was made at the beginning of August 2025.
Analysis:
In May 2025, RHA formally requested that the City consider funding a request for financial assistance for the Richland Village project for $1,500,000. This request is to help cover a $2.5 million funding gap, with RHA identifying funding available for the remaining $1 million for use, conditioned upon approval from the RHA Board of Commissioners.
City staff recommends the City Council approve this request for financial assistance and utilize existing affordable housing funds available from the City’s Low-Mod Housing Asset fund, with the condition that funding be released upon demonstration that full project funding has been secured.
Fiscal Impact:
The $1,500,000 will be utilized from the City's Low-Mod Housing Asset Fund for RHA's affordable housing project. These funds are not General Fund monies and can only be used for affordable housing. There is approximately $2,300,000 currently available in this fund.
Alternatives:
A. Do not approve the request for financial assistance from RHA.
B. Do not approve the request for financial assistance from RHA at this time and provide staff and RHA with direction on how to move forward with the request.
Recommendation:
Adopt a Resolution to:
A. Approve Regional Housing Authority’s request for financial assistance in the amount of $1,500,000 for the Richland Village Affordable Housing project and; B. Authorize the Finance Director to make a supplemental appropriation of $1,500,000 to Fund 298 Account 6098-65305 and;
C. Authorize the City Manager or designee to approve the necessary documents for processing the payment of the financial request to Regional Housing Authority Attachments:
1. Resolution to Approve Richland Village Funding Request
2. Richland Village Funding Request
Prepared By: Submitted By:
Shannon Sardo
Administrative Analyst II
Robert Bendorf
Interim City Manager
ATTACHMENT 1
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY TO APPROVE A FINANCIAL ASSISTANCE REQUEST OF $1,500,000 TO REGIONAL
HOUSING AUTHORITY FOR THE RICHLAND VILLAGE AFFORDABLE HOUSING
PROJECT
WHEREAS, the development titled “Richland Village” proposed to construct a 176-unit affordable apartment home community on a 4.9-acre site at 470 Bernard Drive (APN 53-470-091) in Yuba City was approved by the City Council on January 19, 2021; and WHEREAS, on May 18, 2021, the City Council approved a capital funds grant commitment of $1,000,000 from the City’s Low-Mod Housing Asset Fund for the development of Richland Village, subject to RHA receiving Affordable Housing and Sustainable Communities (AHSC) funding from the California Department of Housing and Community Development (HCD) and securing Low Income Housing Tax Credits from the California Tax Credit Allocation Committee (CTCAC); and
WHEREAS, in August 2024, the City received a letter from RHA proposing a reduction in the number of units from 176 to 133 due to financial constraints and urgent timelines for tax-credit funding applications; and
WHEREAS, City staff reviewed the proposal and determined that the modification to the number of residential units is consistent with the findings made when the project was approved by the City Council on January 19, 2021 (Resolution No. 21-003); and WHEREAS, the Developer, Sutter County Affordable Homes (SCAH), an affiliate 501(c)(3) public non-profit entity of RHA, was awarded $30 million in funding through the HCD AHSC program, with $8.5 million designated for Yuba-Sutter Transit to construct a new transit facility; and
WHEREAS, the CTCAC has reserved $2,054,800 in low-income housing tax credits for the Richland Village project; and
WHEREAS, On May 21, 2025, Regional Housing Authority formally submitted a request for financial assistance from the City in the amount of $1.5 million to help cover the funding gap for the Richland Village Affordable Housing project.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Yuba City as follows:
1. The City Council finds that all of the facts set forth in the recitals above of this Resolution are true and correct and incorporated herein.
2. The City Council approves the Regional Housing Authority’s request for financial assistance in the amount of $1.5 million for the Richland Village Affordable Housing Project, subject to final approval of the project.
3. The City Council authorizes the Finance Director or designee to make a supplemental appropriation of $1,500,000 from the City’s Low-Mod Housing Asset Fund to Account 6098-65305.
4. The City Council authorizes the City Manager or designee to approve the necessary documents for processing the payment of the request to Regional Housing Authority for the Richland Village Affordable Housing Project.
5. This Resolution shall become effective immediately.
The foregoing Resolution was duly and regularly introduced, passed and adopted by the City Council of the City of Yuba City at a regular meeting thereof held on August 19, 2025 by the following vote:
AYES:
NOES:
ABSENT:
___________________________
Dave Shaw, Mayor
ATTEST:
________________________________
Ciara Wakefield, Deputy City Clerk
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY
________________________________
SHANNON CHAFFIN, City Attorney
Aleshire & Wynder, LLP
ATTACHMENT 2
Agenda Item 14
CITY OF YUBA CITY
STAFF REPORT
Date: August 19, 2025
To: Honorable Mayor & Members of the City Council;
From: Development Services Department
Presentation By: Doug Libby, Development Services Director Summary
Subject: Conduit financing for the Richland Village Apartments Project located at 470 Bernard Drive
Recommendation: 1) Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the “Code”)
2) Adopt a Resolution approving the issuance of the Bonds by the CMFA for the benefit of Richland Village LP (the “Borrower”), to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following)
Fiscal Impact: The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower
Purpose:
Conduit financing for Development Plan 20-03, Richland Village, located at 470 Bernard Drive.
Council's Strategic Goal:
This project addresses the City Council's goal of enhancing the quality of life by providing housing options to the community.
Background:
In October 2020, the City received a development plan application for a multi-phase, 176-unit apartment complex from the Regional Housing Authority (RHA) located in the Richland Housing area, adjacent to the airport. The project, titled “Richland Village,” proposes the construction of a 176-unit affordable apartment complex on a 4.9-acre site at 470 Bernard Drive (APN 53-470-091) in Yuba City.
The community will feature one-, two-, and three-bedroom units in eight residential buildings, a 2,795 square foot community center, and outdoor amenity spaces.
In August 2024, the City received a letter from RHA proposing a reduction in the number of units from 176 to 133 due to financial constraints and urgent timelines for final tax-credit funding applications. Staff determined that the proposed modifications were consistent with the findings made when the project was approved by City Council on January 19, 2021 (Resolution No. 21-003).
Analysis:
Richland Village LP (the “Borrower”) requested that California Municipal Finance Authority (CMFA) serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $40,000,000 (the “Bonds”) of tax-exempt revenue bonds. The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project (the “Project”) to be owned and operated by the Borrower and located at 470 Bernard Drive, Yuba City, California (the “City”).
In order for the Bonds to qualify as tax-exempt bonds, the City of Yuba City must conduct a Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project.
Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community.
Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.
Fiscal Impact:
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Yuba City, it is expected that that a portion of the issuance fee attributable to the City will be granted by the CMFA to the general fund of the City. Such grant may be used for any lawful purpose of the City.
Alternatives:
1. Do not approve the issuance of the Bonds by CMFA
Recommendation:
1. Conduct a Public Hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended;
2. Adopt a Resolution approving the issuance of the Bonds by the CMFA for the benefit of Richland Village LP (the “Borrower”), to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following).
Attachments:
1. Proposed Resolution
Prepared By: Submitted By:
Jaspreet Kaur
Senior Planner
Robert Bendorf
Interim City Manager
ATTACHMENT 1
RESOLUTION NO. _____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY
APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE
AUTHORITY EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $40,000,000 FOR THE PURPOSE OF FINANCING
OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT
AND EQUIPPING OF RICHLAND VILLAGE AND CERTAIN OTHER MATTERS
RELATING THERETO
WHEREAS, Richland Village LP (the “Borrower”) a partnership of which Sage Housing Group LLC (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $40,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 470 Bernard Drive, Yuba City, California (the “Project”); and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City of Yuba City (the “City”) because the Project is located within the territorial limits of the City; and
WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Yuba City as follows:
Section 1. The foregoing resolutions are true and correct.
Section 2. The City Council hereby approves the issuance of the Bonds by the Authority.
It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.
Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.
Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.
Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.
Section 6. This resolution shall take effect immediately upon its adoption.
The foregoing Resolution was duly and regularly introduced, passed and adopted by the City Council of the City of Yuba City at a regular meeting thereof held on August 19, 2025 by the following vote:
AYES:
NOES:
ABSENT:
___________________________
Dave Shaw, Mayor
ATTEST:
________________________________
Ciara Wakefield, City Clerk
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY
________________________________
SHANNON CHAFFIN, City Attorney
Aleshire & Wynder, LLP
Agenda Item 15
CITY OF YUBA CITY
STAFF REPORT
Date: August 19, 2025
To: Honorable Mayor & Members of the City Council;
From: Development Services Department
Presentation By: Doug Libby, Development Services Director Summary
Subject: Zoning Code Amendment (ZC) 25-01, Rezoning 25-02; Plumas Street Overlay District
Recommendation: A. Conduct a Public Hearing; and
B. Introduce by title only and waive the first reading of an Ordinance of the City Council of the City of Yuba City finding that Zoning Code Amendment ZC 25-01 and Rezoning 25- 02 is not subject to environmental review and approving Zoning Code 25-01 and REZONING 25-02, revising Title 8, Chapter 5, Article 38 of the Municipal Code to provide for Overlay Districts, adoption of an X28 District establishing the Downtown Plumas Street Overlay District, to prohibit new tobacco and vape retailers as well as retail stores authorized to sell beer, wine, and distilled spirits for consumption off premise consistent with a California Department of Alcoholic Beverage Control Type 20 or 21 License and rezoning certain properties among Plumas Street, Forbes Avenue, Scoot Street and Center Street from Community Commercial District (C-2) Specific Plan to C-2- X28-SP
Fiscal Impact: No direct fiscal impact will result from amending the Municipal Code to revise the standards discussed
Purpose:
To establish a downtown Plumas Street Overlay District to prohibit new tobacco and vape retailers as well as retail stores authorized to sell beer, wine, and distilled spirits for consumption off premise consistent with a California Department of Alcoholic Beverage Control Type 20 or 21 license.
Council’s Strategic Goal:
This item is consistent with the Council’s Public Safety Strategic Goal because restricting certain uses establishing appropriate standards will enhance public safety in the community.
This item is also consistent with the Council’s Business Friendly Strategic Goal. Establishing appropriate uses for our downtown business district to promote better health, encourage entertainment, and a family friendly destination is consistent with the Council’s Business Friendly Strategic Goal.
Background:
The City has received separate letters from the Downtown Business Association (DBA) and Blue Zones Project requesting the City consider restricting certain uses in the downtown business corridor along Plumas Street from Colusa Avenue (State Hwy 20) to Bridge Street. The basis of the request is to prohibit certain commercial uses to promote better health, entertainment and a family-friendly destination.
The restriction of the following activities is proposed:
• Tobacco and vape product sales – businesses commonly referred to as “smoke shops.” • Prohibit the retail sale of alcohol for offsite consumption.
If one of these activities occurs today, that business can continue; however, if the use were to cease for a period of one year or more, Municipal Code Section 8-5.7302(d) would prohibit the use from being reestablished.
The intent of prohibiting retail alcohol sales for offsite consumption is not to impact restaurants or bars in the downtown, having lawfully established outdoor dining consistent with Municipal Code Title 8, Chapter 5, Article 49 (the City’s Outdoor Dining Ordinance).
On May 25, 2025, the City Council unanimously initiated a Municipal Code Amendment to make these modifications to the Zoning Code and establish an Overlay District in the downtown area.
On July 23, 2025, the Planning Commission conducted a public hearing and unanimously recommended approval of the proposed ordinance to the City Council. Based on public comment provided at the public hearing, there was discussion to consider allowing wine tasting opportunities that would also allow for the purchase of wine tasted for consumption offsite. Ultimately, the Planning Commission did not make a change to the draft ordinance and recommended approval of the proposal as presented.
Analysis:
To accommodate this proposal, Zoning Code Article 38, Special Standards Combining District (X) is proposed to be revised to provide for overlay districts.
A map has been prepared identifying those properties subject to the ordinance and change in zoning from C-2-SP to C-2-X28-SP. (See Attachment)
The proposed ordinance (see attachment) includes the necessary Municipal Code revisions, language for the proposed X28 District, which will be known as the Downtown Plumas Street Overlay District, and zoning map. Going forward, revisions can be made to this district to expand or modify standards as determined necessary.
To avoid conflicts between permitted outdoor special events or outdoor dining where alcohol may be sold and legally made available, the overlay district was written to prohibit retail stores that sell beer, wine or distilled spirits for consumption off premise consistent with a Type 20 or 21 Alcoholic Beverage Control (ABC) license. This ordinance does not apply to legally established restaurants, bars, or other facilities that may legally sell alcoholic beverages.
Environmental Considerations:
Staff believe this project is covered by the general rule of the California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) and has determined with certainty that there is no possibility that the proposed update to the Municipal Code would cause a significant, adverse, effect on the environment. This is because the proposed revisions establishing an X28 Overlay District will restrict beyond the existing Community Commercial District (C-2) zoning the range of permitted uses that can occur in the downtown Plumas Business District area by prohibiting new businesses such as smoke and vape shops and retail stores authorized to sell beer, wine and distilled spirits for consumption off premise consistent with a California Department of Alcoholic Beverage Control Type 20 or 21 license.
Since fewer uses will now be allowed to develop within the Overlay District boundary than is normally allowed in the C-2 District, the activity is covered by the general rule exemption that CEQA only applies 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.
Fiscal Impact:
No additional fiscal impact will result from amending the Municipal Code to establish an overlay district over the downtown Plumas Street area. Existing budgeted monies are paying for staff’s time to address this matter.
Alternatives:
The City Council may determine not to introduce the ordinance proposed or may desire to make revisions to the proposal. Depending on the nature of desired revisions, it may necessitate a continuance of the matter.
Recommendations:
A. Conduct a Public Hearing; and
B. Introduce by title only and waive the first reading of an Ordinance of the City Council of the City of Yuba City finding that Zoning Code Amendment ZC 25-01 and Rezoning 25- 02 is not subject to environmental review and approving Zoning Code 25-01 and REZONING 25-02, revising Title 8, Chapter 5, Article 38 of the Municipal Code to provide for Overlay Districts, adoption of an X28 District establishing the Downtown Plumas Street Overlay District, to prohibit new tobacco and vape retailers as well as retail stores authorized to sell beer, wine, and distilled spirits for consumption off premise consistent with a California Department of Alcoholic Beverage Control Type 20 or 21 License and rezoning certain properties among Plumas Street, Forbes Avenue, Scoot Street and Center Street from Community Commercial District (C-2) Specific Plan to C-2-X28-SP.
Attachments:
1. Proposed Ordinance
2. Blue Zones Project and Downtown Business Association Letters Received
3. Proposed Zoning Map
4. Public Comments Received
Prepared By: Submitted By:
Doug Libby, AICP
Director of Development Services
Robert Bendorf
Interim City Manager
ATTACHMENT 1
ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YUBA CITY FINDING THAT ZONING CODE AMENDMENT ZC 25-01 AND REZONING 25- 02 IS NOT SUBJECT TO ENVIRONMENTAL REVIEW AND APPROVING ZONING CODE AMENDMENT 25-01 AND REZONING 25-02, REVISING TITLE 8, CHAPTER 5, ARTICLE 38 OF THE MUNICIPAL CODE TO PROVIDE FOR OVERLAY DISTRICTS, ADOPTION OF AN X28 DISTRICT ESTABLISHING
THE DOWNTOWN PLUMAS STREET OVERLAY DISTRICT TO PROHIBIT
NEW TOBACCO AND VAPE RETAILERS AS WELL AS RETAIL STORES
AUTHORIZED TO SELL BEER, WINE, AND DISTILLED SPIRITS FOR
CONSUMPTION OFF PREMISE CONSISTENT WITH A CALIFORNIA
DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL TYPE 20 OR 21
LICENSE AND REZONING CERTAIN PROPERTIES ALONG PLUMAS
STREET, FORBES AVENUE, SCOTT STREET AND CENTER STREET FROM COMMUNITY COMMERCIAL DISTRICT (C-2) SPECIFIC PLAN (SP) TO C-2- X28-SP.
WHEREAS, the City of Yuba City is interested in developing a vibrant and family friendly environment in downtown Yuba City; and
WHEREAS, the Downtown Business Association and Blue Zones Project each submitted letters to the City of Yuba City requesting the City consider establishing an overlay district in the downtown, along Plumas Street, from Colusa Avenue (State Highway 20) to Bridge Street, to prohibit new tobacco and vape shop retailers as well as retail stores authorized to sell beer, wine and distilled spirits for consumption off premise consistent with a California Department of Alcoholic Beverage Control Type 20 or 21 license will promote better health, entertainment, and a family friendly environment; and
WHEREAS, on May 20, 2025, the City Council of the City of Yuba City unanimously initiated an amendment to the Municipal Code to establish an overlay district in the Plumas Street downtown area from Colusa Avenue (Stage Hwy 20) to Bridge Street to prohibit new smoke and vape shops as well as prohibit new businesses that provide for the sale of alcohol for offsite consumption; and
WHEREAS, on July 3, 2025, the City published a legal notice in compliance with State law concerning the Planning Commission’s consideration on July 23, 2025 and provided a 20-day written notice to known persons owning property within 300-feet of the boundaries around the land subject to Zoning Code Amendment ZC 25-01 and RZ 25-02; and WHEREAS, the Planning Commission considered this ordinance at its meeting on July 23, 2025, and made a recommendation to the City Council.
NOW THEREFORE, the City Council of the City of Yuba City does ordain as follows:
1. Recitals. The City Council finds the recitals are true and correct, and incorporates the same herein.
2. CEQA Findings. The City Council finds this project is covered by the general rule of the California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3), and has determined with certainty that there is no possibility that the proposed update to the Municipal Code and rezoning of certain properties to the X28 Downtown Plumas Street
Overlay District will cause a significant, adverse, effect on the environment. This is because the proposed revisions establishing an X28 Overlay District will restrict beyond the existing Community Commercial District (C-2) zoning the range of permitted uses that can occur in the downtown Plumas Business District area by prohibiting new businesses such as smoke and vape shops and retail stores authorized to sell beer, wine and distilled spirits for consumption off premise consistent with a California Department of Alcoholic Beverage Control Type 20 or 21 license. Since fewer uses be allowed to develop within the Overlay District boundary than is normally allowed in the C-2 District, the activity is covered by the general rule exemption that CEQA only applies 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.
3. Section 8-5.3801 of Article 38 of Chapter 5 of Title 8 of the Yuba City Municipal Code is repealed in its entirety and replaced to read as follows:
Section 8-5.3801. Purpose.
This district may serve as a combining or overlay district in order to apply specific development criteria or reduce certain uses permitted in a base zone district, as necessary, for the development of one or more parcels but is not relevant on a citywide basis. This district is intended to encourage innovative site design and may be used to modify adopted development standards to support innovative design. Projects utilizing this district must meet or exceed the quality of development expected of projects meeting typical development standards. This district is not intended to be used to circumvent an adopted development standard.
4. Section 8-5.3804 of Article 38 of Chapter 5 of Title 8 of the Yuba City Municipal Code is amended to read in its entirety as follows:
Section 8-5.3804. Establishment of Special Standards Combining or Overlay Districts.
Applications for the establishment of a Special Standards Combining District or Overlay District shall be considered amendments to the Yuba City Zoning Code and shall be processed consistent with Article 72 of this Chapter.
5. Section 8-5.3805 of Article 38 of Chapter 5 of Title 8 of the Yuba City Municipal Code is amended to read in its entirety as follows:
Section 8-5.3805. Application.
Applications for a Special Standards Combing District or Overlay District shall contain information necessary to evaluate and process the proposal as determined necessary by the Development Services Director.
6. Section 8-5.3806 of Article 38 of Chapter 5 of Title 8 of the Yuba City Municipal Code is repealed and replaced to read in its entirety as follows:
Section 8-5.3806. Findings.
In order to approve a Special Standards Combining or Overlay District, the following findings shall be made:
(a) The proposal is consistent with the Yuba City General Plan. (b) A proposed or amended Special Standards Combining District or Overlay District is compatible with the existing or planned surrounding land uses. (c) The quality of development resulting from a Special Standards Combining District or Overlay District is equivalent or better than would be accomplished through traditional zoning.
7. Approval of Zoning Code Amendment ZC 25-01 and Rezoning 25-02. Based on the information provided above, the City Council of the City of Yuba City adopts an ordinance approving Zoning Code Amendment ZC 25-01 and Rezoning 25-02 and reclassifies certain properties as shown in Exhibit A from Community Commercial, Central City Specific Plan (C-2-SP) District to Community Commercial, X28 Overlay, Central City Specific Plan (C-2-X28-SP) with a description of the X28 Overlay District included as Exhibit B to this Ordinance.
8. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional.
9. Effective Date. This Ordinance shall be effective on the thirty-first day after its adoption.
This Ordinance was introduced on August 19, 2025, and duly adopted by the City Council of the City of Yuba City at its duly noticed regular meeting _____________, by the following vote:
AYES: Council Member(s):
NOES: Council Member(s):
ABSENT: Council Member(s):
______________________________
Dave Shaw, Mayor
City of Yuba City
Attest:
___________________________
Ciara Wakefield, Deputy City Clerk
City of Yuba City
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY
__________________________________
Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
Exhibit A: Rezone Map, Rezone 25-02
Exhibit B: X28 Overlay District Description
Exhibit A
Rezone Map, RZ 25-02
PLUMAS
ST
BRIDGE ST
C-2
C-3
R-3 C-O
R-1
C-2
R-2
R-2
R-2
R-3 C-2
PF
C-M
PF
20 PLUMAS
ST
SHASTA
ST
BRIDGE ST
KILEY AVE
A ST
ROCKHOLT
WAY
ALM
O
N
D
S
T
FREMONT WAY
REEVES AVE
FRANCIS
WAY
FORBES AVE
TEEGARDEN AVE
SCOTT ST
WALN
U
T
S
T
CHURCH ST
C
E
M
E
T
E
RY
WAY
CENTER ST
COLUSA FRONTAGE RD
AYLOR AVE
ALTURAS ST
20 WALN
U
T
S
T
20 20
ALM
O
N
D
S
T
WALN
U
T
S
T
ALTURAS ST
² Legend
Zoning
C-2-X-28-SP
PLUMAS
ST
BRIDGE ST
C-2
C-M
PF
R-3
R-3
C-0
R-1
C-3
R-2
C-2
R-2
R-2
PF
20 PLUMAS
ST
SHASTA
ST
BRIDGE ST
KILEY AVE
A ST
ROCKHOLT
WAY
ALM
O
N
D
S
T
FREMONT WAY
REEVES AVE
FRANCIS
WAY
FORBES AVE
TEEGARDEN AVE
CHURCH ST
SCOTT ST
WALN
U
T
S
T
CENTER ST
C
E
M
E
T
E
RY
WAY
COLUSA FRONTAGE RD
ALTURAS ST
AYLOR AVE
20 WALN
U
T
S
T
20 20
ALM
O
N
D
S
T
WALN
U
T
S
T
EXISTING ZONING PROPOSED ZONING
Legend
Zoning
C-2-SP
Exhibit B
X28 Overlay District Description
01248.0005 2019874.1
X28 Downtown Plumas Street Overlay District
Applicable Area: Those properties within the Downtown Business Improvement District from Colusa Avenue (State Highway 20) to Bridge Street zoned Community Commercial District (C-2) and Community Commercial District, Specific Plan (C-2-SP) Definitions:
Smoke Shop. Any premises dedicated as a principal business to display, sell, distribute, deliver, offer, furnish, or market tobacco, tobacco products, or tobacco paraphernalia, including providing an area for smoking tobacco products.
Vape Shop. Any premises dedicated as a principal business to display, sell, distribute, deliver, offer, furnish or market electronic smoking devices, liquid nicotine containers or other vaporized liquid.
Restrictions: The following uses shall be prohibited within the Downtown Plumas Street Overlay District:
(a) Smoke Shops.
(b) Vape Shops.
(c) Retail stores authorized to sell beer, wine and distilled spirits for consumption off premise consistent with a California Department of Alcoholic Beverage Control Type 20 or 21 license.
Non-Conforming Uses. Nonconforming structures and uses may continue operation consistent with Article 73 of Chapter 5, Title 8.
ATTACHMENT 2
April 10, 2025
Doug Libby, AICP
Deputy Director of Development Services
City of Yuba City
1201 Civic Center Blvd.
Yuba City, CA 95993
RE: Request to Establish Commercial Overlay Zone for Plumas Street Dear Mr. Libby,
On behalf of the Blue Zones Project Yuba Sutter, I am writing to express our strong support for creating a Commercial Overlay Zone for the Plumas Street commercial corridor, spanning from Colusa Avenue to Bridge Street. We respectfully urge the City to take proactive steps in restricting uses incompatible with our shared vision for a vibrant, healthforward, and family-friendly downtown district.
We are particularly concerned with the continued presence and expansion of tobacco and vape retailers on Plumas Street. These establishments contradict our community’s efforts to promote well-being and pose significant risks to youth and public health. For this reason, we request that tobacco and vape retail establishments—commonly referred to as “smoke shops”—be prohibited within the overlay zone.
Tobacco retail density has been shown to increase rates of youth initiation and adult tobacco use, undermining the very public health efforts that Blue Zones Project and the City have worked to promote. The normalization of tobacco use through retail visibility, especially in pedestrian-oriented areas where families, youth, and visitors gather, is harmful and inconsistent with our community goals.
We also recommend restricting businesses that primarily sell alcohol for off-site
consumption, as they can similarly detract from the area’s appeal and safety.
Plumas Street has become a cornerstone of our downtown identity—a place where people come to connect, dine, shop, and experience the heart of our city. The continued revitalization of this area depends on a thoughtful approach to business mix and land use.
Creating a commercial overlay that prevents uses inconsistent with a healthy, walkable, and inviting environment is an important next step.
At Blue Zones Project Yuba Sutter, we are committed to transforming the environments where people live, work, and play. Our goal is to make the healthy choice the easy choice— and that starts with shaping public spaces like Plumas Street to reflect the values and needs of the people who call this community home.
We fully support the Downtown Business Association in this effort and welcome the opportunity to collaborate with the City as you prepare a staff report and consider an ordinance to create this overlay. We stand ready to provide data, community feedback, and policy support as needed.
Thank you for your leadership and consideration of this important request. Together, we can ensure that Plumas Street remains a place where health, community, and local pride thrive.
Sincerely,
Marni Sanders
Marni Sanders
Executive Director
Blue Zones Project Yuba Sutter
ATTACHMENT 3
PLUMAS
ST
BRIDGE ST
C-2
C-3
R-3 C-O
R-1
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R-3 C-2
PF
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PF
20 PLUMAS
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SHASTA
ST
BRIDGE ST
KILEY AVE
A ST
ROCKHOLT
WAY
ALM
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S
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FREMONT WAY
REEVES AVE
FRANCIS
WAY
FORBES AVE
TEEGARDEN AVE
SCOTT ST
WALN
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CHURCH ST
C
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M
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WAY
CENTER ST
COLUSA FRONTAGE RD
AYLOR AVE
ALTURAS ST
20 WALN
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20 20
ALM
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WALN
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ALTURAS ST
² Legend
Zoning
C-2-X-28-SP
PLUMAS
ST
BRIDGE ST
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PF
R-3
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C-0
R-1
C-3
R-2
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20 PLUMAS
ST
SHASTA
ST
BRIDGE ST
KILEY AVE
A ST
ROCKHOLT
WAY
ALM
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FREMONT WAY
REEVES AVE
FRANCIS
WAY
FORBES AVE
TEEGARDEN AVE
CHURCH ST
SCOTT ST
WALN
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CENTER ST
C
E
M
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WAY
COLUSA FRONTAGE RD
ALTURAS ST
AYLOR AVE
20 WALN
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20 20
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EXISTING ZONING PROPOSED ZONING
Legend
Zoning
C-2-SP
ATTACHMENT 4
Agenda Item 16
CITY OF YUBA CITY
STAFF REPORT
Date: August 19, 2025
To: Honorable Mayor & Members of the City Council;
From: Public Works
Presentation By: Phil Marler, Utilities Director
Summary
Subject: Introduction to the Water Rate Study
Recommendation: Direct staff to finalize the Water Rate Study for adoption and initiation of the Proposition 218 process
Fiscal Impact: Informative Item Only – Water revenue changes proposed in the rate study require a Proposition 218 process
Purpose:
To introduce the results of the water rate study, which recommend changes to the water service rates and fees and indicate the need for a Proposition 218 process.
Council’s Strategic Goal:
This item addresses Council’s strategic goals of Fiscal Responsibility and Infrastructure by providing the necessary cost recovery to support the services, operations, maintenance, labor, and capital improvement of the City’s water system.
Background:
The City’s utilities service rates and fees are intended to fully recuperate costs to deliver water and wastewater services and the operations and infrastructure of their associated systems via self-funded enterprise funds. In order to develop and propose rate maximums for a five-year projection, local agencies are required to provide a documentary record as evidence of the fiscal requirements per California statute. A rate study which evaluates the operational and infrastructural needs of water and wastewater systems and the share of rates and fees by customer classes fulfills this need for the Proposition 218 rate approval process.
The City Council awarded a contract for both water and wastewater rate studies to Black & Veatch Management Company, LLC of Los Angeles, CA (Black & Veatch) on February 7, 2023. Black & Veatch has completed the rate studies, including a financial plan, which recommend rate adjustments for the five-year projected period to fund critical capital infrastructure improvements and operating costs, as detailed in the Analysis below. Each study document will need to be adopted by City Council in order to recognize its conclusions and initiate the actions necessary to implement its recommendations.
Analysis:
Black & Veatch, in collaboration with key staff in the Utilities and Public Works Departments, has projected the operating, debt service, cash reserve, and capital improvement funding needs for the next five years and prepared a recommended rate schedule to ensure the necessary revenue stream. At this time, the water rate study is ready for adoption and initiation of a Proposition 218 process to implement the recommendations.
The recommended water service rates for the next five years for a typical single-family household are included below in Figure A. The full recommended rate schedule for all customer classes is included in the financial plan, which is calculated by the appropriate cost share for each customer class based on their meter size and impacts on the water system (Attachment 1).
Figure A
Current
Rates
Year 1 Year 2 Year 3 Year 4 Year 5
January 1,
2026
January 1,
2027
July 1, 2027 July 1, 2028 July 1, 2029
Water
1" Meter $42.59 $47.99 $52.79 $58.07 $60.40 $63.81
Change $5.40 $4.80 $5.28 $2.32 $2.42
Black & Veatch projected the revenue requirements and developed the proposed rate schedule to address the following factors:
• The City’s water utility is an “enterprise fund” utility. In California, enterprise-fund utilities must be self-supporting. In other words, the cost of providing service must be funded by those receiving services (via water rates).
• The City’s water rate revenue does not cover the costs of operating and maintaining the utility.
Underfunded maintenance and capital projects could lead to system failures, service disruptions, and large fines for violating state water quality and treatment regulations. • Water utility rates were last projected via rate study and adjusted in 2016. Since that time:
o Inflation has increased approximately 45% (based upon changes in Western Region CPI).
o State and federal water quality regulations have become stricter, and compliance more costly.
o Costs for equipment, water treatment chemicals, and labor and construction (for critical projects) have all increased significantly.
o Water infrastructure is aging, and in some cases failing, and must be repaired or replaced.
• Because customer costs for water service do not cover the City’s cost of providing those services, the City has had to defer routine maintenance, required facility repairs, and necessary capital projects.
• If continued, underfunding of the water utility could lead to system failures, service disruptions, and large financial penalties from state regulators for violating water quality regulations.
Black & Veatch and City staff have also prepared a Wastewater Rate Study; however, the recently received 100% construction cost estimate for the Outfall Diffuser Replacement Project has significantly increased the necessary capital funding for the rate study period. Utilities Department staff recommends further review and professional analysis of the revenue and expenditure needs to best ensure accurate financial information and appropriate cost share across all customer classes in light of this updated information. Staff intends to return to Council with the completed Wastewater Rate Study in late 2025/early 2026.
In order to move forward with the conclusions and recommendations of the rate study, Council will need to officially adopt the Water Rate Study and elect to initiate a Proposition 218 ballot process via Council Resolution. Upon direction from the Council at this time, staff will coordinate with Black & Veatch to finalize the draft of the rate study and bring forward the item for Council action.
Fiscal Impact:
This item is informative only and does not result in direct fiscal impact. Adoption of the rate study and a successful Proposition 218 process will be required in order to secure the rate adjustments and necessary cashflow recommended in the rate study.
Alternatives:
1. Direct staff to modify the draft rate study with different direction for rate changes and/or planned capital improvements prior to adoption.
2. Direct staff to delay adoption and the subsequent Proposition 218 process and keep water service rates at the current levels.
Recommendation:
Direct staff to finalize the Water Rate Study for adoption and initiation of the Proposition 218 process.
Attachments:
1. Attachment 1 - Excerpts from the Draft Water Rate Study 2025 Prepared By: Submitted By:
Scarlett O. Harris
Utilities Administrative Manager
Robert Bendorf
Interim City Manager
ATTACHMENT 1
Excerpts from the Draft Water Rate Study 2025
Figure 1-1 Water Utility Financial Plan
◼ Operation and Maintenance Expenses: The Water Utility anticipates O&M expenses to increase from $13.9M in FY 2025 to $15.9M in FY 2030. Water production and purchases account for a portion of this increase, averaging 25% of O&M expenses.
◼ Debt Service Payments: The Water Utility has existing debt service related to Series 2013 and 2017 Revenue Bonds plus, debt service on several State Revolving Fund (SRF) loans. It is expected that the Water Utility will require additional SRF loans in FY 2029 and FY 2030. Total debt service payments increase from $3.5M in FY 2025 to $4.1M in FY 2030.
◼ Capital Improvement Projects: The Water Utility plans to execute an average of $8.0M annually in capital projects from fiscal year FY 2025 to FY 2030.
◼ Reserves: The Water Utility plans to continue funding the operating fund reserve, maintain an adequate balance in its Water Cash CIP fund and maintain adequate debt service coverage. ● The operating fund reserve is to help cover fluctuations in day-to-day expenses. The scheduled target is 90 days of O&M expenses.
● The City targets to maintain enough funds to cover a portion of upcoming annual capital expenditures, smooth out the amount of capital infusion needed each year, and help mitigate unexpected capital costs. The scheduled target is 50% of the average five-year annual CIP.
Table 1-1 Proposed Five-Year Water Rate Schedule
Table 1-1 summarizes the Water Utility’s recommended five-year rate schedules for water services. Rates are effective January 1st for FY 2026 and FY 2027, then effective July 1st for following three fiscal years.
The rates developed in this study focused on FY 2026 through 2030.
Fiscal Year Ending June 30,
Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Monthly Fixed Charge ($/Month)
1" & less 42.59 47.99 52.79 58.07 60.40 62.81
1-1/2" 85.18 96.97 106.67 117.33 122.02 126.91
2" 170.39 177.96 195.75 215.33 223.94 232.90
3" 681.53 621.50 683.65 752.01 782.09 813.38
4" 1,363.08 1,205.80 1,326.38 1,459.02 1,517.38 1,578.08 6" 2,555.74 2,267.58 2,494.34 2,743.77 2,853.52 2,967.67 8" 5,963.42 5,125.55 5,638.10 6,201.91 6,449.99 6,707.99 Commodity Charges ($/HCF)
All Customers 2.14 2.28 2.50 2.75 2.86 2.98 Page 323 of 327 Figure 3-2 Status Quo Water Utility Financial Plan
To fully understand the current condition of the Water Utility, it is important to examine the cash flow projections under the status quo scenario. As shown in Figure 3-2, the status quo conditions would project that the Water Utility would operate from an annual deficit position, thus requiring the use of reserves to keep operating. In this scenario, the Water Utility would not impose any revenue increases over the Study period and continue to incur O&M expenses, make debt service payments, pay for the execution of the planned CIP, and transfer to reserves.
CITY OF YUBA CITY
Future Agenda Items
- Councilmember Cole
- Councilmember Kirchner
- Councilmember Pasquale
- Vice Mayor Boomgaarden
- Mayor Shaw
CITY OF YUBA CITY
Reports and Communications
The following reports and communication items are provided for the Council’s information. No action can be taken on items under this section unless the Council agrees to include it on a subsequent agenda
City Manager’s Report
CITY OF YUBA CITY
Reports and Communications
The following reports and communication items are provided for the Council’s information. No action can be taken on items under this section unless the Council agrees to include it on a subsequent agenda
City Council Reports
- Councilmember Cole
- Councilmember Kirchner
- Councilmember Pasquale
- Vice Mayor Boomgaarden
- Mayor Shaw
Adjournment