05/13/2025 Item No.17.
C-12
Resolution No. 11374
“Outstanding Bonds” means all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay As You Go Costs” means that portion of the Special Tax Requirement attributable to the dire ct payment for the acquisition and/or construction of public improvements, which are authorized to be financed by CFD No. 20-1. Special Taxes attributable to Pay As You Go Costs may only be levied against Developed. After the issuance of the first series of Bonds, Pay As You Go Costs will no longer be levied and will not be included in determining the annual Special Tax Requirement.
“Planned Development” means the planned number of Residential Units and Other Taxable Property Acreage planned within CFD No . 20 -1, set forth in Attachment B of this Rate and Method of Apportionment of Special Taxes, as amended by the future recordation of all Large Lot Maps and Small Lot Final Subdivision Maps within CFD No. 20-1.
“Property Owner Association Property” means any property within CFD No. 20-1 which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property owner association property. As used in this definition, a property owner association includes any master or sub-association.
“Proportionately” means for Taxable Property that the ratio of the Special Tax levy to the Maximum Special Tax is equal for all Assessors’ Parcels within each land use category (Developed Property, Small Lot Final Map Property, Large Lot Property, etc.) within CFD No. 20-1.
“Public Property” means any property within CFD No. 20-1 which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is de signated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property, which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other governmental agency.
“Residential Floor Area” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD No. 20 -1 Administrator by reference to appropriate records kept by the City’s building department. Residential Floor Area for a residential structure will be based on the Building Permit(s) issued for such structure prior to it being classified as Developed Property and will not be adjusted as a result of future development modifications.
“Residential Lot” means an individual residential lot within a recorded Small Lot Final Subdivision Map on which a Building Permit has been or is permitted to be issued for construction of one or more Residential Units.
“Residential Property” means, for each Fiscal Year, all Taxable Property for which a Building Permit has been issued for purpos es of constructing Residential Units, including Multi Family Low Density Property.
“Residential Unit” means an individual single family detached residential unit or an individual residential unit within an apartment building, duplex, triplex, fourplex, t ownhome or condominium structure. The number of Residential Units assigned to each Assessor’s Parcel may be determined by
05/13/2025 Item No.17.
C-13
Resolution No. 11374
(a) referencing Assessor’s Data, (b) site surveys and physical unit counts, and/or (c) other research by the CFD Administrator. An Accessory Dwelling Unit shall not be considered a Residential Unit for the purposes of the Special Tax.
“Small Lot Final Map Property” means, for each Fiscal Year, all Taxable Property for which a Small Lot Final Subdivision Map was recorded prior to June 30 of the previous Fiscal Year.
“Small Lot Final Map Remainder Property” means an Assessor’s Parcel that is created from the subdivision of Large Lot Property by the recordation of a Small Lot Final Subdivision Map that has not yet been mapped for final dev elopment approval. Small Lot Final Map Remainder Property is that portion of property for which the Small Lot Final Subdivision Map definition does not apply (i.e., does not contain individual lots for which building permits may be issued for Residential U nits without further subdivision of such property). Each Fiscal Year, all Taxable Property classified as Small Lot Final Map Remainder Property, as of June 30 of the previous Fiscal Year, will be considered Large Lot Property.
“Small Lot Final Subdivision Map” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordatio n of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued for Residential Units without further subdivision of such property.
“Special Tax” means the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement.
“Special Tax Escalation Factor” means two percent (2%) annually.
“Special Tax Requirement” means that amount required in any Fiscal Year for CFD No. 20-1 to (1) pay Debt Service on all Outstanding Bonds due in the succeeding Bond Year; (2) pay Debt Service on Bonds expected to be issued on behalf of CFD No. 20-1 due in the succeeding Debt Year; (3) Administrative Expenses; (4) provide any amount required to establish or replenish a reserve fund in connection with any CFD No. 20 -1 Bonds; (5) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (3) or (4); and (6) account for Pay As You Go Costs. The amounts referred to in clauses (1) through (5) of the preceding sentence may be reduced in any Fiscal Year (in the City's sole discretion) by (i) surplus balances in funds and accounts for CFD No. 20 -1 Bonds to the extent that such balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the col lection of penalties associated with delinquent Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding Bonds or other indebtedness as determined by the CFD Administrator.
“Special Tax Term” means Fiscal Year 2064-2065.
“State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the CFD No. 20 -1 Boundaries that are not exempt from the CFD No. 20-1 Special Tax pursuant to law or Section E below.
05/13/2025 Item No.17.
C-14
Resolution No. 11374
“Trustee” means the entity appointed pursuant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof.
“Welfare Exempt Property” means, in any Fiscal Year, all Assessor Parcels within the boundaries of CFD No. 20-1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act. Pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcels that receive a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, using City and County records, City zoning information, and land use development plans, all Assessor’s Parcels within CFD No. 20 -1 shall be designated as either Taxable Property or Exempt Property.
All Taxable Property shall be further classified as Developed Property, Small Lot Final Map Property, or Large Lot Property and shall be subject to the levy of the annual Special Tax determined pursuant to Section C below. Once Taxable Property is classified as Developed Property, it shall remain classified as Developed Property and shall not be reclassified, regardless of changes in land use or development modifications.
C. SPECIAL TAX
A Maximum Special Tax shall be assigned to all Taxable Property within CFD No. 20-1 according to the Maximum Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment of Special Taxes.
Once assigned, the sum of the total Maxim um Special Tax shall be equal to or greater than the Minimum Special Tax Revenue. The Minimum Special Tax Revenue for Fiscal Year 2025 -2026 is set forth in Attachment B of this Rate and Method of Apportionment of Special Taxes.
On each July 1, commencing on July 1, 2026, the Maximum Special Tax Rates and Minimum Special Tax Revenue shall be increased by the Special Tax Escalation Factor of the Maximum Special Tax Rates and Minimum Special Tax Revenue in effect for the previous Fiscal Year.
C.1. Future Assessor’s Parcel Changes
The Maximum Special Tax shall be assigned to all future Assessor’s Parcel(s) created from a subdivision, lot line adjustment, or merger of one or more Assessor’s Parcels so that the revised sum of the total Maximum Special Tax revenue is not less than the Minimum Special Tax Revenue set forth in Attachment B of this Rate and Method of Apportionment of Special Taxes.
Large Lot Property Subdividing into Small Lot Final Map Property
05/13/2025 Item No.17.
C-15
Resolution No. 11374
When Large Lot Property subdivides into Small Lot Final Map Property, the Maximum Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. If the Large Lot Property subdivision also creates Small Lot Final Map Remainder Property, the expected Developed Property Maximum Special Tax for the Small Lot Final Map Remainder Property shall be based upon the Planned Development for the Small Lot Final Map Remainder Property. The expected Developed Property Maximum Special Tax for any remaining Large Lot Property shall be based upon the Planned Development of the Large Lot Property.
If the sum of the total expected Developed Property Maximum Special Tax is greater than or equal to the Minimum Special Tax Revenue, there will be no further adjustments to the Developed Property and Small Lot Final Map Property Maximum Special Tax Rates for the Small Lot Final Map Property and Small Lot Final Map Remainder Property created from the Large Lot Property subdivision.
If the sum of the total expected Developed Property Maximum Special Tax is less than the Minimum Special Tax Revenue, and such difference is not eliminated by the full or partial prepayment of the Maximum Special Tax pursuant to Section I, the Developed Pr operty and Small Lot Final Map Property Maximum Special Tax Rates shall be Proportionately increased, on the Small Lot Final Map Property and Small Lot Final Map Remainder Property created from the Large Lot Property subdivision, until the sum of the total expected Developed Property Maximum Special Tax is equal to the Minimum Special Tax Revenue. Attachment B of this Rate and Method of Apportionment of Special Taxes shall be updated to reflect any increases to the Maximum Special Tax Rates from the Large Lot Property subdivision. The Developed Property and Small Lot Final Map Property Maximum Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property or Small Lot Final Map Property created prior to the Large Lot Property subdivision.
C.2. Method of Apportionment of Special Tax
Using the definitions and procedures described herein, the CFD No. 20 -1 Administrator shall determine the Special Tax Requirement and levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Special Tax in order to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Special Tax. The Special Tax shall be levied on Small Lot Final Map Property for the entire portion of the Special Tax Requirement, excluding only Pay As You Go Costs.
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on all Large Lot Property at a rate up to 100% of the Maximum Special Tax. The Special Tax shall be levied on Large Lot Property for the entire portion of the Special Tax Requirement, excluding only Pay As You Go Costs.
05/13/2025 Item No.17.
C-16
Resolution No. 11374
D. DELINQUENCIES
Notwithstanding the above, under no circumstances will the CFD No. 20 -1 Special Tax levied against any Assessor’s Parcel of Developed Property classified as Resid ential Property, in any Fiscal Year, be increased as a consequence of the delinquency or default in the payment of the CFD No. 20-1 Special Taxes by the owner or owners of any other Taxable Property by more than ten percent (10%) above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.
E. EXEMPTIONS
E.1. The CFD No. 20-1 Administrator shall classify the following as Exempt Property: Public Property, Property Owner Association Property, Open Space Property, and Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement.
E.2. No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property; however, pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcels that receive a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.
E.3. The Maximum Special Tax obligation for Taxable Property which will be transferred or dedicated to a public agency and will be classified as Public Property shall be prepaid in full by the seller, pursuant to Section K, prior to the transfer/dedication of such Taxable Property. Until the Maximum Special Tax obligation for any such Taxable Property is prepaid, the Taxable Property shall continue to be subject to the levy of the Special Tax. An exception to this may be made if an Assessor’s Parcel of Public Property, such as a school site, is relocated to an Assessor’s Parcel of Taxable Property, in which c ase the Assessor’s Parcel of previously Public Property becomes Taxable Property and the Assessor’s Parcel of previously Taxable Property becomes Public Property. This trading of an Assessor’s Parcel from Taxable Property to Public Property will be permitted to the extent there is no loss in Maximum Special Tax revenue, and the transfer is agreed to by the owners of all Assessor’s Parcels involved in the transfer and the City Council.
E.4. If the use of an Assessor’s Parcel changes so that such Assessor’s Parce l is no longer eligible to be classified as one of the uses set forth in Section E.1 above that would make such Assessor’s Parcel eligible to continue to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Proper ty and shall be deemed to be Taxable Property and subject to the Special Tax.
F. INTERPRETATIONS
The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the Rate and Method of Apportionme nt of Special Taxes. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.
Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Taxes.
05/13/2025 Item No.17.
C-17
Resolution No. 11374
G. REVIEW/APPEALS
The CFD No. 20-1 Administrator may establish such procedures, as it deems necessary to undertake the review of any such appeal. The CFD No. 20 -1 Administrator shall interpret this Rate and Method of Apportionment of Special Taxes and make determinations relative to the annual administration of the Special Tax and any property owner appeals, as herein specified.
Any property owner may file a written appeal of the Special Tax with the CFD No. 20-1 Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Spe cial Taxes are in error.
The CFD No. 20-1 Administrator shall review the appeal, meet with the appellant if the CFD No. 20-1 Administrator deems necessary, and advise the appellant of its determination.
If the property owner disagrees with the CFD No. 20-1 Administrator’s decision relative to the appeal, the owner may file a written notice with the City Manager appealing the amount of the Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any, by the City Manager, the property owner believes such error still exists, such person may file a written notice with the City Council appealing the amount of the Special Tax levied on such Assessor’s Parcel. The decision of the City shall be final and binding to all persons. If the decision of the CFD No. 20 -1 Administrator or subsequent decision by the City Manager or City Council requires the Special Taxes to be modified or changed in favor of the property owner, no cash refund shall be made for prior years’ Special Taxes, but an adjustment shall be made to credit future Special Taxes. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.
H. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 20-1, may, at the sole discretion of the City, directly bill the Special Tax, may collect Special Taxes at a different time o r in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor’s Parcels of Taxable Property that are delinquent in the payment of Special Taxes.
I. PREPAYMENT OF SPECIAL TAX
The Special Tax obligation of an Assessor’s Parcel of Taxable Property may be prepaid and permanently satisfied as described herein; provided that there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation shall provide the CFD No. 20 -1 Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD No. 20-1 Administrator shall notify such owner of the prepayment amount of such Assessor’s Parcel.
Prepayment must be made not less than 60 days prior to the next occurring date that notice of
05/13/2025 Item No.17.
C-18
Resolution No. 11374
redemption of Bonds, whichever date is earlier, from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The CFD No. 20 -1 Administrator may charge a fee for providing this service.
The following definitions apply to this Section I:
“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 20-1.
“Buildout” means the state of maximum development of CFD No. 20 -1, based on plans and anticipated development.
"CFD Public Facilities Cost" means $3,889,000 for CFD No. 20-1, expressed in 2025 dollars, which shall increase by the annual percentage change in the Construction Inflation Index on July 1, 2026 and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD No. 20 -1 Administrator as sufficient to provide the public facilities to be funded by CFD No. 20-1 or (ii) shall be determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment of Special Taxes as described in Section C.
"Construction Inflation Index" means the annual percentage change in the Engineering News-Record Construction Cost Index, measured as of the calendar year which ends in the previous Fiscal Year, but not less than zero percent. In the event this index cea ses to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Construction Cost Index.
"Future Facilities Costs" means, as of the date of prepayment, the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) proceeds of all Previously Issued Bonds, which were, at the time of issuance, available to the City for Authorized Facilities, (b) interest earnings on the improvement fund actually earned prior to the date of prepayment, and (c) proceeds of the Special Tax dedicated to Pay -As-You-Go Costs. In no case shall the Future Facilities Costs be less than zero.
"Previously Issued Bonds" means all Outstanding Bonds that have been issued on behalf of CFD No. 20-1 prior to the date of prepayment.
I.1. Prepayment in Full
If a prepayment is made prior to the issuance of Bonds, the Redemption Premium, Interest Amount, Reserve Fund Credit, and Capitalized Interest Credit as calculated below, shall be zero.
The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount:
Plus Future Facilities Amount
Plus Redemption Premium
Plus Interest Amount
Plus Administrative Fees and Expenses
Less Reserve Fund Credit
05/13/2025 Item No.17.
C-19
Resolution No. 11374
Less Capitalized Interest Credit
Total: Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount shall be calculated by the CFD No. 20-1 Administrator as follows:
Step 1: Confirm that no Special Tax delinquency applies to such Assessor’s Parcel, and if delinquencies are applicable compute all amounts due, including interest and penalties.
Step 2: For Assessor’s Parcels of Developed Property com pute the Maximum Special Tax. For Assessor’s Parcels of Small Lot Final Map Property and Large Lot Property to be prepaid, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the expected development for that Assessor’s Parcel.
Step 3: Divide the Maximum Special Tax computed pursuant to Step 2 by the total estimated Maximum Special Tax for CFD No. 20-1 based on the Developed Property Maximum Special Tax which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 20-1. (the “Maximum Special Tax Percentage”).
Step 4: Multiply the Maximum Special Tax Percentage by the Outstanding Bonds to compute the principal amount of Outstanding Bonds to be redeemed (the “Bond Redemption Amount”).
Step 5: Compute the Future Facilities Costs.
Step 6: Multiply the Maximum Special Tax Percentage by the total Future Facilities Costs to compute the Future Facilities amount to be prepaid (the “Future Facilities Amount”).
Step 7: Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the " Redemption Premium") determined by reference to the Indenture.
Step 8: Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds (the “Interest Amount”).
Step 9: Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
Step 10: If reserve funds for the Outstanding Bonds held under the Indenture, if any, are at or above 100% of the then reserve requirement (as required by the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve requirement for the Outstanding Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the applicable reserve requirement on the prepayment date or if the Reserve Fund is satisfied by a credit instrument rather than cash funded.
05/13/2025 Item No.17.
C-20
Resolution No. 11374
Step 11: If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the Maximum Special Tax Percentage by the expected balance in the capitalized interest f und after such first interest and/or principal payment (the "Capitalized Interest Credit").
Step 12: The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 8 and 9 less the amount computed pursuant to Steps 10 an d 11 (the "Prepayment Amount").
Step 13: From the Prepayment Amount, the amounts computed pursuant to Step 6 shall be used by the City to pay for Future Facilities Costs. The amounts computed pursuant to Steps 4, 6, 7 and 8 shall be deposited into the app ropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make Debt Service payments. The amount computed pursuant to Step 9 shall be retained by the City for the payment of Administrative Fees and Expenses.
Current year Special Taxes that are not yet paid will remain outstanding and will be collected in the manner billed. With respect to any Assessor's Parcel that is prepaid, the CFD No. 20 -1 Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate the prepayment of the Special Tax and the obligation of such Assessor's Parcel has been satisfied.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes, net of any priority administration, if any as defined in the Bond documents, that may be levied on Taxable Property, in each Fiscal Year, both prior to and after the proposed prepayment, is at least 1.1 times the annual Debt Service on all Outstanding Bonds to be paid from the Maximum Special Taxes in each Fiscal Year.
I.2. Prepayment in Part
The Special Tax obligation may be partially prepaid in any percentage of the full Prepayment Amount. The amount of the partial prepayment shall be calculated as in the above Section I.1; except that a partial prepayment shall be calculated according to the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = the Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section I.1 above A = the Administrative Fees and Expenses calculated according to Section I.1 above F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation.
The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation shall notify the CFD No. 20 -1 Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the amount of partial prepayment expressed in increments equal to percentage of the full Prepayment Amount, and (iii) the company or agency that will be acting as the escrow agent, if applicable. Partial prepayment must be made not less than 60 days prior
05/13/2025 Item No.17.
C-21
Resolution No. 11374
to the next occurring date that notice of redemption of Bonds, whichever date is earlier , from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture . The CFD No. 20-1 Administrator may charge a fee for providing this service.
With respect to any Assessor’s Parcel that is partially prepaid, the CFD No. 20 -1 Administrator shall indicate in the records of CFD No. 20 -1 that there has been a partial prepayment of the Special Tax obligation and that a portion of the Special Tax obligation equal to the outstanding percentage (1.00 – F) of the remaining Special Tax obligation shall continue to be authorized to be levied on such Assessor’s Parcel pursuant to Section C.
Notwithstanding the foregoing, no partial prepayment shall be allowed unless the amount of Maximum Special Taxes, net of any priority administration, if any as defined in the Bond documents, that may be levied on Taxable Property, in each Fiscal Year, both prior to and after the proposed partial prepayment, is at least 1.1 times the annual Debt Service on all Outstanding Bonds to be paid from the Maximum Special Taxes in each Fiscal Year.
J. TERM OF SPECIAL TAX
The Maximum Special Tax shall be levied commencing in Fiscal Year 2025 -2026 to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for the Special Tax Term.
05/13/2025 Item No.17.
C-22
Resolution No. 11374
Attachment A
City of Folsom
Community Facilities District No. 20-1 (Russell Ranch 2) Maximum Special Tax Rates
(Fiscal Year 2025-2026)
Land Use Category
Residential
Floor Area
2025-2026
Maximum
Special Tax
Rate(1) Taxed Per
Developed Property:
Multi Family Low Density Property ≥ 2,000 $1,534 Residential Unit Multi Family Low Density Property 1,800 – 1,999 1,336 Residential Unit Multi Family Low Density Property < 1,800 1,280 Residential Unit Other Taxable Property Not Applicable 13,400 Acre
Small Lot Final Map Property:
Multi Family Low Density Property Not Applicable $1,280 Residential Lot
Large Lot Property: Not Applicable $13,400 Acre
(1) On each July 1, commencing on July 1, 2026, the Maximum Special Tax Rates shall be increased by the Special Tax Escalation Factor of the Maximum Special Tax Rates in effect for the previous Fiscal Year.
05/13/2025 Item No.17.
C-23
Resolution No. 11374
Attachment B
City of Folsom
Community Facilities District No. 20-1 (Russell Ranch 2) Minimum Special Tax Revenue
(Fiscal Year 2025-2026)
Land Use Category
Planned
Residential
Units / Acres
2025-2026
Developed Property
Maximum Special
Tax Rate(1)(2)
2025-2026
Minimum
Special Tax
Revenue (1)(3)
Developed Property:
Multi Family Low Density Property 118 $1,280 $151,040
Other Taxable Property 0.0 13,400 0
Total Minimum Special Tax Revenue $151,040
(1) On each July 1, commencing on July 1, 2026, the Developed Property Maximum Special Tax Rates and Minimum Special Tax Revenue shall be increased by the Special Tax Escalation Factor of the Developed Property Maximum Special Tax Rates and Minimum Special Tax Revenue in effect for the previous Fiscal Year.
(2) As a result of future Assessor’s Parcel changes, described in Section C.1, the assigned Maximum Special Tax Rates for Developed Property may exceed the Developed Property Maximum Special Tax Rates set forth in this table.
(3) The total Minimum Special Tax Revenue may be decreased as result of all or a portion of Maximum Special Tax obligations being prepaid and permanently satisfied pursuant to Section I. (4) Based upon the Developed Property Maximum Special Tax Rate for Multi F amily Low Density Property with Residential Floor Area of less than 1,800 square feet.
05/13/2025 Item No.17.
D-24
Resolution No. 11374
EXHIBIT D
NOTICE OF PUBLIC HEARING REGARDING THE FORMATION OF THE
CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 20-1
(RUSSELL RANCH 2),
AND LEVYING OF SPECIAL TAXES THEREIN
NOTICE IS HEREBY GIVEN that on Tuesday, May 13, 2025, the City of Folsom (the “City”) duly adopted its Resolution No. XXXX (the “Resolution of Intention”) wherein it declared its intention to form a community facilities district to be known as “City of Folsom Communit y Facilities District No. 20-1 (Russell Ranch 2)” (“CFD 20-1” or the “CFD”) and to levy a special tax within CFD 20-1 and to pay the costs of certain public facilities, including, transportation improvements; potable and non -potable water system improvements; drainage system improvements; wastewater system improvements; park, park way, open space and preserve improvements; and other incidental expenses and bond issuance costs (collectively, the “Facilities”), all as more specifically described in the Resolution of Intention , and its Resolution No. 11374 (the “Resolution Declaring the Necessity for Incurring Bonded Indebtedness”) wherein it declared its intention to incur bonded indebtedness in a principal amount not to exceed three million five hundred thousand dollars ($3,500,000) to finance the acquisition and construction of the Facilities within CFD 20-1 under and pursuant to the terms and provisions of the “Mello Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”).
This Notice contain s a brief summary of the Proposal (as described below), but you are referred to the City’s Resolution of Intention and its Resolution Declaring the Necessity for Incurring Bonded Indebtedness on file with the City Clerk for the definitive description of th e Proposal, including a description of the Facilities, a list of incidental expenses and bond issuance costs and the rates and methods of apportionment of the special tax.
The Proposal consists of the authorization of (1) a special tax within CFD 20-1, (2) the issuance of bonds to finance the Facilities and (3) the annual appropriations limit of CFD 20-1 to be set at $3,500,000 for the 2025-26 fiscal year.
In order to confer the authority upon the City to levy the special tax and to issue the bonds, a public hearing must be held on the Proposal, the City must determine to form CFD 20-1, and, finally, the qualified electors within CFD 20-1 must approve the Proposal by a two -thirds vote.
Where a proposed community facilities district is uninhabited or inhabit ed by fewer than 12 registered voters ( there are no registered voters in habiting CFD 20-1) the qualified electors are, pursuant to the Act, the owners of property within the proposed community facilities district.
THIS IS THE NOTICE OF THE PUBLIC HEARING.
The public hearing will be held during the City Council meeting on Tuesday, June 24, 2025, at 6:30 p.m., or as soon thereafter as the City Council may reach the matter, at the City Hall, 50 Natoma Street, Folsom, CA, 95630.
05/13/2025 Item No.17.
Resolution No. 11374
At the hearing, oral and writt en testimony of all interested persons or potential special taxpayers for or against the formation of CFD 20-1, the extent of CFD 20-1, the furnishing of the Facilities, the authorization to levy a special tax within CFD 20-1 and the authorization to issue the bonds will be heard. Written protests against the formation of CFD 20-1 delivered to the City Clerk at or before the time set for the hearing by either registered voters residing within, or the owners of property within, CFD 20-1 will be counted towa rd a possible majority protest against such formation and designation. Written protests by a majority of the registered voters residing within CFD 20-1 (provided they number at least 6) or by the owners of a majority of the land area within CFD 20-1 that is or will be subject to the related special tax, if not withdrawn prior to the close of the hearing so as to reduce the value of the protests to less than a majority, will req uire the formation of CFD 20-1 and the levy of the related specified special tax to be eliminated from immediate consideration and prevent their being included in a subsequent proceedings for at least one year. If such protests constitute a majority protest and are directed only against the furnishing of a specified type or types of the Facilities or against levying a specified special tax, only those types of Facilities or the specified special tax will be eliminated from the proceedings.
Questions should be directed to Stacey Tamagni, Finance Director, telephone (916) 461- 6080.
Dated: ________, 2025.
City Clerk of the
CITY OF FOLSOM
05/13/2025 Item No.17.
Attachment 2
05/13/2025 Item No.17.
Resolution No. 11375
RESOLUTION NO. 11375
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM
DECLARING THE NECESSITY FOR INCURRING BONDED
INDEBTEDNESS IN AND FOR THE CITY OF FOLSOM COMMUNITY
FACILITIES DISTRICT NO. 20-1 (RUSSELL RANCH 2) AND CALLING
FOR A PUBLIC HEARING THEREON
WHEREAS, the City Council (the “City Council”) of the City of Folsom declares and finds that in order to finance the acquisition and construction of public improvements described in Resolution No. 11374 (the “Resolution of Intention”), it is necessary to incur bonded indebtedness; and
WHEREAS, the purpose for which the proposed debt is to be incurred is to provide the funds necessary to pay for the cost of said public improvements; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom, as follows:
Section 1. The City Council finds and determines that the foregoing recitals are true and correct.
Section 2. The maximum amount of the proposed bonded in debtedness of the City of Folsom Community Facilities District No. 20-1 (Russell Ranch 2) is $3,500,000.
Section 3. The City Council hereby sets Tuesday, June 24, 2025, 6:30 p.m., or as soon thereafter as the City Council may reach the matter, at the City Hall, 50 Natoma Street, Folsom, CA, 95630, as the time and place for a hearing by the City Council on the proposed bond issue.
At that time and place any persons interested, including any persons owning property in the proposed community facilities district, will be heard.
Section 4. It is the intention of this City Council that any such bonds issued shall be made callable in accordance with the terms of the Mello-Roos Community Facilities Act of 1982.
Section 5. The City Clerk of the City of Folsom shall have a copy of the Notice of Public Hearing published pursuant to the Resolution of Intention.
Section 6. This resolution shall take effect from and after its adoption.
05/13/2025 Item No.17.
Resolution No. 11375
PASSED AND ADOPTED 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
05/13/2025 Item No.17.
Attachment 3
05/13/2025 Item No.17.
05/13/2025 Item No.17.
05/13/2025 Item No.17.
05/13/2025 Item No.17.
05/13/2025 Item No.17.
A-1
4137-6814-5755.3
EXHIBIT A
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT
The boundaries of the territory which is proposed for inclusion in the Community Facilities District are depicted in the attached map entitled “Proposed Boundaries of City of Folsom Community Facilities District No. 20-1 (Russell Ranch 2).” APN Owner
072-3510-005-0000 TPG AG EHC III (LEN) CA 5, L.P.
[Boundary Map Attached]
05/13/2025 Item No.17.
05/13/2025 Item No.17.
B-1
4137-6814-5755.3
EXHIBIT B
FACILITIES
Authorized facilities include any and all improvements that are included in the Specific Plan Infrastructure Fee Program adopted by the City Council on September 8, 2015, as amended to the date hereof and including any future amendments thereto. These facilities, include, but are not limited to:
- Zone 4/5 Booster Pump Station;
- Zone 5 Water Tank and Zone 6 Booster Pump Station;
- Highway 50 Water Transmission Line;
- Alder Creek Parkway Improvements; and
- Grand Prairie Improvements.
Transportation Improvements
Eligible roadway improvements include, but are not limited to: acquisition of land and easements; roadway design; project management; bridge crossings and culverts; clearing, grubbing, and demolition; grading, soil import/export, paving (including slurry seal), and decorative/enhanced pavement concrete and/or pavers; joint trenches, underground utilities and undergrounding of existing utilities; dry utilities and appurtenances; curbs, gutters, sidewalks, bike trails (including onsite and off-site), enhanced fencing, and access ramps; street lights, signalization, and traffic signal control systems; bus turnouts; signs and striping; erosion control; median and parkway landscaping and irrigation; entry monumentation; bus shelters, Bus Rapid Transit improvements including transfer stations and regional public transit improvements; masonry walls; traffic control and agency fees; and other improvements related thereto. Eligible improvements for the roads listed above also include any and all necessary underground potable and recycled water, sanitary sewer, and storm drainage system improvements.
Authorized facilities include the following transportation improvements:
- Placerville Road—from Highway 50 to White Rock Road. - Alder Creek Parkway—from Scott Road to the Empire Ranch Road. - Grand Prairie Road—from Alder Creek Parkway to Placerville Road. - Scott Road—from Alder Creek Parkway to Street “A.”
- Empire Ranch Road—from property line to White Rock Road.
05/13/2025 Item No.17.
B-2
4137-6814-5755.3
- Other public roadway improvements designed to meet the needs of development within CFD No. 20-1, including internal subdivision streets and related underground utilities.
Potable and Non-Potable Water System Improvements
Authorized facilities include any and all on- and off-site backbone water and recycled (or non-potable water facilities) designed to meet the needs of development within CFD No. 20-1.
These facilities include, but are not limited to, potable and non-potable mains, valves, pressure reducing stations, flow meters, fire hydrants, and other improvements related thereto such as site clearing, grading, and paving; services, and appurtenances; wells; water treatment, distribution, and storage facilities; curbs and gutters; booster pump stations; stand-by generators; site lighting, drainage, sanitary sewer, and water service; landscaping and irrigation; access gates and fencing; and striping and signage.
Drainage System Improvements
Authorized facilities include any and all drainage and storm drain improvements designed to meet the needs of development within CFD No. 20-1. These facilities include, but may not be limited to excavation and grading, pipelines and appurtenances, outfalls, and water quality measures; detention/retention basins, drainage pretreatment facilities, drainage ways/channels, pump stations, landscaping and irrigation; access roads, gates and fencing; and striping and signage and other improvements related thereto.
Wastewater System Improvements
Authorized facilities include any and all wastewater facilities designed to meet the needs of development within CFD No. 20-1. These facilities include, but may not be limited to, pipelines and all appurtenances thereto; manholes; tie-in to existing main line; force mains; lift stations; odor-control facilities; and permitting related thereto; and related sewer system improvements.
Park, Parkway, Open Space and Preserve Improvements
Authorized facilities include any and all improvements to parks, parkways, and open space required for development within CFD No. 20-1. These facilities include, but may not be limited to grading; turf, shrubs and trees; landscaping irrigation; site lighting; drainage; sanitary sewer and water service, pedestrian and bicycle trails, protective fencing (including soundwalls), pedestrian/bicycle bridges; public art; active and passive park and open space improvements (including respites and overlooks); related monumentation and signage; storm drain crossings; environmental mitigation for wetlands, hawk, and other species for infrastructure under the Specific Plan Infrastructure Fee Program and authorized facilities herein; access gates and fencing; and related park, open space and preserve improvements.
05/13/2025 Item No.17.
B-3
4137-6814-5755.3
Other Incidental Expenses and Bond Issuance Costs
In addition to the above facilities, other incidental expenses as authorized by the Mello- Roos Community Facilities Act of 1982, including, but not limited to, the cost of planning and designing the facilities (including the cost of environmental evaluation, remediation and mitigation); engineering and surveying; construction staking; utility relocation and demolition costs incidental to the construction of the public facilities; costs of project/construction management; costs (including the costs of legal services) associated with the formation of the Mello-Roos CFD; issuance of bonds (if any); determination of the amount of taxes; collection of taxes; payment of taxes; costs of calculating and providing reimbursements from one-time special tax payments; or costs otherwise incurred in order to carry out the authorized purposes of the CFD; and any other expenses incidental to the formation and implementation of the CFD and to the construction, completion, inspection and acquisition of the authorized facilities.
05/13/2025 Item No.17.
C-1
4137-6814-5755.3
EXHIBIT C
RATE AND METHOD OF APPORTIONMENT
[Attached]
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
FOR CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 20-1
(RUSSELL RANCH 2)
A Special Tax, as hereinafter defined, shall be levied and collected within the City of Folsom Community Facilities District No. 20-1 (Russell Ranch 2) (“CFD No. 20-1”) each Fiscal Year commencing in Fiscal Year 2025-2026, in an amount determined by the application of the procedures below. All Taxable Property within CFD No. 20-1, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. GENERAL DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for an “Accessory Dwelling Unit” as defined in California Government Code Section 66313, as may be amended from time to time, that is accessory to a Residential Unit.
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on County records, such as an Assessor’s Parcel Map and secured roll data, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Large Lot Map, Small Lot Final Subdivision Map, condominium plan, record of survey, or other recorded document creating or describing the parcel.
If the preceding maps for a land area are not available, the Acreage of such land area may be determined utilizing available spatial data and GIS. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of CFD No. 20-1 including, but not limited to, the following: the costs of any paying agents/fiscal agents/trustees related to Bond payments (including the fees and expenses of related counsel); the costs of computing the Special Tax Requirement, the Special Taxes and of preparing the collection schedules for the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, County Tax Collector’s Office or County Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements associated with applicable federal and state securities laws, or otherwise related to CFD No. 20-1 or the Bonds; the City’s annual administration fees and third party expenses; costs of responding to public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax or interpretation of this Rate and Method of Apportionment of Special Taxes; amounts needed to pay any required arbitrage rebate to the federal government related to the Bonds; the costs associated with the release of funds from any escrow account; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in CFD No. 20-1.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 20- 1 for any other administrative purposes of CFD No. 20-1.
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 2
“Assessor’s Parcel”or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the County Assessor of the County designating lots or parcels by an Assessor’s Parcel number.
“Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. “Bond Year” means a one year period beginning on September 2 nd in each year and ending on September 1st in the following year, unless defined differently in the applicable Indenture. “Bonds” means bonds or other debt (as defined in section 53317 of the Act), whether in one or more series, issued or assumed by or on behalf of the City for CFD No. 20-1 under the Act, and secured by the pledge of the Special Taxes.
“Building Permit” means a permit issued by the City for new construction of a residential or non- residential building on an Assessor’s Parcel.
“CFD No. 20-1” means City of Folsom Community Facilities District No. 20-1 (Russell Ranch 2), established by the City Council pursuant to the Act.
“CFD No. 20-1 Administrator” means the City’s Finance Director, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“City” means the City of Folsom, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 20-1. “County” means the County of Sacramento, California.
“Debt Service” means for each Bond Year, the total amount of principal and interest due on any Outstanding Bonds.
“Developed Property” means, for each Fiscal Year, all Taxable Property for which a Building Permit for new construction was issued prior to June 30 of the previous Fiscal Year. “Exempt Property” means all property located within the boundaries of CFD No. 20-1 which is exempt from the Special Tax pursuant to the Act or Section E below. “Fiscal Year” means the period starting July 1 and ending on the following June 30. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 3
“Large Lot Property” means, for each Fiscal Year, all Taxable Property for which a Large Lot Map was recorded prior to June 30 of the previous Fiscal Year, excluding any portion(s) thereof classified as Developed Property or Small Lot Final Map Property. Large Lot Property also means, for each Fiscal Year, all Taxable Property classified as Small Lot Final Map Remainder Property as of June 30 of the previous Fiscal Year.
“Large Lot Map” means a recorded subdivision map creating larger parcels by land use. The Large Lot Map does not create individual lots for which Building Permits may be issued for Residential Units. “Maximum Special Tax”means the total maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Special Tax Rate”means the maximum annual Special Tax rate for each land use category of Taxable Property, as shown in Attachment A, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Minimum Special Tax Revenue” means the minimum amount of total CFD No. 20-1 Maximum Special Tax, as adjusted annually by the Special Tax Escalation Factor, less any Maximum Special Tax amounts prepaid and permanently satisfied pursuant to Section I. The Minimum Special Tax Revenue, based on Planned Development, is set forth in Attachment B of this Rate and Method of Apportionment of Special Taxes.
“Multi Family Low Density Property” means, for each Fiscal Year, all Taxable Property for which a Building Permit could be issued for purposes of constructing one or more detached or attached Residential Units with a permitted density range of 7-12 Residential Units per Acre and more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council.
“Open Space Property” means property within CFD No. 20-1 which (a) has been designated with specific boundaries and acreage on a Small Lot Final Subdivision Map as open space, or (b) is classified by the City zoning code or County Assessor as open space, or (c) has been irrevocably offered for dedication as open space to the federal government, the State of California, the County, the City, any other public agency, a private, non-profit organization, or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. “Other Taxable Property” means all other land uses of Taxable Property, for which a Building Permit for new construction can be issued. Other Taxable Property does not include Multi Family Low Density Property land use categories.
“Outstanding Bonds” means all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay As You Go Costs” means that portion of the Special Tax Requirement attributable to the direct payment for the acquisition and/or construction of public improvements, which are authorized to be financed by CFD No. 20-1. Special Taxes attributable to Pay As You Go Costs may only be levied against Developed. After the issuance of the first series of Bonds, Pay As You Go Costs will no longer be levied and will not be included in determining the annual Special Tax Requirement.
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 4
“Planned Development” means the planned number of Residential Units and Other Taxable Property Acreage planned within CFD No. 20-1, set forth in Attachment B of this Rate and Method of Apportionment of Special Taxes, as amended by the future recordation of all Large Lot Maps and Small Lot Final Subdivision Maps within CFD No. 20-1.
“Property Owner Association Property” means any property within CFD No. 20-1 which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. “Proportionately” means for Taxable Property that the ratio of the Special Tax levy to the Maximum Special Tax is equal for all Assessors’ Parcels within each land use category (Developed Property, Small Lot Final Map Property, Large Lot Property, etc.) within CFD No. 20-1. “Public Property” means any property within CFD No. 20-1 which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property, which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other governmental agency. “Residential Floor Area” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD No. 20-1 Administrator by reference to appropriate records kept by the City’s building department. Residential Floor Area for a residential structure will be based on the Building Permit(s) issued for such structure prior to it being classified as Developed Property and will not be adjusted as a result of future development modifications.
“Residential Lot” means an individual residential lot within a recorded Small Lot Final Subdivision Map on which a Building Permit has been or is permitted to be issued for construction of one or more Residential Units.
“Residential Property” means, for each Fiscal Year, all Taxable Property for which a Building Permit has been issued for purposes of constructing Residential Units, including Multi Family Low Density Property.
“Residential Unit” means an individual single family detached residential unit or an individual residential unit within an apartment building, duplex, triplex, fourplex, townhome or condominium structure. The number of Residential Units assigned to each Assessor’s Parcel may be determined by (a) referencing Assessor’s Data, (b) site surveys and physical unit counts, and/or (c) other research by the CFD Administrator. An Accessory Dwelling Unit shall not be considered a Residential Unit for the purposes of the Special Tax.
“Small Lot Final Map Property” means, for each Fiscal Year, all Taxable Property for which a Small Lot Final Subdivision Map was recorded prior to June 30 of the previous Fiscal Year.
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 5
“Small Lot Final Map Remainder Property” means an Assessor’s Parcel that is created from the subdivision of Large Lot Property by the recordation of a Small Lot Final Subdivision Map that has not yet been mapped for final development approval. Small Lot Final Map Remainder Property is that portion of property for which the Small Lot Final Subdivision Map definition does not apply (i.e., does not contain individual lots for which building permits may be issued for Residential Units without further subdivision of such property). Each Fiscal Year, all Taxable Property classified as Small Lot Final Map Remainder Property, as of June 30 of the previous Fiscal Year, will be considered Large Lot Property.
“Small Lot Final Subdivision Map” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued for Residential Units without further subdivision of such property. “Special Tax” means the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement. “Special Tax Escalation Factor” means two percent (2%) annually. “Special Tax Requirement” means that amount required in any Fiscal Year for CFD No. 20-1 to (1) pay Debt Service on all Outstanding Bonds due in the succeeding Bond Year; (2) pay Debt Service on Bonds expected to be issued on behalf of CFD No. 20-1 due in the succeeding Debt Year; (3) Administrative Expenses; (4) provide any amount required to establish or replenish a reserve fund in connection with any CFD No. 20-1 Bonds; (5) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (3) or (4); and (6) account for Pay As You Go Costs. The amounts referred to in clauses (1) through (5) of the preceding sentence may be reduced in any Fiscal Year (in the City's sole discretion) by (i) surplus balances in funds and accounts for CFD No. 20-1 Bonds to the extent that such balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding Bonds or other indebtedness as determined by the CFD Administrator.
“Special Tax Term” means Fiscal Year 2064-2065.
“State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the CFD No. 20-1 Boundaries that are not exempt from the CFD No. 20-1 Special Tax pursuant to law or Section E below. “Trustee” means the entity appointed pursuant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof.
“Welfare Exempt Property” means, in any Fiscal Year, all Assessor Parcels within the boundaries of CFD No. 20-1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 6
1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act. Pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcels that receive a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, using City and County records, City zoning information, and land use development plans, all Assessor’s Parcels within CFD No. 20-1 shall be designated as either Taxable Property or Exempt Property.
All Taxable Property shall be further classified as Developed Property, Small Lot Final Map Property, or Large Lot Property and shall be subject to the levy of the annual Special Tax determined pursuant to Section C below. Once Taxable Property is classified as Developed Property, it shall remain classified as Developed Property and shall not be reclassified, regardless of changes in land use or development modifications.
C. SPECIAL TAX
A Maximum Special Tax shall be assigned to all Taxable Property within CFD No. 20-1 according to the Maximum Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment of Special Taxes.
Once assigned, the sum of the total Maximum Special Tax shall be equal to or greater than the Minimum Special Tax Revenue. The Minimum Special Tax Revenue for Fiscal Year 2025-2026 is set forth in Attachment B of this Rate and Method of Apportionment of Special Taxes.
On each July 1, commencing on July 1, 2026, the Maximum Special Tax Rates and Minimum Special Tax Revenue shall be increased by the Special Tax Escalation Factor of the Maximum Special Tax Rates and Minimum Special Tax Revenue in effect for the previous Fiscal Year.
C.1. Future Assessor’s Parcel Changes
The Maximum Special Tax shall be assigned to all future Assessor’s Parcel(s) created from a subdivision, lot line adjustment, or merger of one or more Assessor’s Parcels so that the revised sum of the total Maximum Special Tax revenue is not less than the Minimum Special Tax Revenue set forth in Attachment B of this Rate and Method of Apportionment of Special Taxes.
Large Lot Property Subdividing into Small Lot Final Map Property When Large Lot Property subdivides into Small Lot Final Map Property, the Maximum Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. If the Large Lot Property subdivision also creates Small Lot Final Map Remainder Property, the expected Developed Property Maximum Special Tax for the Small Lot Final Map Remainder Property shall be based upon the Planned Development for the Small Lot Final Map Remainder Property. The expected Developed Property Maximum Special Tax for any
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 7
remaining Large Lot Property shall be based upon the Planned Development of the Large Lot Property.
If the sum of the total expected Developed Property Maximum Special Tax is greater than or equal to the Minimum Special Tax Revenue, there will be no further adjustments to the Developed Property and Small Lot Final Map Property Maximum Special Tax Rates for the Small Lot Final Map Property and Small Lot Final Map Remainder Property created from the Large Lot Property subdivision.
If the sum of the total expected Developed Property Maximum Special Tax is less than the Minimum Special Tax Revenue, and such difference is not eliminated by the full or partial prepayment of the Maximum Special Tax pursuant to Section I, the Developed Property and Small Lot Final Map Property Maximum Special Tax Rates shall be Proportionately increased, on the Small Lot Final Map Property and Small Lot Final Map Remainder Property created from the Large Lot Property subdivision, until the sum of the total expected Developed Property Maximum Special Tax is equal to the Minimum Special Tax Revenue. Attachment B of this Rate and Method of Apportionment of Special Taxes shall be updated to reflect any increases to the Maximum Special Tax Rates from the Large Lot Property subdivision. The Developed Property and Small Lot Final Map Property Maximum Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property or Small Lot Final Map Property created prior to the Large Lot Property subdivision.
C.2. Method of Apportionment of Special Tax
Using the definitions and procedures described herein, the CFD No. 20-1 Administrator shall determine the Special Tax Requirement and levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Special Tax in order to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Special Tax. The Special Tax shall be levied on Small Lot Final Map Property for the entire portion of the Special Tax Requirement, excluding only Pay As You Go Costs.
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on all Large Lot Property at a rate up to 100% of the Maximum Special Tax. The Special Tax shall be levied on Large Lot Property for the entire portion of the Special Tax Requirement, excluding only Pay As You Go Costs.
D. DELINQUENCIES
Notwithstanding the above, under no circumstances will the CFD No. 20-1 Special Tax levied against any Assessor’s Parcel of Developed Property classified as Residential Property, in any Fiscal Year, be increased as a consequence of the delinquency or default in the payment of the CFD No. 20-1 Special Taxes by the owner or owners of any other Taxable Property by more than ten percent (10%) above
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 8
the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.
E. EXEMPTIONS
E.1. The CFD No. 20-1 Administrator shall classify the following as Exempt Property: Public Property, Property Owner Association Property, Open Space Property, and Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement.
E.2. No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property; however, pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcels that receive a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.
E.3. The Maximum Special Tax obligation for Taxable Property which will be transferred or dedicated to a public agency and will be classified as Public Property shall be prepaid in full by the seller, pursuant to Section K, prior to the transfer/dedication of such Taxable Property. Until the Maximum Special Tax obligation for any such Taxable Property is prepaid, the Taxable Property shall continue to be subject to the levy of the Special Tax. An exception to this may be made if an Assessor’s Parcel of Public Property, such as a school site, is relocated to an Assessor’s Parcel of Taxable Property, in which case the Assessor’s Parcel of previously Public Property becomes Taxable Property and the Assessor’s Parcel of previously Taxable Property becomes Public Property. This trading of an Assessor’s Parcel from Taxable Property to Public Property will be permitted to the extent there is no loss in Maximum Special Tax revenue, and the transfer is agreed to by the owners of all Assessor’s Parcels involved in the transfer and the City Council.
E.4. If the use of an Assessor’s Parcel changes so that such Assessor’s Parcel is no longer eligible to be classified as one of the uses set forth in Section E.1 above that would make such Assessor’s Parcel eligible to continue to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the Special Tax.
F. INTERPRETATIONS
The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the Rate and Method of Apportionment of Special Taxes. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.
Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Taxes.
G. REVIEW/APPEALS
The CFD No. 20-1 Administrator may establish such procedures, as it deems necessary to undertake the review of any such appeal. The CFD No. 20-1 Administrator shall interpret this Rate and Method
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 9
of Apportionment of Special Taxes and make determinations relative to the annual administration of the Special Tax and any property owner appeals, as herein specified.
Any property owner may file a written appeal of the Special Tax with the CFD No. 20-1 Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Taxes are in error.
The CFD No. 20-1 Administrator shall review the appeal, meet with the appellant if the CFD No. 20-1 Administrator deems necessary, and advise the appellant of its determination.
If the property owner disagrees with the CFD No. 20-1 Administrator’s decision relative to the appeal, the owner may file a written notice with the City Manager appealing the amount of the Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any, by the City Manager, the property owner believes such error still exists, such person may file a written notice with the City Council appealing the amount of the Special Tax levied on such Assessor’s Parcel. The decision of the City shall be final and binding to all persons. If the decision of the CFD No. 20-1 Administrator or subsequent decision by the City Manager or City Council requires the Special Taxes to be modified or changed in favor of the property owner, no cash refund shall be made for prior years’ Special Taxes, but an adjustment shall be made to credit future Special Taxes. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.
H. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 20-1, may, at the sole discretion of the City, directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor’s Parcels of Taxable Property that are delinquent in the payment of Special Taxes.
I. PREPAYMENT OF SPECIAL TAX
The Special Tax obligation of an Assessor’s Parcel of Taxable Property may be prepaid and permanently satisfied as described herein; provided that there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation shall provide the CFD No. 20-1 Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD No. 20-1 Administrator shall notify such owner of the prepayment amount of such Assessor’s Parcel.
Prepayment must be made not less than 60 days prior to the next occurring date that notice of redemption of Bonds, whichever date is earlier, from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The CFD No. 20-1 Administrator may charge a fee for providing this service.
The following definitions apply to this Section I:
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 10
“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 20-1.
“Buildout” means the state of maximum development of CFD No. 20-1, based on plans and anticipated development.
"CFD Public Facilities Cost" means $3,889,000 for CFD No. 20-1, expressed in 2025 dollars, which shall increase by the annual percentage change in the Construction Inflation Index on July 1, 2026 and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD No. 20-1 Administrator as sufficient to provide the public facilities to be funded by CFD No. 20-1 or (ii) shall be determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment of Special Taxes as described in Section C.
"Construction Inflation Index" means the annual percentage change in the Engineering News-Record Construction Cost Index, measured as of the calendar year which ends in the previous Fiscal Year, but not less than zero percent. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Construction Cost Index.
"Future Facilities Costs" means, as of the date of prepayment, the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) proceeds of all Previously Issued Bonds, which were, at the time of issuance, available to the City for Authorized Facilities, (b) interest earnings on the improvement fund actually earned prior to the date of prepayment, and (c) proceeds of the Special Tax dedicated to Pay-As-You-Go Costs. In no case shall the Future Facilities Costs be less than zero.
"Previously Issued Bonds" means all Outstanding Bonds that have been issued on behalf of CFD No. 20-1 prior to the date of prepayment.
I.1. Prepayment in Full
If a prepayment is made prior to the issuance of Bonds, the Redemption Premium, Interest Amount, Reserve Fund Credit, and Capitalized Interest Credit as calculated below, shall be zero.
The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount:
Plus Future Facilities Amount
Plus Redemption Premium
Plus Interest Amount
Plus Administrative Fees and Expenses
Less Reserve Fund Credit
Less Capitalized Interest Credit
Total: Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount shall be calculated by the CFD No. 20-1 Administrator as follows:
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 11
Step 1: Confirm that no Special Tax delinquency applies to such Assessor’s Parcel, and if delinquencies are applicable compute all amounts due, including interest and penalties.
Step 2: For Assessor’s Parcels of Developed Property compute the Maximum Special Tax. For Assessor’s Parcels of Small Lot Final Map Property and Large Lot Property to be prepaid, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the expected development for that Assessor’s Parcel.
Step 3: Divide the Maximum Special Tax computed pursuant to Step 2 by the total estimated Maximum Special Tax for CFD No. 20-1 based on the Developed Property Maximum Special Tax which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 20-1. (the “Maximum Special Tax Percentage”).
Step 4: Multiply the Maximum Special Tax Percentage by the Outstanding Bonds to compute the principal amount of Outstanding Bonds to be redeemed (the “Bond Redemption Amount”).
Step 5: Compute the Future Facilities Costs.
Step 6: Multiply the Maximum Special Tax Percentage by the total Future Facilities Costs to compute the Future Facilities amount to be prepaid (the “Future Facilities Amount”).
Step 7: Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the " Redemption Premium") determined by reference to the Indenture.
Step 8: Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds (the “Interest Amount”).
Step 9: Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
Step 10: If reserve funds for the Outstanding Bonds held under the Indenture, if any, are at or above 100% of the then reserve requirement (as required by the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve requirement for the Outstanding Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the applicable reserve requirement on the prepayment date or if the Reserve Fund is satisfied by a credit instrument rather than cash funded.
Step 11: If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the Maximum Special Tax Percentage by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit").
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 12
Step 12: The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 8 and 9 less the amount computed pursuant to Steps 10 and 11 (the " Prepayment Amount").
Step 13: From the Prepayment Amount, the amounts computed pursuant to Step 6 shall be used by the City to pay for Future Facilities Costs. The amounts computed pursuant to Steps 4, 6, 7 and 8 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make Debt Service payments. The amount computed pursuant to Step 9 shall be retained by the City for the payment of Administrative Fees and Expenses.
Current year Special Taxes that are not yet paid will remain outstanding and will be collected in the manner billed. With respect to any Assessor's Parcel that is prepaid, the CFD No. 20-1 Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate the prepayment of the Special Tax and the obligation of such Assessor's Parcel has been satisfied.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes, net of any priority administration, if any as defined in the Bond documents, that may be levied on Taxable Property, in each Fiscal Year, both prior to and after the proposed prepayment, is at least 1.1 times the annual Debt Service on all Outstanding Bonds to be paid from the Maximum Special Taxes in each Fiscal Year.
I.2. Prepayment in Part
The Special Tax obligation may be partially prepaid in any percentage of the full Prepayment Amount. The amount of the partial prepayment shall be calculated as in the above Section I.1; except that a partial prepayment shall be calculated according to the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = the Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section I.1 above A = the Administrative Fees and Expenses calculated according to Section I.1 above F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation.
The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation shall notify the CFD No. 20-1 Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the amount of partial prepayment expressed in increments equal to percentage of the full Prepayment Amount, and (iii) the company or agency that will be acting as the escrow agent, if applicable. Partial prepayment must be made not less than 60 days prior to the next occurring date that notice of redemption of Bonds, whichever date is earlier, from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The CFD No. 20-1 Administrator may charge a fee for providing this service.
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 13
With respect to any Assessor’s Parcel that is partially prepaid, the CFD No. 20-1 Administrator shall indicate in the records of CFD No. 20-1 that there has been a partial prepayment of the Special Tax obligation and that a portion of the Special Tax obligation equal to the outstanding percentage (1.00 – F) of the remaining Special Tax obligation shall continue to be authorized to be levied on such Assessor’s Parcel pursuant to Section C.
Notwithstanding the foregoing, no partial prepayment shall be allowed unless the amount of Maximum Special Taxes, net of any priority administration, if any as defined in the Bond documents, that may be levied on Taxable Property, in each Fiscal Year, both prior to and after the proposed partial prepayment, is at least 1.1 times the annual Debt Service on all Outstanding Bonds to be paid from the Maximum Special Taxes in each Fiscal Year.
J. TERM OF SPECIAL TAX
The Maximum Special Tax shall be levied commencing in Fiscal Year 2025-2026 to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for the Special Tax Term.
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 14
Attachment A
City of Folsom
Community Facilities District No. 20-1 (Russell Ranch 2) Maximum Special Tax Rates
(Fiscal Year 2025-2026)
Land Use Category
Residential
Floor Area
2025-2026
Maximum
Special Tax
Rate(1) Taxed Per
Developed Property:
Multi Family Low Density Property ≥ 2,000 $1,534 Residential Unit Multi Family Low Density Property 1,800 –1,999 1,336 Residential Unit Multi Family Low Density Property < 1,800 1,280 Residential Unit Other Taxable Property Not Applicable 13,400 Acre
Small Lot Final Map Property:
Multi Family Low Density Property Not Applicable $1,280 Residential Lot Large Lot Property: Not Applicable $13,400 Acre
(1) On each July 1, commencing on July 1, 2026, the Maximum Special Tax Rates shall be increased by the Special Tax Escalation Factor of the Maximum Special Tax Rates in effect for the previous Fiscal Year.
05/13/2025 Item No.17.
DRAFT City of Folsom - Community Facilities District No. 20-1 April 25, 2025 (Russell Ranch 2) Page 15
Attachment B
City of Folsom
Community Facilities District No. 20-1 (Russell Ranch 2) Minimum Special Tax Revenue
(Fiscal Year 2025-2026)
Land Use Category
Planned
Residential
Units / Acres
2025-2026
Developed Property
Maximum Special
Tax Rate(1)(2)
2025-2026
Minimum
Special Tax
Revenue (1)(3)
Developed Property:
Multi Family Low Density Property 118 $1,280 $151,040
Other Taxable Property 0.0 13,400 0
Total Minimum Special Tax Revenue $151,040
(1) On each July 1, commencing on July 1, 2026, the Developed Property Maximum Special Tax Rates and Minimum Special Tax Revenue shall be increased by the Special Tax Escalation Factor of the Developed Property Maximum Special Tax Rates and Minimum Special Tax Revenue in effect for the previous Fiscal Year.
(2) As a result of future Assessor’s Parcel changes, described in Section C.1, the assigned Maximum Special Tax Rates for Developed Property may exceed the Developed Property Maximum Special Tax Rates set forth in this table.
(3) The total Minimum Special Tax Revenue may be decreased as result of all or a portion of Maximum Special Tax obligations being prepaid and permanently satisfied pursuant to Section I. (4) Based upon the Developed Property Maximum Special Tax Rate for Multi Family Low Density Property with Residential Floor Area of less than 1,800 square feet.
05/13/2025 Item No.17.
Attachment 4
05/13/2025 Item No.17.
05/13/2025 Item No.17.
Folsom City Council
Staff Report
1 MEETING DATE:
5/13/2025
AGENDA SECTION:
Consent Calendar
SUBJECT: Resolution No. 11381 - A Resolution Authorizing the City Manager to Execute an Agreement to Purchase 1 Natoma Street (APN 071- 0310-014-0000) for Police Department Use
FROM: Police Department
RECOMMENDATION / CITY COUNCIL ACTION
Staff recommends that the City Council pass and adopt Resolution No. 11381- A Resolution Authorizing the City Manager to Execute an Agreement to Purchase 1 Natoma Street (APN 071-0310-014-0000) for Police Department Use.
BACKGROUND / ISSUE
The existing Police Department Building was constructed in 1991 as part of the overall City Hall Campus and has served the Department for over 30 years. From 1991 to present time there have been many changes in growth of the City, growth of the Department, Technology, and Policing Standards. The current facility is no longer large enough to house the personnel needed to provide police services to Folsom. In 2023, we began using rental space inside 11 Natoma Street to house our Neighborhood Services Unit, consisting of our Traffic Bureau, School Resource Officers, Homeless Outreach Team, Problem Oriented Policing Team and Animal Control Officers.
The building at 11 Natoma Street has been recently sold to a new owner, with plans to use the building for other purposes. We have been notified that we need to move out of that current space. A separate building in that complex is available, located at 1 Natoma Street. Additionally, this investment directly addresses the substantial and sustained growth our city is experiencing, particularly in the Folsom Plan Area.
POLICY / RULE
05/13/2025 Item No.18.
2 Section 2.36.080 of the Folsom Municipal Code requires that contracts above $75,049 be awarded by the City Council.
ANALYSIS
Over the past several years, our city has experienced one of the most significant growth periods in its history. Since 2018, the population has increased by approximately 17,500 residents-a 23 percent rise from our base of approximately 75,000. Much of this growth has been concentrated in the Folsom Plan Area, where new development continues at a strong pace. 4,299 building permits have been issued in the area as of March 2025. With an estimated 2.6 occupants per unit, this accounts for roughly 11,000 new residents currently living in the Folsom Plan Area. At full buildout, this area is expected to house approximately 34,500 residents within the next six to ten years. This growth was anticipated, and the City collected impact fee revenue to meet the city facility demands created by this growth.
As the population has grown, so too have traffic volumes, calls for service, and demand for law enforcement. To keep up, the Police Department has expanded its staffing, which quickly exceeded our existing office capacity. We reached a point where specialized teams were working out of spaces designed for individual staff members or much smaller units.
In 2023, the department began leasing space at 11 Natoma Street to house our Neighborhood Services Unit. This unit includes the Traffic Bureau, School Resource Officers, Homeless Outreach Team, Problem-Oriented Policing Team, and Animal Control Officers. Recently, however, the ownership of these buildings changed, and the new owner has informed us that we will need to vacate the space by the end of 2025 due to new plans for the property.
Fortunately, a nearby building in the same complex, 1 Natoma Street, is now available for purchase. The building is approximately 8,148 square feet and represents a rare opportunity to secure permanent space for our Neighborhood Services Unit. Ownership would provide long-term stability, protect the City from future displacement, and eliminate ongoing rental expenses. It would also allow us to design the interior to suit our operational needs as our services continue to evolve alongside population growth.
The building is currently configured with several large, single offices, and would require some interior reconfiguration to accommodate our staff and work groups. Additionally, upgrades to IT infrastructure and security systems will be necessary to support safe and effective police operations. The purchase price of the building has been negotiated at $2,700,000 and we estimate the cost of improvements at approximately $1,000,000.
The Folsom Plan Area is responsible for the majority of this increased service demand.
Based on call volume and service patterns since the area’s development began, we estimate that approximately 90 percent of the need for this project stems directly from the growth in that area. This estimate is supported because from 2018 to the current budget year, we added an Animal Control Officer, 7 Police Officers, two Community Service Officers, one Sergeant, one Corporal and one Communications Supervisor, which were all attributed to the
05/13/2025 Item No.18.
3 growth in the Folsom Plan area. Additionally, we expect continued growth in personnel to adequately serve the Folsom Plan Area, 25 more personnel by 2035. This purchase addresses that expected need.
The purchase of 1 Natoma Street would also provide a solution to another challenge facing the Police Department. Our Communications Center has outgrown its current space due to the increased volume of emergency and non-emergency calls. There is no feasible way to expand within our current facility without sacrificing some other capability. If we acquire 1 Natoma Street, we would be able to relocate the Investigations Division there, which would in turn free up space to expand the Communications Center at our main police facility. This shift would also allow us to enlarge the Records Department while continuing to maintain front-counter services to the public.
Without adequate space to support our staff and services, our ability to respond promptly and maintain service quality will suffer. Delays and inefficiencies could ultimately erode public trust and diminish quality of life. Securing a permanent facility now ensures that we can continue to deliver the high standard of police services our community expects and deserves.
It’s important to recognize that the need for a long-term police presence in the Folsom Plan Area is apparent to us. The population will continue to grow, and the demand for public safety services—emergency response, traffic enforcement, school safety, homeless outreach, and more—will grow with it. As a companion to the 1 Natoma Street acquisition, we also plan to open a Police Services counter inside Fire Station 34, located in the heart of the Folsom Plan Area. A portion of the project’s improvement funds would be used to build out a small office and signage. The substation would be open to the public and staffed by a Records Technician or police volunteer, providing assistance with reports, questions, and potentially other City services.
This is a financially responsible and strategic decision. The funds needed to purchase 1 Natoma Street were specifically collected to support facility investments related to growth in the Folsom Plan Area. Acting now allows us to avoid higher future costs, protect against inflation, and ensure that we are being good stewards of taxpayer resources. Continuing to lease short-term space carries the risk of rising rents, disruption to services, and operational instability.
The City is at a critical decision point. With continued growth in the Folsom Plan Area, the upcoming loss of our leased space, and the rare opportunity to purchase a well-located facility, the case for action is clear. For these reasons, I respectfully recommend that the City Council approve the use of impact fee funds to purchase 1 Natoma Street. This will allow us to maintain essential police operations, respond to a growing community, and invest in long- term stability for our City.
FINANCIAL IMPACT
05/13/2025 Item No.18.
4 The purchase price of the building has been negotiated at $2,700,000 with an additional $1,000,000 needed for improvements. Staff estimates that population growth in the Folsom Plan Area, and related growth in Police Department staffing, accounts for 90% of the need for additional office space. Staff is requesting an appropriation of $370,000 in the Police Capital Improvement Fund (Fund 428) for 10% of the funds and an appropriation of $3,330,000 in the Folsom Plan Area Capital Improvement Fund (Fund 472) for 90% of the funds needed for the purchase of this building and related improvements, totaling $3,700,000. Both the Police Capital Improvement Fund and the Folsom Plan Area Capital Improvement Fund have sufficient funds available for this purchase and related building improvements.
ATTACHMENT
Resolution No. 11381- A Resolution Authorizing the City Manager to Execute an Agreement to Purchase 1 Natoma Street (APN 071-0310-014-0000) for Police Department Use.
Submitted,
Richard Hillman, Chief of Police
05/13/2025 Item No.18.
Resolution No 11381
RESOLUTION NO. 11381
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT TO PURCHASE 1 NATOMA STREET (APN 071-0310-014-0000) FOR
POLICE DEPARTMENT USE
WHEREAS, the City has elected to purchase an existing office building at 1 Natoma Street (APN 071-0310-014-0000) from JimBob Properties, LLC, for Police use; and
WHEREAS, the City Manager has negotiated a fair price of $2,700,000 for the purchase of the property; and
WHEREAS, the cost of improvements to tailor the office space for police needs, as well as safety-related additions and modifications is estimated to be $1,000,000; and
WHEREAS, the purchase of the building and related building improvements will be funded by the P olice Capital Improvement Fund (Fund 428) and the Folsom Plan Area Capital Improvement Fund (Fund 472); and
WHEREAS, sufficient funds are available in both the Police Capital Improvement Fund and the Folsom Plan Area Capital Improvement Fund for this purchase and related building improvements; and
WHEREAS, the agreement will be in a format acceptable to the City Attorney.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom hereby a uthorizes the City Manager to execute a purchas e agreement with JimBob Properties, LLC for the property located at 1 Natoma Street (APN 071-0310-014-0000) in the amount of $2,700,000.
BE IT FURTHER RESOLVED that the Finance Director is authorized to appropriate $2,700,000 for the purchase of the building and $1,000,000 for related improvements. The appropriation will be in the Police Capital Improvement Fund (Fund 428) in the amount of $ 370,000 and in the Folsom Plan Area Capital Improvement Fund (Fund 472) in the amount of $3,330,000.
APPROVED AND ADOPTED this 13th day of May 2025, by the following roll call vote:
AYES: Councilmembers(s)
NOES: Councilmembers(s)
ABSENT: Councilmembers(s)
ABSTAIN: Councilmembers(s)
___________________________
Sarah Aquino, MAYOR
ATTEST:
____________________________
Christa Freemantle, CITY CLERK
05/13/2025 Item No.18.
This page is intentionally left blank
to facilitate double-sided printing
and minimize paper use.
05/13/2025 Item No.18.
Folsom City Council
Staff Report
1 MEETING DATE:
5/13/2025
AGENDA SECTION:
New Business
SUBJECT: Resolution No. 11376 - A Resolution Authorizing the City Manager to Execute an Operational Agreement for Use of the Parcel 61 Electronic Readerboard Sign to be Located at the Southwest Corner of East Bidwell Street and Alder Creek Parkway
FROM: Community Development Department
RECOMMENDATION / CITY COUNCIL ACTION
Move to adopt Resolution No. 11376 – A Resolution Authorizing the City Manager to Execute an Operational Agreement for use of the Parcel 61 Electronic Readerboard Sign to be Located at the Southwest Corner of East Bidwell Street and Alder Creek Parkway.
BACKGROUND / ISSUE
On November 15, 2023, the Planning Commission recommended approval to the City Council of a request for approval of a Specific Plan Amendment to modify FPASP Table A.7 (Transportation, Communication, Infrastructure) in order to add “Electronic Readerboard Sign” as a conditionally permitted use in the Regional Commercial Planned Development District (SP-RC-PD). A condition of approval (Condition No. 7) placed on the aforementioned project required the owner/applicant to enter into an operation, maintenance, and advertising agreement (OA) with the City for the Parcel 61 Electronic Readerboard Sign prior to City Council consideration of the Folsom Plan Area Specific Plan (FPASP) Amendment for Electronic Readerboard Sign project.
Ultimately, the FPASP Amendmen t was approved by the City Council on January 9, 2024, without the approval of an OA (Resolution #11139). Condition No. 7 was not removed, however, and City staff and the applicant were directed to continue crafting an OA to bring back to the Council for consideration.
05/13/2025 Item No.19.
2 During development of the OA, the applicants also submitted a Conditional Use Permit application for the Electronic Readerboard Sign, which will be brought forward to the Planning Commission for consideration should the City Council authorize the City Manager to execute the proposed OA. Staff wishes to note that the preliminary design of the Electronic Readerboard Sign has been modified since it was shown to the City Council as part of the FPASP Specific Plan Amendment. The original preliminary design is included with this report as Attachment 3. The applicant stated that they have since learned that the original square design for the digital billboard does not fit standard billboard marketing materials and would be difficult to sell to poten tial advertisers. They will be proposing that the Planning Commission approve a rectangle design that is more standard for billboard marketing. The preliminary design package for the Digital Billboard Sign (Sign ‘B’ of the overall pylon sign package) is included with this report as Attachment 4 for reference.
The City, in conjunction with the Developer (Eagle Commercial Properties, LLC), has crafted an OA for use and operation of the Parcel 61 Electronic Readerboard Sign. The OA, which mirrors the operat ing agreement approved for the Palladio at Broad stone Electronic Readerboard Sign by the City Council in 2014 as well as the operating agreement approved for the electronic readerboard for the Folsom Lake Auto Mall , addresses advertisement scheduling, revenue sharing and payment, and third -party advertising content. In relation to advertising and scheduling, the Developer has agreed to allocate 10% of all display advertisements to the City of Folsom for public service messages. A sliding scale of between 50% and 40% of display advertisements will be reserved for Folsom Plan Area tenants and Folsom Plan Area event advertising, with the scale fluctuating depending on market conditions for Folsom Plan Area tenants, Folsom Plan Area events, and advertising sales. A sliding scale of between 40% and 50% of the display advertisements will be available for sale to , in order of priority, Folsom Based Businesses (defined in the OA as businesses located outside the Folsom Plan Area) and Folsom based events located outside the Folsom Plan Area and Third-Party Advertisers (defined in the OA as advertisers for businesses or events located outside Folsom) .
These percentages use a sliding scale that is dependent on market conditions for Folsom Plan Area tenants, Folsom Plan Area events, and advertising sales. For example, if 47% of advertisements are for Folsom Plan Area tenants and events then 53% can be for advertisements of events and businesses in Folsom outside of the Folsom Plan Area as well as for Third-Party Advertisers. The remaining 10% would be f or City of Folsom public service messages and amber alerts. These ad scheduling percentages are identical to those contained in the two existing electronic readerboard sign agreements in the City.
With respect to revenue sharing and payment, the Developer has agreed to contribute ten percent (10%) of the net revenue from the sale of advertising time on the Parcel 61 Electronic Readerboard Sign to the City. Net revenue is the gross a dvertising receipts for Folsom Based Businesses, Folsom based events located outside the Folsom Plan Area, and Third Party Advertisers, less advertising sales commissions, programming fees, and maintenance fees charged to the Developer for the operation of the Sign and any expenses incurred by the Developer in the direct marketing of advertising time to Folsom Based Businesses, Folsom based events located outside the Folsom Plan Area, and Third Party Advertisers in compliance with the
05/13/2025 Item No.19.
3 Agreement. It is impor tant to note that the City will have the right to review all books and records kept by the Developer and any advertising agencies contracted by the Developer in connection with the operation and services performed under the operating agreement.
In terms o f third-party advertising content (advertising content other than those for Folsom Plan Area Businesses, Folsom-Based Businesses, or City of Folsom public service messages), the Developer intends to focus on businesses complementary to the Folsom Plan Are a’s core business, such as retail brands, restaurants, shops, professional service providers, lending institutions, professional offices, and medical institutions. The Developer also agrees to focus on Folsom -based businesses wishing to advertise on the P arcel 61 Electronic Readerboard Sign, with advertisements featuring out -of-town businesses being infrequent enough to be considered incidental to the Folsom Plan Area’s core business and to the total advertising time available for the Electronic Readerboard Sign. It is important to recognize that the Electronic Readerboard Sign is a private sign and the City does not dict ate or control the advertising content. The Developer acknowledges that it controls the advertising content of the Electronic Readerboard Sign and further agrees not to advertise adult -related businesses or commercial cannabis-related products, as defined within the operating agreement.
ANALYSIS
As referenced earlier within this report, the Parcel 61 Electronic Readerboard Sign Operating Agreement is designed to mirror or copy all of the terms established for the Palladio at Broadstone Electronic Readerboard Sign Operating Agreement including advertising scheduling, revenue sharing and payment, and third-party advertising content. One of the key benefits to the City in terms of advertising scheduling is that ten percent (10%) of display advertisements will be allocated to the City for the purpose of providing public services messages. It should be noted that the Developer has agreed to display “Amber Alert” messages as requested by the City at any time of day or night at no cost to the City. Another important benefit to the City associated with advertising scheduling is that t he display advertisements will be focused on Folsom Plan Area tenants and Folsom-based businesses. As the City competes with other surrounding cities to retain and attract quality businesses, the availability of display advertising will be helpful to Folsom businesses and the local economy. Based on the aforementioned consideration, staff is supportive of the advertising scheduling outlined in the operating agreement.
As mentioned previously within this report, the Developer has agreed to contribute ten percent (10%) of the net revenue from the sale of advertising time on the Parcel 61 Electronic Readerboard Sign to the City. As noted earlier, the City will have access to all documentation associated with the display advertising on either quarterly or se mi-annual basis in order to confirm the net revenue figures. The obvious benefit to the City is that it will receive a continuous annual stream of income from the sale of display advertising on the Electronic Readerboard Sign. While the actual revenue figure is not known at this time, staff is projecting that the City will receive between $15,000 and $20,000 during the first full year of operation of the Electronic Readerboard Sign. Based on the aforementioned information, staff is in support of the revenue sharing and payment described in the operating agreement.
05/13/2025 Item No.19.
4 As described in the preceding section of this report, the Parcel 61 Electronic Readerboard Sign Operating Agreement addresses third-party advertising content. The most noteworthy aspect of the third-party advertising content is that the Developer is committed to focusing its efforts on businesses that correspond to the Folsom Plan Area core business including retail brands, restaurants, shops, professional service providers, lending institution s, professional offices, and medical institutions . The Developer has agreed to concentrate their efforts on Folsom - based businesses that might benefit from freeway -oriented display advertising. In addition, the Developer has agreed to the provision that advertising of adult -related business and/or products and cannabis will not be permitted on the Electronic Readerboard Sign. Based on the aforementioned factors, staff has determined that the operating agreement adequately addresses third-party advertising content.
FINANCIAL IMPACT
The Parcel 61 Electronic Readerboard Sign is expected to provide the City with approximately $15,000 to $20,000 in revenue on an annual basis. Although not directly quantifiable, there may be secondary economic benefits relative to increased property tax and sales tax associated with new business locating in the Folsom Plan Area partly because of the increased visibility and project identification the Electronic Readerboard Sign will provide.
ATTACHMENTS
1. Resolution No. 11376 - A Resolution Authorizing the City Manager to Execute an Operational Agreement for Use of the Parcel 61 Electronic Readerboard Sign to be Located at the Southwest Corner of East Bidwell Street and Alder Creek Parkway
2. Proposed Operating Agreement
3. Preliminary Electronic Readerboard Sign Design Package, Dated August 21, 2022
4. Preliminary Electronic Readerboard Sign Design Package, Dated April 4, 2025
Submitted,
PAM JOHNS
Community Development Director
05/13/2025 Item No.19.
Attachment 1
05/13/2025 Item No.19.
Resolution No. 11376
RESOLUTION NO. 11376
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN OPERATIONAL AGREEMENT FOR USE OF THE PARCEL 61 ELECTRONIC
READERBOARD SIGN TO BE LOCATED AT THE SOUTHWEST CORNER OF
EAST BIDWELL STREET AND ALDER CREEK PARKWAY
WHEREAS, the Developer is required to obtain a Conditional Use Permit from the Planning Commission to establish the final location and design of the Parcel 61 Electronic Readerboard Sign; and
WHEREAS, Condition No. 7 of the Specific Plan Amendment for Electronic Readerboard Sign project (SPPL23-00051) requires the Developer to enter into an operational agreement with the City; and
WHEREAS, City and Developer desire to enter into an operational agreement to allow and to define permissible third-party, off-site advertising on the Parcel 61 Electronic Readerboard Sign; and
WHEREAS, Developer offers to remit to the City 10% of the net revenue from the sale of advertising time on the Parcel 61 Electronic Readerboard Sign; and
WHEREAS, Developer voluntarily agrees to focus third-party advertising on those businesses complementary to the Folsom Plan Area core businesses, to proactively seek Folsom-based businesses wishing to advertise on the Parcel 61 Electronic Readerboard Sign, and to restrict adult -related businesses and cannabis-related products and businesses from advertising on the Parcel 61 Electronic Readerboard Sign;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom that the City Manager is authorized to execute an operational agreement for the use of an electronic readerboard sign located at the southwest corner of the intersection of East Bidwell Street and Alder Creek Parkway in a form acceptable to the City Attorney.
PASSED AND ADOPTED 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
05/13/2025 Item No.19.
Attachment 2
05/13/2025 Item No.19.
1 OPERATIONAL AGREEMENT
PARCEL 61 ELECTRONIC READERBOARD SIGN
This Operational Agreement, for the Parcel 61 Electronic Readerboa rd Sign (“Agreement”), for reference dated ______________________ __, 2025, is made by and between the City of Folsom, a Municipal Corporation, hereinafter referred to as "City" and Eagle Commercial Properties, LLC (“Developer”).
WITNESSETH:
WHEREAS, the Planning Commission of the City of Folsom recommended to the City Council approval of the Folsom Plan Area Specific Plan Amendment for Electronic Readerboard Sign project (“Sign Project”) on November 15, 2023; and
WHEREAS, the City Council of the City of Folsom approved the Sign Project on January 9, 2024; and
WHEREAS, the Sign Project is to be located on Assessor’s Parcel Number 072-3190-052, also known as Parcel 61A-1, Folsom, CA 95630 located at the southwest corner of East Bidwell Street and Alder Creek Parkway and depicted on Exhibit “A” and described on Exhibit “B” attached hereto; and
WHEREAS, Condition No. 7 of the conditions of approval for the Sign Project requires Developer to enter into an operation, maintenance, and advertising agreement with the City; and
WHEREAS, City and De veloper desire to enter into an operation, maintenance, and advertising agreement for the Parcel 61 Electronic Readerboard Sign (“Sign”) as well as define permissible off-site advertising on the Sign; and
WHEREAS, Developer intends to contract with a third-party sign operator with expertise
05/13/2025 Item No.19.
2 in the marketing and operation of the Sign (the “Sign Operator”); and
WHEREAS, Developer agrees to cause the Sign Operator to proactively seek Folsom - based businesses wishing to advertise on the Sign, and
WHEREAS, Developer agrees to cause the Sign Operator to focus off-site advertising on those businesses that are complementary to the Folsom Plan Area’s core businesses, and
WHEREAS, Developer agrees to restrict Adult-Related Businesses including Cannabis- Related Products and Businesses from advertising on the Sign; and
WHEREAS, the City will receive public benefits from the operation of the Sign.
NOW, THEREFORE, the parties hereto, in consideration of the mutual covenants, promises, and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and agreed, do hereby agree as follows:
I. Agreement
This Agreement is made with Developer, but all terms and conditions contained herein are fully applicable to any agents o r contractors of Developer, including but not limited to, any of Developer’s Sign Operators, successors and assigns, and any person or entity responsible for the development, sale, and display of messages on the Sign.
II. Advertisement Scheduling
A. Developer, through its Sign Operator, shall display advertisements on the Sign according to the following time allocations:
% Purpose
10 For City of Folsom public service messages and advertising, including Amber Alerts (1)
50-40 Reserved for Folsom Plan Area Businesses and Folsom Plan Area event advertising (2)
40-50
For off-site advertising, in order of priority for a) Folsom Based Businesses and Folsom based events located outside the Folsom Plan Area; and b) Third Parties Advertisers (2)
(1) Consistent with existing practices on other electronic signs within the City. (2) Sliding scale depending on market conditions for Folsom Plan Area businesses, Folsom Plan Area events, and advertising sales.
B. Definitions:
1. “Business” means activities , services, products and goods sold, conducted, marketed, promoted or rendered, or otherwise made available to the public.
2. “City Messaging” means messages by the City that advertise City organized
05/13/2025 Item No.19.
3 events, programs, and activities, and City -sponsored events , including such events that are sponsored but not organized or operated by the City.
3. “Folsom Plan Area Business” means existing or future business uses located within the Folsom Plan Area Specific Plan. Folsom Plan Area Businesses may also be referred to herein as “Folsom Plan Area Customers.”
4. “Folsom-Based Business” means existing or future business uses located within the City of Folsom but outside of the Folsom Plan Area Specific Plan. Folsom- Based Businesses may also be referred to herein as “ Folsom-Based Business Customers.”
5. “Third-Party Advertis ers” or “Offsite Advertisers” means off-site advertisers that are not a party to this Agreement and are neither Folsom Pl an Area Businesses nor Folsom-Based Businesses.
6. “Third-Party Advertising” or “Offsite Advertising” means off-site advertising by a Third -Party Advertiser and excludes Adult-related Businesses including Cannabis-Related Products and Businesses as further defined in Section IV.
D. Developer, through its Sign Operator , agrees to display "Amber Alert" messages as needed upon request by the City. The emergency messaging will take priority over the other messaging, as provided in the Outdoor Advertising Association of America (OAAA) standards. If any modification to the Sign is required to accommodate "Amber Alert" messages at any time of day or night, or if the Sign Operator charges Developer additional payments or fees of any nature associated with Amber Alert messages, such costs, if any, shall be the sole responsibility of Developer and shall not be factored into the revenue or expenses referenced in the following section. Amber Alert messages shall be counted towards the City’s 10% of time on the Sign for City Messaging.
III. Revenue Sharing and Payment
A. Developer will contribute to the City ten percent (10%) of the net revenue from the sale of advertising time on the Sign . Net revenue is the gross advertising receipts for Folsom Based Businesses, Folsom based events located outside the Folsom Plan Area, and Third Party Advertisers, less advertising sales commissions, programming fees, and maintenance fees charged to the Developer for the operation of the Sign and any expenses incurred by the Developer in the direct marketing of advertising time to Folsom Based Businesses, Folsom based events located outside the Folsom Plan Area, and Third Parties Advertisers in compliance with this Agreement.
B. Developer shall submit advertising documentation and payment to City not more frequently than quarterly and not less frequently than semi-annually for City’s share of advertising revenue for the preceding period. Together with such payments Developer shall submit documentation describing the advertising time share displayed, the total revenue received, and all
05/13/2025 Item No.19.
4 other associated costs, including advertising sales commissions and programming fees, maintenance fees paid in the operation of the Sign, and expenses incurred in direct marketing of advertising time on the Sign.
C. The City shall have the right to review all books and records kept by Developer and any Sign Operator or other agent contracted with Developer in connection with the operation and services performed under this Agreement.
D. Developer shall transmit documentation and payment required by this Agreement to City as follows:
Department of Finance, Revenue Division
City of Folsom
50 Natoma Street
Folsom, California 95630
IV. Third Party Advertising Content
A. “Third-Party Advertising” has the meaning assigned to it under Section II.
Developer intends to focus Third-Party Advertising on those businesses complementary to the Folsom Plan Area’s core business, including, but not limited to, retail brands, restaurants, shops, professional service providers and professional offices, lending institutions, medical institutions, and other such businesses. Developer will proactively seek Folsom Based Businesses wishing to advertise on the Sign. Advertisements featuring out-of-town businesses and/or Third Party Advertisers should be infrequent enough to be considered incidental to the total advertising time capacity of the Sign.
B. The City and Developer acknowledge that the Sign is a private sign, and that the City does not dictate nor control the advertising content there on. Developer agrees that it controls the advertising content on its private sign and further agrees, as additional consideration for this Agreement, not to advertise Adult-Related Businesses as defined in Folsom Municipal Code Section 17.24.010 or Commercial Cannabis-Related Products and Businesses (also known as commercial nonmedical marijuana uses) as defined in Folsom Municipal Code Section
17.113.020.A. on the Sign.
V. Conditional Use Permit
In addition to the terms contained herein, Developer is subject to all terms in the Conditional Use Permit ( “CUP”) for operation of the Sign, and all future amendment s thereto.
Nothing in this Agreement shall be construed to limit the power, right, and authority of City and its governing bodies from granting, denying, or modifying the terms of the CUP or revoking or conditioning the CUP as otherwise permissible by law following the procedures in City Code and state law.
05/13/2025 Item No.19.
5 VI. Severability
If any provision of this Agreement is found illegal or unenforceable, the legality and enforceability of the other provisions of this Agreement will not be affected. Notwithstanding the foregoing, City and Developer expressly agree that if any provision of this Agreement is found illegal or unenforceable, City and Developer will negotiate a replacement section within a reasonable time of a final ruling declaring the provision illegal or unenforceable. In the event that the parties are unable to reach agreement on a replacement section within that time, the City may terminate this Agreement immediately.
VII. Term and Termination
City and Developer intend to continue this Agreement in perpetuity, commencing upon digital activation of the Sign, as long as the City allows and as long as Developer includes, advertising by Folsom Based Businesses, and Folsom based events located outside the Folsom Plan Area, and Third Party Advertisers on the Sign.
Nothing in this Agreement shall be construed to limit the power, right, and authority of the City from modifying the Folsom Plan Area Specific Plan relating to advertising by Folsom Based Businesses, Folsom based events located outside the Folsom Plan Area, or Third Party Advertisers on the Sign in any way, including but not limited to allowing or disallowing such advertising.
In the event that the City should exercise its power, right, and authority to modify the Folsom Plan Area Specific Plan in any manner that would restrict the ability to display advertising by Folsom Based Businesses, Folsom based events located outside the Folsom Plan Area, or Third Party Advertisers on the Sign, the City may immediately terminate this Agreement. This provision is to be broadly construed to assure the City retains all its power, right, and authority to enact ordinances and to terminate this Agreement without any risk of damages or liability to the Developer.
In the event this agreement is terminated, Developer expressly waives any claims or causes of action for damages of any kind associated with termination of this Agreement.
VIII. Good Faith Efforts and Dispute Resolution
The City and Developer will create a relationship committee that will meet no less than twice per year in order to review the operation of the Sign. Both parties will work in good faith to resolve any conflicts regarding this Agreement, the Sign operation and advertising content , including reasonable opportunity to cure any asserted default by either party.
IX. Governing Law and Venue
This Agreement and all matters relating to it shall be governed by the laws of the State of California. Any action brought relating to this Agreement shall be held exclusively in a state court in the County of Sacramento.
05/13/2025 Item No.19.
6 X. Amendments
This Agreement shall not be amended, modified, or otherwise changed u nless in writing and signed by both parties hereto.
XI. Waiver
In the event that either party shall at any time or times waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or any other covenant, condition or obligation. Wai ver shall not be deemed effective until and unless signed by the waiving party.
XII. Entire Agreement
The Agreement constitutes the entire understanding and agreement of the parties and supersedes all previous and/or contemporaneous understanding or agreement between the parties with respect to all or any part of the subject matter hereof.
XII. Counterpart Execution
This Agreement may be executed in several counterparts, each of which shall be fully effective as an original and all of which toget her shall constitute one and the same instrument.
Facsimile or e-mailed PDF signatures to this Agreement shall be binding upon the Parties.
END OF TEXT -SIGNATURE PAGE FOLLOWS
05/13/2025 Item No.19.
7 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed.
DEVELOPER:
Eagle Commercial Properties, LLC.
(If a corporation, must be signed by two officers
of the corporation per Corporations Code
section 313.)
_______________________________________
Date
______________________________________
Tax I.D. Number
_______________________________________
Signature
______________________________________
Signature
Jim Galovan
Print Name
______________________________________
Print Name
________________________________________
Title
______________________________________
Title
CITY OF FOLSOM, A Municipal Corporation:
________________________________________
Date
______________________________________
Bryan Whitemyer, City Manager
ATTEST:
________________________________________
Christa Freemantle, City Clerk Date
FUNDING AVAILABLE:
______________________________________
Stacey Tamagni, Finance Director Date
ORIGINAL APPROVED AS TO CONTENT:
________________________________________
Pam Johns, Community Development Date
Director
ORIGINAL APPROVED AS TO FORM:
______________________________________
Steven Wang, City Attorney Date
05/13/2025 Item No.19.
8 NOTICE: SIGNATURE(S) ON BEHALF OF DEVELOPER MUST BE NOTARIZED.
A certificate of acknowledgment in accordance with the provisions of California Civil Code section 1189 must be attached for each person executing this agreement on behalf of consultant.
This section provides, at part (b): "Any certificate of acknowledgment taken in another place shall be sufficient in this state if it is taken in accordance with the laws of the place where the acknowledgment is made.
05/13/2025 Item No.19.
9 EXHIBIT A
05/13/2025 Item No.19.
10 EXHIBIT B
05/13/2025 Item No.19.
Attachment 3
05/13/2025 Item No.19.
05/13/2025 Item No.19.
05/13/2025 Item No.19.
Attachment 4
05/13/2025 Item No.19.
1051 46th Avenue
Oakland, Ca 94601
T. 510.533.7693
F. 510.533.0815
www.arrowsigncompany.com
Date:
Sales:
20676
Design:
File Name/Location:
Date
Description
Rev.
6-15-21
Tom Salmon
Charlie Stroud
2021/F/Folsom Ranch 2
Folsom Ranch
Folsom, Ca
Customer Approval
This drawing is a representation of colors and may not
accurately depict final color of product. Refer to paint swatch or material samples for color reference.
ALL RIGHTS RESERVED
This is an original unpublished drawing prepared for you by Arrow Sign Co. in a sign program designed for your business.
It is not to be shown to anyone outside of your organization nor to be reproduced, copied or exhibited in any fashion.
Project
Sheet 2
11-17-22
Revise layout
H
11-30-23
Add sign area
I
8-2-24
Revise size of message center
J
8-19-24
Revise message
K
ITEM
DESCRIPTION
VENDOR
SPECIFICATION
Structure
Aluminum
Matthews
Dark Gray, color TBD
Main Background
HPL
Parklex
Cladding, color TBD
Tenant Cabinets
Aluminum
Matthews
Dark Gray, color TBD
Tenant Copy
1/2" push-thru
By others
Logo
2" deep aluminum
Dark Gray, color TBD
Matthews
Logo Illumination
LED
Sloan
Prism, Warm White #3500
“FOLSOM RANCH”
2" deep fabricated aluminum
Matthews
White #282-202,satin
“FOLSOM RANCH” Illum.
Flood fixtures
By others
EMC
LED
16mm full color display
Base
Architectural stone with cap
By others
El Dorado Stone
Watchfire
6'0"
8'4"
8' 0"
6' 0"
65' overall height
15' 4"
11' 8"
48' 0"
3' 9"
9"
9"
14' 0"
6' 0"
SIGN ELEVATION
SCALE: 1/8" = 1'-0"
B
8' 0" x 8' 0" = 64 sq. ft.
3' 6" x 12' 3" = 42.9 sq. ft.
Total Sign Area: 778.9 sq. ft.
6' 0" x 15' 4" = 92 sq. ft.
92 sq. ft. x 3 = 276 sq. ft.
14' 0" x 48' 0" = 672 sq. ft.
9-30-23
Revise design, Stone by Arrow
L
10-11-24
Add tenant cabinet
M
4-4-25
Change LED image
N
05/13/2025 Item No.19.
1051 46th Avenue
Oakland, Ca 94601
T. 510.533.7693
F. 510.533.0815
www.arrowsigncompany.com
Date:
Sales:
20676
Design:
File Name/Location:
Date
Description
Rev.
6-15-21
Tom Salmon
Charlie Stroud
2021/F/Folsom Ranch 2
Folsom Ranch
Folsom, Ca
Customer Approval
This drawing is a representation of colors and may not
accurately depict final color of product. Refer to paint swatch or material samples for color reference.
ALL RIGHTS RESERVED
This is an original unpublished drawing prepared for you by Arrow Sign Co. in a sign program designed for your business.
It is not to be shown to anyone outside of your organization nor to be reproduced, copied or exhibited in any fashion.
Project
PYLON SIGN ELEVATION
SCALE: 1/8" = 1'-0"
B
Sheet 2.1
11-17-22
Revise layout
A
9-30-24
Revise design
B
10-11-24
Revise design
C
4-4-25
Change LED image
D
05/13/2025 Item No.19.
This page is intentionally left blank
to facilitate double-sided printing
and minimize paper use.
05/13/2025 Item No.19.
Folsom City Council
Staff Report
1 MEETING DATE:
5/13/2025
AGENDA SECTION:
New Business
SUBJECT: Resolution No. 11370 - A Resolution Replacing Resolution No. 6451 and Establishing City Council Meeting Recesses in July, November, and December
FROM: City Manager's Office
RECOMMENDATION / CITY COUNCIL ACTION
Staff recommends that the City Council approve Resolution No. 11370 - A Resolution Replacing Resolution No. 6451 and Establishing City Council Meeting Recesses in July, November, and December
BACKGROUND / ISSUE
In 2001, the City Council established regular meeting recesses during the first half of August and the second half of December. These recesses were intended to align with the school summer break and the December holiday season, respectively, providing time for families and community engagement during these periods.
ANALYSIS
Since 2001, the Folsom Cordova Unified School District’s academic calendar has shifted.
Currently, the school year begins during the first week of August - specifically, on August 7 in 2025. Because the Council’s summer recess was originally intended to coincide with summer break for families, it is reasonable to adjust the recess to reflect the updated school schedule. Staff recommends moving the summer recess to the second half of July to better align with the current academic calendar.
Additionally, under the Council’s regular meeting schedule - held on the second and fourth Tuesdays of each month - the second November meeting typically coincides with
05/13/2025 Item No.20.
2 Thanksgiving week. Historically, this meeting is frequently cancelled due to holiday travel and family commitments. To provide predictability and acknowledge this pattern, staff recommends formally establishing the second half of November as a regular recess period.
No changes are proposed to the existing recess during the second half of December, which continues to align with the winter holiday season.
It’s important to note that while these recesses are part of the regular calendar, the City Council maintains the flexibility to call special meetings if any time-sensitive matters arise that require immediate action.
POLICY / RULE
The City of Folsom Charter vests the City Council with the powers necessary for the performance of all duties and obligations (§ 2.02).
FINANCIAL IMPACT
The modification of City Council recesses will not result in a financial impact.
ATTACHMENTS
1. Resolution No. 11370 - A Resolution Replacing Resolution No. 6451 and Establishing City Council Meeting Recesses in July, November, and December
2. Resolution No. 6451 – A Resolution Establishing City Council Meeting Recesses in August and December
Submitted,
Bryan Whitemyer
City Manager
05/13/2025 Item No.20.
Attachment 1
05/13/2025 Item No.20.
Resolution No. 11370
RESOLUTION NO. 11370
A RESOLUTION REPLACING RESOLUTION NO. 6451 AND ESTABLISHING
CITY COUNCIL MEETING RECESSES IN JULY, NOVEMBER, AND DECEMBER
WHEREAS, in 2001, the City Council adopted Resolution No. 6451 establishing regular meeting recesses during the first half of August and the second half of December to coincide with the school summer break and the winter holiday season, respectively; and
WHEREAS, the purpose of these recesses is to recognize the importance of time for families and community engagement during key periods of the year; and
WHEREAS, since the adoption of Resolution No. 6451, the Folsom Cordova Unified School District’s academic calendar has changed, and school now begins during the first week of August; and
WHEREAS, the City Council’s summer recess was originally intended to align with the school summer break, and in light of the updated school calendar, it is appropriate to adjust the recess period to the second half of July to better reflect the current timing of summer vacation; and
WHEREAS, the City Council regularly meets on the second and fourth Tuesdays of each month, and the second November meeting often falls during Thanksgiving week; and
WHEREAS, due to the high volume of travel and family commitments during Thanksgiving week, this meeting is frequently cancelled, and establishing a recess during the second half of November provides clarity and consistency in the meeting schedule; and
WHEREAS, the existing December recess during the second half of the month remains appropriate and aligned with the winter holiday season, and no changes to that period are proposed; and
WHEREAS, the City Council retains the authority to call a special meeting at any time should a time-sensitive matter require immediate attention, regardless of the established recess periods:
05/13/2025 Item No.20.
Resolution No. 11370
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom hereby replaces Resolution No. 6451 and establishes the following regular City Council meeting recess periods:
Second Half of July – to align with the summer school break.
Second Half of November – to accommodate the Thanksgiving holiday period.
Second Half of December – to coincide with the winter holiday season.
PASSED AND ADOPTED 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
05/13/2025 Item No.20.
Attachment 2
05/13/2025 Item No.20.
05/13/2025 Item No.20.
This page is intentionally left blank
to facilitate double-sided printing
and minimize paper use.
05/13/2025 Item No.20.
Folsom City Council
Staff Report
1 MEETING DATE:
5/13/2025
AGENDA SECTION:
New Business
SUBJECT: Resolution 11379 – A Resolution Authorizing the Public Works Department to Implement a Flashing Yellow Arrows Trial
Project
FROM: Public Works Department
RECOMMENDATION / CITY COUNCIL ACTION
The Public Works Department recommends that the City Council pass and adopt Resolution 11379 – A Resolution Authorizing the Public Works Department to Implement a Flashing Yellow Arrows Trial Project.
BACKGROUND / ISSUE
The City of Folsom currently uses protected -only left -turn phasing at all signalized intersections (with the exception of the intersection of Sutter Street and Riley Street). Flashing yellow arrows have been adopted in many jurisdictions across California and the United States as a method to improve traffic efficiency, reduce congestion, and enhance driver understanding of left -turn movements. The California Manual on Uniform Traffic Control Devices (CAMUTCD) includes FYAs as an approved left -turn phasing o ption, citing safety and operational benefits. The four-section signal head containing a n FYA is an approved Federal Highway Administration (FHWA) traffic control device and is identified in the California Department of Motor Vehicles (CA DMV) Drivers Hand book Section 7: Laws and Rules of the Road, Subsection Traffic.
Implementing FYAs offers several potential benefits. One major advantage is the improvement of traffic flow, as FYAs allow left turns to proceed during sufficient gaps in opposing traffic, thereby reducing unnecessary delays. This, in turn, leads to reduced vehicle idling time, lowering fuel consumption and emissions. Studies show that protected/permissive left turns (PPLTs) can reduce vehicle emissions by 9% to 12% and significantly decrease intersection
05/13/2025 Item No.21.
2 delays. Additionally, multiple reports indicate strong driver acceptance and a desire for expanded use of PPLTs. Another important benefit is standardization with other local agencies.
Many jurisdictions, including neighboring cities, have alr eady implemented FYAs, creating regional consistency for drivers. For example, the City of Roseville and the City of Elk Grove currently use FYA indications for PPLTs, and Sacramento County recently approved a pilot project to install such indications on Arden Way at the intersections of Professional Drive and Morse Avenue.
City of Folsom staff has developed evaluation criteria to identify locations that are candidates for PPLTs using FYAs. These criteria include factors such as accident history, opposing traffic speed, sight distance, traffic volumes, and intersection lane configuration. In considering implementation, staff recognizes that not all intersections are suitable for FYAs and will need to carefully assess traffic volumes, sight distance, crash h istory, and pedestrian activity. An engineering study would be conducted to evaluate the safety and feasibility of installing FYAs at selected locations. In addition, a public outreach campaign would be necessary to educate drivers about the new signal ope rations and ensure a smooth transition. A copy of the site selection criteria is attached as Attachment 3.
If approved by City Council , staff will perform extensive public outreach and education, including mailing out pamphlets to the surrounding neighbor hoods and posting the pamphlet online, as well as including an educational video on the City’s website. Additionally, staff will work with local news stations to inform the public prior to activation, which is anticipated in late 2025 /early 2026 . If the pilot program is successful, staff will propose installing more PPLTs with FYA indicators at other locations around the city. Staff will report their findings to City Council after the trial is complete for additional discussion.
RECOMMENDATION
Staff requests direction from the City Council on whether to proceed with the implementation of an FYAs trial project in the City of Folsom. If directed to proceed, staff will conduct an engineering analysis, identify candidate intersections, develop refined cost estimates for implementation, and install FYA at the top intersections. Findings and recommendations from the trial will be presented to the Council at a future meeting for further discussion.
POLICY / RULE
As part of the proposed FYA trial project, staff has developed a policy framework to guide the selection, implementation, and evaluation of candidate locations. The policy establishes intersection selection criteria based on traffic volumes, crash history, opposing traffic speeds, sight distanc e, and pedestrian activity. Prior to installation, an engineering study will be conducted at each proposed location to ensure that implementation of FYAs can be accomplished safely and in accordance with accepted traffic engineering practices. The policy also requires a public outreach and education campaign to inform residents and motorists about the meaning and operation of the FYA signal indications. Funding considerations are incorporated into the policy, with staff directed to pursue grant opportunitie s and available
05/13/2025 Item No.21.
3 funding sources to offset costs associated with signal modifications, hardware procurement, and public education efforts. The trial project will be monitored throughout its duration, with performance metrics such as traffic delay reductions , crash history evaluations, and public feedback used to assess effectiveness. Based on the evaluation results, staff will return to Council with recommendations regarding the broader adoption of F YAs within the City of Folsom.
FINANCIAL IMPACT
The cost of this trial project implementation will be accommodated within the department’s existing annual operating budget. No additional funding is required at this time, as the necessary expenditures will be managed through current resources and planned budget allocations. Future projects, if approved, will be evaluated on a case-by-case basis and funded through applicable capital improvement plan projects as appropriate.
ENVIRONMENTAL REVIEW
The proposed FYA trial project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15301, Existing Facilities.
The project involves minor alterations to existing public facilities, specifically the modification of existing traffic signal operat ions, with no expansion of use beyond that currently existing.
The installation of FYA indications will occur within existing roadway rights-of-way and will not result in any significant environmental impacts. As such, no additional environmental documentation is required for the implementation of the FYA trial project.
ATTACHMENTS
1. Resolution 11379 – A Resolution Authorizing the Public Works Department to Implement a Flashing Yellow Arrows Trial Project
2. Traffic Safety Committee Meeting Minutes – March 27, 2025
3. Site Selection Form
4. Preliminary Flashing Yellow Arrow Potential Locations
Submitted,
Mark Rackovan, Public Works Director
05/13/2025 Item No.21.
Attachment 1
05/13/2025 Item No.21.
Resolution No. 11379
RESOLUTION NO. 11379
A RESOLUTION AUTHORIZING THE PUBLIC WORKS DEPARTMENT TO
IMPLEMENT A FLASHING YELLOW ARROWS TRIAL PROJECT
WHEREAS, the use of a protected/permitted left turn operation with a four-section signal head containing a flashing yellow arrow (FYA) is being increasingly utilized throughout the United States, including California; and
WHEREAS, the four-section signal head containing a flashing yellow arrow indicator is an approved Federal Highway Administration (FHWA) traffic control device and is identified in the California Department of Motor Vehicles (CA DMV) Drivers Handbook Section 7: Laws and Rules of the Road, Subsection Traffic; and
WHEREAS, the City of Folsom desires to build on the expanded use of FYA indicators throughout the Sacramento region to improve traffic flow, reduce emissions, and improve drivers’ experiences; and
WHEREAS, the City of Folsom desires to obtain authority to install FYA indicators as part of a pilot project; and
WHEREAS, the City of Folsom has developed certain criteria for determining which locations are candidates for installation of FYA indicators; and
WHEREAS, the City of Folsom will develop informative materials to be used in public outreach and educational efforts regarding FYA indicators; and
WHEREAS, the cost of this project will be accommodated within the department’s existing annual operating budget; and
WHEREAS, the trial project results will be reported back to the City Council for further discussion.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the Public Works Department to implement a Flashing Yellow Arrow Trial Project.
PASSED AND ADOPTED this 13th day of May 2025, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
05/13/2025 Item No.21.
Resolution No. 11379
_________________________________
Sarah Aquino, MAYOR
ATTEST:
____________________________________
Christa Freemantle, CITY CLERK
05/13/2025 Item No.21.
Attachment 2
05/13/2025 Item No.21.
1 Traffic Safety Committee Meeting Minutes
City Council Chambers | 50 Natoma Street, Folsom CA 95630 March 27, 2025
4:00 PM
Meeting minutes contain an action summary. A video recording of the meeting in its entirety can be found on the City of Folsom website on the Traffic Safety Committee webpage.
1. CALL TO ORDER
Chair Brausch called the meeting to order at 4:02 p.m.
2. ROLL CALL:
PRESENT: Z. Bosch, J. Brausch, R. Cogil, T. Galovich, K. Goddard, M. McGee (arrived at 4:07 p.m.)
ABSENT: M. Washburn
3. MINUTES
Approval of the Minutes of the February 27, 2025, meeting. Edits to the minutes were proposed by a resident regarding item 5c, Speeding and cut through traffic concerns on Foxridge Drive and Simmons Way.
Goddard motioned to accept the minutes with edits.
Cogil seconded the motion.
Motion carried with the following vote:
AYES: Bosch, Brausch, Cogil, Galovich, Goddard, McGee
ABSTAIN: None
ABSENT: Washburn
4. BUSINESS FROM THE FLOOR/GOOD OF THE ORDER
Public comment made by Patrick Terry. He is requesting consideration of 3-way stop signs and crosswalks at the intersection of Riley St reet and Teceira Way. The concern is for drivers not stopping on Riley Street. An additional concern he stated is the overflow parking on Teceira Way on the weekends, with children and families crossing Riley Street to Livermore Park.
5. ACTION/DISCUSSION ITEMS
a. Pedestrian Scramble at Oak Avenue and North Lexington Drive/Creekside Drive
05/13/2025 Item No.21.
2 Public Comment: Elisha Kampsen (for Erin Howard)
The Traffic Safety Committee did not recommend a Leading Pedestrian Interval (LPI). The Committee recommends exploring options to restrict movement on North Lexington, starting with extending the center median closer to the interstation with bollards and “Do Not Cross” signage. The Committee additionally recommends that the Public Works Department investigate inexpensive tools to force pedestrian movement further down North Lexington.
Cogil proposed the motion.
Goddard seconded the motion.
Motion carried with the following vote:
AYES: Bosch, Brausch, Cogil, Galovich, Goddard, McGee
ABSTAIN: None
ABSENT: Washburn
b. Analysis of midblock crosswalk near the intersection of East Bidwell Street and Market Street
The Traffic Safety Committee recommends that the City consider including a future project at the identified location along East Bidwell Street if or when it is recognized as a priority through future planning documents, such as the Active Transportation Plan (ATP) and/or the Local Roadway Safety Plan (LRSP) , or in conjunction with future development of the Central Business District.
Additionally, the Committee recommends a feasibility study of pedestrian crossing signage to direct pedestrians to cross at the Glenn Drive and Coloma Steet crosswalks.
McGee proposed the motion.
Bosch seconded the motion.
Motion carried with the following vote:
AYES: Bosch, Brausch, Cogil, Galovich, Goddard, McGee
ABSTAIN: None
ABSENT: Washburn
c. City staff request for Traffic Safety Committee recommendation to establish Flashing Yellow Arrow Pilot Program
Public Comment: Scott Wilson
The Traffic Safety Committee approves the implementation of the Flashing Yellow Arrow Pilot Program and provides a recommendation for City Council consideration.
Cogil proposed the motion.
Goddard seconded the motion.
Motion carried with the following vote:
AYES: Bosch, Brausch, Cogil, Galovich, Goddard, McGee
ABSTAIN: None
ABSENT: Washburn
6. INFORMATIONAL ITEMS
a. Traffic Safety Committee action item updates
05/13/2025 Item No.21.
3 Bosch provided an update on each item on the chart included in the packet. Bosch recommends moving the Natoma Station Drive/Ashchat - School Safety & Neighborhood Issues item to a future meeting agenda. Brausch agreed to add it to a future agenda.
b. Upcoming Traffic Safety Committee items
• Oak Avenue and Vista Oak Drive – Resident Request For All-Way Stop Sign Control. • Mangini & Wildflower and Mangini & Rock Hearth - Resident Request For All-Way Stop Sign Control.
• Darrington Drive - Resident Request for Traffic Calming • Westwood Drive and Needlegrass – Resident Request for Traffic Calming on Westwood and/or Intersection Control.
7. ADJOURNMENT
Meeting adjourned at 5:38 p.m.
05/13/2025 Item No.21.
Attachment 3
05/13/2025 Item No.21.
CITY OF FOLSOM – FLASHING YELLOW ARROW
(FYA) SITE SELECTION FORM
General Information
Intersection Name: _____________________________________________________________________ Signal Intersection Number: ______________________________________________________________ Date of Evaluation: _____________________________________________________________________ Evaluated By: _________________________________________________________________________ Existing Conditions
Posted Speed Limit (Opposing Approach): ______ mph, ________85th percentile speed (if available) Number of Left Turn Lanes: [ ] One [ ] Two (Dual Left) Number of Opposing Lanes (Through + Right): ______
Left Turn Bay Length(s): __________ ft, _____________ ft Sight Distance (meets Intersection Sight Distance standards per AASHTO Green Book): [ ] Yes [ ] No _________________________Calculated (ft) , ______________________ Minimum Sight Distance (ft).
Pedestrian Crossing Across Turn Path: [ ] Yes [ ] No
Volume and Cross-Product
Left-Turn Volume (Peak Hour): _______ vph
Opposing Through Volume (Peak Hour): _______ vph
Vehicle Cross-Product: ____________ (Left-Turn Volume × Opposing Volume) Meets Thresholds?
[ ] One opposing lane and cross-product < 80,000
[ ] Two opposing lanes and cross-product < 100,000
05/13/2025 Item No.21.
Collision History
Left Turn Collisions (Average per Year): _______
Meets Collision Criteria (≤ 5 per year)? [ ] Yes [ ] No Signal and Geometric Suitability
[ ] Adequate sight distance
[ ] Acceptable opposing speeds (≤ 45 mph)
[ ] Traffic cabinet supports FYA phasing
[ ] Clearance intervals are appropriate
[ ] Mast arm space for 4-section FYA head
[ ] Pedestrian signal timing coordination
Engineering Recommendation
Recommended Action: [ ] Proceed with FYA [ ] Do Not Recommend [ ] Monitor / Further Study Comments:
__________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ VII. Approvals
Traffic Engineer Review: Name: ______________ | Signature: _______________ | Date: __________ Public Works Director Approval: Name: ________ | Signature: _______________ | Date: __________
05/13/2025 Item No.21.
Attachment 4
05/13/2025 Item No.21.
05/13/2025 Item No.21.
This page is intentionally left blank
to facilitate double-sided printing
and minimize paper use.
05/13/2025 Item No.21.