Folsom City Council
July 11, 2023

1 Agenda
City Council Regular Meeting
City Council Chambers | 50 Natoma Street, Folsom CA 95630 July 11, 2023
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 Meeting
City Council Chambers | 50 Natoma Street, Folsom CA 95630 www.folsom.ca.us
Tuesday, July 11, 2023 6:30 PM

Rosario Rodriguez, Mayor

YK Chalamcherla, Vice Mayor Sarah Aquino, Councilmember Mike Kozlowski, Councilmember Anna Rohrbough, Councilmember

AGENDA

CALL TO ORDER
ROLL CALL:

Councilmembers: Chalamcherla, Kozlowski, Rohrbough, Aquino, Rodriguez 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 th e 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 jurisdictio n. 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 Proclaiming July 16-22, 2023 as National Zookeeper Week in the City of Folsom
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.

2. Approval of June 8, 2023 Special Joint City Council / FCUSD / Rancho Cordova City Council Meeting Minutes

3 3. Approval of June 13, 2023 Special and Regular Meeting Minutes

4. Appointment of At-Large Member to the Folsom Landscaping and Lighting District Advisory Committee to Represent the Briggs Ranch District

5. Resolution No. 11053 – A Resolution Authorizing the City Manager to Execute an Agreement with NTU Technologies, Inc. for the Purchase of Chemicals for the Water Treatment Plant

6. Resolution No. 11062 – A Resolution Authorizing the City Manager to Accept a Cannabis Tax Fund Grant Program offered by the California Highway Patrol in the Amount of $92,772.60 to Reduce and Mitigate the Impacts of Impaired Driving and Appropriation of Funds

7. Resolution No. 11064 - A Resolution Authorizing the City Manager to Execute an Agreement with Black & Veatch Corporation for the Design of the Water Treatment Plant Caustic Soda System Project

8. Resolution No. 11065 – A Resolution Authorizing the City Manager to Execute an Agreement with Crafco, Inc. for the Purchase of a Crack Sealing Machine

9. Resolution No. 11066 – A Resolution Authorizing the City Manager to Execute an Agreement with Altec Industries, Inc. for the Purchase of a Boom Truck

10. Resolution No. 11067 – A Resolution Authoring the City Manager to Execute an Agreement with TYMCO, Inc. for the Purchase of a Street Sweeper

11. Resolution No. 11068 – A Resolution Authorizing the City Manager to Execute a Special Facilities and As-Available Distribution Service Agreement with Sacramento Municipal Utility District and Appropriation of Funds

12. Resolution No. 11070 - A Resolution Authorizing the City Manager to Execute a Consultant and Professional Services Agreement with Unico Engineering for Construction Inspection and Materials Testing for the Blue Ravine Road Pavement Rehabilitation Project and Appropriation of Funds

13. Resolution No. 11072 - A Resolution Electing the Population and Inflation Factors and Establishing the Fiscal Year 2023-24 Appropriations Limit

14. Resolution No. 11073 - A Resolution Authorizing the City Manager to Execute an Agreement with Economic & Planning Systems, Inc. for Professional Consultant Services to Update the Developmental Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area

15. Resolution No. 11074 - A Resolution Authorizing the City Manager to Execute a Lease Agreement with Pour Leadership Inc., dba Uncle Charlie’s Firehouse & Brew

16. Resolution No. 11075 – A Resolution Authorizing the City Manager to Execute an Agreement with Advanced Chemical Transport, Inc. for Hazardous Waste Management Services and Appropriation of Funds

17. Resolution No. 11076 - A Resolution Adding a Stakeholder Representative to the River District Master Plan Citizens Advisory Committee
NEW BUSINESS:

18. Resolution No. 11069 - A Resolution Amending Resolution No. 10479 to Revise the Master Fee Schedule for Library Services to Remove Fines and Adjust the Fee for Selected Library Services as of 7/11/2023

19. Consideration of Execution of a Memorandum of Understanding with Folsom Cordova Unified School District and the City of Rancho Cordova to Share the Cost of a Folsom Cordova Unified School District Reorganization Feasibility Study and Direction to Staff

4 COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS:

CITY MANAGER REPORTS:

COUNCIL COMMENTS:

ADJOURNMENT

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 abov e. 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 SHOULD 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 entire ty 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 Council 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 Nato ma Street, Folsom, California and at the Folsom Public Library located at 411 Stafford Street, Folsom, California during normal business hours.

PROCLAMATION

OF THE MAYOR OF THE CITY OF FOLSOM
PROCI-AIMING JULY \6-22, 2oz3
AS
"NATIONAL ZOOKEEPERWEEK'' IN THE CITY OF FOLSOM
WHEREAS, the Folsom city Zoo sanctuary plays a key role in the city of Folsom's goals to increase tourism, increase the quality of life of our residents, build community, and contribute to the City's Distinctive by Nature attributes; and
WHEREAS, zookeepers significantly contribute to the zoo sanctuary's mission statement of "Teaching Responsible Behavior Toward All Animals;" and WHEREAS, zookeePers meet and exceed the rigorous requirements of the california Department of Fish and Wildlife and the United States Department of Agriculture; and
WHEREAS, zookeepers diligently care for the zoo sanctuary's many rescued animals, comprising 40 different species, all of which are animals who could not survive in the wild; and WHEREAS, zookeepers possess unique and exceptionalskills, enablingthem to create behavioral enrichment items for the animals and use positive reinforcement training so that the animals may participate in their own vet care; and
WHEREAS, zookeepers work tirelessly to provide outstanding veterinary care, staying late and coming in early when animals are ill and require additional treatment; and WHEREAS, zookeepers continuously demonstrate their unwavering dedication, including working weekends and holidays because even on Christmas day, the animals still need to be fed and cared for; and
WHEREAS, even in times of crisis, such as the pandemic when zookeepers were considered ,.essential workers," they exhibited the highest levels of professionalism and creatively ensured that all of the animals' needs were met despite limited resources and reduced staffing.

NOW THEREFORE BE tT RESOLVED that, I Rosario Rodriguez, Mayor of the city of Folsom' do hereby proclaim July L6-22,2023 as "Notionol Zookeeper Week" in the City of Folsom.

PROCLAIMED this 11th day of July 2023.

Attest:

Rosario Rodriguez, MAYOR Christa Freemantle, CITY CLERK

07/11/2023 Item No.1.

This page intentionollY Ieft blCInk
to focilitate double- sided printing .

CITY OF
FOLSOM

DISTINCTIVE BY NATURE

07/11/2023 Item No.1.

Book77 Page 102
Folsom City Council
June 8, 2023
Joint Folsom Gity Council, Folsom Gordova Unified School District, Rancho Cordova City Gouncil Special Meeting
Education Services Center, Boardroom
1965 Birkmont Drive, Rancho Cordova, CA 95742

MINUTES
Thursday June 8,2023 6:00 PM

CALL TO ORDER
The special Joint City Council, Folsom Cordova Unified School District, City of Rancho Cordova City Council meeting was called to order at 6:03 pm with FCUSD President David Reid presiding.

ROLL GALL:

City of Folsom
Councilmembers Present:

City of Folsom
Councilmembers Absent:

FCUSD Board of Education
Members Present:

FCUSD Board of Education
Members Absent:

City of Rancho Cordova
Councilmembers:

YK Chalamcherla, Vice Mayor
Sarah Aquino, Councilmember
Mike Kozlowski, Councilmember
Anna Rohrbough, Councilmember
Rosario Rodriguez, Mayor
David Reid, President
Tim Hooey, Vice President
Jennifer Laret, Clerk
Chris Clark, Board Member
Kara Lofthouse, Board Member
Rocio Perez, Student Board Member
Ria Srivastava, Student Board Member
None
Linda Budge, Mayor
David M. Sander, PH.D., Vice Mayor
Siri Pulipati, Councilmember
Garrett Gatewood, Councilmember
City of Rancho Cordova
Councilmem bers Absent:

Donald Terry, Councilmember
DRAFT - Not fficial until approved by City Council Page 7 07/11/2023 Item No.2.

Book 77 Page 103
Folsom City Council
June 8, 2023
I. OPEN SESSION:
a. Callto Order
Board President Reid called the meeting to order at 6:00 pm b. Pledge of Allegiance
Board President Reid led the flag salute.
c. Broadcast Statement
Board President Reid announced the broadcast statement. d. Roll Call
FCUSD Superintendent Sarah Koligian called roll for Folsom Cordova USD Board of Education. All were in attendance.

Rancho Cordova City Clerk Stacy Leitner called roll for City of Rancho Cordova Council. Allwere in attendance except for Council Member Donald Terry. Additional staff in attendance: City Manager Micah Runner and City Attorney Adam Lindgren'
Folsom Deputy City Clerk Lydia Konopka, called rollfor City of Folsom Co_uncil. Allwere in attendance except tor wlayor iosario Rbdriguez. Additional staff in attendance: City Manager Elaine Andersen and Assistant City Attorney Sari Dierking.

II. ADOPTION OF THE AGENDA
Each agency approved the agenda.
1il. I UCTION OF ESTS
FCUSD Board president David Reid welcomed the City of Rancho Cordova and City of Folsom City Councils and shared a historical summary of the purpose of the special joint meeting.

Rancho Cordova Mayor Linda Budge and Folsom Vice Mayor YK Chalamcherla provided opening remarks.

IV. DISCUSSION
a. Process of District Re-Organization and Feasibility Study Report FCUSD Superintendent Sarah Koligian welcomed Vice President and Consultant of School Services of California (bsCnr-) Brianna Garcia who provided information regarding the process of a district reorganizaiion and feasibility study. Ms. Garcia recognized Assistant Superintendent of Business Services Sean Martin for his assistance on this item.

DRAFT - Not fficial until approved by City Council Page 8 07/11/2023 Item No.2.

Book77 Page 104
Folsom City Council
June 8, 2023
Ms. Garcia shared information regarding the reorganization process and responded to questions from the School Board and City Councils.

The following speakers addressed the Board and Councils:

1. Heidi Moore

2. Jennifer Lane

3. Madelaine. Sanderson

4. Ed Short
Rancho Cordova Councilmembers shared their thoughts regarding a feasibility study.

Folsom Councilmembers shared their thoughts regarding a feasibility study.

FCUSD Board of Education Trustees shared their thoughts regarding support for a feasibility study. The Trustees gave direction to FCUSD staff to bring the item back as a discussion/action item at their June 15,2023, regular Board meeting.

V. ADJOURNMENT:

There being no further business to come before the agencies, the joint meeting was adjourned at 8:49 pm.

SUBMITTED BY
Lydia Konopka, Deputy City Clerk
ATTEST:

YK Chalamcherla, Vice MaYor
DRAFT - Not fficial until approved by City Council Page 9 07/11/2023 Item No.2.

This page intentionolly Ieft blonk
to focilitate double- sided printing .

CITY OF
FOLSOl\{
DISTIXCTIVE BY NATURg

07/11/2023 Item No.2.

Book77 Page 105
Folsom City Council
June 13, 2023
Gity Council Special Meeting

MINUTES
Tuesday, June 13,2023 3:00 PM

CALL TO ORDER
The special City Council meeting was called to order at 3:00 p.m. with Mayor Rosario Rodriguez presiding.

ROLL CALL:

Councilmembers Present: Sarah Aquino, Councilmember
YK Chalamcherla, Vice Mayor
Mike Kozlowski, Councilmember
Rosario Rodriguez, Mayor
Councilmembers Absent: Anna Rohrbough, Councilmember (arrived at 3:01 pm) Participating Staff: City Manager Elaine Andersen
City Attorney Steven Wang
Deputy City Clerk Lydia Konopka
ADJOURNMENT CLOSED SESSION FOR THE FOLL NG PURPOSES:

1. Conference with Legal Counsel- Existing Litigation - Pursuant to Government Code Section 54956.9(d)(1): Darlene Patricia Miranda v. City of Folsom, Sacramento County Superior Court Case No. 23CV000662

2. Conference with Legal Counsel - Existing Litigation - Pursuant to Government Code Section 54956.9(d)(1): Benjamin J. Bryant v. City of Folsom, County of Sacramento, Sattler Family Trust, Daryon Sattler, Sacramento County Superior Court Case No. 34-2020-00273590

3. Conference with Legal Counsel - Existing Litigation - Pursuant to Government Code Section 54956.9(d)(1): Margaret Morris, Administrator of the Estate of Steven Bradley Morris v. City of Folsom, Sacramento County Superior Court Case No. 23CV000358

4. Performance Evaluation of Public Employee Pursuant to Government Code section 54957(bX1): Position Title: City Manager
Motion by Councilmember Sarah Aquino, second by Councilmember Mike Kozlowski, to adjourn to closed session for the above referenced items. Motion carried with the following roll call vote:

DMFT - Not fficial until approved by the City Council Page 11 07/11/2023 Item No.3.

Book77 Page 106
Folsom City Council
June 13, 2023
AYES:

NOES:

ABSENT:

ABSTAIN:

Gouncilmember(s): Aquino, Ghalamcherla, Kozlowski, Rodriguez Councilmember(s): None
Councilmember(s): Rohrbough
Gouncilmember(s): None
Councilmember Anna Rohrbough arrived at 3:01 pm and participated in the entire closed session discussion.

REGONVENE
City Attorney Steven Wang announced that no final action was taken during closed session.

ADJOURNMENT
The special meeting was adjourned to the regular City Council meeting at 6:32 p.m SUBMITTED BY:

Lydia Konopka, Deputy City Clerk
ATTEST:

Rosario Rodriguez, Mayor
DRAFT - Not fficial until approved by the City Council Page 12 07/11/2023 Item No.3.

Book77 Page 107
Folsom City Council
June 13, 2023
Gity Council Regular Meeting

MINUTES
Tuesday, May 23, 2023 6:30 PM

CALL TO ORDER
The regular City Council meeting was called to order at 6:32 pm with Mayor Rosario Rodriguez presiding.

ROLL CALL:

Councilmembers Present: Anna Rohrbough, Councilmember
Sarah Aquino, Councilmember
YK Chalamcherla, Vice Mayor
Mike Kozlowski, Councilmember
Rosario Rodriguez, Mayor
Councilmembers Absent:

Participating Staff:

None
City Manager Elaine Andersen
City Attorney Steven Wang
CFO/Finance Director Stacey Tamagni
Deputy City Clerk Lydia Konopka
Assistant City Clerk Jennifer Jimenez
Community Development Director Pam Johns
Public Works Director Mark Rackovan
Public Works Traffic Engineer Zach Bosch
Community Development Planning Manager Desmond Parrington

PLEDGE OF ALLEGIANGE
The pledge of allegiance was recited

AGENDA UPDATE
City Attorney Steven Wang announced that there was additional information for items 6 and 15 and a revised staff report for item 16. He explained that items will be taken out of order, after item 13, item would be in the order of items 16, 15 then 14.

DRAFT - Not fficial until approved by City Council Page 13 07/11/2023 Item No.3.

Book77 Page 108
Folsom City Council
June 13, 2023
BUSINESS FROM THE FLOOR:

The following speakers addressed the City Council

1. Loretta Hettinger regarding support for Folsom history

2. Folsom Police Officer Rickey Jones, who yielded his time to Sergeant Grueneberg

3. Folsom Police Sergeant Mike Grueneberg, representing the Folsom Police Officers Association regarding Mayor Rodriguez's comments at the previous Council meeting, the problems related to homelessness, and the Police Department's efforts addressing homelessness

4. Doug Scalzi regarding homelessness and in support of law enforcement SCHEDU LED PRESENTATIONS:

1. Proclamation of the Mayor of the City of Folsom Proclaiming July 1 - 3,2023 as Western Rodeo Days in the City of Folsom
Mayor Rosario Rodriguez presented the proclamation to Folsom Pro Rodeo Grand Marshal Kris Keables.

GONSENT GALENDAR (taken out of order):

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. Resolution No. 1'1039 - A Resolution Authorizing the City Manager to Execute an Agreement with the Sacramento and San Joaquin Drainage District, Acting by and Through the Central Valley Flood Protection Board of the State of California, for the Reimbursement of Road Usage in Relation to the Folsom Dam Raise Project

3. Resolution No. 11 042 - A Resolution Authorizing the City Manager to Submit an Application for Grant Funds to the California Board of State and Community Corrections (BSCC) Organized Retail Theft Prevention Grant Program

4. Resolution No. 11043 - A Resolution Authorizing the City Manager to Execute an lnter-Agency Agreement for Cost-Sharing of the Water Forum 2.0 Agreement Update for Fiscal Year 2023-24 and Fiscal Year 2024-25

5. Resolution No. 1 1045 - A Resolution Authorizing the City Manager to Execute a Cooperative Agreement with Sacramento Housing and Redevelopment Agency for Continued Participation in the Community Development Block Grant Program and Related Activities from January 1,2024 to December 31,2026

6. pulled for comment

7. Resolution No. 11047 - A Resolution Authorizing the City Manager to Execute a Communications Site License Agreement with Dish Wireless, LLC.

8. Resolution No. 11048 - A Resolution Authorizing the City Manager to Execute Fifth Amendment to the Reciprocal Use and Funding Agreement Among the Sacramento Placerville Transportation Corridor Joint Powers Authority (JPA) and lts Member Agencies in Connection with Sacramento Regional Transit (SacRT) Double-Tracking Project DRAFT - Not fficial until approved by City Council

07/11/2023 Item No.3.

Book 77 Page 109
Folsom Ci$ Council
June 13, 2023
g. Resolution No. 1 1049 - A Resolution Authorizing Staff to Submit Recreational Trail Program (RTP) Grant Application to the California Department of Parks and Recreation for the Trail Connections Projects

10. Resolution No. 1 1050- - A Resolution Authorizing the City Manager to Execute an Agreement with National Auto Fleet Group for the Purchase of a Patch Truck

11. Resolution No. 11051- A Resolution Authorizing the City Manager to Execute a Design and Consulting Services Contract with R.E.Y. Engineers, lnc. for the American River Canyon Drive Surface Drainage Project

12. pulled for comment
Motion by Gouncilmember Sarah Aquino, second by Vice Mayor YK Ghalamcherla, to approve items 2-5 and 7-11 of the Gonsent Galendar.

Motion carried with the following roll call vote:

AYES: Gouncilmember(s): Rohrbough, Aquino, Ghalamcherla, Kozlowski, Rodriguez NOES: Councilmember(s): None
ABSENT: Gouncilmember(s): None
ABSTAIN: Gouncilmember(s): None
CONSENT CALENDAR ITEMS PULLED FOR DISCUSSION:

6. Resolution No. 1 1046 - A Resolution Authorizing the City Manager to Execute a Consultant and Professional Services Agreement with RRM Design Group for Completion of the River District Master Plan
This item was pulled at the request of speaker Terry Sorensen. Mr. Sorensen commented regarding the lack of information in the staff report. City Manager Elaine Andersen explained that additional information has been provided and is available at the table of the Council Chambers.

Motion by Gouncilmember Mike Kozlowski, second by Gouncilmember Sarah Aquino, to approve Resolution No. 11046.

Motion carried with the following roll call vote:

AYES: Gouncilmember(s): Rohrbough, Aquino, Ghalamcherla, Kozlowski, Rodriguez NOES: Councilmember(s): None
ABSENT: Councilmember(s): None
ABSTAIN: Gouncilmember(s): None

12. Resolution No. 11052 - A Resolution Authorizing the City Manager to Execute a Construction Agreement with RBH Construction, lnc. for the Community Development Department Permit Counter Project and Appropriation of Funds
Vice Mayor YK Chalamcherla commented regarding the procurement process.

DRAFT - Not fficial until approved by City Council

07/11/2023 Item No.3.

Book77 Page 1 10
Folsom City Council
June 13,2023
Motion by Vice Mayor YK Ghalamcherla, second by Councilmember Sarah Aquino, to approve Resolution No. 11052.

Motion carried with the following roll call vote:

AYES: Gouncilmember(s): Rohrbough, Aquino, Ghalamcherla, Kozlowski, Rodriguez NOES: Councilmember(s): None
ABSENT: Gouncilmember(s): None
ABSTAIN: Councilmember(s): None
PUBLIG HEARING:

13. Resolution No. 11041 - A Resolution of the City Council of the City of Folsom Declaring the Results of the Majority Protest Proceedings and Renewing the Historic Folsom Property and Business lmprovement District, Approving the Assessment Formula and Levying the Assessments
City Attorney Steven Wang introduced the item. Consultant Emily Brown from Civitas made a presentation.

Mayor Rosario Rodriguez opened the public hearing and announced that ballots must be submitted by the close of the public hearing.

The following speaker addressed the City Council:

Crystal Tobias regarding clarification regarding which property owners received ballots. Consultant Emily Brown responded.

Mayor Rosario Rodriguez announced that Assistant City Clerk Jennifer Jimenez would tally the ballots.

She explained that the meeting would continue during the tally, and that the Councilwould take final action on this item after the ballot canvass is complete.

OLD BUSINESS (item taken out of order):

16. Resolution No. 11044 - A Resolution Authorizing the Formation of the River District Master Plan Citizens Advisory Committee
Consultant Robert Goss made a presentation and explained the ballot process for voting for committee members.

The following speakers addressed the City Council

1. Claudia Cummings

2. Terry Sorensen
The City Council discussed the item and received clarification from City Attorney Steven Wang regarding the process. Consultant Robert Goss and Community Development Director Pam Johns provided additional clarification. Jim Snook, representing Folsom Historic District Association, DMFT - Not fficial until approved by City Council Page 16 07/11/2023 Item No.3.

Book77 Page 111
Folsom City Council
June 13,2023
responded at the request of Mayor Rosario Rodriguez regarding their representative on the ballot There was more discussion and clarification between Council and staff.

Councilmember Sarah Aquino suggested the committee be formed with two members from every stakeholder group and one from the Open Space Resource group and to allow every resident who applied as an at-large member to be on the committee. Councilmember Mike Kozlowski concurred.

Councilmember Mike Kozlowski recommended that Claudia Cummings be added to the River District Organizing Committee group. The Council discussed these ideas and concurred.

Motion by Gouncilmember Sarah Aquino, second by Gouncilmember Mike Kozlowski, to take two stakeholders from each category except the Open Space Resource category which will have one and appoint all 11 residents who applied as at-large members and approve Resolution No. 11044.

Motion carried with the following roll call vote:

AYES: Gouncilmember(s): Rohrbough, Aquino, Ghalamcherla, Kozlowski, Rodriguez NOES: Councilmember(s): None
ABSENT: Gouncilmember(s): None
ABSTAIN: Gouncilmember(s): None
Deputy City Clerk Lydia Konopka distributed ballots to the City Council. She read each ballot with the following results:

Councilmember Sarah Aquino:

Major Landowners - CA State Parks and US Bureau of Reclamation Cultural Resources - Folsom History and Shingle Springs Band of Miwok lndians Recreation Resources - CSUS Aquatic Center and Lake Natoma Paddlers Open Space Resources - Friends of Folsom Parkways
Historic District - HRFA Historic Folsom Residents Association and Sutter Street Merchants Association Economic Development - River District Organizing Committee and Folsom Chamber of CommerceA/isit Folsom
Councilmember Mike Kozlowski:

Major Landowners- CA State Parks and US Bureau of Reclamation Cultural Resources - Folsom History and Shingle Springs Band of Miwok lndians Recreation Resources - CSUS Aquatic Center and Lake Natoma Paddlers Open Space Resources (Select up to 1) - Friends of Folsom Parkways Historic District - HRFA Historic Folsom Residents Association and Sutter Street Merchants Association Economic Development - River District Organizing Committee and Folsom Chamber of CommerceA/isit Folsom
Mayor Rosario Rodriguez:

Major Landowners - CA State Parks and US Bureau of Reclamation Cultural Resources - Friends of Folsom Preservation and Folsom History Recreation Resources - CSUS Aquatic Center and FATRAC Folsom Auburn Trail Riders Action Coalition
Open Space Resources - Friends of Folsom Parkways
Historic District - HRFA Historic Folsom Residents Association and Sutter Street Merchants Association DRAFT - Not fficial until approved by City Council Page 17 07/11/2023 Item No.3.

Book77 Page 112
Folsom City Council
June 13,2023
Economic Development - River District Organizing Committee and Folsom Chamber of CommerceA/isit Folsom
Councilmember Anna Rohrbough:

Major Landowners - CA State Parks and US Bureau of Reclamation Cultural Resources - Friends of Folsom Preservation and Folsom History Recreation Resources - CSUS Aquatic Center and Lake Natoma Paddlers Open Space Resources (Select up to 1) - Friends of Folsom Parkways Historic District - HRFA Historic Folsom Residents Association and Sutter Street Merchants Association Economic Development - River District Organizing Committee and Folsom Chamber of CommerceA/isit Folsom
Vice Mayor YK Chalamcherla:

Major Landowners - CA State Parks and US Bureau of Reclamation Cultural Resources - Friends of Folsom Preservation and heritage Preservation League Recreation Resources - FATRAC Folsom Auburn Trail Riders Action Coalition and Lake Natoma Paddlers
Open Space Resources - Friends of Folsom Parkways
Historic District - HRFA Historic Folsom Residents Association and Sutter Street Merchants Association Economic Development - River District Organizing Committee and Folsom Auto Mall Dealers Association
Deputy City Clerk Lydia Konopka read the results into the record, noting that the below stakeholder organizations/individuals are appointed:

Maior Landowners
CA State Parks
(Devin Swartwood)
The contractual operating and managing partner for US Bureau of Reclamation of the Folsom Lake State Recreation Area (FLSRA) US Bureau of Reclamation
(Edward Roza)
USBR is the major landowner (75%+) within River District and is responsible for operations at both Folsom Dam and Nimbus Dam.

Cultural Resources
Friends of Folsom
Preservation (Debra Grassl)
To advocate for the protection and preservation of Folsom's heritage, cultural resources, and the natural environment; and to advocate for land use planning.

Folsom History (Rita
Mukherjee Hoffstadt)
To inspire an innovative future together by connecting Folsom to its inventive roots; founded in 1961; operates the Folsom History Museum and Pioneer Village in the Historic District, and the developing Chinese Heritage Museum.

Recreation Resources
CSUS Aquatic Center
(Brian Dulgar)
A cooperative operation of the Associated Students Inc. of CSUS, Sacramento, the University Union of Sac State, CA Div. of Boating and Waterways, and the CA Dept of Parks and Recreation, providing boating and safety programs through education, recreation, competition.

Lake Natoma Paddlers
(Lisa Horton)
A Facebook group with 8k members focused on recreational paddleboard, and other paddle watercraft activities on Lake Natoma.

Resources
DRAFT - Not fficial until approved by City Council Page 18 07/11/2023 Item No.3.

Book77 Page 1 13
Folsom City Council
June 13, 2023
Friends of Folsom Parkways
(Bruce Cline)
Advocating awareness, use and care of Folsom parkways, fund raising for parkway issues, education, development proposal influence to benefit parkways, identifu parkway expansion where appropriate.

Historic District
HFRA - Historic Folsom
Residents Association
(Mike Reynolds)
Focus is to preserve and protect the Folsom Historic District by forming a resident group that is large enough to be recognized and noticed when decisions are being made that affect the Historic District.

Sutter Street Merchants
Association dba Folsom
Historic District Association
(Karen Holmes)
To preserve, protect, and enhance the Folsom Historic District and its historic and natural assets; to educate others...; to establish it as a destination for visitors and residents alike; etc.

Economic Development
River Distri ct Or ganizing
Commiffee (Will Kempton
and Claudia Cummings)
To assist, promote, and monitor the development of a River District Master Plan for the City of Folsom which contributes to the city's economic development and results in benefits to all stakeholders.

Folsom Chamber of
Commerce/Visit Folsom
(Joe Gaeliardi)
For nearly 80 years, the chamber has been a local business association advocating for businesses concems, tourism and economic development within the city
The City Council adjourned the regular meeting to the joint City Council / Traffic Safety Committee meeting.

JOINT CITY NCIL / TRAFFIC SAFETY C MITTEE MEETING (item out of orderl:

ROLL CALL:

Councilmembers Present:

Councilmembers Absent: None
Traffic Safety Committee
Members Present

CONVENE JOINT MEETING
Joint City Council lTraftic Safety Committee Meeting
Anna Rohrbough, Councilmember
Sarah Aquino, Councilmember
YK Chalamcherla, Vice Mayor
Mike Kozlowski, Councilmember
Rosario Rodriguez, Mayor
Scott Bailey
Joanne Brausch
Kevin Goddard
Zach Bosch (PW Dept)
Sgt. Tim Galovich (Police)
Matt Washburn (FCUSD)
Asst. Chief Chad Wilson (Fire)
DRAFT - Not fficial until approved by City Council Page 19 07/11/2023 Item No.3.

Book77 Page 114
Folsom City Council
June 13, 2023
Participating Staff: City Manager Elaine Andersen
City Attorney Steven Wang
Deputy City Clerk Lydia Konopka
Public Works Director Mark Rackovan
Public Works Traffic Engineer Zach Bosch
NEW BUSINESS:

15. Workshop Regarding Traffic Safety Along the Folsom Lake Corridor Public Works Director Mark Rackovan and Public Works Traffic Engineer Zach Bosch made a presentation and responded to questions from the City Council.

Members of the Traffic Safety Committee commented and asked questions of staff. Public Works Director Mark Rackovan and Public Works Traffic Engineer Zach Bosch responded.

The following speakers addressed the City Council

1. Mark McClelland

2. Bob Delp
Members of the Traffic Safety Committee provided additional comments and asked questions of staff who provided clarification.

The City Council adjourned the joint meeting back to the regular meeting PUBLIG HEARING (item 13 resumed. item 14 taken out of order):

Item 13 was resumed following completion of the protest vote tabulation

13. Resolution No. 11041 - A Resolution of the City Council of the City of Folsom Declaring the Results of the Majority Protest Proceedings and Renewing the Historic Folsom Property and Business lmprovement District, Approving the Assessment Formula and Levying the Assessments
Assistant City Clerk Jennifer Jiminez presented the results of the protest vote tabulation. as 87 .75o/o yes votes and 12.25o/o no votes. She advised that, since a majority protest does not exist, the City Council may consider approval of Resolution No. 11041.

Motion by Gouncilmember Mike Kozlowski, second by Gouncilmember Sarah Aquino, to approve Resolution No. 11041.

Motion carried with the following roll call vote:

AYES: Gouncilmember(s): Rohrbough, Aquino, Ghalamcherla, Kozlowski, Rodriguez NOES: Councilmember(s): None
ABSENT: Gouncilmember(s): None
DRAFT - Not fficial until approved by City Council

07/11/2023 Item No.3.

Book77 Page 115
Folsom City Council
June 13,2023
ABSTAIN: Gouncilmember(s): None

14. Appeal by Bob Delp of Decisions by the Historic District Commission Approving the Demolition of the Cabin at 608 Bridge Street (DRCL23-00016) and Determination that the Project is Exempt from CEQA
Community Development Planning Manager Desmond Parrington made a presentation. He explained that before moving forward with the appeal that the City Council would need to answer whether the appellant has standing to file an appeal. City Attorney Steven Wang provided further clarification regarding eligibility to appeal as stated in the Folsom Municipal Code. Appellant Bob Delp explained why he believes he should be able to appealthis project. Applicant Jennifer Jennings explained why she believes the appellant does not have standing to appealthe project. The City Council deliberated and discussed. City Attorney Steven Wang provided clarification. The City Council decided to allow the appeal.

Motion by Councilmember Anna Rohrbough, second by Vice Mayor YK Chalamcherla, that appellant Bob Delp has the right to appeal the project.

Motion carried with the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Gouncilmember(s): Rohrbough, Aquino, Ghalamcherla,
Gouncilmember(s): Kozlowski, Rodriguez
Councilmember(s): None
Councilmember(s): None
Community Development Planning Manager Desmond Parrington provided background information regarding the project.

Appellant Bob Delp made a presentation.

Applicant Jennifer Jennings made a presentation.

The following speakers addressed the City Council

1. Loretta Hettinger

2. Beth Kelly

3. Terry Sorensen
Appellant Bob Delp made closing comments.

Applicant Jennifer Jennings made closing comments.

The City Council asked for clarification regarding the cabin's history and historic significance. Planning Manager Desmond Parrington responded.

Mayor Rosario Rodriguez closed the public hearing.

Motion by Gouncilmember Sarah Aquino to deny the appeal.

DRAFT - Not fficial until approved by City Council Page 21 07/11/2023 Item No.3.

Book77 Page 1 16
Folsom City Council
June 13, 2023
Mayor Rosario Rodriguez recommended that the applicant offer the cabin to anyone who would like to remove it from the property. Attorney Steven Wang clarified that it would need to be part of the motion to add a condition of approval. The City Council discussed adding this requirement including having a specified time limit of 30 days to allow anyone interested to remove the cabin before the applicant can demolish it. Councilmember Sarah Aquino asked City Attorney Steven Wang if they needed to add language regarding tolling in case of a lawsuit. Mr. Wang clarified that they would need to amend condition number 3 and he asked Mr. Parrington to provide language.

Planning Manager Desmond Parrington provided language to amend condition of approval 3 regarding tolling and language to add a new condition regarding removal of the cabin:
a
a
Condition of Approval #3 [Modification of existing condition]: The project approval granted under this staff report shall remain in effect for two years from final date of approval (May 3, 2025). Failure to obtain the relevant demolition permit within this time, without the subsequent extension of this approval, shall result in the termination of this approval. lf a lawsuit is filed against the City which seeks to invalidate the approval or the permit required in connection with the approval, or to challenge the issuance by any governmental agency of any environmental document or exemption determination, the project approval shall be tolled during the time that any litigation is pending, including any appeals.

Condition of Approval 8 [New Condition]: The applicant shall not demolish the cabin for 30 days to allow for the possible removal of the cabin by others within the 30-day period at no cost to the applicant.

Amended Motion by Councilmember Sarah Aquino to deny the appeal but the applicant does not demolish the building for 30 days to allow time for someone to come forward and remove the cabin and to amend condition of approval number 3 as stated.

Councilmember Anna Rohrbough asked for an amendment for clarification that there will be no cost to the applicant for the removal of the cabin and that the cabin must be removed within 30 days.

Councilmember Sarah agreed to the amendment.

Second Amended Motion by Gouncilmember Sarah Aquino, second by Gouncilmember Mike Kozlowski, to deny the appeal and the applicant cannot demolish the building for 30 days to give time for someone to come forward and remove the cabin, with no cost to the applicant and that the cabin must be removed within 30 days and amend condition number 3 as stated.

Motion carried with the following roll call vote:

AYES: Gouncilmember(s): Rohrbough, Aquino, Chalamcherla, Kozlowski, Rodriguez NOES: Gouncilmember(s): None
ABSENT: Gouncilmember(s): None
ABSTAIN: Gouncilmember(s): None

COUNCIL REQUEST FOR FUTURE AGENDA ITEMS
Councilmember Sarah Aquino asked that the Folsom Municipal Code be reviewed regarding keeping livestock. Community Development Director Pam Johns explained that this will be part of the future Zoning Code Update. The Council agreed not to bring it back as a separate item.

DRAFT - Not fficial until approved by City Council

07/11/2023 Item No.3.

Book77 Page 117
Folsom City Council
June 13, 2023
Councilmember Mike Kozlowski requested the Council review options as it pertains to who has standing for appeals throughout the City to have a consistent set of rules that apply.

CITY MANAGER REPORTS
City Manager Elaine Andersen announced the following: end of stage 3 water conservation in Folsom, traffic safety improvement project at Folsom Lake Crossing, 1Oth Annual Community Service Day September 16 and she thanked City Attorney Steven Wang for his service with the US Army.

GOUNGIL COMMENTS:

Councilmember Anna Rohrbough thanked City Attorney Steven Wang for his service to our country She commented regarding visiting the Folsom Dam and spillway.

Vice Mayor YK Chalamcherla commented regarding the Joint meeting with Traffic Safety Committee Councilmember Mike Kozlowski reminded everyone to get their tickets for the Folsom Pro Rodeo.

Mayor Rosario Rodriguez, in response to Folsom Police Sergeant Mike Grueneberg's comments during business from the floor described her experience with homelessness in Folsom. She spoke of her appreciation for the collaborative efforts between local non-profits and the Police Department and commended the Folsom Community Crime Suppression Unit, Sergeant Grueneberg and Officer Jones for their work.

ADJOURNMENT
There being no further business to come before the Folsom City Council, Mayor Rosario Rodriguez adjourned the meeting at 1 1:43 pm.

SUBMITTED BY:

Lydia Konopka, Deputy City Clerk
ATTEST
Rosario Rodriguez, Mayor
DRAFT - Not fficial until approved by City Council

07/11/2023 Item No.3.

This page intenttonolly left blsnk
to focilitate double- sided printtng .

CITY OF
FOLSOl\{

OISTINCTIVE BY NATURE

07/11/2023 Item No.3.

Folsom City Council
Staff rt

RECOMMENDATION / CITY COUNCIL ACTION
Staff requests that the Mayor appoint Helaine Uhlig (with approval from the City Council) to the Folsom Landscaping and Lighting District Advisory Committee to represent the Briggs Ranch District for the term ending in December 2026.

BACKGROUND / ISSUE
Folsom Municipal Code Chapter 16.56 establishes the Landscaping and Lighting District Advisory Committee (L&L Committee) and defines the Committee's pu{pose as helping to enhancethe line of communication between city staff and elected/appointed city bodies. The citizens' committee may also make recommendations to the Landscaping and Lighting District Manager, the Community Development Director and the Public Works Director concerning the maintenance and associated costs to maintain and improve landscaping and lighting districts.

The Committee is comprised of one person from each landscaping and lighting district. The members shall be registered voters and residents or owners within their respective landscaping and lighting district and serve for a period of four years.

POLICY/ RULE
Folsom Municipal Code Section 16.56.030(8) states that the mayor shall appoint each of the members, subject to the approval of the City Council.
1 MEETING DATE: 7nU2023
AGENDA SECTION: Consent Calendar
SUBJECT: Appointment of At-Large Member to the Folsom Landscaping and Lighting District Advisory Committee to Represent the Briggs Ranch District
F'ROM: City Clerk's Department

07/11/2023 Item No.4.

ANALYSIS
The L&L Committee continues to have vacancies for certain districts, and staff maintains an open recruitment for these vacancies. One application has recently been received for the Briggs Ranch District vacant seat:

Staff has confirmed that the applicant's address is within the Briggs Ranch District and that the applicant is a registered voterand they are therefore eligible to be appointed. The application has pieviously been provided to the City Council for advance consideration.

Respectfully submitted,
Christa Freemantle, CMC
City Clerk
') Page 26
07/11/2023 Item No.4.

Folsom City Council
Staff Re rt
MEETING DATE: Tltt 12023
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 11053 - A Resolution Authorizing the City Manager to Execute an Agreement with NTU Technologies, Inc. for the Purchase of Chemicals for the Water Treatment Plant FROM: Environmental and Water Resources Department

RECOMMENDATION / CITY COUNCIL ACTION
The Environmental and Water Resources Department recommends the City Council pass and adopt Resolution No. 11053 - A Resolution Authorizingthe City Manager to Execute an Agreement with NTU Technologies, Inc. for the Purchase of Chemicals for the Water Treatment Plant.

BACKGROUND / ISSUE
The City of Folsom's Water Treatment Plant (WTP) utilizes surface water from Folsom Lake for water supply. The WTP is designed to produce 50 million gallon per day (mgd) of potable water. The treatment processes include rapid mix, pretreatment with a conventional flocculation and sedimentation basin, and an Actiflo system for high rate clarification, a conventional sand/anthracite dual media filter, and solids handling facilities. In order to be consistent with State regulatory requirements and industry best management practices, the City uses a variety of chemicals to aid in the treatment process listed above. These chemicals are vital to these treatment processes.

Several of the chemicals used at the WTP have specific and proprietary properties that require the City to contract directly with companies. These chemicals include:
1

07/11/2023 Item No.5.

This resolution will authorize the City Manager to execute an agreement with NTU Technologies, Inc. for the purchase of chemicals for use at the Water Treatment Plant'

POLICY / RULE
In accordance with Chapter 2.36 of theFolsom Municipal Code. supplies, equipment, services, and construction with a-value of $70,952 or greater shall be awarded by Ctty Council.

ANALYSIS
When using coagulants, water properties have a large effect on the type of coagulant to use in the treatment process. These properties include alkalinity, water temperature, turbidity and filterability. These water quality properties are very different depending on the time of year, weather events such as storms und stto* melt, and Folsom Lake turnover. Changes in the incoming water qualrty will affect settling rates in filters, sludge production, required chemical dosages, and pretreatment turbidity which can all impact the water quality of the treated watei. In addition, City staff operates a conventional flocculation and sedimentation basin, a high rate Actiflo flocculation system, and a solids handling system that require specific ch-emical additions to properly treatthe water. Using apolymerthat canhandle the whole range of these water propertiesintering the WTP is important to the treatment operators to maintain consistent water qualitY.

The current chemicals used by the City in the treatment process are very successful in providing high water qualrty for the City's water customers. In order to maintain current water quality siandards, any new chemicals must also meet these standards. In order to ensure any new chemicals would be able to meet these standards, the City would have to perform various analytical tests to confirm the new polymer's ability to perform in a variety of conditions. The pro"L5 for testing in all seasons of the year, after storm events, during snow melt, and high alkalinity water would be at least ayeat long process.

In addition to the analytical testing, the City operators would need to inform and follow the State Water Resources Control Board, Division of Drinking Water requirements to confirm that changing chemicals would not adversely affect the water quality produced. A year long trial period io confirm the polymer performance, as well as a contingency plan, would be required by the State.

Furthermore, the City uses specific proprietary chemicals from NTU Technologies at the WTP and receives quality product and good customer service. During calendar year 2018, operators optimized the treatrnent process, which led to reduced polymer usage throughout the system. part of this reduction *ur drr" to service and testing provided by NTU Technologies. NTU has a location in Davis, CA which allows for very quick response to any City problems and requests.
2 Page 28
07/11/2023 Item No.5.

EWR staff contacted five water providers inthe area, including San Juan Water District, Placer County Water Agency, El Dorado Irrigation District, City of Roseville and City of West Sacramento to discuss chemical purchasing and usage. Through these discussions with other water providers in the area, itbecame clear that treatment process, water supply, quantity of chemicals purchased, chemical equipment, storage available, and chemical dose all affected which polymer was used at a specific plant. There was no correlation to directly compare polymer usage and pricing.

The table below shows costs for chemicals that Environmental and Water Resource staff estimate will be used during fiscal year 2023-24:

Chemical $/lb
Est. cost for
FY23-24
ACH Primary) $0.62 $300,000
Dry Anionic Polymer $3.s6 $55,000
Dry Non-Ionic Polymer $4.30 $5,000
Liquid Cationic Polymer $2.33 $5,000
Liquid Anionic Polymer $2.13 $22,000
Total $ 387,ooo
The Environmental & Water Resources Department recofilmends a waiver of bid and requests that the City Council authorize the City Manager to execute an agreement with NTU Technologies, Inc. for the purchase of chemicals for the Water Treatment Plant in the amount riot to exceed $387,000.

FINAN IMPACT
Sufficient funds for the purchase of Water Treatment Plant chemicals have been included in the FY 2023-24 operations budget.

ENVIRONMENTAL REVIEW
This action is exempt from environmental review under the California Environmental Quality Act (CEQA).

ATTACHMENT
Resolution No. I 1053 - A Resolution Authorizing the City Manager to Execute an Agreement with NTU Technologies, Inc. for the Purchase of Chemicals for the Water Treatment Plant aJ
Submitted,

07/11/2023 Item No.5.

Marcus Yasutake, Director

ENVIRONMENTAL AND WATER RESOURCES DEPARTMENT
4 Page 30
07/11/2023 Item No.5.

RESOLUTION NO. 11053

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH NTU TECHNOLOGIES INC. FOR THE PURCHASE OF'

CHEMICALS FOR THE WATER TREATMENT PLANT
WHEREAS' the City identifies that the purchase is critical to ensuring the treatment of high quality water to be delivered to all customers; and WHEREAS, the City of Folsom has identified this purchase as a priority to maintain the integrity and operation of the water treatment system; and WHEREAS, the chemicals have proven to provide high water quality with the City's unique treatment process and variety of incoming water properties; and WHEREAS, NTU Technologies, Inc. chemicals are specific and proprietary with unique chemical blends optimal for the City's treatment process, which requires the City purchase these chemicals through a sole source procurement process; and WHEREAS, sufficient funds have been budgeted and are available in the Water Operating Fund (Fund 520); 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 NTU Technologies, Inc. for the purchase of chemicals for the water treatment plant for an amount not-to-exceed $387,000. pASSED AND ADOPTED this 1ln day of July, 2023,by the following roll-call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmember(s)
Councilmember(s)
Councilmember(s)
Councilmember(s)
Rosario Rodriguez, MAYOR
ATTEST:

Christa Freemantle, CITY CLERK
ResolutionNo. 11053
Page I of 1 Page 31
07/11/2023 Item No.5.

This page intentionally Ieft blsnk
to facilitqte double- sided printing .

CITY OF
FOLSOl\{
D]9TINCTIVE gY XATURE

07/11/2023 Item No.5.

Folsom City Council
Staff Report
MEETING DATE: Tlrl 12023
AGENDA SECTION: Consent Calendar
STAFF REPORT TITLE Resolution No. 1 1062 - A Resolution Authorizing the City Manager to Accept a Cannabis Tax Fund Grant Program
offered by the California Highway Patrol in the Amount of $92,772.60 to reduce and mitigate the impacts of impaired driving and Appropriation of Funds
FROM: Police Department

RECOMMENDATION / CITY COUNCIL ACTION
Staff recommends the City Council approve Resolution No. 11062 - A Resolution Authorizing the City Manager to Accept a Cannabis Tax Fund Grant Program offered by the California Highway Patrol in the Amount of $92,772.60 to reduce and mitigate the impacts of impaired driving and Appropriation of Funds.

BACKGROUND / ISSUE
In2076, California voters voted in favor of Proposition64, the Control, Regulate, and Tax Adult Use of Marijuana Act. The legislation decriminalized many aspects of cannabis use. By 2018, it was estimated 42%o of California drivers that were killed in vehicle collisions had tested positive for legal or illegal drugs. To combat this rise, the California Highway Patrol has granted $27 million in funding to qualified applicants in local communities to support education and enforcement of cannabis-related impaired driving. The aim ofthis program is to reduce the number of DUI accident victims.

In an application to the California Highway Patrol, Cannabis Tax Fund Grant Program, the Folsom Police Department has requested funding to combat impaired driving. The funds would cover four (4) officers to attend a Standardized Field Sobriety Test (SFST) program, allow the city to host four (4) DUI checkpoints, provide four (4) presentations to school groups on the negative aspects of driving while intoxicated, perform eight (8) Know Your Limits - sober driver/DUl prevention Campaigns, and staff twelve (12) impaired driving saturation patrols. Each of these programs will help to limit the number of impaired drivers within the city.

07/11/2023 Item No.6.

POLICY / RULE
In accordance with Chapter 2.36 of the Folsom Municipal Code, supplies, equipment, services, and construction with a value of $70,952 or greater shall be awarded by the City Council.

ANALYSIS
The California Highway Patrol Cannabis Tax Fund Grant Program provides funding to reimburse law enforcement agencies to train and perform enforcement efforts geared at reducing fatal collisions caused by impaired drivers.

Having access to the funding provided by the Cannabis Tax Fund Grant Program will help the City of Folsom combat impaired drivers. Through these monies, the police department will send a minimum of four (4) officers through a Standardized Field Sobriety Test (SFST) program, host four (4) DUI checkpoints within the City, provide four (4) presentations to school groups on the negative aspects of driving while intoxicated, perform eight (8) Know Your Limits - sober driver/DUl prevention Campaigns, and staff twelve (12) impaired driving saturation patrols. Each of these programs will help to limit the number of impaired drivers within the city. By participating in the Cannabis Tax Fund Grant Program, the Folsom Police Department intends to continue its work in bringing awareness of the dangers of impaired driving through education and enforcement efforts to reduce the number of fatal and injury collisions in the City of Folsom.

FINANCIAL IMPACT
There is no negative fiscal impactto the City as the CaliforniaHighway Patrol Cannabis Tax Fund Program is granting $92,772.60 to the City of Folsom. Staff is requesting an additional appropriation to be appropriated to the Fiscal Year 2023-24 Operating Budget in the General Fund (Fund 010) in the Police Department for this grant, in the amount of $92,772.60.

ENVIRONMENTAL REVIEW
N/A.

ATTA NTS
l. Resolution No. 11062 - A Resolution Authorizing the City Manager to Accept a Cannabis Tax Fund Grant Program offered by the California Highway Patrol in the Amount of $92,772.60 to reduce and mitigate the impacts of impaired driving and Appropriation of Funds

2. Department of California Highway Patrol conditional approval funding letter Submitted,
Richard D. Hillman, Chief of Police

07/11/2023 Item No.6.

ATTACHMENT 1

07/11/2023 Item No.6.

RESOLUTION NO. LLO62

A RESOLUTION AUTHORIZING THE CITY MANAGER TO ACCEPT A CANNABIS

TAX FUND GRANT PROGRAM OFFERED BY THE CALIFORNIA HIGHWAY PATROL IN THE AMOUNT OF 592,772.60 TO REDUCE AND MITIGAE THE

IMPACTS OF IMPAIRED DRIVING AND APPROPRIATION OF FUNDS
WHEREAS, the City of Folsom Police Department is requesting the City Council authorize the acceptance of a Cannabis Tax Fund Grant Program grant for the Period of July 1, 2023 tl;g;ough June 30,2024, from the California Highway Patrol, in the amount of $92,772.60; and
WHEREAS, in 201 8 it was estimated 42o/o of California drivers that were killed in vehicle collisions tested positive for legal or illegal drugs. To combat this issue, the California Highway Patrol has grante d $27 million in funding to local communities to support education and enforcementof cannabis related impaired driving and reduce the number of DUI accident victims; and
WHEREAS, the grant monies will be used to reimburse personnel overtime costs associated with the training of officers in the detection, apprehension, and prosecution of impaired drivers as well as presentations to school groups; 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 hereby authorizes the City Manager to accept a Cannabis Tax Fund Grant Program grant offered by the California Highway Patrol to reduce and mitigate the impacts of impaired driving.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Folsom authorizes the Finance Director to appropriate $92,772.60 to the Police Department Fiscal Year 2023-24 General Fund Operating Budget (Fund 010). pASSED AND ADOPTED this l lth day of July 2023, by the following roll-call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmember(s):

Councilmember(s):

Councilmember(s):

Councilmember(s):

Rosario Rodriguez, MAYOR
ATTEST:

Christa Freemantle, CITY CLERK
ResolutionNo. 11062
Page I of I Page 36
07/11/2023 Item No.6.

ATTACHMENT 2

07/11/2023 Item No.6.

Stab of Calibmia - Transportation Agency GAVIN NEWSOM, Governor

DEPARTMENT OF CALIFORNIA HIGHWAY PATROL
601 North 7th Street
Sacramento, CA 958{l
{sr0) 843-3330
(8oo) 735-292e (TT/TDD)
(800) 735-2922 (Voice)
June7,2023
File No. : 060.1 5426.1 4 597 .066.2023.06004
Lieutenant Chris Emery
Folsom Police Department
46 Natoma Street
Folsom, CA 95630
Dear Lieutenant Emery:

On behalf of the California Highway Patrol (CHP), it is my pleasure to inform you, the Folsom Police Department, is conditionally approved for Cannabis Tax Fund Grant Program (CTFGP) funding in the amount of $92,7'72.60. The purpose of this grant funding is to help your agency reduce and mitigate the impacts of impaircd driving in your community.

The official Grant Agreement for signature is forthcoming. In order to execute your Grant Agreement, please provide documentation from a local governing body, authorizing your organization to receive this grant funding, to the Cannabis Grants Unit, by email at CCljCrants(&chp.ca.gov, as soon as possible.

Referto California Code of Regulations Title 13, Division 2,Chapter 13, Section 1890.13(g) for additional information.

The CHP looks forward to partnering with you and your agency on this project in an effort to make California's roadways a safer place to travel. Ifyou have any questions, please feel free to contact the Cannabis Grants Unit at (916) 843-4360.

Sincerely,
V"t-V^,*
K. M. DAVIS, Chief
Enforcement and Planning Division
Safety, Service, and Security An Internationally Accredited Agency

07/11/2023 Item No.6.

Folsom City Council
Staff ort

RECOMMENDATION / CITY COUNCIL AETIQN
The Environmental and Water Resources Department recommends the City Council'pass and adopt Resolution No. 11064 - A Resolution Authorizing the City Manager to Execute an Agreement with Black & Veatch Corporation for the Design of the Water Treatment Plant Caustic Soda System Project.

BACKGROUND / ISSUE
The Environmental and Water Resources (EWR) Department identifies projects that are critical to ensuring the delivery of adequate and high-quality water supply to all water customers through water master plans, ongoing condition assessment programs, and regulatory changes. Through these efforts, City staff identified the Water Treatment Plant Caustic Soda System Project as a priority project.

In October 2021 through Resolution No. 10713, City Council authorized an agreement with Black & Veatch Corporation to perform a water quality evaluation of the City's current treatment process related to finished water qualrty targets and possible treatment altematives based on the consultant's specialty experience in water treatment processes and familiarity with the Crty's Water Treatment Plant (WTP). Black & Veatch finished the water qualrty analysis for possible treatment alternatives in February of 2023, and recommended the City to switch from the existing lime system to caustic soda.

I
MEETING DATE: 711U2023
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. I 1064 - A Resolution Authorizing the City Manager to Execute an Agreement with Black & Veatch
Corporation for the Design of the Water Treatment Plant Caustic Soda System Proiect
FROM: Environmental and Water Resources Department

07/11/2023 Item No.7.

This resolution will authorize the City Manager to execute an agreement with Black & Veatch Corporation for the Design of the Water Treatment Plant Caustic Soda System Project for the City for a not-to-exceed amount of $233,915.

POLICY / RULE
In accordance with Chapter 2.36 of the Folsom Municipal Code" supplies, equipment, services, and construction with a value of $70,952 or greater shall be awarded by Ctty Council.

ANALYSIS
In August of 2020, the City hired Black & Veatch to provide an evaluation of the City's "oooriol
control methods and it was recommended by Black & Veatch to add orthophosphate to the City's water treatment process. A follow up evaluation that began in October 2021was recommended to determine if the selected dosage of orthophosphate was able to be optimized or if any modifications to the target finished water pH could further improve the corrosion control treatment (CCT).

This evaluation compared the City's current CCT using orthophosphate with alternative CCTs that included changes in chemical treatments from lime to sodium hydroxide, changes in finished water pU, and changes in orthophosphate residual. Water quality modeling was used to identiff optimal chemical dosages for alternative CCTs. Bench-scale corrosion testing was used to veriff the modeling results and the effectiveness of alternative CCTs towards lead and copper leaching from materials known to be present in the Crty's system.

The recommendation from the finished water quality analysis and alternative bench-scale tests was for the City to switch from the existing lime system to sodium hydroxide (also known as caustic soda) which would allow WTP operators to achieve a specific finished water pH even with seasonal changes in the raw water qualrty with greater reliability and reduced chemical costs. Overall, the optimal condition identified from bench-scale testing involves maintaining the current orthophosphate dosage (0.9 mglL as PO4) and using sodium hydroxide to target a finished water pH of 8.5.

Black & Veatch Corporation was determined to provide the best value to the City based on the past municipal project experience involving work of similar scope and complexity including iechnical knowledge and specialty expertise in water treatment processes, as well as intimate knowledge of the Ctty'r water treatment processes and WTP operations. Their scope of work will include the following:
o Overall project management
o Basis of design report to document design criteria, project implementation, and alternative site designs
o 90Yo and 100%o design plans and specification
. Opinion of Probable Construction Costs
o Issuance ofany required bid addenda
2 Page 40
07/11/2023 Item No.7.
. Bid review
o Conformed to Bid Drawings
This resolution will authorize the City Manager to execute an agreement with Black & Veatch Corporation for the Design of the Water Treatment Plant Caustic Soda System Project for the City for a not-to-exceed amount of $233,915.

FISCAL ACT
The Water Treatment Plant Caustic Soda System Project is included in the Fiscal Year 2023- 24 Capital Improvement Plan with a total project budget of $3,222,500. Sufficient funds are available in the Water Operating Fund (Fund 520) andthe EWR Department recommends that the contract be awarded to Black & Veatch Corporation for $233,915.

ENVIRONMENTAL REVIEW
This project is replacement and/or improvement of existing infrastructure with negligible or no expansion of use and therefore is categorically exempt from environmental review under the Cdifornia Environmental Quality Act as noted in Title 14 - California Code of Regulations, Chapter 3 - Guidelines for Implementation of the California Environmental q*lrty Act, Article 19 - Categorical Exemptions, Sections 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), and/or 15304 (Minor Alterations to Land).

ATTACHMENT
ResolutionNo. 11064 - A Resolution Authorizing the City Manager to Execute an Agreement with Black & Veatch Corporation for the Design of the Water Treatment Plant Caustic Soda System Project for a not-to-exceed amount of $233,915
Submitted,
Marcus Yasutake, Director

ENVIRONMENTAL AND WATER RESOURCES DEPARTMENT
J Page 41
07/11/2023 Item No.7.

RESOLUTION NO. 11064

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE DESIGN OF

THE WATER TREATMENT PLANT CAUSTIC SODA SYSTEM PROJECT
WHEREAS, the City identified that the project is critical to ensuring the treatment of high quality water supply to be delivered to all residents; and WHEREAS, the City of Folsom has identified this project as a priority to maintain the integrity and operation of the water treatment system; and WHEREAS, Black & Veatch Corporation, by reason of their past experience and abilities for performing these types of services, are qualified to perform the required consulting and design services for the project; and
WHEREAS, sufficient funds are available in the Water Operating Fund (Fund 520) in the amount of $233,915; 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 Black & Veatch Corporation for the Design of the Water Treatment Plant Caustic Soda System Project for the City for an amount not-to-exceed $233,91 5.
pASSED AND ADOPTED this 1lft day of July 2023, by the following roll-call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmember(s):

Councilmember(s):

Councilmember(s):

Councilmember(s):

Rosario Rodriguez, MAYOR
ATTEST:

Christa Freemantle, CITY CLERK
Resolution No. 11064
Page I of1 Page 42
07/11/2023 Item No.7.
h
Folsom City Council
Staff ort

RECOMMENDATION / CITY COUNCIL ACTION
The Public Works Department recommends that the City Council pass and adopt Resolution No. 11065 - A Resolution Authorizingthe City Manager to Execute an Agreement with Crafco, Inc. for the Purchase of a Crack Sealing Machine. / ISSUE
The Public Works Deparfinent Street Maintenance Division is responsible for maintenance of the clty's roadways. Crack sealing is an effective road preservation tool that reduces pavement deterioration by preventing water intrusion. Cracks occur on pavement due to traJfic load and thermal stress and if left untreated, can result in more cracks, potholes, deeper erosion, and sub- base failure. Crack sealing can extend pavement life and is an extremely valuable preventative maintenance tool when compared to other more expensive treafrnent options. The division's existing crack sealing machine is twenty-three years old' This resolution will authorize the City Manager to execute an agreement with Crafco, Inc. for the purchase of a crack sealing machine. The cost for the purchase of the crack sealing machine will not exceed $95,617.84. Sufficient funds to purchase the crack sealing machine are budgeted and available in the Fiscal Year 2023-24Public Works Fund (Fund 023).

MEETING DATE: T ltlt2023
AGENDA SECTION: Consent Calendar
SUBJECT Resolution No. 11065 - A Resolution Authorizing the City Manager to Execute an Agreement with Crafco, Inc. for the Purchase of a Crack Sealing Machine
FROM: Public Works Department
I

07/11/2023 Item No.8.

POLICY / RULE
Section 2.36.120 of the Folsom Municipal Code states, in part, that contacts for supplies, equipment, services, and construction with an estimated value of $70,952 or greater shall be awarded by the City Council.

Section 2.36.170 of the Folsom Municipal Code permits cooperative purchasing agreements for the procurement of any supplies, equipment, service, or construction with one or more public procurement units in accordance with an agreement entered into or between the participants.

ANALYSIS
Sourcewell is a national cooperative purchasing program of which the City of Folsom is a member. The city has purchased items through Sourcewell in the past. Crafco, Inc. has a current contract with Sourcewell for the crack sealing machine at a price that has been assessed to be fair, reasonable, and competitive. Sourcewell contract number 080521-CFC will be utilized for the purchase of the crack sealing machine. The total price for the crack sealing machine is $95,617.84.

FINANCIAL IMPACT
A total of $$740,000 was appropriated within the Fiscal Year 2022-23 Public Works Budget for the purchase of vehicles. In November 2022, Council approved the postponement of the purchase of the two flatbed trucks to a future budget year and reallocated the funds for the purchase of a CY5000 hard surface system cleaner in the amount of $169,021.50 through Resolution No. 10946. The purchase of a patch truck was approved in the amount of $27I,790.22 per Resolution No. 1 1050. These two purchases totaled $440,81 1.72, Ieaving budget remaining in the amount of $299,188.28.

The Fiscal Year 2022-23 Budget also anticipated the purchase of a boom truck. The agreement for the purchase of the boom truck will be presented to Council tonight in a separate staff report for review and approval. If approved, the agreement for the purchase of the boom truck will be in the amount of $224,494.50 and will be funded utilizing the remaining $299,188.28 from the Fiscal Year 2022-23 Budget, leaving a balance of $74,693.78. The Fiscal Year 2023-24 Public Works Operating Budget includes $400,000 approved for the purchase of a Street Sweeper. Also, on the agenda for July 11,2023, is an agreement for the purchase of the Street Sweeper in the amount of $372,125, which will leave 527,875 budget available for the purchase ofvehicles
Staff is requesting to use the $74,693 budget available from the Fiscal Year 2022-23 Budget and the $27 ,87 5 available from the FY 2023-24 Budget (total of $ 1 02,568) for the purchase of a crack sealing machine. The contract would be authorized for a not to exceed amount of $95,617.84. The funds are currently budgeted and available in the Public Works Fund (Fund 023).
2 Page 44
07/11/2023 Item No.8.

EII'VIRONMENTAL REVIEW
This action is exempt from environmental review under the California Environmental Quality Act (CEQA).

ATTACHMENT
Resolution No. 11065 - A Resolution Authorizing the City Manager to Execute an Agreement with Crafco, Inc. for the Purchase of a Crack Sealing Machine Submitted,
Mark Rackovan, Public Works Director
J Page 45
07/11/2023 Item No.8.

RESOLUTION NO. 11065

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH CRAFCO,INC. FOR THE PURCHASE OF A CRACK SEALING

MACHINE
WHEREAS, the Public Works Department has validated its need to purchase a crack sealing machine based on an approved replacement and expansion schedule; and WHEREAS, the Fiscal Year 2022-23 Public Works Fund (Fund 023) Budget included $740,000 for the purchase of vehicles, of which $74,693.78 is still available; and WHEREAS, the Fiscal Year 2023-24 Public Works Fund (Fund 023) Budget included $400,000 for the purchase of vehicles, of which $27,874.60 is still available; and WHEREAS' staff is requesting remaining funds appropriated within the Fiscal Year2022- 23 and Fiscal Year 2023-24 for the purchase of vehicles be reallocated and used to purchase the crack sealing machine; and
WHEREAS, this purchase will be made through Sourcewell, which used its recognized cooperative purchasing agreement to award a contract to Crafco, Inc. in an amount not to exceed $95,617.84; and
WHEREAS, staff recommends the execution of a contract with Crafco, Inc. for the purchase of a crack sealing machine; and
WHEREAS, sufficient funds are budgeted and available for this purchase in the Public Works Fiscal Year2022-23 and2023-24 Budgets; and
WHEREAS, the agreement will be in a form acceptable to the City Afiorney:

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute an agreement with Crafco, Inc. to purchase a crack sealing machine for the Public Works Department at a not to exceed amount of $95,617.84.

PASSED AND ADOPTED this 1lth day of July 2023, by the following roll-call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmember(s):

Councilmember(s):

Councilmember(s):

Councilmember(s):

Resolution No. 11065

Rosario Rodriguez, MAYOR

07/11/2023 Item No.8.

ATTEST
Christa Freemantle, CITY CLERK
Resolution No. 11065
Page2 of2 Page 47
07/11/2023 Item No.8.

This page intentionally left blqnk
to focilitate double- sided printing .

EITY OF
FOLSON{
DI9TINCTIVg BY NATURE

07/11/2023 Item No.8.
&
Folsom City Council
Staff rt

RECOMMENDATION / CITY COUNCIL ACTION
The Public Works Department recommends that the City Council pass and adopt Resolution No. 11066 - A Resolution Authorizingthe City Manager to Execute an Agreement with Altec, Inc. for the Purchase of a Boom Truck.

BACKGROI IND / ISSI]E
The Public Works Departrnent recognizes the need to maintain a fleet of vehicles that is able to provide reliable and responsive service. The Public Works Department TrafFrc Maintenance Division is responsible for the operation and maintenance of the traffic signals and city-owned streetlights. The boom truck is used by Public Works staff to reach electrical fixtures and signs mounted on high poles. The truck is also used to assist the Street Maintenance Division with tree trimming and other tasks that require the use of aerial bucket. The division's existing boom truck is nineteen years old. Certifications for the existing boom truck are becoming increasingly difficult to obtain due to replacement parts no longer being made. Additionally, the existing boom truck is for a single person and the department needs a two-person boom truck.

This resolution will authorize the City Manager to execute an agreement with Altec, Inc. for the purchase of a boom truck. The cost for the purchase of the boom truck will not exceed 5224,494.50. Sufficient funds to purchase the boom truck are budgeted and available in the Fiscal Year 2022-23 Public Works Fund (Fund 023).
1 MEETING DATE: 71rU2023
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 1 1066 - A Resolution Authorizing the City Manager to Execute an Agreement with Altec, Inc. for the Purchase of a Boom Truck
FROM: Public Works Department

07/11/2023 Item No.9.

POLICY / RULE
Section 2.36.120 of the Folsom Municipal Code states, in part, that contracts for supplies, equipment, services, and construction with an estimated value of $70,952 or greater shall be awarded by the City Council.

Section 2.36.170 of the Folsom Municipal Code permits cooperative purchasing agreements for the procurement of any supplies, equipment, service, or construction with one or more public procurement units in accordance with an agreement entered into or between the participants.

ANALYSIS
Sourcewell is a national cooperative purchasing program of which the City of Folsom is a member. The city has purchased items through Sourcewell in the past. Altec, Inc. has a current contract with Sourcewell for the boom truck at a price that has been assessed to be fair, reasonable, and competitive. Sourcewell contract number ll}42l-ALT will be utilized for the purchase of the boom truck. The total price for the boom truck is $224,494.50.

FINANCIAL IMPACT
The purchase of the boom truck was anticipated and included in the approved Fiscal Year 2022-23 Public Works Budget utilizing Measure A Funds'
A total of $740,000 was appropriated within the Fiscal Year 2022-23 Public Works Budget for the purchase of vehicles. To date atotal of $440,81 I.72has been expended for the purchase of vehicles, leaving $299,188.28 available for the purchase of the boom truck.

The contract would be authorized for a not to exceed amount of $224,494.50. Sufficient funds to purchase the boom truck are budgeted and available in the Fiscal Year 2022-23 Public Works Fund (Fund023).

ENVIRONMENTAL REVIEW
This action is exempt from environmental review under the California Environmental Quality Act (CEQA).

ATTACHMENT
Resolution No. 11066 - A Resolution Authorizing the City Manager to Execute an Agreement with Altec, Inc. for the Purchase of a Boom Truck
Submitted,
2 Mark Rackovan, Public Works Director

07/11/2023 Item No.9.

RESOLUTION NO. 11066

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AGREEMENT WITH ALTEC,INC FOR THE PURCHASE OF A BOOM TRUCK WHEREAS, the Public Works Department has validated its need to purchase a boom truck based upon an approved replacement and expansion schedule; and WHEREAS' this purchase will be made through Sourcewell, which used its recognized cooperative purchasing agreement to award a contract to Altec, Inc. in an amount not to exceed $224,494.50; and
WHEREAS, the Fiscal Year 2022-23 Public Works Fund (Fund 023) Budget included $740,000 for the purchase of vehicles, of which 5299,188.28 is still available; and WHEREAS' staff recommends the execution of a contract with Altec, Inc. for the purchase of aboomtruck; 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 Altec, Inc. to purchase a boom truck for the Public Works Department at a not to exceed amount of $224,494.50.

PASSED Ai\D ADOPTED this l lth day of July 2023, by the following roll-call vote AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmember(s):

Councilmember(s):

Councilmember(s):

Councilmember(s):

Rosario Rodriguez, MAYOR
ATTEST:

Christa Freemantle, CITY CLERK
Resolution No. 11066
Page I of I Page 51
07/11/2023 Item No.9.

This page intentiono.Ily Ieft blank
to fo"cilitate double- sided printing .

CITY OF

FOLS()M
OIgTINC?IVE EY NATURE

07/11/2023 Item No.9.

Folsom City Council
Staff Re rt

RECOMMENDATION / COUNCIL ACTION
The Public Works Department recommends that the City Council pass and adopt Resolution No. 11067 - A Resolution Authorizingthe City Manager to Execute an Agreement with TYMCO, Inc. for the Purchase a Street Sweeper.

BACKGROUND / ISSUE
The Public Works Department Street Maintenance Division operates a street sweeping program for the City of Folsom and sweeps approximately 420 curb miles of curbed streets each year.

Street sweeping keeps city streets looking well-kept by collecting and removing paper, leaves, and other debris that collect in gutters. This minimizes the risks of blocked storm water facilities that may result in localized flooding during heavy rains and allows the crty to remain in compliance with its National Pollutant Discharge Elimination System (NPDES) permit.

Additionally, street sweeping reduces dust and is an effective method of removing metal particles and other hazardous waste products left by passing vehicles.

The Street Maintenance Division normally operates with two street sweepers: one as the main sweeper and one as backup. The purchase of a new sweeper will allow for the operation of three street sweepers: two main sweepers and one backup. As the Folsom Plan Area continues to develop and more neighborhoods are completed, an additional street sweeper is needed to ensure that cunent service levels are maintained and that the city remains in compliance with its NPDES permit requirements. During the fall season it is anticipated that all three sweepers will be utilized to pick up leaves to prevent them from blocking the storm water facilities. 1 MEETING DATE: 71tU2023
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 1 1067 - A Resolution Authorizing the City Manager to Execute an Agreement with TYMCO, Inc. for the Purchase of a Street Sweeper
F'ROM: Public Works Department

07/11/2023 Item No.10.

This resolution will authorize the City Manager to execute an agreement with TYMCO, Inc. for the purchase of a street sweeper for the Public Works Street Maintenance Division. The cost for the purchase of the new street sweeper will not exceed $372,125.40. Sufficient funds to purchase the street sweeper are budgeted and available in the Fiscal Year 2023-24 Prfrlic Works Fund (Fund023).

POLICY / RIII,E
Section 2j6.120 of the Folsom Municipal Code states, in part, that contracts for supplies, equipment, services, and construction with an estimated value of $70,952 or greater shall be awarded by the City Council.

Section 2.36.170 of the Folsom Municipal Code permits cooperative purchasing agreements for the procurement of any supplies, equipment, service, or construction with one or more public procurement units in accordance with an agreement entered into or between the participants.

ANALYSIS
HGACBuy is a national cooperative purchasing program of which the City of Folsom is a member. The city has purchased items through HGACBuy in the past. TYMCO, Inc. has a current contract with HGACBuy for street sweepers at a price that has been assessed to be fair, reasonable and competitive. HGACBuy contract number SW04-20 will be utilized for the purchase of the street sweeper. The total price for the street sweeper, including tax and delivery, is$372,125.40.

FINAN IMPACT
The purchase of a street sweeper was anticipated and included in the approved Fiscal Year 2023-24 Public Works Operating Budget. The contract would be authorized for a not to exceed amount of $372,125.40. Sufficient funds to purchase the street sweeper are currently available for this purchase. The funds to be utilized per the Fiscal Year2023-24Budget are Measure A and Gas Tax Funds.

ENVIRONMENTAL REVIEW
This action is exempt from environmental review under the Califomia Environmental Quality Act (CEQA).

ATTACHMENT
Resolution No. 11067 - A Resolution Authorizing the City Manager to Execute an Agreement with TYMCO, Inc. for the Purchase of a Street Sweeper
2 Page 54
07/11/2023 Item No.10.

Submitted,
Mark Rackovan, PUBLIC WORKS DIRECTOR
J Page 55
07/11/2023 Item No.10.

RESOLUTION NO. 11067

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH TYMCO,INC. FOR THE PURCHASE OF A STREET SWEEPER WHEREAS, the Public Works Department has validated its need to purchase a street sweeper based on an approved replacement and expansion schedule; and WHEREAS, this purchase will be made through HGACBuy, which used its recognized cooperative purchasing agreement to award a contract to TYMCO, Inc. in an amount not to exceed 5372,125.40; and
WHEREAS, sufficient funds arc available in the Fiscal Year 2023-24Prtblic Works Fund (Fund 023) Operating Budget for this purchase and will utilize Measure A and Gas Tax Funds; and
WHEREAS, staff recommends the execution of a contract with TYMCO, Inc. for the purchase of a street sweeper; 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 TYMCO, Inc. to purchase a street sweeper for the Public Works Department atanotto exceed amount of $372,125.40.

PASSED AND ADOPTED this 1lth day of July 2023, by the following roll-call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmember(s):

Councilmember(s):

Councilmember(s):

Councilmember(s):

Rosario Rodriguez, MAYOR
ATTEST:

Christa Freemantle, CITY CLERK
Resolution No. 11067

07/11/2023 Item No.10.

Folsom City Council
Staff rt

RECOMMENDATION / CITY COUNCIL ACTION
The Environmental and Water Resources Department recommends the City Council pass and adopt Resolution No. 1 1068 - A Resolution Authorizing the City Manager to Execute a Special Facilities and As-Available Distribution Service Agreement with Sacramento Municipal Utility District and Appropriation of Funds.

BACKGRO / ISSUE
The CiW of Folsom's Water Treatment Plant (WTP) utilizes surface water from Folsom Lake for water supply. The WTP is designed to produce 50 million gallon per day (mgd) of potable water. The treatment processes include rapid mix, pretreatment with a conventional flocculation and sedimentation basin, and an Actiflo system for high rate clarification, a conventional sand/anthracite dual media filter, and solids handling facilities. The Environmental and Water Resources Department (EWR) identifies infrastructure rehabilitation and replacement projects through water and sewer master plans, ongoing condition assessment programs, and regulatory changes. The analysis also includes projects related to the reliability or redundancy of the water treatment process.

The City is an electrical customer of the Sacramento Municipal Utilities District (SMUD) receiving service at the WTP. The City owns and maintains its own substation at the WTP and takes electric service from SMUD at 69 kV to accommodate an estimated electrical load capacity of two megawatts. Each year, the City performs routine maintenance and inspection of the 69 kV service at the WTP. To improve redundancy of electrical service at the WTP, the I
MEETING DATE: T ltr12023
AGENDA SECTION: Consent Calendar
SUBJECT Resolution No. I1068- A Resolution Authorizing the City Manager to Execute a Special Facilities and As-Available Distribution Service Agreement with Sacramento Municipal Utility District and Appropriation of Funds
F'ROM: Environmental and Water Resources Department

07/11/2023 Item No.11.

EWRtreatment plant staff would like to upgrade an existing 12 kV electric service to be used as a back-up source to the 69 kV service.

This resolution will authorize the City Manager to execute a Special Facilities and As- Available Distribution Service Agreement with Sacramento Municipal Utility District for backup 12 kV electric service from SMUD.

POLICY / RULE
In accordance with Chapter 2.36 of theFolsomMunicipal Code. supplies, equipment, services, and construction with a value of $70,952 or greater shall be awarded by City Council.

In accordance with Sacramento Municipal Utility District's Rule and Regulation 2, Section IV, a Special Facility is a facility or value-added services equipment requested by a customer that are in addition to or in substitution for standard facilities that SMUD would normally provide for the delivery of service at one point, through one meter, at one voltage class under its rate schedules, rules, and regulations.

ANALYSIS
Priorto the 1990's, the City was provided electrical service by SMUD utilizing al2kY service.

As the treatment plant expanded, a new 69 kV service was required. During the transition from a 12 kY service to a 69 kV service, the City requested that the existing 12 kV service remain in place as a backup, but at that time, the City and SMUD did not execute a Special Facilities Agreement for the pu{pose of keeping the 12 kV service as a back-up.

Under the proposed Special Facilities and As-Available Distribution Service Agreement, the l2k[ service will be owned and operated by SMUD and will be used by the City as a backup only. During the annual maintenance and inspection of the 69 kV service, City staff has to physically disconnect the 69 kV electrical service from the treatment plant operations. Typical maintenance activities include oil samples, testing connections and cables, cleaning and load testing. These maintenance services are completed by certified electricians hired by the City.

For each of the treatment processes at the WTP there are backup generators in place in case of emergency outages. Each of these generators provide for a certain number of hours the generator can operate each year and how many hours a generator can operate for the purposes of maintenance and inspection. The current generator permit allows for up to 20 hours per year to operate for maintenance purposes and for up to 200 hours for all operations, including maintenance and emergencies. Typical maintenance operations per year are 13 hours and this results in 187 hours available for emergency purposes, which is slightly less than eight days.

An emergency event is defined as interrupted service caused by an unforeseen event.

Some of the main components of the existing 69 kV service are not parts that are readily available off the shelf if that component needs to be replaced. In some cases, a component can take anywhere from several weeks to several months to acquire. Given that the operating 2 Page 58
07/11/2023 Item No.11.
permit for the generator provides for less than eight days of emergency service, EWR staff recommends upgradingthe 12 kV service to provide redundant and reliable electrical service from the SMUD distribution system. As part of the agreement, SMUD will upgrade the existing 12 kV facilities with new underground and overhead cables, new electrical components, and two new wood poles. The component costs, labor hours, and design time will cost $90,909 for the capital improvements.

In addition to the capital improvements, there are three options for the monthly cost of service charges for Special Facilities. These options include a monthly lease, a l0-year renewable lease, or a one-time payment. Staff is recommending the one-time payment option as this is the least expensive option for the life of the facility at $213,090.70, comparedto 5273,236.40 for the monthly lease or $104,636.26 for the l0-year renewal, which would have to be renewed after year 10 with costs that will likely exceed the $104,636.26 in2023 dollars for a second lO-year renewal. With the one-time payment option, the City would not have to pay any additional monthly service charges in the future, whereas options I and 2 require on-going monthly service charges for as long as the facility is in place. Under either option, the City will still have to pay the monthly usage rates when the facility is used.

F'INANCIAL IMPACT
The Environmental and Water Resources Department is requesting an appropriation of $304,000 to be appropriated in the Fiscal Year 2023-24 Water Operating Fund (Fund 520) budget. This wilt fund the costs of lhe 12 kV upgrade of $90,909 and the one-time payment for the cost of service of $213,090.70. Funds are available in the Water Operating Fund for this appropriation.

AL REVIEW
This project is replacement andlor improvement of existing infrastructure with negligible or no expansion of use and therefore is categorically exempt from environmental review under the California Environmental Quality Act as noted in Title 14 - California Code of Regulations, Chapter 3 - Guidelines for Implementation of the California Environmental Quality Act, Article 19 - Categorical Exemptions, Sections 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), and/or 15304 (Minor Alterations to Land).

ATTACHMENTS

1. Resolution No. 11068 - A Resolution Authorizingthe City Manager to Execute a Special Facilities and As-Available Distribution Service Agreement with Sacramento Municipal Utility District and Appropriation of Funds

2. Sacramento Municipal Utility District Special Facilities and As-Available Distribution Service Agreement

3. Sacramento Municipal Utility District Service Conditions Rules and Regulation 2 aJ

07/11/2023 Item No.11.

Submitted,
Pl'+"w''- 4'e
Marcus Yasutl*e, Director

ENVIRONMENTAL AND WATER RESOURCES DEPARTMENT
4 Page 60
07/11/2023 Item No.11.

ATTACHMENT 1

07/11/2023 Item No.11.

RESOLUTION NO. 11068

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A SPECIAL FACILITIES AND AS.AVAILABLE DISTRIBUTION SERVICE AGREEMENT WITH

SACRAMENTO MUNICIPAL UTILITY DISTRICT AND APPROPRIATION OF F'UNDS
WHEREAS, the City of Folsom implements projects to improve the reliability and redundancy of water treatment operations; and
WHEREAS, the existing backup diesel generators at the treatment plant are only permitted for about eight days of emergency service; and WHEREAS, some components of the main69 kV electric service can take several weeks up to several months to acqulre and will exceed the permitted operations of the standby generators; and
WHEREAS, the Environmental and Water Resources Department recommends upgrading a l2kY electric service to serve as a backup to the 69 kV electric service; and WHEREAS' the Sacramento Municipal Utility District requires a Special Facilities and As-Available Distribution Service Agreement for a facility or value-added services equipment requested by a customer that are in addition to or in substitution for standard facilities that SMUD would normally provide for the delivery of service at one point, through one meter, at one voltage class under its rate schedules, rules, and regulations; and WHEREAS, sufficient budget was not included in the FY 2023-24 Water Operating Budget to cover the costs for this agreement as the costs and details were not known during budget development; and
WHEREAS, an appropriation in the amount of $304,000 is needed and funds are available in the Water Operating Fund (Fund 520) for this appropriation; and WHEREAS, the agreement will be in a form acceptable to the City Attomey; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to Execute a Special Facilities and As-Available Distribution Service Agreement with Sacramento Municipal Utility District in the amount of $304,000; and BE IT FURTHER RESOLVED that the Finance Director is authorized to appropriate an additional $304,000 in the Water Operating Fund (Fund 520) for this agreement.

PASSED AND ADOPTED this 1lft day of July 2023, by the following roll-call vote:

AYES:

NOES:

Resolution No. I1068
Page I of2
Councilmember(s):

Councilmember(s):

07/11/2023 Item No.11.

ABSENT:

ABSTAIN:

Councilmember(s):

Councilmember(s):

Rosarib Rodriguez, MAYOR
ATTEST:

Christa Freemantle, CITY CLERK
ResolutionNo. 11068
Page2 of2 Page 63
07/11/2023 Item No.11.

ATTACHMENT 2

07/11/2023 Item No.11.

Powering forward. Together.
@sMUD
SACRAMENTO MUNICIPAL UTILIry DISTRICT
SPECIAL FACILITIES AND AS.AVAILABLE DISTRIBUTION SERVICE AGREEMENT This Special Facilities and As-Available Distribution Service Agreement ("Agreement") is entered into between the Sacramento Municipal Utilitv District ('SMUD') and the Citv of Folsom ter Treatment Plant ("Folsom Plant"). SMUD and Folsom Plant, each, a "Party," together, the "Parties," agree as follows

RECITALS
A. Folsom Plant is a SMUD customer receiving electric service at its water treatment facility located at 194 Randall Drive, Folsom, CA 95630.

B. Folsom Plant maintains its own substation and takes electric service from SMUD at 69kV to accommodate an estimated load of approximately 2MW.

C. SMUD originally installed 12kV service at the Location for Folsom Plant and later in the 1990s constructed 69kV service in the area to serve the Location; at that time, Folsom Plant requested SMUD maintain the 12kV service as backup; however, the Parties never executed a Special Facilities agreement for the backup source.

D. The 69kV substation is owned and maintained by Folsom Plant, and Folsom Plant wishes to continue to retain the existing SMUD-owned 12kV source for use during annual maintenance to its 69kV substation.

E. The back-up 12kV source is provided on an as-available basis and is a partial backup only with a load limitation of 2 MW.

F. The Parties desire to enter into this Agreement to address the costs and use Special Facilities.

Now therefore, in consideration of the above-mentioned recitals, the covenants herein, the Parties mutually agree as follows.

TERMS AND CONDITIONS

1. TERM. This Agreement shall be effective as of the date of last execution by the Parties and shall continue untilterminated by either Party on at least thirty (30) days written notice.

2. SCOPE. SMUD shall allocate for Folsom Plant's use certain facilities, more particularly described in Attachment A ("Special Facilities") at an estimated total additional 1_

07/11/2023 Item No.11.
cost of $90,909.00 over the cost of standard facilities which SMUD would typically provide or allocate for standard service in accordance with SMUD's Rates, Rules and Regulations as adopted by SMUD's Board of Directors.

SMUD's 12kV service shall be considered Special Facilities and will be owned and maintained by SMUD as an accommodation to Folsom Plant. SMUD's 12kV distribution system can provide limited service of up to 2MW for back-up maintenance purposes under this Agreement.

SMUD shall install a SMUD lock and labeling at open switch position 1 inside of customer owned and maintained cubicle. This will ensure no parallel operation between SMUD and Folsom Plant.

The 12kV service is provided on an As-Available Distribution Service pursuant to the terms of this Agreement.

3. LOCATION. The Special Facilities shall be installed or allocated at northwest corner of the property located at 194 Randall Drive, Folsom, CA 95630 State of California ("Location").

4. PAYMENT OF ESTIMA N ADDITIONAI EOST
Reserved

5. COST OF SERVICE CHARGE. Folsom Plant shall pay to SMUD, in addition to the monthly rates and charges for electric service, the following charges under Rule 2, Option 3:
(a) Special Facilities - Option 3. One-time payment. Up front charge of $213,090.70 which represents the estimated additional Rule 2 cost set forth in Section 2 of this Agreement.

6. ADJUSTMENT OF CHARGES. The annual service cost used to determine the monthly Cost of Service Charge or the Equivalent One-Time Payment shall automatically increase or decrease without formal amendment to this Agreement if SMUD's Board of Director's should subsequently amend SMUD's Rates, Rules and Regulations to provide for higher or lower percentage rates for monthly costs of service for special facilities, effective the date set forth in the amended Rates, Rules and Regulations. Thereafter, such revised annual service cost shall be used to determine the unamortized balance of the Equivalent One-Time Payment, as provided in Section 10 of this Agreement.

7. ACCESS TO LOCATION. ln the event it is necessary to install or modify Special Facilities on real property owned by Folsom Plant, Folsom Plant hereby grants to SMUD:
(a) The right to install or modify, on Folsom Plant property, the Special Facilities and related equipment or materials along the shortest practical route and of sufficient width 2

07/11/2023 Item No.11.
to provide legal and safe clearance from all structures now or hereafter erected on Folsom Plant for any facilities of SMUD, all as determined in the sole discretion of SMUD; and, (b) The right of ingress to and egress from Folsom Plant property as reasonably necessary to operate, maintain, and remove the Special Facilities.

Where formal rights of way and/or easements are required on or over Folsom Plant property or the property of some third party for the installation of the Special Facilities, Folsom Plant agrees that SMUD's obligation to install the Special Facilities is expressly conditioned on the granting, without cost to SMUD, of any and all necessary rights of way and/or easements to SMUD.

8. MODIFICATION OF PECIAL FACILITIES. ln the event it becomes necessary for SMUD, in its sole discretion, to modify or rearrange the Special Facilities, including but not limited to the conversion of overhead facilities to underground, SMUD shall notify Folsom Plant, in writing, of such necessity and shall be given the option to either terminate this Agreement in accordance with Section 10 of this Agreement, or to pay to SMUD additional special facilities charges consisting of:
(a) A special facilities termination charge for that portion of the Special Facilities, if any, which is being removed because of modification or rearrangement. Such charge shall be determined in accordance with Section 10 of this Agreement; plus, (b) An additional Customer Advance, if any, for any new special facilities which shall be determined in the same manner as described in Section 4 of this Agreement, if applicable; plus,
(c) A revised monthly Cost of Service Charge or Equivalent One-Time Payment based on the total net estimated additional installed costs of new and remaining Special Facilities. Such revised monthly Cost of Service Charge or Equivalent One-Time Payment shall be determined in the same manner described in Sections 5 and 6 of this Agreement.

9. OWNERSHIP OF SPECIAL FACILITIES. Special Facilities provided by SMUD under this Agreement shall at all times be and remain the sole property of SMUD.

10. TERMINATION. Upon discontinuance of the use of the Special Facilities due to termination of service, termination of this Agreement, or otherwise:
(a) Folsom Plant shall pay to SMUD on demand, in addition to all past and current rates and charges, a facility termination charge to be determined using the following formula:

Facility Termination Charge = (The Estimated TotalAdditional Cost + The Estimated Removal Cost) - (The Estimated Salvage Value For The Special Facilities To Be Removed (as determined by SMUD in accordance with SMUD's standard accounting practices))
3

07/11/2023 Item No.11.

The Facility Termination Charge shall be reduced by the sum of the previously paid Customer Advance and the unamortized balance of the previously paid Equivalent One- Time Payment, if any. ln the event the sum of the paid Customer Advance and the unamortized balance of the paid Equivalent One-Time Payment is greater than the Facility Termination Charge, SMUD will refund the difference to Folsom Plant, without interest. (b) Within a reasonable time, SMUD shall have the right to remove any portion of the Special Facilities located on Folsom Plant Property. (c) SMUD may, at its sole option, modify, retain, rearrange or make any use it deems appropriate of the Special Facilities located on property other than that of Folsom Plant. Where all or any portion of the Special Facilities located on property other than that of Folsom Plant are retained on such other property and used by SMUD to provide permanent service to other customers, an equitable adjustment will by made to the Facility Termination Charge.

11. AS-AVAILABLE DISTRIBUTION SERVICE. SMUD makes available an electric service, intended to provide an alternative, back-up means of providing electric service to Folsom Plant during times in which Folsom Plant performs maintenance on its 69kV substation ('As-Available Distribution Service"). (a) Subject to the conditions set forth herein and upon request by Folsom Plant, SMUD agrees to make available electric service delivered through SMUD's distribution system and the Special Facilities. Service made available shall be based upon SMUD's surplus distribution system capacity, if any. As-Available Distribution Service is conditional upon availability. SMUD will make the sole determination as to amount of surplus system distribution capacity available. Folsom Plant agrees and understands that SMUD is not reserving distribution system capacity for purposes of this Agreement.
(b) Folsom Plant shall notify SMUD as soon as it becomes aware of its interest in receiving As-Available Distribution Service. Folsom Plant shall request As-Available Distribution Service pursuant to the protocols outlined in Attachment B. Folsom Plant acknowledges that during storm conditions or other conditions affecting the integrity of SMUD's electric system, a Folsom Plant request shall be subordinate to the performance of work reasonably necessary to operate, maintain, repair, or restore all or part of SMUD's electric system, all as determined at SMUD's sole discretion.
(c) Upon request from Folsom Plant, SMUD shall determine whether any surplus system capacity exists and is available for use in providing As- Available Distribution Services to Folsom Plant. lf SMUD determines that surplus distribution system capacity exists and is available, SMUD shall 4

07/11/2023 Item No.11.
implement As-Available Distribution Service as soon as reasonably possible and consistent with the protocols set forth in Attachment B. lf available distribution capacity is not sufficient to meet Folsom Plant's entire electric load, Folsom Plant shall take all steps necessary to curtail or limit its electric load so as not to exceed the available distribution system capacity prior to SMUD initiating As-Available Distribution Service.

SMUD may refuse to initiate or discontinue As-Available Distribution Service, without prior notice, if SMUD reasonably determines that Folsom Plant failed to sufficiently curtail or limit its electric load. (d) As-Available Distribution Service is subordinate to SMUD's standard distribution service and, as such, is subject to curtailment, interruption, or termination. While SMUD will use reasonable efforts to provide Folsom Plant with prior notification of its intent to curtail, interrupt, or terminate As- Available Distribution Service, SMUD reserves the right, at its sole discretion, to curtail, interrupt, or terminate such service without notice to protect the reliability or integrity of SMUD's system.
(e) During times of As-Available Distribution Service via the back-up 12kV source, Folsom Plant shall not exceed 2MW of load. lf Folsom Plant exceeds 2MW during the periods of back-up service, SMUD may, at its sole discretion, install load-limiting equipment at Folsom Plant's sole cost. (f) As-Available Distribution Service provided to Folsom Plant shall be subject to all of SMUD's Rates, Rules, and Regulations. SMUD's applicable rate schedule for Folsom Plant, as amended from time to time by SMUD's Board of Directors, shall be used in determining charges for the As- Available Distribution Service. However, SMUD will bill its Site lnfrastructure Charge only during months in which electricity is consumed.

12. WARMNry. SMUD makes no warranties or guaranties, express or implied, as to the design, installation, construction, use, operation, compatibility, power quality, reliability, maintenance or fitness for a particular purpose of the Special Facilities or As-Available Distribution Service. Further, SMUD makes no warranties or guaranties as to the provision or reliability of electric service or that such service shall be free from outages or curtailment. The parties expressly agree that Folsom Plant's charges and payments for the Special Facilities under thisAgreement representthe additional cost associated with the Special Facilities and are not to be construed as guarantying any level of service or reliability.

13. FORCE MAJEURE. SMUD shall not be considered in default of performance of any of its obligations underthis Agreementto the extentthe performance of any such obligations is prevenled or delayed by any cause, existing or future, which is beyond the reasonable control of SMUD.
5

07/11/2023 Item No.11.

14. ASSIGNMENT. With SMUD's prior written consent which shall not be unreasonably withheld, Folsom Plant may assign this Agreement if the to perform Folsom Plant's obligations hereunder. Such
include all of Folsom Plant's rights to any refunds
assignee thereof agrees in writing
assignment shall be deemed to
which might become due upon
discontinuance of the use of any Special Facilities or termination of this Agreement.

15. ENTIRE REEMENT This Agreement constitutes the entire understanding between the parties as to the subject matter hereof and may not be modified except by mutual written agreement of the parties; provided, however, this Agreement shallat alltimes be subject to the SMUD's Rates, Rules and
Directors and amended from time to time.

Regulations as adopted by SMUD's Board of

CITY OF FOLSOM WATER TREATMENT
PLANT
(Folsom)
Date
Mailing Address

SACRAMENTO MUNICIPAL UTILITY

DISTRICT
(sMUD)
By
Date
Mailing Address
6

07/11/2023 Item No.11.

Attachment A
Special Facilities
SMUD shall make available at Folsom Plant's expense and allocate for Folsom Plant use, the following Special Facilities:

Item #1: Overhead 12kV:

Approximately 230' of 3-1l0 AAAC
3 S&C Trip Saver ll Devices
1 Primary feeder riser
2 45'Wood poles
Labor hours (fully loaded) = 259
Design hours (fully loaded) = 32
Item#2: Underground 12kV
Approximately 200' of 3-210 AL
Labor hours (fully loaded) = 13
Design hours (fully loaded) = 20
Total $90,909.00
These Special Facilities already exist and are in place at the Location. Per Rule and Regulation 2,the calculation of the specialfacilities charge is based on the replacement cost new, of the customer specific equipment.

The SMUD distribution system is only prepared to serve up to 2 MW using these Special Facilities. SMUD shall install a lock and labeling at the open switch position to prevent parallel operation. Folsom Plant shall coordinate with SMUD to switch service to back-up power.

Note:
1 2
7

07/11/2023 Item No.11.

Attachment B
Protocol for "As-Available Back-Up Seryice" to "FOLSOM PLANT"

8.1 Guidelines
The following guidelines can be modified by SMUD's Distribution System Operators at any time to ensure safety and/or integrity of the SMUD Distribution System. ln the event SMUD modifies these guidelines, SMUD will provide advance notice to FOLSOM PLANT and update this Attachment B.

SMUD personnel are only to operate SMUD equipment and FOLSOM PLANT staff are only to operate FOLSOM PLANT equipmenf. However, SMUD and FOLSOM WATER PLANT staff will work in conjunction with each other to ensure the following steps are followed.

The guidelines are for:

1. Planned "back-up" seryice for Folsom Plant during annual maintenance 1,1. For planned switching at FOLSOM PLANT, contact SMUD Strategic Account Advisor with a minimum of 48 hours advance notice.

1.2. SMUD will then determine capacity to serve back-up service and notify FOLSOM PLANT. lt is the responsibility of FOLSOM PLANT to curtail load as to not exceed the capacity prior to and during the planned back-up switching. FOLSOM PLANT will be limited to 2MW during planned maintenance. SMUD reserves the right to deny the request or discontinue the planned back-up switching without notice. After capacity and load issues are agreed upon, SMUD line workers will be dispatched to FOLSOM PLANT to perform switching.

1.3 FOLSOM PLANT staff to contact SMUD Strategic Account Advisor to switch back to primary service as soon as annual maintenance is complete. SMUD Line workers will be dispatch to Folsom Plant to perform switching back to standard 69kV operation.

The process of switching will involve de-energizing the 69 kV load prior to switching to lhe 12 kV service. The same process will be followed when returning to the 69 kV service.

B.2 Effective Date
_Day/Month/Year-
Upon issuance of a new Attachment B by SMUD, SMUD will insert a new effective date which will replace the prior Attachment B upon such date. 8

07/11/2023 Item No.11.

ATTACHMENT 3

07/11/2023 Item No.11.

Service Conditions
Rule and Regulation 2
Descriptioh of Service
Subject to conditions listed below, single-phase or three-phase service will be supplied as required by the customer in accordance with appropriate rates.
l. Voltage supplied will be designated by SMIID.

2. Single-phase service will not be supplied to customers whose panel capacity exceeds 100 kVA.

3. Three-phase service will not be supplied to motor loads of less than 7-ll2kW, except where tluee-phase secondary facilities are available at applicant's service location, orwhere applicant for three-phase service contributes the net estimated installed cost of such facilities (exclusive of meter and service) or such part ofthe net estimated installed costs as SMUD may consider equitable.

Alternating current service of approximately 60hertz frequency will be supplied at the following standard voltages:

Secondary Voltages Primarv Voltages Subtransmission
Sinsle-Phase Three-Phase Three-Phase Three-Phase
120 208Y1120 12,0004 69,0004
1201240 240N120 20,8004
208Y1120 480Y 20,800Y/12,000
480Y1277
4 I 60/2400Y
SMUD will endeavor to maintain its frequency and its service voltage within reasonable limits, but does not guarantee same. ll- Gonditions of Service
A. Interference with Quality of Service
If in SMLJD's judgment there is an interference with the quality of service supplied to neighboring customers, resulting from the customer's noncompliance with any of the provisions of this rule, SMUD may require lhe customer to provide at his or her orvn expense zuch special or additional equipment as is required, or SMUD may provide such equipment if customer pays the net estimated installed cost of such equipment. In lieu of payment of such estimated net cost, the customer may, at SMUD's option, execute a conhact providing for the rental of such equipment under terms and conditions satisfactory to SMUD . If customer refuses to rent, or to provide his or her own corrective equipment, or to reimburse SMUD for the cost of such additional or special equipment as is required to eliminate interference with the quality of service to neighboring customers resulting from the customer's operations, SMLjD may refuse or discontinue the customer's service.

B. Phase Balancing
Where three-wire single-phase, or three-wire three-phase, or four-wire combination single-phase and tlree-phase service is supplied, the load must be balanced as nearly as practicable between the two sides or several phases, respectively. In no case is the ioad on one side of a three-wire single-phase service to be greater than twice that on the other, or the load on any one phase of a tl-ree-phase star service greater than twice that on the other phase.

C. Clear Working Space at Electrical Equipment
l. For the safe operation and maintenance of high voltage electrical equipment, an 8-foot clear area must be maintained in front ofall operable sections ofthe equipment.

2. Corrective Action: Customer or owner shall, at the customer's or owner's expense, either correct the access or clearance infractions or pay SMUD its total estimated costto correct the access or clearance or to relocate its facilities to a new location that is acceptable to SMUD. Customer or omer shall also be responsible for the expense b relocate any equipment that the customer or otvner owns and maintains. Failure to comply with conective measures within a reasonable time may result in discontinuance of service.

SACRAMENTO MUNIGIPAL UTILITY DISTRICT
Resolution No. 13-08-01 adopted August 15,2013
Sheet No. 02-{
Effective: January 1, 2014
Edition: January 1,2021

07/11/2023 Item No.11.

Service Gonditions
Rule and Regulation 2
Special Gonditions
A. Voltage Control Within Special Limits
Where customer desires voltage control within unusually close limits, SMUD may require customer to provide at his or her own expense zuch special or additional equipment as required, or SMUD may provide such equipment if customer pays the net estimated installed cost of such equipment.

B. Welders
SMLTD will provide service, at the applicable rate and without additional compensation, to welding equipment of the limited input type that conforms to the standards of the National Electrical Manufacturers Association (NEMA) and has a maximum input (primary) current rating not exceeding 12 amperes at 120 volts or 50 amperes at 208 or 240 volts.

Welding equipment that does notmeet the standards of NEMA, or that exceeds in input rating 12 amperes at 120 volts or 50 ampereJ at108 or 240 volts, will also be served at the applicable rate without additional charge, provided that service to such welders has no detrimental effect on service to neighboring customers.

C. Motor Generator Sets and Rectifiers
Motor generator sets and rectifiers shall be considered as power apparatus and shall be rated, for the purpose ofdetermining charges, on the manufacturer's input rating of the setor, at SMUD's option, by actual test.

D. Motor Protective Devices
All motor installations shall have protective apparatus or conshuction within the motor to accomplish equivalent protection as follows:
l. Motors that cannot be safely subjected to full-rated voltage at startup shall be provided with a device to ensure that on failure of voltage, such motors will be disconnected from the line'

2. Suitable overload and over-cunent running protection shall be provided for each motor so as to disconnect the motor fiom the line to protect it from damage caused by overheating.

3. Phase reversal and open-phase protection is recommended on all three-phase installations and is required for such installations involving elevators, hoists, and similar equipment to disconnect motors from the line in the event of phase reversal or opening ofone phase.

E. Motor Starting Limitations

1. Single-Phase
a. Automatically controlled, single-phase motorized equipment (except as provided in paragraphs b. and c. below) shall be equipped with motors having locked-rotor currents not in excess ofthe following:
r 50 amperes at 120 volts
. 80 amperes at 208 volts
. 100 amperes at 240 volts
b. Manually conholled, single-phase motorized equipment (except as provided in paragraph c. below) shall be equipped with motors having locked-rotor currents not in excess of the following:
. 100 amperes at 120 volts
e 160 amperes at208 volts
. 200 amperes at 240 volts
Room air conditioners, because oftheir long operating cycles and infrequent starts, even though automatically controlled, will be governed by the limitations of this paragraph. c. Motors having locked-rotor currents in excess of those allowed by paragraphs a. and b. above may be permitted upon SMUD's written approval.

SACRAMENTO MUNICIPAL UTILITY DISTRICT
Resolution No. 13-08-01 adopted August 15,2013
Sheet No. 02-2
Effective: January 1, 2014
Edition: January 1, 2021

07/11/2023 Item No.11.

Service Gonditions
Rule and Regulation 2

2. Three-Phase
a. Automatically controlled three-phase motors shall comply with all applicable NEMA electrical standards and shall have maximum locked-rotor cuilents not in excess of the following:
. 777 amperes at 208 volts
: 673 amperes at 240 volts
. 337 amperes at 480 volts
Maximum permissible current values listed apply to ar installation of a single moior. (These values permit, in general, a 50-hp NEMA standard motor.)
b. Manually conholled three-phase motors shall comply with all applicable NEMA electrical standards and shall have maximum locked-rotor currents not in excess of the following:
r 1554 amperes at 208 volts*
. 1346 amperes at 240 volts*
c 673 amperes at 480 volts
. 135 amperes at 2400 volts
*Operation ofmotors rated 60 hp or larger is not recommended at these voltages' Maximum permissible current values listed apply to an installation of a single motor. (These values permit, in general, a 100-hp NEMA standard motor.)
c. Three-phase motors, to be used where large loads or special conditions exist, may, upon approval of SMUD, have locked-rotor currents in excess ofthose allowed by paragraphs a' and b. above. d. Motors having maximum locked-rotor currents exceeding those stated in paagraphs a. and b. above may be operated if used in conjunction with currentJimiting devices designed to limit the starting cunents to the above specified maximum values.
e. CunentJimiting devices may be omitted on the smaller motors of a group installation when their omission will not result in a starting curent in excess of the allowable starting current of the largest motor of the group. f. The customer should make certain that his or her own electrical system is capable of handling the locked-rotor currents permitted without excessive voltage drop.

F. Power Factor Correction
In the case ofneon, luminous, gaseous or mercury vapor lamps or tubes, electric welders, and other devices having low power factors, the customer may be required to provide, at his or her own expense, power factor corrective equipment to increase the power factor of any such devices to not less than 90 percent.

G. Special Voltage Requirements
l. Single-phase, two-wire, 120-volt service will not be supplied where more than two l5-ampere branch circuits are connected to such service.

2. Individual three-phase motors less than 50 hp (or less than 30 hp when used for agricultural or drainage purposes) or groups ofsuch motors less than 150 hp will generally be supplied at 208 or 240 volts.

H. Harmful Wave Form
Customer shall not operate equipment that superimposes a current of any frequency or wave form upon SMUD's system or draws cunent from SMUD's system of a harmful wave form, which causes interference with SMUD's operations, the quality of service to other customers, or interference to communication facilities. Harmful wave forms shall be defined as those that exceed IEEE Standard 519-1992 (IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems).

I. Transfer Switch Equipment
In the case where the customer receives power from multiple sowces, SMUD shall inspect all transfer equipment before SMUD service is allowed. The customer shall design, install, operate, and maintain the transfer switch equipment according to SMUD's Protection Practices No. DPP-601 or No. DPP-602. Transfer switch equipment shall be accessible at all times to SMUD personnel.

SACRAMENTO MUNICIPAL UTILITY DISTRICT
Resolution No. 13-08-01 adopted August 15,2013
Sheet No. 02-3
Effective: January 1, 2014
Edition: January 1,2021

07/11/2023 Item No.11.

IV

SACRAMENTO MUNICIPAL UTILITY DISTRICT
Resolution No. 13-08-01 adopted August 15,2013
Service Gonditions
Rule and Regulation 2
Special Facilities
A. SMUD normally installs only those standard facilities that it deems are necessary to provide regula service in accordance with the applicable rate schedules, rules and regulations. Where a customer requests SMUD to install special facilities and SMUD agrees to make such an installation, the additional costs thereof shall be bome by the customer, including such continuing service costs as may be applicable.

B. Special facilities are (a) facilities or value-added services equipment requested by a customer that are in addition to or in substitution for standard facilities that SMUD would normally provide for delivery of service at one point, through one meter, at one voltage class under its rate schedules, rules and regulations; or (b) a pro rata portion ofthe facilities or value- added services requested by a customer, allocated for the sole use ofsuch customer, which would not normally be allocated for such sole use. Unless otherwise provided by SMUD's applicable rates, rules and regulations, special facilities will be installed, owned, and maintained or allocated by SMUD as an accommodation to the customer only if acceptable for operation by SMIID and the reliability of service to SMUD's other customers is not impaired.

C. Special facilities will be installed under the terms and conditions of a contract. Such contract will include, but is not limited to, the following terms and conditions:
l. The customer shall pay a monthly cost-of-service charge for the special facilities based on the installed cost ofthe special facilities. Where existing facilities are allocated for a customer's use as special facilities, the customer shall pay a monthly cost-of-service charge. This monthly cost-of-service charge shall be assessed on the estimated installed cost ofthat portion of the existing facilities that is allocated to the customer' Special Facilities Rdes
Applied to nonstandard portion ofelectrical equipment, facilities, redundant service, customer-requested redundancy, vaults, or service upgrades.

Select One: ! Option one I OptionTwo ! Option Three
Monthly lease with advance 10-year renewable lease One-time payment Average Life
Minimum
Advance per
$1,000
Monthly Cost
per $1,000
Cost at beginning ofeach
1Oft year per $1,000
Cost per $1,000
10-14 $200 $24. l5 $2,148 84,375
l5-19 $ 150 $17.25 $1,534 $3,125
20+ $100 $12.94 $l,l5l $2,344
Transmission 20+ $100 $11.64 $1,036 $2,109

2. All monthly service charges shall be reviewed when changes occur in SMUD's cost of providing such service.

3. The calculation ofthe annual special facilities charge will be based on the replacement cost new ofthe customer specilic equipment. This includes direct labor, deparhnental loadings, benefit loadings, and related design work. The r-placement cost new is multiplied by the annual economic carrying charge corresponding to the appropriate expected service life. This resulting value is divided by 12 to create monthly payments. This rate may be changed in response to changes in the cost of capital or fluctuations in the replacement cost new of any piece of equipment.

4. Customers selecting option one "Monthly lease with advance," will be required to pay a nonrefundable advance of no less than 10 percent of the installed cost of the new equipment as determined by SMUD. Depending on the financial viability and credit-worthiness of the firm SMUD may require up to a 75 percent advance payment. This advance in no way affects the full-cost calculation of fees and shall not reduce the monthly cost-of-service charge.

5. Commercial and residential developers will remain subject to all conditions covered in Rules 15 and 16.

6. Previously installed services that exceed standard installation will be reviewed by SMTID and the customer. The customer will elect the desired service requirements when services exceed standards. Consideration will be given for any previous customer contributions in reaching an agreeable monthly service rate for special facilities. (End)
Sheet No. 02-4
Effective: January 1, 2014
Edition: January 1,2021

07/11/2023 Item No.11.

This psge intenti"onally Ieft blsnk
to facilitqte double- sided printtng .

CITY OF
FOLS()N{
OISTINCTIVE bY NATURE

07/11/2023 Item No.11.
i-]'r1 l! l',..i ];
Folsom City Council
Staff ort
MEETING DATE: 71rU2023
AGENDA SECTION: Consent Calendar
SUBJECT ResolutionNo. 11070 - A Resolution Authorizing the City Manager to Execute a Consultant and Professional Services Agreement with Unico Engineering for Construction Inspection and Materials Testing for the Blue Ravine Road Pavement Rehabilitation Project and Appropriation of Funds
FROM Public Works Department

RECOMMENDATION / CITY COUNCIL ACTION
The Public Works Department recommends that the City Council pass and adopt Resolution No. 11070 - A Resolution Authorizing the City Manager to Execute a Consultant and Professional Services Agreement with Unico Engineering for Construction Inspection and Materials Testing for the Blue Ravine Road Pavement Rehabilitation Project and Appropriation of Funds.

BACKGROUND / ISSUE
The Public Works Department maintains the Pavement Management Program, which is an on-going assessment of pavement conditions on public roadways that is used to determine which facilities are in most urgent need of pavement repair. Blue Ravine Road was identified as a high priority for pavement resurfacing due to the deteriorating pavement condition, the volume of traffic impacted, and the estimated cost to repair.

The Public Works Department does not have staff with sufficient training and availability to provide construction management for this project. Therefore, a consultant with experience and training must be retained to oversee the project and ensure that it is completed efficiently.
1

07/11/2023 Item No.12.

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 $70,952 or greater shall be awarded by City Council.

ANAI ,YSIS
On March 12, 2023, Public Works staff prepared and publicly advertised a Request for Quatifications (RFQ) from interested firms to provide On-Call Construction Management, Inspection, and Materials Testing Services. On April 14,2023, a total of nine Statement of Qualifications (SOQ) were received. A review panel consisting of three Public Works engineers separately evaluated and scored the received SOQs. The summary of the review scores is as follows:

X'irm Name
o Unico Engineering
o Psomas
o Ghirardelli
o Salaber
o Coastland
. Knight
o PreScience
o Construction Testing Services
o PIL&M
Public Works has chosen the three top-ranked ftrms, Unico, Psomas, and Ghirardelli, to be shortlisted to provide these services for a period of up to 5-years.

On June lg,2023,Public Works staff requested project specific proposals from the three short listed firms to provide Construction Inspection and Materials Testing for the Blue Ravine Road Pavement Rehabilitation Project that is scheduled to begin in August 2023. After reviewing the submitted proposals, staff has selected Unico Engineering to provide these services for this project.

Staff will use the City's standard agreement in a form acceptable to the City Attorney.

FINANCIAL IMPACT
Unico Engineering has provided a scope and fee to provide the Construction Inspection and Materials Testing in the amount of $109,350.

Staff is requesting that a Consultant Services agreement in the amount of $109,350 be authorized for the Blue Ravine Road Pavement Rehabilitation Project, Project No. 008017.

Total Score
81 81
80 73
7l
70 68
56 48
2 Page 80
07/11/2023 Item No.12.

In order to approve the agreement an additional appropriation in the amount of $109,350 will be required to be added to the Measure A Fund (Fund 276). The current project budget is $2,690,016 and with this additional appropriation the total project budget would increase to $2,799,366.

ENVIRONMENTAL REVIEW
This project has been deemed Categorically Exempt from California Environmental Quality Act (CEQA) environmental review based on Class 1: Existing Facilities.

ATTACHMENT
Resolution No. 11070 - A Resolution Authorizingthe City Manager to Execute a Consultant and Professional Services Agreement with Unico Engineering for Construction Inspection and Materials Testing for the Blue Ravine Road Pavement Rehabilitation Project and Appropriation of Funds.

Submitted,
Mark Rackovan, PUBLIC WORKS DIRECTOR
J Page 81
07/11/2023 Item No.12.

RESOLUTION NO. 11070

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A

CONSULTANT AND PROFESSIONAL SERVICES AGREEMENT WITH UNICO

ENGINEERING F'OR CONSTRUCTION INSPECTION AND MATERIALS TESTING

FOR THE BLUE RAVINE ROAD PAVEMENT REHABILITATION PROJECT

AND APPROPRIATION OF FUNDS
WHEREAS, the Blue Ravine Road Pavement Rehabilitation Project is scheduled to begin in August and will require fulItime construction inspection staff and materials testing; and WHEREAS, project specific proposals were received from the three shortlisted ftrms, Unico Engineering, PSOMAS, and Ghirardelli; and
WHEREAS, staff selected Unico Engineering to provide these services based on proposed project staff, project understanding, and experience with similar types of projects, for a not to exceed amount of $109,350: and
WHEREAS, funds in the amount of $109,350 are available in the Measure A Fund (Fund 276) to be appropriated to the Street Overlay/Pavement Management Project No. 008017; and WHEREAS, the agreement will be in a form acceptable to the City Attomey:

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute a Consultant and Professional Services Agreement with Unico Engineering for Construction Inspection and Materials Testing for the Blue Ravine Road Pavement Rehabilitation Project in the amount of $109,350.

BE IT FURTHER RESOLVED that the Chief Financial Officer is authorized to appropriate $ 1 09,3 5 0 in the Measure A Fund (Fund 27 6) for this agreement. The total proj ect budget will increase to $2,799,366.
pASSED AND ADOPTED this 1lth day of July 2023, by the following roll-call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmember(s):

Councilmember(s):

Councilmember(s):

Councilmember(s):

Rosario Rodriguez, MAYOR
ATTEST:

Christa Freemantle, CITY CLERK
Resolution No. I1070
Page I of I Page 82
07/11/2023 Item No.12.

Folsom City Council
Staff Re ort

RECOMMENDATION / CITY COUNCIL ACTION
It is recommended that the City Council adopt Resolution No. I 1072 - A Resolution Electing the Population and Inflation Factors and Establishing the FY 2023-24 Appropriations Limit.

BACKGROUND / ISSUE
The Gann Spending Limitation Initiative (Article XIII B of the State Constitution) adopted as Proposition 4 in June 1979 (and subsequently modified by Proposition 111 in June 1990), requires the City to annually adopt a resolution setting an appropriations limit for the upcoming fiscal year. The Gann Spending Limitation was intended to provide citizen control of government spending and taxation.

The City Manager's Fiscal Year 2023-24 Operating Budget and Capital Improvement Plan (CP) was adopted by the City Council on May 23,2023.

POLICY / RULE
Section 'oeach year the governing body of each local
jurisdiction shall, by resolution, establish its appropriations limit and make other necessary determinations for the following fiscal year pursuant to Article XIII B of the California Constitution at a regularly scheduled meeting or noticed special meeting...." California Constitution, Article XIIIB, Sec. l. "The total annual appropriations subject to limitation of the State and of each local government shall not exceed the appropriations limit 1 MEETING DATE: 7nU2023
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. I 1072 - A Resolution Electing the Population and Inflation Factors and Establishing the Fiscal Year 2023-24 Appropriations Limit
FROM: Finance Department

07/11/2023 Item No.13.
of the entity of government for the prior year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article.

Folsom Municipal Code. Section 3.02.030. Budget
"An Annual Budget shall be prepared by the City Manager, with the assistance of the Finance Director. . . . (G) The City Council shall adopt the annual budget by Resolution by fund and program by affirmative vote of at least three members, on or before the last working day of the last month of the current fiscal year. If the City Council fails to adopt the budget by the last working day of the current fiscal year, the budget as presented by the City Manager shall be deemed adopted."

ANALYSIS
Information from the California Department of Finance regarding population and per capita personal income has now been received and the calculation for the Gann Spending Limitation is attached. The establishment of the 2023-24 Appropriations Limit ("Gann Limif') is necessary to comply with Article XIIIB of the State Constitution. The Gann Limit limits the amount of revenue classified as proceeds of taxes that can be appropriated in any fiscal year by a government entity. Certain exclusions are allowed including transfers, capital outlay and payments for debt service. The maximum allowable appropriation of revenues subject to limitations for Fiscal Year 2023-24 is $131,376,952 and the FY 2023-24 Budget with the exclusions, referenced above, is within this limit. This maximum amount increases or decreases each year depending on the percentage change in the per capita personal income (4.44%) and the percentage change in population (2.I0%). The California Department of Finance has estimated the total population for the City of Folsom as of January 1,2023 as 85,498, and after deducting prison population the estimated population is 81,278. The formula for calculating the limits was based on the Fiscal Year 1978-79 oobase year" revenues. For Fiscal Year 2023-24 the budgeted revenues subject to limitation total $85,457,331 which is $45,919,621 less than the maximum allowed.

ATTACHMENTS

1. Resolution No. 11072 - A Resolution Electing the Population and Inflation Factors and Establishing the FY 2023-24 Appropriations Limit

2. Gann Appropriations Limit for FY 2023-24
Submitted,
2 Stacey Tamagni, Finance Director/CFO

07/11/2023 Item No.13.

ATTACHMENT 1

07/11/2023 Item No.13.

RE,SOLUTION NO. 11072

A RESOLUTION ELECTING THE POPULATION AND INFLATION FACTORS AND ESTABLISHING THE FISCAL YEAR 2023.24 APPROPRIATIONS LIMIT WIIEREAS, Section 3.02.030 of the Folsom Municipal Code states "An Annual Budget shall be prepared by the City Manager, with the assistance of the Finance Director . . ."; and WHEREAS' the City Council is required by Government code 7910to establish its appropriations limit by resolution and approve the appropriate inflation and population factors used in the calculation of the limit; and
WHEREAS, on the 23rd day of May 2023,the City Council approved the City Manager's Fiscal Year 2023-24 Operating Budget and Capital Improvement Plan; and WHEREAS, the Budget sets forth the "Proposition 4 Appropriations Limitation Schedule", computed using the City population growth factor of 2.10% and the California Per Capita personal income change factor of 4.44% as determined by the State of California, Department of Finance, for the Fiscal Year 2023-24 for the City of Folsom; and
WIIEREAS, the documentation used in the determination of the appropriations limit has been available to the public in the City Clerk's Office for fifteen days prior to the meeting; and WIIEREAS, the City of Folsom's appropriations limit for the Fiscal Year 2023-24 shall be $131,376,952.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom that the Gann Appropriations Limit is approved.

PASSED AI\D ADOPTED this 1lth day of July 2023,by the following roll-call vote:

AYES:

NOES:

ABSTAIN
ABSENT:

Councilmember(s):

Councilmember(s):

Councilmember(s):

Councilmember(s):

Rosario Rodriguez, MAYOR
ATTEST:

Christa Freemantle, CITY CLERK
Resolution No. 11072

07/11/2023 Item No.13.

ATTACHMENT 2

07/11/2023 Item No.13.

RESOURGES

PROCEEDS OF TA)GS
Property Taxes
Sales Taxes
SpecialTaxes
State Sublentions
Franchise Taxes
Business Licenses

TOTAL PROCEEDS OF TAXES
lnterest lncome
TOTAL SUBJECT TO LIMITA]]ONS
NON-PROCEEDS OF T$GS

APPROPRIATIONS
SUBJECT TO LIMITATIONS:
$ 40,094,946
29,257,969
4,462,500
9,866,746
817,000
761,825
$ 85,260,986
196,345
$ 85,260,986
196,345
$ 85,457,331 $ 85,457,331
NOT SUBJECT TO LIMITATIONS:
$ 23,102,802
15,196,930
12,342,707
57,879,757
21,988,471
19,177,854

TOTAL NON-PROCEEDS OF ALL
TA)GS 149,688,521 149,688,521
TOTAL ALL RESOURCES $ 235,145,852 $ 235,145,852
Maximum allowable appropriation subject to limitations 2023-2024 fiscal year Less: Total appropriation subject to limitation for 2023-2024 fiscal year BALANCE UNDER ARNCLE XIIB LIMIT:

General Fund not financed
with proceeds of taxes
Special Rerenue Funds
Capital Project Funds
Enterprise Funds
lnternal Service Funds
Trust Funds
Miscellaneous General Funds
$131,376,952
(85,457,331)
45,919,621$

07/11/2023 Item No.13.

Folsom City Council
Staff rt

RECOMMENDATION / CITY COUNCIL ACTION
The Finance Department recommends that the City Council pass and adopt Resolution No. 11073 - A Resolution Authorizing the City Manager to Execute an Agreement with Economic & Planning Systems, Inc. for Professional Consultant Services to Update the Developmental Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area.

BACKGROUND / ISSUE
The City of Folsom (CitV) is seeking the services of a Consultant to prepare an update of the comprehensive study of Developmental Impact fees (Impact Fees) and completion of aNexus Study in accordance with the Califomia Mitigation Fee Act (Act) for the development south of Highway 50 in the Folsom Plan Area (FPA). The most recent study was completed in August 2015. The City currently assesses impact fees on new residential and commercial development to mitigate the fiscal impact on police, fire, and general facilities; park facilities and equipment; transportation and roads; and other capital facilities. 1 MEETING DATE: 71tl12023
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 1 1073 - A Resolution Authorizing the City Manager to Execute an Agreement with Economic & Planning Systems, Inc. for Professional Consultant Services to Update the Developmental Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area
FROM: Finance Department

07/11/2023 Item No.14.

The fees to be reviewed andlor updated are:

Stand Alone Impact Fees
Solid Waste Capital Fee
Corporation Yard Fee
Transit Fee
Highway 50 Interchange Fee
Highway 50 Improvement Fee
Comnonents of Combined Plan
Area Fee
General Capital Facilities Fee
Library Fee
Municipal Service Center Fee
Police Facility Fee
Fire Facilities Fee
Park Development Fee
Trails Fee

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 $70,952 or greater shall be awarded by the City Council.

ANALYSIS
Finance Department staff prepared the Request for Proposal (RFP) and solicitated proposals by directly emailing seven selected firms, as well as via the City's website. The RFP was issued on June 5,2023. A single proposal was received on June 16, 2023 from Economic & Planning Systems,Inc. (EPS) for $82,115.

Staff reviewed the submittal by EPS and found their proposal to be responsive to the RFP. The Finance Department has determined the proposal and submittal to be in order and recommends that the contract be awarded to EPS. EPS was selected based upon their extensive municipal consulting experience, detailed knowledge of the Folsom Plan Area, their approach to developing impact fees, and ability to meet the City's timeline.

EPS is located in Sacramento, CA, and has provided consulting services to the City as well as a variety of Califomia cities, counties, and public agencies. The firm's references include the City of Sacramento, City of Fresno, and City of Woodland for Public Facilities Fee Program Studies and Development Impact Fee Program Updates. In addition, EPS already possesses much of the Folsom Plan Area's land use and demographic information from its work on FPA Specific Plan Infrastructure Fee administration on behalf of the City.

FINANCIAL IMPACT
The Nexus and Impact Fee Study contract with Economic and Planning Systems, Inc. would be authorized for a not to exceed amount of $82,115. Sufficient funds are budgeted and 2 Page 90
07/11/2023 Item No.14.
available in the Folsom Plan Area Impact Fee Fund (Fund 472) in Fiscal Year 2023-24 for this agreement

ENVIRONMENTAL REVIEW
Not Applicable.

ATTACHMENTS

1. Resolution No. I 1073 - A Resolution Authorizing the City Manager to Execute an Agreement with Economic & Planning Systems, Inc. for Professional Consultant Services to Update the Developmental Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area

2. Economic & Planning Systems, Inc.'s Proposal to Prepare an Update of the Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area Submitted,
Stacey Tamagni, Finance Director
J Page 91
07/11/2023 Item No.14.

ATTACHMENT 1

07/11/2023 Item No.14.

RESOLUTION NO. IIO73

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH ECONOMIC & PLANNING SYSTEMS,INC. F'OR

PROF'ESSIONAL CONSULTANT SERVICES TO UPDATE THE DEVELOPMENTAL

NEXUS AND IMPACT F'EE STUDY T'OR PUBLIC FACILITIES IN THE F'OLSOM

PLAN AREA
WHEREAS, the City Council of the City of Folsom annexed the area of land south of Highway 50 known as the Folsom Plan Area (FPA) as of January 2012, and WHEREAS, an update of the Developmental Nexus and Impact Fee Study for Public Facilities is necessary to further the facilitation of development in the area, and WHEREAS, Finance Department staff prepared the Request for Proposal, solicited proposals, and received a single proposal on June 16,2023, from Economic & Planning Systems, Inc., and
WHEREAS, Finance Department recommends Economic & Planning Systems, Inc., by reason of their extensive municipal consulting experience, detailed knowledge of the Folsom Plan Area, approach to developing impact fees, and ability to meet the City's timeline; and WHEREAS' sufficient funds are budgeted and available in the Folsom Plan Area Impact Fee Fund (Fund 472) in Fiscal Year 2023-24, inthe amount of $82,1 15; 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 Economic & Planning Systems,Inc. for Professional Consultant Services to Update the Developmental Nexus and Impact fee Study for Public Facilities in the Folsom Plan Area for an amount not to exceed $82,115.

PASSED AND ADOPTED this 1lth day of July,2023, by the following roll-call vote AYES:

NOES:

ABSENT:

ABSTAIN:

Councilmember(s):

Councilmember(s):

Councilmember(s):

Councilmember(s):

ATTEST:

Christa Freemantle, CITY CLERK
Resolution No. 11073
Page I ofl
Rosario Rodriguez, MAYOR

07/11/2023 Item No.14.

ATTACHMENT 2

07/11/2023 Item No.14.

The Econuni.cs oJ'Lattrl llse
Economic & Planning Systems,Inc.
455 Capitol Mall, Suite 701
Sacramento, CA 95814
916 649 B01A kl
916 649 2070 fax
Oakland
Sacramento
Denver
Los Angeles
www.epsYs.com
Proposal
Nexus and Impact Fee Study for
Pu blic Facilities in the
Folsom Plan Area
Prepared for:

City of Folsom
Prepared by:

Economic & Planning Systems, Inc. (EPS)
June L6,2O23
EPS #232085

07/11/2023 Item No.14.

1. 2.

3. 4.

5. 6.

7. Table of Contents
Scope of Work
Qualifications.

References.....

Disclosures and Conflicts of Interest .....

Insurance
Cost Proposal.....

Work Plan and Schedule
Appendices
Appendix A: Detailed Resumes for Key Staff
Appendix B: Work Sample: City of Sacramento Department of Utilities Development Impact Fee Program and Nexus Studies
3 ...23
13 22
25 26
28

07/11/2023 Item No.14.
'I'h.e Ecorrcrni.cs o.f LontL lise
Economic & Planning Systems,Inc.
455 Capitol Mall, Suite 701
Sacramento, CA 95814
916 649 8010 tel
916 649 2070 fax
Oakland
Sacramento
Denver
Los Angeles
June 16, 2023
Adam Devlin
Senior Financial Analyst
City of Folsom
adevlin @folsom.ca. us
Subject: Folsom Plan Area Developmental Impact Fee
Proposal; EPS #232085
Adam
Economic & Planning Systems, Inc. (EPS) would appreciate the opportunity to prepare an updated Folsom Plan Area
Developmental Impact Fee Study for the City of Folsom (City).

As articulated in the enclosed proposal, EPS is very excited and extremely well-qualified to assist the City in updating the City's fees. EPS is a nationally recognized, full-service land economics consulting firm, experienced in public finance, real estate economics, regional economics, and land use policy.

Having completed hundreds of development impact fee nexus studies for jurisdictions throughout California, EPS excels in providing policy analysis supporting nexus deliverables, as well as working with engaged stakeholder communities, to clearly communicate the basis and results of our analysis. EPS is actively involved in multiple impact fee program formations or updates and is keenly aware of new state legislation (Assembly Bill [AB] 602) related thereto.

Managing Principal Jamie Gomes will serve as Principal-in- Charge of this project, providing guidance and input toward project delivery, with ultimate responsibility for the work product. Jamie can be reached by telephone at (916) 649-8010 and by e-mail at iqomes@epssac,com. Associate
Emilio Balingit will serve as Project Manager and will conduct the day-to-day management of this project. Emilio can be reached by telephone at (916) 649-8010 and by e-mail at [email protected]. Additional EPS staff may assist in identifying, collecting, and analyzing data.

As is demonstrated in this proposal, EPS is keenly interested and perfectly suited to work with the City on this project. I am also confident you will find EPS's proposed work program exceptionally aligned with the City's needs.
www,ePsys.com Page 97
07/11/2023 Item No.14.

Adam Devlin
June 16, 2023
I look forward to the City's consideration of this proposal and invite you to call me if you have questions regarding EPS's interest and proposed approach to the City's fee program updates.

Sincerely,
EcoNoMrc & PLANNING SYSteus, INc. (EPS)
r4Jamie Gomes
Managing Principal
2Economic & Planning Systems, Inc. (EPS) Page 98
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
1, Scope of Work
Project Understanding and Approach
EPS's understanding of the Project is based on a review of the City's Request for Proposals (RFP), the Folsom Plan Area (FPA) Specific Plan Fee and Stand-Alone Fees Nexus Study, prepared by Goodwin Consulting Group and dated August 19, 2015 (2015 Nexus Study), and the City's Municipal Code Section 3.120, which implements and codifies the FPA Fee Programs. Based on EPS's review of these documents, EPS understands that the City is seeking a comprehensive update to the FPA Specific Plan Fee and Stand-Alone Fees.

Based on EPS's current role as the fee administrator for the FPA Specific Plan Infrastructure Fee (SPIF) Program, as well as EPS's extensive work authoring public facility financing plans and nexus studies across the Sacramento Region and throughout California, EPS is aware that automatic inflationary adjustments using the Engineering News-Record's Construction Cost Index and Building Costs may not have kept pace with actual construction costs for infrastructure and public facilities in the region. In addition, based on the language in the RFP, EPS understands that the City has updated facilities master plans for several types of public facilities since the 2015 Nexus Study was adopted. As such, the following scope of work is based on the assumption that the number and type of improvements included in the fee program may need to be refreshed as compared with those included in the 2015 Nexus Study.

In addition, the 2015 Nexus Study included provisions regarding the combination or "pooling" of certain fees based on City needs and policy direction at the time.

As part of this nexus study update, EPS will work with the City to evaluate current conditions, seeking input on whether new policy direction needs to be integrated into the updated fees. Further, new provisions of the California Mitigation Fee Act (implemented via AB 602) will need to be considered as part of the fee update.

This proposal describes EPS's experience with these new legal provisions and proposed approach to address AB 602 in updating the fees.

The key to the success of this project will be early alignment between the City and EPS on the driving goals of the project-whether it be updating costs of public facilities improvements to better reflect the current construction cost environment, incorporating changes to the amount or type of facilities included in the FPA Fee Program, or a blend of both. With clear alignment on the goals of the project, EPS can assist the City with prioritizing City and EPS tasks such that the overall work program is completed in the most time- and budget-efficient way possible.
3Economic & Planning Systems, Inc. (EPS) Page 99
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area lune 16, 2023
Overall, the EPS Team proposes an approach to this project that couples technical rigor with insightful policy analysis and targeted and timely outreach to the stakeholder com mu n ity.

The EPS Team's approach to fee program analysis is based on understanding the local context and the technical and legal issues inherent in an impact fee study.

This approach relies on a collaborative, iterative, and informed decision-making process. The EPS Team combines sound technical analysis, grounded in legally defensible nexus arguments, with ongoing policy direction from the various stakeholders, including public agency staff and elected officials, the local public, and the development community. These and other measures described in this section are key to completing the project successfully and on budget, within the specified time frame.

While a participatory process can help to achieve politically and economically acceptable fees, it is also important to maintain clear objectives to guide the study process. The ultimate project objective includes establishing a revised set of development impact fees that strike a mutually enforcing balance between infrastructure and public facilities and new development and investment in the City.

The EPS Team considers the following objectives to be the most important for an impact fee study:

The fees must be legally defensible. The fees should be developed and implemented in a fashion that unambiguously complies with applicable State law. The fees should be based on explicit growth and cost assumptions and sound nexus arguments that ensure the types of improvements and facilities and the costs of the improvements and facilities are directly attributable to benefiting land uses.

The fees must be financially effective. The fees developed should provide sufficient means for successfully funding the new improvements and required capital facilities targeted by the program. Given that fee revenues are likely to represent only one, albeit important, funding source for public facilities, the development impact fee program must be effectively integrated with other programs and resources to assure stakeholders (and developers who pay the fees) that the facilities will ultimately be built.

The fees must be politically and economically viable. The fees developed in this process should reflect input from key stakeholders in the community to ensure they receive broad support. Although the technical steps provide the basis for completing the impact fee study, it is recognized that ultimate approval will require compromise and policy choices. To this end, it will be important for both the EPS Team and the City to work closely with key policy makers and other stakeholders throughout the process. In addition, it will be important to understand and monitor the economic implications of the fee a
a
4Economic & Planning Systems, Inc. (EPS) Page 100
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
program to ensure financial burdens on development are reasonable and do not hinder growth. The inclusion of local interest groups throughout the process can engender support for, or reduce opposition to, the fees, making it easier to ensure approval from City policy makers and, ultimately, successful implementation by the development community.

Scope of Work
EPS has created a preliminary scope of work that includes the service tasks outlined in the RFP. As part of Task 1, EPS will confirm this scope of work with City staff and develop a detailed project schedule. EPS used this scope of work to determine a project fee amount as part of this proposal.

Task 1: Project Initiation and Project Management
EPS will work with City staft to confirm the overall project purpose and goals, clarify team roles, and refine each of the project scope tasks to ensure that the study will be both accurate and appropriate to the City's needs, EPS will discuss the specific fee categories with the City and confirm what methodological approach for cost allocation may be most appropriate (e'9., service population, resident population, service calls) depending on how development and population growth impact demand for each type of facility.

EPS will also prepare a detailed project schedule with specific deliverable dates that incorporates time for City review of draft work products and answer any questions pertaining to the successful development of the updated Nexus Study.

As part of this task, EPS will review the current FPA Public Facility Impact Fees, the 2015 Nexus Study to determine the methodology by which facility costs were estimated and how these costs were allocated across the Plan Area's land uses.

This review will help to focus and prioritize EPS'and the City's work to those portions of the fee program that will require the most time and effort to update.

Additionally, EPS will review the City's existing facilities Master Plans, including the Citywide Capital Improvement Plan and master plans specific to the Folsom Plan Area, to further EPS's understanding of the range of facilities and improvements to be included in the updated fee program' As part of this Task 1, EPS will meet with City staff from the Planning and Finance Departments to describe the fee update process and information required. Topics to be discussed at this meeting include:
r Review of overall work program and fee update process. o Overview of Mitigation Fee Act, AB 602, and other relevant statutes and their implications.
5Economic & Planning Systems, Inc. (EPS) Page 101
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
. Capital Facilities Lists and Costs by Fee Type: Status of City Capital Improvement Programs (CIPs), Facility Master Plans, etc. r Consultant information needs from City Staff.
o Meetings with City departments to develop/review capital improvements. r Development pipeline and forecasts.
. Public Meetings and Stakeholders.
. Schedule and Next Steps.
r CommunicationProtocol.

Task 2: Data Collection and Development
Subtask 2,7: Update Land Use Projections and Demographic Assumptions Land use information, including projections of future growth, will be important for allocating public facility needs of new development on a pro-rata basis relative to demand generated by existing uses. EPS will work with City Planning and other staff to align these land use projections with the fee program land use categories for each respective impact fee program.

EPS has a distinct advantaoe over other consultants because EPS already possesses much of the Plan Area's land use and demoqraohic information from its work on FPA Soecific Plan Infrastructure Fee administration on behalf of the Citv.

This information includes both tabular data on the total development capacity of the Plan Area by land use type, total development by land use to date, and projected absorption of residential uses by unit type through 2025. In addition, EPS will review relevant current and long-range planning documents and data from the City, including the following documents:

Previous development impact fee studies.

General Plan.

Adopted budget.

Development impact fee schedules.

Specific Plans, Master Plans, and CIP information
Municipal Code Sections (as necessary).

Finally, EPS will draw on available Census data and other sources to update key demographic assumptions for purposes of the fee program calculations, including persons per household, employment densities, and other key assumptions that may be needed.
a
a
a
a
6Economic & Planning Systems, Inc. (EPS) Page 102
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
Subtask 2,2; llpdate Public Facility Cost Estimates
As described further in the Project Understanding section above, EPS assumes that inflationary adjustments have not been sufficient in keeping facilities'costs close to actual construction or purchase costs for the facilities and equipment included in the fee program, or the City desires to change the improvements included in the updated Fee Program. Based on this assumption and the Ianguage in the RFP, EPS will work with appropriate City departmental staff to update cost estimates for public facilities included in the updated Fee Program.

For all development impact fees, EPS will work with City staff to obtain the list of public facility and infrastructure requirements and associated costs that will constitute the development impact fee improvement program for each of these fee categories (it is assumed that the City will provide these lists and the associated costs). Individual improvement items will include those that are proposed to be funded, all or in paft, by the different development impact fees.

Building from Task 1, EPS will further review relevant City capital facility planning documents, including the City's CIP and existing facility master plans. EPS will rely on City staff to coordinate all interviews with relevant department members to gain a comprehensive understanding of the current and future public facility needs.

EPS will review the City's capital facilities needs and identify which facilities can be included in the development impact fee improvement program from a Mitigation Fee Act/nexus standpoint. Special attention will be paid to ensure that cost estimates include all appropriate and allowable cost items (e.9., land acquisition, construction costs, vehicles, and certain types of equipment). If the fee update is required to comply with new mitigation fee act provisions, enacted by AB 602, the nexus study update also will need to include a CIP. EPS will work with City staff to ensure the CIP is compliant with legal requirements.

In the event that cost estimates for some improvements require additional research and expertise to prepare, the following optional task would be included in the Work Program. If all cost estimates are able to be developed by working directly with departmental staff or by applying appropriate cost adjustment factors, then the optional subtask will not be necessary.

OPTIONAL Subtask 2,3: Prepare Further Detailed Cost Estimates EPS understands that, given staffing and potential time constraints, the City may need EPS to complete some or all of the cost estimates for various projects not included in the master plans. In those circumstances, EPS will be prepared to assist the City in developing cost estimates for those facilities. Depending on the nature of the cost estimates required, EPS will either prepare the cost estimates itself or engage a specialist cost estimator.
7Economic & Planning Systems, Inc. (EPS) Page 103
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
If EPS prepares cost estimates, they will be based on a review of comparable facilities constructed in other jurisdictions. For example, EPS may need to research the average construction prices for park improvements or fire and police stations.

Note that a budget has not been estimated for this optional subtask since it is unknown if this subtask will be required or the extent to which further work on cost estimates will be needed.

Task 3: Fee Calculation and Analysis
EPS will prepare the nexus-based cost allocation necessary to develop a preliminary maximum development impact fee schedule for review by City staff for the following development impact fees:
r Solid Waste Capital
. Corporation Yard
o Transit
e Highway 50 Interchange
. Highway 50 Improvement
r Traffic
General Capital Facilities
Library
Municipal Service Center
Police Facility
Fire Stations
Park Development
Trails Development
a
a
a
a
Subtask 3,7: Determine Fee Program Approach and Methodology Several common approaches to calculating impact fees attributable to new development exist, including the following methodologies:

Existing Facility Level of Service: This approach determines costs attributable to future development based on current facility inventory, demographic data, and the resulting existing service-level standard. Facility needs attributable to new development are then computed by applying current service-level standards and unit costs to future development projections.

Facilities Master Plan Approach: Under this approach, the local agency identifies total facility needs through development of a facilities or infrastructure master plan and associated capital improvement program.

Impact fee calculations then must determine the appropriate proportion of planned future facilities attributable to demands generated by new development.

The approach used to determine fee program costs may vary based on the specific infrastructure category or public facility under consideration, and in certain cases, a hybrid approach combining the two methodologies may be appropriate. EPS will begin with the assumption that the current fee allocation a
Economic & Planning Systems, Inc. (EPS) Page 104
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
methodologies are both: (1) efficiently collecting revenue to fund the public facilities identified in the 2015 Nexus Study and (2) were compliant with State law on proper nexus and impact attribution at the time they were adopted' However, since the 2015 Nexus Study and the FPA Fees were adopted, the State passed AB 602), which requires that all development impact fees adopted after July 1, 2O22 be levied proportionately per square foot for residential development. Alternatively, if all of three specific findings can be made for each fee component, the City may comply with AB 602 by describing how those findings have been made and thus fees for residential development may not all be proportionate to building square footage. EPS is working on several active impact fee studies affected by AB 602 and will bring that experience to bear in this assignment.

EPS will discuss these options with City staff, including the City Attorney/Counsel, to determine the preferred approach(es) for the different fee categories. Because this is a new State requirement, there are multiple ways being explored and implemented to address these new requirements'
Subtask 3,2: Prepare Cost Allocation Model
Based on the selected fee program approach(es) and using the land use assumptions and infrastructure needs compiled under the prior task, as well as the City's Master Plans and associated cost allocation identification, EPS will prepare a cost allocation model that appropriately assigns fee program costs to new development by land use category, net of any obligation of existing development.

The cost allocation models will first allocate the development impact fee program costs between new and existing development. EPS will ensure that facility needs and costs associated with existing deficiencies in service levels are identified as such and are excluded from the nexus analysis. For each fee component, EPS will then allocate the development impact fee improvement program costs to the land use categories, using industry standard methods to determine the benefit derived by each land use. Infrastructure and public facilities allocation will be based on the relative contribution of each land use type to the demand for the related improvement cost category. For example, storm drainage facilities are typically allocated based on the impervious surface area generated by each land use category.

Subtask 3,3: Prepare Maximum Allowable Fee Calculation
Based on the above-described cost allocation model, EPS will establish the maximum allowable fee levels for each facility and land use category. EPS will also indicate the level of fee revenues expected from these maximum fees and, where applicable, the level of revenues required from other sources to complement the Fee Program revenues. EPS will provide a table set indicating the 9Economic & Planning Systems, Inc. (EPS) Page 105
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
maximum fees by improvement type and land use for the City to review. The fees will include an administrative component to cover the cost of Fee Program implementation and administration.

EPS will discuss the maximum impact fee estimates with City staff and consider the outcomes in light of various issues, including: (1) the relative scale of the fee increase under the maximum fees; (2) particular areas of policy concern over fee levels; (3) potential technical adjustments that would alter the maximum fee levels; (4) the prioritization of capital improvements and the potential to reduce the project list; (5) the opportunities to fund capital improvements through other mechanisms; (6) the scale of funding required from other sources; and (7) comparisons to fee levels and cost allocation methods in other comparable communities.

Based on these discussions, EPS may prepare revised fee schedules reflecting the adjusted, recommended impact fee levels. It is important to note that if the City ultimately implements fees at a level lower than the maximum justified fee levels, the City will need to identify alternative sources of funds to backfill resulting Fee Program revenue shortfalls. EPS will advise the City regarding approaches to assuring that incentive programs and policy adjustments maintain nexus validity and meet AB 1600 reporting requirements.

Subtask 3,4: Fee Comparison
When considering fee updates and whether to adopt the maximum justifiable fees or a lower level, some cities are interested in understanding the fee levels charged for the same capital facility types in peer or neighboring jurisdictions. In tandem with Subtask 3.3, EPS will conduct a fee comparison. Under this task, EPS would work with the City to identify up to five (5) jurisdictions of interest and then research and compile the relevant fee comparison information.

Task 4: Prepare Development Impact Fee Program Nexus Study EPS will prepare a comprehensive report that will provide the key background information, the technical analysis, the recommended fee levels, the required nexus findings under the Mitigation Fee Act, and the implementation and administration framework. To the extent necessary, EPS will consult with City staff should it become necessary to defend the development impact fees because of legal or other challenges,
Subtask 4,7; Prepare Administrative Draft Report
EPS will prepare an Administrative Draft Development Impact Fee Program Nexus Study documenting the Fee Program update process, approach, methodology, and policy alternatives for City consideration. The report will include individual technical sections documenting the method, assumptions, and calculation of the Economic & Planning Systems, Inc. (EPS) 10Page 106
07/11/2023 Item No.14.
a
a
Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
maximum allowable fee levels, as well as the requisite nexus findings. The report will also describe the Fee Program implementation.

All assumptions, analysis procedures, findings, graphics, and recommendations will be supported by rigorous technical analysis and will be documented in a clear, accessible, and transparent manner throughout the report and technical appendices. The report will discuss the applicable statutory and legal framework and reference supporting policy documents, including the General Plan and the infrastructure master pla ns.

The nexus methodology will satisfy AB 1600 requirements, offering the following findings for each fee component:

Identify the purpose of the fee.

Identify the use of the fee. If the use is financing public facilities, the facilities must be identified.

Demonstrate a reasonable relationship between the fee's use and the type of development project on which the fee is imposed.

Demonstrate a reasonable relationship between the need for a public facility and the type of development project on which the fee is being imposed.

Demonstrate a reasonable relationship between the amount of the fee and the cost of the public facilities attributable to development on which the fee is imposed.

If, as part of this update, the City decides not to establish fees directly proportional to residential unit square footage, this report will also include the necessary findings to satisfy the requirements of AB 602.

Subtask 4.2; Prepare Public Review Draft Report
EPS will revise the Administrative Draft Report according to a set of consolidated comments on the report from the City and will prepare a Public Review Draft Development Impact Fee Program Nexus Study. EPS will also prepare an associated PowerPoint presentation that will be presented at a meeting of key stakeholders and at a City Council meeting.

The purpose of these meetings will be to relay the technical components of the analysis, identify key fee program variables affecting the maximum justified fee levels, answer questions, offer clarifications, and solicit community and stakeholder input regarding the "optimal" fee level.
a
a
a
Economic & Planning Systems, Inc. (EPS) 11Page 107
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
Subtask 4.3: Prepare Final Report
Once the technical analysis and recommended fees have been described and relevant feedback received, EPS will work with the City to determine a final recommended fee schedule and other fee program parameters. EPS will prepare a Final Development Impact Fee Program Nexus Study reflecting any changes, which will be considered for adoption at a City Council meeting. Following the meeting, EPS will make any revisions that may be requested by the City Council.

Subtask 4.4: Calculation Spreadsfieets and Methodology
EPS will provide the City with the Excel-based model used to (1) compile the costs of public facilities by type, and (2) allocate these costs across each land use. EPS will also hold one meeting with relevant City staff to present the structure of the model and ensure that City staff fully understand the methodology used to construct the model. EPS will also train City staff at this meeting to update the model to account for inflationary adjustments using relevant indices such as the Consumer Price Index, Construction Cost Index, and the Building Cost Index.

Task 5: Presentation of Materials
Beyond the Project Initiation Meeting in Task 1, the departmental check-ins and other noted meetings in Task 1, and the discussions on comments on Technical Reports in Task 6, EPS will lead and present at 4 public meetings, including 1 City Council Study Session reviewing the Public Review Draft Technical Report, one City Council Adoption Hearing/First Reading of the Final Technical Report, as well as 2 public stakeholder meetings with participants to be determined by City staff (though with at least 1 focused on the development community). For the 2 stakeholder meetings, it is assumed that City staff will organize the meeting and invite attendees and EPS will facilitate the meeting, present at the meeting, answer questions, and take notes. EPS will also support City staff in the preparation of staff reports for public meetings.

Economic & Planning Systems, Inc. (EPS) t2Page 108
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June L6, 2O23

2. Qua lifications
About EPS
EPS is a land economics consulting firm, experienced in the full spectrum of services related to real estate development, the financing of public infrastructure and government services, land use and conservation planning, and government organization.

EPS was founded on the principle that real estate development and land use-related public policy should be built on realistic assessment of market forces and economic trends, feasible implementation measures, and recognition of public policy objectives, including provisions for required public facilities and services. These are EPS's areas of expertise:
aa Economic Development and
Revitalization
Housing Policy
Parks and Open Space Economics
Public-Private Partnership (P3)
Fiscal and Economic
Impact Analysis
Land Use and Transportation
Public Finance
Real Estate Economics
a
a
aa
Since 1983, EPS has provided consulting services to hundreds of public- and private-sector clients in California, Colorado, and throughout the United States.

EPS has offices located in Oakland, Sacramento, and Los Angeles, California, and Denver, Colorado. EPS's clients consist of cities, counties, special districts, educational and other nonprofit institutions, multijurisdictional authorities, property owners, developers, financial institutions, and land use attorneys.

The professional staff of 46 includes specialists in public finance, real estate development, land use and transpoftation planning/ government organization, and computer applications. The firm excels in preparing concise analyses that disclose risks and impacts, support decision making, and provide solutions to real estate development and land use-related problems.

Relevant EPS Practice Areas
Work related to this Study falls within Public Infrastructure Financing and Impact Fees, which is one of EPS's core practice areas and described in more detail below.

Economic & Planning Systems, Inc. (EPS) 13Page 109
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
Public Infrastructure Financing and Impact Fees
EPS has evaluated, recommended, or supported implementation of a broad range of financing mechanisms for infrastructure improvements and ongoing public services. Specific services provided by EPS include forecasting demand to assist in infrastructure design, sizing, and timing; allocating capital costs among participating entities; identifying, forecasting, and establishing various funding mechanisms; formulating nexus studies/fee schedules, assessment rates, Special Tax Formulas, and fee ordinances; and assessing the impacts of capital financing alternatives on project feasibility and public finance negotiations.

EPS has particular expertise in the preparation of impact fee studies and programs, and has worked with dozens of cities, counties, and special districts to provide these services. EPS's impact fee-related products and services range from single-purpose fees focusing on particular facilities or subareas to more comprehensive, multi-improvement programs spanning entire cities or numerous jurisdictions. The firm is well-versed in the requirements of the Mitigation Fee Act (AB 1600) and associated legislation, and our impact fee work often includes revenue projections as well as assessments of the fees' impacts on new development.

EPS's expertise in real estate economics allows us to help public agencies ensure that desired private development investments remain feasible while also contributing to public improvements. This is particularly important where cities are considering the adoption of numerous new fees and other development charges. Also, our expertise in fiscal impact analysis helps public agencies understand the ongoing financial consequences of their public investment decisions. As requested in the RFP, EPS is providing a relevant sample of work in Appendix B that demonstrates EPS's expertise in the realm of nexus studies and impact fee programs. The attached report, completed for the City of Sacramento's Department of Utilities, demonstrates EPS's methodology for calculating fees and complying with the legal requirements of relevant regulations, including the Mitigation Fee Act and AB 602.

What Makes EPS Different?
Unlike some of our competitors, EPS works extensively with both public agencies and private developers. As a result, EPS has a deep understanding of public concerns for policy formation and stakeholder outreach, as well as for the development community's perspectives, feasibility concerns, and go/no-go decision-making processes. This experience supports and is supported by an analytical approach that stresses rigor, transparency, and objectivity rather than advocacy and one that results in a realistic view of the evolving limits of feasibility in financial markets. Through this approach, EPS engenders the trust of clients in both the public and private sector. In some public-private development projects, Economic & Planning Systems, Inc. (EPS) 14Page 110
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June {6, 2023
EPS has started out working for the public agency and then later has been retained by the private developer, or vice versa.

In addition to an understanding of both the public and private side of development, EPS generally has a more robust and broader practice than its competitors. EPS's practice includes affordable housing and housing policy; real estate market analysis; reuse and revitalization strategies; and economic/fiscal impact analysis. As a result, EPS is able to address land use planning and policy from a more holistic perspective that includes the concerns of private developers, but also the economic development and fiscal realities of public agencies.

Lastly, as described above, EPS is uniquely familiar with the City of Folsom and the greater Sacramento region. From ouroffice in Sacramento, EPS has assisted with public facilities financing plans, nexus studies, and fee administration in numerous jurisdictions in the area, including the cities of Sacramento, Elk Grove, Folsom, Rancho Cordova, Roseville, Rocklin, Woodland, and Citrus Heights, as well as Sacramento, El Dorado, Nevada, Placer, and Yuba Counties. Our current work in the FPASP Infrastructure Fee Program as well as our numerous projects throughout the region give us unique insight and an innate understanding of development economics in the City of Folsom, and our familiarity with City staff and processes ensures that communication on the project would be efficient and effective. In concert with EPS's institutional knowledge built over 40 years of work in public finance, this specific knowledge of the City of Folsom makes EPS uniquely qualified to provide the services requested by the City.

Key Personnel
EPS will apply a team approach to this project, engaging City and other project stakeholders/ as appropriate, in an ongoing and collaborative manner. EPS organizes projects to bring the most experienced in-house talent to each assignment. While EPS's staff works collaboratively, each project is assigned a Principal-in-Charge, with ultimate responsibility for project delivery, and a Project Manager, who is available to the client on a day-to-day basis. The role and background of key personnel for this project are summarized below, and detailed resumes are included in Appendix A.

Managing Principal Jamie Gomes will serve as Principal-in-Charge and will provide overall project guidance and direction to complete the consulting assignment, as seen in Figure 1. As one of EPS's impact fee practice leaders, Jamie offers impact fee policy and implementation expertise and leadership, informed by his experience working on a myriad of similar projects throughout California. Throughout his more than 25-year career with EPS, Jamie has managed many development impact fee studies in various jurisdictions, including the Cities of Elk Grove, Folsom, Roseville, Rancho Cordova, Sacramento, and Fresno, Nevada, and Yuba County. In addition, Jamie's practice has evolved into Economic & Planning Systems, Inc. (EPS) 15Page 111
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June t6,2023
active fee program administration of several plan-area fee programs in Folsom, Rocklin, Roseville, and Woodland. This experience offers lamie insight regarding key technical issues, as well as potential implementation challenges, that allows for early identification and resolution of challenges to ensure timely completion of project deliverables. Additionally, Jamie is singularly qualified to provide project guidance on this fee update, having served as the Principal-in-Charge for the FPASP Public Facilities Financing Plan, the FPASP Infrastructure Fee Nexus Study, and the ongoing implementation of the SPIF Fee Program. Jamie's familiarity with the City of Folsom and the stakeholders in the Plan Area are a key attribute of EPS's advantage on this project.
lamie will be available regularly over the duration of this project, overseeing all aspects of the work completed, attending project meetings and conference calls, and providing ongoing policy and other advisory support to the City on an ongoing basis.

Figure 1. EPS Project Organizational Chart
Associate Emilio Balingit will serve as Project Manager, will manage the day-to- day aspects of the project, and will be regularly available to the City. One of EPS's leading impact fee practitioners, Emilio offers impact fee policy and implementation expertise and leadership informed by his experience working on several similar projects throughout California. Over the course of his career with EPS, Emilio has contributed to several development impact fee studies including Fresno, Sutter County, Sacramento County, Merced, and Colusa County.

Additionally, Emilio works closely with Jamie and serves as the Project Manager for EPS's work on the FPASP Infrastructure Fee Program implementation and administration, Like Jamie, Emilio's work on the FPASP Infrastructure Fee Program has given him unique insight into the Plan Area's development trends and City of Folsom (Client)
City Council and City Management Group
Economic & Planning Systems
Jamie Gomes
Principal-in-Cha rge
Emilio Balingit
Project Manager
Associates and Other Support Staff
Economic & Planning Systems, Inc. (EPS) 16Page 112
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facllities in the Folsom Plan Area June 16, 2023
stakeholders that provide him with a capability to quickly initiate the proposed Public Facilities Fee Program update with minimal need to familiarize himself with the project's background.

Emilio offers excellent project management services, with extremely strong communication and organizational skills, as well as a personable and persistent approach that is particularly valuable to completing projects on an aggressive timeframe. Emilio will be available to the City on a day-to-day basis for the duration of this contract.

Project Profiles
Folsom Plan Area Specific Plan, Financing Plan, CFD Formations, and Specific Plan Infrastructure Fee Program
Sacramento County/City of Folsom, California
EPS was retained by the Folsom South Area Owners'Group (FSAG) to prepare a Public Facilities Financing Plan (Financing Plan) for the Folsom Plan Area Specific Plan (FPASP). The FPASP is located in the City of Folsom on approximately 3,500 acres, located south of U.S. Highway 50. The FPASP is envisioned to add approximately 10,000 dwelling units and 5.2 million building square feet of commercial space to the City of Folsom. The Financing Plan presented a comprehensive strategy to finance the backbone infrastructure and other public facilities required to serve the proposed development. The financing strategy included the use of city fees, school district fees, other regional agency fees, plan area fees, and several land-secured financing districts.

Subsequently, EPS was retained by the City of Folsom and the FSAG to help implement the financing mechanisms identified in the adopted Financing Plan. EPS has assisted in the formation of three areawide CFDs funding a variety of infrastructure and public services, as well as multiple development-project- specific CFDs aimed at funding backbone infrastructure required for the respective projects. Additionally, EPS authored the 2015 FPA Specific Plan Infrastructure Fee Nexus Study, completed an update to that Study in2020, and is currently in the process of authoring another comprehensive update to the 2020 Study. Lastly, EPS has also been retained by the City of Folsom as the third-party Specific Plan Infrastructure Fee Program Administrator, a role in which the firm is still serving to this day.

Reference: Stacey Tamagni, City of Folsom Finance Chief Financial Officer, [email protected], (916) 461-6080
Economic & Planning Systems, Inc. (EPS) 17Page 113
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June !6,2023
Roseville Public Facilities Infrastructure Fee Nexus Study Update Roseville, California
The City of Roseville's Public Facilities Development Impact Fee (PFF) Program was established in 1991. EPS prepared the most recent 2020PFF Program Nexus Study Update, as well as the prior 2015 update'
The PFF Program funds new development's obligation to construct public facilities serving residents and employees in the City of Roseville. Fee program-eligible public improvements include Police and Public Safety Facilities; General Public Facilities such as Civic Centers, Corporation Yards, and other basic infrastructure; and Community Facilities such as libraries, parks and recreation facilities, community centers, and cultural facilities.

The proposed updated development impact fees for these facilities were established by allocating the costs of capital improvements needed to serve new development to the projected new development by residential and nonresidential land use category through buildout of the City of Roseville's General Plan. The cost allocations were based on the relative benefit derived from the improvements by each development type. Future development's share of future public improvement costs was based on planned facilities as determined by the City of Roseville and calibrated by existing level-of-service standards. The costs of the construction of public facility improvements required to cure existing level-of- service deficiencies were estimated and excluded from the PFF calculation.

The resulting development fees comply with the provisions of California Government Code Section 66000 et seq. The City of Roseville adopted the 2020 PFF Program Nexus Study Update in September 2O2O'
Reference: Dennis Kauffman, Assistant City Manager, City of Roseville, [email protected]. us, (916) 77 4-53L3
Fresno Development Impact Fee Nexus Studies for Parks, Major Streets' and Police and Fire Facilities-2O15 Update
Fresno, California
Having recently completed a General Plan update, the City initiated a comprehensive update to its citywide development impact fee programs, with the goal of incorporating updated population and employment estimates, traffic analysis, park and recreation facility standards and public safety needs assessments. The City engaged EPS to prepare updated nexus studies establishing the maximum justified fees for Fire, Police, Parks, Regional Streets and New Growth Area Major Streets. With a primary focus on equity and with consideration to the City's economic development objectives, the fee program updates were calibrated to establish maximum justified fees based on each user's impact on the facilities in question (i.e., major streets, fire, police, and parks facilities).

Economic & Planning Systems, Inc. (EPS) 18Page 114
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
EPS's analysis established development impact fees for these facilities by evaluating the capital improvement needs relative to existing and projected new development, the proportional demand for new facilities generated by each land use category and user type, and the provisions of Government Code Section 66000 et seq. Each fee program also accounted for existing service level deficiencies, fee program fund balances, debt service for bond-financed facilities, outstanding credit and reimbursement agreements, and other funding sources available to offset fee program costs. In addition, where supported by capital improvement programming and service level standards, the fee program analysis evaluated and accounted for differential facility demand characteristics associated with urban core development relative to new growth development areas.

The final nexus study reports were adopted by the City of Fresno in December 2016. After the adoption of these nexus studies, EPS prepared an additional Fire Nexus Study Update that updated the fire fees. The purpose of this report was to update the fire fees to reflect substantially higher Fire Capital Improvement Plan costs than anticipated at the time the 2016 Nexus Study was completed. This Fire Nexus Study Update was adopted by the City of Fresno in June 2019. Most recently, EPS completed analysis for new fee amounts for fire facilities, police facilities, major roads and bridges, and parks, in addition to a nexus study for each of these fees in 2O22. The updated fees for fire facilities, police facilities, and major roads and bridges were adopted by the City in 2022, and the City will consider the updated park fee in 2023.

Reference: Andrew Benelli, Assistant Director of Public Works, City of Fresno, [email protected], (559) 621-8650
North Natomas Development Impact Fee Nexus Study and Financing Plan Update
Sacramento, California
EPS has worked with the City of Sacramento for over 25 years on the development and implementation of the North Natomas Community Plan infrastructure and public facility fee program. Key to the financing strategy was implementation of the North Natomas Development Impact Fee Nexus Study, which established the following fees: PFF, Transit Fee, Public Facilities Land Acquisition Fee, and Regional Park Land Acquisition Fee. North Natomas development is well underway and many of the original improvements have already been completed. The PFF currently funds transportation, fire, library, community center, and bikeway improvements.

The North Natomas Nexus Study specifies the required remaining backbone infrastructure, regional park land, and public land needed to serve the residents and employees in North Natomas and allocates the improvement and land costs to the remaining development using appropriate common use factors that measure the relative benefit to each land use. In addition, the PFF fee-funded Economic & Planning Systems, Inc. (EPS) 19Page 115
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
costs are adjusted by the available account balance and outstanding fee credits and reimbursements owed to developers for the construction of infrastructure.

The nexus study details implementation of the fee program, including collection of the fees, the use of fee credits and reimbursements, the required methods by which the different costs and fees are adjusted annually, the procedures for issuing and using fee credits, and the method by which outstanding fee credits and reimbursements are adjusted annually.

In addition to establishing the original North Natomas Nexus Study in 1995, EPS has worked with the City of Sacramento to provide ongoing implementation and administration support, including updates in 1999, 2002,2005, 2008, and most recently,2017. EPS's work on the North Natomas Nexus Study not only established the legally required nexus findings needed to establish and update the fee, but through ongoing implementation and administration work, EPS has ensured that the fee program is financially effective. Accounting for changes in future development projections, facilities requirements, facility cost estimates, cost allocation methodologies, and remaining credits and reimbursements, EPS's analysis and updates have ensured that facilities are constructed when needed to serve new development.

The City of Sacramento adopted the 2017 North Natomas Development Impact Fee Nexus Study Update in February 2018, continuing the long-term successful implementation of the plan and associated financing strategy.

Reference: Sheri Smith, Special District Manager, City of Sacramento, ssm ith @cityofsacra m ento. org, (9 1 6) 8OB-7 204
Nevada County Parks and Recreation Facilities Fee Nexus Study Nevada County, California
In 2018, the County of Nevada engaged EPS to prepare an update of the county's Park and Recreation Facilities Fee Nexus Study (Nexus Study) for the western portion of unincorporated Nevada County. The previous Nexus Study had been prepared in 1997 and fee levels had not been escalated or adjusted since that time. The effort was further complicated by the need to coordinate with 3 independent park and recreation districts as well as the incorporated Cities of Grass Valley and Nevada City, all of which work with Nevada County to provide park and recreation services to western Nevada County residents. Working with an engaged stakeholder community focused on improving parks and recreation services in Nevada County, as well as the several jurisdictions involved in providing park services, EPS updated the impact fee calculations for 4 distinct recreation benefit zones in Nevada County. The updated Park and Recreation Facilities Fee Study included Quimby land acquisition, park development and trail improvements. The nexus study update required detailed analysis by benefit zone to establish demographic, land valuation and other assumptions, including establishing service levels standards with consideration to existing service levels Economic & Planning Systems, Inc. (EPS) 20Page 116
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023
relative to policy standards and the benefit derived by the provision of private park amenities in certain communities.

The Nevada County Board of Supervisors unanimously adopted the updated Park and Recreation Facilities Fee Nexus Study in December 2018' Reference: Jeffrey Thorsby, Senior Management Analyst, Nevada County Board of Su pervisors, ieffrey.thorsby@co. nevada. ca' us, (530) 265-7 247 Economic & Planning Systems, Inc. (EPS) 2tPage 117
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023

3. References
Per the City's RFP, EPS has provided the following list of references for whom we have most recently provided services related to public facilities development impact fees and nexus studies. Additionally, EPS's final report for the City of Sacramento's Department of Utilities Development Impact Fee and Nexus Study is included in Appendix B as a sample of the firm's work.

Contacl lnformation Public Facilities lncluded
ln Fee ProgramProJect Name ProJect Dat€, Status
Public Draft Accepted
February 2023. Pending
Adoption by City
Council.
2021 -2023 Kelly Sherfey, MPA, CFM
Program Specialist
City of Sacramento
Department of Utilities
[email protected]
(e16) 808-1466
Water Systems
Separated Sewer System
Combined Sewer and Storm
Drain System
Separated Storm Drain
System
City of Sacramento
Department of Utilities
Development lmpact
Fee and Nexus Study
Police Facilities
Fire Facilities
Major Roads and Bridges
Parks
Police, Fire, and Roads
fees adopted 2022.

Parks Fee to be
considered in 2O23.
2021 -2023 Andrew Benelli
Assistant Director of Public
Works/City Engineer
City of Fresno
Andrew. Benelli@fresno. gov
(559) 621-8723
Fresno Major Streets,
Public Facilities, and
Park Development
lmpact Fees
Brent Meyer
Community Development
Director/City Engineer
City of Woodland
[email protected]
(530) 661-5e47
Major Streets
Storm Drainage
Water System
Sewer System
Parks and Open Space
Woodland Research
and Technology Park
Public Facilities
Financing Plan and
lmpact Fee Nexus
Study
Updated Nexus Study to
comply with 48602 in
2023. Client is reviewing
Administrative Draft of
Nexus Study.
2018 - 2023
EPS Reference Matrix
Economic & Planning Systems, Inc. (EPS) 22Page 118
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023

4. Disclosures and Conflicts of Interest
EPS has provided consulting services to hundreds of public- and private-sector clients throughout the United States since 1983. EPS offers consulting services in real estate market analysis, feasibility analysis, fiscal impact analysis, infrastructure financing strategies, affordable housing strategies, and similar areas of expertise that are of value to local jurisdictions and authorities, as well as to developers. EPS has been involved in several public/private development negotiations throughout the United States, usually under contract to the public- sector party, but sometimes under contract to the private-sector party.

The firm's reputation and success have been built on EPS's ability to perform objective and transparent analyses that allow all stakeholders to understand the economics of development and the financial implications of various approaches to projects' programmatic features and financing. This emphasis on objectivity, rather than advocacy, is one of EPS's official "core values" and is instilled in EPS's staff from their first day with the firm.

EPS strives to inform all potential clients of any conflicts of interest, real or perceived, so they can decide whether or not EPS is the best firm to provide consulting services, given the unique technical requirements of the assignments, as well as the political considerations in place. EPS is proud of its longstanding success in providing quality services to a wide variety of clients and believes this breadth of experience enables EPS to understand the perspectives and needs of all parties involved in complex urban development. In an effort to be fully transparent and avoid any perceived conflicts of interest, the following projects and clients are disclosed below.

As mentioned above, EPS assists with the implementation of the Folsom Plan Area Specific Plan in the following, ongoing ways:

Administration of the Specific Plan Infrastructure Fee Program.

Client: City of Folsom.

Implementation of the Folsom Plan Area Phase 2 Water Improvements.

Client: Folsom Implementation Group Cost Sharing, LLC/Folsom South Area Owner's Group.

During these ongoing engagements, EPS maintains open lines of communication between city staff and development community representatives. a
Economic & Planning Systems, Inc. (EPS) 23Page 119
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 15, 2023
In addition, EPS has had contracts for technical assistance related to either FPASP fee programs or CFD special tax analyses with the following entities operating in the Folsom Plan Area:
r Lewis Management Corporation
r Westland Capital Partners
r Dignity Health
r Eagle Commercial Partners, LLC
r Lennar Corporation
. Toll Brothers, Incorporated
r Taylor Morrison Homes of CA
r Elliott Homes
o The New Home Company
. Gragg Ranch Recovery
Economic & Planning Systems, Inc. (EPS) 24Page 120
07/11/2023 Item No.14.
a
Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023

5. Insu ra nce
EPS maintains insurance in compliance with the City insurance requirements in Exhibit B of the RFP. In current contracts with the City, EPS has requested, and the City has granted, the following two exceptions to Exhibit B:

Exception to Section 2.b: EPS does not own any vehicles and cannot accommodate symbol 1 (any auto). EPS's automobile liability insurance covers symbols 8 & 9 (non-owned and hired autos only).

Exception to Section 6.e: EPS's insurance provider will not provide notice of cancellation to additional insureds, nor will the policy state this. This is the insurance provider's corporate policy. EPS will provide notice of insurance cancellation to the City.

Economic & Planning Systems, Inc. (EPS) 25Page 121
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 16, 2023

6. Cost Proposa I
Proposed Budget
EPS agrees to complete the above work program on a time and materials basis not to exceed 9821115. The approximate level of effort by task and staff level is shown in Table 2. Please note that this budget does not include optional Subtask

2.3.lf the City and EPS agree that this task is required, EPS will submit a scope of work and budget amendment based on the specific facilities for which EPS will prepare cost estimates.

EPS bills monthly for its services and will transmit invoices per the City's i nstructions.

Economic & Planning Systems, Inc. (EPS) 26Page 122
07/11/2023 Item No.14.

Table 1
EPS Proposed Budget
Folsom Plan Area Specific Plan Fee and Stand Alone Fee Nexus Study Update Charge
Gomes
Manager
Balingit
Technical
Staff
EPS
Production
Staff
EPS
Subtotal Expenses [1] Costs
0 $5,250 $0 $5,250
SubtasUDescription
Task {: Project lnitiation and Project Management
Task 2: Data Collection and Development
Subtask 2.1: Update Land Use Projections and Demographic Assumptior Subtask 2.2: Update Public Facility Cost Estimates
Subfask 2.3: Prepare Further Detailed Cost Estimates (optional) [2] Task 3: Fee Calculation and Analysis
Subtask 3.1: Determine Fee Program Approach and Methodology Subtask 3.2: Prepare Cost Allocation Model
Subtask 3.3: Prepare Maximum Allowable Fee Calculation
Subtask 3.4: Fee Comparison
Task 4: Prepare Development lmpact Fee Program Nexus Study Subtask 4.1: Prepare Administrative Draft Report
Subtask 4.2: Prepare Public Review Draft Report
Subtask 4.3: Prepare Final Report
Subtask 4.4: Calculation Spreadsheets and Methodology
Task 5: Presentation of Materials

TOTAL HOURS
6 0
6 40
0 0
30 20
40 18
4 36
0 6
6 6
4 $2,250
$16,395
$o
$4,140
$8,490
$7,230
$8,190
$12,430
$5,010
$3,000
$1,060
$8,070
$81,515
$0
$o
$0
$o
$o
$o
$o
$0
$0
$300
$3oo
$o
$600
$2,250
$16,395
$0
$4,{40
$8,490
$7,230
$8,190
$12,430
$5,010
$3,300
$r,360
$8,070
$82,115
12 72
$320
$23,040
14 172
$18s
$31,820
2 l5
$e5
$1,425
2 12
0 0
1 0
0 0
2 4
2 4
0 12
12 12
6 0
5 2
1 40
I
b
4 10
12 b
0 10
174
Billing Rates $145
TOTAL PROJECT COSTS $25,230 $81,515 $600 $82,115
[1] Direct expenses are billed at cost and do not include any overhead. [2] lf Subtask 2.3 is needed, EPS will submit a specific scope of work and budget amendment based on the specific facilities' cost estimates that EPS is charged with preparing Prepared by EPS 6/16/2023 Page 123
07/11/2023 Item No.14.

Nexus and Impact Fee Study for Public Facilities in the Folsom Plan Area June 15, 2023
7 . Work Plan and Schedule
Based on an estimated level of effort and the deadlines for milestones contained in the City's RFP, EPS has prepared the a conceptual schedule for the project as shown in Figure 2. At the Project Initiation meeting, EPS and the City will discuss the specific deadlines for deliverables and milestones needed to complete the project according to the City's desired schedule.

07/11/2023 Item No.14.

Figure 2
Folsom Development lmpact Fee Nexus Studies
Scope of Work Schedule
DecemberNovemberOctoberSeptemberAugustJuly
l: Proiect lnitiation and Project Management
2:Dala Collection and Development
3: Fee Calculation and Analysis
4: Prepare Development lmpact Fee Program Nexus Study
5: Presentation of Materials
Fee Study Process Completion
k
ask/Description

07/11/2023 Item No.14.

Apperuorx A:

Kev Srnrr Rrsuvrs

07/11/2023 Item No.14.

Education
Master of Business
Administration with
concentration in Urban Land
Development, Cal ifornia State
University Sacramento, 1997
Bachelor of Arts in Economics
with a minor in History,
University of California Davis,
1991
Previous Employment
Senior Loan Officer, First
Federal Credit Union,
Sacramento, California,
1994-1998
Affiliations
Urban Land Institute (ULI),
Sacramento District Council,
Treasurer
Growth and Infrastructure
Consortium, Member and
Presenter
First U.S. Community Credit
Union, Sacramento,
California, Board of Directors
Jamie Gomes
Managing Principal
ABoUT
Jamie Gomes has experience consulting in the areas of public finance, fiscal analysis, and real estate economics. Jamie has directed complex consulting assignments on behalf of both public- and private-sector clients that have resulted in successful development and redevelopment projects, and he is one of EPS's leading experts in implementing infrastructure financing mechanisms, particularly Mello-Roos Community Facilities Districts (CFD), development impact fee programs, and fiscal impact analyses.

SELECTED PROJECTS
Folsom Plan Area Specific Plan-Specific Plan Infrastructure Fee EPS worked with City of Folsom staff and the Folsom Plan Area Owners'Group to implement a plan area-specific fee program for backbone infrastructure, as well as park and public facility land acquisition. The fee program includes approximately $350 million of roadway, sewer, storm drainage, dry utility, and water infrastructure anticipated to be constructed by property owners in the specific plan area. EPS prepared the original and one subsequent update to the impact fee nexus study. In addition to its work on the nexus studies, EPS is actively engaged by the City of Folsom as a third-pafty fee program administrator for the Specific Plan Infrastructure Fee.

City of Turlock Master Storm Drainage Development Impact Fee Nexus Study The City of Turlock engaged EPS to prepare a Nexus Study to document the maximum justifiable Master Storm Development Fees (Storm Drainage Fees) that could be collected from new development. EPS worked with the City and the City's Storm Drain Master Plan consultant to establish projected new land uses, the facilities needed to serve new development, and prepared the Nexus Study document meeting all statutory requirements needed for the fee program update, Roseville Sierra Vista Specific Plan Fee Program
Working with City of Roseville staff and an engaged propedy owner stakeholder group, EPS prepared a nexus study to implement development impact fees for new Specific Plan development projects. The Infrastructure component of the fee program funded drainage facilities, including drainage basins and pipes. The fee program includes features to help guide future implementation of the fee program as new Specific Plan development occurs. In addition to its work on the original nexus study and subsequent update, EPS is actively engaged by the City of Roseville as a third-pady fee program administrator for the Sierra Vista Specific Plan Fee Program.

Reclamation District No. 784 Drainage Impact Fees
Working on behalf of Reclamation District (RD) 784 located in Yuba County, EPS completed a nexus study updating the RD 784 Drainage Impact Fee Program, which allocated the costs of nearly $40 million in drainage improvements serving new development in three separate drainage basins and two sub-basins. 400 Capitol Mall, 28th Floor r Sacramento, CA 95814
916.649.8010' [email protected] I www.epsys.com
Economic & Planning Systems, lnc.

The Economics of Lond Use Page 127
07/11/2023 Item No.14.

JnvrE Govrs 2
Sacramento Comprehensive Development Impact Fee Update
EPS helped the City of Sacramento conduct a comprehensive update of their fee programs calibrated to market and economic limitations. EPS prepared infrastructure cost burden comparisons and development feasibility analysis to identify the capacity for new and increased fees, conducted extensive stakeholder outreach and assisted the City to refine their fee program proposals in response to market and economic limitations.

Northwest Rocklin Annexation Area Public Facilities Financing Plan, CFD Formation, and Finance Plan Administration
EPS prepared a Public Facilities Financing Plan that set forth a strategy to finance backbone infrastructure (including storm drainage improvements) and public facilities needed to serve 1,900 acres in northwest Rocklin, The Plan optimized funding sources that minimize the financial burden on undeveloped land while assuring that necessary facilities will be constructed when needed. Financing Plan implementation included formation of a Mello-Roos CFD and a development impact fee program for infrastructure and public facilities. Finally, EPS has been assisting City of Rocklin staff in implementing property-owner obligations related to the Nofthwest Rocklin Annexation Area Financing Plan,
Fresno Major Streets, Police, Fire, and Parks Impact Fee Updates EPS prepared a comprehensive update to the City of Fresno's major streets, police, fire, and public safety impact fees. EPS worked with the City of Fresno and development community stakeholders to define the capital improvement program, develop cost allocation approaches that take into consideration bond-financed facilities and existing deficiencies, as well as other considerations. EPS also prepared a comprehensive comparison of regional infrastructure cost burdens to facilitate calibration of fee program proposals and implementation.

Sacramento Citywide Transportation Development Impact Fee The City of Sacramento retained EPS to update its Transpodation Development Impact Fee (TDIF) Nexus Study, The previous TDIF Nexus Study, completed in 2010, was never adopted by the City Council, and EPS understood the City of Sacramento intended to update the 2010 TDIF Nexus Study to reflect revised improvement costs, land use assumptions, and fee program methodological approaches, Roadway improvements, traffic signals, transit improvements, and bicycle/pedestrian improvements all benefitted new development in the City of Sacramento.

Nevada County Parks and Recreation Facilities Fee Study The County of Nevada (Nevada County) engaged EPS to prepare an update of its Park and Recreation Facilities Fee Nexus Study for the western portion of unincorporated Nevada County (i.e., west of the Truckee-Donner Parks and Recreation District). With five separate recreation benefit zones, park and recreation services in Western Nevada County are provided by a combination of Nevada County, three separate park districts, and independent recreation service providers for those areas of Nevada County not served by a park district. Complexities related to park and recreation service provision required specialized analysis and outreach to ensure the impact fee appropriately accounted for level-of-service considerations, as well as needed resources, to implement construction.

Elk Grove Roadway and Capital Facilities Fee Programs Update EPS worked with City of Elk Grove staff and Council and an engaged developer stakeholder group to comprehensively update the city's roadway and capital facilities fee programs, EPS worked with the City of Elk Grove and stakeholder groups to identify facility needs to serve future development, develop future facility cost estimates, and establish a nexus-based fee program to fund those improvements and maintain the desired level of service. The city's Capital Facilities Fee Program included civic center, police, library, corporate yard, and transit facilities components.

Turlock East Tuolumne and Westside Industrial Specific Plan Fee Updates Working on behalf of the City of Turlock, EPS reviewed engineering cost estimates, allocated the infrastructure costs to new development, estimated a development impact fee based on those costs, and compared those fees with development impact fees from other jurisdictions, This comparative analysis illustrated how the proposed fees could affect the project's competitiveness with other similar types of development projects in the region, EPS assisted the City of Turlock to develop alternative development scenarios and facilities phasing to arrive at a feasible financing strategy. EPS incorporated the fee analysis into a nexus study.

Economic & Planning Systems, Inc

07/11/2023 Item No.14.

Emilio Balingit
Associate
Education
University of California
Los Angeles Luskin School of
Public Affairs, Master of Urban
and Regional Planning
University of California
Santa Cruz, Bachelor of Arts in
Environmental Stud ies/Earth
Science
Previous Employment
Planner/Associate Planner,
Urban Planning Padners, Inc.,
Oakland, CA,
July 2018-August 2021
Land Development Intern,
California Home Builders,
Canoga Park, CA,
January 2018-June 2018
Bicycle and Pedestrian Projects
Intern, San Francisco Municipal
Transportation Agency
(SFMTA), San Francisco, CA,
June 2017-September 2017
Economic & Planning Systems, lnc.

The Economics of Lond Use
ABOUT
Emilio Balingit is a planner with more than 5 years of professional experience in land use planning and policy, California Environmental Quality Act (CEQA), and real estate development in the private, public, and nonprofit sectors, Since joining EPS in 2021, Emilio has provided technical assistance suppofting development impact fee administration programs, real estate market analyses, economic development studies, and public facilities financing plans.

SELECTED PROJECT EXPTRTEruCT
Sutter Pointe Specific Plan
Working with Sutter County and a developer group/ EPS prepared a public facility financing plan, urban services plan, and fiscal impact analysis for the Sutter Pointe Specific Plan, which plans for more than 17,500 homes and 50 million square feet of commercial space on 7,500 acres. Currently, EPS is supporting implementation of these financing plans by preparing a Sutter Pointe Specific Plan Fee Program Nexus Study and Urban Services Implementation Plan, In addition, EPS is providing technical support to Sutter County to assist with the formation of community facilities districts to fund and construct backbone infrastructure and provide public services in the project area, Folsom Plan Area Specific Plan Fee Program and Specific Plan Infrastructure Fee EPS worked with City of Folsom staff and the Folsom Plan Area Owners'Group to implement a plan area-specific fee program for backbone infrastructure, as well as park and public facility land acquisition. The fee program includes roadway, sewer, storm drainage, dry utility, and water infrastructure anticipated to be constructed by propefty owners in the specific plan area. EPS prepared the original and one subsequent update to the impact fee nexus study. In addition to its work on the nexus studies, EPS is actively engaged by the City of Folsom as a third-party fee program administrator for the Specific Plan Infrastructure Fee.

Upper Westside Specific Plan
EPS is working with Sacramento County and a developer group to develop a public facility financing plan and urban services plan for the Upper Westside Specific Plan, which calls for infrastructure and public facilities to support approximately 9,350 homes and more than 3 million square feet of commercial space in Sacramento County. For the public facilities financing plan, EPS is working with several public agencies to determine the optimal timing of public infrastructure development, ensuring that private development in the Upper Westside area is served by adequate infrastructure and the costs of public infrastructure are shared equally by all development in the plan area, City of Merced Public Facilities Financing Plan and Impact Fee Update EPS worked with the City of Merced to provide a comprehensive fee update for infrastructure and public facilities including major roads and bridges, fire, police, and park facilities, and public works infrastructure projects. The updated fee programs are envisioned to contribute over $230 million to new infrastructure and public facilities. Key issues included analyzing the allocation of new public facilities costs between new and existing development and the contribution of non-residential development on roadway demand. EPS's analysis ensured that new development contributes its fair share to new infrastructure and public facilities as the City's population continues to grow' 455 Capitol Mall, Suite 701 . Sacramento, CA 95814
916.649.8010 r [email protected] . www.epsys.comPage 129 07/11/2023 Item No.14.

Appenorx B:

Wonr Snrqplr:

CTw or SnCNNMENTO DTPRRTMENT Or UUIITIES
DevTIOPMENT IUPNCT Frr PNOGRAM AND NrXUS
Sruores

07/11/2023 Item No.14.

Tlte E, ortontirs of Lunrl ltsu
Economic & Planning Systems,Inc.
455 Capitol Mall, Suite 701
Sacramento, CA 95814
916 649 8010 tel
916 649 2070 fax
Oakland
Sacramento
Denver
Los Angeles
Draft Report
Development Impact
Fee Program and Nexus Studies
Prepared for:

City of Sacramento
Department of Utilities
Prepared by:

Economic & Planning Systems, Inc. (EPS)
February t3,2023
wwtAt.epsys.com
EPS #2T2I25

07/11/2023 Item No.14.

Table of Contents

1. Executive SummarY
Introduction and Background.......

Summary of Findings.

Organization of Report

2. The Water System UtilitY,
Introduction and Description...........

Growth, Demand, and Allocations'..'."....

Buy-In Methodology and Fee per Equivalent Meter'.'.."'." Incremental Methodology and Fee per Equivalent Meter "' Capital Costs, Allocation, and Cost per Equivalent Meter...

Water System Development Impact Fee'...."."'..""..

Comparison with Surrounding Communities
Nexus Findings

3. The Separated Sewer System Utility
Introduction and Description...........

Growth and Demand ..............

Incremental Methodology and Fee per Equivalent Standard Dwelling Comparison with Surrounding Communities
Nexus Findings
The Combined Sewer SYstem UtilitY
Introduction and Description.............

Growth and Demand ...............''''...'..'.''.

Incremental Methodology and Cost per Equivalent Standard Dwelling and Impermeable Square Foot
Comparison with Surrounding Communities
Nexus Findings
The Storm Drainage System Utility.

Introduction and Description.......'.'.

Growth, Demand, and Allocations.'.'..'....

Buy-In Methodology, Fee Calculation, and Credits.
1 1
9 13
......t4
....... t4
.......16
.......77
.......19
.......24
.......25
.......26
.......28
32 32
34 3B
43 44
4B
48 50
4 63
63 65
66 5

07/11/2023 Item No.14.

Fee per Developable Acre and Square Foot.

Use of Fees..........

Comparison with Surrounding Communities
Nexus Findings
Appendices
Appendix A: Executive Summary
A-1: Square Feet per Employee Coefficients
A-2: Companion Charts to Tables 1-5 and 1-6
Appendix B: Water System Utility
B-1: Water System Asset AnalYses
B-2: Capital Improvement Program
B-3: Companion Charts to Tables 2-10 and 2-11
Appendix C: Separated Sewer System Utility
C-1: Technical Memorandum, Department of Utilities
C-2: Sample of Basin ImProvements
C-3: Separated Sewer Detailed Fee Schedule
C-4: Companion Charts to Table 3-8
Appendix D: Combined Sewer System Utility
D-1: Detailed Fee Schedule
D-2: Fee Comparisons of Sewer Systems
Appendix E: Storm Drainage System Utility
E-1: Assets by Basins and Basin TYPe
E-2: Companion Charts to Table 5-10
70 72
73 74

07/11/2023 Item No.14.

List of Tables
Table 1-1. Housing by Type and Employment .....".

Table 1-2. 2040 General Plan Projection Data and Utility Demand Indicator Table 1-3. Demand Indicators and Factors by Utility System .

Table 1-4. Impact Fee Methodology by Utility System
Table 1-5. Summary of Water, Sewer, and Storm Drainage Development Impact Fees per Unit-Single-Family, Retail, and Office.' Table 1-6. Summary of Water, Sewer, and Storm Drainage Development Impact Fees per Acre-Single-Family, Retail, and Office "..'.

Table 2-1. Housing Units by TYPe
Table 2-2- Equivalent Meter Projection and new Growth Share Table 2-3. Existing Assets
Table 2-4. Equivalent Meter Buy-In Fee ..........'
Table 2-5. RiverArc Capacity, Benefit, and Cost Allocation "'...

Table 2-6. CIP Summary of Proportional Allocations and Costs Table 2-7 . Future Demand Shares......

Table 2-8. Equivalent Meter Buy-In and Future Cost Allocation Table 2-9. Buy-In and Future Cost Fee Schedule for New Development Table 2-10. Fee Comparisons by Land Use and Meter Size..'.".""......

Table 2-11. Fee Comparisons by Land Use and Area
Table 3-1, 2040 Projected Growth in Land Use.'
Existing and Projected Equivalent Standard Dwellings
System Value and Improvement Costs.....

Improvement Cost per ESD.....

Cost per ESD with Planning Costs........

Table 3-6, Development Impact Fee Schedule
Table 3-7. 2040 Estimated Capital Requirements '
Table 3-8. Fee Comparisons.........
2 3
4 5
Table 3-2
Table 3-3
Table 3-4
Table 3-5
...35
...37
...39
...40
10 11
16 16
18 19
22 24
24 25
25 26
27 40
4T
42 43

07/11/2023 Item No.14.

Table 4-1. Equivalent Standard Dwelling and New Impermeable Surface Storage Requirements and Costs...."..

Table 4-2. Capacity Requirements Examples
Table 4-3. New and Existing ESDs.........

Table 4-4. Cost per ESD with Planning Costs ........

Table 4-5, Development Impact Fee Schedule-Sewerage and Drainage Table 4-6. Fee Examp|es.............

Table 4-7. 2040 Sewer Improvement Costs and Revenue at Buildout Table 4-8. Vacant Acres and Impervious Surface..'..

Table 4-9. Fee Comparisons
Table 5-1. New Growth by Acreage, Residential Units, and Nonresidential Square Feet .....-....

Table 5-2. Existing Assets
Table 5-3. System Value per Acre by Basin Type
Table 5-4. Weighted Average Impermeable Surface Coefficient ..

Table 5-5. System Value per Impervious Acre and
Square Foot by Basin TyPe.

Table 5-6. Fee per Impervious Square Foot by Basin Type Table 5-7. Pumped Basins Zone Fee Calculation by Land Use per Gross Developable Acre and Square Foot.........

Table 5-8. Gravity Basins Zone Fee Calculation by Land Use per Gross Developable Acre and Square Foot ....""'
Table 5-9. Proportional Shares by Basin Type for Shared Projects"."'.

Table 5-10. Fee Comparisons ....,
..........51
..........52
.......... 53
E?,......... JJ
......,...54
.......... 55
..........55
.............. 56
..............57
.65
.66
.67
.68
............. 69
.............70
7L
72 73
74

07/11/2023 Item No.14.

List of Figures
Figure 2-1. Water System Boundaries and Key System and
Geographic Characteristics...........

Figure 3-1. Separated Sewer System Utility Boundaries and Key System and Geographic Characteristics
Figure 4-1. Combined Sewer System Utility Boundaries and Key System and Geographic Characteristics
Figure 5-1. Storm Drainage System Utility Boundaries and Key System and Geographic Characteristics
......15
33 49
64

07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023

1. Executive Summary
Introduction and Background
In 2011 and 2019, the City of Sacramento (City) Department of Utilities (DOU) prepared Development Impact Fee (DIF) programs using consultants Wildan Financial Services and NBS, respectively. These programs addressed methodologies, costs, maximum justifiable fees, and legal compliance to serve new development in each of the four utility systems administered by DOU: Water, Separated Sewer, Combined Sewer, and Storm Drainage. For a variety of reasons, these efforts were not implemented. In 2022, DOU engaged Economic & Planning Systems, Inc, (EPS) to refresh these efforts in their entirety.

Establishing impact fees requires the identification of the proportional share of improvement costs for current and future customers for existing and planned capital improvements. This measurement of equity, followed with the implementation of the maximum justifiable fees, assures that rate payers do not subsidize new growth and vice versa. With these basic considerations, discussed in general below and in detail in later chapters and supporting appendices, are the data elements, methodologies, and considerations used to determine proportional shares, funding requirements, and impact fees for each of the four utility systems.

Accompanying each section is the required structure and focus of a Nexus Study under the State of California's Mitigation Fee Act (CA Government Code Section 66000 and following), which prescribes the means by which public agencies may impose and adopt development impact fees'
The remainder of this section covers the following topics:
o 2O4O General Plan Linkage
o Impact Fee Methodology, Types, and Limits
o Infrastructure Needs, Facility Standards, Level of Service, and Deficiencies . Standard Cost Adjustment Methodology
r Systemwide versus Special Benefit
r Nexus Requirements
o Summary of Findings
. Organization of the Report
This section will be followed by chapters for each,utility system 1Economic & Planning Systems, Inc. (EPS) Page 137
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
2O4O General Plan Linkage
The current timing of the DIF effort coincides with that of the City's 2040 General Plan Update. The parcel-specific Housing and Employment projections through the 2040 planning horizon are used to establish the likely demand for utility services for this period. Importantly, projected development in the 2040 General Plan is for the period 2OL6-2040 for employment and 2077-2040 for housing. This report adjusts these projections by accounting for development that has occurred through April2022 as evidenced by completed building permits. The projections in this study are for the period 2022-2040 or 2023-2040, depending on what is being projected. Also of note is that the Water Master Plan, currently in process by DOU, draws on the same 2040 Master Plan Update projections.

The projections of new and existing demand vary by the geographic area served by each system and, in the Separated Sewer System and the Storm Drainage System, by each subbasin. Only the Water System is citywide. The citywide Housing and Employment projections used in this report are as shown on Table 1-1.

Table 1-1. Housing by Type and Employment
2O4O General Plan
2017 American
Gommunity
Survey
General Plan
2O4O Net
New Growth 2040 Totals
As of
Aprll 2O22
Units
Single Family Detached
Single Family Attached
Multifamily
Total Housing Units
LL7,57O
12,900
64,300
194,8OO
2015 Estimated
7rB,67O
13,300
70,600
2O2t57O
1 1,900
8,700
40,600
61,200
130,570
22,L00
1 1 1,200
263,87O
Employment
As of April
2022
2O4O New
Employment 2O4O Totals
City of Sacramento 300,067 3O7,OL9 69,660 376,679
Sources: City of Sacramento Community Development Department and EPS Exec_1 Importantly, much of the new development is projected for parcels with existing development. These parcels will be developed more intensively. Any reductions in employment or housing caused by this intensification are deducted from the protected growth. The projection is net growth.

The projections for each utility system and basin are provided in each relevant section and in the appendices of this report.
2Economic & Planning Systems, Inc. (EPS) Page 138
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
Housing by type and employment by standard industry classifications (SICs)1 are used to estimate water demand and sewer and drainage capacity requirements.

Housing type and employment by the SICs are associated with land use types. For nonresidential propefties, employment by land use establishes a square footage requirement for new employees. The conversion factors are included as Appendix A-1. With square footage values and housing unit data associated with land use types, there are standard and customary measures of demand by land use for all utility systems in this report. Also, the location data in the General Plan projection is an important determinant of demand. Location determines the service received, as well as basin location and parcel size, all of which are important drivers of demand. All of these demand indicators for each service are as shown on Table 1-2.

Table t-2.2O4O General Plan Projection Data and Utility Demand Indicator Utility System 2O4O General Plan Projection Demand Indicator vvater
Separated
Sewer
Housing Units and Commercial Square
Feet by Land-Use TyPe
Basin, Housing Units and Commercial
Square Feet by Land-Use TyPe
Equivalent Meter (EM)
Equivalent Standard Dwelling (ESD)
Equivalent Standard Dwelling (ESD)
New Impermeable Square Feet
New Impermeable Square Feet
Combined Sewer Housing Units and Commercial Square
(Sewer) Feet bY Land-Use TYPe
Combined Sewer Parcel Size, Housing Units and
(Drainage) Commercial Square Feet
Basin, Parcel Size, Housing Units and
storm Drainage commercial square Feet
Sources: DOU, City of Sacramento Community Development Department and EPS Exec_2 Each demand indicator has demand factors that adjust by the expected capacity requirement of a land-use type or by the measured new impermeable suface.

In the Water System, the Separated Sewer System, and the sewer service of the Combined Sewer System, the factors used (EMs and ESDs) adjust by land use from a base of 1 for the typical requirements of single-family detached dwellings for the service received. The Storm Drainage System and the drainage aspect of the Combined Sewer System use new impermeable surface as the demand indicator. The impermeable surface demand indicator is always site-specific to actual, measured new impermeable surfaces. An illustration of the demand indicators with examples of some of the associated demand factors is shown in Table 1-3.
1 North American Industry Classification System, OMB 2022. 3Economic & Planning Systems, Inc. (EPS) Page 139
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
Table 1-3. Demand Indicators and Factors by Utility System Demand Factors
Demand
Indicator
EM
ESD
ESD
New
Impermeable
Surface
New
Impermeable
Surface
Single Family
Detached
Dwelling
l0,O0O Square
Foot Office

3.2 3.3
Utility System
Water
Separated Sewer
Combined Sewer
(Sewer)
Combined Sewer
(Drainage)
Storm Drainage
1 1

3.3 Site Specific Site Specific
Site Specific Site Specific
1 Sources: DOU and EPS Exec_3
All of the demand factors for all land uses are discussed for each utility in the chapters that follow.

In general, all of the demand factors, applied to all current and future land uses, measure the existing and future capacity requirements of all systems. These requirements are shared between current and future development in proportion to the demands placed by current and future development'
Impact Fee Methodology, Types, and Lamits
The Buy-In and Incremental Approaches
Improvement costs for which a proportionate share can be determined include both existing and future improvements^ A new water connection, for example, is benefitting from all of the past investment made by existing rate payers to acquire, produce, and deliver water. The current value of those assets is an investment value, or cost/ in which new development should participate. A future improvement to increase water production capacity would be a responsibility of new growth if that capacity is not also required to improve an existing capacity deficiency, in which case, a shared responsibility would be required.

The two types of improvement costs and the proportional share considerations they involve describe two different impact fee methodologies: the Buy-ln approach and the Incremental Cost approach. The Buy-In approach determines the value of current assets and allocates on a reasonable-relationship basis a 4Economic & Planning Systems, Inc. (EPS) Page 140
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
proportionate share of the assets new growth will use. For example, the basis used in this report for the Water System is the total future water Equivalent Meters, which vary by land use as a size difference and is a reasonable measure of the demand requirement. The new growth percentage share of those meters by land use is the allocation mechanism for sharing existing facility costs.

The Incremental approach determines the planned infrastructure costs necessary to provide adequate levels and standards of service to current and new customers. Proportionate shares are typically an engineering determination of who benefits. These shares can be determined by the percentage approach used in the Buy-In approach, if that is reasonable. This, in fact, is the approach used in some of the future capital projects in the Water System. Other projects are assigned a specific percentage based on project-specific benefit. The Water System model allocates some of its projects in this manner. The Separated and the Combined Sewer Systems allocate all future capital projects directly to new growth because the identified projects are required to create the storage capacity necessary to accommodate new growth.

A simple matrix of the impact fee methodologies used in this repoft is shown on Table 1-4.

Table 1-4. Impact Fee Methodology by Utility System
Utility System
Water
Separated Sewer
Combined Sewer (Sewer)
Combined Sewer
(Drainage)
Methodo looies
Buy In Incremental
Incremental
Incremental
Incremental
Storm Drainage Buy In
Source: EPS Exec_4
The Limits of Impact Fee Methodologies and the Need for Regular Updates The methodology used, whether the Buy-In approach, the Incremental approach, or a combination (known as the Combined approach) is determined by data availability, feasibility, and management discretion. These factors define the scope, type, and limits of the impact fee methodology' There are, for example, substantial existing assets in the Combined Sewer System with significant current value. However, a Buy-In approach is not being used because of the difficultly in valuing these assets or their replacement cost. Some of the assets are more than 100 years old. The service area is also highly developed with complex underground infrastructure that is not always well documented. As a result, actual 5Economic & Planning Systems, Inc. (EPS) Page 141
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
replacement costs on a systemwide basis cannot be reasonably estimated. In this circumstance, the existing Combined Sewer assets are improved through projects on an as-needed basis with other funding means, including with development or other agreements, bond financing, revolving funds, lines of credit/ or other rate- based funding.

The limitations imposed by the condition and amount of information regarding existing infrastructure largely determine the methodologies that can be used.

These considerations are just one element in the careful construction of a development impact fee program, which requires scrupulous attention to the substantive and procedural requirements of the Mitigation Fee Act.

Methodologies are also limited by constantly changing circumstances in actual growth, cost inflation, and other changes. Impact fees are calculated assuming a level of demand growth that almost always will be different than that projected.

As discussed further below, the infrastructure costs in this report are based on January 2022 dollars, which will automatically adjust annually on an index basis.

However, that mechanism is rarely adequate in matching actual costs, which cannot be known with precision without actual construction. Indexes are also lagging indicators, whereas construction contracts are real-time. For these and other reasons, actual costs rarely match predicted costs. Finally, the need for a project can change as service priorities and technologies adapt. The reality of these circumstances underscores the importance of regular updates that account for actual project costs and reassess planned projects, growth demands, and readjusts impact fees as appropriate. State law requires updates every 8 years.

The complexity and issues involved in the impact fee programs in this report may indicate updates on a much more frequent basis.

Infrastructure Needs, Facility Standards, Level of Service, and Deficiencies
All infrastructure in this report is identified and prioritized under operating standards that take one, or both, of twO forms: "standards of Service" or "level of service", Standards of service refer to adopted policies in law or professional practice that are either in place for a particular service or are intended to be.

Level of service refers to the actual service benefits in place. When the benefits received are less than the standards of service, a deficiency exists.

As mentioned above, new development cannot be required to fund deficiencies for existing customers. However, deficiencies in facilities that serve both new and existing customers can be split on a proportional share basis, In these instances, the level of service is, and must be, improved for all customers. 6Economic & Planning Systems, Inc. (EPS) Page 142
07/11/2023 Item No.14.
a
a
Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
In most instances in this report the planned capital projects have been identified either to maintain existing levels of service as growth occurs or to not perpetuate deficiencies. Utility services are unique in that new customers create a direct, immediate impact on the capacity requirements of the service being provided.

There must be sufficient capacity in these systems to provide a consistent level of service for all customers at the appropriate service standard. All projects on which impact fees are calculated in this report are designed to address deficiencies or capacity improvements that are shared or new capacity exclusively for new development.

Standard Cost Adjustment Methodology
Throughout this report, dollar values are stated in January 2022 dollars for all existing system assets values, for all estimates of future capital costs, and for all fee calculations. The adjustment methodology is a simple average of two widely used Construction Cost Indexes (CCIs) published by the Engineering News-Record (ENR):

ENR-CCI for San Francisco as of January.

ENR-CCI 20 California Cities Average as of January
The use of this method dampens price spikes in any one city, although San Francisco is given more weight because its economics have a significant influence on the City due to its size and proximity.

Annual Adjustment
Any adopted development impact fees will adjust annually on July 1 in accordance with the methodology.

Systemwide Versus Special Benefit
Whether directed at existing deficiencies or capacity improvements for new development, all projects in this report also create systemwide capacities. Specific development projects required to extend water distribution lines or sewer collection lines or to install self-contained drainage systems are required to self- fund these improvements.

Nexus Requirements
The purpose of a Nexus Study is to establish the legally required nexus (or reasonable relationship) between projected new residential and nonresidential development in the City through General Plan buildout and the capital facilities that will be required to serve that new development'
7Economic & Planning Systems, Inc. (EPS) Page 143
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
The nexus requirements for imposing development impact fees were established under Assembly Bill (AB) 1600 legislation, as codified by the Mitigation Fee Act (the Act; California Government Code section 66000 and following). The Act sets forth the procedural requirements for establishing and collecting development impact fees. These procedures require that "the impact fee advances a legitimate state interest, that a proper nexus between the impacts caused by the development and the condition which advances the governmental interest has been demonstrated".2
Section 66001 of the Act sPecifies
(a) In any action establishing, increasing, or imposing a fee as a condition of approval of a development project by a local agency, the local agency shall do all of the following:
(1) Identify the purpose of the fee.
(2) Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in Section 65403 or 66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the public facilities for which the fee is charged.
(3) Determine how there is a reasonable relationship between the fee's use and the type of development project on which the fee is imposed. (4) Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.
(b) In any action imposing a fee as a condition of approval of a development project by a local agency, the local agency shall determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.

Important for water and sewer impact fees, Section 66013 of the Act applies the principles of Section 66001 to water and sewer connection fees. Section 66013(a) states, in part, "when a local agency imposes fees for water connections or sewer connections, or imposes capacity charges, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed."The Nexus Study sections in the Water, Separated Sewer, and 2 n Short Overview of Development Impact Fees, League of California Cities, 2003.

BEconomic & Planning Systems, Inc. (EPS) Page 144
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
Combined Sewer chapters will address the nexus requirements in Section 66013 terms.

In addition, in 2027, AB 602 amended the requirements for drainage services by creating a "standards and practices" section to the Act, codified as Government Code Section 66016.5. This provision is both declaratory of previously existing law and added certain new requirements. A new provision that pertains to this report requires that a nexus study "shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development" t66016.5(a)(5)(A)1, and "large jurisdictions shall adopt a capital improvement plan as a part of the nexus study" [66016.5(a)(6)]' Water and sewer systems are specifically exempt from the requirements of Section 66016.5. Storm drainage, however, is subject to the provisions but may exercise an exemption to the square footage allocation method if the nexus study makes findings that include all of these:
r An explanation as to why square footage is not an appropriate metric to calculate fees imposed on a housing development project' r An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.
o That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

The nexus findings of the Storm Drainage chapter will include these exemption requirements for the Storm Drainage System and the drainage portion of the Combined Sewer System. In both cases, the standard and customary method to establish a reasonable relationship between the fee and the burden to development is focused on impermeable surfaces. This allocation methodology supports equity among development of any size, density and land use' Summary of Findings
presented below are high-level comparative summaries of all proposed fees and the fees of surrounding jurisdictions for single-family, retail, and office land uses on a per unit and per acre basis. For the per unit comparison, single-family dwellings are presented on Table 1-5a, Retail land uses on Table 1-5b, and Office land uses on Table 1-5c. For the per acre comparisons, single-family dwellings are presented on Table 1-6a, Retail land uses on Table 1-6b, and Office land uses on Table 1-6c. Companion charts to these tables are provided in Appendix A-2. For each utility, all land uses and all fees are discussed in the chapters that follow, along with comparisons with surrounding jurisdictions. 9Economic & Planning Systems, Inc. (EPS) Page 145
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 73,2023
Table 1-5. Summary of Water, Sewer, and Storm Drainage Development Impact Fees per Unit-Single-Family' Retail' and Office
Table 1-5a - Single Family
Per Unit Fees
Jurisdiction
Sinsle Familv Der Dwellino Llnit
Water
Local
Sewer
Regional
Sewer Drainage Totals
Sacramento - Combined Sewer System [1]
Sacramento - Separated Sewer and Gravity Drainage
Sacramento - Separated Sewer and Pumped Drainage
Sacramento - SASD and Gravity Drainage
Sacramento - SASD and Pumped Drainage
Sacramento - All Areas Average [21
Sacramento County - Uninc.

Folsom
Roseville
West Sacramento
Woodland
Average Excluding sacramento [21
$13,493
$13.493
$13.493
$13,493
$13,493
$13,493
$7,63s
$3,s6s
$3,s6s
$3,194
$3,194
14,23r
$3,194
$1,O73
$447
$7,01 1
$7,t25
13,77o
$6,479
$6,479
$6,479
$6,479
$6,479
s6,479
$s30
$447
$s3o
$847
$588
$27,607
$24,067
$24,384
$23,696
$24,013
i24,7s3
$19,s3s
$4,647
$7,366
$18,006
$5,770
$11,06s
$6,479
$6,479
$9,664
$6,479
$2,994
$ 1,037
$279
$6,18s
$1,362
i2,37t
$32,202
$13,236
$t7,756
$37,681
$t4,2s7
+23,l)26
8o/o
i7,27s
Sacramento +/- Percent of Comparative Entities 22o/o l2olo -Ll,o/o -7to/o Source: EPS
Notes:
[1] Includes Drainage under Local Sewer.
[2] Averages exclude cities where the services are not provided Table 1-5b - Retail
Exec 5a
Per Unit Fees
.'urisdiction
Retail Fees per 1,OOO Building Square Feet [11
Water
Local
Sewer
Regional
Sewer Drainage Totals
Sacramento - Combined Sewer System [2]
Sacramento - Separated Sewer and Gravity Drainage
Sacramento - Separated Sewer and Pumped Drainage
Sacramento - SASD and Gravity Drainage
Sacramento - SASD and Pumped Drainage
Sacramento - All Areas Average [31
Sacramento County - Uninc.

Folsom
Roseville
West Sacramento
Woodland
Average Excluding Sacramento [3]
Sacramento +/- Percent of Comparative Entities
$7,930
$7,930
$7,930
$7,930
$7,930
$7,93O
$4,O47
$1,889
$1,889
$2,0s3
$2,0s3
$2,386
$1,296
$1,296
$r,296
iI,296
$L,296
$1,296
$543
$867
$s43
$867
$705
$2,465
$s79
$303
$5,446
$ 1,400
$2,039
$L3,272
$ 1 1,658
$ 1 1,982
$ 11,821
$r2,L46
$t2,t76
$22,2O9
$7,380
$r4,97s
$20,36s
$7,699
1L4,525
$16,394
$s,1s0
$11",3O2
$ 1 1,545
$3.39 1
$9,s64
$2,0s3
$3 16
$149
$2,078
$2,908
$1,so1
$1,296
$1,296
$3,22t
9L,296
-L7olo 59o/o
1r,777
-27olo -65o/o -L6olo
Source: EpS Exec_sb
Notes:
[1] Most juridictions assess fees on demand volume for each particular site and land use. The square-footage basis used for Retail and Office uses is for comparative purposes only for all fees across all iurisdictions and is based on a 1-acre parcel with a structure covering 25 percent of the parcel (i.e., a F.A.R of .25) for Retail and 35 percent for Office.
[2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided.

Economic & Planning Systems, Inc, (EPS) 10Page 146
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
Table 1-5c - office
Per Unit Fees
turisdiction
Office Fees Der 1,OOO Buildi no Sduare Feet t1 l
Water
Local
Sewer
Regional
Sewer Drainage Totals
Sacramento - Combined Sewer System [2]
Sacramento - Separated Sewer and Gravity Drainage
Sacramento - Separated Sewer and Pumped Drainage
Sacramento - SASD and Gravity Drainage
Sacramento - SASD and Pumped Drainage
Sacramento - All Areas Average [3]
Sacramento County - Uninc.

Folsom
Roseville
west Sacramento
Woodland
Average Excluding Sacramento [3I
Sacramento +/- Percent of Comparative Entities
$1,777
-L7o/o 38o/o -27o/o -670/o -L8o/o
$s,664
$s,664
$s,664
$s,664
$s,664
$s,664
$11,710
$3,7O7
$8,073
$8,246
$2,422
$6,832
$2,s20
$L,L76
$t,L76
$L,467
$1,467
$1,561
$L,467
$226
$149
$2,078
$r,744
$1,133
$1,296
$1,296
$1,296
$1,296
$ 1,296
$1,296
$1,296
$361
$s76
$361
$s76
1468
$t,76L
$413
$216
$3,61 1
$1,000
$1,400
$9,480
$8,497
$8,712
$8,787
$9,003
$8,896
$ 16,233
#s,642
$ 1 1,659
$ls,232
$s,166
s1o,786
$L,296
$3,22t
iL,296
Source: EPS
Notes:

Exec_5c
[1] Most juridictions assess fees on demand volume for each particular site and land use. The square-footage basis used for Retail and Office uses is for comparative purposes only for all fees across all jurisdictions and is based on a 1-acre parcel with a structure covering 25 percent of the parcel (i.e., a F.A.R of .25) for Retail and 35 percent for Office,
[2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided.

Table 1-6. Summary of Water, Sewer, and Storm Drainage Development Impact Fees per Acre-Single-Family, Retail' and Office
Table 1-6a - Single Family
Per Acre Fees sinole Familv Fees at 7 Units Der Acre
Water
Local
Sewer
Regional
Sewer Drainage Totals
Iurisdiction
Sacramento - Combined Sewer System [1]
Sacramento - Separated Sewer and Gravity Drainage
Sacramento - Separated Sewer and Pumped Drainage
Sacramento - SASD and Gravity Drainage
Sacramento - SASD and Pumped Drainage
Sacramento - All Areas Average [2]
Sacramento County - Uninc.

Folsom
Roseville
west Sacramento
Woodland
Average Excluding Sacramento [21
Sacramento +/- Percent of Comparative Entities
$50,927
22o/o
$94,450
$94,4s0
$94,450
$94,450
$94,450
$94,4s0
$L36,745
$32,529
$5 1,56 1
$126,O42
$40,390
i77,453
$53,448
$24,954
$24,954
$22,360
$22,360
$29,615
$22,360
i7,57r
$3,t29
$49,O77
$49,875
$25,390
$4s,3s3
$4s,353
$45.353
$45,353
$45,3s3
$4s,3s3
$45,353
$45,3s3
$67,648
$4s,353
$3,s08
$s,725
$3,s08
$5,725
$4,516
$20,9s9
$7,259
$ 1,9s3
$43,294
$9,s31
$16,s99
$193,251
$168,265
$170,482
$165,671
$167,889
9L73,LL2
$225,4L7
$92,652
$r24,29t
$263,766
$99,796
$161,184
7olo
Economic & Planning Systems, Inc. (EPS)
l2o/o -LLo/o -72o/o
11 Source: EPS
Notes:
[1] Includes Drainage under Local Sewer.
[2] Averages exclude cities where the services are not provided.

Exec 6a

07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
Table 1-6b - Retail
Per Acre Fees Retail Fees Acre rr'l
Water
Local
Sewer
Regional
Sewer Drainage Totals
Jurisdiction
Sacramento - Combined Sewer System [2]
Sacramento - Separated Sewer and Gravity Drainage
Sacramento - Separated Sewer and Pumped Drainage
Sacramento - SASD and Gravity Drainage
Sacramento - SASD and Pumped Drainage
Sacramento - All Areas Average [3]
Sacramento County - Uninc.

Folsom
Roseville
West Sacramento
Woodland
Average Excluding sacramento [3]
Sacramento +/- Percent of Comparative Entities
$86.3s5
$86,3ss
$86,355
$86,3s s
$86,3ss
$86,3ss
$178,s36
$s6, s 16
$L23,077
$L25,723
$36,s26
$104,156
-L7olo
$44,069
920,s75
$2O,575
$22,360
$22,360
$25,988
$22,360
$3,438
$1,623
$22,629
$31,668
+16,344
$L4,tLL
$14,111
$14,1 1 1
$t4,Itt
$14,111
$14,111
$s, s86
$9,1 18
$s,s86
$9,1 18
97,3s2
$26,844
$6,302
$3,2e8
$s9,309
$1s,248
l22,2OO
$ 144,535
$L26,628
$ 130,159
$r28,4t2
$t3t,944
$132,336
$241,851
$80,367
$ 163,078
$22L,773
$83.842
$158,182
$14,1 1 1
$14,111
$3s,080
$14,111
$19,3s4
59o/o -27o/o -670/o -L6o/o
Source: EPs
Notes:
[1] Most juridictions assess fees on demand volume for each particular site and land use. The acreage basis is for comparative purposes only for all fees across all jurisdictions and is based on a 1-acre parcel wlth a structure covering 25 percent of the parcel (i.e., a F'A.R of '25)' [2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided' Table 1-6c - Office
Exec_6b
Per Acre Fees office Fees per Acre [1I
Water
Local
Sewer
Regional
Sewer Drainage Totals
lurisdiction
Sacramento - combined Sewer System [2]
Sacramento - Separated Sewer and Gravity Drainage
Sacramento - Separated Sewer and Pumped Drainage
Sacramento - SASD and Gravity Drainage
Sacramento - SASD and Pumped Drainage
Sacramento - All Areas Average [3]
Sacramento County - Uninc.

Folsom
Roseville
West Sacramento
Woodland
Average Excluding sacramento [31
$86,3ss
$86,355
$86,3s5
$86,35 5
$86,3ss
$86,3ss
$ 178,536
$s6,5 16
$L23,O77
iL25,723
$36,926
$104,156
$38,415
$t7,935
$ 17,93s
$22,360
$22.360
$23,801
$22,360
$3,438
$2,272
$3 1,681
$26,s89
sL7,26A
$ 19,756
$19,756
$19,756
$19,756
$19,756
$19,7s6
$s,197
$8,482
$5,197
$8,482
$6,839
$26,a44
$6,302
$3,298
$ss,061
$1s,248
$21,351
$r44,525
$r29,243
$L32,527
$ 133,667
$ 136,9s2
$13s,383
i247,496
$86,012
$L77,759
$232,220
$78,763
$164,450
$19,756
$19,7s6
$49,1L2
$ 19,756
Sacramento +/- Percent of ComParative Entities -L7olo 38o/o 127,O95
-27o/o -680/o -18o/o
Source: EPS
Notes:
[1] Most juridictions assess fees on demand volume for each particular site and land use. The acreage basis is for comparative purposes only for all fees across all jurisdictions and is based on a l-acre parcel with a structure covering 35 percent of the parcel (i.e., a F.A.R of .35)' [2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided.

Exec 6c
Economic & Planning Systems, Inc. (EPS) L2Page 148
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
There are many features to these comparisons that will be touched on in the chapters that follow. In the above tables, two points of Sacramento's fee structure stand out in contrast to comparable jurisdictions. Sacramento has extraordinarily high sewer fees in its Combined Sewer System Utility. This is due to the high cost of managing a sewer system that mixes wastewater and stormwater runoff. The other "outlier," in contrast, is the drainage fee set. Drainage feeS are very low fOr reasons to be discussed in the Storm Drainage System Utility chapter. This is in light of the fact that the hydrology of Sacramento is very challenging, complex, and expensive to drain because of the flat, low-lying, delta topography.

Also significant is the comparison set used. The Water System Utility uses a broader set that is likely a fairer comparison for this system. This set is discussed in that chapter.

Org anization of Report
This report is divided into 5 chapters and 5 appendices:
o Chapter 1 includes this Executive Summary.

Chapter 2 details the Water System Development Impact Fee, Methodology, and Nexus Findings.

Ghapter 3 details the Separated Sewer System Development Impact Fee, Methodology, and Nexus Findings.

Chapter 4 details the Combined Sewer System Development Impact Fee, Methodology, and Nexus Findings.

Chapter 5 details the Storm Drainage System Development Impact Fee, Methodology, and Nexus Findings.

Appendix A provides supporting detail and documentation for the Executive Summary.

Appendix B provides supporting detail and documentation for the Water System Utility.

Appendix C provides supporting detail and documentation for the Separated Sewer System Utility.

Appendix D provides supporting detail and documentation for the Combined Sewer System Utility.

Appendix E provides supporting detail and documentation for the Storm Drainage System Utility.
a
a
a
a
a
Economic & Planning Systems, Inc. (EPS) 13Page 149
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023

2. The Water System Utility
Introduction and DescriPtion
The City's Water System is maintained and operated by DOU and implements comprehensive drinking water programs that focus on the supply, production, storage, and distribution of high-quality drinking water; on system maintenance and improvements; and on water conservation. The Water System produces more than 25 billion gallons of drinking water annually acquired through the 25,000-square-mile watersheds of the American and Sacramento Rivers' DOU maintains 2 water treatment plants, 28 active ground water wells, storage facilities, and more than 1,500 miles of water mains. DOU operates under legal and policy mandates to ensure that all delivered water meets or exceeds all state and federal drinking water standards. Also critical in these times of drought is demand management by way of efforts to increase water efficiency throughout the City with education, incentives, resources, and information for home and business owners. Further, detailed information on the Water System is available online at https : //www.cityofsacramento.oro/Uti lities/Water' The Water System currently serves a resident population of 525,000 in approximately 203,000 housing units. The total population served is estimated to be up to 25 percent higher on weekdays because of commercial and government employment of surrounding-area residents. Total employment is approximately 307,000 in 83 million square feet of space. All water services to this residential and nonresidential population are provided through 742,000 metered accounts.

The Water System service area is generally contiguous with the incorporated boundaries of the City. The map of the service area is shown in Figure 2-1' Economic & Planning Systems, Inc. (EPS) L4Page 150
07/11/2023 Item No.14.

Figure 2-1. Water System Boundaries and Key System and
Geogra Phic Cha racteristics
Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
I
It
:r
]L
j
I
,]
tl
I
I
I
WAlER IT.IAINS I2INCHAND I.ARGER
-\N
E5ACPAHII{]O
Economic & Planning Systems, Inc. (EPS) 15Page 151
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
Growth, D€mand, and Allocations
By 2040, the residential unit growth in the Water System service area is expected to change as shown on Table 2-1.

Table 2-1. Housing Units by Type
2040 General Plan

2.)a7
American
Community
Survey
General
Plan 2O4O
As of Net New 2O4O
April 2O22 Growth Totals [U o/o Change New Share
Units
Single Family Detached
Single Family Attached
Multifamily
Total Housing Units
lr7,57O
t2,900
64,300
194,8O0
1 18,670
13,300
70,600
2O2,57O
1 1,900
8,700
40,600
61,2OO
130,570
22,LOO
1 1 1,200
263,87O

10.03o/o

66.17o/o

57.S]-o/o

30.3o/o

9.11o/o

39.37o/o

36.51olo

23.2o/o
Sources: City of Sacramento Community Development Department and EPS Note:
[1] Totals may not add because of rounding.
water_7
Housing units are projected to increase by 30.2 percent by 2040. This new growth in housing will constitute 23.2 percent of total housing units by 2040.

Residential unit growth is the best, general driver of demand for water capacity.

In a water utility, the capacity requirements are measured in Equivalent Meters (EMs), or similar. EMs are a measure of delivery volume and are indexed to the volume required of a typical single-family detached home. Meter size varies with the required delivery volume for a land use type. The current and future EM requirements are shown on Table 2-2.

Table 2-2. Equivalent Meter Proiection and new Growth Share Current
Size Count
formula a
Type
Displacement
Displacement
Displacement
Displacement
Displacement
Displacement
Turbine Class I
Turbine Class I
Turbine Class I
Turbine Class II
Turbine Class II
Turbine CIass II
5/8-i nch
3/4-inch
1-i nch

1.25-i nch
1,5-i nch
2-i nch
3-i nch
4-inch
6-inch
8-i nch
10- inch
12- i nch
Totals
L74
17A
131,5 1 1
3,910
4,357
802
698
208
tt2
18 0
t4t,96A
174
L78
13 1,51 1
U
7,820
73,942
5,6L4
8,795
5,408
6,272
7,5t2
U
t81,226
2040 New
Equivalent
Meters
f=e-c
53 54
39,797
U
2,366
4,2L9
1,699
2,66t
1,637
1,898
458
0 54,841

23.2o/o
Flow
Factor
b
Equivalent
Meters
c=a*b
unit
Increase
Percent
d
204(J
Equivalent
Meters
e=c*(d+1)

30.3o/o 227

30.3olo 232

30.3olo 171,308

30.3olo 0

30.3olo 10,186

30.3o/o f8,L62

30.3olo 7 ,313

30.3olo 11,456

30.30/o 7,045

30.3o/o I,I70

30.3o/o L,970

30.3olo 0
236,O57
New Growth Share ofTotal

1.0 1.0

1.0 IE

2.0 2t

7.0 L2.6
26,0

56.0 84.0
106.0
Source: DOU, EPS Water 2
Economic & Planning Systems, Inc. (EPS) 15Page 152
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February t3,2023
This demand profile of existing and future housing units drives the allocation of current and future shares of existing and future capacity requirements and their costs. The shares for existing system assets are determined under the Buy-In approach. Future shares are determined through the Incremental approach. These approaches are discussed in detail in the Executive Summary. The Water System is using both apProaches.

Buy-In MethodologY and Fee Per
Equivalent Meter
The Buy-In approach is used to determine existing asset shares. Existing assets that will benefit future customers (existing treatment plants, wells, and transmission lines) have been paid for by current rate payers. Future customers will "buy in" lo 23.2 percent of these assets by way of a buy-in development impact fee. The assets are depreciated and developer contributions are removed so only the remaining useful life of assets directly paid by rates is allocated.

An option exists in the determination of buy-in development impact fees to include current assets that are systemwide benefits and qualify as assets as defined under Generally Accepted Accounting Principles. These are fairly wide- ranging standards and include all buildings, equipment and improvements, land including easements, equipment, core software, rolling stock and related equipment, and even intangible assets such as franchise licenses. This allowable scope extends to all core functions (i.e., treatment plants, wells, and transmission lines) and to peripheral support functions including corporation yards and administration buildings. Although a broader suite of existing improvements would qualify, the approach used in this study is narrower. The assets included are those unambiguously used for water production, storage, and transmission. Not included are any assets that are not directly used for water system purposes, such as administration buildings or corporation yards and related equipment, all of which are indirectly used. Also not included are local distribution lines or service meters because these items benefit individual developments or parcels, instead of the system as a whole.

To value the included water assets, DOU engaged the engineering firms of West yost and Carollo to provide estimates of value for the treatment plants, storage facilities, and wells under the general guidance established by the Association for Advancement of Cost Engineering (AACE). City staff developed estimates of value for the transmission mains using essentially the same methodology. The detail of all assets and methodologies is provided in Appendix B-1' Other assets included are related to rolling stock and software, both of which have been valued from the City's accounting records'
Economic & Planning Systems, Inc. (EPS) t7Page 153
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
The summary results of the water system current asset valuation are shown on Table 2-3.

Table 2-3. Existing Assets
Replacement Cost Depreciation
Current System
ValueSummary [1]
Category
Transmission Mains
Wells [2]
Reservoirs
Treatment Plants
Sacramento River
E. A, Fairbairn
Software
Vehicles
$569,160,10 1
$156,875,500
$361,600,000
$ 1,218,300,000
$ 1,079,100,000
$3,491,478
$10,102,308
$334,676,965
$141,954,001
$234,500,000
$468,000,000
$597,100,000
$1,088,462
$5,444,536
Subtotal
$234,483,136
$r4,92L,499
$ 127,100,000
$750,300,000
$482,000,000
$2,403,016
$4,657,772
$ 1,615,865,423
($232,747,747)
($2,972,534)
Less Outstanding Principal Debt
Less Developer Contributions
Totals $3,398,629,387 $L,782,763t964 $1,38O,745,L42
Sources: Carollo, West Yost, DOU, City of Sacramento Water-3 Note:
[1] The full detail of the estimates and methodologies are provided in Appendix B-1. [2] The total Current System Value excludes Wells 165, 166 and 167 on the West Yost valuation analysis because these wells are not in service, Each component of an asset has been depreciated in accordance with the standard useful life of that component. Treatment plants, for example, have many components with different useful lives. The current value of each component is determined in one of two ways, depending on the circumstances:
a
a
If the original cost and installation date are available, the original cost is depreciated on a straight-line basis for years in service. The remaining value is then adjusted to 2022 dollars using the standard cost adjustment methodology, which is defined in the Executive Summary chapter.

If the original cost is not available but the installation date is known, the replacement cost is estimated in 2022 dollars using the AACE protocols. This value is then depreciated for years in service.

In either case of valuing, each of the components are accumulated into the summaries shown in Table 2-3. Detailed depreciation of the assets and the component depreciation standards can be found in Appendix B-1.

Also, outstanding principal debt has been included as a deduction to asset value because the underlying assets are in service but have not been paid for by current rate payers. All existing and future customers will pay for these debt-financed assets through future rates. Deductions are also made for developer contributions Economic & Planning Systems, Inc. (EPS) 18Page 154
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
because these assets were not directly funded by rate payers through rates.

The asset values for developer contributions have been depreciated for time in service.

The fee per EM calculation for the proportional share for new growth is shown in Table 2-4.

Iable 2-4. Equivalent Meter Buy-In Fee
Current System
2022Value
New Growth Share o/o
New Growth Share
Future Equivalent Meters
Fee per Equivalent Meter
$1,380,745,r42

23.200/o
$320,332,873
54,84L
$5,841
Source: DOU, EPS Water 4
The fee will be used for a proportional share of capital improvements benefitting new growth. The projects and the process by which they are established is described in the next section under Capital Improvement Projects (CIPs)' The Buy-In fee is combined with the Incremental Fee, discussed below, for the total base Water System Development Impact Fee per EM. The calculation combining the two fees is shown on Table 2-8 later in this chapter. The allocation of the combined fee per EM by meter size is presented in Table 2-9, also later in this chapter.

Incremental Methodology and Fee per
Equivalent Meter
Future asset requirements are allocated through engineering determinations of proportional demands. If an asset has an equal demand from, or benefit to, all users, the allocation percentage for in-common facilities (23.2) is used. If the asset benefits growth more than existing customers, or vice versa, the allocation is adjusted accordingly. The capital improvement plan presented below details future projects and the specific allocation used.

Capital Improvement Program
DOU maintains Capital Improvement Program (CIP) plans for the Water System.

The CIP includes projects that are expected to be complete from within the next year to projects expected to be programmed for implementation as far into the future as 30 years. Because the planning horizon for the purpose of this study is Economic & Planning Systems, Inc. (EPS) 19Page 155
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
2040, or 18 years, anticipated annual expenditures after this date are not included.

The CIP draws on documents and processes as follows:
r Updated facility plans and the related short-term projects adopted through the annual budget process.
r The Water Supply Master Plan of 2013 and an update currently underway.

Both plans are consistent with the demand projections in the 2035 General Plan Update and 2O4O General Plan, respectively'
r CIps and projects to implement the Master Plans and adapt the water system to future demand requirements and best practices'
r Other facility cost estimates and updated assessments of facility needs and costs as of September 2022. Related projects are incorporated into the formal CIP as appropriate.

In all aspects of the CIP planning and implementation process, the City is required by state law to provide safe, clean, affordable, and accessible water. Long-range water demand projections have identified a potential shortage of water treatment capacity within approximately the next 18 years. To prepare for and meet projected demand, the City needs to develop additional capacity, both in terms of quantity and quality.

To achieve the objectives of state law efficiently and effectively, a key methodology used by DOU is the Water+ Programmatic Approach' The elements of this program guide the identification of system needs and subsequent actions and Projects:
r Align the City's water treatment capacity with the City's continued growth and economic develoPment.
r Protect the City's drinking water against anticipated climate change impacts and other risks.
o Maintain water supply resiliency through conjunctive use of surface and groundwater supplies.
r Expand the community's confidence in its affordable, safe, clean, and reliable drinking water.
. Engage the community in support of long-range planning for drinking water infrastructure.
o Equitably balance funding needs through development impact fees, customer water rates, grants, and loans.

Economic & Planning Systems, Inc. (EPS) 20Page 156
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
The CIP consists of 21 project types, or cost centers, for multiple individual projects of the same type, and totals $1,922,485,841. All proposed projects, costs, allocations, and descriptions are included in AppendixB'2. Major projects are discussed below.

Resiliency Projects, as a category 6f projects, are increasingly important because of changing regulations, continuing climate change, wildfires in the watershed, river pollution and algal toxins, among other risks impacting the City's ability to reliably deliver high-quality drinking water. Development and implementation of Resiliency Projects will help protect the City's water supply from these risks.

For the purposes of this study, Resiliency Projects address demand common to all customers; thus, costs will be shared proportionately:
a Ozone treatment capability in both water treatment plants to implement available technologies to enhance the capacity to mitigate risks from chemical contaminants, viruses, bacteria, and other microorganisms and to improve taste and smell. Ozone treatment will also provide for compliance with key anticipated future regulations.

Fairbairn rehabilitation to provide 100 million gallons per day (mgd) firm and 120-mgd hydrau lic capacity.

Replacement of the chlorine gas system with a safer means of chlorine disinfection.

Replacement of quicklime slaking to a delivered hydrated lime slurry to reduce on-site waste production.

Elimination of hazardous chlorine gas and lime grit at both water treatment facilities.
a
a
a
All of the Resiliency Projects have a cost of $960,684,609. The proportional share for new growth is 23.2 percent, or $222,878,829
The RiverArc Project is also a Resiliency Project, in a sense, that will provide significantly improved backup and flexibility to water sources available for existing customers, new growth, and to surrounding communities. The project will divert water through an existing water intake structure from the Sacramento River to offset water currently diverted from the American River. Reduction of draws from the American River has been identified as a potential mitigation measure for climate change impacts to water supply in the American River watershed as described in the American River Basin Plan. In 2015 and 2O2I, Folsom Reservoir levels were very close to not being able to access municipal water supply intakes.

The flow of the Sacramento River, which is many times the size of the American River, has the capacity to reduce reliance on the American River. The proposed action will provide 3O mgd of additional water supply capacity to the City.

Demand for water from new growth is estimated to require 22 mgd' Economic & Planning Systems, Inc. (EPS) 21Page 157
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
In addition, RiverArc will help facilitate the recharge of the groundwater storage basin via "direct" or "in-lieu" recharge in wet yearS for use in years when surface water supplies are depleted due to drought-like conditions and the water supply demands of the City, the region, and potentially other areas in northern California are strained. On the whole, RiverArc will better secure the ability to accommodate growth in the City and will benefit regional water suppliers, increase the sustainability of regional groundwater supplies, and provide additional environmental protection of the American River Watershed. The flexibility provided by RiverArc could allow for water to be delivered through raw water pipelines to a new regional water treatment plant, where it will be distributed through new and existing pipelines to the regional partners' The estimated cost of RiverArc is $220,000,000 for an additional 30 million gallons of capacity. All other costs related to regional River Arc partners are excluded from this report because these other costs are not attributable to new growth in the City. The portion attributable to City new growth is 22 million gallons, or 73.33 percent of the 30-million-gallon capacity. The remaining capacity, 8 million gallons, addresses demand common to all customers because of the resiliency benefits. The 8-million-gallon portion will be shared proportionately between existing development and new growth. The calculations of attributable benefits and costs are shown in Table 2-5' Table 2-5. RiverArc Capacity, Benefit, and Cost Allocation Capacity
Allocation
t1I
Proportiona!
Benefit
Allocation Cost
New Growth and Shared Allocation formula
Tota
New Growth
Existing Development
Shared
Shared Allocation
a
b=(22/30)*a
6=(8/30)xa

22.0 8.0

73.33o/o

26.67o/o
161,333,333
58,666,667
C
New Growth
Existing Development
d=c*23.2
e=c-d

1.9 6.1

23.2oo/o

76.800/o
13,6LO,667
45,056,000
New Growth and
Existing Development
Capacity and Total Cost
Allocation
+ 23.9

6.1 30.0
g=e
h=f+s=a
2O.48o/o
100.00o/o
45,O56,OOO
220,OOO,OO0
Sources: DoU, EPS
Note:
[1] In millions of gallons per day, rounded to the nearest tenth The RiverArc project is proposed for completion towards the end of this decade Water 5
Economic & Planning Systems, Inc. (EPS) 22Page 158
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February t3,2023
An alternative to the RiverArc project, termed the Sacramento River Water Treatment Plant (SRWTP), is under consideration as a substitute for allocation to new growth but is not incorporated in any of the calculations at this time' The capital project summary for the SRWTP alternative is provided in AppendixB-2' Although it involves a more complex governance option, RiverArc is the preferred alternative for allocation as it provides a potentially greater global benefit and the potential for reduced initial investment than SRWTP expansion. Essentially, the SRWTP focuses on capacity improvements. These are the major components:
r The development of an additional 75 million gallons per day (mgd) of increased capacity at the SRWTP. The 75 mgd project could be completed as one project or broken into two phases.
r capacity improvements across the water main transmission system. o The addition of a new or replacement intake structure within the Sacramento River with a facility to support the additional supply needs.

The total cost is estimated at $493.8 million, with $195.9 million allocable to new growth, compared with the $174.9 million allocable from the RiverArc project' Should the SRWTP become the priority for allocation, the Nexus Study can be amended.

A final category of capital planning and the Water+ Programmatic Approach is improvements to the distribution system at an estimated cost of $740,687,97O' These projects are also detailed in Appendix B-2. None of these projects are being allocated to the incremental portion of the Water System development impact fee. There are capacity-related projects in the distribution system improvements that could be funded with a proportional share from the Buy-In development impact fee or other sources'
A summary of all CIPs, costs, and proportional shares is shown on Table 2-6 below.

Economic & Planning Systems, Inc. (EPS) 23Page 159
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
Table 2-6. CIP Summary of Proportional Allocations and Costs Percent
nal Allocation
Cost
Projects [1] Estimated Cost
formula a
Resiliency [2] $960,684,609
RiverArc [3] $220,000,000
Distribution [4] $740,687,970
Annual Misc. [5] $L,LI3,262
Total Long-Term $t,922,485,84L
Existing
b

76.8o/o

20.5o/o
100.0%

76.8o/o

79.29o/o
New
c

23.2o/o

79.5o/o

23.2o/o
2O.7Lo/o
Existing
d=a+b
$737,8O5,78O
$45,056,000
$74O,687,970
$8s4,98s
$L,524,4O4t735
New
e=a*c
$222,878,829
$t74,944,000
$258,277
$398,O81,1O6
Sources: DOU, EPS
Notes:
[1] Excludes the Water Meter Program, all of which is allocated to Existing' [2] See Appendix B-2.
[3] From Table 2.5 and Appendix B-2.
[4] See Appendix B-2,
[5] See Appendix B-2.
[6] Totals may not agree with detailed allocations and numbers due to rounding effects Water 6
Capital Costs, Allocation, and Cost per
Equivalent Meter
All CIP Costs, the allocation of these costs to existing and future customers, and the cost per EM is shown in Table 2-7.

Table 2-7. Future Demand Shares
Deve
Totals
formula
Demand Shares
Future Assets [1]
2040 Equivalent Meters [2]
cost per Equivalent Meter
$t,922,485,84L
236,067
$8,144
$r,523,549,750
LAL,226
i8AO7
a b c=a*b d

20.7Lo/o
e=a*d
$398,081,106
54,84r
+7,259

79.29o/o
Sources: DOU, EPS
Notes:
[1] See Table 2-6.
[2] From Table 2-4
Water_7
As shown, the cost per EM for future customers is $7,259. The allocation of the per EM fee by meter size is presented in Table 2-9 on the next page.

Economic & Planning Systems, Inc. (EPS) 24Page 160
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
Water System Development Impact Fee
The cost and fee for per EM for the benefits of the existing system and the future requirements are shown on Table 2-8. Future customers will pay their share through the development impact fee.

Table 2-8. Equivalent Meter Buy-In and Future Cost Allocation Current System
Future Capital
Costs
Table 2-7Source:
2O22Value
New Growth Share o/o
New Growth Share
Future Equivalent Meters
Fee per Equivalent Meter
Table 2-4
$r,38O,745,t42

23.2oo/o
$32O,332,873
54,84L
$5,841
$t,922,485,841

20.7lo/o
$398,081,106
54,84L
$7,259
Totals
$3,303,230,982

21.7o/o
$7t8,4r3,979
54,84t
$13,1OO
Source: DOU, EPS
The total fee by meter size is shown on Table 2-9'
Table 2-9. Buy-In and Future Cost Fee Schedule for New Development Water_8
5/8-inch
3/4-inch
f-inch

1.2 5- inch

1.5-inch
2-inch
3-inch
4-inch
6-inch
8-inch
10-inch
12-inch
1,0

1.0 1.0

1.5 2.O

3.2 7.O

72.6 26.0

56.0 84.0
105.0

1.0 1.0

1.0 1.5

2.0 3.2

7.0 L2.6

26.0 56.0

84.0 106.0
Size
formula
Flow
Factor
a
Base Fee
d=axc
$ 13,100
$13,100
$13,100
$ 19,650
$26,200
$4L,920
$91,699
$165,059
$340,598
$733,595
$1,100,393
$1,388,591
w/ Admin
e=dx1.03
$ 13,493
$13,493
$13,493
$2O,239
$26,986
$43,t77
$94,450
$170,011
$350,816
$755,603
$1,133,405
$L,43O,249
Equivalent
Meters
a
Fee Per
Equivalent
Meter
c
$13,100
$13,100
$13,100
$13,100
$13,100
$13,100
$13,100
$13,100
$13,100
$13,100
$13,100
$13,100
Fee Per Meter
Sources: DOU, EPS Water 9
Economic & Planning Systems, Inc. (EPS) 25Page 161
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
Comparison with Surrounding
Communities
The comparison of the water fee with surrounding jurisdictions is shown on the following two tables. Table 2-1O shows comparative information by typical meter size for single-family residential, retail, and office uses. Table 2-11 includes the single-family land use and office and retail uses on a per 1,000 square foot basis and on a per acre basis. For both tables, complete comparative information in chart form is presented as Appendix B-3. High-level summaries for all fees in all jurisdictions, but on a narrower set of comparables for water fees, are presented in Chapter 1, the Executive Summary.

Table 2-1O. Fee Comparisons by Land Use and Meter Size
Site
Single
FamilyJurisdiction Retail Office
Typical: l-inch meter
$ 19,535
$4,647
$8,813
$7,366
$ 19,987
$L7,634
$ 18,006
$5,770
$lt,542
2, 2-inch meters
$13,493 $86,355 $86,355Sacramento
Sacramento County - Uninc.

Folsom
Orangevale
Roseville
Rocklin
Lincoln
West Sacramento
Woodland
Stockton
Average Excluding Sacramento
Sacramento +/- Percent [1]
$ 178,536
$56,5 16
$58,398
$r23,077
$3L9,792
$358,360
$r25,723
$36,926
$86,939
$ 178,536
$56,5 16
$58,398
$L23,077
$3r9,792
$368,50 1
$r25,723
$36,926
$86,939
$12,589 $149,363 $150,490
7o/o -42o/o -43o/o
Source: EPS
Note:
[1] Retail and Office uses have similar percent differences because all entities typically use 2, 2-inch meters for these land uses.

Water_70a
Economic & Planning Systems, Inc. (EPS) 26Page 162
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
Table 2-11. Fee Comparisons by Land Use and Area
Site Area Per Acre
turisdiction
Single
Family Retail Office
Single
Family [2] Retail Office
Sacramento
Sacramento County - Uninc.

Folsom
Orangevale
Roseville
Rocklin
Lincoln
West Sacramento
Woodland
Stockton
Average Excluding Sacramento
Sacramento +/- Percent [3I
per 1.000 so. ft. tll
$7,930 $s,564
$16,394 $11,710
$5,190 $3,707
$s,363 $3,830
$11,302 $8,073
$29,366 $2O,97s
$32,907 $24,770
$11,s4s $8,246
$3,3s1 $2,422
$7,983 $5,702
$13,7t6 $9,a71
-42o/o -43o/o
per unit
$13,493
$19,s3s
$4,647
$8,813
$7,366
$19,987
$17,634
$18,006
$5,77O
$tr,542
$12,s49
7o/o
$94,45O
$t36,745
$32,s29
$6 1.691
$s1,s61
$139,909
$t23,436
$L26,O42
$40,390
$80,797
$88,122
7olo
$86,3ss
$1 78,536
$56,516
$s8,398
$L23,O77
$379,792
$3s8,360
$rzs,723
$36,926
$86,939
$149,363
-42o/o
$86,3ss
$1 78,536
$s6,s16
$s8,398
$L23,O77
$3L9,792
$368,501
$t25,723
$36,926
$86,939
$150,490
-43o/o
Source: EPS
Note:

Water_70b
[1] City of Sacramento's water fee is assessed based on meter size. The Retail and Office fee values listed in this table are for comparative purposes only to allow comparison across all jurisdictions by area for a hypothetical development of a 1-acre parcel with a structure covering 25 percent of the parcel (i,e., a F.A.R of .25) for Retail, and 35 percent for Office. This construct is for comparative purposes only and is used to compare fees of all types across juridictions. This methodology is used in the Executive Summary tables. [2] Based on 7 units per acre.
t3l Retail and Office uses have similar percent differences because all entities use 2,2-inch meters for these uses.

The proposed fee in Sacramento is on par with the average for single-family land uses and significantly less for nonresidential land uses.

Economic & Planning Systems, Inc. (EPS) 27Page 163
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
Nexus Findings
For the Water System Utility, this section addresses the following requirements of the Mitigation Fee Act (California Government Code section 66000 et seq').

Per California Government Code Section 66007

1. Identify the purpose of the fee.

2. Identify how the fee is to be used.

3. Determine how a reasonable relationship exists between the fee's use and the type of development project on which the fee is imposed.

4. Determine how a reasonable relationship exists between the need for the facility and the type of development project on which the fee is imposed.

5. Demonstrate a reasonable relationship between the amount of the fee and the cost of the facility or portion of the facility attributable to the development on which the fee is impose.

The Water System Development Impact Fee applies to all development in the service area in proportion to the measured expectation of water flow by land-use type.

1. Puroose of the Fee
The purpose of the Water System Development Impact Fee is to fund capacity improvements to accommodate projected new residential and non-residential development as detailed in Chapter 2.

2. Use of Fee
The Water System Development Impact Fee will be used to fund water facilities needed to secure, treat, store and transmit water for demand generated by development in the service area.

3. Reasonable Relationship between Use of Fee and Tvpe of Develooment on Which the Fee is Imoosed
The Water System Development Impact Fee varies by development type based on measured expectation of water demand by development type as measured by delivery volume requirements. This proportional fee will be used to fund capital projects identified in Chapter 2 and Appendix B. All improvements are designed to meet Federal, State and City requirements for standards of service in the most cost-effective manner to accommodate projected new residential and nonresidential development in the service area.

Economic & Planning Systems, Inc. (EPS) 28Page 164
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
A reasonable relationship therefore exists between the use of the Water System Development Impact Fee and the type of development on which the fee is imposed.

4. Reasonable Relationship between Need for Facility and Tvpe of Proiect on Which the Fee is Imposed
New residential and nonresidential projects in the service area are required to connect to the City's water system, New residents, employees, and patrons of the new developments will generate demand for increased water supply, treatment, storage and delivery. The water facilities needed to accommodate this demand were determined through the standards and criteria of the City's capital planning process, the Water+ Programmatic Approach as described in Chapter 2.

A reasonable relationship therefore exists between the need for water facilities and new residential and nonresidential development projects on which the Water System Development Impact Fee is imposed because the portion of water facilities funded by the Water System Development Impact Fee is based on the amount of water demand generated by projected residential and non-residential development.

5. Reasonable Relationship between Amount of Fee and Cost of Facilities or Portion of Facilities Attributed to Develooment on Which Fee is Imposed The total cost of water facilities attributable to development and funded by the Water System Development Impact Fee is allocated by development type based on measured expectation of water demand by development type as measured by delivery volume requirements. Requirements are indexed in Equivalent Meters where an Equivalent Meter of one is the volume requirement of a typical single- family home. Higher, typical volume requirements equate to higher expected Equivalent Meter requirements. The Water System Development Impact Fee is based on a per Equivalent Meter basis, so is therefore both proportional to the expected demand and proportional with the cost of required facilities' A reasonable relationship therefore exists between the amount of the Water System Development Impact Fee and the cost of the water facilities attributed to the residential and nonresidential development on which the fee is imposed because the costs are allocated based on the demand generated by new development for water facilities as measured by the demand generated by each development type.

Economic & Planning Systems, Inc. (EPS) 29Page 165
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3, 2023
Per California Government Code Section 66073

1. Subsection (a): Notwithstanding any other provision of law, when a local agency imposes fees for water connections or sewer connections, or imposes capacity charges, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed, unless a question regarding the amount of the fee or charge imposed in excess of the estimated reasonable cost of providing the services or materials is submitted to, and approved by, a popular vote of two-thirds of those electors voting on the issue.

Finding on the Base Fee: The capital cost portion of Water System Development Impact Fee (Base Fee) does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. Costs are estimated for new and improved facilities necessary to accommodate the demand created by the water requirements from projected new residential and non-residential development. Future, periodic updates to the Water System Development Impact Fee will re-evaluate the costs expended and future needs and costs to ensure that the Base Fee has not and does not exceed the estimated reasonable cost of providing appropriate capital improvement services'
Findino on the Administrative Component: The administrative cost portion of Water System Development Impact Fee (Administration Fee) does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. The Administration Fee funds City costs associated with fee program administration and implementation including collection and accounting, annual reporting, capital planning, periodic updates to the Water System Development Impact Fee, and other related costs.

2. Subsection (c): A tocal agency receiving payment of a charge as specified in paragraph (3) of subdivision (b) shall deposit it in a separate capital facilities fund with other charges received, and account for the charges in a manner to avoid any commingling with other moneys of the local agency, except for investments, and shalt expend those charges solely for the purposes for which the charges were collected. Any interest income earned from the investment of moneys in the capital facilities fund shall be deposited in that fund.

Findinol The City of Sacramento and the Department of Utilities has the systems in place to ensure compliance with Subsection c in accordance with Generally Accepted Accounting Principles, the Government Accounting Standards Board best practices and Generally Accepted Auditing Standards.

Economic & Planning Systems, Inc. (EPS) 30Page 166
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023

3. Subsection (d): For a fund established pursuant to subdivision (c), a local agency shatt make available to the public, within 180 days after the last day of each fiscal year, the following information for that fiscal year:
(1) A description of the charges deposited in the fund. (2) The beginning and ending balance of the fund and the interest earned from investment of moneys in the fund.
(3) The amount of charges collected in that fiscal year. (4) An identification of all of the following:
(A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used.
(B) Each public improvement on which charges were expended that was completed during that fiscal Year.
(C) Each public improvement that is anticipated to be undertaken in the following fiscal year.
(5) A description of each interfund transfer or loan made from the capital facitities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or witl be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan' Finding: The requirements of Subsection d are acknowledged and consistent with existing systems and practices.

Economic & Planning Systems, Inc. (EPS) 31Page 167
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023

3. The Separated Sewer System Utility
Introduction and DescriPtion
The Separated Sewer System (Separated System) provides wastewater services to approximately 50,600 commercial and residential properties located in the City The Separated System includes approximately 813 miles of pipe and 32 wastewater pump stations in 40 sewer basins. This system is administered by DOU to provide safe and reliable collection and conveyance of wastewater and ensures the wastewater systems comply with all state and federal regulations.

The residential and commercial customers that receive service from the Separated System constitute approximately 33 percent of the total residential and commercial properties in the City. The balance is served by the City's Combined Sewer System or the Sacramento Area Sewer District (SASD), a separate entity not under control of the City. All of the effluent from the City systems and SASD are delivered to a regional treatment facility owned and operated by the Sacramento Regional County Sanitation District.

On the map below (Figure 3-1) the boundaries of the Separated System are the basins in color that are outside of the red line encircling the Combined Sewer System (labeled "Combined").

Economic & Planning Systems, Inc. (EPS) 32Page 168
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February t3,2023
Figure 3-1. Separated Sewer System Utility Boundaries and Key System and Geogra phic Gha racteristics
Economic & Planning Systems, Inc. (EPS) 33Page 169
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February t3,2023
Growth and Demand
For this study, the primary concern for the Separated System is the ability to accommodate growth through capacity improvements required for that growth.

The existing system, in contrast, will be maintained and improved by existing rate payers. For new growth, an incremental approach to improvements is appropriate. Capital requirements for new growth are identified through a consistent methodology to evaluate the hydraulic capacity of infrastructure in each basin of the Separated System, termed the Master Planning Dynamic Model (Dynamic Model). This process identifies improvements that will be needed to increase system capacity to accommodate projected sewer flows from new development, The infrastructure is of general benefit, or for use in common, and so excludes local collection lines. Also excluded are developments that are self-funding improvements through Mello-Roos districts or other funding agreements. The infrastructure that remains for this study is in basins without such agreements and includes pipes that serve relatively large tributary areas, manholes along backbone pipes, and pump stations'
The main driver to determine capital requirements is the projected new growth as of 2O4O by each basin in the Separated System. The projections by land use are shown on Table 3-1.

Economic & Planning Systems, Inc. (EPS) 34Page 170
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
Table 3-1. 2O4o Projected Growth in Land Use
S-tngle
Family
Basin Detached
Residential units Commercial a
single
Family
Attached
Food and
Multifamily Retail Office
Feet in Thousands
Manufacturing Commercial
and Other tl]
6 2t
36 40
42 45
49 53
55 57
79 80
81 84
85 a7
105
106
119
t20
L2l
122
r27
131
L34
135
136
L37
143
t45
t46
G301
G302
G303
G304
G305
G306
G354
c355
Totals
23 0
2 r02
0 77
89 66
0 0
363
2 5
12 582
3,277
59 1
4 36
2 3
100
158
0 13
112
7 13
74 1
5 54
2 3
t25
210
0 t7
150
8 17
24 780
2t7
494
578
470
99 3,437
23 2
6 15
2 91
1 8
37 3
0 735
246
43 t74
247
39 20
23 7
20 67
8 0
0 29
0 1
395
0 4
0 0
8 0
4 0
0 8
0 t2
1 3
27 0
20 1
4 43
0 19
6 79
58 98
0 10
0 0
26 0
4 T2
34 0
0 75
0 2
15 0
0 6
0 0
11 33
0 1
26 0
4 3
80 35
92 61
74 25
15 6
15 37
0 0
0 72
0 0
L4
18 0
3 L2
0 0
4 0
0 15
1 0
4 5
7 1
6 3
0 3
6 27
380
188
631
53 53
8 64
27 354
810
312
77 637
L72
358
438
21r
4 2A
9 108
226
83 165
904
4 63
10 44
79 r25
279
3,46(,
T2
485 424
53 2,523
Sources: Clty of Sacramento Community Development Department and EPS Note
[1] Totals may not add due to rounding
Separated-7
Economic & Planning Systems, Inc. (EPS) 35Page 171
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
There are 29 basins in the Separated System that are projected to have some level of growth and 10 basins that have no projected growth. The calculated fees will apply to all of these basins because actual growth will always vary from projected growth. Growth may occur in any of the basins and may require accommodation.

The common indicator of demand for wastewater services is Equivalent Standard Dwelling (ESD) or equivalent, where an ESD of 1 is the expectation of average sanitary flow from a single-family detached home using average daily winter water-use data. This data is used to factor the ESDs for any land use' The projection of growth for both residential units and nonresidential square feet by land use then determines the ESD demands by basin' In ESD terms, both the existing and new growth demands by basin are shown on Table 3-2.

Economic & Planning Systems, Inc. (EPS) 36Page 172
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
Table 3-2. Existing and Projected Equivalent Standard Dwellings Basin Number Existing
Growth
2lJ23-20'40
20'4lJ
Land Use
6 2I
36 40
42 45
49 53
55 57
79 80
B1
84 85
87 105
106
119
120
12L
r22
t27
131
t34
135
136
L37
L43
L45
t46
G301
G302
c303
G304
G305
G306
G354
G35s
Totals
Share of 2O4O ESDS
t45
4,326 67
115 2
553 8
222
1,437 400
25r 2
L75
9,692 t44
119 1
t26 11
2,369 153
294816
3,750 692
2,6t4 398
545 100
787 154
9,650 642
905 45
649 42
110
94 362 36
153 10
962 34
570
4,043 110
103
587
575 45
2,431 542
t,o32 436
7,741 1,162
2,482 1,006
1,108 542
Flood plain (no infrastructure)
6,859 r,014
Executive Airport (county maintained)
67,68L 7,8L8
9oolo I'Oo/o
t45
4,393
Lt7
561
222
1,837
253
175
9,836
L20
L37
2,522
33 24
4,442
3,072
645
94L
1o,292
950
691
110
94 398
163
996
570
4,r53
103
587
620
2,973
t,468
8,903
3,488
1,650
7,873
75,499
lOOo/o
Sources: City of Sacramento DOU and Community Development Department and EPS. Separcted_2 Economic & Planning Systems, Inc. (EPS) 37Page 173
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
Incremental Methodology and Fee per
Equivalent Standard Dwelling
As noted above, DOU employs a consistent methodology to evaluate the hydraulic capacity of infrastructure. Both existing and future demand in each basin are evaluated to identify improvements that will be needed to increase system capacity to accommodate both existing and projected sewer flows. Improvements required for either the existing system or new growth can be isolated and identified by basin.

The methodology is maintained through the modelling of existing land uses, projected land uses, peak flows, existing and needed infrastructure, and costs.

Recently, the model was refined with the introduction of variations in flows by time of day, along with other variations (e.9., flow regulators, parallel pipes, cycling of pumps, tailwater changes, and other items). The use of this "dynamic" hydraulic modeling allows for an improved alternative analysis to determine the recommended capacity improvements where benefits and costs for each alternative can be evaluated and compared efficiently. The current results of the modelling in terms of improvement costs are depicted on Table 3-3.

Economic & Planning Systems, Inc. (EPS) 3BPage 174
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February t3,2023
Table 3-3, System Value and Improvement Costs
Basin
formula
Estimated
Existing Value [2]
funding:
a
Improvements Required
To Existing System
Existing Rate Payers
b
New Growth Only
Future Growth
c
2O4O System
Value
d=a+b+c
6 2T
36 40
42 45
49 53
55 57
79 BO
B1
84 B5
87 105
106
119
120
t2L
t22
126
r27
131
t34
135
136
L37
L43
r45
t46
G301
G302
G303
G304
c305
G306
G354
G35s
Totals
$2,788,513
$ 1 10,542,909
$2,723,943
$14,969,84L
$8,103,s81
$2L,646,974
$s,9s0,988
$6,928,764
$2O4,O51,780
$2,672,238
$3,287,494
$20,790,981
$1,080,s86
$2,359,483
$78,882,442
$45,242,858
$7,644,179
$18,651,957
$250,984,661
$16,472,674
$20,186,677
$3,564,001
$1,200,980
$3,360,372
$3,300,596
$3,640,660
$26,203,942
$1s,231,501
$87,165,3s5
$2,389,704
$10,910,560
$L4,242,r45
$54,405,797
$23,3 13,834
$169,438,820
$52,967,474'$24,328,t71
Flood plain (no infrastructure)
$L47,586,496
Ex. Airport
9t,489,2L3,934
$L,466,299
$33,10s,049
$5,262,7t8
$6,150,946
$796,891
$12,098,758
$r,r41,364
$r,904,r34
$L,783,252
$7,287,r54
$3,463,r34
$4,5rO,374
$498,192
$300,867
$4,0r2,49O
$588,644
$30,548
$237,994
$ 14s,815
$1 1,331,639
$2,978,744
$4,542,548
$1,235,754
$834,516
$2,788,513
$1 10,542,909
$2,723,943
$t4,969,841
$8,103,581
$23,4t4,L4r
$s,9s0,988
$6,928,764
$237,156,829
$2,672,238
$3,287,494
$24,803,47L
$1,080,586
$2,359,483
$84,733,804
$51,424,352
$7,644,L79
$19,686,842
$263,083,419
$L6,472,674
$2t,328,041
$3,564,001
$1,200,980
$3,360,372
$3,300,s96
$3,640,660
$26,203,942
$ 15,231,501
$89,2 15,305
$2,389,704
$10,910,560
$r4,242,t45
$67,520,689
$33,579,r32
$r77,444,502
$58,713,602
$25,660,879
$7,022,097 $107,903 $L54,7t6,496
$86,49O,363 $26,346,863 $1,502,O51,159
Source: DOU Separated_3
Notes:
[1] The main document initiating the methodolgy used is the Technical Memorandum, Department of Utilities, November 18, 2009, included in Appendix C-1. [2] Estimated replacement value. Does not include depreciation or outstanding debt principal.

Economic & Planning Systems, Inc. (EPS) 39Page 175
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February L3,2023
Only the New Growth costs, or $26,346,863, are being used to calculate a base fee for new growth. A sample of the improvements and costs for one basin are included as Appendix C-2.

The base fee per ESD is shown on Table 3-4'
Table 3-4. Improvement Cost per ESD
Reference Cost
New DeveloDment Cost Allocation formula
Improvement Cost to Serve Growth Only Table 3 $26,346,863 ImDrovement Cost ESD
New Development ESDs
Improvement Cost per ESD
Table 2 b
c=a/b
7,818
$3,37O
Sources: DOU and EPS
The new growth share of planning costs is calculated on Table 3-5' Table 3-5. Cost per ESD with Planning Costs
Separated_4
Item
2040 Existing and New ESDs [1]
Master Planning Cost
Master Planning Cost per ESD
Improvement Cost per ESD
Total Cost per ESD
Reference
Table 3-2
Table 3-4
formula
a
b
c=b/a
d
e=c+d
Factors
75,499
$6,850,000
$s1
$3,370
$3,461
Sources: DOU and EPS Separated_s
Notes:
[1] Planning costs are spread to all customers. The "non-fee funding requirement" amount is included on Table 3-7.

Planning costs involve ongoing hydraulic capacity analysis of peak flows associated with existing and projected land uses utilizing dynamic modeling approach. Hydraulic model results are utilized to assess alternative capital improvement projects to best address capacity issues for both existing and growth scenarios. Routine updates to flow input data and analysis are also conducted to ensure more accurate costing of capacity improvements to support growth. Planning costs of $6,850,000 are shared by existing and new development at a cost of $91 per ESD. The base and planning fee per ESD for new growth is $3,461.

The schedule of the fee by land use is shown on Table 3-6. A fufther detailed schedule is included as Appendix C-3.

Economic & Planning Systems, Inc. (EPS) 40Page 176
07/11/2023 Item No.14.

Sacramento DOU Development Impact Fee Program and Nexus Study February 13,2023
Residential
formula
Single Family Dwelling
Apartment
Hotel/Motel
Duplex
College Dorm or Boarding House
Nonresidential
Retail
Dine-in Restaurant
Office (single story)
Hospital
K-12 Schools
Heavy Industrial
Colleges & Universities
Church
Other Non-Residential
Sources: DAU and EPS
Table 3-6. Development Impact Fee Schedule
Factor
Cost per
ESD
b
per dwelling
per dwelling
per room
per dwelling
per bed or resident
$3,461
$3,461
$3,461
$3,451
$3,46L
ESD
Cost by Land
Use and
Factor
c=a*b
Administrative
Fee (3olo)
d=c *.03 e=c+d
Fee
a
1 0
0 0
.00
.66
.43
.83

0.4 $3,461
$2,284
$1,488
$2,873
$1,384
$104
$6s
$4s
$86
$42
$ss
$184
$34
$168
$411
$31
$7s
$23
$104
$3,565
$2,353
$1,533
$2,959
$L,426

0.53 L.77

0.33 L.62

3.96 0.30
o.76

0.22 1.00
per 1,000 sq. ft.
per 1,000 sq. ft.
per 1,000 sq. ft.
per bed
per 100 students
per 1,000 sq. ft.
per 1,000 sq. ft.
per 1,000 square feet
per 12,000 gal. (water/user/mo,)
$3,461
$3,46L
$3,461
$3,46r
$3,46L
$3,461
$3,461
$3,461
$3,461
$1,834
$6,126
$L,r42
$5,607
$13,706
$1,038
$2,630
$76L
$3,461
$1,889
$6,310
$L,L76
$5,775
$L4,LL7
$1,069
$2,749
$784
$3,565
Separated-6
Economic & Planning Systems, Inc. (EPS) 4L