Folsom City Council
April 12, 2022

04/12/2022 Item No.14.

SECTIONS

5. Oversight and Regulation by City.
5 .1 Oversight of Construction. In accordance with applicable law, the City shall have the right to oversee and inspect the Construction of the System in the Public Way.

5.2 Compliance with Applicable Laws. SiFi Networks shall, at all times during the Term, be subject to and comply with all applicable federal, state laws and local laws regarding the Construction of the System in the Public Way.

5.3 Treatment of SiFi Provided Information. The City agrees to notify SiFi Networks if the City receives a California Public Records Act request relating to SiFi Networks provided information and documents or the System.

SECTION6

6. Insurance.

SiFi shall procure at its sole expense and maintain from the Effective Date and for the duration of the Term of the Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the SiFi, its agents, representatives, employees, or subcontractors.

6.1 Minimum Scope and Limit of Coverage.

Coverage shall be at least as broad as:

A. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

Coverage shall include blanket contractual liability and broad form property damage, premises, operations, explosion, collapse, underground hazard ( commonly referred to as "X", "C" and "U" coverages
B. Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $1,000,000 per accident for bodily injury and property damage.

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C. Workers' Compensation insurance as required by the State of California, with Statutory Limits, and Employers' Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.

D. Builder's Risk (Course of Construction) insurance utilizing an "All Risk" (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.

E. Professional Liability with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate. The retroactive date must be shown, and this date must be before the execution date of the contract or the beginning of contract work. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of contract work. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective, or start of work date, the SiFi must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work. A copy of the claims reporting requirements must be submitted to the City for review.

F. Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate. If the services involve lead-based paint or asbestos identification/remediation, the Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

If the Contractor or SiFi maintains broader coverage and/or higher limits than the minimums shown above for all policies, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Contractor or SiFi. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City to the extent necessary to cover any actual damages suffered by the City.

6.2 Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. At the option of the City, SiFi shall cause the insurer to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or SiFi shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense

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expenses. The policy language shall provide, or be endorsed to .provide, that the self-insured retention may be satisfied by either the named insured or City.

6.3 Other Insurance Provisions:

A. Additional Insured. The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL and automobile policy with respect to liability arising out of work or operations performed by or on behalf of SiFi including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by or on behalf of SiFi. General liability coverage can be provided in the form of an endorsement to the Sifi's insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

B. Primary and Non-Contributory Insurance. For any claims related to this project, SiFi's CGL and automobile insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the SiFi's insurance and shall not contribute with it.

C. Notice of Cancellation. SiFi shall provide immediate written notice if (1) any of the required insurance policies is terminated; (2) the limits of any of the required policies are reduced; (3) or the deductible or self-insured retention is increased. In the event of any cancellation or reduction in coverage or limits of any insurance, Sifi shall forthwith obtain and submit proof of substitute insurance.

D. Builder's Risk (Course of Construction) Insurance. SiFi may, if requested by the City, submit evidence of Builder's Risk insurance in the form of Course of Construction coverage. Such coverage shall name the City as a loss payee as their interest may appear.

If the project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the City's site.

E. Acceptability of Insurers. Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A: VII, unless otherwise acceptable to the City.

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F. Waiver of Subrogation. SiFi hereby agrees to waive rights of subrogation which any insurer of SiFi may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. However, the Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.

G. Verification of Coverage. SiFi shall furnish City with Certificates of Insurance including all required amendatory endorsements ( or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before the date of the start of Construction.

However, failure to obtain the required documents prior to the work beginning shall not waive the SiFi's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.

H. Contractor/Subcontractors. SiFi shall require and verify that its Contractor and all subcontractors maintain insurance meeting all the requirements stated herein, and SiFi shall require its Contractor and all the subcontractors to list City is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.

I. Special Risks or Circumstances. City reserves the right to modify, at any time, these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances.

SECTION 7

7. Parties' Obligations.

7.1 City Cooperation. City agrees to work in good faith with SiFi Networks as it applies to City for permits that may be required by City and in the event state or federal law or regulations prevents or precludes compliance with one or more provisions of this Agreement, or requires material modification of the Agreement, SiFi Networks shall promptly notify the City in writing of the anticipated duration of any delay caused thereby, and provided any such delay is not the fault of SiFi Networks, the parties agree SiFi Networks may seek an extension of this Agreement as approved by the City as may be reasonably necessary to comply with such new state and federal laws or regulations or the regulations of other governmental jurisdictions.

When reasonably able, City will provide SiFi Networks with a least thirty (30) days advance notice of any work in the Public Way that

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requires the relocation of the System. In addition, where necessary, the City will provide SiFi Networks with an opportunity to access the System at the time of the excavation in the Public Way by others.

7.2 Obligations of SiFi Networks. In addition to all other duties and obligations contained elsewhere in this Agreement, SiFi Networks has the following duties and obligations:
(i) Work closely with the SPOC of the City and relevant City departments with respect to the construction of the System. (ii) Comply with all requirements of City for permit and Public Way use applications, to the extent they may be required. (iii) Provide or arrange for the maintenance of the System and its functionality and operation.
(iv) SiFi Networks and its contractors shall register with California DigAlert; and
(v) SiFi Networks to relocate its facilities as needed for City capital improvement projects provided however that such City capital improvements project shall be limited to only those projects impacting, directly or indirectly, more than three hundred (300) contiguous feet of the System in the Public Way or the Sewer System ("Major Public Works Project"). Such Major Public Works Project(s) shall not include routine maintenance and repair that does not impact the System, including without limitation repair of pot holes, milling and repaving of roadways, and repair and replacement of sewer pipes and/or other aspects of the Sewer System.

The City shall provide SiFi Networks with not less than sixty (60) days written notice of such Major Public Works Project, and SiFi shall temporary relocate or cause to be relocated any of its impacted System within one hundred eighty (180) days of notification by the City at its sole cost and expense. In the event SiFi Networks determines in its sole discretion that such Major Public Works Project will have a material impact on the System such that it would be in the best interests of the Parties to temporarily or permanently relocate some or all of the System, the City agrees to provide all reasonable accommodations as reasonably requested by SiFi Networks and with no cost or charge by the City to SiFi Networks other than standard encroachment permit application and inspection fees, to allow and facilitate SiFi Networks the ability to temporarily or permanently relocate such portion of the System in or around the Public Way or Sewer System in a manner sufficient to maintain the operation of the System pursuant to the terms of the Agreement. SiFi Networks shall be responsible for the cost of any such temporary or permanent relocation of any portion of the System in connection with a Major Public Works Project.

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(vi) SiFi Networks will endeavor to facilitate an introductory meeting between the City and Service Provider(s) who use the Network to provide services to residential and business, and further will advise any such Service Provider(s) that the City may require fees as required by law or regulation.
(vii) Provide response times in connection with repairs to be undertaken by SiFi Networks and/or contractors retained by SiFi Networks (as opposed to repairs to be undertaken by the City) and to establish the necessary personnel levels for required dispatch, repair, inventory, maintenance, and service of the System commencing no earlier than Substantial Completion as follows:
(i) Depending upon the type of fault or the method of
identification, the City shall notify SiFi of a suspected fault and the generation of a service ticket. The City shall issue to SiFi one of the following service ticket(s), for which SiFi shall provide the corresponding response time:
(1) Standard Response ("STANDARD")
a) Description: Construction in
progress, capital improvement and other such
projects impacting or potentially impacting the SiFi
System and/or may impact the SiFi System, about
which the City is aware of in advance. Examples of
such projects include mill and fill projects, side
relocations, road reclamation projects, and other
similar projects, provided that any such
STANDARD repair is subject to the then current
California Dig Safe laws and regulations, and all
other applicable laws and regulations.
b) SiFi's contractor response time: On-
site within forty-five (45) business days
(2) Non life threatening Emergency Response
("NON-L TER")
a) Description: Curb and gutter
projects, and utility (including telecommunications)
projects requiring relocation, repair, or replacement
that are impacted by the SiFi System and/or may
impact the SiFi System, provided that any such
NON-LTER repair is subject to the then current
California Dig Safe laws and regulations, and all
other applicable laws and regulations.

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b) SiFi response time: On-site within
seventy-two (72) hours
(3)
("LTER")
Life Threatening Emergency Response
a) Description: Break or hit in the main
gas, main electric, main water, or main sewer line
in the Public Way that has an immediate and direct
impact to the traveling safety of the public in or
around the Public Way, and wherein the City's
ability to implement repairs are impacted by the
SiFi System and/or City repairs may impact the SiFi
System.
b) SiFi' s contractor response time: On-
site within four ( 4) hours
(ii) Upon receipt of a service ticket as set forth herein, SiFi will use reasonable efforts to dispatch a technician to the specified fault location as identified by the City. SiFi, working with the City, will then make the determination as to whether the technician will proceed with the repair(s) if possible, wait for arrival of a City contractor if necessary for investigation and/or repair of work, or leave the site.

SECTIONS

8. Breach; Rights and Remedies; Termination; Indemnification.

8.1. SiFi Networks Breach or Default. In the event the City believes that SiFi Networks has not complied with or is otherwise in default with regard to any term of this Agreement, the City shall promptly notify SiFi Networks in writing with specific details regarding the exact nature of the alleged noncompliance or default (a "City Breach Notice").

8.1.1 SiFi Networks' Right to Cure or Respond. SiFi Networks shall have thirty (30) calendar days from its receipt of a City Breach Notice (the "Initial SiFi Cure Period") to:
(i) respond to the City, contesting the assertion of
noncompliance or default and in such event the Parties shall use commercially reasonable efforts to promptly resolve such contest and to the extent the Parties are unable to resolve such contest within thirty (30) calendar days of SiFi Networks' response, each Party shall be entitled to seek any and all rights and remedies available to it at law or in equity to resolve such contest; or

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(ii) cure an actual default or noncompliance; provided, however, in the event that the default is curable but due to the nature of the default or noncompliance, such default or noncompliance cannot be cured within the Initial SiFi Cure Period, so long as SiFi Networks initiates reasonable steps to remedy and continuously and diligently uses all reasonable efforts to cure such default or noncompliance promptly and notifies the City of the steps being taken and the projected date that they will be completed, the Initial SiFi Cure Period shall be extended for a reasonable amount of time to permit such cure but not to exceed sixty (60) calendar days from SiFi Networks' receipt of a City Breach Notice (the "Extended SiFi Cure Period" and together with the Initial SiFi Cure Period, the "SiFi Cure Period").

8.1.2 City Rights and Remedies.
(i) Except as provided in Sections 8. l .2(ii), (iii) and (iv) below which shall control in connection with the events described therein, if SiFi Networks fails to cure any actual noncompliance or default as provided in Section 8.1.l(ii) above within the SiFi Networks' Cure Period, the City may:
(a) seek specific performance of any provision of this
Agreement which lends itself to such remedy as an
alternative to money damages; or
(b) seek money damages from SiFi Networks; or
( c) in the event of the breach of, noncompliance with or default under any material term of this Agreement, terminate this Agreement and seek any and all rights and remedies available to it at law or in equity.
(ii) Subject to Section 10.2 below and provided that all applicable permits have been issued by the City, in the event SiFi Networks fails to commence Construction on or before the Construction Commencement Deadline in accordance with Section 4.1 above and subsequently fails to commence Construction within the SiFi Cure Period, the City may provide written notice to SiFi Networks of the City's intent to terminate this Agreement for such failure. SiFi Networks shall have an additional thirty (30) calendar day period after the SiFi Cure Period to commence Construction (the "Additional SiFi Cure Period"). If SiFi Networks fails to commence Construction by the last day of the Additional SiFi Cure Period, the City may terminate this Agreement by written notice to SiFi Networks and seek appropriate damages under this Agreement.

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(iii) Subject to Section 10.2 below and provided that all applicable permits have been issued by the City, in the event SiFi Networks fails to complete construction of the System by the Construction Completion Deadline in accordance with Section 4.1 above and subsequently fails to complete said construction within the SiFi Cure Period, the City may provide written notice to SiFi Networks of the City's intent to terminate this Agreement for such failure. SiFi Networks shall have an additional thirty (30) calendar day period after the SiFi Cure Period to complete construction (the "Additional SiFi Completion Cure Period"). If SiFi Networks fails to complete said construction by the last day of the Additional SiFi Completion Cure Period, then SiFi Networks shall cease further construction but shall be allowed to operate the partially completed System.
(iv) Subject to Section 10.2 below and provided that all applicable permits have been issued by the City, at any time after Substantial Completion is achieved, in the event no internet, voice, data, or video service of any kind is capable of being provided over the System due solely to the acts or omissions of SiFi Networks for a period in excess of thirty (30) consecutive calendar days and SiFi Networks fails to restore such capability within the SiFi Cure Period, the City may provide written notice to SiFi Networks of the City's intent to terminate this Agreement. SiFi Networks shall have an additional thirty (30) calendar day period after the SiFi Cure Period to restore the capability of the System to provide Service (the "Additional SiFi Service Cure Period"). If SiFi Networks fails to restore the capability of the System to provide Service by the last day of the Additional SiFi Service Cure Period, then SiFi Networks shall cease further construction but shall be allowed to operate the partially completed System .. (v) Notwithstanding anything to the contrary in this
Agreement, in no event shall the City be permitted to terminate this Agreement if the City is in breach of or default under this Agreement.

8.2 City Breach or Default. In the event SiFi Networks believes that the City has not complied with or is otherwise in default with regard to any term of this Agreement, SiFi Networks shall promptly notify the City in writing with specific details regarding the exact nature of the alleged noncompliance or default (a "SiFi Breach Notice"). The failure to promptly provide such notice, however, shall not act as a waiver of any rights and remedies of SiFi Networks hereunder unless and only to the extent that the City is materially prejudiced by such failure.

8.2.1 City's Right to Cure or Respond. The City shall have thirty (30) calendar days from its receipt of a SiFi Breach Notice (the "City Cure Period"; provided that the City Cure Period for a failure of the City to review permit applications and issue a permit(s) necessary to construct the System as

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required under Sections 3.2 and 7.2.l(iv) (a "Permit Issuance Breach") shall be seven (7) business days from its receipt of a SiFi Breach Notice) to:
(i) respond to SiFi Networks, contesting the assertion of noncompliance or default and in such event the Parties shall use commercially reasonable efforts to promptly resolve such contest and to the extent the Parties are unable to resolve such contest within thirty (30) calendar days of the City's response, each Party shall be entitled to seek any and all rights and remedies available to it at law or in equity to resolve such contest; or
(ii) cure an actual default or noncompliance; provided, however, in the event that the default is curable but due to the nature of the default or noncompliance, such default or noncompliance cannot be cured within the City Cure Period, so long as the City initiates reasonable steps to remedy and continuously and diligently uses all reasonable efforts to cure such default or noncompliance promptly and notifies SiFi Networks of the steps being taken and the projected date that they will be completed, the City Cure Period shall be extended for a reasonable amount of time to permit such cure but not to exceed ninety (90) calendar days from the City's receipt of a SiFi Breach Notice (the "Extended City Cure Period"); provided further, however, no Extended City Cure Period shall apply to a Permit Issuance Breach.

8.2.2 SiFi Networks Rights and Remedies. If the City fails to cure any actual noncompliance or default as provided in Section 8.2.1 (ii) above within the applicable City Cure Period, SiFi Networks may:
(i) seek specific performance of any provision of this Agreement which lends itself to such remedy as an alternative to money damages; or
(ii) in the event of the breach of, noncompliance with or default under any material term of this Agreement, terminate this Agreement.

8.3 Additional Rights to Terminate.

8.3 .1 At any time prior to commencing Construction or in the event the City fails to comply with the requirements of the Agreement, SiFi Networks shall have the immediate right, at its option, upon notice to the City to terminate this Agreement and shall be entitled to any and all other rights and remedies available to it at law or in equity, subject to the specific legal limitations SiFi Networks agreed to in this Agreement.

8.3.2 A Party shall have the right, at its option, upon notice to the other Party to terminate this Agreement if the other Party becomes (i)

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insolvent, admits in writing its inability to pay its debts as they mature, makes an assignment for the benefit of creditors, or becomes subject to direct control of a trustee, receiver or similar authority, or (ii) subject to any bankruptcy or insolvency proceeding under federal, state or foreign statutes which is not rescinded or dismissed within thirty (30) calendar days.

8.4 Indemnification.

SiFi Networks shall defend, indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner which actually or allegedly arise out of or are incident to any alleged intentional or negligent acts, errors, omissions, or willful misconduct of SiFi Networks, its officials, officers, employees, agents, contractors and subcontractors arising out of or in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of all attorney's fees and other related costs and expenses except where caused by the sole negligence, or willful misconduct of the City its officers, officials, employees and volunteers. SiFi Networks shall defend, at its own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its directors, officials, officers, employees, agents or volunteers. SiFi Networks shall pay and satisfy any judgment, award or decree that may be rendered against the City or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. SiFi Networks shall reimburse the City, its officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. SiFi Networks' obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City its officials, officers, employees, agents or volunteers. It is understood that the duty of SiFi Networks to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve SiFi Networks from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply, and shall further survive the expiration or termination of this Agreement. By execution of this Agreement, SiFi Networks acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.

8.5 Limitation of Liability. IN NO EVENT WILL EITHER PARTY

BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, CONSEQUENTIAL,

SPECIAL, INCIDENTAL, RELIANCE, OR PUNITIVE DAMAGES OF ANY KIND

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OR NATURE WHATSOEVER, INCLUDING ANY LOST SAVINGS OR HARM TO BUSINESS. EACH PARTY HEREBY RELEASES THE OTHER PARTY AND ITS

AFFILIATES AND THEIR RESPECTIVE DIRECTORS, OFFICERS, MANAGERS,

MEMBERS, EQUITY AND DEBT HOLDERS, PARTNERS, EMPLOYEES,

CONTRACTORS AND REPRESENTATIVES AND THEIR HEIRS, SUCCESSORS AND ASSIGNS, FROM CLAIMS FOR ANY SUCH DAMAGES. Notwithstanding anything to the contrary contained in this Agreement, the provisions of this Section 8.5 will survive expiration or termination of this Agreement.

SECTION9

9. Disputes.

9.1 For all claims, disputes or controversies arising out of, or in connection with, the breach, interpretation, application, or enforcement of this Agreement, or arising out of, or in connection with, the System which cannot be settled through negotiation, the Parties agree first to try in good faith to settle the matter by mediation in Sacramento County, California, prior to commencing litigation.

9.2 All claims, disputes or controversies arising out of, or in connection with, the breach, interpretation, application, or enforcement of this Agreement, or arising out of, or in connection with, the System, shall be decided in a court of law. The sole and exclusive venue for all claims, disputes or controversies arising out of, or in connection within the breach, interpretation, application, or enforcement of this Agreement, or arising out of, or in connection with, the System, shall be in a state court in Sacramento County, California.

SECTION 10

10. Miscellaneous Provisions

10.1 Assignment. The provisions of this Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and each of their respective successors and assigns as provided herein. The City shall not be permitted to assign, sell or transfer this Agreement, or its rights and duties under this Agreement, without the prior written consent of SiFi Networks, which consent shall not be unreasonably withheld, conditioned, or delayed. SiFi Networks shall have the right to assign, novate, sell, encumber, or transfer this Agreement and the System or any part thereof, without the consent of the City to Sifi's principal, affiliates, subsidiaries, subsidiaries of its principal or to any entity which acquires all or substantially all of the SiFi's assets in the market by reason of a merger, acquisition, or other business reorganization, provided such assignee, purchaser, or transferee has all appropriate licenses, to the extent SiFi's licenses, permits and approvals cannot be assigned or transferred, for the operation, management, and maintenance of the facilities contemplated herein and sufficient financial resources to fulfill all applicable terms and obligations under this Agreement. All other assignment, sale, or transfer by SiFi Networks of this Agreement shall require prior written consent of the City, which shall not be unreasonably withheld, delayed or conditioned. At least

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thirty (30) calendar days prior to the effective date, or as soon as practicable, of any such assignment, sale or transfer, SiFi shall provide City with a fully executed copy of the assignment, sale or transfer document, signed by both Sifi and assignee/purchaser/transferee, indicating the assignee's/purchaser's/ transferee's assumption of all of SiFi's performance duties, liabilities and obligations under this Agreement. SiFi shall not be relieved of its performance duties, liabilities or obligations under this Agreement until City is in receipt, of a fully executed copy of the document evidencing such assignment of the obligations herein and the assignee's/purchaser's/transferee's assumption of SiFi' s performance duties, liabilities, and obligations under this Agreement. Sifi may not otherwise assign this Agreement or the System without City's consent, City's consent not to be unreasonably withheld, conditioned, or delayed. Upon any such assignment, sale, transfer, or novation, SiFi Networks shall be released from all obligations and liabilities under this Agreement from and after the date of such assignment. SiFi Networks shall give the City thirty (30) days' advance notice of such assignment, sale, transfer or novation disclosing the identity of the Person to whom it has been assigned, transferred, sold or novated. The City agrees from time to time to promptly deliver (and in no event later than ten (10) days after request by SiFi Networks) to SiFi Networks an estoppel certificate addressed to the assignee, buyer or transferee designated by SiFi Networks, affirming for the benefit of such buyer, assignee or transferee the following (to the extent that the following are then true): the Agreement is in full force and effect; SiFi Networks is not in default thereunder; and such other matters as such assignee, buyer or transferee may reasonably request.

10.2 Force Maieure. Except as otherwise expressly set forth in this Agreement, SiFi Networks will not be held in default under, or in breach or noncompliance with, the provisions of this Agreement, nor suffer any enforcement or penalty relating to noncompliance or default (including termination, cancellation or revocation of this Agreement), where such noncompliance or alleged defaults occurred or were caused by any of the following events (each a "Force Majeure Event"): failure by the City to issue permit(s) required to construct the System or any part thereof to SiFi Networks or its contractor(s), failure by the City to comply with this Agreement, conduct by the City that materially interferes with SiFi Networks' ability to perform, labor strike, riot, war, earthquake, flood, hurricane, drought, tornado, unusually severe weather conditions, or other act of nature, labor disputes, failure of utility service necessary to construct the System, governmental, administrative or judicial order, or other event that is beyond SiFi Networks' reasonable control. Force Majeure Events also include work delays caused by waiting for utility providers to service or monitor their own utility infrastructure on which SiFi Networks' fiber optic cable and/or equipment may be deployed, as well as unavailability of materials and/or reasonably qualified labor to perform the work.

10.3 Notice. All notices and communications hereunder shall be in writing and shall be served upon the other party by hand delivery, nationally recognized overnight delivery service, United States certified mail, return receipt requested, electronic mail, or by facsimile with confirmed transmission and addressed as follows:

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IF TO THE CITY:

City of Folsom
50 Natoma Street
Folsom, CA 95630
Attn: City Attorney
IF TO SIFI NETWORKS:

SiFi Networks
841 Apollo Street, Suite 4 70
El Segundo, CA 90245
Email: N OTI [email protected]
or to such other address as such Party may hereafter specify for the purpose by notice to the other Party in the manner provided in this Section 10.3. All such notices, requests and other communications will be deemed received on the date of receipt if received prior to 5 p.m. on any business day in the place of receipt. Otherwise, any such notice, request or communication will be deemed not to have been received until the next succeeding business day in the place of receipt. Rejection or other refusal to accept or inability to deliver because of change of address of which no notice was given shall be deemed to be receipt of the notice.

10.4 Entire Agreement. This Agreement, including all Exhibits, embodies the entire understanding and agreement of the City and SiFi Networks with respect to the subject matter hereof. This Agreement supersedes all other agreements whether written, verbal, or otherwise between SiFi Networks and the City with respect to the subject of this Agreement.

10.5 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement (which other terms and provisions shall remain in full force and effect) or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

10. 6 Governing Law. This Agreement shall be deemed to be executed in the State of California and shall be governed in all respects, including validity, interpretation and effect, and construed in accordance with, the laws of the State of California as applicable to contracts entered into and performed entirely within the State, irrespective of conflict of laws principles.

04/12/2022 Item No.14.

10.7 Modification. This Agreement shall not be amended or otherwise modified, in whole or in part, except by an instrument, in writing, duly executed by the City and SiFi Networks. For the avoidance of doubt, this Agreement cannot be amended or modified orally or by course of conduct, and no executory agreement, oral agreement or course of conduct shall be effective to amend or modify this Agreement in whole or in part.

10.8 No Third Party Beneficiaries. Nothing in this Agreement or in any prior agreement is or was intended to confer third party beneficiary status on any party or Person not a party to this Agreement including a member of the public.

10.9 No Waiver of Rights. Nothing in this Agreement shall be construed as a waiver of any rights, substantive or procedural that SiFi Networks or the City may have under federal or state law unless such waiver is expressly stated herein.

10.10 No Rights to the System. The City expressly agrees that, except as expressly set forth in this Agreement, it does not and shall not claim at any time any interest or estate of any kind or extent whatsoever in the System, throughout the term of this Agreement. Except as provided in Section 8.1.2 (iii) and Section 8.1.2 (iv) above, SiFi Networks shall, at all times, retain title to and ownership of the System and all future extensions of the System, and shall have the right to lease the System or parts thereof to a provider of internet, data, voice, video and other services.

10.11 Representations and Warranties.

10.11.1 The City represents and warrants to SiFi Networks that: (a) it has full authority (including the authority required by any applicable law, ordinance, rule or regulation) to enter into and perform this Agreement and the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby and thereby are within the right, power and authority of the City and have been duly authorized by all necessary action on the part of City, (b) this Agreement has been duly executed and delivered by the City and it constitutes a legal, valid and binding agreement of the City enforceable against the City in accordance with its terms ( except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and by general principles of equity) and (c) the execution and delivery of this Agreement by the City and its performance hereunder and thereunder will not violate any law, ordinance, rule, or regulation applicable to the City.

10.11.2 SiFi Networks represents and warrants to the City that: (a) it has full authority to enter into and perform this Agreement and the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby and thereby are within the power and authority of SiFi Networks and have been duly authorized by all necessary action on the part of SiFi Networks, (b) this Agreement has been duly executed and delivered by SiFi Networks and it constitutes a legal, valid and binding agreement of SiFi

04/12/2022 Item No.14.

Networks enforceable against SiFi Networks in accordance with its terms (except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and by general principles of equity) and (c) the execution and delivery of this Agreement by SiFi Networks and its performance hereunder and thereunder will not violate any law, rule, or regulation applicable to SiFi Networks.

10.11.3 OTHER THAN EXPLICIT REPRESENTATIONS AND

WARRANTIES MADE BY SIFI TO CITY, SIFI NETWORKS MAKES NO

REPRESENTATIONS OR WARRANTIES TO THE CITY OR ANY PERSON

WITH RESPECT TO THE SYSTEM (OR THE COMPONENTS THEREOF)

AND HEREBY DISCLAIMS ANY AND ALL EXPRESS, IMPLIED, OR

STATUTORY WARRANTIES, INCLUDING, WITHOUT LIMITATION, ANY

WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR

PURPOSE, AVAILABILITY, ERROR-FREE OR UNINTERRUPTED

OPERATION, AND ANY WARRANTIES ARISING FROM A COURSE OF
DEALING, COURSE OF PERFORMANCE, OR USAGE OF TRADE. TO THE

EXTENT THAT SIFI NETWORKS MAY NOT AS A MATTER OF

APPLICABLE LAW DISCLAIM ANY IMPLIED WARRANTY, THE SCOPE

AND DURATION OF SUCH WARRANTY WILL BE THE MINIMUM
PERMITTED UNDER SUCH LAW.
10 .12 Third Parties. Nothing contained in this Agreement shall create a contractual relationship with, or a cause of action in favor of, a third party against either SiFi Networks or the City.

10.13 No Partnership. Nothing in this Agreement shall be construed to create a partnership, joint venture or agency relationship between the City and SiFi Networks or any other relationship other than a contractual relationship as expressly set forth in this Agreement. Neither Party shall in any manner act or indicate to any third party that is acting as the agent of the other Party. SiFi Networks shall at all times remain an independent contractor. Neither Party shall control or direct the day-to-day affairs of the other Party, or their mode or method of performing their respective obligations hereunder.
10 .14 Headings. The headings and captions of this Agreement are solely for the convenience of the Parties and shall not be deemed to modify or vary any of the substantive terms thereof.

10.15 Construction. Each of the Parties acknowledge that each Party to this Agreement has been represented by counsel in connection with this Agreement. Legal or equitable principles that might require the construction of this Agreement or any provision hereof against the party drafting this Agreement shall not apply in any construction or interpretation of this Agreement and is expressly waived. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of

04/12/2022 Item No.14.
this Agreement. The words "hereof ', "herein" and "hereunder" and words of like import used in this Agreement will refer to this Agreement as a whole and not to any particular provision of this Agreement. References to Articles, Sections, and clauses are to Articles, Sections and clauses of this Agreement unless otherwise specified. Any singular term in this Agreement will be deemed to include the plural, and any plural term the singular. Whenever the words "include", "includes" or "including" are used in this Agreement, they will be deemed to be followed by the words "without limitation", whether or not they are in fact followed by those words or words of like import. "Writing", "written" and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in accordance with the terms hereof and thereof.

References to any Person include the successors and permitted assigns of that Person.

References from or through any date mean, unless otherwise specified, from and including or through and including, respectively.

10.16 Counterparts. This Agreement may be signed in any number of counterparts, each of which will be deemed an original, with the same effect as if the signatures were upon the same instrument. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission (including PDF) shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
10 .17 Further Assurances. Each Party agrees that it will execute and deliver such other documents and take such other action as may be reasonably requested by the other Party to effectuate the purposes and intention of this Agreement.

10.18 No Waiver. No provision of this Agreement may be waived unless such waiver is in writing and signed by the Party against whom the waiver is to be effective.

No failure or delay by a Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach.
[Signature page follows]

04/12/2022 Item No.14.

IN WITNESS WHEREOF, the Parties have caused this Fiber Networks Installation Agreement to be executed as of the day and year stated above.

CITY OF FOLSOM,
a municipal corporation
Dated: , 2022 - - - - -
City Manager
Approved as to form:

City Attorney

SIFI NETWORKS FOLSOM LLC,
a Delaware limited liability company
Dated: , 2022 - - - - -
By: _
Its: - - - - - - - - - - - -

04/12/2022 Item No.14.

EXHIBIT A

SPECIFICATIONS, SHELTERS, CABINETS

04/12/2022 Item No.14.

EXHIBIT SPECIFICATIONS-SHELTERS-CABINETS

FIBER CITY TYPICAL SPECIFICATIONS
2/9/2021
Name: Name:

Position: Position:

Date: Date:

Signature: Signature:

04/12/2022 Item No.14.

Table Of Con t en ts
Page Titl e
Cover
Index
Page #
1 2
@ Roadway with a Curb Return
® Roadway W / Curb & Gutter Variant A
@) Roadway W / Curb & Gutter Variant B
® Roadway W / Curb & Gutter Variant C
® Roadway Street Crossing
® 24x36x36 Standard Cham ber / Inlet Protecti on
® Typical Aggregati on Shelt er Plan/ Elevati on View
@ Typical Aggregati on Shelt er Plan Site Layout
0 Typical Cabinet Plan/ Elevati on View
Q) Typical Cabinet Elevati on View
® 30x48x36 Cabinet & Aggregati on Shelt er
CD FAE Details
3 4
5 6
7 8
9 10
11 12
13 14
15

04/12/2022 Item No.14.

ROADWAY WITH A CURB RETURN
R/W
SN./
----~:~:- -- ll fl,,,-RAN
~ l~1
l~:: I I I I
I I
' \
\ \\ \
\~ \ ~ '·,
"" ~ , I
~ ~ -- "? " ---= - - - - - - - I " - - - - - - - - - -
·---- - - - - - , I
I
✓ A.C. PAVEMENT
MICROTRENCH PATHWAY (TYP.)

CATCH BASIN (STORM DRAIN)

TREATED AS UTILITY CROSSING
SEE NOTE BELOW.

FASTPATCH 8400

WITH A COLOR

MATCHING

SAND FINISH
PLAN VIEW SCALE: NTS
TOTAL

REINSTATEMENT
COVER 8"
TRENCH DEPTH ~
12"! MAX ✓,
~:

1.25" (TYP) - 2" (MAX) _j I--

REINSTATEMENT MATERIAL -CTF

OR EQUIVALENT
1 "-2" SAND COVER

SECTION VIEW A- A
sf Networks

ROADWAY

WITH A CURB
RETURN
NO. REIISIONS BY DATE
2 APPRO',{I) REI.EASE RA 11/ 11/ 2020

STD DWG
NOT TO SCALE 11/ 11/ 2020
0 0

04/12/2022 Item No.14.

ROADWAY WITH CURB & GUTTER - VARIANT A
r-:- -7 r-i- -- - - - -,/' - - - - - -- 1-1, --:- 7
R/W ~ ;._j_j I VARIES- - ~ ! lLi• ~ R/W
1 , II II ; 1
S/W ~ , II I I II Yt:=' S/W I II ~ II I
EOP : 11 I I 11 : EOP
I : II I I II : I
FOG · // I \ \IVL' 1 FOC
I I 1 ·\ ' ~
I I \ I '
I I \ '. I \ \ '
/ I; I \ ,, \ ' / I; I \ ,, ' ' / I; \\ \ , "- I
' - ,/ 11 I \ \\ ',, " I
I,__ - - - - - - - - - -- /) / "'\ ',,_ - - - - - - - - - - --,I ----- - ,,- / / r ,,, - ------- ~------- . ------ _,.-,;/;/ :::_,~, ·-------------- -- -----z j============- -'""-':-::> / AC. PAVEMENT~ <::_-::::::-c:=cc==========l ~ $ MICROTRENCHPATHWAY(TYP.)7

PLAN VIEW
FASTPATCH 8400

W ITH A COLOR

MATCHING

SAND FINISH
FASTPATCH 8400

WITH A COLOR

MATCHING

SAND FINISH
TO AL

REINSTATEMENT
TRENCH DEPTH COVr R B"
12"MAX I

11.25" (TYP) · 2" (MAX) _j
CONCRETE CURB & GUTT ER 4 ..d . ., .
·.. ".c1
-~ /, / / / / / / / / ROADWAY /
/ / / / / /

REINSTATEMENT MATERIAL -CTF

OR EQUIVALENT
1"-2" SAND COVER
I-

SECTION VIEW A- A SECTION VIEW B- B
;gfi Networks

ROADWAY

WITH A CURB

RETURN VARIANT A
NO, RE\1S100S BY . DATE
2 APPROl{I) REl£ASE RA 11/ 11/ 2020

STD DRAWING
NOT TO SCALE 11/ 11/ 2020
0 ®

04/12/2022 Item No.14.

ROADWAY WITH CURB AND GUTTER - VARIANT B
R/W
S/W
2' I i- - VARIES- -
1 <i.
~ J PLAN VIEW MICROTRENCH PATHWAY (TYP.)
FASTPATCH 84D0

WITH A COLOR

MATCHING

SAND FINISH
..

SECTION VIEW A- A
I 2'
FASTPATCH 8400

W ITH A COLOR

MATCHING

SAND FINISH
R/W
S/W

SECTION VIEW B- B
~,fi Networks

ROADWAY

WITH A CURB
NO. RE\1SIONS BY DATE
2 APPRO\fll REl.£AS£ RA 11/ 11/ 2020

STD DWG
RETURN VARIANT B NOT TO SCALE 11/ 11/ 2020
0 @

04/12/2022 Item No.14.

ROADWAY WITH CURB AND GUTTER - VARIANT C
R/W
S/W
2' i-- - - VARIES- - --,
I
i
<i.

I
2' R/W
MICROTRENCH PATHWAY (TYP.)

PLAN VIEW
FASTPATCH 8400

WITH A COLOR

MATCHING

SAND FINISH
TO AL

REINSTATEMENT
TRENCH DEPTH COVt-ER B"
12"MI AX ,. ,
1"-2" SAND COVER
;,25" (TYP) - 2" (MAX)-l I-

REINSTATEMENT MATERIAL-CTF

OR EQUIVALENT

SECTION VIEW A- A
FASTPATCH 8400

WITH A COLOR

MATCHING

SAND FINISH

SECTION VIEW B- B
gfi Networks

ROADWAY

WITH A CURB
NO. REIISIONS BY DATE
2 APPRO',{I) REI.EASE RA 11/ 11/ 2020

STD DWG
RETURN VARIANT C NOT TO SCALE 11/ 20/ 2020
0 ®

04/12/2022 Item No.14.

ROADWAY CROSSIN G

12.5' MINIMUM RADIUS
/
.,,- A.G. PAVEMENT ~ ---- - - - - - - - - - - - - <'.,_ ~- - - - - ___;::,""'"-::: ..:::...:::::-_- - - - - - -i MICROTRENCH PATHWAY (TYP.)

PLAN VIEW
FASTPATCH 8400

WITH A COLOR

MATCHING

SANO FINISH
FASTPATCH 8400

WITH A COLOR

MATCHING

SAND FINISH
• ..

CONCRETE CURB & GUTTER 4 .,i -~ . ·-: ,.A

SECTION VIEW A- A SECTION VIEW B- B
=gfi Networks
NO. RE\1SIONS BY DATE
2 APPRO\{I) REl.£ASE RA 11/ 11/ 2020

ROADWAY
® CROSSING STD DWG
NOT TO SCALE 11/ 11/ 2020
0

04/12/2022 Item No.14.

STANDARD CHAMBER/INLET PROTECTION
FEATURES:
• 24" X 36" X 24" (open floor) (actual dimensions on drawing) • CHAMBER - SHIELD X COVER- Tier 22 Load Rated
(ANSI/ SCTE 77: 2013)
• (2) Cover locking Auger bolts, Hex (9/ 16") or Penta
(7/ 8") head with washer
• (2) Non-Seizing Fastening System, Field Replaceable
• (4) Embedded Composite Rack Support
• (2) Lifting slot equipped with stainless steel pin (slot is approximately 2 ¾"x¾")
• (2) Winterized Cable Drop slide (1 ¼" X 1 ¼")
• (1) Logo Disk
WEIGHT & SHIPPING:
• Cover Weight: 47 lbs
• Box Weight: 55 lbs
• Assembly Weight : 102 lbs
Covered Lift Pin
PERFORMANCE TESTING:
• ANSI/ SCTE 77: 2013 • TIER 22 Rated (33,750 lbs)
• AS3996 - Class C
• EN124 Class B125
• ASTM C1028-07 & AS-4586 (Slip Resistance)
• 10,000 Hour Xenon-Arc Exposure (No fiber-bloom)
• ASTM D635-06 (Flammability)
24"
[610]
Inside Dimensions
length Width Depth
34¾" 22¾" 21"
[873] [578] (533]

EXCESS SOXX MATERIAL

TO BE DRAVVN IN AND TIED OFF TO
2X2 WOODEN STAKE {TYP.)
CURB

OPENING MANHOLE
CURB

STORM GRATE

FIL TREXX SOXX
CURBSIDE OPTION "A" PLAN CURBSIDE OPTION "B" PLAN

INLET PROTECTION
gfi
NO. R£\lSIOOS BY DATE
STANDARD APf'ROl{I) REI.EASE RA 11/ 11/ 2020
® CHAMBER/INLET STD DWG
Networks PROTECTION NOT TO SCALE 11/ 11/ 2020
0

04/12/2022 Item No.14.

TYPICAL AGGREGATION SHELTER
12'$
..
·. _f ONCRETE FOUNDATIQN/~LAl;l .. <I . . 4
/ _('_ 4 .. "4 . • 4· . 4 .
4· ·4 ·.
' -' ' ' ' ' / ' / 'j ' / 'j ' / ' [QQ]
~- <41 ' ' ' ' ' ' ' ' / ' / ' / ' / ' / ' / ,' / / / / / / 0:: '' ' ' ' '
I 0 h / '-/ '- / '- / '- / '- / , '
f-
~ ;<<<<<,: ·4
" <{ .. 0:: UJ ' ' ' ' ' '
' I z / ' / ' / ' / '/ ' / ,' 10' X 20' SHELTER .. UJ / / / / / / 4 ('.) ' ' ' ' ' ' / / / / / :~ . -' " ' ' ' ' '
I UJ / / / / , i- ~ Cl) ,,, '/' ' !!:!
' t,. ' ' L
~
4 I 0 , ✓ ' / , ' ' , ' , ' '
~- -·
/ / / / / /
' ' ' ' ' ' ' '/ '/ '/ '/ '/ '~f / / / / / /
' ' ' ' ' ' ' ' ' ' ' 4
... 4
. ~ - ~--~ <I . 4 4 · ,,; .. .. "/ ·A 4 . ,. 4 4 ·
- . HVAC . . ·- HVAC

PLAN VIEW
WALL "A"
- - - - - - 19.8'- - - - - -<
I 'L~ ~ ~ ~ ~ CONCRETE FOUNDATION/SLAB WALL "B"
DIESEL

GENERATOR
DIESEL

GENERATO R
AGGREGATE WALL PANEL· ALL SIDES (TYP.)
WALL "C" WALL "D"
-gfi NO. RE\1S10NS BY DATE
2 APPRO\m RD.EASE RA 11/ 11/ 2020
® TYPICAL
AGGREGATION STD DWG SHELTER Networks NOT TO SCALE 11/ 11/ 2020 0

04/12/2022 Item No.14.

TYPICAL AGGREGATION SHELTER
~ TYPICAL 12' WIDE ACCESS ROAD
~~S REQUIRED BY JURISDICTION)
'
l
l
l
l
l
« [_5'- "
l . . ·•
l ;
l
l
l
l
l
l
l l l ·_,J
I
l ~ ,e ,c e,w~ ,
I I l l l l p o, XFRM I LJ .
f- - - - - - - - 22·- - - - - - - - -l

CONCRETE
PATHWAY <I
·-q . "1.

CRUSHED ROCK

SURFACING OR
GRASS
~ --
• ..
•
• . . . . I ~ -- .,._ . . . . , •
10' X 20'

AGGREGATION

SHELTER
HVAC
"
-- ,.
.,
. .
/ .
: . • M=======~ ==~ ~ ~ ' CONCRETE FciUNDATiON/SLAB . " ·. "· .. . ..

CRUSHED ROCK

SURFACING OR GRASS

SITE LAYOUT
=gfi Networks

TYPICAL

AGGREGATION

SHELTER
NO. RE\1SIONS BY DATE
2 APPROl{I) REl!ASE RA 11/ 11/ 2020

STD DWG
NOT TO SCALE 11/ 11/ 2020
0 ®

04/12/2022 Item No.14.

TYPICAL CABINET DETAILS
r - - - - - - - - - - - - - - - - -- - - - - - - - - - -- - - - - - -- - - -- - - - - - - - - - - - - 7 I SIDEWALK, i WIDTH VARIES BY LOCATION
0 I 30" 48" 36" X X I I CHAMBER
\_ ______ ~
1-------- I
I I
I
- I -
I
,- BOC~ - - - -- -
N
PRECAST CONCRETE PAD 48"x72"
NOKIA ALP-248
ELECTRONICS CABINET 30"x48"x36" 1

CHAMBER I
-- --- - --- -- - I
-----++--+-+--I I ---I- !
= ~ - I I ~ - - - t-- - ~ -- - - --- -- - - - ,
1-FOC/F . ------- ------4 ---1 :--;o;,;r-- - -- -9,-- 6-,,- --=--=-~----,_-=-~~--g' --6-,, - - - -- - - :

L M1~1~_uM ~~N-IM_uM _I

TOP VIEW BASE VIEW
4 "
12·--t-1- - -550·- - +-111·1
~ -- ;;:::=:::;::=======i
u~ ~,1
-=~ 1

J SIDE VIEW
11", 26"
ELEVATIONS!-10WSASEXAW 'LE
• 4"PAAKIBE/\UTYSTRIP
, TYPEB16'"CURBAl<DGUTTER

PANEL VIEW
:;gfi Networks

TYPICAL CABINJET

DETAILS
NO. RE"1SIONS BY DATE
2 APPROVED REl£ASE RA 11/ 11/ 2020

STD DWG
NOT TO SCALE 11/ 11/ 2020
0 CD

04/12/2022 Item No.14.

TYPICAL CABINET DETAILS
MICRO TRENCH ENTRY NOTE·
◄~ DIAMETER PENETRATION
9" DO\fvN FROM TOP OF CHAMBER
• s• JN FROM CORNER OF CHAMBER
NOKIA ALP-248

ELECTRONICS CABINET
PRECAST CONCRETE PAD 48"x72"
(E) GRADE

TO MICRO-TRENCH

MICRO-TRENCH ENTRY
36"MIN.
(TYP.)
4" CONDUIT SCH. 80 HDPE
POWER FEED CONDUIT (TYP.) (E) GRADE
36~MIN.
(TYP.)

TO MICRO-TRENCH

MICRO-TRENCH ENTRY
30"x48"x36"

CHAMBER
l POWER CONDUIT FOR POWER

UNDERGROUND POWER IN
CONDUIT. TO POINT OF

CONNECTION TO BE VERIFIED
WITH UTILITY CO.

ELEVATION VIEW
gfi Networks
NO. R£\ISIONS BY DAlE
APPRO\el REI.EASE: RA 11/ 11/ 2020
0 TYPICAL CABINET

DETAILS STD DWG
NOT TO SCALE 11/ 11/ 2020
0

04/12/2022 Item No.14.

CABINET & AGGREGATION SHELTER
FEATURES:
• 30" X 48" X 36" (open floor) (actual dimensions on drawins) • CHAMBER - SHIELD X Split COVER- Tier 22 Load
Rated (ANSI/SCTE 77: 2013)
• (4) Cover locking Auger bolts, Hex (9/16") or Penta
(7 /8") head with washer
• (4) Non-Seizing Fastening System, Field Replaceable
• (4) Embedded Composite Rack Support
• (1) Lifting slot equipped with stainless steel pin (slot is approximately 2 ¾"x¾")
• (4) Winterized Cable Drop slide (1 ¼" X 1 ¼")
• (1) Galvanized Center Beam
• (2) Logo Disk
WEIGHT & SHIPPING:
• Cover Weight: 50 lbs (Per Half)
• Box Weight: 129 lbs
• Assembly Weight : 229 lbs
PERFORMANCE TESTING:
• ANSI/SCTE 77: 2013 -TIER 22 Rated (33,750 lbs)
• AS3996 - Class C
• EN124 Class B125
• ASTM 0 028-07 & AS-4586 (Slip Resistance)
• 10,000 Hour Xenon-Arc Exposure (No fiber-bloom)
• ASTM D635-06 (Flammability)
Covered Lift Pin SHIELD X Split Cover
353/4"
[908)

CHAMBER
Inside Dimensions
Length Width Depth
46½" 28¾" 32 ¾"
(1180] [730] (832]
Anti-Slip Tread Pattern
f'::;;;;;~ E,4- _ _ Embedded Racking
(2 each side)
gfi
NO. RE'.1SIONS BY DAlE
2 APPROl,fl) REl.£ASE RA 11/ 11/ 2020
® CABINET &
AGGREGATION STD DWG SHELTER Networks NOT TO SCALE 11/ 11/ 2020 0

04/12/2022 Item No.14.

FAB DETAILS
Hardscape Lateral Typical With FAB Installed
At ROW Obstruction
lateral duct installation can either be Installed by
cutting a narrow micro trench from above, across
the gutter pan curb & sidewalk & cold Joint, or
boring from the street beneath the gutter pan, curb
& sidewalk. A neat 6"core cut at the edge of ROW
l 0"deep wlll allow FAB {Fiber Access Box) to be
Inst alled for ease of duct retrieval on service
installs. This core cut would allow the FAB to be
Installed neatly with minimum reinstatement and
would maintain the integrity and asphetlc look of
the sidewalk without the need to replace whole
concrete sidewalk sections.

Micro Trench
Curb Marker
FAS {Fiber Access BoM)
6" diameter core cut 10" deep with

5.4"dlameter pedestrian rated FAB (Fiber
Access Box) with slurry fill seal and
secured with cast iron bolted access c er
Commercial In Confidence NTS
ROW
t
,,

FAE AT ROW
Hardscape Lateral Typical With FAB Installed At Back Of Curb & Conduit Installed To ROW Obstruction
lateral duct is Installation can either be Installed by cutting a narrow micro trench from above, across the
gutter pan curb & sidewalk & cold Joint, or boring from the street beneath the gutter pan, curb. A neat 6"core
cut at the back of curb lO"deep will allow FAB (Fiber
Access Box) to be Installed for ease of duct retrieval on service Installs. To reach the ROW a slot cut would be
made to just below the concrete base. A small conduit
would then be instatled to the ROW from the FAB with
slow bend and cap for future use on drop Installs when
extending the lateral duct to the property through the
pre Installed conduit. This slot cut would be reinstated with and suitable flll In approval with DPW. This
method would allow the FAB and conduit to be
installed neatly with minimum reinstatement and
would maintain the Integrity and asphetlc look of the
sidewalk without the need to replace whole concrete
sidewalk sections.

Curb Marker
Micro Trench
FAB (Fiber Access Box)
6" diameter core cut 10" deep
with 5.4"dlameter pedestrian
rated FAB (Fiber Access Box)
with slurry fill seal and
secured with cast iron bolted
access cover
Commercial In Confidence
Conduit installed in 1"
slot cut across
sidewalk cold joint or
seam to just below
NTS
ROW
t I
I
I
f I & e 0. . ..,
~t 0. .
-S! &~J i~! "' . .., f ti l!
e j.i .. a I r~ : f 0 •
;1
~ Ill,
,,

FAE AT BOC
:,lfi Networks

FAJB DETAILS
NO. REIISIONS BY OAlE
APPROlm REI.EASE RA 11/ 11/ 2020

STD DWG
NOT TO SC A LE 1---
11 ..:...1-'
111
'--
2 -
02 -
0 _J
0

04/12/2022 Item No.14.

This page is intentionally left blank.

04/12/2022 Item No.14.

Folsom City Council
Staff Re ort
MEETING DATE: 4/12/2022
AGENDA SECTION: Old Business
SUBJECT: Consideration of Expenditure of Funds from the American Rescue Plan Act and Direction to Staff
FROM: Finance Department

RECOMMENDATION I CITY COUNCIL ACTION
The Finance Director respectfully recommends that the City Council direct staff to allocate the remaining $6,180,145 of available ARP A funds for expenditure under the allowable category of Provision of Government Services.

BACKGROUND I ISSUE
The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021. ARPA established the Coronavirus State and Local Fiscal Recovery Fund. The program is intended to ensure that governments have the resources needed to:
• Fight the pandemic and support families and businesses struggling with its public health and economic impacts,
• Maintain vital public services, even amid declines in revenue, and • Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity.

The City of Folsom's total allocation from the ARPA Coronavirus State and Local Recovery Fund is $8,375,645.
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On August 24, 2021, the City Council directed staff to appropriate $2,195,500 of the City's total ARP A allocation to the General Fund under the allowable use category Provision of Government Services. Expenditure of the appropriated funds commenced during the 2021-22 fiscal year.

POLICY/ RULE
Per sections 602(c)(l) and 603(c)(l) of the ARPA, funds may be used:
a) To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or to aid impacted industries such as tourism, travel, and hospitality.
b) To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers. c) For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and
d) To make necessary investments in water, sewer, or broadband infrastructure.

ANALYSIS
Within the eligible use categories stated above and outlined in the Fiscal Recovery Funds provisions of ARP A, state, local, and tribal governments have the flexibility to determine how best to use payments from the Fiscal Recovery Funds to meet the needs of their communities and populations.

In January 2022, the U.S. Department of the Treasury issued its final rule on the use of the Coronavirus State and Local Fiscal Recovery Funds. The final rule, which takes effect on April 1, 2022, delivers broader flexibility and greater simplicity to the program. Among other clarifications and changes, the final rule provides the features below:

Replacing Lost Public Sector Revenue
The final rule offers a standard allowance for revenue loss of up to $10 million, allowing recipients to select between a standard amount of revenue loss or complete a full revenue loss calculation. Recipients that select the standard allowance may use that amount - in many cases their full award - for government services, with streamlined reporting requirements.
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04/12/2022 Item No.15.

Public Health and Economic Impacts
In addition to programs and services, the final rule clarifies that recipients can use funds for capital expenditures that support an eligible COVID-19 public health or economic response. For example, recipients may build certain affordable housing, childcare facilities, schools, hospitals, and other projects consistent with final rule requirements.

In addition, the final rule provides an expanded set of households and communities that are presumed to be "impacted" and "disproportionately impacted" by the pandemic, thereby allowing recipients to provide responses to a broad set of households and entities without requiring additional analysis. Further, the final rule provides a broader set of uses available for these communities as part of COVID-19 public health and economic response, including making affordable housing, childcare, early learning, and services to address learning loss during the pandemic eligible in all impacted communities and making certain community development and neighborhood revitalization activities eligible for disproportionately impacted communities.

Further, the final rule allows for a broader set of uses to restore and support government employment, including hiring above a recipient's pre-pandemic baseline, providing funds to employees that experienced pay cuts or furloughs, avoiding layoffs, and providing retention incentives.

Premium Pay
The final rule delivers more streamlined options to provide premium pay, by broadening the share of eligible workers who can receive premium pay without a written justification while maintaining a focus on lower-income and frontline workers performing essential work.

Water, Sewer & Broadband Infrastructure
The final rule significantly broadens eligible broadband infrastructure investments to address challenges with broadband access, affordability, and reliability, and adds additional eligible water and sewer infrastructure investments, including a broader range of lead remediation and stormwater management projects.

To provide the most flexibility for use of the City's ARPA allocation, staff recommends appropriating the remaining funds under the allowable use category of Provision of Government Services (Replacing Lost Revenue).

As mentioned above, the final rule allows recipients to elect a "standard allowance" of up to $10 million to spend on government services through the period of performance.

Under this option, which is newly offered in the final rule, Treasury presumes that up to $10 million in revenue has been lost due to the public health emergency and recipients are permitted 3

04/12/2022 Item No.15.
to use that amount (not to exceed the award amount) to fund "government services." The standard allowance provides an estimate of revenue loss that is based on an extensive analysis of average revenue loss across states and localities, and offers a simple, convenient way to determine revenue loss, particularly for SLFRF's smallest recipients.

If the City Council desires to continue to use this category for the expenditure of the ARP A funds, the City would have considerable flexibility on what government services will be provided with the funding. This would allow for many needs that are expected to have to be passed up in the upcoming FY 2022-23 budget cycle to be reconsidered.

One notable restriction on the use of funds under the Provision of Government Services category is funds cannot be used to replenish reserves. The intention is that these funds be spent on current government services.

During the April 12, 2022, City Council meeting, staff will present a list ofr ecommended items to be funded with the remaining ARP A funds under the category of Provision of Government Services and ask for City Council feedback and direction.

FINANCIAL IMPACT
As of April 12, 2022, the City has received $4,187,823 of the total $8,375,645 allocation. $2,195,500 of the funding already received has been appropriated and added to the FY 2021- 22 operating budget in the General Fund and designated for certain government services. The remaining $6,180,145, if approved, would be allocated to the FY 2022-23 operating budget in the General Fund for certain government services.

The entire $8,375,645 allocation must be obligated by December 31, 2024, and fully spent by December 31, 2026.

ATTACHMENT

1. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds:

Overview of the Final Rule
Submitted,
\~
Stacey Tamagni, Finance Director/CFO
Office of Management and Budget
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04/12/2022 Item No.15.

Coronavirus State & Local
Fiscal Recovery Funds:

Overview of the Final Rule
January 2022

04/12/2022 Item No.15.
e U.S. DEPARTMENT OF THE TREASURY
The Overview of the Final Rule provides a summary of major provisions of the final rule for informational purposes and is intended as a brief, simplified user guide to the final rule provisions.

The descriptions provided in this document summarize key provisions of the final rule but are non-exhaustive, do not describe all terms and conditions associated with the use of SLFRF, and do not describe all requirements that may apply to this funding. Any SLFRF funds received are also subject to the terms and conditions of the agreement entered into by Treasury and the respective jurisdiction, which incorporate the provisions of the final rule and the guidance that implements this program.

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• U.S. DEPARTMENT OF THE TREASURY
Contents
Introduction 4
Overview of the Program 6
Replacing Lost Public Sector Revenue 9
Responding to Public Health and Economic Impacts of COVID-19 12 Responding to the Public Health Emergency 14
Responding to Negative Economic lmpacts 16
Assistance to Households 17
Assistance to Small Businesses 21
Assistance to Nonprofits 23
Aid to Impacted Industries 24
Public Sector Capacity 26
Public Safety, Public Health, and Human Services Staff 26 Government Employment and Rehiring Public Sector Staff 27 Effective Service Delivery 28
Capital Expenditures 30
Framework for Eligible Uses Beyond those Enumerated 32
Premium Pay 35
Water & Sewer Infrastructure 37
Broadband Infrastructure 39
Restrictions on Use 41
Program Administration 43
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• U.S. DEPARTMENT OF THE TREASURY
Introduction
The Coronavirus State and Local Fiscal Recovery Funds (SLFRF), a part of the American Rescue Plan, delivers $350 billion to state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency. The program ensures that governments have the resources needed to:
• Fight the pandemic and support families and businesses struggling with its public health and economic impacts,
• Maintain vital public services, even amid declines in revenue, and • Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity.

EARLY PROGRAM IMPLEMENTATION
In May 2021, Treasury published the Interim final rule (IFR) describing eligible and ineligible uses of funds (as well as other program provisions), sought feedback from the public on these program rules, and began to distribute funds. The IFR went immediately into effect in May, and since then, governments have used SLFRF funds to meet their immediate pandemic response needs and begin building a strong and equitable recovery, such as through providing vaccine incentives, development of affordable housing, and construction of infrastructure to deliver safe and reliable water.

As governments began to deploy this funding in their communities, Treasury carefully considered the feedback provided through its public comment process and other forums. Treasury received over 1,500 comments, participated in hundreds of meetings, and received correspondence from a wide range of governments and other stakeholders.

KEY CHANGES AND CLARIFICATIONS IN THE FINAL RULE
The final rule delivers broader flexibility and greater simplicity in the program, responsive to feedback in the comment process. Among other clarifications and changes, the final rule provides the features below.

Replacing Lost Public Sector Revenue
The final rule offers a standard allowance for revenue loss of up to $10 million, allowing recipients to select between a standard amount of revenue loss or complete a full revenue loss calculation.

Recipients that select the standard allowance may use that amount - in many cases their full award - for government services, with streamlined reporting requirements.

Public Health and Economic Impacts
In addition to programs and services, the final rule clarifies that recipients can use funds for capital expenditures that support an eligible COVID-19 public health or economic response. For example, recipients may build certain affordable housing, childcare facilities, schools, hospitals, and other projects consistent with final rule requirements.

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A V U.S. DEPARTMENT OF THE TREASURY
In addition, the final rule provides an expanded set of households and communities that are presumed to be "impacted" and "disproportionately impacted" by the pandemic, thereby allowing recipients to provide responses to a broad set of households and entities without requiring additional analysis.

Further, the final rule provides a broader set of uses available for these communities as part of COVID- 19 public health and economic response, including making affordable housing, childcare, early learning, and services to address learning loss during the pandemic eligible in all impacted communities and making certain community development and neighborhood revitalization activities eligible for disproportionately impacted communities.

Further, the final rule allows for a broader set of uses to restore and support government employment, including hiring above a recipient's pre-pandemic baseline, providing funds to employees that experienced pay cuts or furloughs, avoiding layoffs, and providing retention incentives.

Premium Pay
The final rule delivers more streamlined options to provide premium pay, by broadening the share of eligible workers who can receive premium pay without a writt en justification while maintaining a focus on lower-income and frontline workers performing essential work.

Water, Sewer & Broadband Infrastructure
The final rule significantly broadens eligible broadband infrastructure investments to address challenges with broadband access, affordability, and reliability, and adds additional eligible water and sewer infrastructure investments, including a broader range of lead remediation and stormwater management projects.

FINAL RULE EFFECTIVE DATE
The final rule takes effect on April 1, 2022. Until that time, the interim final rule remains in effect; funds used consistently with the IFR while it is in effect are in compliance with the SLFRF program.

However, recipients can choose to take advantage of the final rule's flexibilities and simplifications now, even ahead of the effective date. Treasury will not take action to enforce the interim final rule to the extent that a use of funds is consistent with the terms of the final rule, regardless of when the SLFRF funds were used. Recipients may consult the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule, which can be found on Treasury's website, for more information on compliance with the interim final rule and the final rule.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Overview of the Program
The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program provides substantial flexibility for each jurisdiction to meet local needs within the four separate eligible use categories. This Overview oft he Final Rule addresses the four eligible use categories ordered from the broadest and most flexible to the most specific.

Recipients may use SLFRF funds to:

Replace lost public sector revenue, using this funding to provide government services up to the amount of revenue loss due to the pandemic.

Recipients may determine their revenue loss by choosing between two options:

A standard allowance of up to $10 million in aggregate, not to exceed their award amount, during the program;
Calculating their jurisdiction's specific revenue loss each year using Treasury's formula, which compares actual revenue to a counterfactual trend.

Recipients may use funds up to the amount of revenue loss for government services; generally, services traditionally provided by recipient governments are government services, unless Treasury has stated otherwise.

Support the COVID-19 public health and economic response by addressing COVID-19 and its impact on public health as well as addressing economic harms to households, small businesses, nonprofits, impacted industries, and the public sector. • Recipients can use funds for programs, services, or capital expenditures that respond to the public health and negative economic impacts of the pandemic.

To provide simple and clear eligible uses of funds, Treasury provides a list of enumerated uses that recipients can provide to households, populations, or classes (i.e., groups) that experienced pandemic impacts.
• Public health eligible uses include COVID-19 mitigation and prevention, medical expenses, behavioral healthcare, and preventing and responding to violence.

Eligible uses to respond to negative economic impacts are organized by the type of beneficiary: assistance to households, small businesses, and nonprofits.

Each category includes assistance for "impacted" and "disproportionately impacted" classes: impacted classes experienced the general, broad-based impacts of the pandemic, while disproportionately impacted classes faced meaningfully more severe impacts, often due to preexisting disparities.

To simplify administration, the final rule presumes that some populations and groups were impacted or disproportionately impacted and are eligible for responsive services.

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• U.S. DEPARTMENT OF THE TREASURY
Eligible uses for assistance to impacted households include aid for re­ employment, job training, food, rent, mortgages, utilities, affordable housing development, childcare, early education, addressing learning loss, and many more uses.
• Eligible uses for assistance to impacted small businesses or nonprofits include loans or grants to mitigate financial hardship, technical assistance for small businesses, and many more uses.

Recipients can also provide assistance to impacted industries like travel, tourism, and hospitality that faced substantial pandemic impacts, or address impacts to the public sector, for example by re-hiring public sector workers cut during the crisis. • Recipients providing funds for enumerated uses to populations and groups that Treasury has presumed eligible are clearly operating consistently with the final rule.

Recipients can also identify (1) other populations or groups, beyond those presumed eligible, that experienced pandemic impacts or disproportionate impacts and (2) other programs, services, or capital expenditures, beyond those enumerated, to respond to those impacts.

Provide premium pay for eligible workers performing essential work, offering additional support to those who have and will bear the greatest health risks because of their service in critical sectors.

Recipients may provide premium pay to eligible workers - generally those working in­ person in key economic sectors - who are below a wage threshold or non-exempt from the Fair Labor Standards Act overtime provisions, or if the recipient submits justification that the premium pay is responsive to workers performing essential work.

Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, to support vital wastewater and stormwater infrastructure, and to expand affordable access to broadband internet.

Recipients may fund a broad range of water and sewer projects, including those eligible under the EPA's Clean Water State Revolving Fund, EPA's Drinking Water State Revolving Fund, and certain additional projects, including a wide set of lead remediation, stormwater infrastructure, and aid for private wells and septic units.

Recipients may fund high-speed broadband infrastructure in areas of need that the recipient identifies, such as areas without access to adequate speeds, affordable options, or where connections are inconsistent or unreliable; completed projects must participate in a low-income subsidy program.

While recipients have considerable flexibility to use funds to address the diverse needs of their communities, some restrictions on use apply across all eligible use categories. These include:
• For states and territories: No offsets of a reduction in net tax revenue resulting from a change in state or territory law.

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• U.S. DEPARTMENT OF THE TREASURY
• For all recipients except for Tribal governments: No extraordinary contributions to a pension fund for the purpose of reducing an accrued, unfunded liability. • For all recipients: No payments for debt service and replenishments of rainy day funds; no satisfaction of sett lements and judgments; no uses that contravene or violate the American Rescue Plan Act, Uniform Guidance conflicts of interest requirements, and other federal, state, and local laws and regulations.

Under the SLFRF program, funds must be used for costs incurred on or after March 3, 2021. Further, funds must be obligated by December 31, 2024, and expended by December 31, 2026. This time period, during which recipients can expend SLFRF funds, is the "period of performance." In addition to SLFRF, the American Rescue Plan includes other sources of funding for state and local governments, including the Coronavirus Capital Projects Fund to fund critical capital investments including broadband infrastructure; the Homeowner Assistance Fund to provide relief for our country's most vulnerable homeowners; the Emergency Rental Assistance Program to assist households that are unable to pay rent or utilities; and the State Small Business Credit Initiative to fund small business credit expansion initiatives. Eligible recipients are encouraged to visit the Treasury website for more information.

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• U.S. DEPARTMENT OF THE TREASURY
Replacing Lost Public Sector Revenue
The Coronavirus State and Local Fiscal Recovery Funds provide needed fiscal relief for recipients that have experienced revenue loss due to the onset of the COVID-19 public health emergency. Specifically, SLFRF funding may be used to pay for "government services" in an amount equal to the revenue loss experienced by the recipient due to the COVID-19 public health emergency.

Government services generally include any service traditionally provided by a government, including construction of roads and other infrastructure, provision of public safety and other services, and health and educational services. Funds spent under government services are subject to streamlined reporting and compliance requirements.

In order to use funds under government services, recipients should first determine revenue loss. They may, then, spend up to that amount on general government services.

DETERMINING REVENUE LOSS
Recipients have two options for how to determine their amount of revenue loss. Recipients must choose one of the two options and cannot switch between these approaches after an election is made.

1. Recipients may elect a "standard allowance" of $10 million to spend on government services through the period of performance.

Under this option, which is newly offered in the final rule Treasury presumes that up to $10 million in revenue has been lost due to the public health emergency and recipients are permitt ed to use that amount (not to exceed the award amount) to fund "government services." The standard allowance provides an estimate of revenue loss that is based on an extensive analysis of average revenue loss across states and localities, and offers a simple, convenient way to determine revenue loss, particularly for SLFRF's smallest recipients.

All recipients may elect to use this standard allowance instead of calculating lost revenue using the formula below, including those with total allocations of $10 million or less. Electing the standard allowance does not increase or decrease a recipient's total allocation.

2. Recipients may calculate their actual revenue loss according to the formula articulated in the final rule.

Under this option, recipients calculate revenue loss at four distinct points in time, either at the end of each calendar year (e.g., December 31 for years 2020, 2021, 2022, and 2023) or the end of each fiscal year of the recipient. Under the flexibility provided in the final rule, recipients can choose whether to use calendar or fiscal year dates but must be consistent throughout the period of performance. Treasury has also provided several adjustments to the definition of general revenue in the final rule.

To calculate revenue loss at each of these dates, recipients must follow a four-step process:

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• U.S. DEPARTMENT OF THE TREASURY
a. Calculate revenues collected in the most recent full fiscal year prior to the public health emergency (i.e., last full fiscal year before January 27, 2020), called the base year revenue.
b. Estimate counter/actual revenue, which is equal to the following formula, where n is the number of months elapsed since the end of the base year to the calculation date:
n
base year revenue x (1 + growth adjustment'[ii
The growth adjustment is the greater of either a standard growth rate- 5.2 percent- or the recipient's average annual revenue growth in the last full three fiscal years prior to the COVID-19 public health emergency.
c. Identify actual revenue, which equals revenues collected over the twelve months immediately preceding the calculation date.

Under the final rule, recipients must adjust actual revenue totals for the effect of tax cuts and tax increases that are adopted after the date of adoption of the final rule (January 6, 2022). Specifically, the estimated fiscal impact of tax cuts and tax increases adopted after January 6, 2022, must be added or subtracted to the calculation of actual revenue for purposes of calculation dates that occur on or after April 1, 2022.

Recipients may subtract from their calculation of actual revenue the effect of tax increases enacted prior to the adoption of the final rule. Note that recipients that elect to remove the effect of tax increases enacted before the adoption of the final rule must also remove the effect of tax decreases enacted before the adoption of the final rule, such that they are accurately removing the effect of tax policy changes on revenue. d. Revenue loss for the calculation date is equal to counter/actual revenue minus actual revenue (adjusted for tax changes) for the twelve-month period. If actual revenue exceeds counterfactual revenue, the loss is set to zero for that twelve-month period.

Revenue loss for the period of performance is the sum of the revenue loss on for each calculation date.

The supplementary information in the final rule provides an example of this calculation, which recipients may find helpful, in the Revenue Loss section.

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• U.S. DEPARTMENT OF THE TREASURY

SPENDING ON GOVERNMENT SERVICES
Recipients can use SLFRF funds on government services up to the revenue loss amount, whether that be the standard allowance amount or the amount calculated using the above approach. Government services generally include any service traditionally provided by a government, unless Treasury has stated otherwise. Here are some common examples, although this list is not exhaustive:
✓ Construction of schools and hospitals
✓ Road building and maintenance, and
other infrastructure
✓ Health services
✓ General government administration,
staff, and administrative facilities
✓ Environmental remediation
✓ Provision of police, fire, and other public
safety services (including purchase of
fire trucks and police vehicles)
Government services is the most flexible eligible use category under the SLFRF program, and funds are subject to streamlined reporting and compliance requirements. Recipients should be mindful that certain restrictions, which are detailed further in the Restrictions on Use section and apply to all uses of funds, apply to government services as well.

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• U.S. DEPARTMENT OF THE TREASURY
Responding to Public Health and Economic Impacts of COVID-19 The Coronavirus State and Local Fiscal Recovery Funds provide resources for governments to meet the public health and economic needs of those impacted by the pandemic in their communities, as well as address longstanding health and economic disparities, which amplified the impact of the pandemic in disproportionately impacted communities, resulting in more severe pandemic impacts.

The eligible use category to respond to public health and negative economic impacts is organized around the types of assistance a recipient may provide and includes several sub-categories:
• public health,
• assistance to households,
• assistance to small businesses,
• assistance to nonprofits,
• aid to impacted industries, and
• public sector capacity.

In general, to identify eligible uses of funds in this category, recipients should (1) identify a COVID-19 public health or economic impact on an individual or class (i.e., a group) and (2) design a program that responds to that impact. Responses should be related and reasonably proportional to the harm identified and reasonably designed to benefit those impacted.

To provide simple, clear eligible uses of funds that meet this standard, Treasury provides a non­ exhaustive list of enumerated uses that respond to pandemic impacts. Treasury also presumes that some populations experienced pandemic impacts and are eligible for responsive services. In other words, recipients providing enumerated uses of funds to populations presumed eligible are clearly operating consistently with the final rule.1
Recipients also have broad flexibility to (1) identify and respond to other pandemic impacts and (2) serve other populations that experienced pandemic impacts, beyond the enumerated uses and presumed eligible populations. Recipients can also identify groups or "classes" of beneficiaries that experienced pandemic impacts and provide services to those classes. 1 However, please note that use of funds for enumerated uses may not be grossly disproportionate to the harm. Further, recipients should consult the Capital Expenditures section for more information about pursuing a capital expenditure; please note that enumerated capital expenditures are not presumed to be reasonably proportional responses to an identified harm except as provided in the Capital Expenditures section.

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• U.S. DEPARTMENT OF THE TREASURY
Step 1. Identify COVID-19 public health or 2. Design a response that addresses or economic impact responds to the impact
Analysis Can identify impact to a specific • Types of responses can include a • household, business or nonprofit or program, service, or capital to a class of households, businesses, expenditure
or nonprofits (i.e., group) • Response should be related and • Can also identify disproportionate reasonably proportional to the harm impacts, or more severe impacts, to • Response should also be reasonably a specific beneficiary or to a class designed to benefit impacted individual or class
Simplifying Final Rule presumes certain • Final Rule provides non-exhaustive • Presumptions populations and classes are impacted list of enumerated eligible uses that and disproportionately impacted respond to pandemic impacts and disproportionate impacts
To assess eligibility of uses off unds, recipients should first determine the sub-category where their use off unds may fit (e.g., public health, assistance to households, assistance to small businesses), based on the entity that experienced the health or economic impact.2 Then, recipients should refer to the relevant
section for more details on each sub-category.

While the same overall eligibility standard applies to all uses of funds to respond to the public health and negative economic impacts oft he pandemic, each sub-category has specific nuances on its application. In addition:
• Recipients interested in using funds for capital expenditures (i.e., investments in property, facilities, or equipment) should review the Capital Expenditures section in addition to the eligible use sub-category.
• Recipients interested in other uses of funds, beyond the enumerated uses, should refer to the section on "Framework for Eligible Uses Beyond Those Enumerated." 2 For example, a recipient interested in providing aid to unemployed individuals is addressing a negative economic impact experienced by a household and should refer to the section on assistance to households. Recipients should also be aware of the difference between "beneficiaries" and "sub-recipients." Beneficiaries are households, small businesses, or nonprofits that can receive assistance based on impacts of the pandemic that they experienced. On the other hand, sub-recipients are organizations that carry out eligible uses on behalf of a government, often through grants or contracts. Sub-recipients do not need to have experienced a negative economic impact of the pandemic; rather, they are providing services to beneficiaries that experienced an impact.

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• U.S. DEPARTMENT OF THE TREASURY

RESPONDING TO THE PUBLIC HEALTH EMERGENCY
While the country has made tremendous progress in the fight against COVID-19, including a historic vaccination campaign, the disease still poses a grave threat to Americans' health and the economy.

Providing state, local, and Tribal governments the resources needed to fight the COVID-19 pandemic is a core goal of the Coronavirus State and Local Fiscal Recovery Funds, as well as addressing the other ways that the pandemic has impacted public health. Treasury has identified several public health impacts of the pandemic and enumerated uses of funds to respond to impacted populations.

COVID-19 mitigation and prevention. The pandemic has broadly impacted Americans and recipients can provide services to prevent and mitigate COVID-19 to the general public or to small businesses, nonprofits, and impacted industries in general. Enumerated eligible uses include:
✓ Vaccination programs, including vaccine
incentives and vaccine sites
✓ Testing programs, equipment and sites
✓ Monitoring, contact tracing & public
health surveillance (e.g., monitoring for
variants)
✓ Public communication efforts
✓ Public health data systems
✓ COVID-19 prevention and treatment
equipment, such as ventilators and
ambulances
✓ Medical and PPE/ protective supplies
✓ Support for isolation or quarantine
✓ Ventilation system installation and
improvement
✓ Technical assistance on mitigation of
COVID-19 threats to public health and
safety
✓ Transportation to reach vaccination or
testing sites, or other prevention and
mitigation services for vulnerable
populations
✓ Support for prevention, mitigation, or
other services in congregate living
facilities, public facilities, and schools
✓ Support for prevention and mitigation
strategies in small businesses, nonprofits,
and impacted industries
✓ Medical facilities generally dedicated to
COVID-19 treatment and mitigation (e.g.,
ICUs, emergency rooms)
✓ Temporary medical facilities and other
measures to increase COVID-19 treatment
capacity
✓ Emergency operations centers &
emergency response equipment (e.g.,
emergency response radio systems)
✓ Public telemedicine capabilities for COVID-
19 related treatment
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• U.S. DEPARTMENT OF THE TREASURY
Medical expenses. Funds may be used for expenses to households, medical providers, or others that incurred medical costs due to the pandemic, including:
✓ Unreimbursed expenses for medical care
for COVID-19 testing or treatment, such
as uncompensated care costs for
medical providers or out-of-pocket costs
for individuals
✓ Paid family and medical leave for public
employees to enable compliance with
COVID-19 public health precautions
✓ Emergency medical response expenses
✓ Treatment of long-term symptoms or effects
of COVID-19
Behavioral health care, such as mental health treatment, substance use treatment, and other behavioral health services. Treasury recognizes that the pandemic has broadly impacted Americans' behavioral health and recipients can provide these services to the general public to respond.

Enumerated eligible uses include:
✓ Prevention, outpatient treatment, ✓ Support for equitable access to reduce inpatient treatment, crisis care, disparities in access to high-quality diversion programs, outreach to treatment
individuals not yet engaged in ✓ Peer support groups, costs for residence in treatment, harm reduction & long-term supportive housing or recovery housing, and recovery support the 988 National Suicide Prevention Lifeline ✓ Enhanced behavioral health services in or other hotline services schools ✓ Expansion of access to evidence-based
✓ Services for pregnant women or infants services for opioid use disorder prevention, born with neonatal abstinence treatment, harm reduction, and recovery syndrome ✓ Behavioral health facilities & equipment
Preventing and responding to violence. Recognizing that violence - and especially gun violence - has increased in some communities due to the pandemic, recipients may use funds to respond in these communities through:
✓ Referrals to trauma recovery services for
victims of crime
✓ Community violence intervention
programs, including:
• Evidence-based practices like
focused deterrence, with
wraparound services such as
behavioral therapy, trauma
recovery, job training, education,
housing and relocation services, and
financial assistance
✓ In communities experiencing increased
gun violence due to the pandemic:
• Law enforcement officers focused
on advancing community policing
• Enforcement efforts to reduce gun
violence, including prosecution
• Technology & equipment to support
law enforcement response
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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY

RESPONDING TO NEGATIVE ECONOM IC IM PACTS
The pandemic caused severe economic damage and, while the economy is on track to a strong recovery, much work remains to continue building a robust, resilient, and equitable economy in the wake of the crisis and to ensure that the benefits of this recovery reach all Americans. While the pandemic impacted millions of American households and businesses, some of its most severe impacts fell on low-income and underserved communities, where pre-existing disparities amplified the impact of the pandemic and where the most work remains to reach a full recovery.

The final rule recognizes that the pandemic caused broad-based impacts that affected many communities, households, and small businesses across the country; for example, many workers faced unemployment and many small businesses saw declines in revenue. The final rule describes these as "impacted" households, communities, small businesses, and nonprofits.

At the same time, the pandemic caused disproportionate impacts, or more severe impacts, in certain communities. For example, low-income and underserved communities have faced more severe health and economic outcomes like higher rates of COVID-19 mortality and unemployment, often because pre­ existing disparities exacerbated the impact of the pandemic. The final rule describes these as "disproportionately impacted" households, communities, small businesses, and nonprofits.

To simplify administration of the program, the final rule presumes that certain populations were "impacted" and "disproportionately impacted" by the pandemic; these populations are presumed to be eligible for services that respond to the impact they experienced. The final rule also enumerates a non­ exhaustive list of eligible uses that are recognized as responsive to the impacts or disproportionate impacts of COVID-19. Recipients providing enumerated uses to populations presumed eligible are clearly operating consistently with the final rule.

As discussed further in the section Framework for Eligible Uses Beyond Those Enumerated, recipients can also identify other pandemic impacts, impacted or disproportionately impacted populations or classes, and responses.

However, note that the final rule maintains that general infrastructure projects, including roads, streets, and surface transportation infrastructure, would generally not be eligible under this eligible use category, unless the project responded to a specific pandemic public health need or a specific negative economic impact. Similarly, general economic development or workforce development - activities that do not respond to negative economic impacts of the pandemic but rather seek to more generally enhance the jurisdiction's business climate - would generally not be eligible under this eligible use category.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Assistance to Households
Impacted Households and Communities
Treasury presumes the following households and communities are impacted by the pandemic:
✓ Low- or-moderate income households or
communities
✓ Households that experienced
unemployment
✓ Households that experienced increased
food or housing insecurity
✓ Households that qualify for the Children's
Health Insurance Program, Childcare
Subsidies through the Child Care
Development Fund (CCDF) Program, or
Medicaid
✓ When providing affordable housing programs:
households that qualify for the National Housing
Trust Fund and Home Investment Partnerships
Program
✓ When providing services to address lost
instructional time in K-12 schools: any student
that lost access to in-person instruction for a
significant period of time
Low- or moderate-income households and communities are those with (i) income at or below 300 percent of the Federal Poverty Guidelines for the size of the household based on the most recently published poverty guidelines or (ii) income at or below 65 percent of the area median income for the county and size of household based on the most recently published data. For the vast majority of communities, the Federal Poverty Guidelines are higher than the area's median income and using the Federal Poverty Guidelines would result in more households and communities being presumed eligible.

Treasury has provided an easy-to-use spreadsheet with Federal Poverty Guidelines and area median income levels on its website.

Recipients can measure income for a specific household or the median income for the community, depending on whether the response they plan to provide serves specific households or the general community. The income thresholds vary by household size; recipients should generally use income thresholds for the appropriate household size but can use a default household size of three when easier for administration or when measuring income for a general community.

The income limit for 300 percent of the Federal Poverty Guidelines for a household of three is $65,880 per year.3 In other words, recipients can always presume that a household earning below this level, or a community with median income below this level, is impacted by the pandemic and eligible for services to respond. Additionally, by following the steps detailed in the section Framework for Eligible Uses Beyond Those Enumerated, recipients may designate additional households as impacted or disproportionately impacted beyond these presumptions, and may also pursue projects not listed below in response to these impacts consistent with Treasury's standards. 3 For recipients in Alaska, the income limit for 300 percent of the Federal Poverty Guidelines for a household of three is $82,350 per year. For recipients in Hawaii, the income limit for 300 percent of the Federal Poverty Guidelines for a household of three is $75,780 per year.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Treasury recognizes the enumerated projects below, which have been expanded under the final rule, as eligible to respond to impacts of the pandemic on households and communities:
✓ Food assistance (e.g., child nutrition ✓ Burials, home repair & home weatherization programs, including school meals) & food ✓ Programs, devices & equipment for internet banks access and digital literacy, including subsidies
✓ Emergency housing assistance: rental for costs of access assistance, mortgage assistance, utility ✓ Cash assistance assistance, assistance paying delinquent ✓ Paid sick, medical, and family leave programs property taxes, counseling and legal aid to ✓ Assistance in accessing and applying for prevent eviction and homelessness & public benefits or services emergency programs or services for homeless ✓ Childcare and early learning services, home individuals, including temporary residences for people experiencing homelessness visiting programs, services for child welfare- ✓ Health insurance coverage expansion involved families and foster youth & childcare facilities
✓ Benefits for surviving family members of ✓ Assistance to address the impact of learning individuals who have died from COVID-19 loss for K-12 students (e.g., high-quality ✓ Assistance to individuals who want and are tutoring, differentiated instruction) available for work, including job training, ✓ Programs or services to support long-term public jobs programs and fairs, support for housing security: including development of childcare and transportation to and from a affordable housing and permanent jobsite or interview, incentives for newly- supportive housing employed workers, subsidized employment, ✓ Certain contributions to an Unemployment grants to hire underserved workers, assistance to unemployed individuals to start Insurance Trust Fund4 small businesses & development of job and
workforce training centers
✓ Financial services for the unbanked and
underbanked
4 Recipients may only use SLFRF funds for contributions to unemployment insurance trust funds and repayment of the principal amount due on advances received under Title XII of the Social Security Act up to an amount equal to (i) the difference between the balance in the recipient's unemployment insurance trust fund as of January 27, 2020 and the balance of such account as of May 17, 2021, plus (ii) the principal amount outstanding as of May 17, 2021 on any advances received under Title XII of the Social Security Act between January 27, 2020 and May 17, 2021. Further, recipients may use SLFRF funds for the payment of any interest due on such Title XII advances. Additionally, a recipient that deposits SLFRF funds into its unemployment insurance trust fund to fully restore the pre-pandemic balance may not draw down that balance and deposit more SLFRF funds, back up to the pre-pandemic balance. Recipients that deposit SLFRF funds into an unemployment insurance trust fund, or use SLFRF funds to repay principal on Title XII advances, may not take action to reduce benefits available to unemployed workers by changing the computation method governing regular unemployment compensation in a way that results in a reduction of average weekly benefit amounts or the number of weeks of benefits payable (i.e., maximum benefit entitlement).

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Disproportionately Impacted Households and Communities
Treasury presumes the following households and communities are disproportionately impacted by the pandemic:
✓ Low -income households and communities
✓ Households residing in Qualified Census
Tracts
✓ Households that qualify for certain federal
benefits5
Low-income households and communities are those with (i) income at or below 185 percent of the Federal Poverty Guidelines for the size of its household based on the most recently published poverty guidelines or (ii) income at or below 40 percent of area median income for its county and size of household based on the most recently published data. For the vast majority of communities, the Federal Poverty Guidelines level is higher than the area median income level and using this level would result in more households and communities being presumed eligible. Treasury has provided an easy-to-use spreadsheet with Federal Poverty Guidelines and area median income levels on its website. ✓ Households receiving services provided by
Tribal governments
✓ Households residing in the U.S. territories or
receiving services from these governments
Recipients can measure income for a specific household or the median income for the community, depending on whether the service they plan to provide serves specific households or the general community. The income thresholds vary by household size; recipients should generally use income thresholds for the appropriate household size but can use a default household size of three when easier for administration or when measuring income for a general community.

The income limit for 185 percent of the Federal Poverty Guidelines for a household of three is $40,626 per year.6 In other words, recipients can always presume that a household earning below this level, or a community with median income below this level, is disproportionately impacted by the pandemic and eligible for services to respond.
5 These programs are Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Free- and Reduced-Price Lunch (NSLP) and/or School Breakfast (SBP) programs, Medicare Part D Low-Income Subsidies, Supplemental Security Income (SSI), Head Start and/or Early Head Start, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Section 8 Vouchers, Low-Income Home Energy Assistance Program (LIHEAP), and Pell Grants. For services to address educational disparities, Treasury will recognize Title I eligible schools as disproportionately impacted and responsive services that support the school generally or support the whole school as eligible. 6 For recipients in Alaska, the income limit for 185 percent of the Federal Poverty Guidelines for a household of three is $50,783 per year. For recipients in Hawaii, the income limit for 185 percent of the Federal Poverty Guidelines for a household of three is $46,731 per year
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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Treasury recognizes the enumerated projects below, which have been expanded under the final rule, as eligible to respond to disproportionate impacts of the pandemic on households and communities:
✓ Pay for community health workers to help
households access health & social services
✓ Remediation of lead paint or other lead
hazards
✓ Primary care clinics, hospitals, integration of
health services into other settings, and other
investments in medical equipment & facilities
designed to address health disparities
✓ Housing vouchers & assistance relocating to
neighborhoods with higher economic
opportunity
✓ Investments in neighborhoods to promote
improved health outcomes
✓ Improvements to vacant and abandoned
properties, including rehabilitation or
maintenance, renovation, removal and
remediation of environmental contaminants,
demolition or deconstruction, greening/vacant lot
cleanup & conversion to affordable housing7
✓ Services to address educational disparities,
including assistance to high-poverty school
districts & educational and evidence-based
services to address student academic, social,
emotional, and mental health needs
✓ Schools and other educational equipment &
facilities
✓ Responses available to respond to impacts of the
pandemic on households and communities
(including those listed on page 18)
7 Please see the final rule for further details and conditions applicable to this eligible use. This includes Treasury's presumption that demolition of vacant or abandoned residential properties that results in a net reduction in occupiable housing units for low- and moderate-income individuals in an area where the availability of such housing is lower than the need for such housing is ineligible for support with SLFRF funds.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Assistance to Small Businesses
Small businesses have faced widespread challenges due to the pandemic, including periods of shutdown, declines in revenue, or increased costs. The final rule provides many tools for recipients to respond to the impacts of the pandemic on small businesses, or disproportionate impacts on businesses where pre-existing disparities like lack of access to capital compounded the pandemic's effects.

Small businesses eligible for assistance are those that experienced negative economic impacts or disproportionate impacts of the pandemic and meet the definition of "small business," specifically:

1. Have no more than 500 employees, or if applicable, the size standard in number of employees established by the Administrator of the Small Business Administration for the industry in which the business concern or organization operates, and

2. Are a small business concern as defined in section 3 of the Small Business Act8 (which includes, among other requirements, that the business is independently owned and operated and is not dominant in its field of operation).

Impacted Small Businesses
Recipients can identify small businesses impacted by the pandemic, and measures to respond, in many ways; for example, recipients could consider:
✓ Decreased revenue or gross receipts
✓ Financial insecurity
✓ Increased costs
✓ Capacity to weather financial hardship
✓ Challenges covering payroll, rent or
mortgage, and other operating costs
Assistance to small businesses that experienced negative economic impacts includes the following enumerated uses:
✓ Loans or grants to mitigate financial
hardship, such as by supporting payroll
and benefits, costs to retain employees,
and mortgage, rent, utility, and other
operating costs
✓ Technical assistance, counseling, or other
services to support business planning
Disproportionately Impacted Small Businesses
Treasury presumes that the following small businesses are disproportionately impacted by the pandemic:
8 15 u.s.c. 632.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
✓ Small businesses operating in Qualified
Census Tracts
✓ Small businesses operated by Tribal
governments or on Tribal lands
✓ Small businesses operating in the U.S.
territories
Assistance to disproportionately impacted small businesses includes the following enumerated uses, which have been expanded under the final rule:
✓ Rehabilitation of commercial properties,
storefront improvements & facade
improvements
✓ Technical assistance, business incubators &
grants for start-up or expansion costs for
small businesses
✓ Support for microbusinesses, including
financial, childcare, and transportation costs
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury 22

04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Assistance to Nonprofits
Nonprofits have faced significant challenges due to the pandemic's increased demand for services and changing operational needs, as well as declines in revenue sources such as donations and fees.

Nonprofits eligible for assistance are those that experienced negative economic impacts or disproportionate impacts of the pandemic and meet the definition of "nonprofit"- specifically those that are 501(c)(3) or 501(c)(19) tax-exempt organizations.

Impacted Nonprofits
Recipients can identify nonprofits impacted by the pandemic, and measures to respond, in many ways; for example, recipients could consider:
✓ Decreased revenue (e.g., from donations
and fees)
✓ Financial insecurity
✓ Increased costs (e.g., uncompensated
increases in service need)
✓ Capacity to weather financial hardship
✓ Challenges covering payroll, rent or
mortgage, and other operating costs
Assistance to nonprofits that experienced negative economic impacts includes the following enumerated uses:
✓ Loans or grants to mitigate financial
hardship
✓ Technical or in-kind assistance or other
services that mitigate negative economic
impacts of the pandemic
Disproportionately Impacted Nonprofits
Treasury presumes that the following nonprofits are disproportionately impacted by the pandemic:
✓ Nonprofits operating in Qualified Census
Tracts
✓ Nonprofits operated by Tribal
governments or on Tribal lands
✓ Nonprofits operating in the U.S. territories
Recipients may identify appropriate responses that are related and reasonably proportional to addressing these disproportionate impacts.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Aid to Impacted Industries
Recipients may use SLFRF funding to provide aid to industries impacted by the COVID-19 pandemic.

Recipients should first designate an impacted industry and then provide aid to address the impacted industry's negative economic impact.

This sub-category of eligible uses does not separately identify disproportionate impacts and corresponding responsive services.

1. Designating an impacted industry. There are two main ways an industry can be designated as "impacted."

1. If the industry is in the travel, tourism, or hospitality sectors (including Tribal development districts), the industry is impacted.

2. lft he industry is outside the travel, tourism, or hospitality sectors, the industry is impacted if:
a. The industry experienced at least 8 percent employment loss from pre-pandemic levels,9 or
b. The industry is experiencing comparable or worse economic impacts as the national tourism, travel, and hospitality industries as of the date of the final rule, based on the totality of economic indicators or qualitative data (if quantitative data is unavailable), and if the impacts were generally due to the COVID-19 public health emergency.

Recipients have flexibility to define industries broadly or narrowly, but Treasury encourages recipients to define narrow and discrete industries eligible for aid. State and territory recipients also have flexibility to define the industries with greater geographic precision; for example, a state may identify a particular industry in a certain region of a state as impacted.

2. Providing eligible aid to the impacted industry. Aid may only be provided to support businesses, att ractions, and Tribal development districts operating prior to the pandemic and affected by required closures and other efforts to contain the pandemic. Further, aid should be generally broadly available to all businesses within the impacted industry to avoid potential conflicts of interest, and Treasury encourages aid to be first used for operational expenses, such as payroll, before being used on other types of costs.
9 Specifically, a recipient should compare the percent change in the number of employees of the recipient's identified industry and the national Leisure & Hospitality sector in the three months before the pandemic's most severe impacts began (a straight three-month average of seasonally-adjusted employment data from December 2019, January 2020, and February 2020) with the latest data as of the final rule (a straight three-month average of seasonally-adjusted employment data from September 2021, October 2021, and November 2021). For parity and simplicity, smaller recipients without employment data that measure industries in their specific jurisdiction may use data available for a broader unit of government for this calculation (e.g., a county may use data from the state in which it is located; a city may use data for the county, if available, or state in which it is located) solely for purposes of determining whether a particular industry is an impacted industry.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Treasury recognizes the enumerated projects below as eligible responses to impacted industries.
✓ Aid to mitigate financial hardship, such
as supporting payroll costs, lost pay and
benefits for returning employees,
support of operations and maintenance
of existing equipment and facilities
✓ Technical assistance, counseling, or
other services to support business
planning
✓ COVID-19 mitigation and infection
prevention measures (see section Public
Health)
As with all eligible uses, recipients may pursue a project not listed above by undergoing the steps outlined in the section Framework for Eligible Uses Beyond Those Enumerated.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY

PUBLIC SECTOR CAPACITY
Recipients may use SLFRF funding to restore and bolster public sector capacity, which supports government's ability to deliver critical COVID-19 services. There are three main categories of eligible uses to bolster public sector capacity and workforce: Public Safety, Public Health, and Human Services Staff; Government Employment and Rehiring Public Sector Staff; and Effective Service Delivery.

Public Safety, Public Health, and Human Services Staff
SLFRF funding may be used for payroll and covered benefits for public safety, public health, health care, human services and similar employees of a recipient government, for the portion of the employee's time spent responding to COVID-19. Recipients should follow the steps below.

1. Identify eligible public safety, public health, and human services staff. Public safety staff include:
✓ Police officers (including state police
officers)
✓ Sheriffs and deputy sheriffs
✓ Firefighters
✓ Emergency medical responders
Public health staff include:
✓ Employees involved in providing medical
and other physical or mental health
services to patients and supervisory
personnel, including medical staff
assigned to schools, prisons, and other
such institutions
✓ Laboratory technicians, medical
examiners, morgue staff, and other
support services essential for patient
care
✓ Correctional and detention officers
✓ Dispatchers and supervisor personnel
that directly support public safety staff
✓ Employees of public health
departments directly engaged in
public health matters and related
supervisory personnel
Human services staff include:
✓ Employees providing or administering
social services and public benefits
✓ Child welfare services employees
✓ Child, elder, or family care employees

2. Assess portion of time spent on COVID-19 response for eligible staff.

Recipients can use a variety of methods to assess the share of an employees' time spent responding to COVID-19, including using reasonable estimates- such as estimating the share of time based on discussions with staff and applying that share to all employees in that position.

For administrative convenience, recipients can consider public health and safety employees entirely devoted to responding to COVID-19 (and their payroll and benefits fully covered by SLFRF) if the Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury 26

04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
employee, or his or her operating unit or division, is "primarily dedicated" to responding to COVID-

19. Primarily dedicated means that more than half of the employee, unit, or division's time is dedicated to responding to COVID-19.

Recipients must periodically reassess their determination and maintain records to support their assessment, although recipients do not need to track staff hours. -

3. Use SLFRF funding for payroll and covered benefits for the portion of eligible staff time spent on COVID-19 response. SLFRF funding may be used for payroll and covered benefits for the portion of the employees' time spent on COVID-19 response, as calculated above, through the period of performance.

Government Employment and Rehiring Public Sector Staff
Under the increased flexibility of the final rule, SLFRF funding may be used to support a broader set of uses to restore and support public sector employment. Eligible uses include hiring up to a pre-pandemic baseline that is adjusted for historic underinvestment in the public sector, providing additional funds for employees who experienced pay cuts or were furloughed, avoiding layoffs, providing worker retention incentives, and paying for ancillary administrative costs related to hiring, support, and retention. • Restoring pre-pandemic employment. Recipients have two options to restore pre-pandemic employment, depending on the recipient's needs.
• If the recipient simply wants to hire back employees for pre-pandemic positions: Recipients may use SLFRF funds to hire employees for the same positions that existed on January 27, 2020 but that were unfilled or eliminated as of March 3, 2021. Recipients may use SLFRF funds to cover payroll and covered benefits for such positions through the period of performance.
• If the recipient wants to hire above the pre-pandemic baseline and/ or would like to have flexibility in positions: Recipients may use SLFRF funds to pay for payroll and covered benefits associated with the recipient increasing its number of budgeted FTEs up to 7.5 percent above its pre-pandemic baseline. Specifically, recipients should undergo the following steps:
a. Identify the recipient's budgeted FTE level on January 27, 2020. This includes all budgeted positions, filled and unfilled. This is called the pre-pandemic baseline. b. Multiply the pre-pandemic baseline by 1.075. This is called the adjusted pre­ pandemic baseline.
c. Identify the recipient's budgeted FTE level on March 3, 2021, which is the beginning oft he period of performance for SLFRF funds. Recipients may, but are not required to, exclude the number of FTEs dedicated to responding to the COVID-19 public health emergency. This is called the actual number of FTEs. d. Subtract the actual number of FTEs from the adjusted pre-pandemic baseline to calculate the number of FTEs that can be covered by SLFRF funds. Recipients do not have to hire for the same roles that existed pre-pandemic.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Recipients may use SLFRF funds to cover payroll and covered benefits through the period of performance; these employees must have begun their employment on or after March 3, 2021. Recipients may only use SLFRF funds for additional FTEs hired over the March 3, 2021 level (i.e., the actual number of FTEs).
• Supporting and retaining public sector workers. Recipients can also use funds in other ways that support the public sector workforce." These include:
o Providing additional funding for employees who experienced pay reductions or were furloughed since the onset of the pandemic, up to the difference in the employee's pay, taking into account unemployment benefits received.
o Maintaining current compensation levels to prevent layoffs. SLFRF funds may be used to maintain current compensation levels, with adjustments for inflation, in order to prevent layoffs that would otherwise be necessary.
o Providing worker retention incentives, including reasonable increases in compensation to persuade employees to remain with the employer as compared to other employment options. Retention incentives must be entirely additive to an employee's regular compensation, narrowly tailored to need, and should not exceed incentives traditionally offered by the recipient or compensation that alternative employers may offer to compete for the employees. Treasury presumes that retention incentives that are less than 25 percent oft he rate of base pay for an individual employee or 10 percent for a group or category of employees are reasonably proportional to the need to retain employees, as long as other requirements are met. • Covering administrative costs associated with administering the hiring, support, and retention programs above.

Effective Service Delivery
SLFRF funding may be used to improve the efficacy of public health and economic programs through tools like program evaluation, data, and outreach, as well as to address administrative needs caused or exacerbated by the pandemic. Eligible uses include:
• Supporting program evaluation, data, and outreach through:
10 Recipients should be able to substantiate that these uses of funds are substantially due to the public health emergency or its negative economic impacts (e.g., fiscal pressures on state and local budgets) and respond to its impacts. See the final rule for details on these uses.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
✓ Program evaluation and evidence
resources
✓ Data analysis resources to gather,
assess, share, and use data
✓ Technology infrastructure to improve
access to and the user experience of
government IT systems, as well as
technology improvements to increase
public access and delivery of
government programs and services
✓ Community outreach and engagement
activities
✓ Capacity building resources to support
using data and evidence, including
hiring staff, consultants, or technical
assistance support
• Addressing administrative needs, including:
✓ Administrative costs for programs
responding to the public health
emergency and its economic impacts,
including non-SLFRF and non-federally
funded programs
✓ Address administrative needs caused
or exacerbated by the pandemic,
including addressing backlogs caused
by shutdowns, increased repair or
maintenance needs, and technology
infrastructure to adapt government
operations to the pandemic (e.g.,
video-conferencing software, data and
case management systems)
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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY

CAPITAL EXPENDITURES
As described above, the final rule clarifies that recipients may use funds for programs, services, and capital expenditures that respond to the public health and negative economic impacts of the pandemic.

Any use of funds in this category for a capital expenditure must comply with the capital expenditure requirements, in addition to other standards for uses of funds.

Capital expenditures are subject to the same eligibility standard as other eligible uses to respond to the pandemic's public health and economic impacts; specifically, they must be related and reasonably proportional to the pandemic impact identified and reasonably designed to benefit the impacted population or class.

For ease of administration, the final rule identifies enumerated types of capital expenditures that Treasury has identified as responding to the pandemic's impacts; these are listed in the applicable sub­ category of eligible uses (e.g., public health, assistance to households, etc.). Recipients may also identify other responsive capital expenditures. Similar to other eligible uses in the SLFRF program, no pre­ approval is required for capital expenditures.

To guide recipients' analysis of whether a capital expenditure meets the eligibility standard, recipients (with the exception of Tribal governments) must complete and meet the requirements of a written justification for capital expenditures equal to or greater than $1 million. For large-scale capital expenditures, which have high costs and may require an extended length of time to complete, as well as most capital expenditures for non-enumerated uses of funds, Treasury requires recipients to submit their writt en justification as part of regular reporting. Specifically:

If a project has and the use is enumerated by Treasury and the use is beyond those total capital as eligible, then enumerated by Treasury as eligible, expenditures then
of
Less than $1 No Written Justification required No Writt en Justification required million
Greater than or
equal to $1 Written Justification required but
million, but recipients are not required to submit as
less than $10 part of regular reporting to Treasury Writt en Justification required and million recipients must submit as part of regular
Writt en Justification required and reporting to Treasury $10 million or recipients must submit as part of regular more reporting to Treasury A Writt en Justification includes:
• Description of the harm or need to be addressed. Recipients should provide a description of the specific harm or need to be addressed and why the harm was exacerbated or caused by the public health emergency. Recipients may provide quantitative information on the extent and the type of harm, such as the number of individuals or entities affected.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
• Explanation of why a capital expenditure is appropriate. For example, recipients should include an explanation of why existing equipment and facilities, or policy changes or additional funding to pertinent programs or services, would be inadequate. • Comparison of proposed capital project against at least two alternative capital expenditures and demonstration of why the proposed capital expenditure is superior. Recipients should consider the effectiveness of the capital expenditure in addressing the harm identified and the expected total cost (including pre-development costs) against at least two alternative capital expenditures.

Where relevant, recipients should consider the alternatives of improving existing capital assets already owned or leasing other capital assets.

Treasury presumes that the following capital projects are generally ineligible:
x Construction of new correctional
facilities as a response to an increase in
rate of crime
x Construction of new congregate
facilities to decrease spread of COVID-19
in the facility
x Construction of convention centers,
stadiums, or other large capital projects
intended for general economic
development or to aid impacted
industries
In undertaking capital expenditures, Treasury encourages recipients to adhere to strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions. Treasury also encourages recipients to prioritize in their procurements employers with high labor standards and to prioritize employers without recent violations of federal and state labor and employment laws.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY

FRAMEWORK FOR ELIGIBLE USES BEYOND THOSE ENUMERATED
As described above, recipients have broad flexibility to identify and respond to other pandemic impacts and serve other populations that experienced pandemic impacts, beyond the enumerated uses and presumed eligible populations. Recipients should undergo the following steps to decide whether their project is eligible:

Step 1. Identify COVID-19 public health or 2. Design a response that addresses or economic impact responds to the impact
Analysis Can identify impact to a specific • Types of responses can include a • household, business or nonprofit or to program, service, or capital a class of households, businesses or expenditure
nonprofits (i.e., group) • Response should be related and • Can also identify disproportionate reasonably proportional to the harm impacts, or more severe impacts, to a • Response should also be reasonably specific beneficiary or to a class designed to benefit impacted individual or class

1. Identify a COVID-19 public health or negative economic impact on an individual or a class.

Recipients should identify an individual or class that is "impacted" or "disproportionately impacted" by the COVID-19 public health emergency or its negative economic impacts as well as the specific impact itself.
• "Impacted" entities are those impacted by the disease itself or the harmful consequences of the economic disruptions resulting from or exacerbated by the COVID- 19 public health emergency. For example, an individual who lost their job or a small business that saw lower revenue during a period of closure would both have experienced impacts of the pandemic.
• "Disproportionately impacted" entities are those that experienced disproportionate public health or economic outcomes from the pandemic; Treasury recognizes that pre­ existing disparities, in many cases, amplified the impacts of the pandemic, causing more severe impacts in underserved communities. For example, a household living in a neighborhood with limited access to medical care and healthy foods may have faced health disparities before the pandemic, like a higher rate of chronic health conditions, that contributed to more severe health outcomes during the COVID-19 pandemic.

The recipient may choose to identify these impacts at either the individual level or at a class level. If the recipient is identifying impacts at the individual level, they should retain documentation supporting the impact the individual experienced (e.g., documentation of lost revenues from a small business). Such documentation can be streamlined in many cases (e.g., self-attestation that a household requires food assistance).

Recipients also have broad flexibility to identify a "class" - or a group of households, small businesses, or nonprofits - that experienced an impact. In these cases, the recipients should Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury 32

04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
first identify the class and the impact that it faced. Then, recipients only need to document that the individuals served fall within that class; recipients do not need to document a specific impact to each individual served. For example, a recipient could identify that restaurants in the downtown area faced substantial declines in revenue due to decreased foot traffic from workers; the recipient could develop a program to respond to the impact on that class and only needs to document that the businesses being served are restaurants in the downtown area.

Recipients should keep the following considerations in mind when designating a class:
• There should be a relationship between the definition of the class and the proposed response. Larger and less-specific classes are less likely to have experienced similar harms, which may make it more difficult to design a response that appropriately responds to those harms.
• Classes may be determined on a population basis or on a geographic basis, and the response should be appropriately matched. For example, a response might be designed to provide childcare to single parents, regardless of which neighborhood they live in, or a response might provide a park to improve the health of a disproportionately impacted neighborhood.
• Recipients may designate classes that experienced disproportionate impact, by assessing the impacts of the pandemic and finding that some populations experienced meaningfully more severe impacts than the general public. To determine these disproportionate impacts, recipients:
o May designate classes based on academic research or government research publications (such as the citations provided in the supplementary information in the final rule), through analysis oft heir own data, or through analysis of other existing data sources.
o May also consider qualitative research and sources to augment their analysis, or when quantitative data is not readily available. Such sources might include resident interviews or feedback from relevant state and local agencies, such as public health departments or social services departments. o Should consider the quality of the research, data, and applicability of analysis to their determination in all cases.
• Some of the enumerated uses may also be appropriate responses to the impacts experienced by other classes of beneficiaries. It is permissible for recipients to provide these services to other classes, so long as the recipient determines that the response is . also appropriate for those groups. • Recipients may designate a class based on income level, including at levels higher than the final rule definition of "low- and moderate-income." For example, a recipient may identify that households in their community with incomes above the final rule threshold for low-income nevertheless experienced disproportionate impacts from the pandemic and provide responsive services.

2. Design a response that addresses or responds to the impact. Programs, services, and other interventions must be reasonably designed to benefit the individual or class that experienced Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury 33

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• U.S. DEPARTMENT OF THE TREASURY
the impact. They must also be related and reasonably proportional to the extent and type of impact experienced. For example, uses that bear no relation or are grossly disproportionate to the type or extent of the impact would not be eligible. "Reasonably proportional" refers to the scale of the response compared to the scale of the harm, as well as the targeting of the response to beneficiaries compared to the amount of harm they experienced; for example, it may not be reasonably proportional for a cash assistance program to provide a very small amount of aid to a group that experienced severe harm and a much larger amount to a group that experienced relatively little harm. Recipients should consider relevant factors about the harm identified and the response to evaluate whether the response is reasonably proportional. For example, recipients may consider the size of the population impacted and the severity, type, and duration of the impact. Recipients may also consider the efficacy, cost, cost-effectiveness, and time to delivery of the response.

For disproportionately impacted communities, recipients may design interventions that address broader pre-existing disparities that contributed to more severe health and economic outcomes during the pandemic, such as disproportionate gaps in access to health care or pre-existing disparities in educational outcomes that have been exacerbated by the pandemic.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Premium Pay
The Coronavirus State and Local Fiscal Recovery Funds may be used to provide premium pay to eligible workers performing essential work during the pandemic. Premium pay may be awarded to eligible workers up to $13 per hour. Premium pay must be in addition to wages or remuneration (i.e., compensation) the eligible worker otherwise receives. Premium pay may not exceed $25,000 for any single worker during the program.

Recipients should undergo the following steps to provide premium pay to eligible workers.

1. Identify an "eligible" worker. Eligible workers include workers "needed to maintain continuity of operations of essential critical infrastructure sectors." These sectors and occupations are eligible:
✓ Health care ✓ State, local, or Tribal government
✓ Emergency response workforce
✓ Sanitation, disinfection & cleaning ✓ Workers providing vital services to ✓ Maintenance Tribes
✓ Grocery stores, restaurants, food ✓ Educational, school nutrition, and other production, and food delivery work required to operate a school ✓ Pharmacy facility
✓ Biomedical research ✓ Laundry
✓ Behavioral health ✓ Elections
✓ Medical testing and diagnostics ✓ Solid waste or hazardous materials ✓ Home and community-based health care management, response, and cleanup or assistance with activities of daily living ✓ Work requiring physical interaction with ✓ Family or child care patients
✓ Social services ✓ Dental care
✓ Public health ✓ Transportation and warehousing
✓ Mortuary ✓ Hotel and commercial lodging facilities
✓ Critical clinical research, development, that are used for COVID-19 mitigation and testing necessary for COVID-19 and containment
response
Beyond this list, the chief executive (or equivalent) of a recipient government may designate additional non-public sectors as critical so long as doing so is necessary to protecting the health and wellbeing of the residents of such jurisdictions.

2. Verify that the eligible worker performs "essential work," meaning work that:
• Is not performed while teleworking from a residence; and • Involves either:
a. regular, in-person interactions with patients, the public, or coworkers of the individual that is performing the work; or
b. regular physical handling of items that were handled by, or are to be handled by, patients, the public, or coworkers of the individual that is performing the work.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY

3. Confirm that the premium pay "responds to" workers performing essential work during the COVID-19 public health emergency. Under the final rule, which broadened the share of eligible workers who can receive premium pay without a written justification, recipients may meet this requirement in one of three ways:
• Eligible worker receiving premium pay is earning (with the premium included) at or below 150 percent of their residing state or county's average annual wage for all occupations, as defined by the Bureau of Labor Statistics' Occupational Employment and Wage Statistics, whichever is higher, on an annual basis; or
• Eligible worker receiving premium pay is not exempt from the Fair Labor Standards Act overtime provisions; or
• If a worker does not meet either of the above requirements, the recipient must submit written justification to Treasury detailing how the premium pay is otherwise responsive to workers performing essential work during the public health emergency. This may include a description of the essential worker's duties, health, or financial risks faced due to COVID-19, and why the recipient determined that the premium pay was responsive. Treasury anticipates that recipients will easily be able to satisfy the justification requirement for front-line workers, like nurses and hospital staff.

Premium pay may be awarded in installments or lump sums (e.g., monthly, quarterly, etc.) and may be awarded to hourly, part-time, or salaried or non-hourly workers. Premium pay must be paid in addition to wages already received and may be paid retrospectively. A recipient may not use SLFRF to merely reimburse itself for premium pay or hazard pay already received by the worker, and premium pay may not be paid to volunteers.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Water & Sewer Infrastructure
The Coronavirus State and Local Fiscal Recovery Funds may be used to make necessary investments in water and sewer infrastructure. State, local, and Tribal governments have a tremendous need to address the consequences of deferred maintenance in drinking water systems and removal, management, and treatment of sewage and stormwater, along with additional resiliency measures needed to adapt to climate change.

Recipients may undertake the eligible projects below:

PROJECTS ELIGIBLE UNDER EPA'S CLEAN WATER STATE REVOLVING FUND (CWSRF) Eligible projects under the CWSRF, and the final rule, include:
✓ Construction of publicly owned ✓ Development and implementation of a treatment works conservation and management plan
✓ Projects pursuant to implementation under the CWA
of a non point source pollution ✓ Watershed projects meeting the management program established criteria set forth in the CWA under the Clean Water Act (CWA) ✓ Energy consumption reduction for ✓ Decentralized wastewater treatment publicly owned treatment works systems that treat municipal ✓ Reuse or recycling of wastewater, wastewater or domestic sewage stormwater, or subsurface drainage ✓ Management and treatment of water
stormwater or subsurface drainage ✓ Security of publicly owned treatment water works
✓ Water conservation, efficiency, or
reuse measures
Treasury encourages recipients to review the EPA handbook for the CWSRF for a full list of eligibilities.

PROJECTS ELIGIBLE UNDER EPA'S DRINKING WATER STATE REVOLVING FUND (DWSRF) Eligible drinking water projects under the DWSRF, and the final rule, include:
✓ Facilities to improve drinking water ✓ Green infrastructure, including green quality roofs, rainwater harvesting collection,
✓ Transmission and distribution, permeable pavement
including improvements of water ✓ Storage of drinking water, such as to pressure or prevention of prevent contaminants or equalize contamination in infrastructure and water demands
lead service line replacements ✓ Purchase of water systems and ✓ New sources to replace contaminated interconnection of systems drinking water or increase drought ✓ New community water systems resilience, including aquifer storage
and recovery system for water storage
Treasury encourages recipients to review the EPA handbook for the DWSRF for a full list of eligibilities.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY

ADDITIONAL ELIGIBLE PROJECTS
With broadened eligibility under the final rule, SLFRF funds may be used to fund additional types of projects- such as additional stormwater infrastructure, residential wells, lead remediation, and certain rehabilitations of dams and reservoirs - beyond the CWSRF and DWSRF, if they are found to be "necessary" according to the definition provided in the final rule and outlined below. ✓ Culvert repair, resizing, and removal,
replacement of storm sewers, and
additional types of stormwater
infrastructure
✓ Infrastructure to improve access to
safe drinking water for individual
served by residential wells, including
testing initiatives, and
treatment/remediation strategies that
address contamination
✓ Dam and reservoir rehabilitation if
primary purpose of dam or reservoir is
for drinking water supply and project
is necessary for provision of drinking
water
A "necessary" investment in infrastructure must be:
✓ Broad set of lead remediation projects
eligible under EPA grant programs
authorized by the Water
Infrastructure Improvements for the
Nation (WIIN) Act, such as lead
testing, installation of corrosion
control treatment, lead service line
replacement, as well as water quality
testing, compliance monitoring, and
remediation activities, including
replacement of internal plumbing and
faucets and fixtures in schools and
childcare facilities
(1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which may include a reasonable projection of increased need, whether due to population growth or otherwise,
(2) a cost-effective means for meeting that need, taking into account available alternatives, and (3) for investments in infrastructure that supply drinking water in order to meet projected population growth, projected to be sustainable over its estimated useful life.

Please note that DWSRF and CWSRF-eligible projects are generally presumed to be necessary investments. Additional eligible projects generally must be responsive to an identified need to achieve or maintain an adequate minimum level of service. Recipients are only required to assess cost­ effectiveness of projects for the creation of new drinking water systems, dam and reservoir rehabilitation projects, or projects for the extension of drinking water service to meet population growth needs. Recipients should review the supplementary information to the final rule for more details on requirements applicable to each type of investment.

APPLICABLE STANDARDS & REQUIREMENTS
Treasury encourages recipients to adhere to strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions. Treasury also encourages recipients to prioritize in their procurements employers with high labor standards and to prioritize employers without recent violations of federal and state labor and employment laws.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Broadband Infrastructure
The Coronavirus State and Local Fiscal Recovery Funds may be used to make necessary investments in broadband infrastructure, which has been shown to be critical for work, education, healthcare, and civic participation during the public health emergency. The final rule broadens the set of eligible broadband infrastructure investments that recipients may undertake.

Recipients may pursue investments in broadband infrastructure meeting technical standards detailed below, as well as an expanded set of cybersecurity investments.

BROADBAND INFRASTRUCTURE INVESTMENTS
Recipients should adhere to the following requirements when designing a broadband infrastructure project:

1. Identify an eligible area for investment. Recipients are encouraged to prioritize projects that are designed to serve locations without access to reliable wireline 100/20 Mbps broadband service (meaning service that reliably provides 100 Mbps download speed and 20 Mbps upload speed through a wireline connection), but are broadly able to invest in projects designed to provide service to locations with an identified need for additional broadband investment.

Recipients have broad flexibility to define need in their community. Examples of need could include:
✓ Lack of access to a reliable high-speed
broadband connection
✓ Lack of affordable broadband
✓ Lack of reliable service
If recipients are considering deploying broadband to locations where there are existing and enforceable federal or state funding commitments for reliable service of at least 100/20 Mbps, recipients must ensure that SLFRF funds are designed to address an identified need for additional broadband investment that is not met by existing federal or state funding commitments. Recipients must also ensure that SLFRF funds will not be used for costs that will be reimbursed by the other federal or state funding streams.

2. Design project to meet high-speed technical standards. Recipients are required to design projects to, upon completion, reliably meet or exceed symmetrical 100 Mbps download and upload speeds. In cases where it is not practicable, because oft he excessive cost of the project or geography or topography of the area to be served by the project, eligible projects may be designed to reliably meet or exceed 100/20 Mbps and be scalable to a minimum of symmetrical 100 Mbps download and upload speeds.

Treasury encourages recipients to prioritize investments in fiber-optic infrastructure wherever feasible and to focus on projects that will achieve last-mile connections. Further, Treasury encourages recipients to prioritize support for broadband networks owned, operated by, or affiliated with local governments, nonprofits, and co-operatives.

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• U.S. DEPARTMENT OF THE TREASURY

3. Require enrollment in a low-income subsidy program. Recipients must require the service provider for a broadband project that provides service to households to either:
✓ Participate in the FCC's Affordable
Connectivity Program (ACP)
✓ Provide access to a broad-based
affordability program to low-income
consumers that provides benefits
commensurate to ACP
Treasury encourages broadband services to also include at least one low-cost option offered without data usage caps at speeds sufficient for a household with multiple users to simultaneously telework and engage in remote learning. Recipients are also encouraged to consult with the community on affordability needs.

CYBERSECURITY INVESTMENTS
SLFRF may be used for modernization of cybersecurity for existing and new broadband infrastructure, regardless oft heir speed delivery standards. This includes modernization of hardware and software.

APPLICABLE STANDARDS & REQUIREMENTS
Treasury encourages recipients to adhere to strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions. Treasury also encourages recipients to prioritize in their procurements employers with high labor standards and to prioritize employers without recent violations off ederal and state labor and employment laws.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Restrictions on Use
While recipients have considerable flexibility to use Coronavirus State and Local Fiscal Recovery Funds to address the diverse needs of their communities, some restrictions on use of funds apply.

OFFSET A REDUCTION IN NET TAX REVENUE
• States and territories may not use this funding to directly or indirectly offset a reduction in net tax revenue resulting from a change in law, regulation, or administrative interpretation beginning on March 3, 2021, through the last day of the fiscal year in which the funds provided have been spent. If a state or territory cuts taxes during this period, it must demonstrate how it paid for the tax cuts from sources other than SLFRF, such as by enacting policies to raise other sources of revenue, by cutting spending, or through higher revenue due to economic growth. If the funds provided have been used to offset tax cuts, the amount used for this purpose must be repaid to the Treasury.

DEPOSITS INTO PENSION FUNDS
• No recipients except Tribal governments may use this funding to make a deposit to a pension fund. Treasury defines a "deposit" as an extraordinary contribution to a pension fund for the purpose of reducing an accrued, unfunded liability. While pension deposits are prohibited, recipients may use funds for routine payroll contributions connected to an eligible use of funds (e.g., for public health and safety staff). Examples of extraordinary payments include ones that:
x Reduce a liability incurred prior to the
start of the COVID-19 public health
emergency and occur outside the
recipient's regular timing for making the
payment
" Occur at the regular time for pension
contributions but is larger than a regular
payment would have been

ADDITIONAL RESTRICTIONS AND REQUIREMENTS
Additional restrictions and requirements that apply across all eligible use categories include:
• No debt service or replenishing financial reserves. Since SLFRF funds are intended to be used prospectively, recipients may not use SLFRF funds for debt service or replenishing financial reserves (e.g., rainy day funds).
• No satisfaction of settlements and judgments. Satisfaction of any obligation arising under or pursuant to a sett lement agreement, judgment, consent decree, or judicially confirmed debt restructuring in a judicial, administrative, or regulatory proceeding is itself not an eligible use.

However, if a sett lement requires the recipient to provide services or incur other costs that are an eligible use of SLFRF funds, SLFRF may be used for those costs. • Additional general restrictions. SLFRF funds may not be used for a project that conflicts with or contravenes the purpose of the American Rescue Plan Act statute (e.g., uses of funds that Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury 41

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• U.S. DEPARTMENT OF THE TREASURY
undermine COVID-19 mitigation practices in line with CDC guidance and recommendations) and may not be used in violation of the Award Terms and Conditions or conflict of interest requirements under the Uniform Guidance. Other applicable laws and regulations, outside of SLFRF program requirements, may also apply (e.g., laws around procurement, contracting, conflicts-of-interest, environmental standards, or civil rights).

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY
Program Administration
The Coronavirus State and Local Fiscal Recovery Funds final rule details a number of administrative processes and requirements, including on distribution off unds, timeline for use off unds, transfer of funds, treatment of loans, use of funds to meet non-federal match or cost-share requirements, administrative expenses, reporting on use of funds, and remediation and recoupment of funds used for ineligible purposes. This section provides a summary for the most frequently asked questions.

Tl MELINE FOR USE OF FUNDS
Under the SLFRF, funds must be used for costs incurred on or after March 3, 2021. Further, costs must be obligated by December 31, 2024, and expended by December 31, 2026.

TRANSFERS
Recipients may undertake projects on their own or through subrecipients, which carry out eligible uses on behalf of a recipient, including pooling funds with other recipients or blending and braiding SLFRF funds with other sources of funds. Localities may also transfer their funds to the state through section 603(c)(4), which will decrease the locality's award and increase the state award amounts.

LOANS
Recipients may generally use SLFRF funds to provide loans for uses that are otherwise eligible, although there are special rules about how recipients should track program income depending on the length of the loan. Recipients should consult the final rule if they seek to utilize these provisions.

NON-FEDERAL MATCH OR COST-SHARE REQUIREMENTS
Funds available under the "revenue loss" eligible use category (sections 602(c)(l )(C) and 603(c)(l )(C) of the Social Security Act) generally may be used to meet the non-federal cost-share or matching requirements of other federal programs. However, note that SLFRF funds may not be used as the non­ federal share for purposes of a state's Medicaid and CHIP programs because the Office of Management and Budget has approved a waiver as requested by the Centers for Medicare & Medicaid Services pursuant to 2 CFR 200.102 of the Uniform Guidance and related regulations.

SLFRF funds beyond those that are available under the revenue loss eligible use category may not be used to meet the non-federal match or cost-share requirements of other federal programs, other than as specifically provided for by statute. As an example, the Infrastructure Investment and Jobs Act provides that SLFRF funds may be used to meet the non-federal match requirements of authorized Bureau of Reclamation projects and certain broadband deployment projects. Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects.

ADMINISTRATIVE EXPENSES
SLFRF funds may be used for direct and indirect administrative expenses involved in administering the program. For details on permissible direct and indirect administrative costs, recipients should refer to Treasury's Compliance and Reporting Guidance. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect costs.

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04/12/2022 Item No.15.
• U.S. DEPARTMENT OF THE TREASURY

REPORTING, COMPLIANCE & RECOUPMENT
Recipients are required to comply with Treasury's Compliance and Reporting Guidance, which includes submitt ing mandatory periodic reports to Treasury.

Funds used in violation of the final rule are subject to remediation and recoupment. As outlined in the final rule, Treasury may identify funds used in violation through reporting or other sources. Recipients will be provided with an initial writt en notice of recoupment with an opportunity to submit a request for reconsideration before Treasury provides a final notice of recoupment. If the recipient receives an initial notice of recoupment and does not submit a request for reconsideration, the initial notice will be deemed the final notice. Treasury may pursue other forms of remediation and monitoring in conjunction with, or as an alternative to, recoupment.

REVISIONS TO THE OVERVIEW OF THE FINAL RULE:
• January 18, 2022 (p. 4, p. 16): Clarification that the revenue loss standard allowance is "up to" $10 million under the Replacing Lost Public Sector Revenue eligible use category; addition of further information on the eligibility of general infrastructure, general economic development, and worker development projects under the Public Health and Negative Economic Impacts eligible use category.
• March 17, 2022 (p. 18): Specified that provision of child nutrition programs is available to respond to impacts of the pandemic on households and communities.

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04/12/2022 Item No.15.

Folsom City Council
Staff Re ort
MEETING DATE: 4/12/2022
AGENDA SECTION: Old Business
SUBJECT: Resolution No. 10831 -A Resolution of the City Council of the City of Folsom Approving an Affordable Housing Grant in the Amount of $588,265.55 to Bidwell Place, LP for Construction of the 75-unit Bidwell Place Affordable Multifamily Project, and Appropriation of Funds
FROM: Community Development Department

RECOMMENDATION I CITY COUNCIL ACTION
Move to Adopt Resolution No. 10831 - A Resolution of the City Council of the City of Folsom Approving an Affordable Housing Grant in the Amount of $588,265.55 to Bidwell Place, LP for Construction of the 75-unit Bidwell Place Affordable Multifamily Project, and Appropriation of Funds.

BACKGROUND I ISSUE
On May 6, 2020, the Planning Commission approved the Bidwell Place Mixed-Use project.

The Bidwell Place project is a 75-unit 100 percent affordable multifamily, mixed use housing project on the 3.24-acre Bank of America site located on East Bidwell Street between Rumsey Way and Market Street. The development, which is currently under construction, includes studio, one-bedroom, and two-bedroom floor plans and will serve a mix of extremely low, very-low- and low-income households.
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04/12/2022 Item No.16.

The project is being financed by Federal Low Income Housing Tax Credits and tax-exempt Private Activity Bonds and all the approved project underwriting were based on a standalone asset that would be regulated as affordable housing for 55 years. As a result, the project site must be parcelized to separate the affordable housing community asset from the commercial retail property (Bank of America). At time of project approval, staff and the applicant were under the impression that separation of the Bank of America commercial use from the residential portion of the proposed project would be achieved by a simple lot line adjustment. However, through further surveying and title search it was discovered that, although there are two Assessor Parcel Numbers (APNs) associated with the site, these parcels only exist for assessment purposes and have not been mapped. As a result, the applicant is in the process of requesting Planning Commission approval for a Tentative Parcel Map to subdivide the existing 3.24-acre property into two individual parcels. The two newly created parcels will consist of a 1.11-acre parcel (403 East Bidwell Street) and a 2.07-acre parcel (425 East Bidwell Street) within the East Bidwell Mixed Use Overlay of the General Commercial zone of the City of Folsom.

In accordance with the Folsom Municipal Code, Section 16.32.040, the project is now subject to parkland dedication in-lieu fees (Quimby) as part of this subsequent Tentative Parcel Map approval request. Because this fee was not previously anticipated, the additional fees place a financial burden on the project which the affordable housing project cannot absorb. As such, City Council is being asked to approve a grant to the applicant in the exact amount of the levied Quimby parkland dedication in-lieu fees to offset this financial burden on the project.

This grant will go directly towards the payment of the Quimby fee and will not provide any additional financial benefit to the project.

POLICY/ RULE
Government Code section 664 77, commonly referred to as the Quimby Act, establishes the statutory authority by which a local government may require the dedication of land or the payment of fees for park purposes (Government Code §66477(a).). In conformance with section 66477, the City of Folsom has adopted a parkland dedication ordinance, which allows the City to impose park dedication and/or fee payment obligations in conjunction with the consideration and approval of a tentative map or parcel map.

This grant award requires City Council approval.
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04/12/2022 Item No.16.

ANALYSIS
The Bidwell Place project is being financed with 4 percent non-competitive tax credits, tax­ exempt bonds, developer equity, and a $4.15 million affordable housing loan from the City.

In addition, the project received a $150,693.75 grant (Resolution No. 10630) from City to off­ set the loss of 60 sewer fee credits that had previously been approved for the project.

The project was financed in 2021 with a forward locked permanent debt rate. All sources and uses of financing were locked at that milestone. At the time of construction loan closing, the California Construction Cost Index (CCCI) was 7102. The CCCI, as of March of 2022, is 8736, which represents a 23 percent increase from the previous year. And, although most of Bidwell Place's construction contracts were executed at the construction loan closing, several remaining trades experienced significant cost increases and those increased costs have been passed onto the project. In addition, it is important to note that as a 100 percent affordable housing project, all rental income is capped by federal and state agencies and cannot be increased to generate additional income for the project. For these reasons, the project cannot absorb the additional costs associated with the previously unanticipated Quimby fees.

Financial support of this affordable housing project is consistent with the City's Housing Element Goal of facilitating affordable housing. Based on City Council's previous commitment to award financial assistance to this project, staff is supportive of the developer's request for a $588,265.55 affordable housing grant to offset the Quimby fees.

FINANCIAL IMPACT
Funding for the requested affordable housing loan for this project is available from the City's Housing Fund (Fund 238). An appropriation will be required in the amount of $588,265.55.

There are sufficient funds available for this additional appropriation. This funding source does not impact the City's General Fund.

ENVIRONMENTAL REVIEW
The Bidwell Place project was determined by the Planning Commission on May 6, 2020 to be categorically exempt from the California Environmental Quality Act (CEQA) under Public Resources Code Sections 21159 .21 and 21159 .23 as further described in Sections 15192 and 5194 (Affordable Housing Exemption) of the CEQA Guidelines.

ATTACHMENTS

1. Resolution No. 10831 - A Resolution of the City Council of the City of Folsom Approving an Affordable Housing Grant in the Amount of $588,265.55 to Bidwell Place, LP for Construction of the 75-unit Bidwell Place Affordable Multifamily Project, and Appropriation of Funds

2. Tentative Parcel Map Exhibit
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04/12/2022 Item No.16.

Submitted,
Pam Johns, Community Development Director
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04/12/2022 Item No.16.

ATTACHMENT 1
Resolution No. 10831 -A Resolution of the City Council of the City of Folsom Approving an Affordable Housing Grant in the Amount of $588,265.55 to Bidwell Place, LP for Construction of the 75-unit Bidwell Place Affordable Multifamily Project, and Appropriation of Funds

04/12/2022 Item No.16.

RESOLUTION NO. 10831

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM APPROVING A GRANT IN THE AMOUNT OF $588,265.55 TO BIDWELL PLACE, LP FOR CONSTRUCTION OF THE 75-UNIT BIDWELL PLACE AFFORDABLE

MULTIFAMILY PROJECT, AND APPROPRIATION OF FUNDS
WHEREAS, on May 6, 2020, the Planning Commission approved the Bidwell Place Mixed-Use project which is currently under construction and will serve a mix of extremely low, very-low- and low-income households.; and
WHEREAS, the project is financed by Federal Low Income Housing Tax Credits, tax-exempt Private Activity Bonds and an affordable housing loan and grant from the City; and WHEREAS, all the project was financed as a stand-alone affordable housing community; and
WHEREAS, for regulatory consistency, the project site must be parcelized to separate the affordable housing community from the commercial retail property; and WHEREAS, at the time of project approval, staff and the applicant were under the impression that separation of the residential use from the commercial portion of the proposed project would be achieved by a lot line adjustment; and WHEREAS, through further surveying and title search, it was discovered that although there are two Assessor Parcel Numbers (APNs) associated with the site, the parcels only exist for assessment purposes and are not mapped; and
WHEREAS, the applicant is in the process of requesting Planning Commission approval for a Tentative Parcel Map to subdivide the existing 3.24-acre property into two individual parcels; and
WHEREAS, in accordance with the Folsom Municipal Code, Section 16.32.040, the project will be subject to parkland dedication in-lieu fees (Quimby) as part of the subsequent Tentative Parcel Map approval request; and
WHEREAS, to off-set the additional cost to the project associated with the previously unanticipated Quimby parkland dedication / parkland in lieu fee, the developer is requesting an affordable housing grant from the City to assist with the construction of the Bidwell Place project; and
WHEREAS, providing financial assistance to affordable housing projects is consistent with the Goal H-3: Facilitating Affordable Housing in the City's Housing Element; and WHEREAS, the requested grant amount of $588,265.55 is appropriate as it represents the Resolution No. 10831

04/12/2022 Item No.16.
monetary value of the unanticipated Quimby parkland dedication/ parkland in lieu fee that Bidwell Place is subject to as part of the Tentative Parcel Map request; and WHEREAS, funding for the requested affordable housing grant is available from the City's Housing Fund (Fund 238).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom hereby approves an affordable housing grant in the amount of $588,265.55 to Bidwell Place, LP for construction of the 75-unit Bidwell Place affordable multifamily project.

BE IT FURTHER RESOLVED that the Finance Director is directed to appropriate $588,265.55 from the City's Housing Fund (Fund 238) for purpose of this Resolution.

PASSED AND ADOPTED this 12th day of April 2022, by the following roll-call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmember( s):

Councilmember( s):

Councilmember( s):

Councilmember( s):

Kerri M. Howell, MAYOR
ATTEST:

Christa Freemantle, CITY CLERK
Resolution No. 10831

04/12/2022 Item No.16.

ATTACHMENT 2
Tentative Parcel Map Exhibit

04/12/2022 Item No.16.

TENTATIVE PARCEL MAP
BIDWELL PLACE APN 071-0 I 90-060 & 061
403 & 425 EAST BIDWELL STREET, FOLSOM, CALFORNIA

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DECEMBER 2021

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04/12/2022 Item No.16.

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04/12/2022 Item No.16.
:; ] ,;! i .1. r ,i ;. :\"i
Folsom City Council
Staff Re rt

RECOMMENDATION / CITY COUNCIL ACTION
Staff recommends that the City Council consider and approve the attached reply to Scott Rafferty (Attachment 1) providing an unconditional commitment to continue to comply with the Brown Act.

BACKGROUND / ISSUE
On March 25,2022, the City received a cease and desist letter from Scott Rafferty dated March 24,2022 alleging the following violations of the Brown Act:

1. The failure to make available all non-exempt documents relating to council districts that were distributed to the council in advance of its February 11,2022, meeting. A copy is attached to the electronic transmission of this letter.

2. The redaction of the time and date of electronic communications to conceal when they were received and when they became subject to public disclosure.

3. The continuing failure, even after the meeting, to allow inspection of writings subject to $54957.5, including the data files presented at those meetings.

4. The repeated failure to notiff the public of the change in procedure for public comment, which no longer provided for text messages to be relayed by the City Manager. 1 MEETING DATE: 41t212022
AGENDA SECTION: New Business
SUBJECT: Consideration of Letter in Response to Demand Letter Received from Scott Rafferty Regarding Alleged Non-Compliance with the Brown Act
FROM: City Attorney's Office

04/12/2022 Item No.17.

While staff disagrees with the alleged non-compliance, the Brown Act provides a process for issues such as these to be resolved without further legal action. To that end, the Brown Act provides a prescribed form letter that the City Council may consider approving and sending in response to Mr. Rafferty's correspondence.

POLICY / RULE
The Brown Act provides that a response to the cease and desist letter shall be in substantially the form provided in Government Code section 5a960.2(c)(1). The fact that the City Council provides an unconditional commitment shall not be construed or admissible as evidence of violation of the Brown Act. Government Code section 54960.2(c)(4).

ANALYSIS
Government Code section 54960.2 allows any interested person to submit a "cease and desist" letter to the City as a prerequisite to filing a lawsuit over alleged past non-compliance with the Brown Act. Pursuant to Section 54960.2(b), the City Council may respond to the "cease and desist" letter within thirty (30) days by providing an "unconditional commitment" not to repeat any or all of the actions challenged. By law, an "unconditional commitment" does not constitute admission of a violation, but it does bar a potential plaintiff from pursuing litigation and collecting attorneys' fees with respect to past non-compliance related to the specific action the City has'ounconditionally committed" not to repeat.

The City Council's reply must be approved in open session as a separate item of business, not under the "Consent" portion of the agenda, and in substantially the form as prescribed by the Brown Act. Once approved, the Brown Act prohibits legal action by the potential plaintiff; however, if such an action is nonetheless filed, the court is required to dismiss the lawsuit with prejudice if it finds that the City Council has provided an unconditional commitment pursuant to the Brown Act.

FINANCIAL IMPACT
There is no legal expense associated with this item as the City Council has always complied with the Brown Act. In addition, providing the attached reply may reduce the chance of litigation and arty associated legal costs.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines $15061(c)(3)), or is otherwise not considered a project as defined by Public Resources Code 921065 and CEQA Guidelines $15060(c)(3) and $15378. The City Council's consideration of a reply to the Brown Act cease and desist letter meets the above criteria and is not subject to CEQA. No environmental review is required. 2 Page 546
04/12/2022 Item No.17.

ATTACHMENTS

1. Cease and desist letter dated March 24,2022

2. Proposed reply from the City Council
Respectfu lly submitted,
Steven W*g, City Attomey
aJ Page 547
04/12/2022 Item No.17.

ATTACHMENT 1

04/12/2022 Item No.17.

SCOI['|n J. FLAtr"F"EFT'DfT
ATITOR}TEY A:D I"A}Ir
lg].B.wIrlEECLrE:F COtJ-aIn @qgt-SAO-S52S-firAr.Dt-(rf cFrE:Eir(cA94596 @-CO1V[ Mardr 24,2022
Ms. Christa Freemantle
Clerk, City of Folsom
50 E. Natoma Street
Folsom CA 95630
by electronic and postal mail
cc: Mayor Kerri Howell, members of
the City Council, City Attorney
Dear Ms. Freemantle:

This letter constitutes a demand specified by Sectionl54960.1,b) that the City of Folsom cease and desist from violations of the Brown Act committed in connection with the public hearing the Council conducted on February 22,2022. The Council purported to conduct these hearings pursuant to Elections Code, Section 10010. This letter also satisfies the requirement of Section 54960.2 and enables my clients to file an additional action to determine that the actions specified herein were taken in violation of the Brown Act. To the extent set forth hereiry the City of Folsom may respond to this demand by making an unconditional commitment to cease and desist from the challenged practices.

The unlawfully conducted hearings are already the subject of litigation before the Superior Court. Because Elections Code, Section 100L0 precludes actions designed to mislead the public, to prevent their active participatiorL or to exhaust their attention by conducting hearings over a protracted period, the City Council cannot effectively cure or correct the effects of these violations simply by redoing the hearing. This would burden the public with attending more hearings, after "actions" (as defined in the Brown Act) have been taken and when the underlying decisions can only be reversed in by a judicial decree from the Superior Court (or the District Court for the Eastern District of California). Therefore, I will be writing the City Attorney separately to propose additional actions that are necessary to prevent an expansion of the current litigation.

The violations include:
1 "Section" refers to the Govemment Code, except as noted.

04/12/2022 Item No.17.

Rafferty to Freemantle, Brown Act Demand Letter, February 22,2022, page 2

1.. The failure to make available all non-exempt documents relating to council districts that were distributed to the council in advance of its February 1L,2022 meeting. A copy is attached to the electronic transmission of this letter,

2. The redaction of the time and date of electronic communications to conceal when they were received and when they became subject to public disclosure.

3. The continuing failure, even after the meeting, to allow inspection of writings subject to $54957.5, including the data files presented at those meetings.

4. The repeated failure to notify the public of the change in procedure for public comment, which no longer provided for text messages to be relayed by the City Manager.

These violations are exceptionally flagrant.2
As we noted in previous letters, the failure to produce records distributed to the Board invalidates actions taken on February 8 and February 15,2022, and made it inappropriate to continue the hearing to February 22,2022. the documents were not made available in time for the public to make meaningful comment on the selection of the preferred maps. This letter demands that you cure and correct the violations by restarting any hearing process. Since that is no longer possible given statutory deadlines, these actions should be invalidated'
This letter also demands that the City cease and desist from failing to make Brown Act documents available to the public at the meeting, which includes posting them in the case of a teleconferenced meeting and making them available on paper in the council chambers.

Thank you for your Prompt attention to these matters.

Sincerely,
/etn'g'Y
Scott J. Rafferty
2 A.8.361 recently amended Section 54953(e)(2)(B) to require that In eadr instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted, the legislative body shall also give notice of the means by which members of the public may access the meeting and offer public comment.

Numerous public postings referring to this meeting failed to advise members of the public that they could no longer telephone Ms. Anderson and have her relay the comments. This caused extensive confusion and showed deliberate disregard for unambiguous instructions from the Legislature.

04/12/2022 Item No.17.

ATTAGHMENT 2

04/12/2022 Item No.17.

April13,2022
Scott J. Rafferty
1913 Whitecliff Court
Walnut Creek, CA94596
Re: Brown Act Cease and Desist Letter
To Mr. Rafferty:

The Folsom City Council has received your cease-and-desist letter dated March 24,2022, alleging that the following described past action of the legislative body violates the Ralph M.

Brown Act:

1. The failure to make available all non-exempt documents relating to council districts that were distributed to the council in advance of its February 11,2022, meeting. A copy is attached to the electronic transmission of this letter.

2. The redaction of the time and date of electronic communications to conceal when they were received and when they became subject to public disclosure.

3. The continuing failure, even after the meeting, to allow inspection of writings subject to 554957.5, including the data files presented at those meetings.

4. The repeated failure to notifu the public of the change in procedure for public comment, which no longer provided for text messages to be relayed by the City Manager.

While the Folsom City Council strongly disputes and denies those allegations, in order to avoid unnecessary litigation and without admitting any violation of the Ralph M. Brown Act, the Folsom City Council hereby unconditionally commits that it will cease, desist from, and not repeat the challenged past action as described above.

04/12/2022 Item No.17.

The Folsom City Council may rescind this commitment only by a majority vote of its membership taken in open session at a regular meeting and noticed on its posted agenda as ooRescission of Brown Act Commitment." You will be provided with written notice, sent by any means or media you provide in response to this message, to whatever address or addresses you speciff, of any intention to consider rescinding this commitment at least 30 days before any such regular meeting. In the event that this commitment is rescinded, you will have the right to conrmence legal action pursuant to subdivision (a) of Section 54960 of the Government Code.

That notice will be delivered to you by the same means as this commitment or may be mailed to an address that you have designated in writing.

Very truly yours,
Kerri Howell, Mayor
2

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04/12/2022 Item No.17.