Agenda packet — West Sacramento City Council, May 21, 2025 (part 2 of 5)

For Office Use Only
-FILEDFile No.: BA20241880643
Date Filed: 10/23/2024
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We understand that the City is looking for a recommendation for replacing the HVAC and controls system with modern, energy-efficient technology that reduces energy use, lowers operational and maintenance costs, improves air quality, and enhances occupant comfort at the Community Center. Based on this, we understand that the City seeks to develop bid-ready construction documents for the HVAC replacement.

This project will involve evaluating the current HVAC system, creating drawings, specifications, and cost estimates for bidding and construction, assisting with the permitting process, supporting the bid and award phases, and providing construction administration services through project completion.

As part of our standard process, Kitchell begins every project with a site survey to assess existing building systems. Our design process is collaborative, involving the owner, stakeholders, users, peer reviewers, agencies, sub-consultants, and the design team.

OPERATIONAL PLAN AND PROPOSED APPROACH

1. Existing HVAC System Assessment and Report
Upon notice to proceed, our experienced in-house design team will collect and review all relevant data for your project. This includes existing as-builts and reports, as well as maintenance history of the HVAC system and utility bills. The team will also contact the regulatory agencies that will affect this project to determine applicable codes and ordinances.

To meet the City’s expectations and ensure project success, each team member will have a clearly defined role and set of responsibilities. Kitchell will also set up a communication protocol within our internal team to eliminate any duplication of effort and/or confusion. We will also set up a direct line of communication between our project manager and your project director. We recommend the use of a tabular responsibility matrix defining the roles and responsibilities of each member of the project team. This effort will help identify potential conflicts and omissions of activities before they become issues. It will also allow each team member to see a snapshot of their responsibilities and how they relate to other team members.

Project Manager Andrew Pascual will conduct a project kick-off meeting with the City once the relevant data has been reviewed and the project team is established. During the meeting, we will review the project’s goals and objectives, scope, budget, schedule, and deliverables. We will also review each other’s roles and responsibilities and establish project protocols that foster and facilitate team communication and collaboration.

After the kick-off meeting, our team will conduct a thorough assessment of the existing HVAC system as well as the building structure and site to identify system deficiencies and provide recommended solutions. Upon completion of the assessment, our team will prepare a plan to replace the existing equipment with energy-efficient systems to be paired with a new building management system. Our assessment report will contain a thorough analysis of existing energy systems and alternatives for the replacement/upgrade of the HVAC system along with a schematic design. Our team will also focus on the control’s integration, air balancing for enhanced thermal comfort and efficiency, reduced energy consumption, operational and maintenance use, and enhanced filtration. The schematic design will consist of a plan layout of each alternative with estimated project costs, a conceptual phasing plan to minimize the disruption of the facilities during construction, a project schedule, and recommendations

3.4. TECHNICAL PROJECT APPROACH

AN APPROACH TAILORED SPECIFICALLY FOR THE CITY OF WEST SACRAMENTO 162
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2. Construction Documents (65% & 95%) Phase
Our team will develop the design based on the approved recommendation and any adjustments authorized or directed by the City. We typically recommend multiple submittals at the 65% and 95% Construction Document (CD) phases for quality assurance and City review/comment verification. We will prepare the drawings and specifications and set forth in detail the requirements for the construction of the entire project. Specific details relating to the unique character of the project will be developed and structural, mechanical, and electrical calculations will be refined. Our team will follow the guidelines of the most current City’s design criteria (if available), standard details (if available), and the City’s standard specifications (Divisions 0 and 1).

We will prepare a cost estimate during the 65% and 95% CD phases. If the estimate exceeds the approved preliminary construction budget, we will provide an explanation for the increase and submit a list of proposed modifications to bring the cost back within budget.

Before submitting the 65% and 95% CD to the City, we will conduct a thorough in-house quality control and constructability review of our work. Our submittals will also include a comment and response log addressing the City’s feedback on previous submittals. The 95% CD set will be submitted to the City’s Building Division for review and approval to obtain the necessary permits. We will schedule a meeting with the Building Division to discuss their comments on the 95% CD and reach a consensus on how the documents will be revised to incorporate their feedback.

3. Final Bid Documents - 100% CD Phase
Based on the City’s comments as well as plan check comments on the 95% CD, we will revise the submittal to produce the final bid (100% CD) documents and include a final comment and response log. The final submittal will consist of the completed plans and specifications, stamped, signed, and dated by the architects and engineers of record, ready for the City staff’s approval signatures. If the review comments impact the project, an updated construction cost estimate will also be provided.

4. Bidding & Construction Assistance
Our team will assist the City through the bidding process, as well as in the preparation of contract documents and in making recommendations. We will also attend the pre-bid meeting, respond to RFIs, and issue any necessary addendums. If requested, Kitchell will assist the City with bid evaluations.

Kitchell will attend the pre-construction meeting and respond to pre-construction meeting questions, if necessary. We will review shop drawings and submittals; and provide clarifications to the contractor during construction. Upon completion of construction, we will attend the final walk through to provide input to the final “punch list” and help determine if the work is ready for the City’s acceptance. Kitchell will provide the City with one set of as-built drawings that reflect the changes to the work during construction.

THE CITY OF WEST SACRAMENTO
The team proposed on your Community Center HVAC Replacement project is currently providing engineering and design services for the replacement of the HVAC system at the City Hall facility. The initial engineering assessment provided the City with a preferred solution that will include greener technology, reduction in energy use and operational and maintenance costs, increased air quality, and improved occupant comfort. The scope of work included the replacement of the mechanical systems located on the roof of the building along with related electrical service equipment and the replacement of the existing building automation/energy management system.

Due to the essential services and operation the City Hall provided to the public, the City was concerned that the scope of the HVAC replacement would negatively impact the operation of the facility.

Because of our understanding of this need, our team worked closely with the City to coordinate and develop a phasing plan that has minimal impact to
the overall design
direction and allows
the construction
to continue critical
operations during
the projects
construction.

Successfully Serving
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MISCELLANEOUS INTERNAL TASKS
Throughout the design phase, Project Manager Andrew Pascual will meet with our team weekly to review project progress, resolve issues, and provide guidance for the following week’s work. Andrew will contact the City’s project director to discuss issues as they arise and keep you informed of the overall status of each project.

At every meeting with the City, our team will ensure notes are kept and meeting summaries distributed within a 48-hour turnaround. Every site visit attended by Kitchell will be followed by a site visit report which will be distributed within 48 hours of each meeting and include photo documentation of progress and issues discussed.

Communication is a primary ingredient to Kitchell’s project success. Project Manager Andrew Pascual will serve as Kitchell’s primary point of contact in leading this contract. He will work integrally with City staff in coordination and execution of our services. Principal-in-Charge Sergio Rodriguez will serve as the primary point of contact during negotiations through notice to proceed and will be available as needed.

QUALITY CONTROL
Quality is deeply embedded in Kitchell’s corporate culture. We have implemented a Continuous Quality Improvement Process based on the program developed by Philip Crosby and Associates, a globally recognized leader in Total Quality Management. Every employee is trained in the process, which includes tools, measurements, documentation, and corrective actions. Our program starts with a commitment to quality performance and the principle of “doing it right the first time” in all of our work processes. To foster active participation, we reward employees for identifying areas of improvement and finding ways to enhance our work processes. Kitchell’s quality control process is designed to identify errors during the design phase, rather than during construction, thereby preventing delays and additional costs.

CONTINUITY
Kitchell is committed to ensuring that once our staff and subcontracting team members begin a project or program, they will carry through to completion. This commitment begins at the proposal stage through our practice of establishing a project team able to devote themselves to successfully fulfilling their roles on the project. Kitchell’s philosophy is to maintain the core staff assigned—we do not rotate staff in and out of assignments. If it does become necessary to add or replace a project team member, he or she will be introduced to the City for approval before beginning work on the project. 164
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3.5. COST PROPOSAL
City of West Sacramento Community Center HVAC Replacement Project Fee Sc FEE SCHEDULE Revision: 03-24-2025
Project Title
Engineering Department ExecutiveEngineering Operations ManagerSr. Project ManagerArchitectSenior Electrical EngineerSenior Mechanical EngineerProject DesignerEstimatingProject Coordinator Total Hrs Total Fee
Task # Description $250.00 $225.00 $220.00 $170.00 $200.00 $200.00 $120.00 $160.00 $110.00 1 Existing HVAC System Assessment & Report

1.1 Review As-built Information 2 2 2 2 8 $1,380

1.2 Kick-off meeting 2 2 2 2 8 $1,360

1.3 Site Survey and Documentation 8 8 8 24 $4,560

1.3 Draft Recommendation Report 16 16 20 20 8 8 88 $14,480

1.5 Meet with City to Discuss Draft Report Comments 2 2 2 2 8 $1,580

1.6 Final Recommendation Report 2 2 2 8 2 16 $2,320

1.7 Project Management / Clerical 2 2 20 24 $5,350
Sub-Total 2 2 22 32 32 36 30 8 12 176 $31,030
2 65% Construction Documents

2.1 Drawings 16 24 40 80 160 $25,120

2.2 Specifications 4 6 6 12 28 $4,400

2.3 Calculations 6 6 12 $2,400

2.4 Title 24 2 2 4 $800

2.5 Estimate 20 20 $3,200

2.6 Incorporate 65% CD Client Comments 2 2 4 16 24 $3,460

2.7 Quality Control 2 2 2 2 2 10 $1,600

2.8 Project Management 2 2 30 34 $7,550
Sub-Total 2 2 30 24 42 60 98 20 14 292 $48,530
3 95% Construction Documents

3.1 Drawings 16 24 40 80 160 $25,120

3.2 Specifications 4 6 6 12 28 $4,400

3.3 Calculations 6 6 12 $2,400

3.4 Title 24 2 2 4 $800

3.5 Estimate 20 20 $3,200

3.6 Incorporate 65% Client Comments 2 2 4 16 24 $3,460

3.7 Quality Control 2 2 2 2 2 10 $1,600

3.8 Project Management 2 2 40 44 $9,750
Sub-Total 2 2 40 24 42 60 98 20 14 302 $50,730
4 100% Construction Documents/Bid Phase

4.1 Revise set based on comments & submit bid set 14 16 24 50 8 112 $17,260

4.2 100% Backcheck estimate 12 12 $1,920

4.3 Attend pre-bid meeting 2 2 2 6 $1,060

4.4 Respond to RFIs/Addendums 4 6 6 8 24 $4,040

4.5 Review bids received 2 2 2 6 $1,240

4.6 Project Management 2 2 10 14 $3,150
Sub-Total 2 2 14 18 24 34 58 12 10 174 $28,670
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Project Title
Engineering Department ExecutiveEngineering Operations ManagerSr. Project ManagerArchitectSenior Electrical EngineerSenior Mechanical EngineerProject DesignerEstimatingProject Coordinator Total Hrs Total Fee
Task # Description $250.00 $225.00 $220.00 $170.00 $200.00 $200.00 $120.00 $160.00 $110.00 5 Construction Administration

5.1 Attend Pre-construction & Construction Meetings (1-hr meetings) 16 10 10 24 24 84 $14,660

5.2 Review Submittals 16 20 20 56 $10,720

5.3 Respond to RFI's 16 16 16 48 $9,120

5.4 2 Site visits during construction 12 16 20 48 $9,840

5.5 Review As-built drawings 4 4 4 12 $2,280

5.6 Punch List (1 punch list visit & 1 punch list verification visit) 12 12 12 36 $6,840

5.7 Project Management / Clerical 2 2 20 16 10 50 $8,370 Sub-Total 2 2 48 58 78 96 16 0 34 334 $61,830
10 10 154 156 218 286 300 60 84 1278 220,790
$2,500 $2,250 $33,880 $26,520 $43,600 $57,200 $36,000 $9,600 $9,240 220,790 Subconsultants
Miyamoto Consultant Fee 38,000
Kitchell's 10% Consultant Mark-up 3,800
Kitchell's Reimbursable Expenses (Printing & Photocopies) 6,500 Total Fee 269,000
Repro Exp.

Permitting
3/25/2025 Pa
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EXHIBIT B
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.

KITCHELL/CEM, INC.

By:

Sergio Rodriguez
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EXHIBIT C

LABOR COMPLIANCE

1. PREVAILING WAGE
A. The Work contemplated herein constitutes a public work within the meaning of Labor Code sections 1720 and 1771. It shall be mandatory upon the Consultant and upon any Subcontractor, to pay not less than the said specified prevailing rates of wages to all workers employed by them under the Contract in accordance with Labor Code section 1774. The Director of the Department of Industrial Relations ("DIR") of the State of California has determined the general prevailing rate of wages of per diem wages in the locality in which the work is to be performed for each craft or type of worker needed to execute the Contract. The Consultant acknowledges that it has examined the prevailing rate of per diem wages as established by the DIR. Copies of the current schedules for prevailing wages are on file at City Hall, and the contents of those schedules are incorporated herein as if set forth in full. The Consultant shall post a copy of the applicable prevailing wage determinations at each job site, along with any other work place posters required by law.

B. The City will not recognize any claims for additional compensation because of the payment of prevailing wages. The possibility of wage increases is one of the elements to be considered by the Consultant in determining its proposal, and will not under any circumstances be considered as the basis of a claim against the City.

C. By executing this Contract Consultant warrants that it has registered with the Department of Industrial Relations in accordance with Labor Code section 1725.5.

2. PREVAILING WAGE RECORDS
A. The Consultant and each subcontractor shall keep an accurate payroll record which shows the name, address, social security number, correct work classification (in accordance with the wage decision), both straight and overtime worked each day and week, and hourly rate of pay, gross wages earned, deductions made and net wages paid to each journeyman, apprentice, worker or other employee paid by the Consultant /subcontractor in connection with the Work. These payroll records shall be certified and shall be made available at Consultant's principal office. These records shall be maintained during the course of the Work.

The Consultant and all subcontractors shall make the certified payroll records available for inspection by City representatives upon request and shall permit such representatives to interview employees during the work hours on the job site.

B. The City shall notify the Consultant in writing of any discrepancies or violations that are discovered during such inspections. Written notification pursuant to this Section shall include the actions that will be necessary to resolve the discrepancies and/or violations. The Consultant shall be held entirely responsible for the prompt resolution of all non-compliances with the prevailing wage laws, including those pertaining to all subcontractors and any lower-tier subcontractors. The Consultant shall forfeit as penalty to the City the amount specified by law for each calendar day or portion thereof for each worker (whether employed by the Consultant or any subcontractor) paid less than the stipulated prevailing rates for any work done under the Contract in violation of the provisions of the Labor Code and in particular, Section 1775. 168
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C. To the extent applicable, Consultant and subcontractors shall maintain and furnish to the Department of Industrial Relations ("DIR"), a certified copy of each weekly payroll (but no less often than monthly), with a statement of compliance signed under penalty of perjury. Such certified payroll reports shall be transmitted electronically to the DIR.

D. The City will not recognize any claims for additional compensation because of the payment of the prevailing wages. The possibility of wage increases is one of the elements to be considered by the Consultant in entering into the Contract, and will not under any circumstances, other than delays caused by the City, or the City’s agents, be considered as the basis of a claim against the City.

3. Labor Discrimination
Attention is directed to Section 1735 of the Labor Code, which reads as follows:
“No discrimination shall be made in the employment of persons upon public works because of their race, color, national origin or ancestry, physical handicap, mental condition, marital status, or sex of such person, except as provided in Section 12940 of the Government Code, and every General Contractor for public works violating this section is subject to all the penalties imposed for a violation of this chapter.”
4 Eight-Hour Day Limitation
(a) In accordance with the provisions of the Labor Code, and in particular, Sections 1810 to 1815 thereof, inclusive, incorporated herein by reference, eight hours labor shall constitute a day's work, and no worker in the employ of Consultant, or any Subcontractor, doing or contracting to do any part of the work contemplated by the Contract, shall be required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of those provisions; provided that subject to Labor Code Section 1815, a worker may perform work in excess of either eight (8) hours per day or forty (40) hours during any one week upon compensation for all hours worked in excess of eight (8) hours per day or forty (40) hours during any one week at not less than one and one-half times the basic rate of pay.
(b) The Consultant and each Subcontractor shall also keep an accurate record showing the names and actual hours worked of all workers employed by them in connection with the Contract. This record shall be open at all reasonable hours to the inspection of the City. It is hereby further agreed that, except as provided in (a) above, the Consultant shall forfeit as a penalty to the City the sum of twenty-five dollars ($25) for each worker employed in the performance of the Contract by the Consultant or by any of its Subcontractors for each calendar day during which such worker is required or permitted to labor more than eight (8) hours in and one calendar day and forty (40) hours in any one calendar week in violation of Sections 1810 through 1815.

5. Compliance with State Requirements for Employment of Apprentices (a) The Consultant's attention is directed to Section 1777.5 of the Labor Code.

Provisions of said Section pertaining to employment of registered apprentices are hereby incorporated by reference into this Contract. As applicable, the Consultant or any Subcontractor 169
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employed by the Consultant in the performance of this Contract shall take such actions as necessary to comply with the provisions of Section 1777.5. 170
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Revised 2011
ATTACHMENT 3
Notice of Exemption Appendix E
To: Office of Planning and Research From: (Public Agency): City of West Sacramento P.O. Box 3044, Room 113
Sacramento, CA 95812-3044
County Clerk
County of: YOLO
1110 West Capitol Ave
West Sacramento, CA 95691
(Address)
Project Title: Engineering & Design Services for Community Center HVAC Replacement Project Project Applicant: Kitchell/CEM, Inc.

Project Location - Specific:

West Sacramento Community Center, 1075 West Capitol Ave, West Sacramento, CA 95691
Project Location - City: West Sacramento Project Location - County: YOLO Description of Nature, Purpose and Beneficiaries of Project:

HVAC System replacement
Name of Public Agency Approving Project: City of West Sacramento Name of Person or Agency Carrying Out Project: Joshua Bailey Exempt Status: (check one):

Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number: 15301 Class 1 Statutory Exemptions. State code number:

Reasons why project is exempt:

The California Environmental Quality Act Title 14, Chapter 3, Article 19 defines what projects or categories are allowed to be considered Categorically Exempt. Section 15301, Class 1 allows public entities to perform operations such as repair, maintenance, or minor alteration of existing public structures, facilities, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination without review of the project under CEQA. The Engineering & Design Services for Community Center HVAC Replacement Project falls under the category of a rehabilitation and/or maintenance of existing structures involving no expansion of use beyond the existing.

Lead Agency Joshua Bailey 916-617-4720
Contact Person: Area Code/Telephone/Extension:

If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? ■ Yes No Signature: Date: 5/21/2025 Title: Project Manager II
Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR:

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.

X
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CITY COUNCIL AGENDA REPORT
MEETING DATE: May 21, 2025 ITEM # 8
SUBJECT:

CONSIDERATION OF REJECTION OF ALL BIDS FOR THE FIRE STATION 42

EXTERIOR PAINT AND REPAIR PROJECT
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Timothy Spinelli
Capital Projects Department
ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [X] Action

OBJECTIVE
The objective of this report is to provide the City Council with sufficient information to reject all bids for the Fire Station 42 Exterior Paint and Repair Project (24-079-ITB).

RECOMMENDED ACTION
Staff respectfully recommends that the City Council reject all bids for the Fire Station 42 Exterior Paint and Repair Project (24-079-ITB).

BACKGROUND
The apparatus bay building for Fire Station 42, located at 3585 Jefferson Boulevard in West Sacramento, requires minor exterior wall repairs and a protective coat of paint. On Thursday December 24, 2024, an Invitation to Bid (ITB) was released, seeking proposals to perform this work.

ANALYSIS
The Public Works Department conducted a competitive bidding process to select a construction contractor for the Fire Station 42 Exterior Paint and Repair Project (24-079-ITB). However, due to an administrative error, a key document—the Bid Packet—was not included as an attachment in the posted ITB. The mandatory public advertisement, as required by the Public Contract Code, was also not published in the local newspaper.

To ensure compliance with the Public Contracting Code, staff recommends rebidding the project through the competitive bidding process.

The eleven (11) bid proposals received and publicly opened on May 16, 2024, are as follows:

Rank Contractor Bid Amount
1 Kaler General Contractors Inc. $9,338.00
2 H.B. Restoration Inc. $12,550.00
3 CG Coatings Inc. $23,545.00
4 Perfection Painting Corp. $24,000.00
5 Pro Group Painting $24,341.00
6 TPM Construction Inc. $25,000.00
7 PRIMAL Paint Inc. $25,420.00
8 Swierstok Enterprise Inc., dba Pro Builders $34,800.00 9 Color New Corp. $43,000.00
10 The Design Build Inc. $51,786.00
11 U.S National Corp. $54,800.00
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Rejection of all Bids for the Fire Station 42 Exterior Paint and Repair Project May 21, 2025

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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).)
Commission Recommendation
N/A.

Strategic Plan Integration
N/A.

Alternatives
The City Council may decide to:
1) Approve the recommended action as described above;
2) Delay the recommended action and direct staff to return with alternative recommendations; or 3) Reject the recommended action or cancel the project.

Staff recommends Alternative 1 as the best way to move forward with the Fire Station 42 Exterior Paint and Repair Project in an efficient, effective, and fiscally responsible manner.

Coordination and Review
This report was prepared by the Capital Projects Department in coordination with the Public Works Department, Fire Department, Finance Department, and City Attorney’s Office.

Budget/Cost Impact
There are no budget actions required at this time.

ATTACHMENT

1. Vicinity Map
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CITY COUNCIL AGENDA REPORT
MEETING DATE: May 21, 2025 ITEM # 9
SUBJECT:

CONSIDERATION OF RESOLUTION 25-55 APPROVING MINOR CHANGES TO THE CITY OF WEST SACRAMENTO ENHANCED INFRASTRUCTURE FINANCING DISTRICT NO. 1

BUDGET POLICY
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 City Council approval of minor changes to the City of West Sacramento Enhanced Infrastructure Financing District No. 1 (“EIFD”) Budget Policy.

RECOMMENDED ACTION
Staff respectfully recommends that the City Council adopt Resolution 25-55 (Attachment 1) approving minor changes to the EIFD Budget Policy.

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. Property tax-increment generated since EIFD base year 2017 accrues in the EIFD Fund.

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 portions of property tax increment generated within the former redevelopment area until fiscal year 2036-2037 and 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 EIFD, 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 Public Financing Authority (“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 EIFDrelated policies, the final adoption of the Budget Policy was delayed. Until such time that an EIFD Budget Policy was adopted, Council approved directing property tax-increment generated within the EIFD area to Measure G to enable the City to fund projects of communitywide significance.

On August 21, 2024, staff returned to Council to recommend EIFD Budget and Debt Management Policies. Via Resolution 24-85, Council adopted the policies to establish EIFD project financing goals and budgeting procedures. Staff intentionally drafted the EIFD Budget Policy indicating that Council and the PFA Board could approve future modifications, as EIFD legislation is continuously modified and enhanced. Future Budget Policy modifications may be addressed to meet the City’s project and development investment strategy priorities.

The approved Budget Policy indicated that EIFD funding requests would be considered as part of the City’s Biennial Budget process. However, staff needs greater flexibility to request funding appropriations for EIFD eligible improvements. Therefore, staff is recommending minor edits to the EIFD Budget Policy to enable Council to appropriate EIFD funding throughout the year for eligible improvements that are more responsive to project financing needs and grant leverage opportunities.

ANALYSIS
Through the EIFD Public Financing Authority, the City is conducting work to issue an EIFD bond to finance a significant amount of EIFD eligible improvements. In working with the EIFD bond advisory team, staff realized 176
Resolution 25-55 EIFD Budget Policy Update
May 21, 2025

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that the budget procedures approved with the EIFD Budget Policy in August 2024 would be too restrictive to enable staff to finance and construct improvements given strict timeline requirements associated with municipal bond issuances. Furthermore, staff needs to be more responsive to grant opportunities that may have match requirements or local funding source gap financing needs. Under the previously adopted EIFD Budget Policy budgeting procedures, staff would only be able to appropriate EIFD funding in coordination with the Biennial Budget. To enable staff to leverage EIFD revenues with potential grants and be more responsive to gap financing needs, staff proposes revising the budgeting procedures portions of the EIFD Budget Policy to be consistent with other related capital improvement City funds. Staff is also proposing additional language to clarify that changes to projects consistent with the EIFD IFP will be reviewed and approved by City Council and received by the Authority through the EIFD Annual Report. Clean and redlined versions of the updated EIFD Budget Policy are provided in Attachment 1 – Exhibit A and Exhibit B, respectively.

Environmental Considerations
The Budget Policy update 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
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); and
 EIFD Implementation (2016, 2017).

Alternatives
The Council’s primary alternatives to the recommended action include:

1. Decline to approve the recommended action;

2. Direct staff to further modify the Budget Policy; or

3. Delay all recommended actions to a later date.

These alternatives are not recommended as they will limit staff’s ability to implement EIFD projects in a timely manner and/or respond to grant leveraging opportunities.

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 the recommended 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.

ATTACHMENT

1. Resolution 25-55
a. Exhibit A – West Sacramento Enhanced Infrastructure Financing District Budget Policy (Clean Version Update)
b. Exhibit B – West Sacramento Enhanced Infrastructure Financing District Budget Policy (Redline Version Update)
177
RESOLUTION 25-55

A RESOLUTION OF THE CITY OF WEST SACRAMENTO APPROVING MINOR CHANGES

TO THE CITY OF WEST SACRAMENTO ENHANCED INFRASTRUCTURE FINANCING DISTRICT NO. 1 BUDGET POLICY
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 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, on August 21, 2024, City Council and the Authority approved EIFD Debt Management and Budget policies through Resolution 24-85 and PFA Resolution 24-2, respectively; and
WHEREAS, the EIFD Budget Policy approved on August 21, 2024, provides the City Council and Authority flexibility to modify the policy to reflect City infrastructure and development needs and respond to ongoing EIFD Law changes; and
WHEREAS, the existing EIFD Budget Policy includes budgeting provisions that are too restrictive to respond to Capital Improvement Program funding needs throughout the year; WHEREAS, staff recommends minor updates to the EIFD Budget Policy to be more responsive to infrastructure financing needs and leverage grant funding opportunities; WHEREAS, the consideration of approving the proposed EIFD Budget Policy update 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 Updated Budget Policy. The City Council hereby declares that the proposed revised Budget Policy attached hereto as Exhibit A 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.

Section 3. Effective Date. This resolution shall take effect immediately upon its passage and adoption.

PASSED AND ADOPTED this 21st day of May, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ATTACHMENT 1
178
ABSTAIN:

Martha Guerrero, Mayor
ATTEST:

Jennifer Cusmir, City Clerk
179

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. Changes to projects consistent with the EIFD IFP will be reviewed and approved by City Council and received by the Authority through the EIFD Annual Report. 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 budgeting 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 EXHIBIT A TO RESOLUTION 25-55
180
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 Measure G funding and as outlined in the Community Investment Fund Policy. Improvements and associated administrative costs funded with EIFD bond proceeds will be recommended by the City Council and considered by the EIFD Public Financing Authority (“Authority”) for approval.

Improvements and operations funded with Measure G revenues will be considered by the City Council through the City’s budgeting 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. 181

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 EXHIBIT B TO RESOLUTION 25-55
182
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 Measure G funding and as outlined in the Community Investment Fund Policy. Improvements and associated administrative costs funded with EIFD bond proceeds will be recommended by the City Council and considered by the EIFD Public Financing Authority (“Authority”) for approval.

Improvements and operations funded with Measure G revenues will be considered by the City Council through the City’s Biennial Budget budgeting process, and vetted using the Measure G Scorecard, a project evaluation tool.

CITY OF WEST SACRAMENTO

ERRATA MEMORANDUM
TO: Mayor Guerrero and City Council Members
FROM: Aaron Laurel, City Manager
Mark Polhemus, Community Investment Manager
Jeff Mitchell, City Attorney
DATE: May 21, 2025
SUBJECT: City Council Meeting Agenda – Item 9 Consideration of Resolution 25-55 Approving Minor Changes to the City of West Sacramento Enhanced Infrastructure Financing District No. 1 Budget Policy
Exhibit A and Exhibit B to Resolution 25-55 have been modified per recommendation and approval by the City of West Sacramento Enhanced Infrastructure Financing District No. 1 Public Finance Authority. City staff and City Attorney recommend replacing the mentioned Resolution exhibits with those attached to this Errata Memorandum. 184

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.

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 budgeting 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 EXHIBIT A TO RESOLUTION 25-55
185
Fund (Measure G) to pay for facilities and activities, consistent with the criteria established for Measure G funding and as outlined in the Community Investment Fund Policy. Improvements funded with EIFD bond proceeds will be reviewed and approved by the City Council through the City’s budgeting process and received by the Authority at least annually through the EIFD Annual Report.

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. Proposed changes to the EIFD IFP will be reviewed and approved by the Authority. the EIFD IFP will be recommended by City Council and approved by the Authority through the EIFD Annual Report. 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 budgeting 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 EXHIBIT B TO RESOLUTION 25-55
187
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 Measure G funding and as outlined in the Community Investment Fund Policy. Improvements funded with EIFD bond proceeds will be reviewed and approved recommended by the City Council through the City’s budgeting process and received by the Authority at least annually through the EIFD Annual Report. considered by the EIFD Public Financing Authority (“Authority”) for approval.

CITY COUNCIL AGENDA REPORT
MEETING DATE: May 21, 2025 ITEM # 10
SUBJECT:

CONSIDERATION OF ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT AND RELATED DOCUMENTS FOR FISCAL YEAR ENDING JUNE 30, 2024 INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Becky Robertson, Finance Manager
Department of Finance
ATTACHMENT [X] Yes [ ] No [X] Information [ ] Direction [ ] Action

OBJECTIVE
The purpose of this report is to provide the final audited Annual Comprehensive Financial Report (“Annual Report” or “ACFR”) and related documents to City Council for the fiscal year ending June 30, 2024 as required by federal and state regulations.

RECOMMENDED ACTION
As this is an informational report, no action is required.

BACKGROUND
Government Code Sections 37208, 40804 and 53891 and various other federal and state regulations provide that the City prepare and publish annual audited financial statements. This year’s financial statements were audited by Lance, Soll & Lunghard LLP., an independent public accounting firm. The reports will be distributed to other agencies as provided by law.

ANALYSIS
Annual Comprehensive Financial Report (Annual Report). The auditor has opined that the City’s Annual Report presents fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of West Sacramento, California, as of June 30, 2024. In addition to the respective changes in financial position and cash flows, the respective budgetary comparisons for the general fund and the major special revenue funds for the year ended in conformity with accounting principles generally accepted in the United States of America.

Single Audit and Compliance Reports. As a condition to receive federal and/or select state financial assistance over a certain dollar value each year, the City is required to have a Single Audit Report. This report focuses on compliance with the requirements described in the Code of Federal Regulations (2CFR200) and requirements described in the City’s Internal Control procedures. This report was filed with the regulatory agency of March 31, 2025. The final audit report contains one reportable material weakness related to the city’s financial reporting.

Finding 2024-001 refers to a material weakness related to the posting of fair market value adjustments. This entry allocates the current fair value of our cash and investments across all funds. While this allocation of the fair market value was calculated correctly, the journal entry was posted backwards in our financial system. To ensure that this error does not occur in the future, the Finance Department will ensure that the cash and investment reconciliation is completed prior to finalizing the trial balance.

Finding 2024-002 refers to non-compliance in the areas of HOME Investment Partnership Program and Community Development Block Grants/Entitlement Grants loan compliance. During routine audit testing, City personnel were unable to obtain supporting documentation for required loan compliance documents. The Economic Development and Housing Department will implement procedures to ensure that all annual compliance documents are collected and maintained for the life of the loan.

Finding 2024-003 refers to non-compliance due to failing to report a federal subaward to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The reporting regulation for federal subawards went into effect January 2024. The Finance Department has added this step to our procedures moving forward for federal subawards to ensure that the reporting requirement is not missed. 189
Annual Comprehensive Financial Report
May 21, 2025

Page 2 ends

Appropriations Limit. California law requires the City to have a CPA perform certain agreed-upon procedures to the Appropriations Limit under American Institute of Certified Public Accountants attestation standards. Based upon the application of these procedures, the auditors found that nothing came to their attention that caused them to believe that the Appropriations Limit was not computed in accordance with Article XIIIB of the California Constitution.

Digital copies of the Annual Report, Single Audit and Appropriations Limit Report for the fiscal year ending June 30, 2024 may be located on the City’s website at
https://www.cityofwestsacramento.org/government/departments/administrative-services/financial-documents.

Environmental Considerations
Not applicable
Commission Recommendation
Not applicable
Strategic Plan Integration
These actions support the City’s mission to provide a City government that is financially sound.

Alternatives
Not applicable
Coordination and Review
Not applicable
Budget/Cost Impact
Not applicable

ATTACHMENTS

1. Annual Comprehensive Financial Report

2. Single Audit

3. Appropriations Limit
190
ANNUAL

COMPREHENSIVE
For the Fiscal Year Ended June 30, 2024

FINANCIAL REPORT
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City Council
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City Attorney
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William Roberts
Director of Public Works
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Steve Binns
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Government Finance Officers Association
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City of West Sacramento
California
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1. Cash and Investments
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2. Prepaid Items
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7. Net Position
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West Sacramento City CouncilMay 21, 2025

West Sacramento City Council
May 21, 2025