1 Agenda
City Council Regular and Joint Meeting
City Council Chambers | 50 Natoma Street, Folsom CA 95630 April 12, 2022
6:30 PM
Welcome to Your City Council Meeting
We welcome your interest and involvement in the city’s legislative process. This agenda includes information about topics coming before the City Council and the action recommended by city staff. You can read about each topic in the staff reports, which are available on the city website and in the Office of the City Clerk. The City Clerk is also available to answer any questions you have about City Council meeting procedures.
Participation
If you would like to provide comments to the City Council, please:
Fill out a blue speaker request form, located at the back table. Submit the form to the City Clerk before the item begins. When it’s your turn, the City Clerk will call your name and invite you to the podium. Speakers have three minutes, unless the presiding officer (usually the mayor) changes that time.
Reasonable Accommodations
In compliance with the Americans with Disabilities Act, if you are a person with a disability and you need a disability-related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (916) 461-6035, (916) 355-7328 (fax) or [email protected]. Requests must be made as early as possible and at least two full business days before the start of the meeting.
How to Watch
The City of Folsom provides three ways to watch a City Council meeting:
In Person Online On TV
City Council meetings take place at
City Hall, 50 Natoma Street
Watch the livestream and replay past
meetings on the city website,
www.folsom.ca.us
Watch live and replays of meetings on
Sac Metro Cable TV, Channel 14
More information about City Council meetings is available at the end of this agenda
2 City Council Regular and Joint Meeting
Folsom City Council Chambers
50 Natoma Street, Folsom, CA
www.folsom.ca.us
Tuesday, April 12, 2022 6:30 PM
Kerri Howell, Mayor
Rosario Rodriguez, Vice Mayor Sarah Aquino, Councilmember YK Chalamcherla, Councilmember Mike Kozlowski, Councilmember
REGULAR CITY COUNCIL AGENDA
Members of the public wishing to participate in this meeting via teleconference may participate either online or by telephone via WebEx.
Meeting Number: 2558 067 1376
Meeting Password: 04 12 2022
Join the meeting by WebEx online:
https://cityoffolsom.my.webex.com/cityoffolsom.my/j.php?MTID=m271616889508f61dfe71ca5236e31755
To make a public comment using the WebEx online platform, please use the “raise hand” feature at the bottom center of the screen. Please make sure to enable audio controls once access has been given by the City Clerk to speak. Please wait to be called upon by the City Clerk.
Join the meeting by WebEx telephone: Dial 1-415-655-0001 To make a public comment by phone, please press *3 to raise your hand. Please make sure to enable audio controls by pressing *6 once access has been given by the City Clerk to speak. Please wait to be called upon by the City Clerk.
Verbal comments via virtual meeting must adhere to the principles of the three-minute speaking time permitted for public comment at City Council meetings.
CALL TO ORDER
ROLL CALL:
Councilmembers: Kozlowski, Rodriguez, Aquino, Chalamcherla, Howell
3 The City Council has adopted a policy that no new item will begin after 10:30 p.m. Therefore, if you are here for an item that has not been heard by 10:30 p.m., you may leave, as the item will be continued to a future Council Meeting.
PLEDGE OF ALLEGIANCE
AGENDA UPDATE
BUSINESS FROM THE FLOOR:
Members of the public are entitled to address the City Council concerning any item within the Folsom City Council's subject matter jurisdiction. Public comments are limited to no more than three minutes. Except for certain specific exceptions, the City Council is prohibited from discussing or taking action on any item not appearing on the posted agenda.
SCHEDULED PRESENTATIONS:
1. Proclamation of the Mayor of the City of Folsom Encouraging the Community to Become Involved in Arbor Day
2. Presentation on the Draft Active Transportation Plan (ATP) and Public Comment CONSENT CALENDAR:
Items appearing on the Consent Calendar are considered routine and may be approved by one motion. City Councilmembers may pull an item for discussion.
3. Approval of March 8, 2022 Special Meeting Workshop Minutes
4. Approval of March 8, 2022 Special/Regular Meeting Minutes
5. Approval of March 22, 2022 Special/Regular Meeting Minutes
6. Resolution No. 10828 - A Resolution Authorizing the City Manager to Execute an Agreement for Food and Beverage Concession at Lembi Community Park with the Folsom Athletic Association
7. Resolution No. 10829 – A Resolution Authorizing the City Manager to Execute Amendment No. 2 to the Agreement (Contract No.172-21 18-009) Between the City of Folsom and the Sacramento Society for the Prevention of Cruelty to Animals for Shelter Services
8. Resolution No. 10832 - A Resolution Authorizing the City Manager to Execute a Contract Amendment with R.E.Y. Engineers, Inc. for the Riley Street Sidewalk Feasibility Study and Appropriation of Funds
9. Resolution No. 10833 – A Resolution Authorizing the City Manager to Execute an Agreement with Sacramento County for Reduced Tipping Fees for Municipal Solid Waste at Kiefer Landfill
10. Resolution No. 10834 – A Resolution Authorizing the City Manager to Execute an Agreement with Sacramento County for Household Hazardous Waste Collection Program Services Provided to Folsom Residents at Sacramento County Owned Facilities
11. Resolution No. 10836 – A Resolution Amending Resolution No. 10479 to Update the Building Valuation Data and Clarify its Use
12. Resolution No. 10837 - A Resolution Authorizing the City Manager to Execute an Agreement with Brightview Holdings DBA Brightview Tree Care Services for Shaded Fuel Break Creation and Ladder Fuel Removal
4 CONVENE JOINT MEETING
JOINT CITY COUNCIL AGENDA
JOINT CITY COUNCIL / FOLSOM RANCH FINANCING AUTHORITY MEETING ROLL CALL: Council / Board Members: Kozlowski, Rodriguez, Aquino, Chalamcherla, Howell PUBLIC HEARING:
13. Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No.1 Special Tax Revenue Bonds, Series 2022 a. Resolution No. 10835 – A Resolution of the City Council of the City of Folsom Authorizing the Issuance of the City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Bonds, Series 2022, the Execution of a First Supplemental Indenture Providing therefor, Authorizing the Execution of a Local Obligation Purchase Contract, and Authorizing Necessary Actions and the Execution of other Documents in Connection therewith b. Resolution No. 008-Folsom Ranch FA – A Resolution of the Governing Board of the Folsom Ranch Financing Authority Authorizing the Issuance, Sale and Delivery of not to exceed $17,000,000 Aggregate Principal Amount of City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022; Approving the Form and Substance of a Trust Agreement, Authorizing Modifications thereof and Execution and Delivery as Modified; Approving a Preliminary Official Statement, Authorizing Changes thereto and Execution and Delivery thereof and of an Official Statement to be Derived therefrom; Approving a Local Obligation Purchase Contract and a Bond Purchase Contract and Execution and Delivery of each; and Authorizing Related Actions Necessary to Implement the Proposed Financing
ADJOURNMENT
RECONVENE CITY COUNCIL MEETING
OLD BUSINESS:
14. Resolution No. 10838 - A Resolution Authorizing the City Manager to Execute an Updated Fiber Network Installation Agreement with SiFi Networks Folsom LLC for the Installation of a Fiber Optic Network in the City of Folsom
15. Consideration of Expenditure of Funds from the American Rescue Plan Act and Direction to Staff
16. 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 NEW BUSINESS:
17. Consideration of Letter in Response to Demand Letter Received from Scott Rafferty Regarding Alleged Non-Compliance with the Brown Act
CITY MANAGER REPORTS:
COUNCIL COMMENTS:
ADJOURNMENT
5 NOTICE: Members of the public are entitled to directly address the City Council concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address Council on an issue, which is on this agenda, please complete a blue speaker request card, and deliver it to a staff member at the table on the left side of the Council Chambers prior to discussion of the item. When your name is called, stand to be recognized by the Mayor and then proceed to the podium. If you wish to address the City Council on any other item of interest to the public, when the Mayor asks if there is any “Business from the Floor,” follow the same procedure described above. Please limit your comments to three minutes or less.
NOTICE REGARDING CHALLENGES TO DECISIONS: Pursuant to all applicable laws and regulations, including without limitation, California Government Code Section 65009 and or California Public Resources Code Section 21177, if you wish to challenge in court any of the above decisions (regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, the public hearing.
As presiding officer, the Mayor has the authority to preserve order at all City Council meetings, to remove or cause the removal of any person from any such meeting for disorderly conduct, or for making personal, impertinent, or slanderous remarks, using profanity, or becoming boisterous, threatening or personally abusive while addressing said Council, and to enforce the rules of the Council.
PERSONS INTERESTED IN PROPOSING AN ITEM FOR THE CITY COUNCIL AGENDA S HOULD CONTACT A MEMBER OF THE CITY COUNCIL.
The meeting of the Folsom City Council is being telecast on Metro Cable TV, Channel 14, the Government Affairs Channel, and will be shown in its entirety on the Friday and Saturday following the meeting, both at 9 a.m. The City does not control scheduling of this telecast and persons interested in watching the televised meeting should confirm this schedule with Metro Cable TV, Channel 14. The City of Folsom provides live and archived webcasts of regular City Coun cil meetings. The webcasts can be found on the online services page of the City's website www.folsom.ca.us.
In compliance with the Americans with Disabilities Act, if you are a person with a disability and you need a disability-related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (916) 461-6035, (916) 355-7328 (fax) or [email protected]. Requests must be made as early as possible and at least two full business days before the start of the meeting.
Any documents produced by the City and distributed to the City Council regarding any item on this agenda will be made available at the City Clerk’s Counter at City Hall located at 50 Natoma Street, Folsom, California and at the Folsom Public Librar y located at 411 Stafford Street, Folsom, California during normal business hours.
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PROCLAMATION
OF THE MAYOR OF THE CITY OF FOLSOM
ENCOURAGING THE COMMUNITY TO BECOME INVOLVED
in
ARBOR DAY
; WHEREAS, in 1872, J. Sterling Morton proposed that a special day be set aside for the planting of trees; and
WHEREAS, in 1907, President Theodore Roosevelt proclaimed this as a national time to 1 plant trees; and
WHEREAS, Arbor Day is now observed throughout the nation and the world and will be celebrated in Folsom on Saturday, April 23, 2022; and
WHEREAS, trees can reduce the erosion of our precious topsoil by wind and water, cut , heating and cooling costs, moderate the temperature city wide, catch rainwater, clean the air, produce life-giving oxygen, provide habitat for wildlife, and protect us from the harmful effects of the sun on our skin; and WHEREAS, trees are a renewable resource, giving us paper, wood for our homes and furniture, and sequestering air and soil-borne carbon; and WHEREAS, trees in our city increase property values, enhance the economic vitality of business areas, and beautify our community; and
WHEREAS, trees, wherever they are planted, are a source of joy and spiritual renewal; and WHEREAS, we will be engaging in tree care and maintenance activities of young trees along Folsom_ trails in celebration of Arbor Day.
NOW, THEREFORE, I, Kerri Howell, Mayor of the City of Folsom, do hereby proclaim April 23rd, 2022 as Arbor Day in the City of Folsom, and urge all citizens to celebrate Arbor Day by supporting efforts to protect our trees and woodlands, planting a tree of their own or joining in our City Arbor Day event and;
FURTHER, I urge all citizens to enjoy the cool shade of trees and promote the well-being of this and future generations as Folsom becomes a Tree City USA for the sixteenth year in a row.
PROCLAIMED this 12th day of April 2022.
Attest:
Kerri M. Howell, MAYOR Christa Freemantle, CITY CLERK
04/12/2022 Item No.1.
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04/12/2022 Item No.1.
Folsom City Council
Staff Re ort
MEETING DATE: 4/12/2022
AGENDA SECTION: Scheduled Presentations
SUBJECT: Presentation on the Draft Active Transportation Plan (ATP) and Public Comment
FROM: Parks and Recreation Department
BACKGROUND/ ISSUE
Parks and Recreation Department and Alta Planning + Design will present an overview of the City ofFolsom's Draft ATP and will receive public comment.
Submitted,
Lorraine Poggione, Parks and Recreation Director
1
04/12/2022 Item No.2.
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04/12/2022 Item No.2.
Book 76 Page204
Folsom City Council
March 8,2022
Gity Gouncil Special Meeting Workshop
MINUTES
Tuesday, March 8,20221 :00 PM
CALL TO ORDER
The special City Council meeting was called to order at 1:01 p.m. with Mayor Kerri Howell presiding.
PLEDGE OF ALLEGIANCE
The pledge of allegiance was recited.
AGENDA UPDATE
ROLL GALL:
Councilmembers Present Sarah Aquino, Councilmember
Rosario Rodriguez, Vice Mayor
Kerri Howell, Mayor
Councilmembers Absent: YK Chalamcherla, Councilmember (arrived at 1:04 pm) Mike Kozlowski, Councilmember
Participating Staff: City Manager Elaine Andersen
City Attorney Steve Wang
City Clerk Christa Freemantle
Finance Director/CFO Stacey Tamagni
Human Resources Manager Allison Garcia
Fire Chief Ken Cusano
Police Chief Rick Hillman
Communications Director Christine Brainerd
WORKSHOP:
1. Council Workshop on Developing a Strategy to Close the City's Future Funding Gap/lntroduction to Strategic Planning and Direction to Staff City Manager Elaine Andersen introduced the item and summarized what would take place at this meeting.
DRAFT - Not fficial antil approued bit the Ci4t Council Page 11 04/12/2022 Item No.3.
,3,::[t,f;?;,"'.i
March 8,2022
Finance Director/Chief Financial Officer Stacey Tamagni made a presentation and introduced consultant Tom Adams who responded to questions from the City Council.
Human Resources Manager Allison Garcia provided a summary of employee compensation in response to City Council comments at previous meetings. She responded to questions from the City Council with clarification provided by City Manager Elaine Andersen' Fire Chief Ken Cusano made a presentation regarding Fire Department use of overtime and fire response times. He responded to questions from the city council.
Police Chief Rick Hillman made a presentation regarding Police Department use of overtime and police response times. He responded to questions from the City Council' City Manager Elaine Andersen made a presentation regarding strategic planning and led the City Council through strategic planning exercises.
Ms. Andersen thanked the City Council for their thoughtful participation in the strategic planning exercises, and advised Council Members that she would oversee a community engagement effort to aiso solicit feedback from the community as to their vision for Folsom's future. She further advised that she would then return to the City Council with a draft strategic policy agenda for the Council's consideration.
ADJOURNMENT
The meeting was adjourned at 3:58 p.m
SUBMITTED BY
Christa Freemantle, City Clerk
ATTEST:
Kerri Howell, Mayor
DRAFT - Not fficial until Eproued fu the Ciry Council Page 12 04/12/2022 Item No.3.
Book 76 Page 206
Folsom City Council
March 8,2022
Gity Gouncil Special Meeting
MINUTES
Tuesday, March 8,2022 5:30 PM
CALL TO ORDER
The special City Council meeting was called to order at 5:30 p.m. with Mayor Kerri Howell presiding.
ROLL CALL:
Councilmembers Present: Sarah Aquino, Councilmember
YK Chalamcherla, Councilmember
Mike Kozlowski, Councilmember
Rosario Rodriguez, Vice Mayor
Kerri Howell, Mayor
Councilmembers Absent.
Participating Staff:
None
City Manager Elaine Andersen
City Attorney Steve Wang
City Clerk Christa Freemantle
ADJOURNMENT TO CLOSED SESSION FOR THE FOLLOWING PURPOSES:
1. Conference with Legal Counsel - Anticipated Litigation - Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(2): Allegation of Brown Act violation by Scott Rafferty
2. Conference with Legal Counsel - Existing Litigation - Pursuant to Government Code section 54956.9(d)(1): The Heritage Preservation League of Folsom v. City of Folsom, Sacramento County Superior Court Case No. 34-2022-80003820
3. Conference with Legal Counsel - Anticipated Litigation - Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(2): One potential case Speaker Scott Rafferty addressed the City Council regarding closed session items Motion by Councilmember Mike Kozlowski, second by Councilmember Sarah Aquino to adjourn to Glosed Session for the above referenced items. Motion carried with the following roll call vote:
DRAFT - Not fficial until approued fui the Citl Council Page 13 04/12/2022 Item No.4.
AYES:
NOES:
ABSENT:
ABSTAIN:
Book 76 Page207
Folsom City Council
March 8,2022
Gouncilmember(s): Ghalamcherla, Kozlowski Rodriguez, Aquino, Howell Councilmember(s): None
Councilmember(s): None
Councilmember(s): None
RECONVENE
City Attorney Steve Wang announced that no final action was taken during Closed Session
ADJOURNMENT
The meeting was adjourned to the regular City Council meeting at 6:30 p.m
SUBMITTED BY
Christa Freemantle, City Clerk
ATTEST:
Kerri Howell, Mayor
DRAFT - Not ffida/ until approued b.y the Ci4t Council
04/12/2022 Item No.4.
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Folsom City Council
March 8,2022
City Council Regular Meeting
MINUTES
Tuesday, March 8,2022 6:30 PM
CALL TO ORDER
The regular City Council meeting was called to order at 6:31 pm with Mayor Kerri Howell presiding.
ROLL GALL:
Councilmembers Present Sarah Aquino, Councilmember
YK Chalamcherla, Councilmember
Mike Kozlowski, Councilmember
Rosario Rodriguez, Vice Mayor
Kerri Howell, Mayor
Councilmembers Absent None
Participating Staff: City Manager Elaine Andersen
City Attorney Steve Wang
City Clerk Christa Freemantle
Principal Planner Desmond Parrington
Community Development Director Pam Johns
Police Chief Rick Hillman
Police Detective Sergeant Lou Wright
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited
AGENDA UPDATE
City Clerk Christa Freemantle announced that items 10 and 11 had revised and additional information.
BUSINESS FROM THE FLOOR:
The following speakers addressed the City Council
DRAFT - Not fficial until approued @ tbe Citl Council Page 15 04/12/2022 Item No.4.
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1. Michael Harris regarding Juneteenth
2. Sarah Norberg regarding Juneteenth
3. Margie Donvan regarding online accessibility (via WebEx teleconference)
4. Hubbert Booze regarding the permitting process
SCHEDULED PRESENTATIONS:
1. Proclamation of the Mayor of the City of Folsom Proclaiming the Month of March 2022 as American Red Cross Month in the City of Folsom
Mayor Kerri Howell presented the proclamation to Chair of the Board and American Red Cross Gold Country Region, Eileen Reynolds and the Chief Executive Officer, American Red Cross Gold Country Region Gary Strong.
CONSENT GALENDAR:
Items appearing on the Consent Calendar are considered routine and may be approved by one motion. City Councilmembers may pull an item for discussion.
2. Approval of February 15,2022 Special Meeting Minutes
3. pulled for comment
4. Resolution No. 10813 - A Resolution Authorizing the City Manager to Execute Amendment No. 2 to the Agreement (Contract No. 173-21 14-092) with Water Works Engineers, LLC for Fixed Network and Water Consumption Database As-Needed Support
5. Resolution No. 10814 - A Resolution Authorizing the City Manager to Execute a Construction Agreement with Gabe Mendez, lnc. for the Scott Road Realignment Project, Project No. PW2201
6. Resolution No. 10815 - A Resolution Authorizing the City Manager to Execute an Engineering Consultant Agreement with Salaber Associates, lnc. for the Scott Road Realignment Project, Project No. PW2201
7 . Resolution No. 10816 - A Resolution Authorizing the City Manager to Execute a Contract Change Order for the Pedestrian/Bike Bridge with Goodfellow Brothers, LLC (Contract No. 174-2120-060) forthe Capital SouthEast Connector Segment D3(A), Project No. PW1607, Federal Project No. 5288(046)
L Resolution No. 10817 - A Resolution Authorizing the City Manager to Execute a Contract Change Orderforthe Oil lndex lncrease with Goodfellow Brothers, LLC (Contract No. 174- 21 20-060) for the Capital Southeast Connector Segment D3(A), Project No. PW1607, Federal Project No. 5288(046)
g. Resolution No. 10818 - A Resolution of the City of Folsom Opposing California Statewide lnitiative No. 21-0042A1 Related to Tax Measures
DRAFT - Not oficial until approued fu the CiE Council Page 16 04/12/2022 Item No.4.
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Motion by Vice Mayor Rosario Rodriguez, second by Gouncilmember YK Ghalamcherla to approve Consent Galendar items 2 and 4'9.
Motion carried with the following roll call vote:
AYES: Gouncilmember(s): Aquino, Ghalamcherla, Kozlowski, Rodriguez, Howell NOES: Councilmember(s): None
ABSENT: Councilmember(s): None
ABSTAIN: Councilmember(s): None
GONSENT CALENDAR ITEM PULLED FOR GOMMENT:
3. Resolution No. 10804 - A Resolution Establishing a Landmark Tree Designation for an lnterior Live Oak Tree on the California lndependent System Operator Corporation Property, lmmediately South of the lron Point Road/Outcropping Way lntersection Councilmember Sarah Aquino explained that she pulled this item to comment that she appreciated the map that was included in the staff report and requested that the City Manager bring additional nominations for landmark trees.
The following speaker addressed the City Council:
1. Bruce Cline
Motion by Gouncilmember Sarah Aquino, second by Councilmember Mike Kozlowskito approve Resolution No. 10804.
Motion carried with the following roll call vote:
AYES: Councilmember(s): Aquino, Chalamcherla, Kozlowski, Rodriguez, Howell NOES: Councilmember(s): None
ABSENT: Councilmember(s): None
ABSTAIN: Gouncilmember(s): None
PUBLIG HEARING:
10. Public Hearing No. 5 Under the California Voting Rights Act - Ordinance No. 1324 - An Ordinance of the City of Folsom Establishing a By-District Election Process in Five Council Districts Pursuant to California Elections Code Section 10010 and Adding New Sections to Chapter 2.06 of the Folsom Municipal Code to Provide for City Council Election Districts (lntroduction and First Reading)
City Attorney Steve Wang made a presentation detailing the history and purpose of the By- District Election Process.
The public hearing was opened. The following speakers addressed the City Council
1. Cheryl Davis
DR /1FT - Not fficial until approued fu the Ciry Coundl
04/12/2022 Item No.4.
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2. Muriel Brounstein (via WebEx teleconference)
3. Scott Rafferty (via WebEx teleconference)
There being no further comments, the public hearing was closed.
Motion by Gouncilmember Mike Kozlowski, second by Vice Mayor Rosario Rodriguez to introduce and hold the first reading of Ordinance No. 1324.
Motion carried with the following roll callvote:
AYES: Councilmember(s): Aquino, Chalamcherla, Kozlowski, Rodriguez, Howell NOES: Gouncilmember(s): None
ABSENT: Gouncilmember(s): None
ABSTAIN: Gouncilmember(s): None
11. Ordinance No. 1325 - An Ordinance Repealing and Re-Enacting Chapter 17.61 of the Folsom Municipal Code Pertaining to Home Occupations (lntroduction and First Reading) Principal Planner Desmond Parrington made a presentation and responded to questions from the City Council. Police Chief Rick Hillman and Detective Sergeant Lou Wright responded to questions from the City Council regarding firearms. Community Development Director Pam Johns provided clarification.
The public hearing was opened.
The following speakers addressed the City Council:
1. Jennifer Jacobs
2. William Sobotta
3. Rory Hanley
4. Heather Hanley
5. Khaled Aboutaleb
6. James Ensor
7. Peggy Blair
8. Leah Schering
9. Jaime Baker
10. Sherri Berry
11. Gail Back
12. Cheryl Davis
13. Rosemary Yoshikawa
14. William Davis (comments read by Cheryl Davis)
15. Tressa Cooper
1 6. Cassandra Whetstone
17. Ruth Anderson
18. Donna McGury
19, Bruce Cline
20. Roger Smith (comments ready by Bruce Cline)
21. Loretta Hettinger
22.Mark Sabin
DRAFT - Not official until approued b1 the Ci4t Countil Page 18 04/12/2022 Item No.4.
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23.Tim McMahon
24. Leslie Lindgren
25. Jennifer Hageman
26. Cynthia Shallit
27. James O'Brien
28. Catherine O'Mordha
29. Lynn Bonzell
30. Danielle Sivalingam
31. John Wright
32. Elyse MacKenzie
33. Michael Reynolds
34. Snehal Shah
35. Bill Durstin (via WebEx teleconference)
36. Margie Donovan (via WebEx teleconference)
The public hearing was closed
Mayor Kerri Howell allowed the following speaker to address the City Council
37. Jaya Badiga (via WebEx teleconference)
The City Council discussed the item and asked questions for clarification. Principal Planner Desmond Parrington responded to questions from the City Council with additional clarification provided by City Attorney Steve Wang and Community Development Director Pam Johns.
Motion by Councilmember Sarah Aquino, second by Councilmember Mike Kozlowskito add ammunition manufacture and re-load to the prohibited list, and then to send the proposed ordinance to the Historic District Gommission for their feedback.
The City Council discussed the motion for clarification.
Amended Motion by Gouncilmember Sarah Aquino, second by Councilmember Mike Kozlowski to take the revised staff report with two changes: add ammunition manufacture and re-load to the prohibited list, in section 17.6{.055 titled Appeals, wherever it reads "Planning Commission," change the language to "Planning Commission or Historic District Gommission" and send it to the Historic District Gommission for feedback.
Motion carried with the following roll call vote:
AYES: Gouncilmember(s): Aquino, Ghalamcherla, Kozlowski, Rodriguez, Howell NOES: Gouncilmember(s): None
ABSENT: Gouncilmember(s): None
ABSTAIN: Gouncilmember(s): None
NEW BUSINESS:
12. Consideration of Letter in Response to Demand Letter Received from Scott Rafferty Regarding Alleged Non-Compliance with the Brown Act
DRAFT - Not fficial until approued bjt the Ci4t Council Page 19 04/12/2022 Item No.4.
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City Attorney Steve Wang introduced the item
Motion by Gouncilmember Mike Kozlowski, second by Gouncilmember YK Ghalamcherla to approve the proposed reply letter in response to the demand letter received from Scott Rafferty.
Motion carried with the following roll call vote:
AYES: Gouncilmember(s): Aquino, Chalamcherla, Kozlowski, Rodriguez, Howell NOES: Councilmember(s): None
ABSENT: Gouncilmember(s): None
ABSTAIN: Gouncilmember(s): None
CITY MANAGER REPORTS:
City Manager Elaine Andersen announced the launch of new software eTrakit for the Community Development Department. She spoke of the upcoming Friends of the Folsom Library bi-annual book sale and the completion of the Genetech project which allows the City to remotely monitor traffic signal enclosures.
CITY COUNCIL GOMMENTS:
Vice Mayor Rosario Rodriguez shared her experience with the new commercial organic food waste recycling program. She commended City Manager Elaine Andersen and staff on the strategic planning budget session held earlier in the day. She commented about the recent SiFi project in Rancho Cordova and mentioned the upcoming Foothills Wine Festival.
Councilmember YK Chalamcherla congratulated Public Works Director Mark Rackovan and his staff for implementing new technologies. He asked City Manager Elaine Andersen for an update regarding fiber network systems in Folsom.
Councilmember Sarah Aquino spoke of the newly formed City Council subcommittee to inventory and evaluate city properties and said she would report back after they meet.
Councilmember Mike Kozlowski commented regarding a recent SACOG meeting and congratulated the Vista track team on their districtwide wins.
Mayor Kerri Howell encouraged everyone to drive safely and spoke of regional committee meetings.
ADJOURNMENT
There being no further business to come before the Folsom City Council, Mayor Kerri Howell adjourned the meeting at 9:53 pm in honor of those who have lost their lives in Ukraine.
DRAFT - Not ffidal until approued @ the City Council
04/12/2022 Item No.4.
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SUBMITTED BY:
Christa Freemantle, City Clerk
ATTEST:
Kerri Howell, Mayor
DRAFT - Not fficial until approued b.y the Ci4t Council
04/12/2022 Item No.4.
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04/12/2022 Item No.4.
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Folsom City Council
March 22,2022
Gity Gouncil Special Meeting
MINUTES
Tuesday, March 22,2022 6:15 PM
CALL TO ORDER
The special City Council meeting was called to order at 6:15 p.m. with Mayor Kerri Howell presiding.
ROLL GALL:
Councilmembers Present: Sarah Aquino, Councilmember
YK Chalamcherla, Councilmember
Mike Kozlowski, Councilmember
Rosario Rodriguez, Vice Mayor
Kerri Howell, Mayor
Councilmembers Absent:
Participating Staff:
None
City Manager Elaine Andersen
City Attorney Steve Wang
City Clerk Christa Freemantle
ADJOURNMENT TO CLOSED SESSION FOR THE FOLLOWING PURPOSES:
1. Conference with Legal Counsel - Existing Litigation - Pursuant to Government Code section 54956.9(dX1): Faun O'Neel, et al. v. City of Folsom, County of Sacramento, Department of Child, Family and Adult Services, et al., United States District Court for the Eastern District of California Case No. 2:21-CV-02403-WBS-DB
Motion by Gouncilmember Mike Kozlowski, second by Vice Mayor Rosario Rodriguez to adjourn to Closed Session for the above referenced item. Motion carried with the following roll call vote:
AYES: Councilmember(s): Ghalamcherla, Kozlowski Rodriguez, Aquino, Howell NOES: Gouncilmember(s): None
ABSENT: Councilmember(s): None
ABSTAIN: Gouncilmember(s): None
RECONVENE
City Attorney Steve Wang announced that no final action was taken during Closed Session DRAFT - Not fficial until approued bit the Ciry Coundl Page 23 04/12/2022 Item No.5.
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Folsom City Council
March 22,2022
ADJOURNMENT
The meeting was adjourned to the regular City Council meeting at 6:30 p'm SUBMITTED BY:
Christa Freemantle, City Clerk
ATTEST
Kerri Howell, Mayor
DRAFT - Not oficial unti/ Eprouad b1 the Ci4t Council Page 24 04/12/2022 Item No.5.
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March 22,2022
City Gouncil Regular Meeting
MINUTES
Tuesday, March 22,2022 6:30 PM
CALL TO ORDER
The regular City Council meeting was called to order at 6:31 pm with Mayor Kerri Howell presiding.
ROLL GALL:
Councilmembers Present Sarah Aquino, Councilmember
YK Chalamcherla, Councilmember
Mike Kozlowski, Councilmember
Rosario Rodriguez, Vice Mayor
Kerri Howell, Mayor
Councilmembers Absent:
Participating Staff:
None
City Manager Elaine Andersen
City Attorney Steve Wang
City Clerk Christa Freemantle
Police Chief Rick Hillman
Community Development Director Pam Johns
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited
AGENDA UPDATE
City Attorney Steve Wang announced that item 4 had additional information.
BUSINESS FROM THE FLOOR:
The following speakers addressed the City Council:
1. Chandra Vinnakota regarding an invitation to the City Council for an upcoming event DRAFT - Not oficial antil approued bit the Ciry Council Page 25 04/12/2022 Item No.5.
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Folsom City Council
March 22,2022
2. Judi Alexander thanked the City of Folsom for funding of the Hart of Folsom transitional housing program
SCHEDU LED PRESENTATIONS:
1. Proclamation of the Mayor of the City of Folsom Proclaiming April 10-16,2022 as National Public Safety Telecommunicators Week in the City of Folsom Mayor Kerri Howell presented the proclamation to 2021 Dispatcher of the Year Bryn Miller and Police Chief Rick Hillman.
2. Resolution of Commendation Honoring the Folsom High School Bulldogs FootballTeam for an Outstanding Season
Councilmember Mike Kozlowski presented the resolution to Director of Athletics and Physical Education Peter Maroon.
CONSENT CALENDAR:
Items appearing on the Consent Calendar are considered routine and may be approved by one motion. City Councilmembers may pull an item for discussion.
3. Approval of February 22,2022 Special/Regular Meeting Minutes
4. Pulled for discussion
S. Ordinance No. 1324 - An Ordinance of the City of Folsom Establishing a By-District Election Process in Five Council Districts Pursuant to California Elections Code Section 10010 and Adding New Sections to Chapter 2.06 of the Folsom Municipal Code to provide for City Council Election Districts (Second Reading and Adoption)
6. Resolution No. 10819 - A Resolution Authorizing the City Manager to Execute Amendment No. 1 to the Agreement (Contract No.173-21 19-066) with Zenner USA, lnc. for Fixed Network Data Management, Maintenance, License and Purchasing Services and Appropriation of Funds
7 . Resolution No. 10820 - A Resolution Authorizing the City Manager to Execute Contract Change Order No. 1 with Caggiano General Engineering, lnc. (Contract No. 174-2121- Oag) for the Construction of the Water System Rehabilitation Project No. 2 and Appropriation of Funds
8. Resolution No. 10821 - A Resolution Authorizing the City Manager to Execute a Subdivision lmprovement Agreement and Accept Offers of Dedication for the Mangini Ranch Phase i C ttortfr Village No. 1 Subdivision, and Approval of the Final Map for the Mangini Ranch Phase 1C North Village No. 1 Subdivision
g. Resolution No. 10822 - A Resolution Authorizing the City Manager to Execute a Subdivision lmprovement Agreement and Accept Offers of Dedication for the Mangini DRAFT - Not official until approued @ the Ci4t Coancil Page 26 04/12/2022 Item No.5.
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March 22,2022
Ranch Phase 1C North Village No. 2 Subdivision, and Approval of the Final Map for the Mangini Ranch Phase 1C North Village No. 2 Subdivision
10. Resolution No. 10823 - A Resolution Authorizing the City Manager to Execute a Subdivision lmprovement Agreement and Accept Offers of Dedication for the Mangini Ranch Phase 1C North Village No. 3 Subdivision, and Approval of the Final Map for the Mangini Ranch Phase 1C North Village No. 3 Subdivision
11. Resolution No. 10824 - A Resolution Authorizing the City Manager to Execute a Subdivision lmprovement Agreement and Accept Offers of Dedication for the Toll Brothers at Folsom Ranch Phase 1D Subdivision, and Approval of the Final Map for the Toll Brothers at Folsom Ranch Phase 1D Subdivision
'12. Resolution No. 10825 -A Resolution Directing the Preparation of Engineer's Reportfor the Following Landscaping and Lighting Districts for Fiscal Year 2022-2023 American River Canyon North, American River Canyon North No. 2, American River Canyone North No. 3, Blue Ravine Oaks, Blue Ravine Oaks No. 2, Briggs Ranch, Broadstone, Broadstone No. 4, Broadstone Unit No. 3, Cobble Ridge, Cobble Hills Ridge ll/Reflections ll, Folsom Heights, Folsom Heights No. 2, Hannaford Cross, Lake Natoma Shores, Los Cerros, Natoma Station, Natoma Valley, Prairie Oaks Ranch, Prairie Oaks Ranch No. 2, Prospect Ridge, Sierra Estates, Silverbrook, Steeplechase, The Residences at American River Canyon, The Residences at American River Canyon ll, Willow Creek Estates East, Willow Creek Estates East No. 2, Willow Creek Estates South, and Willow Springs
13. Resolution No. 10826 - A Resolution authorizing the City Manager to Execute an Agreement with Westnet, lnc. for Fire Station No. 37 First-ln Fire Station Alerting System Upgrades
14. Resolution No. 10827 - A Resolution Authorizing the City Manager to Execute a Contract with First Serve Productions, lnc. for the Sports Courts Acrylic Resurfacing Project Motion by Vice Mayor Rosario Rodriguez, second by Gouncilmember Mike Kozlowskito approve items {-3 and 5-14 ol Gonsent Galendar.
Motion carried with the following roll call vote:
AYES: Gouncilmember(s): Chalamcherla, Kozlowski, Rodriguez, Aquino, Howell NOES: Councilmember(s): None
ABSENT: Councilmember(s): None
ABSTAIN: Gouncilmember(s): None
GONSENT CALENDAR ITE PULLED FOR COMMENT:
4. 2021General PIan Annual Progress Report, lncluding the Housing Element Annual Progress Report
Councilmember Sarah Aquino commented regarding cultural resources inventory, noise concerns, wildfires, the Corporation Yard and the River District.
DRAFT - Not fficial until apprnaed fui the Citjt Coundl Page 27 04/12/2022 Item No.5.
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Motion by Gouncilmember Sarah Aquino, second by Vice Mayor Rosario Rodriguez to approve the Progress Report.
Motion carried with the following roll call vote:
AYES: Gouncilmember(s): Ghalamcherla, Kozlowski, Rodriguez, Aquino, Howell NOES: Gouncilmember(s): None
ABSENT: Councilmember(s): None
ABSTAIN: Councilmember(s): None
CONVENE J MEETING
JOINT CITY COUNCIL AGENDA
JOINT CITY COUNCIL / FOLSOM REDEVELOPMENT SUCCESSOR AGENCY / FOLSOM
PUBLIC FINANCING AUTHORITY / FOLSOM RANCH FINANGING AUTHORITY / SOUTH OF 50 PARKING AUTHORITY MEETING
ROLL GALL: Gouncil/ Board Members: Ghalamcherla, Kozlowski, Rodriguez, Aquino, Howell
CONSENT NDAR:
15. Approval of the December 14, 2021 Joint City Council / Successor Agency / Public Financing Authority / Folsom South of 50 Parking Authority / Folsom Ranch Financing Authority Meeting Minutes
16. Receive and File the City of Folsom, the Folsom Redevelopment Successor Agency, the Folsom Public Financing Authority, the Folsom Ranch Financing Authority, and the South of 50 Parking Authority Monthly lnvestment Reports for the Month of December 2021 Motion by Gouncilmember Mike Kozlowski, second by Vice Mayor Rosario Rodriguez to approve the Gonsent Galendar.
Motion carried with the following roll call vote:
AYES: Council/Board Member(s): Ghalamcherla, Kozlowski, Rodriguez, Aquino, Howell
NOES: Gouncil/Board Member(s): None
ABSENT: Council/BoardMember(s): None
ABSTAIN: Gouncil/Board Member(s): None
ADJOURNMENT
There being no further business to come before the joint City Council / Redevelopment Successor Agency / Public Financing Authority / Folsom South of 50 Parking Authority / Folsom DRAFT - Not official until approued b1 the Ciry Coancil Page 28 04/12/2022 Item No.5.
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Ranch Financing Authority, the meeting was adjourned to the regular City Council meeting at 6:52 pm.
CITY MANAGER REPORTS:
City Manager Elaine Andersen announced that the City is accepting public comments for the Draft Active Transportation Plan. She discussed the recently approved district map for by- district elections. She spoke about the upcoming registration for Fun Factory and Kindergarten Readiness programs and the League of California Cities membership luncheon hosted by Folsom. She concluded her comments announcing that the City has hired McGuire Research and Godbe Research to conduct surveys on Folsom issues.
CITY GOUNCIL COMMENTS:
Councilmember Sarah Aquino asked that the meeting be adjourned in honor of Jesse Ballard Councilmember Mike Kozlowski discussed items at recent SACOG and Sacramento Transportation Authority meeti ngs.
Councilmember YK Chalamcherla commented regarding meeting with the group Residents Against lllegal Fireworks. He spoke about the upcoming League of California Cities membership luncheon and the organic green waste program.
Vice Mayor Rosario Rodriguez commented regarding the Chamber of Commerce awards event, the upcoming Folsom Wine Festival, concerts series in the Historic District and the National Women's History Month. She urged everyone to support local businesses.
Mayor Kerri Howell discussed the recent Regional Transit meeting and the SouthEast Connector project. She reminded everyone to drive safely and thanked the Police Department staff for recently apprehending suspects breaking into cars.
ADJOURNMENT
There being no further business to come before the Folsom City Council, Mayor Kerri Howell adjourned the meeting at7:04 pm in honor of Jesse Ballard.
SUBMITTED BY:
Christa Freemantle, City Clerk
ATTEST:
Kerri Howell, Mayor
DRAFT - Not fficial wntil approued fu the Ci4t Coundl Page 29 04/12/2022 Item No.5.
This page is intentionally left blank.
04/12/2022 Item No.5.
Folsom City Council
Staff Re ort
MEETING DATE: 4/12/2022
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 10828 - A Resolution Authorizing the City Manager to Execute an Agreement for Food and Beverage
Concession at Lemhi Community Park with the Folsom Athletic Association
FROM: Parks and Recreation Department
RECOMMENDATION I CITY COUNCIL ACTION
Staff recommends the City Council approve Resolution No. 10828 - A Resolution Authorizing the City Manager to Execute an Agreement for Food and Beverage Concession at Lemhi Community Park with the Folsom Athletic Association.
BACKGROUND/ ISSUE
The Folsom Athletic Association (FAA) is a 501 ( c )(3) corporation founded in 1979 to advocate for improved recreational programs and facilities for the residents of Folsom. Some of the City of Folsom' s first recreation programs were run by the FAA through a contract with the City, and the FAA and the City have worked together to create the region's leading recreation programs and facilities. Today, the FAA serves as an umbrella organization to major youth sports organizations within Folsom, working to ensure the success and financial stability of each. The FAA also partners with the City to help support major youth-oriented programs and events such as Spring Eggstravaganza, and CAVE Teen Centers, as well as senior services and programs provided at 48 Natoma Street (Senior and Arts Facility).
Lemhi Community Park is a 50-acre facility consisting of three softball fields, a baseball field, three full-sized soccer fields, tot lots, picnic areas, concession building and office space, and natural open space. Since 1993, as approved by the Folsom City Council, the FAA has contracted with the City to provide food and beverage concession services at Lemhi Community Park.
1
04/12/2022 Item No.6.
On October 9, 2012, the City Council adopted Resolution No. 9064 authorizing the City Manager to execute an agreement with the FAA. As part of that agreement the FAA paid the City one dollar ($1.00) per year for rent. This agreement is up for renewal, and the City would like to amend the agreement to extend the terms and conditions of the agreement for another five years to June 30, 2027.
POLICY/ RULE
The City Council is authorized to approve agreements relating to real property including rental or lease of community facilities.
ANALYSIS
Staff believes that the agreement and its terms are beneficial to both the City and the FAA in terms of providing much needed financial and community support to youth sports, recreation, and city programs.
The proposed agreement calls for the FAA to protect the City's property from damage beyond normal wear and tear. The FAA shall be solely responsible for providing all services, equipment, supplies, and personnel for staffing, administration, and operation of the concession. The FAA shall also procure at its own costs all related licenses, permits, and insurance, and operate the concession in accordance with all applicable laws and regulations.
The FAA will not sell or provide hard liquor.
Each operational year, the FAA and the City shall conduct an inspection of the facility and equipment to ensure all equipment is in working order and the facility is free from any safety hazards or defects.
It is understood that during the term of the agreement, the FAA shall have the exclusive right to operate a food and beverage concession on the Lembi Community Park premises, but that groups using park facilities may sell items of food and other merchandise as long as items are sold during non-operational hours of the FAA concession.
FINANCIAL IMPACT
It is agreed that the FAA will continue to pay the City one dollar ($1.00) per year in rent for up to a five-year term for use of the Lembi Community Park food and beverage concession.
The agreement also requires the City to furnish electric current, telephone service, and domestic service to the FAA in support of the concession site.
ENVIRONMENTAL REVIEW
This action is exempt from environmental review under the California Environmental Quality Act (CEQA).
2
04/12/2022 Item No.6.
ATTACHMENTS
1. Resolution No. 10828 - A Resolution Authorizing the City Manager to Execute an Agreement for Food and Beverage Concession at Lembi Community Park with the Folsom Athletic Association
Submitted,
Lorraine Poggione, Parks & Recreation Director
3
04/12/2022 Item No.6.
RESOLUTION NO. 10828
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT FOR FOOD AND BEVERAGE CONCESSION AT LEMBI
COMMUNITY PARK WITH THE FOLSOM ATHLETIC ASSOCIATION
WHEREAS, the Folsom Athletic Association (FAA) is a 501(c)(3) corporation founded in 1979 to advocate for improved recreational programs and facilities for the residents of Folsom; and
WHEREAS, the FAA serves as an umbrella organization to major youth sports organizations within Folsom, working to ensure the success and financial stability of each; and WHEREAS, the FAA and the City have worked together to create the region's leading recreation programs and facilities, and the FAA partners with the City to help support youth oriented programs and events; and
WHEREAS, since 1993, the FAA has contracted with the City to provide food and beverage concession services at the Lembi Community Park Sports Complex; and WHEREAS, the FAA wishes to continue in this role for the purpose of not only providing snacks and beverages to program participants and attendees, but also to raise funds to support its youth recreation mission; and
WHEREAS, the City seeks to execute an agreement with the FAA for rental of the Lembi Community Park food and beverage concession for one dollar ($1.00) per year for a five year term ending June 30, 2027; and
WHEREAS, the agreement will be in a form acceptable to the City Attorney:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute an Agreement for Food and Beverage Concession at Lembi Community Park with the Folsom Athletic Association.
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
Resolution No. 10828
04/12/2022 Item No.6.
ATTEST:
Christa Freemantle, CITY CLERK
Resolution No. l 0828
04/12/2022 Item No.6.
This page is intentionally left blank.
04/12/2022 Item No.6.
Folsom City Council
Staff Re ort
MEETING DATE: 4/12/2022
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 10829 - A Resolution Authorizing the City Manager to Execute Amendment No. 2 to the Agreement
(Contract No.172-21 18-009) Between the City of Folsom and the Sacramento Society for the Prevention of Cruelty to Animals for Shelter Services
FROM: Police Department
RECOMMENDATION I CITY COUNCIL ACTION
Staff recommends the City Council move to adopt Resolution No. 10829 - A Resolution Authorizing the City Manager to Execute Amendment No. 2 to the Agreement (Contract No. 172-2118-009) Between the City of Folsom and the Sacramento Society for the Prevention of Cruelty to Animals for Shelter Services.
BACKGROUND I ISSUE
The Sacramento Society for the Prevention of Cruelty to Animals (SSPCA) has been providing animal sheltering services to the City of Folsom since July 1, 2015. Through Amendment No. 1 the original contract that expired on December 31, 2020, was extended through December 31, 2021, and has continued to be honored in 2022. Recently, the SSPCA requested that the contract extension be memorialized in writing. Proposed edits to the agreement by both parties are significant and negotiations are underway. In order to ensure that shelter services are provided while negotiations continue, staff seeks approval to authorize the City Manager to extend the terms of the agreement through June 30, 2022. Staff expects to bring a new contract for shelter services to Council before this extension expires.
POLICY/ RULE
In accordance with Chapter 2.36 of the Folsom Municipal Code, professional services costing $66,141 or greater shall be contracted for by the City Council. 1
04/12/2022 Item No.7.
ANALYSIS
The SSPCA is a non-profit organization dedicated to providing shelter for homeless, lost, or abused pets; low-cost spay and neuter services; and public education. The organization's mission is to "foster a loving and compassionate community for animals and people by providing assistance, creating lifelong relationships, and saving lives." The city has successfully worked in partnership with the SSPCA for the city's animal sheltering needs since July 1, 2015, and desires to continue that contractual partnership while negotiations for a new contract continue.
Please note that the SSPCA contract is only for animal sheltering services. The city will continue to provide a full-time Animal Services Officer to serve the community. The Animal Services Officer will continue to enforce state and local laws and ordinances to protect both the animal and human customers, respond to animal issues in the field, and provide public education, among other duties.
FINANCIAL IMPACT
The contract amendment would extend the existing contract from January 1, 2022, through June 30, 2022. The city will continue to pay the rates defined in the 2018 contract. Since this is only a six (6) month extension, these rates should not exceed one-half of$67,492, the amount for a full year term. The SSPCA will accept, at the city's discretion, up to 416 animals during the term. Excluded from this count are any animals brought to the SSPCA for end-of-life care only and animals returned after placement or adoption. During this extension, the city will continue to pay the SSPCA $168 per animal for each animal above the 416 previously listed.
Any city licensing fees, impound fees, penalties, unaltered impound fees, vaccine fees and boarding fee collected or received by the SSPCA would be remitted to the city.
This agreement is included in the FY 2021-22 General Fund (Fund O 10) Budget in the Animal Services Division.
ENVIRONMENTAL REVIEW
This action by the City Council is exempt from environmental review pursuant to Section 15061(b)(3) (Review for Exemption) of the California Environmental Quality Act.
ATTACHMENTS
1. Resolution No. 10829 - A Resolution Authorizing the City Manager to Execute Amendment No. 2 to the Agreement (Contract No.172-21 18-009) Between the City of Folsom and the Sacramento Society for the Prevention of Cruelty to Animals for Shelter Services
2. Amendment No. 1 to Contract No. 172-21 18-009 between the City of Folsom and the SSPCA
3. 2018 original Contract No. 172-21 18-009 between the City of Folsom and the SSPCA Submitted,
Richard D. Hillman, Chief of Police
2
04/12/2022 Item No.7.
ATTACHMENT 1
04/12/2022 Item No.7.
RESOLUTION NO. 10829
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO. 2 TO THE AGREEMENT (CONTRACT NO. 172-2118-009)
BETWEEN THE CITY OF FOLSOM AND THE SACRAMENTO SOCIETY FOR THE
PREVENTION OF CRUELTY TO ANIMALS FOR SHELTER SERVICES
WHEREAS, the Sacramento Society for the Prevention of Cruelty to Animals (SSPCA) is a non-profit organization dedicated to providing shelter for homeless, lost, or abused pets; low cost spay and neuter services; and public education; and WHEREAS, through Amendment No. 1, the original contract that expired on December 31, 2020, was extended through December 31, 2021, and has continued to be honored in 2022; and
WHEREAS, the SSPCA has requested that a contract extension be memorialized in writing while proposed edits to the current agreement and negotiations proceed; and WHEREAS, to ensure that shelter services are provided during contract negotiations, staff seeks approval to authorize the City Manager to extend the terms of the agreement through June 30,2022;and
WHEREAS, funds are budgeted and available in the FY 2021-22 General Fund (Fund 010) Operating Budget in the Animal Services Division; and WHEREAS, the agreement will be in a form acceptable to the City Attorney:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute Amendment No. 2 to the Agreement (Contract No. 172- 21 18-009) between the City of Folsom and the Sacramento Society for the Prevention of Cruelty to Animals for Sheltering Services .
PASSED AND ADOPTED this 12th day of April 2022, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember( s):
Kerri M. Howell, MAYOR
ATTEST:
Christa Freemantle, CITY CLERK
Resolution No. I 0829
Page I of I
04/12/2022 Item No.7.
ATTACHMENT 2
04/12/2022 Item No.7.
CITY OF FOLSOM
AMENDMENT NO. 1
TO
THE CONTRACT BETWEEN THE CITY OF FOLSOM AND THE SACRAMENTO SOCIETY FOR THE
PREVENTION OF CRUELTY TO ANIMALS FOR SHELTER SERVICES
The contract between the City of Folsom and the Sacramento Society for the Prevention of Cruelty to Animals for shelter services dated January 1, 2018, is amended as set forth on Exhibit 1, Amendment to Section 12.01 Term. (Exhibit 1 is attached hereto and incorporated herein by this reference.) Except as amended herein, all other provisions of the contract will remain in full force and effect.
EDF, the parties hereto have caused this Agreement to be duly executed.
City of Folsom, a Municipal Corporation
Date:
By: Elaine Andersen, City Manager
Sacramento Society for the Prevention of Cruelty to
Animals, a California Corporation
~ '-L t"1 lt c 1_,,__c By:K E,.(\t'\ A- L-"'l:-1 ru..;-, ChiefExecutive Officer
By: _
Date
Approved As To Form:
Date
Funding Available:
q /0 2..1
Date
NOTICE: SIGNATURE(S) ON BEHALF OF CONSULTANT MUST BE NOTARIZED.
A certificate of acknowledgment in accordance with the provisions of civil code section 1189 must be attached for each person executing this agreement on behalf of the consultant. California Civil Section provides, at part (b): "Any certificate of acknowledgment taken in another place shall be sufficient in this state if it is taken in accordance with the laws of the place where the acknowledgment is made." Sacramento Society for the Prevention of the Cruelty of Animals for Shelter Services Amendment No. 1- Term of Agreement
Folsom File No. 172-21 18-009
RES 10675 8/24/2021 Amendment No. 1
I llllll lllll lllll 111111111111111111
35909
04/12/2022 Item No.7.
EXHIBIT 1
AMENDMENT NO. 1
To
CONTRACT BETWEEN THE CITY OF FOLSOM AND THE SACRAMENTO SOCIETY FOR THE PREVENTION OF
CRUEL TY TO ANIMALS FOR SHELTER SERVICES
With this amendment, Section 12.01, Term, is amended by adding the following:
12.01 Term.
The term of this Contract is extended for one (1) year. This extension shall commence on as of the date of approval by the governing bodies of both parties and continue through December 31, 2021, unless the Contract is otherwise terminated as set forth in Section 12.01.
Sacramento Society for the Prevention of the Cruelty of Animals for Shelter Services Amendment No. 1- Term of Agreement
04/12/2022 Item No.7.
ATTACHM ENT 3
04/12/2022 Item No.7.
CONTRACT BETWEEN THE CITY OF FOLSOM AND THE SACRAMENTO
SOCIETY FOR THE PREVENTION OF CRUEL TY TO ANIMALS FOR SHELTER
SERVICES
THIS CONTRACT is made on January 1, 2018, by and between the City of Folsom, a Municipal Corporation (the "CITY") and the Sacramento Society for the Prevention of Cruelty to Animals, a California Corporation (the "SHELTER"), collectively referred to as the "Parties."
ARTICLE ONE - DEFINITIONS
The Parties agree that the following definitions shall apply to this Contract:
Section 1.01 "Contract" shall mean the enforceable CONTRACT between the parties to perform a service in consideration for specified compensation.
Section 1.02 "Animals" shall mean domestic animals such as dogs, cats and domesticated rabbits, non-indigenous reptiles and shall exclude birds, fowls and livestock as defined herein.
Section 1.03 "Annual Payment" shall mean the annual amount CITY pays SHELTER for SHELTER's services calculated pursuant to the terms of this Contract.
Section 1.04 "Birds" and "Fowls" shall be defined as an Animal belonging to the class of Aves including members of the parrot family and all game birds, including but not limited to dove, quail, duck, goose, pigeon, cardinal, blue jay, robin, sparrow, blackbird and crow.
Section 1.05 "CITY" shall mean the City of Folsom, a California Municipal Corporation.
Section 1.06 "CITY Ordinance" shall refer to Title 7 of the Folsom Municipal Code as same may, from time to time be amended.
Section 1. 07 "CITY Licensing Program" shall mean the CITY program of licensing dogs and cats in accordance with Folsom Municipal Code Section 7.06 and California Food and Agriculture Code Section 30501.
Section 1.08 "Contract Fees" shall mean the monthly agreed price per Contract year for services rendered by SHELTER to CITY pursuant to this Contract. This rate shall be calculated by dividing the Annual Payment by the number of months (12) within the current CONTRACT year.
Section 1.09 "Facility" shall mean the facility or facilities used by SHELTER in providing shelter and other services for CITY pursuant to this Contract.
Section l. l O "Livestock" shall be defined as set forth in the Folsom Municipal Code and shall include swine, sheep, goat, horse, cattle, equine, or bovine Animal.
Section 1.11 "Redemption Period" shall mean the period of time that a stray Animal is held at the Facility to provide the owner time to reclaim and is defined by Folsom Municipal Code Section 7.10.040(A) to be not less than seven days, not including the day of impoundrnent, unless sooner redeemed by the owner.
1 Folsom File No. 172-21 18-009
Ad1 1mn1im 111111111111111 35909
04/12/2022 Item No.7.
Section 1.12 "SHELTER" shall mean to the Sacramento Society for the Prevention of Cruelty to Animals (SSPCA) and its representatives.
ARTICLE TWO - IMPOUNDMENT
Section 2.0 l Facility. The SHELTER represents that its Facility shall house and process Animals for CITY in a manner for SHELTER to meet its obligations herein as well as meets applicable legal requirements for Animal shelters, including all rules and regulations pursuant to California Civil Code section 1813, et seq., including but not limited to, Civil Code sections 1834, 1834.4 and 1846.
Section 2.02 lmpoundment. The SHELTER agrees that it shall accept all Animals brought to its Facility by designees of the CITY, and its citizens. Such Animals shall be impounded under the exclusive control and custody of the SHELTER for periods of time as required by law, including the California Food and Agriculture Code sections 31108 and 31752 and Section
7.10.040 of the Folsom Municipal Code, and Section 1. 11 of this Contract, whichever provides for a longer impoundment period. Prior to delivery to the SHELTER, the CITY shall scan for microchips or search for a CITY license and use all reasonable diligence to notify the licensed owner, if any. CITY reserves the right to accept the surrender of any animal in the field, and to impound, return, place or dispose of the animal in the CITY's sole and complete discretion as the CITY deems appropriate without the consent or involvement of the SHELTER. SHELTER agrees to accept the surrender of ownership of an Animal by its owner who is a resident of the CITY with the prior approval of the Animal Services Officer of the CITY. Any Animal not defined in Article One shall not be delivered to the SHELTER without calling and consulting with the SHELTER as to the feasibility of impoundment, holding, and care, or available options for placement.
Section 2.03 Holding. Every Animal delivered to the Facility by the CITY shall become property of the SHELTER to process in accordance with this Contract regarding impoundrnent and redemption. The Redemption Period is defined in Section 1.11 above. The SHELTER acknowledges and agrees that Chapter 7 .10 of the Folsom Municipal Code governs the impoundment, disposition and adoption of all Animals brought to the SHELTER by the CITY except for otherwise provided in this contract. Neither the CITY nor any agency, nor agent of the CITY shall have any claim or right to any Animal not claimed and redeemed during the Redemption Period. Should the CITY inform the SHELTER of its intent to continue holding an Animal prior to 6:00 p.m. of the final day of any given hold period, the SHELTER shall continue to hold the accepted Animal for the time period requested by the CITY. The SHELTER shall be solely responsible for all costs and expenses related to the accepted Animal(s) incurred after the holding period.
Section 2.04 Care. The SHELTER agrees that it shall provide reasonable and appropriate care for all Animals delivered to the Facility by the CITY. This includes adequate shelter, food, water and all other humane treatment.
Section 2.05 Veterinary Care. Unless prior authorization is provided by the CITY, the SHELTER's acceptance and care provided for any injured or seriously ill animal shall be at the SHELTER's sole cost and expense. Whenever exigent circumstances during the "redemption 2
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period" (see definition at Section 1) require the SHELTER to provide immediate emergency medical care to any injured or seriously ill accepted animal and such care is actually provided, the CITY may, upon request and in its sole discretion, reimburse the SHELTER for all, or part of any reasonable cost and expenses associated with the emergency medical care of the animal. The CITY understands that the SHELTER will not provide veterinary care to animals brought into the Facility by the CITY. If the CITY impounds an animal that is injured or seriously ill, the CITY will provide immediate veterinary care through the CITY's contract provider.
ARTICLE THREE- ANIMAL DISPOSITION
Section 3.01 Disposition Policy. The SHELTER shall have the undisputed right, consistent with Title 7 "Animals" of the Folsom Municipal Code and this Contract, to dispose of every Animal given into its custody in accordance with the following policy:
The SHELTER shall have the sole and exclusive right to determine the responsibility of persons offering to become the owners of unclaimed Animals and the suitability of the home offered, and shall have the sole and exclusive right to accept or reject such applicants for unclaimed Animals.
The SHELTER shall have the sole and exclusive right to determine if and when Animals are to be placed or euthanized but agrees to make a good faith attempt to place Animals prior to euthanizing them.
The SHELTER shall have the right to humanely euthanize any Animal impounded that is found to be physically suffering, injured or have a communicable disease prior to the end of the Redemption Period. Other treatable communicable diseases, such as Bordetella, shall be treated during the Redemption Period and in accordance with Section 2.05.
Section 3.02 lmpoundment, Boarding and Adoption. The SHELTER agrees, in accordance with Section 3.01 of this Contract, that if the owner of an impounded Animal shall claim the Animal prior to the Redemption Period the SHELTER shall collect from the owner the impoundment fee(s) together with the cost of board at the current rate per Animal. Further, the SHELTER shall require the owner of every impounded Animal to pay all applicable fees including licensing and vaccination fees of an impounded Animal which has not been inoculated and licensed, as required by Chapters 7.06 and 7.08 of the Folsom Municipal Code, as well as any costs for veterinary care incurred pursuant to Section 2.05. The SHELTER shall set, in accordance with the law, all fees, if any, it charges to the public for an Animal adoption.
ARTICLE FOUR-COLLECTION OF FEES
Section 4.02 Disposition of Funds. Any CITY licensing fees, impound fees, unaltered fees, boarding fees, and veterinary care expenses collected or received by SHELTER shall be accounted for separately and shall not be used to offset the Annual Payment relating thereto as may be required in this Contract. Any monies paid in owner-returned cases to the SHELTER for impoundment during the Redemption Period shall be accounted for separately by the SHELTER, but will not be used to offset the calculation of the Annual Payment. These funds shall be the property of the CITY and remitted to the CITY in accordance with this Contract. 3
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Section 4.03 Waiver of Impound Fees. The CITY will allow flexibility to the SHELTER to waive impound fees for animals, if the owner agrees to sterilize their animal.
ARTICLE FIVE- COST OF SERVICES AND FEES
Section 5.01 Fees Schedule. The CITY and SHELTER agree to the following:
(i.) During the first year of this Contract, January 1, 2018 to December 31, 2018, CITY will pay SHELTER an amount not to exceed sixty-four thousand eight hundred ninety-six and Zero/I 00s Dollars ($64,896.00) and the SHELTER shall accept, at CITY's discretion, up to 400 Animals in this twelve (12) month period. Excluded from this count are any Animals brought to the SHELTER for end-of-life care only and Animals returned after placement or adoption.
(ii.) During the second year of this Contract, January l, 2019 to December 31, 2019, CITY will pay SHELTER an amount not to exceed sixty-four thousand eight hundred ninety-six and Zero/1 00s Dollars ($64,896.00) arid the SHELTER shall accept, at CITY's discretion, up to 400 Animals in this twelve (12) month period. Excluded from this count are any Animals brought to the SHELTER for end-of-life care only and Animals returned after placement or adoption.
(iii.) During the third year of this Contract, January 1, 2020 to December 31, 2020, CITY will pay SHELTER an amount not to exceed sixty-seven thousand four hundred ninety-two and Zero/l00s Dollars ($67,492.00) and the SHELTER shall accept, at CITY's discretion, up to 416 Animals in this twelve (12) month period. Excluded from this count are any Animals brought to the SHELTER for end-of-life care only and Animals returned after placement or adoption.
Section 5.02 Contract Fees. The SHELTER agrees to bill the CITY the Annual Cost of Services and Fees in twelve equal monthly installments. City agrees to pay non-disputed invoices, net 45, from date ofr eceipt of invoice. The City also agrees to pay SHELTER for each animal in excess of the yearly animal intake amounts as established in Section 5.01 as follows:
(i.) During the first year of this Contract, January 1, 2018 to December 31, 2018, one hundred sixty-two and Zero/l00s Dollars ($162).
(ii.) During the second year of this Contract, January 1, 2019 to December 31, 2019, one hundred sixty-two and Zero/100s Dollars ($162).
(iii.) During the third year of this Contract, January l, 2020 to December 31, 2020, one hundred sixty-eight and Zero/l00s Dollars ($168).
Section 5.03 Livestock. The CITY agrees that the responsibility for seizing, securing, housing and disposing of livestock belongs to the CITY. In the event, for any reason, the CITY delivers livestock to the SHELTER which was seized in its jurisdiction by the duly appointed agents of 4
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the CITY, the SHELTER shall be paid for actual expenses it incurs to feed, house, transport and dispose of such livestock in addition to any other amounts under this Contract. SHELTER agrees to abide by all applicable law in processing livestock hereunder.
Section 5.04 Rendering Services for Dead Animals. CITY shall be responsible for its own rendering. In the event SHELTER euthanizes any Animal delivered by CITY residents during its Redemption Period, SHELTER shall appropriately store the remains for up to five (5) business days at no cost to the CITY, during which the CITY shall collect the remains for disposal.
Section 5.05 Humane Investigations. Folsom Animal Services will respond to and investigate all humane cases. Humane investigations where the animal is removed from the home due to neglect, abuse, etc. and protective custodies where the Animal Services Officer has determined that the animal should be impounded due to the absence of a caretaker or the caretaker's inability to provide for the animal shall constitute special holdings and will be charged accordingly. All special holdings, including rabies quarantine, require a written release by the CITY. No animal held for humane investigation or protective custody shall have visitation by the owner unless otherwise authorized by the Animal Services Officer.
Humane cases and bite quarantine cases that require the impoundment of an animal that requires extended care or quarantine beyond the "redemption period" will be charged board at the rate of twenty-five and Zero/lO0s Dollars ($25) per day per Animal. Animals held in protective custody will be charged board at the rate of twenty and Zero/l0ds Dollars ($20) per day per Animal.
Animals held for regular stay holds will be charged board at the rate of fifteen and Zero/100s Dollars ($15) per day per Animal.
The SHELTER will make every attempt to collect impound fees from the animal owner at the time of redemption. If collected, the CITY will only be responsible for the remaining contractual balance. These fees will be paid to the SHELTER by the CITY in addition to the "Fees Schedule" as outlined in Section 5.01.
Section 5.06 Software. The SHELTER shall provide the CITY with full access to shelter software program, via intemet connection or otherwise remotely available at the CITY offices, and rights to all CITY data contained therein in the event the SHELTER changes software vendors. The SHELTER shall provide the CITY a minimum of two (2) users access to the software program. The users shall be designated by the CITY. Such access shall at a minimum allow the designated CITY user to view and print and save all reports and databases related to the Contract, including, but not limited to, the status and disposition of all Animals deposited at the facility. CITY's share of the costs of the software shall be four hundred seventy-three and Zero/l00s Dollars ($473) per month. These fees will be paid to the SHELTER by the CITY in addition to the "Fees Schedule" as outlined in Section 5.01. The SHELTER shall provide the City with up to twenty hours training annually. When software program updates are to be implemented, the SHELTER shall provide the CITY advance notice and support to include training. The SHELTER shall ensure that technical support is available to the CITY during this contract period. Immediately upon termination of the contract, or upon the request by the CITY, the CITY shall be entitled to all data, files, documents, drawings, specifications, reports, estimates, summaries, and other such material and property of the CITY as may have been prepared or accumulated to date by the SHELTER in performing this contract. SHELTER will 5
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be allowed to retain copies of all deliverables to the CITY. The CITY is responsible for notifying the SHELTER of any employee changes so the SHELTER can modify access to the software system.
Section 5.07 Report.
(a) The SHELTER shall provide to the CITY, on or before the 20th day following each month during the term of this Contract, a report setting forth the following information for each Animal delivered by designees of the CITY, and its citizens, to the Facility:
(i) date delivered to the SHELTER;
(ii) source of delivery (name of Animal Services Officer, citizen, owner surrender);
(iii) type of Animal (cat, dog or other);
(iv) assigned identification number of Animal;
(v) duration of stay at the SHELTER for each Animal delivered by the CITY; (vi) reason for impoundment if not a stray;
(vii) total number of Animals delivered to the SHELTER for the previous month.
(b) The SHELTER shall also provide to the CITY a report of any livestock or wildlife delivered by the designees of the CITY, and its citizens to the Facility setting forth:
(i) the date of delivery;
(ii) the source of delivery (name of Animal Services Officer, citizen, owner surrender);
(iii) the reason for delivery;
(iv) the type of livestock or wildlife;
(v) assigned identification number of Animal;
(vi) any expenses incurred to date.
Section 5.08 Financial Records and Audit. SHELTER shall ensure that all information as it relates to number of Animals processed on behalf of the CITY, to include those impound fees or boarding fees, unaltered fees and licensed fees, as well as the name of any the person associated with the Animal, their address, the reason the Animal was relinquished, and the location where the Animal was acquired or originated from prior to being relinquish to the SHELTER, if known is accurate, updated, and reviewed on a daily basis. The SHELTER agrees to provide CITY full 6
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access to these reports. The SHELTER's financial yearly report must be accessible by the CITY Manager of the CITY on a yearly basis. CITY reserves the right to conduct its own audit of the records of the SHELTER at any time it deems necessary for the limited purpose of verifying the Annual Payment and the Contract Fees relating thereto, the number of Animals licensed, and the number and ratio of Animals processed on behalf of the CITY compared to the total number of Animals processed by the SHELTER, the length of stay of each such Animal and the collection of fees for various services and items.
ARTICLE SIX- RABIES OBSERVATION
Section 6.01 Rabies Observation. The SHELTER agrees to accept from the CITY Animals for rabies observation and quarantine. Such Animals delivered for rabies observation shall be isolated for a period of not less than ten (10) days from the date of the bite or, in the case of a wild, stray or owner surrendered Animal, three (3) days if the CITY, in its sole discretion, decides to euthanize the Animal and send it to the Sacramento County Public Health Services for rabies testing. If such an Animal is delivered by a CITY resident, SHELTER shall immediately notify the Animal Services Officer of the CITY or his/her designee of such delivery. The SHELTER shall be responsible for the humane euthanasia, and storage. The CITY will be responsible for processing, transport, and delivery for testing of Animal carcasses for suspected rabies Animals. The SHELTER shall make available to the CITY, upon request, information about the disposition of any rabies suspected Animal. The CITY shall pay the SHELTER the appropriate fees for quarantine as identified in Section 5.05.
ARTICLE SEVEN- LEGAL HOLDS
Section 7.01 Legal Holds. In the event an Animal or livestock is being held by the SHELTER as a result of a cruelty seizure, criminal prosecution or other legal hold by the CITY, the CITY shall reimburse the SHELTER for any veterinarian invoices and medical bills incurred by the SHELTER until the Court awards the Animal or livestock to the CITY, orders it euthanized or orders it returned to its owner. In no event shall SHELTER incur more than Two Hundred Dollars ($200.00) in veterinarian and/or medical bills per Animal under this Section without the prior written authorization of the CITY. The CITY shall not be liable for these costs in the event the Court orders the Animal or livestock owner to pay such costs and the same are paid within sixty ( 60) days of such order. If the fees are not paid by the Animal or livestock owner, after sixty ( 60) days, the CITY shall be liable for those fees and shall remit the same upon invoice by the SHELTER. In such instance, the SHELTER confers upon the CITY all rights and remedies it may have by law or equity to recover such fees and costs from the owner.
ARTICLE EIGHT-CITY REPRESENTATIONS AND OBLIGATIONS
Section 8.01 The CITY represents to the SHELTER that, as of the date of this Contract, the CITY requires rabies vaccination pursuant to Chapter 7.08 of the Folsom Municipal Code, and requires licensing of Animals pursuant to Chapter 7.06 of the Folsom Municipal Code. 7
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ARTICLE NINE- SHELTER REPRESENTATIONS AND OBLIGATIONS
Section 9.01 Hours of Operation. The SHELTER shall keep its Facility open to the public within the guidelines set forth by law, under mandate or based on the operational needs of the SHELTER in accordance with the law.
Section 9.02 Use of CITY funds. SHELTER agrees that any monies it collects on behalf of CITY pursuant to the terms of this Agreement shall be handled in accordance with generally accepted accounting principles.
Section 9.03 Residency Verification. The SHELTER shall verify the residency of citizens depositing Animals to their facility through a valid CA driver's license, State issue ID, or other proof of Folsom residency, evidencing a City of Folsom address.
ARTICLE TEN· INSURANCE
Section I 0.01 Evidence of Insurance Coverage. Prior to commencement of any work under this Contract, SHELTER shall provide evidence of insurance coverages for general liability, auto and statutory worker's compensation set forth in Exhibit "A" attached to this Contract, and shall further maintain such insurance coverage in effect during the term of this Contract.
CITY shall provide SHELTER an additional insured endorsement that extends the CITY's general liability insurance coverage to the SHELTER limited to coverage for the negligent acts of CITY employees while on SHELTER premises which result in actual damage to the SHELTER.
ARTICLE ELEVEN - INDEMNIFICATION
Section 11.01 Indemnification. SHELTER shall defend, indemnify, and save and hold harmless CITY, it's officers, agents, contractors, volunteers, elected and appointed officials, and employees from any claims, suits, or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person (including but not limited to workers and the public) or damage to property, resulting from or arising out of SHELTER' s willful misconduct or negligent act or omission while engaged in the performance of obligations or exercise of rights created by this Contract, except those matters arising from CITY's sole active negligence.
CITY shall defend, indemnify, and save and hold harmless SHELTER, their officers, agents, contractors, volunteers, and employees from any claims, suits, or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person (including but not limited to workers and the public) or damage to property, resulting from or arising out of CITY's willful misconduct or negligent act or omission while engaged in the performance of obligations or exercise of rights created by this Contract, except those matters arising from SHELTER's sole active negligence.
The Parties intend that this provision shall be broadly construed within the limits of state law. 8
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ARTICLE TWELVE - TERM
Section 12.01 Term. This Contract shall be for a term of three (3) years commencing as of the date of approval by the governing bodies of both parties. Both parties may adopt, by written agreement, an additional one year extension prior to the expiration date of this Contract. Either party may cancel this Contract at any time without penalty upon one hundred eighty (180) days written notice to the non-cancelling party. In the event of termination, the CITY shall pay those fees that accrue to the termination date and be refunded any credits that may accrue to the termination date.
ARTICLE THIRTEEN - DEFAULT
Section 13.01 It is expressly agreed by CITY and SHELTER that the defaults contemplated by this section apply to the administrative sections of the Contract and not to any Animal care or welfare requirements herein. Any default involving the care and/or welfare of the Animals shall be cured immediately.
Section 13.02 SHELTER Default. If SHELTER fails in any material term or condition of this Contract, including failing to obtain or comply with applicable state law requirements for performing services hereunder, SHELTER shall be in default of this Contract. Whenever CITY determines it's feasible, CITY will give SHELTER a reasonable amount of time to correct the default upon written notice as to the nature of the default and the reasonable time period within which to cure same.
If SHELTER is unable to timely cure a default, then CITY may, in its sole discretion, terminate this Contract and shall thereafter be excused from performing any further obligations under this Contract. In addition, if SHELTER fails in any material term or condition of this Contract, CITY, as its option, may terminate this Contract, and CITY may thereafter pursue its remedies available at law.
Section 13.03 CITY Default. If CITY fails in any material term or condition of this Contract and SHELTER is not in default, SHELTER, as its option, may terminate this Contract, and SHELTER may thereafter pursue its remedies available at law.
In the event the CITY fails to remit to the SHELTER the Contract Rate or any additional undisputed fees and expenses due hereunder, the CITY shall be in default. The SHELTER may, in its sole discretion, terminate this Contract for non-payment of undisputed fees if the CITY has not cured its default after sixty (60) days written notice.
ARTICLE FOURTEEN-NOTICE.
Section 14.01 Notice. Any notice sent under this Contract except as may be otherwise expressly required in this Contract shall be written and mailed by certified receipt requested, or sent by electronic or facsimile transmission confirmed by mailing written confirmation at substantially the same time as such electronic or facsimile transmission, or personally delivered to an officer of the receiving party at the following:
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To the SHELTER:
Sacramento Society for the Prevention of Cruelty to Animals (SSPCA) Attn: Chief Executive Officer
6201 Florin Perkins Road
Sacramento, CA 95828
Telephone: (916) 383-7387
Facsimile: (916) 383-7062
To CITY:
City of Folsom Police Department
Lieutenant, Neighborhood Services Bureau
46 Natoma Street
Folsom, CA 95630
Telephone: (916) 351-3442
Section 14.02 Each party may change its address by written notice to the other party in accordance with this section. Any communication addressed and mailed in accordance with this section shall be deemed to be given when so mailed, any notice so sent by electronic or facsimile transmission shall be deemed to be given when receipt of such transmission is acknowledged or confirmed, and any communication so delivered in person shall be deemed to be given when receipted for by, or actually received by, the other party, as the case may be.
ARTICLE FIFTEEN~MEDIATION
Section 15.01 Mediation. Any dispute or claim in law or equity arising out of this Contract or any resulting transaction, including disputes or claims involving the parties to this Contract, their officers, agents or employees, shall be submitted to neutral, non-binding mediation prior to the commencement of litigation or any other proceeding before a trier of fact. The parties to the dispute or claim agree to act in good faith to participate in mediation, and to identify a mutually acceptable mediator. Both parties to the mediation agree to share equally in its cost. If the dispute or claim is resolved successfully through the mediation, the resolution will be documented by a written agreement executed by both parties. If the mediation does not successfully resolve the dispute or claim, the mediator shall provide written notice to the parties reflecting the same, and the parties may then proceed to seek an alternative form of resolution of the dispute or claim, including through a court of competent jurisdiction, in accordance with the remaining terms of this Contract and other rights and remedies afforded to them by law.
ARTICLE SIXTEEN-MISCELLANEOUS
Section 16.01 Licenses, Permits, and Other Approvals. SHELTER represents and warrants to CITY that it has all licenses, permits, qualifications and approvals of whatsoever nature legally required for SHELTER to perform the work described herein. SHELTER represents and warrants to CITY that SHELTER shall, at its sole cost and expense, obtain and/or keep in effect at all times during the term of this SHELTER any licenses, permits, and approvals which are legally required for SHELTER to perform the services under this Contract. 10
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Section 16.02 Records and Inspection. SHELTER shall maintain records, books, documents and other evidence directly pertinent to the performance of work under this Contract in accordance with generally accepted accounting principles and practices. CITY shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make transcripts there from and to inspect all program data, documents, proceedings, and activities.
Section 16.03 Attorneys' Fees. In the event an action or proceeding is instituted by either party for the breach or enforcement of any provision of this Contract, the prevailing party shall be entitled to reasonable attorneys' fees and all litigation expenses, including, but not limited to expert's fees and disbursements.
Section 16.04 Enforceability. If any term or provision of this Contract is found to be void, voidable, invalid or unenforceable by a court of competent jurisdiction under the laws of the State of California, any and all of the remaining terms and provisions of this Contract shall remain binding.
Section 16.05 Time. All times stated herein, or in any other document called for under this Contract, are of the essence.
Section 16.06 Binding. This Contract shall bind and inure to the heirs, devisees, assignees and successors in interest of SHELTER and to the successors in interest of CITY in the same manner as if such parties had been expressly named herein.
Section 16.07 Survivorship. Any responsibility of SHELTER for warranties, insurance, indemnity, record-keeping or compliance with laws with respect to this Contract shall not be invalidated due to the expiration, termination or cancellation of this Contract.
Section 16.08 Construction and Interpretation. SHELTER and CITY agree and acknowledge that the provisions of this Contract have been arrived at through negotiation and that each party has had a full and fair opportunity to revise the provisions of this Contract and to have such provisions reviewed by legal counsel. Therefore, any ambiguities in construing or interpreting this Contract shall not be resolved against the drafting party. The titles of the various sections are merely informational and shall not be construed as a substantive portion of this Contract.
Section 16.09 Waiver. The waiver at any time by any party of any of its rights with respect to a default or other matter arising in connection with this Contract shall not be deemed a wavier with respect to any subsequent default or other matter.
Section 16.10 Severability. The invalidity, illegality or unenforceability, of any provision of this Contract shall not render the other provisions invalid, illegal or unenforceable.
Section 16.11 No Third Party Beneficiary. It is expressly understood and agreed that the enforcement of these terms and conditions shall be reserved to the CITY and SHELTER.
Nothing contained in the Contract shall give or allow any claim or right of action whatsoever by any third party. It is the express intent of the CITY and the SHELTER that any such person or entity, other than the CITY or SHELTER, receiving benefits or services under this Contract shall be deemed as incidental beneficiary.
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Section 16.12 Non-Discrimination/Non-Preferential Treatment Statement. In performing this Contract, the parties shall not discriminate or grant preferential treatment on the basis of race, sex, color, age, religion, sexual orientation, disability, ethnicity, or national origin, and shall comply to the fullest extent allowed by law, with all applicable local, state, and federal laws relating to nondiscrimination.
Section 16.13 Authority to Execute. The person or persons executing this Contract on behalf of their respective agency warrant and represent that they have the authority to execute this Contract on behalf of their agency and further warrant and represent that they have the authority to bind their agency to the performance of its obligations hereunder.
Section 16.14 Force Majeure. Neither party shall be in default by reason of any failure in the performance of this Contract if such failure arises out of causes beyond its reasonable control.
Such causes may include, but are not limited to, acts of God, acts of the public enemy, acts of government in either its sovereign or capacity, acts of the party whose performance is not sought to be excused, fires, flood, weather, epidemics, quarantine restrictions, strikes, freight embargoes, failure of transmission or power supply, mechanical difficulties with equipment which could not have been reasonably forecasted or provided for, or other causes beyond its sole control. The party so affected will resume performance as soon as practicable after the force majeure event terminates.
Section 16.15 Amendment. This Contract shall not be amended, modified, or otherwise changed unless in writing and signed by both Parties hereto.
Section 16.16 Venue. This Contract and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Contract shall be held exclusively in a state court in the County of Sacramento.
Section 16.17 Entire Agreement. This instrument and any attachments hereto constitute the entire agreement between CITY and SHELTER concerning the subject matter hereof and supersedes any and all prior oral and written communications between the Parties regarding the subject matter hereof.
END OF TEXT- SIGNATURE PAGE FOLLOWS
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SACRAMENTO SPCA,
A California Corporation:
(If a corporation, must be signed by two officers of the corporation per Corporations Code section 313.)
Signature
Print Name Print Name
C1=.o Cfo Title Title
CITY OF FOLSOM, A Municipal Corporation:
Date
ATTEST:
C ista Freemantle, City Clerk Date
ORIGINAL APPROVED AS TO CONTENT:
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CyiaRenaud,Chie Date
Evert W. P; mezr, C~t~ Manager
FUND -<6°AVAII LE: __ / ,, 1
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Jani W. Francis, Finance Director .
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NOTICE: SIGNATURE(S) ON BEHALF OF SHELTER M).J-ST BE NOTARIZED.
A certificate of acknowledgment in accordance with the provisions of California Civil Code section 1189 must be attached for each person executing this agreement on bttfia.lf of shelter. This section provides, at part (b ): "Any certificate of acknowledgment taken in another place shall be sufficient in this state if it is taken in accordance with the laws of the place where the acknowledgment is made.
Date
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
County of f;!-.8(!~ rY67-J-o )
On ~ ~ ~ ~ i ,to b1toreme, uYldzJ~ . &-t i~ { N~ fl?Jolt'C!,_. Date Here Insert Name and Title of the Officer personally appeared !t&,1(),c..Jh e··. fl"l-f..,w <Fad /J Name(s) of Signer(s) f1, 'abae! r hll kp \fe:c:rkcvnp ~ ,· who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature ~ 6 · t!:»..1£( Signature of Notary Public
Place Notary Seal Above
---------------oPTTONAL-------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: Document Date: _
Number of Pages: Signer(s) Other Than Named Above: _
Capacity(ies) Claimed by Signer(s)
Signer's Name: _
D Corporate Officer - Title(s): _
D Partner - D Limited D General
D Individual D Attorney in Fact
D Trustee D Guardian or Conservator
□Other: _
Signer Is Representing: _
Signer's Name: _
□ Corporate Officer - Title(s): _
D Partner - D Limited D General
D Individual □ Attorney in Fact
□ Trustee □ Guardian or Conservator
D Other: _
Signer Is Representing: _
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©2014 National Notary Association• www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907
04/12/2022 Item No.7.
EXHIBIT A
INSURANCE
NOTE: The word "Consultant" in this Exhibit refers to "Shelter" as the term is used in the Agreement/Contract to which this Exhibit is attached.
A. During the term of this Agreement, Consultant shall maintain in full force and effect at all times during the term of the contract, at its sole cost and expense, policies of insurance as set forth-herein:
1. General Liability:
a. General liability insurance including, but not limited to, protection for claims of bodily injury and property damage liability, personal and advertising injury liability and product and completed operations liability. b. Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage form CG 0001 (occurrence).
c. Claims-made coverage is not acceptable.
d. The limits of liability shall not be less than:
Each occurrence: One Million Dollars ($1,000,000)
Products & Completed Operations:
Personal & Advertising Injury:
One Million Dollars ($1,000,000)
One Million Dollars ($1,000,000)
e. If a general aggregate limit of liability is used, the minimum general aggregate shall be twice the 'each occurrence' limit or the policy shall contain an endorsement stating that the general aggregate limit shall apply separately to the project that is the subject of the contract.
f. If a products and completed operations aggregate limit of liability is used, the minimum products and completed operation aggregate shall be twice the 'each occurrence' limit or the policy shall contain an endorsement stating that the products and completed operations aggregate limit shall apply separately to the project which is the subject of the contract.
g. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
2. Automobile Liability:
a. Automobile liability insurance providing protection against claims of bodily injury and property damage arising out of ownership, operation, maintenance, or use of owned, hired, and non-owned automobiles.
b. Coverage shall be at least as broad as Insurance Services Office Automobile Liability coverage form CA 0001, symbol I (any auto).
c. The limits of liability per accident shall not be less than:
04/12/2022 Item No.7.
Combined Single Limit One Million Dollars ($1,000,000)
d. If Automobile Liability coverage, as required above, is provided by the Commercial General Liability form, the General Liability policy shall include an endorsement providing automobile liability as required above.
3. Workers' Compensation:
a. Workers' Compensation Insurance, with coverage as required by the State of California (unless the Consultant is a qualified self-insurer with the State of California), and Employer's Liability coverage.
b. Employer's Liability Coverage with a limit not less than $1,000,000 per accident for bodily injury and disease.
c. Consultant shall sign and file with the City department responsible for this Agreement/Contract the Worker's Compensation Certificate contained in the Project Manual.
4. Insurance Required in the Supplementary Conditions: Consultant shall be required to comply with all conditions as stipulated in the Standard Construction Specifications, any supplementary conditions and any special provisions as applicable.
5. Professional Liability Insurance
If required, errors and omissions, malpractice or professional liability insurance with coverage of not less than $1,000,000 per claim.
6. Other Insurance Provisions:
a. The Consultant's General Liability and Automobile Liability policies shall contain, or be endorsed to contain, the following provisions:
i. The City, its officials, employees, agents and volunteers shall be covered and specifically named as additional insureds on a separate endorsement as respects liability arising out of activities performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied, or used by the Consultant, or automobiles owned, leased, hired, or borrowed by the Consultant in a form acceptable to the City Attorney.
ii. The Endorsement requirement may be satisfied with express provisions in the insurance policy(ies) which identifies any person or entity required to be included as an insured under the policy. A copy of the declarations page identifying the policy number, and pertinent provisions in the policy providing additional insured coverage shall be provided to the City. iii. The policy shall contain no special limitations on the scope of coverage afforded to the City, its officials, employees, agents or volunteers. b. For any claims related to the project, the Consultant's General Liability and Automobile insurance coverage shall be primary insurance in their coverage of the City and its officers, officials, employees, agents, or volunteers, and any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Consultant's insurance and shall not contribute with it.
04/12/2022 Item No.7.
c. Any failure to comply with reporting or other provisions of the policies on the part of the Consultant, including breaches of warranties, shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers.
d. The Consultant's Workers Compensation and Employer's Liability policies shall contain an endorsement that waives any rights of subrogation against the City, its officers, officials, employees, agents, and volunteers. e. Each insurance policy shall state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits, non-renewed, or materially changed except after 30 days prior written notice by certified mail has been given to the City. Ten days prior written notice by certified mail shall be given to the City in the event of cancellation due to nonpayment of premium.
7. Acceptability of Insurers: Insurance is to be placed with insurers with a Bests' rating of no less than A: VII.
8. The Consultant shall furnish the City with Certificates of Insurance and endorsements or insurance binders, signed by a person authorized by the insurer to bind coverage on its behalf, evidencing the coverage required by this section, the Standard Specifications, Special Provisions and/or any Supplementary Conditions.
The Consultant shall furnish complete, certified copies of all required insurance policies, including original endorsements specifically required hereunder if requested.
9. The Consultant shall report, by telephone to the Project Manager within 24 hours, and also report in writing to the City within 48 hours, after Consultant or any Subcontractors or agents have knowledge of, any accident or occurrence involving death of or serious injury to any person or persons, or damage in excess of Ten Thousand Dollars ($10,000) to property of the City or others, arising out of any work done by or on behalf of the Consultant as part of the contract.
10. Such report shall contain:
a. the date and time of the occurrence,
b. the names and addresses of all persons involved, and c. a description of the accident or occurrence and the nature and extent of the injury or damage.
11. The City, at its discretion, may increase the amounts and types of insurance coverage required hereunder at any time during the term of the contract by giving 30 days written notice.
12. If the Consultant fails to procure or maintain insurance as required by this section, the Standard Specifications, and any Supplementary Conditions, or fails to furnish the City with proof of such insurance, the City, at its discretion, may procure any or all such insurance. Premiums for such insurance procured by the City shall be deducted and retained from any sums due the Consultant under the contract.
I 3. Failure of the City to obtain such insurance shall in no way relieve the Consultant from any of its responsibilities under the contract.
14. The making of progress payments to the Consultant shall not be construed as
04/12/2022 Item No.7.
relieving the Consultant or its Subcontractors of responsibility for loss or direct physical loss, damage, or destruction occurring prior to final acceptance by the City.
15. The failure of the City to enforce in a timely manner any of the provisions of this section shall not act as a waiver to enforcement of any of these provisions at any time during the term of the contract.
16. In the event Consultant carries Excess Liability Coverage, the Excess Liability Coverage shall apply to any and all claims related to the project on a primary and non-contributory basis, and the City's insurance or self-insurance coverage shall be excess to the Consultant's Excess Liability Coverage.
04/12/2022 Item No.7.
I IY T - fl'
Folsom City Council
Staff Re ort
MEETING DATE: 4/12/2022
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 10832 - A Resolution Authorizing the City Manager to Execute a Contract Amendment with R.E.Y.
Engineers, Inc. for the Riley Street Sidewalk Feasibility Study and Appropriation of Funds
FROM: Public Works Department
RECOMMENDATION I CITY COUNCIL ACTION
The Public Works Department recommends that the City Council pass and adopt Resolution No. 10832 - A Resolution Authorizing the City Manager to Execute a Contract Amendment with R.E.Y. Engineers, Inc. for the Riley Street Sidewalk Feasibility Study and Appropriation of Funds.
BACKGROUND I ISSUE
The goal of the Riley Street Sidewalk Project, now named the Historic District Connectivity Project to better describe the potential additional scope of the project and goals of the Active Transportation Program grant opportunities, will ultimately construct sidewalks along Riley Street between Sutter Street and East Bidwell Street, and on Dean Way between Coloma Street and Theodore Judah Elementary School. Currently, there are large gaps in the pedestrian infrastructure on Riley Street and no sidewalks on Dean Way. Both roadways are heavily used by pedestrians and being adjacent to Sutter Middle School and Theodore Judah Elementary School, there is a high percentage of student pedestrians. In the few instances where sidewalks do exist on Riley Street, they do not meet the current Americans with Disabilities Act (ADA) requirements. Both locations are identified as high priority projects in the City's Pedestrian Master Plan (June 2014) and they will be high priorities in the Final City of Folsom Active Transportation Plan (ATP). Staff is currently circulating the Draft ATP for public comment and anticipates it will be presented for adoption prior to June 2022. 1
04/12/2022 Item No.8.
In October 2019, the City Council approved Resolution No. 10348 - A Resolution Authorizing the City Manager to Execute a Design and Consulting Services Contract with R.E.Y.
Engineers, Inc. for the Riley Street Sidewalk Feasibility Study Fiscal Year 2019-20 and Appropriation of Funds.
In July 2020, the City Council approved Resolution No. 10499 - A Resolution Authorizing the City Manager to Execute a Contract Amendment with R.E.Y. Engineers, Inc. for the Riley Street Sidewalk Feasibility Study Fiscal Year 2019-20 and Appropriation of Funds. The amendment provided for the application and submission of a Cycle 5 Statewide Active Transportation (ATP) Grant, administered through the California Department of Transportation (Caltrans), on behalf of the Riley Street Sidewalk Project. An application for the Statewide ATP Grant was submitted, however the project was not selected as a funded project.
In May 2021, the City Council approved Resolution No. l 0622 - A Resolution Authorizing the City Manager to Execute a Contract Amendment with R.E.Y. Engineers, Inc. for the Riley Street Sidewalk Feasibility Study Fiscal Year 2019-20 and Appropriation of Funds. The second amendment provided for the application and submission of a Cycle 5 Regional Active Transportation Program (ATP) Grant, administered through the Sacramento Association of Governments (SACOG). An application for the Regional ATP Grant was submitted, however, the project was not selected as a funded project.
City staff, along with the project team from R.E.Y. Engineers, Inc., met with the California Transportation Commission (CTC) for a de-brief following the results of the Cycle 5 project selections. Valuable input was received as to how these grant applications are scored, resulting in a better understanding of critical application components for future application submittals.
City staff and the project team from R.E.Y. Engineers, Inc. once again met with the CTC in March 2022 to further clarify additional project components in preparation for the Cycle 6 Statewide ATP Grant, which is due June 15, 2022.
The total project cost for a "Medium Project" grant award was increased for the Cycle 6 round to $10 million, up from a total project cost of $7 million for Cycle 5. Due to the proximity of Riley Street and Dean Way to each other, both being identified as high priority projects in City planning documents, and the estimated construction cost of both locations to fit within the medium size project range, it was decided to combine these projects into one project for these grant opportunities.
This contract amendment will be for R.E.Y. Engineers, Inc. to provide full-service assistance for the preparation of the Cycle 6 Statewide and Regional ATP Grant Application (if not selected for the Statewide application) for the Historic District Connectivity Project. It was determined that due to the extensive experience that R.E.Y. Engineers, Inc. has with this project and the associated documents required for this grant opportunity, it would be in the best interest of the project to continue utilizing this project team for the Cycle 6 applications. 2
04/12/2022 Item No.8.
POLICY/ RULE
Section 2.36.080, Award of Contracts of the Folsom Municipal Code states, in part, that contracts for supplies, equipment, services and construction with an estimated value of $66,141 or greater shall be awarded by City Council.
ANALYSIS
City staff has reviewed the R.E.Y. Engineers, Inc. scope and fee to provide Professional Services Grant Writing Assistance for the Cycle 6 Statewide and Regional ATP Grants and has determined that the proposed services and fee are consistent with the amount of work necessary to conduct data gathering, public outreach, preparation, and submittal of these grant applications.
Staff will use the City's standard Amendment to Agreement for Design Consulting Services in a form acceptable to the City Attorney.
FINANCIAL IMP ACT
The original contract with R.E.Y. Engineers, Inc. for the project Feasibility Study was authorized for $95,840. Amendment #1 for the Statewide ATP Grant application was authorized for an additional amount of $35,678. Amendment #2 for the Regional SACOG Grant application was authorized for an additional amount of $6,948. If approved, this third amendment would increase the contract amount by $55,954 to a total not-to-exceed contract amount of $194,420.
Staff is requesting an additional appropriation in the amount of $55,954 from the Transportation Impact Fees Fund (Fund 446) for this project and funds are currently available
ENVIRONMENTAL REVIEW
This component of the project has been deemed categorically exempt from environmental review.
ATTACHMENT
1. Resolution No. 10832 - A Resolution Authorizing the City Manager to Execute a Contract Amendment with R.E.Y. Engineers, Inc. for the Riley Street Sidewalk Feasibility Study and Appropriation of Funds
Submitted,
Mark Rackovan, PUBLIC WORKS DIRECTOR
3
04/12/2022 Item No.8.
RESOLUTION NO. 10832
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONTRACT AMENDMENT WITH R.E.Y. ENGINEERS, INC. FOR THE RILEY
STREET SIDEWALK FEASIBILITY STUDY AND APPROPRIATION OF FUNDS WHEREAS, the City of Folsom desires to install sidewalks along Riley Street between Sutter Street and Coloma Street and on Dean Way between Coloma Street and Theodore Judah Elementary School; and
WHEREAS, the City of Folsom desires to improve pedestrian safety for students traveling to and from Sutter Middle School and Theodore Judah Elementary School; and WHEREAS, the City has determined that the Riley Street Sidewalk, now being called the Historic District Connectivity Project, is a good candidate for both the Statewide and Regional Active Transportation Program (ATP) Grants; and WHEREAS, the scope and fee for R.E. Y. Engineers, Inc. to provide Cycle 6 ATP Professional Grant Writing services is consistent with the amount of work necessary for data gathering, public outreach, preparation, and submittal of these grant applications; and WHEREAS, funds in the amount of $55,954 are available in the Transportation Impact Fees Fund (Fund 446) for Fiscal Year 2021-22; and
WHEREAS, the agreement will be in a form acceptable to the City Attorney: (as applicable to contracts)
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute a Contract Amendment with R.E. Y. Engineers, Inc. for the Riley Street Sidewalk Feasibility Study in the amount of $55,954 for a total not-to-exceed contract amount of $194,420.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the Finance Director is authorized to appropriate $55,954 from the Transportation Impact Fees Fund (Fund 446) for the Riley Street Sidewalk Project.
PASSED AND ADOPTED this 12th day of April 2022, by the following roll-call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Councilmember(s ):
Councilmember( s):
Councilmember( s):
Councilmember( s):
Kerri M. Howell, MAYOR
Christa Freemantle, CITY CLERK
Resolution No. 10832
Page I of I
04/12/2022 Item No.8.
Folsom City Council
Staff Re art
MEETING DATE: 4/12/2022
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution 10833 - A Resolution Authorizing the City Manager to Execute an Agreement with Sacramento County for Reduced Tipping Fees for Municipal Solid Waste at Kiefer Landfill FROM: Public Works Department
RECOMMENDATION I CITY COUNCIL ACTION
The Public Works Department recommends that the City Council adopt Resolution 10833 - A Resolution Authorizing the City Manager to Execute an Agreement with Sacramento County for Reduced Tipping Fees for Municipal Solid Waste at Kiefer Landfill.
BACKGROUND I ISSUE
In 2007, City Council adopted Resolution No. 8065 which authorized the City Manager to execute a 15-year agreement with Sacramento County to handle and dispose of the City's municipal solid waste (MSW) at Kiefer Landfill. The agreement contains an annual cost adjustment on the tipping (disposal) fee based on the Consumer Price Index (CPI). There was also a limit placed on the CPI where such increases could not exceed three percent of the previous year's disposal fee for solid waste tipped at Kiefer Landfill.
Since the initial agreement was executed, the City and County have amended it three times.
The first was in 2010 by City Council Resolution No. 8669 which provided reimbursement to the County for the cost of handling and disposal of household hazardous waste (HHW) dropped off by Folsom residents at County facilities. Amendment one integrated most of these costs into the City's solid waste disposal tipping fee by reducing the discount. It also established a per visit fee to validate Folsom residency (Verification Fee).
The next two amendments, by City Council Resolution No. 9594 in 2015, and City Council Resolution No. 10642 in 2021 were also related to HHW collection services provided to 1
04/12/2022 Item No.9.
Folsom residents at County facilities. The changes included updates to the charges for handling and disposal, additional materials to the price list, and updates to the administrative fee.
Handling and disposal costs continue to be recovered by the County through the MSW tipping fee and the verification fee is invoiced separately on an annual basis.
The original agreement that expires June 30, 2022, included three one-year extensions upon mutual agreement of both parties. Due to rising costs over the past 15 years, the County is unable to provide the extensions and has proposed a new agreement consistent with the reduced tipping fees (RTF) currently offered for other volume customers. The term of the proposed contract is three (3) years with two (2) mutually agreeable one (1) year extensions.
In addition, the County has proposed that the agreement for RTF no longer be integrated with the household hazardous waste program and that a separate agreement be executed to continue providing that service to Folsom residents.
POLICY/ RULE
Section 2.36.080, Award of Contracts of the Folsom Municipal Code states in part that contracts for supplies, equipment, services, and construction with an estimated value of $66,141 or greater shall be awarded by City Council.
Chapter 5.04, Purchasing and Contracting, of the Folsom City Charter includes in part, a provision for procurement and services and joint contracts with or through other government jurisdictions.
ANALYSIS
In November of 2020, the County implemented rate increases to accommodate for over 10 years with no increases for most fees. Since Folsom is under a contract that does not expire until June 30, 2022, the City was temporarily sheltered from the impact of these increases. The timing also worked to Folsom's advantage in that the Waste and Recycling Division was aware of the rate increase during the most recent rate analysis and the increases were accounted for in the City's rates and fees.
The reasons cited for the increase include inflation, increased green waste and recycling cost, the crash of the recycling market, and compliance with new state mandates. These factors have impacted costs throughout the solid waste industry. Despite the rate increase, Kiefer Landfill remains the lowest-cost facility for both tipping fees and transportation costs. Folsom delivers approximately 6,500 loads per year to Kiefer Landfill. The City of Folsom centroid is seven (7) miles closer to Kiefer than the next closest facility. This difference represents a savings of approximately 38 labor hours and 583 gallons of diesel fuel each week. 2
04/12/2022 Item No.9.
FINANCIAL IMP ACT
RTF are based on the amount of material delivered each year. Based on Folsom's historical tonnage of 41,000 tons per year, the City would qualify for a tier two (2), or $3.00 per ton discount. Folsom also delivers a small amount of hard-to-handle material which does not qualify for the RTF. If the City delivers more MSW than anticipated, the excess tonnage will qualify for the higher discount. If within the term of the contract the City is consistently generating enough material to move into a higher tier, which may occur due to the buildout of Folsom Ranch, there is a contract provision to allow the City to adjust the commitment tier to achieve a higher discount on all material.
Tonnage Disposal Discount
Tiers Tons per Year from Posted Rate
Tier 1 10,000 - 24,999 $ (1.00)
Tier 2 25,000 - 49,999 $ (3.00)
Tier 3 50,000- 99,999 $ (5.00)
Tier4 100,000 or more $ (7.00)
Including both MSW and hard-to-handle waste, the department estimates that the Fiscal Year 2021-22 total cost of disposal at Keifer Landfill will be about $1.6 million. Under the proposed contract the RTF would save the City approximately $123,000 next year; however since the base rate that the discount is applied to has increased disproportionately to previous years, the overall projected cost in the Fiscal Year 2022-23 is estimated at $2.3 million.
The discount provided during the term of the proposed contract is a fixed amount off the current rate charged to customers without a contract. The proposed contract eliminates the annual CPI adjustment that was part of the previous contract; however, the public rate schedule currently approved by the Sacramento County Board of Supervisors through 2026 includes a 3% annual increase. This equates to a 3.2% annual increase in Folsom's discounted rate.
Effective Date 1/1/2022 1/1/2023 1/1/2024 1/1/2025 1/1/2026 Public/Non-contract Rate $ 54.45 $ 56.10 $ 57.80 $ 59.55 $ 61.35 Annual Increase 3.0% 3.0% 3.0% 3.0%
Tier 2 Discount Rate $ 51.45 $ 53.10 $ 54.80 $ 56.55 $ 58.35 Annual Increase 3.2% 3.2% 3.2% 3.2%
Kiefer - Approved Rate Schedule
The department was aware of the future cost increase at the time of the last rate study and the rates approved by the Folsom City Council in December 2021 support the increased cost.
Funds are available in the Solid Waste Operating Fund (Fund 540) for the Fiscal Year 2022- 3
04/12/2022 Item No.9.
23 and are included in the Fiscal Year 2022-23 proposed budget. Subsequent fiscal years will be included during the annual budget process.
ENVIRONMENTAL REVIEW
This action is exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with Section 21080.
ATTACHMENT
1. Resolution 10833 - A Resolution Authorizing the City Manager to Execute an Agreement with Sacramento County for Reduced Tipping Fees for Municipal Solid Waste at Kiefer Landfill
Submitted,
Mark Rackovan, Public Works Director
4
04/12/2022 Item No.9.
RESOLUTION NO. 10833
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT WITH SACRAMENTO COUNTY FOR REDUCED TIPPING FEES FOR
MUNICIPAL SOLID WASTE AT KIEFER LANDFILL
WHEREAS, the City of Folsom Waste and Recycling Division provides waste collection services for Folsom residents and businesses; and
WHEREAS, Folsom's long term agreement with Sacramento County for disposal of waste at Kiefer Landfill will expire on June 30, 2022; and
WHEREAS, due to rising costs in the solid waste industry, Sacramento County is not willing to extend under the current agreement; and
WHEREAS, staff has negotiated a new agreement with Kiefer Landfill to continue delivering waste under a reduced tipping fee schedule; and WHEREAS, the new agreement will have a term of three (3) years with two (2) optional one (1) year extensions upon mutual agreement of the parties; and WHEREAS, sufficient funds are available in the Solid Waste Operating Fund (540); and WHEREAS, the agreement will be in a form acceptable to the City Attorney:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom Authorizes the City Manager to Execute an Agreement with Sacramento County for Reduced Tipping Fees for Municipal Solid Waste at Kiefer Landfill 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. 10833
04/12/2022 Item No.9.
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04/12/2022 Item No.9.
Folsom City Council
Staff Re ort
MEETING DATE: 4/12/2022
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution 10834 - A Resolution Authorizing the City Manager to Execute an Agreement with Sacramento County for
Household Hazardous Waste Collection Program Services
Provided to Folsom Residents at Sacramento County Owned Facilities
FROM: Public Works Department
RECOMMENDATION I CITY COUNCIL ACTION
The Public Works Department recommends that the City Council adopt Resolution 10834 - A Resolution Authorizing the City Manager to Execute an Agreement with Sacramento County for Household Hazardous Waste Collection Program Services Provided to Folsom Residents at Sacramento County Owned Facilities.
BACKGROUND I ISSUE
In 2007, City Council adopted Resolution No. 8065 which authorized the City Manager to execute a 15-year agreement with Sacramento County to handle and dispose of the City's municipal solid waste (MSW) at the Kiefer Landfill. This contract did not address the use of Sacramento County's Household Hazardous Waste (HHW) facilities by Folsom Residents, but the County did accept material from Folsom residents.
In 2010, City Council adopted Resolution No. 8669 which authorized the City Manager to amend the agreement with Sacramento County. Amendment number one provided reimbursement to the County for the cost of handling and disposal of HHW dropped off by Folsom residents at County facilities. The handling and disposal costs were integrated into the City's solid waste disposal fee. The contract also included a separate-flat fee per load to validate Folsom residency (Verification Fee), which is invoiced annually to the City. 1
04/12/2022 Item No.10.
In 2015, City Council adopted Resolution No. 9594 which authorized the City Manager to amend the agreement for a second time. In the second amendment, the current charges for handling and disposal of City-generated HHW materials disposed at County facilities were updated to a new cost structure that incorporated time and motion studies for processing these materials. The amendment also contained a modified cost adjustment method based on year over-year changes to the County's actual costs. Amendment number two only applied to the handling, disposal, and administrative costs for HHW items. The amendment preserved CPI based annual adjustments to the verification fee and the disposal of municipal solid waste. The amendment specified that the annual adjustments for the combined costs for all services could not exceed three percent of the cost of the prior year's solid waste disposal fee.
In 2021, City Council adopted Resolution No. 10642 which updated the pricing table to reflect current costs and added additional materials. The methodology of recovering costs was not changed; handling and disposal was recovered through the fees collected for the disposal of MSW and the verification fee was recovered annually by a separate invoice.
The current agreement with Sacramento County expires on June 30, 2022. The County is proposing that the agreement for HHW collection services and MSW disposal be separated, and each service executed with its own agreement. This is consistent with other County contracts for their facilities.
POLICY/ RULE
Section 2.36.080, Award of Contracts of the Folsom Municipal Code states in part that contracts for supplies, equipment, services, and construction with an estimated value of $66,141 or greater shall be awarded by City Council.
Chapter 5.04, Purchasing and Contracting, of the Folsom City Charter includes in part, a provision for procurement and services and joint contracts with or through other government jurisdictions.
ANALYSIS
The proposed contract would not change the methodology for calculating the County's cost of providing HHW collection services to Folsom Residents, but it would change the way the costs are recovered. Under the current contract, the cost of HHW handling and disposal is calculated for the previous year, divided by Folsom's annual MSW tonnage and the adjustment is made to the disposal rate for each ton of MSW.
The current method of reimbursing the County for HHW services is not transparent. The costs are accounted for with MSW and they are not identified in our budget as an HHW expense.
The new methodology will allow the City to account for the cost of HHW collections at County facilities more accurately.
2
04/12/2022 Item No.10.
Folsom's primary HHW service is provided by the Waste and Recycling Division's permanent household hazardous waste facility and door-to-door collection service. Per unit, the cost of processing Folsom's waste through City resources is much lower than paying the County; however, continuing to provide access to County facilities fills a gap in Folsom's program.
Folsom HHW staff spend most of their time in the field collecting from residents. During this time, the City facility is closed to the public. Due to the demands of the door-to-door program, the City facility is only available by appointment and during narrow time windows for drop off activities. Sacramento County facilities, including both Kiefer Landfill and North Area Recovery Station, operate as drop-off centers with no appointments necessary. In addition, both facilities include weekend hours which provides Folsom residents an extra level of convenience.
FINANCIAL IMP ACT
Sacramento County will continue to calculate the cost to Folsom based on their actual costs to provide the service. The fee schedule will be updated annually and become effective on July 1 of each year. Under the current fee schedule, the anticipated cost for the first year is approximately $20,000 and modest annual increases are expected. Annual increases are also incorporated into Folsom's rate structure. The calculation does not include a CPI or a specific limit to the annual increase, but it must be based on actual cost.
Funds are available in the Solid Waste Operating Fund (Fund 540) for the Fiscal Year 2022- 23 and are included in the Fiscal Year 2022-23 proposed budget. Subsequent fiscal years will be included during the annual budget process.
ENVIRONMENTAL REVIEW
This action is exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with Section 21080.
ATTACHMENT
1. Resolution 10834 - A Resolution Authorizing the City Manager to Execute an Agreement with Sacramento County for Household Hazardous Waste Collection Program Services Provided to Folsom Residents at Sacramento County Owned Facilities
Submitted,
Mark Rackovan, Public Works Director
3
04/12/2022 Item No.10.
RESOLUTION NO. 10834
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT WITH SACRAMENTO COUNTY FOR HOUSEHOLD HAZARDOUS
WASTE COLLECTION PROGRAM SERVICES PROVIDED TO FOLSOM
RESIDENTS AT SACRAMENTO COUNTY OWNED FACILITIES
WHEREAS, the City of Folsom Waste and Recycling Division provides household hazardous waste collection services to Folsom residents; and WHEREAS, preventing household hazardous waste from entering the landfill and other disposal facilities protects the health and welfare of the community and the environment; and WHEREAS, a component ofFolsom's household hazardous waste program is to provide access to Sacramento County household hazardous waste drop-off facilities at no cost to the resident; and
WHEREAS, access to County facilities is currently provided through an agreement for disposal of municipal solid waste; and
WHEREAS, the current agreement expires on June 30, 2022; and WHEREAS, staff has negotiated a new agreement solely for the purpose of maintaining access to County household hazardous waste facilities for Folsom residents; and WHEREAS, sufficient funds are available in the Solid Waste Operating Fund (Fund 540); and
WHEREAS, the agreement will be in a form acceptable to the City Attorney:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom Authorizes the City Manager to Execute an Agreement with Sacramento County for Household Hazardous Waste Collection Program Services Provided to Folsom Residents at Sacramento County Owned Facilities.
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
Resolution No. 10834
Page I of2
04/12/2022 Item No.10.
ATTEST:
Christa Freemantle, CITY CLERK
Resolution No. 10834
04/12/2022 Item No.10.
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04/12/2022 Item No.10.
:. i::il i. . .ii I
Folsom City Council
Staff Re ort
RECOMMENDATION / CITY COUNCIL ACTION
The Finance Department requests that the City Council adopt Resolution No. 10836 - A Resolution Amending Resolution No. 10479 to update the Building Valuation data and clariffing its use
BACKGROI ]ND / ISSIIE
In June 2020, the Folsom City Council adopted Resolution No. 10479 which approved the update to the most recent Building Valuation Data as published by the International Code Council.
POLICY / RULE
City of Folsom Municipal Code Section 3.50.020 states, "The city manager is hereby directed to recommend to the council the adjustment of fees and charges to recover the percentage of costs reasonably borne in providing the regulation, products or services enumerated in this chapter and on the schedule of rate review as hereinafter established in this chapter. Costs reasonably borne shall be as are defined in Section 3.50.030."
ANALYSN
Resolution No. 10479, which was adopted by the Folsom City Council in June 2019, included a request to update the buitding valuation data each year to the most recent data as issued by the International Code Council. The information from the International Code Council included 1 MEETING DATE: 4n212022
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 10836 - A Resolution Amending Resolution No' 10479 to Update the Building Valuation Data and Clarifu its Use FROM: Finance Department
04/12/2022 Item No.11.
the valuation table as well as other information, including a calculation example using the valuation data. The information in the example has caused some customer confusion regarding the calculation of the fees. Staff did not intend to change how the building fees were calculated only to update the valuation table. The valuation data has been used by the City for the calculation of fees for many years, staff is requesting to establish that the valuation data would be updated each year in July based on the data updated by the International Code Council, usually in February of each year. Attached to this staff report is the building valuation data as updated in February 2021. The information regarding the example calculation has been removed.
Staff is requesting the International Code Council Building Valuation Data be updated to the February 2021 datatable to be effective May I,2022.
In July 2022 staff will update the valuation data based on information from the International Code Council with the February 2022 datatable and then update the information each year in July, with the most recent data as published by the International Code Council.
F'INANCIAL IMPACT
The financial impact of this change in the current fiscal year will be minimal
ATTACHMENTS
1. ResolutionNo. 10836-AResolutionAmendingResolutionNo. 10479 toUpdatethe Building Valuation Data and Clarify its Use
2. February 2021Building Valuation Data as published by the International Code Council
3. ResolutionNo. 10479-AResolutionAmendingResolutionNo. 10297 andEnactingthe Annual Inflationary Adjustment for City User Fees as of July 1,2020, for Selected City Services
Submitted,
Tamagni, Finance Director
2 Page 80
04/12/2022 Item No.11.
ATTACHMENT 1
04/12/2022 Item No.11.
RESOLUTION NO. 10836
A RESOLUTION AMENDING RESOLUTION NO. 10479 TO UPDATE THE BUILDING
VALUATION DATA AND CLARIFY ITS USE
WHEREAS, Resolution No. 10479 was approved by the Folsom City Council in June 2020; and
WHEREAS' the International Code Council Building Valuation Data table was included as an attachment to the staff report; and
WHEREAS, the attachment has caused confusion as to how the fees based on building valuation would be calculated; and
WHEREAS, staff never intended to change how the building fees were calculated, only to provide the valuation table; and
WHEREAS, staff is requesting the International Code Council Building Valuation Data be updated to the February 2021table as of May I,2022; and WHEREAS, the building valuation data table will be updated each year in July to the most recent published International Code Council Building Valuation Data; and NOW' THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom Amends Resolution No. 10479 to update the Building Valuation Data and clariff its use; and BE IT FURTHER RESOLVED that the City Council of the City of Folsom approves the update to the February 202I Building Valuation Data effective May 1, 2022 and to update each year in July to the most recent building valuation data as published by the International Code Council
PASSED AND ADOPTED this 12ft day of April,2022,by the following roll-call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmember(s):
Councilmember(s):
Councilmember(s):
Councilmember(s):
Keni M. Howell, MAYOR
ATTEST:
Christa Freemantle, CITY CLERK
Resolution No. 10836
Page I of I Page 82
04/12/2022 Item No.11.
ATTACHMENT 2
04/12/2022 Item No.11.
Building Valuation Data - February 2021*
Square Foot Construction Costs o'b'"
Group (2018 International Buildine Code) IA IB IIA IIB IIIA IIIB IV VA VB A-1 Assembly, theaters, with stage 263.06 254.15 247.55 237.53 223.05 216.60 229.90 207.42 199.94 A-1 Assembly, theaters, without stage 241.02 232.11 225.51 215.49 201.01 194.56 207.86 185.38 177.89 A-2 Assemblv. niehtclubs 205.93 199.80 194.89 186.91 176.19 171.34 180.27 159.46 154.02 A-2 Assembly, restaurants, bars, banquet halls 204.93 198.80 192.89 185.91 174.19 170.34 179.27 157.46 153.02 A-3 Assembly, churches 243.83 234.92 228.32 218.30 204.21 198.79 210.67 188.58 181.'10 A-3 Assernbly, general, comrnunity halls, libraries,
museums
204.02 195.1 1 187.51 178.45 163.01 157.56 170-86 147.38 140.89 A-4 Assemblv, arenas 240.02 231.11 223.51 214.49 199.01 193.56 206.86 183.38 176.89 B Business 212.46 204.72 197.90 '1 88.1 8 171.81 165.32 180.77 151.15 144.35 E Educational 222.69 214.99 208.81 199.81 186.17 176.74 192.93 162.78 157.80 F-l Factory and industrial, moderatehazard 125.58 119.68 112.86 108.68 97.37 92.83 104.02 80.23 75.34 F-2 Factory and industrial, lowhazard 124.58 '118.68 112.86 107.68 97.37 91.83 103.02 80.23 74.34 H-l Hieh Hazard, explosives 117.37 111.47 105.65 100.47 90.40 84.87 95.81 73.27 N.P H234HishHazNd 117.37 111.47 105.65 100.47 90.40 84.87 95.81 73.27 67.37 H-5 HPM 212.46 204.72 197.90 1 88.1 I 171.81 165.32 180.77 151.15 144.35 I-1 Institutional, supervised environment 211.58 204.34 198.27 190.28 175.02 170.20 190.53 156.95 152.25 I-2 Institutional. hosoitals 355.95 348.21 341.39 331.67 314.48 N.P 324.26 293.82 N.P I-2 Institutional, nursing homes 247.27 239.53 232.71 222.99 207.36 N.P 215.58 186.70 N.P I-3 Institutional. restrained 241.59 233.85 227.03 217.31 202.46 194.97 209.90 181 .80 173.00 I-4 Institutional, day care facilities 211.58 204.34 198.27 190.28 175.02 170.20 190.53 156.95 152.25 M Mercantile 153.55 147.41 141.50 134.53 123.48 119.63 127.88 106.75 102.31 R-l Residential, hotels 213.59 206.35 200.28 192.29 176.78 171.95 192.54 158.70 154.00 R-2 Residential, multiple family 179.04 171.80 165.73 157.74 143.25 138.43 157.99 125.18 120.47 R-3 Residential. one- and two-familv d 166.68 162.17 157.99 154.10 149.61 144.19 151.48 138.79 130.58 R-4 Residential, care/assisted living facilities 211.58 204.34 198.27 190.28 175.02 170.20 190.53 156.95 152.25 S-1 Storaee. moderate hazard 't16.37 110.47 103.6s 99.47 88.40 83.87 94.81 71.27 66.37 S-2 Storage, low hazard 115.37 109.47 103.65 98.47 88.40 82.87 93.81 71.27 65.37 U Utilitv, miscellaneous 89.90 84.75 79.27 75.71 67.97 63.50 72.24 53.83 51.28 * as published by the Intemational Code Council
a. Private Garages use Utility, miscellaneous
b. For shell only buildings deduct 20 percent
c. N.P. : not permitted
d. Unfinished basements (Group R-3): $23.20 per sq. ft.
04/12/2022 Item No.11.
ATTACHMENT 3
04/12/2022 Item No.11.
RESOLUTION NO. 10479
A RESOLUTION AMENDING RESOLUTION NO. 10297 AND ENACTING THE ANNUAL INFLATIONARY ADJUSTMENT FOR CITY USER FEES AS OF JULY 1, 2020,FOR SELECTED CrTY SERVICES
WHEREAS, City of Folsom Municipal Code Section 3.50.020 statesooThe city manager is hereby directed to recofirmend to the council the adjustment of fees and charges to recover the percentage of costs reasonably borne in providing the regulation, products or services enumerated in this chapter and on the schedule of rate review as hereinafter established in this chapter. Costs reasonably borne shall be as are defined in Section 3.50.030."; and WIIEREAS, ResolutionNo. 7815 adopted by the Folsom City Council on May 23,2406, allowed for an annual inflationary adjustment to User Fees each fiscal year; and WHEREAS, Resolution No. 10297 adopted by the Folsom City Council on June 11,2019, allowed for Building Valuation Data to be updated each year as published by the International Code Council; and
WHEREAS, the annual inflationary adjustment is based on the US Bureau of Labor Statistics & CA Department of Finance CPI-West Urban Consumers, all items, San Francisco CMSA,Annual amount as of December of the previous calendar year and as of December 31,2019 the annual inflationary adjustment applied is 3.3%; and WHEREAS, the Building Valuation Data will be updated to the February 2020 data as published by the International Code Council; and
NOW, THEREX'ORE, BE IT RESOLVED that the City Couneil of the City of Folsom Amends ResolutionNo .10297 and Enacts the Annual Inflationary Adjustment for City User Fees as of July 1,2020,for Selected City Services as set forth in the fee schedules attached hereto; and PASSED AND ADOPTED this 23rd day of June,2020,by the following roll-call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Member(s):
Council Member(s):
Council Member(s):
Council Member(s):
Howell, Kozlowski, Sheldon, Aquino
None
None
None 4
ATTEST:
Christa
Resolution No. 10479
Page I of8
CITY CLERK
04/12/2022 Item No.11.
City of Folsom
Master Fee Schedule as of July lr2020
# DEPARTMENT/SDRVICN
tr.ED
7rc1n0$
Roro 10tr97
AI\INUAL
INFLATION
ADJUSTMENT
Annuel CPI I
FEE
7ntn020
Pronored
PE-T
PE.z
PE-3
PE-4
PE-5
PE-6
PE-7
PE-7b
PE-8
PE-9
PFIO
PE-I1
PE"I2
PFI3
PE 15
Ppr6
PF'IS
PE-20
PE2l
PVTT
PE"23
PEN4
PE 25
PF'25b
PF.26
P8.27
PF.28
P8,29
PR3O
PE-3I
PE.32
PE 33
PE-35
PE-36
PF-37
PE-38
PE-39
PE.4O
PE4I
Plaunine & Snelnecrhs
Preliminary koject Review (deposit)
Tentative Parcel Map Review (deposit)
Tentative Subdivision Map Review (deposit)
Tentative Map Anpndrnent Review (deposit)
Final Map Anrend/Cert of Conection (deposit)
Tentative Map Extension Review (deposit)
Site Design Review - Planning Conrn (deposit)
Site Design Review
Planned Developnent review (deposit)
Planned Developrpnt Mod. Review (deposiQ
Planned Devcloprent -tu, Review (deposit)
Specific Plan Review (deposit)
Specific Plan Anrnd. Review (deposit)
Initial Environnpntal Study/Assrnt (dcposit)
Envlronrrental krpsct Revlew & Report
Notlce of CEQA dotenrdnation
Envircnnrental Mltigatlon Prog, Monitoring
Historic Dist SFD Design Rvw (deposit)
H.D. Mult Fanr/ConmDee lgn Rvw (dcposit)
Arch Rpview- SFD (depoe lt)
Arch Review- Mult Fam/Coflrrr (dopostt)
Hlstorlc Dlst Slgn Revlew (deposlt)
Slgn Pomit - $taff
Sign Permit Btension
PD P€rmit Stgn Only (deposit)
Zoning Verlffcatlon Revlew (deposit)
Rezoning Request Review - 5 acres or less (deposit)
Rercning Request Review- 5+ acres (deposit)
Lot Line AdjJParcel Merger (planning) (deposit)
Annention Processin g (deposit)
Variance Review- SFD (deposit)
Variance Review- Other (deposit)
Appeal - Admin
Appeal - by other (deposit)
Cnde Anendrrgnt (deposit)
General Plan Amendment <5 acres (deposit)
Crneral Plan Amendnrnt >5 acres (deposit)
Tenporary Use Permit Review
C-onditional Use Permit Review (Major) (deposit)
$ 594
g tr78
$6264 + $3Vrrt
$ 8,630
$ a$0
$ 3,707
$ 4348
s 273
$8,321 + $416,/acte
$ 8,309
$ z9l8
$ s,833
5 6,a17
$ 1906
$ 7,934
$ns$ 5,849
$57$ 2,005
s57$ 2,ooJ
$57$ l1?
$54$ 1,166
$ 281
$ ?.7?5
$ s,42
$920$ s,250
s 1,530
$ 1,530
$ 233
$ 468
$ 2"083
$ 3,976
$ 7,951
$59$ t3%
l5
ln
$153 + $l/tot
211
69 91
107
7 $204 + $I0/acrc
204
7l
t43
157
145
194
7 143
I
49 I
49 I
3 1
29 7
67 133
23 129
37 37
6 1l
5l
97 r95
I
132
$
$
$
$
$
$
$
Buo Foo
(Non-Rofundsblo
Dcposit)
ffig
10,2&
{i6,4t7 +$32llt1
8'841
2,89
3,798
4,455
280
$8,525 + $42daoro
8,513
ze$
5,976
6,574
6051
8,128
292
5,9n
58 2,054
58 2,0s4
58 t20
5J
I,195
288
2,7v2
5,575
943
5,379
1,567
r,567
239
479
2,tA
4,073
8,1,16
60 5,528
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Resolution No. 10479
04/12/2022 Item No.11.
City of Folsom
Master Fee Schedule as of July Lr2020
Annual inflationery a4iwtmont barcdon thc US EuttauofLabotShdttlct & CA Dcpdtlrrunl olFlturce CPhl{ce Urban Cowwnzrt alt llamc, $an All amounte aro roundod to tho nrarcit dollar,
Resolution No. 10479
# DEPARTMENT/SERVICE FEN
7/0'/2019
lteto 14297
ANNUAL
INT'LATION
ADJUSTMENT
Annurl CPII
FEE
1t0tn020
Prooored
PE4Ib
PE,42
PE.43
PW
PE45
PEA6
PEAT
PE-48
PE-49
PEsO
PB5I
PF-52
PB53
PR54
PE.55
PE,56
PF-57
PF58
PE.59
PF-6o
PE'6I
PEr62a
w6?h
Pb63a
PF-63b
PFr64
PE65
w6
PB.EI
PF.68
PE.69
PF-10
PF-71
PE,72
PF.14
Pws
PF-76
P8,77
PF78
PE-73
Plotal[r& Enqlnce rinq (cont.l
Condltional Usc Pcrmlt Rwicw (Minor) (depoe lt)
Conditional Ugo Pormlt Modiffoation (dcposit)
Stroct Nanp RcvieVChango (dcposit)
Devl. Agrccnmt Proccssing (dcposit)
Right of Way/ Eascnrnt Abandonrnent
Tree Rcrrcval Pmt- Permitted Removal
Tree Rsnpval Prf- w/o Permit
Eng PC & Insp - $l to $1O000
Eng PC & Inspl - $10,001-$99,999
Eng PC & Inspl - $100k-S199,999
Eng PC& hspl - $200k-$29,999
Eng PC& krspl - $300k+
Parcel Map Check
FinalMap Check
LLA Review - Engineering
Research ofEng Rscords (Houdy)
Misc Eng Services (Hourly)
Rcviewof ROW /Easenpnt Docs
Assrf Dlst/CFD Paynrnt Processing
Subdlvision Agrecnrnt Processing
Special Events Permit
Tranoportation Pormfts
Tnn.portatlon Pcmfts (Annual)
Encrcachnrnt Pormlts
Encroachmnt Pcrmit (Annual)
Condominium Convofi ion Fce
ftrom Oocupation Pcrrdt Foo
Unsttcndcd Donation Box
Opinion on a Plannhg Mattcr
IandmarkTrce
Off'Sit€ W€skend Dircctional Signs
Uniform Sign Program
Temporary Sign Permit
Non-residential Plan Chcck Fee (Planning)
EntertainnEnt Permit
@edited Services Fee
Technical Assistance / Third Party revieworlnspection
Protected Tree removed or inpacted within the buildable area of a residential lot (DSH-dianpter per inch)
Protected Tr€e r€rmved or inpacted (DSH-dianeter per
inch)
Residential Landscape Review Fee (C\stom Honn)
6 2619
$ 1,530
$ I,166
$ 5,018
$ 2,33s
$36
$ 418
6% offint rOk
7o/one>0frt
5%ne:rt l00l
47one* l00k
29lo r€maindet
$ 5,471
$ 10,213
$ 4584
$99
$99
$ Lnt
s 2,4s6
I l,w
$59
$19$82
$129 + $l.8dSq. ft,
s 2,526
$ 10,871
$28
$183 + $46 Rencwol
i 239
g 273
$ 163
$ 273
$10
l0olo ofbuilding
permit fee
Hourly rate of City
Arborist
$43
1.5 X RegularFee
N/A
N/A
N/A
N/A
N/A
$3+ 5'9579t'o'
$62$26$l
$4+ $l R€n€wsl
&
37 29
123
57 I
l0
134
EO
tt2
2 2
3l
60 25
I
0 2
6 7
4 7
0 $
I
$
$
Ettt Ftc
(Non-Rcfundrblo
Dcpolit)
2,693
7,567
l,lg5
5,141
23n
37 428
6% offirst lOk
7o/oneti9Ok
5% nes l00k
47o ne:rt l00k
?/or€mainder
5,605
10,63
46e6
l0l
lor
\34
2,516
1,057
@
t9
E4
$132 + Sl.9llsq. Ft,
as88
ll,l37
29 $
$
$
$
$
$
$
$
$
$
$
$
s
$
$187+ $47 Rencwal
$ 245
$ 280
$ 167
g 280
$10
lPlo ofbuilding
permit fee
Hourly rate ofCity
Arborist
$44
1.5 XRegularFee
Actual Cost
125.00 (Dsrr)
250.00(DsrD
04/12/2022 Item No.11.
City of Folsom
Master Fee Schedule as of July 112020
I Annual inflationary adjuEtment based on the IJS Burctu of Iabor Stalislics & CA Depatunanl of Finance CPI-WeC Urban ConsnsC all itent, San Franci*o CMSA, Annual annunl os of Decanbd ofthe prevlous calendaryeat Resolution No. 10479
# DEPARTMENT/SERVICE FDE
7t0y20t9
Rrro 10297
ANNUAL
IN['LATION
ADJUSTMENT
Annuel CPI I
FEE
7t0u2020
Propored
FN-1a
FN-Ib
FN.2
FN-2a
FN-2b
FN-2c
FN-3
FN.4
FN-5
FN-7
FN-8
FN-9
FN-IO
FN-12
FN.13
P-l
P-2
P-3
P-3b
P-4
P-4b
P-4c
P-4d
P-6
P-7
P-8
P-9
P-10
P-15
P-t7
P-r8
Finance
Returned Check Fee - Initial
Returned Check Fee - Additional
Lien/Delinquency Admin Fee
Admin/Discormect Fee
Reconnect Fee - during business hours
Reconnect Fee - aftet business hous
Excessive Comm. SW Acct Changes
New License Review Fee
License Roprint Fee
Customer Business Lists - Year
Customer Business Lists - I month
Cardroom Business Llcense Fees:
Appfcation and investigation
AnnualLicense Renewal
PER Table Fee per QUARTER
Altcrnative Method of Payment
Police
Vehicle Release
Livescan
Alarm Pcrmit (New)
Alarm Permit (Renewal - Commereial)
False Alann (2nd false alarm - infor. not updaGd)
False Alarm (3rd false ahrm)
Falsc Alarm (4th false alarm)
False Alarm (Sttr+ false alarm)
Repossessions
VIN Verification
Clearance Letter-Clear
Vehtole Sign-Off
Firearms Permit
Adut Brsinesses
HS 11590 Registration
Police report copy
25 35
t79
$
$
$
$
$
$
$
$
s
s
$
$
$
$
s
$
$
$
$
$
s
$
$
165
24 43
t6
91 9l
108
161
l4
45 40
45 1s6
135
24 25
25 t2
r8
l8
$ 632
$84
$ 250
2.75o/o'3%o
$
s
$
$
$
$
$
$
S
$
s
$
s
$
s
$
$
$
$
$
$
$
$
$
$
s
$
$
$
1 I
0 1
I
2t
3 8
5 I
I
I
3 3
2 4
0 0
0 0
4 4
I
25 35
125
7s
50 135
26 26
12 t9
t9
170
25 4
17 94
94 110
r65
14 45
40 45
160
139
25 5
653
87 258
2.75o/o - 3Yo
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
04/12/2022 Item No.11.
City of Folsom
Master Fee Schedule as of July lr202A
1 Annual inflationary ariluotmcnt brred an tha uS Eunnu ol lrtbot Sraf d;cs & CA Doptttt snt ol Flnance CPI'Vd Ufian Connnst all lwt, Sdn Fmnclso CMSA' Annual arrauttt t t olDacanb*of the pt*tout caleaduycan Resolution No. 10479
# DPPARTMENT/SERVICE FEE
7t0U2019
Promrcd
ANNUAL
INFLATION
ADJUSTMENT
Annrd CPI t
FEE
7t0il2020
Promcd
FR.1
FR.2
FR.3
FR.4
FR.5
FR.6
FR.7
FR.lO
FR-I1
FR-14
FR-I5
FR-23
FR-24
FR-26
FR-28
FR-z8b
FR-28o
FR-28d
FR.36
FR.39
FR.42
FR.43
rfts
Califomle Fire Code Inspection
Re-Irupootion (2nd and oubsequent
Fire Stand Pipe System Plan Revlew
Fire Hydrant Syetem PC
Fhe Sprinkler System Plan Review
Fhe Pump Plan Review
Fire Alarm System Plan Review
Fixed Fhe Protection System Plan Review
Gas System Plan Review (Medical LPG,
Compressed etc)
Public Fireworks Display PC
Special Fire Inspection (after hours or by request)
Safe & Sane Fireworks Stand Inspection
Incident Report Copy
Fire Hazard Abatement Program
False Alarm (2nd false alarm - infor. not updated)
False Alarm (3rd false alarm)
False Alarm (4th false alarm)
False Alarm (sth+ false alarm)
Fire Hydrant Flow Test
Fhe Photograph Copy
Expedrled Services Feo
Technioal Assistance / \\frdPatty review u
Inspeatlom
6 185
$ 228
bldg pmt val
bldg pnt val
bldg pmt val
bldg prnt val
bldg pmt val
bldg pmt val
bldg pmt val
bldg pmt val
$ 247
$ 326
$30
$ 1s3
$91
$91
$ 108
$ 161
s 201
$30
1.5 X Rcg Fcc
Actual Cost
$6$8
bldg pmt val
bldg prnt val
bldg pmt val
bldg prnt val
bldg pmt val
bldg pmt val
blfupmt val
8 ll
I
5 3
3 4
5 7
1 s
$
$
$
s
$
$
$
$
$
$ 191
s 236
b6g pmt val
bHg pmt val
bldg prit vsl
bldg pmt val
bldg pmt val
bldg pmt val
bldg pmt val
bldg pmt val
255
337
158
94 94
l12
r66
208
3l
1.5 X Reg Fee
Actual Cost
$
s
$
$
$
$
$
$
$
s
3l
04/12/2022 Item No.11.
Cify of Folsom
Master Fee Schedule as of July 1,2020
1 Annual inflationary adjustment based on the tIS Bureou of labor Stadslics & CA Depdtu cnt ol Ftnance CPI-Weg Urban Cons.rrss, alt lumg San Fmndrco CMSA' Annual anount as oJDecembo olthe prct'lous anlendoryeae Resolution No. 10479
Pagc 6 of8
# DEPARTMENT/SERVICE F'EE
7t0tn0t9
ANNUAL
INFLATION
ADJUSTMENT
Annual CPI I
FEE
7t0U2020
Promced
cc-l
CC-2a
cc-3
cc-6
cc-8
cc-9
cc-10
cc-ll
cc-12
cc-13
Citv Clcrk
Agenda Mailing Service (Per Year/Subscriber)
Document Printing & Copyng (per side/per
page; $1.00 minimum; no charge for 9 copies or
less)
Document Printing Pages greater than 17x14 or
color copies (per side/per page)
Copy Audio/Video/DVD
Folsom MmicipalCode
Updates to Folsom Municipal Code
Planning Commission Decision Appeal - Owner
occupied, single fami$ dwelling
Planning Commission Decision Appeal - All
others
Truancy Fee (Monies paid ttrough City Cl€rD
Code Enforcement Administrative Hearing
$
$
24 0.10
$ 5
$s
Cost to Produce
Cost to Produce
$ 238
$
$
s
479
6l
179
0.00 $
$
0 $ 0
$0
Cost to Produce
Cost to Produce
s8
s
s
$
t6
2 6
$
s
24 0.10
$ 5
$5
Cost to Produce
Cost to Produce
$ 246
$
$
$
495
63 185
04/12/2022 Item No.11.
City of Folsom
Master Fee Schedule as of JulY \2420
I Annual inflationary adjwtment based on the IJS Burzaa of Labor Sndilcs & CA Depailrcnt of Flnance CPI-|Y& Afi0n Conilne l' all Iten6, gan Fmnct#o CMSA, Annuol anuLnt as of Decenber of the pr*lous colendatyedn " CPI is negligible, therefore fee/fine will not change Resolution No. 10479
Page7 ofl
# DEPARTMENT/SERVICE
ANNUAL
INF"LATION
ADJUSTMENT
Annuel CPIr
F'EE
7t0tn020
Propoccd
LB-1
LB.2
LB-3
LB.4
LB-6
LB-7
LB-8a
LB.8b
LB-9
LB-IO
LB-II
LB.12
LB.I3
Llbren*
Adult and Tcen Books and audio books -
E:cended Use Fce (Fine)
High-Demand Express materials - Extended Use
Fee (Finc)
Children's books and audio books - Extended Use
Fee (Fine)
DVD's, Music CD's, and speciahY kits -
Extended Usc Fee (Fine)
Retumed check fee
Library card replacement
Self service copy charges - (B & W)
Self service copy charges - (Color)
Hold re-shelving fee - per item
Interlibrary loar/item (plus add'l lendinglibrary fees) Lost or damaged books in Folsom collection
Lost or damaged materials fiom interlibrary loan
Referral fee fc rnaterial and fec recovery
services (for accounts with billed overdue
matcrbls and total otilstanding chargcs of $25 or
more)
$0.25/ day per item -
$5.00ma/item
$1.00/ day per item-
$5.00 mar/item
$.05/ day per item -
$1.00 rnax/item
5.25/ day peritem-
$5.00 nrary'item
City standard fee
(see Finance)
$l
s 0.15
s 0.s0
$l
$3
Up to cost of item
plus $5.00
processing fee
Up to cost of iterrg
plus charges form
lending library, plus
$5.00 locat
prccersing fee
$10 **
**
**
**
+*
**
'l*
+*
+*
't'*
).
$O25l day per ltem.
$5,00 mar/itom
$1.00/ day per item-
$5.00 max/item
$.05/ day per item -
$1.00 ma:,/item
$.25/ day per item -
$5.00mor'item
City standard fee
(see Finance)
$r$ 0.r5
$ 0.50
$l$3
Up to cost of item
plus $5.00
processing fce
Up to cost of itenl
plue chargee form
lending library, plus
$5'00 lccal
ptocessing fce
$10
04/12/2022 Item No.11.
Cify of Folsom
Master Fee Schedule as of July tr202A
' Pallrs and Rpcreation fees arc set by the departrnent. Coet rcoovery levels are set at the programlevet and therefore changes are proposed during the budget prooess.
Resolution No. 10479
# DEPARTMENT/SERVICE
#
PR-7
PR-9
PR.IO
PR-I3
PR.I4
PR-I5
PR.16
PR-17
PR-18
PR-19
PR-21
PR-22
PR.23
PR-2/+
PR.25
PR-26
PR.3O
PR-32
PR-33
PR-37
PR-38
PR-39
PR-40
PR-42
PR-43
PR-45
PR-46
PR-47
PR-48
PR.49
Parks & Recreation
Zookeeping/Gate
Zoo-Gift Shop
Zoo-Education/Tours
Aquatics - Rec/Lap Swim
Aquafics - Swim Lessons
Aquatics - Swim Team
Aquatics - Aquacise
Aquatics - Swim Camps
Aquatics - School Parties
Aquatics - Birthday Parties
Aquatics - Swim Meets
Aquatics - Rental/Spons.
Aquatics - Concessions
Cummings Park/Skate
Comm Center - Resident
Comm C€nt€r - Non-Resident
Comm Center - FCUSD
Rotary Clubhouse (see Comm Center)
Park Rentals
Youth Spec. Interest
Culhnal Classes
Fee Based Spec Events
Youth Day Camps
Teens
Culhral Svcs/Preschool
Seniors
Sponsorship
Kemp Concessions
Aduft Sports
Youth Sports
Comm. Youth Leagues
Sports Facilig Rentals
04/12/2022 Item No.11.
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04/12/2022 Item No.11.
Folsom City Council
Staff Re ort
MEETING DATE: 4/12/2022
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 10837 - A Resolution Authorizing the City Manager to Execute an Agreement with BrightView Holdings DBA BrightView Tree Care Services for Shaded Fuel Break Creation and Ladder Fuel Removal
FROM: Parks and Recreation Department
RECOMMENDATION I CITY COUNCIL ACTION
Staff recommends the City Council approve Resolution No. 1083 7 - A Resolution Authorizing the City Manager to Execute an Agreement with BrightView Holdings DBA BrightView Tree Care Services for Shaded Fuel Break Creation and Ladder Fuel Removal.
BACKGROUND I ISSUE
The City of Folsom is responsible for the maintenance and servicing of approximately 1,100 acres of City owned open space across 70 different sites. Of that 1, 100 acres, 3 3 5 acres have been identified as ladder fuel (low growth in trees) which should be removed to establish the necessary fuel breaks. Traditionally, the City has completed annual weed abatement to address seasonal grasses but has yet to implement a program to address other combustibles that exist from low growth in trees to establish defensible space to adjacent structures. This project is the first phase of a proposed 3-year program to systematically address the City owned open spaces and establish tolerances so that in subsequent years less work will be required to address ladder fuel and thus the annual, more routine work, will be more focused on the abatement of annual grasses and maintenance of adequate fuel breaks. Once completed there will be a defined separation between our developed and undeveloped areas.
POLICY/ RULE
In accordance with Chapter 2.36.090 (A)(l) and 2.36.120 of the Folsom Municipal Code, professional services are not subject to competitive sealed bidding requirements, and those costing $66,141 or greater shall be awarded by City Council.
1
04/12/2022 Item No.12.
ANALYSIS
On February 22, 2022, the Parks and Recreation Department advertised a Request for Proposal (RFP) for the creation of shaded fuel breaks and ladder fuel removal. The RFP was posted on CIPList.com as well as the City of Folsom website with responses due back to the City by 4:00 pm March 18, 2022. An internal review team was assembled of Parks and Recreation Staff. The criteria for ranking the proposals were based on the following areas: relevant experience and staffing, project understanding, price, and the ability to complete the work in the allocated time frame. In total two responses were received (BrightView DBA BrightView Tree Care Services, and West Coast Arborists) and after reviewing their responses, and compiling scores, staff concluded that Bright View DBA Bright View Tree Care Services demonstrated they were the most qualified based on the advertised scoring criteria. The total 3-year cost of the proposed services for BrightView was $557,459.13 and the cost from West Coast Arborists was $1,057,417.00.
FINANCIAL IMPACT
Funds are budgeted in the Fiscal Year 2021-22 General Fund (Fund 010) Operating budget in Division 3805 (Municipal Landscape) for $37,200 and Division 3801 (Park Maintenance) for $132,800). The initial term of the contract will be for one year and funding for subsequent years beyond Fiscal Year 2021-22 will be addressed during the annual budget process. The Fiscal Year 2021-22 contract amount for the initial term is estimated to be approximately $170,000.
ATTACHMENT
Resolution No. 1083 7 - A Resolution Authorizing the City Manager to Execute an Agreement with BrightView Holdings DBA BrightView Tree Care Services for shaded fuel break creation and ladder fuel removal
Submitted,
Lorraine Poggione,
Parks & Recreation Director
2
04/12/2022 Item No.12.
RESOLUTION NO. 10837
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT WITH BRIGHTVIEW HOLDINGS OBA BRIGHTVIEW TREE CARE
SERVICES FOR SHADED FUEL BREAK CREATION AND LADDER FUEL
REMOVAL
WHEREAS, the City of Folsom desires to enter into a professional services agreement for an initial period beginning June 1, 2022 through June 1, 2023, for shaded fuel break creation and ladder fuel removal; and
WHEREAS, the City of Folsom can, at its discretion based on successful completion of the initial agreement, extend the contract for up to two additional one-year extensions; and WHEREAS, proposals were solicited in accordance with Folsom Municipal Code Section
2.36.100 and advertised on February 2, 2022; and
WHEREAS, BrightView Holdings DBA BrightView Tree Care Services was the most qualified contractor; and
WHEREAS, the estimate for the initial term of the agreement will be $170,000; and WHEREAS, funds are budgeted in the amount of $170,000 in the Fiscal Year 2021-22 budget in the General Fund (Fund 010); and
WHEREAS, the agreement will be in a form acceptable to the City Attorney; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute an Agreement with BrightView Holdings DBA BrightView Tree Care Services for Shaded Fuel Break Creation and Ladder Fuel Removal.
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. 10837
04/12/2022 Item No.12.
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04/12/2022 Item No.12.
Folsom City Council
Staff Re ort
MEETING DATE: 4/12/2022
AGENDA SECTION: Joint Meeting Public Hearing
SUBJECT: Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022
FROM: Finance Department
RECOMMENDATION I CITY COUNCIL ACTION
It is recommended that the City Council adopt the following resolution:
Resolution No. 10835 - A Resolution of the City Council of the City of Folsom Authorizing the Issuance of the City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Bonds, Series 2022, the Execution of a First Supplemental Indenture Providing therefor, Authorizing the Execution of a Local Obligation Purchase Contract, and Authorizing Necessary Actions and the Execution of Other Documents in Connection therewith
It is recommended the Governing Board of the Authority adopt the following resolution:
Resolution No. 008-Folsom Ranch FA - A Resolution of the Governing Board of the Folsom Ranch Financing Authority Authorizing the Issuance, Sale and Delivery of Not to Exceed $17,000,000 Aggregate Principal Amount of City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022; Approving the Form and Substance of a Trust Agreement, Authorizing Modifications thereof and Execution and Delivery as Modified; Approving a Preliminary Official Statement, Authorizing Changes thereto and Execution and Delivery thereof and of an Official Statement to be Derived therefrom; Approving a Local Obligation Purchase Contract and a Bond Purchase Contract and Execution and Delivery of Each; and Authorizing Related Actions Necessary to Implement the Proposed Financing.
1
04/12/2022 Item No.13.
BACKGROUND/ ISSUE
Community Facilities District No. 23 (Folsom Ranch) (CFD No. 23) is a community facilities district organized by the City Council under the Mello-Roos Act for the purpose of providing for the construction and acquisition of certain public improvements and the financing of certain services to serve property within CFD No. 23. The City established CFD No. 23 on May 26, 2020 and designated six separate improvement areas at that time, including Improvement Area
1. Improvement Area 1 consists of a gross area of approximately 205 acres and is located wholly within the City of Folsom, east of East Bidwell Street, west of Placerville Road, north of Mangini Parkway, and south of U.S. Highway 50.
Development within Improvement Area 1 is planned to include 441 single-family high density units, 222 multi-family low density units and 265 multi-family high density units, for a total of 928 units. Property within Improvement Area 1 is in varying stages of development, including partially-improved lots, improved lots, homes under construction and completed homes, and it is anticipated that development will be completed in three main phases: Phase 2A, Phase 2B and Phase 2C. Phase 2A of development within Improvement Area 1 includes Villages 4, 7, 8 and 10 and Lots C and D and is entitled for a total of 560 units at the time of full build-out, comprised of 73 single-family high density units, 222 multi-family low density units and 265 multi-family high density units. Phase 2B of development includes Villages 1 and 2 and is entitled for a total of 162 single-family high density units at the time of full build out. Phase 2C of development includes Villages 3, 5 and 6 and is entitled for a total of 206 single-family high density units at the time of full build-out.
The cost to construct all the facilities necessary to service property within Improvement Area 1 is estimated at approximately $103,978,446 and is comprised ofbackbone infrastructure, soft costs and subdivision infrastructure. Backbone facilities infrastructure improvements for Improvement Area 1 are expected to include transportation improvements, water system improvements, recycled water system improvements, drainage system improvements, wastewater system improvements, and park, parkway and open space improvements.
Subdivision infrastructure improvements for development of Improvement Area 1 includes intract infrastructure such as underground utilities, subdivision roadways, street lighting, soundwalls and landscaping improvements. The tables below summarize the budgeted construction costs for each phase of development within Improvement Area 1.
Phase, ZA Budgeted Construction Costs
Descrlpti on
Comm 0,111 I nfr astructu lr'e
Gradrng and Backbone
Subdivtis io,n Improvements
:Soft Costs
:S
Costs
.11,5 50 7~_8
12,792,546
17,563,85.3
4,.232, 73:2
Total Constn.action Co1ts $ 46,:139,92[8
2
04/12/2022 Item No.13.
Phase 2B :Budgeted Oonsuu ction Costs
De1Scr~p'lion CQsts
Gradu,g and Backbo1ne
S.1.1bd lvlslon Improvements
Soft costs
$ 7,347,,4-62
12,641,188
1,606,000
Total Constt uctlon1 Costs $ 21,594.,,650
Phase 2C Budgeted Construction Costs
Description
Grading and Backbone
Subdivision Improvements
Soft Costs
$
Costs
13,162,068
18,130,000
4,951,810
Total Construction Costs $ 36,243,878
Notice of this public hearing was published in the Folsom Telegraph on April 7, 2022.
POLICY/ RULE
Resolution No. 9282 - A Resolution of the City Council of the City of Folsom Approving Goals and Policies for Community Facilities Districts
Chapter 3.110, "Community Facilities Financing", of the Folsom Municipal Code Mello-Roos Community Facilities Act of 1982
Marks-Roos Local Bond Pooling Act of 1985
ANALYSIS
The Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area 1 Special Tax Revenue Bonds, Series 2022 (Series 2022 Revenue Bonds) are being issued by the Folsom Ranch Financing Authority (FRFA) in a not to exceed amount of $17,000,000 to finance the purchase of the limited obligation special tax bonds (Local Obligations), issued by CFD No. 23 (Folsom Ranch). The purchase price of the Local Obligations will be used to finance the acquisition and construction of certain public facilities, fund a debt service reserve account, fund capitalized interest to September 1, 2022, and pay certain costs of issuance of the Local Obligations and Series 2022 Revenue Bonds. 3
04/12/2022 Item No.13.
A special tax will be levied and collected annually to service the Local Obligations. Every year, CFD 23 shall determine the annual special tax requirement relating to Improvement Area
1. The annual special tax requirement is that amount of special tax revenue required in any fiscal year for Improvement Area 1 to:
• Pay administrative expenses
• Pay annual debt service on all outstanding bonds for Improvement Area 1 • Pay other periodic costs on outstanding bonds, including credit enhancement or rebate payments, if applicable
• Pay any amounts required to replenish the reserve fund • Pay for reasonably anticipated delinquent special taxes • Fund Improvement Area 1 PA YGO costs
• Pay for authorized services
• Pay other associated costs as listed in the Rate and Method of Apportionment The special tax shall be levied each fiscal year proportionately on each Sacramento County assessor's parcel of taxable property within Improvement Area 1 at a rate up to 100% of the applicable maximum special tax to satisfy the annual special tax requirement. As of the most current appraisal, the appraised value for the property within Improvement Area 1 is $183,319,655 and the value-to-lien ratio is 5.9:1, which is in compliance with the City's CFD policy. The total projected residential property tax level for both developed single-family high density property and developed multi-family low-density property within CFD No. 23 Improvement Area 1 is approximately 1.92% and approximately 1. 93 %, respectively, and shall not exceed 2.0% of the estimated sales price of the respective homes to be constructed in Improvement Area 1.
Upon the conclusion of the noticed public hearing, and by adopting the proposed City Council Resolution, the City Council is taking the following actions in connection with the Local Obligations:
1. Determining that there are significant public benefits to the City from the proposed financing and approving the Series 2022 Revenue Bonds
2. Authorizing the issuance of an aggregate principal amount of not to exceed $17,000,000 in Local Obligations
3. Approving the form and substance and the execution and delivery of the First Supplemental Indenture with U.S. Bank Trust Company, National Association
4. Approving the form and substance and the execution and delivery of the Continuing Disclosure Certificate
5. Approving the form and substance and delivery of the Preliminary Official Statement, and authorizing the preparation, delivery and execution of a final Official Statement
6. Approving the form and substance and execution and delivery of the Local Obligation Purchase Contract
7. Approving the form and substance and execution and delivery of the Trust Agreement 4
04/12/2022 Item No.13.
8. Authorizing the officers of the City to execute any and all documents and instruments, for and on behalf of the City and/or CFD No. 23, to carry out the issuance of the Local Obligations
By adopting the proposed FRF A Resolution, the Governing Board is taking the following actions in connection with the Series 2022 Revenue Bonds:
1. Authorizing the issuance of an aggregate principal amount of not to exceed $17,000,000 in Series 2022 Revenue Bonds
2. Approving the form and substance and execution and delivery of the Trust Agreement
3. Approving the form and substance and execution and delivery of the Local Obligation Purchase Contract
4. Approving the form and substance and execution and delivery of the Bond Purchase Contract
5. Approving the form and substance of the Preliminary Official Statement authorizing the Treasurer to determine when said Preliminary Official Statement is final, and authorizing the distribution of both the Preliminary Official Statement and the Official Statement to be distributed by the Underwriter.
6. Authorizing the officers of the FRF A to execute and deliver any and all documents, and to do any and all things deemed necessary to comply with the terms and intent of this resolution.
Other documents included as exhibits to this staff report include:
• Preliminary Official Statement
• Trust Agreement
• First Supplemental Indenture
• Local Obligation Purchase Contract
• Bond Purchase Agreement
• Continuing Disclosure Certificate
• Good Faith Estimates
The City has engaged the following consultants to assist in the issuance of these Series 2022 Revenue Bonds:
Bond Counsel: Orrick, Herrington & Sutcliffe LLP
Disclosure Counsel: Orrick, Herrington & Sutcliffe LLP
Tax Consultant: NBS
Financial Advisor:
Trustee:
Fieldman, Rolapp & Associates, Inc.
U.S. Bank Trust Company, National Association
FINANCIAL IMPACT
There is no discemable financial impact on the City of Folsom. The CFD No. 23 formation, bonded indebtedness, and expenses, including those for Improvement Area 1, are solely the 5
04/12/2022 Item No.13.
responsibility of CFD No. 23. The City will receive reimbursement from the issuance of the Series 2022 Revenue Bonds for staff time and expenses and will receive an annual administrative fee throughout the term of CFD No. 23; these amounts are intended to offset expenses incurred by the City for administration and other items.
ENVIRONMENTAL REVIEW
On February 13, 2018, the City Council approved the Mangini Ranch Phase 2 Vesting Tentative Subdivision Map and determined that the Mangini Ranch Phase 2 Subdivision project is entirely consistent with the Folsom Plan Area Specific Plan (FPASP) and Westland Eagle Specific Plan Amendment and therefore exempt from review under the California Environmental Quality Act (CEQA) provided by Government Code section 65457 and CEQA Guidelines sections 15182. No additional environmental review is required.
ATTACHMENTS
1. Resolution No. 10835 - A Resolution of the City Council of the City of Folsom Authorizing the Issuance of the City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Bonds, Series 2022, the Execution of a First Supplemental Indenture Providing therefor, Authorizing the Execution of a Local Obligation Purchase Contract, and Authorizing Necessary Actions and the Execution of Other Documents in Connection therewith
2. Resolution No. 008-Folsom Ranch FA - A Resolution of the Governing Board of the Folsom Ranch Financing Authority Authorizing the Issuance, Sale and Delivery of Not to Exceed $17,000,000 Aggregate Principal Amount of City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022; Approving the Form and Substance of a Trust Agreement, Authorizing Modifications thereof and Execution and Delivery as Modified; Approving a Preliminary Official Statement, Authorizing Changes thereto and Execution and Delivery thereof and of an Official Statement to be Derived therefrom; Approving a Local Obligation Purchase Contract and a Bond Purchase Contract and Execution and Delivery of Each; and Authorizing Related Actions Necessary to Implement the Proposed Financing.
3. Trust Agreement by and among the Folsom Ranch Financing Authority and the City of Folsom Community Facilities District No. 23 (Folsom Ranch) and U.S. Bank Trust Company, National Association, as Trustee
4. First Supplemental Indenture between the City of Folsom Community Facilities District No. 23 (Folsom Ranch) and U.S. Bank Trust Company, National Association, as Trustee
5. Preliminary Official Statement for the Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022
6
04/12/2022 Item No.13.
6. Local Obligation Purchase Contract for the City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Bonds, Series 2022 between the Folsom Ranch Financing Authority and the City of Folsom Community Facilities District No. 23 (Folsom Ranch)
7. Bond Purchase Agreement for the Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022 between the Folsom Ranch Financing Authority and Piper Sandler & Co.
8. Continuing Disclosure Certificate
9. Good Faith Estimates for the City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Bonds, Series 2022 and the Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022 Submitted,
:;yrr· §racey Tamagni
Finance Director
Treasurer of the Folsom Ranch Financing Authority
7
04/12/2022 Item No.13.
ATTACHMENT 1
04/12/2022 Item No.13.
RESOLUTION NO. 10835
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM
AUTHORIZING THE ISSUANCE OF THE CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO. 23 (FOLSOM RANCH) IMPROVEMENT AREA NO. 1 SPECIAL TAX BONDS, SERIES 2022, THE EXECUTION OF A FIRST
SUPPLEMENTAL INDENTURE PROVIDING THEREFOR, AUTHORIZING THE
EXECUTION OF A LOCAL OBLIGATION PURCHASE CONTRACT, AND
AUTHORIZING NECESSARY ACTIONS AND THE EXECUTION OF OTHER
DOCUMENTS IN CONNECTION THEREWITH
WHEREAS, the City Council (the "City Council") of the City of Folsom (the "City") has formed the City of Folsom Community Facilities District No. 23 (Folsom Ranch) (the "Community Facilities District") and designated various improvement areas therein, including Improvement Area No. 1 (the "Improvement Area"), under the provisions of the Mello-Roos Community Facilities Act of 1982 (the "Act"); and
WHEREAS, the Community Facilities District is authorized under the Act to levy special taxes within the Improvement Area (the "Special Taxes") to pay the costs of certain public facilities (the "Facilities") and to issue bonds payable from the Special Taxes; and WHEREAS, in order to provide funds to finance certain of the Facilities (the "Project"), the Community Facilities District proposes to issue not to exceed $17,000,000 principal amount of its City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Bonds, Series 2022 (the "Local Obligations"); and WHEREAS, the Folsom Ranch Financing Authority (the "Authority") has agreed to purchase the Local Obligations pursuant to a Local Obligation Purchase Contract (the "Local Obligation Purchase Contract") between the Authority and the Community Facilities District with a portion of the proceeds of the Authority's City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022 (the "Authority Bonds"); and
WHEREAS, the City Council has determined in accordance with Government Code Section 53360.4 that a negotiated sale of the Local Obligations to the Authority in accordance with the terms of the Local Obligation Purchase Contract will result in a lower overall cost to the Community Facilities District than a public sale; and
WHEREAS, there has been submitted to the City Clerk of the City (the "City Clerk") a form of First Supplemental Indenture (the "First Supplemental Indenture"), between the Community Facilities District and U.S. Bank Trust Company, National Association, as trustee, supplementing and amending that certain Indenture, dated as of October 1, 2020 ( as supplemented by the First Supplemental Indenture, the "Indenture"), between the Community Facilities District and U.S. Bank Trust Company, National Association, as successor to U.S. Bank National Association, as successor to MUFG Union Bank, N.A., each as trustee, providing for the issuance of the Local Obligations and a form of Local Obligation Purchase Contract providing for the sale of the Local Obligations to the Authority; and
Resolution No. 10835
04/12/2022 Item No.13.
WHEREAS, there has been submitted to the City Clerk a form of Trust Agreement (the "Trust Agreement"), among the Authority, the Community Facilities District and U.S. Bank Trust Company, National Association, as trustee, providing for the issuance of the Authority Bonds; and WHEREAS, the Authority has authorized the sale of the Authority Bonds to Piper Sandler & Co., as underwriter (the "Underwriter"), with the net proceeds of sale thereof to be utilized to purchase the Local Obligations from the Community Facilities District; and WHEREAS, the Community Facilities District desires to assist the Underwriter in its compliance with Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 ("Rule 15c2-12") pursuant to a Continuing Disclosure Certificate ( the "Continuing Disclosure Certificate"); and
WHEREAS, the form of a Preliminary Official Statement (the "Preliminary Official Statement") to be used in connection with the offering and sale of the Authority Bonds has been prepared and is on file with the City Clerk; and
WHEREAS, there have been prepared and submitted to the City Council for consideration at this meeting the forms of:
(a) the Trust Agreement;
(b) the First Supplemental Indenture;
( c) the Local Obligation Purchase Contract;
( d) the Continuing Disclosure Certificate; and
( e) the Preliminary Official Statement; and
WHEREAS, the City Council has considered the evidence of the public benefits to the Community Facilities District of the proposed financing and is fully advised in the premises; and WHEREAS, the Community Facilities District desires to proceed to issue and sell the Local Obligations and to authorize the execution of such documents and the performance of such acts as may be necessary or desirable to effect the offering, sale and issuance of the Local Obligations; and
WHEREAS, on this date, the City held a public hearing on the financing of the Project in accordance with Section 6586.5 of Articles 1, 2, 3 and 4 of Chapter 5 of Division 7 of Title 1 ( commencing with Section 6500) of the Government Code of the State of California (the "Marks Roos Act"); and
WHEREAS, in accordance with Section 6586.5 of the Marks-Roos Act, notice of such hearing was published once at least five days prior to the hearing in the Folsom Telegraph, a newspaper of general circulation in the City; and
Resolution No. 10835
04/12/2022 Item No.13.
WHEREAS, Government Code Section 5852.1 requires that the City Council obtain from an underwriter, financial adviser or private lender and disclose, prior to authorization of the issuance of bonds with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public: (a) the true interest cost of the bonds, (b) the sum of all fees and charges paid to third parties with respect to the bonds, ( c) the amount of proceeds of the bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the bonds, and ( d) the sum total of all debt service payments on the bonds calculated to the final maturity of the bonds plus the fees and charges paid to third parties not paid with the proceeds of the bonds; and WHEREAS, in compliance with Government Code Section 5852.1, the City Council has obtained from Fieldman, Rolapp & Associates, Inc., the municipal adviser to the Community Facilities District, the required good faith estimates and such estimates have been disclosed at this meeting; and
WHEREAS, the City Council is the legislative body of the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom, as follows:
Section I.
and determines.
The foregoing recitals are true and correct, and the City Council so finds Section 2. The City Council, on behalf of the City, hereby approves the issuance of the Authority Bonds to finance the Project and finds that the use of the Marks-Roos Act to assist the Community Facilities District in financing the Project will result in significant public benefits to the citizens of the City, including more efficient delivery of local agency services to residential and commercial development.
Section 3. Subject to the conditions described in Section 8, the issuance of the Local Obligations in an aggregate principal amount not to exceed $17,000,000, on the terms and conditions set forth in, and subject to the limitations specified in, the Indenture, is hereby authorized and approved. The Local Obligations shall be dated, shall bear interest at the rates, shall mature on the dates, shall be subject to redemption, shall be issued in the form, and shall be as otherwise provided in the Indenture.
Section 4. The form of the First Supplemental Indenture providing for the issuance of the Local Obligations, on file with the City Clerk, is hereby approved, and the City Manager of the City (the "City Manager"), the Finance Director of the City (the "Finance Director") and the Chief Financial Officer of the City (the "Chief Financial Officer") and such other officers of the City as the City Manager, the Finance Director or the Chief Financial Officer shall designate ( each an "Authorized Officer" and collectively, the "Authorized Officers") are, and each of them is, hereby authorized and directed, for and in the name and on behalf of the Community Facilities District, to execute and deliver the First Supplemental Indenture in substantially said form, with such changes therein as may be approved by the City Attorney of the City (the "City Attorney"), such approval to be conclusively evidenced by the execution and delivery thereof.
Resolution No. I 0835
04/12/2022 Item No.13.
Section 5. The form of the Continuing Disclosure Certificate, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein, is hereby approved. The Authorized Officers are, and each of them is, hereby authorized and directed, for and in the name of the Community Facilities District, to execute and deliver the Continuing Disclosure Certificate in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Continuing Disclosure Certificate by such Authorized Officer.
Section 6. The Preliminary Official Statement, in substantially the form presented to this meeting and made a part hereof as though set forth in full herein, with such changes therein as may be approved by an Authorized Officer, is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Authority Bonds is hereby authorized and approved. The Authorized Officers are, and each of them is, hereby authorized and directed, for and in the name of the Community Facilities District, to certify to the Underwriter that the Preliminary Official Statement has been "deemed final" for purposes of Rule 15c2-12.
Section 7. The preparation and delivery of a final Official Statement (the "Official Statement"), and its use in connection with the offering and sale of the Authority Bonds is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement, with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. The Authorized Officers are, and each of them is, hereby authorized and directed to execute the final Official Statement and any amendment or supplement thereto, for and in the name of the Community Facilities District.
Section 8. The form of the Local Obligation Purchase Contract providing for the sale of the Local Obligations to the Authority, on file with the City Clerk, is hereby approved, and the Authorized Officers are, and each of them is, hereby authorized and directed, for and in the name of the Community Facilities District, to execute and deliver the Local Obligation Purchase Contract in substantially said form, with such changes therein as may be approved by the City Attorney, such approval to be conclusively evidenced by the execution and delivery thereof; provided that the final maturity of the Local Obligations shall be no later than September 1, 2052, the principal amount of the Local Obligations shall not exceed seventeen million dollars ($17,000,000) and the true interest cost (taking into consideration the associated underwriter's discount and any original issue premium or discount relating to the Authority Bonds) of the Local Obligations shall not exceed five and one half percent (5.5%).
Section 9. The form of the Trust Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein is hereby approved. The Authorized Officers are, and each of them is, hereby authorized and directed, for and in the name of the Community Facilities District, to execute and deliver the Trust Agreement in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Trust Agreement by such Authorized Officer.
Resolution No. 10835
04/12/2022 Item No.13.
Section 10. Pursuant to Section 53345.8 of the Act and the City's Local Goals and Policies, the City Council hereby finds and determines that the value of the real property that would be subject to the Special Taxes to pay debt service on the Local Obligations will be at least three (3) times the principal amount of the Local Obligations to be sold and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act on property within the Improvement Area or a special assessment levied on property within the Improvement Area. The City Council determines in its sole discretion that it is necessary and desirable to waive certain of its Local Goals and Policies to the extent the issuance of the Local Obligations does not conform thereto.
Section 11. The officers of the City are hereby authorized and directed, jointly and severally, for and on behalf of the City and/or the Community Facilities District to do any and all things that they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this resolution, including any subsequent amendments, waivers or consents entered into or given in accordance with any of the documents approved hereby. The City Manager, the Finance Director, the Chief Financial Officer, the City Clerk and the officers of the City are hereby authorized and directed to execute and deliver, for and on behalf of the City and/or the Community Facilities District, any and all certificates and representations necessary and desirable to accomplish the transactions set forth above.
Section 12. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED this 12th day of April, 2022, by the following roll call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember( s):
Kerri M. Howell, MAYOR
ATTEST:
Christa Freemantle, CITY CLERK
Resolution No. 10835
04/12/2022 Item No.13.
ATTACHMENT 2
04/12/2022 Item No.13.
RESOLUTION NO. 008-FOLSOM RANCH FA
RESOLUTION OF THE GOVERNING BOARD OF THE FOLSOM RANCH
FINANCING AUTHORITY AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF NOT TO EXCEED $17,000,000 AGGREGATE PRINCIPAL AMOUNT OF CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO. 23 (FOLSOM RANCH) IMPROVEMENT AREA NO. 1 SPECIAL TAX REVENUE BONDS, SERIES 2022;
APPROVING THE FORM AND SUBSTANCE OF A TRUST AGREEMENT,
AUTHORIZING MODIFICATIONS THEREOF AND EXECUTION AND DELIVERY AS MODIFIED; APPROVING A PRELIMINARY OFFICIAL STATEMENT,
AUTHORIZING CHANGES THERETO AND EXECUTION AND DELIVERY
THEREOF AND OF AN OFFICIAL STATEMENT TO BE DERIVED THEREFROM;
APPROVING A LOCAL OBLIGATION PURCHASE CONTRACT AND A BOND PURCHASE CONTRACT AND EXECUTION AND DELIVERY OF EACH; AND
AUTHORIZING RELATED ACTIONS NECESSARY TO IMPLEMENT THE
PROPOSED FINANCING
WHEREAS, the Folsom Ranch Financing Authority is a joint exercise of powers entity duly organized and existing. under and by virtue of the laws of the State of California (the "Authority"); and
WHEREAS, the City Council (the "City Council") of the City of Folsom (the "City") has formed the City of Folsom Community Facilities District No. 23 (Folsom Ranch) (the "Community Facilities District") and designated various improvement areas therein, including Improvement Area No. 1, under the provisions of the Mello-Roos Community Facilities Act of 1982 (the "Act"); and
WHEREAS, the Community Facilities District has completed its legal proceedings under the Act with respect to authorizing the issuance and sale of the "City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Bonds, Series 2022" (the "Local Obligations") for the purpose of financing certain public facilities within the City south of Highway 50;
WHEREAS, the Community Facilities District is empowered under the provisions of the Act to undertake legal proceedings for the levy of a special tax and for the issuance, sale and delivery of special tax bonds upon the security of the recorded special tax liens; and WHEREAS, the Authority is empowered under the provisions of Article 4, Chapter 5, Division 7, Title 1 of the California Government Code ( the "Law") to issue its bonds for the purpose of purchasing various local obligations issued by certain local agencies and applying the proceeds of the bonds to finance certain authorized public facilities; and WHEREAS, the Authority desires to issue the "Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022" (the "Bonds") pursuant to that certain Trust Agreement (the "Trust Agreement"), among the Authority, the Community Facilities District and Resolution No. 008-Folsom Ranch FA
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04/12/2022 Item No.13.
U.S. Bank Trust Company, National Association, as trustee (the "Trustee"), in order to provide funds to purchase the Local Obligations; and
WHEREAS, the Authority has determined that the estimated amount necessary to finance the purchase of the Local Obligations will require the issuance of the Bonds in the aggregate principal amount not to exceed seventeen million dollars ($17,000,000); and WHEREAS, the Authority and the Community Facilities District have determined that all things necessary to make the Bonds, when authenticated by the Trustee, and issued as provided in the Trust Agreement, the valid, binding and legal obligations of the Authority according to the import thereof and hereof have been done and performed; and WHEREAS, in furtherance of implementing the financing, there have been filed with the Authority Secretary for consideration and approval by this Board forms of the following:
(a) a Trust Agreement, under the terms of which the Bonds are to be issued and the Revenues ( as said term is defined in the Trust Agreement and as said Revenues are received by the Authority as holder of the Local Obligations) are to be administered to pay the principal of and interest on the Bonds; (b) a Local Obligation Purchase Contract, under the terms of which, among other things, the Community Facilities District agrees to sell and the Authority agrees to purchase the Local Obligations;
( c) a Bond Purchase Contract, under the terms of which, among other things, the Authority agrees to sell and the underwriter agrees to purchase the Bonds; and
( d) a Preliminary Official Statement, describing the Bonds and the Local Obligations; and
WHEREAS, Government Code Section 5852.1 requires that the Governing Board of the Authority obtain from an underwriter, financial adviser or private lender and disclose, prior to authorization of the issuance of bonds with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public: (a) the true interest cost of the bonds, (b) the sum of all fees and charges paid to third parties with respect to the bonds, ( c) the amount of proceeds of the bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the bonds, and ( d) the sum total of all debt service payments on the bonds calculated to the final maturity of the bonds plus the fees and charges paid to third parties not paid with the proceeds of the bonds; and WHEREAS, in compliance with Government Code Section 5852.1, the Governing Board of the Authority has obtained from Fieldman, Rolapp & Associates, Inc., municipal adviser to the Authority, the required good faith estimates and such estimates have been disclosed at this meeting; and
WHEREAS, being fully advised in the matter of the proposed financing program, this Board wishes to proceed with implementation of said financing program; and Resolution No. 008-Folsom Ranch FA
04/12/2022 Item No.13.
WHEREAS, all acts, conditions and things required by the Constitution and laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the financing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the Authority is now duly authorized and empowered, pursuant to each and every requirement of law, to authorize the execution and delivery of certain documents in order to further implement the financing in the manner and upon the terms herein provided; and WHEREAS, as required by the Law, the City has conducted a public hearing and has determined that the issuance of the Bonds by the Authority and the acquisition of the Local Obligations will result in significant public benefits, including more efficient delivery of local agency services to residential and commercial development.
NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the Folsom Ranch Financing Authority as follows:
Section I.
and determines.
The foregoing recitals are true and correct, and this Board so finds Section 2. Pursuant to the Law, the Bonds shall be issued in the aggregate principal amount of not to exceed seventeen million dollars ($17,000,000). No Bond shall mature later than September 1, 2052.
Section 3. The form and substance of the Trust Agreement are hereby approved. The Treasurer of the Authority or designee thereof is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Trust Agreement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
Section 4. The form and substance of the Local Obligation Purchase Contract is hereby approved. The Treasurer of the Authority or designee thereof is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Local Obligation Purchase Contract in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
Section 5. The form and substance of the Bond Purchase Contract is hereby approved. The Treasurer of the Authority or designee thereof is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Bond Purchase Contract in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided that the true interest cost of the Bonds shall not exceed five and one half percent (5.5%) and the underwriter's discount (exclusive of original issue discount) shall not exceed one and one half percent (1.50%).
Section 6. (a) The form and substance of the Preliminary Official Statement is hereby approved. The Treasurer of the Authority or designee thereof is authorized to execute the final Official Statement to be derived therefrom.
Resolution No. 008-Folsom Ranch FA
04/12/2022 Item No.13.
(b) This Board hereby authorizes the Treasurer of the Authority or designee thereof to find and determine that said Preliminary Official Statement in preliminary form is, and as of its date shall be deemed "final" for purposes of Rule 15c2-12 of the Securities and Exchange Commission, and the Treasurer of the Authority or designee thereof is hereby authorized to execute a certificate to such effect in the customary form.
( c) The Treasurer of the Authority or designee is authorized to approve corrections and additions to the Preliminary Official Statement by supplement or amendment thereto, by appropriate insertions, or otherwise as appropriate, provided that such corrections or additions shall be regarded by such officer as necessary to cause the information contained therein to conform to facts material to the Bonds or the Local Obligations or to the proceedings of this Board or the City Council or that such corrections or additions are in form rather than in substance. ( d) The underwriter of the Bonds is authorized to distribute said Preliminary Official Statement and the final Official Statement to be derived therefrom in connection with the sale and delivery of the Bonds.
Section 7. The officers of the Authority are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents, including any agency agreement, which they may deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution, including any subsequent amendments, waivers or consents entered into or given in accordance with any of the documents approved hereby, and to obtain a policy of bond insurance, a rating and/or a reserve fund surety policy for any series of the Bonds. Such actions heretofore taken by such officers are hereby ratified, confirmed and approved.
Section 8. This resolution shall take effect immediately upon its passage.
Resolution No. 008-Folsom Ranch FA
04/12/2022 Item No.13.
PASSED AND ADOPTED this 12th day of April, 2022, by the following roll call vote:
AYES: Board Member(s):
NOES: Board Member(s):
ABSENT: Board Member(s):
ABSTAIN: Board Member(s):
Kerri M. Howell, CHAIR
ATTEST:
Christa Freemantle, SECRETARY
Resolution No. 008-Folsom Ranch FA
04/12/2022 Item No.13.
ATTACHMENT 3
04/12/2022 Item No.13.
OH&SDRAFT
3/10/22
TRUST AGREEMENT
by and among the
FOLSOM RANCH FINANCING AUTHORITY
and the
CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 23
(FOLSOM RANCH)
and
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
as Trustee
Relating to the
$[ l
FOLSOM RANCH FINANCING AUTHORITY
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT
NO. 23 (FOLSOM RANCH) IMPROVEMENT AREA NO. 1
SPECIAL TAX REVENUE BONDS,
SERIES 2022
Dated as of May 1, 2022
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TRUST AGREEMENT
This Trust Agreement (the "Trust Agreement"), dated as of May 1, 2022, by and among the Folsom Ranch Financing Authority, a joint exercise of powers agency duly organized and existing under the laws of the State of California (the "Authority"), the City of Folsom Community Facilities District No. 23 (Folsom Ranch), organized and existing under and by virtue of the laws of the State of California (the "Community Facilities District") and U.S. Bank Trust Company, National Association, a national banking association duly organized and existing under the laws of the United States of America, as Trustee (the "Trustee"); WITNESS ETH:
WHEREAS, the Authority is empowered under the provisions of the Marks-Roos Local Bond Pooling Act of 1985, being Article 4, Chapter 5, Division 7, Title 1 of the California Government Code (the "Law"), to issue its bonds for the purpose of purchasing various Local Obligations (as defined herein) issued by certain local agencies; and WHEREAS, the Authority has determined to issue its Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022 (the "Authority Bonds") to be secured by a pledge, lien and claim upon the Revenues (as that term is defined herein) in order to provide a portion of the funds necessary to purchase the Local Obligations (as that term is defined herein); and
WHEREAS, the Authority and the Community Facilities District have determined that all things necessary to make the Authority Bonds (as that term is defined herein), when issued by the Authority and authenticated by the Trustee and delivered as provided herein, valid, binding and legal obligations of the Authority according to the import thereof and hereof have been done and performed; and
NOW, THEREFORE, THIS TRUST AGREEMENT WITNESSETH, that in consideration of the premises, the acceptance by the Trustee of the trusts hereby created and other good and valuable consideration, the receipt of which is hereby acknowledged, and in order to secure the payment of the interest on and principal of and redemption premiums, if any, on all Authority Bonds Outstanding (as that term is defined herein) hereunder from time to time according to their tenor and effect, and the making of such other payments required to be made by the Authority and the satisfaction of all the agreements, conditions, covenants and terms expressed and implied herein and in the Authority Bonds, the Authority does hereby assign, bargain, convey, grant, mortgage and pledge a security interest unto the Trustee and unto its successors and assigns hereunder forever in all right, title and interest of the Authority in, to and under, subject to the provisions hereof permitting the application thereof for the purposes and on the terms and conditions set forth therein, each and all of the following (collectively, the "Trust Estate"):
(a) the proceeds of sale of the Authority Bonds;
(b) the Revenues (as that term is defined herein);
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(c) the amounts in the Funds (as that term is defined herein) established and held hereunder, except amounts in the Rebate Fund; and
( d) the Local Obligations;
TO HA VE AND TO HOLD IN TRUST all of the same hereby assigned, bargained, conveyed, granted, mortgaged and pledged or agreed or intended so to be to the Trustee and to its successors and assigns forever for the equal and ratable benefit of the Owner issued by the Authority hereunder and authenticated by the Trustee and delivered hereunder and Outstanding hereunder, without any priority as to the Trust Estate of any one Authority Bond over any other (except as expressly provided in or permitted hereby), upon the trusts and subject to the agreements, conditions, covenants and terms hereinafter set forth; AND THIS TRUST AGREEMENT FURTHER WITNESSETH, and it is expressly declared, that all Authority Bonds issued and secured hereunder are to be issued, authenticated and delivered and all of the rights and property hereby assigned, bargained, conveyed, granted, mortgaged and pledged are to be dealt with and disposed of under, upon and subject to the agreements, conditions, covenants, terms, trusts and uses as hereinafter expressed, and the Authority and the Community Facilities District have agreed and covenanted, and do hereby agree and covenant, with the Trustee and with the Owner, as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. Definitions. The terms set forth below shall have the following meanings set forth herein, unless the context clearly otherwise requires:
"Act" shall mean the Mello-Roos Community Facilities Act of 1982, as amended (being Sections 53311 et seq. of the Government Code of the State of California), and all laws amendatory thereof or supplemental thereto.
"Authority" shall mean the Folsom Ranch Financing Authority, a joint exercise of powers agency duly organized and existing under the laws of the State of California, and its successors and assigns.
"Authority Bond" or "Authority Bonds" shall mean the Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022. "Serial Authority Bonds" shall mean the Authority Bonds for which no Minimum Sinking Fund Payments are provided. "Term Authority Bonds" shall mean the Authority Bonds which are payable on or before their specified maturity date from Minimum Sinking Fund Payments established for that purpose and calculated to retire such Authority Bonds on or before their specified maturity date. "Authorized Denominations" shall mean five thousand dollars ($5,000) and any integral multiple thereof, but not exceeding the principal amount of the Authority Bonds maturing on any one date.
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"Authorized Officer" shall mean, when used with reference to the Authority, the Chair, the Treasurer or any other person authorized by the Authority in a Written Order or · resolution to perform an act or sign a document on behalf of the Authority for the purposes hereof, and when used with reference to the Community Facilities District and the City, acting for and on behalf of the Community Facilities District, the Mayor, the Chief Financial Officer, the Finance Director or any other person authorized by the City or the Community Facilities District, as applicable, in a Written Order or resolution to perform an act or sign a document on behalf of the City or the Community Facilities District for the purposes hereof. "Bond Counsel" shall mean an attorney-at-law, or a firm of such attorneys, of nationally recognized standing in matters pertaining to the tax-exempt nature of interest on obligations issued by states and their political subdivisions. "Bond Register" shall mean the registration books specified as such in Section 2.05. "Bond Year" shall mean the twelve-month period terminating on September 1 of each year; provided, that the first Bond Year shall commence on the date of the execution and initial delivery of the Authority Bonds and end on September 1, 2022. "Business Day" shall mean any day other than (i) a Saturday or a Sunday or (ii) a day on which commercial banks in New York, New York, or the city in which the Corporate Trust Office of the Trustee is located, are closed.
"Cash Flow Certificate" shall mean a written certificate executed by a Cash Flow Consultant.
"Cash Flow Consultant" shall mean a financial consultant or firm of such consultants generally recognized to be well qualified in the financial consulting field relating to municipal securities such as the Authority Bonds, appointed and paid by the Community Facilities District or the Authority and who, or each of whom:
(1) is in fact independent and not under the domination of the Community Facilities District, the Authority or the City;
(2) does not have any substantial interest, direct or indirect, with the Community Facilities District, the Authority or the City; and (3) is not connected with the Community Facilities District, the Authority or the City as a member, officer or employee of the Community Facilities District, the Authority or the City, but who may be regularly retained to make annual or other reports to the Community Facilities District, the Authority or the City.
The Cash Flow Consultant shall not, as a result of its role as Cash Flow Consultant, be deemed to have a "financial advisory relationship" with the Authority within the meaning of California Government Code Section 53590(c).
"Chair" shall mean the Chair of the Authority.
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"Chief Financial Officer" shall mean the Chief Financial Officer of the City. "City" shall mean the City of Folsom, a charter city and municipal corporation duly organized and existing under its charter and the Constitution and laws of the State of California, and its successors.
"City Manager" shall mean the City Manager of the City. "Code" shall mean the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder.
"Community Facilities District" shall mean the City of Folsom Community Facilities District No. 23 (Folsom Ranch), established by the City pursuant to the Act. "Corporate Trust Office" shall mean the designated corporate trust office of the Trustee at the location set forth in Section 13.03.
"Dated Date" shall mean the applicable date of the original execution and delivery of the Authority Bonds.
"DTC" shall mean The Depository Trust Company, in New York, New York; or, in accordance with then current guidelines of the Securities and Exchange Commission, such other securities depository as the Authority may designate in an Officer's Certificate delivered to the Trustee.
"Event of Default" shall mean an event of default specified as such in Section 8.01. "Finance Director" shall mean the Finance Director of the City. "Fund" or "Funds" shall mean any or all, as the case may be, of the Revenue Fund, the Interest Fund, the Principal Fund, the Redemption Fund, the Proceeds Fund, the Local Obligations Fund and the Rebate Fund, including all accounts therein. "Government Obligations" shall mean any Investment Securities described in clause (i) or clause (ii) of the definition thereof but excluding any securities that are callable or prepay able prior to the redemption or maturity date of the Authority Bonds to be paid therefrom, and excluding any securities that do not have a fixed par value or the terms of which do not promise a fixed dollar amount at maturity or earlier call date. "Improvement Area" means Improvement Area No. 1 of the Community Facilities District.
"Indenture Trustee" means U.S. Bank Trust Company, National Association, as successor trustee under the Local Obligations Indenture. "Interest Fund" shall mean the fund by that name established pursuant to Section 5.01.
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"Interest Payment Date" shall mean March 1 and September 1 in each year, commencing on [September 1, 2022].
"Investment Securities" shall mean and include any of the following securities, to the extent permitted by the laws of the State and the City's Investment Policy, for and on behalf of the Community Facilities District as it may be amended from time to time:
(i) Cash (insured at all times by the Federal Deposit Insurance Corporation or fully collateralized by Investment Securities described in clause (ii) hereof); (ii) Obligations of, or obligations guaranteed as to principal and interest by, the United States of America or any agency or instrumentality thereof, when such obligations are backed by the full faith and credit of the United States of America including:
(A) All direct or fully guaranteed U.S. Treasury obligations; (B) Farmers Home Administration;
(C) General Services Administration;
(D) Guaranteed Title XI financing;
(E) Government National Mortgage Association (GNMA); and (F) U.S. Treasury - State and Local Government Series;
(iii) Obligations of any of the following federal agencies which obligations represent the full faith and credit of the United States of America, including:
(A) Export-Import Bank;
(B) Rural Economic Community Development Administration; (C) U.S. Maritime Administration;
(D) Small Business Administration;
(E) U.S. Department of Housing & Urban Development (PHAs); (F) Federal Housing Administration; and
(G) Federal Financing Bank;
(iv) Direct obligations of any of the following federal agencies which obligations are not fully guaranteed by the full faith and credit of the United States of America:
(A) Senior debt obligations issued by the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC); 5 4149-1157-6629.3
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(B) Obligations of the Resolution Funding Corporation (REFCORP); (C) Senior debt obligations of the Federal Home Loan Bank System; and
(D) Senior debt obligations of other Government Sponsored Agencies; (v) U.S. Dollar-denominated deposit accounts, federal funds and bankers' acceptances with domestic commercial banks which have a rating on their short term certificates of deposit on the date of purchase of"P-1" by Moody's and "A-1" or "A-1 +" by S&P and maturing not more than 360 calendar days after the date of purchase (provided that ratings on holding companies shall not be considered the rating of the bank) or fully collateralized by Investment Securities described in clause (ii) hereof for amounts in excess of deposit insurance; (vi) Commercial paper which is rated at the time of purchase in the single highest classification, "P-1" by Moody's and "A-1 +" by S&P and which matures not more than 270 calendar days after the date of purchase;
(vii) Investments in a money market fund rated "AAAm" or "AAAm-G" or better by S&P, including funds for which the Trustee or an affiliate provides investment management or other services but excluding funds with a floating net asset value; (viii) "Pre-refunded Municipal Obligations," defined as follows: any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice and (A) which are rated, based on an irrevocable escrow account or fund (the "escrow"), in the highest rating category of Moody's or S&P or any successors thereto; or (B) ( 1) which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or obligations described in clause (ii) of this definition, which escrow may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and (2) which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this paragraph on the maturity date or dates specified in the irrevocable instructions referred to above, as appropriate;
(ix) Any bonds or other obligations of any agency, instrumentality or local governmental unit of any state of the United States of America which are rated "Aaa/ AAA" or general obligations of any such state with ratings of"A2" or higher by Moody's and "A" or higher by S&P.
(x) The Local Agency Investment Fund (established under Sections 53600- 53609 of the California Government Code, as amended or supplemented from time to time). 6 4149-1157-6629.3
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"Law" shall mean the Marks-Roos Local Bond Pooling Act of 1985, being Article 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code, and all laws amendatory thereof or supplemental thereto.
"Letter of Representation" shall mean the letter of the Authority delivered to and accepted by the Depository on or prior to the issuance of the Authority Bonds setting forth the basis on which the Depository serves as depository for such Authority Bonds as originally executed or as it may be supplemented or revised or replaced by a letter to a substitute depository. "Local Obligations Fund" shall mean the fund by that name established pursuant to Section 5.01.
"Local Obligations Indenture" shall mean the indenture authorizing and securing the Local Obligations and pursuant to which the Local Obligations were issued, as supplemented. "Local Obligation Purchase Contract" shall mean the purchase contract entered into between the Authority and the Community Facilities District providing for the purchase of the Local Obligations by the Authority with the proceeds of the Authority Bonds. "Local Obligations" shall mean the Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Bonds, Series 2022 to be issued by the Community Facilities District pursuant to the Act and to be purchased by the Authority pursuant to the Law. "Mayor" shall mean the Mayor of the City.
"Minimum Sinking Fund Payments" shall mean the payments required by Section 2.01 to be deposited in the Sinking Fund Account. "Moody's" shall mean Moody's Investors Service Inc., a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, and its successors or assigns, except that if such entity shall be dissolved or liquidated or shall no longer perform the functions of a municipal securities rating agency, then the term "Moody's" shall be deemed to refer to any other nationally recognized municipal securities rating agency selected by the Authority (which shall be under no liability by reason of such selection). "Officer's Certificate" shall mean a certificate signed by an Authorized Officer. "Opinion of Bond Counsel" shall mean a legal opinion signed by a Bond Counsel selected by the Authority.
"Outstanding" shall mean, with respect to the Authority Bonds and as of any date, all Authority Bonds authorized, issued, authenticated and delivered hereunder, except:
(a) Authority Bonds canceled or surrendered to the Trustee for cancellation pursuant to Section 2.08;
(b) Authority Bonds deemed to have been paid pursuant to Section 12.02; 7 4149-1157-6629.3
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( c) Authority Bonds in lieu of or in substitution for which other Authority Bonds shall have been authenticated and delivered pursuant to Section 2.03; and (d) Authority Bonds paid pursuant to Section 2.03.
"Owner" shall mean, as of any date, the Person or Persons in whose name or names a particular Bond shall be registered on the Bond Register as of such date. "Person" shall mean an individual, a corporation, a partnership, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof.
"Principal Fund" shall mean the fund by that name established pursuant to Section 5.01.
"Principal Installment," when used with respect to any Principal Payment Date, shall mean the principal amount of Outstanding Authority Bonds due on such date. "Principal Payment Date," when used with reference to an Authority Bond, shall mean the maturity date or the Minimum Sinking Fund Payment date for such Authority Bond. "Proceeds Fund" shall mean the fund by that name established pursuant to Section 5.01.
"Rebate Fund" shall mean the fund by that name established pursuant to Section 5.01.
"Rebate Instructions" shall mean the calculations and directions required to be delivered to the Trustee by the Authority pursuant to the Tax Certificate. "Rebate Requirement" shall mean the Rebate Requirement defined in the Tax Certificate.
"Record Date" shall mean the fifteenth (15th) day of the month preceding any Interest Payment Date, whether or not such day is a Business Day. "Redemption Fund" shall mean the fund by that name established pursuant to Section 5.01.
"Responsible Officer of the Trustee" means any officer within the global corporate trust department ( or any successor group or department of the Trustee) including any vice president, assistant vice president, assistant secretary or any other officer or assistant officer of the Trustee customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively, with responsibility for the administration of this Trust Agreement.
"Revenue Fund" shall mean the fund by that name established pursuant to Section 5.01.
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"Revenues" shall mean all amounts received by the Trustee as the payment of interest on, or the equivalent thereof, and the payment or return of principal of, or redemption premiums, if any, on, or the equivalent thereof, all Local Obligations, whether as a result of scheduled payments, or redemption premiums, Special Tax Prepayments or remedial proceedings taken in the event of a default thereon, and all investment earnings on any money held in the Funds held hereunder ( except the Rebate Fund).
"S&P" shall mean S&P Global Ratings, a business of Standard & Poor's Financial Services LLC, and its successors or assigns, except that if such entity shall be dissolved or liquidated or shall no longer perform the functions of a municipal securities rating agency, then the term "S&P" shall be deemed to refer to any other nationally recognized municipal securities rating agency selected by the Authority (which shall be under no liability by reason of such selection).
"Secretary" shall mean the Secretary of the Authority.
"Sinking Fund Account" shall mean the account within the Principal Fund by that name established pursuant to Section 2.01.
"Special Tax" shall mean the special tax authorized to be levied and collected annually on all Taxable Property in the Improvement Area under and pursuant to the Act at the special election held in the Community Facilities District. "Special Tax Prepayments" shall mean all payments to the Community Facilities District by or on behalf of the owner of a parcel within the Improvement Area subject to a Special Tax to accomplish a pay-off of the Special Tax obligation pertaining to such parcel and the discharge of the Special Tax lien with respect to such parcel ( except the portion thereof, if any, which represents accrued interest on the Local Obligations). "Special Tax Revenues" shall mean all money collected and received by the Community Facilities District on account of unpaid Special Tax obligations within the Improvement Area, including all amounts collected in the normal course by the Community Facilities District, all Special Tax Prepayments and all amounts received by the Community Facilities District as a result of superior court foreclosure proceedings brought to enforce payment of delinquent Special Taxes within the Improvement Area, but excluding therefrom any amounts explicitly included therein on account of collection charges, administrative cost charges, or attorneys' fees and costs paid as a result of foreclosure actions. "Special Record Date" shall mean the date established by the Trustee pursuant to Section 2.01 as a record date for the payment of defaulted interest on the Authority Bonds. "State" shall mean the State of California.
"Supplemental Trust Agreement" shall mean any trust agreement supplemental to or amendatory of this Trust Agreement which is duly executed and delivered in accordance with the provisions of Article XI.
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"Term Authority Bonds" shall mean the Authority Bonds which are payable on or before their specified maturity date from Minimum Sinking Fund Payments established for that purpose and calculated to retire such Authority Bonds on or before their specified maturity date. "Tax Certificate" shall mean each certificate for the Authority Bonds relating to various federal tax requirements, including the requirements of Section 148 of the Code, signed by the Authority and the Community Facilities District on the Dated Date, as the same may be amended or supplemented in accordance with its terms.
"Treasurer" shall mean the Treasurer of the Authority.
"Taxable Property" shall mean all property within the Improvement Area taxable under the Act in accordance with the proceedings for the authorization of the issuance of the Local Obligations and the levy and collection of the Special Tax. "Trust Agreement" shall mean this Trust Agreement dated as of May 1, 2022, by and among the Authority, the Community Facilities District and the Trustee pursuant to which the Authority Bonds are to be issued, as amended or supplemented from time to time in accordance with its terms.
"Trust Estate" shall have the meaning ascribed thereto in the granting clause hereof. "Trustee" shall mean U.S. Bank Trust Company, National Association, a national banking association duly organized and existing under the laws of the United States of America, in its capacity as Trustee hereunder, and any successor as Trustee hereunder. "Written Order" shall mean, when used with reference to the Authority, a written order or written direction of the Authority to the Trustee signed by an Authorized Officer, and when used with reference to the Community Facilities District, an instrument in writing signed by the City Manager or the Finance Director, or by any other officer of the City duly authorized by the City Council, as legislative body of the Community Facilities District, for that purpose.
SECTION 1.02. Rules of Construction. Except where the context otherwise requires, all words imparting the singular number shall include the plural number and vice versa, and all pronouns inferring the masculine gender shall include the feminine gender and vice versa. The headings or titles of the several articles and sections hereof and the table of contents appended hereto shall be solely for convenience of reference and shall not affect the meaning, construction or effect hereof. All references herein to "Articles," "Sections" and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof; and the words "hereby," "herein," "hereof," "hereto," "herewith," "hereunder" and other words of similar import refer to this Trust Agreement as a whole and not to any particular article, section, subdivision or clause thereof.
ARTICLE II
TERMS OF AUTHORITY BONDS
SECTION 2.01. The Authority Bonds. The Authority Bonds shall be issued under and secured by this Trust Agreement and shall be in the form of fully registered bonds m 10 4149-1157-6629.3
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denominations of five thousand dollars ($5,000) or any integral multiple of five thousand dollars ($5,000) in excess thereof designated the "Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 1 Special Tax Revenue Bonds, Series 2022" and shall be in the aggregate principal amount of dollars($( ]). The Authority Bonds shall be dated the Dated Date ~ - - - - - ~ and shall bear interest at the rates specified in the table below, such interest being payable semiannually on each Interest Payment Date, and shall mature on the Principal Payment Dates in the following years in the following principal amounts, namely:
Principal
Payment Date
(September 1)
Principal
Amount
Interest
Rate
$ %
• Term Bonds
Minimum Sinking Fund Payments are hereby established for the mandatory redemption and payment of the Term Authority Bonds, which payments shall become due during the years ending on the dates and in the amounts set forth in the following schedule ( except that if any Term Authority Bonds have been redeemed pursuant to Section 4.02 or 4.03, the amounts of such Minimum Sinking Fund Payments shall be reduced proportionately by the principal amount of all such Term Authority Bonds so redeemed), namely:
Term Authority Bond Maturing September 1, 20( ]
Year
Ending
September 1
Minimum
Sinking Fund
Account Payment
$
*
• Maturity.
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Term Authority Bond Maturing September 1, 20[ ]
Year
Ending
September 1
Minimum
Sinking Fund
Account Payment
$
• Maturity.
All such Minimum Sinking Fund Payments for the Term Authority Bonds shall be deposited in a separate account in the Principal Fund, which account is hereby established and shall be known as the Sinking Fund Account and which account the Authority hereby agrees and covenants to cause to be maintained by the Trustee so long as any Term Authority Bonds are Outstanding. All money in the Sinking Fund Account on September 1 of each year during the period beginning on September 1, 20LJ , and ending on September 1, 20L ], both years inclusive, shall be used and withdrawn by the Authority on each such September 1 for the mandatory redemption or payment of the Term Authority Bonds maturing on September 1, 20LJ ; and all money in the Sinking Fund Account on September 1 of each year during the period beginning on September 1, 20L ], and ending on September 1, 20L ], both years inclusive, shall be used and withdrawn by the Authority on each such September 1 for the mandatory redemption or payment of the Term Authority Bonds maturing on September 1, 20L ], and the Authority hereby agrees and covenants with the Owners of the respective Term Authority Bonds to call and redeem in accordance with Section 4.04 or pay the Term Authority Bonds from Minimum Sinking Fund Payments deposited in the Sinking Fund Account pursuant to this paragraph whenever on September 1 of any year there is money in the Sinking Fund Account available for such purpose.
The interest on and principal of and redemption premiums, if any, on the Authority Bonds shall be payable in lawful money of the United States of America. The Authority Bonds shall be issued as fully registered bonds and shall be numbered from one (1) upward. The Authority Bonds shall bear interest from the Dated Date. Payment of the interest on any Authority Bond shall be made to the Person whose name appears on the Bond Register as the Owner thereof as of the close of business on the Record Date, such interest to be paid by check mailed by first class mail on each Interest Payment Date to the Owner at the address which appears on the Bond Register as of the Record Date for that purpose; except that in the case of an Owner of one million dollars ($1,000,000) or more in aggregate principal amount of Authority Bonds, upon written request of such Owner to the Trustee received not later than such Record Date, such interest shall be paid on such Interest Payment Date in immediately available funds by wire transfer to an account in a bank or trust company or savings bank that is a member of the Federal Reserve System and that is located in the continental United States of America. The principal of and redemption premiums, if any, on the Authority Bonds shall be payable by the Trustee at its Corporate Trust Office upon presentation and surrender of such Authority Bonds. Interest shall be calculated on the basis of a 360-day year consisting of twelve (12) 30-day calendar months; provided, that notwithstanding any other provision herein contained, any interest not punctually paid or duly 12 4149-1157-6629.3
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provided for, as a result of an Event of Default or otherwise, shall forthwith cease to be payable to the Owner on the Record Date and shall be paid to the Owner in whose name the Authority Bond is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice of which shall be given to the Owner not less than ten (10) Business Days prior to such Special Record Date.
SECTION 2.02. Form of Authority Bonds. The Authority Bonds and the forms of the certificate of authentication, the assignment and the DTC endorsement to appear thereon shall be substantially as set forth in Exhibit A hereto, with such variations, insertions or omissions as are appropriate and not inconsistent herewith.
SECTION 2.03. Authority Bonds Mutilated, Destroyed, Stolen or Lost. In the event any Authority Bond is mutilated, lost, stolen or destroyed, the Authority may execute and, upon its request in writing, the Trustee shall authenticate and deliver a substitute Authority Bond of the same principal amount and maturity as the mutilated, lost, stolen or destroyed Authority Bond in exchange and substitution for such mutilated Authority Bond, or in lieu of and substitution for such lost, stolen or destroyed Authority Bond.
Application for exchange and substitution of mutilated, lost, stolen or destroyed Authority Bonds shall be made to the Trustee at its Corporate Trust Office. In every case the applicant for a substitute Authority Bond shall furnish to the Trustee indemnification to its satisfaction, and in every case ofl oss, theft or destruction of an Authority Bond, the applicant shall also furnish to the Authority and the Trustee evidence to their satisfaction of such loss, theft or destruction and of the identity of the applicant, and in every case of mutilation of an Authority Bond, the applicant shall surrender the mutilated Authority Bond to the Trustee.
Notwithstanding the foregoing provisions of this Section, in the event any such Authority Bond shall have matured, and no default has occurred which is then continuing in the payment of the interest on or principal of or redemption premiums, if any, on the Authority Bonds, the Trustee shall, upon written direction from the Authority, pay the same (without surrender thereof except in the case of a mutilated Authority Bond) instead of issuing a substitute Authority Bond so long as indemnification is furnished as above provided.
Upon the issuance of any substitute Authority Bond, the Trustee may charge the Owner of such Authority Bond for its reasonable fees and expenses in connection therewith. Every substitute Authority Bond issued pursuant to the provisions of this Section by virtue of the fact that any Authority Bond is lost, stolen or destroyed shall constitute an original additional contractual obligation of the Authority, whether or not the lost, stolen or destroyed Authority Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits hereof equally and proportionally with any and all other Authority Bonds duly issued hereunder to the same extent as the Authority Bonds in substitution for which such substitute Authority Bonds were issued.
SECTION 2.04. Execution of Authority Bonds. All Authority Bonds shall, from time to time, be executed on behalf of the Authority by the manual or facsimile signature of the Treasurer and attested by the manual or facsimile signature of the Secretary. 13 4149-1157-6629.3
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If any of the officers who shall have signed any Authority Bond shall cease to be such officer of the Authority before the Authority Bond so signed shall have been actually authenticated by the Trustee or delivered, such Authority Bond nevertheless may be authenticated, issued and delivered with the same force and effect as though the person or persons who signed such Authority Bond had not ceased to be such officer of the Authority, and any such Authority Bond may be signed on behalf of the Authority by those persons who, at the actual date of the execution of such Authority Bond, shall be the proper officers of the Authority, although on the date of such Authority Bond any such person shall not have been such officer of the Authority.
SECTION 2.05. Transfer and Registration of Authority Bonds. The Authority Bonds shall be transferred or exchanged and title thereto shall pass only in the manner provided herein, and the Trustee shall keep books constituting the Bond Register for the registration and transfer of the Authority Bonds as provided herein. All Authority Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature satisfactory to the Trustee, duly executed by the Owner or by his or her attorney duly authorized in writing, and all such Authority Bonds shall be surrendered to the Trustee and canceled by the Trustee pursuant to Section 2.08. The Authority and the Trustee shall be entitled to conclusively treat the Owner as the absolute owner of such Authority Bond for the purpose of receiving any payment of the interest on or principal of or redemption premium, if any, on such Authority Bond and for all other purposes hereof, whether such Authority Bond shall be overdue or not, and neither the Authority nor the Trustee shall be affected by any notice to the contrary. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Authority Bond to the extent of the sum or sums so paid.
SECTION 2.06. Regulations with Respect to Exchange or Transfer of Authority Bonds.
In all cases in which the privilege of exchanging or registering the transfer of Authority Bonds is exercised, the Authority shall execute and the Trustee shall authenticate and deliver Authority Bonds in accordance with the provisions hereof. There shall be no charge to the Owner for any such exchange or registration of transfer of Authority Bonds, but the Authority may require the payment of a sum sufficient to pay any tax or other governmental charge required to be paid with respect to any such exchange or registration of transfer. Neither the Authority nor the Trustee shall be required to register the transfer or exchange of any Authority Bond during the period established by the Trustee for selection of Authority Bonds for redemption or to register the transfer or exchange of any Authority Bond selected for redemption.
Upon surrender for exchange or transfer of any Authority Bond at the Corporate Trust Office of the Trustee, the Authority shall execute and the Trustee shall authenticate and deliver in the name of the Owner (in the case of transfers) a new Authority Bond or Authority Bonds, of Authorized Denominations, in the aggregate principal amount which the registered Owner is entitled to receive.
All new Authority Bonds delivered upon any transfer or exchange shall be valid obligations of the Authority, evidencing the same debt as the Authority Bonds surrendered, shall be secured hereby and shall be entitled to all of the security and benefits hereof to the same extent as the Authority Bonds surrendered.
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SECTION 2.07. Authentication of Authority Bonds. No Authority Bond shall be secured hereby or entitled to the benefits hereof or shall be valid or obligatory for any purpose unless there shall be endorsed on such Authority Bond the Trustee's certificate of authentication, substantially in the form prescribed herein, executed by the manual signature of a duly authorized signatory of the Trustee; and such certificate on any Authority Bond issued by the Authority hereunder shall be conclusive evidence and the only competent evidence that such Authority Bond has been duly authenticated and delivered hereunder.
SECTION 2.08. Cancellation of Authority Bonds. Upon the surrender to the Trustee of any mutilated Authority Bond, or any Authority Bond surrendered for transfer or exchange, or any Authority Bond redeemed or paid at maturity, the same shall forthwith be canceled and the Trustee shall destroy such Authority Bonds and the Trustee shall deliver a certificate of destruction with respect thereto to the Authority.
SECTION 2.09. Authority Bonds as Special Obligations. The Authority Bonds are special, limited obligations of the Authority, payable from the Trust Estate and secured as to the payment of the interest on and principal of and redemption premiums, if any, thereon in accordance with their terms and the terms hereof, solely by the Trust Estate. The Authority Bonds do not constitute a charge against the general credit of the Authority or any of its members, and under no circumstances shall the Authority be obligated to pay the interest on or principal of or redemption premiums, if any, on the Authority Bonds except from the Trust Estate. None of the Community Facilities District, the City, the State, any public agency (other than the Authority) or any member of the Community Facilities District or the Authority is obligated to pay the interest on or principal of or redemption premiums, if any, on the Authority Bonds, and neither the faith and credit nor the taxing power of the Community Facilities District, the City, the State or any public agency thereof or any member of the Authority or the Community Facilities District is pledged to the payment of the interest on or principal of or redemption premiums, if any, on the Authority Bonds. The payment of the interest on or principal of or redemption premiums, if any, on the Authority Bonds does not constitute a debt, liability or obligation of the Community Facilities District, the City, the State or any public agency (other than the Authority) or any member of the Authority.
No agreement or covenant contained in any Authority Bond or herein shall be deemed to be an agreement or covenant of any officer, member, agent or employee of the Authority in his or her individual capacity, and neither the members of the Authority nor any officer or employee thereof executing the Authority Bonds shall be liable personally on any Authority Bond or be subject to any personal liability or accountability by reason of the issuance of the Authority Bonds.
SECTION 2.10. Special Covenants as to Book-Entry Only System for Authority Bonds.
(a) Except as otherwise provided in subsections (b) and (c) of this Section, all of the Authority Bonds initially issued shall be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"), or such other nominee as DTC shall request pursuant to the Letter of Representation. Payment of the interest on any Authority Bond registered in the name of Cede & Co. shall be made on each Interest Payment Date for such 15 4149-1157-6629.3
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Authority Bonds to the account, in the manner and at the address indicated in or pursuant to the Letter of Representation.
(b) The Authority Bonds initially shall be issued in the form of a single authenticated fully registered Authority Bond for each stated maturity of such Authority Bonds, representing the aggregate principal amount of the Authority Bonds of such maturity. Upon initial issuance, the ownership of all such Authority Bonds shall be registered in the registration records maintained by the Trustee pursuant to Section 2.05 in the name of Cede & Co., as nominee of DTC, or such other nominee as DTC shall request pursuant to the Letter of Representation. The Trustee and any paying agent may conclusively treat DTC ( or its nominee) as the sole and exclusive owner of the Authority Bonds registered in its name for the purposes of payment of the principal or redemption price of and interest on such Authority Bonds, selecting the Authority Bonds or portions thereof to be redeemed, giving any notice permitted or required to be given to Owners hereunder, registering the transfer of Authority Bonds, obtaining any consent or other action to be taken by Owners of the Authority Bonds and for all other purposes whatsoever; and neither the Trustee nor the Trustee or any paying agent shall be affected by any notice to the contrary. Neither the Trustee nor any paying agent shall have any responsibility or obligation to any Participant (which shall mean, for purposes of this Section, securities brokers and dealers, banks, trust companies, clearing corporations and other entities, some of whom directly or indirectly own DTC), any person claiming a beneficial ownership interest in the Authority Bonds under or through DTC or any Participant, or any other person which is not shown on the registration records as being an Owner, with respect to (i) the accuracy of any records maintained by DTC or any Participant, (ii) the payment by DTC or any Participant of any amount in respect of the principal or redemption price of or interest on the Authority Bonds, (iii) any notice which is permitted or required to be given to Owners of Authority Bonds hereunder, (iv) the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Authority Bonds, or (v) any consent given or other action taken by DTC as Owner of Authority Bonds. The Trustee shall pay all principal of and premium, if any, and interest on the Authority Bonds only at the times, to the accounts, at the addresses and otherwise in accordance with the Letter of Representation, and all such payments shall be valid and effective to satisfy fully and discharge the Trustee's obligations with respect to the principal of and premium, if any, and interest on the Authority Bonds to the extent of the sum or sums so paid. Upon delivery by DTC to the Trustee of written notice to the effect that DTC has determined to substitute a new nominee in place of its then existing nominee, the Authority Bonds will be transferable to such new nominee in accordance with subsection ( e) of this Section.
( c) In the event that the Authority determines that the beneficial owners of the Authority Bonds shall be able to obtain Authority Bond certificates, the Trustee shall, upon the written instruction from the Authority, so notify DTC, whereupon DTC shall notify the Participants of the availability through DTC of Authority Bond certificates. In such event, the Authority Bonds will be transferable in accordance with subsection ( e) of this Section. DTC may determine to discontinue providing its services with respect to the Authority Bonds at any time by giving written notice of such discontinuance to the Trustee and discharging its responsibilities with respect thereto under applicable law. In such event, the Authority Bonds will be transferable in accordance with subsection ( e) of this Section. Whenever DTC requests the Trustee to do so, the Trustee will cooperate with DTC in taking appropriate action after reasonable notice to arrange for another securities depository to maintain custody of all certificates evidencing the Authority Bonds 16 4149-1157-6629.3
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then Outstanding. In such event, the Authority Bonds will be transferable to such securities depository in accordance with subsection ( e) of this Section, and thereafter, all references in this Trust Agreement to DTC or its nominee shall be deemed to refer to such successor securities depository and its nominee, as appropriate.
(d) Notwithstanding any other provision of this Trust Agreement to the contrary, so long as all Authority Bonds Outstanding are registered in the name of any nominee of DTC, all payments with respect to the principal of and premium, if any, and interest on each such Authority Bond and all notices with respect to each such Authority Bond shall be made and given, respectively, to DTC as provided in the Letter of Representation. ( e) In the event that any transfer or exchange of Authority Bonds is authorized under subsection (b) or (c) of this Section, such transfer or exchange shall be accomplished upon receipt by the Trustee from the registered owner thereof of the Authority Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee, all in accordance with the applicable provisions of Sections 2.05 and 2.06. In the event Authority Bond certificates are issued to Owners other than Cede & Co., its successor as nominee for DTC as Owner of all the Authority Bonds, another securities depository as Owner of all the Authority Bonds, or the nominee of such successor securities depository, the provisions of Sections 2.05 and 2.06 shall also apply to, among other things, the registration, exchange and transfer of the Authority Bonds and the method of payment of principal of, premium, if any, and interest on the Authority Bonds.
SECTION 2.11. CUSIP Numbers . The Authority in issuing the Authority Bonds may use "CU SIP" numbers (if then generally in use), and, if so, the Trustee shall use "CU SIP" numbers in notices ofr edemption as a convenience to Owners; provided that the Trustee shall have no liability for any defect in the "CUSIP" numbers as they appear on any Authority Bond, notice or elsewhere, and, provided further that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Authority Bonds or as contained in any notice of redemption and that reliance may be placed only on the other identification numbers printed on the securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Authority shall promptly notify the Trustee in writing of any change in CUSIP numbers.
ARTICLE III
ISSUANCE OF AUTHORITY BONDS
SECTION 3.01. Provisions for the Issuance of Authority Bonds. The Authority Bonds shall be executed by the Authority and delivered to the Trustee for authentication, together with a Written Order authorizing and directing the Trustee to authenticate the Authority Bonds and containing instructions as to the delivery of the Authority Bonds. The Trustee shall authenticate and deliver the Authority Bonds upon receipt of such Written Order and upon the following having been made available to it:
(a) A copy of the resolution adopted by the Authority approving this Trust Agreement and the execution and delivery by the Authority hereof, duly certified by the Secretary to have 17 4149-1157-6629.3
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been duly adopted by the Authority and to be in full force and effect on the date of such certification;
(b) The proceeds of sale of the Authority Bonds;
(c) An Officer's Certificate stating that all conditions precedent to the authorization of the Authority Bonds have been satisfied and that the Authority is not in default in the performance of any of the agreements, conditions, covenants or terms contained herein; ( d) An original executed counterpart hereof;
( e) The Local Obligations to be purchased with the proceeds of the Authority Bonds, registered in the name of the Trustee; and
(f) An Opinion or Opinions of Bond Counsel addressing the validity and, if applicable, the tax-exempt status of the Authority Bonds and the validity of the Local Obligations, subject to such exceptions as may be reasonable and appropriate.
SECTION 3.02. Parity and Subordinate Bonds. So long as any of the Authority Bonds remain Outstanding, the Authority shall not issue any bonds or obligations payable from Revenues.
ARTICLE IV
REDEMPTION OF AUTHORITY BONDS
SECTION 4.01. General Redemption Provisions. The Authority Bonds that are subject to redemption prior to maturity pursuant to this Trust Agreement shall be redeemable, upon mailed notice as provided in this Article, at such times and upon such terms as are contained in this Article.
SECTION 4.02. Optional Redemption. The Authority Bonds are subject to optional redemption by the Authority prior to their respective maturity dates as a whole or in part on any date on or after September 1, 20LJ , from any source of available funds other than Minimum Sinking Fund Payments and Special Tax Prepayments, upon mailed notice as provided herein, at the following redemption prices ( computed upon the principal amount of the Authority Bonds or portions thereof called for redemption) together with accrued interest thereon to the date fixed for redemption:
103% if redeemed on any date on or after September 1, 20L ] through August 31, 20LJ ;
102% if redeemed on any date from September 1, 20L ] through August 31, 20L ];
101 % if redeemed on any date from September 1, 20L ] through August 31, 20LJ ; and
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100% if redeemed on September 1, 20L ] and any date thereafter.
SECTION 4.03. Extraordinary Redemption. The Authority Bonds are subject to extraordinary redemption by the Authority prior to their respective maturity dates, as a whole or in part on any Interest Payment Date on or after September 1, 20L ], solely from funds derived from extraordinary redemption of Local Obligations from Special Tax Prepayments, at the following redemption prices ( computed upon the principal amount of the Authority Bonds or portions thereof called for redemption) together with accrued interest thereon to the date fixed for redemption:
103% if redeemed on an Interest Payment Date on or after September 1, 20LJ through March 1, 20L ];
102% if redeemed on an Interest Payment Date on September 1, 20L ] and March 1, 20L ];
101 % if redeemed on an Interest Payment Date on September 1, 20L ] and March 1, 20L ]; and
100% if redeemed on September 1, 20L ] and any Interest Payment Date thereafter.
SECTION 4.04. Mandatory Redemption. The Term Authority Bonds maturing on September 1, 20LJ , are subject to mandatory redemption by the Authority prior to their maturity date in part on September 1 of each year on and after September 1, 20LJ , to and including September 1, 20L ]; and the Term Authority Bonds maturing on September 1, 20LJ , are subject to mandatory redemption by the Authority prior to their maturity date in part on September 1 of each year on and after September 1, 20L ], to and including September 1, 20L ] from (and in the amount of) the Minimum Sinking Fund Payments due and payable for the Term Authority Bonds on each such date, at a redemption price equal to the principal amount thereof plus accrued interest thereon to the date of redemption, without premium.
SECTION 4.05. Redemption Instructions. Upon any prepayment of a Local Obligation, the Authority shall deliver to the Trustee at least forty-five (45) days prior to the redemption date a Written Order of the Authority designating the amounts and maturities of the Authority Bonds to be redeemed, which shall be in the manner necessary to enable the Authority to deliver a Cash Flow Certificate satisfying the requirements described below. In the event only a portion of the Outstanding Authority Bonds of any maturity are to be redeemed at any one time, the Trustee shall select the particular Authority Bonds of each maturity date to be redeemed in accordance with DTC procedures or, if the Authority Bonds are not then in book-entry, in a manner that it deems appropriate and fair. The Trustee shall redeem Authority Bonds in Authorized Denominations. The Trustee shall promptly notify the Authority in writing of the numbers of the Authority Bonds so selected for redemption on any date. Upon any redemption of a portion but not all of the Outstanding Authority Bonds, the Authority shall deliver to the Trustee a Cash Flow Certificate to the effect that, assuming all payments are made with respect to the Local Obligations, (i) the Revenues, together with moneys on deposit in other funds and account held under this Trust Agreement, will be sufficient to pay all Principal Installments, Minimum Sinking Fund Payments 19 4149-1157-6629.3
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and interest payments on the Authority Bonds when due; and (ii) the redemption premiums, if any, on the Local Obligations, together with other Revenues available to the Trustee for such purpose, are sufficient to offset any difference between the interest to accrue on the Authority Bonds to be paid or redeemed with the proceeds of prepayment of such Local Obligations (plus any redemption premium payable upon redemption of such Authority Bonds) and the income to be earned on any investment of such proceeds ( assured as of the date of payment thereof), in each case until the date of payment or redemption of Authority Bonds, such that in no event will the prepayment of Local Obligations cause the Trustee to have insufficient funds to pay debt service on the Authority Bonds when due. In no event shall Authority Bonds be redeemed if upon such redemption the principal amount of the Local Obligations remaining outstanding will be less than the total principal amount of Outstanding Authority Bonds. Such Written Order of the Authority may specify that optional redemption of the Authority Bonds will be conditioned upon receipt of funds or other events.
SECTION 4.06. Notice of Redemption. Subject to receipt of the Written Order of the Authority delivered pursuant to Section 4.05, the Trustee shall, at the sole cost and expense of the Authority, give notice of redemption as hereinafter provided in this Section; provided, that Authority Bonds, identified by CUSIP numbers, serial numbers and maturity date, have been called for redemption and, in the case of Authority Bonds to be redeemed in part only, the portion of the principal amount thereof that has been called for redemption ( or if all the Outstanding Authority Bonds are to be redeemed, so stating, in which event such serial numbers may be omitted), that they will be due and payable on the date fixed for redemption (specifying such date) upon surrender thereof to the Trustee at its Corporate Trust Office, subject to any conditions to such redemption specified in the Written Order of the Authority, at the redemption price (specifying such price), together with any accrued interest to such date, and that all interest on the Authority Bonds ( or portions thereof) so to be redeemed will cease to accrue on and after such date and that from and after such date such Authority Bond ( or such portion thereof) shall no longer be entitled to any lien, benefit or security hereunder, and the Owner thereof shall have no rights in respect of such redeemed Authority Bond or such portion except to receive payment from such money of such redemption price plus accrued interest to the date fixed for redemption. If sufficient monies for the payment of the redemption price of all Authority Bonds to be redeemed are not then on deposit with the Trustee, such notice shall also state that redemption is conditioned upon the timely deposit of sufficient funds therefor with the Trustee.
Such notice shall be mailed by first class mail, in a sealed envelope, postage prepaid, at least thirty (30) but not more than sixty (60) days before the date fixed for redemption, to the Owners of such Authority Bonds ( or portions thereof) so called for redemption, at their respective addresses as the same shall last appear on the Bond Register; provided, that neither the failure of an Owner to receive notice of redemption of Authority Bonds hereunder nor any error in such notice shall affect the validity of the proceedings for the redemption of Authority Bonds.
Any notice of optional redemption hereunder may be rescinded by written notice given by the Authority to the Trustee no later than three (3) Business Days prior to the date specified for redemption, instructing the Trustee to send such notice of rescission. The Trustee shall give notice of rescission of the notice of optional redemption or non-satisfaction of any conditions specified in the notice of optional redemption as soon as practicable to the same parties and in the same manner as the notice of redemption was given pursuant to this Section. 20 4149-1157-6629.3
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SECTION 4.07. Payment of Redeemed Authority Bonds. If notice of redemption has been given and not rescinded and if the conditions to such redemption specified therein, if any, have been satisfied, each as provided in Section 4.06, the Authority Bonds ( or the portions thereof) called for redemption shall become irrevocably due and payable on the date fixed for redemption at the redemption price thereof, together with accrued interest to the date fixed for redemption, upon presentation and surrender of the Authority Bonds to be redeemed at the Corporate Trust Office of the Trustee specified in the notice of redemption. If there shall be called for redemption less than the full principal amount of an Authority Bond, the Authority shall execute and deliver and the Trustee shall authenticate, upon surrender of such Authority Bond, and without charge to the Owner thereof, Authority Bonds of like interest rate and maturity in an aggregate principal amount equal to the unredeemed portion of the principal amount of the Authority Bonds so surrendered in such Authorized Denominations as shall be specified by the Owner thereof.
If any Authority Bond or any portion thereof shall have been duly called for redemption and payment of the redemption price, together with unpaid interest accrued to the date fixed for redemption, shall have been made or provided for by the Authority, then interest on such Authority Bond or such portion thereof shall cease to accrue from such date, and from and after such date such Authority Bond or such portion thereof shall no longer be entitled to any lien, benefit or security hereunder, and the Owner thereof shall have no rights in respect of such Authority Bond or such portion except to receive payment of such redemption price and unpaid interest accrued to the date fixed for redemption.
SECTION 4.08. Purchase in Lieu of Redemption. In lieu of redemption of any Authority Bond pursuant to the provisions of Section 4.02 or Section 4.03, and after complying with Section 4.05, amounts on deposit in the Proceeds Fund, the Principal Fund or in the Redemption Fund may be used and withdrawn by the Trustee at any time prior to a notice of redemption having been delivered, upon a Written Order for the purchase of such Authority Bonds at public or private sale as and when and at such prices as the Authority may in its discretion determine, but not in excess of the lower of the highest or then current redemption price thereof plus accrued interest to the purchase date; and all Authority Bonds so purchased shall be delivered to the Trustee for cancellation.
ARTICLE V
REVENUES AND FUNDS FOR AUTHORITY BONDS
SECTION 5.01. Establishment of Funds. There is hereby established with the Trustee, and the Trustee hereby agrees to maintain, the following special trust funds for the Authority Bonds, which the Trustee shall keep separate and apart from all other funds and moneys held by it: the Revenue Fund, the Interest Fund, the Principal Fund, the Redemption Fund, the Proceeds Fund, the Local Obligations Fund and the Rebate Fund.
SECTION 5.02. Deposit of Proceeds of Authority Bonds. The net proceeds received from the sale of the Authority Bonds (in the amount of $ [ ] , consisting of the principal amount thereof, plus the original issue premium of $[ ] and less an underwriter's discount of $[ ]) shall be deposited by the Trustee in the Proceeds Fund. 21 4149-1157-6629.3
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SECTION 5.03. Proceeds Fund. The amounts in the Proceeds Fund shall be applied forthwith by the Trustee for the purchase of the Local Obligations pursuant to the Local Obligation Purchase Contract in accordance with a Written Order of the Authority whereupon the Proceeds Fund shall be closed. If any amount shall remain in the Proceeds Fund following such purchase, such amount shall be transferred to the Revenue Fund.
SECTION 5.04. Local Obligations Fund. All Local Obligations acquired by the Trustee pursuant to Section 5.03 shall be deposited in the Local Obligations Fund, which the Trustee shall establish and maintain.
SECTION 5.05. Revenue Fund. All Revenues received by the Trustee, other than Revenues derived from the early redemption of Local Obligations from Special Tax Prepayments (which shall be administered in accordance with Section 5.06), shall be deposited by the Trustee in the Revenue Fund. On each Interest Payment Date and Principal Payment Date, the Trustee shall transfer Revenues (to the extent that Revenues are available therein) from the Revenue Fund, in the amounts specified in Sections 5.07 and 5.08, for deposit into the respective Funds specified therein in the order of priority herein set forth, the requirements of each Fund to be fully satisfied, leaving no deficiencies therein, prior to any deposit into any Fund later in priority. On each Interest Payment Date and Principal Payment Date, after making the deposits required by Sections 5.07 and 5.08, the Trustee shall transfer all remaining money in the Revenue Fund to the Indenture Trustee for deposit pursuant to the Local Obligations Indenture.
SECTION 5.06. Revenues Derived from Special Tax Prepayments. The Community Facilities District and the Authority acknowledge that amounts received by the Community Facilities District on account of Special Tax Prepayments are to be utilized for the sole purpose of the prior redemption of Local Obligations pursuant to Section 4.03, and not to pay current, scheduled debt service payments on the Local Obligations. Correspondingly, in order to maintain a proper ratio between debt service payments on the Local Obligations and debt service payments on the Authority Bonds, all Revenues received by the Trustee which are derived from the early redemption of Local Obligations from Special Tax Prepayments when received by the Community Facilities District shall be deposited in the Redemption Fund and used to redeem the Authority Bonds pursuant to Section 4.03, in accordance with a Written Order of the Authority delivered pursuant to Section 4.05.
SECTION 5.07. Interest Fund. The Trustee shall deposit in the Interest Fund on each Interest Payment Date from the Revenue Fund an amount of Revenues which, together with any amounts then on deposit in the Interest Fund, is equal to the interest due on the Authority Bonds due on such date. On each Interest Payment Date, the Trustee shall pay the interest due and payable on the Authority Bonds on such date from the Interest Fund.
SECTION 5.08. Principal Fund. After satisfying the requirements of the foregoing Section 5.07 respecting deposits in the Interest Fund, the Trustee shall deposit in the Principal Fund (i) on each Principal Payment Date from the Revenue Fund an amount of Revenues which, together with any amounts then on deposit in the Principal Fund ( other than amounts previously deposited on account of any Authority Bonds which have matured but which have not been presented for payment) is sufficient to pay the Principal Installments on the Authority Bonds due on such Principal Payment Date and (ii) on each September 1 on which a Minimum Sinking Fund 22 4149-1157-6629.3
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Payment is required to be made (for deposit in the Sinking Fund Account) from the Revenue Fund an amount of Revenues which is equal to the Minimum Sinking Fund Payment due and payable on such date. On each Principal Payment Date, the Trustee shall pay the principal or redemption price due and payable on the Authority Bonds on such date from the Principal Fund.
SECTION 5.09. Redemption Fund. All money held in or transferred to the Redemption Fund pursuant to Section 5.06 shall be used for the purpose of redeeming or purchasing all or a portion of the Outstanding Authority Bonds pursuant to Section 4.03, and the Trustee shall use other moneys in the Redemption Fund for the payment of the redemption price of Authority Bonds called for redemption pursuant to Section 4.02, together with accrued interest to the redemption date.
SECTION 5.10. Rebate Fund. The Trustee agrees to establish and maintain when needed a fund separate from any other fund established and maintained hereunder designated the Rebate Fund. The Trustee shall deposit in the Rebate Fund, from funds made available by the Authority, the Rebate Requirement, all in accordance with the Rebate Instructions received from the Authority. The Trustee will apply money held in the Rebate Fund as provided in Section 7.04 and according to instructions provided by the Authority. Subject to the provisions of Section 7.04, all money held in the Rebate Fund is hereby pledged to secure payments to the United States of America, and the Authority and the Community Facilities District and the Owners will have no rights in or claim to such money. The Trustee will invest all money held in the Rebate Fund in Investment Securities as directed in writing by the Authority, such written direction to specify which Investment Securities are to be invested in, and all investment earnings with respect thereto shall be deposited in the Rebate Fund.
Upon receipt of the Rebate Instructions required by the Tax Certificate to be delivered to the Trustee, the Trustee will remit part or all of the balance held in the Rebate Fund to the United States of America as so directed. In addition, if the Rebate Instructions so direct, the Trustee will deposit money into or transfer money out of the Rebate Fund from or into such Funds as the Rebate Instructions shall direct. The Trustee shall be deemed conclusively to have complied with such provisions if it follows the written directions of the Authority including supplying all necessary information in the manner provided in the Tax Certificate to the extent such information is reasonably available to the Trustee, and shall have no liability or responsibility to monitor or enforce compliance by the Authority with the terms of the Tax Certificate.
The Trustee shall have no obligation to rebate any amounts required to be rebated pursuant to this Section, other than from money held in the Rebate Fund or from other money provided to it by the Authority. The Trustee shall not be responsible for computing the Rebate Requirement, and computations of the Rebate Requirement shall be furnished to the Trustee or on behalf of the Authority in accordance with the Tax Certificate.
Notwithstanding any other provision hereof, including in particular Article XII pertaining to defeasance, the obligation to remit the rebate amounts to the United States of America and to comply with all other requirements of this Section and the Tax Certificate shall survive the defeasance or payment in full of the Authority Bonds.
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ARTICLE VI
SECURITY FOR AND INVESTMENT OF MONEY
SECTION 6.01. Security. All money required to be deposited with or paid to the Trustee in any of the Funds ( other than the Rebate Fund) referred to in any provision hereof shall be held by the Trustee in trust, and except for money held for the payment or redemption of Authority Bonds or the payment of interest on Authority Bonds pursuant to Section 12.03, shall, while held by the Trustee, constitute part of the Trust Estate and shall be subject to the lien and pledge created hereby.
SECTION 6.02. Investment of Money. So long as the Authority Bonds are Outstanding and there is no default hereunder, all money on deposit to the credit of the Revenue Fund, the Interest Fund, the Principal Fund and the Redemption Fund and all accounts within such Funds shall, at the written request of an Authorized Officer of the Authority specifying and directing that such investment of such money be made, be invested by the Trustee in Investment Securities having maturities not later than the date necessary to provide the availability of money when needed for purposes hereof, and all money held in the Rebate Fund shall, at the written request of an Authorized Officer specifying and directing that such investment of such money be made, be invested by the Trustee in Government Obligations having maturities not later than the date necessary to provide the availability of money when needed for purposes hereof, and the Trustee shall be entitled to conclusively rely on such instructions for purposes of this Section. The Trustee shall notify the Authority in writing prior to the date money held hereunder will be available for investment, requesting that the Authority deliver to the Trustee written instructions specifying the Investment Securities to be acquired by the Trustee with such money. The Authority, in issuing such written instructions, shall comply with the provisions of the Tax Certificate. In the absence of written instructions from the Authority regarding investment, such money shall be held uninvested. The Trustee ( or any affiliate thereof) may act as principal or agent in the acquisition or disposition of any investments.
Money on deposit in the Proceeds Fund, if any, shall be invested in Investment Securities pursuant to a Written Order specifying which Investment Securities to be invested in, and such money may not be reinvested in any other Investment Securities unless the Trustee receives, at the time of such reinvestment, a further written certification to the effect that, after such reinvestment, the Revenues will be sufficient to pay principal and interest on the Authority Bonds when due.
Notwithstanding anything to the contrary contained herein, an amount of interest received with respect to any Investment Security equal to the amount of accrued interest, if any, paid as part of the purchase price of such Investment Security shall be credited to the Fund from which such accrued interest was paid. The Trustee shall not be responsible for any losses, taxes, fees, charges or consequences of any investment, reinvestment or liquidation of investment if it follows such instructions. Notwithstanding anything to the contrary contained herein, the Trustee shall have no obligation or responsibility to determine whether investment in a security is permitted by the laws of the State and the City's Investment Policy, for and on behalf of the Community Facilities District, and shall be entitled to conclusively assume that any investment it is directed to make is so permitted.
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The securities purchased with the money in each Fund shall be deemed a part of such Fund. If at any time it shall become necessary or appropriate that some or all of the securities purchased with the money in any Fund be redeemed or sold in order to raise money necessary to comply with the provisions hereof, the Trustee shall effect such redemption or sale, employing, in the case of a sale, any commercially reasonable method of effecting the same. The Trustee shall not be liable or responsible for any consequences, fees, taxes or other charges resulting from any such investment or resulting from the redemption, sale or maturity of any such investment as authorized pursuant to this Section.
Investments in the Revenue Fund, the Interest Fund, the Principal Fund and the Redemption Fund may be commingled for purposes of making, holding and disposing of investments, notwithstanding provisions herein for transfer to or holding in particular Funds amounts received or held by the Trustee; provided, that the Trustee shall at all times account for such investments strictly in accordance with the Funds to which they are credited and otherwise as provided herein.
All earnings on the investment of the money on deposit in any Fund shall remain a part of such Fund.
ARTICLE VII
COVENANTS OF THE AUTHORITY AND THE COMMUNITY FACILITIES DISTRICT SECTION 7.01. Payment of Authority Bonds; No Encumbrances. The Authority shall cause the Trustee to promptly pay, from Revenues and other funds derived from the Trust Estate pledged hereunder, the interest on and principal of and redemption premium, if any, on every Authority Bond issued under and secured hereby at the place, on the dates and in the manner specified herein and in such Authority Bonds according to the true intent and meaning thereof.
The Authority shall not issue any bonds, notes or other evidences of indebtedness or incur any obligations payable from or secured by the Trust Estate, other than the Authority Bonds.
SECTION 7.02. Enforcement and Amendment of Local Obligations. The Authority, the Community Facilities District and the Trustee (subject to Article IX hereof) shall enforce all of their rights with respect to the Local Obligations to the fullest extent necessary to preserve the rights and protect the security of the Owners hereunder.
The Authority, the Community Facilities District and the Trustee may, without the consent of or notice to the Owners of the Authority Bonds, consent to any amendment, change or modification of any Local Obligation that may be required ( a) to conform to the provisions hereof (including any modifications or changes contained in any Supplemental Trust Agreement), (b) for the purpose of curing any ambiguity or inconsistency or formal defect or omission, ( c) to add additional rights acquired in accordance with the provisions of such Local Obligation, ( d) in connection with any other change therein that is not to the material prejudice of the Owners of the Authority Bonds, or (e) in the Opinion of Bond Counsel, to preserve or assure the exemption of interest on the Local Obligations or Authority Bonds from federal income taxes or the exemption of such interest from State personal income taxes.
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Except for the amendments, changes or modifications provided for in the preceding paragraph, neither the Authority, the Community Facilities District nor the Trustee shall consent to any amendment, change or modification of any Local Obligation without the written approval or consent of the Owners of not less than a majority in aggregate principal amount of Authority Bonds at the time Outstanding given and procured as provided in this Section. If at any time the Authority and the Community Facilities District, as the case may be, shall request the consent of the Trustee to any such proposed amendment, change or modification of a Local Obligation, the Trustee shall, upon being satisfactorily indemnified with respect to expenses, cause notice, prepared by the Authority, of such proposed amendment, change or modification to be mailed in the same manner as provided by Section 13.03. Such notice shall briefly set forth the nature of such proposed amendment, change or modification and shall state that copies of the instrument embodying the same are on file with the Trustee for inspection by all Owners.
SECTION 7.03. Further Documents. The Authority covenants that it will from time to time execute and deliver such further instruments and take such further action as may be reasonable and as may be required to carry out the purpose hereof; provided, that no such instruments or actions shall pledge the faith and credit or the taxing power of the State or any political subdivision of the State.
SECTION 7.04. Tax Covenants for the Authority Bonds.
(a) The Authority and the Community Facilities District will not take any action, or fail to take any action, if any such action or failure to take action would adversely affect the exclusion from gross income of interest on the Authority Bonds under Section 103 of the Code.
The Authority and the Community Facilities District will not directly or indirectly use or permit the use of any proceeds of the Authority Bonds or any other funds of the Authority or take or omit to take any action that would cause the Authority Bonds to be "private activity bonds" within the meaning of Section 141(a) of the Code or obligations which are "federally guaranteed" within the meaning of Section 149(b) of the Code. The Authority will not allow ten percent (10%) or more of the proceeds of the Authority Bonds to be used in the trade or business of any nongovernmental units and will not lend five percent (5%) or more of the proceeds of the Authority Bonds to any nongovernmental units.
(b) The Authority and the Community Facilities District will not directly or indirectly use or permit the use of any proceeds of the Authority Bonds or any other funds of the Authority or take or omit to take any action that would cause the Authority Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code. To that end, the Authority and the Community Facilities District will comply with all requirements of Section 148 of the Code to the extent applicable to the Authority Bonds. In the event that at any time the Authority is of the opinion that for purposes of this Section it is necessary to restrict or to limit the yield on the investment of any money held by the Trustee hereunder, the Authority will so instruct the Trustee in writing, and the Trustee will take such actions as directed by such instructions. ( c) The Authority will pay or cause to be paid the Rebate Requirement as provided in the Tax Certificate. This covenant shall survive payment in full or defeasance of the Authority Bonds. The Authority will cause the Rebate Requirement to be deposited in the Rebate Fund as provided in the Tax Certificate (which is incorporated herein by reference). 26 4149-1157-6629.3