April 9, 2019

April 9, 2019

The City of Vacaville is committed to providing meeting facilities that are accessible to persons with disabilities. To request meeting materials in alternative formats, or to request a sign language interpreter, real-time captioning, or other accommodation, call 707-449-5409 (or 707-449-5162–TTY) at least two days prior to the meeting. Assistive listening devices may be obtained at the meeting or by calling the numbers above.

All items on the agenda can be opened for public comment before final action is taken. After staff has presented the item, the Mayor will open the matter for comments from the floor. Items on the Consent Calendar are routine business items that require no discussion and are acted upon in one motion. However, any item on the Consent Calendar can be removed and discussed separately upon request. The item “Business from the Floor” is the time to address the Council on matters that are not on the agenda that are within the Council’s subject matter jurisdiction. Comments should be kept to a maximum of three minutes per speaker or group spokesperson (per Government Code §54954.3(a); VMC §2.04.130).

1. ROLL CALL

Mayor/Chair Ron Rowlett Vice Mayor/Vice Chair Dilenna Harris Council/Agency/Authority Member Raymond Beaty Council/Agency/Authority Member Mitch Mashburn Council/Agency/Authority Member Nolan Sullivan

2. INVOCATION followed by the PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES – Approve the Minutes for the meeting of March 26, 2019. 5. PRESENTATIONS –

A. PRESENTATION OF PROCLAMATION FOR FAIR HOUSING MONTH (Contact: Tamara Colden, (707) 449-5671)

AGENDA FOR THE REGULAR CONCURRENT MEETING OF THE CITY

COUNCIL, SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, HOUSING

AUTHORITY, GROUNDWATER SUSTAINABILITY AGENCY AND PUBLIC FINANCING AUTHORITY

OF THE CITY OF VACAVILLE APRIL 9, 2019

6:00 p.m. Vacaville City Hall Council Chamber 650 Merchant Street

Entrance to the Council Chamber is located in the parking area off of Walnut Avenue

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April 9, 2019

B. FIRE EXPLORER PROGRAM (Contact: Kris Concepcion, (707) 449-5452)

6. CONSENT CALENDAR –

A. ORDINANCE AMENDING THE VACAVILLE MUNICIPAL CODE BY ADDING DIVISION 14.28, AGRICULTURAL AND AVIAN FORAGING HABITAT MITIGATION FEE PROGRAM (Second Reading) (Contact: Fred Buderi, (707) 449-5307) Individual Action: By simple motion, adopt the subject ordinance. Pg. 5

B. ORDINANCE AMENDING VACAVILLE MUNICIPAL CODE SUBSECTION 11.01.070(D) RELATED TO REVIVAL OF EXPIRED DEVELOPMENT IMPACT FEE CREDITS (Second Reading) (Contact: Barton Brierley, (707) 449-5361) Individual Action: By simple motion, adopt the subject ordinance. Pg. 15

C. RESOLUTION ACCEPTING PUBLIC IMPROVEMENTS FOR THE MCBRIDE SENIOR CENTER AND ULATIS CULTURAL CENTER FLOORING PROJECT (Contact: Tim Burke, (707) 449-5170) Individual Action: By simple motion, adopt the subject resolution. Pg. 23

D. RESOLUTION APPROVING AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT BETWEEN THE CITY OF VACAVILLE AND CFY DEVELOPMENT, INC. TO NEGOTIATE A DISPOSITION, DEVELOPMENT AND LOAN AGREEMENT FOR A MIXED INCOME RENTAL AND FOR-SALE HOUSING DEVELOPMENT ON CITY-OWNED PROPERTY ON VANDEN ROAD (APN 0136-080-040) (Contact: Daniel Huerta, (707) 449-5664) Individual Action: By simple motion, adopt the subject resolution. Pg. 27

E. AUTHORIZATION FOR THE CITY MANAGER TO ENTER INTO AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT FOR A HOTEL AND CONFERENCE CENTER WITH NT HOTEL PARTNERS, LLC (Contact: Don Burrus, (707) 449-5165) Individual Action: By simple motion, authorize the City Manager, or his designee, to enter into an Exclusive Negotiating Rights Agreement with NT Hotel Partners, LLC. Pg. 43

F. RESOLUTION AUTHORIZING A ONE-TIME $73,600 EXPENDITURE FOR EMERGENCY REPLACEMENT OF LAGOON VALLEY OPEN SPACE CATTLE FENCING DUE TO NELSON FIRE (Contact: Brian McLean, (707) 449-6504) Individual Action: By simple motion, adopt the subject resolution. Pg. 57

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April 9, 2019

RECOMMENDED ACTION ON ALL CONSENT CALENDAR ITEMS – By simple motion, adopt the items on the Consent Calendar. 7. BUSINESS FROM THE FLOOR – This is the time to address the Council with issues that are not on the agenda that are within the Council’s subject matter jurisdiction. Maximum three minutes per speaker or group spokesperson per Government Code §54954.3(a); VMC §2.04.130. 8. PUBLIC HEARINGS –

A. APPROVAL OF VACAVILLE HOUSING AUTHORITY FISCAL YEAR 2019-2020 STREAMLINED ANNUAL PUBLIC HOUSING AGENCY PLAN (Contact: Tamara Colden, (707) 449-5671) Recommended Action: By simple motion, approve the Vacaville Housing Authority Fiscal Year 2019-2020 Streamlined Annual Public Housing Agency Plan. Pg. 59

9. BUSINESS –

A. RESOLUTION REQUESTING A GENERAL FUND BUDGET AUGMENTATION FOR $16,203 FOR FY 18/19 TO FUND TWO BEDS AT SHELTER SOLANO FOR THE HOMELESS IN NEED OF INTENSIVE CASE MANAGEMENT AND TWO BEDS AT A LOCAL HOTEL TO ASSIST THOSE IN NEED OF IMMEDIATE/TEMPORARY SHELTER (Contact: Lieutenant Chris Polen, (707) 449-5407) Recommended Action: By simple motion, adopt the subject resolution. Pg. 69

B. RESOLUTION ADOPTING AN INTERIM POLICY, DESIGN STANDARDS AND APPLICATION PROCESS GOVERNING THE INSTALLATION OF SMALL WIRELESS FACILITIES (Contact: Shawn Cunningham, (707) 449-5170) Recommended Action: By simple motion, adopt the subject resolution. Pg. 73

C. STUDY SESSION ON POSSIBLE VACAVILLE ORDINANCE(S) GOVERNING LAND USE REGULATIONS OF COMMERCIAL AND PRODUCTION ACTIVITIES RELATED TO CANNABIS (Contacts: Christina Love, (707) 449-5374 and David Nam, (707) 449-5309) Recommended Action: That the City Council direct staff on a course of action, based on the options discussed, related to regulations of commercial and industrial cannabis activities. Pg. 97

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April 9, 2019

D. DOWNTOWN SPECIFIC PLAN & DOWNTOWN CONNECTIVITY AND STREETSCAPE DESIGN PLAN - APPOINTMENT OF A COMMUNITY MEMBER TO SERVE ON THE COMMUNITY ADVISORY COMMITTEE (Contact: Tyra Hays, (707) 449-5366) Recommended Action: By simple motion, appoint Mr. Baun to the Community Advisory Committee for the Downtown Specific Plan and the Downtown Connectivity and Streetscape Design Plan. Pg. 121

10. REPORTS OF CITY MANAGER – 11. REPORTS OF CITY COUNCIL – 12. PAYMENT OF CLAIMS –

A. APPROVAL OF ACCOUNTS PAYABLE AND PAYROLL PAYMENT OF CLAIMS FOR THE WEEKS ENDING MARCH 22, 2019 AND MARCH 29, 2019 AND WIRE AND ACH DISBURSEMENTS FOR THE MONTH OF MARCH 2019 (Contact: Ken Matsumiya, (707) 449-5180) Recommended Action: By simple motion, approve the Payment of Claims. Pg. 123

13. CLOSED SESSION –

A. CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Section 54957.6)

Negotiation Parties: Agency Negotiators: Jeremy Craig, City Manager Dawn Leonardini, Director of Administrative Services

Employee Organizations: All City of Vacaville labor bargaining units; and unrepresented employees.

14. ADJOURNMENT – Adjourn to the next meeting of Tuesday, April 23, 2019. All public records relating to an open session item, which are not exempt from disclosure pursuant to the Public Records Act, that are distributed to a majority of the City Council will be available for public inspection during normal business hours at the City Administration Counter at City Hall, 650 Merchant Street. The City may charge customary photocopying charges for requested copies of such documents. This agenda and related materials may also be available on the City’s website under ‘Public Meetings and Agendas’ subject to staff’s ability to post the documents prior to the meeting. To view City Council meetings, tune in to cable Channel 26, or log onto the City’s website at www.cityofvacaville.com to watch the meeting live or on demand. If you have questions, please contact the City Clerk’s office at 707-449-5100.

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http://www.cityofvacaville.com/

Agenda Item No. 6A April 9, 2019

TO: Honorable Mayor and City Council Attention: Jeremy Craig, City Manager FROM: Barton Brierley, AICP, Community Development Director (Staff Contact: Fred Buderi, (707) 449-5307) SUBJECT: ORDINANCE AMENDING THE VACAVILLE MUNICIPAL CODE BY ADDING

DIVISION 14.28, AGRICULTURAL AND AVIAN FORAGING HABITAT MITIGATION FEE PROGRAM (Second Reading)

BACKGROUND: On March 26, 2019, the City Council introduced the ordinance establishing a mitigation fee program for agricultural lands and avian foraging habitat as part of the City’s development regulations. The program would address strategies to mitigate the impacts of certain development on these resources. This project establishes the program as a chapter in the Municipal Code and authorizes the City to enter into an agreement with the Solano Land Trust (SLT) to acquire conservation lands or conservation easements with funds collected by the City. DISCUSSION: The program would be funded with mitigation fees paid by development. Developers would pay fees based on the acreage impacted prior to receiving grading permits or final maps. After withholding any City administrative fees, funds would be forwarded to the SLT within a specified time period. The fee would be evaluated on a regular basis to ensure that the fees are adequate to fund land or conservation easement acquisition, City and SLT administrative costs, and on-going monitoring of conserved lands. The proposed program is a feasible alternative for ensuring careful mitigation of impacts as required by the environmental review process. Developers would still have the option to acquire mitigation lands on their own, rather than use the fee program. The program implements an alternative addressed in the General Plan. RECOMMENDATION: By simple motion, adopt the subject ordinance. ATTACHMENTS: Action Item – Ordinance

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ORDINANCE NO. 1942 (Second Reading)

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VACAVILLE AMENDING THE

VACAVILLE MUNICIPAL CODE BY ADDING DIVISION 14.28 RELATED TO AGRICULTURAL AND AVIAN FORAGING HABITAT MITIGATION

WHEREAS, the Vacaville 2015 General Plan Policies LU-P2.4 and LU-P5.2 establish

requirements that development on certain agricultural lands purchase conservation easements to permanently protect agricultural land of equal or greater value at a ratio of 1 acre conserved for each 1 acre developed; and

WHEREAS, the Vacaville 2015 General Plan Policies COS-P1.6 and P1.12 and Action COS A-1.1 require that new development minimize the disturbance of natural habitats and that until the Solano Habitat Conservation Plan (HCP) is adopted, that the City comply with all of the avoidance, minimization, and mitigation measures listed in the draft HCP which would include minimization of impacts to avian species foraging habitat; and

WHEREAS, Vacaville 2015 General Plan Policy LU-P5.2 contemplates and provides for the establishment of a fee that new development would have the option of paying pursuant to a mitigation program established by the City in cooperation with Solano Land Trust or other qualified agency in lieu of securing conservation easements or otherwise permanently protecting agricultural and open space lands (“agricultural and avian foraging habitat mitigation in-lieu fee”); and

WHEREAS, development projects subject to a proposed agricultural and avian foraging habitat mitigation in-lieu fee would be subject to project-specific review under the California Environmental Quality Act (CEQA) as part of the City’s development review process, at which time a project’s effects on resources and any mitigation requirements would be determined; and

WHEREAS, the City has conducted a detailed analysis to determine an adequate in-lieu fee which could be collected as an alternative method of funding conservation easement or land acquisition for the purposes of mitigating development impacts on agricultural land and avian foraging habitat and has developed a program, in partnership with the Solano Land Trust, that provides procedures that would feasibly implement the acquisition of such mitigation lands; and

WHEREAS, the proposed program is exempt from the California Environmental Quality Act (CEQA) pursuant to several categorical exemptions: Under 14 California Code of Regulations Section 15307, which addresses actions taken by regulatory agencies for the protection of natural resources, the proposed program, adopted by ordinance, would implement procedures for the acquisition of agricultural and avian foraging habitat lands in order to protect the resources affected by development. The proposed program involves procedures for the identification of impacts to resources, a method of collecting adequate funds to purchase mitigation lands or conservation easements in compliance with City and Solano LAFCO standards for the protection of these resources, and on-going monitoring and enforcement of mitigation acquisitions and limitations on land use; Section 15317, which provides for the creation of open space easements and agricultural preserves; and Section 15313 because the program will provide for the acquisition of lands for wildlife conservation purposes by preserving habitat. The program is also covered by the general rule that CEQA does not apply to projects where it can be seen with certainty that there is no potential for a significant impact to the environment (15061(b) (3)). Therefore the City finds that the adoption of the proposed

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Agricultural and Avian Foraging Habitat Mitigation fee program will not have a significant effect on the environment and is exempt from CEQA review; and

WHEREAS, the City Council finds this proposed addition of Division 14.28 is necessary and supported for the reasons stated in the Vacaville Agricultural and Avian Species Impact Mitigation Fee Study, dated June 2018 and specifically:

(a) Development of property consistent with the vision of the Vacaville General Plan will result in the conversion of productive agricultural land and avian non-riparian foraging habitat; and

(b) The preservation of agricultural resources also preserves the landscape and environmental resources; and

(c) Permanent preservation of agricultural and foraging habitat land is consistent with the policies of the Vacaville General Plan; and

(d) The preservation of certain types of agricultural land results in benefits to foraging habitat for certain avian species; and

(e) Pooling resources for the preservation of agricultural lands will result in the ability to acquire larger easement areas, provide additional certainty in the ability to mitigate for agricultural and avian foraging habitat impacts compared to development projects arranging their own conservation projects; and

(f) Compliance with this division will provide an alternative method and procedure to mitigate agricultural land and non-riparian avian foraging habitat environmental impacts; and

(g) Adoption of this ordinance will not have a significant effect on the environment as described above, and is exempt from the provisions of CEQA pursuant to CEQA guidelines 15307, 15313, and 15317.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF VACAVILLE DOES ORDAIN AS FOLLOWS:

Section 1. Incorporation of Recitals and Findings

The City Council reaffirms and the recitals and adopts the findings above.

Section 2. Addition of Division 14.28 to the Vacaville Municipal Code

Division 14.28 shall be added to the Vacaville Municipal Code, to read in full as follows:

14.28.010 Title: AGRICULTURAL AND AVIAN FORAGING HABITAT IMPACT MITIGATION PROGRAM

This division shall be known as the “Agricultural and Avian Foraging Habitat Impact Mitigation Program” and may be so cited.

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14.28.020 Purpose.

The purposes of this division are to implement the agricultural land and habitat conservation policies contained in the 2015 Vacaville General Plan related to permanently protecting agricultural land, avian foraging habitat, and open space. Those policies include:

A. General Plan Policy LU-P2.4 related to the conversion of Prime Farmland, Farmland of Statewide Importance, or Unique Farmland.

B. General Plan Policy LU-P5.2 related to the conversation of agricultural and open space lands in the East of Leisure Town Road Growth Area.

C. Consistent with General Plan Policy COS-A1.1, develop a standardized policy for providing mitigation under the California Environmental Quality Act (Public Resources Code § 21000, et seq. “CEQA”) for development projects’ impacts to avian non-riparian foraging habitat.

14.28.030 Applicability.

This division shall apply to development projects that require mitigation for impacts to agricultural lands and/or to avian species non-riparian foraging habitat. 14.28.040 Mitigation Requirements.

A. Mitigation Required. The City shall require agricultural or avian foraging habitat mitigation for any of the following actions:

1. Development projects that convert prime farmland, farmland of statewide importance, or unique farmland (as classified by the California Department of Conservation).

2. Development projects East of Leisure Town Growth Area that convert agricultural or open space lands.

3. Development projects that require annexation to the City that also convert prime farmland as defined by Government Code § 56064.

4. Development projects that convert land determined to be avian species non-riparian foraging habitat.

B. Types of Mitigation. Development projects required to provide mitigation under this division may elect one or a combination of both of the following options to satisfy the project’s mitigation obligation(s):

1. Provide direct agricultural and/or avian habitat foraging mitigation as specified in Section 14.28.040.D; and/or

2. Pay the appropriate fee as indicated in Section 14.28.040.E.

C. Compliance with Mitigation. Compliance with this division shall be considered adequate mitigation under CEQA for agricultural and non-riparian avian foraging

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habitat impacts to the maximum extent permitted by law. If a development project, in the applicant’s discretion, seeks to mitigate for impacts to non-riparian avian foraging habitat resulting from the conversion of agricultural or open space lands through the payment of an in-lieu fee, the applicant shall pay the fee established under Section 14.28.040.E for such purposes.

D. Direct Provision of Agricultural Mitigation Land. Agricultural mitigation shall be satisfied by granting a permanent agricultural conservation easement or other permanent agricultural conservation mechanism to or for the benefit of an entity qualified to hold such instrument. The number of acres of agricultural mitigation land shall be equal to the number of acres that will be converted to a non-agricultural use or, in the East of Leisure Town Growth Area, converted to a non-Agricultural or non-open space use (i.e., a 1:1 ratio). The direct provision of agricultural mitigation land is subject to the following provisions:

1. The location and characteristics of the agricultural mitigation land shall comply with General Plan Policy LU-P2.4, and/or General Plan Policy LU-P5.2, as applicable. The agricultural mitigation land should be of substantially comparable or better soil quality than the agricultural land whose use is being changed to nonagricultural use.

2. The Director of Community Development or his/her designee shall review each agricultural conservation easement or other preservation instrument for consistency with General Plan Policy LU-P2.4, and/or General Plan Policy LU-P5.2, as applicable.

3. The agricultural conservation easement or other preservation instrument shall:

a. Be executed by all owners of the agricultural mitigation land.

b. Be in form suitable for recordation.

c. Contain an accurate legal description setting forth the description of the agricultural mitigation land.

d. Prohibit new residential and/or commercial development on agricultural or habitat mitigation land that is not directly needed for agricultural production except for a single dwelling unit farmstead.

e. Protect the existing water rights and retain them with the agricultural mitigation land.

f. If intended to provide mitigation under CEQA for impacts to avian foraging habitat, include use restrictions generally consistent with the draft Solano HCP (or final HCP if adopted) related to foraging habitat for the avian species impacted by the development project. Within one (1) year after the adoption of this division, the Director of

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Community Development shall develop a checklist to be used to ensure compliance with this subsection 6.

g. Be held by an entity qualified to hold such an instrument. The City shall be a third-party beneficiary of the legal instrument.

E. In-Lieu Fees. The city establishes in-lieu fees for the satisfaction of agricultural and avian foraging habitat mitigation subject to the following provisions:

1. The fee shall be based on the cost of purchasing farmland conservation easements on land of comparable size and agricultural quality, plus the estimated cost of legal, appraisal and other costs, including staff time, administer this program and to acquire, manage, and enforce the farmland conservation easement or other agricultural or avian foraging habitat mitigation instrument.

2. The City Council shall approve by resolution the amount of the in-lieu fee. Such fees shall include at least two levels: 1) A fee for agricultural mitigation only; and 2) a fee for avian foraging habitat mitigation only. The City Council may establish a third level that provides for a fee for concurrent mitigation of agricultural and non-riparian avian foraging habitat impacts. If an applicant seeks to mitigate for both agricultural and avian impacts, it shall pay the sum of both fees or may pay the concurrent mitigation fee, if established. The amount of the fee shall be supported by a fee study conducted by the City of Vacaville as it may be amended, updated or wholly replaced from time to time. The fee may be adjusted as part of the tri-annual review of the fee program described in Section 14.28.050.A or at any interval deemed necessary to ensure adequate funding for the mitigation purposes of this ordinance.

3. The amounts collected under this chapter shall be deposited into a fund created for this fee following the procedure set forth for development impact fees in Section 11.01.030. A of the municipal code.

4. Within sixty (60) days after collection by the City or as soon thereafter as a Management Entity has been appointed, in-lieu fees shall be apportioned as detailed in the City’s fee study between the City of Vacaville and the Management Entity, and that portion due to the Management Entity shall be transferred to a fund administered by the Management Entity defined in Section 14.28.050A.

F. Payment of an in-lieu fee is subject to the following provision:

The in-lieu fee shall be paid for a development project electing to participate in the fee program prior to (i) the issuance of each grading permit; or (ii) subject to the approval of the Community Development Director, recording of each final map. The amount of the in-lieu fee shall

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be determined on a pro-rata basis based on the acreage associated with each grading permit or final map.

14.28.050 Implementation of Fee Program.

A. Initiation and Approval. The City Manager or his/her designee shall develop, and is authorized to enter into an Implementation Agreement, or similar document (“Implementation Agreement”), with the Solano Land Trust, or if the Solano Land Trust does not participate in the preparation of the Implementation Agreement after good faith efforts by City, another non-profit entity with expertise in the preservation of agricultural and habitat lands and that is qualified to hold conservation easements (the “Management Entity”). Thereafter, the Implementation Agreement and amount of in-lieu fees shall be reviewed and when appropriate, updated by the City Council at a minimum every three (3) years.

B. Purpose and Contents. The purpose of the Implementation Agreement is to ensure that the acquisition of agricultural and habitat mitigation land through in-lieu fees is achieved in a timely and efficient manner and to provide performance tracking of the acquisition program. The Implementation Agreement may consist of any combination of policies, evaluation criteria, maps, and other useful decision-making tools. It shall be of sufficient specificity to provide adequate guidance on location, timing, and other factors to be considered in implementation of the acquisition program.

C. Issues to Be Considered. The Implementation Agreement shall consider the following issues:

1. The goal to include contiguous parcels and areas large enough to preserve agricultural operations and/or foraging habitat lands.

2. The qualities of agricultural land and the type of activities allowed on agricultural mitigation lands.

3. Other relevant factors that would result in the more effective preservation of agricultural and foraging habitat lands as required to meet General Plan policies, SLT conservation goals, and mitigation requirements for individual projects, including:

a. Land within one mile from the city’s Urban Growth Boundary (UGB).

b. Land outside of the UGB, but within Pleasants Valley, Upper

Lagoon Valley, or Vaca Valley.

c. Land within two miles from the city UGB.

d. In the event that adequate land to meet the conservation goals described in the Vacaville General Plan cannot be identified or acquired, the City and the SLT shall meet and confer to identify other areas where conservation acquisitions can occur at a

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reasonable cost and to satisfy the conservation goals described in the agreement.

D. Use of Fees. The in-lieu fees shall be administered by the Management Entity in fulfillment of its programmatic responsibilities under the Implementation Agreement. These responsibilities include acquiring interests in land and administering, monitoring and enforcing the agricultural and habitat conservation easement or other instrument designed to preserve the agricultural values of the land for agricultural and habitat mitigation purposes.

E. Disposition of Land. Interests in agricultural and/or habitat mitigation land shall be held in trust by the Management Entity in perpetuity.

F. Monitoring and Enforcing. The Management Entity shall monitor all lands and easements acquired under this Section 14.28.050 and the Implementation Agreement, and shall review and monitor the implementation of all management and maintenance plans for these lands and easement areas. It shall also enforce compliance with the terms of the conservation easements or other agricultural and/or habitat mitigation instruments.

G. Reporting by Management Entity. Beginning one year after the adoption of this division, the Management Entity shall provide in writing to the Community Development Director an annual report delineating the activities undertaken pursuant to the requirements of this Section 14.28.050 and the Implementation Agreement, and an assessment of these activities. The report(s) shall describe the status of all lands and easements acquired under Section 14.28.050, including a summary of all enforcement actions, as well as an accounting of all un-expended in-lieu funds received by the Management Entity and the plans, timing and actions taken related to use of those fees.

H. Provisions for Monitoring Implementation. Within the timeframes identified in 14.28.050.A above for review and update of in-lieu fees, the City shall report to the City Council on the status of meeting the mitigation goals for which in-lieu fees were collected, including identification of the numbers of acres of each type of mitigation land preserved to-date.

14.28. 060 Precedence.

To the extent allowed by law, this division shall take precedence over all ordinances or parts of ordinances or resolutions with which it may conflict.

Section 3. Severability

If any section, subsection, phrase or clause of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance.

The City Council hereby declares that it would have passed this ordinance and each section, subsection, phrase, or clause thereof irrespective of the fact that any one or more sections, subsections, phrases, or clauses be declared unconstitutional.

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Section 4. Effective Date

This ordinance shall take effect thirty (30) days after passage thereof.

Section 5. Publication

This ordinance shall be published in accordance with the provisions of Government Code Section 36933.

I HEREBY CERTIFY that this ordinance was introduced at a regular meeting of the City

Council of the City of Vacaville, held on the 26th day of March, 2019 and passed at a regular meeting of the City Council of the City of Vacaville, held on the 9th day of April, 2019 by the following vote:

AYES:

NOES: ABSENT:

APPROVED:

________________________________

Ron Rowlett, Mayor

ATTEST: ________________________________

Michelle Thornbrugh, City Clerk

Dated: _______________________

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Agenda Item No. 6B April 9, 2019

TO: Honorable Mayor and City Council Attention: Jeremy Craig, City Manager FROM: Barton Brierley, AICP, Community Development Director (Staff Contact: Barton Brierley, (707) 449-5361) SUBJECT: ORDINANCE AMENDING VACAVILLE MUNICIPAL CODE SUBSECTION

11.01.070(D) RELATED TO REVIVAL OF EXPIRED DEVELOPMENT IMPACT FEE CREDITS (Second Reading)

BACKGROUND: On March 26, 2019, the City Council introduced an ordinance related to development impact fee credits. The proposed ordinance would establish a process that would allow revival of expired impact fee credits based on prior uses for the East Main District project and other projects that promote specific economic development projects, affordable housing developments, remove blight, or promote other General Plan goals.

ENVIRONMENTAL DETERMINATION:

This fee credit ordinance is not a project as defined in Government Code Section 21065 as it does not cause either a direct physical change in environment, or a reasonably foreseeable indirect physical change in the environment. Therefore the ordinance is exempt from review under California Environmental Quality Act.

FISCAL IMPACT:

Potential fee credits for the East Main District project are around $850,000. By adopting the ordinance the City would be foregoing collection of these fees. This would affect various development impact fee accounts. However, major infrastructure to serve this site, such as the upgrades to the sewer line, was funded through redevelopment funds.

RECOMMENDATION:

By title only, introduce the subject ordinance. ATTACHMENTS:

Action Item – Ordinance

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ORDINANCE NO. 1943 (Second Reading)

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VACAVILLE AMENDING

VACAVILLE MUNICIPAL CODE SUBSECTION 11.01.070(D) RELATED TO REVIVAL OF EXPIRED DEVELOPMENT IMPACT FEE CREDITS

WHEREAS, the Vacaville Municipal Code requires developers of new uses to pay Development Impact Fees to offset the cost of providing various public facilities to serve that use; and

WHEREAS, the Vacaville Municipal Code provides credits against those impact fees due where a previous structure or use occupied the site and utilized the public facilities; and

WHEREAS, the Vacaville Municipal Code does not allow fee credits for structures demolished prior to January 1, 2009 or uses that were terminated prior to January 1, 2004 unless the property owner had a valid fee credit agreement as of December 31, 2018; and

WHEREAS, the City recently approved the East Main District Project, which will provide a substantial economic boost to revitalize Downtown Vacaville. The East Main District site previously had several structures that were demolished prior to January 1, 2009. The Council wishes to allow impact fee credits based on these prior uses; and

WHEREAS, there may be other circumstances where revival of expired fee credits may be desirable to promote specific economic development projects, affordable housing developments, remove blight, or promote other General Plan goals. The Council wishes to establish a process that would allow the Community Development Director to consider such requests.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF VACAVILLE DOES ORDAIN AS FOLLOWS:

Section 1. Amendment of Subsection 11.01.070(D), Fee Credits Based on Replacement of Existing Structures or Change in Use, of the Vacaville Municipal Code.

Subsection 11.01.070(D), entitled “Fee Credits Based on Replacement of Existing Structures or Change in Use” under Section 11.01.070 entitled “Credit and reimbursement for contingent reimbursement or for construction of facilities,” of the Vacaville Municipal Code is hereby amended to read in full as follows.

D. Fee Credits Based on Replacement of Existing Structures or Change in Use.

1. General Provisions. The amount of a development impact fee which would otherwise be due and payable in accordance with the provisions of this title, may be reduced by fee credits established by prior, legally established use. The term, transfer and amount of fee credits shall be in accordance with the provisions of this section.

2. Fee Credits for Demolitions. The City shall provide development impact fee credits for new development on the same site as prior demolished structures in accordance with the following provisions.

a. Fee credits will be given for structures demolished on or after January 1, 2009.

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b. For structures demolished on or before December 31, 2008, the City will give fee credits if the property owner entered into a fee credit agreement under prior ordinances and those fee credits were available as of December 31, 2018. The intent of this provision is to extend those prior fee credit agreements indefinitely with no further action, but not to revive fee credits that already have expired.

c. The fee credit shall be based on the last legally established use of the structure or the use as established in a fee credit agreement under prior ordinances.

d. The property owner shall obtain a demolition permit for the structure. The demolition permit application shall include the date of demolition, the prior use, the floor area, and other information necessary to determine the amount of fee credits available. If this information is lacking on previously issued demolition permits, the Building Official is authorized to issue a corrected demolition permit based on the property owner supplied correct information. The Building Official also is authorized to issue a demolition permit for a structure destroyed by casualty such as fire, in which case the date of demolition shall be considered the date of the casualty.

e. When only part of available fee credits is used, the remaining credits will remain available for future use on the site.

3. Fee Credits for Change of Use. The City shall provide development impact fee credits where the use of a structure or site is changed in accordance with the following provisions.

a. Fee credits will be given based on legally established uses that were active and terminated on or after January 1, 2004.

b. For uses terminated on or before December 31, 2003, the City will give fee credits if the property owner entered into a fee credit agreement under prior ordinances and those fee credits were available as of December 31, 2018. The intent of this provision is to extend those prior fee credit agreements indefinitely with no further action, but not to revive fee credits that already have expired.

c. For a multi-tenant building, the determination of prior, legally established uses and eligibility of fee credits shall be made separately for each tenant space.

d. For a site containing one or more buildings, the determination of prior, legally established uses and eligibility of fee credits shall be made separately for each building.

e. Fee credits established by a change in use within an existing structure may not be transferred between tenant spaces in the same building or between buildings.

f. For a structure, site, or tenant space that had multiple prior legally established uses that could be the basis for fee credits, the fee credit shall be based on the prior eligible use with the greatest “equivalent dwelling unit” (EDU) count.

4. Revival of Expired Fee Credits. Notwithstanding the above, a property owner may make a written request to the Community Development Director to revive expired fee credits based on demolished structures or a change of use prior to the dates established in subsections 2 or 3 of this section. Approval of revival of such fee credits is at the sole discretion of the Community Development Director following consultation with the department head most directly responsible

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for use of the impact fee credits to be revived. The Director’s decision shall be based on the following criteria:

a. The prior use in fact was connected to and used the existing facilities.

b. The circumstances in relation to the public facilities, public facility plans, and surrounding uses are substantially the same as when the prior use was discontinued.

c. There is adequate system capacity to serve the project, and revival of the fee credits would not affect the ability to provide the impact fee funded improvements.

d. Revival of the fee credits would facilitate an economic development project consistent with the City’s economic development strategy, provision of affordable housing, removal of blight, or other General Plan goals.

5. Transfer of Fee Credits. Notwithstanding the above, a property owner may make a written request to the Community Development Director to transfer fee credits otherwise available to another site, building, or tenant space. The property owners of the original and destination sites shall enter into a written agreement detailing the location, type and amount of fee credits to be transferred. Approval of such a transfer agreement is at the sole discretion of the Community Development Director following consultation with the department head most directly responsible for use of the impact fee credits to be transferred. The decision shall be based on the following criteria:

a. The fee transfer would not affect the ability to provide the impact fee funded improvements.

b. The original site is unlikely to be reused or redeveloped at the same level as the prior use in the future.

c. The transfer would facilitate economic development, housing, or other General Plan goals.

6. Credit shall be given on an EDU basis, not dollar amount of fees previously paid. The amount of the additional fee would be the difference between the current fee for the use in the highest fee category and the current fee for the new use.

7. It shall be the presumption of the City that no fee credits are available until and unless the applicant, at his/her sole responsibility, supplies sufficient, credible evidence regarding prior legal uses of a property, date of demolition, or other pertinent information. In order to use a fee credit in lieu of payment for all or a portion of the development impact fees which would otherwise be due and payable, a property owner must submit, in advance of obtaining the permit, a written request for fee credit and any evidence demonstrating a property is eligible for fee credit in accordance with the provisions of this section. Once development impact fees are paid in conjunction with the issuance of a building permit for a replacement structure or change in use of a structure or property, the City shall not consider a subsequent request for fee credits or refund those development impact fees paid.

8. No fee credit shall be given for a structure or a use established prior to annexation of the property to the City, unless such structures or uses are also in existence or operation subsequent to annexation.

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9. Prior to recordation of a parcel map or final map for a parcel which has fee credits, the property owner shall provide a written declaration to the City regarding the manner of allocation of the fee credits among the newly created parcels.

10. When two or more contiguous parcels are subject to a lot line adjustment, parcel map or final map, and one or more of these parcels have fee credits, the property owner has the right to transfer fee credits to the newly created or adjusted parcels. Prior to map recordation, the property owner shall provide a written declaration to the City regarding the manner of allocation of the fee credits among the newly created parcels.

11. The amount of the fee credit shall not exceed the amount of the new fee; each development impact fee and fee credit shall be calculated separately; total fee credits shall not be subtracted from the total sum of development impact fees.

12. A modification to a residential structure which remains in residential use or a replacement of a residential structure with a new residential structure are both exempt from new impact fees unless additional dwelling units are added; there shall be a per dwelling unit charge for each additional dwelling unit.

13. Any fee credit must be approved by the Director of Community Development or designee, following consultation with the department head most directly responsible for use of that impact fee.

14. Notwithstanding the other provisions of this section, no fee credit shall be given for sewer, water or drainage development impact fees unless a property was served by that respective municipal system.

15. The City Council may, by resolution, adopt a fee for administering the transfer of fee credits and the research of City records to determine the amount of fee credits.

16. The calculation of fee credits for specific development impact fees shall be in accordance with the general procedures listed in subsections D.(1) through (15) of this section except as may be modified by the following provisions:

a. A property having an existing municipal water service shall be exempt from payment of additional impact fees for a change in use or replacement of structures if the new use can be adequately served by a water meter whose size is the same or less than the size of the existing meter. If the new use or new structure requires a larger meter than the existing meter, the property owner shall only pay the difference between the current connection fee for the smaller meter and the current connection fee for the larger meter.

b. For a property served by an existing water meter larger than four inches in diameter, the Director of Public Works shall determine the amount of fee credit on a case-by-case basis, for a change in use or replacement of structures. Upon a request by the property owner, this determination shall be made concurrently with consideration of an application for a planning approval, such as design review, conditional use permit or variance.

c. A change in use of a nonresidential building shall be subject to additional traffic impact, general facilities and police impact fees only if:

i. The new use is in a higher fee category than the prior use; and

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ii. The change in use involves more than 10,000 square feet of floor area.

d. A change in use or replacement of a structure shall not be subject to additional fire impact fees unless it is in conjunction with an increase in the developed portion of the site; any additional developed site area shall be subject to a per acre charge.

e. A change in use or replacement of a structure shall not be subject to an additional drainage fee unless it is in conjunction with an increase in the developed portion of the site; any additional developed site area shall be subject to a per acre charge.

f. A change in nonresidential use of a building or property which is served by municipal sewer service shall be subject to additional impact fees only if:

i. The new use is in a higher fee category than the prior use; and

ii. A building permit for construction of the structure was issued after June 20, 1960. No new sewer connection fees shall be charged for a change in use of a structure which was constructed pursuant to a building permit issued on or before June 20, 1960.

g. If a property is served by an existing sewer lateral which is larger than eight inches in diameter, the Director of Public Works shall determine the amount of fee credit on a case-by-case basis, for a change in use or replacement of structures. Upon a request by the property owner, this determination shall be made concurrently with consideration of an application for a planning approval, such as design review, conditional use permit or variance.

Section 2. Severability.

If any section, subsection, phrase or clause of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance.

The City Council hereby declares that it would have passed this ordinance and each section, subsection, phrase, or clause thereof irrespective of the fact that any one or more sections, subsections, phrases, or clauses be declared unconstitutional. Section 3. Effective Date.

This ordinance shall take effect thirty (30) days after passage thereof. Section 4. Publication.

This ordinance shall be published in accordance with the provisions of Government Code Section 36933.

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I HEREBY CERTIFY that this ordinance was introduced at a regular meeting of the City Council of the City of Vacaville, held on the 26th day of March 2019, and ADOPTED and PASSED at a regular meeting of the City Council of the City of Vacaville held on the 9th day of April 2019, by the following vote:

AYES: NOES: ABSENT:

APPROVED:

________________________________ Ron Rowlett, Mayor

ATTEST: ________________________________

Michelle Thornbrugh, City Clerk

Dated: _______________________

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Agenda Item No. 6C April 9, 2019

TO: Honorable Mayor and City Council Attention: Jeremy Craig, City Manager FROM: Shawn L. Cunningham, Director of Public Works (Staff Contact: Tim Burke, (707) 449-5170) SUBJECT: RESOLUTION ACCEPTING PUBLIC IMPROVEMENTS FOR THE MCBRIDE

SENIOR CENTER AND ULATIS CULTURAL CENTER FLOORING PROJECT DISCUSSION: A contract for the McBride Senior Center and Ulatis Cultural Center Flooring Project was awarded on October 9, 2018, to West Coast Industrial Flooring Inc. of Rancho Cordova, California, in the amount of $355,143.00. The project consisted of the replacement of nearly 6,000 square feet of existing vinyl sheet flooring at the McBride Senior Center (see Attachment 1) including the meeting rooms, assembly rooms and multipurpose rooms and nearly 13,000 square feet of existing vinyl sheet flooring at the Ulatis Cultural Center (see Attachment 2) including the lobby, corridors, multipurpose room and kitchen with an epoxy flooring and base system and trowel grade quartz overlay. The project also included the replacement of approximately 550 square feet of existing vinyl sheet flooring at the McBride Senior Center in the arts and crafts room with luxury vinyl tile. No contract change orders were executed for the project. The final cost of the project was $355,143.00, the same as the original contract amount. The work was completed in accordance with the plans and specifications approved by the Director of Public Works. FISCAL IMPACT: This project is funded by the General Fund. There is sufficient funding in the project account. RECOMMENDATION: By simple motion, adopt the subject resolution. ATTACHMENTS: Resolution - Action Item Attachment 1: McBride Senior Center Vicinity Map Attachment 2: Ulatis Cultural Center Vicinity Map

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RESOLUTION NO. 2019-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE ACCEPTING PUBLIC IMPROVEMENTS FOR THE MCBRIDE SENIOR CENTER AND ULATIS CULTURAL

CENTER FLOORING PROJECT

WHEREAS, the City of Vacaville, after proceedings duly had, entered into a written contract on the 13th day of November, 2018, with West Coast Industrial Flooring Inc. of Rancho Cordova, California, as Contractor for the construction of the McBride Senior Center and Ulatis Cultural Center Flooring Project in the City of Vacaville; and

WHEREAS, the original contract amount for the project was $355,143.00; and WHEREAS, there were no contract change orders executed for the project; and WHEREAS, the final cost of the work was $355,143.00, the same as the original

contract amount; and WHEREAS, the Director of Public Works has certified that said improvements are

completed in accordance with the terms and conditions in said contract.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Vacaville does hereby accept said improvements as having been completed in accordance with the terms and conditions in said contract, and authorizes final payment to contractor.

I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 9th day of April, 2019 by the following vote: AYES: NOES: ABSENT:

ATTEST:

____________________________ Michelle A. Thornbrugh, City Clerk

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MCBRIDE AND UCC FLOORING PROJECTMcBride Senior Center Vicinity Map

Attachment 1

PROJECTLOCATION

E. MONTE VISTA AVE.

DOBB

INS

ST.

KENDALL ST.

PARK

ER S

T.

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AutoCAD SHX Text

DWG File: G:\CIP\900's\950\Design\CAD\Exhibits\City Coucil Staff Report Vicinity Map RVICENCIO 9/26/2018G:\CIP\900's\950\Design\CAD\Exhibits\City Coucil Staff Report Vicinity Map RVICENCIO 9/26/2018 RVICENCIO 9/26/2018RVICENCIO 9/26/2018 9/26/20189/26/2018

AutoCAD SHX Text

NORTH

AutoCAD SHX Text

1" : 100'

MCBRIDE AND UCC FLOORING PROJECTUlatis Cultural Center Vicinity Map

Attachment 2

ALLI

SON

DR.

ULATIS DR

HARBISON

DR.

TRAVIS WY.

PROJECTLOCATION

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AutoCAD SHX Text

DWG File: G:\CIP\900's\950\Design\CAD\Exhibits\City Coucil Staff Report Vicinity Map RVICENCIO 9/26/2018G:\CIP\900's\950\Design\CAD\Exhibits\City Coucil Staff Report Vicinity Map RVICENCIO 9/26/2018 RVICENCIO 9/26/2018RVICENCIO 9/26/2018 9/26/20189/26/2018

AutoCAD SHX Text

NORTH

AutoCAD SHX Text

1/16" : 1'

Agenda Item No. 6D April 9, 2019

TO: Honorable Mayor and City Council Members Attention: Jeremy Craig, City Manager FROM: Emily Cantu, Housing Services Director

(Staff Contact: Daniel Huerta, (707) 449-5664) SUBJECT: RESOLUTION APPROVING AN EXCLUSIVE NEGOTIATING RIGHTS

AGREEMENT BETWEEN THE CITY OF VACAVILLE AND CFY DEVELOPMENT, INC. TO NEGOTIATE A DISPOSITION, DEVELOPMENT AND LOAN AGREEMENT FOR A MIXED INCOME RENTAL AND FOR-SALE HOUSING DEVELOPMENT ON CITY-OWNED PROPERTY ON VANDEN ROAD (APN 0136-080-040)

DISCUSSION: On September 12, 2017, the City Council directed staff to issue a Request for Proposals (RFP) to select a developer partner to develop a vacant City-owned parcel on Vanden Road (Attachment 1, Map). This 8.4 acre property was obtained through a donation by Carl and Luis Zocchi for purposes of a potential military housing development. Since that time, staff conducted a RFP process to solicit proposals that include a military focus and are comprised of a mix of below-market and market rate units as well as both rental and for-sale housing. The RFP process has concluded and staff recommends CFY Development Inc. (CFY) as the selected developer. CFY’s development team includes the same principals who worked with the City to develop Kimmie’s Place Apartments, completed in 2015. The CFY team has combined experience of almost 50 years with over 64 completed developments. CFY will partner with Community Revitalization Development Corporation (CRDC). CRDC is a non-profit with 28 years of experience operating with the sole purpose of providing safe, decent and affordable housing to the residents of the State of California. CRDC has developed or assisted over 4,000 units. The proposal submitted includes the desired military focus, a mix of below-market (rental) and market (for sale) rate units. The for-sale component is envisioned to reach the “missing middle” income earners that are typically excluded from federal and state financing mechanisms. The next step is to enter into an Exclusive Negotiating Rights Agreement (Attachment 2). During the negotiating period, CFY would: determine the physical and land title conditions of the property and land use entitlements required, conduct feasibility studies and other due diligence, and begin to identify appropriate financing. Staff would negotiate business points that include, but are not limited to: military component, number of rental and for sale units, Housing Fund and/or Housing Authority assistance (if any), property management, and development amenities. A conceptual site plan would also be developed during the negotiating period. If approved this evening and negotiations are successful, a Disposition, Development and Loan Agreement will be brought to a future City Council meeting for consideration. Also if successful, this development will count towards the City of Vacaville Regional Housing Need Allocation (RHNA) and will further the goals of the Housing Element of the General Plan.

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FISCAL IMPACT: No General Fund impact. Staff time to implement these actions will be paid within the current Housing Services Department budget. RECOMMENDATION: By simple motion, adopt the subject resolution. ATTACHMENTS: Resolution – Action Item Attachment 1: Map Attachment 2: Exclusive Negotiating Rights Agreement

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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE APPROVING AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT BETWEEN THE CITY OF VACAVILLE AND CFY DEVELOPMENT, INC. TO NEGOTIATE A DISPOSITION, DEVELOPMENT AND

LOAN AGREEMENT FOR A MIXED INCOME RENTAL AND FOR SALE HOUSING DEVELOPMENT ON CITY-OWNED PROPERTY ON VANDEN ROAD (APN 0136-080-040)

WHEREAS, the City of Vacaville (the "City") previously acquired that certain real property located on Vanden Road within the City of Vacaville, APN 0136-08-040 (the "Property"); and

WHEREAS, the Property was acquired by the City by donation from Carl and Luis

Zocchi for purposes of a potential military housing development; and WHEREAS, the City desires to enter into an exclusive negotiating rights agreement (the

"ENRA") with CFY Development, Inc., a California corporation (the "Developer"), to negotiate a potential Disposition, Development, and Loan Agreement ("DDA") for the proposed development of the Property as a mixed-income project anticipated to consist of both rental and for sale units with a military focus and amenities such as a playground and/or swimming pool and community room; and WHEREAS, the ENRA is on file with the City Clerk, and, pursuant to the ENRA, the City desires to seek to negotiate the terms of the DDA with the Developer; and WHEREAS, the ENRA is exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15262 of the CEQA Guidelines as the ENRA only involves feasibility and planning for the possible development of the proposed development pursuant to a subsequent DDA, which shall only be approved in accordance with the requirements of CEQA, and any other applicable law. NOW, THEREFORE, BE IT RESOLVED, that the City hereby designates the Developer as the developer of the Property for purposes of negotiating the terms of the proposed DDA for the proposed development pursuant to the ENRA and authorizes and directs the City Manager, or his designee, to execute the ENRA on behalf of the City, substantially in the form on file with the City Clerk, with such modifications (if any) as the City Manager determines appropriate to effectuate the purposes of this Resolution, such determination to be conclusively evidenced by the City Manager's, or his designee’s, execution of the ENRA.

I HEREBY CERTIFY that the foregoing resolution was introduced and passed at the meeting of the City Council of the City of Vacaville held on the 9th day of April, 2019 by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:

____________________________ Michelle A. Thornbrugh, City Clerk

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Attachment 1

Map

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EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT (5763 Vanden Road Affordable Housing Project, APN 0136-080-040)

This Exclusive Negotiating Rights Agreement (this "Agreement") is entered into as of this 9th day of April, 2019 (the "Effective Date"), by and among the City of Vacaville, a municipal corporation (the "City") and CFY Development Inc., a California corporation (the "Developer") on the basis of the following facts:

RECITALS

A. The City is the owner of certain real property generally located at 5763 Vanden Road (APN 0136-080-040), in the City of Vacaville, California (the "Site"). As of the Effective Date, the Site is vacant and unimproved land. The Site is more particularly described in the attached Exhibit A.

B. The Site was previously owned by Redevelopment Agency of the City of

Vacaville (the "Former Agency"). The Former Agency was dissolved as of February 1, 2012, and, in accordance with California Health & Safety Code Section 34176(a), the City has elected to retain the housing assets of the Former Agency, including, but not limited to, the Site. As the successor-in-interest to all of the housing assets of the Former Agency, the City is obligated to use the Site in accordance with California Health & Safety Code Section 33000 et seq.

C. The City desires to cause the redevelopment of the Site to create approximately

one hundred and four (104) units of quality mixed income housing, anticipated to consist of approximately eighty (80) units of multi-family rental housing and approximately twenty-four (24) units of for-sale housing, and other common area improvements on the Site (the "Project").

D. The purpose of this Agreement is to establish procedures and standards for the negotiation by the City and the Developer of a disposition, development, and loan agreement (the "DDA") between the City and the Developer to govern the development of the Project on the Site.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and Developer, (each a "Party" and collectively the "Parties") mutually agree as follows:

Attachment 2

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ARTICLE 1. EXCLUSIVE NEGOTIATIONS RIGHT

Section 1.1 Good Faith Negotiations. The City and the Developer shall negotiate

diligently and in good faith, during the Negotiating Period described in Section 1.2, the terms of a DDA for the development of the Project on the Site. During the Negotiating Period, the Parties shall use good faith efforts to accomplish the respective tasks outlined in Article 2 to facilitate the negotiation of a mutually satisfactory DDA.

Among the issues to be addressed in the negotiations are: (a) the physical and land title conditions of the Site and remediation of any adverse conditions by the Developer; (b) the type of entitlements necessary for the Project; (c) the development schedule for the Project; (d) financing of the Project (including the need for, and terms of, any City financial assistance); (e) marketing and management of the Project; and (f) the level of housing affordability and the nature of affordability controls.

Section 1.2 Negotiating Period. The negotiating period (the "Negotiating Period") under this Agreement shall be one (1) year, commencing on the Effective Date. The Negotiating Period may be extended on the City's behalf for up to an additional ninety (90) days by the City Manager, if, in the City Manager's judgment, sufficient progress toward a mutually acceptable DDA has been made during the initial one (1) year negotiating period to merit such extension.

If a DDA has not been executed by the City and the Developer by the expiration of the Negotiating Period (as the Negotiating Period may be extended by operation of the paragraph above), then this Agreement shall terminate and neither Party shall have any further rights or obligations under this Agreement. If a DDA is executed by the City and the Developer then, upon such execution, this Agreement shall terminate, and all rights and obligations of the Parties shall be as set forth in the executed DDA.

Section 1.3 Exclusive Negotiations. During the Negotiating Period (as such Negotiating Period may be extended by operation of Section 1.2), the City shall not negotiate with any entity, other than the Developer, regarding development of the Site, or solicit or entertain bids or proposals to do so.

Section 1.4 Identification of Developer's Representatives. The Developer shall notify the City, in writing, of the Developer's designated representative(s) to negotiate the DDA with the City. Such designated representative(s) shall be an authorized representative from the general partners and/or the managing general partner of the Developer.

ARTICLE 2. NEGOTIATION TASKS

Section 2.1 Overview. To facilitate negotiation of the DDA, the Parties shall use

reasonable good faith efforts to accomplish the tasks set forth in this Article 2 in a timeframe that

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will support negotiation and execution of a mutually acceptable DDA prior to the expiration of the Negotiating Period.

Section 2.2 Financing and Costs of Project. Within ninety (90) days after the Effective Date, the Developer shall provide the City, for its review and approval, with a detailed financial analysis for the Project containing, among other matters, a development budget and operating proforma for each component of the Project (the "Financing Proposal"). The financial analysis shall be refined by the Parties during the Negotiating Period, as appropriate, and will be used to evaluate the financial feasibility of the Project and to assist in the negotiation of terms regarding payment of costs of land and development.

Section 2.3 Planning Approvals. The Developer acknowledges that the Project requires approvals and entitlements from the City (the "Planning Approvals"). Prior to execution of a DDA, the City and the Developer will agree on the type of Planning Approvals necessary for development of the Project. During the Negotiating Period, the Developer shall submit conceptual site plans and preliminary designs for the Project to the City for its informal review. The Developer understands that a formal application for the Planning Approvals would not be required until after the execution of a DDA, and that such applying for and obtaining the Planning Approvals will be a pre-disposition condition under any DDA. Notwithstanding the foregoing, the Developer may make a formal application for Planning Approvals prior to the execution of the DDA.

Section 2.4 Schedule of Performance. Within ninety (90) days after the Effective Date, the Developer shall provide the City with a proposed detailed schedule of performance for the Project and shall include, but not be limited to: the dates for obtaining land use entitlements and financing commitments for the Project, the date for the submittal of construction plans to the City, the date for close of escrow on the Site, and the dates for the commencement and completion of construction of the Project. To the extent the Developer desires to develop the Project in separate phases, then the schedule of performance shall include separate timeframes for each phase.

Section 2.5 Due Diligence. During the Negotiating Period the Developer shall conduct due diligence activities, including but not limited to planning, soils report, noise study, hazardous materials report, financial feasibility study, and survey of the Site to determine actual property lines, and title adequacy.

(a) Physical Adequacy Determination. The Developer shall determine whether the Site is suitable for development of the Project, taking into account the geotechnical and soils conditions, the presence or absence of toxic or other hazardous materials, and the other environmental and regulatory factors that the Developer deems relevant. If, in the Developer' judgment based on such investigations and analyses, any portion of the Site is not suitable for development, the Developer shall notify the City in writing prior to the expiration of the Negotiating Period of its determination (an "Unsuitability Notice"). Upon delivery of an Unsuitability Notice by the Developer, this Agreement shall be terminated without further action of any Party, and thereafter no Party shall have any further duties, obligations, rights, or liabilities under this Agreement, except as set forth in Sections 3.3, Section 3.6, and Section 3.14.

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If the Developer does not deliver an Unsuitability Notice during the Negotiating Period, then the Site shall be deemed physically suitable for development of the Project and any executed DDA shall not provide for an additional opportunity for the Developer to determine the physical suitability of the Site or for the Developer to terminate the DDA as a result of the purported physical unsuitability of the Site. Any DDA shall provide that the Site is conveyed to the Developer in its then current "as-is" condition. The Parties acknowledge that as of the Effective Date the Site is located in a Zone A flood plain and will require a "Conditional Letter Of Map Revision" ("CLOMR") from the Federal Emergency Management Agency ("FEMA") for development of the Project. The Parties agree to work cooperatively (at no additional cost to the City) during the Negotiating Period to obtain a FEMA approved CLOMR. In the event that FEMA has not approved the CLOMR prior to the end of the Negotiating Period, then the DDA shall provide for an additional opportunity for the Developer to terminate the DDA, prior to any conveyance of any portion of the Site, as a result of the purported physical unsuitability of the Site because of the flood plain.

(b) Title Adequacy Determination. Within sixty (60) days following the Effective Date, the Developer shall cause a reputable title company to issue a Preliminary Title Report (the "Report") for the Site to the Developer and the City. If the Developer objects to any exception appearing on the Report or should any title exception arise after the date of the Report, the Developer may object to such exception, provided such objection is made to the City in writing on or before 5 P.M. on the thirtieth (30th) day following the date the Developer receives the Report (or the date Developer receives a copy of such new exception, as applicable). If the Developer objects to any exception to title, the City, within fifteen (15) days of receipt of Developer's objection shall notify Developer in writing whether City elects to: (1) cause the exception to be removed of record; (2) obtain a commitment from the title company for an appropriate endorsement to the policy of title insurance to be issued to the Developer, insuring against the objectionable exception; or (3) terminate this Agreement unless the Developer elects to take title subject to such exception. If any Party elects to terminate this Agreement pursuant to this Section 2.5(b), no Party shall thereafter have any obligations to or rights against the others hereunder, except as set forth in Sections 3.3, 3.6 and 3.14. If the Developer fails to provide any notification to the City regarding this matter prior to expiration of the time period set forth herein, the condition set forth in this Section 2.5(b) shall be deemed satisfied, this Agreement shall continue in effect, the condition of title at closing under any executed DDA shall be as set forth in the Report, and any executed DDA shall not provide for an additional opportunity for the Developer to determine title to the Site or for the Developer to terminate the DDA as a result of title to the Site.

Section 2.6 Reports. Unless otherwise waived by the City, the Developer shall provide the City with copies of all reports, studies, analyses, official correspondence and similar documents, but excluding confidential or proprietary information, prepared or commissioned by the Developer with respect to this Agreement and the Project, promptly upon their completion. While desiring to preserve its rights with respect to treatment of certain information on a confidential or proprietary basis, the Developer acknowledges that the City will need sufficient, detailed information about the proposed Project (including, without limitation the financial information described in Section 2.2) to make informed decisions about the content and approval

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of the DDA. The City will work with the Developer to maintain the confidentiality of proprietary information subject to the requirements imposed on the City by the Public Records Act (Government Code Section 6253 et seq.). The Developer acknowledges that the City may share information provided by the Developer of a financial and potential proprietary nature with third party consultants and City council members as part of the negotiation and decision making process. If this Agreement is terminated without the execution of a DDA, the City shall return to the Developer any information submitted by the Developer under this Agreement. The City shall provide the Developer with copies of all existing leases, reports, studies, analyses, official correspondence and similar documents (collectively, "Documents"), including detailed property appraisals, prepared or commissioned by the City with respect to this Agreement and the Project, promptly following execution of this Agreement with respect to Documents then in its possession or under its reasonable control, and promptly upon their completion with respect to any subsequently prepared Documents.

Section 2.7 Organizational Documents. The Developer shall provide the City with copies of its organizational documents evidencing that the Developer exists and is in good standing to perform its obligations under the DDA no later than ninety (90) days prior to proposed date for the execution of the DDA.

Section 2.8 Progress Reports. From time to time as reasonably agreed upon by the Parties, each Party shall make oral or written progress reports advising the other Party on studies being made and matters being evaluated by the reporting Party with respect to this Agreement and the Project.

Section 2.9 Housing Affordability. Prior to execution of a DDA, the City and Developer will agree on the level of housing affordability and the nature of affordability controls to be set forth in the DDA, and separate regulatory agreements to be recorded against the Site upon the conveyance of the Site to the Developer. As of the Effective Date, the Parties anticipate that the multi-family rental component of the Project will consist of approximately eight (8) units to be made available to households with incomes at, or below, thirty percent (30%) of area median income, forty (40) units to be made available to households with incomes at, or below, forty-five percent (45%), and thirty-one (31) units to be made available to households with incomes at, or below, sixty percent (60%) of area median income with one unrestricted manager’s unit. In addition, as of the Effective Date, the Parties anticipate that the for-sale component of the Project will consist of twenty-four (24) units. During the Negotiating Period, the City and the Developer shall determine the process for establishing and implementing a preference for households with a member serving (or that previously served) in the United States military subject to, and in accordance with, any applicable fair housing laws (the "Preference"). The Preference, if any, will be set forth in the DDA.

Section 2.10 Section 33433 Report. The City shall prepare the necessary documentation pursuant to Section 33433 of the California Health and Safety Code (the "Section 33433 Report"), or any other public report required by any applicable law to be submitted to the City Council of the City in conjunction with the City's consideration of any DDA that results from negotiations pursuant to this Agreement. The Section 33433 Report shall contain the

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estimated value of the Site determined at its highest and best use under the redevelopment plan governing the Site, the estimated value of the Site determined at the use and with the conditions, covenants, and development costs required pursuant to the proposed DDA, and any other information required by applicable law.

ARTICLE 3. GENERAL PROVISIONS

Section 3.1 Limitation on Effect of Agreement. This Agreement shall not obligate

either the City or the Developer to enter into a DDA or to enter into any particular DDA. By execution of this Agreement the City is not committing to the disposition of the Site (or any portion thereof). Execution of this Agreement by the City is merely an agreement to conduct a period of exclusive negotiations in accordance with the terms hereof, reserving for subsequent City Council action the final discretion and approval regarding the execution of a DDA and all proceedings and decisions in connection therewith, including, but not limited to compliance with the applicable requirements of the California Environmental Quality Act, and its implementing regulations (collectively, "CEQA"), and/or the National Environmental Policy Act, and its implementing regulations (collectively, "NEPA"). Any DDA resulting from negotiations pursuant to this Agreement shall become effective only if, and after, such DDA has been considered and approved by the City Council following conduct of all legally required procedures, including, but not limited to, all applicable requirements of CEQA and NEPA, and executed by duly authorized representatives of the City and the Developer. Until and unless a DDA is executed by the Developer, approved by the City Council, and executed by the City, no agreement drafts, actions, deliverables or communications arising from the performance of this Agreement shall impose any legally binding obligation on either Party to enter into or support entering into a DDA or be used as evidence of any oral or implied agreement by either Party to enter into any other legally binding document.

Section 3.2 Notices. Formal notices, demands and communications between the City and the Developer shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, postage prepaid, return receipt requested, or sent by express delivery or overnight courier service, to the office of the Parties shown as follows, or such other address as the Parties may designate in writing from time to time:

City: City of Vacaville 650 Merchant Street Vacaville, CA 95688 Attn: City Manager

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Developer: CFY Development Inc. 1724 Fourth Street, Suite 120 Sacramento, CA 95811

Attn: Cyrus Youssefi

Such written notices, demands and communications shall be effective on the date shown on the delivery receipt as the date delivered or the date on which delivery was refused.

Section 3.3 Waiver of Lis Pendens. It is expressly understood and agreed by the Parties that no lis pendens shall be filed against any portion of the Site with respect to this Agreement or any dispute or act arising from it.

Section 3.4 Right of Entry. The City shall cooperate with the Developer to provide the Developer the right to enter upon the Site, as necessary, for purposes of conducting investigations to further the objectives of this Agreement pursuant to a written right of entry agreement, to be prepared by the City, and executed by the Parties. Among other things, such right of entry agreement shall require the Developer to provide evidence of insurance, in form and amount reasonably acceptable to the City, prior to the Developer's entry onto the Property.

Section 3.5 Costs and Expenses. The Developer hereby agrees to reimburse the City for all reasonable third-party legal costs and expenses incurred by the City in connection with the negotiation and preparation of the DDA up to Twenty-Five Thousand Dollars ($25,000), payable as follows: (a) Ten Thousand Dollars ($10,000) upon execution of the DDA (if any); and (b) Fifteen Thousand Dollars ($15,000) upon the conveyance of any portion of the Site to the Developer pursuant to the DDA (if any). In addition to such payments set forth above, any DDA shall require the Developer to reimburse the City for costs and expenses, including, but not limited to staff time and third-party costs, incurred by the City in connection with: (i) any subdivision of the Site for the Project which, if requested by Developer and to the extent permissible by law, the City agrees to subdivide pursuant to a grant deed using the applicable Subdivision Map Act exemption for publicly-owned land; and (ii) any review and analysis required by CEQA and/or NEPA. Except as specifically provided in this Agreement, each Party shall be responsible for its own costs and expenses in connection with any activities and negotiations undertaken in connection with this Agreement, and the performance of each Party's obligations under this Agreement.

Section 3.6 No Commissions. The City shall not be liable for any real estate commissions or brokerage fees that may arise from this Agreement or any DDA resulting from this Agreement. Each Party represents that it has engaged no broker, agent or finder in connection with this transaction, and each Party shall indemnify, defend, and hold harmless the other Party from any claim by any broker, agent, or finder retained by the other Party.

Section 3.7 Defaults and Remedies.

(a) Default. Failure by any Party to negotiate in good faith as provided in this Agreement shall constitute an event of default hereunder. The non-defaulting Party shall give written notice of a default to the defaulting Party, specifying the nature of the default and the

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required action to cure the default. If a default remains uncured fifteen (15) days after receipt by the defaulting Party of such notice, the non-defaulting Party may exercise the remedies set forth in subsection (b).

(b) Remedies. In the event of an uncured default by the City, the Developer's only remedy is to terminate this Agreement. In the event of an uncured default by the Developer, the City's sole remedy shall be to terminate this Agreement. Following such termination, no Party shall have any right, remedy or obligation under this Agreement, except that the Developer's indemnification obligation pursuant to Section 3.6 shall survive such termination. Except as expressly provided above, no Party shall have any liability to any other Party for damages of any kind or otherwise for any default, nor shall any Party have any other claims with respect to performance under this Agreement. Each Party specifically waives and releases any such rights or claims it may otherwise have at law or in equity.

Section 3.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

Section 3.9 Entire Agreement. This Agreement constitutes the entire agreement of the Parties regarding the subject matters of this Agreement. This Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if both Parties had prepared it. The Parties to this Agreement have read and reviewed this Agreement and agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply to the interpretation of this Agreement (including but not limited to Civil Code Section 1654 as may be amended from time to time).

Section 3.10 Assignment. The Developer intends to form separate entities, under the control of the Developer, to purchase, develop, finance, and build the Project. As of the Effective Date, the Parties anticipate that the Developer will form one entity for the “for sale” housing component of the Project and a second entity for the “for rent” housing component of the Project (collectively the “Single Purpose Entities”). The Developer may transfer or assign any or all of its rights or obligations hereunder to the Single Purpose Entities with the prior written consent of the City which shall be granted provided that the Developer evidences that the Developer controls each of the Single Purpose Entities. The Developer may not transfer or assign any or all of its rights or obligations hereunder to any other entity other than the Single Purpose Entities except with the prior written consent of the City, which consent shall be granted or withheld in the City's sole discretion, and any such attempted transfer or assignment without the prior written consent of City shall be void.

Section 3.11 No Third Party Beneficiaries. This Agreement is made and entered into solely for the benefit of the City and the Developer and no other person shall have any right of action under or by reason of this Agreement.

Section 3.12 Actions by the City. Whenever this Agreement calls for or permits the approval, consent, authorization or waiver of the City, the approval, consent, authorization, or

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waiver of the City Manager shall constitute the approval, consent, authorization or waiver of the City without further action of the City Council. The Developer acknowledges that nothing in this Agreement (including any approval by the City Manager in accordance with this Agreement), or a DDA (if approved by the City Council) shall limit, waive, or otherwise impair the authority and discretion of: (a) the City's Planning Department, in connection with the review and approval of the proposed construction plans for the Project, or any use, or proposed use, of the Site; (b) the City in imposing or otherwise requiring any mitigation measures in accordance with CEQA (or by the City or any other governmental agency in accordance with NEPA), or otherwise complying with CEQA and/or NEPA; (c) the City's issuance of a building permit; or (d) any other office or department of the City acting in its capacity as a governmental regulatory authority.

Section 3.13 Time of the Essence. Time is of the essence in this Agreement and every provision contained herein.

Section 3.14 Indemnification. Developer hereby covenants, on behalf of itself and its permitted successors and assigns, to indemnify, hold harmless, and defend the City, its council members, agents, and employees (collectively, the "Indemnitees"), from and against all claims arising out of, or in connection with, this Agreement or the activities contemplated hereby, including, but not limited to any third-party claim arising out of, or in connection with, the Preference; provided, however, Developer shall have no indemnification obligation with respect to the negligence or misconduct of any Indemnitee. Developer's indemnification obligations shall survive the termination or expiration of this Agreement, and shall not be obviated by Developer's provision of insurance as required by the City.

Section 3.15 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

Remainder of Page Left Intentionally Blank

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IN WITNESS WHEREOF, this Agreement has been executed by the Parties as of the

Effective Date. DEVELOPER:

CFY DEVELOPMENT, INC., a California corporation

By: ____________________________

Name: ____________________________

Its: ____________________________

Signatures continue on the following page

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CITY:

CITY OF VACAVILLE, a municipal corporation By: __________________________ Jeremy Craig APPROVED AS TO FORM: GOLDFARB & LIPMAN LLP ________________________ Special Counsel to the City

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EXHIBIT A

SITE MAP AND PROPERTY DESCRIPTION

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Agenda Item No. 6E April 9, 2019

TO: Honorable Mayor and City Council Attention: Jeremy Craig, City Manager FROM: Don Burrus, Economic Development Manager (Staff Contact: Don Burrus, (707) 449-5165) SUBJECT: AUTHORIZATION FOR THE CITY MANAGER TO ENTER INTO AN

EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT FOR A HOTEL AND CONFERENCE CENTER WITH NT HOTEL PARTNERS, LLC

DISCUSSION: On February 13, 2018, the City Council authorized the City Manager to prepare an Exclusive Negotiating Rights Agreement (ENRA) between the City and NT Hotel Partners, LLC, for the sale and development of City-owned property adjacent to the Nut Tree Retail Center, APNs: 0129-240-310, and 0129-240-320. This agreement allowed for six months of due diligence for NT Hotel Partners to develop a draft hotel design, research any land use issue they may affect the proposed development, and develop a capital formation plan. NT Hotel Partners were able to develop a draft hotel design and determine the amount useable land required to develop this project. However, NT Hotel Partners were not able to develop a capital formation plan prior to the expiration of the executed Exclusive Negotiating Rights Agreement. The executed agreement expired on August 20, 2018. In order to continue negotiations, the City has prepared the attached ENRA, which defines a negotiation period to reach a Disposition and Development Agreement (DDA) which would further define the terms and process timeline for development. The ENRA period will last for 6 months. If approved, the first 90 days will be used to determine if the proposed development is financially feasible. The remaining 90 days will be used for City staff and NT Hotel Partners, LLC to address all of the items identified and needed to develop the DDA. Once completed, staff will return to the City Council with a proposed DDA for the Council’s review and approval. FISCAL IMPACT: General Fund Impact: There is no impact to the General Fund at this time. Staff salaries to complete the work will be paid from existing budgets within participating departments. RECOMMENDATION: By simple motion, authorize the City Manager, or his designee, to enter into an Exclusive Negotiating Rights Agreement with NT Hotel Partners, LLC. ATTACHMENTS: Attachment 1: Map of Proposed Development Site Attachment 2: Exclusive Negotiating Rights Agreement

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Attachment 1

MAP

000111222999---222444000---333111000

000111222999---222444000---333222000

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EXCLUSIVE NEGOTIATING RIGHTS AND OPTION AGREEMENT

(NT Hotel Partners, LLC)

This Exclusive Negotiating Rights and Option Agreement (this "Agreement") is entered

into as of this ____ day of ______________, 2019 (the "Effective Date"), by and among the City

of Vacaville, a municipal corporation (the "City"), and NT Hotel Partners, LLC, a California

limited liability company (the "Developer"), on the basis of the following facts:

RECITALS

A. The City is the owner of certain real property located in the City of Vacaville,

California, consisting of three (3) parcels (collectively, the "Property"). The Property is more

particularly described in the attached Exhibit A.

B. The Property is owned by the City of Vacaville. The Property is currently

undeveloped.

C. The City desires to cause the development of the Property as a commercial

development that will include a quality hotel and convention center (the "Project"). The City and

the Developer anticipate that the Project will be developed as two (2) separate phases (each, a

"Phase"), and that each Phase will be developed on two (2) separate sites (each, a "Site")

comprised of multiple parcels of the overall Property. The parcels of the Property anticipated to

be included in each Site are set forth on Exhibit A.

D. The purpose of this Agreement is to establish the procedures and standards for the

negotiation by the City and the Developer of a disposition and development agreement, master

development agreement, or similar document (the "DDA"), between the City and the Developer

to govern the development of each Phase on each Site.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and promises contained

herein and for other valuable consideration, the receipt and sufficiency of which is hereby

acknowledged, the City and Developer, (each a "Party" and collectively the "Parties") mutually

agree as follows:

1.

EXCLUSIVE NEGOTIATIONS RIGHT

1.1. Good Faith Negotiations. The City and the Developer shall negotiate diligently

and in good faith, during the Negotiating Period described in Section 1.2, the terms of a DDA

for the development of the Project on the Property. During the Negotiating Period, the Parties

shall use good faith efforts to accomplish the respective tasks outlined in Article 2 to facilitate

the negotiation of a mutually satisfactory DDA.

Among the issues to be addressed in the negotiations are: (i) the physical and land title

conditions of each Site and remediation of any adverse conditions by the Developer, (ii) the type

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of entitlements necessary for each Phase, (iii) the development schedule for each Phase, (iv)

financing for each Phase (including any proposed City financial assistance), (v) marketing and

management for each Phase, and (vi) the level of retail space.

1.2. Negotiating Period. The negotiating period (the "Negotiating Period") under this

Agreement shall be six (6) months, commencing on the Effective Date. The Negotiating Period

may be extended on the City's behalf for up to an additional ninety (90) days by the City

Manager, if, in the City Manager's judgment, sufficient progress toward a mutually acceptable

DDA has been made during the initial six (6) month negotiating period to merit such extension.

If a DDA has not been executed by the City and the Developer by the expiration of the

Negotiating Period (as the Negotiating Period may be extended by operation of the paragraph

above), then this Agreement shall automatically terminate, without further action of the Parties,

and neither Party shall have any further rights or obligations under this Agreement. If a DDA is

executed by the City and the Developer then, upon such execution, this Agreement shall

terminate, and all rights and obligations of the Parties shall be as set forth in the executed DDA.

1.3. Exclusive Negotiations; Deposit.

(a) During the Negotiating Period (as such Negotiating Period may be

extended by operation of Section 1.2), the City shall not negotiate with any entity, other than

the Developer, regarding the development of the Property, or solicit or entertain bids or

proposals to do so, provided that Developer is not in default of its obligations under this

Agreement. In consideration for the City's obligation to exclusively negotiate with the

Developer for the Property, within ten (10) calendar days following the Effective Date, the

Developer shall deliver to the City a good faith deposit in the amount of Ten Thousand Dollars

($10,000) (the "Deposit").

(b) In the event the Parties enter into a DDA, then the Deposit shall be

credited towards any purchase price, or other consideration, to be paid by the Developer to the

City.

(c) In the event the Parties do not enter into a DDA, then City shall retain the

Deposit, subject to Section 1.3(d) below, unless failure to enter into the DDA is due to:

(i) geographical, physical, or environmental constraints on the

Property which Developer determines, after a good faith due diligence process

pursuant to section 3.5, or make the Property physically unsuitable for the

contemplated development;

(ii) termination of this Agreement pursuant to Section 3.5(b); or

(iii) an uncured default by City pursuant to Section 4.7.

(d) Developer shall have a period of no more than the Negotiating Period to

determine if the development is financially feasible. If the Developer determines within the

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Negotiating Period that the development is financially infeasible, the City shall return and

reimburse the Deposit within thirty (30) days in full without interest or penalty.

1.4. Identification of Developer's Representatives. Within ten (10) calendar days after

the Effective Date, the Developer shall notify the City, in writing, of the Developer's designated

representative(s) to negotiate the DDA with the City. Such designated representative(s) shall be

an authorized representative from the manager or the managing member of the Developer.

2.

OPTION

2.1. Definitions. For purposes of this Agreement, the following terms shall have the

following meanings:

a. “Execution Date” shall mean the same as Effective Date.

b. “Option Fee” shall mean the total sum of a non-refundable down payment of

$1,000.00, separate and independent of the Deposit, payable to the City at the same manner and

time as the Deposit, as set forth under Section 1.3(a) above.

c. “Option Term” shall mean that period of time commencing on the Execution

Date and ending six (6) months from the Execution Date.

2.2. Grant of Option. For and in consideration of the Option Fee, payable to the City

as set forth herein, City does hereby grant to Developer the exclusive right and Option

(“Option”) to purchase the Property solely by means of a DDA and upon the terms and

conditions as set forth herein.

2.3. Payment of Option Fee. Developer agrees to pay the City a non-refundable down

payment of $1,000.00, separate and independent of the Deposit, payable to the City at the same

manner and time as the Deposit, as set forth under Section 1.3(a) above.

2.4. Exercise of Option. Developer may exercise its exclusive right to purchase the

Property solely by means of a DDA upon the terms and conditions as set forth herein, at any

time during the Option Term, by giving written notice thereof to City. Written notice shall be

as set forth under Section 4.2 below. The Option Term shall not be subject to any renewal and

shall terminate automatically six (6) months from the date of execution of this Agreement. In

the event the Developer does not exercise its exclusive right to purchase the Property by means

of a DDA and upon the terms and conditions as set forth herein, then this Agreement shall

become absolutely null and void and neither Party hereto shall have any other liability,

obligation or duty herein under or pursuant to this Agreement.

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3.

NEGOTIATION TASKS

3.1. Overview. To facilitate negotiation of the DDA, the Parties shall use reasonable

good faith efforts to accomplish the tasks set forth in this Article 3 in a timeframe that will

support negotiation and execution of a mutually acceptable DDA prior to the expiration of the

Negotiating Period.

3.2. Financing and Costs of Project. Within ninety (90) days after the Effective Date,

the Developer shall provide the City, for its review and approval, with a detailed financial

analysis for the Project containing, among other matters, a development budget and operating

pro forma (the "Financing Proposal"). The financial analysis shall be refined by the Parties

during the Negotiating Period, as appropriate, for each Phase, and will be used to evaluate the

financial feasibility of the Project and to assist in the negotiation of terms regarding payment of

costs of land and development for each Phase. An offering memorandum, which outlines the

amount of financing (debt and equity) desired, shall be prepared and distributed, a copy of

which will also be delivered to the City. In addition, the Parties anticipate that the Financing

Proposal will include a "seller carryback" loan from the City to the Developer for the purchase

price of each Site (the "City Acquisition Loan"). The City Acquisition Loan shall be

determined based on each Site's fair market value as set forth in an appraisal for the Property (or

each Site, as applicable) by an appraiser mutually acceptable to the Parties, and paid for by the

Developer. Developer acknowledges and agrees that the City has not agreed to fund, subsidize,

or otherwise financially contribute in any manner toward the development of the Project.

3.3. Planning Approvals; CEQA. The Developer acknowledges that the Project

requires approvals and entitlements from the City (collectively, the "Planning Approvals").

Prior to execution of a DDA, the City and the Developer will agree on the type of Planning

Approvals necessary for development of the Project, or, as applicable each Phase, based on the

proposed scope of development for the overall Project. During the Negotiating Period, the

Developer shall submit conceptual site plans and preliminary designs for the Project and pay

applicable fees to the City for a “preliminary review” by City staff. The Developer understands

that, in addition to any preliminary review by City staff, a formal application for the Planning

Approvals for each Phase would not be required until after the execution of a DDA, and that

such applying for and obtaining the Planning Approvals will be a pre-disposition condition for

conveyance of each applicable Site under any DDA. The Developer shall be required to apply

for the Planning Approvals for the Project (or any Phase, as applicable) in accordance with the

City's standard application process and shall be subject to all of the City's normal fees for any

required Planning Approvals. Upon receipt of the necessary applications for the required

Planning Approvals, the City shall initiate the preparation of any environmental documentation

required by the California Environmental Quality Act ("CEQA"); provided, however, that

nothing in this Agreement or the DDA shall be construed to compel the City to approve or

make any particular findings with respect to such CEQA documentation or the Planning

Approvals. The Developer shall pay the City for all costs associated with the preparation of the

CEQA document(s), provided that Developer has previously approved such costs before they

are incurred. Such approval shall not be unreasonably withheld. The Developer shall provide

such information in the possession and control of Developer about the Project as may be

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required to enable the City to prepare or cause preparation and consideration of any CEQA-

required document(s), and shall otherwise generally cooperate with the City to complete this

task. In addition, the Developer shall pay to the City, as applicable, the standard City CEQA

processing fee.

3.4. Schedule of Performance. Within ninety (90) days after the Effective Date, the

Developer shall provide the City with a proposed detailed schedule of performance for the

Project and shall include, but not be limited to: the dates for submitting and obtaining the

Planning Approvals and financing commitments for each Phase, the date for the submittal of

construction plans for each Phase to the City, the date for close of escrow for each Site, and the

dates for the commencement and completion of construction of each Phase.

3.5. Due Diligence. During the Negotiating Period the Developer shall conduct due

diligence activities, including but not limited to tests and surveys, planning, soils report, noise

study, hazardous materials report, financial feasibility study, and survey of the Property to

determine actual property lines, and title adequacy.

(a) Physical Adequacy Determination. The Developer shall determine

whether the Property is suitable for development of the Project, taking into account the

geotechnical and soils conditions, the presence or absence of toxic or other hazardous materials,

and the other environmental and regulatory factors that the Developer deems relevant. If, in the

Developer's judgment based on such investigations and analyses, any portion of the Property is

not suitable for development, the Developer shall notify the City in writing prior to the

expiration of the Negotiating Period of its determination (an "Unsuitability Notice").

For purposes of these investigations and analyses, the City shall provide to Developer, its agents,

and representatives, the right to enter onto the Sites and to conduct such tests, surveys, and other

procedures desired by Developer (“Tests”), provided the Developer requests access at least two

(2) business days prior to entry, the entry and tests do not unduly infringe on the operational

needs of the City, and that the entry is conducted during normal staffed operating hours of the

City. Any such tests or surveys that involve earth disturbance shall first be approved in writing

by the City, and Developer and the City shall comply with any requirements under CEQA that

may apply to such tests or surveys. In the event that additional steps are required to be taken to

comply with CEQA, it is understood that the City may require more than two (2) days’ notice.

Upon conclusion of all such tests, surveys, and other analyses Developer shall return the Sites to

its condition prior to such tests or surveys. Developer shall provide copies of all studies, test

results, and surveys to the City once completed. City shall own such copies without any

reservation by Developer or limitation of use in any manner.

Upon delivery of an Unsuitability Notice by the Developer, this Agreement shall be terminated

without further action of any Party, the Deposit shall be released to the Developer, and thereafter

no Party shall have any further duties, obligations, rights, or liabilities under this Agreement,

except as set forth in Section 4.3, Section 4.6, and Section 4.15. If the Developer does not

deliver an Unsuitability Notice during the Negotiating Period, then the Property shall be deemed

physically suitable for development of the Project and any executed DDA shall not provide for

an additional opportunity for the Developer to determine the physical suitability of the Property

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or for the Developer to terminate the DDA as a result of the purported physical unsuitability of

the Property. Among other things, any DDA shall provide that each Site is conveyed to the

Developer in its then current "as-is" condition, and shall include the Developer's waiver of

claims set forth in Civil Code Section 1542.

(b) Title Adequacy Determination. Within sixty (60) days following the

Effective Date, the Developer shall cause a reputable title company to issue a preliminary title

report or reports (collectively, the "Report") for the Property to the Developer and the City. If

the Developer objects to any exception appearing on the Report or should any title exception

arise after the date of the Report, the Developer may object to such exception, provided such

objection is made to the City in writing on or before 5 P.M. on the thirtieth (30th) day following

the date the Developer receives the Report (or the date Developer receives a copy of such new

exception, as applicable). If the Developer objects to any exception to title, the City, within

fifteen (15) days of receipt of Developer's objection shall notify Developer in writing whether

City elects to: (1) cause the exception to be removed of record, (2) obtain a commitment from

the title company for an appropriate endorsement to the policy of title insurance to be issued to

the Developer, insuring against the objectionable exception, or (3) terminate this Agreement

unless the Developer elects to take title subject to such exception. If any Party elects to

terminate this Agreement pursuant to this Section, then the Deposit shall be released to the

Developer, and no Party shall thereafter have any obligations to or rights against the other Party

hereunder, except as set forth in Sections 4.3, 4.6 and 4.15. If the Developer fails to provide

any notification to the City regarding this matter prior to expiration of the time period set forth

herein, the condition set forth in this Section 3.5(b) shall be deemed satisfied, this Agreement

shall continue in effect, the condition of title at closing under any executed DDA shall be as set

forth in the Report, and any executed DDA shall not provide for an additional opportunity for

the Developer to determine title to the Property or for the Developer to terminate the DDA as a

result of title to the Property.

3.6. Reports. Unless otherwise waived by the City, the Developer shall provide the

City with copies of all reports, studies, analyses, official correspondence and similar documents,

but excluding confidential or proprietary information, prepared or commissioned by the

Developer with respect to this Agreement and the Project, promptly upon their completion.

While desiring to preserve its rights with respect to treatment of certain information on a

confidential or proprietary basis, the Developer acknowledges that the City will need sufficient,

detailed information about the proposed Project (including, without limitation the financial

information described in Section 3.2) to make informed decisions about the content and approval

of the DDA. The City will work with the Developer to maintain the confidentiality of

proprietary information subject to the requirements imposed on the City by the Public Records

Act (Government Code Section 6253 et seq.). The Developer acknowledges that the City may

share information provided by the Developer of a financial and potential proprietary nature with

third party consultants and City council members as part of the negotiation and decision making

process. If this Agreement is terminated without the execution of a DDA, in conjunction with

the return of the Deposit, the City shall return to the Developer any information submitted by the

Developer under this Agreement.

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The City shall provide the Developer with copies of all existing reports, studies, analyses,

official correspondence and similar documents (collectively, "Documents"), including detailed

property appraisals, prepared or commissioned by the City or otherwise in the possession of the

City, unless deemed confidential at City’s sole discretion, with respect to Property, promptly

following execution of this Agreement with respect to Documents then in its possession or under

its reasonable control, and promptly upon their completion with respect to any subsequently

prepared Documents.

3.7. Organizational Documents. The Developer shall provide the City with copies of

its organizational documents evidencing that the Developer exists and is in good standing to

perform its obligations under the DDA no later than ninety (90) days prior to proposed date for

the execution of the DDA.

3.8. Progress Reports. From time to time as reasonably agreed upon by the Parties,

each Party shall make oral or written progress reports advising the other Party on studies being

made and matters being evaluated by the reporting Party with respect to this Agreement and the

Project.

4.

GENERAL PROVISIONS

4.1. Limitation on Effect of Agreement. This Agreement shall not obligate either the

City or the Developer to enter into a DDA or to enter into any particular DDA. By execution of

this Agreement the City is not committing to the disposition of the Property (any Site, or any

portion thereof). Execution of this Agreement by the City is merely an agreement to conduct a

period of exclusive negotiations in accordance with the terms hereof, reserving for subsequent

City Council action the final discretion and approval regarding the execution of a DDA and all

proceedings and decisions in connection therewith, including, but not limited to consideration

of the Planning Approvals and compliance with the applicable requirements of CEQA. Any

DDA resulting from negotiations pursuant to this Agreement shall become effective only if, and

after, such DDA has been considered and approved by the City Council following conduct of all

legally required procedures, including, but not limited to all applicable requirements of CEQA,

and executed by duly authorized representatives of the City and the Developer. Until and

unless a DDA is executed by the Developer, approved by the City Council, and executed by the

City, no agreement drafts, actions, deliverables or communications arising from the

performance of this Agreement shall impose any legally binding obligation on either Party to

enter into or support entering into a DDA or be used as evidence of any oral or implied

agreement by either Party to enter into any other legally binding document. In the event of any

conflict between the terms of this Section, and any other term of this Agreement, then the terms

of this Section shall control.

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4.2. Notices. Formal notices, demands and communications between the City and the

Developer shall be sufficiently given if, and shall not be deemed given unless, dispatched by

certified mail, postage prepaid, return receipt requested, or sent by express delivery or overnight

courier service, to the office of the Parties shown as follows, or such other address as the Parties

may designate in writing from time to time:

City: City of Vacaville

650 Merchant Street

Vacaville, CA 95688 Attn: City Manager

Developer: NT Hotel Partners, LLC

2010A Harbison Drive #312 Vacaville, CA 95687

Such written notices, demands and communications shall be effective on the date shown on the

delivery receipt as the date delivered or the date on which delivery was refused.

4.3. Waiver of Lis Pendens. It is expressly understood and agreed by the Parties that

no lis pendens shall be filed against any portion of the Property with respect to this Agreement

or any dispute or act arising from it.

4.4. Right of Entry. The City shall cooperate with the Developer to provide the

Developer the right to enter upon the Property, as necessary, for purposes of conducting

investigations to further the objectives of this Agreement pursuant to a written right of entry

agreement, to be prepared by the City, and executed by the Parties. Among other things, such

right of entry agreement shall require the Developer to: (i) provide evidence of insurance, in

form and amount reasonably acceptable to the City, prior to the Developer's entry onto the

Property, (ii) restore any damage to the Property caused by the Developer (or its agents), and

(iii) indemnify the City for any claim related to such entry.

4.5. Costs and Expenses. Except as specifically provided in this Agreement, each

Party shall be responsible for its own costs and expenses in connection with any activities and

negotiations undertaken in connection with this Agreement, and the performance of each Party's

obligations under this Agreement.

4.6. No Commissions. The City shall not be liable for any real estate commissions or

brokerage fees that may arise from this Agreement or any DDA resulting from this Agreement.

Each Party represents that it has engaged no broker, agent or finder in connection with this

transaction, and each Party shall indemnify, defend, and hold harmless the other Party from any

claim by any broker, agent, or finder retained by the other Party.

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9 783\01\1911822.3

4.7. Defaults and Remedies.

(a) Default. Failure by any Party to negotiate in good faith as provided in this

Agreement shall constitute an event of default hereunder. The non-defaulting Party shall give

written notice of a default to the defaulting Party, specifying the nature of the default and the

required action to cure the default. If a default remains uncured fifteen (15) days after receipt

by the defaulting Party of such notice, the non-defaulting Party may exercise the remedies set

forth in subsection (b).

(b) Remedies. In the event of an uncured default by the City, the Developer's

only remedy is to terminate this Agreement. In the event of an uncured default by the

Developer, the City's sole remedy shall be to terminate this Agreement and retain the Deposit.

Following such termination, no Party shall have any right, remedy or obligation under this

Agreement, except that Section 4.3, Section 4.6, and Section 4.15 shall survive such

termination.

Except as expressly provided above, no Party shall have any liability to any other Party

for damages or otherwise for any default, nor shall any Party have any other claims with respect

to performance under this Agreement. Each Party specifically waives and releases any such

rights or claims it may otherwise have at law or in equity.

4.8. Governing Law. This Agreement shall be governed by and construed in

accordance with the laws of the State of California.

4.9. Entire Agreement. This Agreement constitutes the entire agreement of the Parties

regarding the subject matters of this Agreement. This Agreement may not be amended except

in writing signed by both Parties. This Agreement shall not be construed as if it had been

prepared by one of the Parties, but rather as if both Parties had prepared it. The Parties to this

Agreement have read and reviewed this Agreement and agree that any rule of construction to

the effect that ambiguities are to be resolved against the drafting party shall not apply to the

interpretation of this Agreement (including but not limited to Civil Code Section 1654 as may

be amended from time to time).

4.10. Attorney’s Fees. If any Party brings an action or files a proceeding in connection

with the enforcement of its respective rights or as a consequence of any breach by the other

Party of its obligations hereunder, then the prevailing Party in such action or proceeding shall

be entitled to have its reasonable attorney’s fees and costs paid by the non-prevailing Party.

4.11. Assignment. The Developer may not transfer or assign any or all of its rights or

obligations hereunder to any other entity except with the prior written consent of the City,

which consent shall be granted or withheld in the City's sole discretion, and any such attempted

transfer or assignment without the prior written consent of City shall be void. Developer shall

be required to make full disclosure to the City of the proposed assignee’s principals, officers,

stockholders, partners, etc., and all other pertinent information concerning the assignee and its

associates. The City shall not assess a fee for its approval of any assignment.

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10 783\01\1911822.3

4.12. No Third Party Beneficiaries. This Agreement is made and entered into solely for

the benefit of the City and the Developer and no other person shall have any right of action

under or by reason of this Agreement.

4.13. Actions by the City. Whenever this Agreement calls for or permits the approval,

consent, authorization or waiver of the City, the approval, consent, authorization, or waiver of

the City Manager shall constitute the approval, consent, authorization or waiver of the City

without further action of the City Council. The Developer acknowledges that nothing in this

Agreement (including any approval by the City Manager in accordance with this Agreement),

or a DDA (if approved by the City Council) shall limit, waive, or otherwise impair the authority

and discretion of: (i) the City's Planning Department, in connection with the review and

approval of the proposed construction plans for the Project, or any use, or proposed use, of each

Site, (ii) the City's review of the Planning Approvals, or compliance with all applicable

requirements of CEQA, or (iii) any other office or department of the City acting in its capacity

as a governmental regulatory authority.

4.14. Time of the Essence. Time is of the essence in this Agreement and every

provision contained herein.

4.15. Indemnification. Developer hereby covenants, on behalf of itself and its

permitted successors and assigns, to indemnify, hold harmless, and defend the City, its council

members, officials, agents, and employees (collectively, the "Indemnitees"), from and against

all claims arising out of or in connection with this Agreement or the activities contemplated

hereby; provided, however, Developer shall have no indemnification obligation with respect to

the negligence or misconduct of any Indemnitee. Developer's indemnification obligations shall

survive the termination or expiration of this Agreement, and shall be effective regardless of any

insurance Developer may have, or that may otherwise be available to the Developer. Without

limiting the provisions set forth herein, no City council member, official, director, attorney,

agent, or employee of the City shall be personally liable to Developer or any of Developer’s

assignee or successor in interest, in the event of any default or breach by the City of any

obligations under the terms of this Agreement, or of any amount which may become due to

Developer or to its assignee or successor under the terms of this Agreement.

__________________________________________________

[REMAINDER LEFT BLANK INTENTIONALLY]

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11 783\01\1911822.3

4.16. Counterparts. This Agreement may be executed in counterparts, each of which

shall be deemed an original but all of which together shall constitute one and the same

agreement.

IN WITNESS WHEREOF, this Agreement has been executed by the Parties as of the

Effective Date.

DEVELOPER:

NT HOTEL PARTNERS, LLC, a California limited

liability company

By: ____________________________

Brian Power, Partner

Its: ____________________________

By: ____________________________

John Power, Partner

Its: ____________________________

CITY:

CITY OF VACAVILLE, a municipal corporation

By: __________________________

Jeremy Craig, City Manager

APPROVED AS TO FORM: MELINDA C. H. STEWART

________________________

David Nam, Deputy City Attorney II

55

A-1

783\01\1911822.3

EXHIBIT A

SITE MAP AND PROPERTY DESCRIPTION

Site #1 APNS

3 parcels 0129240310 0129240320 0129240560

56

Agenda Item No. 6F April 9, 2019

TO: Honorable Mayor and City Council Attention: Jeremy Craig, City Manager FROM: Shawn L. Cunningham, Director of Public Works

(Staff Contact: Brian McLean, (707) 469-6504) SUBJECT: RESOLUTION AUTHORIZING A ONE-TIME $73,600 EXPENDITURE FOR

EMERGENCY REPLACEMENT OF LAGOON VALLEY OPEN SPACE CATTLE FENCING DUE TO NELSON FIRE

DISCUSSION: Public Works Maintenance utilizes cattle for the abatement of native vegetation within the open space areas surrounding Lagoon Valley falling under the responsibility of the City. During the 2018 Nelson Fire approximately 11,000 feet of barbed wire/wooden post cattle fencing was destroyed. Until the fencing is replaced, it is not possible to contain the cattle within the prescribed areas for weed abatement. Replacement fencing will consist of barbed wire strand fencing on metal T-Bar posts, which are less susceptible to damage from fire. The requested funding also includes costs for property surveying to verify and stake the property lines. FISCAL IMPACT: This action will result in the use of funds from the General Fund Reserve in the amount of $73,600 for the replacement of cattle fencing in Lagoon Valley open space maintained by Public Works. RECOMMENDATION: By simple motion, adopt the subject resolution. ATTACHMENTS: Resolution – Action Item

57


RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE AUTHORIZING A ONE-TIME $73,600 EXPENDITURE FOR EMERGENCY REPLACEMENT OF LAGOON

VALLEY OPEN SPACE CATTLE FENCING DUE TO NELSON FIRE

WHEREAS, the Public Works Maintenance Division utilizes cattle for the abatement of native vegetation within the open space area surrounding Lagoon Valley falling under the control of the City of Vacaville; and

WHEREAS, in August 2018 the Nelson Fire destroyed approximately 11,000 feet of wood post/barbed wire cattle fencing. NOW, THEREFORE, BE IT RESOLVED, that the purpose of this resolution is to allocate $73,600 from General Fund Reserve funding to the Public Works Department for the replacement of the cattle fencing in Lagoon Valley open space to consist of barbed wire strand on metal T-Bar posts.

I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 9th day of April, 2019, by the following vote: AYES:

NOES:

ABSENT:

ATTEST:

___________________________ Michelle A. Thornbrugh, City Clerk

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TO: Honorable Chairman and Housing Authority Board Members Attention: Jeremy Craig, Executive Director

FROM: Emily Cantu, Housing Services Director (Staff Contact: Tamara Colden, (707) 449-5671) SUBJECT: APPROVAL OF VACAVILLE HOUSING AUTHORITY FISCAL YEAR 2019-

2020 STREAMLINED ANNUAL PUBLIC HOUSING AGENCY PLAN DISCUSSION: The U.S. Housing and Urban Development (HUD) Housing Choice Voucher (HCV) Program provides rent subsidies on behalf of very low-income Vacaville households (annual income below $41,850 for a household of four) so they can live in decent, safe and affordable housing. The program contributes an annual investment of approximately $9,500,000 into the local economy. HUD allocates 1,219 vouchers to the Vacaville Housing Authority (VHA) each month. A portion of the vouchers are Project Based (subsidy tied to specific units) and the VHA also administers the HCV Family Self-Sufficiency and Homeownership Programs and maintains a waiting list of 1,196 applicants. The VHA must submit a Five-Year Plan and then an Annual Plan each fiscal year during the Five-Year Plan period for continued receipt of HCV funding. The current Five-Year Plan covers the period 2015-2020. The VHA is permitted to submit a “streamlined” Annual Plan because it has been rated as a “High Performer” agency by HUD. The streamlined Annual Plan is a HUD mandated template, which includes Public Housing. The VHA does not administer Public Housing so those components are not applicable. The Fiscal Year 2019-2020 Annual Plan, includes the following required information (See Attachment 1):

• Housing Authority Information; • Any revisions to the last Public Housing Agency Plan. During the fiscal year, the

Housing Authority Board approved two changes to the VHA Administrative Plan impacting rent determination. The first reduced the rent burden for over 200 program participants. The second increased the number of veteran households eligible for the minimum three bedroom voucher size under the Project Based Program at Rocky Hill Veterans Apartments;

• New activities the VHA plans to undertake during the fiscal year. The VHA plans to continue using Project Based vouchers;

• Progress report in meeting the mission and goals described in the Five-Year Plan; • Most recent fiscal year audit results; • PHA Certifications of Compliance with the PHA Plan and Related Regulations including

Required Civil Rights Certifications Form HUD-50077-ST-HCV-HP; • Civil Rights Certification Form HUD-50077-ST-HCV-HP; • Any comments provided by the Resident Advisory Board; and • Certification by State or Local Officials Form HUD-50077-SL.

The Annual Plan was made available for a 45-day public review period as required. The Housing Authority Board is asked to hold the required public hearing and, following the public hearing, consider approval of the Annual Plan. If approved, the Plan will be submitted to HUD.

59

FISCAL IMPACT: No General Fund Impact. The Housing Choice Voucher Program is federally funded. RECOMMENDATION: By simple motion, approve the Vacaville Housing Authority Fiscal Year 2019-2020 Streamlined Annual Public Housing Agency Plan. ATTACHMENTS: Attachment 1: Fiscal Year 2019-2020 Annual Plan

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Streamlined Annual PHA Plan (High Performer PHAs)

U.S. Department of Housing and Urban Development Office of Public and Indian Housing

OMB No. 2577-0226 Expires: 02/29/2016

Page 1 of 5 form HUD-50075-HP (12/2014)

Purpose. The 5-Year and Annual PHA Plans provide a ready source for interested parties to locate basic PHA policies, rules, and requirements concerning the PHA’s operations, programs, and services, and informs HUD, families served by the PHA, and members of the public of the PHA’s mission, goals and objectives for serving the needs of low- income, very low- income, and extremely low- income families Applicability. Form HUD-50075-HP is to be completed annually by High Performing PHAs. PHAs that meet the definition of a Standard PHA, Troubled PHA, HCV-Only PHA, Small PHA, or Qualified PHA do not need to submit this form. Definitions. (1) High-Performer PHA – A PHA that owns or manages more than 550 combined public housing units and housing choice vouchers, and was designated as

a high performer on both of the most recent Public Housing Assessment System (PHAS) and Section Eight Management Assessment Program (SEMAP) assessments.

(2) Small PHA - A PHA that is not designated as PHAS or SEMAP troubled, or at risk of being designated as troubled, and that owns or manages less than 250 public housing units and any number of vouchers where the total combined units exceeds 550.

(3) Housing Choice Voucher (HCV) Only PHA - A PHA that administers more than 550 HCVs, was not designated as troubled in its most recent SEMAP assessment, and does not own or manage public housing.

(4) Standard PHA - A PHA that owns or manages 250 or more public housing units and any number of vouchers where the total combined units exceeds 550, and that was designated as a standard performer in the most recent PHAS or SEMAP assessments.

(5) Troubled PHA - A PHA that achieves an overall PHAS or SEMAP score of less than 60 percent. (6) Qualified PHA - A PHA with 550 or fewer public housing dwelling units and/or housing choice vouchers combined, and is not PHAS or SEMAP

troubled.

A.

PHA Information.

A.1

PHA Name: Vacaville Housing Authority PHA Code: CA125 PHA Type: Small High Performer PHA Plan for Fiscal Year Beginning: (MM/YYYY): 07/2019 PHA Inventory (Based on Annual Contributions Contract (ACC) units at time of FY beginning, above) Number of Public Housing (PH) Units: 0 Number of Housing Choice Vouchers (HCVs): 1219 Total Combined: 1219 PHA Plan Submission Type: Annual Submission Revised Annual Submission Availability of Information. In addition to the items listed in this form, PHAs must have the elements listed below readily available to the public. A PHA must identify the specific location(s) where the proposed PHA Plan, PHA Plan Elements, and all information relevant to the public hearing and proposed PHA Plan are available for inspection by the public. Additionally, the PHA must provide information on how the public may reasonably obtain additional information of the PHA policies contained in the standard Annual Plan, but excluded from their streamlined submissions. At a minimum, PHAs must post PHA Plans, including updates, at each Asset Management Project (AMP) and main office or central office of the PHA. PHAs are strongly encouraged to post complete PHA Plans on their official website. PHAs are also encouraged to provide each resident council a copy of their PHA Plans. A copy of the VHA plan is available to the public at the Vacaville Housing Authority, 40 Eldridge Avenue, Suite 2, Vacaville, CA 95688, Monday through Friday 8:30 a.m. to 5:00 p.m. excluding holidays and is also available on the website at www.cityofvacaville.com.

PHA Consortia: (Check box if submitting a Joint PHA Plan and complete table below) Not Applicable; the VHA is not part of a Consortia.

Participating PHAs PHA Code Program(s) in the Consortia Program(s) not in the Consortia

No. of Units in Each Program

PH HCV Lead PHA:

61

ecantu

Typewritten Text

Attachment 1

B.

Annual Plan Elements

B.1

Revision of PHA Plan Elements. (a) Have the following PHA Plan elements been revised by the PHA since its last Annual PHA Plan submission? Y N

Statement of Housing Needs and Strategy for Addressing Housing Needs. Deconcentration and Other Policies that Govern Eligibility, Selection, and Admissions. Financial Resources. Rent Determination. Homeownership Programs. Safety and Crime Prevention. Pet Policy. Substantial Deviation. Significant Amendment/Modification

(b) The PHA must submit its Deconcentration Policy for Field Office Review. Not Applicable; The VHA does not administer Public Housing. (c) If the PHA answered yes for any element, describe the revisions for each element below: 1. Rent Determination: Effective September 1, 2018, the VHA modified its Administrative Plan policy related to subsidy standards. This change

reduced the rent burden for over 200 program participants. In determining family voucher size, the VHA will: • Assign one bedroom for the Head of Household (and Spouse/Co-Head, if applicable). • Use the standard of two persons per bedroom, regardless of age, relationship or gender except in the following circumstances: • A minor child of the head of household (son or daughter age 17 or younger) will not be required to share a bedroom with an adult. • Live-in aides, including any and all family members of the live-in aide, will be allocated one bedroom providing the unit continues to meet Housing Quality Standards. • One additional bedroom may be considered as a reasonable accommodation with certification from a knowledgeable professional that the bedroom is medically necessary to accommodate the disability of a family member. (See Chapter 2, 2-11.D). • Space may be provided for a family member who is temporarily absent from the household if the member is away because of active duty military service, medical reasons, or if the member is a child who is temporarily in foster care. • Foster children will be included in determining unit size. • Single person families will be allocated one bedroom.

2. Rent Determination: Effective February 26, 2019, The VHA revised Administrative Plan Chapter 17, Project Based Vouchers to related to subsidy standards. In determining family voucher size, the VHA will: • Assign one bedroom for the Head of Household. • Use the standard of two persons per bedroom, regardless of age, relationship or gender except in the following circumstances: • A minor child of the head of household (son or daughter age 17 or younger) will not be required to share a bedroom with an adult. • Live-in aides, including any and all family members of the live-in aide, will be allocated one bedroom providing the unit continues to meet Housing Quality Standards. • One additional bedroom may be considered as a reasonable accommodation with certification from a knowledgeable professional that the bedroom is medically necessary to accommodate the disability of a family member. (See Chapter 2, 2-11.D). • Space may be provided for a family member who is temporarily absent from the household if the member is away because of active duty military service, medical reasons, or if the member is a child who is temporarily in foster care. • Foster children will be included in determining unit size. • Single person families will be allocated one bedroom.

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B.2

New Activities. (a) Does the PHA intend to undertake any new activities related to the following in the PHA’s current Fiscal Year? Y N

Hope VI or Choice Neighborhoods. Not Applicable; The VHA does not administer Public Housing. Mixed Finance Modernization or Development. Not Applicable; The VHA does not administer Public Housing. Demolition and/or Disposition. Not Applicable; The VHA does not administer Public Housing. Conversion of Public Housing to Tenant Based Assistance. Not Applicable; The VHA does not administer Public Housing. Conversion of Public Housing to Project-Based Assistance under RAD. Not Applicable; The VHA does not administer Public Housing. Project Based Vouchers. Units with Approved Vacancies for Modernization. Not Applicable; The VHA does not administer Public Housing. Other Capital Grant Programs (i.e., Capital Fund Community Facilities Grants or Emergency Safety and Security Grants). Not Applicable;

The VHA does not administer Public Housing. (b) If any of these activities are planned for the current Fiscal Year, describe the activities. For new demolition activities, describe any public housing development or portion thereof, owned by the PHA for which the PHA has applied or will apply for demolition and/or disposition approval under section 18 of the 1937 Act under the separate demolition/disposition approval process. If using Project-Based Vouchers (PBVs), provide the projected number of project based units and general locations, and describe how project basing would be consistent with the PHA Plan. The VHA intends to project base up to an additional 166 vouchers within the City limits of Vacaville to coincide with the VHA’s goals of increasing affordable housing options for low-income families.

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B.3

Progress Report. Provide a description of the PHA’s progress in meeting its Mission and Goals described in the PHA 5-Year Plan. Goal 1: Expand and increase the supply of assisted housing choices:

• Applied for and received 5 additional Veterans Affairs Supportive Housing (VASH) Vouchers. The VHA now administers a total of 15 VASH vouchers.

• Reviewed rents and increased payment standards to ensure families have a reasonable selection of housing in a range of neighborhoods, allowing families to rent units in more desirable areas.

• Continued to administer the Section 8 Homeownership Program that was implemented in 2003. • Landlord Liaison continued to conduct outreach to maintain current landlords and successfully recruit new ones. • Awarded 74 Project-Based Vouchers among six housing projects located in Vacaville.

Goal 2: Improve the quality of assisted housing and customer service:

• Achieved Section Eight Management Assessment Program score of 104% with rating of High Performer. • Continued reviewing and updating current procedures and implementing improvements to the participant file process. • Provided on-going trainings/guidance to staff on HUD regulation updates, program guidelines, rules and procedures. • Implemented Triennial Re-certifications for participants where 90% or of their income is from a fixed source. • Continued to streamline administrative processes to make forms easier to complete as well as posting forms and program information

on the VHA website. Goal 3: Provide an improved living environment

• Continued to conduct outreach to build relationships with owners, affordable housing resource agencies, neighborhood centers and social services agencies whose mission is to improve neighborhoods, provide affordable housing and provide access to social services, recreation and educational opportunities.

• Continued to promote and encourage families to move to higher income areas and to provide updated citywide apartment and realtor listings.

• Continued conducting quality control review of case files to make sure that at least 98% of HQS deficiencies are corrected timely. Goal 4: Promote self-sufficiency and asset development of assisted households:

• Encouraged all program participants to enroll in the Family Self-Sufficiency Program without limiting the number of eligible families. • The Self-Help Center continued to be available for participants to apply for jobs and access a variety of programs and supportive

services that promote self-sufficiency. • Provided referrals to elderly and disabled families to organizations that provide supportive services for senior and disabled persons. • Provided referrals to the Vacaville Housing Counseling Center which provides workshops and/or one-to-one training on wealth

management, first-time homebuyer, and credit repair. Goal 5: Ensure equal opportunity and affirmatively further fair housing:

• The VHA revised its 504 Grievance Policy to address how disability-related complaints are processed, timeframes for resolution, outlines the process for submitting and reviewing disability-related complaints, and the process for appealing an adverse decision.

• Informed participants of their Fair Housing rights and assisted with the Fair Housing complaint process upon request. • Conducted a Landlord Roundtable on Fair Housing. • Promoted Fair Housing during Fair Housing month. • Assisted households with disabled household members find suitable housing and provided a listing of accessible units. • Used the translating and interpreting services of The Language People agency to communicate with non-English speakers. • Provided translation of vital documents in Spanish. • Continued training on updated Fair Housing rules to ensure that access to assisted housing is provided regardless of race, color,

religion, national origin, sex, familial status, disability, sexual orientation, gender identity, age, marital status, ancestry, source of income or arbitrary discrimination.

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B.4.

Most Recent Fiscal Year Audit. (a) Were there any findings in the most recent FY Audit? Y N

(b) If yes, please describe: Not Applicable; the VHA did not have any findings in the most recent FY Audit.

Other Document and/or Certification Requirements. C.1

Certification Listing Policies and Programs that the PHA has Revised since Submission of its Last Annual Plan Form 50077-ST-HCV-HP, Certification of Compliance with PHA Plans and Related Regulations, must be submitted by the PHA as an electronic attachment to the PHA Plan. Signed certification attached.

C.2

Civil Rights Certification. Form 50077-ST-HCV-HP, Certification of Compliance with PHA Plans and Related Regulations, must be submitted by the PHA as an electronic attachment to the PHA Plan. Signed certification attached.

C.3

Resident Advisory Board (RAB) Comments. (a) Did the RAB(s) provide comments to the PHA Plan? Y N

If yes, comments must be submitted by the PHA as an attachment to the PHA Plan. PHAs must also include a narrative describing their analysis of the RAB recommendations and the decisions made on these recommendations. The RAB had no comments to the VHA Plan.

C.4

Certification by State or Local Officials. Form HUD 50077-SL, Certification by State or Local Officials of PHA Plans Consistency with the Consolidated Plan, must be submitted by the PHA as an electronic attachment to the PHA Plan. Signed certification attached.

D

Statement of Capital Improvements. Required in all years for all PHAs completing this form that administer public housing and receive funding from the Capital Fund Program (CFP). Not Applicable; the VHA does not administer public housing.

D.1

Capital Improvements. Include a reference here to the most recent HUD-approved 5-Year Action Plan (HUD-50075.2) and the date that it was approved by HUD. Not Applicable; the VHA does not administer public housing.

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http://www.hud.gov/offices/adm/hudclips/forms/files/50077sl.doc

Page 1 of 2 form HUD-50077-ST-HCV-HP (12/2014)

Certifications of Compliance with

PHA Plans and Related Regulations

(Standard, Troubled, HCV-Only, and

High Performer PHAs)

U.S. Department of Housing and Urban Development

Office of Public and Indian Housing

OMB No. 2577-0226

Expires 02/29/2016

PHA Certifications of Compliance with the PHA Plan and Related Regulations including

Required Civil Rights Certifications

Acting on behalf of the Board of Commissioners of the Public Housing Agency (PHA) listed below, as its Chairman or other

authorized PHA official if there is no Board of Commissioners, I approve the submission of the___ 5-Year and/or_X_ Annual PHA

Plan for the PHA fiscal year beginning July 1, 2019, hereinafter referred to as” the Plan”, of which this document is a part and make

the following certifications and agreements with the Department of Housing and Urban Development (HUD) in connection with the

submission of the Plan and implementation thereof:

1. The Plan is consistent with the applicable comprehensive housing affordability strategy (or any plan incorporating such

strategy) for the jurisdiction in which the PHA is located.

2. The Plan contains a certification by the appropriate State or local officials that the Plan is consistent with the applicable

Consolidated Plan, which includes a certification that requires the preparation of an Analysis of Impediments to Fair Housing

Choice, for the PHA's jurisdiction and a description of the manner in which the PHA Plan is consistent with the applicable

Consolidated Plan.

3. The PHA has established a Resident Advisory Board or Boards, the membership of which represents the residents assisted by

the PHA, consulted with this Resident Advisory Board or Boards in developing the Plan, including any changes or revisions

to the policies and programs identified in the Plan before they were implemented, and considered the recommendations of the

RAB (24 CFR 903.13). The PHA has included in the Plan submission a copy of the recommendations made by the Resident

Advisory Board or Boards and a description of the manner in which the Plan addresses these recommendations.

4. The PHA made the proposed Plan and all information relevant to the public hearing available for public inspection at least 45

days before the hearing, published a notice that a hearing would be held and conducted a hearing to discuss the Plan and

invited public comment.

5. The PHA certifies that it will carry out the Plan in conformity with Title VI of the Civil Rights Act of 1964, the Fair Housing

Act, section 504 of the Rehabilitation Act of 1973, and title II of the Americans with Disabilities Act of 1990.

6. The PHA will affirmatively further fair housing by examining their programs or proposed programs, identifying any

impediments to fair housing choice within those programs, addressing those impediments in a reasonable fashion in view of

the resources available and work with local jurisdictions to implement any of the jurisdiction's initiatives to affirmatively

further fair housing that require the PHA's involvement and by maintaining records reflecting these analyses and actions.

7. For PHA Plans that includes a policy for site based waiting lists:

The PHA regularly submits required data to HUD's 50058 PIC/IMS Module in an accurate, complete and timely manner

(as specified in PIH Notice 2010-25);

The system of site-based waiting lists provides for full disclosure to each applicant in the selection of the development in

which to reside, including basic information about available sites; and an estimate of the period of time the applicant

would likely have to wait to be admitted to units of different sizes and types at each site;

Adoption of a site-based waiting list would not violate any court order or settlement agreement or be inconsistent with a

pending complaint brought by HUD;

The PHA shall take reasonable measures to assure that such a waiting list is consistent with affirmatively furthering fair

housing;

The PHA provides for review of its site-based waiting list policy to determine if it is consistent with civil rights laws and

certifications, as specified in 24 CFR part 903.7(c)(1).

8. The PHA will comply with the prohibitions against discrimination on the basis of age pursuant to the Age Discrimination Act

of 1975.

9. The PHA will comply with the Architectural Barriers Act of 1968 and 24 CFR Part 41, Policies and Procedures for the

Enforcement of Standards and Requirements for Accessibility by the Physically Handicapped.

10. The PHA will comply with the requirements of section 3 of the Housing and Urban Development Act of 1968, Employment

Opportunities for Low-or Very-Low Income Persons, and with its implementing regulation at 24 CFR Part 135.

11. The PHA will comply with acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property

Acquisition Policies Act of 1970 and implementing regulations at 49 CFR Part 24 as applicable.

12. The PHA will take appropriate affirmative action to award contracts to minority and women's business enterprises under 24

CFR 5.105(a).

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67

68


TO: Honorable Mayor and City Council Attention: Jeremy Craig, City Manager FROM: John Carli, Chief of Police (Staff Contact: Lieutenant Chris Polen, (707) 449-5407) SUBJECT: RESOLUTION REQUESTING A GENERAL FUND BUDGET AUGMENTATION

FOR $16,203 FOR FY 18/19 TO FUND TWO BEDS AT SHELTER SOLANO FOR THE HOMELESS IN NEED OF INTENSIVE CASE MANAGEMENT AND TWO BEDS AT A LOCAL HOTEL TO ASSIST THOSE IN NEED OF IMMEDIATE/TEMPORARY SHELTER

DISCUSSION: The Vacaville Homeless Roundtable (HRT) works with a variety of stakeholders in an effort to reduce homelessness and the impacts of homelessness in our community. The police department’s Community Response Unit (CRU) is an integral part of the HRT and fully embrace the HRT’s mission to diminish homelessness using the “3 E’s”: Engagement, Education, and Enforcement. It is not a crime to be homeless in Vacaville and enforcement is always the last measure used by the HRT and CRU. However enforcement becomes necessary in the strategy to work with the “program resistant” homeless, who choose not to take advantage of the abundant resources offered to them, but instead sometimes exhibit criminal behavior. In September 2018, the Ninth U.S. Circuit Court of Appeals made a ruling which states law enforcement cannot enforce anti-camping ordinances on homeless individuals sleeping in public places without offering them a shelter space. Currently, the City of Vacaville does not have a shelter that allows for access to immediate placement and, as a result of this court ruling, our ability to enforce our local anti-camping ordinances is hindered. The City having reserved beds at Shelter Solano and at a local hotel will give CRU detectives the ability to offer our homeless neighbors shelter while also holding the program resistant homeless population accountable for unlawful behavior. Those homeless persons in need of intense case management due to mental health and substance abuse issues need a shelter option than will allow for the development of an individualized plan to secure on-going funding and resources to assist with the intensive needs of this person. CRU detectives are not qualified to provide this higher level of care and assistance, nor have the access to on-going funding sources to assist this category of the homeless population. These individuals are often referred to the coordinated entry program, however this is a slow process and often times the homeless person does not score high enough on the assessment tool to receive the needed help. Therefore, staff is requesting the City of Vacaville secure funding for two “Vacaville-only” beds at Shelter Solano. Once a homeless person from Vacaville is taken to Shelter Solano, the staff at the Shelter will immediately begin looking for alternative on-going funding to provide further services to this person, therefore freeing up the Shelter Solano bed for a new occupant brought in by City of Vacaville. Detectives in CRU will sometimes encounter a local homeless person without significant mental health or substance abuse issues who does not need intensive case management, but instead

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is in need some basic assistance with temporary shelter. Often times these individuals are employed or have recently held jobs, but they do not have the income to secure stable housing on their own. There is a well-documented shortage of affordable housing in California, including the City of Vacaville. Staff began exploring potential funding sources to secure rooms at a local motel to be used immediately by those undergoing a temporary episode of homelessness. These rooms can assist by stabilizing the individual and will allow constant direct access by CRU and other resources to assist with basic life coaching and help to attain more stable housing on their own. The costs associated with implementing these shelter housing solutions represent an investment in the well-being of our local homeless neighbors, as well as a preventative measure to allow CRU detectives to continue to work with the program resistant homeless population while complying with recent case law changes. The two “Vacaville-only” beds at Shelter Solano will only be occupied long enough for the Shelter staff to obtain separate and on-going funding for the individual; once that funding is secured, the bed space will again open up. The monthly cost for this innovative sheltering program will be $5,171 per month with a yearly cost of $62,052. In an effort to secure the immediate and temporary hotel room options, staff sought partnerships with representatives from local hotels, negotiating an agreement to supply two rooms at $30.00 each for the duration of the agreement. Total cost to secure two hotel rooms reserved for this temporary housing solution per year would be $21,900. The total annual cost for both of these programs is $83,952. FISCAL IMPACT: The annual cost to secure two beds at Shelter Solano is $62,025 and the annual cost to secure two local hotel rooms is $21,900. Total fiscal impact to the General Fund for both programs for one year will be $83,952. The total impact to the General Fund for the remainder of FY18/19 (96 days) will be $16,203 and will be funded from General Fund Reserves. RECOMMENDATION: By simple motion, adopt the subject resolution. ATTACHMENTS: Resolution - Action Item

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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE REQUESTING A GENERAL FUND BUDGET AUGMENTATION FOR $16,203 FOR FY 18/19 TO FUND TWO

BEDS AT SHELTER SOLANO FOR THE HOMELESS IN NEED OF INTENSIVE CASE MANAGEMENT AND TWO BEDS AT A LOCAL HOTEL TO ASSIST THOSE IN NEED OF

IMMEDIATE/TEMPORARY SHELTER WHEREAS, the City Council of the City of Vacaville has declared the homeless crisis in Vacaville a local emergency; and WHEREAS, recent case law decisions require the City of Vacaville to make immediate shelter available to the homeless in order to enforce anti-camping ordinances; and WHEREAS, the availability of two Vacaville-only shelter beds at Shelter Solano allows for intensive case management for those homeless individuals with mental health and/or substance abuse issues; and WHEREAS, the availability of two local hotel rooms to provide immediate temporary shelter allows for episodically homeless individuals to have temporary stable housing while working toward more secure housing solutions. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Vacaville hereby approves an increase of $16,203 in General Fund expenditures for Fiscal Year 2018-19, as detailed in the staff report.

I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 9th day of April, 2019, by the following vote:

AYES:

NOES: ABSENT:

ATTEST:

____________________________

Michelle A. Thornbrugh, City Clerk

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Agenda Item No. 9B April 9, 2019

TO: Honorable Mayor and City Council Attention: Jeremy Craig, City Manager FROM: Shawn L. Cunningham, Director of Public Works (Staff Contact: Shawn Cunningham, (707) 449-5170) SUBJECT: RESOLUTION ADOPTING AN INTERIM POLICY, DESIGN STANDARDS AND

APPLICATION PROCESS GOVERNING THE INSTALLATION OF SMALL WIRELESS FACILITIES

BACKGROUND:

On September 27, 2018 the Federal Communications Commission (FCC) released a Declaratory Ruling and Third Report and Order for Accelerating Wireless Broadband Deployment by Removing Barriers to Infrastructure Investment (“FCC Small Cell Order”). The purpose of the FCC Small Cell Order is to streamline the installation of infrastructure to support broadband services, which includes small cell antenna installations for 4G and 5G wireless service. The FCC Small Cell Order has two essential parts: 1) the establishment of regulations that govern shot clocks, imposing deadlines on local agencies to process applications and issue permits for small cell installations; and 2) a Declaratory Ruling that interprets how existing provisions within the Telecommunications Act of 1996 limit state and local agency ability to effectively prohibit or materially inhibit small cell wireless deployment, provides guidance on fees that local agencies may charge, and attempts to regulate development issues such as antenna spacing, equipment design, and aesthetic standards.

Put simply, wireless telecommunication providers such as Verizon, AT&T, and others want to fill in the “dead” space between large cell tower mounted equipment by deploying small wireless antennae at closer spacing; the FCC Small Cell Order accommodates those efforts by (1) requiring local agencies to streamline processes and (2) preventing local agencies from implementing restrictive regulations and fees that would create an impediment to the rapid deployment of 4G and ultimately 5G wireless communication facilities. While the FCC Small Cell Order became effective in mid-January 2019, local agencies have until April 15, 2019 to adopt aesthetic standards. The City has contracted with Telecom Law Firm (Telecom) to assist the City with developing appropriate policies, processes and cost recovery mechanisms for the deployment of small wireless facility installations, while preserving the City’s ability to protect the public health, safety and welfare, and other regulatory, aesthetic and financial interests.

DISCUSSION:

Once City staff and Telecom have developed draft policies, processes, standards and related documents (“Policy Package”) and vetted them through various wireless providers, the final Policy Package will be presented to City Council, likely in May or June, for review and action. In the meantime, however, it is necessary to consider interim processes and aesthetic standards that may be applied to any requests for small cell installations received prior to the adoption of a

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formal Policy Package later this year. City staff has been communicating with various wireless providers over the past several months, and they understand that the City is being proactive in our efforts to include them in developing design standards as well a formal Policy Package for small cell deployment; they have been cooperative and appreciative of our willingness to work with them. As such, we do not anticipate any application requests for small cell installations prior to adoption of a formal policy; however, out of an abundance of caution, the City’s consultant and staff are recommending that the City Council adopt the attached Interim Policy, Design Standards and Application Process to insure that we have certain provisions in place to address any requests received before a formal Policy Package is in place. The Interim Policy, Design Standards and Application Process, included herein as Attachment 1, will be superseded by the adoption of the final small cell installation Policy Package. To provide assurances to the wireless providers that the City will work diligently on a permanent regulations, the Interim Policy includes a sunset clause pursuant to which the Interim Policy will expire on its own terms upon the earlier of 160 days from the date of adoption or the effective date of a permanent Policy Package.

FISCAL IMPACT: There is no fiscal impact to the general fund by this action. RECOMMENDATION: By simple motion, adopt the subject resolution. ATTACHMENTS: Resolution - Action Item Attachment 1: Interim Policy, Design Standards and Application Process

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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE ADOPTING AN INTERIM POLICY, DESIGN STANDARDS, AND APPLICATION PROCESS GOVERNING THE

INSTALLATION OF SMALL WIRELESS FACILITIES

WHEREAS, on September 27, 2018 the Federal Communications Commission (FCC) released a Declaratory Ruling and Third Report and Order for Accelerating Wireless Broadband Deployment by Removing Barriers to Infrastructure Investment (“FCC Small Cell Order”); and,

WHEREAS, the FCC Small Cell Order requires local agencies to not inhibit the deployment of infrastructure to support broadband services, which includes small cell antenna installations for 4G and 5G wireless service; and,

WHEREAS, the City has contracted with Telecom Law Firm to assist with the development a formal policy and design standards to reasonably regulate the deployment of small cell wireless facilities in Vacaville; and,

WHEREAS, the formal policy and design standards documents will be vetted through various wireless providers as part of a complete development process which is not anticipated to be completed until May or June of 2019; and,

WHEREAS, it is in the best interest of the City to adopt interim implementation policies and design standards to be in place until the formal policy and design standards are adopted.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Vacaville does hereby adopt the interim policy, design standards and application process governing the installation of small cell wireless facilities, which shall expire on its own terms upon the earlier of (1) one hundred sixty days from the date of this approval or (2) the effective date of adoption of a permanent policy, whether in the form of an ordinance, resolution, policy, pole license agreement or other document or set of documents, which supersedes this Interim Policy.

I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 9th day of April, 2019 by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:

________________________________

Michelle A. Thornbrugh, City Clerk

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1

ATTACHMENT 1

City of Vacaville Interim Small Wireless Installation Policy, Standards and Application

Process

DEFINITIONS The definitions in this definition section shall be applicable to the terms, phrases and words in this Policy. Undefined terms, phrases or words will have the meanings assigned to them in 47 U.S.C. § 151 or, if not defined therein, will have the meaning assigned to them in the Vacaville Municipal Code or, if not defined in either therein, will have their ordinary meanings. If any definition assigned to any term, phrase or word in this definition section conflicts with any federal or state-mandated definition, the federal or state-mandated definition will control: (a) “Antenna” means the same as defined by the FCC in 47 C.F.R. § 1.6002(b), as may be

amended or superseded, which defines the term as an apparatus designed for the purpose of emitting radiofrequency (RF) radiation, to be operated or operating from a fixed location pursuant to Council authorization, for the provision of personal wireless service and any commingled information services. For purposes of this definition, the term antenna does not include an unintentional radiator, mobile station, or device authorized under part 15 of Title 47.

(b) “Collector road” means a road designed to typically provide direct access to adjacent

land uses and are wider than most local streets so as to provide improved motor vehicle and bicycle circulation. The term “collector road” as used in this Policy is defined in the Vacaville General Plan, Transportation Element.

(c) “Collocation”, except as applied in applications for “eligible facilities requests” as defined

in 47 U.S.C. § 1455(a), means the same as defined by the FCC in 47 C.F.R. § 1.6002(g), as may be amended or superseded, which defines the term as (1) mounting or installing an antenna facility on a pre-existing structure; and/or (2) modifying a structure for the purpose of mounting or installing an antenna facility on that structure.

(d) “Decorative Pole” means any pole that includes decorative or ornamental features,

design elements and/or materials intended to enhance the appearance of the pole or the public right-of-way in which the pole is located.

(e) “Director” means the Director of Public Works for the City of Vacaville or the Director’s

designee.

(f) “Encroachment permit” means the Encroachment permit that, when fully executed, incorporates the provisions of this Policy and authorizes permittee to install, operate and maintain equipment for the permitted use on City Poles identified in the Encroachment permit.

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(g) “Equipment” means antennas, radios and any associated utility or equipment box, and battery backup, transmitters, receivers, amplifiers, ancillary fiber-optic cables and/or wiring, and ancillary equipment used for radio communication (voice, data or otherwise) transmission and/or reception, which includes without limitation the means, devices and apparatus used to attach any Equipment to any licensed Vertical Infrastructure, and any ancillary equipment such as wiring, cabling, power feeds or an similar things, and any signage attached to such Equipment that may be approved by the City or required by Law.

(h) “FCC” means the Federal Communications Commission or its duly appointed successor agency.

(i) “FCC Shot Clock” means the presumptively reasonable time frame, accounting for any tolling or extension, within which the City generally must act on a request for authorization in connection with a personal wireless service facility, as such time frame is defined by the FCC and as may be amended or superseded.

(j) “Four-lane arterial road” means a road designed to carry the heaviest amount of traffic and where access and intersections are limited to facilitate efficient travel. The term “four-lane arterial road” as used in this Policy is defined in the Vacaville General Plan, Transportation Element.

(k) “Hazardous Material” means any material that, because of its quantity, concentration, or physical or chemical characteristics, is at any time now or hereafter deemed by any Regulatory Agent to pose a present or potential hazard to human health, welfare, or safety or to the environment. Hazardous Material includes any material or substance defined as a “hazardous substance,” or “pollutant” or “contaminant” in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) (codified as 42 U.S.C. §§ 9601 et seq.) or Section 25316 of the California Health & Safety Code; and any “hazardous waste” listed California Health & Safety Code § 25140; and petroleum, including crude oil or any fraction thereof, natural gas or natural gas liquids.

(l) “Investigate and Remediate” means the undertaking of any activities to determine the nature and extent of Hazardous Material that may be located in, on, under or about the License Area or that has been, is being, or is in danger of being Released into the environment, and to clean up, remove, contain, treat, stabilize, monitor or otherwise Control such Hazardous Material.

(m) “Law” or “Laws” means all present and future statutes, ordinances, codes, orders, policies,

regulations and implementing requirements and restrictions by federal, state, county and/or municipal authorities, whether foreseen or unforeseen, ordinary as well as extraordinary, as adopted or as amended at the time in question.

(n) “License Area” consists of the space on the subject pole approved with the Encroachment permit for the equipment, electrical pull boxes for street lighting, and other immediately adjacent City Property/Right of Way specifically identified in the Encroachment permit.

(o) “Local street” means a street designed only to serve adjacent and nearby residential and commercial neighborhoods or business areas. Local streets generally carry little through

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traffic and have low traffic volumes. The term “local street” as used in this Policy is defined in the Vacaville General Plan, Transportation Element.

(p) “Personal Wireless Services” means the same as defined in 47 U.S.C. § 332(c)(7)(C)(i),

as may be amended or superseded, which defines the term as commercial mobile services, unlicensed wireless services and common carrier wireless exchange access services. As an illustration and not a limitation, personal wireless services are typically services that are offered directly to the public or a class of people for a fee.

(q) Personal Wireless Service Facilities” means the same as defined in 47 U.S.C. § 332(c)(7)(C)(i), as may be amended or superseded, which defines the term as facilities that provide personal wireless services. As an illustration and not a limitation, personal wireless service facilities are the physical infrastructure – antennas, support structures, radios, wires and base station equipment – that are used to provide personal wireless services.

(r) “Pole” or “City Pole” means a City-owned street light Pole located in the public right-of-way within the City of Vacaville.

(s) “Pole Location” means the geographic information identifying each City Pole on which permittee is authorized to install, operate and maintain equipment. Pole location will be identified on each Encroachment permit by the City streetlight number, and/or the nearest address.

(t) “RF” means radio frequency or electromagnetic waves.

(u) “Shot clock days” means calendar days counted toward the presumptively reasonable time under the applicable FCC Shot Clock. The term “shot clock days” does not include any calendar days on which the FCC Shot Clock is tolled (i.e., “paused”). As an illustration and not a limitation, if an applicant applies on April 1, receives a valid incomplete notice on April 5 and then resubmits on April 20, only four “shot clock days” have elapsed because the time between the incomplete notice and resubmittal are not counted.

(v) “Six-lane arterial road” means a road designed to carry the heaviest amount of traffic and where access and intersections are limited to facilitate efficient travel. The term “six-lane arterial road” as used in this Policy is defined in the Vacaville General Plan, Transportation Element.

(w) “Small wireless facility” means the same as defined by the FCC in 47 C.F.R. §

1.6002(l), as may be amended or superseded.

(x) “Two-lane arterial road” means a road designed to carry the heaviest amount of traffic and where access and intersections are limited to facilitate efficient travel. The term “two-lane arterial road” as used in this Policy is defined in the Vacaville General Plan, Transportation Element.

(y) “Vertical Infrastructure” means that certain pole or similar structure, subject to this

License, owned or controlled by the City and located in the public rights-of-way or public utility easements and meant for, or used in whole or in part for, communications service, electric service, lighting, traffic control or similar functions.

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APPLICATION PROCESS / FEES

Application and Administrative Fee. Any applications for the installation of small wireless facilities will be treated as a Public Right of Way Encroachment, subject to the provisions in this policy. The Department of Public Works will be responsible for processing any small wireless applications received, and will employ the existing permitting process used for utility Encroachment permit applications. Each pole location will be treated as an individual installation and will require the issuance of a separate Encroachment permit. An applicant may submit Encroachment permit applications for up to five (5) pole locations per day. The administrative fee charged for the issuance of a small wireless Encroachment permit shall be 11.5% of the estimated construction cost, or a minimum of $879, as may be revised by City Council resolution from time to time (“Administrative Fee”).

Application Requirements for Small Wireless Facilities. In addition to any other publicly stated requirements, all Encroachment permit applications for small wireless facilities must include the following information and materials: (a) Application Form. The applicant shall submit a complete, duly executed Encroachment

permit application on the then-current form prepared by the City.

(b) Application Fee. The applicant shall submit the applicable Encroachment permit Administrative Fee established by this policy and which may be amended from time to time by City Council resolution. Batched applications must include the applicable Encroachment permit Administrative Fee for each small wireless facility in the batch.

(c) Construction Drawings. The applicant shall submit true and correct construction drawings, prepared, signed and stamped by a licensed or registered engineer, that depict all the existing and proposed improvements, equipment and conditions related to the proposed project, which includes without limitation any and all poles, posts, pedestals, traffic signals, towers, streets, sidewalks, pedestrian ramps, driveways, curbs, gutters, drains, handholes, manholes, fire hydrants, equipment cabinets, antennas, cables, trees and other landscape features. The construction drawings must: (i) contain cut sheets that contain the technical specifications for all existing and proposed antennas and accessory equipment, which includes without limitation the manufacturer, model number and physical dimensions; (ii) identify all potential support structures within 500 feet from the proposed project site and call out such structures’ overall height above ground level; (iii) depict the applicant’s preliminary plan for electric and data backhaul utilities, which shall include the anticipated locations for all conduits, cables, wires, handholes, junctions, transformers, meters, disconnect switches, and points of connection; and (iv) demonstrate that proposed project will be in full compliance with all applicable health and safety laws, regulations or other rules, which includes without limitation all building codes, electric codes, local street standards and specifications, and public utility regulations and orders.

(d) Site Survey. For any small wireless facility, the applicant shall submit a survey prepared, signed and stamped by a licensed or registered engineer. The survey must identify and depict all existing boundaries, encroachments and other structures within 75 feet from the proposed project site and any new improvements, which includes without limitation all: (i) traffic lanes; (ii) all private properties and property lines; (iii) above and below-grade utilities and related structures and encroachments; (iv) fire hydrants, roadside call boxes and other public safety infrastructure; (v) streetlights, decorative poles, traffic signals and permanent

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signage; (vi) sidewalks, driveways, parkways, curbs, gutters and storm drains; (vii) benches, trash cans, mailboxes, kiosks and other street furniture; and (viii) existing trees, planters and other landscaping features.

(e) Photo Simulations. The applicant shall submit site photographs and photo simulations that show the existing location and proposed small wireless facility in context from at least three vantage points within the public streets or other publicly accessible spaces, together with a vicinity map that shows the proposed site location and the photo location for each vantage point. At least one simulation must depict the small wireless facility from a vantage point approximately 50 feet from the proposed support structure or location. The photo simulations and vicinity map shall be incorporated into the construction plans submitted with the application.

(f) Project Narrative and Justification. The applicant shall submit a written statement that explains in plain factual detail whether and why the proposed facility qualifies as a “small wireless facility” as defined by the FCC in 47 C.F.R. § 1.6002(l). A complete written narrative analysis will state the applicable standard and all the facts that allow the City to conclude the standard has been met—bare conclusions not factually supported do not constitute a complete written analysis. As part of the written statement the applicant must also include (i) whether and why the proposed support is a “structure” as defined by the FCC in 47 C.F.R. § 1.6002(m); and (ii) whether and why the proposed wireless facility meets each required finding for an Encroachment permit.

(g) RF Compliance Report. The applicant shall submit an RF exposure compliance report that certifies that the proposed small wireless facility, both individually and cumulatively with all other emitters that contribute more than 5% to the cumulative emissions in the vicinity (if any), will comply with applicable federal RF exposure standards and exposure limits. The RF report must be prepared and certified by an RF engineer acceptable to the Director. The RF report must include the actual frequency and power levels (in watts effective radiated power) for all existing and proposed antennas at the site and exhibits that show the location and orientation of all transmitting antennas and the boundaries of areas with RF exposures in excess of the uncontrolled/general population limit (as that term is defined by the FCC) and also the boundaries of areas with RF exposures in excess of the controlled/occupational limit (as that term is defined by the FCC). Each such boundary shall be clearly marked and identified for every transmitting antenna at the project site. If the applicant submits a batched application, a separate RF report shall be prepared for each facility associated with the batch.

(h) Regulatory Authorization. The applicant shall submit evidence of the applicant’s regulatory status under federal and California law to provide the services and construct the small wireless facility proposed in the application.

(i) Acoustic Analysis. The applicant shall submit an acoustic analysis prepared and certified

by a licensed engineer for the proposed small wireless facility and all associated equipment including all environmental control units, sump pumps, temporary backup power generators and permanent backup power generators demonstrating compliance with the City’s noise regulations. The acoustic analysis must also include an analysis of the manufacturers’ specifications for all noise-emitting equipment and a depiction of the proposed equipment relative to all adjacent property lines. In lieu of an acoustic analysis, the applicant may submit evidence from the equipment manufacturer(s) that the ambient

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noise emitted from all the proposed equipment will not, both individually and cumulatively, exceed the applicable noise limits.

Annual Usage Fee. The Annual Usage Fee for small wireless facilities placed on City-owned poles (“pole” or “poles”) shall be applied on a per pole basis, and shall be charged at the rate of $270 per pole location as established by the September 27, 2018 FCC Declaratory Ruling and Third Report and Order (“FCC Small wireless Order”), to the extent the provisions applicable to annual recurring fees in the FCC Small wireless Order remain operative. The Annual Usage Fee for the first year shall be paid at the issuance of the Encroachment permit, and renewed annually on January 1 of each year. The Annual Usage Fee will not be prorated, and will increase annually in accordance with the Consumer Price Index for all urban consumers in the San Francisco Bay Area. The City reserves the right to re-establish the Annual Usage Fee if the FCC Small wireless Order is amended, superseded, modified, overturned or otherwise vacated or nullified with respect to the annual recurring fees for applicable small wireless facility attachments to City-owned poles. The City further reserves the right to modify the Annual Usage Fee from time-to-time to accurately reflect the actual, direct and reasonably incurred costs by the City in connection with the small wireless facility.

Delinquent Fees. If any applicant for any small wireless Encroachment permit is delinquent in any Administrative Fee, Annual Usage Fee or any other fee related to the installation of small wireless facilities and payable to the City under applicable laws, the City shall not issue any further small wireless Encroachment permit to such applicant until such delinquency is corrected. The restriction in this paragraph shall be applicable to small wireless Encroachment permits applied for by service providers, infrastructure providers and any agents, contractors or subcontractors of any service providers or infrastructure providers, and applied in a manner to prevent any delinquent payor from circumventing this restriction by using third parties to act on its behalf.

DECISIONS

Initial Administrative Decision. Not more than 29 shot clock days after the application has been deemed complete, the Director shall approve, conditionally approve or deny a complete and duly filed Encroachment permit application without a public hearing.

Required Findings for Approval. The Director may approve or conditionally approve a complete and duly filed application for an Encroachment permit when the Director finds:

(a) the proposed project complies with all applicable design standards in this Policy;

(b) the proposed project would be in the most preferred location within 500 feet from the proposed site in any direction or the applicant has demonstrated with clear and convincing evidence in the written record that any more-preferred location(s) within 500 feet would be technically infeasible;

(c) the proposed project would not be located on a prohibited support structure identified in this Policy;

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(d) the proposed project would be on the most preferred support structure within 500 feet from the proposed site in any direction or the applicant has demonstrated with clear and convincing evidence in the written record that any more-preferred support structure(s) within 500 feet would be technically infeasible;

(e) if the proposed project involves a wireless facility, the proposed project fits within the definition for a “small wireless facility” as defined by the FCC;

(f) if the proposed project involves a wireless facility, the applicant has demonstrated that the proposed project will be in planned compliance with all applicable FCC regulations and guidelines for human exposure to RF emissions.

Conditional Approvals; Denials Without Prejudice. Subject to any applicable federal or California laws, nothing in this Policy is intended to limit the Director’s ability to conditionally

approve or deny without prejudice any Encroachment permit application as may be necessary or appropriate to ensure compliance with this Policy.

DESIGN AND INSTALLATION STANDARDS

General Conditions

1. Post-Installation Certification. Within 60 calendar days after the permittee commences full, unattended operations of a small wireless facility approved or deemed-approved, the permittee shall provide the Director with documentation reasonably acceptable to the Director that the small wireless facility has been installed and/or constructed in strict compliance with the approved Encroachment permit. Such documentation shall include without limitation as-built drawings, GIS data and site photographs.

2. Build-Out Period. This Encroachment permit will automatically expire 12 months from the approval date (the “build-out period”) unless the permittee obtains all other permits and approvals required to install, construct and/or operate the approved small wireless facility or other infrastructure deployment, which includes without limitation any permits or approvals required by the any federal, state or local public agencies with jurisdiction over the subject property, support structure or the small wireless facility or other infrastructure deployment and its use. The permittee may request in writing, and the City may grant in writing, one six-month extension if the permittee submits substantial and reliable written evidence demonstrating justifiable cause for a six-month extension. If the build-out period and any extension finally expires, the permit shall be automatically void but the permittee may resubmit a complete application, including all application fees, for the same or substantially similar project.

3. Site Maintenance. The permittee shall keep the site, which includes without limitation any and all improvements, equipment, structures, access routes, fences and landscape features, in a neat, clean and safe condition in accordance with the approved construction drawings and all conditions in this Encroachment permit. The permittee shall keep the site area free from all litter and debris at all times. The permittee, at no cost to the City, shall remove and remediate any graffiti or other vandalism at the site within 48 hours after the permittee receives notice or otherwise becomes aware that such graffiti or other vandalism occurred.

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4. Permittee’s Contact Information. Within 10 days from the final approval, the permittee shall furnish the City with accurate and up-to-date contact information for a person responsible for the small wireless facility or other infrastructure deployment, which includes without limitation such person’s full name, title, direct telephone number, facsimile number, mailing address and email address. The permittee shall keep such contact information up-to-date at all times and promptly provide the City with updated contact information if either the responsible person or such person’s contact information changes.

5. Permit Revocation. Any permit granted under this Policy may be revoked in accordance with the provisions and procedures in this condition. The Director may initiate revocation proceedings when the Director has information that the facility may not be in compliance with all applicable laws, which includes without limitation, any permit in connection with the facility and any associated conditions with such permit(s). Before any public hearing to revoke a permit granted under this Policy, the Director must issue a written notice to the permittee that specifies (i) the facility; (ii) the violation(s) to be corrected; (iii) the timeframe in which the permittee must correct such violation(s); and (iv) that, in addition to all other rights and remedies the City may pursue, the City may initiate revocation proceedings for failure to correct such violation(s). A permit granted under this Policy may be revoked only by the City Council after a duly notice public hearing. The City Council may revoke a permit when it finds substantial evidence in the written record to show that the facility is not in compliance with any applicable laws, which includes without limitation, any permit in connection with the facility and any associated conditions with such permit(s). Any decision by the City Council to revoke or not revoke a permit shall be final and not subject to any further appeals. Within five business days after the City Council adopts a resolution to revoke a permit, the Director shall provide the permittee with a written notice that specifies the revocation and the reasons for such revocation.

6. Record Retention. Throughout the permit term, the permittee must maintain a complete and accurate copy of the written administrative record, which includes without limitation the Encroachment permit application, Encroachment permit, the approved plans and photo simulations incorporated into this approval, all conditions associated with this approval, any ministerial permits or approvals issued in connection with this approval and any records, memoranda, documents, papers and other correspondence entered into the public record in connection with the Encroachment permit (collectively, “records”). If the permittee does not maintain such records as required in this condition, any ambiguities or uncertainties that would be resolved by inspecting the missing records will be construed against the permittee. The permittee shall protect all records from damage from fires, floods and other hazards that may cause deterioration. The permittee may keep records in an electronic format; provided, however, that hard copies or electronic records kept in the City’s regular files will control over any conflicts between such City-controlled copies or records and the permittee’s electronic copies, and complete originals will control over all other copies in any form. The requirements in this condition shall not be construed to create any obligation to create or prepare any records not otherwise required to be created or prepared by other applicable laws. Compliance with the

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requirements in this condition shall not excuse the permittee from any other similar record-retention obligations under applicable law.

7. Abandoned Facilities. The small wireless facility or other infrastructure deployment authorized under this Encroachment permit shall be deemed abandoned if not operated for any continuous six-month period. Within 90 days after a small wireless facility or other infrastructure deployment is abandoned or deemed abandoned, the permittee and/or property owner shall completely remove the small wireless facility or other infrastructure deployment and all related improvements and shall restore all affected areas to a condition compliant with all applicable laws, which includes without limitation the Vacaville Municipal Code. In the event that neither the permittee nor the property owner complies with the removal and restoration obligations under this condition within said 90-day period, the City shall have the right (but not the obligation) to perform such removal and restoration with or without notice, and the permittee and property owner shall be jointly and severally liable for all costs and expenses incurred by the City in connection with such removal and/or restoration activities.

8. Future Undergrounding Programs. Notwithstanding any term remaining on any Encroachment permit, if other utilities or communications providers in the public rights-of-way underground their facilities in the segment of the public rights-of-way where the permittee’s small wireless facility or other infrastructure deployment is located, the permittee must also underground its equipment, except the antennas and any approved electric meter, at approximately the same time. Accessory equipment such as radios and computers that require an environmentally controlled underground vault to function shall not be exempt from this condition. Small wireless facilities and other infrastructure deployments installed on wood utility poles that will be removed pursuant to the undergrounding program may be reinstalled on a streetlight that complies with the City’s standards and specifications. Such undergrounding shall occur at the permittee’s sole cost and expense except as may be reimbursed through tariffs approved by the state public utilities commission for undergrounding costs.

9. Rearrangement and Relocation. The permittee acknowledges that the City, in its sole discretion and at any time, may: (A) change any street grade, width or location; (B) add, remove or otherwise change any improvements in, on, under or along any street owned by the City or any other public agency, which includes without limitation any sewers, storm drains, conduits, pipes, vaults, boxes, cabinets, poles and utility systems for gas, water, electric or telecommunications; and/or (C) perform any other work deemed necessary, useful or desirable by the City (collectively, “City Work”). The City reserves the rights to do any and all City Work without any admission on its part that the City would not have such rights without the express reservation in this Encroachment permit. If the Director determines that any City Work will require the permittee’s small wireless facility located in the public rights-of-way to be rearranged and/or relocated, the permittee shall, at its sole cost and expense, do or cause to be done all things necessary to accomplish such rearrangement and/or relocation. If the permittee fails or refuses to either permanently or temporarily rearrange and/or relocate the permittee’s small wireless facility or other infrastructure deployment within a reasonable time after the Director’s notice, the City may (but will not be obligated to) cause the rearrangement or relocation to be performed at the permittee’s sole cost and expense. The City may exercise its rights to rearrange or relocate the permittee’s

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small wireless facility or other infrastructure deployment without prior notice to permittee when the Director determines that City work is immediately necessary to protect public health or safety. The permittee shall reimburse the City for all costs and expenses in connection with such work within 10 days after a written demand for reimbursement and reasonable documentation to support such costs.

10. Truthful and Accurate Statements. The permittee acknowledges that the City’s approval relies on the written and/or oral statements by permittee and/or persons authorized to act on permittee’s behalf. In any matter before the City in connection with the Encroachment permit or the small wireless facility or other infrastructure approved under the Encroachment permit, neither the permittee nor any person authorized to act on permittee’s behalf shall, in any written or oral statement, intentionally provide material factual information that is incorrect or misleading or intentionally omit any material information necessary to prevent any material factual statement from being incorrect or misleading.

11. Ownership and Responsibility. Once approved, installed and accepted, the new and/or existing Pole, light fixture, and lighting infrastructure will become and remain the Property of the City of Vacaville. All wireless equipment installed on the Pole and at the Pole site shall be the property and the responsibility of the permittee.

12. Compliance with Standards. The permittee shall comply with all applicable standards, policies and specifications as dictated by the City of Vacaville Standard Plans and Specifications, Caltrans Standard Plans and Specifications, California Manual of Uniform Traffic Control Devices (CaMUTCD) as they relate to work within the license area, and/or as may be associated with the work permitted under the Encroachment permit including, but not limited to: sidewalk, roadway, pole, pole foundation, electrical system, traffic control, and landscaping

13. Compliance with Laws. The permittee shall maintain compliance at all times with all

Laws applicable to the permittee, the subject property, the small wireless facility or any use or activities in connection with the use authorized in this Encroachment permit, which includes without limitation any Laws applicable to human exposure to RF emissions. The permittee expressly acknowledges and agrees that this obligation is intended to be broadly construed and that no other specific requirements in these conditions are intended to reduce, relieve or otherwise lessen the permittee’s obligations to maintain compliance with

all Laws. No failure or omission by the City to timely notice, prompt or enforce compliance with any applicable provision in this Policy, any permit, any permit condition or any applicable Laws, shall be deemed to relieve, waive or lessen the permittee’s obligation to

comply in all respects with all applicable provisions in this Policy, any permit, any permit condition or any Laws.

14. Adverse Impacts on Other Properties. The permittee shall use all reasonable efforts to

avoid any and all unreasonable, undue or unnecessary adverse impacts on nearby properties that may arise from the permittee’s or its authorized personnel’s construction,

installation, operation, modification, maintenance, repair, removal and/or other activities on or about the license area. The permittee shall not perform or cause others to perform any construction, installation, operation, modification, maintenance, repair, removal or other work that involves heavy equipment or machines except during normal construction

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work hours authorized by the Vacaville Municipal Code and/or Public Works standards and specifications. The restricted work hours in this condition will not prohibit any work required to prevent an actual, immediate harm to property or persons, or any work during an emergency declared by the City or other state or federal government agency or official with authority to declare a state of emergency within the City. The Director may issue a stop work order for any activities that violates this condition in whole or in part.

15. Landscaping. The permittee shall replace any landscape features damaged or displaced

by the construction, installation, operation, maintenance or other work performed by the permittee or at the permittee’s direction on or about the license area. If any trees are

damaged or displaced, the permittee shall hire and pay for a licensed arborist to select, plant and maintain replacement landscaping in an appropriate location for the species. Any replacement tree must be substantially the same size as the damaged tree (24-inch box minimum) and consistent with the City’s list of pre-approved street trees or as otherwise approved by the City. Lawn, shrub and groundcover replacement shall be of the same type and quality. The permittee shall, at all times, be responsible to maintain any replacement landscape features.

16. Electric Utility Service. The permittee shall be responsible to secure its own electrical services for its permitted use. Such service shall be independent, with regard to metering and payment, of any electrical service provided to operate City owned streetlights. Through separate agreement with PG&E, permittee shall be permitted to serve the permitted use either by submeter, or by flat rate. Submeters shall be the wireless read, puck style PG&E meter mounted within the antenna concealment shroud, or otherwise concealed from view.

17. Electric Meter Upgrades. If the commercial electric utility provider adopts or changes its rules obviating the need for a separate or ground-mounted electric meter and enclosure, the permittee on its own initiative and at its sole cost and expense shall remove the separate or ground-mounted electric meter and enclosure. Prior to removing the electric meter, the permittee shall apply for any encroachment and/or other ministerial permit(s) required to perform the removal. Upon removal, the permittee shall restore the affected area to its original condition that existed prior to installation of the equipment.

18. Backup Power Sources. Fossil-fuel based backup power sources shall not be permitted within the public rights-of-way; provided, however, that connectors or receptacles may be installed for temporary backup power generators used in an emergency declared by federal, state or local officials.

19. Spools and Coils. To reduce clutter and deter vandalism, excess fiber optic or coaxial

cables shall not be spooled, coiled or otherwise stored on the pole outside equipment cabinets or shrouds.

20. Permittee Equipment in Conflict. Permittee’s equipment shall not conflict with any City

improvements, operations or other City equipment within the right of way. This provision is intended to include any and all above ground and below ground equipment, conduit, cable, fiber, enclosures, etc. This provision is not intended, nor shall it be applied, to

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regulate electromagnetic interference between or among public or private wireless transmitters.

21. Emergencies. In emergencies, the City’s work will take precedence over permittee’s

operations, which includes without limitation any equipment operated on the License Area, and the City may access the License Area in whole or in part as the City deems necessary in its sole determination and in accordance with this section, whether the City has notified permittee of such emergency or other exigent circumstances or not. When safe and practicable, the City will notify permittee of any emergency or other exigent circumstances that requires the City to remove or replace any Pole and will allow permittee to remove its equipment before the City removes or replaces the Pole; provided, however, that the City will remove the equipment from the Pole when in the City’s sole determination it would (1) be unsafe or not practicable to wait for

permittee to perform the work; (2) cause significant delay; or (3) otherwise threaten or compromise public safety or public services. The City will remove any equipment with reasonable care and store the equipment for retrieval by permittee and the City will provide notice as soon as reasonably practicable after such emergency, but in no event later than 24 hours after the emergency. Permittee shall have the right to reinstall such removed equipment or equivalent equipment at permittee’s sole

expense on the repaired or replaced Pole and in accordance with this policy. The City’s removal of permittee’s equipment in emergencies or other exigent

circumstances will not be deemed to be a forcible or unlawful entry onto the License Area or any interference with permittee’s contractual privilege to use the License

Area.

22. Modified Conditions. The City authorizes the Director to modify, add or remove conditions to any Encroachment permit as the Director deems necessary or appropriate to: (1) protect and/or promote the public health, safety and welfare; (2) tailor the standard conditions in to the particular facts and circumstances associated with the deployment; and/or (3) memorialize any changes to the proposed deployment need for compliance with the Vacaville Municipal Code, this policy, generally applicable health and safety requirements and/or any other applicable laws. To the extent required by applicable FCC regulations, the Director shall take care to ensure that any different conditions applied to small wireless facilities are no more burdensome than those applied to other infrastructure deployments.

Locations

Location Preferences. To better assist applicants and decision makers understand and respond to the community’s aesthetic preferences and values, this subsection sets out listed preferences

for locations to be used in connection with small wireless facilities in an ordered hierarchy. Applications that involve lesser-preferred locations may be approved so long as the applicant demonstrates by clear and convincing evidence in the written record that either (1) no more preferred locations or structures exist within 500 feet from the proposed site; or (2) any more preferred locations or structurers within 500 feet from the proposed site would be technically infeasible as supported. The City prefers small wireless in the public rights-of-way to be installed in locations, ordered from most preferred to least preferred, as follows:

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(a) locations within industrial districts on or along six-lane and four-lane arterial roads;

(b) locations within industrial districts on or along two-lane and rural arterial roads;

(c) locations within industrial districts on or along collector roads;

(d) locations within industrial districts on or along local streets;

(e) locations within general commercial, downtown commercial, office commercial districts and agricultural districts on or along six-lane and four-lane arterial roads;

(f) locations within general commercial, downtown commercial, office commercial districts and agricultural districts on or along two-lane and rural arterial roads;

(g) locations within general commercial, downtown commercial, office commercial districts and agricultural districts on or along collector roads;

(h) locations within general commercial, downtown commercial, office commercial districts and agricultural districts on or along local streets;

(i) locations within neighborhood commercial, recreational commercial, service commercial districts and mixed-use districts on or along six-lane and four-lane arterial roads;

(j) locations within neighborhood commercial, recreational commercial, service commercial districts and mixed-use districts on or along two-lane and rural arterial roads;

(k) locations within neighborhood commercial, recreational commercial, service commercial districts and mixed-use districts on or along collector roads;

(l) locations within neighborhood commercial, recreational commercial, service commercial districts and mixed-use districts on or along local streets;

(m) locations within residential districts on or along six-lane and four-lane arterial roads;

(n) locations within residential districts on or along two-lane and rural arterial roads;

(o) locations within residential districts on or along collector roads;

(p) locations within residential districts on or along local streets;

(q) any location within 250 feet from an existing small wireless;

(r) any location within 500 feet from any structure approved for a residential use.

Notwithstanding the location preferences above, small wireless facilities will not be allowed to be located upon publically owned property or right-of-way designated as Park or Open Space.

Prohibited Support Structures. Except when authorized as a pre-approved design pursuant to this Policy, small wireless shall not be permitted on the following support structures:

(a) decorative poles;

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(b) traffic signal poles, cabinets or related structures;

(c) new, non-replacement wood poles;

(d) any utility pole scheduled for removal or relocation within 18 months from the time the Director acts on the small wireless application;

Encroachments Over Private Property. No small wireless antennas, accessory equipment or other improvements may encroach onto or over any private or other property outside the public rights-of-way without the property owner’s express written consent.

No Interference with Other Uses. Small wireless and any associated antennas, accessory equipment or improvements shall not be located in any place or manner that would physically interfere with or impede access to any: (1) worker access to any above-ground or underground infrastructure for traffic control, streetlight or public transportation, including without limitation any curb control sign, parking meter, vehicular traffic sign or signal, pedestrian traffic sign or signal, barricade reflectors; (2) access to any public transportation vehicles, shelters, street furniture or other improvements at any public transportation stop; (3) worker access to above-ground or underground infrastructure owned or operated by any public or private utility agency; (4) fire hydrant or water valve; (5) access to any doors, gates, sidewalk doors, passage doors, stoops or other ingress and egress points to any building appurtenant to the rights-of-way; or (6) access to any fire escape.

Replacement Pole Location. All replacement poles must: (1) be located as close to the removed pole as possible; (2) be aligned with the other existing poles along the public rights-of-way; and (3) be compliant with all applicable standards and specifications by the City Engineer or his or her designee.

Additional Placement Requirements. In addition to all other requirements in this Policy, small wireless facilities, other infrastructure deployments and all related equipment and improvements shall:

(a) be placed as close as possible to the property line between two parcels that abut the public rights-of-way;

(b) not be placed directly in front of any door or window;

(c) not be placed within any sight distance triangles at any intersections;

(d) be placed at least 10 feet away from any driveway or established pedestrian pathway between a residential structure and the public rights-of-way;

(e) be placed at least 75 feet away from any driveways for police stations, fire stations or other emergency responder facilities.

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Design Standards

1. Approved Plans and Workmanship. The permittee shall perform all work in connection with the License Area in strict compliance with the Encroachment permit and in a diligent, skillful and workmanlike manner. All installed equipment must be high quality, safe, fire resistant, modern in design and attractive in appearance, all as approved by the City. After any work at the License Area concludes, permittee shall restore the License Area and any other City Property to the condition that existed immediately prior to the work commenced.

2. Noise. Small wireless facilities and all accessory equipment and transmission equipment must comply with all applicable noise control standards and regulations in the Vacaville Municipal Code, and shall not exceed, either on an individual or cumulative basis, the noise limit in the applicable district.

3. Lights. All equipment with lights (such as indicator or status lights) must be installed in locations and within enclosures that mitigate illumination impacts visible from publicly accessible areas.

4. Preservation of City Property. permittee (nor its Agents or Invitees) may remove, damage or in any manner alter any City property without prior written consent from the City and any other City agencies with jurisdiction over the subject City Property.

5. Damages. If permittee’s operation damages or alters any City owned facilities, permittee shall immediately notify the City of said damage, and shall be responsible for the repair of damages at his expense. Existing trees, shrubs and other plants and lawns, that are not to be removed and are injured or damaged by reason of the permittee’s operations,

shall be replaced by the permittee.

6. Signage; Advertisements. All small wireless facilities shall include one identification plate, and must include permittee’s corporate name and telephone number at which

permittee’s On-Call Representative can be reached at all times (24 hours per day and 7 days per week). permittee must replace the identification plate within 48 hours in the event that any information on such plate changes. Each location must include one Radio-Frequency (RF) warning sticker. Stickers and identification plates shall be placed on pole, immediately below antenna shroud with smallest size and lowest visibility color allowed. Small wireless facilities may not bear any other signage or advertisements unless required by law or recommended under FCC, OSHA or other United States governmental agencies for compliance with RF emissions regulations.

7. Compliance with Health and Safety Regulations. All small wireless facilities shall be designed, constructed, operated and maintained in compliance with all generally applicable health and safety regulations, including without limitation all applicable regulations for human exposure to RF emissions, the Americans with Disabilities Act, California Building Standards Code and the San Rafael Municipal Code.

8. Electrical Connections to Streetlight and Wireless Equipment. The electrical power to serve the wireless system shall be isolated by switch, breaker, fuse or other acceptable means from the streetlight system. The electrical system shall be designed in such a manner that will allow the City and or permittee to shut down power to either the

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streetlight or the wireless system independently of each other. Streetlight shall not be served through the PG&E meter serving the wireless system.

9. Streetlight Poles.

a. Poles shall be limited to one small wireless installation per pole.

b. Equipment installed on Poles shall incorporate the design concepts described herein, and as shown on Exhibit A “Small wireless Installation Detail,” including, but not

limited to: Pole top mounted cylindrical antenna with concealment shroud, shrouded, stacked radio relay units (RRU) and meter equipment, and concealed cabling. See Wireless Equipment section below.

c. To the extent that the existing Pole cannot be modified to accommodate the design concepts for the proposed small wireless installation, the permittee shall replace the existing Pole with a new Pole designed to accommodate the equipment in conformance with these standards.

d. Applications for new Poles shall demonstrate an exact match, in type, wattage, fixture, lighting intensity and lighting distribution, to the existing street light, so as to seamlessly fit with the existing lighting system.

e. Once approved, installed and accepted, the new/existing Pole, light fixture, and lighting infrastructure will become/remain the Property of the City of Vacaville. Wireless equipment will remain the property of the permittee.

f. All pole and equipment installations shall comply with the Americans with Disabilities Act (ADA) accessibility standards within the public right-of-way.

10. Antenna and Accessory Equipment Concealment.

a. Antenna Shrouding. All antennas and associated cables, jumpers, wires, mounts, masts, brackets and other connectors and hardware must be installed within a single shroud or radome. For pole-top antennas, the shroud shall not exceed one and one-half times the median pole diameter and must taper down to pole. For side-arm antennas, the shroud must cover the cross arm and any cables, jumpers, wires or other connectors between the vertical riser and the antenna.

b. Pole-Mounted Accessory Equipment - Preferred Concealment Techniques. Applicants should propose to place any pole-mounted accessory equipment in the least conspicuous position under the circumstances presented by the proposed pole and location. Pole-mounted accessory equipment may be installed behind street, traffic or other signs to the extent that the installation complies with applicable public health and safety regulations.

c. Ground-Mounted Concealment. On collector roads and local roads, the City prefers ground-mounted accessory equipment to be concealed as follows: (A) within a landscaped parkway, median or similar location, behind or among new/existing landscape features and painted or wrapped in flat natural colors to blend with the landscape features; and (B) if landscaping concealment is not technically feasible, disguised as other street furniture adjacent to the support structure, such as, for example, mailboxes, benches, trash cans and information kiosks. On arterial roads

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outside underground districts, proposed ground-mounted accessory equipment should be completely shrouded or placed in a cabinet substantially similar in appearance to existing ground-mounted accessory equipment cabinets.

11. Pole Foundations.

a. Whether utilizing an existing Pole, or installing a new Pole, the permittee shall provide the City with structural calculations, prepared by a properly California Licensed Engineer, demonstrating the adequacy of the existing Pole foundation to support additional loading and to accommodate any modifications to the Pole base, bolt pattern, etc.

b. If an existing Pole foundation is determined to be inadequate, either structurally or due to base alignment, the permittee shall submit design plans that clearly show demolition of the old foundation, details and location of the new foundation, and any modifications to existing electrical conduit runs and conductors.

c. At a minimum, existing foundations to be abandoned shall be removed, including anchor bolts, to a depth of not less than 12” below finished grade.

d. When a new Pole foundation is required, wherever possible reuse the location of the abandoned foundation to place the new pull box for the relocated street light Pole.

12. Utility Connections, Underground Conduit and Trenching.

a. For Poles located within an area served solely by underground utility infrastructure, wireless equipment shall not be served via overhead connection, regardless if for power or communication under any circumstance.

b. Trenching or excavation will not be allowed within any roadway that has been paved or resurfaced (excluding slurry seal) within five (5) years of the date of application for an Encroachment permit, unless the trencher completely restores the roadway to its pre-trenching or pre-excavation condition. Installation of conduit and related substructure facilities for fiber optic cable, when required by the permittee, and approved as part of the Pole License Application, shall be installed in accordance with the City of Vacaville Standard Specifications and Standard Drawings.

Trenching, when required by the permittee, and approved as part of the Encroachment permit, shall be completed in accordance with the City of Vacaville Standard Specifications and Standard Drawings, and shall use the following criteria:

• Whenever possible, trenching shall be located at the back of sidewalk, within the public right of way.

• Direct buried cable is not allowed.

• When trenching within the roadway is permitted, trenching shall be by directional bore unless otherwise approved by the Director of Public Works.

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c. When the modification of pull boxes or pole foundations necessitates removal of concrete, then any curb, gutter and sidewalk shall be saw-cut and removed to nearest score marks or deep joints. Pull boxes shall be located either at grade within the sidewalk, or behind the sidewalk within City right of way.

d. All cables and connectors for telephone, data backhaul, primary electric and other similar utilities must be routed underground in conduits large enough to accommodate future collocated wireless facilities. Undergrounded cables and wires must transition directly into the pole base through an adjacent pull box. All cables, wires and connectors between the underground conduits and the antennas and other accessory equipment shall be routed through and concealed from view within: (A) internal risers or conduits if on a concrete, composite or similar pole; or (B) a cable shroud or conduit mounted as flush to the pole as possible if on a wood pole or other pole without internal cable space.

13. Wireless Equipment.

a. Wireless equipment installed on street light Poles shall comply with these Design Standards and Exhibit A.

b. Equipment on Pole shall be limited to antenna, meter and stacked radio relay units (RRU) and disconnect as depicted on Exhibit A. All other equipment should be low-profile, blended into the surrounding environment, or placed in another location.

c. Antenna shall be a cylindrical type antenna (either in nature or appearance), mounted in a concealment shroud on the top of the Pole. Antenna height shall not exceed 4 feet and shall not exceed 24-inches in diameter. The antenna shroud shall be painted a flat, non-reflective color to match the underlying support structure. Additionally, small wireless facilities may not exceed the minimum separation from electrical lines required by applicable safety regulations (such as CPUC General Order 95), plus four feet.

d. Accessory equipment (equipment other than the antenna) shall be low-profile, and shall not extend more than 12 inches, or the minimum allowed by applicable health and safety regulations, from the Pole surface. All pole mounted equipment shall be housed in a suitable enclosure or shroud to conceal components and cabling from public view. The enclosure shall be coated in material and color matching that of the pole. The permittee shall regularly maintain the enclosure and the equipment.

e. Accessory equipment installed on the pole shall not cumulatively exceed: (i) nine (9) cubic feet in volume if installed in a residential district; or (ii) seventeen (17) cubic feet in volume if installed in a non-residential district. The volume calculation shall include any shroud, or other concealment device used in connection with the accessory equipment.

f. All cables, wires and other connectors must be routed through conduits within the pole, and all conduit attachments, cables, wires and other connectors must enter the Pole with no more than a five-inch separation between bottom of each radio relay unit and the bottom of the corresponding entry hole on the Pole, and must be concealed from public view. Conduit connection at Pole entry points shall utilize the smallest fitting sizes available. Sealing compounds, if utilized, shall be tidy without excess bubbling and painted to match Pole. To the extent that cables, wires and

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other connectors cannot be routed through the pole, permittees shall route them through a single external conduit or shroud that has been finished to match the underlying support structure.

g. Any drilling or cutting that is required on City Poles shall be reviewed by a California licensed structural engineer, certifying the structural integrity of the Pole is preserved. This shall be provided as part of the Pole License Application.

h. Ensure any legs, handles, unnecessary hardware, and manufacturer decals and logos are removed from RRU’s if visible to public.

i. Small wireless facilities may not encroach onto or over any private or other property outside the public rights-of-way.

POLICY IMPLEMENTATION

1. Pre-emption. To the extent that any specific application of this Policy is pre-empted by State or Federal law as determined in consultation with the City Attorney or designee, the Director is authorized to grant an exception to the application that is narrowly tailored to avoid the conflict.

2. Expiration. Except as to Encroachment permits issued under this Interim Policy and

Encroachment permit applications deemed complete under this Interim Policy, the Interim Small Wireless Installation Policy, Standards and Application Process shall expire on its own terms upon the earlier of (1) one hundred sixty days from the date of City Council approval or (2) the effective date of adoption of a permanent policy, whether in the form of an ordinance, resolution, policy, pole license agreement or other document or set of documents, which supersedes this Interim Policy.

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95


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Agenda Item No. 9C April 9, 2019

TO: Honorable Mayor and City Council Attention: Jeremy Craig, City Manager FROM: Barton Brierley, AICP, Community Development Director

Melinda Stewart, City Attorney (Staff Contacts: Christina Love, Associate Planner (707) 449-5374; David Nam, Deputy City Attorney (707) 449-5309)

SUBJECT: STUDY SESSION ON POSSIBLE VACAVILLE ORDINANCE(S) GOVERNING

LAND USE REGULATIONS OF COMMERCIAL AND PRODUCTION ACTIVITIES RELATED TO CANNABIS

PURPOSE: In 2017 the City Council adopted a moratorium on all commercial cannabis activities in Vacaville which expires in September 26, 2019. In preparation for the moratorium expiration, staff presented a plan to City Council to consider cannabis regulations in three phases: (1) personal home grows; (2) commercial production activities; and (3) retail sales and distribution. Since that time, the City has adopted regulations on the first item: personal home grows. Staff is now working on combining the second and third items: commercial production and retail sales, to present to the City council for review and consideration. The purpose of this study session is to provide the Council a review of the various types of available cannabis licensing permitted by the state, and an update on state regulations. The session also is to give the Council an opportunity to provide input and direction on the types of licensing that may be supported in Vacaville. Such direction will provide focus for research and discussion as staff moves forward with community outreach and creation of draft regulations. BACKGROUND: Since 2015, the State of California has been actively approving legislation progressively legalizing cannabis for both medicinal and recreational uses. Provided below is a brief overview of the State’s and City of Vacaville’s activities on the subject.

• October 9, 2015 through June 27, 2017 – State legislation and state voters adopted a series of laws effectively legalizing all cannabis in California. The new consolidated provisions are now known as the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA). The State’s actions address state licensing types, including: cultivation; distribution; transportation; retail sales; testing; manufacturing; potential environmental protection; storage; and home delivery of both medicinal and recreational cannabis. The legislation provides local jurisdictions the ability to further regulate and tax some operations or to ban activities by adopting an ordinance.

Collectively, the new legislation provides a framework for cannabis and cannabis products beyond what the City Code currently addresses. State licensing regulations were effective January 1, 2018.

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• On January 26, 2016 – City of Vacaville City Council adopted the Medical Cannabis Regulations ordinance that permanently prohibits all medical cannabis businesses and operations (including deliveries), and temporarily prohibits personal cultivation of medical marijuana. The ordinance includes a sunset clause relating to the personal cultivation of medical marijuana by qualified patients and primary caregivers which expired February 26, 2018.

• August 22, 2017 – Staff presented City Council with information related to the changes

in cannabis law and requested direction on response actions. During discussions, Council stated they did not support any outdoor growing of cannabis, may consider two retail locations in industrial areas, and may consider limited industrial/manufacturing/ warehousing locations in industrial areas. However, Council shared concerns related to safety, security, crime, and odor. Council’s direction at the time was to move forward with an emergency moratorium prohibiting all cannabis activities to the extent possible while ordinances could be drafted.

• September 26, 2017 – City of Vacaville City Council extended an interim ordinance to preserve and promote the public health, safety, and welfare during the time that City Staff analyzes and prepares a study on industrial, retail, and commercial cannabis land uses, deliveries, and outdoor cannabis cultivation, including providing the City Council with options and recommendations on one or more regulatory ordinances permitting the operation of such establishments. This ordinance expires September 26, 2019.

• December 11, 2018 – City of Vacaville City Council established regulations on personal cannabis cultivation into Municipal Code Title 9: Public Peace, Morals, and Welfare. Title 9 includes the existing 9.13 – Medial Cannabis Regulations.

DISCUSSION: Given the impending expiration of the moratorium, staff is seeking direction from City Council on how to proceed with new City Code regulations for commercial and industrial cannabis activities. In order to have any form of regulation applied to this subject, the City Council must adopt an ordinance by its July 23, 2019 Council meeting. City of Vacaville Code As a result of the moratorium, the Municipal Code currently prohibits any establishment in Vacaville from cultivating, warehousing/storing, manufacturing, distributing, transporting, or selling of cannabis products. The moratorium expires on September 26, 2019. Should Council not move to adopt an ordinance, cannabis activities and operations will be permitted to commence when they are consistent with existing zoning. The center column of Attachment 1 lists how the State cannabis licensing types fit within the City’s existing land use zoning. Should City Council chose to move forward with allowing specified types of commercial or production activities of cannabis with careful regulations in Vacaville, amendments to the Municipal Code would be necessary. The best way to accomplish this is to create a new Land Use and Development Code section regulating cannabis activities; such as a new Land Use Permits and Approvals sections.

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COMMERCIAL AND PRODUCTION TYPE USES (NON-RESIDENTIAL/NON-PERSONAL) Cannabis is no longer separated by medicinal and recreational uses by the State. The State is still completing the process of adopting all the defined regulations for the various different types of licensing. There are currently 22 different non-residential/non-personal licensing types that can generally be categorized as:

• Commercial o direct sales, retail sales o nursery sales o special events

• Production o cultivation o manufacturing o warehousing / wholesale distribution

Attachment 2 includes is a table that details the various types of existing licensing and how each relates to the City’s existing land uses. The table also provides a brief analysis of pros/cons and possible regulations to consider should Council wish to pursue a particular type. The following is a summarized list of the State’s license types.

• Type 1, 1A, 1B: Cultivation – Specialty is less than 5,000 sq. ft. of canopy size o Type 1C: Cultivation – Specialty Cottage is 25 mature plants or 500 sq. ft. of

canopy • Type 2, 2A, 2B: Cultivation – Small is 5,001 sq. ft. – 10,000 sq. ft. of canopy size • Type 3, 3A, 3B: Cultivation – Medium is 10,001 sq. ft. – 22,000 sq. ft. of canopy size • Type 4: Cultivation – Nursery sells clones, immature plants, seeds, and other agricultural

products for propagation • Type 5, 5A, 5B: Cultivation – Large more than 22,000 sq. ft. of canopy • Type 6, 7: Manufacture – non-volatile or volatile solvents (respectively) • Type 8: Testing Laboratory • Type 9, 10: Retailer – non-storefront or storefront (respectively) • Type 11, 13: Distributor – store/warehouse and transport cannabis goods, could be

limited to transport only • Type 12: Microbusiness – must incorporate at least 3 types of “commercial” cannabis

activities at the same facility (i.e. – specialty cultivation and process/manufacture and storefront retail)

This is an updated version of the table that was shared at the August 22, 2017 meeting. A summary of the comments and concepts shared by Council are in Attachment 2. Staff asks that, should Council desire to incorporate any of the license types, that Council specify what types of business/operations should be reviewed further. This will assist staff in focusing research and discussions from the wide range of options. PUBLIC OUTREACH Following Council’s direction, staff is planning to conduct at least two outreach meetings in an attempt to gather insight from Vacaville citizens and businesses.

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• This first of these outreach efforts is an “Open House” planned on April 17, 2019 at the

Ulatis Community Center from 4 pm – 8 pm. The Open House will provide the public with available information regarding cannabis issues, as well as allow anyone who attend to provide input on potential uses and reasonable regulations. Attachment 3 is the flier for this open house.

• The second planned outreach event is scheduled for Friday May 10, 2019 at the

Vacaville Chamber of Commerce’s Business Roundtable. This event will be an educational opportunity for local businesses and an opportunity for them to provide their comments.

• In addition to these formal events, staff will also utilize all forms of social media to update

the public on the progress of cannabis regulations in Vacaville. One such example is a very detailed information section and survey on the City’s new “Let’s Talk, Vacaville” webpage. (www.letstalkvacaville.com)

Once these outreach efforts are completed, staff will compile the comments and information so that it can be shared with Council in May. At that point, staff will update the Council on all the communications received by the public and seek further direction from the Council. Based on the direction received in May, staff will prepare a draft ordinance for a hearing at Planning Commission for their recommendation to Council in June. That ordinance will then be presented to the City Council for a hearing at the July 26, 2019 meeting. This schedule will ensure an ordinance is effective prior to the September 26, 2019 expiration of the moratorium. COUNCIL OPTIONS State law has provided a multitude of information and opened the opportunities for cannabis and cannabis products tremendously. With the City’s moratorium expiring later this year, the City needs to determine a course of action that will be effective by September 26, 2019. Based on the information provided to Council, staff is proposing three potential options for the Council’s immediate consideration and direction. Option 1:

• If Council would like to consider allowing and regulating particular types of cannabis uses (commercial and/or production), please direct staff to draft an ordinance for cannabis regulations. This will:

o Identify specific uses that are supported by Council Commercial – storefronts, non-storefront retail, special events Production types – cultivation, nursey, manufacturing (non-volatile,

volatile), warehousing, wholesale distribution, laboratories, micro-business

o Council would be asked to include specific uses for Staff’s analysis. For example – Are there uses not supported or desired? Are there any

parameters to focus the discussions and research?

OR

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http://www.letstalkvacaville.com/

Option 2: • If Council would like to continue and expand the current prohibition again medical

cannabis to also preclude recreational cannabis, please initiate a Municipal Code amendment and direct staff to draft a new all-inclusive Cannabis Prohibition ordinance (to the extent permissible by State law). This will:

o Create an ordinance that would supersede the existing ordinance, be inclusive of both medicinal and recreational in its prohibition. Such an action may also be amended at a later date. This provides for

more time to observe other jurisdictions and State activities. o NOTE: The activities that cannot be prohibited are personal recreational indoor

cultivation, and deliveries made on public streets.

OR Option 3:

• Take no action and defer to State regulations and licensing as they relate to the existing Land Use and Development Code.

o This would allow all commercial/industrial uses for recreational cannabis that are consistent with our existing land use definitions to apply for State permits and local development entitlements; both indoor and outdoor.

o This would allow for all personal cultivation types to operate; both indoor and outdoor. This would include medical because of the sunset clause in the current Code.

o Note: Staff does not support this option due to the potential for zoning conflicts and the lack of local control.

RECOMMENDATION: That the City Council direct staff on a course of action, based on the options discussed, related to regulations of commercial and industrial cannabis activities. ATTACHMENTS: Attachment 1: Map and Table of Existing Land Use and Zoning Tables compatible with

Licensing Types Attachment 2: Table of State Licensing Type of Breakdown of Non-Personal Uses Attachment 3: Open House Flier

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1

ATTACHMENT 1: STATE LICENSING TYPE OF BREAKDOWN OF NON-PERSONAL USES

MAUCRSA LICENSE TYPE VACAVILLE LAND USE AND DEVELOPMENT

CODE: SIMILAR EXISTING LAND USES* DISCUSSION POINTS

Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. The Department of Food and Agriculture has recently approved cultivation regulations. DFA is now issuing new “provisional” cannabis cultivation license (non-renewable) as a bridge between temporary and annual cultivation licenses (renewable).

Type 1 – Cultivation; Specialty Outdoor; Small Up to 5,000 sf of canopy total

canopy size on one premises, or Up to 50 mature plants on

noncontiguous plots Natural light

RESIDENTIAL: Growing of fruits and nut trees, vegetables, grains, field crops, and horticultural specialties. COMMERCIAL: Agricultural uses (not including livestock); Nurseries, retail; Outdoor storage or sales; Wholesaling and distribution. INDUSTRIAL/AGRICULTURE (must be consistent with Policy Plan or Specific Plan): Growing of fruits and nut trees, vegetables, grains, field crops, and horticultural specialties; Plant nurseries; Grazing or crop or tree farming as an interim use; Manufacturing: Food products – odorous; Warehousing – General; Wholesaling and Distribution – large or small.

Pro: Plants grown outdoors require much less energy usage than indoor grows, economic opportunity Con: High potential for nuisance impacts (smell, crime, trespassing); water usage, waste processing, runoff contamination, potential to conflict with County ag productions and increase cost of ag land; light pollution if using light in greenhouse at night Possible Standards:

• Not in Residential • Must be behind locked, secured,

completely enclosed solid fence • Only on parcels of certain (larger) size • Setbacks from property lines • Decrease odor detected from property line • If not owned by grower, letter from

landlord approving use Comments: Feedback from Solano County Farm Bureau and Agricultural Advisory Committee has not been supportive of outdoor cultivation

*Includes both Permitted by right and Conditional uses. Refer to separate table for specific level of approval required.

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Type 1A - Cultivation; Specialty Indoor; Small Between 501 sf and 5,000 sf of

total canopy size on one premises Exclusively using artificial light

RESIDENTIAL: Growing of fruits and nut trees, vegetables, grains, field crops, and horticultural specialties. COMMERCIAL: Agricultural uses (not including livestock); Nurseries, retail; Wholesaling and distribution. INDUSTRIAL/AGRICULTURE (must be consistent with Policy Plan or Specific Plan): Growing of fruits and nut trees, vegetables, grains, field crops, and horticultural specialties; Plant nurseries; Grazing or crop or tree farming as an interim use; Manufacturing: Food products – odorous; Warehousing – General; Wholesaling and Distribution – large or small.

Pro: Minimize nuisance impacts (smell, crime, trespassing); economic opportunity Con: High energy usage; need to re-circulate or otherwise “clean” nutrient-rich water; waste processing, High potential for nuisance impacts (smell, crime, trespassing) Possible Standards:

• Not in Residential • Only indoor in separate accessory building, in

legally permitted structure • Must be in fully enclosed building – no

greenhouses or translucent structures • Structure must meet building codes, fire codes • Must be locked, secured, and completely

enclosed • Security Plan (video, alarmed emergency exits,

etc.) • Odor control and management plan with

Ventilation plan, No odor should be detected from property line

• Only on parcels of certain (larger) size • If not owned by grower, letter from landlord

approving use

Comments: Could be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee

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3





Type 1B – Cultivation; Specialty Mixed-light; Small Between 2,501 sf and 5,000 sf of

total canopy size on one premises Using combo of natural and

supplemental artificial light


Pro: Economic opportunity, less energy than indoor only Con: Mixed light involves using natural sunlight which may include outdoor exposure or sunroof or translucent greenhouse type structure which would be difficult to secure in commercial districts; light pollution if using light in greenhouse at night Comments: Mixed light commercial cultivation of cannabis in agricultural zoning districts; can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee. Possible Standards: see above

Type 1C - Cultivation; Specialty Cottage; Small

Up to 2,500 sf of total canopy size for mixed light cultivation, or

Up to 25 mature plants for outdoor cultivation, or

Up to 500 sf of total canopy size for indoor cultivation

Combination of natural and supplement light at a maximum threshold on one premises

Pro: Economic opportunity, smaller growing operation Con: High potential for nuisance impact (odor, crime, trespassing); light pollution if using light in greenhouse at night Potential Standards: see above

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4





Type 2 - Cultivation; Outdoor; Small Between 5,001 sf to 10,000 sf of

total canopy size on one premises Using all natural light


Pro: Economic Opportunity, less energy than indoor only Con: High potential for nuisance impacts (smell, crime, trespassing); light pollution if using light in greenhouse at night; water usage, waste processing Outdoor commercial cultivation of cannabis; can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee. Possible Standards: see above

Type 2A - Cultivation; Indoor; Small Between 5,001 sf to 10,000 sf of

total canopy size on one premises Using exclusively artificial light

Pro: Economic opportunity, Minimize nuisance impacts (odor) Con: High energy usage, water and wastewater concerns Indoor commercial cultivation of cannabis can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee. Possible Standards: see above

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5





Type 2B – Cultivation; Mixed-light; Small Between 5,001 sf to 10,000 sf of

total canopy size on one premises Using combo of natural light and

supplemental artificial light


Pro: Economic opportunity, Less energy use than indoor Con: Mixed light involves using natural sunlight which may include outdoor exposure or sunroof or translucent greenhouse type structure which would be difficult to secure in commercial zoning districts; Security, Odor, Light pollution if using light in greenhouse at night. Mixed light commercial cultivation can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee. Possible Standards: see above

Type 3 – Cultivation; Outdoor; Medium Between 10,001 sf – 1 acre of total

canopy size on one premises Using all natural light Department of Food and

Agriculture shall limit number of licenses allowed of this type

Pro: Economic opportunity, less energy than indoor only Con: High energy usage, water and wastewater concerns. Light pollution if using light in greenhouse at night – potential nuisance in rural residential area. Outdoor cultivation can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee. Possible Standards: see above

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6





Type 3A – Cultivation; Indoor; Medium Between 10,001 sf - 22,000 sf of

total canopy size on one premises Exclusively using artificial light Department of Food and



Pro: Economic opportunity, Con: High energy usage, water and wastewater concerns Indoor commercial cultivation of cannabis can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee. Possible Standards: see above

Type 3B – Cultivation; Mixed-light; Medium Between 10,001 sf - 22,000 sf of

total canopy size on one premises Department of Food and


Using combo of natural light and supplemental artificial light

Pro: Economic opportunity, less energy than indoor only Con: Light pollution if using light in greenhouse at night – potential nuisance in rural residential area. Mixed light commercial cultivation can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee. Possible Standards: see above

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7





Type 4 – Cultivation; Nursery Cultivation of cannabis solely as a

nursery Can transport immature plans with

a Type 12 license Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis (for commercial and/or personal)

COMMERCIAL: Agricultural uses (not including livestock); Nurseries, retail; Outdoor storage or sales; Retail and general merchandise stores, with outdoor storage. INDUSTRIAL/AGRICULTURE (must be consistent with Policy Plan or Specific Plan): Growing of fruits and nut trees, vegetables, grains, field crops, and horticultural specialties; Plant nurseries; Grazing or crop or tree farming as an interim use;

Pro: Economic opportunity; Hines Nursery; Mixed light involves using natural sunlight which may include outdoor exposure or sunroof or translucent greenhouse type structure which is suited for use in the commercial zones. Con: Energy usage, need to re-circulate or otherwise “clean” nutrient-rich water, waste processing. Mixed light involves using natural sunlight which may include outdoor exposure or sunroof or translucent greenhouse type structure which may be an issue in commercial zones. Potential Standards:

• Security • Fencing

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8





Type 5 – Large Outdoor Cultivation Greater than or equal to 1 acre of

total canopy size on one premises Using no artificial lighting greater

than 1 acre State will not issue until 1/1/23*

RESIDENTIAL: Growing of fruits and nut trees, vegetables, grains, field crops, and horticultural specialties. COMMERCIAL: Agricultural uses (not including livestock); Nurseries, retail; Outdoor storage or sales; Wholesaling and distribution. INDUSTRIAL/AGRICULTURE (must be consistent with Policy Plan or Specific Plan): Growing of fruits and nut trees, vegetables, grains, field crops, and horticultural specialties; Plant nurseries; Grazing or crop or tree farming as an interim use; Manufacturing: Food products – odorous; Warehousing – General; Wholesaling and Distribution – large or small

Pro: Economic opportunity Con: Very large grow operation, may not be appropriate in Vacaville as it is more of an Agricultural use better suited for larger properties intended for ag in unincorporated Solano County. Not compatible in urban areas. Outdoor cultivation can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee.

*Here, there is a regulatory loophole that has yet to be fixed – Currently, there are no limits on the number of small farm licensing, but there is a limit on large farm licensing. Meaning, a single person/business may hold multiple licenses for small farms in a concentrated area, effectively creating large farms. To address this, local jurisdictions must take affirmative actions if large farms are not desired.

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Type 5A – Large Indoor Cultivation Greater than or equal to 22,000 sf

of total canopy size on one premises

Exclusively using artificial light greater than 22,000 sf on one premises

State will not issue until 1/1/23


Pro: Economic opportunity, Con: Very large grow operation, may not be appropriate in Vacaville as it is more of an Agricultural use better suited for larger properties intended for ag in unincorporated Solano County. Not compatible in urban area. Indoor commercial cultivation of cannabis can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee.

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10





Type 5B– Large Mixed Light Cultivation Greater than or equal to 22,000 sf

of total canopy size on one premises

Using combo of natural light and supplemental artificial light greater than 22,000 sf on one premises

State will not issue until 1/1/23


Pro: Economic opportunity Con: Very large grow operation, may not be appropriate in Vacaville as it is more of an Agricultural use better suited for larger properties intended for ag in unincorporated Solano County. Not compatible in urban areas. Mixed light commercial cultivation can be problematic due to security, odor, and potential for crime per Solano County Farm Bureau and Agricultural Advisory Committee.

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11




Manufacturing generally means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. The state in currently working on a more clear definition for manufacturing and on permitting regulations of such facilities. Any existing facilities would be operating under a temporary license.

Type 6 – Manufacturer 1 Sites that manufacture cannabis products using non-volatile solvents or no solvents (includes edibles) Only for manufacturing products

for sale by a retailed with Type 10 license.

(Medical manufacturer can only sell to medical retailer. [BPC §26130(a)(1)]

Conducts the production, preparation, propagation, or compounding of cannabis or cannabis products; directly, indirectly, or by extraction methods, or independently by means of chemical synthesis, or combination of; in a fixed location that packages of repackages, or labels or relabels.

INDUSTRIAL/AGRICULTURE (must be consistent with Policy Plan or Specific Plan): Manufacturing: Food products – odorous; Warehousing – General; Wholesaling and Distribution – large or small

Pro: Economic opportunity, limited neighborhood impacts due to location Con: Cannabis is not a food or drug and unknown what regulation state will impose; potential for crime due to storage of raw and finished cannabis products. Potential Standards:

• Limited to only industrial areas as part of a policy plan or specific plan

• Security • Fencing

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12




Manufacturing generally means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. The state in currently working on a more clear definition for manufacturing and on permitting regulations of such facilities. Any existing facilities would be operating under a temporary license.

Type 7 – Manufacturer 2 Sites that manufacture products using volatile solvents to extract oil from plant Only for manufacturing products

for sale by a retailer with Type 10 license

(Medical manufacturer can only sell to medical retailer. [BPC §26130(a)(2)]

INDUSTRIAL/AGRICULTURE (must be consistent with Policy Plan or Specific Plan): Manufacturing: Food products – odorous; Warehousing – General; Wholesaling and Distribution – large or small

Pro: Economic opportunity Con: Potential for explosion/fire if not done properly, potential for crime due to storage of raw and finished cannabis products Potential Standards:

• Limited to only industrial areas as part of a policy plan or specific plan

• Security • Fencing • Annual Fire Inspections for fire safety and

code compliance

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13




A testing laboratory, facility, or entity in the state that offers or performs tests of cannabis goods. Testing laboratories must obtain and maintain ISO/IEC 17025 accreditation. Testing laboratories may be issued a provisional license allowing them to operate while they obtain ISO/IEC 17025 accreditation, provided they meet all other licensure requirements.

Type 8 – Testing Laboratory Testing cannabis for pesticides and

THC levels Cannabis or cannabis products shall

not be sold unless a representative sample of the cannabis or cannabis products has been tested by a licensed testing laboratory (BPC sec. 26100)

COMMERCIAL: Business support services; Offices INDUSTRIAL (must be consistent with Policy Plan or Specific Plan): Business support services; Offices

Pro: Potentially low-profile cannabis business with minimal nuisance impacts; economic opportunity

Con: Traffic from transporters; potential crime due to storage of small amounts of cannabis, waste issues Possible Standards:

• Require Use Permit • Must be in fully enclosed building up to

5000 sf • Security Plan (video, alarmed emergency

exits, etc.) • Odor control plan • Ventilation plan • Disposal Plan for cannabis plant, cannabis

product, and testing waste • Sign restrictions • Yearly inspection – tied to operator’s

business license

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14




A storefront retailer licensee sells cannabis goods to customers at its premises or by delivery. A storefront retailer must have a licensed physical location (premises), including address, where commercial cannabis activities are conducted. A non-storefront retailer licensee sells cannabis goods to customers exclusively through delivery. A non-storefront retailer must also have a licensed premises to store the cannabis goods for delivery. The premises of a non-storefront retailer shall not be open to the public.

Type 9 – Non-Storefront Retailer Type 10 – Store Front Retailer Retailer – retail sale and delivery of

cannabis and cannabis products to customers.

Must have physical locations for commercial cannabis activities. May be closed to public, and may conduct sales exclusively by delivery.

Can include a mobile outlet (similar to food truck) [BPC § 26070]

COMMERCIAL: Food Store; Medical office/clinic, Retail and general merchandise store; Temporary commercial uses and events (mobile dispensary) INDUSTRIAL (must be consistent with Policy Plan or Specific Plan): Medical office/clinic; Office; Temporary commercial uses and events (mobile dispensary)

Pro: Possible economic benefit, limited locations promotes better control to access to products, limited locations encourages State compliance and enforcement with regulated security measures, storefront option may decreased residential impacts by reducing need for deliveries, non-storefront may have a lower crime impact (unless it is mobile) Con: Increase in personal crimes in immediate locale because it is an all cash business, impacts to community perceptions/image of locale Currently, medicinal cannabis is not allowed in Vacaville per previous feedback from public outreach regarding dispensaries. No regulation regarding recreational cannabis

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15




Distributor licensees are responsible for transporting cannabis goods, arranging for testing of cannabis goods, and conducting quality assurance review of cannabis goods to ensure they comply with all the packaging and labeling requirements. Distributor transport licenses allow for the transport of cannabis goods between licensed cultivators, manufacturers, and distributors. A distributor transport licensee may not transport cannabis goods to a licensed retailer and may not engage in any other distributor activities

Type 11 – Distributor Type 13 – Distributor – Transport Only Cultivators and manufacturers are

required to send their products to distributors before the product is passed to the next stage of manufacturing or retailing.

Distributors send to testing labs; prior to final distribution and commercial sales.

Only licensed transporters can transport cannabis between the other licensees [BPC §26070(b)]

COMMERCIAL: Wholesaling and distribution. INDUSTRIAL/AGRICULTURE (must be consistent with Policy Plan or Specific Plan): Warehousing – General; Wholesaling and Distribution – large or small

Pro: Economic opportunity, good location if located near major road systems Con: Greater risk of crime with large amount of cannabis products on-site. Could be nuisance with potential trucks loading/unloading. Potential for noise and traffic concerns Possible Standards: see above

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16




A microbusiness license allows a licensee to engage in the cultivation of cannabis on an area less than 10,000 square feet and to act as a licensed distributor, Level 1 manufacturer (Type 6), and retailer, as specified in an application. In order to hold a microbusiness license, a licensee must engage in at least three (3) of the four (4) listed commercial cannabis activities. Licensees will be required to comply with all rules and regulations, including applicable regulations adopted by the California Department of Food and Agriculture and the California Department of Public Health, governing the activities they are engaged in.

Type 12-Microbusiness Cultivation in area of less than

10,000 sf, and Is a Distributor, Level 1

Manufacturer, and Retailer [BPC § 26070(a)(3)(A)]

COMMERCIAL: Food Store; Medical office/clinic, Retail and general merchandise store. (think “micro-brewery” type use). INDUSTRIAL/AGRICULTURE (must be consistent with Policy Plan or Specific Plan): Manufacturing: Food products – odorous; Warehousing – General; Wholesaling and Distribution – large or small

Pro/Con: similar to retailer and cultivation Currently, medicinal cannabis not allowed in the Vacaville per previous feedback from public outreach regarding dispensaries No regulation regarding recreational cannabis

Cannabis events can only be held by a person who has been issued a cannabis event organizer license by the Bureau. The cannabis event organizer is not authorized to cultivate, distribute, manufacture, or sell cannabis or cannabis products unless the organizer also holds a separate license to engage in such commercial cannabis activities.

Cannabis Event Organizers Special Event Permit

Any area or zone where special event permits or temporary use permits may be granted. (Commercial, Industrial, and Public Facilities/Community Facilities)

Pro: short term, temporary events; regional draw; potential economic gains Con: increase in personal crimes in immediate locale because it is an all cash business; insurance/liability concerns Currently, medical cannabis is not allowed in public owned facilities (buildings and parks). Generally, smoking cannabis is treated the same as tobacco use No regulations regarding recreational cannabis or forms other than smoking

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ATTACHMENT 2 Summary of City Council comments from August 22, 2017 Council meeting: Generally:

• No outdoor cultivation of any type of use • Concerns of ability in limiting youth access to cannabis edibles and smoking • Concerns of public safety and public nuisance • Interest in potential economic benefit

Production:

• Potential for manufacturing, warehousing, wholesale/distribution in industrial park areas o Within industrial areas only o No store-front sales or direct sales to individuals o No exterior markings/signs

Retail (Commercial) Specific: (formerly called dispensaries)

• Potential for allowing two retail locations, with the following guidelines o On separate side of town o In industrial areas, far from schools o Limited to small companies o Preference to locally owned, with good standing and prior business experience in

Vacaville o 24-hour security, with Police Department access o No exterior markings/signs o Mandatory periodic review of operations, subject to revocation for reason

• Reasonable taxing, but not excessive Types not discussed:

• Nurseries (Type 4) o a subset of cultivation, but operates differently in City Code

• Laboratories (Type 8) • Micro-businesses (Type 12) • Special events • Non-volatile solvent versus volatile solvent manufacturing (Type 6 or 7)

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WHAT

INFO

WHEN

WHERE

OPEN HOUSE

Cannabis

Commercial and Production Activities

City Planning staff will hold an open house to meet with the community and receive input about

potential local cannabis regulations for commercial and production related uses in Vacaville.

Ulatis Community Center

1000 Ulatis DriveVacaville, CA 95687

WednesdayApril 17, 2019

4:00 p.m. to 8:00 p.m.Open house - drop in any time

Questions?Contact Christina Love

Associate Planner

at (707) [email protected]

Join us and come talk with City staff about cannabis in Vacaville.

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SErnst

Typewritten Text

ATTACHMENT 3


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Agenda Item No. 9D April 9, 2019 TO: Honorable Mayor and City Council Attention: Jeremy Craig, City Manager FROM: Barton Brierley, AICP, Community Development Director (Staff Contact: Tyra Hays, AICP, Senior Planner, 449-5366) SUBJECT: DOWNTOWN SPECIFIC PLAN & DOWNTOWN CONNECTIVITY AND

STREETSCAPE DESIGN PLAN - APPOINTMENT OF A COMMUNITY MEMBER TO SERVE ON THE COMMUNITY ADVISORY COMMITTEE

DISCUSSION:

At the March 26, 2019 City Council meeting, the City Council appointed nine members to the Downtown Specific Plan and Downtown Connectivity and Streetscape Plan Citizen Advisory Committee (“CAC”). Those members are identified in Attachment 1. At the same City Council meeting, Michael Fortney, who had been appointed as a CAC member, was appointed to the Planning Commission. Following these appointments, Staff advised Mr. Fortney that serving on the CAC and the Planning Commission could present a conflict of interest. As a result, Mr. Fortney will not be serving as a CAC member in order to focus on being a new Planning Commissioner. Also at the same City Council meeting, the City Council directed staff to appoint someone who represents a late night Downtown business to the CAC. Staff recommends Mr. Ed Baun, the owner of the Str8 Shooters Bar, located at 1072 East Monte Vista Avenue, to serve as a member of the CAC. While Str8 Shooters is located outside of the Downtown Specific Plan boundary, it has experienced some of the same challenges experienced by the bars located in the heart of Downtown. If appointed by the City Council, Mr. Baun has agreed to accept this position. FISCAL IMPACT:

None. RECOMMENDATION:

By simple motion, appoint Mr. Baun to the Community Advisory Committee for the Downtown Specific Plan and the Downtown Connectivity and Streetscape Design Plan. ATTACHMENTS:

1. Community Advisory Committee Member List

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Attachment 1

Downtown Specific Plan and Downtown Connectivity and Streetscape Design Plan Citizen Advisory Committee Members

On March 26, 2019, the City Council appointed the following list of people to the Downtown Specific Plan and Downtown Connectivity and Streetscape Design Plan Citizen Advisory Committee:

Carol Gilpin* – Owner of Fleet Feet

Eric Dakin* – Dakin & Dakin Commercial Realty. Participated on the Heart of Fairfield Downtown Specific Plan

Ezio Lucido – Owner of Luminous Media Group

Farzad Mobin* – Property and Business Owner of the Deville Theater

Lanie Keyston – Vacaville Museum

Sean O’Brien – Edward Jones

Sioban McGee – Co-owner of Heritage House

Alondra Puebla – Vacaville High School Student

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TO: Honorable Mayor and City Council Members Attention: Jeremy Craig, City Manager FROM: Dawn M. Leonardini, Director of Administrative Services (Staff Contact: Ken Matsumiya, (707) 449-5180) SUBJECT: APPROVAL OF ACCOUNTS PAYABLE AND PAYROLL PAYMENT OF

CLAIMS FOR THE WEEKS ENDING MARCH 22, 2019 AND MARCH 29, 2019 AND WIRE AND ACH DISBURSEMENTS FOR THE MONTH OF MARCH 2019

DISCUSSION: Pursuant to California Government Code Section 37208, the payment of claims registers shall be presented to the legislative body for ratification and approval at the first meeting after delivery of the checks. The Director of Administrative Services has submitted the register(s) showing the payment of claims for the timeframe above for approval by the City Council. The registers can be found attached to the electronic agenda on the City’s website. FISCAL IMPACT: The claims paid for the period total $9,362,834.62. RECOMMENDATION: By simple motion, approve the Payment of Claims. ATTACHMENT: Attachment A - Affidavit of Director of Administrative Services

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