Title
Establishment of a Multi-Year Operating Project for the Sutter Medical Office Remodel (I21006800)
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FileID
File ID: 2026-00137
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Location
Location: 660 J Street, District 4
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Recommendation
Recommendation: Adopt a Resolution authorizing the City Manager or designee to: 1) establish a multi-year operating project (MYOP) for the Sutter Medical Office Remodel project (I21006800); and 2) establish revenue and expenditure budgets in the MYOP in the Development Services Fund (Fund 2016) based on the actual amount of fees received.
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Contact
Contact: Charles Clark, Chief Building Official, (916) 808-3725, cclark1@cityofsacramento.org, Community Development Department
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
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Description/Analysis
IssueDetail
Issue Detail: The use of Multi-Year Operating Projects (MYOPs) provides better accountability and monitors actual Community Development Department costs incurred for the development of the project. As this project will cross multiple fiscal years, staff is requesting authority to establish a MYOP for the Sutter Medical Office Remodel (I21006800) project. This project consists of a 119,000 square foot (sq. ft.), four-story medical office building; two-story parking under building.
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PolicyConsiderations
Policy Considerations: The recommended action requires City Council approval pursuant to City Council Resolution 2025-0162, Section 13.2; City Council approval is required for the establishment of a MYOP.
As part of Resolution 2015-0123, a policy for the Development Services Fund (Fund 2016) was adopted to ensure the prudent management of development funds for the public and the City management of major development projects, when the building valuation is more than $50.0 million (as adjusted by the Consumer Price Index, or $74 million for Fiscal Year 2025/26).
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) [CEQA Guidelines Section 15061 (b) (3); 15378 (b) (2)].
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: This project requires building plan review and inspection services. The expected project completion date is in 2029. City review and processing fees are based on project valuation, staff hourly rates, and flat fees adopted by resolution and are paid in accordance with established City policies and procedures. Establishing a MYOP to monitor the development will allow staff to administer and manage project expenses related to plan review and permit inspections services over the life of the project.
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FinancialConsiderations
Financial Considerations: Staff recommends that the City Council authorize the establishment of the Sutter Medical Office Remodel project (I21006800). Budgets will be initially established as $250,000 and then adjusted, based on the actual amount of development review fees received.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): None.
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