04/22/2025 Item No.17.
Ordinance No. 1351
section irrespective of the fact that any one or more section, subsection, sentence, clause, or phrase be declared unconstitutional, invalid, or ineffective.
SECTION 6 NO MANDATORY DUTY
This Ordinance is not intended to and shall not be construed or given effect in a manner that imposes upon the City or any officer or employee thereof a mandatory duty of care towards persons and property within or without the City, so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
SECTION 6 EFFECTIVE DATE
This ordinance shall become effective thirty (30) days from and after its passage and adoption, provided it is published in full or in summary within twenty (20) days after its adoption in a newspaper of general circulation in the City.
This ordinance was introduced and the title thereof read at the regular meeting of the City Council on April 22, 2025, and the second reading occurred at the regular meeting of the City Council on May 13, 2025.
On a motion by Council member _______________ seconded by Council member _______________, the foregoing ordinance was passed and adopted by the City Council of the City of Folsom, State of California, this 13th day of May, 2025 by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
_______________________________________
Sarah Aquino, MAYOR
ATTEST:
_____________________________
Christa Freemantle, CITY CLERK
04/22/2025 Item No.17.
Attachment 2
04/22/2025 Item No.17.
Rob Bonta
Attorney General
BUREAU OF GAMBLING CONTROL
2450 DEL PASO ROAD, SUITE 100
SACRAMENTO, CA 95834
February 7, 2025
Via e-mail only
Dan Haverty
Interim City Manager
City of Folsom
50 Natoma Street
Folsom, CA 95630
[email protected]
Re: City of Folsom – Ordinance Amendments
Dear Mr. Haverty:
On January 27, 2025, the Department of Justice (Department), Bureau of Gambling Control (Bureau) received correspondence from the City of Folsom’s (City or Folsom) Interim City Manager regarding the City’s proposed amendments to its Municipal Code (Proposed Amendment). The City submitted the Proposed Amendment to the Bureau for review in compliance with the City’s obligations under Business and Professions Code section 19961.1.1 Section 5.20.070 of the City’s Municipal Code (Section 5.20.070) governs the operation of gambling establishments2 within Folsom. The City proposes to amend Section 5.20.070 to establish a table limit within its “jurisdiction.”3 The Bureau offers the following comments to
1 “Any amendment to a city or county ordinance relating to gambling establishments, or the Gambling Control Act, shall be submitted to the [D]epartment for review and comment, before the ordinance is adopted by the city or county.” (Bus. & Prof. Code, § 19961.1.)
2 Section 5.20.010 of the Municipal Code includes a definition for “cardroom,” which the Bureau acknowledges is synonymous with the definition of “gambling establishment” under the Act. (Bus. & Prof. Code, § 19805, subd. (o).)
3 Bus. & Prof. Code, § 19860, subd. (a)(5). In September 2022, the City submitted to the Bureau proposed amendments to Section 5.20.070. The Bureau provided its comments to the City on those proposed amendments in a letter dated October 11, 2022 (2022 Letter). In that letter, the Bureau advised the City of the requirements imposed by Business and Professions Code
04/22/2025 Item No.17.
Dan Haverty, Interim City Manager, City of Folsom
February 7, 2025
the Proposed Amendment and responds to the City’s assessment that it possesses a 374-card table limit.
1. Section 5.20.070 – Cardroom Regulations
Section 5.20.070, subdivision 2, specifies that “[n]o more than eleven card tables shall be permitted in any cardroom.” The City proposes to amend this subdivision to specify that no more than eleven “card tables” are allowed within the City. (Section 5.20.070, subd. (A)(2).) This Proposed Amendment appears to comply with the Gambling Control Act (Act) and to address the concerns that the Bureau raised in its 2022 Letter. If further amendments are forthcoming, please provide the Bureau with those amendments prior to their adoption in compliance with Business and Professions Code section 19961.1.
2. 374 Card Table Limit
In your January 23, 2025 correspondence, you included an excerpt of the City Attorney’s analysis that the City may, under Folsom Municipal Code section 5.20.050 (Section 5.20.050), subdivision C, be allowed to operate 34 cardrooms, and that with a cardroom table limit of 11 tables, the City theoretically would have a jurisdictional table limit of 374 tables. This analysis appears to be at odds with the Proposed Amendment discussed above, is in contravention of applicable statutes, and in our estimation misreads Section 5.20.050, subdivision C.
Specifically, Business and Professions Code section 19961, subdivision (a)(1), prohibits an “expansion of gambling” without the approval of the voters of a city, county, or city and county. Business and Professions Code section 19961, subdivisions (b)(1) and (b)(2), include in the definition of “expansion of gambling” an increase of 25 percent or more in the number of card tables or licensed gambling establishments, respectively, allowed in a city, county, or city and county, when compared to that allowed on January 1, 1996.
In addition, the language of Section 5.20.050, subdivision C, appears to simply place a limit on the number of potentially allowable licensed cardrooms in the City. To the extent Section 5.20.050, subdivision C, may fairly be characterized as purporting to “automatically” increase both the number of tables allowed within the City as well as the number of cardrooms, it conflicts with applicable statutes. As previously noted in the Bureau’s 2022 Letter, ordinance language that does not state a jurisdiction’s table limit does not comply with Business and Professions Code section 19860, subdivision (a)(5).
section 19860, including a requirement that a city, county, or city and county have in effect an ordinance governing “the number of tables in each gambling establishment and in the jurisdiction.” (Ibid.)
04/22/2025 Item No.17.
Dan Haverty, Interim City Manager, City of Folsom
February 7, 2025
The Act provides that an ordinance may be amended to increase the number of tables allowed within a gambling establishment or within the relevant jurisdiction. Approving such an increase necessarily requires an affirmative act by the jurisdiction’s legislative body. That such an increase requires an affirmative legislative act is further supported by the plain language of the various sections of the Act pertaining to changes in the number of tables allowed within a gambling establishment and in a jurisdiction, as well as in the number of gambling establishments allowed. (See Bus. & Prof. Code, §§ 19961, subd. (a), 19961.06, 19961.07, subd. (a), 19965.).)
Moreover, the increase in the number of tables allowed within the City, by virtue of an automatic increase in the number of cardrooms read into Section 5.20.505, subdivision C, also runs afoul of Business and Professions Code section 19961, subdivision (a)(1), which requires an affirmative vote of the electors in order to implement an increase of 25 percent or more in the number of tables or cardrooms allowed within the jurisdiction when compared to the number allowed on January 1, 1996. Even then, Business and Professions Code section 19962, subdivision (b)(1), prohibits the amendment of an ordinance that expands gambling until January 1, 2043. (Bus. & Prof. Code, § 19962, subd. (c).) Any amendment to an ordinance or adoption of an ordinance on or after January 1, 2023, by a city, county, or city and county, that results in an expansion of gambling that was not authorized or permitted under the Act as of December 31, 2022, shall be invalid and preempted. (Bus. & Prof. Code, § 19961.07, subd. (b)(3).) Further, until January 1, 2043, the California Gambling Control Commission is prohibited from issuing a state gambling license for a gambling establishment that was not licensed to operate on December 31, 1999, unless an application to operate that establishment was on file with the Department prior to September 1, 2000. (Bus. & Prof. Code, § 19963, subds. (a), (d).) Consequently, the assessment that the City may authorize the operation of a maximum of 374 tables, and that the City may authorize the operation of 34 cardrooms, is misplaced. The Bureau recommends that the City revisit its analysis and amend Section
5.20.050, subdivision C, so as not to conflict with the City’s Proposed Amendment and to bring it into compliance with the Act.
While the Bureau is required to review and comment upon proposed ordinance amendments, nothing contained herein shall be construed to authorize the operation of a gambling establishment in any manner that is inconsistent with the Act or any other applicable provision of law.
04/22/2025 Item No.17.
Dan Haverty, Interim City Manager, City of Folsom
February 7, 2025
If you have any questions, or wish to submit further revisions to these ordinances, please contact Analyst Kenneth Larsen at (916) 559-6103, or by email at [email protected]. Thank you for your cooperation regarding this matter.
Sincerely,
BRENT Y. JO
Deputy Attorney General
For ROB BONTA
Attorney General
Brent Y. Jo
Digitally signed by Brent
Y. Jo
Date: 2025.02.07
15:23:32 -08'00'
04/22/2025 Item No.17.
Attachment 3
04/22/2025 Item No.17.
Rob Bonta
Attorney General
BUREAU OF GAMBLING CONTROL
2450 DEL PASO ROAD, SUITE 100
SACRAMENTO, CA 95834
February 25, 2025
Via e-mail only
Dan Haverty
Interim City Manager
City of Folsom
50 Natoma Street
Folsom, CA 95630
[email protected]
Re: City of Folsom – Ordinance Amendments
Dear Mr. Haverty:
On February 7, 2025, the Department of Justice (Department), Bureau of Gambling Control (Bureau) received correspondence from the City of Folsom (City) regarding the City’s further proposed amendments to its Municipal Code.1 The City submitted the proposed amendments to the Bureau for review in compliance with the City’s obligations under the Gambling Control Act (Act).2
The City proposes amending Section 5.20.050, subdivision (C),3 which governs both the number of gambling establishments4 allowed within the City and the number of licenses that
1 The Bureau provided comments to the City concerning other proposed amendments in a letter dated February 7, 2025. The proposed amendments addressed herein were made in response to those comments.
2 “Any amendment to a city or county ordinance relating to gambling establishments, or the Gambling Control Act, shall be submitted to the [D]epartment for review and comment, before the ordinance is adopted by the city or county.” (Bus. & Prof. Code, § 19961.1.)
3 Section references are the City’s Municipal Code unless otherwise indicated.
4 Section 5.20.010 includes a definition for “cardroom,” which the Bureau acknowledges is synonymous with the definition of “gambling establishment” under the Act. (Bus. & Prof. Code, § 19805, subd. (o).)
04/22/2025 Item No.17.
Dan Haverty, Interim City Manager, City of Folsom
February 25, 2025
may be issued by the City, as well as Section 5.20.070, subdivision (A)(2), which governs the number of tables allowed within a gambling establishment within the City. The Bureau offers the following comments.
1. Section 5.20.050 – Action on application
Section 5.20.050, subdivision (C) currently provides, in pertinent part, that “no cardroom license shall be granted when the number of cardroom licenses in the city exceeds the ratio of one cardroom for each two thousand five hundred persons in the city.” The City’s proposed amendment would instead provide that no more than one cardroom is permitted in the City, and that only one cardroom license may be issued by the City.
This proposed amendment appears to comply with the Act, and addresses the concerns raised by the Bureau in its February 7, 2025 comment letter.
2. Section 5.20.070 – Cardroom regulations
Section 5.20.070, subdivision (A)(2), currently specifies that “[n]o more than eleven card tables shall be permitted in any cardroom.” The City proposes to amend this subdivision to specify that no more than thirteen (13) “card tables” are allowed within a cardroom, and no more than thirteen (13) “card tables” are allowed in the City. (Section 5.20.070, subd. (A)(2).) The proposed increase of two tables is authorized under Business and Professions Code section 19961.07, subdivision (a). This proposed amendment appears to comply with the Act.
While the Bureau is required to review and comment upon proposed ordinance amendments, nothing contained herein shall be construed to authorize the operation of a gambling establishment in any manner that is inconsistent with the Act or any other applicable provision of law.
If you have any questions, or wish to submit further revisions to these ordinances, please contact Analyst Kenneth Larsen at (916) 559-6103, or by email at [email protected]. Thank you for your cooperation regarding this matter.
Sincerely,
BRENT Y. JO
Deputy Attorney General
For ROB BONTA
Attorney General
Brent Y. Jo
Digitally signed by Brent
Y. Jo
Date: 2025.02.25 11:06:26
-08'00'
04/22/2025 Item No.17.
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04/22/2025 Item No.17.
Folsom City Council
Staff Report
1 MEETING DATE:
4/22/2025
AGENDA SECTION:
New Business
SUBJECT: Resolution No. 11357 - A Resolution Authorizing the City Manager to Execute an Agreement with HF&H Consultants , LLC for the Water and Wastewater Rate Studies
FROM: Environmental and Water Resources Department
RECOMMENDATION / CITY COUNCIL ACTION
The Environmental and Water Resources Department recommends the City Council pass and adopt Resolution No. 11357 - A Resolution Authorizing the City Manager to Execute an Agreement with HF&H Consultants, LLC for the Water and Wastewater Rate Studies.
BACKGROUND / ISSUE
The City last completed a water and wastewater rate study in October 2019. The Environmental and Water Resources Department continues to monitor revenues and program costs on an annual basis. At this time, a cost of service study needs to be completed to validate that the current residential and non-residential revenues accurately reflect the actual cost of service. It is important to maintain and update our financial model to analyze all costs and revenues related to the operational programs and capital improvement programs (CIP).
In January 2025, the City issued a request for p roposals for Water and Wastewater Rate Studies Consulting Services. The scope of work comprised a comprehensive review of the City’s water and wastewater rates, including the following:
Review of past studies, surcharges and expenditures.
Analysis and review of water use data across all customer classes between 2021-2024 Develop projected expenditures and revenue requirements. Review, and update as necessary, the City’s reserve fund policies. CIP review and recommendations for funding of CIPs.
Review Department organizational structure, including associated staffing levels expenses.
04/22/2025 Item No.18.
2 Complete the cost of service analysis.
Develop a recommended rate design.
Review the City’s current Utility Assistance Program and update as necessary. Update the East Araea and Folsom Plan Area surcharges. Update the temporary/construction meter and fire service rates. Attend four Utility Commission meetings in-person.
Attend one public meeting and workshop.
Attend up to three City Council meetings and workshops. Development of website materials, including frequently asked questions and a bill calculator.
Ensure compliance with Proposition 218 and Assembly Bill 2257. Prepare draft and final reports.
This resolution will authorize the City Manager to execute an agreement with HF&H Consultants, LLC, for the Water and Wastewater Rate Studies.
POLICY / RULE
In accordance with Chapter 2.36 of the Folsom Municipal Code, supplies, equipment, services, and construction with a value of $75,049 or greater shall be awarded by City Council.
ANALYSIS
On January 24, 2025, the City requested proposals from consultants to perform a water and wastewater rate study. On March 6, 2025, EWR received proposals from Bartle Wells Associates, HDR Engineering, Inc., HF&H Consultants, LLC, and Raftelis.
The four proposals were evaluated by three EWR staff members for technical evaluation prior to reviewing project costs. The proposals were reviewed and scored for project understanding, qualifications, deliverables, and project team staffing. The technical evaluations were scored and are shown in Table 1. Although Raftelis is listed below, EWR staff concluded their proposal was non-responsive because they did not include four in-person Utility Commission meetings that are required as part of the scope of work.
Consultant EWR 1 EWR 2 EWR 3 Average
Bartle Wells Associates 57 56 53 55.3
HDR Engineering, Inc. 63 66 70 66.3
HF&H Consultants, LLC 60 67 67 64.7
Raftelis 61 62 66 63
Table 1: Consultant Technical Scores without Costs
After reviewing each proposal for project understanding, qualifications, deliverables, and project team staffing, the proposals were reviewed for project costs. The fee schedules for the scope of work outlined in the request for proposals from each consultant are shown in Table 2.
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3 Consultant Water Wastewater Total
Bartle Wells Associates $80,350 $80,350 $160,700
HDR Engineering, Inc. $147,715 $138,265 $307,285A
HF&H Consultants, LLC $84,035 $73,185 $157,220
Raftelis $77,120 $74,870 $151,990B
A. HDR total includes additional expenses of $21,305 that were not separated by water or wastewater.
B. This cost does not include four in-person Utility Commission meetings.
Table 2: Consultant Project Costs
HF&H Consultants, LLC was determined to provide the best value to the City based on the scope of work provided in their proposal, the project team, their expertise for these types of projects, and the fee amount. HF&H Consultants, LLC included a detailed and thorough project understanding as well as past relevant rate study project experience. Table 3 shows the overall total scores including project costs based on a maximum score of 100. As described above, Raftelis is considered non-responsive for not including all the necessary scope items in their proposal.
Consultant Technical
Score (Avg.)
Cost Score Total Score
Bartle Wells Associates 55.3 23.6 78.9
HDR Engineering, Inc. 66.3 12.4 78.7
HF&H Consultants, LLC 64.7 24.2 88.9
Raftelis 63.0 25.0 88.0
Table 3: Consultant Overall Scoring Including Project Costs
This resolution will authorize the City Manager to execute an agreement with HF&H Consultants, LLC for the Water and Wastewater Rate Studies in the amount of $157,220.
FINANCIAL IMPACT
Sufficient funds are budgeted and are available in the Water Operating Fund (Fund 520) and in the Wastewater Operating Fund (Fund 530) in FY 2024-25 for this agreement.
ENVIRONMENTAL REVIEW
These rate stud ies are exempt from environmental review under t he California Environmental Quality Act, Section 15273.
ATTACHMENT
Resolution No. 11357 - A Resolution Authorizing the City Manager to Execute an Agreement with HF&H Consultants, LLC for the Water and Wastewater Rate Studies
Submitted,
Marcus Yasutake, Director
ENVIRONMENTAL AND WATER RESOURCES DEPARTMENT
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Resolution No. 11357
RESOLUTION NO. 11357
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT WITH HF&H CONSULTANTS, LLC FOR THE WATER AND
WASTEWATER RATE STUDIES
WHEREAS, the Folsom Municipal Code provides for the adjustment of municipal service charges from time to time by the City Council so as to reflect the cost of the services provided; and
WHEREAS, the City last performed a water and wastewater cost of service analysis in 2019, and this analysis needs to be updated to reflect current operational and rehabilitation and replacement projects; and
WHEREAS, HF&H Consultants, LLC, by reason of their past experience, is qualified to perform this analysis; and
WHEREAS, sufficient funds are budgeted and available in the Water Operating Fund (Fund 520) and in the Wastewater Operating Fund (Fund 530) for this agreement; and
WHEREAS, $84,035 will be funded from the Water Operating Fund (Fund 520) and $73,185 will be funded from the Wastewater Operating Fund (Fund 530) for this agreement; and
WHEREAS, the agreement will be in a form acceptable to the City Attorney:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute an agreement with HF&H Consultants, LLC for the Water and Wastewater Rate Studies for a not-to-exceed amount of $157,220.
PASSED AND ADOPTED this 22nd day of April, 2025, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
___________________________________
Sarah Aquino, MAYOR
ATTEST:
____________________________________
Christa Freemantle, CITY CLERK
04/22/2025 Item No.18.