1 Agenda
City Council Regular Meeting
Folsom City Hall | City Council Chambers, First Floor
50 Natoma Street, Folsom, CA 95630
September 10, 2024, 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 generally 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
Folsom City Hall | City Council Chambers, First Floor
50 Natoma Street, Folsom, CA 95630
www.folsom.ca.us
Tuesday, September 10, 2024 6:30 PM
Mike Kozlowski, Mayor
Sarah Aquino, Vice Mayor YK Chalamcherla, Councilmember Rosario Rodriguez, Councilmember Anna Rohrbough, Councilmember
AGENDA
NOTE:
Councilmember Anna Rohrbough will be participating in this meeting via teleconference from the following location:
31 Chase Ave.
Lexington, MA 02421
Pursuant to Section 54953 et al. of the California Government Code, members of the public shall be provided an opportunity to directly address the legislative body at the teleconference location.
CALL TO ORDER
ROLL CALL:
Councilmembers: Chalamcherla, Rodriguez, Rohrbough, Aquino, Kozlowski The City Council has adopted a policy that no new item will begin after 10:30 p.m. Therefore, if you are here for an item that has not been heard by 10:30 p.m., you may leave, as the item will be continued to a future Council meeting.
PLEDGE OF ALLEGIANCE
BUSINESS FROM THE FLOOR:
Members of the public are entitled to add ress the City Council concerning any item within the Folsom City Council's subject matter jurisdiction. Public comments are generally limited to no more than three minutes. Except for certain specific exceptions, the City Council is prohibited from discu ssing or taking action on any item not appearing on the posted agenda.
3 AGENDA UPDATE
SCHEDULED PRESENTATIONS:
1. Presentation of Spirit of Folsom Awards
2. Presentation of the 11th Annual Folsom Community Service Day
3. Presentation of Final Report from Economic Development Consultant Kosmont Companies
4. Update to City Council on the City’s Water Vision
CONSENT CALENDAR:
Items appearing on the Consent Calendar are considered routine and may be approved by one motion.
Councilmembers may pull an item for discussion.
5. Approval of August 20, 2024 Special Meeting Minutes
6. Approval of August 27, 2024 Special and Regular Meeting Minutes
7. Approval of August 28, 2024 Special Meeting Minutes
8. Appointment of At-Large Member to the Folsom Landscaping and Lighting District Advisory Committee to Represent the Cobble Ridge District
9. Resolution No. 11247 – A Resolution of the City Council of the City of Folsom Approving the Amended Budgets for Landscaping and Lighting Districts, and Community Facilities Districts for Fiscal Year 2024-25 and Appropriation of Funds
10. Resolution No. 11256- A Resolution Accepting Fiscal Year 2023-24 Department of Homeland Security Grant Funds Awarded Through the California Office of Emergency Services Grant Fund and Appropriation of Funds
11. Resolution No. 11257 - A Resolution Authorizing the City Manager to Execute a Consultant Services Agreement with Dewberry, Inc. for Construction Management and Inspection Services and Appropriation of Funds from the Community Facilities District Fund and Authorize a Partial Notice to Proceed for Pre-Construction Tasks for an Amount not to Exceed $200,000 for the Phase 2 Water Improvements Project (Phase 2A)
12. Resolution No. 11258 – A Resolution Authorizing the City Manager to Execute a Lease Agreement Between the City of Folsom and Practical Cycle LLC for the Lease of City Property Located at 905 Leidesdorff Street within the Historic District Parking Structure
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
4 there is any “Business from the Floor,” follow the same procedure described above. Please limit your comments to three minutes or less.
NOTICE REGARDING CHALLENGES TO DECISIONS: Pursuant to all applicable laws and regulations, including without limitation, California Government Code Section 65009 and or California Public Resources Code Section 21177, if you wish to challenge in court any of the above decisions (regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, the public hearing.
As presiding officer, the Mayor has the authority to preserve order at all City Council meetings, to remove or cause the removal of any person from any such meeting for disorderly conduct, or for making personal, impertinent, or slanderous remarks, using profanity, or becoming boisterous, threatening or personally abusive while addressing said Council, and to enforce the rules of the Council.
PERSONS INTERESTED IN PROPOSING AN ITEM FOR THE CITY COUNCIL AGENDA S HOULD CONTACT A MEMBER OF THE CITY COUNCIL.
The meeting of the Folsom City Council is being telecast on Metro Cable TV, Channel 14, the Government Affairs Channel, and will be shown in its entirety on the Friday and Saturday following the meeting, both at 9 a.m. The City does not control scheduling of this telecast and persons interested in watching the televised meeting should confirm this schedule with Metro Cable TV, Channel 14. The City of Folsom provides live and archived webcasts of regular City Coun cil meetings. The webcasts can be found on the online services page of the City's website www.folsom.ca.us.
In compliance with the Americans with Disabilities Act, if you are a person with a disability and you need a disability-related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (916) 461-6035, (916) 355-7328 (fax) or [email protected]. Requests must be made as early as possible and at least two full business days before the start of the meeting.
Any documents produced by the City and distributed to the City Council regarding any item on this agenda will be made available at the City Clerk’s Counter at City Hall located at 50 Natoma Street, Folsom, California and at the Folsom Public Librar y located at 411 Stafford Street, Folsom, California during normal business hours.
Folsom City Council
Staff ort
MEETING DATE: 911012024
AGENDA SECTION: Scheduled Presentatrons
SUBJECT: Presentation of Spirit of Folsom Awards
FROM: City Manager's Office
RE,COMMENDATION / CITY COUNCIL ACTION
The Folsom City Council will recognize the 2024 Spirit of Folsom Award recipients.
BACKG / ISSUE
The Folsom City Council regularly celebrates community members for their outstanding service, dedication, and commitment to making Folsom a better place for all.
On January 23,2024,the Folsom City Council established an annual community service award and recognition program to formalize and expand efforts to spotlight those who have significantly contributed to the Folsom community.
In July 2024,the Spirit of Folsom Award Program commenced, and a call for nominations was issued to the public. In this program, each City Councilmember nominates one recipient from their respective City Council district eachyear, resulting in the acknowledgment of five recipients annually. An award nominee must be a resident, volunteer, employee of a Folsom business, or a student enrolled in a school within the City of Folsom. The City of Folsom website provides details about the nomination, application, and selection process.
Award recipients will be honored with an award at the September 10 Folsom City Council meeting. Their achievements will be displayed at Folsom City Hall and highlighted on the City's website, newsletter, and social media platforms.
2024 Spirrt of Folsom Award Winners:
. Jeff Ferreira-Pro, nominated by Mayor Mike Kozlowski
o Brian Smith, nominated by Vice Mayor Sarah Aquino
. Jeff Moore, nominated by Councilmember Anna Rohrbough . Sandy Zaboukos, nominated by Councilmember YK Chalamcherla 1
09/10/2024 Item No.1.
o DeAnn Wren, nominated by Councilmember YK Chalamcherla o Steve Heard, nominated by Councilmember Rosario Rodriguez Submitted,
Christine Brainerd, Communications Director
2 Page 6
09/10/2024 Item No.1.
Folsom City Council
Staff ort
BACKGROUND / ISSIIE
The Community Service Day Steering Committee will provide a brief overview of the upcoming 1lth Annual Folsom Community Service Day to be held on Saturday, September 21 beginning at Lakeside Church.
The presentation will be delivered by Sandy Econome, Chair of the Folsom Community Service Day Steering Committee and Tom Hellmann, Recreation & Community Services Manager.
RECOMMENDATION / CITY COUNCIL ACTION
No action is requested of the City Council at this time.
Submitted,
Kelly Gonzalez, Parks & Recreation Director
1 MEETING DATE: 9tr012024
AGENDA SECTION: Scheduled Presentations
SUBJECT: Presentation of the 11th Annual Folsom Community Service Day F'ROM Parks and Recreation Department
09/10/2024 Item No.2.
This page is intentiono,Ily left blank
to focilitqte do,uble - sided printing
qnd minimize poper trse.
CtTY OF
DISTINCTIVE BY NATURE
FOLS(}l\{
09/10/2024 Item No.2.
:'l i 'l ,:l{ i,+:\{
Folsom City Council
Staff Re ort
MEETING DATE: 9tr0/2024
AGENDA SECTION: Scheduled Presentattons
SUBJECT: Presentation of Final Report from Economic Development Consultant Kosmont Companies
FROM: City Manager's Office
RECOMMENDATION / COUNCIL ACTION
It is recommended that the Folsom City Council receive a presentation from economlc development consultant Kosmont Companies on its economic development action plan and recommendations.
ATTACHMENTS
1. Kosmont Companies Folsom Economic Development Plan for the City of Folsom Submitted,
Christine Brainerd, Communications Director
1
09/10/2024 Item No.3.
]F=O]LSON4t
CITY OF
DISTINCTIVE BY NATURE
CITY OF FOLSOM
ECONOMIC DEVELOPMENT ACTION PLAN
AUGUST 2024
2301 Rosecrans Ave., Suite 4140
El Segundo, CA90245
TEL: 424-297 - 1070 | URL: vwvwl<osmo nt.com
09/10/2024 Item No.3.
Kosmont Companies Staff
Ken K. Hira, President
Thomas Jirwsky, Senior Advisor
Clark \Mitten, Senior Advisor
Fernando Sanchez, Vice President
City Council
Mike Kozlowski, Mayor
Sarah Aquino, Mce Mayor
YK Chd amcherla, Councilmember
Rosario Rodriguez, Councilmember
Anna Rohrbough, Councilmember
Staff & Advisory
Elaine Andersen, City Manager
Pam Johns, Community Dev. Director
Christine Brainerd, Communications Dircctor
CITY OF FOLSOM
ECONOMIC DEVELOPMENT I\CTION PLAN
7H
l(osmont
KosMoNT coMPANTES I z
09/10/2024 Item No.3.
INTRODUCTION
Kosmont Companies ("Kosmont"), a real estate and economics advisory firm serving hundreds of local governments for over 38 years, has been retained by the City of Folsom ("City" or "Folsom") to develop a Phase 1 Economic Development Action Plan ('EDAP").
It is important to define Economic Development: according to CALED it is generally what a community does to grow the economy and enhance quality of life for all residents, and notes that strategies vary for each community.
Kosmont's approach to preparing the EDAP included the following tasks:
r Review of relevant City documents (budget, planning), together with a tour of the City and its business districts r Interviews / feedback from City staff, Council members, and community stakeholders r Assessment of regional economic trends
r Assessment of local demographic and market conditions r Assessment of major commercial districts
r ldentification of key opportunities, strategies and economic development tools To help the City achieve its economic aspirations, E!-S-Z of the EDAP involves implementation where Kosmont would create marketing materials, represent City with brokerage community and ICSC, solicit developer proposals, and evaluate development projects / opportu n ities.
Disclaimer: The analyses, projections, assumptions, and any e><amples presented herein are for illustrative purposes and are not aguarantee of actual and/or future results. Actud results are difficult to predict as afunction of market conditions, natural disasters, pandemics, legislation and administrative actions.
KosMoNT coMPANTES I*"H 3
09/10/2024 Item No.3.
EDAP IN THE CONTEXT OF CITY STRATEGIC PLAN
Prior to retaining Kosmont, the City had adopted a S-Year Strategic Plan. While the EDAP is designed to help the City strengthen its local economic base and enable the City to achieve greater financial resiliency, it is not sPecifically designed to address all the City's strategic goals and objectives outlined below.
Strotegic PIon Core Objectives:
1. Financial Stability and Sustainability through longterm planning. lncreased efficiency and increased revenue;
2. Public Safety and lnfrastructure through investment in technological solutions, repair and maintenance of public faci lities and infrastructure;
3. Economic and Community Development through promotion of existing amenities to create opportunities to enrich the community;
4. Organizational Effectiveness through a commitment to best prurctices and employee development and suPPoft.
HKosmont. KosMoNT CoMPANTES I a
09/10/2024 Item No.3.
TABLE OF CONTENTS
1. Background
2. Executive Summary - Existing Conditions
3. EDAP Strategies
4. Regional Econ Dev Comparison
5. Opportunity Sites Evaluation
6. Economic Development Tools
Hl(osmont 5KOSMONT COMPANIES
09/10/2024 Item No.3.
1. BACKGROUND
CITY OF FOLSOM - EDAP
u"H. KOSMONT COMPANTES I 6
09/10/2024 Item No.3.
BACKGROUND
I The City is a family friendly suburban community with a unique blend of California history, surrounded by nature's amenities, the pristine waters of Lake Natoma, the expansive Folsom Lake, and the North Fork American River. These treasures provide residents and visitors with multitude of outdoor activities and experiences.
Nestled within eastern Sacramento County, the City Presents a dvnamic economic landscape. With population triPling since 1990, Folsom is home today to an estimated 89,000 residents and a workforce of 42,500 employees, with thousands of high paying iobs. The City boasts a strong tech-oriented ecosystem, fostering collaborations that range from innovative startups to industry giants like lntel.
Located in the Greater Sacramento Region, Folsom not only thrives in the present, but also holds a rich historical siqnificance, with ties to the California Gold Rush, Pony Express, and the Railroad era.
I
*'ffi
Sources: City of Folsom
Top: Lake Natoma with Rainbow Bridge in baclground
Above: Folsom Historic
",*.*
- -kosMbRf -bmeaNtrs
I 7
09/10/2024 Item No.3.
BACKGROUND
HKosmont.
The City's economic prosperity is underpinned by several compelling factors. Gr€ater Sacrarnento has evolved into a magnet for young professionals from the Bay Area who seek promising opportunities and an enhanced qualitv of life. Remarkably, despite the economic toll of the pandemic, the region has seen robust iob growth, surpassing other California markets.
Folsom has orcximitv to renowned educational institutions like Sacramento State, UC Davis, and Folsom Lake College, which is part of the Los Rios Community College District. Folsom's commitment to worKorce training is evident in its collaboration with industry giants like lntel, which expanded its Artificial lntelligence for WorKorce Program to include Folsom Lake College.
The City has invested significantly in fostering an iry{g[1ig5]!y ecosystem, enticing entrepreneurs, startuPs, and venture capitalists alike. The City is home to thriving innovation hubs like Granite City Coworking, where individuals converge to suPPort business Srowth.
Additionally, the participation in the Northern California lnnovation District, which connects startups to accelerators, funding opportunities, strategic partnerships, underscores a commitment to innovation.
On the retail front, Folsom houses several m4or shoPPing centers.
Generally, retail needs reimagination to stay relevant and serve the community. Given shifting consumer prcference, changes in land use and uncertain economic realities, it is prudent to identify opDortunities for reinvestment / redevelopment within the City to enhance tax revenues.
Sources: City of Folsom
Left: Palladio at Broadstone
Right: lntel's Folsom Campus
KosMoNT CoMPANTES I e
09/10/2024 Item No.3.
COMMUNITY ASSETS
Kosmont has identified a few significant community assets that act as regional draws and promoted effectively.
rJ{ rsfo c Folsom aka Historic District - diverse restaurants, 136-n room Lake Natoma Inn with limited convention sPace, Zittel Family amphitheater, museums, multiple shopping oPtions, and a multi- story public parking structure.
Folsom Lake Recreation Area - 19,000 acres of hiking, cycling, camping and water sports around Lake Folsom and Lake Natoma.
Lake Natoma is a passive lake ideal for hosting the NCAA and California Rowing Championships and kayaking. Lake Natoma and Folsom Lake host multiple running, cycling, triathlon, and rowing races and is also ideal for boating, fishing, and swimming.
Harris Center for the Arts - $50M facility opened in 2011, hosts over 400 public events, such as the Symphony, Theatre,
performances, Ted Talks, Disney, Swan Lake, and singer Nick Carter for over 150,000 patrons annually.
U"rffi
Top Left: Historic Folsom
Top Right Granite Beach at Folsom Lake
Above: Harris Center for the Arts
KOSMoNT coMPANTES I r
09/10/2024 Item No.3.
COMMUNITY ASSETS
T
I
Folsom Lake College ("FLC") - a part of Los Rios Community College District. The college now has well over 6,600 students and offers over 100 courses with the new $81 million Oak Hall Science Center opening next year.
Andy Morin Sports Center - an enclosed center has batting cages, pitching mound, indoor/outdoor basketball, indoor/outdoor socce6 indoor volleyball, small meeting room and ping pong tables.
Steve Miklos Aquatic Center - a 10-lane SO-meter pool, separate pool with floating basketball hoop, and a third kid safe poolwith a water play structure and a 2-story water slide. During the summer, patrons are challenged by a giant floating obstacle course in the SO-meter pool.
*m
Left Folsom Lake College
Middle: Stwe Mildos Aquatic Center
Right: Andy Morin Sports Center
KosMoNT coMPANtES I to
09/10/2024 Item No.3.
COMMUNITY ASSETS
r Folsom Rodeo Grounds - EveryJuly 3-5, the Rodeo comes to town with bull riding, barrel racing, roping, mutton busting, fireworks, live music, and food for family friendly events.
r Folsom City Zoo Sanctuary - Animals at the zoo include bears, tigers, mountain lions, bobcats, foxes, wolves, wolf hybrids, coyote, sheep, mule deer, macaques, squirrel monkeys, raccoons, skunks, eagles, parrots, and ravens. r Class 1 Bike Trails - 50+ miles paved for walking, running, hiking, and cycling r Dozens of community events are funded by the City and Chamber every year - see Partial list on next Page. 7H
Kosmont_
Left Entrance to Folsom City 7oo Sanctuary
Middle: Folsom Rodeo event
Right: Aerial of Folsom Rodeo
KosMoNT coMPANrEs I u
09/10/2024 Item No.3.
/a -'.1 j
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{lt
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i3
\,
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tY
START A ffi-rejEffi_+_.
COMMUNITY EVENTS
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it ii
I E ErL A ^^. '^l lJ^^^+^.^,^ A+AF-PA.c l^laccia - over 400 riders and 25,000M spectators regularly attend. lt is held at Prairie City State Vehicular Recreation Area just south of Highway 50.
California lnternational Marathon - 40th Annual and 9th largest marathon inthe U.S. This marathon contributes over$11M to the region, is #1 for Boston qualifier, U.S. Olympic Trials qualifier and starts in Folsom. 31't Annual Folsom Handcar Derby - The Railroad Association has hosted the annual Folsom Handcar Derby, where local groups comPete to get their handcar across the finish line in the fastest time.
American River 50-mile Race - Approximately 400 runners for 2nd largest 50-mile race in the nation starts at Folsom Point (Folsom Lake) and ends Auburn Dam Overlook.
Rio Del Lago 100-mile Race - Qualifier for the Prestigious \ y'estern States 100 Mile Endurance Run. Approximately 250 runners start and end at Beals Point (Folsom Lake).
t
*'m
Top: California lnternational Marathon
Above Left: Folsom Handcar Derby KOSMONT COMPANIES
Above Right: Hangtown Motorcross Classic
t2
09/10/2024 Item No.3.
- J.i
2. EXECUTIVE SUMMARY - EXISTING CONDITIONS
CITY OF FOLSOM - EDAP
o"m. KOSMONT COMPANTES I l3
09/10/2024 Item No.3.
DEMOGRAPHIC I EM PLOYMENT OVERVIEW
r Per ESRI luly 2024 data, Folsom has a Population of -89,600 (31,400 households). r Average Household Size is 2.8 persons, lower than County/State, and the Median Age is 39 years, older than County and State median of 37 years old.
r City Average Household lncome is $178,500, approx. -56% higher than County and 36% higher than statewide levels. Folsom residents generate $1.3 billion in annual retail spending potential across major retail categories. r Per ESRI luly 2024 data, Folsom businesses have -42,500 Employees with a resident workforce of -7,000 people. r Jobs in the City are primarily in Profession al, Scientific, and Tech Seruices / Retail Trade I Heolth Care ond Sociol Assistonce I Pubtic Administration I Accommodotion and Food Services. Of these five, four are part of the fastest growing industries in Sacramento County (shown in italics). r Residents of the City are primarily employed in Healthcare and Social Assistance / Professional, Scientific, and Tech Services / Public Administration / Retail Trade / Educational Services. *,k-
See Appendix A.2 ond A.3
Sources: ESRI Business Analyst Online; Zillow.com; U.S. Crnsus Bureau Center for Economic Studies, California Employment Development Department, ESRI Business Analyst Online KosMoNT coMPANrEs I la
09/10/2024 Item No.3.
ECONOMIC TRENDS
Economic forces are reshaping local economies across the State:
to take an increasing percentage of consumer spending, cities must take new approaches to land use that explore concepts for public amenities and private attractions that help cities capture trips and thus "sales". restaurants, entertainment venues and experiential retail, rather than simply a collection of traditional store fronts.
reshape office needs. Creative class professionals are attracted to communities with clustered centers, which provide a sense of vitality, diversity, convenience and a mix of work entertainment, selryices, arts and culture.
In light of these trends, Kosmont is assisting the City in achieving its economic objective by providing market analysis and recommendations with a goal to foster economic vitality in the City, improving business conditions and resident quality of life.
Sources: Kosmont Companies, CoStar, Coresight Research, Cowen & Company, Cushman & Wakefield, ICSC, St. Louis Federal Reserve, UBS, U.S. Census &rreau, St Louis Federal Reserve, *",H- KosMoNT coMPANrEs I ls
09/10/2024 Item No.3.
ECONOMIC GROWTH COM PARISON
To help understand the City's ability to capture a fair share of regional growth, Kosmont has done research on how the economic development policies, tax rate/impact fees, incentive policies affect commercial/industrial growth for three main competitor cities and Folsom.
Folsom is the smallest of the cities in terms of land area (approx. 1/3'd less) and population (about 50% less) than Roseville and Elk Grove. Each of the other cities has dedicated economic development department and have passed sales ta< initiatives from 0.5% to 1.0% to raise funds for public services and economic development.
Retoil
Folsom has 6 million square feet ('SF") of retail - there has been over 600,000 SF of net absorption - resulting in vacancy dropping from 11% to just over 3%.
Folsom average asking rents of $28.00 psf are the highest in the comparative set.
Elk Grove is most competitive city, with over 500,000 SF of new development and 800,000 SF of net absorption,2T" vacancy and $27.50 psf average rents.
*-H Source: Kosmont Companies KosMoNT coMPANTES I te
09/10/2024 Item No.3.
RETAIL MARKET OVERVIEW
11,654,000
$22.e3
$27.86
3.3%
380,794
14,012
City of Roseville
9.6%
411,600
16,286
4,288,000
City of Rancho Cordova
$17.7s
$1e.66
$24.32
$27.s4
1.8%
122,502
(1,213)
6,779,000
City of Elk Grove
210,967
(6,542)
3,435,000
City of Folsom
$21.12
$27.e7
33%
lnventory
Existing SF
Availability
NNN Rent $PSFIYT.
Market Asking Rent
$PSF/Yr.
Vacancy Rate
Vacant SF
Net Absorption
Q4 2023
Source: CoStar (Accessed February 2024); Note: CoStar defines Triple Net (NNN) as tenant is responsible for all expenses associated with their occupancy. Market asking rents would likely command in the open market. Vacant space refers to all space that is not occupied by a tenant regardless of availability or lease obligation. Available space is the anount of space currertly being marketed as available for lease or sale' Negative net absorption refers to the fact that more tenants vacated retail space as opposed to renewing or expanding. u"m^ KOSMONT COMPANIES I t7
09/10/2024 Item No.3.
RETAIL MARKET HISTORY
20 13 -;SJ3
Yacancy Rates
18.0"4
16.0%
14.0%
12.0%
10.0"4
8.0%
6.V/"
4.0%
2.0%
o.o%
Morket Asking Rent $PSF/ Yr.
$29.00
$27.00
$25.00
$23.00
$21.00
$19.00
$17.00
$1s.00
*,,H.
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
ofi6ls66 "*Elk Grove
-Rancho
Cordova
-Roseville
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
of6lss6 ** Elk Grove
-Rancho
Cordova
-
Roseville
Source: CoStar (Accessed FebruarT 2024) KOSMONT COMPANTES I l8
09/10/2024 Item No.3.
OFFICEIIN DUSTRIAL D EVELOPMENT TREN DS
Office
r Folsom has over 5.4 million SF of office space, but like most cities, it has seen higher vacancy due to Covid, increasing to over 8%. Minimal new Class A office development in past decade. t Average asking rents are highest in comParative set at $28.20 psf. r Elk Grove is competitive city, with over 200,000 SF of new development and 400,000 SF of net absorption,2T" vacancy and $27.90 psf average rents.
r Rancho Cordova has much larger base of office space at over 8 million SE, but it has had 300,000 SF of negative absorption in past decade and a recent 23% vacancy rate and $23 psf average rents.
Industriol
Folsom industrial invenrory is 1.7 million SF - 1/1Oth of Rancho and Elk Grove combined inventory with zero growth in past decade.
The other cities have more distribution space, which has much lower development value and employment opportunities.
t
*.rH KosMoNT coMPANtES I ts
09/10/2024 Item No.3.
OFFICE MARKET OVERVIEW
10,099,988
City of Roseville
$2s.41
$26.37
12.6%
1,271,558
44,165
$23.27
23.0%
1,995,372
(64,932)
9,236,694
City of Rancho Cordova
$22.02
2,599,253
City of Elk Grove
$31.7e
$27.86
2.3%
59,446
7,547
8.2%
426445,
(6s,768)
5,431,346
City of Folsom
$27.e7
$28.20
Net Absorption
lnventory
Existing SF
Avdlability
Gross Rent $PSFlfr.
Market Asking Rent
$PSFI/r.
Vacancy Rate
Vacant SF
Q4 2023
Source: CoStar (Accessed February 2024); Note: CoSar defines full Service / Gross Rent as "a rental that includes normal building standard seryices paid by the landlord." Market asking rents were also observed to show the rental income that a property would likely command in the open market. Vacant space refers to all space that is not occupied by a tenant. Available space is the amount of space currently beirg marketed as available for lease or sale in a given time period. Negative net absorption refers to the fact that more tenants vacated retail space as opposed to renewing or expanding. u"m. KOSMONT COMPANTES I 20
09/10/2024 Item No.3.
OFFICE MARKET HISTORY
A0 i-t : ;3;J
Vacancy Rotes
25.0%
20.0"4
15.0%
10.0%
5.0%
0.0%
Morket Asking Rent $PSF/Yr.
$29.00
$27.00
$2s.00
$23.00
$21.00
$1e.00
$17.00
o.,H-
2013 7014 2015 2016 2017 2018 2019 2020 2021 2022 2023
cpel5e6
-Elk
Grove
-Rancho
Cordova
-Roseville
2013 2014 201s 2016 2017 2018 2019 2020 2021 2022 2023
rFolsom
-Elk
Grove
-Ratcho
Cordova
-Roseville
Source: CoStar (Accessed FebruarT 2024) KOSMONT COMPANIES I ZI
09/10/2024 Item No.3.
INDUSTRIAL / FLEX MARKET OVERVIEW
Source: CoStar (Accessed February 2024); Note: CoSar defines Triple Net (NNN) as "a lease where the @nant is responsible for all expenses associated, except longJived structural components and managemert charges." Market asking rents would likely command in the open market Vacant space refers to all space that is not occupied by a tenant regardless of availability or lease obligation. Available space is the amount of space currently being marketed as available for lease. Negative net absorption refers to the fact that more tenants vacated retail sPace. *"H.
City of Roseville
$14.66
$13.23
4.3%
330,187
(175,957)
7,746,252
$11.02
$12.1s
10.4%
1,435,426
(205,918)
1 3,868,516
City of Rancho CordovaCity of Elk Grove
$13.33
$10.93
1.1%
57,635
600,777
5,343,048
$16.e2
3.5%
61,374
(36,042)
1,735,817
City of Folsom
$19.s6
lnventory
Existing SF
Availability
NNN Rent $PSFIYT:
Market Asking Rent
$PSFlfr.
Vacancy Rate
Vacant SF
Net Absorption
Q4 2023
KOSMONT COMPANIES I ZZ
09/10/2024 Item No.3.
INDUSTRIAL / FLEX MARKET HISTORY
At !4t 4{ ^- o rai, R ^.a-
Z= Yt! : * l- ,*t "4- j'
Yacancy Rotes
12.0"/"
10.0%
8.0"/"
6.0%
4.0%
2.0%
0.0%
Market Asking Rent $PSF/Ya
$17.00
$1s.00
$13.00
$11.00
$9.00
$7.00
$s.00
..m.
2013 2014 201s 2016 2017 2018 2019 2020 2021 2022 2023
rfel566
-Elk
Grove
-Rancho
Cordova
-Roseville
2013 2014 201s 2016 2017 2018 2019 2020 2021 2022 2023
of6lse6 * Elk Grove
-
Rancho Cordova
-
Roseville
Source: CoSar (Accessed February 2024) KOSMONT COMPANTES I 23
09/10/2024 Item No.3.
RESIDENTIAL AND HOTEL MARKET DEMAND
M ultif o mily Reside nti o I
r The multifamily market in Folsom is relatively laree (-6.700 gnits) and strong with sub 5% vacancy and asking rents 18% and 32% higher than the 1O-mile radius and County,
resPectively.
ln tha la AonoAo E^lo^* oAAaA'l 9OO rrnitc 1,350 units are currently under construction, with an additional nearly 600 units proposed.
The COVID-19 pandemic accelerated demand for
multifamily residential, as more people began working and shopping from home. Office tyPe amenities being provided in new housing development.
Folsom's 8-Year RHNA requirement is to add 6,363 total
housing units, including more than 3,500 very-low and low- income units.
See Appendices &5 ond 8.6
Sources: CoSar (Accessed December 2023)
Hospitolity (Hotel)
r The Folsom Hotel Market Area includes 45pp@d
hotels (4.900 rooms) located within a 1O-mile radius of Bidwell St. and Blue Ravine Rd. Hotels vary in class between economy and upper upscale.
r Prior to the pandemic, hotel occuPancy within the observed Market Area was -75% and most hotels performed well
most of the year, except for winter months (November to January).
r Although hotels in the area are performing better compared to the early years of the pandemic, average occuPancy, ADR, and RevPAR still fall short of pre-pandemic years.
r High-level demand projections for hotel room nights show that there is support for -500 rooms in the next 10 years.
This demand for room nights will likely be met by hotels currently under construction, or in final planning.
*H KOSMONT COMPANIES 24
09/10/2024 Item No.3.
PLAC ER.AI LOCATION ANALYSIS
Placer.ai is a mobility data provider that traclcs daily movement of over 30 million people in the U.S. via anonymized mobile app data. This information reveals traveltrends to/from major events, shopping centers, and other places of interest - providing insight into retail center trade areas, hourly and daily visitation statistics, and consumer demographic characteristics.
Visits to the City by visitors and employees dropped
sharply at the start of the COVID-19 pandemic.
Visits by visitors to the City returned to pre-pandemic levels beginning Apri! 2021. Visitor traffic has averaged 1% greater than pre-pandemic levels fluctuating between -6% and 15% compared to the 2019 baseline.
Visits by employees to the City returned to pre-pandemic levels beginningJune 2021. Since then, employee visits have averaged 7% less compared to the 2019 baseline due to
the increasing number of people working from home.
See Appendix 4.4
Sources: Placer.Al (Accessed March 2024)
-Visitors -Employees30%
20%
10%
0%-
-10%
-20%
-30%
-40%
-s0%
-60%
a
I
I
o o O o O o F r r E r r rl r-\ c''l ('!'! r'l'n'n o 6 6 o ta{ F F F Fl i{ c{ c.l c.l c'.1 ..1 d a.{ a'.1 a.l a\ .{ d 61 6l .''l c\ 6l d (\d o ij bi b o b o o a A O e o o o q o q q o o o o cli< i< F F F 6l 6l - F d d c{ -l Fl 6l c{ 6t c{ r''l ol c''l c''l c{ r'l r''l<<--\<\{<-\\<<<<\<
F F F F F F F F F F T F F F
-
F
-
F F F
-
F F
- -<<<<\\- - ri l- d' a F .- td N- o- e F .'5 ui N ( r - m u) N or - -rrFr *m KosMONT coMPANrEs I zs
09/10/2024 Item No.3.
toPLACER.AI L ATION ANALYSIS (CONT'D)
Using Placer.ai, Kosmont examined visitation trends for key locations in the City compared to a2019 baseline.
I Locations observed in this analysis include:
BidwelliHwy.50 Corridor [defined as the retail
centers on both sides of Bidwell St., south of lron
Point Rd., and north of Hwy. 50], Folsom Auto Mall,
Folsom Premium Outlets, and Central Business
District [defined as the retail centers along Bidwell St. with the Kohl's Shopping Center and Wdmaft Center
on the western boundary and the Target and Sprouts
anchored centers on the eastern boundaryl.
r Three locations were able to recover and receive
visitors either at or above pre-pandemic levels. The
only observed area that has yet to fully recover from
the effects of the pandemic is the Folsom Premium
Outlets with about 20% fewer visits on average
compared to2019.
See Appendix A.4
Sources: Placer.Al (Accessed March 2024)m
AN
Central Business
District
Folsom Auto Mall
6)
Bidwell/Hwy.50
Corridor
ko KosMONT coMPANTES I zo
09/10/2024 Item No.3.
oPLACER.AI L cATtoN ANALYSIS (CONT'D)
I
The /Hrw 50 Corridor received -'155.500 median weeklvvisits withBidwell 62% of visitors comint from within 7 miles. Most visits to the Corridor occur in the early afternoon on Fridays through Sundays.
The Folsom Auto Mall received 68% of visitors coming from within 7 miles Compared to the other three areas examined, visits to the Auto Mall are evenly distributed throughout the week- each day receives about 15% of total, with most of its visitors in the early afternoon.
Central Business District experienced -230.700 median weekly visits with 65% of visitors arriving from within 7 miles. Most visits occur on Fridays and Saturdays in the early and later afternoon hours, peaking on Saturdays.
Folsom Premium Outlets received -36.600 median weekly visits with iust 42%of visitors coming fromT miles or less. The outlets have a significantly larger trade area compared to other observed locations, with a large minority (37% of visitors) coming from 10-30 miles away to shop at the Outlets. A majority of visits occur on weekends. Despite the larger trade area, visitor traffic has remained20% below pre-pandemic levels.
0.,H.
See Appendix A.4
Sources: Placer.Al (Accessed March 2024)
True Trade Areas (70% of risitors to the oreos) of
Centrol Business Disfict (red) ond the Folsom Premium
Outlets (yellow). The Outlea draw from a wider trode
orea,while Gntrol Business District captures a mudl
more local audience
N
. Sacramento
\-9
.t:
l
rlh'rt rrlr .. ..
KOSMONT COMPANIES I Zt
09/10/2024 Item No.3.
ROLE OF ECONOMIC DEVELOPMENT
The City has had to rely on reserve funds and cost cutting in recent years to balance budget, as growth in retail sales has not kept pace with cost inflation. Economic development is not a "silver bullet" that can instantly solve short term financial constraints, but if implemented as a priority, it can help with long term sustainability. lt can:
r Assist City in achieving its strategic vision
r ldentify development opportunities to help increase City tax base r Facilitate growth of small businesses
I Focus on business expansion, attraction and retention To evaluate development opportunities and their impact on City revenues, Kosmont prepared a table on the following page that illustrates the annual tax revenues typically generated by a wide range of private sector development to help the City identify marketing priorities that benefit long term fiscal stability. 7H
l(osmont. Sources: Kosmont Companies, City of Folsom KosMoNT coMPANTES I zs
09/10/2024 Item No.3.
ILLUSTRATIVE FISCAL IMPACT OF NEW DEVELOPMENT
To show the impact of various development types on City revenues, the table below provides an illustration of incremental tax revenues potentially generated from various development on a hypothetical 2-acre parcel in the Opportunity sites.
Property Taxes +
VLF in-lieu $10,000 $50,000 $20,o0o $65,000 $55,000 $70,000 Direct Sales & Use
Taxes*
lndirect Sales & Use
Taxes
Hotel
TOT
Annual General
Fund Revenues
$75,000 500,000 $50,000 $25,000
$10,000 $5,000 $30,000
$300,000
$85,ooo $550,000 $70,000 $75,000 $95,000 $400,000
u"ffi-
ToP
Fast-Casual
Restaurant
50-unit
Multifamily
Housing
Mixed Use
40-units &
5,000 sF
100-room
Upscale Hotel
Auto
Dealerships
(2) 5,000 sF
Restaurants
Note*City share of taxable sales is l% KosMoNT coMPANrEs I zs
09/10/2024 Item No.3.
STAKEHOLDER OUTREACH
Kosmont met with numerous business leaders to understand their business operations and hear their observations on the opportunities and challenges facing the City.
Overview of comments:
r No major problems with City staff mentioned for large scale development. r CBRE said City was easiest to work with for tenant improvement (Tl) permits in Sacramento County. r However custom home and small business permits / design review has at times been inconsistent in plan check processi ng and requirements.
r No large-scale community opposition to new development, except for Historic District. r Council needs to adopt a Mission Statement and staff must be instructed to implement it. r Need to educate everyone - what is Econ Dev? it is not "more development".
One significant theme discussed was the turnover in the Council and retirement of key staff. Several business leaders stated that for the past 20 years there was a great working relationship with the Council and staff that identified the City objectives, provided staff with direction to allow development to proceed in a timely manner. Now staff tends to use "by the book" approach rather than "let's figure out how to solve the problem". *H Sources: Economic Planning Systems, City of Folsom KosMoNT CoMPANTES I ro
09/10/2024 Item No.3.
SWOT ANALYSIS SUMMARY
Kosmont has summarized City strengths, weaknesses, opportunities and threats ("SWOT").
Strengths
r Folsom is a fast-growing community doubling in
population in past 25 years, and adding hundreds of new homes each year.
r City is home to a major high-tech economy (semi-
conductor chip design) with thousands of employees.
I There is a skilled labor pool for Professional,
Scientific, and Tech Services that can help attract more companies (50% of worKorce has Bachelor's degree).
I Entrepreneurial spirit with dozens of innovative start- up companies.
r Strong regional retailers (Costco, Target, Auto Mall). r Significant outdoor amenities and recreational venues (Folsom Lake / Lake Natoma).
o"H sources: Economic planning Systems, city of Folsom
Weaknesses/Threats
r Prop 13 limits on ProPerty tax growth and low retail
sales ta< growth have created General Fund financial
constraints.
r Limited number of City owned development sites.
t Poor signage I activity at Premium Outlets.
r Smdl business community indicated challenges with
development permitti ng P rocesses.
KOSMONT COMPANIES 3l
09/10/2024 Item No.3.
SWOT ANALYSIS SUMMARY
Opportunities
r Historic Folsom is a unique regional draw with
boutique shops, fine dining, and entertainment.
r Central Business District has several large infill sites that can grow with mixed-use development (D.O.R.@).*
r Ability to leverage lntel and Micron Technology
others to attract more high-tech uses.
r Light rail system with three City stations connecting Rancho Cordova & downtown Sacramento offer transit
oriented development (TOD) housing opportunities
r Strong regional demand for single family housing
increases the to< base.
I Use of public financing and value caPture tools can
faci litate development / redevelopmentx.
xsee Sectrb n 5 - Economic Development Tools
r Folsom Plan Area can provide unique housing,
commercial and recreational opportunities.
t There are additional annexation opPortunities south
of Hwy 50 worth analyzing.
r Measure G sales ta< could be major funding source
for Economic Development, parks and recreation and
public services.
r Folsom is well positioned to support high tech jobs
and provide an outstanding quality of life for its
residents.
*H Sources: City of Folsom KosMoNT coMPANIES I 32
09/10/2024 Item No.3.
JJ- JJ
3. EDAP STRATEGIES
CITY OF FOLSOM - EDAP
u.H. KosMoNT coMPANrEs I :r
09/10/2024 Item No.3.
STRATEGIES IPROPOSED ACTION PLAN
Kosmont has identified Economic Development Strategies and an estimated investment range in order of priority for City's consideration. Here is a summary that is followed by supporting detail and action items:
l. Establish Business lncentive Program for targeted retail / commercial (Est Cost $$$ per yeor)x
2. Establish Economic Development Department / Manager (ESt Cost $$ per yeor)* ") Business Enhancement, Attraction & Retention
b) Gather Performance Metrics to measure annual Progress
3. UtilizeValue Capture (ftt Cost $$ one time)*
a) Central Business District Reimagination
b) Private Sector Real Estate Assets
c) City Real Estate Assets
4. Analyze Annexation Opportunities (ftt 6ost $ one time)x S $ 50,000 to S100.O00
$f $10O,O00 to $300'000
Sf,S S300,0OCI to $500,0O0
*H Source: Kosmont Companies KOSMONT COMPANIES 34
09/10/2024 Item No.3.
1. BUSINESS INCENTIVE PROGRAM
There are a wide range of business and economic development incentive programs utilized by communities across the State. The City can create such a program, but first it is important to set specific goals (e.g. assist small business, expand job creation, attract major tD( generator, attract downtown development) and create a system to measure the success of each initiative. Cost of implementing can vary: job credits, fagade improvement and infrastructure rePresent out of pocket costs, while tax sharing agreements and fee waivers are offset by new development tax revenues.
Examples of incentives include:
r Fast track permitting
r Ta< sharing agreements / tax abatements
r Job tax credits / Workforce training
r Fagade lmprovement Program
r lnfrastructure investment
r Fee waivers / deferrals in targeted areas
See Section 4 - Regionol kon Dev C-omparison for spectfic exomples of incentives used by key neorby cities *rH Source: Kosmont Companies KosMoNT coMPANlEs I rs
09/10/2024 Item No.3.
1. BUSINESS INCENTIVES (CONTINUED)
Development lmpact Fees can be an obstacle to redevelopment of older underperforming centers, as well as new construction in Folsom Plan Area. Site specific incentives may potentially create prevailing wages requirement. City should re-examine its new commercial development fee schedule and consider establishing a citywide policy of lmpact Fee Credits to encourage redevelopment opportunities similar to the Sacramento County policy discussed below.
A strategy used by Sacramento County allows developers to receive (harvest) a pro rata credit for impact fees from demolition of existing commercial centers against impact fees for new redevelopment. The Sacramento County Ordinance is credited for the redevelopment of How Bout Arden (HBA), Country Club Centre and Country Club Plaza to name a few.
The Ordinance provides credits from demolition of commercial buildings on a square footage basis. The credit captures Road, Water and Drainage, and other fees and can be applied towards the impact fees required for construction of new square footage. The credit has a term of three years and can be extended for one additional year. The credit can also be used on different assessor parcels if the parcels are contiguous. o.-"H. Source: Kosmont Companies KosMoNT coMPANtEs I 36
09/10/2024 Item No.3.
2. ECONOMIC DEVELOPMENT DEPT / MGR.
A vibrant business sector is important to the fiscal health of the City. Business Expansion, Attraction and Retention ("BEAR") is the keystone of most economic development departments.
Business-friendliness ("How to get to Yes") is a vital component to support the needs of businesses, developers and to foster entrepreneurship, and bolster the local economy.
The City currently utilizes TEDCorp (Choose Folsom) to perform economic development activities. TEDCorp recommended that Folsom have internal Economic Development staff dedicated to BEAR and to be the point person for issues raised by and affecting businesses. TEDCorp can continue to provide its services (as summarized on the following slide), but this would allow them to increase activity in support of existing and new businesses, and be more proactive on economic strategies.
Kosmont suggests a phased-in approach for an Economic Development Dept., starting with hiring a City Economic Development Manager, who reports to the City Manager. Their first priority would be to coordinate implementation of the EDAP.
*.rH Source: Kosmont Companies KosMoNT coMPANrEs I rz
09/10/2024 Item No.3.
2. ECONOMIC DEVELOPMENT DEPT. (CONT)
TEDCorp's Current Role:
t Complete at least 3 Corporate Business Retention calls/quarter. r Serve as primary contact with GSEC and participate in EDDT meetings. r Partner with City, County GSEC, 50 Economic Alliance on Business Attraction efforts. r Provide regular communications and marketing assistance to Folsom businesses. r Provide outbound marketing for Folsom Economic Development and Tourism. r Facilitate attraction and development of Special Events. r Provide entrepreneurial support at Granite School as a center of excellence for innovation and entrepreneurship. r Continue pursuing the formation of the Northern California lnnovation District (NCID). r Maintain Tourism and Economic Development (non-City) Websites. r Participate in City's Strategic Plan, River District, Central Business District Master Planning Projects. r Conduct and lead study missions and community visits. r Serve as the Film Commission.
r Serve as liaison between private developers and the City and serve as a mediator when needed.
Hkosmont. Source: Kosmont Companies KosMoNT CoMPANTES I rs
09/10/2024 Item No.3.
2. ECONOMIC DEVELOPMENT DEPT. (CONT)
Recommended BEAR Action ltems:
Action ltem 1: Develo p t'echnical assistance programs to support emerging businesses/entrepreneurs in the City.
Action ltem 2: Proactively work with business/property-owners to understand challenges and opPoftunities.that may tign wiih the City's economic development goals (e.g. Auto dealers are number one to< generators). Regularly contact the top 25 Sales To< generators / employers / suppliers.
Action ltem 3: Conduct outreach and collaborate with property owners to explore development oPPortunities and address challenges that can bring new uses to privately-owned sites.
Action ltem 4: Standard plan check review process with a set number of days for initial submission and subsequent submittals
Action ltem 5: Utilize Economic Develo pment resources to assist in implementation.
Action ltem 6: Utilize grant writing firm to pursue Federal / State grants for revitalization projects.
Action ltem 7: Attend ICSC and other conferences to meet with major retailers / restaurants / hotels / developers / brokers.
HKosmont. Source: Kosmont Companies KosMoNT coMPANtES I rs
09/10/2024 Item No.3.
2. ECONOMIC DEVELOPMENT DEPT. (CONT.)
Performance Metrics
ln order to track economic development progress, it is important for City to maintain annual business and develoPment data analytics to keep on top of economic and market trends:
1. Commercial Building Permits in Key Areas - measure commercial developer interest
2. Assessed Value of Commercial and lndustrial Property - show increased private sector investment
3. Number and Type of Business Licenses - measure new business formations
4. Employment by Industry - show success in commercial and industrial business attraction and employment Srowth
5. Sales Ta< Revenues by Geographic District - measure success in attracting businesses and economic activity
6. Hotel Tax Revenues - measure success in attracting more visitors
7. Hotel Visitor Survey - identify types of visitors, short term vs longer term stays
8. Annual Survey of Business Owners - identify issues regarding City permitting / zoning process and other programs
9. Special Event Data attendance estimates - show success of community outreach efforts *'H Source: Kosmont Companies KosMoNT coMPANTES I ao
09/10/2024 Item No.3.
3. UTILIZE VALUE CAPTURE REAL ESTATE STRATEGIES
Public and private sector real estate can be important assets to leverage for long-term economic development benefits. While Folsom has limited publicly owned land available for new development, there are many large private sector properties that can be leveraged, as discussed on following slides.
CaptureValue from Private Real Estate
. FromValue Caoture ZoningrM - DeveloDment Opportunity Reserve (D.O.R@) allows cities to create a "bank" of new density in zonihg / specific [lans, allowirig them tb'give the'density to'projectd that deliver community benefits & public amenities.*
. From Tax Increment and Special Districts - Enhanced lnfrastructure Financing Districts ("EIFD') use proPeftY ax increment and Community Facility Districts ("CFD") are tools to fund important local and regional infrastructure.* . From Public Private Partnerships - Enter iqgo partnerships with property-owngrs tq com.m.it local government resources, help solicit development propdsals that will advance both the piopdrty bwner's goals and the community's goals.
CaptureValue from Public Real Estate
. Cities can use a variety of sale or lease strategies to capture the value of their properties, while also increasing the General Fund tax base.
*See Sectio n 5 - Economic DevelopmentTools for more detailed discussion ffi"ko Source: Kosmont Companies KosMoNT coMPANrEs I nl
09/10/2024 Item No.3.
CENTRAL BUSINESS DISTRICT REIMAGINATION
The City has embarked on a Master Plan for the Central Business District. This area is the original commercial center with over a million square feet of retail uses. The area has large centers with vast parking fields. (See Seaion 5 Opportunrty Sites - for discussion of Kohl\ andWol-Mort centers.) Action ltem l: Consider changing zoning allowing residential uses on sites with large parking fields (See Section 6 discussion of D.O.R.@ strategies).
Action ltem 2: Consider programs that can help existing businesses thrive (such as fagade improvement Programs, streerery / outdoor retail) and help existing properties utilize their space (such as expanding allowable uses).
Action ltem 3: Explore creation of Property Business lmprovement District (PBID) to give area a unified image.
Action ltem 4: lnvest in enhancements such as gateway signage and wayfinding, public art, thematic street and sidewalk enhancements, and public open space.
Action ltem 5: Explore feasibility of Enhanced Infrastructure Financing District to help fund infrastructure (See Section 6 discussion of EIFD financing strategies).
*.H Source: Kosmont Companies KosMoNT coMPANrEs I nz
09/10/2024 Item No.3.
PLACEMAKING BY DESIGN, DISIRICIS & EYENIS
:
= EN-h.l-otlr=
. F{4rflfhBURGERS
^t0 AFeAy :1-: ',F
-
il.,
I
!
l.ic
l_
t\
e
*-
Distinctive signs
such as the neon
s'lgns in Fillmore and
the Star Theatre in
Oceanside - can give
an area a distinctive
sense of place.
Murals in downtown
Providence, Rl add
character and highlight
local artists and themes.
Events like the CiclAvia bike / walk fairs in
Los Angeles and the Mission lnn Festival of
Lights in Riverside, CA are memorable and
engaging actintions of public spaces. The Medical
Main Street
district in
Lancaster, CA
aims to be a
blended use area
centered around
major medical
anchors that
includes many
complementary
uses.
*"rH KOSMONT COMPANTES I ar
09/10/2024 Item No.3.
PRIVATE SECTOR REAL ESTATE ASSETS
There are private sector properties that can be major tax generators, including some that are suited for blended-use development includingAuto Mall, Folsom Premium Outlets and Natoma Station Center.
The Auto Mall is underutilized and has significant tax generation opportunities I ) City can use sales tax incentives to help attract new dealers (e.g. EV dealers) to -6.09 acres of vacant parcels. 2) Possible high-end card room - could generate +$ I million in tax revenues without impacting residential areas.
Folsom Premium Outlets is underutilized - ExcellentTOD opportunity l) Outlets suffer from poor highway signage (possible Monument sign on Hwy 50). 2) Utilize suggested Fee lmpact Credit Policy to incentivize Simon Properties to redevelop (possible D.O.R.@ strategies). 3) Suggest incentives for new entertainment uses.
Natoma Station Center is in need of reimagination
l) SyWest Development (owner) could consider repositioning the theater. rH
Kosmont. Source: Kosmont Companies KosMoNT coMPANrEs I u
09/10/2024 Item No.3.
CITY REAL ESTATE ASSETS
There are two major City properties that provide development opportunities and can generate long term lease revenues and expand the tax base.
CorporationYard
Program new site south of Hwy 50 and suggest putting the CorporationYard property through the Surplus LandAct (SLA) process. Pursue Public Private Partnership to sell/lease property to a private developer for transition of CorporationYard to new site and development of a Convention Center.
Glenn Station Property
Consider putting the property through the SLA process to attract affordable developer in combination with market rate housing and commercial uses.
HKosmont_ Source: Kosmont Companies KosMoNT CoMPANIES I as
09/10/2024 Item No.3.
4. CONSI DER ADDITIONI\L AN N EXATION
The City's Folsom Plan Area yielded significant growth to the City that has brought much needed residential, commercial, retail and recreation opportunides for residents. There may be other annexation opportunities that the City could analyze to determine potential fiscal and economic impacts.
The use of DevelopmentAgreements and Development lmpact Fees,and Special District Financings can yield significant financial benefits to cover infrastructure and public facility costs and ongoing municipal service costs. *.rm Source: Kosmont Companies KosMoNT coMPANrEs I ao
09/10/2024 Item No.3.
4. REGIONAL ECON DEV COMPARISON
CITY OF FOLSOM - EDAP
*H KOSMONT COMPANIES 47
09/10/2024 Item No.3.
REGIONAL ECONOMIC COMPARISON
To help understand the City's competitive position, Kosmont has done research on how three key nearby comPetitive cities treat economic development, how their ta< rate/impact fees and incentive policies compare with Folsom.
Economic I Demographic Comparbon
Randto
Folsorn Rseville Elk Groy'e C.adorra
Population 89,000 t52,000 179,000 s0,000
Land Area (Sq Fliles) 28 44 42 3s
Econ Dev Prqgram None 4FTE's 4FTE's 3FTE's
Sdes Tax lnitiatives
Mea$urlg
Gon 0.s096 1.0096 1.00?6
*m^ Source: Kosmont Companies KosMoNT coMPANtEs I as
09/10/2024 Item No.3.
COMMERCIAL IMPACT FEES
Folsom North of SR50 Commercial lmpact Fees are competitive with other cities. However, the Folsom Plan Area fees are high, equivalent to 975 per building SF, or $ I million per acre of land area, versus $ | 6 to $37 per building SF. This can be a major hurdle for attracting new retail/commercial development.
Per 1,000 SF
Roads, Sac Co, A
Water/Drainage
Capital lmp Fee
TME CWF,LRF
Housing Trust Fee
Plan Area fue
SPIF
Capital Fire Fac Fee
Total
Folsom
Nof50
$15,280
$2s3
$2,288
$7ss
$1,960
Folsom
Plan Area
$2,300
$1,220
$1 s0
$'1,960
$22,249
$47,480
Rancho
Cordova
$19,030
$601
$770
$15,920
Elk Grove
$12,660
$1,640
$1,030
$3,485
$2,180
$20,995
Roseville
(lnfill) /1
$15,000
$1,200
$300
$16,500
$1,325
$20,436 $75,259 $37,46
/l Rosevillehaswiderangeoftraffic,waterandsewerfeesbasedonspecifictypesofcommercial HKosmont. KosMoNT CoMPANIES I as
09/10/2024 Item No.3.
ROSEVILLE ECON DEV SUMMARY
Economic Development Program Staff
City has 4 fulltime equivalent ("FTEs") One Director, one Manager, one Project Manager, one Econ Dev Analyst. lncentives
. Expedited Permit Process - PASS Program guarantees 20-day initialturnaround and 10 day thereafter. . Fee Deferral Program- Webpage lists examples (i.e. Pappas 1513 Eureka Rd Medical Office, fee deferral of $1,864,622 until C of O). . Strategic lmprovement Fund- Funded Cosrco deal of $6M then $1.8M after 7 years. The $6M was funded by the General Fund and the $1.8 is a reimbursement of infrastructure by adjacent development over 7 years. . lnfill Development - Free predevelopment meetings with City staff representing various agencies to discuss proponent's project. Easy fill in form to submit to request meeting.
. Downtown Roseville Facade lmprovement Rebate Program- Rebates up to $'10K. rH
kosmont KOSMONT COMPANIES 50
09/10/2024 Item No.3.
ELK GROVE ECON DEV SUMMARY
Economic Development Program Staff
4 FTEs: One Director, one Manager and two Economic Development Specialists lncentives
. Proiect Etevate - City owns 20 acrcs and RFQ to select developer. ERN didnt pan out and City is about to announce a new developen . Startup Elk Grove lncentive Program - Provides assistance to launching tech startups. Grants up to $150k and facilities up to $250k. . BReW Program - Brewery, r€staurants, wineries are eligible for financial assistance to develop, improve or expand. Matching Srants to $50k. . State and Federal Office Incentive Program - Financial assistance to State/Federal agencies rclocate headquarters. Granted $4M ln the past. . Retail and Hospitality - Targeted tax rebate incentives. TOT share for "right" hotel. . Development lmpact Fee Deferral Program - Provides low interest loan for 5 years with nothing due the first 36 months. . Small Business Permit Assistance Program (PASS Program) - Grants to $10k for costs of permits for small businesses. Two staff members manage. \
. Proiect Review Team - Fast-Tracked plan check. 1't round comments guaranteed in 7 days. Managed by a senior level staff rePresentative. . OpenCounter- Web based software prograrr that enables project proponents to :lccurately estimate fees and permits2417. . Facade lmprovement Program (FIXD) Provides grant funding (up to $50K) and design seruices for commercial exterior improvements. n"rm KosMoNTcoMPANrEs I st
09/10/2024 Item No.3.
RANCHO CORDOVA ECON DEV SUMMARY
Economic Development Program Staff
City has 3 FTEs; One Manager and two Jr staff.
lncentives
. Community Enhancement & lnvestment Fund which is funded by Measures H and R, each lz cent local sales measures approved 2014 and 2020. They are the overall funding source for incentives. . Jobs & Talent Program that pays $Sk/job for max of $100K (but with Council vote, can go higher) for at least 20 new net iobs that pay 125% above average wage.
. Small Business - Free business counseling, small business design assistance. . Erpedited Permit Assistance- Concierge service with as quickas a 10 dayturn around on first plan check. o,K KosMoNT coMPANrEs I s2
09/10/2024 Item No.3.
5. OPPORTUNITY SITE EVALUATION
CITY OF FOLSOM - EDAP
*"rH KOSMONT COMPANIES 53
09/10/2024 Item No.3.
PRIVATE SECTOR OPPORTUNITY SITES
Kosmont has identified several major retail centers in the City well suited for redevelopment/new business attraction.
Many of these sites are older centers with large parking fields in excess of current parking standards.
1. Wal-Mart Center - a -28.6-acre center with over -20 acres of surface parking
2. Kohl's Center - an -1 1-acre center with -6 acres of surface parking
3. Premium Outlets - -34.6-acre center with over -25 acres of surface parking The Folsom Auto Mall has significant freeway frontage vacant land (-6 acres) that could accommodate new dealerships, as well as an empty 5.7-acre VW dealership building being used as an auto detailing facility.
Natoma Station Crossing is a smaller center with a Century Theater that is performing poorly and could be a potential hospitality or multi-fami| development that would substantially increase tax revenues to the City.
Aerial maps of each center are provided with major tenants and parcel ownership info on the following Pages.
HKosmont. KosMoNT coMPANTES I sa
09/10/2024 Item No.3.
OPPORTUNITY SITE #1:
WALMART CENTER
SITE PROFILE
. Address: 1000-1018 Riley St.
' Total Lot Area: 28.56 acres
. Total Building Area: 313,066 SF GLA
. Owners: Nazareth Retail Holdings
LLC; Wal Mart Real Estate Trust
' Assessed Value: $63,414,000
. Po:entiai Cp,lortuinit't: 2C0-300,r.it
-, r-,-fa-,,ly :evelc:: e-l
Chevron - Not
part of center
almart ;i<
Supercenter
-5" ^^
a
Hl(osmont-ry"" Source: ESRI Business Analyst Online; Sacramento County Office of the Assessor (Accessed April 2024) KosMoNT coMPANTES I 55
09/10/2024 Item No.3.
SITE #2: KOHPS
SHOPPING CENTER
SITE PROFILE
. Address: 10'13 Riley St.
. Total Lot Area: 11.01 acres
. Total Building Area: 114,047 SF GLA
' Owners: DMFA Folsom, LLC; Robert
Nerli and Laradean Hayes-Nerli
. Assessed Value: $18,5387,000
. Potential Cpportunity:'100-200 unit
mu lti-fami ly developm ent
HKosmont. Source: ESRI Business Analyst Online; Sacramento County Office of the Assessor (Accessed Apnl2024) KosMoNT coMPANrEs I se
09/10/2024 Item No.3.
SITE #3: FOLSOM
PREMIUM OUTLETS
SITE PROFILE
. Address:.170 and 400 lron Point Rd.;
13000 Folsom Blvd.
. Total Lot Area: 34.60 acres
Total Building Area (Retail GLA)
296,014 SF
Owners: Golden Arch Ltd.
Partnership, lron Point lnvestments
LLC, Chelsea Financing Partnership LP
Assessed Value: $75,576,000
Potential Opportunity: 200-400 unit
multi-family TOD development near
lron Point Light Rail
BANANA REPUBLIC
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Hsmp,#,,"ko Source: ESRI Business Analyst Online; Sacramento County Office of the Assessor (Accessed April 2024) KosMoNT coMPANTES i sz
09/10/2024 Item No.3.
OPPORTUNITY SITE #4:
FOLSOM AUTO MALL
Address: 069-071A-20, -21, -39;
12565 Auto Mall Cir. [069-0710-031]
Lot Area: 6.09 acres (265,280 SF)
fParcels 1-31;5.77 acres (251,341 SF)
[Parcel 4]
Total Net Assessed Value: $5,974,000
Building Area (Retail GLA): 29,786 SF and
16,282 SF fParcels 4]
Owners: Abdi Mohanna Revocable Trust;
Sauer Family Ltd. Partnership with Barbara
McGowan
Potential Coportunity sites: Vacant Pancels
1-3; Fcnrnei- VW deale,' iParcei 4l used as
-^-;^+^;1i^-Lat JcL4il'IX
I
I
I
I
SITE PROFILE
rH
Kosmont_ Source: ESRI Business Analyst Online; Sacramento County Office of the Assessor (Accessed April 2024) KOSMONT COMPANTES I SS
09/10/2024 Item No.3.
OPPORTUNITY SITE #5:
NATOMA STATION
cRosstNG
SITE PROFILE
Address: 121-341 lron Point Rd.
Total Lot Area: 20.50 acres
Total Building Area: 229,058 SF (105,258 SF
of hospitaliry; 123,800 SF of retail space)
Owners: 12 distinct owners
Total Net Assessed Value: $49,260,000
Notable Tenants: Larkspur Landing Hotel;
Chili's; Burger King fParcel 4]; l0 Gasoline;
Hilton Garden lnn Folsom; Cinemarl<
Century Folsom '14; Reliance Supermart,
Disciples Church
Potentiai C paortur' iry: Cin emark - 6-ac re
srte s;;ited for "i OC-rcom hotei ard
restaurant on '1 50-200-u;r:t i-esicieni.lal
I
I
Folsom
Premium
Outlets
n.m Source: ESRI Business Analyst Online; Sacramento County Office of the Assessor (Accessed April 2024) KOSMONT COMPANIES I SC
09/10/2024 Item No.3.
6. ECONOMIC DEVELOPMENT TOOLS
CITY OF FOLSOM - EDAP
*"H KosMoNT coMPANrEs I eo
09/10/2024 Item No.3.
ECONOMIC DEVELOPMENT TOOLS
Kosmont has prepared a high-level summary of various Economic Development tools that the City can consider for Value Capture and to facilitate future development:
CaptureValue fromTax lncrement and Special Districts
. Enhanced lnfrastructure Financing District ("ElFD") use property tax increment and Community Facility Districts ("CFD") are tools to fund important local and regional infrastructure.
CaptureValue from Zoning (Value Capture ZoningrM)
. Development Opportunity Reserve (D.O.R.)@ allows cities to create a "bank" of new density in zoning / specific plans, allowing them to give the density to projects that deliver community benefits & public amenities.
CaptureValue from Real Estate
. Cities can use a variety of strategies to capture the value of their properties (sale or long-term lease). n.,H- KosMoNTcoMPANTES I el
09/10/2024 Item No.3.
Government
Financing
THE ECONOMIC DEVELOPMENT PLAYBOOK
VSpecial
Districts -
EIFD, CRIA,
CFD
Sales Ta<
Assessment
Revenue
(sTARx)@
Development
Opportunity
Reserve
(D.o.R.)@
Money (OPM)
Other Public
- ARPA,
lnfrastructu
Real Estate
Strategies
(sTAR*)@
Create Value
from DA
Negotiation
OPM
Create Value
from New
Funding
(D.o.R)@
Capture Value from
Zoning
KOSMONT COMPANIES
EIFDs
Capture Value from
Tax lncrement
Financing
Create Value
through refinancing
Source: Kosmont Companies
*H 62
09/10/2024 Item No.3.
ZONING AND LAND USE STRATEGIES
DEVELOPMENT OPPORTUNITY RESERVE D.O.R.@
Zoni e Cities can avoid simply giving that value awaY, and instead capture that value as currency to support community benefits and public amenities. *"rffi
Rezoning gives the value of the new density to current ProPerty owners: inflated land values, limited possibility of development.
D.O.R.@ allows cities to create a "bank" of new density in zoning / specific plans, allowing them to give the density to proiects that deliver community benefits & public amenities.
OId Playbook:
Rezone Areas for New Density
and Expect New Development
New Playbook:
Bank Density with Development
Opportunity Reserve D.O.R.@
Kosr'4oNT coMPANtES I er
09/10/2024 Item No.3.
Z:ONING AND LAND USE STRATEGIES
DEVELOPMENT OPPORTUNITY RESERVE D.O.R.@ I PROCESS
Hkosmont.
Step 2
Use planning prccess to create a reserve bank
of density to use in target areas and create an
amenity list of desired community benefits and
advance projects.
Step 4
City & Developer sign a Development
Agreement, assigning D.O.R.@ density to
project with contractual commitment to
deliver amenities or infrastructure.
lmplement
D.O.R.@
Create
D.O.R.@
KosMoNT CoMPANTES I 54
09/10/2024 Item No.3.
lmplementation Steps
L. Conduct market housing / economic
study to match RHNA needs
2. Discuss new density and public amenities
with community
3. Create DOR mechanism as new Zoning /
Specific Plan provision
D.O.R.@ CASE STUDY ILLUSTRATIONS
C;lty of Buellton: Avenue of Flags
. Goal: Induce housing development in downtown area
. Benefits & Amenities: public restrooms, off-site
improvements, public parking, parking district, public art, parks, green buildings, other
lncentives: Increase density up to 40 units / acre, increase uce on-site parking ,
cation fees
reduced setbacks, reduced
City of El Montez Downtown Moin St
Goal: lncrease downtown density along with community benefits and public improvements
Benefits & Amenities: streets, bicycle facilities, parking, open space, beautification, transit, arts / cultural spaces, lot consolidation; developer can either install improvements or make payment into public improvement fund; value based on a portion of residual land value (-75%l
lncentives: Increase density, heights, FAR, dwelling units Per acre I
*m Sources: Kosmont Companies, City of Buellton, City of El Monte KosMoNT coMPANTES I os
09/10/2024 Item No.3.
SPECIAL DISTRICTS FOR INFRASTRUCTURE FINANCING
I
Public agencies can utilize a variety of tax increment financing (TlF) and special district tools to fund infrastructure projects that can help to motivate private investment. This includes Enhanced lnfrastructure Financing Districts (ElFDs), community facilities districts (CFDs), and business improvement districts (BlDs). These special districts are not mutually exclusive, and can work well together to advance goals of motivating private investment. ucture Financi may be well suited for some of the Region's oPPoftunity areas that have significant infrastructure needs (roads / connectivity, water / sewer, electricity, telecom / broadband, etc.).
EIFDs utilize property tD( revenues from new development to finance public infrastructure projects without introducing new or increased taxes.
EIFD project areas do not have to be contiguous, allowing them to target specific areas of high development and high infrastructure need.
The district commitment of revenues toward infrastructut€ can induce private sector investment, accelerate growth, create jobs, and capture / grow fiscal revenues.
I
0.ffi. KosMoNT coMPANtES I ee
09/10/2024 Item No.3.
SPECIAL DISTRICTS FOR INFRASTRUCTURE FINANCING
FUNDAMENTALS OF EIFDS
Tax lncrement
Financing
Long-term
Districts
Non-Contiguous
Areas
Eligible Projects
Return on
lnvestment
Attract
Additional Funds
Tax increment from new development / assessed value increase used to fund infrastructure Proiects in aooroved oroiect areas
Up to 4i-year districts from first bond issuance; Districts provide long-term. committed revenues in targeted investment areas;Districts can be created in l2-18 months EIFD project areas do not have to be contiguous. allowing them to target specific sites / areas and making them compatible with other zoning / entitlement strategies Any propertywith useful life of l5+ years and of communitywide significance;purchase,construction, expans io n, i mp rovement, sei smic retrofi t. re habi litatio n, and m ai ntenance Private sector investment induced by District commitment accelerates growth of net fiscal revenues, job creation, h ousi ng production, essential i nfrastructu re i mProvements Allows community to attract tax increment from other entities (cities, special districts),federal / state grants & loans (TOD water, housing, parks), brownfield funding Hkosmont. KosMoNT CoMPANTES I ot
09/10/2024 Item No.3.
EIFD WITH A POTENTIAL CITY/COUNTY PARTNERSHIP
t ldeal strategy includes a County contribution
'/ Folsom receives approximately 19.6% of every $1 collected in property taxes on average (varies by Tax Rate Area) . City additionally receives equivalent of approximately 5.O% of property ta< in lieu of MVLF, also available to EIFD >
TIF Districts which involve a City / County joint effort are more likely to win state grant funding sourcesI Federal & State Sources
. Cap-ond-Trade / HCD gront
& loon progroms (AHSC,llc,
rcc)
t Prop I bond funds / Prop 68
. SB I Rood funds
. SB 2 Tronsfer Tox funds
. Federol DOT / EPA / EDA
funding
Other Potential Funding Sources
t Property tax revenue including RPITF
. Vehicle license fee (VLF) prop. tox backfill increment . Development Agreement / impoct fees
' Benefit ossessmen* (e.g. contribution from CFD)
. Locol transportotion funding (e.g. Measure M/R)
t Privote investment
I 6oa
a' aa
%Hkosmont. Sources: Kosmont Companies Notes: Actual shares vary by tax rate area. KOSMONT COMPANIES 68
09/10/2024 Item No.3.
TAX INCREMENT DISTRICT CASE STUDY
,p*4,5fi,t+=i,g fl$sfi 5T,r'f;'tr - 5,,:i,q",V.9.] li\ 2 S'4 q Placentia / Orange County EIFD Partnership
' 300+ acres: Old Town Placentia Revitalization Plan, Metrolink Station, TOD Packing House Area
. lnfrastructure Financing Plan (lFP) will fund S13 million in public infrastructure improvements for those areas
. Water, sewer, streets, parking, transit connectivity
. $460M+ expected in new AV from residential, retail,
restau ra nt devel o pme nt
. Net Fiscal Benefit: S22M to City, S15M to County
lmplementation
. EIFD feasibility analysis & forrnation process
. Led education/outreach meetings with County BOS
. Developed County EIFD Policy for City/County EIFD
. Completed first EIFD TIF Court Validation in the state . Working on TIF Bond-expected by fall of 2022
*H sources: Kosmont companies, city of placentja
AFTER
KosMoNT coMPANtES I 69
09/10/2024 Item No.3.
SPECIAL DISTRICTS FOR INFRASTRUCTURE FINANCING
OTHER DISTRICT TOOLS
Property Business
lmprovement
Districts (PBID)
Community
Facilities District
(cFD)
Prcperty Business lmprcvement Districts are special assessments levied on real proPert), to fund improvements and promote activities the benefit the propercies located within the PBID area.This includes capital improvements, parking facilities, street / streetscape improvements,lighting and landscaping marketing and promotion, and business attraction / retention. The special assessment amount that each propefty owner pq/s must be direcdy proportional to the benefit received. community Facility Districts are a new property assessment or "special tax" that aPPears as a seParate line item on a tax bill and can be used to fund infrastructure / services that benefit the property.This includes transportation, parking, str€et i utility improvements, hazardous waste remediation, street lighting / sidewalk and public services. CFDs are useful because they provide early financing for a variety of critical services and infrastructure. CFDs also pair well with EIFDs as a value caPture strategy - with CFDs providing early funding and EIFDs providing funds as projeca are constructed, and tax increment grows.
Parking Authority Districts can utilize a variety of funding sources - including bonds, ad valorem taxes, user fees, parking meter charges, parking revenues, and City / County contributions - to fund impronements such as parking lots, structures, and alterations to circulatory infrastructure to faciliate ingress and egress.
Parking Authority
District
Climate
Resilience
District (CRD)
Climate Resilience Districts are a new type of district can fund projeca to mitigate climate change. These districts have broad financing powers, and can fund a wide range of eligible projects, including projects that address sea level rise / flooding, extreme weatheI wildfire, and drought.
0"ffi- KosMoNT coMPANTES I zo
09/10/2024 Item No.3.
CAPTURE VALUE WITH CITY PROPERTY
*F, =f-;:= i,r : =;;.'..' a i:.;i--,i'-,:i'
r : ':'
Cities can use a variety of strategies to better utilize the value of their properties:
t Performance-based leases / ground leases
r Monetizing assets (such as parking garages)
I Selling property to private sector - includes lease-
back strategies, continued operation of existing
use, redevelopment into new uses
SELLER BEWARE -I
Cities must follow Surplus Land Act (SLA)
req uirements / procedures
ond/or For
Sources: Kosmont Companies, California fusembly Bill 1486 (2019) KosMoNT coMPANlEs I zt
09/10/2024 Item No.3.
SURPLUS LAND ACT CONSIDERATIONS
(FOR PUBLIC AGENCY OWNED PROPERTIES)
The Surplus Land Act (SlA) was passed in response to the housing California. Public agency owned proPerty cannot be sold or leased complies with the SLA, with certain exceptions.
shortage in
until it
the SLA for a an affordable
to come to the site. or t ity will have the ability to for a different use
SLA requires an up to 150-day (NOA icr 60 days + good faith negotiations for 90 days) RFP process to either select or reject an affordable housing project/proposal. City does not have to sell the property for less than fair market value. lf rejected, ProPerty can be sold to brcader market.
After completing the process, any development will be subject to a covenant rcquiring any residential development with 10 or more units to provide at least 15% of units available to low-income households.
lf local agency does not comply with SLA, HCD will impose fine of 30% of final sale price for first violatio n, 50% of final sale price for second violation.
City should engage rcal estate and legal counselto navigate SLA process and conduct appro pri ate property d ue d iligence.
Potentiaf exemptions include leases existing prior to 1l1l2019,land dedicatedforT5% or more affordable housing or public uses and land not suitable (too small).
SLA Required Disposition Process
l. Declaration of the property as either "surplus" or "exempt surplus,"
2. lf declared "surplus," disseminate a Notice of Availability (NOA) offering the proPerty to otlrer government agencies and affordable housing developers for a period of 60 days.
3. lf the City receives letters of interest from government atencies and/or affordable housing developers, then it must negotiate in good faith with t}ose interested parties for a period of 90 days'
4. After the 90-day good faith negotiation period, the City must notiff the State Departrnent of Housing and Community
Development (HCD) and provide information that documents compliance with the process and request a letter of compliance'
5. HCD has 30 days to respond to City with questions/request for more infi>rmation and, at the conclusion of the 30-day period' must provide a letter stating that the City has complied with the Process or not.
KOSMONT COMPANIES I tZ
09/10/2024 Item No.3.
'.-.-:"*.:1'.-l.'.'::::1.jfi-i3-.];.i-.T"::il.:i':..:l];;";.;!:i:.,.::iii.:.Tifr].-I1i CREATE CURRENCY \MITH REVENUE REPLACEMENT
REPLACING TAX REYENUES VIA DAS & P35
Replace Revenue with Sales Tax Assessment Revenue
(STAR*)@
Project would result
in a loss in retail
sales ta< revenues
resulting from non-
sales tax generating
(eg. industria[)
uses
Create eouivalent General
Fund revenue through
entitlement document /
development agreement
(Tox Equivolency os currenq)
Analvze sales to<
revenue loss potential
of opportunity sites &
zoning designations to
understand scale
STAR* Case Study: Jurupa Valley - Agua Mansa Commerce Park Site . -280-acre site (ongr nally planned for retail)
. Proposed 3.6 million SF industrial development proiect . STAR analysis estimated annual sales tax in-lieu payment of -$362'500 u",H- Sources: Kosmont Companies, City of Jurupa Valley KosMONT coMPANtES I zr
09/10/2024 Item No.3.
GRANTS AND OTHER PUBLIC FUNDING
There is a wide variety of grant programs and funding sources available through the state and federal government. New grant programs are added every year, many with a focus on housing and climate resiliency. Cities should periodically review available grant sources and pursue grants that align with the city's economic development goals (a grant-writing firm can provide assistance if the City's internal resources are limited).
Three current programs that give some preference to EIFDs are:
lnfill lnfrastructure Grants (llG)
Grants for infill projects / areas, gap funding for infrastructure for residential / mixed-use with some affordability requirements; awards range between $1 - $7.5 million.
Affordable Housins and Sustainable Communities Prosram (AHSC) Grants for affordable housing, housing infrastructure, transportation, related amenities, and program costs; awards range between $1 - $30 million.
Transformative Climate Communities ffCC)
Funds community-led development
environmental / health / economic
communities.
and infrastructure projects
benefits in the state's most
that achieve
disadvantaged
*"rH
Recent Economic Development &
Climate Grant / Funding Programs
. Regional EarlyAction Planning (REAP)
. Local EarlyAction Planning (LEAP)
. lnfill lnfrastructure Grants (llG)
. Affordable Housing and Sustainable Communities
(AHSc)
. Community Economic Resilience Fund (CERF)
. Muhifamily Housing Program (MHP)
. ICARP Regional Resilience Grant Program (RRGP)
. lnfrastruco.rre State Revolving Fund (ISRF)
. Homeless Housing,Assistance, and Prevention
(HHAP)
. lnfrastructure State Rerrolving Fund (ISRF)
. Coastal Conservancy Grants
. Adaptation Planning Grant Program (APGP)
. Strategic Growth Council grants
. lnfrastructure lnvestment and Jobs Act (l[A)
KosMoNT CoMPANTES I ta
09/10/2024 Item No.3.
GRANTS AND OTHER PUBLIC FUNDING MATRIX
PurposeFunding Source /
Grant
lnfill lnfrastructure
Grant (llG) Program
(EIFD Preference)
Affordable Housing and
Sustainable
Communities (AHSC)
Program
(EIFD Preference)
Muhihmily Housing
Program (MHP)
Transit-Oriented
Development (TOD)
Housing Program
- llG provides grants ficr capital imprwement projeca for qualifying infill proiecs or qualifying infill areas - Used for gap funding to infrastructure imprcvements for residential or mixed-use dwelopments - Eligible activhies: construction, rehab, demolition, relocation, prcservation, and acquishion of infrastructure - Affordability threshold: No less than 15% of units as "affordable" units - Assistance terms: Minimum award ($1M), maximum award ($7.5M) - The AHSC Program assists project areas by providing grants and/or loans to a locality, public housing authority, JPA, developer, or facilities districts, thd will achieve greenhouse gas (GHG) emissions reduction and benefrt Disaduntaged communities through increasing accessibilhy of affordable housing employment centers, and key destinations via low-carbon transportation - Assistance terms: Minimum award ($1M), maximum award ($fOM) - Eligible activities: new construction, acquisition, or rehab of affordable housing; housing infrastructure; sustainable transportation infrastructure and rel ated am eniti es, progr.ur costs (active trans portati o n) - Affordability threshold: 20% of homes at 80% median household income (MHl) - MHP assist the new construction, rehab, and preservation of permanent and transitional rental housing for lower income households, or the conrrcrsion of a non-residential structnre to nental housing - El'rgible activities: property acquisition, land lease payments, construction and rehabilitation work, offsite imprwements (e.9. sewer, utilkies, and stneets directly related to housing dwelopment)
- Assistance terms: Maximum award ($20M), base loan nriousfrom $150K and $175K based on type of unit - Program offers low-intercst loans as gap financing for rental housing developments near transit that include affordable units. Grdnts are available to localities and transit agencies for infrastructure improvements necessary for the derelopment of specified housing projects or to facilitate connections between the project and the transit station - Eligible applicants: developers for rental housing projects; municipalities/transit agencies for infrastructure projects - Assistance terms: Maximum award for a single project is $15M HKosmont. KOSMONT COMPANIES 75
09/10/2024 Item No.3.
CITY OF FOLSOM
ECONOMIC DEVELOPMENT ACTION PLAN
2301 Rosecrans Ave., Suite 4140
El Segundo, CA 90245
TEL: 424-297 - I 070 | U RL: www.kosmont.com
09/10/2024 Item No.3.
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OITY OF
DISTINCTIVE BY NATURE
F()LSOl\{
09/10/2024 Item No.3.
Folsom City Council
Staff Re rt
MEETING DATE: 91t012024
AGENDA SECTION: Scheduled Presentattons
SUBJECT: Update to City Council on the City's Water Vision F'ROM: Environmental and Water Resources Department
BACKGROUND / ISSUE
On August 22,2023,City Council approved ResolutionNo. 11089 to begin the City of Folsom Water Vision process. The intent of the Water Vision is to initiate a City-wide discussion and an opportunity for public participation in the long-range (at least 50 years) planning of Folsom's future water supply. The goal is to evaluate the adequacy andreliability of the City's water supplies, develop a water supply portfolio that addresses water supply reliability, resiliency, and sustainability, and to develop policy recommendations to City Council that will provide long-term guidance for managing these supplies through a Stakeholder process.
Environmental and Water Resources Director, Marcus Yasutake, will provide City Council with an update on the Water Vision. The presentation will include a discussion on the following:
. Purpose
o Stakeholder group
. Schedule
. Progress
o Next steps
Submitted,
ft'l*r*,*
Marcus Y Director
ENVIRONMENTAL AND WATER RESOURCES DEPARTMENT
1
09/10/2024 Item No.4.
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F()LSOl\[
CITY OF
DISTINCTIVE BY NATURE
09/10/2024 Item No.4.
File 034-2124-001
Folsom City Council Minutes
August 20,2024
Gity Council Special Meeting
MINUTES
Thursday, August 20,2024 8:00 AM
CALL TO ORDER
The special City Council meeting was called to order at 8:00 am with Vice Mayor Aquino presiding Mayor Mike Kozlowski participated via teleconference, as noticed on the agenda.
ROLL GALL:
Councilmembers Present Sarah Aquino, Vice Mayor
Rosario Rodriguez, Councilmember
Mike Kozlowski, Mayor
Councilmem bers Absent: YK Chalamcherla, Councilmember (arrived at 8:05 am) Anna Rohrbough, Councilmember (arrived at 8:07 am)
ADJOURNM NT Tr) (]I OSFD SESSIO N trOFI TI{F FOI I OWI NG PURPosFs'
1. Conference with Labor Negotiator - Pursuant to Government Code Section 54957.6. Agency Negotiator: Human Resources Director Allison Garcia. Employee Organizations: All Bargaining Groups
2. Conference with Legal Counsel Anticipated Litigation, lnitiation of Litigation Pursuant to Government Code Section 54956.9(d)(4): One Potential Case, City of Folsom v. Mary Anne Martin, Coalition to Fix Folsom, et al.
3. Public Employee Appointment - Recruitment to Fill the Position of City Manager Following Retirement Announcement of Current City Manager Pursuant to Government Code section 54e57(bX1)
Motion by Vice Mayor Aquino, second by Councilmember Rodriguez to adjourn to closed session for the above referenced items. Motion passed by the following roll-call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Aquino, Rodriguez, Kozlowski
None
Ghalamcherla, Rohrbough
None
Draft- Not Official until Approved by the City Council Page 1
09/10/2024 Item No.5.
File 034-21 24-001
Folsom City Council Minutes
August 20,2024
REGONVENE
City Attorney Steven Wang announced that no final action was taken in discussion of items 1 and 2.
Vice Mayor Aquino announced that the Council received seven proposals and selected three firms to interview. The Council will hold another closed session on August 28 at 3:00 pm to interview search firms.
ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at 9:03 a.m.
SUBMITTED BY
Christa Freemantle, City Clerk
ATTEST
Mike Kozlowski, Mayor
Droft- Not Official until Approved by the City Council Page 2
09/10/2024 Item No.5.
File 034-21 24-001
Folsom City Council Minutes
August 27,2024
City Council Special Meeting
MINUTES
Tuesday, August 27,2024 5:45 PM
CALL TO ORDER
The special City Council meeting was called to order at 5:45 pm with Mayor Kozlowski presiding ROLL GALL:
Councilmembers Present Rosario Rodriguez, Councilmember Sarah Aquino, Vice Mayor
YK Chalamcherla, Councilmember
Michael Kozlowski, Mayor
Councilmembers Absent: Anna Rohrbough, Councilmember (arrived at 5:48 pm) ADJOURNMENT T CLOSED SESSION FOR THE NG PURPOSES:
1. Conference with Real Property Negotiator-Pursuant to Government Code section 54956.8:
Direction to staff regarding a possible lease of the Zittel Family Amphitheater located at 200 Wool Street, APN 070-0052-023-0000. Negotiating Parties: City Manager Elaine Andersen on behalf of the City of Folsom, and Judy Collinsworth, Executive Director, on behalf of the Folsom Historic District Association. Under Negotiation: Price and Terms of Lease Motion by Councilmember Rodriguez, second by Vice Mayor Aquino to adiourn to closed session. Motion passed by the following roll-callvote:
AYES: Rodriguez,Aquino,Ghalamcherla,Kozlowski
NOES: None
ABSENT: Rohrbough
ABSTAIN: None
RECONVENE
City Attorney Steven Wang announced that no final action was taken during closed session Draft- Not Official untilApproved by the City Council Page 1
09/10/2024 Item No.6.
File 034-21 24-001
Folsom City Council Minutes
August 27,2024
ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at 6:34 pm.
SUBMITTED BY:
Christa Freemantle, City Clerk
ATTEST:
Mike Kozlowski, Mayor
Droft- Not Officiol until Approved by the City Council Poge 2
09/10/2024 Item No.6.
File 034-2124-001
Folsom City Council Minutes
August 27,2024
Gity Gouncil Regular Meeting
MINUTES
Tuesday, August 27,2024 6:30 PM
CALL TO ORDER
The regular City Council meeting was called to order at 6:34 pm with Mayor Mike Kozlowski presiding ROLL GALL:
Councilmem bers Present: Rosario Rodriguez, Councilmember Anna Rohrbough, Councilmember
Sarah Aquino, Vice Mayor
YK Chalamcherla, Councilmember
Mike Kozlowski, Mayor
Councilmembers Absent. None
PLEDGE OF ALLEGIANCE
The pledge of allegiance was recited
BUSINESS FRO M THE FLOOR:
The following speakers addressed the City Council
1. David Reid
2. Gul Khan
3. Joanne Brausch
AGENDA UPDATE
City Attorney Steven Wang advised that there was additional information for items 12 and 17 GONSENT CALEN DAR:
Items appearing on the Consent Calendar are considered routine and may be approved by one motion Councilmembers may pull an item for discussion.
1. Approval of July 23, 2024 Regular Meeting Minutes
2. Approval of August 8,2024 Special Meeting Minutes
Draft- Not Official until Approved by the City Council Paqe 1
09/10/2024 Item No.6.
File 034-2124-001
Folsom City Council Minutes
August 27,2024
3. Ordinance No. 1347 - An Uncodified Ordinance of the City of Folsom Adopting Prima Facie Speed Limits on Folsom Lake Crossing, White Rock Road, and Savannah Parkway (Second Reading and Adoption)
4. Resolution No. 11238 - A Resolution Electing the Population and Inflation Factors and Establishing the Fiscal Year 2024-25 Appropriations Limit
5. Resolution No. 1 1239 - A Resolution Authorizing the City Manager to Execute a Purchase Agreement with Golden State Fire Apparatus lnc. for One Pierce Velocity PUC Type 1 Fire Engine
6. Resolution No. 11240 - A Resolution Authorizing the City Manager to Execute Amendment No 1 to the Agreement (Contract No. 173-21 22-007) with PSOMAS for Additional Construction Management and lnspection Services forthe Natoma Alley Rehabilitation and Replacement Project (Project \ A//1404) and Appropriation of Funds
7. Resolution No. 11241 - A Resolution Authorizing the Police Department to Accept a Cannabis Tax Grant in the Amount of $83,029.81 from the California Highway Patrol and Appropriation of Funds
8. Resolution No. 11242 - A Resolution Authorizing the City Manager to Execute Amendment No 1 to the Agreement (Contract No. 173-21 24-0OO) with HydroScience Engineers, lnc. for Additional Design and Engineering Services During Construction for the Tower Tank Rehabilitation Project ( Project W A2402)
9. Resolution No. 11243 - A Resolution Authorizing the City Manager to Execute an Agreement with West Yost & Associates, lnc. for Construction Management and lnspection Services for the Tower Tank Rehabilitation Project (Project WA2402)
10. Resolution No. 11244 -A Resolution of the Folsom City Council Supporting California Proposition 36 "lncrease Drug and Theft Penalties and Reduce Homelessness"
11. Resolution No. 11245 - A Resolution Authorizing the City Manager to Execute an Agreement with Pape Machinery, lnc. for the Purchase of a 12Yard Vacuum/Sewer Cleaning Truck and Appropriation of Funds
12. Pulled for discussion
'1 3. Resolution No. 11248 - A Resolution to Reject all Bids for the Pavement Repair and Resurfacing Project FY 24-25, Project No. 8017
14. Resolution No. 11249 - A Resolution of the City Council of the City of Folsom Authorizing the City Manager or City Manager's Designee to Execute Agreements with California Department of Transportation for the Sustainable Transportation Planning Grant Program for a Sustainable Transit Connections to Health Services Planning and Feasibility Study and Appropriation of Funds
Droft- Not Officiql until Approved by the City Council Poge 2
09/10/2024 Item No.6.
File 034-21 24-001
Folsom City Council Minutes
August 27,2024
15. Resolution No. 11254 - A Resolution Authorizing the City Manager to Execute a Subdivision lmprovement Agreement with Habitat for Humanity of Greater Sacramento for the Project Located at the Address Formerly Listed as 300 Persifer for the Purpose of Developing Affordable Housing
1 6. Resolution No. 11255 - A Resolution Authorizing the City Manager to Execute a Subdivision lmprovement Agreement and Accept Offers of Dedication for the Toll Brothers at Folsom Ranch phase 28 Subdivision, and Approval of the Final Map for the Toll Brothers at Folsom Ranch Phase 28 Subdivision
Motion by Councilmember Rodriguez, second.by Vice Mayor Aquino, to approve Consent Calendaritems 1-11 and items 13-16 Motion passed by the following roll-call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Rodriguez, Rohrbough, Aquino, Ghalamcherla, Kozlowski
None
None
None
coNSENT (:AI FNI]AR ITEMS pur r trD FoR DISCU sstoN.
12. Resolution No. 11246 - A Resolution Authorizing the City Manager to Execute an Agreement with Euro Style Management for the Construction of the Tower Tank Rehabilitation Project (Project PW2402) and Appropriation of Funds
Councilmember Chalamcherla pulled to this item to comment about outreach efforts. Environmental Water Resources Director Marcus Yasutake responded.
Motion by Vice Mayor Aquino, second by Councilmember Rodriguez, to approve Resolution No' 11246. Motion passed by the following roll-call vote:
AYES: Rodriguez, Rohrbough, Aquino, Ghalamcherla, Kozlowski NOES: None
ABSENT: None
ABSTAIN: None
PUBLIC EARING
17 . Cily of Folsom 2035 General Plan Amendments for lncreased Residential Capacity Project and Related Actions
i. Resolution No. 1 1250- A Resolution of the City Council of the City of Folsom Certifying the Subsequent Environmental lmpact Report for the 2035 City of Folsom General Plan Amendments lncreased Residential Capacity Project and Related Actions ii. Resolution No.1 1251- A Resolution of the City Council of the City of Folsom Amending the 2035 City of Folsom General Plan as it Relates to the lncreased Residential Capacity Project and Related Actions
Draft- Not Officiol until Approved by the City Council Page 3
09/10/2024 Item No.6.
File 034-2124-001
Folsom City Council Minutes
August 27,2024
iii. Resolution No 11252- A Resolution of the City Council of the City of Folsom Amending the Folsom Plan Area Specific Plan as it Relates to the lncreased Residential Capacity Project and Related Actions
Community Development Department Planning Manager Desmond Parrington made a presentation and responded to questions from the City Council. Community Development Deparlment Director Pam Johns and Environmental Water Resources Director Marcus Yasutake responded to Council questions for further clarification.
The public hearing was opened at7 .45 pm. Receiving no requests to speak, the public hearing was closed.
Motion by Councilmember Rodriguez, second by Vice Mayor Aquino to approve Resolution No. 11250. Motion passed by the following roll-call vote:
AYES: Rodriguez, Rohrbough, Aquino, Chalamcherla Kozlowski NOES: None
ABSENT: None
ABSTAIN: None
Motion by Councilmember Rodriguez, second by Vice Mayor Aquino to approve Resolution No' 11251. Motion passed by the following roll-call vote:
Motion by Councilmember Rodriguez, second by Vice Mayor Aquino to approve Resolution No. 11252. Motion passed by the following roll-callvote:
AYES:
NOES:
ABSENT:
ABSTAIN:
AYES:
NOES:
ABSENT:
ABSTAIN:
Rodriguez, Rohrbough, Aquino, Ghalamcherla Kozlowski
None
None
None
Rodriguez, Rohrbough, Aquino, Chalamcherla Kozlowski
None
None
None
City Attorney Steven Wang asked the City Council to confirm direction to staff. Council directed the Community Development Department to prepare objective design and development standards for target areas and zoning code amendments to implement the project.
NEW BUSINESS:
18. Resolution No. 11253 - A Resolution to Approve and Adopt a City-Wide Pay Schedule as Required by the California Public Employees' Retirement System (CaIPERS) Human Resources Director Allison Garcia made a presentation and responded to City Council questions.
Motion by Councilmember Rodriguez, second by Vice Mayor Aquino to approve Resolution No. 11253. Motion passed by the following roll-callvote:
Draft- Not Officiat until Approved by the City Council Page 4
09/10/2024 Item No.6.
File 034-2124-001
Folsom City Council Minutes
August 27,2024
AYES: Rodriguez, Rohrbough, Aquino, Chalamcherla, Kozlowski NOES: None
ABSENT: None
ABSTAIN: None
COUNCIL REOUESTS FOR FUTURE AGEN DA ITEMS
Vice Mayor Aquino suggested consideration of a City Council travel policy.
CITY MANAGER REPORTS
City Manager Elaine Andersen spoke about opening registration for Folsom Parks and Recreation's fall programs, Congressman Kevin Kiley presentation to Library Director Thom Gruneisen with a certificate for being voted the favorite library in California's third congressional district, and announced upcoming Town Hall meetings regarding the City's financial outlook and funding needs.
COUNCIL COMMEN TS
Councilmember Rodriguez noted the City Manager's retirement announcement and thanked her for her exceptional service.
Councilmember Chalamcherla spoke about Jake's Journey annual fundraising event and HART of Folsom's goal to build tiny homes at Oak Hills Church, and that he represented the Mayor at a recent SacRT meeting.
Vice Mayor Aquino spoke about Clean Air Day, thanked City staff for the last couple of weeks, especially City Manager Elaine Andersen, Public Works Director Mark Rackovan, Public Works Senior Civil Engin eer Zach Bosch, Steve and Tim in the sign shop, Police Chief Hillman and Sergeant Galovich and the motor officers for ensuring parents are being safe while dropping off their kids at school, and Municipal Landscape Services Manager Jamison Larsen helping with landscaping in Russell Ranch. She attended the celebration of life of Terri Hemley along with current and prior city staff and reminded everyone the importance showing staff the respect that they deserve.
Mayor Kozlowski spoke about the Folsom History Museum and the upcoming Folsom Mayor's Cup golf tournament. Supervisor Frost will be holding a public meeting at the library. He also thanked his colleagues for agreeing to meet at 8:00 am for a special City Council meeting while he was in Korea and thLnked Councilmember Chalamcherla for attending SacRT on his behalf. He also spoke about his trip to Korea with the Greater Sacramento Economic Council.
Draft- Not Officiol until Approved by the City Council Page 5
09/10/2024 Item No.6.
File 034-21 24-001
Folsom City Council Minutes
August 27,2024
ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at 8:12 pm.
SUBMITTED BY
Christa Freemantle, City Clerk
ATTEST
Mike Kozlowski, Mayor
Droft- Not Officiol until Approved by the City Council Poge 6
09/10/2024 Item No.6.
File 034-2124-001
Folsom City Council Minutes
August 28,2024
City Council Special Meeting
MINUTES
Thursday, August 28, 2024 3:00 PM
CALL TO ORDER
The special City Council meeting was called to order at 3:00 p.m. with Mayor Kozlowski presiding ROLL GALL:
Councilmembers Present: Sarah Aquino, Vice Mayor
YK Chalamcherla, Councilmember
Anna Rohrbough, Councilmember
Rosario Rodriguez, Councilmember
Mike Kozlowski, Mayor
Councilmembers Absent: None
ADJOURNMENT TO CLOSED SESSIO N FOR THE FOLLOWING PURPOSES
1. Public Employee Appointment - Recruitment to Fill the Position of City Manager Following Retirement Announcement of Current City Manager Pursuant to Government Code section 54e57(bX1)
Motion by Vice Mayor Sarah Aquino, second by Gouncilmember Rodriguez to adjourn to closed session for the above referenced item. Motion passed by the following roll-call vote:
AYES: Aquino,Chalamcherla,Rohrbough,Rodriguez,Kozlowski NOES: None
ABSENT: None
ABSTAIN: None
RECONVENE
Mayor Kozlowski announced that the Council interviewed three firms and selected the firm Bob Murray & Associates for city manager recruitment services.
Droft- Not Officiol until Approved by the City Council Page 1
09/10/2024 Item No.7.
File 034-2124-001
Folsom City Council Minutes
August 28,2024
ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at 5:51 p.m"
SUBMITTED BY:
Christa Freemantle, City Clerk
ATTEST:
Mike Kozlowski, Mayor
Draft- Not Officiol until Approved by the City Council Page 2
09/10/2024 Item No.7.
Folsom City Council
Staff ort
RECO ATION / CITY COUN ACTION
Staff requests that the Mayor appoint Joe Helo (with approval from the City Council) to the Folsom Landscaping and Lighting District Advisory Committee to represent the Cobble Ridge District for the term ending in Decembet 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 purpose as helping to enhance the 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 (unless they are appointed to serve the remainder of an unfilled term).
POLICY/ RULE
Folsom Municipal Code Section 16.56.030(B) states that the mayor shall appoint each of the members, subject to the approval of the City Council.
1 MEETING DATE: 911012024
AGENDA SECTION: Consent Calendar
SUBJECT: Appointment of At-Large Member to the Folsom Landscaping and Lighting District Advisory Committee to Represent the Cobble Ridge District
FROM: City Clerk's Depaftment
09/10/2024 Item No.8.
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 Cobble Ridge District vacant seat from Joe Helo.
Staff has confirmed that the applicant's address is within the Cobble Ridge District and that the applicant is a registered voter and they are therefore eligible to be appointed.
NT
Application from Joe Helo
Respectfully submitted,
Christa Freemantle, CMC
City Clerk
2Page 102
09/10/2024 Item No.8.
FOLSOI'4 CIT'/ CLERI('S DEFT I
5 AUG'24 nti8:18 ?V /
m
Irolsom Commission and Committee
APPLICATION
Thank you fr.rr your irrterest in sewing on a Folsorn conrmission or cornmittce, BeforeYou Begin:
. Please read this form and instructions earefully-
. Complete all pages and sign the application.
. Applications remain active for six monlh.s after submittal' Return completed upplications to;
City Clerk's Dipartmenl, Folsom City Ilall,5o Natoma Street, Folsom, CA gS6gtt Applicant lnformation: (All informalion is required)
Narne:
Residence Address:
Email:
Phone:
Employer and Occupation:
Joseph Monther Helo
IFolsom,cags63o
kha l.com
916-873-2200
State of California - Senior Financial lnstitutions Examiner Currently Serving on a Oommission/Comntiftee? If yes, please specify:
No
Folsom Residency / Registered Voter Verification: Commission and Committee members must be residents and registered voters of h'o'lsom.
Registeredtovote? lndicateYes / No y99
Financial Disclogure / Drhlco Training:
Inelicrte Yos / No:
YesI understand that comrnission and comminee members must file statements disclosing financial information.
I understand that commission and cornrnitlee lrtembers must complete ethics and harassment training.
lndicale Yes / No:
Yes
'lluth and Accuracy: I certi$ that the information contained on this form is tnre and accurate:
, Joe Helo
Digit'lly iignod by Jor rhlo
Datc: 2024,00,05 07; l0:d2'07'00' 08ta5/2a24l)ate:Signature lrnportant pu6llc Records Infgrmatlon: Thc city may receive requests.from the public to review doeumcnls such as *ti,if"i- "na itt. .ity ir obligated to rclcase thesc pubiic rccords, including all inforrnation contained on the form.
Page L of4
09/10/2024 Item No.8.
FOLSOM COMMISSION AI.{D COMMITTEE APPLICATION
ApplicantName: Joseph Monther Helo
Choice of Commission or Committee;
(*t;a1| interestea in multiple commissions, please rank them numerically accordingto your preference) Arts and Culture Commission
Historic District Commission*
Please identify which seat you qualify for:
representative who is actively involved with historic presenration representative who is a resident of the Historic District representative who.owns a busine"ss within the Sutter Street Subarea - - iJ;Hlr.:h*?fil"lftttoric District business outside the surler srreer subarea architect, lanilscape architect, or other design professional with experlise in historic preservation x Landscaping and Lighting District Advisory Committee* Please advise which L&L Districtyou live in:
DistrictofResidence' CObblg Ridge
LibraryCommission
Parks and Recreation Commission
Planning Comtnission
Traffic Safety Committce*
Please identify which seat you quali$ for:
representative representing a wide cross section of interests representative who has demonstrated an interest in or a concern for pedes$ian and bicycle safety Utility Commission
Other:
*Appllcatlon Supplement Required: .
Sdile*;tat infoii"tioo is required for the Historic District Commission, Landscape and Lighting District Advisory Coil*itiu", und the Traffic Safeiy Committee. These boards have special qualification requirements for certain seats.
Continueto nextPnge
09/10/2024 Item No.8.
FOLSOM COMMISSION AI.ID COMMITTEE APPLICATION
ApplicantNamer Joseph Monther Helo
Informational euestions: (you must answer all four questions, for all commissions or eommittees you are applyrng for);
r. Why do you want to serve on this commission or committee:
I am writing to express my interest in volunteering for one of Folsom's cornmunity service committeei. As a dedicated resident of Folsom, I am eager to contribute my time and skills to support and enhance our vibrant community.
Having lived in Folsom for 10+ years, I have witnessed firsthand the positive impact that community servic6 initiatives have on our city. The sense of unity and the spirit of volunteerism that permeate our community are truly inspiring. I am particularly drawn to the opportunity to serve on a committse because I believe it is i mebningrut way to give back and help address the needs of our residents.
I am particularly interested in filling the Cobble Ridge seat for the Advisor Committee for the Landscaping anO Lighlng Dlstrict, as I believe my residency, experience and interests align wellwlth the goad of-this corimitt6e. I arn eag6r to collaborate with other dedicated resldent-volunteers and city officials to develop and implement programs that will benefit our community.
Thank you for considering rny application. I am excited about the possibility of contributing to the continuld growth and suiceis of Folsom through volunteer service. I look forward to the opportunity to discuss how I can be of service to our community.
z. What do you think is(are) the top issue(s) facing this commission or committee:
Lack of interest, too many vacant seats'
Contlnueto n€t$Pagc
09/10/2024 Item No.8.
FOI,SOM COMM ISSION A}..ID COMMI]TEE APPLICATION
ApplicantName: Joseph Monther Helo
3. Briefly describe how your experiences quali$ you to serve on the commission or committee:
A Folsom resident
Real Estate broker since 2005
BA Public Administration and MBA Finance
Folsom small business owner
Public sector employee since 2017 (Federaland State government) lnterested in servlng my local community
4. Which commission or committee meetings have you attended? None so far, I affended City Gouncil meetings but not committee meetings.
END OFAPPLTCATIONFORM
Return comPleted aPPlications to :
CityClerk s Department, Folsom CIty Uail, 5o Natoma Street, Folsom, CA 95630
09/10/2024 Item No.8.
m
Folsom City Council
Staff ort
RF],COMMENDATION / COIINCIL ACTION
Staff recommends the City Council adopt Resolution No. I 1247 - A Resolution of the City Council of the City of Folsom Approving the Amended Budgets for Landscaping and Lighting Districts, and Community Facilities Districts for Fiscal Year 2024-25 and Appropriation of Funds.
BACKG / ISSIIE
On June 25,2024, the City Council Approved Resolution No. 11210 - A Resolution Adopting the Fiscal Year 2024-25 Operating and Capital Budgets for the City of Folsom, the Successor Agency, the Folsom Public Financing Authority, and the Folsom Ranch Public Financing Authority. Then on July 23,2024, the council approved Resolution No. 11236 - A Resolution Approving the Final Engineer's Report for the following Landscaping and Lighting Districts for Fiscal Year 2024-2025 American River Canyon North, American River Canyon North No. 2, American River Canyon North No. 3, Blue Ravine Oaks, Blue Ravine Oaks No. 2, Briggs Ranch, Broadstone, Broadstone No. 4, Broadstone Unit No. 3, Cobble Ridge, Cobble Hills Ridge IllReflections II, Folsom Heights, Folsom Heights No. 2, Hannaford Cross, Lake Natoma Shores, Los Cerros, Natoma Station, Natoma Valley, Prairie Oaks Ranch, Prairie Oaks Ranch No. 2, Prospect Ridge, Sierra Estates, Silverbrook, Steeplechase, The Residences at American River Canyon, The Residences at American River Canyon II, Willow Creek Estates East, Willow Creek Estates East No. 2, Willow Creek Estates South, and Willow Springs. 1 MEETING DATE: 9t1012024
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 11247 - A Resolution of the City Council of the City of Folsom Approving the Amended Budgets for Landscaping and Lighting Districts, and Community Facilities Districts for Fiscal Year2024-25 and Appropriation of Funds
FROM: Parks and Recreation Department
09/10/2024 Item No.9.
The figures presented for the Landscaping and Lighting Districts, and Community Facilities Districts in the Operating and Capital Budget document were preliminary and accounted for the fixed costs of scheduled maintenance, power, and water. These initial figures however did not include the major projects, unscheduled costs, and other costs that fluctuate from year to year.
After the initial figures were provided for the Operating and Capital Budget, the Municipal Landscape Manager worked with the consultant who handles the Landscaping and Lighting District, and Community Facilities District engineering services and created the detailed budgets that are included in the Engineer's Reports. Due to the timing of the Operating and Capital Budget document and the Engineers Reports, there is a difference in revenue and expenditure projections.
The individual budgets including revenue and expenses as presented in the Final Engineers Report are accurate and account for all expenses for fiscal year 2024-25. The assessments found in the Final Engineers Report are built upon the budgets contained within that document and provide for the necessary services including irrigation water, power, streetlight repairs, landscape maintenance, ladder fuel removal, weed abatement and other planned expenses. The attached revenue and expense table illustrates the adopted budget, the proposed budget amendment, and the fiscal year 2024-25 amended budget. The proposed budget amendment will increase budgeted revenues and expenditures from $4.41 million to $6.6 million.
The major areas that make up the difference from the adopted expenses and the amended expenses are the inclusion of costs for weed abatement $202,000, ladder fuel removal $202,000, tree work $242,000, irrigation parts $155,000 and planned landscape projects in various districts $1.22 million. The above-mentioned costs in addition to line-item true ups in utilities and regular maintenance costs account for the $2.2 million increase in expenses.
POLICY / RULE
Pursuant to FMC 3.02.030 section H. "The city council may make supplemental appropriations during the course of the fiscal year provided that the city manager certifies that moneys are available. A11 such supplemental appropriations shall be made for the fiscal year by resolution, up to the amount of any excess moneys certified by the city manager as being available."
ANALYSIS
The Operating and Capital Budgets for the City of Folsom were adopted as Resolution No. ll2l0 on June 25,2024. The Final Engineers Reports were approved as Resolution No. 11236 on July 23,2024. The preliminary figures found in the Operating and Capital Budget document vary from those found in the detailed Engineer's Report and an amended budget is being requested. FMC 3.02.030 section H. states "The city council may make supplemental appropriations during the course of the fiscal year provided that the city manager certifies that moneys are avarlable. All such supplemental appropriations shall be made for the fiscal year by resolution, up to the amount of any excess moneys certified by the city manager as being available."
Revenues and expenditures in the proposed amended budget total $6.6 million. 2 Page 108
09/10/2024 Item No.9.
FINANCIAL IMPACT
The City Council approved Resolution No. 11210 on June 25,2024 adopting the Fiscal Year 2024-25 Operating and Capital budgets. Subsequently the City Council approved Resolution No. 11236 onJuly 23,2024 the approving the Final Engineer's Report for the City of Folsom Landscaping and Lighting Districts for Fiscal Year 2024-25 and ordered the ler,y of assessments as set forth in the report. Due to the difference is timing between the adoption of the budget and the calculation of the Final Engineer's Report additional expenditures for major projects and unscheduled maintenance were included in the Final Engineer's Report that were not included in the adopted budget. Staff is requesting the City Council authorize an appropriation and increase to the revenue budgets for the Landscaping and Lighting Districts and Community Facilities Districts as shown in the attached tables "Proposed Budget Amendment" column totaling $2,190,826. Each Landscaping and Lighting District and Community Facilities District levies and collects funds to cover operating and maintenance costs attributed to district assets. There is no fiscal impact to the City of Folsom General Fund.
ENVIRONMENTAL REVIEW
This action is exempt from environmental review under the California Environmental Quality Act (CEQA).
ATTACHMENTS
1. ResolutionNo. 11247 - A Resolution of the City Council of the City of Folsom Approving the Amended Budgets for Landscaping and Lighting Districts, and Community Facilities Districts for Fiscal Year 2024-25 and Appropriation of Funds
2. Landscaping and Lighting District, and Community Facilities District revenue and expense table.
Submitted,
Kelly Gonzalez, Parks & Recreation Director
aJ Page 109
09/10/2024 Item No.9.
ATTACHMENT 1
09/10/2024 Item No.9.
RESOLUTION NO. II247
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM APPROVING
THE AMENDED BUDGETS FOR LANDSCAPING AND LIGHTING DISTRICTS, AND COMMUNITY FACILITIES DISTRICTS FOR FISCAL YEAR 2024-25, AND
APPROPRIATION OF FUNDS
WHEREAS, section 3.02.030 for the Folsom Municipal Code state "An Annual Budget shall be prepared by the City Manager, with assistance of the Finance Director ..."; and WHEREAS,'oThe city council may make supplemental appropriations during the course of the fiscal year provided that the city manager certifies that moneys are available . . ."; and WHEREAS, the Fiscal Year 2024-25 Operating and Capital Budget for the City of Folsom was adopted as Resolution No. ll2l0 on June 25 2024; and WHEREAS, the City of Folsom Landscaping and Lighting Districts Final Engineer's Report was approved as Resolution No. 11236 onJuly 23,2024; and WHEREAS, the preliminary figures provided in the Operating and Capital Budget document vary from the detailed figures in Final Engineers Report as prepared by the engineering consultant; and
WHEREAS, the amended budget reflects the revenues and expenses as outlined in the City of Folsom Landscaping and Lighting Districts Final Engineer's Report:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom that the Landscaping and Lighting and Community Facilities District Fiscal Year 2024-25 Revenue and Expenditure Budget tables attached to this resolution are hereby appropriated to the Landscaping and Lighting Districts, and Community Facilities Districts in the amounts therein stated.
PASSED AND ADOPTED this 1Oft day of September 2024, by the following roll-call vote:
AYES:
NOES:
ABSENT:
ABSTAIN
ATTEST
Councilmember(s):
Councilmember(s):
Councilmember(s):
Councilmember(s):
Christa Freemantle, CITY CLERK
Resolution No. 11247
Michael D. Kozlowski, MAYOR
09/10/2024 Item No.9.
ATTACHMENT 2
09/10/2024 Item No.9.
Landsca and / Community Facitities District FY 2024-25 Revenue Bud$et Proposed BudBet
Amendment
FY 2024-25 Amended
BudgetFund #
FY 2024-25 Adopted
BudgetDistrict
27,237$ $ 92,433204 55,196$Los Cerros L&L
77,470$ !25,203$205 t07,733$Briggs Ranch L&L
64,4r1$ 372,443$207 248,032$Natoma Station L&L
28,353$ 44,684$208 16,331$Folsom Heights L&L
9,876$ 38,71"1$209 28,835$Broadstone Unit 3 L&L
r79,842$ 403,208$2t0 223,366$Broadstone L&L
1.0,487$ 39,893$212 29,406$Hannaford Gross L&L
3,305$ 31,138$213 27,833$Lake Natoma Shores L&L
7,224$ 62,711$214 $ 55,487Cobbte Hitts/Reftections L&L
337,854$113,303$ 224,557$Prairie Oaks Ranch #2 L&L 275
74,044$'J,3,273$ 771$Sierra Estates L&L 231.
62,726$53,689$ 9,037$232Natoma Vattey L&L
37,543$13,006$ 24,537$234Cobbte Ridge L&L
77,02'J.$r34,664$ (57,643)$236Prairie Oaks Ranch L&L
'J,'J,,476$10,542$ 934$237Sitverbrook L&L
30,982$24,088$ 6,894$249Wittow Creek East L&L
41,565$74,442$ 27,723$250Btue Ravine Oaks L&L
47,977$27,477$ 20,440$257Steeptechase L&L
$ 364,424777,095$ r87,329$252Wittow Creek South L&L
1,08,73!$77,374$ 37,477$253American River Canyon North L&L 15,798$10,559$ 5,239$260WiltowSprings L&L
199,115$134,385$ 64,730$262WittowSprings CFD 11Mtn. Dist. 1,,r28,473$581,886$ 546,587$266CFD t2 Mnt. Dist.
117,096$165,813$ (48,717)$267CFD #13 ARC Mnt. Dist.
5,764$5,71.4$ 50$270ARC North #2 L&L
26,947$27,122$ (175)$27LThe Residences at ARC North L&L 577,298$87,726$ 489,572$275ARC North #3 L&L
74,285$29,754$ 44,53\$278Blue Ravine Oaks #2 L&L
$ 73,28!48,67!$ 24,6'J,0$28LFotsom Heights #2 L&L
256,749$(772,283)$282 $ 368,432Broadstone #4
66,626$ 155,2r7$283 88,591$CFD #16 The lstands
15,427$ 97,677$284 76,244$Wittow Creek Estates East L&L 6,202$ 37,052$285 $ 24,850Prospect Ridge L&L
221,095$ 7,3!4,473$288 1,093,378$CFD #18 Maint. Dist.
$ 35,586 93,951$289 $ 58,365CFD #19 Maint. Dist.
(876)$ $ 62,98629t $ 63,862CFD #23 A1 Maint. Dist.
3,296$ $ 15,546292 12,250$CFD #23 A2 Maint. Dist.
356$ 20,509$293 20,753$CFD #23 A3 Maint. Dist.
(625)$ 60,750$294 67,375$cFD #23 A4
4,000$ 4,000$296 $cFD #23A6
2,000$ 2,000$297 $cFD #23 A7
6,501,068$4,410,242$ 2,190,826$Totat Budgeted Revenues
09/10/2024 Item No.9.
Landsca and / Community Facilities District FY 2024-25 Expenditure Bud$et Proposed Bud$et
Amendment
FY 2024-25 Amended
BudgetFund #
FY 2024-25 Adopted
BudgetDistrict
27,237$ 82,433$204 55,196$Los Cerros L&L
77,470$ 'J,25,203$707,733$205Briggs Ranch L&L
31.2,443$248,032$ 64,41.7$207Natoma Station L&L
44,684$16,331$ 28,353$208Folsom Heights L&L
38,71.1$28,835$ 9,876$209Broadstone Unit 3 L&L
$ 403,208223,366$ 179,842$210Broadstone L&L
39,893$1.0,487$212 29,406$Hannaford Cross L&L
31,138$3,305$2L3 27,833$Lake Natoma Shores L&L
62,771.$7,224$214 55,487$Cobbte Hitts/Reftections L&L
337,854$224,557$275 113,303$Prairie Oaks Ranch #2 L&L
14,044$777$23L 73,273$Sierra Estates L&L
62,726$9,037$232 53,689$Natoma Vattey L&L
37,543$24,537$234 13,006aCobbte Ridge L&L
77,021.$(57,643)$236 134,664$Prairie Oaks Ranch L&L
11,476$934$237 10,542$Sitverbrook L&L
30,982$6,894$249 24,088$Wittow Creek East L&L
41,565$27,!23$250 $ 74,442Blue Ravine Oaks L&L
47,977$20,440$25L 27,477$Steeptechase L&L
187,329$ 364,424$252 177,095$Wittow Creek South L&L
31,477$ L08,731$253 77,374$American River Canyon North L&L 5,239$ 15,798$260 10,559$WittowSprings L&L
64,730$ 199,115$262 134,385$Wiltow Springs CFD 11 Mtn. Dist. 546,587$ 7,728,473$266 581,886$CFD 12 Mnt. Dist.
9e,777)$ 777,096$267 165,813$CFD #13 ARC Mnt. Dist.
50$ 5,764$270 5,71.4$ARC North #2 L&L
(175)$ 26,947$27L 27,122$The Residences at ARC North L&L 489,572$ 577,298$275 87,726$ARC North #3 L&L
44,537$ 74,285$278 29,754$Btue Ravine Oaks #2 L&L
24,6'1.0$ 73,28'J.$287 48,677$Folsom Heights #2 L&L
(172,283\$ 256,749$282 368,432$Broadstone #4
66,626$ 1.55,217$283 88,591$CFD #16 The lstands
!5,427$ 97,67r$284 76,244$Witlow Creek Estates East L&L 6,202$ 3!,052$24,850$285Prospect Ridge L&L
$ 22r,095 1,,374,473$288 1,093,378$CFD #18 Maint. Dist. 35,586$ 93,951$a 58,365289cFD #19 Maint. Dist.
(876)$ 62,986$291 63,862$CFD #23 A1 Maint. Dist.
3,296$ 15,546$292 1.2,250$CFD #23 A2 Maint. Dist.
356$ 20,509$293 20,753$CFD #23 A3 Maint. Dist.
60,750$61,375$ (625)$294cFD#2344
4,000$$ 4,000$296cFD #23 A6
2,000$$ 2,000$297cFD #23 A7
2,190,826$ 6,601,068$$ 4,41.0,242Totats Budgeted Expendidtures
09/10/2024 Item No.9.
Folsom City Council
Staff Re ort
RECOMMENDATION / CITY COUNCIL ACTION
Staff recommends that the City Council pass and adopt Resolution No.11256 - A Resolution Accepting Fiscal Year 2023-24 Department of Homeland Security Grant Funds Awarded Through the California Office of Emergency Services Grant Fund and Appropriation of Funds
BACKGROUND / ISSUE
In December 2023, the Police Department applied for a grant issued by the State Homeland Security Grant Program. The application was specifically tailored to provide funds to replace an existing tactical robot primarily utilized by the Department's SWAT Team. In August 2024, the Department received the grant award letter designating $74,726 to be used for the purchase of the ICOR Mini Caliber Robot.
This equipment will be primarily used by the department's SWAT team but has several explosive ordinance disposal (EOD) applications as well. This robot is designed for rapid tactical missions and is easily operated from a handheld controller. Its capabilities include the ability to remotely search rooms, undercarriage of vehicles, hallways, stairwells, and confined spaces. It also gives the operator the ability to communicate with suspects/victims through a two-way omnidirectional microphone and see the inside of structures or vehicles with video capability. The robot also includes an extendable, rotating claw that simplifies opening door handles. As part of a de-escalation package, the robot can also be used to deliver equipment, such as a phone or medical supplies, establish communication with suspects/victims during an extended incident without exposing personnel.
1 MEETING DATE: 911012024
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 1 1256 - A Resolution Accepting Fiscal Year 2023-24 Department of Homeland Security Grant Funds
Awarded Through the California Office of Emergency Services Grant Fund and Appropriation of Funds
FROM: Police Department
09/10/2024 Item No.10.
The department is currently utilizing an older robot that can accomplish some of the above tasks; however, the apparatus is approximately 10 years old, does not have the ability to manipulate doors, and the company is no longer in business. As such, they are no longer offering any forms of technical or repair support services. This fact has resulted in the Folsom Police Department's SWAT team having to borrow similar equipment from other tactical teams to safely resolve an incident.
POLICY / RULE
City Council ResolutionS36T states that grant applications, including any requiring an ongoing commitment of resources or staff, shall be reviewed and approved by the City Council prior to submittal. Assembly Bill481 (Government Code 7071(a)(1)(B)) requires law enforcement agencies to seek approval from their local governing body prior to accepting funds for the purchase of military equipment.
ANALYSIS
On July 9,2024, the Police Department submitted the annual report to the City Council regarding the use of military equipment and renewal of Ordinance No. 1326 in compliance with Assembly Bill 481. The City Council renewed the ordinance and passed a resolution approving the report. The report included the use and possession of one tactical robot (Robotex Avatar) and the intention to purchase a new tactical robot if grant funds were awarded to the Police Department.
Implementation within the department is expected to be seamless, as the SWAT team is already familiar with operating such equipment. Training can be seamlessly incorporated into the team's regular monthly schedule, eliminating the need for additional training costs. The project addresses the evolving landscape of tactics and incidents requiring law enforcement intervention, aligning with California's mandated policies on de-escalation. By focusing on time and distance, this technology enables operators to communicate safely, gather intelligence, and identiff potential threats without immediate action.
The company manufacturing the ICOR Mini Caliber Robot has given an estimated lead time of nine months. For this reason, the Police Department does not expect to receive or begin using the new robot until approximately June 2025. Ordinance No. 1326 will be updated to reflect the new robot before it goes into service.
FINANCIAI,IMPACT
The Department of Homeland Security through the California Office of Emergency Services awarded the City grant funding in the amount offi74,726 with no local matching funds requirement from the City for the purchase of an ICOR Mini Caliber Robot. These funds will include all the required equipment and technical support. There are no additional anticipated 2 Page 116
09/10/2024 Item No.10.
training costs. If accepted the grant award would rncrease revenue estimates and appropriations by $74,726 in the General Fund (Fund 010).
ATTACHMENTS
1. Resolution No. I 1256- A Resolution Accepting Fiscal Year 2023-24 Department of Homeland Security Grant Funds Awarded Through the California Office of Emergency Services Grant Fund and Appropriation of Funds
Submitted,
Richard Hillman, Chief of Police
-) Page 117
09/10/2024 Item No.10.
RESOLUTION NO. 11256
A RESOLUTION ACCEPTING FISCAL YEAR 2023.24 DEPARTMENT OF
HOMELAND SECURITY GRANT FUNDS AWARDED THROUGH THE
CALIFORNIA OFFICE OF EMERGENCY SERVICES AND GRANT FUND AND
APPROPRIATION OF FUNDS
WHEREAS, the Department of Homeland Security through the California Office of Emergency Services offers grants to fund front-line law enforcement services; and WHEREAS, the grant funding available to the City of Folsom for Fiscal Year 2024-25 is $74,726; and
WHEREAS, these funds are separate andapart from the proposed allocations from the City's general fund and an additional appropriation is needed; and WHEREAS, the Chief of Police has requested to allocate and appropriate these funds for the for the purchase of the ICOR Mini Caliber tactical robot; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom hereby authorizes the use of the funding in accordance with the request of the Chief of Police to purchase the ICOR Mini Caliber tactical robot; and
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Folsom approves the acceptance of a grant from the Department of Homeland Security through the California Office of Emergency Services for the purchase of the ICOR Mini Caliber tactical robot; and NOW, THEREFORE, BE IT FURTHER RESOLVED that the Finance Director is authorized to increase revenue estimates and appropriations by $74,726, the grant award amount, in the General Fund (Fund 010).
PASSED AND ADOPTED this 10th day of September 2024, by the following roll-call vote
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST
Councilmember(s):
Councilmember(s):
Councilmember(s):
Councilmember(s):
Michael D. Kozlowski, MAYOR
Christa Freemantle, CITY CLERK
Resolution No. 11256
Page I of 1 Page 118
09/10/2024 Item No.10.
r ::!.1 :'i I r'i r,
Folsom City Council
Staff ort
MEETING DATE: 911012024
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 11257- A Resolution Authorizing the City Manager to Execute a Consultant Services Agreement with Dewberry, Inc. for Construction Management and Inspection Services and Appropriation of Funds from the Community
Facilities District Fund and Authorize aPartialNotice to Proceed for Pre-Construction Tasks for an amount not to exceed $200,000 for the Phase 2Water Improvements Project (Phase 2A)
FROM: Environmental and Water Resources Department
ATION / CITY COUN ACTION
The Environmental and Water Resources Department recommends the City Council pass and adopt Resolution No. 1 1257 - A Resolution Authorizing the City Manager to Execute a Consultant Services Agreement with Dewberry, Inc. for Construction Management and Inspection Services and Appropriation of Funds from the Community Facilities District Fund and Authorize a Partial Notice to Proceed for Pre-Construction Tasks for an amount not to exceed $200,000 for the Phase 2Water Improvements Project (Phase 2A)'
BACKGRO IND / ISSI]F],
The City of Folsom currently supplies treated and untreated water to an artay of residential, commercial, institutional, and industrial users for over 25,000 connections. Based on land use, water demand, and water supply detailed in the City's Water Master Plan, the ultimate Folsom Plan Area (FPA) maximum daily demand is 8.8 million gallons per day (MGD), which does not include the 0.4 MGD demand within the El Dorado Irrigation District service area.
The proposed phase of the project will construct a new 24" diameter water transmission pipeline that extends from an existing manifold located at the intersection of East Bidwell and Iron Point, on the northerly side of US 50, and extends north to the City's Water Treatment Plant (WTP) by 1
09/10/2024 Item No.11.
ways of the rail and trail shoulder located on East Bidwell to Oak Avenue Parkway and placement within Oak Avenue Parkway. The project generally consists of the following:
. Additional potholing as needed to identiff utility conflicts. o Development of Traffic Control Plans for work covered in the project plans and specifications.
o Construction of approximately 19,700 L.F. of new 24" pipeline along the Oak Avenue and East Bidwell corridors.
o Construction of tie-ins to existing pipelines at the WTP, Scholar Way and Broadstone Parkway.
o Trail modifications, grading, paving, drainage system modifications, and tree protection.
The Phase 2Water Improvements Project (Phase 24) construction contract was released for public bidding on August 14,2024, with a public bid opening to be held on September 17,2024. The item under consideration is for consultant services related to Construction Management and Inspection Services for the project.
POLICY / RULE
In accordance with Chapter 2.36 of the Folsom Municipal Code, supplies, equipment, services, and construction with a value of $73,209 or greater shall be awarded by City Council.
In accordance with California Government Code Section4526, selection by a state or local agency head for professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management firms shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required.
ANALYSIS
Due to the volume of work required to deliver the Phase 2 Water Improvements Project (Phase 2A), on June 14, 2024,the City issued a Request for Proposals (RFP) from consultants to provide construction management services consisting of full-time, on-site inspection, project constructability review, pre and post construction documentation, project schedule tracking, review andlor coordination of project submittals,labor compliance review, customer coordination, materials testing, and overall owner representation throughout construction. City staff included the RFP on the City's website, on CIPList, and on Public Purchase (two nationwide online databases for bid opportunities). In addition to these online listings, City staff directly contacted 14 consulting firms given their experience completing similar types of services for City projects and other municipal agencies in the past.
In the RFP, the City provided the consultants with the evaluation criteria and the associated points available. The following table shows the breakdown of the points for each of the criteria. A narrative of the expectations for the evaluation criteria was also provided in the RFP. 2 Page 120
09/10/2024 Item No.11.
Evaluation Criteria
Overall approach to the project
Capabilities of the project team
Qualifications and availability of the project team
Project understanding and approach to the project
Ability to meet contract requirements
Total possible points 100
Proposals were due to the City Clerk's Office on July 23, 2024, and the City received five proposals. The selection panel consisted of four City staff from the Community Development, F,rUti. Works and the Environmental and Water Resources Departments who then reviewed each of the proposals and provided their respective scores below based on the evaluation criteria listed above. The review panel also included Kelley Butcher of Pinnacle Project Management, who is the Owner's Representative (overall project management and inspection) for the construction of the City's infrastructure in the Folsom Plan Area. The scores below are determined solely on the demonstrated competence and on the professional qualifications for the satisfactory performance of the services necessary as required by California Government Code Section 4526 and do not include any reference to proposal cost.
Maximum Possihle Points
5 15
35 35
10 Consultant
4 LEAF,Inc.
Dewberry
Ghirardelli Associates
PSOMAS
West Yost Associatesl
R1 R2
88 82
84 79
7t 69
60 87
NR NR
R3 R4
75.5 84
73 88
50 73
75 59
NR NR
Average
82.9 82.4
67.0 70.2
NR
R5
85 88
72 70
NR
The top three consultants by average score were interviewed on August 20,2024 to further discuss the proposed project, the consultant's approach for its management of this type of project, the consultant's experience, the proposed project team, and provide the consultants with an opportunity to provide additional feedback on the project or other items related to the consultant's capabilities. After the interviews were completed, the review team ranked the three consultants in the following order and selected Dewberry as the highest-ranking consultant for construction management and inspection services.
Consultant
Dewberry
4LEAF
PSOMAS
Once the review panel completed its overall rankings after interviews, City staff opened the cost proposal and discussed the overall scope and fee with Dewberry. There were several scope related items that City staff and Dewberry agreed could be reduced without compromise to services and this negotiation resulted in nearly a $310,000 savings from the proposal for a total contract value I West Yost and Associates was deemed non-responsive as the firm did not include a required quality assurance review of the 100% plans and technical specifications provided with the RFP. As stated in the RFP, the review must be completed and submitted with the proposal.
Overall Rank
1 2
J
3 Page 121
09/10/2024 Item No.11.
of $2,435,058. The engineer's estimate for construction management and inspection services was s2,925,000.
This resolution will authorize City Manager to execute a Consultant Services Agreement with Dewberry, Inc. for Construction Management and Inspection Services and appropriation of funds from the Community Facilities District Fund and authorize a Partial Notice to Proceed for pre- construction tasks for an amount not to exceed $200,000 for the Phase 2 Water Improvements Proiect (Phase 2A).
FISCAL IMPACT
This agreement is funded by pay-as-you-go (PAYGO) firnds from the established Community Facilities District No. 17 (the District) (Fund 737).The District is located within the Folsom Plan Area, with boundaries contiguous with the Plan Area but excluding Folsom Heights. PAYGO firnds were collected by the District to offset expected cost ovemms with the Willow Hill Pipeline Project.
Those oveffuns never materialized, leaving these PAYGO funds to be used for the benefit of the District. Thus, no ratepayer funding will be used to fund this contract. The EWR Department recommends that the contract be awarded to Dewberry, Inc. for an amount not to exceed $200,000.
The partial notice to proceed will allow for some pre-construction activities to begin. This includes, but is not limited to, project setup and documentation control, constructability review, plans and specifications addendums, and construction administration support. The remaining balance of approximately $2,235,058 for the total contract amount will come back to City Council in October 2024.
ENVIRO AI, REVIEW
On December 11, 2072through ResoiutionNo. 9096, the Folsom City Council approved and certified an addendum to the Environmental Impact Report, along with its related Mitigation Monitoring and Reporting Program, for the Folsom Plan Area (FPA) Specific Plan Project for purposes of analyzing an alternative water supply for the Project. The Addendum concluded that the use of the FPA Water Supply and the changes in the facilities to treat and convey that water supply to the FPA will not (1) result in new significant impacts not identified in the FPA EIR/EIS; (2) substantially increase the severity of impacts previously disclosed in the FPA EIR/EIS; or (3) involve any of the other conditions related to new information that can require a subsequent or supplemental EIR under Public Resources Code section21166 and CEQA Guidelines section 15162, and that therefore the use of the FPA Water Supply and changes in the facilities to treat and convey that supply will not have any incrementally significant effects on the environment and that the impacts of the use of the FPA Water Supply are within the range of potential impacts identified in the FPA EIR/EIS.
ATTACHMENT
Resolution No. 11257 - A Resolution Authorizing the City Manager to Execute a Consultant Services Agreement with Dewberry, Inc. for Construction Management and Inspection Services and Appropriation of Funds from the Community Facilities District Fund and Authorize aPartral 4 Page 122
09/10/2024 Item No.11.
Notice to Proceed for Pre-Construction Tasks for an amount not to exceed $200,000 for the Phase 2Water Improvements Project (Phase 2A).
Submitted,
Marcus Yasutake, Director
ENVIRONMENTAL AND WATER RESOURCES DEPARTMENT
5 Page 123
09/10/2024 Item No.11.
RESOLUTION NO. II257
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONSULTANT SERVICES AGREEMENT WITH DEWBERRY,INC. FOR
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES AND
APPROPRIATION OF FUNDS FROM THE COMMUNITY FACILITIES DISTRICT FUND AND AUTHORIZE APARTIAL NOTICE TO PROCEED FOR PRE.
CONSTRUCTION TASKS FOR AN AMOUNT NOT TO EXCEED $2OO,OOO FOR THE PHASE 2 WATER IMPROVEMENTS PROJECT (PHASE 2A)
WHEREAS, the City has identified this project as a priority to maintain integrity and operation of the water distribution system; and
WHEREAS, the City issued a Request for Proposals (RFP) on June 14, 2024 and advertised on the City's webpage, on CIPList, on Public Purchase, and through direct contact with various consulting firms; and
WHEREAS, the City received five proposals in response to the RFP; and WHEREAS, the City review panel conducted interviews with the top three consulting firms after reviewing and ranking the proposals based on the criteria outlined in the RFP; and WHEREAS, Dewberry, Inc. by reason of their past experience and abilities for performing these types of services, are qualified to perform the required construction management and inspection services for this project; and
WHEREAS, sufficient funds are available in the Community Facilities District No. 17 Fund (Fund737); 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 execute a Consultant Services Agreement with Dewberry, Inc. for construction management and inspection services and authorize apartial notice to proceed for pre- construction tasks for an amount not to exceed $200,000 for the Phase 2 Water Improvements Proiect (Phase 2A).
BE IT FURTHER RESOLVED that the Finance Director is authorized to appropriate $200,000 in the Fiscal Year 2024-25 Budget for this agreement. The appropriation will be in the Community Facility District No. I 7 Fund (Fund 7 37) for the Phase 2 W ater Improvements Proj ect (Phase 2A).
PASSED AND ADOPTED this i0th day of September 2024, by the following roll-call vote:
AYES: Councilmember(s)
Resolution No. 11257
09/10/2024 Item No.11.
NOES:
ABSENT:
ABSTAIN:
Councilmember(s):
Councilmember(s):
Councilmember(s):
Michael D. Kozlowski, MAYOR
ATTEST:
Christa Freemantle, CITY CLERK
Resolution No. I1257
Page2 of2 Page 125
09/10/2024 Item No.11.
This page is intentionsllU left blank
to focilitote double- sided printing
qnd minimize paper ttse.
CITY OF
DISTINCTIVE EY NATURE
FOLSOM
09/10/2024 Item No.11.
Folsom City Council
Staff Re ort
RECO oN/ COUNCIL CTION
Staff recommends the City Council approve Resolution No. 1 1258 - A Resolution Authorizing the City Manager to Execute a Lease Agreement Between the City of Folsom and Practical Cycle LLC forthe Lease of City Property Located at905 Leidesdorff Street within the Historic District Parking Structure.
BACKGROI IND / ISSUE
In early 20l2,the City of Folsom completed the construction of the Bike Parking Installation Project, now known as the Pedal Stop, located on the lower level of the parking garage in Historic Folsom. The facility, situated at the southeast corner of Reading Street and Leidesdorff Street, directly across from the Sutter Street Light Rail Station, provides secure bike parking for up to 60 bikes. After its official opening in late 20l2,the Pedal Stop initially experienced steady ,rrug", but over the last two years, usage has significantly declined. Consequently, in late 2017, the facility was closed, and staff began exploring alternative uses for the site.
In Septemb er 2019,the city began leasing the Pedal Stop space to Practical Cycle, LLC. Since then, Practical Cycle has been paying 60/o of its gross revenue as lease payments. The business has played a crucial role in encouraging economic activity within the Historic District by attracting visitors who explore the city's many cycling opportunities nearby. Throughout this period, Practical Cycle has consistently paid its monthly lease rate and done its part to care for and maintain the property.
I
MEETING DATE: 911012024
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. I 1258 - A Resolution Authorizing the City Manager to Execute a Lease Agreement Between the City of Folsom and Practical Cycle LLC for the Lease of City Property Located aI905 Leidesdorff Street within the Historic District Par Structure
FROM: Parks and Recreation DePartment
09/10/2024 Item No.12.
On March Ig,2024,the City of Folsom and representatives from Practical Cycle, LLC met to discuss the lease agreement. Practical Cycle indicated their desire to renew the lease and continue operations, as the demand for a bike rental service, particularly one offering electric bikes, remains high in the Historic District.
POLICY / RULE
Under Government Code Section 37380, acity may lease property it owns, holds, or controls for a period not exceeding 55 years.
ANALYSIS
On March Ig,2024, staff met with representatives from Practical Cycle, LLC to discuss the lease agreement. Practical Cycle indicated their desire to renew the lease of the city-owned property and continue operations.
On April 9,2024, staff presented to the Folsom City Council during closed session and was giverrdirection on acceptable terms and rates for a lease agreement between the City of Folsom and Practical Cycle, LLC.
On April 1I,2024, staff discussed the terms of the lease agreement with Practical Cycle, LLC, and agreed to the major terms below:
o 5-year lease with the option to renew the lease for one additional term of 5-years. o Lease term would begin September 15,2024, and end September 14,2029' o Lessee shall pay 6%o of the gross revenue generated the previous month as rent each month.
FINANCIAL IMPACT
The lease agreement will have no net cost impact on the General Fund. The city will collect 6% of the gross revenue from Practical Cycle's operations at the Pedal Stop. Based on actual revenue fromiOZZ and2023,the estimated annual revenue is anticipated to be approximately $12,000- $13,000, with potential for growth as the bike rental service gains popularity.
ENVIRONMENTAL REVIEW
This action is exempt from environmental review under CEQA Guidelines 15061(bX3), as it can be seen with certainty that there is no possibility that the lease agreement will have a significant effect on the environment.
ATTACHMENTS
1. ResolutionNo. 1 1258 - A Resolution Authorizingthe City Manager to Execute a Lease Agreement Between the City of Folsom and Practical Cycle LLC for the Lease of City property Located at 905 Leidesdorff Street within the Historic District Parking Structure 2 Page 128
09/10/2024 Item No.12.
Submitted,
Kelly Gonzalez, Parks and Recreation Director
J Page 129
09/10/2024 Item No.12.
RESOLUTION NO. 11258
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE
AGREEMENT BETWEEN THE CITY OF FOLSOM AND PRACTICAL CYCLE, LLC FOR THE LEASE OF CITY PROPERTY LOCATED AT 905 LEIDESDORFF STREET
WITHIN THE HISTORIC DISTRICT PARKING STRUCTURE
WHEREAS, the City Council desires to lease a portion of the city-owned property at905 Leidesdorff Street within the Historic District Parking Structure; and WHEREAS, Practical Cycle, LLC has been under a lease agreement with the City of Folsom which will expire on September 14,2024; and
WHEREAS, the City Council directed staff to negotiate the terms of the lease agreement with Practical Cycle, LLC; and
WHEREAS, the City desires to enter into a lease agreement with Practical Cycle, LLC for the lease of a portion of the city-owned building at 905 Leidesdorff Street within the Historic District Parking Structure; 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 a lease agreement between the City of Folsom and Practical Cycle, LLC for the lease of city property located at 905 Leidesdorff Street within the Historic District Parking Structure
PASSED AND ADOPTED this 10 day of September 2024,by the following roll-call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmember(s):
Councilmember(s):
Councilmember(s):
Councilmember(s):
Michael D. Kozlowski, MAYOR
ATTEST:
Christa Freemantle, CITY CLERK
Resolution No. 11258
09/10/2024 Item No.12.