 3 5: 1 4 4: 3 5 1: 3 5 4: 3 6 1: 3 6 4: 3 7 1: 3 7 3: 9 8 2: 4 9 0: 9 9 5: 4 10 3: 9 11 2: 4 L & 5th (Golden 1 Center) 6:48 7:18 7:48 8:18 8:48 9:10 9:55 10:40 11:25 12 1: 0 12 5: 5 1 4: 0 2 2: 5 3 1: 0 3 5: 5 4 4: 8 5 1: 8 5 4: 8 6 1: 8 6 4: 8 7 1: 8 7 4: 3 8 2: 8 9 1: 3 9 5: 8 10 4: 3 11 2: 8 Airport Terminal A 7:05 7:35 8:05 8:35 9:05 9:25 10:10 10:55 11:40 12 2: 5 1 1: 0 1 5: 5 2 4: 0 3 2: 5 4 1: 0 5 0: 5 5 3: 5 6 0: 5 6 3: 5 7 0: 5 7 3: 5 7 5: 8 8 4: 3 9 2: 8 10 1: 3 10 5: 8 11 4: 3 Airport Terminal B 7:07 7:37 8:07 8:37 9:07 9:28 10:13 10:58 11:43 12 2: 8 1 1: 3 1 5: 8 2 4: 3 3 2: 8 4 1: 3 5 0: 7 5 3: 7 6 0: 7 6 3: 7 7 0: 7 7 3: 7 8 0: 1 8 4: 6 9 3: 1 10 1: 6 11 0: 1 11 4: 6 E. Main & Matmor 7:22 7:52 8:22 8:52 9:22 9:41 10:26 11:11 11:56 12 4: 1 1 2: 6 2 1: 1 2 5: 6 3 4: 1 4 2: 6 5 2: 2 5 5: 2 6 2: 2 6 5: 2 7 2: 2 7 5: 2 8 1: 4 8 5: 9 9 4: 4 10 2: 9 11 1: 4 11 5: 9 County Fair Mall Arrive 7:30 8:00 8:30 9:00 9:30 9:48 10:33 11:18 12 4: 8 1 3: 3 2 1: 8 3 0: 3 3 4: 8 4 3: 3 5 3: 0 6 0: 0 6 3: 0 7 0: 0 7 3: 0 8 0: 0 8 2: 0 9 0: 5 9 5: 0 10 3: 5 11 2: 0 12 0: 5

WDLD SACRAMENTO WEST SAC DAVIS WDLD WDLD IS DAV ST SAC E W NTO SACRAME WDLD TT
TT
County Fair Mall Depart
T
TT
T

WDLD SACRAMENTO WEST SAC DAVIS WDLD WDLD DAVIS WEST SAC SACRAMENTO WDLD 0: 3 12
New trips starting January 15, 2023

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Supplemental B

MEMORANDUM OF UNDERSTANDING FOR ON-DEMAND TRANSIT SERVICE

AMONG THE CITY OF WEST SACRAMENTO,

SACRAMENTO REGIONAL TRANSIT DISTRICT, AND YOLO COUNTY

TRANSPORTATION DISTRICT

THIS MEMORANDUM OF UNDERSTANDING FOR ON-DEMAND TRANSIT SERVICE (“MOU”) is entered into effective this _____ day of _______, 2024 (“Effective Date”), by and among SACRAMENTO REGIONAL TRANSIT DISTRICT (“SacRT”), the CITY OF WEST SACRAMENTO (“CITY”), and YOLO COUNTY TRANSPORTATION DISTRICT (“YCTD”). SacRT, CITY, and YCTD will each be referred to herein as a “Party” or collectively as “Parties”.

D. CITY desires to provide those services outside its boundaries and within SacRT’s boundaries.

E. Under Article XI, Section 9 of the California Constitution, SacRT and CITY may not furnish transportation services “within another municipal corporation which furnishes the same service and does not consent.”
F. The parties desire to establish the terms and conditions for the granting of consent for the operation of CITY rideshare public transit services within SacRT’s jurisdiction.

NOW, THEREFORE, the Parties agree as follows:

B. CITY will obtain prior written approval from SacRT before providing transit service within SacRT’s boundaries. To obtain approval for a service zone or location, CITY must submit a written request directed to the party designated by SacRT for receipt of notices in accordance with Article 4, below. SacRT will respond to CITY’s request within 30 days

403
of receipt by providing written notice of its acceptance or rejection of the request. SacRT may condition its approval on CITY’s agreement to use particular stop locations. SacRT’s approval does not include consideration of nor is deemed to include consideration of the propriety of the proposed route, including such matters as safety. SacRT may revoke its approval as to a particular zone or stop unilaterally by providing CITY 60 days’ advance written notice directed as specified in Article 4 below.

C. CITY must share anonymized ridership data for the on-demand transit service in SacRT’s jurisdiction with YCTD and SacRT. YCTD must share ridership data for local and intercity fixed route transit between West Sacramento and Sacramento with CITY and SacRT. Ridership data must be shared, at minimum, monthly while the MOU is in effect.

The Parties commit to monitor and discuss at mutually agreeable intervals potential impacts of CITY’s on-demand transit service’s expansion on local and intercity fixed route ridership.

2. FUNDING
The City is solely responsible for funding its own operations authorized under this MOU and will not seek funding contributions from SacRT or YCTD as a result of this MOU.

To SacRT: Sacramento Regional Transit District
Attn: James Drake
1102 Q Street, Suite 4100
Sacramento, CA 95811

404
Email: [email protected]
To CITY: City of West Sacramento
Attn: Jason McCoy
1110 W. Capitol Avenue
West Sacramento, CA 95691
Email: [email protected]
To YCTD: Yolo County Transportation District
Attn: Daisy Romero
350 Industrial Way
Woodland, CA 95776
Email: [email protected]

5. AGENCY RELATIONSHIP/INDEMNIFICATION
A. Nothing in this MOU will be construed to create, nor do the parties intend to create, any contractual or other relationship, whether express or implied, of joint power, joint venture, partnership, principal-agent, independent contractor, master-servant, or otherwise that would result in either party being financially or otherwise responsible in whole or in part for bodily injury, death or property damage occurring as a proximate result of an act or omission arising out of the performance of this MOU or the provision of transit service by the other party. The imposition of such responsibility upon either party will be sufficient grounds for CITY, YCTD, or SacRT to terminate this MOU upon giving written notice thereof to the other in the manner provided in Article 4.

B. Each party to this MOU is to be held free by the other party from any and all liability, loss, and/or expense that arises in the manner described above.

C. Neither CITY, YCTD, nor SacRT is required to indemnify, defend, and hold harmless the other from any and all claims, demands, losses, or liability whether real or illusory as a result of this MOU.

6. WORKERS’ COMPENSATION INSURANCE
Each party to this MOU understands and acknowledges that this MOU is not an employment contract among SacRT, YCTD, or CITY or among SacRT or YCTD and any agents, officers or employees of any third party or third-party operator under contract with CITY to provide CITY transit service. SacRT and YCTD are not liable for any workers’ compensation or any other benefits accruing under any federal or state law or acts to any employee or employees employed by CITY or by a third party or third-party operator in connection with the provision of CITY transit service. Similarly, CITY is not liable for any

405
workers’ compensation or any other benefits accruing under federal or state law or acts to any employee or employees employed by SacRT or YCTD in connection with the provision of SacRT or YCTD transit service. Each party agrees to provide workers’ compensation for its respective employees in accordance with State law.

7. INSURANCE
Each party to this MOU will maintain appropriate levels of insurance for the operation of its transit service.

9. NONWAIVER
Waiver of any breach or default hereunder will not constitute a continuing waiver or a waiver of any subsequent breach either of the same or of another provision of this MOU.

10. SEVERABILITY
If any term, covenant, or condition of this MOU is held by a court of competent jurisdiction to be invalid, the remainder of this MOU will remain in effect.

11. TERMINATION FOR CONVENIENCE
Either party may terminate this MOU upon giving 60 days’ advance written notice.

13. MODIFICATION
No waiver, alteration, modification, or termination of this MOU will be valid unless made in writing and signed by the authorized representatives of the parties hereof.

15. SUCCESSORS AND ASSIGNS This MOU will be binding upon and the benefits of this MOU will inure to the successors and assigns of the parties hereto.IN WITNESS

406
WHEREOF, the Parties have caused this MOU to be executed by their respective dulyauthorized representative as of the Effective Date.

SACRAMENTO REGIONAL TRANSIT CITY OF WEST SACRAMENTO

DISTRICT
By: ______________________________ By:___________________________ Henry Li, General Manager/CEO Aaron Laurel, City Manager

YOLO COUNTY TRANSPORTATION DISTRICT
By: ______________________________
Autumn Bernstein, Executive Director
Approved as to Legal Form: Approved as to Legal Form:

By: ______________________________ By:

Olga Sanchez-Ochoa, General Counsel Jeffrey Mitchell, City Attorney

ATTEST:

By:

Jennifer Cusmir, City Clerk

https://sacrt01.sharepoint.com/sites/teamsGeneralCounsel/Contracts/2020 to 2024/K23Q4/MOU Microtransit West Sacramento.docx

407

TRANSPORTATION, MOBILITY & INFRASTRUCTURE COMMISSION AGENDA REPORT MEETING DATE: November 6, 2023 ITEM #
SUBJECT: UPDATE ON THE BRODERICK AND BRYTE WEST SACRAMENTO ONDEMAND RIDESHARE PROGRAM TRANSPORTATION PILOT PROGRAM INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Board [ X ] Staff
[ ] Other
Steven Rosen, Associate Transportation Planner
Community Development Department
ATTACHMENT [ ] Yes [ X ] No [ X ] Information [ ] Direction [ ] Action

OBJECTIVE
The purpose of this report is to provide an update to the Transportation, Mobility, and Infrastructure (TMI) Commission on the Broderick and Bryte West Sacramento On-Demand rideshare program transportation pilot.

RECOMMENDED ACTION
Staff respectfully recommends that the TMI Commission receive staff’s updates on the Broderick and Bryte West Sacramento On-Demand transportation pilot program.

BACKGROUND
The West Sacramento On-Demand Rideshare Program has been in operation since May 14, 2018. It is a publicprivate partnership with NoMad Transit LLC, a wholly owned subsidiary of Via Transportation, Inc. The City’s On-Demand Rideshare Service (“Via”) is a shared, on-demand transportation service with flexible stops, operator schedules, and fleet supply. The City Council’s primary goals in establishing the program were enhanced mobility, more shared trips, and improved quality of life. Via was intended to meet these goals while saving costs by using smaller vehicles than fixed-route transit service and a fleet that could increase or decrease in size based on ridership.

Since launching, the program has received broad community support, and user surveys have demonstrated successful performance across a range of human-centered indicators, as presented to the TMI Commission on March 4, 2019. Following its first year of operations, the City received multiple awards at the local, state, and national level for the community impacts of the program. With the recommendation of TMI Commission, City Council approved significant fleet and service hour expansions in 2019 and has annually extended and allocated funding to continue operating the On-Demand Rideshare.

In May 2022, the City launched a Summer Transportation Pilot to provide free Via rides between the Broderick/Bryte area and the City’s Recreation Center and swimming pool. The pilot was funded by a $10,000 Yolo-Solano Air Quality Management District Clean Air Fund grant and $50,000 of Local Transportation Funds.

The pilot ran between May 1, 2022, to September 1, 2022 and would subsidize up to $57,500 in rides. Of the potential for this pilot program to provide over 7,670 free rides across a span of 122 days to and from the Broderick/Bryte neighborhood and the City's recreation center and pool facilities located at 2801 Jefferson Blvd., only 1005 rides were actually taken by the community to the Recreation Center and community pool, leaving $49,967.85 in the pilot program account.

In October 2022, the City Council adopted a resolution to allocate the remaining money from the Summer Transportation Pilot to the Broderick & Bryte Via Transportation Pilot Program. This program provided free rides between the Broderick and Bryte neighborhoods and any destination within West Sacramento.

The program began on February 1, 2023, and ended when funds were depleted on April 17, 2023. It provided 16,691 free rides and was fully expended in only 77 days.

ANALYSIS
This section provides a review of the 16,691 free rides taken during the pilot and of the results of a survey taken by riders who benefited from the free rides.

Origins and Destinations

6XSSOHPHQWDO&
408
Update on the Via Broderick and Bryte Via Transportation Pilot Program November 6, 2023

Page 2 ends

Rides that started, ended, or started and ended in the Broderick-Bryte area were free of charge during the pilot period. This map shows the Broderick-Bryte area that qualified for free rides:

This map shows the origins and destinations of those rides:

409
Update on the Via Broderick and Bryte Via Transportation Pilot Program November 6, 2023

Page 3 ends

Trip ends outside of the Broderick-Bryte pilot area were concentrated around amenities like shopping centers, community services, concentrations of workplaces, and River City High School. There was also a concentration at the Tower Bridge that may indicate that riders started or ended their trips in Sacramento.

Broderick-Bryte Pilot User Survey
Upon completion of the free ride program, City staff prepared a survey for riders. Via promoted it through e-mail to riders and pop-ups within the ride-hailing app. The trilingual survey was in English, Spanish, and Russian.

Of the 400 respondents, 251 had taken a free ride. Of respondents who had used the free ride pilot, 42% signed up for Via because of the free ride pilot. Of the respondents who signed up for Via because of the free ride pilot program, 59% say that they will continue to use Via.

Of the 251 respondents who had taken a free ride, 41% used the service to commute to school or work, 18% used the service for groceries and shopping, 12% used the service for medical or dental appointments, 15% used it for “social and recreational activities,” 8% to get to bars and restaurants, 13% to transport other family members, and 19% as substitute transportation when their car was not available.

Of respondents to the question, “If you had not used Via Rideshare, which other transportation options would you have used instead? Please select all that apply,” 21% would not have made the trip, 17% would have walked or used a wheelchair, 13% would have taken the bus, 11% would have used their own bicycle, skateboard, or scooter, 4% would have used a bikeshare or scooter-share, 12% would have asked a friend or family member for a ride, 16% would have used a taxi or ride hailing service, 2% would have carpooled, 4% would have driven alone, and 1% would have used paratransit or a medical transport service.

Among respondents to the question, “As a result of your Via Rideshare use, how have your transportation choices changed, if at all,” there was a small decrease in driving alone and riding the bus. There was a larger decrease in using paratransit services. There was a small increase in how often respondents left their home and a larger increase in overall satisfaction with the City’s transportation system. The service also improved riders’ sense of independence, access to healthy foods and medical services, and feeling of safety when getting around.

Of riders who started using On-Demand Rideshare because of the free ride program, 59% stated that they will continue to use the service.

Environmental Considerations
West Sacramento On-Demand rideshare program operated by Nomad Transit, LLC (Via) is a current City transportation program. This pilot transportation program as described in this informational report is not subject to environmental review.

Strategic Plan Integration
This project advanced the 2023 Strategic Plan goal to sustain a financially sound city in which everyone feels safe and secure, with quality services and well-maintained infrastructure.

Alternatives
Staff respectfully recommends that the TMI Commission receive staff’s updates on the West Sacramento OnDemand Rideshare program Broderick and Bryte Pilot Program Pilot. Alternatively, the TMI Commission may, as an alternative, decline to hear the report, or direct staff to return at a later date.

Coordination and Review
This report was prepared by the Transportation & Mobility Division of the Community Development Department.

Budget/Cost Impact
This pilot was funded by a Clean Air Fund grant dedicated to the On-Demand Rideshare service.

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Attachment 3
RESOLUTION 24-83

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST SACRAMENTO AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE YOLOSOLANO AIR QUALITY MANAGEMENT DISTRICT FOR THE WEST SACRAMENTO –

DOWNTOWN SACRAMENTO ON-DEMAND RIDESHARE PILOT
WHEREAS, with the success of the On-Demand Rideshare Program, the Transportation, Mobility and Infrastructure Commission, the City Council, and the community has expressed interest in expanding the Program to serve key locations in Downtown Sacramento; and
WHEREAS, during the March 20, 2024 City Council meeting, the City Council approved a Memorandum of Understanding for On-Demand Transit Service among the City of West Sacramento, Sacramento Regional Transit District and Yolo County Transportation District; and
WHEREAS, the Memorandum of Understanding was executed on May 1, 2024; and WHEREAS, the Yolo-Solano Air Quality Management District (YSAQMD) offered an opportunity for the City to apply for the 2024 Clean Air Funds Program; and WHEREAS, the City of West Sacramento submitted the West Sacramento – Downtown Sacramento On-Demand Rideshare Pilot application to YSAQMD’s Clean Air Funds Program; and
WHEREAS, on June 5, 2024, the City Council awarded a Federal Contract for Professional Services to Nomad Transit LLC, a wholly owned subsidiary of Via Transportation, Inc., to provide turnkey on-demand transit services for the City’s On-Demand Rideshare Program; and
WHEREAS, on June 12, 2024, the YSAQMD Board of Directors approved the Clean Air Funds Program recommendations, which included $13,700 for the West Sacramento – Downtown Sacramento On-Demand Rideshare Pilot; and
WHEREAS, the City must return a Clean Air Funds Program award acknowledgement form and enter into a grant agreement in order to receive the Clean Air Funds award; and WHEREAS, approval is requested authorizing the City Manager, or designee, to execute such agreements and any amendments hereto; and
WHEREAS, the City Council has considered all information related to this matter, as presented at the public meetings of the City Council identified herein, including any supporting reports by City staff, and any other information provided during public meetings.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West Sacramento as follows:

1. The City Council hereby approves amendments to the budget for the 2024-25 fiscal year as provided below:

SOURCES
$13,700 202-9922-4500 Clean Air Funds
$13,700 Total Sources
411
Resolution 24-83

Page 2 ends

2. The City Council authorizes the City Manager, or designee, to execute all forms, grant agreements and any amendments thereto with YSAQMD for the West Sacramento – Downtown Sacramento On-Demand Rideshare Pilot.

3. The City Council hereby finds that the facts set forth in the recitals to this Resolution are true and correct and establish the factual basis for the City Council’s adoption of this Resolution.

3. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED by the West Sacramento City Council this 21st day of August 2024, by the following vote:

AYES:

NOES:

ABSENT:

Martha Guerrero, Mayor
ATTEST:

Jennifer Cusmir, City Clerk
412
Nomad Transit LLC
CDD24-141- On-Demand Rideshare
Expires 07/01/27
AMENDMENT NO. 1
to the

FEDERAL CONTRACT FOR PROFESSIONAL SERVICES
between the

CITY OF WEST SACRAMENTO
and
Nomad Transit LLC
Dated July 1, 2024
This Amendment No. 1 to the Federal Contract for Professional Services between the City of West Sacramento and Nomad Transit LLC dated July 1, 2024, is made and entered into this 21st day of August 2024. Except as expressly amended herein, the July 1, 2024 Federal Contract for Professional Services is in full force and effect.

RECITALS
WHEREAS, during the March 20, 2024 City Council meeting, the City Council approved a Memorandum of Understanding for On-Demand Transit Service among the City of West Sacramento, Sacramento Regional Transit District and Yolo County Transportation District; and
WHEREAS, the Memorandum of Understanding was executed on May 1, 2024; and WHEREAS, the Yolo-Solano Air Quality Management District (YSAQMD) offered an opportunity for the City to apply for the 2024 Clean Air Funds Program; and WHEREAS, the City of West Sacramento submitted the West Sacramento – Downtown Sacramento On-Demand Rideshare Pilot application to YSAQMD’s Clean Air Funds Program; and
WHEREAS, on June 5, 2024, the City Council awarded a Federal Contract for Professional Services to Nomad Transit LLC, a wholly owned subsidiary of Via Transportation, Inc., to provide turnkey on-demand transit services for the City’s OnDemand Rideshare Program; and WHEREAS, on June 5, 2024, the City Council approved a contingency of $10,000 to install and pay fees for dashcams on the On-Demand Rideshare Program vehicle fleet; and
WHEREAS, on June 12, 2024, the YSAQMD Board of Directors approved the Clean Air Funds Program recommendations, which included $13,700 for the West Sacramento – Downtown Sacramento On-Demand Rideshare Pilot.

NOW, THEREFORE, IT IS MUTUALLY AGREED by parties hereto to amend said agreement as follows:

I. SCOPE OF SERVICES:

The scope of services as set forth in the Federal Contract for Professional Services dated July 1, 2024, shall be revised to reflect the following:

Consultant Proposal/Scope of Work, Section 5 Service Parameters, Geographic Coverage Zone shall be amended to: “Geographic Coverage Zone: Approximately 22.7 square miles cover in West Sacramento, California and pick-up/drop-off locations in Downtown Sacramento. During the duration of the contract, geographic coverage zone may be amended by mutual agreement between Customer and Nomad Transit.” 413
Nomad Transit LLC
CDD24-141- On-Demand Rideshare
Expires 07/01/27
II. COMPENSATION:

The compensation as set forth in Section 3 of the Federal Contract for Professional Services dated July 1, 2024, shall be revised to include the following:

Consultant's fees shall be as specified in the Schedule of Fees, which is attached hereto an incorporated herein as Exhibit "A".

Compensation shall be increased by $10,000 for installation and subscription fees associated with adding dash cams to the vehicle fleet as outlined in Exhibit “B” and total contract shall not exceed $10,046,947, without City’s prior written approval.

IN WITNESS WHEREOF the parties hereto have executed this Agreement as the date herein set forth.

CITY OF WEST SACRAMENTO
By:

Amanda Berlin, Assistant City Manager
Nomad Transit LLC
By:

Erin Abrams, Manager

APPROVED AS TO FORM
By:

Jeffrey Mitchell, City Attorney
ATTEST:

By: ________________________________________________________ Jennifer Cusmir, City Clerk
414
Nomad Transit LLC
CDD24-141- On-Demand Rideshare
Expires 07/01/27
Exhibit A
415
Exhibit B
Amendment #1
to the
West Sacramento Service Order
Nomad Transit, LLC (“Nomad Transit”) and the City of West Sacramento (“Customer” and, together with Nomad Transit, the “Parties”) have entered into that certain agreement titled Federal Contract for Professional Services (together the “Agreement”). Upon execution of this Amendment #1 (“Amendment #1”), the Parties agree to the following:

1. Amendment. The below table is added to the Compensation section of the Agreement:

Fee Category Amount Invoicing
Terms
Dash Cam
Installation Fees
$125/vehicle installation cost * 16 vehicles = $2,000 One-time Dash Cam
Subscription Fees
Year 1 (10-months): $14.70/vehicle/month * 16
vehicles = $2,352
Year 2: $14.70/vehicle/month * 16 vehicles =
$2,822.40
Year 3: $14.70/vehicle/month * 16 vehicles =
$2,822.40
Over 3-year contract term: $7,644.8
Invoiced
monthly
Total for 36 months $9,996.80
After dashcams are installed, Nomad Transit will invoice Customer for the installation fees as part of the subsequent monthly invoice.

2. Conflicts, Use of Terms, Governing Law. Capitalized terms used but not defined herein have the meanings outlined in the Agreement. Except as expressly provided herein, the terms and conditions of the Agreement remain unchanged. This Amendment #1 will be governed by the same law as the Agreement and is effective as of August 1, 2024 (“Effective Date”). 416

CITY COUNCIL AGENDA REPORT
MEETING DATE: August 21, 2024 ITEM # 7
SUBJECT:

CONSIDERATION OF RESOLUTION 24-90 ACCEPTING A DEDICATION OF PUBLIC

EASEMENTS AND RIGHT-OF-WAY ASSOCIATED WITH THE DEVELOPMENT OF 600 SUTTER STREET
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Mark Collier, Principal Engineer
Community Development Department
ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [x] Action

OBJECTIVE
To accept the dedication of a public water easement, a public utility easement, and public right-of-way associated with the development of 600 Sutter Street.

RECOMMENDED ACTION
Staff respectfully recommends that the Council adopt Resolution 24-90, accepting offers of dedication of a public water easement, public utility easement, and public right-of-way associated with the development of 600 Sutter Street.

BACKGROUND
The City has received an application for the development of the property located at 600 Sutter Street. Said property has frontage on Sutter Street and First Street which does not comply with City Standard Specifications.

It also does not currently have water service to the site which meets City Standards.

ANALYSIS
The following dedications of easements and right-of-way have been offered to the City in order to facilitate the development of the property located at 600 Sutter Street and facilitate the construction of public improvements in compliance with City Standard Specifications:

1. An Easement for Public Water (Exhibit 3) – Currently, there is an existing 4’ water main which is extends from its connection to an 8” water main on Galveston Street to the project frontage on Sutter Street. This 4” water main currently provides service to a handful of parcels and one public fire hydrant. The 4” water main is substandard in size and is insufficient to meet the demands of the proposed development. The Project developer proposes to replace the 4” water main with a new 8” water main, which meets City Standards and provides adequate service to the Project.

The proposed water main replacement traverses two private parcels located between Galveston Street and Sutter Street. On one of these parcels, a public water easement does not currently exist. An offer of dedication for a public water easement across said parcel which will facilitate the installation of the new water main has been provided.

2. A Public Utility Easement (Exhibit 4) – A public utility easement is being granted across the Project frontage on Sutter Street and First Street. This easement will accommodate public improvements such as streetlights backflow prevention devices and a drainage retention area which will provide water quality treatment for stormwater runoff from the public streets and the on-site area of the Project.

3. Public right-of-way (Exhibit 5) – The Project will be improving its frontage on Sutter Street and First Street to meet City Standards for a local industrial road. This will include pavement widening and installation of curb, gutter and sidewalk. The existing right-of-way width on both fronting streets is substandard by a width of 8 feet. An offer of dedication for 8 feet of right-of-way has been provided.

Environmental Considerations
Staff has determined that the pursuant to §15061(b)(3) of the California Environmental Quality Act (CEQA), the activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. 417
Acceptance of easement dedications for 600 Sutter Street August 21, 2024

Page 2 ends

Commission Recommendation
N/A
Strategic Plan Integration
Acceptance of these improvements is consistent with the City’s “Principals to Guide the Future” by providing for “Vibrant Neighborhoods”.

Alternatives
Council may choose not to accept the offer of dedication at this time at this time. Doing so would hinder the development of the Project, which is a permitted use of the property Coordination and Review
The completion of the required improvements has been approved by the City Engineer and the Public Works Department.

Budget/Cost Impact
There are no known fiscal impacts.

ATTACHMENTS

1. Resolution 24-90

2. Vicinity Map

3. Grant of Public Water Easement

4. Grant of Public Utility Easement

5. Grant of Public Right-of-Way
418
RESOLUTION NO. 24-90

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST SACRAMENTO ACCEPTING A

GRANT OF EASEMENT FOR PUBLIC WATER PURPOSES, A PUBLIC UTILITY EASEMENT, AND

PUBLIC RIGHT-OF-WAY
WHEREAS, the Developer of the property located at 600 Sutter Street has submitted a Grant of Public Water Easement, a Grant of Public Utility Easement; and a Grant of Public Right-of-Way, and;
WHEREAS, said Easements are necessary in order to provide for development of the property located at 600 Sutter Street in conformance with City Standard Specifications; and WHEREAS, the City of West Sacramento wishes to accommodate the development of 600 Sutter Street;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of West Sacramento hereby accepts, on behalf of the public, the Grants of Easements for Public Water, Public Utilities, and Public Right-of-Way offered in support of the development of 600 Sutter Street per City Standard Specifications.

PASSED AND ADOPTED by the City Council of the City of West Sacramento this 21st day of August, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:

Martha Guerrero, Mayor
Jennifer Cusmir, City Clerk
419
634
623
611
631
633
615
711
3311
3435
638
620
3325
630
701
3400
613
3480
625
635
700
3222
3501
3512
32 3
721
621
628
3500 3300
3440
619
720
#B
731
#A
#A
#C
3600
751
3805
#C
#C
D
71 773
3610
3741
#D
3751
#E
#A
585
571
575
605 60
603 570 6
600
551
601
569
945
929
20164
917
3740
925
3730
3780
3810

FIRST ST
B ON

NORTHPORT DR
I 80 WB US 50 EB OFF

MIDDLE ST

SUTTER ST

COMMERCE DR
I 80 WB
I 80 EB

STILLWA

RSIDE PKWY
421
422
423
424
425
426
427
428
H:\3613-010\ACAD\SURVEY\PLC\3613-010_PUBLIC-UTILITY-EASEMENT_002.DOCX JULY 23, 2024
JOB NO. 3613-010

EXHIBIT A

LEGAL DESCRIPTION

PUBLIC UTILITY EASEMENT

REAL PROPERTY SITUATE IN THE CITY OF WEST SACRAMENTO, COUNTY OF YOLO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

BEING A PORTION OF THE PARCEL OF LAND DESCRIBED IN THAT GRANT DEED RECORDED JUNE 2, 2023, AS DOCUMENT NO. 2023-0008726 OF OFFICIAL RECORDS OF YOLO COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHEASTERN CORNER OF SAID PARCEL OF LAND, SAID POINT BEING THE SOUTHEASTERN CORNER OF LOT 32 AND THE CENTERLINE

INTERSECTION OF FIRST STREET AND SUTTER AVENUE AS SHOWN ON THAT MAP ENTITLED “MAP OF SUTTER GARDEN ACRES” RECORDED APRIL 19, 1927, FILED IN BOOK 3 OF MAPS, AT PAGE 58, IN THE OFFICE OF THE COUNTY RECORDER OF YOLO COUNTY;

THENCE, FROM SAID POINT OF COMMENCEMENT, ALONG THE CENTERLINE OF FIRST STREET, SOUTH 89°44’16” WEST 62.04 FEET;
THENCE, LEAVING SAID CENTERLINE, NORTH 0°15’44” WEST 28.00 FEET TO THE POINT OF BEGINNING FOR THIS DESCRIPTION;

THENCE, FROM SAID POINT OF BEGINNING, RUNNING PARALLEL WITH THE NORTHERN RIGHT OF WAY OF FIRST STREET, SOUTH 89°44’16” WEST 820.23 FEET;
THENCE, NORTH 00°15’44” WEST 4.00 FEET;
THENCE, NORTH 61°33’24” WEST 49.21 FEET;
THENCE, NORTH 15°38’10” WEST 20.60 FEET;
THENCE, NORTH 28°50’47” EAST 55.61 FEET;
THENCE, SOUTH 61°09’13” EAST 117.36 FEET;
THENCE, NORTH 89°44’16” EAST 710.77 FEET;

THENCE, RUNNING PARALLEL WITH THE WESTERN RIGHT OF WAY OF SUTTER AVENUE, NORTH 00°17’50” WEST 111.69 FEET;
THENCE, NORTH 89°42’10” EAST 50.50 FEET;
THENCE, NORTH 00°17’50” WEST 215.25 FEET;
THENCE, SOUTH 89°42’10” WEST 36.50 FEET;
429
LEGAL DESCRIPTION JULY 23, 2024
PAGE 2 OF 2 JOB NO. 3613-010
H:\3613-010\ACAD\SURVEY\PLC\3613-010_PUBLIC-UTILITY-EASEMENT_002.DOCX THENCE, NORTH 00°17’50” WEST 430.75 FEET;
THENCE, NORTH 52°43’52” WEST 224.90 FEET TO A POINT ON THE SOUTHERN RIGHT OF WAY LINE OF THE LANDS OF SOUTHERN PACIFIC RAILROAD; THENCE, ALONG SAID RIGHT OF WAY LINE, NORTH 73°51’41” EAST 235.72 FEET;
THENCE, LEAVING SAID RIGHT OF WAY LINE, SOUTH 00°17’50” EAST 33.31 FEET;
THENCE, SOUTHWESTERLY, ALONG THE ARC OF A 56.00 FOOT RADIUS CURVE TO THE LEFT, FROM WHICH THE CENTER OF SAID CURVE BEARS SOUTH 30°17’50” EAST, THROUGH A CENTRAL ANGLE OF 103°56’44”, AN ARC DISTANCE OF 101.59 FEET;
THENCE, ALONG THE ARC OF A REVERSE 44.00 FOOT RADIUS CURVE TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 43°56’44”, AN ARC DISTANCE OF 33.75 FEET;

THENCE, RUNNING PARALLEL WITH THE WESTERN RIGHT OF WAY OF SUTTER AVENUE, 8.00 FEET WESTERLY THEREOF, SOUTH 00°17’50” EAST 812.96 FEET; THENCE, ALONG THE ARC OF A TANGENT 34.00 FOOT RADIUS CURVE TO THE RIGHT, THROUGH CENTRAL ANGLE 90°02’06”, AN ARC DISTANCE OF 53.43 FEET, TO THE POINT OF BEGINNING.

ATTACHED HERETO IS EXHIBIT B, A PLAT TO ACCOMPANY LEGAL DESCRIPTION, AND BY THIS REFERENCE MADE A PART HEREOF.

END OF DESCRIPTION
_______________________
MATHEW A. STEWARD, P.L.S.

L.S. NO. 9036
8/13/2024
430
SOUTHERN PACIFIC RAILROAD SUTTER AVENUE MIDDLE AVENUEINTERSTAE HIGHWAY 80

FIRST STREET
H:\3613-010\ACAD\SURVEY\PLC\PUBLIC-UTILITY-EASEMENT_002\3613-010_PUBLIC-UTILITY-EASEMENT_002.DWG JULY 23, 2024 SHEET 1 OF 2

PUBLIC UTILITY EASEMENT (PUE)
LANDS OF XTRA LEASE, LLC (2023-0008726)

WEST SACRAMENTO, YOLO COUNTY, CALIFORNIA

PLAT TO ACCOMPANY LEGAL DESCRIPTION

EXHIBIT B
JOB NO.3613-010

CIVIL ENGINEERS SURVEYORS PLANNERS

SAN RAMON
WWW.CBANDG.COM

ROSEVILLE
(925) 866-0322
(916)788-4456
LEGEND
431
H:\3613-010\ACAD\SURVEY\PLC\PUBLIC-UTILITY-EASEMENT_002\3613-010_PUBLIC-UTILITY-EASEMENT_002.DWG JULY 23, 2024 SHEET 2 OF 2

PUBLIC UTILITY EASEMENT (PUE)
LANDS OF XTRA LEASE, LLC (2023-0008726)

WEST SACRAMENTO, YOLO COUNTY, CALIFORNIA

PLAT TO ACCOMPANY LEGAL DESCRIPTION

EXHIBIT B
JOB NO. 3613-010

CIVIL ENGINEERS SURVEYORS PLANNERS

SAN RAMON
WWW.CBANDG.COM

ROSEVILLE
(925) 866-0322
(916)788-4456
432
433
North: 5,178.2738' East: 4,908.5735'
Segment# 9: Line
Course: N89° 42' 10.00"E Length: 50.500'
North: 5,178.5358' East: 4,959.0728'
Segment# 10: Line
Course: N0° 17' 50.00"W Length: 215.250'
North: 5,393.7829' East: 4,957.9562'
Segment# 11: Line
Course: S89° 42' 10.00"W Length: 36.500'
North: 5,393.5936' East: 4,921.4567'
Segment# 12: Line
Course: N0° 17' 50.00"W Length: 430.746'
North: 5,824.3338' East: 4,919.2222'
Segment# 13: Line
Course: N52° 43' 51.54"W Length: 224.905'
North: 5,960.5268' East: 4,740.2426'
Segment# 14: Line
Course: N73° 51' 41.00"E Length: 235.723'
North: 6,026.0489' East: 4,966.6762'
Segment# 15: Line
Course: S0° 17' 50.00"E Length: 33.314'
North: 5,992.7353' East: 4,966.8490'
Segment# 16: Curve
Length: 101.595' Radius: 56.000'
Delta: 103°56'44" Tangent: 71.607'
Chord: 88.224' Course: S7° 43' 48.06"W
Course In: S30° 17' 50.00"E Course Out: S45° 45' 26.13"W RP North: 5,944.3838' East: 4,995.1002'
End North: 5,905.3126' East: 4,954.9824'
434
435

NO FEE DOCUMENT
GOVERNMENT CODE SECTION 6103
Recording Requested By and
When Recorded Mail To:

City of West Sacramento
1110 West Capitol Ave., 3
rd Floor
West Sacramento, CA 95691
Attn: City Clerk The Above Space For Recorder's Use Only

GRANT OF PUBLIC RIGHT-OF-WAY
Project: ______________ _
A.P.N.: ---------------

THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11922 OF THE CALIFORNIA REVENUE AND TAXATION CODE.

THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE.

FOR VALUABLE CONSIDERATION, receipt and sufficiency of which is hereby acknowledged,

1. X'TQ../,r L-e\45£ LLC- , does hereby grant to
the City of West Sacramento, a municipal corporation ("Grantee"), the right-of-way, on, over and under the area of Grantor's Property as legally described and depicted in Exhibit A and. Exhibit B, attached hereto and incorporated herein, for any and all public purposes.

Executed Ave,us-r \3-t.n.. , 20 2+ • Executed _______ , 20_ GRANTOR:

X '!fl.A L� E. L-L.L
By:CbL M �
Name: .J c i-\ 1-.l No \J EU-dL
Title: VP �L �S'fA-TtS
943138.1
GRANTEE:

City of West Sacramento
By: __________ _
Name: ----------
Title: -----------
436

CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the right-of-way dated _______
, 20_from __________________ , to
the City of West Sacramento, a municipal corporation, is hereby accepted by the undersigned officer or agent on behalf of the West Sacramento City Council pursuant to authority conferred by Resolution _____ , adopted _______ , 20_ •by the City Council of the City of West Sacramento, and the Grantee consents to recordation thereof by its duly authorized officer.

Dated: _____ , 20_ By:

Jennifer Cusmir, City Clerk
943138.1
437

ACKNOWLEDGEMENT

STATE OF MISSOURI
COUNTYOF S'T. L-cu\S
On Av c., us'T 13-l"'-, 202k, before me, DE:.boeA h It EJ1-rm IJh,��Vary Public, personally appeared Jo i+N Hu c1--L,� , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature on the instrument, the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENAL TY OF.PERJURY under the laws of the State of Missouri that the foregoing paragraph is true and correct.

Witness my hand and official seal.

DEBORAH A. ELAM-WHALEY
Notary Public, Notary Seal
State of Missouri
St. Louis County
Commission# 15535726
My Commission Expires 03-19-2027
STA TE OF CALI FO��;��;;;..iiiiiiiiiiiiiiiiiiiii�
)
COUNTY OF _______ )
On _______ , 20_, before me, _________ , Notary Public, personally appeared ___________ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature on the instrument, the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

Witness my hand and official seal.

Notary Public
943138.1
438
H:\3613-010\ACAD\SURVEY\PLC\3613-010_RIGHT-OF-WAY-DEDICATION_001_LG.DOCX AUGUST 8, 2024
JOB NO. 3613-010

EXHIBIT A

LEGAL DESCRIPTION

RIGHT-OF-WAY DEDICATION

REAL PROPERTY SITUATE IN THE CITY OF WEST SACRAMENTO, COUNTY OF YOLO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

BEING A PORTION OF THE PARCEL OF LAND DESCRIBED IN THAT GRANT DEED RECORDED JUNE 2, 2023, AS DOCUMENT NO. 2023-0008726 OF OFFICIAL RECORDS OF YOLO COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHEASTERN CORNER OF SAID PARCEL OF LAND, SAID POINT BEING THE SOUTHEASTERN CORNER OF LOT 32 AND THE CENTERLINE

THENCE, FROM SAID POINT OF COMMENCEMENT, ALONG THE CENTERLINE OF FIRST STREET, SOUTH 89°44’16” WEST 1,000.41 FEET TO A POINT ON THE EASTERN RIGHT OF WAY LINE OF CALIFORNIA STATE HIGHWAY ROUTE 80 AS GRANTED TO THE STATE OF CALIFORNIA IN THAT GRANT DEED RECORDED SEPTEMBER 23, 1965 IN BOOK 808, AT PAGE 401, OFFICIAL RECORDS OF YOLO COUNTY;

THENCE, ALONG SAID EASTERN RIGHT OF WAY LINE OF CALIFORNIA STATE HIGHWAY ROUTE 80, NORTH 28°50’47” EAST 22.89 FEET TO THE NORTH LINE OF FIRST STREET AND THE POINT OF BEGINNING FOR THIS DESCRIPTION;

THENCE, FROM SAID POINT OF BEGINNING, CONTINUING ALONG SAID RIGHT OF WAY LINE, NORTH 28°50’47” EAST 9.16 FEET;

THENCE, LEAVING SAID RIGHT OF WAY LINE AND RUNNING PARALLEL WITH AND

28.00 FEET NORTHERLY OF SAID CENTERLINE OF FIRST STREET, NORTH 89°44’16” EAST 922.78 FEET;
THENCE, ALONG THE ARC OF A TANGENT 34.00 FOOT RADIUS CURVE TO THE LEFT, THROUGH CENTRAL ANGLE OF 90°02’06”, AN ARC DISTANCE OF 53.43 FEET;
THENCE, RUNNING PARALLEL WITH AND 28.00 FEET WESTERLY OF SAID CENTERLINE OF SUTTER AVENUE, NORTH 00°17’50” WEST 812.96 FEET; THENCE, ALONG THE ARC OF A TANGENT 44.00 FOOT RADIUS CURVE TO THE LEFT, THROUGH A CENTRAL ANGLE OF 43°56’44”, AN ARC DISTANCE OF 33.75 FEET;
THENCE, ALONG THE ARC OF A REVERSE 56.00 FOOT RADIUS CURVE TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 103°56’44”, AN ARC DISTANCE OF 101.59 FEET;
439
LEGAL DESCRIPTION AUGUST 13, 2024
PAGE 2 OF 2 JOB NO.: 3613-010
H:\3613-010\ACAD\SURVEY\PLC\3613-010_RIGHT-OF-WAY-DEDICATION_001_LG.DOCX THENCE, NORTH 00°17’50” WEST 33.31 FEET TO A POINT ON THE SOUTHERN RIGHT OF WAY LINE OF THE LANDS OF SOUTHERN PACIFIC RAILROAD; THENCE, ALONG SAID SOUTHERN RIGHT OF WAY LINE, NORTH 73°51’41” EAST

8.32 FEET TO THE WEST LINE OF SUTTER AVENUE;

THENCE, LEAVING SAID SOUTHERN RIGHT OF WAY LINE, ALONG SAID WEST LINE OF SUTTER AVENUE, SOUTH 00°17’50” EAST 1008.47 FEET TO AN INTERSECTION WITH SAID NORTH LINE OF FIRST STREET;
THENCE, ALONG SAID NORTH LINE OF FIRST STREET, SOUTH 89°44’16” WEST 969.26 FEET TO THE POINT OF BEGINNING.

CONTAINING 17,958 SQUARE FEET OF LAND, MORE OR LESS.

ATTACHED HERETO IS EXHIBIT B, A PLAT TO ACCOMPANY LEGAL DESCRIPTION, AND BY THIS REFERENCE MADE A PART HEREOF.

END OF DESCRIPTION
_______________________
MATHEW A. STEWARD, P.L.S.

L.S. NO. 9036
8/13/2024
440
w _J <(
u
(./')
LEGEND

POB POINT OF BEGINNING

POC POINT OF COMMENCEMENT

EX EXISTING

R/W RIGHT OF WAY
SEE SHEET 2 FOR CURVE
AND LINE TABLES.
'j 3

RIGHT OF WAY DEDICATION
AREA = 17,958 SF±
26 MAP OF SUTTER

GARDENS ACRES
(3 M 58)
25 28
29 N
oci
3::

C>
r 0
0 � z:
@"' ,,S � �- ----+---+--- -- -t--- --8-1 _R_/_W_------t1H f;;•g- EX 40' �"'1:;'(§ R/W DEDICATION
�� •j 5 2Lt 30 �
23 ,------+-------,Z:------t-""::::'-+------------t-----------n---1 3:: g -......... f0'.'. c5
9'-o - o
N :§::: CO W
-......... 0
XO'.'. w
22 N89'44'16"E 922. 78'

FI RST STREET

EXHIBITB
C>N 3::
-.......__
X O'.'. w
32 POC

PLAT TO ACCOMPANY LEGAL DESCRIPTION

RIGHT-OF-WAY DEDICATION

SUTTER A VENUE & FIRST STREET
EX 20'
R/W
EX 20'
R/W

WEST SACRAMENTO, YOLO COUNTY, CALIFORNIA
AUGUST 8, 2024 SHEET 1 OF 2
cbg SAN RAMON • (925) 866-0322
ROSEVILLE • (916)788-4456
WWW.CBANDG.COM
CIVIL ENGINEERS • SURVEYORS ■ PLANNERS
JOB NO. 3613-010 H:13613-010\ACADISURVEY\PLCIRIGHT-OF-WAY-DEDICATION_ 001\3613-01 0_RIGHT-OF-WAY-DEDICATION_ 001.DWG 441

LINE TABLE

NO BEARING LENGTH
L1 N28'50'47"E 22.89'
L2 N28'50'47"E 9.16'
L3 N00'17'50"W 33.31'
L4 N73'51'41"E 8.32'

CURVE TABLE

NO RADIUS DELTA LENGTH
C1 34.00' 90'02'06" 53.43'
C2 44.00' 43·55'44" 33.75'
C3 56.00' 103·55'44" 101.59'

EXHIBITB

PLAT TO ACCOMPANY LEGAL DESCRIPTION
JOB NO. 3613--010

RIGHT-OF-WAY DEDICATION

SUTTER A VENUE & FIRST STREET

WEST SACRAMENTO, YOLO COUNTY, CALIFORNIA
AUGUST 8, 2024
cbg SAN RAMON ■ (925) 866-0322
ROSEVILLE ■ (916)788-4456
WWW.CBANDG.COM
CIVIL ENGINEERS ■ SURVEYORS ■ PLANNERS
SHEET2OF2
H:\3613-010\ACADISURVEYIPLC\RIGHT-OF-WAY-DEDICATION_001\3613-010_RIGHT-OF-WAY-DEDICATION_001.DWG 442
443
444

CITY COUNCIL AGENDA REPORT
MEETING DATE: August 21, 2024 ITEM # 8
SUBJECT:

CONSIDERATION OF CONTRACT FOR SERVICES WITH LYONS SECURITY SERVICES, INC., FOR SECURITY GUARD SERVICES AT THE CITY’S HOMELESS EMERGENCY

HOUSING PROGRAMS
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Tanya Flores, Assistant Community Investment Planner
Economic Development & Housing Department
ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [X] Action

OBJECTIVE
The purpose of this report is to provide sufficient information for Council to consider approving a contract for services with Lyons Security Services, Inc. to provide security guard services for the City’s homeless emergency housing programs.

RECOMMENDED ACTION
Staff respectfully recommends that the City Council:
1) Approve a 12-month contract (Attachment 1) with Lyons Security Services, Inc., for security services in an amount not to exceed $671,892, for the City’s homeless emergency housing programs, and authorize the City Manager, or his designee, to execute the contract for services; 2) Delegate authority to the City Manager, or his designee, to exercise two additional one-year terms, not to exceed $676,091.50 and $555,449.70, respectively, including an option for a dedicated vehicle, if needed; and
3) Authorize the City Manager or his designee to execute amendments or change orders up to 15% ($100,784.00) of the contract; and
4) Authorize the City Manager, or his designee, to make non-substantive changes or modifications to the contract, with approval from the City Attorney.

BACKGROUND
In December 2020, the City acquired the 40-unit Rodeway Inn to house homeless individuals vulnerable to the COVID-19 pandemic. This site provides non-congregate interim housing for persons experiencing homelessness, aiming to stabilize program participants and transition them into permanent housing.

In May 2023, the City expanded its homeless emergency housing offerings by acquiring the 21-unit Flamingo Motel. Similar to the Rodeway Inn, the Flamingo Motel also provides non-congregate interim housing with the goal of moving participants into permanent housing. The programs at the former Rodeway Inn and Flamingo Motel are expected to conclude in December 2025 and June 2026, respectively.

On April 10, 2024, the City Council approved the purchase of two additional motel properties: the Pick Wick Motel at 1809 West Capitol Avenue and the El Tejon Motel at 1812 Merkley Avenue. These acquisitions support the initial expansion and longer-term operation of the homeless emergency housing programs. Both sites will provide non-congregate interim housing with the goal of transitioning participants into permanent housing.

Ensuring staff and physical safety is critical for municipal facilities as they deliver a variety of services. Security guards play a key role in this by acting as a liaison between staff and program participants, enforcing City rules and regulations to protect both staff and property.

A contract with A1 Protective Services, LLC was established on December 10, 2020, to provide security guard services. Several amendments have extended their services, with the current contract set to expire on September 30, 2024.

ANALYSIS
On March 15, 2024, staff released a Request for Proposal (RFP) for Security Guard Services for the City’s homeless emergency housing sites. The City requires these security services to protect the sites, ensure the safety of program participants and staff, and address potential issues related to the vulnerable population served. 445
Contract for Security Guard Services with Lyons Security Services, Inc.

August 21, 2024

Page 2 ends

The Security Guard Services RFP outlined a comprehensive range of services, including monitoring and authorizing the entrance and departure of program participants, conducting hourly patrols to detect signs of intrusion, suspicious or illegal occurrences, and unsafe or dangerous circumstances. The RFP also specified the need to report any unsafe or dangerous conditions to the City’s designated personnel.

Nineteen proposals were received in response to the RFP. A review team comprised of staff from the Police Department’s Community Outreach and Support Division and Economic Development and Housing Department, evaluated the proposals based on various criteria, including qualifications, technical approach, and cost. The top four proposals were selected for interviews. During these interviews, Lyons Security Services, Inc. demonstrated proven ability and experience working with the homeless population. While other proposals received by Onguard, Safe Choice Security INC, and A.G. Coast Corp. dba California Panther Security, also demonstrated qualifications and experience in providing security guard services, Lyons Security Services, Inc. exhibited a stronger understanding of the unique program needs and offered a more robust staffing model.

Lyons Security Services, Inc.'s proposal highlighted their qualifications and experience necessary for executing the contract tasks. Their unique approach to security services, experience with the homeless population, and training they have provided to other jurisdictions, including the City of West Sacramento, on homeless community outreach, made this firm a standout. Consequently, Lyons Security Services, Inc. received the highest score from all RFP evaluators. In contrast, the proposals from Onguard, Safe Choice Security INC, and A.G. Coast Corp. dba California Panther Security were ranked lower due to their limited experience with the homeless population.

After careful consideration, staff recommends selecting Lyons Security Services, Inc. to provide security services for the City’s emergency housing sites for the next 12 months. Given that the program clients’ needs are anticipated to continue in subsequent years, staff also recommends the option to extend the contract with Lyons Security Services, Inc. for two additional one-year terms, subject to funding appropriated through the City’s biennial budget process. The amount of funding for each additional year varies, due to the anticipated closure of the Rodeway Inn in order to implement the Grand Gateway Master Plan.

Additionally, the contract includes an optional add-on service for a company vehicle at a monthly flat rate of $2,225. While the City is currently opting out of this service, it may be necessary in the future and staff recommends that Council authorize the City Manager to execute the addition of the vehicle, as needed.

Environmental Considerations
This action is not a project subject to CEQA because it is not an activity that may cause either a direct or reasonably foreseeable indirect physical change in the environment. (Pub. Resources Code, § 21065; CEQA Guidelines §§ 15060(c), 15378(a).)
Commission Recommendation
Award of the contract for security services is not a policy action nor an activity that requires feedback from the Economic Development and Housing Commission. However, staff provides regular updates to the Commission on the City’s homeless emergency housing program.

Strategic Plan Integration
The recommended actions address homelessness and communitywide impact management, which has been a key focus of the Council’s Strategic Plan for the past several years, including the 2024 Strategic Plan.

Alternatives
In addition to staff’s recommendation, the City Council’s primary alternatives are:
1) Direct staff to modify the contract with Lyons Security Services, Inc. to consider scope, budget and/or timeframe changes; or
2) Reject the recommended actions.

Alternatives one and two are not recommended as Lyons Security Services, Inc.’s proposal was in direct response to the City’s RFP for security services and was the most responsive proposal received. Delaying a new contract may result in a lapse of security services for the City’s homeless emergency housing sites. 446
Contract for Security Guard Services with Lyons Security Services, Inc.

August 21, 2024

Page 3 ends

Coordination and Review
The report was coordinated with the Finance Department and the Police Department’s Community Outreach and Support Division.

Budget/Cost Impact
The contract will be funded by multiple funding sources, including, ProHousing Incentive Program (PIP), Housing and Homeless Assistance Program (HHAP), Behavioral Health Bridge Housing Program (BHBH) and American Rescue Plan (ARP), among others. The initial year of the proposed contract, totaling $671,892, has sufficient funding. Funding for the second and third years of the contract, if extended, will be covered by the various funding sources available at the time. Staff will not extend the contract unless grant or local funds have been secured.

The City of West Sacramento received a (PIP) grant of $970,000 in August 2023, a HHAP grant of $234,328 in December 2023, both for the Rodeway Inn site, an ARP grant of $2,611,462 for the Flamingo Motel site in May 2023, and a BHBH grant of $2,697,200 for the Pick Wick and El Tejon sites in June 2024. Staff are continuously seeking funding opportunities to sustain operations at the City’s emergency housing sites. Future funding opportunities anticipated to support the second and third years of the proposed contract include the Emergency Solutions Grant (ESG) Program, PIP Round 3 and additional HHAP funds.

ATTACHMENT
1) Security Guard Services Contract
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FEDERAL CONTRACT FOR PROFESSIONAL SERVICES
Table of Contents

1. SCOPE OF SERVICES: ..................................................................................................3

2. TERM OF CONTRACT ....................................................................................................3

3. COMPENSATION: ............................................................................................................4

4. TERMINATION: .................................................................................................................6

6. EXTENSIONS OF TIME: .................................................................................................6

7. PROPERTY OF CITY:......................................................................................................6

8. COMPLIANCE WITH ALL LAWS: ..................................................................................7

9. WARRANTIES AND RESPONSIBILITIES - CONSULTANT: ....................................7

10. SUBCONTRACTING: .......................................................................................................7

11. ASSIGNABILITY: ..............................................................................................................8

12. INTEREST IN CONTRACT: ............................................................................................8

13. MATERIALS CONFIDENTIAL: .......................................................................................8

14. LIABILITY OF CONSULTANT-NEGLIGENCE: ............................................................8

15. INDEMNITY AND LITIGATION COSTS: .......................................................................8

16. CONSULTANT TO PROVIDE INSURANCE: ...............................................................9

17. MISCELLANEOUS PROVISIONS: ..............................................................................11 EXHIBIT A ....................................................................................................................................13 Consultant Proposal ...................................................................................................................13 EXHIBIT C ....................................................................................................................................15 Schedule of Performance ..........................................................................................................15 EXHIBIT D ....................................................................................................................................16 Schedule of Fees ........................................................................................................................16 448
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EXHIBIT E ....................................................................................................................................17 CERTIFICATE OF COMPLIANCE WITH LABOR CODE § 3700 .......................................17 [Labor Code § 1861] ...................................................................................................................17 EXHIBIT F ....................................................................................................................................18 FEDERAL CONTRACT PROVISIONS ....................................................................................18 449
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THIS CONTRACT is made on August 21, 2024, by and between the CITY OF WEST SACRAMENTO (“City”), and Lyons Security Services, Inc. (“Consultant”).

WITNESSETH:

WHEREAS, the City desires a consultant to provide security services at multiple locations for the City’s homeless emergency housing programs; WHEREAS, the Consultant has presented a proposal for such services to the City, dated April 18, 2024, (attached hereto as Exhibit “A”) and is duly licensed, qualified and experienced to perform those services;
NOW, THEREFORE, the parties hereto mutually agree as follows:

1. SCOPE OF SERVICES:

Consultant shall do all work, attend all meetings, produce all reports and carry out all activities necessary to completion of the services described in the Scope of Work, attached hereto and incorporated herein by this reference as Exhibit “B”. This Contract and its exhibits shall be known as the “Contract Documents.” Terms set forth in any Contract Document shall be deemed to be incorporated in all Contract Documents as if set forth in full therein. In the event of conflict between terms contained in these Contract Documents, the more specific term shall control. If any portion of the Contract Documents shall be in conflict with any other portion, provisions contained in the Contract shall govern over conflicting provisions contained in the exhibits to the Contract.

Consultant enters into this Contract as an independent contractor and not as an employee of the City. The Consultant shall have no power or authority by this Contract to bind the City in any respect. Nothing in this Contract shall be construed to be inconsistent with this relationship or status. All employees, agents, contractors or subcontractors hired or retained by the Consultant are employees, agents, contractors or subcontractors of the Consultant and not of the City. The City shall not be obligated in any way to pay any wage claims or other claims made against Consultant by any such employees, agents, contractors or subcontractors, or any other person resulting from performance of this Contract.

The Consultant agrees it has satisfied itself by its own investigation and research regarding the conditions affecting the work to be done and labor and materials needed, and that its decision to execute this Contract is based on such independent investigation and research.

2. TERM OF CONTRACT
A. The services of Consultant are to commence upon receipt of written notice to proceed from the City, and shall be undertaken and completed in accordance with the Schedule of Performance attached hereto and incorporated herein by this reference as Exhibit “C” and terminate on July 31, 2025.

B. Consultant’s failure to complete work in accordance with the Schedule of Performance may result in delayed compensation as described in Section 3. 450
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C. The City Manager or his or her designee may, by written instrument signed by the Parties, extend the duration of this Contract in the manner provided in Section 5, provided that the extension does not require the payment of compensation in excess of the maximum compensation set forth in Section 3, Compensation.

3. COMPENSATION:

A. The Consultant shall be paid monthly for the actual fees, costs and expenses for all time and materials required and expended, but in no event shall total compensation exceed Six Hundred Seventy-One Thousand, Eight Hundred Ninety-Two ($671,892), without City’s prior written approval. Consultant's fees shall be as specified in the Schedule of Fees, which is attached hereto an incorporated herein as Exhibit "D".

B. Said amount shall be paid upon submittal of a monthly billing showing completion of the tasks that month per site. Consultant shall furnish City with invoices for all expenses as well as for all materials authorized by this Contract. The invoices shall be submitted with the monthly billings. If Consultant’s performance is not in conformity with the Schedule of Performance, payments may be delayed or denied, unless the Consultant’s failure to perform in conformity with the Schedule of Performance is a documented result of the City’s failure to conform with the Schedule of Performance, or if the Schedule of Performance is extended pursuant to Section 5.

C. If the work is halted at the request of the City, compensation shall be based upon the proportion that the work performed bears to the total work required by this Contract, subject to Section 4.

D. Allowable Costs and Payments

1. The method of payment for this AGREEMENT, except those items to be paid for on a specified rate basis, will be based on cost per unit of work. LOCAL AGENCY will reimburse CONSULTANT for actual costs (including labor costs, employee benefits, travel, equipment-rental costs, overhead and other direct costs) incurred by CONSULTANT in performance of the work. CONSULTANT will not be reimbursed for actual costs that exceed the estimated wage rates, employee benefits, travel, equipment rental, overhead and other estimated costs set forth in the approved Cost Proposal, unless additional reimbursement is provided for, by AGREEMENT amendment. In no event, will CONSULTANT be reimbursed for overhead costs at a rate that exceeds LOCAL AGENCY approved overhead rate set forth in the approved Cost Proposal. In the event, LOCAL AGENCY determines that changed work from that specified in the approved Cost Proposal and AGREEMENT is required; the actual costs reimbursable by LOCAL AGENCY may be adjusted by AGREEMENT amendment to accommodate the changed work. The maximum total cost as specified in Paragraph “I,” of this article shall not be exceeded unless authorized by AGREEMENT amendment.

2. Progress payments will be made monthly in arrears based on services provided and allowable incurred costs. A pro rata portion of CONSULTANT’s fixed fee will be included in the monthly progress payments. If CONSULTANT fails to submit the required deliverable items according to the schedule set forth in Article III Statement of Work, LOCAL AGENCY shall have the right to delay payment or terminate this AGREEMENT.
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3. No payment will be made prior to approval of any work, nor for any work performed prior to approval of this AGREEMENT.

4. CONSULTANT will be reimbursed promptly according to California Regulations upon receipt by LOCAL AGENCY’s Contract Administrator of itemized invoices in duplicate. Invoices shall be submitted no later than thirty (30) calendar days after the performance of work for which CONSULTANT is billing. Invoices shall detail the work performed on each milestone and each project as applicable. Invoices shall follw the format stipulated for the approved Cost Proposal and shall reference this AGREEMENT number and project title. Final invoice must contain the final cost and all credits due LOCAL AGENCY including any equipment purchased under the provisions of Article XI Equipment Purchase. The final invoice should be submitted within sixty (60) calendar days after completion of CONSULTANT’s work. Invoices shall be mailed to LOCAL AGENCY’s Contract Administrator at the following address:

City: Tanya Flores, Community Investment Planner
City of West Sacramento
1110 West Capitol Avenue
West Sacramento, CA 95691
Email: [email protected]

5. For personnel subject to prevailing wage rates as described in the California Labor Code, all salary increases, which are the direct result of changes in the prevailing wage rates are reimbursable.

F. PROMPT PAYMENT FROM LOCAL AGENCY TO CONSULTANT
The LOCAL AGENCY shall make all project progress payment within 30 days after receipt of an undisputed and properly submitted payment request from CONSULTANT on a professional service contract. If the LOCAL AGENCY fails to pay promptly, the LOCAL AGENCY shall pay interest to the CONSULTANT, which accrues at the rate of 10 percent per annum on the principal amount of a money judgment remaining unsatisfied and pro-rated as necessary. Upon receipt of the payment request, the LOCAL AGENCY shall act in accordance with both of the following:
(1) The LOCAL AGENCY shall review each payment request as soon as feasible after receipt to verify it is a proper payment request. (2) The LOCAL AGENCY must return any payment request deemed improper by the LOCAL AGENCY to the CONSULTANT as soon as feasible, but not later than seven (7) days, after receipt. A request returned pursuant to this paragraph shall include documentation setting forth in writing the reasons why it is an improper payment request.

G. PROMPT PAYMENT CERTIFICATION
The CONSULTANT must submit Exhibit 9-P to the LOCAL AGENCY administering the contract by the 15th of the month following the month of any payment(s). If the CONSULTANT does not make any payments to subconsultants, supplier(s), and/or 452
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manufacturers they must report “no payments were made to subs this month” and write this visibly and legibly on Exhibit 9-P.

The LOCAL AGENCY must verify all Exhibit 9-P information, monitor compliance with prompt payment requirements for DBE and non-DBE firms, and address any shortfalls to the DBE commitment and prompt payment issues until the end of the project. The LOCAL AGENCY must email a copy of Exhibit 9-P to [email protected] before the end of the month after receiving the Exhibit 9-P from the CONSULTANT.

4. TERMINATION:

A. This Contract may be terminated by either party, provided that the other party is given not less than 30 calendar days’ written notice (delivered by certified mail, return receipt requested) of intent to terminate.

B. The City may temporarily suspend this Contract, at no additional cost to City, provided that the Consultant is given written notice (delivered by certified mail, return receipt requested) of temporary suspension. If City gives such notice of temporary suspension, Consultant shall immediately suspend its activities under this Contract.

C. Notwithstanding any provisions of this Contract, Consultant shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of this Contract by Consultant, and the City may withhold any payments due to Consultant until such time as the exact amount of damages, if any, due the City from Consultant is determined.

D. In the event of termination, the Consultant shall be compensated as provided for in this Contract, except as provided in Section 4.C. Upon termination, the City shall be entitled to all work, including but not limited to, appraisals, inventories, studies, analyses, drawings and data estimates performed to that date in accordance with Section 7 hereof.

5. AMENDMENTS, CHANGES OR MODIFICATIONS:

Amendments, changes or modifications in the terms of this Contract may be made at any time by mutual written agreement between the parties hereto and shall be signed by the persons authorized to bind the parties hereto.

6. EXTENSIONS OF TIME:

Consultant may, for good cause, request extensions of time to perform the services required hereunder. Such extensions shall be authorized in advance by the City in writing and shall be incorporated in written amendments to this Contract or the attached Work Program in the manner provided in Section 5.

7. PROPERTY OF CITY:

A. It is mutually agreed that all materials prepared by the Consultant under this Contract shall become the property of the City, and the Consultant shall have no property right therein whatsoever. Immediately upon termination, the City shall be entitled to, and the Consultant shall deliver to the City, all data, drawings, specifications, reports, estimates, summaries and other such materials as may have been prepared or accumulated to date by the Consultant in performing this Contract which is not Consultant’s privileged information, as defined 453
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by law, or Consultant’s personnel information, along with all other property belonging exclusively to the City which is in the Consultant’s possession.

8. COMPLIANCE WITH ALL LAWS:

A. Consultant shall comply with all applicable laws, ordinances, and codes of federal, State and local governments, and shall commit no trespass on any public or private property in performing any of the work authorized by this Contract.

B. Consultant warrants to the City that it is licensed by all applicable governmental bodies to perform this Contract and will remain so licensed throughout the progress of the Work, and that it has, and will have, throughout the progress of the Work, the necessary experience, skill and financial resources to enable it to perform this Contract.

This Contract is funded in whole in part through grant funds received under the following grants: ProHousing Incentive Program (PIP), Emergency Solutions Grant (ESG), Homeless and Housing Assistance Program (HHAP), American Rescue Plan (ARP), Behavioral Health Bridge Housing Program (BHBH (the “Grants”), the terms of which are incorporated herein. Copies of the Grants and any related materials have been made available to Consultant, and Consultant shall ensure that its performance under this Contract, and that of any subcontractors, conforms to the requirements of the Grant.

9. WARRANTIES AND RESPONSIBILITIES - CONSULTANT:

A. Consultant agrees and represents that it is qualified to properly provide the services set forth in Exhibit “A” in a manner which is consistent with the generally accepted standards of Consultant’s profession.

B. Consultant agrees and represents that the work performed under this Contract shall be in accordance with applicable federal, State and local law in accordance with Section 17A hereof.

C. Consultant shall designate a project manager who at all times shall represent the Consultant before the City on all matters relating to this Contract. The project manager shall continue in such capacity unless and until he or she is removed at the request of the City, is no longer employed by Consultant, or is replaced with the written approval of the City, which approval shall not be unreasonably withheld.

D. Consultant shall provide corrective services without charge to the City for services which fail to meet the above professional and legal standards and which are reported to Consultant in writing within sixty (60) days of discovery. Should Consultant fail or refuse to perform promptly its obligations, the City may render or undertake performance thereof and the Consultant shall be liable for any expenses thereby incurred.]

10. SUBCONTRACTING:

None of the services covered by this Contract shall be subcontracted without the prior written consent of the City, which will not be unreasonably withheld. Consultant shall be as fully 454
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responsible to the City for the negligent acts and omissions of its contractors and subcontractors, and of persons either directly or indirectly employed by them, as it is for the negligent acts and omissions of persons directly employed by Consultant.

11. ASSIGNABILITY:

Consultant shall not assign or transfer any interest in this Contract whether by assignment or novation, without the prior written consent of the City which will not be unreasonably withheld.

However, claims for money due or to become due Consultant from the City under this Contract may be assigned to a financial institution, or to a trustee in bankruptcy, without such approval.

Notice of any assignment or transfer whether voluntary or involuntary shall be furnished promptly to the City.

12. INTEREST IN CONTRACT:

Consultant covenants that neither it, nor any of its employees, agents, contractors, subcontractors has any interest, nor shall they acquire any interest, direct or indirect, in the subject of the Contract, nor any other interest which would conflict in any manner or degree with the performance of its services hereunder. Consultant shall make all disclosures required by the City’s conflict of interest code in accordance with the category designated by the City, unless the City Manager determines in writing that Consultant’s duties are more limited in scope than is warranted by the category designated by the City code and that a narrower disclosure category should apply. Consultant also agrees to make disclosure in compliance with the City conflict of interest code if, at any time after the execution of this Contract, City determines and notifies Consultant in writing that Consultant’s duties under this Contract warrant greater disclosure by Consultant than was originally contemplated. Consultant shall make disclosures in the time, place and manner set forth in the conflict of interest code and as directed by the City.

13. MATERIALS CONFIDENTIAL:

All of the materials prepared or assembled by Consultant pursuant to performance of this Contract are confidential and Consultant agrees that they shall not be made available to any individual or organization without the prior written approval of the City, except by court order.

14. LIABILITY OF CONSULTANT-NEGLIGENCE:

Consultant shall be responsible for performing the work under this Contract in a manner which is consistent with the generally-accepted standards of the Consultant’s profession and shall be liable for its own negligence and the negligent acts of its employees, agents, contractors and subcontractors. The City shall have no right of control over the manner in which the work is to be done but only as to its outcome, and shall not be charged with the responsibility of preventing risk to Consultant or its employees, agents, contractors or subcontractors.

15. INDEMNITY AND LITIGATION COSTS:

Consultant shall indemnify, defend, and hold harmless the City, its officers, officials, agents, and employees against all claims, damages, demands, liability, costs, losses and expenses, including without limitation court costs and reasonable attorneys’ fees, arising from 455
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Consultant's negligent acts or negligent failure to act, errors, omissions or willful misconduct incident to the performance of this Contract except such loss or damage caused by the active negligence, sole negligence, or willful misconduct of the City. The provisions of this paragraph shall survive termination or suspension of this Contract.

16. CONSULTANT TO PROVIDE INSURANCE:

A. Consultant shall not commence any work before obtaining, and shall maintain in force at all times during the duration and performance of this Contract, the policies of insurance specified in this Section. Such insurance must have the approval of the City as to limit, form, and amount, and shall be placed with insurers with a current A.M. Best’s rating of no less than A VII (an NR rating is acceptable for Worker’s Compensation insurance written with the State Compensation Insurance Fund of California).

B. Prior to execution of this Contract and prior to commencement of any work, the Consultant shall furnish the City with certificates of insurance and copies of endorsements providing evidence of coverage for all policies required by the Contract. The Consultant and its contractors and subcontractors shall, at their expense, maintain in effect at all times during the performance of work under the Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers and under forms of policy satisfactory to the City. The maintenance by Consultant and its contractors and subcontractors of the following coverage and limits of insurance is a material element of this Contract. The failure of Consultant or of any of its contractors or subcontractors to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of this Contract.

Approval of the insurance by the City shall not relieve or decrease any liability of Consultant.

1. Worker’s Compensation and Employer’s Liability Insurance

a. Worker’s Compensation - Insurance to protect the Consultant, its contractors and subcontractors from all claims under Worker’s Compensation and Employer’s Liability Acts, including Longshoremen’s and Harbor Worker’s Act (“Acts”), if applicable. Such coverage shall be maintained, in type and amount, in strict compliance with all applicable state and Federal statutes and regulations. The Consultant shall execute a certificate in compliance with Labor Code Section 1861, on the form provided in the Contract Documents. b. Consultant shall provide a Waiver of Subrogation endorsement in favor of the City, its officers, officials, employees, agents and volunteers for losses arising from work performed by the Consultant.

2. Commercial General Liability Insurance
a. The insurance shall be provided on form CG0001, or its equivalent, and shall include coverage for claims for bodily injury or property damage arising out of premises/operations, products/completed operations, contractual liability, and subconsultant’s work and personal and advertising injury resulting from actions, failures to act, or operations of the insured, or by its employees or agents, or by anyone directly or indirectly employed by the insured. The amount of insurance coverage shall not be less than $2,000,000 per occurrence and $4,000,000 general and products/completed operations aggregates. 456
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b. The commercial general liability insurance shall also include the following:
i. Endorsement equivalent to CG 2010 0714 naming
the City, its officers, officials, employees, agents, and volunteers as additional insureds. The endorsement shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers.
ii. Endorsement stating insurance provided to the City shall be primary as respects the City, its officers, officials, employees and any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be in excess of the Consultant’s insurance and shall not contribute with it, to the payment or satisfaction of any defense expenses, loss, or judgment.
iii. Provision or endorsement stating that the Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

3. Commercial Automobile Insurance
a. The insurance shall include, but shall not be limited to, coverage for claims for bodily injury or property damage for owned, non-owned, and hired automobiles resulting from actions, failures to act, or operations of the insured, or by its employees or agents, or by anyone directly or indirectly employed by the insured. The amount of insurance coverage shall not be less than $2,000,000 per accident.
b. The commercial automobile insurance shall include the same endorsements required for the commercial general liability policy (see Section

16.B.2.b).

C. In addition to any other remedy the City may have, if Consultant fails to maintain the insurance coverage as required in this Section, the City may obtain such insurance coverage as is not being maintained, in form and amount substantially the same as is required herein, and the City may deduct the cost of such insurance from any amounts due or which may become due Consultant under this Contract.

D. No policy required by this Contract shall be suspended, cancelled, terminated by either party, or reduced in coverage or in limits unless Consultant has provided thirty (30) days prior written notice by certified mail, return receipt requested, to the City.

E. Any deductibles or self-insured retentions in excess of $10,000 must be declared to, and approved by, the City.

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the liabilities and obligations assumed by Consultant under the Contract.

17. MISCELLANEOUS PROVISIONS:

A. Consultant shall keep itself fully informed of, shall observe and comply with, and shall cause any and all persons, firms or corporations employed by it or under its control to observe and comply with, applicable federal, state, county and municipal laws, ordinances, regulations, orders and decrees which in any manner affect those engaged or employed on the work described by this Contract or the materials used or which in any way affect the conduct of the work.

B. Consultant shall not engage in unlawful employment discrimination. Such unlawful employment discrimination includes, but is not limited to, employment discrimination based upon a person’s race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, gender, citizenship, or sexual orientation.

D. This Contract constitutes the entire agreement between the parties relative to the services specified herein and no modification hereof shall be effective unless and until such modification is evidenced by a writing signed by both parties to this Contract. There are no understandings, agreements, conditions, representations, warranties or promises, with respect to this Contract, except those contained in or referred to in the writing.

E. This Contract is funded in whole in part through grant funds received under the following grants: ProHousing Incentive Program (PIP), Emergency Solutions Grant (ESG), Homeless and Housing Assistance Program (HHAP), American Rescue Plan (ARP), Behavioral Health Bridge Housing Program (BHBH (the “Grant”), the terms of which are incorporated herein.

Copies of the Grant[s] and any related materials have been made available to Consultant, and Consultant shall ensure that its performance under this Contract, and that of any subcontractors, conforms to the requirements of the Grants.

F. All notices that are required to be given by one party to the other under this Contract shall be in writing and shall be deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited in a United States Post Office for delivery by registered or certified mail addressed to the parties at the following addresses:

City: Tanya Flores, Community Investment Planner
City of West Sacramento
1110 West Capitol Avenue
West Sacramento, CA 95691
Email: [email protected]
Consultant: Company Lyons Security Services, Inc.

Attn to: Nicholas Guidice
Address 505 S. Villa Real Drive, Suite 203A
Address Anaheim, CA 92807
Email: [email protected]
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F. This Contract shall be interpreted and governed by the laws of the State of California.

G. Any action arising out of this Contract shall be brought and maintained in Yolo County California, regardless of where else venue may lie.

H. In any action brought by either party to enforce the terms of this Contract, each party shall be bear responsibility for its attorney’s fees and all costs regardless of whether one party is determined to be the prevailing party.

I. This Contract may be signed in counterparts, and may be signed electronically.

By signing this document in electronic form, the parties agree that this Contract may be transmitted and signed electronically by all Parties, and that such signatures shall have the same force and effect as original signatures, in accordance with California law and regulations, including but not limited to Civil Code section 1633.7. [Signatures on following page]

CITY OF WEST SACRAMENTO
By: __________________________
Amanda Berlin, Assistant City Manager
ATTEST:

By: _________________________________
Jennifer Cusmir, City Clerk
APPROVED AS TO FORM:

By: __________________________________
Jeffrey Mitchell, City Attorney

CONSULTANT
By: _________________________
Nicholas Guidice, President
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EXHIBIT A
Consultant Proposal
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Lyons Security Hiring Process
Lyons is highly selective about whom it hires. From January 2023 to December 2023, Lyons conducted interviews with 2855 individuals but chose only 314 individuals, roughly 11% of the applicants, as we demand more from our staff to fit our clients' needs.

I. Personnel Recruitment and Selection
A. General Statement of Approach
All guard force personnel, without exception, will be required to satisfy the job description and qualifications for the positions for which they are hired.

B. Personnel Recruitment Program

1. Request resumes of qualifications from respondents.

2. Review resumes and identify qualified candidates.

3. Conduct interviews with qualified candidates.

4. Review applications and required documentation supplied by applicants.

5. Conduct interviews with qualified candidates to verify minimum qualifications.

6. Conduct background investigations, including fingerprint tests.

7. Coordinate physical exams for all qualified candidates.

8. Review standards of conduct policy with all City of West Sacramento contract

9. manager-approved personnel.

10. Create employee files for all City of West Sacramento contract manager-approved personnel.
a) Maintain the original file in the corporate office and make it available to the contract manager upon request.
b) Maintain a computerized roster at the corporate office.

II. Minimum Qualifications
A. Possess the required experience in security, military, or law enforcement per contract.

B. Possess the necessary language proficiency as required by the contract.

C. Minimum either a high school diploma or a General Equivalency Diploma D. Must have a current Guard Card distributed by the BSIS, Exposed Firearm’s Permit when necessary
E. Provide certification from a licensed physician as evidence of physical fitness.

III. Background Investigations
All guard force personnel must pass a suitable background investigation, including a credit check, proof of favorable employment during the previous three years, recommendation(s) of earlier superiors, and verification of personal residence. Such background investigations will be utilized to confirm each applicant’s information:

1. Skills

2. Qualifications

3. Performance levels

4. DMV Record retrieval for all patrol personnel
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5. Customer Service History

6. Reliability

7. Communication skills

8. Fingerprint check conducted by the CA Dept. of Justice Security Officer Training
What distinguishes Lyons Security from our competitors is our strong emphasis on in-class training, which has been proven to enhance retention of the material being taught substantially. We prioritize equipping our staff with the knowledge and skills necessary to excel. As part of our comprehensive training program, our personnel are required to complete a range of courses, including a POST-level homeless liaison course, report writing, sexual harassment awareness, customer service excellence, active shooter response training, as well as CPR/AED/Narcan training. By investing in thorough and rigorous training initiatives, we ensure that our team is well-prepared to deliver top-tier security services while prioritizing the safety and well-being of our clients and the community.

With each contract, we customize our training approach to suit the specific requirements of armed or unarmed guards and address the unique needs of our clients. We offer diverse training classes and actively encourage our clients to attend and participate in these sessions. At Lyons Security, we firmly believe in the strength of collaboration and unity. By working together, our team and clients can enhance their skills, knowledge, and effectiveness, ultimately fostering a safer and more secure environment for all involved.

Lyons Security's comprehensive training program is a testament to its commitment to excellence in security services. Our training protocols equip personnel with the necessary skills, knowledge, and expertise to effectively mitigate risks and maintain safety in diverse environments. Through specialized instruction in conflict resolution, crisis management, and community engagement, Lyons Security ensures our team members are well-prepared to handle situations professionally and carefully. The effectiveness of our training program is evident in the significant reduction of crime and calls for service observed by the City of Santa Ana Parks Department since the deployment of our personnel. By fostering a proactive and vigilant approach to security, Lyons Security has enhanced public safety and forged valuable partnerships with law enforcement agencies, contributing to a safer and more secure community for all residents of Santa Ana.

Our staff has demonstrated their ability to retain the training we provide and deploy it in the field. Since January 2023, our staff deployed Narcan to individuals displaying signs and symptoms of narcotic overdose on seven (7) occasions within Santa Ana Parks. All of the Narcan deployments have effectively saved the life of the involved individual.

Below is a comprehensive list of the training classes we will provide to security personnel assigned to the City of West Sacramento Homelessness Strategies & Solutions Department contract. 462
City of West Sacramento
24-012-RFP Security Guard Services for Homeless Housing Unarmed Lyons Security Training Plan
Subject Lesson Plan Hours
Introduction The Lyons Way 2
Basic Preparedness Basic Duties of Private Security 2
Life Safety Fire Detection 4
Emergency Response
OSHA
Slip, Trip, & Fall Prevention
Accident Prevention & Investigation
Legalities Legal Authorities of the Security Officer 4
Powers to Arrest
Search & Seizure
Crime Scene Information
Professional Communications Report Writing 4
Customer Interaction
Telephone Etiquette
Physical Security Patrol Techniques 8
Access Control
Bomb Threats
Active Shooter
Controlled Substances
Traffic Control
Program Specific Homeless Liaison Officer Training 16
CPR/AED/Narcan Training
Total Training 40
463
City of West Sacramento
24-012-RFP Security Guard Services for Homeless Housing Technology & Equipment
Lyons utilizes a multifaceted approach to ensure quality control between technology and having group management oversee the contract. Our response indicates that the City of West Sacramento will have multiple managers and executive team members supporting the contract. To coincide with the individuals involved, we will also provide our staff with equipment to help create a more efficient environment.

Mobile Devices
The security guard personnel will be provided mobile devices for quick access to the corporate office and after-hour emergency staffing for client personnel. The device will be utilized and monitored for emergency and official security business. The mobile devices will have the Account Manager’s number on speed dial, local law enforcement, fire department, and any numbers requested by the client under contract agreements.

Radios
Lyons officers may be equipped with LTE Radios to communicate with one another. LTE will allow the patrol officer to communicate offsite with onsite staff.

Patrol Unit
Staff will be given company-owned vehicles as deemed necessary. Lyons has thirty-one (31) cars in our fleet, ranging from trucks to sedans, all but one being GM vehicles manufactured in 2021 or later. All vehicles assigned will be marked on both sides of the car with our company name, logo, PPO license number, and the word “Security.” vehicles will have a PPO license written on the back of the vehicle as mandated by BSIS. Furthermore, the age of the cars will remain compliant throughout the contract.

Mobile Clocking in and out
Lyons utilizes an electronic check-in/check-out service for our officers through an application supported on all Android and Apple products. The application allows our officers to see their schedules, confirm their schedules, switch their schedules, see post orders for each site, and provide GPS capability, allowing all supervisors to see exactly where the officer is when they check in and out. Suppose an employee forgets to check in or out; our supervisors receive a notice within five minutes indicating an employee missed a check-in or out. This leads to our management following up to verify that guards are on post. 464
City of West Sacramento
24-012-RFP Security Guard Services for Homeless Housing Guard Tour Patrols
We utilize NFC Codes for our security officer routes as they cannot be manipulated like QR Codes. NFC tags are time-stamped and indicate where an officer is at an exact time. The codes are stickers that do not cause any damage once removed and can be easily replaced if taken off. Furthermore, the codes are used through a mobile device and are delivered at the end of each shift.

Sample:

Guard Management Systems
Reports are often overlooked, but they are critical in performing our services at Lyons Security Service as they depict each site's live issues. So frequently, clients get the “all clear” reports. We have a specific approach to report writing that differentiates us from our competitors and allows our staff to provide detailed information about our client sites. Reports may be sent automatically and daily at 5:00 AM or after each shift, whichever the City of West Sacramento desires. 465
City of West Sacramento
24-012-RFP Security Guard Services for Homeless Housing 466 City of West Sacramento
24-012-RFP Security Guard Services for Homeless Housing Key Management
As keys are critical to infrastructure, the loss of keys could be detrimental and cause a huge security risk, which is why we utilize AirTags for all of our staff keys.

Uniforms
Typically, our uniforms are Carolina Blue, Class B; however, we can customize uniforms to meet our client's needs as long as they are not too similar to law enforcement. 467
Lyons Security Services, Inc.

EDH24-179 - Security Guard Services for Homeless Housing Expires 07/31/25
2388811.1 7203.543 14 rev 12/4/23

EXHIBIT B
Scope of Work
For each location consultants shall provide daily security guard services to the City’s homeless emergency housing sites. The scope of work for security guard services include the following:
• Be a visible presence in the entrance area.
• Monitor and authorize entrance and departure of City's employees. • Direct visitors and provide information regarding City services as instructed by City's designated personnel.
• Conduct hourly patrols to detect signs of intrusion, suspicious or illegal occurrences and unsafe or dangerous circumstances.
• Conduct evening inspections to ensure that gates, doors, and windows are closed and/or properly secured.
• Assist with emergency evacuation drills or actual evacuations as needed. • Ensure the security, safety and well-being of all personnel, visitors, and City property. • Report any unsafe or dangerous conditions or circumstances to City's designated personnel.
• Report unusual or suspicious activities to law enforcement authorities and City's designated personnel.
• Respond to emergencies to provide necessary assistance to employees and visitors. • Complete and submit daily reports by recording observations, information, occurrences, and surveillance activities.

Provide escort to personal vehicles after meeting completion upon request.

LOCATION ADDRESS COMMON NAME SHIFT 1 SHIFT 2
A 817 West Capitol
Avenue
Former Rodeway Inn 5:00 pm - 1:00 am 1:00 am - 6:00 am
B 920 West Capitol Ave Former Flamingo
Motel
5:00 pm - 1:00 am 1:00 am - 6:00 am
C 1821 West Capitol Ave El Tejon Motel 5:00 pm - 1:00 am 1:00 am - 6:00 am D 1809 West Capitol Ave Pick Wick Motel 5:00 pm - 1:00 am 1:00 am - 6:00 am 468
Lyons Security Services, Inc.

EDH24-179 - Security Guard Services for Homeless Housing Expires 07/31/25
2388811.1 7203.543 15 rev 12/4/23

EXHIBIT C
Schedule of Performance
Contract Start Date September 21, 2024
Contract End Date July 31, 2025
469
Lyons Security Services, Inc.

EDH24-179 - Security Guard Services for Homeless Housing Expires 07/31/25
2388811.1 7203.543 16 rev 12/4/23

EXHIBIT D
Schedule of Fees
470
Request for Proposals #24-012-RFP
Title: Security Guard Services for Homeless Housing

10. Cost Proposal
Please generate pricing table based on your project requirements. By task, rates, or units.

YEAR 1
Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 Security Services 1 Hourly Rate
2 Additional Optional Add-On Services
(Please provide details)
1 Monthly Rate
TOTAL
YEAR 2
Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 Security Services 1 Hourly Rate
2 Additional Optional Add-On Services 1 Hourly Rate
TOTAL
YEAR 3
Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 Security Services 1 Hourly Rate
2 Additional Optional Add-On Services 1 Hourly Rate
TOTAL

35.40 2225.00

35.40 2225.00
Additional Optional Service is for Vehicle, if the city requests one.

37.17 39.02
2225.00
2225.00
2225.00
2225.00

37.17 39.02
471
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EXHIBIT E
CERTIFICATE OF COMPLIANCE WITH LABOR CODE § 3700
[Labor Code § 1861]
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

CONSULTANTS
By:

Nicholas Guidice, President
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EXHIBIT F

FEDERAL CONTRACT PROVISIONS
2 C.F.R. § 200.326 and 2 C.F.R. Part 200, Appendix II, Required Contract Clauses In the event of any contradictions or inconsistencies between these provisions and the provisions of the Agreement itself, the terms of this Exhibit shall control. ☒TERMINATION FOR CAUSE (in addition to standard Termination language) Criteria: All Contracts over $10k

1. In the event of any default by the Consultant as described below, the City may, after giving ten (10) days’ written notice to the Consultant, terminate the Consultant’s right to proceed with the Work or any part of the Work in the City’s sole discretion. Events of default include:
a. Failure or refusal to prosecute the Work, or any separable part thereof, with such diligence as will ensure the completion within the time specified in the Contract, or any extension thereof, or failure to complete said work within such time.
b. Filing of bankruptcy by the Consultant, or the making of a general assignment for the benefit of its creditors, or appointment of a receiver on account of Consultant’s insolvency without discharge of the receiver within ten (10) days after its appointment.
c. Failure to make prompt payments to Subcontractors or suppliers. d. Persistent disregard of laws, ordinances, or the instructions of the City, or other substantial violation of any provision of the Contract.

2. In the event the right of the Consultant to proceed with the Work, or any portion thereof, has been terminated because of the default of the Consultant and the Consultant has been given ten (10) days’ notice to cure such fault and has not done so, the City may take over the Work and prosecute the same to completion by contract or any other method the City deems expedient, and may take possession of and utilize in completing the Work such materials, appliances, equipment and plant as may be on the site of the Work and necessary therefore.

In such event, the Consultant and its sureties shall be liable for all damages including costs of managerial and administrative services, engineering, legal and other consultant fees, and liquidated damages sustained or incurred by the City.

3. Upon termination, the Consultant shall not be entitled to receive any further payment until the Work is finished. If upon completion of the Work the total cost to the City, including engineering, legal and other consultant fees, costs of managerial and administrative services, construction costs, and liquidated damages shall be less than the amount which would have been paid if the Work had been completed by the Consultant in accordance with the terms of the Contract, then the difference shall be paid to the Consultant in the same manner as the final payment under the Contract. If the total cost incurred by the City on account of termination of the Contract and subsequent completion of the Work by the City by whatever method the City may deem expedient shall exceed said amount which the Consultant would otherwise have been paid, the Consultant and its sureties shall be liable to the City for the full amount of such excess 473
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expense.

4. The rights and remedies of the City provided in this section are in addition to any of the rights and remedies provided by the law or under this Contract. ☐ EQUAL EMPLOYMENT OPPORTUNITY 41 CFR Part 60-1.4b
Criteria: Construction or repair work. Select either Government Contracts or Federally Assisted Construction Contracts.

Criteria: Government Contracts
During the performance of this contract, the contractor agrees as follows

1. The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin.

Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.

2. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.

3. The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information.

4. The contractor will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or workers' representative of the contractor's commitments under section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

5. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

6. The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the 474
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Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

7. In the event of the contractor's non-compliance with the nondiscrimination clauses of this contract or with any of such rules, regulations, or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

8. The contractor will include the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the contractor may request the United States to enter into such litigation to protect the interests of the United States.
☐ Criteria: Federally assisted construction contracts
Except as otherwise provided, each administering agency shall require the inclusion of the following language as a condition of any grant, contract, loan, insurance, or guarantee involving federally assisted construction which is not exempt from the requirements of the equal opportunity clause: The applicant hereby agrees that it will incorporate or cause to be incorporated into any contract for construction work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, which is paid for in whole or in part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, the following equal opportunity clause:

During the performance of this contract, the contractor agrees as follows:

1. The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin.

Such action shall include, but not be limited to the following:

Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 475
2388811.1 7203.543 21 3/6/24

4. The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the contractor's commitments under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

5. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

6. The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

7. In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

8. The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance:

Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the 476
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administering agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, That if the applicant so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract.

The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance.

The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.

Subcontracts. Each nonexempt prime contractor or subcontractor shall include the equal opportunity clause in each of its nonexempt subcontracts.

Inclusion of the equal opportunity clause by reference. The equal opportunity clause may be included by reference in all Government contracts and subcontracts, including Government bills of lading, transportation requests, contracts for deposit of Government funds, and contracts for issuing and paying U.S. savings bonds and notes, and such other contracts and subcontracts as the Director of OFCCP may designate.

Incorporation by operation of the order. By operation of the order, the equal opportunity clause shall be considered to be a part of every contract and subcontract required by the order and the regulations in this part to include such a clause whether or not it is physically incorporated in such contracts and whether or not the contract between the agency and the contractor is written.

Adaptation of language. Such necessary changes in language may be made in the equal opportunity clause as shall be appropriate to identify properly the parties and their undertakings.
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☐ DAVIS-BACON ACT (40 U.S.C. §§ 3141-3144 and 3146-3148) Criteria: Construction or repair work (not applicable to FEMA)

1. All transactions regarding this contract shall be done in compliance with the Davis-Bacon Act (40 U.S.C. 3141- 3144, and 3146-3148) and the requirements of 29 C.F.R. pt. 5 as may be applicable. The contractor shall comply with 40 U.S.C. 3141-3144, and 3146- 3148 and the requirements of 29 C.F.R. pt. 5 as applicable.

2. Contractors are required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor.

3. Additionally, contractors are required to pay wages not less than once a week. ☐ COPELAND ANTI-KICKBACK ACT
Criteria: Construction or Repair Work >$2k (not applicable to FEMA)

1. Contractor. The contractor shall comply with 18 U.S.C. § 874, 40 U.S.C. § 3145, and the requirements of 29 C.F.R. pt. 3 as may be applicable, which are incorporated by reference into this contract.

2. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clause above and such other clauses as FEMA may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all of these contract clauses.

3. Breach. A breach of the contract clauses above may be grounds for termination of the contract, and for debarment
The CONSULTANT warrants that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any LOCAL AGENCY employee. For breach or violation of this warranty, LOCAL AGENCY shall have the right, in its discretion, to terminate this AGREEMENT without liability, to pay only for the value of the work actually performed, or to deduct from this AGREEMENT price or otherwise recover the full amount of such rebate, kickback or other unlawful consideration

☒ CONTRACT WORK HOURS AND SAFETY STANDARDS ACT
Criteria: Construction or Repair contracts >$100k involving employment of Mechanics or Laborers (does not apply to purchase or service contracts)

1. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and onehalf times the basic rate of pay for all hours worked in excess of forty hours in such workweek.
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2. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a) of this section the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (a) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a) of this section.

3. Withholding for unpaid wages and liquidated damages. The City of West Sacramento shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federallyassisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (b) of this section.

4. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (a) through (d) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (a) through (d) of this section. ☒ Rights to Inventions Made Under a Contract or Agreement.

Criteria: Funding agreement (not applicable to FEMA)
(F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of “funding agreement” under 37 CFR §401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency.

ARTICLE XXVI OWNERSHIP OF DATA
It is mutually agreed that all materials prepared by CONSULTANT under this AGREEMENT shall become the property of City, and CONSULTANT shall have no property right therein whatsoever. Immediately upon termination, City shall be entitled to, and CONSULTANT shall deliver to City, reports, investigations, appraisals, inventories, studies, analyses, drawings and data estimates performed to that date, whether completed or not, and other such materials as may have been prepared or accumulated to date by CONSULTANT in performing this AGREEMENT which is not CONSULTANT’s privileged information, as defined by law, or CONSULTANT’s personnel information, along with all other property belonging exclusively to City which is in CONSULTANT’s possession. Publication of the information derived from work 479
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performed or data obtained in connection with services rendered under this AGREEMENT must be approved in writing by City.

Additionally, it is agreed that the Parties intend this to be an AGREEMENT for services and each considers the products and results of the services to be rendered by CONSULTANT hereunder to be work made for hire. CONSULTANT acknowledges and agrees that the work (and all rights therein, including, without limitation, copyright) belongs to and shall be the sole and exclusive property of City without restriction or limitation upon its use or dissemination by City.

Nothing herein shall constitute or be construed to be any representation by CONSULTANT that the work product is suitable in any way for any other project except the one detailed in this Contract. Any reuse by City for another project or project location shall be at City’s sole risk.

Applicable patent rights provisions regarding rights to inventions shall be included in the contracts as appropriate (48 CFR 27 Subpart 27.3 - Patent Rights under Government Contracts for federal-aid contracts).

LOCAL AGENCY may permit copyrighting reports or other agreement products. If copyrights are permitted; the AGREEMENT shall provide that the FHWA shall have the royalty-free nonexclusive and irrevocable right to reproduce, publish, or otherwise use; and to authorize others to use, the work for government purposes.
☒ CLEAN AIR ACT
Criteria: All contracts over $150k
(G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387).

Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

The contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.

1. The contractor agrees to report each violation to the City of West Sacramento and understands and agrees that the City of West Sacramento will, in turn, report each violation as required to assure notification to the State of California, Federal Emergency Management Agency, and the appropriate Environmental Protection Agency Regional Office.

2. The contractor agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal assistance provided by FEMA. ☒ FEDERAL WATER POLLUTION CONTROL ACT
Criteria: All contracts over $150k

1. The contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq.

2. The contractor agrees to report each violation to the City of West Sacramento and understands and agrees that the City of West Sacramento will, in turn, report each 480
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violation as required to assure notification to the State of California, Federal Emergency Management Agency, and the appropriate Environmental Protection Agency Regional Office.

3. The contractor agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal assistance provided by FEMA. ☒ DEBARMENT AND SUSPENSION
Criteria: Over $25k
(H) Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549.

5. This contract is a covered transaction for purposes of 2 C.F.R. pt. 180 and 2 C.F.R. pt. 3000. As such the contractor is required to verify that none of the contractor, its principals (defined at 2 C.F.R. § 180.995), or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. §180.940) or disqualified (defined at 2 C.F.R. § 180.935).

6. The contractor must comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into.

7. This certification is a material representation of fact relied upon by the City of West Sacramento. If it is later determined that the contractor did not comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C, in addition to remedies available to the City of West Sacramento, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The City will insure the Contractor and any lower participants are not debarred by checking the government’s System Award Management (SAM).

8. The bidder or proposer agrees to comply with the requirements of 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions.

The CONSULTANT’s signature affixed herein shall constitute a certification under penalty of perjury under the laws of the State of California, that the CONSULTANT or any person associated therewith in the capacity of owner, partner, director, officer or manager:

1. Is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any federal agency;

2. Has not been suspended, debarred, voluntarily excluded, or determined ineligible by any federal agency within the past three (3) years;
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3. Does not have a proposed debarment pending; and has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past three (3) years.

Any exceptions to this certification must be disclosed to LOCAL AGENCY. Exceptions will not necessarily result in denial of recommendation for award, but will be considered in determining responsibility. Disclosures must indicate the party to whom the exceptions apply, the initiating agency, and the dates of agency action.

Exceptions to the Federal Government excluded parties (https://sam.gov/content/home) maintained by the U.S. General Services Administration are to be determined by FHWA.

ARTICLE XXIX NATIONAL LABOR RELATIONS BOARD CERTIFICATION In accordance with Public Contract Code §10296, CONSULTANT hereby states under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against CONSULTANT within the immediately preceding two-year period, because of CONSULTANT’s failure to comply with an order of a federal court that orders CONSULTANT to comply with an order of the National Labor Relations Board. ☒ BYRD ANTI-LOBBYING AMENDMENT 31 U.S.C. § 1352 (AS AMENDED) Criteria: All contracts require. Any contracts over $100k also require additional certification.
(I) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award.

Contractors who apply or bid for an award of $100,000 or more shall file the required certification (see Appendix A, 44 C.F.R Part 18 – Certification Regarding Lobbying). Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient.

A. The CONSULTANT certifies, to the best of his or her knowledge and belief, that:
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1. No State, Federal, or LOCAL AGENCY appropriated funds have been paid or will be paid, by or on behalf of the CONSULTANT, to any person for influencing or attempting to influence an officer or employee of any local, State, or Federal agency, a Member of the State Legislature or United States Congress, an officer or employee of the Legislature or Congress, or any employee of a Member of the Legislature or Congress in connection with the awarding or making of this AGREEMENT, or with the extension, continuation, renewal, amendment, or modification of this AGREEMENT.

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this AGREEMENT, the CONSULTANT shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.

B. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making orentering into this transaction imposed by 31 U.S.C. §1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than ten thousand dollars ($10,000) and not more than one hundred thousand dollars ($100,000) for each such failure.

C. The CONSULTANT also agrees by signing this document that he or she shall require that the language of this certification be included in all lower tier subagreements, which exceed one hundred thousand dollars ($100,000), and that all such subrecipients shall certify and disclose accordingly.
☒ RECORD RETENTION
Criteria: All contracts
In addition to the reports specified in this Agreement, Consultant shall retain the records required by the applicable provisions of 2 CFR § 200.333, no less than three (3) years after City's final payment to Consultant under this Agreement and provide the City with the reports required pursuant to 2 CFR §§ 200.328 and 200.343, and such other records and reports as the City may reasonably require in the administration of this Agreement. Consultant shall keep all other necessary books and records, including property, personnel, loan documentation and financial records, in connection with the operation and services performed under this Agreement, in accordance with 2 CFR §200.333
For the purpose of determining compliance with Gov. Code §8546.7, the CONSULTANT, Subconsultants, and LOCAL AGENCY shall maintain all books, documents, papers, accounting records, Independent CPA Audited Indirect Cost Rate workpapers, and other evidence pertaining to the performance of the AGREEMENT including, but not limited to, the costs of administering the AGREEMENT. All parties, including the CONSULTANT’s Independent CPA, shall make such workpapers and material available at their respective offices at all reasonable times during the AGREEMENT period and for three (3) years from the date of final payment under the AGREEMENT and records for real property and equipment acquired with federal funds must be retained fro three (3) years after final disposition. LOCAL AGENCY, Caltrans Auditor, FHWA, or any duly authorized representative of the Federal government 483
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having jurisdiction under Federal laws or regulations (including the basis of Federal funding in whole or in part) shall have access to any books, records, and are pertinent to the AGREEMENT for audits, examinations, workpaper review, excerpts, and transactions, and copies thereof shall be furnished if requested without limitation. ☒ NO OBLIGATION BY FEDERAL GOVERNMENT
Criteria: All contracts
The Federal Government is not a party to this contract and is not subject to any obligations or liabilities to the non-Federal entity, Consultant, or any other party pertaining to any matter resulting from the contract.

☐ PROCUREMENT OF RECOVERED MATERIALS
Criteria: All contracts over $10k where work involves the use of materials (J) §200.323 Procurement of recovered materials.

A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines."

1. In the performance of this contract, the Consultant shall make maximum use of products containing recovered materials that are EPA- designated items unless the product cannot be acquired—

2. Competitively within a timeframe providing for compliance with the contract performance schedule;

3. Meeting contract performance requirements; or

4. At a reasonable price.
a. Information about this requirement, along with the list of EPA- designate items, is available at EPA’s Comprehensive Procurement Guidelines web site, https://www.epa.gov/smm/comprehensive- procurement-guideline-cpg-program. ☐ Prohibition on certain telecommunications and video surveillance services or equipment.

Criteria: Contracts related to telecommunications or video surveillance or equipment (K) §200.216 Prohibition on certain telecommunications and video surveillance services or equipment.
(a) Recipients and subrecipients are prohibited from obligating or expending loan or grant funds to:
(1) Procure or obtain;
(2) Extend or renew a contract to procure or obtain; or 484
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(3) Enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Public Law 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). (i) For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).
(ii) Telecommunications or video surveillance services provided by such entities or using such equipment.
(iii) Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.
(b) In implementing the prohibition under Public Law 115-232, section 889, subsection (f), paragraph (1), heads of executive agencies administering loan, grant, or subsidy programs shall prioritize available funding and technical support to assist affected businesses, institutions and organizations as is reasonably necessary for those affected entities to transition from covered communications equipment and services, to procure replacement equipment and services, and to ensure that communications service to users and customers is sustained. (c) See Public Law 115-232, section 889 for additional information. (d) See also §200.471."
☐ Domestic preferences for procurements
Criteria: All contracts over $10k where work involves the use of materials (L) §200.322 Domestic preferences for procurements.
(a) As appropriate and to the extent consistent with law, the non-Federal entity should, to the greatest extent practicable under a Federal award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this section must be included in all subawards including all contracts and purchase orders for work or products under this award.
(b) For purposes of this section:
(1) “Produced in the United States” means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
(2) “Manufactured products” means items and construction materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymer-based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber."

ARTICLE VII COST PRINCIPLES AND ADMINISTRATIVE REQUIREMENTS A. The CONSULTANT agrees the 48CFR 31, Contract Cost Principles and Procedures, shall be used to determine the allowability of individual terms of cost. 485
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B. The CONSULTANT also agrees to comply with Federal procedures in accordance with 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

C. Any costs for which payment has been made to the CONSULTANT that are determined by subsequent audit to be unallowable under 48 CFR 31 or 2 CFR 200 are subject to repayment by the CONSULTANT to LOCAL AGENCY.

D. When a CONSULTANT or Subconsultant is a Non-Profit Organization or an Institution of Higher Education, the Cost Principles for Title 2 CRF 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards shall apply.

ARTICLE IX AUDIT REVIEW PROCEDURES
A. Any dispute concerning a question of fact arising under an interim or post audit of this AGREEMENT that is not disposed of by AGREEMENT, shall be reviewed by LOCAL AGENCY’s Chief Financial Officer.

B. Not later than thirty (30) calendar days after issuance of the final audit report, CONSULTANT may request a review by LOCAL AGENCY’S Chief Financial Officer of unresolved audit issues. The request for review will be submitted in writing.

C. Neither the pendency of a dispute nor its consideration by LOCAL AGENCY will excuse CONSULTANT from full and timely performance, in accordance with the terms of this AGREEMENT.

D. CONSULTANT and subconsultant AGREEMENTs, including cost proposals and indirect Cost Rates (ICR), may be subject to audits or reviews such as, but not limited to, an AGREEMENT audit, an incurred cost audit, an ICR Audit, or a CPA ICR audit work paper review. If selected for audit or review, the AGREEMENT, cost proposal and ICR and related work papers, if applicable, will be reviewed to verify compliance with 48 CFR 31 and other related laws and regulations. In the instances of a CPA ICR audit work paper review it is CONSULTANT’s responsibility to ensure federal, LOCAL AGENCY, or local government officials are allowed full access to the CPA’s work papers including making copies as necessary. The AGREEMENT, cost proposal, and ICR shall be adjusted by CONSULTANT and approved by LOCAL AGENCY Contract Administrator to conform to the audit or review recommendations. CONSULTANT agrees that individual terms of costs identified in the audit report shall be incorporated into the AGREEMENT by this reference if directed by LOCAL AGENCY at its sole discretion.

Refusal by CONSULTANT to incorporate audit or review recommendations, or to ensure that the federal, LOCAL AGENCY or local governments have access to CPA work papers, will be considered a breach of AGREEMENT terms and cause for termination of the AGREEMENT and disallowance of prior reimbursed costs.

E. CONSULTANT’s Cost Proposal may be subject to a CPA ICR Audit Work Paper Review and/or audit by the Independent Office of Audits and Investigations (IOAI). IOAI, at its sole discretion, may review and/or audit and approve the CPA ICR documentation. The Cost Proposal shall be adjusted by the CONSULTANT and approved by the LOCAL AGENCY Contract Administrator to conform to the Work Paper Review recommendations included in the management letter or audit recommendations included 486
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in the audit report. Refusal by the CONSULTANT to incorporate the Work Paper Review recommendations included in the management letter or audit recommendations included in the audit report will be considered a breach of the AGREEMENT terms and cause for termination of the AGREEMENT and disallowance of prior reimbursed costs.

1. During IOAI’s review of the ICR audit work papers created by the CONSULTANT’s independent CPA, IOAI will work with the CPA and/or CONSULTANT toward a resolution of issues that arise during the review. Each party agrees to use its best efforts to resolve any audit disputes in a timely manner. If IOAI identifies significant issues during the review and is unable to issue a cognizant approval letter, LOCAL AGENCY will reimburse the CONSULTANT at an accepted ICR until a FAR (Federal Acquisition Regulation) compliant ICR (e.g. 48 CFR Part 31; GAGAS (Generally Accepted Auditing Standards); CAS (Cost Accounting Standards), if applicable; in accordance with procedures and guidelines of the American Association of State Highways and Transportation Officials (AASHTO) Audit Guide; and other applicable procedures and guidelines) is received and approved by IOAI.

Accepted rates will be as follows:
a. If the proposed rate is less than one hundred fifty percent (150%) - the accepted rate reimbursed will be ninety percent (90%) of the proposed rate. b. If the proposed rate is between one hundred fifty percent (150%) and two hundred percent (200%) - the accepted rate will be eighty-five percent (85%) of the proposed rate.
c. If the proposed rate is greater than two hundred percent (200%) - the accepted rate will be seventy-five percent (75%) of the proposed rate.

2. If IOAI is unable to issue a cognizant letter per paragraph E.1. above, IOAI may require CONSULTANT to submit a revised independent CPA-audited ICR and audit report within three (3) months of the effective date of the management letter. IOAI will then have up to six (6) months to review the CONSULTANT’s and/or the independent CPA’s revisions.

3. If the CONSULTANT fails to comply with the provisions of this paragraph E, or if IOAI is still unable to issue a cognizant approval letter after the revised independent CPA audited ICR is submitted, overhead cost reimbursement will be limited to the accepted ICR that was established upon initial rejection of the ICR and set forth in paragraph E.1. above for all rendered services. In this event, this accepted ICR will become the actual and final ICR for reimbursement purposes under this AGREEMENT.

4. CONSULTANT may submit to LOCAL AGENCY final invoice only when all of the following items have occurred: (1) IOAI accepts or adjusts the original or revised independent CPA audited ICR; (2) all work under this AGREEMENT has been completed to the satisfaction of LOCAL AGENCY; and, (3) IOAI has issued its final ICR review letter. The CONSULTANT MUST SUBMIT ITS FINAL INVOICE TO LOCAL AGENCY no later than sixty (60) calendar days after occurrence of the last of these items. The accepted ICR will apply to this AGREEMENT and all 487
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other agreements executed between LOCAL AGENCY and the CONSULTANT, either as a prime or subconsultant, with the same fiscal period ICR.

ARTICLE XI EQUIPMENT PURCHASE AND OTHER CAPITAL EXPENDITURES A. Prior authorization in writing by LOCAL AGENCY’s Contract Administrator shall be required before CONSULTANT enters into any unbudgeted purchase order, or subcontract exceeding five thousand dollars ($5,000) for supplies, equipment, or CONSULTANT services. CONSULTANT shall provide an evaluation of the necessity or desirability of incurring such costs. For purchase of any item, service, or consulting work not covered in CONSULTANT’s approved.

B. Cost Proposal and exceeding five thousand dollars ($5,000), with prior authorization by LOCAL AGENCY’s Contract Administrator, three competitive quotations must be submitted with the request, or the absence of proposal must be adequately justified.

C. Any equipment purchased with funds provided under the terms of this AGREEMENT is subject to the following:

1. CONSULTANT shall maintain an inventory of all nonexpendable property.

Nonexpendable property is defined as having a useful life of at least two years and an acquisition cost of five thousand dollars ($5,000) or more. If the purchased equipment needs replacement and is sold or traded in, LOCAL AGENCY shall receive a proper refund or credit at the conclusion of the AGREEMENT, or if the AGREEMENT is terminated, CONSULTANT may either keep the equipment and credit LOCAL AGENCY in an amount equal to its fair market value, or sell such equipment at the best price obtainable at a public or private sale, in accordance with established LOCAL AGENCY procedures; and credit LOCAL AGENCY in an amount equal to the sales price. If CONSULTANT elects to keep the equipment, fair market value shall be determined at CONSULTANT’s expense, on the basis of a competent independent appraisal of such equipment. Appraisals shall be obtained from an appraiser mutually agreeable to by LOCAL AGENCY and CONSULTANT, if it is determined to sell the equipment, the terms and conditions of such sale must be approved in advance by LOCAL AGENCY.

2. Regulation 2 CFR 200 requires a credit to Federal funds when participating equipment with a fair market value greater than five thousand dollars ($5,000) is credited to the project.

ARTICLE XVIII DISADVANTAGED BUSINESS ENTERPRISES (DBE) PARTICIPATION A. CONSULTANT, subrecipient (LOCAL AGENCY), or subconsultant shall take necessary and reasonable steps to ensure that DBEs have opportunities to participate in the contract (49 CFR 26). To ensure equal participation of DBEs provided in 49 CFR 26.5, the LOCAL AGENCY shows a contract goal for DBEs. CONSULTANT shall make work 488
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available to DBEs and select work parts consistent with available DBE subconsultants and suppliers.

CONSULTANT shall meet the DBE goal shown elsewhere in these special provisions or demonstrate that they made adequate Good Faith Efforts (GFE) to meet this goal. It is CONSULTANT’s responsibility to verify at date of proposal opening that the DBE firm is certified as a DBE by using the California Unified Certification Program (CUCP) database and possesses the most specific available North American Industry Classification System (NAICS) codes and work code applicable to the type of work the firm will perform on the contract. Additionally, the CONSULTANT is responsible to document the verification record by printing out the CUCP data for each DBE firm. A list of DBEs certified by the CUCP can be found at https://dot.ca.gov/programs/civilrights/dbe-search.

All DBE participation will count toward the California Department of Transportation’s federally mandated statewide overall DBE goal. Credit for materials or supplies CONSULTANT purchases from DBEs counts towards the goal in the following manner:
• 100 percent counts if the materials or supplies are obtained from a DBE manufacturer.
• 60 percent counts if the materials or supplies are purchased from a DBE regular dealer.
• Only fees, commissions, and charges for assistance in the procurement and delivery of materials or supplies count if obtained from a DBE that is neither a manufacturer nor regular dealer. 49 CFR 26.55 defines "manufacturer" and "regular dealer." This AGREEMENT is subject to 49 CFR 26 entitled “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs”.

CONSULTANTs who enter into a federally-funded agreement will assist the LOCAL AGENCY in a good faith effort to achieve California's statewide overall DBE goal.

B. The goal for DBE participation for this AGREEMENT is_________%. Participation by DBE CONSULTANT or subconsultants shall be in accordance with information contained in Exhibit 10-O2: Consultant Contract DBE Commitment attached hereto and incorporated as part of the AGREEMENT. If a DBE subconsultant is unable to perform, CONSULTANT must make a good faith effort to replace him/her with another DBE subconsultant, if the goal is not otherwise met.

C. CONSULTANT can meet the DBE participation goal by either documenting commitments to DBEs to meet the AGREEMENT goal, or by documenting adequate good faith efforts to meet the AGREEMENT goal. An adequate good faith effort means that the CONSULTANT must show that it took all necessary and reasonable steps to achieve a DBE goal that, by their scope, intensity, and appropriateness to the objective, could reasonably be expected to meet the DBE goal. If CONSULTANT has not met the DBE goal, complete and submit Exhibit 15-H: Proposer/Contractor Good Faith Efforts to document efforts to meet the goal. Refer to 49 CFR 26 for guidance regarding evaluation of good faith efforts to meet the DBE goal.

D. Contract Assurance
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Under 49 CFR 26.13(b): CONSULTANT, subrecipient or subconsultant shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. CONSULTANT shall carry out applicable requirements of 49 CFR 26 in the award and administration of federal-aid contracts. Failure by the CONSULTANT to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate, which may include, but is not limited to:
(1) Withholding monthly progress payments;
(2) Assessing sanctions;
(3) Liquidated damages; and/or
(4) Disqualifying CONSULTANT from future proposing as non-responsible E. Termination and Replacement of DBE Subconsultants
CONSULTANT shall utilize the specific DBEs listed to perform the work and supply the materials for which each is listed unless CONSULTANT or DBE subconsultant obtains the LOCAL AGENCY’s written consent. CONSULTANT shall not terminate or replace a listed DBE for convenience and perform the work with their own forces or obtain materials from other sources without authorization from the LOCAL AGENCY. Unless the LOCAL AGENCY’s consent is provided, the CONSULTANT shall not be entitled to any payment for work or material unless it is performed or supplied by the listed DBE on the Exhibit 10-02: Consultant Contract DBE Commitment form.

Termination of DBE Subconsultants
After execution of the AGREEMENT, termination of a DBE may be allowed for the following, but not limited to, justifiable reasons with prior written authorization from the LOCAL AGENCY:

1. Listed DBE fails or refuses to execute a written contract based on plans and specifications for the project.

2. The LOCAL AGENCY stipulated that a bond is a condition of executing the subcontract and the listed DBE fails to meet the LOCAL AGENCY’s bond requirements.

3. Work requires a consultant's license and listed DBE does not have a valid license under Contractors License Law.

4. Listed DBE fails or refuses to perform the work or furnish the listed materials (failing or refusing to perform is not an allowable reason to remove a DBE if the failure or refusal is a result of bad faith or discrimination).

5. Listed DBE's work is unsatisfactory and not in compliance with the contract.

6. Listed DBE is ineligible to work on the project because of suspension or debarment.

7. Listed DBE becomes bankrupt or insolvent or exhibits credit unworthiness.

8. Listed DBE voluntarily withdraws with written notice from the Contract.

9. Listed DBE is ineligible to receive credit for the type of work required.

10. Listed DBE owner dies or becomes disabled resulting in the inability to perform the work on the Contract.

11. The LOCAL AGENCY determines other documented good cause.

CONSULTANT must use the following procedures to request the termination of a DBE or portion of a DBE’s work:
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1. Send a written notice to the DBE of the CONSULTANT’s intent to use other forces or material sources and include one or more justifiable reasons listed above. Simultaneously send a copy of this written notice to the LOCAL AGENCY.

The written notice to the DBE must request they provide any response within five (5) business days to both the CONSULTANT and the LOCAL AGENCY by either acknowledging their agreement or documenting their reasoning as to why the use of other forces or sources of materials should not occur.

2. If the DBE does not respond within five (5) business days, CONSULTANT may move forward with the request as if the DBE had agreed to CONSULTANT’s written notice.

3. Submit CONSULTANT’s DBE termination request by written letter to the LOCAL AGENCY and include:
• One or more above listed justifiable reasons along with supporting documentation.
• CONSULTANT’s written notice to the DBE regarding the request, including proof of transmission and tracking documentation of CONSULTANT’s written notice
• The DBE's response to CONSULTANT’s written notice, if received. If a written response was not provided, provide a statement to that effect.

The LOCAL AGENCY shall respond in writing to CONSULTANT’s DBE termination request within five (5) business days.

Replacement of DBE Subconsultants
After receiving the LOCAL AGENCY’s written authorization of DBE termination request, CONSULTANT must obtain the LOCAL AGENCY’s written agreement for DBE replacement.

CONSULTANT must find or demonstrate GFEs to find qualified DBE replacement firms to perform the work to the extent needed to meet the DBE commitment. The following procedures shall be followed to request authorization to replace a DBE firm:

1. Submit a request to replace a DBE with other forces or material sources in writing to the LOCAL AGENCY which must include:
a. Description of remaining uncommitted work item made available for replacement DBE solicitation and participation.
b. The proposed DBE replacement firm's business information, the work they have agreed to perform, and the following:
• Description of scope of work and cost proposal
• Proposed subcontract agreement and written confirmation of agreement to perform on the Contract
• Revised Exhibit 10-O2: Consultant Contract DBE Commitment 491
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2. If CONSULTANT has not identified a DBE replacement firm, submits documentation of CONSULTANT’s GFEs to use DBE replacement firms within seven (7) days of LOCAL AGENCY's authorization to terminate the DBE. CONSULTANT may request the LOCAL AGENCY's approval to extend this submittal period to a total of 14 days. Submit documentation of actions taken to find a DBE replacement firm, such as:
• Search results of certified DBEs available to perform the original DBE work identified and or other work CONSULTANT had intended to self-perform, to the extent needed to meet DBE commitment
• Solicitations of DBEs for performance of work identified • Correspondence with interested DBEs that may have included contract details and requirements
• Negotiation efforts with DBEs that reflect why an agreement was not reached • If a DBE's quote was rejected, provide reasoning for the rejection, such as why the DBE was unqualified for the work, or why the price quote was unreasonable or excessive
• Copies of each DBE's and non-DBE's price quotes for work identified, as the LOCAL AGENCY may contact the firms to verify solicitation efforts and determine if the DBE quotes are substantially higher
• Additional documentation that supports CONSULTANT’s GFE The LOCAL AGENCY shall respond in writing to CONSULTANT’s DBE replacement request within five (5) business days.

F. Commitment and Utilization
The LOCAL AGENCY’s DBE program must include a monitoring and enforcement mechanism to ensure that DBE commitments reconcile to DBE utilization.

The LOCAL AGENCY shall request CONSULTANT to:

1. Notify the LOCAL AGENCY’s contract administrator or designated representative of any changes to its anticipated DBE participation

2. Provide this notification before starting the affected work

3. Maintain records including:
• Name and business address of each 1st -tier subconsultant • Name and business address of each DBE subconsultant, DBE vendor, and DBE trucking company, regardless of tier
• Date of payment and total amount paid to each business (see Exhibit 9-F:

Monthly Disadvantaged Business Enterprise Payment)
If CONSULTANT is a DBE CONSULTANT, they shall include the date of work performed by their own forces and the corresponding value of the work.

If a DBE is decertified before completing its work, the DBE must notify CONSULTANT in writing of the decertification date. If a business becomes a certified DBE before completing its work, the business must notify CONSULTANT in writing of the certification date. CONSULTANT shall submit the notifications to the LOCAL AGENCY. On work completion, CONSULTANT shall complete Exhibit 17-O: Disadvantaged Business Enterprises (DBE) Certification Status Change and submit the form to the LOCAL AGENCY within 30 days of contract acceptance.

Upon work completion, CONSULTANT shall complete Exhibit 17-F: Final Report – Utilization of Disadvantaged Business Enterprises (DBE), First-Tier Subcontractors and submit it to the LOCAL AGENCY within 90 days of contract acceptance. The LOCAL 492
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AGENCY will withhold $10,000 until the form is submitted. The LOCAL AGENCY will release the withhold upon submission of the completed form.

In the LOCAL AGENCY’s reports of DBE participation to Caltrans, the LOCAL AGENCY must display both commitments and attainments.

G. Commercially Useful Function
DBEs must perform a commercially useful function (CUF) under 49 CFR 26.55 when performing work or supplying materials listed on the DBE Commitment form. The DBE value of work will only count toward the DBE commitment if the DBE performs a CUF. A DBE performs a CUF when it is responsible for execution of the work of the AGREEMENT and is carrying out its responsibilities by actually performing, managing, and supervising the work involved. To perform a CUF, the DBE must also be responsible, with respect to materials and supplies used on the AGREEMENT, for negotiating price, determining quality and quantity, ordering the material and installing (where applicable), and paying for the material itself.

CONSULTANT must perform CUF evaluation for each DBE working on a federal-aid contract, with or without a DBE goal. Perform a CUF evaluation at the beginning of the DBE’s work and continue to monitor the performance of CUF for the duration of the project.

CONSULTANT must provide written notification to the LOCAL AGENCY at least 15 days in advance of each DBE's initial performance of work or supplying materials for the Contract. The notification must include the DBE's name, work the DBE will perform on the contract, and the location, date, and time of where their work will take place.

Within 10 days of a DBE initially performing work or supplying materials on the Contract, CONSULTANT shall submit to the LPA the initial evaluation and validation of DBE performance of a CUF using the LAPM 9-J: Disadvantaged Business Enterprise Commercially Useful Function Evaluation. Include the following information with the submittal:
• Subcontract agreement with the DBE
• Purchase orders
• Bills of lading
• Invoices
• Proof of payment
CONSULTANT must monitor all DBE’s performance of CUF by conducting quarterly evaluations and validations throughout their duration of work on the Contract using the LAPM 9-J: DBE Commercially Useful Function Evaluation. CONSULTANT must submit to the LOCAL AGENCY these quarterly evaluations and validations by the 5th of the month for the previous three months of work.

CONSULTANT must notify the LOCAL AGENCY immediately if they believe the DBE may not be performing a CUF.

The LOCAL AGENCY will verify DBEs performance of CUF by reviewing the initial and quarterly submissions of LAPM 9-J: DBE Commercially Useful Function Evaluation, submitted supporting information, field observations, and through any additional LOCAL AGENCY evaluations. The LOCAL AGENCY must evaluate DBEs and their CUF performance throughout the duration of a Contract. The LOCAL AGENCY will provide written notice to the CONSULTANT and the DBE at least two (2) business days prior to any evaluation. The CONSULTANT and the DBE must participate in the evaluation.

Upon completing the evaluation, the LOCAL AGENCY must share the evaluation results with the CONSULTANT and the DBE. An evaluation could include items that must be 493
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remedied upon receipt. If the LOCAL AGENCY determines the DBE is not performing a CUF, the CONSULTANT must suspend performance of the noncompliant work.

CONSULTANT and DBEs must submit any additional CUF related records and documents within five (5) business days of LOCAL AGENCY’s request such as:
• Proof of ownership or lease and rental agreements for equipment • Tax records
• Employee rosters
• Certified payroll records
• Inventory rosters
Failure to submit required DBE Commercially Useful Function Evaluation forms or requested records and documents can result in withholding of payment for the value of work completed by the DBE.

If CONSULTANT and/or the LOCAL AGENCY determine that a listed DBE is not performing a CUF in performance of their DBE committed work, CONSULTANT must immediately suspend performance of the noncompliant portion of the work. LOCAL AGENCY may deny payment for the noncompliant portion of the work. LOCAL AGENCY will ask the CONSULTANT to submit a corrective action plan (CAP) to the LOCAL AGENGY within five (5) days of the noncompliant CUF determination. The CAP must identify how the CONSULTANT will correct the noncompliance findings for the remaining portion of the DBE's work. LOCAL AGENCY has five (5) days to review the CAP in conjunction with the CONSULTANT’s review. The CONSULTANT must implement the CAP within five (5) days of the LOCAL AGENCY's approval. The LOCAL AGENCY will then authorize the prior noncompliant portion of work for the DBE's committed work.

If corrective actions cannot be accomplished to ensure the DBE performs a commercially useful function on the Contract, CONSULTANT may have good cause to request termination of the DBE.

H. A DBE does not perform a CUF if its role is limited to that of an extra participant in a transaction, AGREEMENT, or project through which funds are passed in order to obtain the appearance of DBE participation. In determining whether a DBE is such an extra participant, examine similar transactions, particularly those in which DBEs do not participate.

I. If a DBE does not perform or exercise responsibility for at least thirty percent (30%) of the total cost of its AGREEMENT with its own work force, or the DBE subcontracts a greater portion of the work of the AGREEMENT than would be expected on the basis of normal industry practice for the type of work involved, it will be presumed that it is not performing a CUF.

J. CONSULTANT shall maintain records of materials purchased or supplied from all subcontracts entered into with certified DBEs. The records shall show the name and business address of each DBE or vendor and the total dollar amount actually paid each DBE or vendor, regardless of tier. The records shall show the date of payment and the total dollar figure paid to all firms. DBE CONSULTANT’s shall also show the date of work performed by their own forces along with the corresponding dollar value of the work.

K. If a DBE subconsultant is decertified during the life of the AGREEMENT, the decertified subconsultant shall notify CONSULTANT in writing with the date of decertification. If a 494
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subconsultant becomes a certified DBE during the life of the AGREEMENT, the subconsultant shall notify CONSULTANT in writing with the date of certification. Any changes should be reported to LOCAL AGENCY’s Contract Administrator within thirty (30) calendar days.

L. For projects awarded on or after March 1, 2020, but before September 1, 2023: after submitting an invoice for reimbursement that includes a payment to a DBE, but no later than the 10th of the following month, the prime contractor/consultant must complete and email Exhibit 9-F: Disadvantaged Business Enterprise Running Tally of Payments to [email protected] with a copy to local administering agencies.

For projects awarded on or after September 1, 2023: Exhibit 9-F is no longer required.

Instead, by the 15th of the month following the month of any payment(s), the CONSULTANT must now submit Exhibit 9-P to the LOCAL AGENCY administering the contract. If the CONSULTANT does not make any payments to subconsultants, supplier(s), and/or manufacturers they must report “no payments were made to subs this month” and write this visibly and legibly on Exhibit 9-P.

M. Any subcontract entered into as a result of this AGREEMENT shall contain all of the provisions of this section.

ARTICLE XXIII DISPUTES
Prior to either party commencing any legal action under this AGREEMENT, the parties agree to try in good faith, to settle any dispute amicably between them. If a dispute has not been settled after forty-five (45) days of good-faith negotiations and as may be otherwise provided herein, then either party may commence legal action against the other. [Choose either Option 1 or Option 2]
[Option 1 - Use paragraphs A through C below for all AGREEMENTs without PS&E submittal] A. Any dispute, other than audit, concerning a question of fact arising under this AGREEMENT that is not disposed of by agreement shall be decided by a committee consisting of LOCAL AGENCY’s Contract Administrator and (Insert Department Head or Official), who may consider written or verbal information submitted by CONSULTANT.

B. Not later than thirty (30) calendar days after completion of all work under the AGREEMENT, CONSULTANT may request review by LOCAL AGENCY Governing Board of unresolved claims or disputes, other than audit. The request for review will be submitted in writing.

C. Neither the pendency of a dispute, nor its consideration by the committee will excuse CONSULTANT from full and timely performance in accordance with the terms of this AGREEMENT.
[Option 2 - Replace Paragraph B, above, with the following for AGREEMENTs requiring the submission of PS&E]
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B. Not later than thirty (30) calendar days after completion of all deliverables necessary to complete the plans, specifications and estimate, CONSULTANT may request review by LOCAL AGENCY Governing Board of unresolved claims or disputes, other than audit.

The request for review will be submitted in writing.

ARTICLE XXIV INSPECTION OF WORK
CONSULTANT and any subconsultant shall permit LOCAL AGENCY, the State, and the FHWA if federal participating funds are used in this AGREEMENT; to review and inspect the project activities and files at all reasonable times during the performance period of this AGREEMENT

ARTICLE XXXII TITLE VI ASSURANCES
APPENDICES A - E of the TITLE VI ASSURANCES
[The U.S. Department of Transportation Order No.1050.2A requires all federal-aid Department of Transportation contracts between an agency and a consultant to contain Appendices A and E of the Title VI Assurances. Include Appendices B, C, and D if appliable as shown below. In addition, the consultant must include the Title VI Assurances Appendices A and E, and if applicable Appendices B, C, and D in all subcontracts to perform work under the contract. The clauses of Appendix B of this Assurance shall be included as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a LOCAL AGENCY.

The clauses set forth in Appendix C and Appendix D of this Assurance shall be included as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the LOCAL AGENCY with other parties:
a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.]

APPENDIX A
During the performance of this Agreement, the contractor, for itself, its assignees and successors in interest (hereinafter collectively referred to as CONSULTANT) agrees as follows:

Compliance with Regulations: CONSULTANT shall comply with the regulations relative to nondiscrimination in federally assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter 496
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referred to as the REGULATIONS), which are herein incorporated by reference and made a part of this agreement.

Nondiscrimination: CONSULTANT, with regard to the work performed by it during the AGREEMENT, shall not discriminate on the grounds of race, color, sex, national origin, religion, age, or disability in the selection and retention of sub-applicants, including procurements of materials and leases of equipment. CONSULTANT shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the agreement covers a program set forth in Appendix B of the Regulations.

Solicitations for Sub-agreements, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by CONSULTANT for work to be performed under a Sub- agreement, including procurements of materials or leases of equipment, each potential sub-applicant or supplier shall be notified by CONSULTANT of the CONSULTANT’S obligations under this Agreement and the Regulations relative to nondiscrimination on the grounds of race, color, or national origin.

Information and Reports: CONSULTANT shall provide all information and reports required by the Regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the recipient or FHWA to be pertinent to ascertain compliance with such Regulations or directives.

Where any information required of CONSULTANT is in the exclusive possession of another who fails or refuses to furnish this information, CONSULTANT shall so certify to the recipient or FHWA as appropriate, and shall set forth what efforts CONSULTANT has made to obtain the information.

Sanctions for Noncompliance: In the event of CONSULTANT’s noncompliance with the nondiscrimination provisions of this agreement, the recipient shall impose such agreement sanctions as it or the FHWA may determine to be appropriate, including, but not limited to:
i.withholding of payments to CONSULTANT under the Agreement within a reasonable period of time, not to exceed 90 days; and/or
ii. cancellation, termination or suspension of the Agreement, in whole or in part Incorporation of Provisions: CONSULTANT shall include the provisions of paragraphs (1) through (6) in every sub-agreement, including procurements of materials and leases of equipment, unless exempt by the Regulations, or directives issued pursuant thereto.

CONSULTANT shall take such action with respect to any sub-agreement or procurement as the recipient or FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance, provided, however, that, in the event CONSULTANT becomes involved in, or is threatened with, litigation with a sub-applicant or supplier as a result of such direction, CONSULTANT may request the recipient enter into such litigation to protect the interests of the State, and, in addition, CONSULTANT may request the United States to enter into such litigation to protect the interests of the United States.

APPENDIX B

CLAUSES FOR DEEDS TRANSFERRING UNITED STATES PROPERTY
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The following clauses will be included in deeds effecting or recording the transfer of real property, structures, or improvements thereon, or granting interest therein from the United States pursuant to the provisions of Assurance 4:

NOW THEREFORE, the U.S. Department of Transportation as authorized by law and upon the condition that the recipient will accept title to the lands and maintain the project constructed hereon in accordance with Title 23 U.S.C., the regulations for the administration of the preceding statute, and the policies and procedures prescribed by the FHWA of the U.S.

Department of Transportation in accordance and in compliance with all requirements imposed by Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S.

Department of Transportation pertaining to and effectuating the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252; 42 U.S.C. § 2000d to 2000d-4), does hereby remise, release, quitclaim and convey unto the recipient all the right, title and interest of the U.S. Department of Transportation in and to said lands described in Exhibit A attached hereto and made a part hereof.
(HABENDUM CLAUSE)
TO HAVE AND TO HOLD said lands and interests therein unto the recipient and its successors forever, subject, however, to the covenants, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or structures are used for a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits and will be binding on the recipient, its successors and assigns. The recipient, in consideration of the conveyance of said lands and interest in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns, that (1) no person will on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed [,] [and]* (2) that the recipient will use the lands and interests in lands and interest in lands so conveyed, in compliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation, Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations and Acts may be amended [, and (3) that in the event of breach of any of the above-mentioned non-discrimination conditions, the Department will have a right to enter or re-enter said lands and facilities on said lands, and that above described land and facilities will thereon revert to and vest in and become the absolute property of the U.S. Department of Transportation and its assigns as such interest existed prior to this instruction].* (*Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to make clear the purpose of Title VI.)

APPENDIX C

CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER THE

ACTIVITY, FACILITY, OR PROGRAM
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The following clauses will be included in deeds, licenses, leases, permits, or similar instruments entered into by the recipient pursuant to the provisions of Assurance 7(a):

A. The (grantee, lessee, permittee, etc. as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree [in the case of deeds and leases add “as a covenant running with the land”] that:

1. In the event facilities are constructed, maintained, or otherwise operated on the property described in this (deed, license, lease, permit, etc.) for a purpose for which a U.S. Department of Transportation activity, facility, or program is extended or for another purpose involving the provision of similar services or benefits, the (grantee, licensee, lessee, permittee, etc.) will maintain and operate such facilities and services in compliance with all requirements imposed by the Acts and Regulations(as may be amended) such that no person on the grounds of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities.

B. With respect to licenses, leases, permits, etc., in the event of breach of any of the above Non-discrimination covenants, the recipient will have the right to terminate the (lease, license, permit, etc.) and to enter, re-enter, and repossess said lands and facilities thereon, and hold the same as if the (lease, license, permit, etc.) had never been made or issued.*
C. With respect to a deed, in the event of breach of any of the above Non-discrimination covenants, the recipient will have the right to enter or re-enter the lands and facilities thereon, and the above described lands and facilities will there upon revert to and vest in and become the absolute property of the recipient and its assigns.* (*Reverter clause and related language to be used only when it is determined that such a clause is necessary to make clear the purpose of Title VI.)

APPENDIX D

CLAUSES FOR CONSTRUCTION/USE/ACCESS TO REAL PROPERTY ACQUIRED UNDER

THE ACTIVITY, FACILITY OR PROGRAM
The following clauses will be included in deeds, licenses, permits, or similar instruments/agreements entered into by the recipient pursuant to the provisions of Assurance 7(b):

A. The (grantee, licensee, permittee, etc., as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest ,and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds and leases add, “as a covenant running with the land”) that (1) no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on over, or under such land, and the furnishings of services thereon, no person on the ground of race, color, or national origin, will be 499
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excluded from participation in, denied the benefits or, or otherwise be subjected to discrimination, (3) that the (grantee, licensee, lessee, permittee, etc.) will use the premises in compliance with all other requirements imposed by or pursuant to the Acts and Regulations, as amended, set forth in this Assurance.

B. With respect to (licenses, leases, permits, etc.) in the event of breach of any of the above of the above Non-discrimination covenants, the recipient will have the right to terminate the (license, permits, etc., as appropriate) and to enter or re-enter and repossess said land and the facilities thereon, and hold the same as if said (license, permit, etc., as appropriate) had never been made or issued.* C. With respect to deeds, in the event of breach of any of the above Nondiscrimination covenants, the recipient will there upon revert to and vest in and become the absolute property of the recipient and its assigns.

APPENDIX E
During the performance of this contract, the CONSULTANT, for itself, its assignees, and successors in interest (hereinafter referred to as the “CONSULTANT”) agrees to comply with the following non-discrimination statutes and authorities, including, but not limited to:

Pertinent Non-Discrimination Authorities:
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21. • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), prohibits discrimination on the basis of sex;
• Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CR Part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), prohibits discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982, (49 U.S.C. § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not);
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• Titles II and III of the Americans with Disabilities Act, which prohibit discrimination of the basis of disability in the operation of public entities, public and private transportation systems, place public accommodation, and certain testing entities (42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation regulations 49 C.F.R. parts 37 and 38;
• The Federal Aviation Administration’s Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations;
• Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of Limited English Proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); • Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C.1681 et seq).
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CITY COUNCIL AGENDA REPORT
MEETING DATE: August 21, 2024 ITEM # 9
SUBJECT:

CONSIDERATION OF RESOLUTION 24-85 APPROVING THE CITY OF WEST SACRAMENTO ENHANCED INFRASTRUCTURE FINANCING DISTRICT NO. 1 DEBT

MANAGEMENT AND BUDGET POLICIES
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Mark Polhemus, Community Investment Manager
Economic Development and Housing Department
ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [X] Action

OBJECTIVE
The objective of this report is to obtain Council approval of the City of West Sacramento Enhanced Infrastructure Financing District No. 1 (“EIFD” or “District”) debt management and budget policies.

RECOMMENDED ACTION
Staff respectfully recommends that the Council adopt Resolution 24-85 (Attachment 1) approving the Debt Management Policy and Budget Policy for the EIFD.

BACKGROUND
The City of West Sacramento EIFD No. 1 was established on June 28, 2017, by the City of West Sacramento EIFD No. 1 PFA pursuant to California Government Code sections 53398.50 to 53398.88 (EIFD Law). EIFD No. 1 was formed to continue the City’s efforts to transition many areas from heavy industrial use to mixed-use destinations that activate and celebrate the City’s waterfront, to enhance the City’s transportation network, and enhance the quality of public facilities for residents, businesses, and visitors.

EIFD No. 1 is eligible to receive up to 100 percent of the City’s property tax growth over the base year (fiscal year 2016-2017) within the District’s boundaries, excluding any property tax increment generated from within the Bridge District Infrastructure Financing District No. 1 until fiscal year 2043-2044. Other than amounts that are pledged to pay debt service on bonds issued by the District, the City Council has the authority to direct tax increment on an annual basis, whereas these funds may be appropriated to the EIFD Fund or other City funds.

Upon the formation of EIFD No. 1, the PFA Board and City Council agreed that revenues accruing in the EIFD Fund shall not be appropriated until both the City Council and the PFA Board adopt a Budget Policy. A draft Budget Policy was shared with both the City Council and the PFA Board in early 2020, but due to shifting priorities resulting from the COVID-19 pandemic and staffing changes in the Economic Development and Housing Department, the department responsible for the development and oversight of EIFD-related policies, the final adoption of the Budget Policy was delayed.

While the EIFD Fund has been accruing tax increment and interest revenues, these funds could not be expended without a Budget Policy adopted by the City Council and PFA Board in place. In July 2022, as part of the City’s midterm budget process, the City Council exercised its authority to direct tax increment to Measure G to enable the City to fund projects of communitywide significance until an EIFD No. 1 Budget Policy was adopted. Since then, and in anticipation of the City’s first EIFD No. 1 bond issuance, staff has worked to develop an EIFD No. 1 revised Budget Policy (Attachment 1 – Exhibit A). The adoption of both a Debt Management Policy and a Budget Policy allows revenues currently in the EIFD Fund (approximately $6.4 million) to be expended and enables the PFA Board to consider directing staff to issue EIFD bonds to finance improvements in EIFD area.

ANALYSIS
Consistent with the EIFD Law, EIFD revenues are eligible to fund or finance projects of communitywide significance that provide benefits to the District or the surrounding community. The EIFD No. 1 Infrastructure Financing Plan (“IFP”), the District’s formation document, indicates that EIFD revenues will fund projects that advance the City’s current and future anticipated adopted General Plan, specific plans, facilities master plans, capital projects, development agreements, development projects, and related planning and economic development documents (“Planning Documents”).
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EIFD No. 1 Goals and Eligible Improvements
The IFP includes the goals and community investment principles established in the Council approved Community Investment Action Plan (“CIAP”). As such, EIFD No. 1’s investments in infrastructure, community and economic development activities are intended to result in private investment to improve the local economy, create new revenue for the City, and enhance quality of life. As stated in the IFP, the District’s goals include:
 Assisting with the infrastructure investment gap, by allocating tax increment to provide a stable source of financing for the City’s Capital Improvement Plan (“CIP”), to strategic infrastructure projects, and to other eligible EIFD No. 1 uses.
 Provide a stable source of revenue for capital investment.  Leverage private investment.
 Support land assembly and environmental cleanup.
 Leverage outside funds, such as federal and state grants.  Use in conjunction with other financing district revenues, such as Community Facility Districts and Benefit Assessment Districts.
 Support adaptive reuse and creative reuse of existing real estate assets.  Induce private investment where it would otherwise not occur.  Support projects with a community-wide or regional benefit.

The IFP identifies a list of facilities eligible for District investment at the time the IFP was approved in 2017 (Attachment 2). Since the adoption of the EIFD Law in 2014, the State has proposed and adopted changes to the EIFD Law that increase the allowable uses of EIFD funds. Through the ongoing implementation of EIFD No. 1, staff can amend the IFP as the EIFD Law continues to evolve and as the City updates its Planning Documents.

Resolution 24-85 will provide the City with flexibility to prioritize projects that best accomplish the goals listed above.

EIFD No. 1 Revenue Allocation
The EIFD Law allows for a participating agency to specify the portion of property tax increment to be dedicated to the EIFD Fund in any given year. However, should EIFD No. 1 be used to issue tax increment bonds, there will be sufficient debt service coverage appropriated to the EIFD Fund to repay the bonds. The policies approved by Resolution 24-85 maximize investment opportunities and ensure the City is flexible in its use of EIFD revenues. As part of the design of the EIFD’s financing structure, Resolution 24-85 also adds to the Budget Policy a contingency declaration provision and an irrevocable transfer provision for tax increment revenues used for debt service. The Budget Policy proposes EIFD tax-increment revenues be directed to the EIFD Fund to pay for annual debt service and coverage of future EIFD bond issuances and administrative activities related to District implementation (e.g., auditing, annual reporting, bond and legal counsel). The remaining tax increment revenues will be directed to the City’s Community Investment Fund (Measure G) to enable the City to efficiently finance communitywide significant improvements to support growth and quality of life enhancements.

Improvements to be funded with EIFD bond proceeds will be recommended by the City Council from those approved in the IFP and then considered by the EIFD PFA for ratification. Improvements funded with the City’s Measure G revenues will be considered by the City Council through the City’s Biennial Budget process and prioritized using the existing Community Investment Fund evaluation criteria.

Debt Management Policy
As part of this action, staff is recommending the Council adopt the revisions to the City’s Debt Management Policy to include provisions related to tax increment financing districts. The existing Debt Management Policy and the policy including proposed revisions are included as Attachment 1 – Exhibit A.

Environmental Considerations
The Budget Policy approval is not a project that is subject to CEQA because it is not an activity that may cause either a direct or reasonably foreseeable indirect physical change in the environment. (Pub. Resources Code, § 21065; CEQA Guidelines §§ 15060(c), 15378(a).)
Commission Recommendation
Staff delivered presentations and provided EIFD No. 1 Draft Budget Policy recommendations for the Council and PFA Board in early 2020. Council and the PFA Board recommended minor modifications to the Budget Policy presented at that time related to fee reduction measures for residential projects which have since been addressed through the City’s recently expanded Urban Infill Fee Reduction Program. This revised Budget Policy reflects the focus to use EIFD No. 1 revenues toward impactful projects to implement the City’s General Plan 503
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and other Planning Documents in a meaningful way while being adaptable to ongoing EIFD Law changes impacting eligible uses. Commission review is not applicable.

Strategic Plan Integration
This item is directly related to multiple current and past Strategic Plan items, including the following:
 Fiscal Strategy: Sales Tax Measure For Core Services & Infrastructure Bond (2024)  EIFD Policies/Development Tools (2020, 2021)
 EIFD Implementation (2016, 2017)
Furthermore, the adoption of Resolution 24-85 will enable the City to use EIFD No. 1 to finance communitywide significant projects, many of which are on current and past Strategic Plans.

Alternatives
Staff’s recommendation is approval of Resolution 24-85 to establish EIFD Debt Management and Budget policies to enable the City to evaluate and pursue issuance of EIFD bonds to finance projects of communitywide significance that are included in the IFP and which will result in growth and investment in West Sacramento.

Alternatively, the City Council may:

1. Decline to approve all recommended actions;

2. Direct staff to modify the Debt Management or Budget policies; or

3. Delay all recommended actions to a later date.

The above alternatives are not recommended as the City desires to expend revenues accrued in the EIFD Fund to finance capital improvement activities that are needed to meet State grant matching fund requirements for the I Street Bridge Project. In addition, the City desires to finance projects of communitywide significance using bonds secured by EIFD tax-increment revenues. Selecting an above alternative will delay the City’s use of revenues accrued in the EIFD Fund and may risk forfeiting grant funds for the I Street Bridge Project.

Coordination and Review
This report was prepared by the Economic Development and Housing Department in coordination with the Finance Department, Capital Projects Department, City Manager’s Office, City Attorney, and the City’s EIFD Counsel.

Budget/Cost Impact
There are no fiscal impacts of today’s action. Future actions of the City Council and PFA will be required before bonds are issued. Fiscal impacts of those decisions will be described in future reports.

ATTACHMENTS

1. Resolution 24-85
a. Exhibit A - City of West Sacramento Debt Management Policy b. Exhibit B - West Sacramento Enhanced Infrastructure Financing District Budget Policy

2. EIFD No. 1 IFP List of Projects
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RESOLUTION 24-85

A RESOLUTION OF THE CITY OF WEST SACRAMENTO APPROVING THE CITY OF WEST SACRAMENTO ENHANCED INFRASTRUCTURE FINANCING DISTRICT NO. 1 DEBT MANAGEMENT POLICY AND BUDGET POLICY; AUTHORIZING A VALIDATION ACTION;

AND RELATED ACTIONS
WHEREAS, on June 28, 2014, the Public Financing Authority (“Authority”) of the City of West Sacramento Enhanced Infrastructure Financing District No. 1 (“EIFD”) adopted Ordinance 17-1 and Resolution 17-2 approving the EIFD No. 1 Infrastructure Financing Plan (“IFP”) and creating EIFD No. 1 to continue the City of West Sacramento’s efforts to transition riverfront and central business areas from heavy industrial use to mixed-uses, to enhance the City’s transportation network, and enhance the quality of public facilities for residents, businesses, and visitors.

WHEREAS, the Council of the City of West Sacramento (“City”) Council recognizes that cost-effective access to the capital markets depends on prudent management of the EIFD No. 1 debt program; and
WHEREAS, Government Code section 8855(i) requires any issuer of public debt to certify that it has adopted local policies addressing the topics set forth in said Code prior to issuing debt; and
WHEREAS, the City Council wishes to set parameters for issuing debt, managing the debt portfolio, and providing guidance to decisions makers; and WHEREAS, the City Council finds and determines that adoption of a Debt Management Policy (the “Debt Management Policy”) will help ensure that debt is issued and managed prudently in order to maintain sound fiscal policy; and
WHEREAS, the City Council and Authority directed staff to present an EIFD Budget Policy to ensure that the EIFD is managed prudently in order to maintain sound fiscal policy and prioritize improvements that achieve the City’s long-term vision established through its General Plan, specific plans, facilities master plans, and related documents (together, “Planning Documents”); and
WHEREAS, the City Council finds and determines that adoption of the attached EIFD Budget Policy (“Budget Policy”) will achieve the goals provided in the City’s Planning Documents; and
WHEREAS, the consideration of adopting the Budget Policy will be presented to the Authority and subsequently to the City Council.

NOW, THEREFORE, BE IT RESOLVED
Section 1. Recitals. The City Council hereby finds and determines that the foregoing recitals are true and correct.

Section 2. Approval of the Debt Management Policy. The City Council hereby declares that the Debt Policy attached hereto as Exhibit A, is hereby approved to be the Debt Policy of the EIFD to the extent applicable and is to be effective on the date of approval.

Section 3. Approval of the Budget Policy. The City Council hereby declares that the proposed Budget Policy attached hereto as Exhibit B is hereby approved as the “City of West Sacramento Enhanced Infrastructure Financing District No. 1 Budget Policy” to be effective on the date of approval.

ATTACHMENT 1
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Section 4. Approval of Contingency Declaration. The City Council hereby declares that the following contingency declaration is hereby approved and made a part of the Budget Policy:
“If, in connection with the issuance of bonds or other debt obligations by the EIFD, and if required by the terms of the issuance or sale of such obligations, the City pledges to allocate tax increment to secure the payment of such obligations, the annual allocation of tax increment by the City under the Infrastructure Financing Plan (“IFP”) shall be contingent on the EIFD’s having applied tax increment only for authorized purposes under the IFP and the EIFD Law, including the payment of debt service on bonds or other debt obligations issued to accomplish such purposes, and in no event may any future allocation of tax increment revenue be accelerated.” Section 5. Approval of Irrevocable Transfer. The City Council hereby declares that the following is hereby approved and made a part of the Budget Policy:
“If, in connection with the issuance of bonds or other debt obligations by the EIFD, and if required by the terms of the issuance or sale of such obligations the City shall provide any authorization necessary to allow for the irrevocable transfer (subject to contingency if required by applicable law) of any such tax increment revenues to the EIFD for the payment of debt service (and including any amounts necessary for a reserve fund, other credit enhancements, or to satisfy any other financing terms and conditions) on the bonds or other debt obligations.” Section 6. Validation Action. The City Manager, Assistant City Manager, Director of Finance, and City Attorney (the “Authorized Officers”), in consultation with bond counsel, are hereby authorized and directed to initiate a judicial validation action with respect to the EIFD and the Bonds pursuant to Code of Civil Procedure Section 860 et seq.

Section 7. General Authorization. The City Council hereby authorizes and directs the Authorized Officers, and each of them, for and in the name of and on behalf of the City, to do any and all things and to execute and deliver any and all documents that they may deem necessary or advisable in order to complete the sale, issuance, and delivery of the Bonds and otherwise to carry out, give effect to, and comply with the terms and intent of this resolution. All actions heretofore taken by such officers and agents that are in conformity with the purposes and intent of this resolution are hereby ratified, confirmed and approved in all respects.

Section 8. Effective Date. This resolution shall take effect immediately upon its passage and adoption.

PASSED AND ADOPTED this 21st day of August, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Martha Guerrero, Mayor
ATTEST:

Jennifer Cusmir, City Clerk
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1 CITY OF WEST SACRAMENTO
ADMINISTRATIVE POLICY NUMBER: IV-A-5
DATE: June 14,
2017August 21, 2024
SUBJECT: DEBT MANAGEMENT AUTHORITY: City Council

PURPOSE
The City of West Sacramento (the “City”), acting through the Department of Administrative ServicesFinance, executes debt instruments, administers debt proceeds, manages ongoing disclosure and debt compliance, and makes debt service payments, acting with prudence and diligence and with attention to prevailing economic conditions.

This debt management policy primarily addresses debt instruments issued by the City in public or private bond markets. The policy documents the City’s procedure and goals for the use of debt to finance City needs. A regularly updated debt management policy, in conjunction with the City’s Capital Improvement Program, the Investment Policy, and the Budget Policy, serves as an important tool that supports the use of the City’s resources to meet its financial commitment and to maintain sound financial management practices. While the debt management policy serves as a guideline for general use, it allows for exception in certain conditions. In implementing this policy from time to time, interpretations and variations may be made at the discretion of the city manager, assistance city manager, finance – administrative services director, or public finance manager, without approval of the City Council, as determined by such person to be in the best interests of the City or its citizens, and/or for purposes of administrative efficiency or convenience or to comply with new applicable federal, state, or local law.

Purpose of Policy
The City recognizes the foundation of any well-managed debt program is a comprehensive debt policy. The primary objectives of a debt management policy are to:
 Establish guidelines for the use of various categories of debt;  Create procedures and policies that minimize the City’s debt service and issuance costs;  Retain the highest practical credit rating; and
 Provide full and complete financial disclosure and reporting.

The City’s debt management policy is also designed to:
 Establish parameters for issuing and managing debt;
 Provide guidance to decision makers related to debt affordability standards;  Document the pre-and post-issuance objectives to be achieved by staff;  Promote objectivity in the debt approval decision making process; and  Facilitate the actual financing process by establishing important policy decisions in advance.

The policies outlined in the debt management policy are not goals or a list of rules applied toward the City’s debt issuance; rather, these policies should be utilized as tools to ensure that adequate financial resources are available to support the City’s long-term capital needs. Adherence to a debt policy helps to ensure that the City maintains a sound debt position and that the City strives, EXHIBIT A TO RESOLUTION 24-85
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2 as it issues future debt, to enhance credit quality and ensure that market access will not be impaired. Advantages of a debt policy are as follows:
 Enhances the quality of decisions by imposing order and discipline, and promoting consistency and continuity in decision making,
 Rationalizes the decision-making process,
 Identifies objectives for staff to implement,
 Demonstrates a commitment to long-term financial planning objectives and  Is regarded positively by the credit rating agencies in reviewing credit quality.

The City’s Administrative ServicesFinance Director is responsible for implementation and oversight of the City’s debt policy. An annual review of the Debt Policy will be performed and any changes to the Debt Policy will be brought forward for City Council consideration and approval.

Further, in the event there are any deviations or exceptions from the debt policy when a certain bond is structured, those exceptions will be discussed in the staff reports when bond issue is considered by the Council.

POLICY
This debt policy brings together in one document the City Council’s existing rules, regulations, and current practices relating to external and internal debt. Those policies have previously been found in the City’s Budget Policy. This policy summarizes the City’s legal authority, restrictions, and responsibilities relating to external and internal debt, and addresses other areas related to debt management.

This policy has been prepared in accordance with the Government Finance Officers Association (GFOA) Recommended Practices on Debt Management Policies and is consistent with other comparable municipalities, and is intended to conform with Senate Bill 1029.

This policy includes:

I. Purposes for which debt may be issued;
II. Legal debt limitations;
III. Types of debt permitted;
IV. Land secured debt;
V. Structural features preferred
VI. Credit Objectives
VII. Method of sale
VIII. Methods of selecting outside professional
IX. Post- compliance of debt issued

PROCEDURE
I. PURPOSE FOR WHICH DEBT MAY BE ISSUED
The City borrows money primarily to fund long-term capital improvement projects, essential equipment and vehicle needs, and to refinance the existing debt. The City shall not issue debt to fund operating deficits with the exception of short-term financing methods. Debt will be used to finance eligible projects only if it is the most cost-effective means available to the City.

While the “pay-as-you-go” means of using current revenues to pay for capital projects is often considered the preferred means of financing because it avoids interest payments, it may not be entirely equitable. The “pay-go” funding option requires current citizens to pay taxes over long 508
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3 periods of time in order to accumulate reserves sufficient to pay for capital projects. The City would be able to undertake capital projects under this method only if cash accumulates. Prudent use of debt financing rather than pay-go funding of capital projects can facilitate better allocation of resources and increased financial flexibility.

The three primary borrowing purposes are summarized below:

1. Long- Term Capital Improvements
The City’s Administrative ServicesFinance Department will prepare a multi-year Capital Improvement Program (CIP) working with various city departments. The CIP will include projections for the upcoming fiscal years and will be updated during each budget process or if there are significant changes to the scope and/or cost of the projects. The Administrative ServicesFinance Department will work with the various City departments to ensure that accurate and complete budgeting of the CIP is prepared as part of the City’s Biennial Budget process.

Since the aggregate cost of desired capital projects generally exceeds available funds, the capital planning process prioritizes projects and identifies the funding needs. The City will initially rely on internally-generated funds and /or grants and contributions from other governments to finance its capital needs. Debt will be issued for a capital project only when it is an appropriate means to achieve a fair allocation of costs between current and future beneficiaries and if a secure revenue source is identified to repay the debt. A secure revenue source could include an additional special tax, assessment district, budgeted General Fund revenue, user fees, rate revenue, or other sources of revenue identified to fund the specific capital project.

The Administrative ServicesFinance Department, working with other City Departments within the context of the Capital Improvement Program oversees and coordinates the timing, processing, and marketing of the City’s borrowing and capital funding activities. Close coordination of capital planning and debt planning will ensure that the maximum benefit is achieved with limited capital funds. The debt management process will determine the availability of funds which can be raised through debt based upon the debt capacity/affordability analysis.

2. Essential Vehicle and Equipment Needs
In addition to capital projects, the City regularly finances certain essential equipment and vehicles. These assets range from public safety vehicles and information technology systems.

The underlying asset must have a minimum useful life of three years. Short-term financings, including loans and capital lease purchases agreements, are executed to meet such needs.

3. Refinancing/Refunding of Existing Debt
The Administrative ServicesFinance Director will periodically evaluate its existing debt and execute refinancing when economically beneficial. A refinancing may include the issuance of bonds to refund existing bonds or the issuance of bonds in order to refund other obligations, such as pension obligations.

Financing Priorities
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4 The Administrative ServicesFinance Director shall review all borrowing requests or debt refunding proposals to determine if it is beneficial to the City and complies with the City’s long-term financial planning objective. Borrowing requests include any debt or refunding proposals made to the City involving a pledge or other extension of the City’s credit through the sale of securities, execution of loans or leases, or making of guarantees or otherwise involving directly or indirectly the lending or pledging of the City’s credit.

For each financing proposal related to a new capital improvement project, Administrative ServicesFinance Director will work with the applicable City Department to assess the feasibility and the impact of debt to fund the project based on the following assessments:

A. Nature of Project and Use of Funds
Each Proposal will be evaluated by comparing the nature of project and use of funds with competing proposals on the basis of the benefits derived and how it furthers the City’s policy objectives as laid out in the City’s Strategic Plan, City Biennial Budget, and Capital Improvement Program.

B. Cost-Benefit Analysis of Project
A cost-benefit analysis will be required for each project.

1. The benefits of a proposed project must be defined, and where appropriate, quantified in monetary terms. The funding sources will be identified and estimated. Where revenues are part of the benefits, all assumptions made in deriving the revenues will be documented.

The validity of the assumptions and the risk associated with the revenue streams will be assessed.

2. The costs of the project will be estimated, with the basis for the cost estimates documented and the risk associated with the estimates assessed. The uses of funds will be identified and estimated.

3. Identify whether projects will increase or reduce ongoing operation and maintenance expenses.

C. Expenditure Plan
A detail plan for the expenditure of funds will be developed for each project. The underlying assumptions of the project cost expenditure plan will be documented and the risk associated with these projections will be analyzed.

D. Revenue for Debt Service Payment
A detailed plan for the debt repayment will be developed for each project. The underlying assumptions of revenue cash flow estimates will be documented and the risk associated with these revenue streams will be analyzed.

All requests will be prioritized based upon this evaluation. If the Administrative ServicesFinance Director recommends the financing proposal, the Finance Department will prepare the financing proposal for the City Council’s authorization, as part of the Council’s consideration of debt issuance and/or the project’s budgeting process. 510
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5 Asset Life
Consistent with its philosophy of keeping its capital facilities and infrastructure systems in good condition and to maximize a capital asset’s useful life, the City will make every effort to set aside sufficient current revenues to finance ongoing maintenance needs and to provide reserves for periodic replacement and renewal. Generally, no debt will be issued for a period that exceeds the useful life or average useful lives of projects to be financed.

The City will consider short or long-term financing for the acquisition, maintenance, replacement, or expansion of physical assets, including land. A general rule of thumb is that for short-term financing, the physical asset must have a minimum useful life of three years; for long-term financing, the physical asset must have a minimum useful life of ten years.

II. LEGAL AUTHORIZATIONS AND LIMITATIONS

1. The City
The City Council enacted Title 3 Revenue and Finance, Chapter 3.32 Facility Financing, Section 3.32.010 of the City of West Sacramento Municipal Code, in accordance with, among other powers, Government Code Section 37100.5, which authorizes the legislative body of the city to levy any tax that may be levied by any charter city, subject to voters’ approval pursuant to Article XIII A of the California Constitution. Because the levy of taxes for city purposes is a municipal affair and the subject of financing the acquisition, construction, and maintenance of public infrastructure does not qualify as a matter of statewide concern, charter cities may levy taxes that are identical to those provided for in general state statutes, such as the Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”).

The West Sacramento Financing Authority (the Authority) was formed on August 1, 1991, as a joint powers authority under the Joint Exercise of Powers Agreement, dated January 24, 1961, by and among 54 cities and five counties, and under the provisions of Articles 1 through 4 (commencing with section 6500) of Chapter 5 of Division 7 of Title 1 of the California Government Code. The West Sacramento Financing Authority is authorized to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose making loans to, public entities, including the City, and to provide financing for public capital improvements of public entities, including the City.

The West Sacramento Area Flood Control Agency (WSAFCA, or “the Agency”) was formed on July 20, 1994, as a joint powers agency created by agreement among the City of West Sacramento, Reclamation District No. 900, and Reclamation District No. 537. The boundaries encompass the entire City of West Sacramento. The Agency is authorized to issue debt secured by Agency revenues, including assessments collected under the Benefit Assessment Act of 1982.

The City of West Sacramento Infrastructure Financing District No. 1 (Bridge District Area) (the “IFD”) was formed on November 12, 2014, following the results of an election held on October 8, 2014, at which time the qualified electors of the IFD approved the formation of the IFD, an Infrastructure Financing Plan for the IFD, and the issuance of up 511
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6 to $500,000,000 of bonds by the IFD secured by property tax increment revenues generated by property within the IFD, all pursuant to the provisions of Chapter 2.8 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with section 53395), as amended. The IFD may issue bonds or use pay-as-you-go financing to finance public improvements and facilities of communitywide significance as provided in the Infrastructure Financing Plan for the IFD.

The City of West Sacramento Enhanced Infrastructure Financing District No. 1 (the “EIFD”) was formed on June 28, 2017, following approval of Ordinance 17-1 by the City Council, which ordinance approved the formation of the EIFD and adopted an Infrastructure Financing Plan for the EIFD, pursuant to the provisions of Chapter 2.99 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with section 53398.50), as amended. The EIFD may use the property tax increment revenues that the City has pledged to it to issue bonds or use pay-as-you-go financing to finance public facilities of communitywide significance in and for the District as provided in the Infrastructure Financing Plan for the EIFD.

2. Debt Limitation
The State of California Government Code (Section 43605) states that a City shall not incur an indebtedness for public improvements which exceeds in the aggregate 15% of the assessed value of all real and personal property of the City. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-1982 fiscal year, each parcel is now assessed at 100% of the market value (as of the most recent change in ownership for that parcel).

III. TYPES OF DEBT PERMITTED
The City may issue debt to pay down the cost of acquiring, constructing, and improving capital assets or meet its cash flow needs. The City should not finance general operating costs from debt having maturities more than one year. General operating costs include, but not limited to, those normally funded in the City’s operating budget. There are many difference types of financing instruments available to the City; short term financing debt obligations (generally maturity less than a year) and long-term financing debt obligations.

1. Short Term Financing Obligation:

The City may issue short-term debt when such instruments allow the City to meet its cashflow requirements or provide increase flexibility in its financing program. Short term debt includes:

A. Tax and Revenue Anticipation
Tax and Revenue Anticipation Notes (TRANs) are short-term notes, proceeds of which allow a municipality to cover the periods of cash shortfalls resulting from a mismatch between timing of revenues and timing of expenditures.

B. Lines and Letters of Credit
A Line of Credit is a contract between the issuer and a bank that provides a source of borrowed monies to the issuer in the event into if the need arises or not touched at all and saved for emergencies.
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7 A Letter of Credit is an arrangement from with a bank that provides additional security to the seller that money will be available to pay for goods and services. A Letter of Credit can provide the city with access to credit under terms and conditions as specified in such agreements.

A Line of Credit or Letter of Credit shall be considered by the Director of Administrative ServicesFinance when to be prudent and advantageous to the City.

C. Bond Anticipation Notes
Bond Anticipation Notes (BANs) are short-term interest-bearing bonds issued in the anticipation of long-term future bond issuances. The City may choose to issue BANs as a source of interim financing when it is considered by the Director of Administrative ServicesFinance to be prudent and advantageous to the City.

D. Capital Lease
Capital lease is a fixed-term (and usually non-cancelable) lease that is similar to a loan agreement for purchase of a capital asset on installments. Capital leases are regarded as essentially-equivalent to a sale by the lessor, and a purchase by the lessee (even though the title remains with the lessor). All Capital leases must be approved by the City Council.

2. Loan Obligations
A. State Revolving Fund Loan
The State Revolving Fund (SRF) loan is a low interest loan program for the construction of water and wastewater infrastructure projects. Loan terms for public agencies are up to 20 years with the first repayment due one year after the first disbursement of loan funds. A public agency may apply for a local match loan. A local match loan is a zero percent loan in return for the public agency paying the State match portion of the SRF funds for the loan. A SRF loan may be considered by the Director of Administrative ServicesFinance when to be prudent and advantageous to the City.

B. HUD Section 108 Loan Guarantee Program
The U. S. Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program allows cities to use their annual Community Development Block Grant (CDBG) entitlement grants to obtain federally guaranteed funds large enough to stimulate or pay for major community.

The Housing and Community Investment division in the Community Development Department of the City administers the implementation and management of HUD Section 108 Loan Guarantee Program.

3. Joint Powers Authority (JPA)
A Joint Powers Authority (JPA) is an entity permitted under Section 6500 of the California Government Code, whereby the City may consider joint arrangement with other 513
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8 governmental agencies when a project serves the public interest beyond the City boundaries. A JPA is authorized to issue bonds on behalf of the public agencies. The City Council may sit as the governing board of the agency or authority. Typically, joint venture debt is repaid through revenues generated by the project and if structured as a JPA, a debt issuance associated with joint venture arrangements does not require voter approval.

The City will only be liable for its share of debt service, as specified in a contract executed in connection with the joint venture debt.

4. Long Term Financing Obligation
There are many different types of financing instruments available to the City; long term financing debt obligations like General Obligation Bonds, Lease Revenue Bonds and Revenue Bonds would typically constitute direct debt of the City. The City issues conduit financing to finance a project to be used primarily by a third party, usually a for-profit entity engaged in private enterprise where public benefit can be achieved. These are the longterm financing instruments available to the City.

5. Direct Debt Obligations
A. General Obligation (GO) Bonds
Go bonds are a form of long-term borrowing secured either by a pledge of the full faith and credit of the issuers or a promise to levy property taxes in an unlimited amount as necessary to pay debt services or both. GO bonds have historically provided local agencies with the lowest borrowing costs among the types of long-term bonds they may issue because of their broad security pledge, which yield the highest possible bond rating and widest investor acceptance.

Article XVI, Section 18 of the State Constitution, states that local agencies (i.e., county, city, town, or school district) may not incur indebtedness without two-thirds voter approval. Uses of bond proceeds are limited to the acquisition and improvement of real property.

B. Certificate of Participation/ Lease Revenue Bonds
Certificate of Participation (COPs) and Lease Revenue Bonds (LRBs) are lease obligations secured by an installment sales agreement or by a leaseback arrangement with a public entity. The City pledges the general operating revenues to pay the lease payments, which are, in turn, used to pay debt service on the bonds. These obligations do not constitute indebtedness under the state constitutional debt limitation and, therefore, are not subject to voter approval.

Payments to be made under valid leases are payable only in the year in which use and occupancy of the leased property is available, and lease payments may not be accelerated. The City is obligated to annually budget for the rentals that are due and payable during each fiscal year that it has the use of the leased property.

C. Revenue Bonds
Revenue Bonds are obligations payable from revenues generated by an enterprise, such as water or wastewater utilities, or parking facilities. The City may issue revenue bonds without a two-third voter approval in a bond election because revenues are not payable from taxes or the general fund of the City. In accordance, with the agreed upon bond covenants, the revenues generated by the Enterprise Funds must be 514
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9 sufficient to maintain required coverage levels, or the rates of the enterprise have to be raised to maintain the coverage.

6. Conduit Financings
A. Special Districts Financing
The City’s Special Districts primarily consist of Community Facilities Districts (“CFDs”) and 1913/1915 Act Assessment Districts (“AD”). Special Districts are normally formed in undeveloped areas. Special Districts are typically developer initiated, whereby a developer seeks a public financing mechanism to fund public infrastructure required by the City in connection with development permits or agreements, and/or tentative subdivision maps. Special District may also be initiated by an established community.

The securities for the bond are provided by the properties with the district. Property owners pay a special tax each year to cover the debt service payments. By law (Proposition 13), the Special Tax cannot be directly based on the value of the property.

Special Taxes instead are based on mathematical formulas (special tax formula) that take into account property characteristics such as use of the property, square footage of the structure and lot size. The formula is defied at the time of the formation, and will include a maximum special tax amount and a percentage maximum annual increase.

The issuance of special district or CFD bonds requires two-thirds majority vote or residents living within the proposed boundaries. Or, if there are fewer than 12 residents, the vote is instead conducted of current landowners. In many cases, that may be a single owner or developer. The City is not liable for the repayment of these bonds, but rather act as an agent for the property owners/bondholders in collecting and forwarding the special assessments.

B. Marks-Roos Bonds
In 1985, the Marks-Roos Bond Pooling Act (Government Code § 6584-6599.1) was created to provide a flexible alternative method of financing needed improvements, along with the benefit of reduced borrowing costs thru the use of bond pools. MarksRoos act permits two or more agencies to form a Joint Powers Authority, which authorizes the JPA to issue Marks-Roos bonds and loan the proceeds to local agencies to finance public capital improvements, working capital or insurance programs. Marks-Roos bonds do not require voter approval.

C. Long-Term Notes Payable
Long-term notes payable are obligations in the form of promissory note. The City may borrow from its bank or other financial institutions in order to provide financing for capital projects. The banks may require the City to pledge collateral for the City’s personal guarantee to the note. The City may choose to issue long-term note as a source of interim financing when it is considered by the City Finance Director to be prudent and advantageous to the City.

D. Advances
Advances are interfund loans involving a transfer of moneys from one city fund to another, usually for working capital purposes with the expectation of repayment. The borrowing fund reports a liability and an increase in cash, and the lending fund reports a receivable and a decrease in cash. If an advance to other funds is recorded, the fund that made the advance must reserve its fund balance account to indicate that the advancement representing the long-term portion of the loan is not currently available 515
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10 for appropriation or expenditure. The borrowing fund shall pay interest to the lending fund annually. Interest payment shall be calculated using a simple interest method and the interest rate shall be based on one-year average LAIF interest rate.

The City may choose to advance moneys from one fund to another upon approval of the Administrative ServicesFinance Director.

E. Tax Increment Financing Districts
The City’s Tax Increment Financing Districts include Infrastructure Financing Districts (“IFDs”) and Enhanced Infrastructure Financing Districts (“EIFDs”). Tax Increment Financing Districts are formed pursuant to state law requirements contained in the Government Code and may or may not require voter approval, depending on the authorizing statues. Tax Increment Financing Districts establish a base value of property tax collections when they are formed. Future growth in the property taxes generated from taxable property within Tax Increment Financing Districts above the base value constitute Tax Increment revenues. Tax Increment Financing Districts may spend the Tax Increment revenues that are pledged to them by their sponsoring entity or entities to finance infrastructure and capital projects of communitywide significance either through the use of pay-as-you-go financing or through the issuance of Tax Increment Bonds. Tax Increment Financing Districts cannot levy new taxes, and only receive the portion of Tax Increment revenues pledged to them by their sponsoring entity or entities.

Tax Increment Bonds issued by Tax Increment Financing Districts are special obligations of the Tax Increment Financing Districts payable only from the Tax Increment revenues pledged to them by their sponsoring entity or entities. While the City is not liable for the repayment of Tax Increment Bonds issued by any Tax Increment Financing District located within its boundaries, the City’s property tax receipts from areas contained within a Tax Increment Financing District’s boundaries may be reduced by the amounts of Tax Increment it has pledged to such Tax Increment Financing Districts.

7. Refunding of City Indebtedness
Refunding bonds are used to redeem outstanding bonds. The concept is similar to refinancing a mortgage. The City will consider refunding its existing debt when benefits of the refunding outweigh the costs and risks. The Director of Administrative ServicesFinance will consider the following issues when analyzing possible refunding opportunities;
A. Debt Service Savings
The City establishes a minimum savings threshold goal of three percent of the refunded bond principal amount or at least $500,000 in present value savings (including foregone interest earnings) unless there are legal reasons for defeasance.

The present value savings will be net of all costs related to the refinancing. The decision to taking savings on an upfront or deferred basis must be explicitly approved by the Director of Administrative ServicesFinance.

B. Restructuring
The City will refund debt when in its best interest to do so. Refunding will include restructuring to meet unanticipated revenue expectations, terminate swaps, achieve cost savings, mitigate irregular debt service payments, release reserve funds, or remove unduly restrictive bond covenants.
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11 C. Term of Refunding Issues
The City may refund bonds within the term of the originally issued debt. However, the City while a maturity extension may be legally permissible to achieve a desired outcome, extending the term of debt will not be permissible from a policy perspective of the City Council. The City may consider shortening the term of the originally issued debt to realize greater savings. The remaining useful live of the financed facility and the concept of inter-generational equity should guide this decision.

D. Escrow Structuring
The City shall utilize the least costly securities available in structuring refunding escrows. The City will examine the viability of an economic versus legal defeasance on a net present value basis. A certificate will be required from a third-party agent who is not a broker-dealer, stating that the securities were procured through an armslength, competitive bid process (in the case of open market securities), that such securities were more cost effective than State and Local Government Obligations (SLGS), and that the price paid for the securities was reasonable within Federal guidelines. Under no circumstances shall an underwriter, agent or financial advisor sell escrow securities to the City from its own account.

E. Arbitrage
The City shall take all necessary steps to optimize escrows and to avoid negative arbitrage in its refunding. Any resulting positive arbitrage will be rebated as necessary according to Federal guidelines.

IV. LAND SECURED DEBT
The following policies and procedures for the use of Mello-Roos Community Facilities Districts (CFDs) are established under provisions of Government Code 53312.7. These policies and procedures outline the allowable uses for, and the City requirements in establishing and using a Mello-Roos CFD for any publicly owned facility or the provision of allowable services. For purposes hereof, the committee appointed by the City Council, appointed to review proposed Mello-Roos financing, is referred to as the "Mello-Roos Committee." In implementing this policy from time to time, interpretations and variations may be made at the discretion of the city manager, assistance city manager, – administrative services finance director, or public finance manager, without approval of the City Council, as determined by such person to be in the best interests of the City or its citizens, and/or for purposes of administrative efficiency or convenience or to comply with new applicable federal, state, or local law.

1. Priority of Facilities to Be Financed
The Mello-Roos Community Facilities Act (herein, the "Act") may be used for the purchase, construction, expansion, rehabilitation or acquisition of public improvements, or the provision of public services subject to the provisions of this document and any subsequent amendments. It is the City's intent to use Mello-Roos CFDs to provide for the financing of City-owned and operated infrastructure and services. Priority in using Mello-Roos CFD funding shall be given to the funding of capital projects that are regional in nature and have the broadest possible benefit to the land uses included in the CFD. Projects of a regional nature may include facilities to be owned and operated by other public agencies.

2. Credit Quality to Be Required of Bond Issues
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12 A. Debt Service. Except for commercial or industrial property financings with no residential components, debt service shall be substantially level throughout the life of the bond issue. Phased bond issuance shall not result in a special tax levy that exceeds the authorized max tax levy to existing residential homeowners. Unless determined to be specifically required, debt service shall generally not exceed thirty (30) years from the date of bond issuance.

B. Bond Redemptions. Maximum redemption premiums shall not exceed three percent (3%). No call provisions shall exceed ten (10) years and no provision shall be made to restrict the ability of the City to refund any bond issue, unless otherwise approved by the City Council.

Provision shall be made to allow the City to purchase bonds on the open market at par plus accrued interest, in lieu of redemption of bonds.

C. Reserve Funds. A reserve fund shall be required (unless specifically exempted for cause) for every land-secured financing. The reserve fund will be sized by the City with the advice of the financing team, and, for tax-exempt financings, will not exceed maximums prescribed by applicable federal tax law. Reserve fund earnings beyond maximum reserve fund size should be used to credit debt service and may be used to pay applicable rebate obligations under federal tax law.

D. Capitalized Interest. The City, with the advice of the financing team, will determine, on a case-by-case basis, the amount of capitalized interest for a particular financing.

The amount of such interest will be determined based on factors such as the length of the construction period, the earliest date upon which tax roll collection may commence and the amount such interest will add to the total amount of the financing, taking into account the restrictions on value to lien expressed herein and the ability of the owner(s) to defray the debt service.

E. Foreclosure Covenants. Every land-secured financing bond issuance document shall provide for the judicial foreclosure of delinquent payments of assessments or special taxes. Such covenants may vary with the particular financings, but shall at the minimum provide for the institution of foreclosure not more than 150 days from April 10 of a calendar year and shall authorize the City Attorney or delegate thereof to commence foreclosure without further Council action upon notification of a delinquency. Provision may be made to allow deferral of foreclosure in the event the City advances funds to the reserve fund to maintain any specific reserve requirement.

F. Discounts. In competitive bond sales, the amount of discount shall be determined by the City with the advice of its financial advisor. In negotiated sales, it shall be the burden on the underwriter to justify its discount as competitive and such justification must take into account any other compensation being paid to the underwriter. Original issue discount will be allowed only if the City determines that it results in a lower true interest cost and will not adversely affect the ability to construct the public improvements.

3. Information to Property Owners
A. Prospective Purchasers. The Director of Finance shall be responsible for providing notice of special tax to prospective property owners pursuant to Section 53340.2 of 518
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13 the Act and, upon request of a subdivider, or its agent or representative, information in order for such subdivider, agent or representative to comply with Section 53341.5 of the Act.

B. Existing Lenders. The City may require the consent of the existing deed of trust holders in any District to be formed by landowner (rather than registered voter) approval.

4. Criteria for Evaluating the Equity of The Special Tax Formula With regard to CFDs, the proposed rate and method of apportionment shall comply with the following criteria:

A. The rate and method of apportionment generally shall not provide for an annual increase in the maximum special tax for any classification. However, under limited circumstances an increase in the maximum special tax will be permitted, not to exceed two percent (2%) annually. As a general rule, escalation of the maximum annual special tax will be allowed when bonds are to be sold in several series over an extended period of time.

B. The total projected annual special tax revenues, less estimated annual administrative expenses, must exceed the projected annual gross debt service on the bonds by ten percent (10%). In structuring the special tax, projected annual interest earnings at current passbook savings rates on bond reserve funds may also be included as revenue for the purpose of this calculation.

C. The projected annual tax revenues shall include reasonable annual administrative expenses and other direct costs to the CFD.

D. All property not otherwise statutorily exempted or owned (or to be owned) by a public entity and to be benefited shall bear its appropriate share of the special tax liability.

E. The special tax shall be allocated and apportioned on the basis of reasonableness to all categories and classes of taxable property within the CFD.

F. A formula to prepay the special tax shall be considered.

G. The projected ad valorem property tax and other direct and overlapping debt for the proposed CFD (including estimated CFD charges, projected benefit assessments, levies for authorized, but unissued debt, and any other anticipated municipal charges which may be included on a property owner's annual tax bill), including the proposed maximum special tax, should not exceed two percent (2%) of the anticipated assessed value of each improved parcel upon completion of the public and private improvements. Any deviations from the foregoing will not be permitted unless specifically recommended by the Mello-Roos Committee and approved by the City Council.

H. The special tax formula shall be structured to produce sufficient annual special tax revenue to pay annual debt service, administrative expenses, and "pay as you go" programs funded by the CFD special tax. To the extent a special tax is to be levied to pay for services, it should be separate from the special tax to pay for facilities. 519
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14 a. Unless otherwise approved by the City Council, the special tax formula shall be such that once the total special tax need is known, and the status of all properties within the financing district relative to that formula are known, the special tax on each parcel is determined purely by the application of the formula without the exercise of discretion on the part of any person.

5. Criteria for The Sale of Bonds
In order to ensure the long-term security of any bonds sold as the result of the formation of a Mello-Roos CFD, the following policies shall be followed:

A. The ratio of the appraised value of the land to the value of the proposed bond issue, and any other overlapping debt, shall not be lower than 3-to-1 unless authorized by the City Council with specific finding of need.

B. Market absorption studies may be required at the City's discretion to determine if the financing of the infrastructure and public facilities is appropriate given the projected level and pace of development. The study may also be required by the appraiser for use in the appraisal process. The City will employ any market-absorption consultant.

C. All terms and conditions for the sale of bonds shall be established by the City.

6. Appraisal Requirements
A. Value of Land. There must be evidence that the bulk value of the land that will secure the bond issue is at least three times the amount of bonds to be sold and any overlapping special assessment and/or community facilities bonded debt on the property as of the anticipated date of sale of the bonds. The evidence may consist of one or both of the following:
a. Full cash value as shown on the most current ad valorem assessment roll for the property; and/or
b. An appraisal performed by an appraiser retained by the City and consistent with the Bulk Land Value criteria described in Attachment A hereto.

B. Absorption Study. An absorption study may also be required by the City.

7. Mello-Roos CFD Formation Procedures
A. Petitions to the City Council shall be prepared by bond counsel. No petition to initiate the formation of a land-secured financing will be considered valid without the payment of a fee to compensate the City for all costs incurred to perform its analysis of the proposal and to pay for the costs of conducting the proceedings.

The property owners requesting preparation of a petition shall designate a spokesperson for the property owners.

The City shall retain the provision of professional and specialized services of bond counsel, financial advisor, assessment engineer or special tax consultant, appraiser, economist/ absorption specialists, etc.)
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15 Property owner's spokesperson shall be responsible for the following:
a. Advising all property owners to contact him or her for answers to their questions concerning CFD matters.
b. Contacting appropriate City representatives to obtain answers to such questions as he or she is unable to answer. The appropriate City representatives are the members of the Mello-Roos Committee and City consultants as specified by the Committee.
c. Informing property owners that any estimated cost figures supplied to them prior to the estimate contained in the engineer's report, as preliminarily approved by the City Council, must not be relied upon as necessarily precise.

B. It is the policy of the City that owners of properties improved through CFD proceedings pay all City and associated costs of such proceedings and other costs incurred in advance of any bonds being sold. Therefore, on all developer-initiated applications, if actual City costs exceed the amounts estimated below, the developer will be required to advance additional money to pay all costs incurred or to be incurred. Any failure to do so within ten (10) days of demand by the City will be grounds for termination of all activities by the City and by the consultants retained for the purpose of the financing.

When bonds are sold, bond proceeds may be used to reimburse those advancing such funds for these expenditures. The form of reimbursement agreement will be prepared by the City or bond counsel.

If bonds are not sold, any balance remaining in this trust account and not encumbered shall be returned to those advancing such funds.

8. Continuing Disclosure
By being allowed to participate for a Mello-Roos proceeding, each owner of land therein must be willing to provide information deemed by the City and its financing team to be needed in order for the City and the underwriter to comply with applicable Federal and State securities laws, including continuing disclosure requirements imposed by SEC.

Rule 15c2-12.

V. STRUCTURAL FEATURES PREFERRED

1. Term of Debt
The City’s preferred term of financing will be for the shortest period possible, and not exceed the useful life of the project or equipment the City finances. The City issued debt is typically for 15-30 years.

2. Rapidity of Debt Repayment
Debt issued by the City should be structured to provide for either level principal or level debt service. Deferring the repayment of principal should be avoided except in select instances where it will take a period of time before project revenues are sufficient to pay debt service. Ascending debt service should generally be avoided. 521
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16 3. Interest Rate Structure
The City issued debt should be on a fixed interest rate basis only. The fixed rate interest on debt will ensure budget certainty through the life of the debt.

4. Original Issue Discount
An original issue discount will be permitted only if the City determines that such discount results in a lower true interest cost and the bonds and that the use of the original issue discount will not adversely affect the project identified by the bond document.

5. Deep Discount Bonds
Deep discounts bonds may provide a lower cost of borrowing in certain markets. The City will carefully consider their value and effect on any future refinancing as a result of the lower-than-market coupon.

6. Credit Enhancement
The City will consider the use of credit enhancement on a case-by-case basis, evaluating the economic benefit versus cost of each case. Credit enhancement may be used to improve or establish a credit rating on a City debt obligation. Types of credit enhancement include Letters of Credit and bond insurance or surety policy.

A Letter of Credit- may be obtained from a financial institution, usually a major bank, for a fee to enhance the credit rating. A letter of credit is an unconditional pledge of the bank’s credit to make principal and interest payments on the City’s debt in the event insufficient funds are available to meet the debt service payments.

Bond Insurance/Surety Policy – is an insurance policy purchased by an issuer or an underwriter for either for an entire issue or specific maturities, which guarantees the payment of principal and interest. This security provides a higher credit rating and thus a lower borrowing cost for an issuer.

Bond insurance can be purchased directly by the City prior to the bond sale (direct purchase) or at the underwriter’s option and expense (bidder’s option). The decision to purchase insurance directly versus bidder’s option is based on: volatile markets, current investor demand for insured bonds, level of insurance premiums, or ability of the City to purchase bond insurance from bond proceeds.

7. Debt Service Reserve Fund and Coverage Policy
A debt service reserve fund is created from the proceeds of a bond issue and/or the excess of applicable revenues to provide a ready reserve to meet current debt service payments in the event the pledge revenues are insufficient to do so. The size of the reserve fund is governed by tax law, which permits the lesser of: 1) 10% of par; 2) 125% of average annual debt service and 3) 100% of maximum annual debt service. Reserve funds are typically equal to approximately one year’s maximum debt service on the bonds.

For each bond issue, the Director of Administrative ServicesFinance shall determine the appropriate reserve fund and coverage requirements, if any. This determination will consider arbitrage issues related to reserve levels.

8. Capitalized Interest
Certain types of financing such as certificates of participation and lease-secured financings will require the use of capitalized interest from the issuance date until the City 522
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17 has beneficial use and occupancy of the financed project. Interest shall not be funded (capitalized) beyond a period of three years, or a shorter period if further restricted by statute. The City may require that capitalized interest on the initial series of bonds be funded from the proceeds of the bonds. Interest earnings may, at the City’s discretion, be applied to extend the term of the capitalized interest but in no event beyond the term statutorily authorized.

9. Call Options/Redemption Provisions
A call option/redemption provisions gives the City the right to prepay or retire debt prior to the stated maturity. The City would benefit from the options depending on the interest rate environment the bonds were issued under. The holder of the bonds may be entitled to a premium payment (call premium) from the early retirement of the debt.

10. Multiple Series
In instances where multiple series of bonds are to be issued, the City shall make a final determination as to which facilities are the highest priority and those facilities which will be financed first, pursuant to funding availability and the proposed timing of facilities development, and which will generally be subject to the earliest or most senior lien.

11. Arbitrage
The City shall take all necessary steps to optimized escrows and to avoid negative arbitrage in its refunding. Any resulting positive arbitrage will be rebated as necessary according to the Federal guidelines.

VI. Credit Objectives

1. Credit Rating
The City seeks to maintain the highest possible credit ratings that can be achieved for debt instruments without compromising the City’s policy objectives. Creditworthiness, as reflected in the bond ratings, is of great interest to City since it directly affects the cost and ability to borrow money. A favorable credit rating usually allows a city to get lower interest rates when financing projects. To enhance creditworthiness, the City is committed to prudent financial management, systematic capital planning, interdepartmental cooperation and coordination, and long-term financial planning.

Rating agencies consider a number of factors that determine the underlying creditworthiness of governments that issue long-term municipal debt. These factors typically include:
 Fiscal condition of the municipality
 Debt levels and other financial factors
 Economic and demographic characteristics of the local area  Constraints imposed by or dependence on other governmental units  The capital improvement project that is being funded
 Covenants and conditions in the government legal documents  City’s general fund reserves
The City recognizes that external economic, natural, or other events may from time to time affect the creditworthiness of its debt. Each proposal for additional debt will be analyzed for its impact upon the City’s debt rating on outstanding debt. The major source of risk 523
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18 considered by the rating services is the stability and reliability of revenue to service the debt. The City will avoid projects with volatile or risky debt repayment revenue streams.

2. Rating Agency Relationships
The Administrative ServicesFinance Director is responsible for maintain relationships with the rating agencies that assign rating to the City’s various debt obligations. The City may, from time to time, choose to deal with only one or two of these agencies as circumstances dictate. In addition to general communication, the Director of Administrative ServicesFinance shall: 1) meet with credit analyst at least once each fiscal year, and 2) prior to each competitive or negotiated sale, offer conference calls with agency analyst in connection with the planned sale.

VII. Method of Issuance and Sale
Method of Sale
The City will determine, on a case-by-case basis, whether to sell its bonds competitively or through negotiation. The selected method of sale will be that which is the most advantageous to the City in the judgment of the Finance Director, in terms of lower net interest rates; most favorable terms in the financial structure used, and market conditions.

New issues of municipal bonds are sometimes sold through private placements. In private placements, issuers may sell the bonds directly to investors or through a placement agent.

Both types of sales can also be done by a syndicate, that is, a group of underwriters comprising a lead manager and co-managers. Syndicates include underwriters from competing firms who agree to bid together for an issue.

1. Competitive Sale
In a competitive sale, underwriters submit a sealed bid for purchasing the bonds to the issuer at a specific time on a specific date. In this system, there will normally be more than one bidder. The bidder offering the lowest true interest cost to the issuer (i.e., interest cost that takes into account the time value of money) will be awarded a bid. In such instances where the City deems the bids received unsatisfactorily, it may, at the discretion of the Finance Director, enter into negotiation for sale of the securities or reject all bids.

In a competitive sale, the City will publish an official notice of sale in the Bond Buyer, the national trade newspaper of the industry and in other national and local publications. Legal requirements for advertising at the local level often pertain to matters such as a specified time frame in which the bonds must be advertised prior to a sale. Notice of Sale is also sent out to potential bidders. The notice of sale includes information such as the amount of debt or bonds issued, the structure of the deal, the type of debts or bonds, the time and place of sale, the name of the counsel and bidding specifications.

The City shall provide full disclosure requirements through documents such as an official statement on potential risk to investors. Information for City back transactions generally includes: the City government description; description of project being financed, annual financial data and financial statements in appendices, various liabilities; tax base, current tax burden, history of tax collection and bond repayment, future borrowing plans, and the source of funds for the proposed debt repayments, as well as specific bond data and bond holder risk factors.
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19 2. Negotiated Sale
The City recognizes that some securities are best sold through negotiation. Negotiated sales may be executed when competitive sales are not suitable or not a viable option. In a negotiated sale, an underwriter is selected to purchase the bonds. The underwriter, in turn, sells the bonds to its investor customers. In consideration of a negotiated sale, the City shall assess the following circumstances:

A. Size of the issue which may limit the number of potential bidders B. Complex financing structure (i.e., variable rate financings, new derivatives and certain revenue issues, etc.) which provides a desirable benefit to the City C. Market volatility is such that the City would be better serviced by flexibility in timing its sale in changing interest rate environment
D. Comparatively lesser credit rating
E. Other factors that lead the Director of Finance to conclude that a competitive sale would not be effective

3. Private Offering
When determine appropriate by the Finance Director, the City may elect to privately place its debt. Private placement shall only be considered if this method is demonstrated to result in a cost savings to the City relative to other methods of debt issuance.

Bidding Parameters
The Notice of Inviting Bids shall be carefully constructed to ensure the best possible bid for the City, in light of existing market conditions and other prevailing factors. The City shall publish the Notice of Inviting Bids in a financial publication generally circulated throughout the state or reasonably expected to be disseminated among all prospective bidders for the proposed bond issuance.

Initial Disclosure Requirements
SEC Rule 15c2-12 requires issuers of municipal securities to make contractual promises to provide continuing information to the marketplace during the life of securities issued.

The Director of Administrative ServicesFinance, together with the City Attorney, shall coordinate all the necessary documents for disclosure, with input from various other City departments (as applicable for a particular bond issuance) and outside consultants.

Conduit Issues
From time to time, the City will issue bonds on behalf of other public or private entities (“conduit” issues). While the City will make every effort to facilitate the desires of these entities, the Director of Administrative ServicesFinance will ensure that the highest quality financings are done and that the City is insulated from all risks. The City shall require that all conduit financings achieved a rating at least equal to the City’s ratings or that credit enhancement is obtained.

Approval Process
The Director of Administrative ServicesFinance will look with other city departments, including City Attorney, and outside consultants to compile all bond related documents. 525
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20 The City Attorney will assess any legal issue that may arise. All proposed debt financing shall be authorized by the City Council.

VIII. Financing Team- Roles and Selection Process
A team of professionals is required to obtain municipal financing via the bond process.

The City shall maintain a combination of in-house and contracted professionals to complete all debt issuance transactions. The Director of Administrative ServicesFinance shall be responsible for establishing a solicitation and selection process for securing professional services that are required to develop and implement debt management program with the goal of continuity, quality service and competitive prices.

The City shall select its primary consultant(s) by either an as-needed list, which is assembled via Request for Proposal (RFP) process, or a separate RFP issued for a specific bond issuance.

The City will charge an administrative fee equal to direct costs plus indirect costs to reimburse its administrative costs incurred in issuance of long term bonds from bond proceeds. The ongoing trustee fee, semiannually or annually, for a bond issuance, administration of debt management and other fees associated with the issuance shall be appropriated in respective bond payment accounts.

The compensation for Bond Counsel, Disclosure Counsel, Financial Advisors, and other consultants will be as low as possible, given desired qualification levels, and consistent with industry standards. The compensation is contingent on the issuance of bonds, and is either paid or reimbursed from bond proceeds.

Financing Team: Outside Consultants
Contracts with Financial Advisors, Bond Counsel, and Disclosure Counsel will be processed in accordance of the City administrative policy IV-B-1 (Purchasing Policy).

1. Financial Advisors
The role of an independent financial advisor is to serve as an advocate for the issuer and provide the issuer with the information necessary to make intelligent, informed decisions.

This person should know how to structure the financing to get the best rate for the City.

The primary responsibilities of a financial advisor are to advise and assist on bond document negotiations, transaction structuring including advising on call provision options and timing of issuance, running debt service cash flow numbers, obtaining ratings on the proposed issuance, and generally acting as an independent financial consultant and economic market expert.

2. Bond Counsel
Bond Counsel’s role is that of an independent expert who provides an objective legal opinion on the validity (a state law issue) and tax exemption (usually both a federal and state law issue). The role of bond counsel varies depending on the complexity of the issue.

Bond counsel assembles all relevant materials into a Transcript of Proceedings, which is used as a permanent record or reference. The Transcript of Proceeding details all the steps in arrangements.

In addition, bond counsel carries out the following tasks:
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21 A. Prepares and oversees bond proceedings
B. Gets required government approval;
C. Ensures that the issuer meets all the legal requirements and authorization of the bond offering;
D. Disclosures and analyzes all relevant legal proceeding that may have a bearing on the validity of the offering;
E. Interprets relevant regulations and laws and assists in structuring the issue; F. Writes key financing documents.

Bonds cannot be sold without the opinion of a recognized bond counsel.

3. Underwriters
An underwriter’s key role is to buy bonds from the issuer and then resell them to investors.

In competitive sale, underwriters submit a sealed bid for purchasing the bonds to the issuer at a specific time on a specified date. There would be more than one bidder with this method. The bidder offering the lowest true interest cost to the issuer (i.e., interest cost that takes into account the time value of money) will be awarded the bid.

In negotiated sale, the City will select the underwriter thru Request for Proposals (RFP) process prior to the public sale date, or using a prequalified vendor list. Before an underwriter is selected the Finance Director will consider the firm’s experience with underwriting the type of issued be considered, resumes of key personnel and their time commitment for the proposed issuances, management fees and estimated expenses, list of anticipated services, and preliminary ideas about the structure of the deal.

4. Trustee/ Paying or Fiscal Agent
A Trustee/Paying or Fiscal Agent is the institution- usually a commercial bank or trust company- appointed in the indenture or bond resolution to as the agent of the issuer to pay principal and interest to bond holders from the monies provided by or on behalf of the issuer.

Paying Agent duties are typically limited to the payment of principal and interest to bond holders. Fiscal Agent, in addition of paying agent duties, performs certain administrative duties on issuer’s behalf. Administrative duties include but not limited to primary recordkeeping/tracking of bond proceeds, custodian of investments representing bond proceeds, maintenance of reserve, project and debt service funds, and monitor and collect compliance documentation or covenants required under the financing documents.

Trustees, in addition to Paying and Fiscal Agent duties, act as fiduciary for bondholders upon event of default.

The Trustee/Paying Agent solicitation and selection is typically coordinated by the Financial Advisor in consultation with the Director of Administrative ServicesFinance.

5. Other Service Providers
Other professionals may be selected, at the discretion of the Director of Administrative ServicesFinance, on as-needed basis. These may include the services of credit rating agencies, escrow agents, bond insurance providers, credit and liquidity banks, verification agents, title insurance companies and services related to printing. 527
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22 IX. Post- compliance of debt issued
In connection with the issuance of tax-exempt bonds, City becomes responsible for assuring post issuance compliance with a range of tax, disclosure and document covenant matters. Postissuance compliance is a process which provides an organization with a record retention and reporting system, which enables it to identify actions that could potentially render the interest of the bonds taxable. The responsibilities apply over the entire life of the obligations, including any refunding bonds, and failure to achieve compliance, even if inadvertent, can have serious consequences. Ultimate responsibility for all matters relating to City financings and refinancings rests with the City’s Public Finance Manager (the “PFM”).

Typical examples of post issuance responsibilities include the following:

Post-Issuance Tax Compliance Requirements
 External Advisors / Documentation - The PFM and other appropriate City personnel shall consult with bond counsel and other legal counsel and advisors, as needed, throughout the Bond issuance process to identify requirements and to establish procedures necessary or appropriate so that the Bonds will continue to qualify for the appropriate tax status. Those requirements and procedures shall be documented in a City resolution(s), Tax Certificate(s) and/or other documents finalized at or before issuance of the Bonds. Those requirements and procedures shall include future compliance with applicable arbitrage rebate requirements, restrictions on the use of bond proceeds and bond financed facilities, and all other applicable post-issuance requirements of federal tax law throughout (and in some cases beyond) the term of the Bonds.

The PFM and other appropriate City personnel also shall consult with bond counsel and other legal counsel and advisors, as needed, following issuance of the Bonds to ensure that all applicable post-issuance requirements in fact are met. This shall include, without limitation, consultation in connection with future contracts with respect to the use of Bond-financed assets and future contracts with respect to the use of output or throughput of Bond-financed assets.

Whenever necessary or appropriate, the City shall engage expert advisors (each a “Rebate Service Provider”) to assist in the calculation of arbitrage rebate payable in respect of the investment of Bond proceeds.
 Role of the City as Bond Issuer - Unless otherwise provided by City resolutions, unexpended Bond proceeds shall be held by the City and the investment of Bond proceeds shall be managed by the PFM. The PFM shall maintain records and shall prepare regular, periodic statements to the City regarding the investments and transactions involving Bond proceeds.

If a City resolution provides for Bond proceeds to be administered by a trustee, the trustee shall provide regular, periodic (monthly) statements regarding the investments and transactions involving Bond proceeds.
 Arbitrage Rebate and Yield - Unless a Tax Certificate documents that bond counsel has advised that arbitrage rebate will not be applicable to an issue of Bonds:
 the City shall engage the services of a Rebate Service Provider, and the City or the Bond trustee shall deliver periodic statements concerning the investment of Bond proceeds to the Rebate Service Provider on a prompt basis;
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23  upon request, the PFM and other appropriate City personnel shall provide to the Rebate Service Provider additional documents and information reasonably requested by the Rebate Service Provider;
 the PFM and other appropriate City personnel shall monitor efforts of the Rebate Service Provider and assure payment of required rebate amounts, if any, no later than 60 days after each 5-year anniversary of the issue date of the Bonds, and no later than 60 days after the last Bond of each issue is retired; and
 during the construction period of each capital project financed in whole or in part by Bonds, the PFM and other appropriate City personnel shall monitor the investment and expenditure of Bond proceeds and shall consult with the Rebate Service Provider to determine compliance with any applicable exceptions from the arbitrage rebate requirements during each 6-month spending period up to 6 months, 18 months or 24 months, as applicable, following the issue date of the Bonds.

The City shall retain copies of all arbitrage reports and trustee statements as described below under “Record Keeping Requirements.”
 Use of Bond Proceeds - The PFM and other appropriate City personnel shall:
 monitor the use of Bond proceeds, the use of Bond-financed assets (e.g., facilities, furnishings or equipment) and the use of output or throughput of Bond-financed assets throughout the term of the Bonds (and in some cases beyond the term of the Bonds) to ensure compliance with covenants and restrictions set forth in applicable City resolutions and Tax Certificates;
 maintain records identifying the assets or portion of assets that are financed or refinanced with proceeds of each issue of Bonds;
 consult with Bond Counsel and other professional expert advisers in the review of any contracts or arrangements involving use of Bond-financed facilities to ensure compliance with all covenants and restrictions set forth in applicable City resolutions and Tax Certificates;
 maintain records for any contracts or arrangements involving the use of Bond-financed facilities as might be necessary or appropriate to document compliance with all covenants and restrictions set forth in applicable City resolutions and Tax Certificates;  meet at least annually with personnel responsible for Bond-financed assets to identify and discuss any existing or planned use of Bond-financed, assets or output or throughput of Bond-financed assets, to ensure that those uses are consistent with all covenants and restrictions set forth in applicable City resolutions and Tax Certificates.

All relevant records and contracts shall be maintained as described below.  Record Keeping Requirements - Unless otherwise specified in applicable City resolutions or Tax Certificates, the City shall maintain the following documents for the term of each issue of Bonds (including refunding Bonds, if any) plus at least three years:
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24  a copy of the Bond closing transcript(s) and other relevant documentation delivered to the City at or in connection with closing of the issue of Bonds;  a copy of all material documents relating to capital expenditures financed or refinanced by Bond proceeds, including (without limitation) construction contracts, purchase orders, invoices, trustee requisitions and payment records, as well as documents relating to costs reimbursed with Bond proceeds and records identifying the assets or portion of assets that are financed or refinanced with Bond proceeds;
 a copy of all contracts and arrangements involving private use of Bond-financed assets or for the private use of output or throughput of Bond-financed assets; and  copies of all records of investments, investment agreements, arbitrage reports and underlying documents, including trustee statements.

Continuing Disclosure Compliance
The City of West Sacramento (the “City”), the West Sacramento Financing Authority (the “Authority”) the IFD, the EIFD, and the Successor Agency to the West Sacramento Redevelopment Agency (the “Agency,” and collectively with the City and the Authority, IFD and the EIFD, the “Obligors”) are issuers in the public debt markets, and have undertaken and will undertake in the future to enter into agreements to provide annual reports and certain material event notices pursuant to continuing disclosure agreements and/or certificates executed at the time of each issuance of securities (each, a “CDA”) pursuant to Securities Exchange Commission Rule 15c2-12 (the “Rule”). A list of the currently effective CDAs is attached as Exhibit A. These Policies and Procedures are intended to provide a framework for consistent and accurate compliance by the Obligors with the CDAs.

The City of West Sacramento (the “City”), the West Sacramento Financing Authority (the “Authority”) and the Successor Agency to the West Sacramento Redevelopment Agency (the “Agency,” and collectively with the City and the Authority, the “Obligors”) are issuers in the public debt markets, and have undertaken and will undertake in the future to enter into agreements to provide annual reports and certain material event notices pursuant to continuing disclosure agreements and/or certificates executed at the time of each issuance of securities (each, a “CDA”) pursuant to Securities Exchange Commission Rule 15c2-12 (the “Rule”). A list of the currently effective CDAs is attached as Exhibit A. These Policies and Procedures are intended to provide a framework for consistent and accurate compliance by the Obligors with the CDAs.

Compliance Officer - The Obligors hereby designate the Public Finance Manager of the City (the “PFM”) as the officer responsible for compliance with continuing disclosure obligations under the CDAs. The PFM may from time to time delegate tasks and specific responsibilities under these Policies and Procedures to other staff members; however, the PFM shall remain responsible to ensure that all such delegated tasks and responsibilities are completed and fulfilled and the PFM shall monitor compliance by any such delegates. The PFM may convene a group of appropriate officials within the City, which may include the City Manager, Director of Administrative ServicesFinance, City Attorney, Director of Public Works, Risk Manager and others to form an ad hoc disclosure compliance group to the extent that the PFM determines that input is needed from such officials to complete required disclosures under the CDAs. The PFM shall maintain minutes of any such meetings and be responsible to confirm that group decisions and follow up tasks are implemented. The PFM may seek advice from legal counsel regarding issues that may arise in compliance with the requirements of a CDA, and shall consult with the City Attorney concerning retention of such counsel as needed.
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25 CDAs - The PFM shall maintain a file containing all CDAs entered into by each Obligor and including copies of all Annual Reports, Material Event Notices and Voluntary Disclosure filings, if any. The PFM shall be responsible for understanding the requirements of each CDA and for reviewing any new CDA proposed to be entered into by any Obligor for appropriateness and consistency with prior CDAs Third Party Provider(s).

The Obligors shall retain the services of one or more third party providers to assist in the preparation and timely filing of annual reports and required notices under the CDAs. Currently, Willdan Financial Services has been retained for such purpose.

The PFM shall from time to time review the services of any third-party provider and may determine to change firms and/or add a firm to provide such services. The third-party provider(s) shall provide at least the following services:
 Maintain a tickler system to provide advance notice to the PFM of upcoming filing requirements.
 Monitor Bloomberg or a similar service for any rating changes or other events which may trigger the requirement for filing a material event notice, and so inform the Finance Director.
 Provide drafts of annual reports for review to the PFM no later than thirty days prior to the due date for filing and of any Material Event Notices no later than five days prior to the due date for filing.
 Upon review and approval by the PFM, complete the filing of such reports and notices on EMMA or any other required filing platform in compliance with the requirements of the Rule.
 In the event a required filing is late or otherwise not filed, file an appropriate Notice of Failure to File as required by the Rule.
 Provide an annual compliance report to the PFM showing all filings made for each fiscal year, no later than 300 days after the close of each fiscal year.  Assist in setting up “tickler” systems with each trustee for the Obligors and with the EMMA system to notify the PFM of filing requirements
Calendar and Compliance Checks - The PFM shall ensure that each continuing disclosure filing deadline is appropriately calendared in the City’s common calendaring system (currently, Outlook) and shall coordinate with the trustees’ and the third-party provider(s)’ tickler systems so that there are to better ensure filings are not missed or late. The PFM shall independently check (by logging on to EMMA or other compliance platform, as appropriate) to ensure that required filings were actually made.

Training - The PFM shall work with legal counsel and the third-party provider(s) to obtain appropriate training as necessary to keep up to date on continuing disclosure compliance requirements and practices. The PFM shall seek opportunities to participate in outside training sessions, webinars or other continuing education opportunities for such purpose, consistent with the City’s budgetary constraints.
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26 GLOSSARY
 Accrued interest. Coupon interest accumulated on a bond or note since the last interest payment or, for a new issue, from the dated date to the date of delivery. Since interest on municipal bonds is payable semi-annually, every six months, when you buy a bond in midterm you are only entitled to the interest the bond earns after you buy it. The interest earned previously, the accrued interest, belongs to the seller. Some first-time bond buyers think this payment is a hidden charge or fee, not realizing that they will get it back in full at the next interest payment date as tax-free interest.
 Ad Valorem Tax. (It actually means "according to its value.") A state or local government tax based on the value of real property as determined by the county tax assessor.  Advanced Refunded Bonds. A municipality may sell a second bond issue at a lower interest rate cost, placing the proceeds of the issue in an escrow account from which the first issue's principal and interest will be repaid when due. See also ETM bonds.  AMBAC. AMBAC Indemnity Corp. The number two-ranked municipal bond insurance company.
 Amortization of Debt. The annual reduction of principal through the use of serial bonds or term bonds with a sinking fund.
 Arbitrage. The interest rate differential that exists when proceeds from a municipal bond - which is tax-free and carries a lower yield - are invested in taxable securities with a yield that is higher. The 1986 Tax Reform Act made this practice by municipalities illegal solely as a borrowing tactic, except under certain safe-harbor conditions.  Assessed Valuation. A municipality's worth in dollars based on real estate and/or other property for the purpose of taxation, sometimes expressed as a percent of the full market value of the community.
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27  Authority or Agency. A state or local unit of government created to perform a single activity or a limited group of functions and authorized by the state legislature to issue bonded debt.  Authorizing Ordinance. A law that when enacted allows the unit of government to sell a specific bond issue or finance a specific project.
 Average life. The average length of time an issue of serial bonds and/or term bonds with mandatory sinking funds and/or estimated prepayments is expected to be outstanding. It also can be the average maturity of a bond portfolio.
 Balloon Maturity. An inordinately large amount of bond principal maturing in any single year.

Also called a Term Bond.
 B.A.N. (Bond Anticipation Note). A short-term security, one year or less, used for interim financing to be repaid from the proceeds of a planned long-term bond issue.  Base Point (or Basis Point). One one-hundredth of one percent (1/100 % or 0.01 percent).

Thus 25 basis points equal one-quarter of one percent, 100 basis points equal one percent.

This is typical in-group, professional bond talk.
 Bearer Bond. A bond that has no identification of the owner of the security. It is presumed to be owned by the bearer or the person who holds it. It was much sought after because of the ease of transferring or gifting. All bonds issued prior to June 1983 were bearer bonds; since then, they have been issued in Registered Bond form.
 Bid. An offer to buy at a fixed price or yield. As opposed to Ask, which is an offering to sell.  Bond or note. A security whereby an issuer borrows money from an investor and agrees and promises, by written contract, to pay a fixed principal sum on a specified date (maturity date) and at a specified rate of interest.
 Bond. A unit of debt, $1000 of principal or par amount. For 200 years municipal bonds were sold in $1000 denominations. Since the mid-1970s the minimum bond denomination has been $5000; nevertheless, "A Bond" is bought, sold, referred to and priced as if it were $1000.  Bond Counsel or Bond Approving Attorney. A lawyer who writes an opinion on the bond or note as to its tax-exempt status and the authenticity of its issuance. In theory their opinion is meant to assure the bond investor, but they are paid by the issuer so it is not clear who their real client is.
 Bond Fund (Tax-Exempt). A portfolio of municipal bonds sponsored by registered investment companies that offer shares to investors either through (1) closed-end funds or unit investment trusts, which offer shares of a fixed portfolio of municipal bonds; or (2) openend or managed funds, which offer shares in a managed portfolio of municipal bonds whose size will vary as shares are purchased or redeemed.
 Bond Insurance. Insurance issued by a private insurance company for either an entire issue or specific maturities that guarantees to pay principal and interest when due. This will provide a credit rating of triple-A and thus a lower borrowing cost for the issuer. The four largest monoline bond insurers are AMBAC, FGIC, FSA and MBIA, which see.  Bond Premium. The amount at which a bond or note is bought or sold above its par value or face value without including accrued interest.
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28  Bonded debt. The portion of an issuer's debt structure represented by outstanding bonds, sometimes limited by constitutional or legislative restraints.  Book Entry. A system of security ownership in which the ownership is held as a computer entry on the records of a central company for its owner. The bond owner gets a computer printout as proof of ownership.
 Broker. Technically a broker is a bond trader in the secondary market buying from and selling to bond dealers. Its most common usage is as a description of a bond salesperson.  Callable bond. A bond or note that is subject to redemption at the option of the issuer prior to its stated maturity. The call date and call premium, if any, is stated in the offering statement or broker's confirmation.
 Certificates of Participation (COPs). A form of lease revenue bond that permits the investor to participate in a stream of lease payments, installment payments or loan payments relating to the acquisition or construction of specific equipment, land or facilities. In theory the certificate holder could foreclose on the equipment or facility financed in the event of default, but so far no investor has ended up owning a piece of a school house or a storm drainage system. A very popular financing device in California since Proposition 13 because COP issuance does not require voter approval. COPs are not viewed legally as "debt" because payment is tied to an annual appropriation by the government body. As a result, COPs are seen by investors as providing weaker security and often carry ratings that are a notch or two below an agency's general obligation rating.
 CFD. Community Facilities District. If a bond issue name has CFD in it you know it is a Mello-Roos Bond. The name refers to the taxing District that is set up to authorize the issuance of bonds, that will benefit from the financing, and from which special taxes will be collected for the bonds' repayment.
 Closed End Fund. A mutual fund of a fixed-dollar amount of issues traded on one of the exchanges not at its NAV, but priced based on perception and supply and demand. These funds can sell at a substantial discount or premium to their net asset value.  Conduit Bonds. Bonds whose repayment is the responsibility of the business or developer who benefits from the financing, rather than the issuer who only collects the taxes, fees or revenues and passes them on to the bondholder.
 Coupon. The detachable part of a bond that evidences the rate of interest due and the interest payment date. In the good old days of bearer bonds, coupons were detached from the bonds and presented to the paying agent for payment just as one might cash a government check.

Thus, the reference to wealthy persons as "coupon clippers."  Coupon rate. The specified annual interest rate payable to the bond or note holder as printed on the bond. This term is still used even though there are no coupon bonds anymore.  Covenant. A legally binding commitment by the issuer of municipal bonds to the bondholder.

An impairment of a covenant can lead to a Technical Default.  Coverage. This is the margin of safety for payment of debt service on a revenue bond that reflects the number of times the actual and/or estimated project earnings or income for a 12- month period of time exceeds debt service that is payable. 534
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29  Current Yield. The ratio of the coupon rate on a bond to the dollar purchase price expressed as a percentage. Thus, if you pay par or 100 cents on the dollar for your bond and the coupon rate is 6%, the current yield is 6%; however, if you paid 97 for your 6% discount bond the current yield is 6.186%. (.06 divided by 97). If you paid 102 for a 6% bond the current yield is

5.88% (.06 divided by 102).
 Cushion Bonds. Bonds selling at a premium are called "cushion" bonds because they cushion the price volatility in an up and down market. By definition, a premium bond has a higher-than-market coupon interest rate. The dollar price movement of a high interest rate bond is less than that of a lower interest rate bond of the same maturity when general interest rates move up or down a few basis points.
 Dated Date. (dtd.) The date carried on the face of a bond or note from which interest normally begins to accrue.
 Dealer. A corporation or partnership that buys and sells and maintains an ongoing position in bonds and/or notes. They are also authorized to underwrite new issues. Some large commercial banks are licensed to act as bond dealers.
 Debt Limited. The maximum statutory or constitutional amount of debt that the general obligation bond issuer can either issue or have outstanding at any time.  Debt Ratio. The ratio of the issuer's general obligation debt to a measure of value, such as real property valuations, personal income, general fund resources, or population.  Debt Service. Required payments for principal and interest.  Debt Service Reserve Fund. A bank trustee account established by the trust indenture and used as a backup security for an issuer's bonds. It usually amounts to one year's debt service, and can be drawn on by the Trustee in the event of an impairment of the Trust indenture.  Default. Failure to pay in a timely manner principal and/or interest when due, or a Technical Default, the occurrence of an event as stipulated in the Indenture of Trust resulting in an abrogation of that agreement. A Technical Default can be a warning sign that a default on debt service is coming, but in reality, actual debt service interruption does not always occur if the problems are resolved in time. A Technical Default will almost always drive down the price of a bond in secondary market trading.
 Defeased bonds. Refunded bonds for which the payment of principal and interest has been assured through the structuring of a portfolio of government securities, the principal and interest on which will be sufficient to pay debt service on the refunded, outstanding bonds.

When a bond issue is defeased, the claim on the revenues of the issuer is usually eliminated.

See also ETM bonds.
 Delinquent Taxes. Property taxes that have been levied but remain unpaid on and after the due date. In California, December 10 and April 10. Special taxes and assessments are often due on these dates as well. When tax delinquencies exceed 5% the Bond Advisor places the issue on its internal Bond Watch.
 Delivery. For bonds bought or sold in the secondary market, delivery - and payment - must be in three business days. For new issues, the time when payment is made to, and the executed bonds and notes are received from, the issuer. New-issue delivery takes place several weeks after the sale to allow the bonds and notes to be printed and signed. 535
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30  Denomination. The face or paramount - nominally $1000 or $5000 but can be $100,000 or more in the case of a note - that the issuer promises to pay at a specific bond or note maturity.  Direct debt. In general obligation bond analysis, the amount of debt that a particular local unit of government has incurred in its own name or assumed through annexation.  Discount. The amount of dollars by which market value of a bond is less than par value or face value.
 Discount Bonds. Bonds which sell at a dollar price below par in which case the yield would exceed the coupon rate. The difference between the discount price and the maturity price is subject to federal capital gains tax except in the case of Original Issue Discount Bonds, which see.
 Discount note. Non-interest-bearing note sold at a discount and maturing at par. A U.S.

Treasury Bill is a discount note.
 Dollar Bond. Generally, a term bond that is quoted and traded in dollars rather than in yieldto-maturity. They are well known issues of well-known names in the market.  Double-barreled Bond. A bond with two distinct pledged sources of revenue, such as earmarked monies from a specific enterprise or aid payment, as well as the general obligation taxing powers of the issuer. A California GO Water Resources Bond would be a good example.
 Escrow Fund. A fund that contains monies that only can be used to pay debt service.  ETM. Escrowed to Maturity. An Advanced Refunded bond. When interest rates fall, an issuer may choose to sell a new issue called a refunding issue and use the proceeds of the second issue to pay off the original issue, much the same as a home owner refinancing a mortgage in an effort to save interest costs. The proceeds of the refunding issue are used to structure a portfolio of U.S. government securities, the principal and interest payments of which exactly match the principal and interest payments of the refunded bonds. The portfolio is placed in escrow at the paying agent and the bond issue is said to be fully defeased and escrowed to maturity. In actual practice the bonds are usually called on the first call date. Because of the U.S. Treasury backing, ETM bonds are considered the safest municipal bonds available and trade on the market as a rich triple-A.
 Feasibility Study. A financial study provides by the issuer of a revenue bond that estimates service needs, construction schedules, and most importantly, future project revenues and expenses used to determine the financial feasibility and creditworthiness of the project to be financed.
 FGIC. Financial Guaranty Insurance Co. The number three-ranked municipal bond insurer.  Financial Advisor. Generally, a bank, investment-banking company or independent consulting firm that advises the issuer on all financial matters pertaining to a proposed issue and is not part of the underwriting syndicate.
 Fiscal Agent. Also known as the Paying Agent, the bank, designated by the issuer, to pay interest and principal to the bondholder.
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31  Fiscal Year. A 12-month time horizon by which state and local governments annually budget their respective revenues and expenditures. Usually not the calendar year, January to December, but often July to June.
 Flow of Funds. The annual legal sequence by which enterprise revenues are paid out for operating and maintenance costs, debt service, sinking fund payments, and so on.  FSA. Financial Security Assurance Inc. The number four-ranked municipal bond insurer.  Full Faith and Credit. The pledge of "the full faith and credit and taxing power without limitation as to rate or amount." A phrase used primarily in conjunction with General Obligation bonds to convey the pledge of utilizing all taxing powers and resources, if necessary, to pay the bond holders.
 General Obligation Bond. (G.O.) A bond secured by a pledge of the issuer's taxing powers (limited or unlimited). More commonly the general obligation bonds of local governments are paid from ad valorem property taxes and other general revenues. Considered the most secure of all municipal debt. Limited in California by Proposition 13 to debt authorized by a vote of two thirds of voters in the case of local governments or a simple majority for state issuance.  General Property Tax. A tax levied on real estate and personal property.  Gross Debt. The sum total of a state's or local government's debt obligations.  Gross Revenues. Generally, all annual receipts of a revenue bond issuer prior to the payment of all expenses. Normally only Net Revenues are pledged to the repayment of bonds.  Indenture of Trust. A legal document describing in specific detail the terms and conditions of a bond offering, the rights of the bondholder, and the obligations of the issuer to the bondholder; such document is alternatively referred to as a bond resolution.  Industrial Development Bonds. (IDBs) also called Industrial Revenue Bonds (IRBs). Used to finance facilities for private enterprises, water and air pollution control, ports, airports, resource-recovery plants, and housing, among others. The bonds are backed by the credit of the private corporation borrower rather than by the credit of the issuer. Also known as Conduit Bonds. Private purpose bonds are limited by federal law to $50 times the state's population on an annual basis.
 Interim Borrowing. (1) Short-term loans to be repaid from general revenues or tax collections during the current fiscal year (TRANs or RANs); (2) short-term loans in anticipation of bond issuance or grant receipts (BANs).
 Intermediate Range. Bonds maturing in 5 to 15 years.
 Investment Banker. A firm engaged in raising capital for an issuer. Participates as the middleman in purchasing securities from the issuer and in selling the same securities to investors.
 Issuer. A state or local unit of government that borrows money through the sale of bonds and/or notes.
 Investment Grade. Bond issues that the three major bond rating agencies, Moody's, Standard & Poor's, and Fitch rate BBB or Baa or better. Many fiduciaries, trustees, some mutual fund managers can only invest in securities with an investment grade rating. 537
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32  Junk Bonds. Most non-rated bonds and bonds rated below investment grade.  Joint Powers Authority (JPA). A JPA is formed when it is to the advantage of two or more public entities with common powers to consolidate their forces to acquire or construct a jointuse facility. Their bonding authority and taxing ability is the same as their powers as separate units.
 Lease-Rental Bond. Bonds whose principal and interest are payable exclusively from rental payments from a lessee. Rental payments are often derived from earnings of an enterprise that may be operated by the lessee or the lessor. Rental payments may also be derived from taxes levied by the lessee. Also see Certificates of Participation.  Legal Opinion. A written opinion from bond counsel that an issue of bonds was duly authorized and issued. The opinion usually includes the statement, "interest received thereon is exempt from federal taxes and, in certain circumstances, from state and local taxes."  Letter of Credit. A form of supplement or, in some cases, direct security for a municipal bond under which a commercial bank or private corporation guarantees payment on the bond under certain specified conditions.
 Level Debt Service. Principal and interest payments that, together, represent more or less equal annual payments over the life of the loan. Principal may be serial maturities or sinking fund installments.
 Lien. A claim on revenues, assessments or taxes made for a specific issue of bonds.  Limited Tax Bond. A bond secured by a pledge of a tax that is limited as to rate or amount.  Marks-Roos Bonds. The State Legislature enacted the Marks-Roos (named after its legislative sponsors) Local Bond Pooling Act of 1985 to facilitate the financing of local government facilities by bond bank pools funded by bond proceeds. The pool, formed under a Joint Powers Authority, can buy any type of legally issued debt instrument within or without its geographic area. The idea was to save money through economies of scale by selling one large bond issue to finance several small projects. This in fact has not always happened. Many issues were high yielding, unrated, junk bonds that benefited only the bond underwriter.

Several Marks-Roos issues have defaulted and are under investigation by the Securities and Exchange Commission. Prospective investors should find out what sort of loans the pooled fund will make before buying such deals.
 Maximum Annual Debt Service. The maximum amount of principal and interest due by a revenue bond issuer on its outstanding bonds in any future fiscal year. This is sometimes the amount to be maintained in the Debt Service Reserve Fund.  MBIA. MBIA Insurance Corp. The first-ranked municipal bond insurer, based on insurance in force and market penetration.
 Mello-Roos Bonds. The Mello-Roos (named for its legislative sponsors) Community Facilities District Act of 1982 established another method whereby almost every municipal subdivision of the state may form a special, separate district to finance a long list of public facilities by the sale of bonds and finance certain public services on a pay-as-you-go basis.

These Community Facilities Districts are formed and bond issues authorized by a two-thirds vote of the property owners in the district. Typically, the only voters in a district are one or more real estate developers who own or have an option on all of the land in the district. These 538
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33 land-based financings were nicknamed "dirt bonds" by the Bond Advisor years ago. Bonds are sold to finance facilities that can include schools, parks, libraries, public utilities and other forms of infrastructure. The Districts may provide public services that include police and fire protection, recreation programs, area maintenance, library services, flood and storm drainage.

Bonded debt service and/or the public services are paid for by special taxes levied on the real property within the district. As the developer subdivides and sells off the land the new property owner assumes the tax burden. Tax delinquencies can lead to fines and penalties and ultimately foreclosure and sale. The ultimate security for Mello-Roos bonds is the value of the real property being taxed, consequently a provision in the law requires the appraised value of the land be three times the bonded debt. Recent foreclosure sales have cast doubts on the skills of the appraisers, and underscore the riskiness of some of this debt when a severe real estate slump hits developers.
 Mortgage Revenue Bond. A bond backed by a lien on the monthly payments of a large pool of mortgages, usually issued by a state or local housing authority.  Municipal Bond. Bonds issued by any of the 50 states, the territories and their subdivisions, counties, cities, towns, villages and school districts, agencies, such as authorities and special districts created by the states, and certain federally sponsored agencies such as local housing authorities. Historically, the interest paid on these bonds has been exempt from federal income taxes and is generally exempt from state and local taxes in the state of issuance.

There are approximately $1.3 trillion municipal bonds outstanding and they generate about $50 billion tax-free interest income each year.
 Municipal Futures. A municipal index futures contract that has been traded at the Chicago Board of Trade since June 11, 1985. The futures contract is based on an index, known as The Bond Buyer Municipal Bond Index, composed of 40 bonds which are priced at the close of trading each day. This is no market for amateur speculators; it is used primarily by professional money managers to hedge their municipal portfolios.
 Municipal Notes. Short-term municipal obligations, generally maturing in one year or less.

The most common types are (1) bond anticipation notes (BANs), (2) revenue anticipation notes (RANs), (3) tax anticipation notes (TANs), (4) grant anticipation notes, (5) project notes, and (6) construction loan notes. Also see TRANs.
 Municipal Securities Rulemaking Board (MSRB). An independent self-regulatory organization established by Congress in 1975 which is charged with primary rulemaking authority - under the SEC - over dealers, dealer banks, and brokers in municipal securities.

Its board is stacked against individual investors and it is little more than a sweetheart union for the municipal bond industry.
 Net Asset Value (NAV). The market value of all the bonds in a mutual fund portfolio divided by all the outstanding shares.
 Net Bonded Debt. Gross general obligation debt less self-supporting general obligation debt, housing bonds, water revenue bonds, etc.
 Net Interest Cost (NIC). Generally speaking, issuers award competitive bond sales to the underwriter bidding the lowest NIC. It represents the average coupon rate weighted to reflect the time until repayment of principal and adjusted for the premium or discount.  Net Revenue Available for Debt Service. Usually, gross operating revenues of an enterprise less operating and maintenance expenses but exclusive of depreciation and bond principal 539
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34 and interest. Net revenue as thus defined is used to determine coverage on revenue bond issues.
 1915 Act, 1911 Act Bonds. The California name for Special Assessment bonds or Improvement Bonds, named, obviously, for the years in which the enabling legislature was approved. A special district is formed, public improvements (streets, curbs, gutters, water or sewer systems, etc.) are constructed, and assessments are levied on all the properties in the district in proportion to the benefit derived from the improvement. Bonds are sold - without voter approval - and are repaid from the special assessments received. '15 Acts are callable on any interest payment date and are usually dated on the 2nd of the month instead of the 1st or the 15th. '11 Act bonds are payable from the assessments from one specific property and have a prior lien on that property in the event of default.  Official Statement (OS) or Offering Circular (OC). A document (prospectus) circulated for an issuer prior to a bond sale with salient facts regarding the proposed financing. There are two OSs, the first known as the preliminary, or "red herring" - so named not because it smells but because some of the type on its cover is printed in red - and it is supposed to be available to the investor before the sale. The final OS must be sent to the purchaser before delivery of the bonds.
 Open-End Fund. This is the standard municipal bond fund. It has no fixed number of bonds in its portfolio. Rather it buys issues as investors buy shares in the fund, sells issues as investors redeem shares. The tax-free dividend is dependent on a pro-rata share of the interest earned, and this varies as the income of the portfolio varies. The fund managers guarantee to buy back shares at their Net Asset Value, the market value of all the bonds in their portfolio as determined at the close of each business day. This NAV per share can be more or less than the original purchase price. Open-end funds have no maturity date so ultimately, they must be sold to return principal.
 Original Issue Discount. Some maturities of a new bond issue that have an offering price substantially below par; the appreciation from the original price to par over the life of the bonds is treated as tax-exempt income and is not subject to capital gains tax. See also Zero-Coupon Bond.
 O.T.C. Over the Counter. The buying and selling method used in the secondary market for municipal bonds (and unlisted stocks). Not on an exchange.  Overlapping Debt. The proportionate share of the general obligation bonds of local governments located wholly or in part within the limits of the reporting unit of government that must be borne by property owners within the unit.
 Par Value. The face value or principal amount of a bond, usually $5,000 due the holder at maturity. It has no relation to the market value. For pricing purposes, it is considered 100.  Parity Bonds. Revenue bonds that have an equal lien on the revenues of the issuer.  Paying Agent. Also, Fiscal Agent. Generally, a bank that performs the function of paying interest and principal for the issuing body.
 Premium. The amount, if any, by which the price exceeds the principal amount (par value) of a bond. Its current yield will be less than its coupon rate.  Price to Call. The yield of a bond priced to the first call date rather than maturity. 540
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35  Primary Market. The new issue market
 Principal. The face value of a bond, exclusive of interest.  Put Bond. A bond that can be redeemed on a date or dates prior to the stated maturity date by the bondholder. Also known as an option tender bond.  Qualified Legal Opinion. Conditional affirmation of the legal basis for the bond or note issue.

The average investor should avoid any but the strongest opinion by the most recognized bond approving attorneys.
 RANs. Revenue anticipation notes.
 Rate Covenant. A legal commitment by a revenue bond issuer to maintain rates at levels to generate a specified debt-service coverage.
 Ratings. Various alphabetical and numerical designations used by institutional investors, Wall Street underwriters, and commercial rating companies to give relative indications of bond and note creditworthiness. Standard & Poor's and Fitch Investors Service Inc. use the same system, starting with their highest rating of AAA, AA, A, BBB, BB, B, CCC, CC, C, and D for default. Moody's Investors Services uses Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C, and D. Each of the services use + or - or +1 to indicate half steps in between. The top four grades are considered Investment Grade Ratings
 Red Herring. A preliminary offering statement, subject to final change and update upon completion of sale of bonds. The name comes not from the smell but from the red type along the side on the cover.
 Redemption. Process of retiring existing bonds prior to maturity from excess earnings or proceeds of refunding bonds. It also refers to redeeming shares in a mutual fund by selling the shares back to the sponsor.
 Redevelopment Agency (Redev.). A legislatively established subdivision of government established to revitalize blighted and economically depressed areas of a community and to promote economic growth. Tax Allocation Bonds are issued to pay the cost of land and building acquisition and their redevelopment and are repaid by the incremental increase in tax revenues produced by the increase assessed value of the area after redevelopment. Redev.

Agencies may also sell Housing Mortgage Revenue Bonds to finance housing units within the area, a fixed percentage of which must be for low-cost housing.  Refunding Bond. The issuance of a new bond for the purpose of retiring an already outstanding bond issue.
 Registered Bond. A non-negotiable instrument in the name of the holder either registered as to principal or as to principal and interest.
 Repo. A financial transaction in which one party "purchases" securities (primarily U.S.

Government bonds) for cash and simultaneously the other party agrees to "buy" them back at some future time according to specified terms. Municipal bond and note issuers have used repos to manage cash on a short-term basis. (Known formally as repurchase agreements.)  Revenue Bond. A municipal bond whose debt service is payable solely from the revenues derived from operating the facilities acquired or constructed with the proceeds of the bonds. 541
Administrative Policy IV-A-5
Debt Management
(continued)
36  Secondary Market. The trading market for outstanding bonds and notes. This is an O.T.C. market, a free form negotiated method of buying and selling, usually conducted by telephone or computer. Traders buy and sell for their own inventory. As many as $2 billion of issues trade each day.
 Security. The legally available revenues and assets that are used to pay the bond holders.

The key component that supports debt service.
 Self-Supporting Bonds. Bonds payable from the earnings of a municipal utility enterprise.  Serial Bond. A bond of an issue that features maturities every year, annually or semiannually over a period of years, as opposed to a Term Bond, which is a large block of bonds maturing in a single year.
 Short term. Bonds or notes sold on an interim basis with tax-exempt securities for a period of from one to five years.
 Sinking Fund. Money set aside on a periodic basis to retire term bonds at or prior to maturity.  Sinking Fund Schedule. A schedule of payments required under the original revenue bond resolutions to be placed each year into a special fund, called the sinking fund, and to be used for retiring a specified portion of a term bond issue prior to maturity.  Special Assessment Bond. A bond secured by a compulsory levy of special assessments, as opposed to property taxes, made by a local unit of government on certain properties to defray the cost of local improvements and/or services that represents the specific benefit to the property owner derived from the improvement. In California these are usually 1915 Act or 1911 Act Bonds.
 Street Name. The registration of bonds in the name of a dealer or other third party instead of the owner, usually for custodial or safe keeping purposes. This also facilitates buying and selling from the account. The bond holder gets a monthly statement of the bonds in the account.
 Super Sinker. A term maturity in a housing mortgage bond issue. These will be the first bonds to be called, on any interest payment date, from the proceeds of prepaid mortgages. The average mortgage is prepaid though refinancing or sale in 6.8 years. While it is likely, it cannot be guaranteed that a super sinker will be called; as a result, they are priced as a long-term bond but are most likely to be a short-term maturity. It is a way to get a higher yield for a shortterm bond.  Swap. The exchange of one bond for another. Generally, the act of selling a bond to establish an income tax loss and replacing the bond with a new item of comparable value.  TAN. Tax Anticipation Note.
 Tax Base. The total resource of the community that is legally available for taxation.  Taxable Equivalent Yield. The yield an investor would have to obtain on a taxable corporate or U.S. government bond to match the same after-tax yield on a municipal bond. This emuni.com site has a taxable equivalent yield table for California residents. 542
Administrative Policy IV-A-5
Debt Management
(continued)
37  Tax Allocation Bond. Bonds issued in conjunction with a redevelopment project. The taxes pledged to their repayment come from the increase of assessed value over and above a preestablished base. The redevelopment creates this added value, known as the tax increment.  Tax-exempt Bond. Bonds exempt from federal income, state income, or state tax and local personal property taxes. This tax exemption results from the theory of reciprocal immunity:

States do not tax instruments of the federal government and the federal government does not tax interest of securities of state and local governments.  Tax Increment. The increase in property taxes created by the growth of the assessed value of taxable property within a defined area over and above a pre-established base value. Tax Increment is produced by the increased assessed value of the area resulting from the completion of capital projects, the construction of infrastructure, private development, and through the natural growth in assessed values from appreciation of real estate prices.  Tax Increment Financing District. Financing Districts established pursuant to the Government Code to finance infrastructure and capital projects of communitywide significance through the use of Tax Increment revenues. Tax Increment Financing Districts may finance projects using pay-as-you-go financing or through the use of Tax Increment Bonds that are repaid with Tax Increment revenues.

 Technical Default. Failure by the issuer to meet the requirements of a bond covenant. These defaults do not necessarily result in losses to the bond holder. The default may be cured by simple changes of policy or actions by the issuer.
 Tender. The act of offering bonds to a sinking fund.
 Term Bond. A large block of bonds of long maturity. They may be part of a serial Bond issue; there may be more than one term bond in an issue or a single maturity. Some are subject to a sinking fund redemption.
 Territorial Bonds. Issued by Puerto Rico, the Virgin Islands, etc. Interest on this debt is exempt from state income taxes because of Congressional action that provides these territories with such benefits.
 Thin Market. The scarcity of secondary market supply or few bid or offer quotes for a particular security.
 Tombstone. An advertisement placed for information purposes, after bonds or notes are sold, that describes certain details of the issue and lists the managing underwriters and the members of the underwriting syndicate.
 TRAN. Tax and Revenue Anticipation Note.
 Trading Position. The holding of bonds in inventory by the dealer for purposes of buying or selling.
 Trustee. A bank designated as the custodian of funds and official representative of bondholders. Trustees are appointed to insure compliance with the trust indenture and represents bondholders to enforce their contract with the issuer.  Underlying Debt. The general obligation bonds of smaller units of local government within a given issuer's jurisdiction.
543
Administrative Policy IV-A-5
Debt Management
(continued)
38  Underwriter. An agreement to purchase an issuer's unsold securities at a set price, thereby guaranteeing the issuer proceeds and a fixed borrowing cost.  Unit Investment Trust (UIT). A mutual fund of a fixed number (20 to 30) of different issues in a portfolio placed in a trust. Units or shares are sold in the trust and each unit receives a proportionate amount of the tax-exempt interest earned by the bonds. As the bonds mature or are called, principal is returned to the investor. UITs, unlike other mutual funds, have a finite life.
 Variable Rate Bond. A bond whose yield is not fixed but is adjusted periodically according to a prescribed formula.
 Yield Curve. Graph depicting the relationship between yields and current maturity for securities with identical default risk.
 Yield-to-call. Return available to call date taking into consideration the current value of the call premium, if any.
 Yield-to-maturity. (YTM) Return available taking into account the interest rate, length of time to maturity, and price paid. It is assumed that the coupon reinvestment rate for the life of the bonds will be the same as the yield-to-maturity.
 Zero-coupon Bonds. A deep discount municipal bond on which no current interest is paid.

Instead, at bond maturity, the investor receives compounded interest at a specified rate. The difference between the discount price at purchase and the accreted value at maturity is not taxed as a capital gain but is considered tax-exempt interest. Widely used for college savings bonds.
544

WEST SACRAMENTO ENHANCED INFRASTRUCTURE
FINANCING DISTRICT NO. 1 (“EIFD”) BUDGET POLICY
Since its inception, the City of West Sacramento has leveraged tax-increment financing tools to invest in infrastructure and economic development activities. The City has invested tax-increment revenues to eliminate physical and market barriers to attract private and public investments that have vastly improved the community and wellbeing of residents, businesses and visitors.

Enhanced Infrastructure Financing District No. 1 (“EIFD” or “District”) enables the City to continue investing in community revitalization and economic development efforts. The EIFD will be an important tool for the City to advance transitioning many heavy industrial areas to mixed-use destinations that celebrate the City’s waterfront location, to enhance the City’s transportation network, and to improve public facilities.

Consistent with Government Code Sections 53398.50-53398.88 (EIFD Law), EIFD revenues and bond proceeds are eligible to fund projects with demonstrated communitywide significance that provide benefits to the District or the surrounding community. As provided in the EIFD Infrastructure Financing Plan (“IFP”), the District formation document, EIFD revenues will fund projects that advance the City’s current and future anticipated adopted General Plan, specific plans, facilities master plans, capital projects, development agreements, development projects, and related planning and economic development documents (“Planning Documents”).

The EIFD Budget Policy is intended as general budget and priority guidance for EIFD revenues and is not an investment or economic development strategy. The Budget Policy may be modified in the future with City Council and EIFD Public Financing Authority approval of investment strategies for the District.

EIFD No. 1 Goals and Eligible Improvements
Consistent with the City adopted Community Investment Action Plan (“CIAP”), EIFD investments in infrastructure, community and economic development activities will result in private investment to improve the local economy, create new revenue for the City, and enhance quality of life. As established in the District IFP, EIFD goals include:
 Assisting with the infrastructure investment gap, by allocating tax increment to provide a stable source of financing for the City’s Capital Improvement Plan (“CIP”), to strategic infrastructure projects, and to other eligible EIFD uses.  Provide a stable source of revenue for capital investment.  Leverage private investment.
 Support land assembly and environmental cleanup.
 Leverage outside funds, such as federal and state grants.  Use in conjunction with other financing district revenues, such as Community Facility Districts and Benefit Assessment Districts.
 Support adaptive reuse and creative reuse of existing real estate assets.  Induce private investment where it would otherwise not occur.  Support projects with a community-wide or regional benefit.

The EIFD IFP identifies facilities planned for District investment. These improvements may change over time as EIFD Law continues to evolve and as the City updates its Planning Documents. Projects will be prioritized that best accomplish EIFD Goals as described above and will be considered as part of the City Council’s annual Strategic Plan. Evaluation criteria will accompany EIFD funding requests as part of the City’s Biennial Budget process.

EIFD No. 1 Revenue Allocation
To maximize investment opportunities, EIFD tax-increment revenues will be directed to the EIFD Fund to pay for annual debt service and coverage of potential EIFD bond issuances and administrative activities related to District implementation (e.g., auditing, annual reporting, bond and legal counsel). All other tax increment revenues will be directed to the Community Investment Fund (Measure G) to pay for facilities and activities, consistent with the criteria established for EXHIBIT B TO RESOLUTION 24-85
545
Measure G funding and as outlined in the Community Investment Fund Policy. Improvements funded with EIFD bond proceeds will be recommended by the City Council and considered by the EIFD Public Financing Authority (“Authority”) for approval.

Improvements funded with Measure G revenues will be considered by the City Council through the City’s Biennial Budget process, and vetted using the Measure G Scorecard, a project evaluation tool.

Contingency Declaration
If, in connection with the issuance of bonds or other debt obligations by the EIFD, and if required by the terms of the issuance or sale of such obligations, the City pledges to allocate tax increment to secure the payment of such obligations, the annual allocation of tax increment by the City under the Infrastructure Financing Plan (“IFP”) shall be contingent on the EIFD’s having applied tax increment only for authorized purposes under the IFP and EIFD Law, including the payment of debt service on bonds or other debt obligations issued to accomplish such purposes, and in no event may any future allocation of tax increment revenue be accelerated.

Irrevocable Transfer
If, in connection with the issuance of bonds or other debt obligations by the EIFD, and if required by the terms of the issuance or sale of such obligations, the City shall provide any authorization necessary to allow for the irrevocable transfer (subject to contingency required by applicable law) of any such tax increment revenues to the EIFD for the payment of debt service (and including any amounts necessary for a reserve fund, other credit enhancements, or to satisfy any other financing terms and conditions) on the bonds or other debt obligations. 546
Description Total Cost* EIFD/IFD Measure

E/G/K/V
CFD/
Assmnt. Grants Impact
Fees
Entrprs.

Fund Type**

TRANSPORTATION
General Transportation
Broadway Bridge $200,000,000 X X 1
Enterprise Bridge $200,000,000 X X X X 1
West Side Rail Relocation $100,000,000 X X 1
Stone Lock Transit/Bicycle/Pedestrian Bridge $100,000,000 X X X X 1 Downtown/Riverfront Streetcar-City Share $35,000,000 X X X 1 Washington Streetcar Extension $30,000,000 X X X X X 1
Pioneer Bluff Streetcar Extension $30,000,000 X X X X X 1 C Street Bridge-City Share $10,000,000 X X X 1
Stonegate Widening $1,000,000 X X 1
Signals and Lighting
Stillwater/Reed Signal Installation $350,000 X X 1
Merkley/Jefferson Intersection Upgrades $150,000 X X 1
West Capitol Streetlight Installation $100,000 X X 1
Bicycle, Pedestrian & Transit Facilities
I Street Bridge Deck Conversion $10,000,000 X X 1
Sycamore Trail Overpass & Extension $9,000,000 X X X 1
Citywide Bike Lane Gap Closure $600,000 X X X 1
Linden Sidewalk Extension $500,000 X X 1
Roadway Capacity Improvements
Harbor & Industrial Intersection Realignment $16,500,000 X X X 1 I-80 & Enterprise Interchange Improvements $12,000,000 X X 1 Pioneer Bluff-South River Road Improvements $10,000,000 X X X X 1 I-80 & Reed Interchange Improvements $9,700,000 X X 1
US-50 & Jefferson Interchange Improvements $8,000,000 X X 1 West Capitol Avenue Streetscape Phase 2 $7,000,000 X X 1 Grand Street Extension & Rail Crossing $6,000,000 X X 1 Tower Bridge Gateway Phase 3 $5,000,000 X X 1
Sacramento Avenue-6th Street Streetscape $5,000,000 X X 1 Village Parkway Extension-Gregory to Jefferson $4,700,000 X X X 1 Merkley/El Rancho/Casa Street/City Hall Exit Realignment $3,000,000 X X 1 Stone Boulevard Extension $3,000,000 X X X X 1
US-50 & South River Interchange Improvements $2,500,000 X X 1 Riverfront Street Extension $2,000,000 X X X 1
Safety: Railroad Signal & Surface Improvements
Jefferson/West Capitol/Park Lighting Improvements $650,000 X X X 1 Park & Stone Rail Crossing Improvements $100,000 X X 1
Road Reconstruction
Citywide Road Reconstruction $5,500,000 X X X X 1
Harbor & Industrial Road Reconstruction $3,500,000 X X 1 Westfield Village Road Reconstruction $2,500,000 X 2
ADA Road Improvements $1,000,000 X X 2
State Streets Road Reconstruction $1,000,000 X 2
Subtotal, Transportation $835,350,000

PARKING FACILITIES
Civic Center Parking Garage $15,000,000 X X 1
Bridge District Parking Garage $15,000,000 X X 1
Grand Gateway Parking Garage $15,000,000 X X 1
Washington Square Parking Garage $15,000,000 X X 1
Riverfront/Downtown Parking Lots $10,000,000 X X 1
Urban Parking Area Parking Meters $5,000,000 X X 1
Subtotal, Parking $75,000,000

WATER SYSTEM IMPROVEMENTS
Southport Industrial Park Water System Enhancement $9,300,000 X X 1 PSIP Industrial Area Water System Enhancement $8,100,000 X X 1 Port Industrial Area Water System Enhancement $3,200,000 X X 1 Riverside Center Water System Enhancement $1,300,000 X X 1 South State Streets Water Main Replacement $3,100,000 X X 1 Park Boulevard Transmission Main $1,500,000 X X 1
GIS Infrastructure Surveying & Mapping $1,050,000 X X 1 Carbon Filter Media Replacement $800,000 X X 1
Citywide Water System Reconstruction $650,000 X X 1
West Capitol Water Services Replacement $500,000 X X 1
McGowan Bridge Water Main Connection $450,000 X X 1
Water Meter Retrofits $200,000 X X 1
Subtotal, Water $30,150,000
EIFD No. 1 Project List
Attachment 2
547
Description Total Cost* EIFD/IFD Measure

E/G/K/V
CFD/
Assmnt. Grants Impact Fees
Entrprs.

Fund Type**

SEWER SYSTEM IMPROVEMENTS
Gravity System Rehabilitation/Repair $11,750,000 X X 1
Wastewater Treatment Plant Demolition $7,000,000 X X 1
Pump System Replacement $2,100,000 X X 1
C Street Sewer Line Replacement $1,800,000 X X 1
Subtotal, Sewer $22,650,000

STORM DRAINAGE SYSTEM IMPROVEMENTS
North Area Storm Drainage Improvements $5,000,000 X X X 1 Subtotal, Storm Drainage $5,000,000

CITY BUILDINGS & FACILITIES
Corporation Yard Replacement $29,000,000 X X X 1
Police Station Replacement $25,000,000 X X X 1
Subtotal, City Buildings $54,000,000

PARKS & RECREATIONAL FACILITIES
Park Development
Central Park $25,000,000 X X X 1
Bryte Park Phase 3 $17,500,000 X X X 1
Westmore Oaks Park $15,000,000 X X X 1
Existing Park ADA Improvements $14,000,000 X X X 1
Washington/Broderick Park $9,500,000 X X X 1
Heritage Oaks Park $5,000,000 X X X 1
Arlington Oaks/Barge Canal Park $4,000,000 X X X 1
Existing Park Facility Improvements $3,000,000 X X X 1
Play Structure Replacement $3,000,000 X X X 1
Shade Structures $2,000,000 X X X 1
Recreational Facilities
Recreation Center Phase 2 $3,000,000 X X 1
Community Center Phase 2 $1,500,000 X X 1
Recreation Trails
River Walk Extension-Mill Street to Stone Lock $7,000,000 X X X X 1 River Walk Extension-North Levee $6,000,000 X X X X 1
Clarksburg Branch Line Trail Extension $5,000,000 X X X X 1 Southport Levee Nature Trail $5,000,000 X X X X 1
Main Drain Trail $3,000,000 X X X X 1
Deep Water Ship Channel Trail $3,000,000 X X X X 1
Existing Trail Lighting Installation $2,000,000 X X X X 1 Lower Northwest Interceptor Bike Trail $1,300,000 X X X 1 Open Space Improvements
Southport Levee Setback Space $8,750,000 X X X 1
Seaway/Lake Washington $5,000,000 X X X 1
North Levee/Broderick Boat Ramp $5,000,000 X X X 1
Subtotal, Parks $153,550,000

ECONOMIC DEVELOPMENT & OTHER PROJECTS
Washington District Infrastructure $50,000,000 X X X X X 1 Pioneer Bluff Infrastructure $50,000,000 X X X X X 1
Port North Terminal Infrastructure $50,000,000 X X X X X 1 Seaway Infrastructure $25,000,000 X X X X X 1
Stone Lock Infrastructure $25,000,000 X X X X X 1
Affordable Housing-Gap Financing $20,000,000 X X X X 1
Sustainable Communities/TOD Projects $20,000,000 X 1
Stone Lock Facility Retrofit & Reuse $20,000,000 X X X X X 1 West End Infrastructure $15,000,000 X X X X X 1
Iron Triangle Infrastructure $15,000,000 X X X X X 1
Broadband Improvements $10,000,000 X X X X 1
Brownfield Remediation $10,000,000 X X 1
Industrial Building Improvements $10,000,000 X 1
Port Industrial Area Infrastructure $10,000,000 X X X X X 1 Public Art $5,000,000 X X X X X 1
Grand Gateway Infrastructure $5,000,000 X X X X X 1
PSIP Industrial Area Infrastructure $5,000,000 X X X X X 1 Riverside Commerce Center Infrastructure $5,000,000 X X X X X 1 Southport Industrial Park Infrastructure $5,000,000 X X X X X 1 The Rivers Phase 2 Infrastructure $5,000,000 X X X X X 1 Subtotal, Economic Development/Other $360,000,000
Total $1,535,700,000
* Costs are preliminary and reflect 2017 dollars.
** Improvement Classification Type:
1) Improvements that will be funded at least partially by the EIFD. 2) Improvements that will not be funded by the EIFD but funded by other government sources. 3) Improvements that will be funded by the private sector. 4) Improvements that will be funded jointly by the private sector and the government.548

CITY COUNCIL AGENDA REPORT
MEETING DATE: August 21, 2024 ITEM #10
SUBJECT:

CONSIDERATION OF AWARD OF A CONTRACT FOR SERVICES WITH LYONS

SECURITY SERVICE FOR SECURITY GUARD AND MOBILE PATROL SERVICES AT VARIOUS CITY-OWNED LOCATIONS AND CONSIDERATION OF RESOLUTION 24-87

ADOPTING RELATED APPROPRIATIONS
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Lorianne Landsaw, Senior Analyst
Public Works Operations & Maintenance
Department
ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [X] Action

OBJECTIVE
The purpose of this report is to provide the City Council with sufficient information to consider for approval a professional services contract with Lyons Security Service to provide security guard and mobile patrol services at various City-owned locations.

RECOMMENDED ACTION
Staff respectfully recommends that the City Council:
1) Adopt Resolution 24-87 amending the FY 2024/25 budget to cover increased costs for security guard and mobile patrol services;
2) Award a contract for security guard and mobile patrol services at various City-owned locations to Lyons Security Service;
3) Authorize the City Manager or his designee to execute non-substantive changes or modifications to the Contract for Services with approval from the City Attorney; 4) Authorize the City Manager or his designee to execute amendments or change orders up to 10% of the contract amount;
5) Authorize the City Manager or his designee to execute amendments to extend the term of the contract.

BACKGROUND
Staff and physical safety concerns are critical considerations for municipal facilities as they are open to the public and provide a variety of services. The City is currently under contract for daily security services at City Hall and the Community Center, as well as mobile security patrol at the Etenesh Zeleke Public Dock, Ziggurat Garage, and the 5th & Bridge lot. Security is also engaged for after-hours meetings and special events at City-owned properties. The security officers serve as a liaison to staff and visitors, assisting them in obtaining City information, directing them to the correct department for services, as well as enforcing City rules and regulations to ensure the protection of staff and property.

In March 2024, Public Works Operations and Maintenance Department issued a Request for Proposals (23-086- RFP) for security guard and/or mobile patrol at City Hall, Community Center, Economic Development Annex, Bridgeway Lakes Boathouse, owned but unoccupied City property including, but not limited to, Pheasant Club and Stone Lock, and the new Corporation Yard. There is also the availability of utilizing this contract for any short-term or fluctuating security needs that may arise over the course of the contract. Twenty-three (23) bids were received and reviewed by eleven staff members across most City departments. The bids were narrowed down based on score to a top five. Individual interviews were then held with each vendor and eight City staff representatives, and the scores were received and compiled to determine the top scoring vendor.

ANALYSIS
The approval of the recommended contract with Lyons Security Services has fixed rates for the first year and includes escalators in years two and three to respond to market changes relative to changes in the minimum wage. Additionally, the contract allows for two additional 1-year extensions if the City wishes to extend the contract.

Security guard services include greeting and enforcing badge requirements for staff and visitors, monitoring the weapons detector installed at City Hall, assisting and providing visitors with City forms and pamphlets, monitoring the parking lot, accepting and/or directing deliveries, and monitoring the calendar for special events, tours, and meetings. Mobile patrol services vary by location and need and are outlined in greater detail in the Request for Proposals, included as Exhibit A in the contract attached. 549
Security Guard and Mobile Patrol Services
August 21, 2024

Page 2 ends

West Sacramento City CouncilAugust 21, 2024

West Sacramento City Council
August 21, 2024