06/23/2026 Item No.7.
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $8 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 10
Capability Can be launched via a 12 gauge shotgun
Life Span 5 years
Manufacturer's Description The Ferret® 12-Gauge Liquid OC non pyrotechnical properties also eliminate the fire hazard common with other products. The Ferret round is available with either liquid or powder carriers for the agent. These munitions are a 2.5 in. 12-Gauge round deploying .015 oz. of active agent.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $10 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 10
Capability Can be launched via a 12 gauge shotgun
Life Span 5 years
Manufacturer's Description
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $10 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Defense Technology Ferret 12-gauge liquid barricade round, OC 3010 Defense Technology 12-gauge barricade projectile, CS 23
06/23/2026 Item No.7.
Description Tear Gas
Quantity 7
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Manufacturer's Description Designed for indoor use, this grenade contains no CFCs, is not a fire hazard and requires minimal decontamination by comparison to smoke, powders, or liquids. The Aerosol Grenade is most commonly used in tactical situations by Law Enforcement and Corrections and was designed with indoor operations in mind when a non fireproducing delivery system is desired. It is most effective when used in confined areas and close to the target area. Used to minimize the risks to all parties through pain compliance, temporary discomfort and/or incapacitation of potentially violent or dangerous subjects. The Aerosol Grenade is ideal for cell extractions or barricade situations where the use of pyrotechnic, powder, or liquid devices is not practical or desired. The OC and CS combination provide sufficient effects in confined areas of up to 1,500 square feet. The Aerosol Grenade is not recommended for outdoor use.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 7
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Manufacturer's Description The Spede-Heat™ OC Grenade is a high volume, continuous burn it expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the canister, three on the side and one on the bottom. This launchable grenade is 6.12 in. by 2.62 in. and holds approximately 1.09 oz. of active agent.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $ $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Defense Technology Aerosol OC/CS grenade 1050
Defense Technology Spede-Heat continuous discharge chemical grenade, OC 1070
06/23/2026 Item No.7.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 2
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Manufacturer's Description The Riot Control OC Grenade is designed specifically for outdoor use in crowd control situations with a high volume continuous burn that expels its payload in approximately 20-40 seconds through four gas ports located on the top of the canister. This grenade can be used to conceal tactical movement or to route a crowd.
The volume of smoke and agent is vast and obtrusive. This launchable grenade is 6.0 in. by 2.35 in. and holds approximately 0.88 oz. of active agent.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 2
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Manufacturer's Description The Instantaneous Blast CS Grenade is designed for indoor or outdoor use; this grenade’s powder is expelled upon initiation of a small internal detonator that has sufficient force to split the canister at six machined groves on the outside surface. this device is well suited for affecting numerous subjects grouped within a contained portion of a prison yard or area, using wind to the advantage. This 6.12 in. by 2.62 in. grenade will deliver approximately 1.5 oz. of active agent.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Defense Technology Riot control continuous discharge grenade, OC 1080 Defense Technology Instantaneous blast CS grenade 1042
06/23/2026 Item No.7.
Description Tear Gas
Quantity 7
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Manufacturer's Description The Spede-Heat™ CS Grenade is a high volume, continuous burn it expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the canister, three on the side and one on the bottom. This launchable grenade is 6.12 in. by 2.62 in. and holds approximately 2.9 oz. of active agent.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 10
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Manufacturer's Description The design of the Tri-Chamber Flameless CS Grenade allows the contents to burn within an internal can and disperse the agent safely with reduced risk of fire. The grenade is designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. This grenade will deliver approximately .70 oz. of agent during its 20-25 seconds burn time. The Tri-Chamber Flameless Grenade can be used in crowd control as well as tactical deployment situations by Law Enforcement and Corrections, but was designed with the barricade situation in mind. Its applications in tactical situations are primarily to detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. The Tri-Chamber Flameless Grenade provides the option of delivering a pyrotechnic chemical device indoors, maximizing the chemicals’ effectiveness via heat and vaporization, while minimizing or negating the chance of fire to the structure.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Defense Technology Spede-Heat continuous discharge chemical grenade, CS 1072 Defense Technology Flameless tri-chamber CS grenade 1032
06/23/2026 Item No.7.
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 4
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Manufacturer's Description Designed for law enforcement and corrections, the OC Flameless Tri-Chamber Pyrotechnic Grenade combines the effectiveness of Oleoresin Capsicum (OC) as an incapacitating agent with the flexible delivery methods, range and area coverage of pyrotechnic munitions. The OC Flameless Tri-Chamber Grenade can be used in crowd control, or barricade situations, as a less lethal solution to incapacitate subjects through temporary respiratory discomfort, while reducing or negating the chance of fire to structures. The Tri-Chamber Flameless Grenade can be used in crowd control as well as tactical deployment situations by Law Enforcement and Corrections, but was designed with the barricade situation in mind. Its applications in tactical situations are primarily to detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. The Tri-Chamber Flameless Grenade provides the option of delivering a pyrotechnic chemical device indoors, maximizing the chemicals’ effectiveness via heat and vaporization, while minimizing or negating the chance of fire to the structure.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 10
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Defense Technology Riot control continuous discharge grenade, CS 1082 Defense Technology Flameless tri-chamber OC grenade 1030
06/23/2026 Item No.7.
Manufacturer's Description The Riot Control CS Grenade is designed specifically for outdoor use in crowd control situations with a high volume continuous burn that expels its payload in approximately 20-40 seconds through four gas ports located on the top of the canister. This grenade can be used to conceal tactical movement or to route a crowd.
The volume of smoke and agent is vast and obtrusive. This launchable grenade is 6.0 in. by 2.35 in. and holds approximately 2.7 oz. of active agent.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 12
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Manufacturer's Description The Pocket Tactical CS Grenade is small, and lightweight. The 0.9 oz. of active agent will burn approximately 20-40 seconds. At 4.75 in. by 1.4 inches in size, it easily fits in most tactical pouches. This is a launchable grenade; however it is normally used as a signaling or covering device. Though this device is slightly over four inches in length, it produces a smoke cloud so fast it appears to be an enveloping screen produced by a full size tactical grenade.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Tear Gas
Quantity 15
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Defense Technology Pocket tactical grenade, CS 1016
Defense Technology Pocket tactical grenade, OC 1019
06/23/2026 Item No.7.
Manufacturer's Description The Pocket Tactical OC Grenade is a quick burning, reduced volume, continuous discharge grenade. Pelletized chemical agent is discharged through one (1) gas port located on the bottom of the canister. The Pocket Tactical Grenade is a small, lightweight, easily carried device that provides a medium volume of chemical agent or smoke for certain situations. It was designed with the tactical team in mind for distraction, concealment, rescue, or signaling. The pocket grenade is not specifically intended as a crowd management device; however, it can be used in chemical configurations in conjunction with larger smoke canisters to “piggy back” chemical agent into a predominately smoke environment. This device should be deployed utilizing wind advantage.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Smoke
Quantity 6
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Manufacturer's Description The Military-Style Maximum Smoke Grenade comes from the Defense Technology® #3 smoke grenade. It is a slow burning, high volume, continuous discharge grenade designed for outdoor use in crowd management situations. Emits grey-white smoke only for approximately 1.5 to 2 minutes.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage
Costs $38 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Smoke
Quantity 9
Capability Can be hand thrown, launched, or placed into a munitions Pole Life Span 5 years
Defense Technology Triple-Chaser separating canister, SAF-Smoke 1027 Defense Technology Smoke Maximum HC Smoke 1083
06/23/2026 Item No.7.
Manufacturer's Description The Triple-Chaser® Saf-Smoke™ consists three separate canisters pressed together with separating charges between each. When deployed, the canisters separate and land approximately 20 feet apart allowing increased area coverage in a short period of time. This grenade can be hand thrown or launched from a fired delivery system and is an effective way to quickly deploy a wide blanket of agent. The grenade is 6.5 in. by 2.7 in. and delivers Saf-Smoke™. It has an approximate burn time of 20 seconds.
Purpose To safely resolve critical situations such as violent civil unrest and high-risk tactical operations
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $38 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing chemical agents are trained by POST certified chemical agent instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Diversionary Device (Flash Bang)
Quantity 13
Capability This intermediate less lethal specialty munition allows for light sound diversion during tactical operations which allows for tactical advantage during high-risk situations.
Life Span Reusable 25 times
Manufacturer's Description The Non-Reloadable Distraction Device® unit incorporates an M201A1 type fuze with hex design gun steel body. This is compact version of the 8933 Low Roll® body Distraction Device is the newest version of the first reusable non-bursting canister that limits movement and rolling once deployed. The compact Distraction Device fits safely in your hand and packs all the power of the full-size Distraction Device. This is a smaller, lighter device with the same output.
Purpose To safely resolve critical situations during high-risk tactical operations.
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $30 $0
anticipated yearly maintenance cost
Required Training Prior to use, officers must attend inhouse training conducted by POST certified instructors or attend POST certified training.
Authority for Authorized Use Use is established under FPD Policy 300. It is the policy of the FPD to utilize diversion devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Diversionary Device (Flash Bang)
Quantity 8
Capability This intermediate less lethal specialty munition allows for light sound diversion during tactical operations which allows for tactical advantage during high-risk situations.
Defense Technology 8933 Low Roll Distraction Device
Defense Technology 8908CI Command Initiated Distraction Device
06/23/2026 Item No.7.
Life Span One time use
Manufacturer's Description The Command Initiated Reload can be initiated on command from a remote point alleviating initiation delay when instantaneous results are desired. It is ideal for operations utilizing bang poles, deterring retreat and achieving space denial from predetermined areas. 12″ of thermo tubing is included with the reload. Some assembly and accessories are required.
Purpose To safely resolve critical situations during high-risk tactical operations.
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Costs $35 $0
anticipated yearly maintenance cost
Required Training Prior to use, officers must attend inhouse training conducted by POST certified instructors or attend POST certified training.
Authority for Authorized Use Use is established under FPD Policy 300. It is the policy of the FPD to utilize diversion devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
06/23/2026 Item No.7.
Description Less Lethal Shotgun
Quantity 10
Capability Deploying 12 gauge less lethal flexible baton munitions (Super sock)
Life Span 15-20 years
Manufacturer's Description The Remington 870 barrel has a fixed cylinder choke for optimum performance with buckshot and slugs at close range. A myriad of aftermarket Remington 870 accessories enables owners to customize the 870 Express for specific purposes. 870 Remington is a receiver milled from a solid billet of steel for maximum strength, and twin action bars th t t bi di d t i ti hil li th ti Purpose Deploys 12 gauge less lethal flexible baton (Super sock) as impact munitions.
Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT and Patrol.
Costs $500 $50
anticipated yearly maintenance cost
Required Training Sworn members utilizing less lethal shotguns are trained by POST certified instructors for 2 hours.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize impact munitions only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description 40 MM Projectile Launcher
Quantity 2
Capability Deploying 40mm less lethal impact projectiles and 40mm chemical agent rounds Life Span 15 years
Manufacturer's Description Designed for riot and tactical situations, the Defense Technology® 1440 40mm Tactical 4-Shot Launcher is low-profile and lightweight, providing multi-shot capability in an easy to carry launcher. It features the Rogers Super Stoc™ expandable gun stock, an adjustable Picatinny mounted front grip, and a unique direct-drive system to advance the magazine cylinder.
Purpose Deploying 40mm less lethal impact projectiles and 40mm chemical agent rounds Authorized Usage De-escalation tool not likely to inflict serious injury Used by SWAT
Remington 870 Pump Action Shotgun – Less Lethal
Defense Technology 1440 40MM Tactical 4-Shot Launcher
06/23/2026 Item No.7.
Costs $300 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing munitions launchers are trained by POST certified chemical agents instructors and POST certified less lethal instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4, and Policy 311. It is the policy of the FPD to utilize projectile launchers only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description 37 MM Projectile Launcher
Quantity 1
Capability Deploying 37mm less lethal impact projectiles Life Span 25 years
Manufacturer's Description A spring-advance magazine drum launcher with a six-shot capacity and a smooth barrel.
Purpose Deploying 37mm less lethal impact projectiles
Authorized Usage De-escalation tool not likely to inflict serious injury. Used by SWAT and patrol Costs $300 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing munitions launchers are trained by POST certified chemical agents instructors and POST certified less lethal instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4, and Policy 311. It is the policy of the FPD to utilize projectile launchers only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description 37 MM Projectile
Quantity 8
Capability 37mm launcher
Life Span 25 years
Manufacturer's Description The KO1 is a direct fire modular impact baton round that is designed to be used in situations where kinetic energy is preferred for the incapacitation of hostile and/or non-compliant individuals.
Purpose To safely resolve critical situations such as high-risk tactical operations.
These are necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety/will safeguard the public’s welfare, safety, civil rights, and civil liberties.
Authorized Usage De-escalation tool not likely to inflict serious injury. Used by SWAT amd patrol.
Costs $30 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing munitions launchers are trained by POST certified chemical agents instructors and POST certified less lethal instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize impact munitions only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Penn Arms L637-1 37MM Projectile Launcher
Sage KO1/S Impact Baton 37MM Projectile
Sage K03OC/S OC Impact Baton 37MM Projectile
06/23/2026 Item No.7.
Description 37 MM Projectile
Quantity 6
Capability 37mm launcher
Life Span 25 years
Manufacturer's Description The KO3 is a direct fire crush nose chemical impact baton round that is designed to be used in situations where a combination of kinetic energy and chemical agents is preferred for the incapacitation of hostile and/or non-compliant individuals.
Purpose To safely resolve critical situations such as high-risk tactical operations.
These are necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety/will safeguard the public’s welfare, safety, civil rights, and civil liberties.
Authorized Usage De-escalation tool not likely to inflict serious injury. Used by SWAT and patrol.
Costs $30 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing munitions launchers are trained by POST certified chemical agents instructors and POST certified less lethal instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize impact munitions only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description 12 Gauge Projectile Launcher
Quantity 1
Capability These launching cups attach to 12 gauge less lethal shotguns and allow us to launch canisters of chemical agents or smoke.
Life Span 25 years
Manufacturer's Description The launching cup will project the Pocket Tactical Grenade beyond the normal throwing distance. This will extended the ability and safety of the officers involved.
Removable shotgun forend to ensure proper stand-off when using breaching rounds.
Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
Authorized Usage De-escalation tool not likely to inflict serious injury. Used by SWAT.
Costs $40 $0
anticipated yearly maintenance cost
Required Training Sworn members utilizing munitions launchers are trained by POST certified chemical agents instructors and POST certified less lethal instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.4. It is the policy of the FPD to utilize impact munitions only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Description Less lethal munitions
Quantity 600
Capability This intermediate less lethal specialty munition allows for direct impact from a minimum range and a maximum effective range of 75ft Life Span 5 years
Combined Tactical Systems Super Sock Bean Bag
Defense Technology 1370 12-Gauge TkO/ Launching Cup
06/23/2026 Item No.7.
Manufacturer's Description This 12-Gauge Round is a translucent 12-Gauge shell loaded with a 51-Gram tear shaped bag made from a cotton and ballistic material blend. . The 12-Gauge Drag Stabilized projectile does not require a minimum range to unfold or stabilize. This round has a velocity of 280 fps with a maximum effective range of 75 feet.
Purpose To safely resolve critical situations such as crowd control during riotous situations and high-risk tactical operations. These are necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety/will safeguard the public’s welfare, safety, civil rights, and civil liberties.
Authorized Usage De-escalation tool not likely to inflict serious injury. Used by SWAT and patrol.
Costs $6.75 per round
approx. $0 anticipated yearly maintenance cost
Required Training Sworn members utilizing munitions launchers are trained by POST certified less lethal instructors.
Authority for Authorized Use Use is established under the FPD Policy 300, subsection 308.7, and Policy 311. It is the policy of the FPD to utilize less lethal munition only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
06/23/2026 Item No.7.
Description American Tech Cord 500
Quantity 1
Capability Used to send messages over long range
Life Span 25 years
Manufacturer's Description LRAD systems deliver live or recorded voice messages with exceptional clarity for any operational scenario. Optimized to the primary range of hearing, LRAD’s Advanced Driver and Waveguide Technology ensure every broadcast is clearly heard and understood, even above crowd, engine, and background noise.
Purpose Device used for public announcements.
Authorized Usage Any critical situation to make public announcements: Critical incidents, civil unrest, search and rescue, public safety.
Costs $1,000 $0
anticipated yearly maintenance cost
Required Training All operators receive training prior to operating the LRAD in the field.
Authority for Authorized Use Use is established under FPD Policy 312. It is the policy of the FPD to utilize the LRAD only for official law enforcement purposes, and pursuant to State and Federal law.
Long Range Acoustic Device (LRAD)
06/23/2026 Item No.7.
Description Anti-vehicle Barrier
Quantity 16 barriers, 1 trailer, 2 haulers
Capability The Archer 1200 Anti-Vehicle Barrier is a portable barrier which can protect closed areas from vehicle-ramming attacks. These barriers replace wooden, and water filled barricades during special events and are easily deployed when there is an increase in the level of threat to a specific location or crowded area. They allow for pedestrians to move between them but can stop vehicles from entering closed areas. These barriers will be used during special events and critical incidents where pedestrian safety is a concern.
The Folsom Police Department has applied for a grant to obtain 16 barriers but have not taken possession yet.
Life Span 10 years
Manufacturer's Description An unanchored, "drop-and-stop" barrier for a VSM (Vehicle Safety Mitigation) solution deployment on any surface. Archer 1200 barriers has the shortest stopping distance in its class, modular design, no heavy equipment required for deployment Purpose To be used based on the specific circumstances of a given critical incident, large event, natural disaster or community event that is taking place.
Authorized Usage Authorized for use would include but not be limited to critical incidents, emergencies, and community events.
Costs $150,000
approx. $0 anticipated yearly maintenance cost
Required Training All officers deploying the vehicle barriers will receive training on how to properly load, unload, move, and deploy the barriers in the field.
Authority for Authorized Use It will be the policy of the Department to use the vehicle barriers for official law enforcement purposes including road closures, and special events Meridian Rapid Defense Group Archer 1200
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Attachment 3
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Attachment 4
06/23/2026 Item No.7.
FOLSOM POLICE DEPARTMENT
46 Natoma Street
Folsom, California 95630
(916) 461-6400
www.folsom.ca.us/police
The Mission of the Folsom Police Department is to Serve with Purpose, Relentlessly Pursue Criminal Behavior, and Proactively Foster Positive Relationships within the Community.
Date: June 6th 2026
Background
California Assembly Bill (AB) 481 requires law enforcement agencies to obtain governing body approval, through a military equipment use policy ordinance, before acquiring, using, or funding specified equipment. To comply with these state mandates, the Folsom City Council initially approved the city's military equipment policy on May 24, 2022. This action resulted in the enactment of City of Folsom Ordinance 1326 and the adoption of Folsom Police Department Policy 707. To maintain compliance with AB 481, the law requires both an annual report on each equipment type and an annual City Council review and renewal vote. In accordance with these ongoing statutory requirements, the Folsom City Council most recently renewed Ordinance 1326 on June 10, 2025.
Folsom Police Annual Report
During the past year, several of the items regulated under City Ordinance 1326 and Policy 707 were deployed and successfully used. These assets were imperative to enhance safety and operational efficiency across a diverse range of field operations, including:
High-Risk Operations: Resolving barricaded subject incidents, executing high-risk building entries, and managing complex critical incidents.
Tactical Interventions: Conducting felony vehicle stops and executing open area and building searches for suspects.
Public Safety & Mutual Aid: Conducting missing person searches and providing critical operational support to outside law enforcement agencies.
Readiness: Conducting routine, mandatory tactical training to ensure proficiency and compliance.
06/23/2026 Item No.7.
FOLSOM POLICE DEPARTMENT
46 Natoma Street
Folsom, California 95630
(916) 461-6400
www.folsom.ca.us/police
The Mission of the Folsom Police Department is to Serve with Purpose, Relentlessly Pursue Criminal Behavior, and Proactively Foster Positive Relationships within the Community.
Equipment Deployment and Training Summary
Regulated Equipment Item Operational
Deployments
Training
Uses
Total Annual
Uses
Drone (All) 95 20 115
Rifle* 1 256 257
Less-Lethal Shotgun 3 58 61
Armored Vehicle (BearCat) 35 7 42
Long-Range Acoustical Device (LRAD) 11 0 11
Less-Lethal Munition Launcher 3 5 8
Mobile Command & Communications
Unit (MCCU) 0 1 1
Diversionary Devices 9 2 11
Chemical Munitions 5 2 7
Tactical Robot (ICOR Mini-Caliber) 4 2 6
Sniper Rifle* 0 12 12
Less-Lethal Baton 0 0 0
Less-Lethal Bean Bag 3 142 145
06/23/2026 Item No.7.
FOLSOM POLICE DEPARTMENT
46 Natoma Street
Folsom, California 95630
(916) 461-6400
www.folsom.ca.us/police
The Mission of the Folsom Police Department is to Serve with Purpose, Relentlessly Pursue Criminal Behavior, and Proactively Foster Positive Relationships within the Community. *Rifle and Sniper Rifle Operational Deployments:
Beginning in 2025, the Folsom Police Department revised its definition of an “operational deployment” for rifles. Deployment figures now reflect only instances in which a rifle was fired during an operational incident. In prior years, any instance of an officer removing a rifle from a vehicle was recorded as a deployment.
Complaints & Public Accessibility
Community Complaints: The Folsom Police Department received zero citizen complaints regarding the deployment or authorization of regulated equipment during this reporting period.
Public Disclosure: Upon submission to the City Council, this report will be published on the Department’s public website to satisfy statutory transparency mandates.
Cost
The estimated annual financial impact of the listed items—including training, operations, maintenance, funding, and acquisition—was approximately $138,173.86.
ATTACHMENTS
Updated inventory list of equipment
Folsom Police Policy 707
06/23/2026 Item No.7.
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06/23/2026 Item No.7.
Folsom City Council
Staff Report
1 MEETING DATE: 6/23/2026
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 11650 – A Resolution Authorizing the City Manager to Execute a Cooperation Agreement with Sacramento Housing and Redevelopment Agency for Continued Participation in the Community Development Block Grant Program and
Related Activities from January 1, 2027 to December 31, 2030 FROM: Community Development Department
RECOMMENDATION / CITY COUNCIL ACTION
Move to Adopt Resolution No. 11650 – A Resolution Authorizing the City Manager to Execute a Cooperation Agreement with Sacramento Housing and Redevelopment Agency for Continued Participation in the Community Development Block Grant Program and Related Activities from January 1, 2027 to December 31, 2030.
BACKGROUND / ISSUE
The City of Folsom currently has a Community Development Block Grant (CDBG) cooperation agreement with the Sacramento Housing and Redevelopment Agency (SHRA).
This agreement authorizes SHRA, on behalf of the County of Sacramento, to undertake essential community development and housing assistance activities in Folsom and to approve eligible programs and/or projects for years 2024, 2025 and 2026 for the urban county of Sacramento. Local governments that participate in the urban county for purposes of CDBG also automatically participate in the HOME investment partnerships program (HOME) and Emergency Solutions Grant Program (ESG). As part of this agreement, SHRA is responsible for the annual filing of the One-Year Action Plan and the Consolidated Annual Performance and Evaluation Reporting (CAPER) with the U.S Department of Housing and Urban Development (HUD), on behalf of Folsom.
Currently, the City of Folsom uses CDBG funds for the Seniors Helping Seniors Handyman Program, ADA projects, and the City’s proportional contribution to the regional Renter’s Helpline contract.
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2 The current Cooperation Agreement will expire on December 31, 2026. To continue participating in the SHRA-administered CDBG, HOME, and ESG programs, the city must enter into a new Cooperation Agreement for program years 2025, 2026, and 2027. Entering into this Agreement will provide approximately $228,000 annually in CDBG funds to support the City’s Seniors Helping Seniors Home Repair Program, the City’s proportional contribution to the regional Renter’s Helpline contract, and other eligible programs and projects.
To meet HUD’s deadline of August 10, 2026 for full package submittal, the city must submit a letter and an approved resolution to SHRA by July 8, 2026, affirming its interest in entering into the renewed Cooperation Agreement.
Staff is requesting City Council approval of the attached resolution to continue in the Cooperation Agreement for the next three years, ensuring ongoing support for the Seniors Helping Seniors Program, the Renter’s Helpline, and other eligible activities such as ADA improvements associated with the proposed food bank expansion.
POLICY / RULE
Participation in the Sacramento Housing and Redevelopment Agency’s cooperation agreement requires City Council authorization.
ANALYSIS
Use of CDBG Funds in the City of Folsom
In 1987, the City of Folsom, as a subrecipient of SHRA, began receiving CDBG funds to support affordable housing rehabilitation loan programs and ADA accessibility upgrades. Over the years, these funds have enabled the City to provide ADA improvements and issue more than 200 rehabilitation loans to low-income homeowners.
Since 2012, the City has used a portion of its CDBG allocation to fund the Seniors Helping Seniors (SHS) Program. The program provides Minor Repair Grants of up to $5,000 per household and Major Repair Grants of up to $12,000 to address serious health and safety hazards in owner-occupied senior housing units. The program currently uses $200,000 of the City’s annual CDBG allocation. Since its launch, approximately $2.3 million has been invested in the program, benefiting more than 300 senior households in Folsom.
In addition to the SHS program, the City contributes a proportional share of its CDBG allocation (currently $10,000) to support the regional Renter’s Helpline contract. This program provides free tenant-landlord counseling, mediation assistance, and referrals to help resolve rental housing issues and support local housing stability.
The remaining balance of the City’s CDBG allocation is available for other eligible activities.
Due to the relatively small amount of uncommitted funding (approximately $28,000 per year), these funds have been designated for ADA accessibility upgrades. Unused funds may be
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3 carried forward, allowing allocations to accumulate for use in future eligible projects. For example, in 2025, the City combined remaining funds from 2022, 2023, and 2024 to support $42,000 in ADA improvements along Glenn/School Street.
Anticipated Annual CDBG Funding
SHRA allocates annual CDBG funding to the City of Folsom using the average of HUD’s two allocation formulas, which establishes the City’s proportional share (currently 4.95 percent) of the Sacramento County entitlement. SHRA then applies a 20 percent administrative deduction before funds are distributed to the City.
Based on our recent allocation, if the City does decide to enter into a new Cooperation Agreement with SHRA it is expected that the City would receive approximately $228,000 in net CDBG funding annually over the next three-year period to support the Seniors Helping Seniors program and small-scale ADA improvements. These funding levels, which are summarized in the table below, are expected to remain relatively stable over the next three years, assuming HUD funding levels remain consistent.
2026 CDBG Allocation Summary Table
Allocation Component Amount
Total Allocation to City of Folsom (before admin) $298,520 20% SHRA Administrative Cost ($59,704)
Total Allocation After Admin $238,816
Renter’s Helpline Contribution ($10,000)
Remaining Funding Available to the City $228,816
Planned Annual Allocation to SHS ($200,000)
Remaining Funds for Other Eligible Uses $28,816
Evaluation of Entitlement Jurisdiction Status
Periodically, the City has evaluated whether it would be beneficial to transition from a subrecipient of SHRA to becoming an independent CDBG entitlement jurisdiction. As in past years, the City retained a consultant to prepare an updated analysis of the financial, operational, and administrative implications of pursuing entitlement status. This analysis is included as Attachment 2 to this staff report.
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4 The assessment found that becoming an entitlement jurisdiction would require additional staff capacity and substantial new administrative responsibilities, including full accountability for CDBG monitoring, environmental review, financial management, reporting, and compliance—functions currently performed by SHRA on the City’s behalf. Although entitlement status could modestly increase the City’s annual allocation, current federal formulas estimate an award of approximately $380,000 annually, compared to the roughly $300,000 the City currently receives through SHRA.
While 20 percent of the $380,000 the City might receive can be used to cover these administrative expenses, this amount is often insufficient to pay for all these costs. This is because entitlement jurisdictions must prepare a Consolidated Plan every five years and then Action Plans and Consolidated Annual Performance Evaluation Reports (CAPER) every year.
Furthermore, City staff must be trained in and use HUD’s Integrated Distribution and Information System (IDIS) for all withdrawals of any grant funds. In addition, prior to 2025, all entitlement jurisdictions had to prepare an Analysis of Impediments to Fair Housing Choice (AI). If a new federal administration changes the current ruling, jurisdictions may have to prepare the AI again as well. As a result, the General Fund or the City’s Housing Fund may have to be used to pay for all administrative costs in excess of the 20 percent limit.
Many CDBG administrators consider at least $500,000 necessary to support the staffing needed to operate the program independently, and based on current staffing levels and workload, the City would need to add a new part-time housing position and/or consultant support, along with increased workload for the Finance Department and City Attorney’s Office, to manage a stand-alone CDBG program. Based on these operational and financial factors, staff has concluded that entitlement status would not provide a meaningful financial benefit, in terms of CDBG funding, at this time.
While entitlement status would provide greater local control over CDBG funds, this advantage is limited by the City’s relatively small allocation and the restricted number of qualifying low- and moderate-income (LMI) areas, which narrow the range of eligible projects and reduce the potential for broad community impact. Additionally, in future cases where state or federal programs tie funding eligibility to CDBG entitlement status (such as the Permanent Local Housing Allocation (PLHA) program) the City would gain control over those funds as well.
However, this would also require the City to assume all associated administrative, compliance, and reporting responsibilities for those programs.
Finally, another reason that City staff explored the entitlement jurisdiction pathway was due to possible legislative action that might have impacted the annual allocation of CDBG funds that the City receives from SHRA. Senate Bill 802 by Senator Ashby originally proposed consolidating federal, state and local housing funding into a new joint powers authority or JPA to combat homelessness in Sacramento County. However, the bill has been substantially amended to clarify that local jurisdictions retain local control over local, state and federal funds that they receive. As a result, staff no longer believe that becoming an entitlement jurisdiction with a direct allocation of funds from HUD is necessary to protect the City’s access to CDBG and other federal funds.
06/23/2026 Item No.8.
5 Recommendation
Staff recommends that the City Council authorize the City Manager to execute a Cooperation Agreement with the Sacramento Housing and Redevelopment Agency (SHRA) for continued participation in the Community Development Block Grant (CDBG) Program and related activities from January 1, 2027, through December 31, 2030. This action will allow the City to maintain access to CDBG funding while continuing to rely on SHRA’s established administrative capacity and program expertise, ensuring compliance with federal requirements without creating additional staffing or financial burdens for the City.
FINANCIAL IMPACT
There is no impact to the City’s General Fund. Financial support for the City’s participation in the Cooperation Agreement is provided through Community Development Block Grant funds (Fund 201), which cover program activities, and the City’s Housing Fund (Fund 238), which currently supports staff time associated with administering these activities.
ENVIRONMENTAL REVIEW
The project is categorically exempt from environmental review under Section 15061(b)(3) of the CEQA Guidelines (Review for Exemption). The activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Since entering into a funding agreement with SHRA is certain to not cause a significant effect on the environment, the activity is not subject to CEQA.
ATTACHMENTS
1. Resolution No. 11650 – A Resolution Authorizing the City Manager to Execute a Cooperation Agreement with Sacramento Housing and Redevelopment Agency for Continued Participation in the Community Development Block Grant Program and Related Activities from January 1, 2027, to December 31, 2030
2. 2026 City of Folsom Community Development Block Grant Entitlement Exploration Submitted,
_______
Pam Johns, Community Development Director
06/23/2026 Item No.8.
ATTACHMENT 1
A Resolution Authorizing the City Manager to Execute an Agreement with Sacramento Housing and Redevelopment Agency for Continued Participation in the Community Development Block Grant Program and Related Activities from January 1, 2027 to December 31, 2030
06/23/2026 Item No.8.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
WITH SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY FOR CONTINUED
PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND RELATED ACTIVITIES FROM JANUARY 1, 2027 TO DECEMBER 31, 2030 WHEREAS, the City of Folsom currently participates in the Sacramento Urban County Community Development Block Grant (CDBG) Program as a subrecipient through a Cooperation Agreement with the Sacramento Housing and Redevelopment Agency (SHRA); and WHEREAS, participation in the Urban County also provides the City with access to the HOME Investment Partnerships Program (HOME) and the Emergency Solutions Grant (ESG) Program; and WHEREAS, the City of Folsom uses its annual CDBG allocation to support the Seniors Helping Seniors Home Repair Program, ADA accessibility improvements, and the regional Renter’s Helpline contract; and
WHEREAS, the current Cooperation Agreement between the City and SHRA will expire on December 31, 2026; and
WHEREAS, to continue participating in the SHRA-administered CDBG, HOME, and ESG programs, the City must enter into a new Cooperation Agreement for the 2027, 2028, and 2029 program years (January 1, 2027 through December 31, 2030); and
WHEREAS, continued participation is expected to provide approximately $228,000 annually in net CDBG funds to support essential housing and community development activities within the City of Folsom; and
WHEREAS, staff has evaluated the financial and administrative implications of alternative program structures, including entitlement jurisdiction status, and recommends continued participation in the Urban County based on cost efficiency, administrative capacity, and community benefit.
WHEREAS, cooperation with the Sacramento Housing and Redevelopment Agency on the CDBG Program contributes to the City of Folsom 2021-2029 Housing Element goal of providing a range of housing services for Folsom residents with special needs, including seniors and persons with disabilities;
WHEREAS, this is an administrative agreement between the City of Folsom and SHRA and is therefore not considered a project or subject to review under Section 15061(b)(3) of the California Environmental Quality Act (CEQA) guidelines;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom that the City Manager is hereby authorized to execute a Cooperation Agreement with the Sacramento Housing and Redevelopment Agency for continued participation in the Community Development Block Grant Program and related activities from January 1, 2027, through December 31, 2030.
RESOLUTION NO. 11650
Resolution No. 11650
06/23/2026 Item No.8.
PASSED AND ADOPTED on this 23rd day of June 2026, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
__________________________________
Justin Raithel, MAYOR
ATTEST:
________________________________
Christa Freemantle, CITY CLERK
Resolution No. 11650
06/23/2026 Item No.8.
ATTACHMENT 2
2026 City of Folsom Community Development Block Grant
Entitlement Exploration
06/23/2026 Item No.8.
MEMORANDUM
DATE June 15, 2026
TO Pam Johns, Community Development Director; Desmond Parrington, Planning Manager; and Stephanie Henry, Housing Manager
ADDRESS 50 Natoma Street, Folsom, CA 95630
FROM Jennifer Gastelum, PlaceWorks
SUBJECT 2026 City of Folsom Community Development Block Grant Entitlement Exploration The City of Folsom’s (City’s) Community Development Block Grant (CDBG) contract with the Sacramento County Urban County Consortium was approved in September 2023 and runs through December 31, 2026. The City is gathering information regarding logistics and potential advantages and disadvantages to becoming an entitlement jurisdiction.
Based on preliminary research, the primary benefit to entitlement is control over decision-making on funds and a possible increase to the City’s annual allocation amount.
The U.S. Department of Housing and Urban Development (HUD) does not publish standard guidelines or a process to becoming an entitlement jurisdiction. Based on conversations with HUD, cities that reach a population of over 50,000 are eligible for entitlement status, meaning a direct allocation of CDBG funds. The U.S. Census reports to HUD each year. HUD then follows federally mandated procedures to notify that city and urban county of the City’s eligibility.
In June 2026, a HUD representative noted that the 2024 estimate for the city’s allocation was $360,900 and the estimated allocation amount for the current fiscal year is $380,000. The representative added that this amount should only be used as a planning estimate and that HUD cannot guarantee that this amount would reflect the City’s allocation upon accepting entitlement status. At this point, if the City decides it wants to become an entitlement grantee, a formal decision to not continue as part of the Urban County must be sent to SHRA by July 8. The City will also need to engage with the local HUD field office to prepare required plans and documents to achieve entitlement status. The required plans include a Consolidated Plan, a first-year Action Plan, and possibly an Analysis of Impediments to Fair Housing Choice. Based on our experience and discussions with other jurisdictions that have become entitlement jurisdictions in recent years, the planning process will take roughly a year to complete.
The primary challenge associated with becoming an entitlement jurisdiction is the significant increase to the administrative burden and corresponding staff costs. While the CDBG program does allow for up to 20 percent of the annual entitlement to be used in administration, the administrative burden is substantial and is not reduced by a lower entitlement award. According to a representative from HUD’s San Francisco office, it is typical to use a small team to administer the CDBG program. This team may include staff and/or consultants. Any increase to the City’s annual allocation would need to be able to support the additional administrative burden to be feasible. Based on an analysis of the City’s most recent communication with HUD, and the City’s current staffing capacity, it is highly unlikely that an entitlement award would be large enough to cover the cost of managing the program. As administration costs from the CDBG program have hard caps, any unreimbursed administration costs would need to be covered by the City’s General Fund or another source.
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Overview of CDBG
The CDBG program provides communities with resources to address community development needs. The CDBG program is intended to facilitate affordable housing and services to vulnerable segments of the population and create jobs through business retention and expansion. Eligible activities include, but are not limited to:
» Acquisition of real property
» Relocation and demolition
» Rehabilitation of residential and nonresidential structures » Construction of public facilities and improvements such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes » Public services, within certain limits
» Activities relating to energy conservation and renewable energy resources » Provision of assistance to profit-motivated businesses to carry out economic development and job retention Generally, ineligible activities include:
» Acquisition, construction, or reconstruction of buildings for the general conduct of government » Political activities
» Certain income payments
» Construction of new housing by units of local government At least 70 percent of CDBG funds must be spent on activities that benefit low- and moderate-income persons. There are several strategies for justifying that a program benefits these community members. For example, public facilities and improvements projects are most commonly justified through an “area benefit”, in which the jurisdiction demonstrates that at least 51 percent of residents in the area served have low or moderate incomes. Alternatively, such projects can also qualify under the “limited clientele criteria” if they specifically serve communities that are typically lower income, such as homeless persons or persons with disabilities. In other circumstances they could be projects to clear slum or blight, or be facilities or improvements constructed in service of creating or maintaining jobs that are available to or held by LMI persons.
As another example, the low- or moderate-income resident benefit for economic development projects can be justified in several ways. An example of an economic development project that might be justified under an “area benefit” would be a grocery store in a predominantly low- or moderate-income neighborhood. Economic development projects could also be justified through a “limited clientele criteria” justification if the economic development project specifically supports the business of a low- or moderate-income entrepreneur or the project provides employment support services or job training that supports predominantly low- or moderate-income residents. Job-creation or job-retention projects could also be justified as supporting low- or moderate-income residents if the roles are held or expected to be held by a low or moderate-income person.
HUD determines the amount of grants based on a formula that accounts for community need, including the extent of poverty, population, housing overcrowding, age of the housing stock, and any population growth lag as compared to other metropolitan areas. As previously mentioned, the local HUD office noted that the 2024 estimate for the city’s allocation was $360,900 and the estimated allocation amount for the current fiscal year is $380,000.
USE OF CDBG FUNDS
HUD has established specific restrictions regarding the percentage of the annual CDBG allocation that can be used for specific categories. The use of funds must conform to the following guidelines:
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» A maximum of 20 percent of the annual allocation may be used for program administration » A minimum of 70 percent of the annual allocation must be used to fund activities that benefit low- and moderateincome persons » A maximum of 15 percent of the annual allocation may be used to fund public services (public services include, but are not limited to, employment services, crime prevention and public safety, child care, domestic violence victim support, health services, substance abuse services, tenant landlord housing counseling, education programs, energy conservation, senior citizen services, homeless services, welfare services, down payment assistance, and recreational services). Public services funds must be used for a new service or a quantifiable increase in the level of an existing service that was provided using local government funding in the 12 months prior to the submission of the Consolidated Plan Annual Action Plan to HUD. Examples of funded public services programs in Rocklin include food and meal delivery services for seniors, services for low and moderate-income youth, and assistance for victims of domestic violence or sexual assault. In other communities, such as the City of Orange, these services also include food pantries or school supply distribution activities. Examples of recreation services that have received funding include after-school programs, summer camps, and youth sports leagues. Senior and special needs recreational programs and public facility improvement that include installing and rehabilitating park infrastructure, playgrounds, and recreational equipment for ADA accessibility.
“NON-ENTITLEMENT” AND “ENTITLEMENT”
CDBG funds are allocated annually to states, counties, and local jurisdictions. Jurisdictions designated as “entitlement” communities include central cities in Metropolitan Statistical Areas (MSA), metropolitan cities with populations of at least 50,000 (as determined by the U.S. Census), and qualified urban counties with populations of 200,000 or more (excluding the populations of entitlement cities). Funds for “non-entitlement” localities are administered by states. In California, the Department of Housing and Community Development (HCD) manages the CDBG funds for nonentitlement communities, and awards project-specific funds to communities through both a competitive grant process and an over-the-counter award process. Jurisdictions that receive funding through either a direct entitlement or through participation in an urban county entitlement are typically not eligible for State-managed CDBG funds.
FOLSOM CDBG PROGRAM
Folsom receives CDBG funds through an agreement with the Sacramento Housing and Redevelopment Agency (SHRA).
SHRA is the recipient for Urban County CDBG funds in Sacramento County. The Urban County consists of the Cities of Folsom (approximately 83,916 as of 2024), Isleton (approximately 522 as of 20241) and Galt (approximately 26,589 as of 2024), and the unincorporated communities of the county.
As shown in Table 1, in 2026 the total SHRA allocation to the City was $298,520, of which 20 percent was used for SHRA administrative costs. The City uses its funds for the City’s Seniors Helping Seniors Handyman Program, which includes minor repairs to correct health and safety deficiencies, as well as a contribution to the Renter’s Helpline program. After accounting for these program costs, $28,816 are available for eligible uses.
Table 1. City of Folsom 2026 CDBG Allocation Summary
ALLOCATION COMPONENT AMOUNT
Total Allocation to City of Folsom (before admin) $298,520 1 Population estimates from 2024 used in this analysis are based on data from the 2020-2024 American Community Survey (ACS) Five-Year Summary. Though the California Department of Finance publishes data more frequently, ACS data was used because this source is commonly used by HUD.
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20% SHRA Administrative Cost ($59,704)
Total Allocation After Admin $238,816
Renter’s Helpline Contribution ($10,000)
Net Funding Available to the City $228,816
Planned Annual Allocation to SHS ($200,000)
Remaining Funds for Other Eligible Uses $28,816
Source: City of Folsom, 2026
ENTITLEMENT CONSIDERATIONS
A variety of factors must be considered in the decision regarding whether to pursue entitlement status at this time.
Factors may include the availability of staff resources and expertise, local politics and City priorities, and entitlement process timing, as well as the outcome of negotiations with the County regarding the potential renewal of the Urban County agreement.
Staff Resources/Administration. Many CDBG administrators agree that unless a city is eligible for at least $500,000 per year, it is not worth pursuing funding individually because the program could not provide enough funding to cover the cost of staff to administer the program.
Allocation Potential. An increase in the City’s annual allocation as a result of becoming an entitlement jurisdiction is possible but not guaranteed. According to a HUD representative, the City may expect to receive approximately $380,000 in funds in its first year. As is shown in Table 2, based on this estimate, if the City spends the maximum percentage of allocation funds on administration costs ($76,000), up to $57,000 will be available for public services, which would leave at least $247,000 available for other eligible projects.
Table 2. City of Folsom Potential Distribution of Estimated Allocation Funds
CATEGORY AMOUNT
Maximum Percentage for Administration (20%) $76,000
Maximum Percentage for Public Services (15%) $57,000
Remaining Allocation for Other Eligible Projects $247,000 Total Estimated Allocation $380,000
Upfront Reporting Costs. According to estimates based on data received from two consultants working in the region, upfront costs for completing the initial studies could be between $82,000 and $115,000 (see Table 3). The consultants suggested that the estimated annual cost for completing annual reports could be between approximately $20,000 and $27,000. Actual costs will vary based on staff or consultant hourly costs, and so may be higher than the estimates provided in Table 3. Therefore, first year costs may exceed the maximum amount of administrative funds available in the allocation.
Other Administrative Costs. It is important to note that upfront reporting costs do not reflect the entire cost of administering a CDBG program. Other costs include staff time for planning, managing, coordinating, and implementing the city’s CDBG program. An example would be staff time spent writing city CDBG program policies or developing and
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distributing information on how public services providers can apply for funding. Administrative costs do not include staff time for directly carrying out an activity (e.g. City staff conducting a job training workshop or Public Works staff renovating a park). As previously mentioned, a representative from HUD’s San Francisco office, said it is typical to use a small team of two to three staff to administer the CDBG program. This team may include staff and/or consultants.
In addition to annual reporting costs of $20,000 - $27,000 it can be assumed that doing the day-to-day management of the program costs another $20,000 - $30,000. Both jurisdictions studied (Lincoln and Rocklin) plan to use the full 20 percent of the allocation that is allowed to be used toward administrative costs. The City of Lincoln is too early in their entitlement process to have a full understanding of the administrative cost associated with administering the program, but they did assume it will cost above and beyond their CDBG (20 percent) administrative cap and they will have to find additional funds to keep the program going. Depending on the selected uses of the allocated funds and the cost of staff time, the administrative cost required could be greater than the 20 percent cap. As is shown in Table 2, based on an estimated allocation of $380,000, up to $76,000 of allocation funds would be available for administrative uses.
Table 3: Upfront and Ongoing Reporting Costs
DOCUMENT RANGE
First 5-Year Consolidated Plan and Action Plan, 5-Year Analysis of Impediments $70,000 – $100,000 First Consolidated Annual Performance and Evaluation Report (CAPER) $12,000 – $15,000 Subtotal, Estimated Upfront Reporting Costs $82,000 – $115,000 Annual Action Plan $10,000 – 15,000
Consolidated Annual Performance and Evaluation Report (CAPER) $10,000 – 12,000 Subtotal, Estimated Annual Reporting Costs $20,000 – 27,000 Source: PlaceWorks, 2026.
Applicable Program Areas. A significant portion (70 percent) of CDBG funding allocations must be used to benefit lowand moderate-income (LMI) persons. Though this may include programs that are designed to benefit LMI persons directly, activities may also qualify for CDBG funds if the activity will benefit all the residents of a primarily residential area where at least 51 percent of residents are LMI persons. This is called an “area-benefit.” Jurisdictions may either use data provided by HUD or conduct a methodologically sound income survey. Based on current HUD data that uses 2016-2020 American Community Survey data, there are four block groups that meet this standard. As shown in Figure 1, three of these block groups are clustered in the Natomas Heights area and neighborhoods to the west of Natomas Heights as far as Riley Street. A fourth block is to the northeast of E. Bidwell Street between Ravine Road and Creekside Drive in the Creekside District.
However, for jurisdictions with few block groups where at least 51 percent of residents are low- and moderateincome, CDBG law authorizes an exception that allows jurisdictions to apply for an exception to this rule. This exception would allow the city to apply an “area-benefit” program to areas where a lower percentage of residents have low or moderate incomes. The City of Rocklin has applied for and received such an exception. As is shown in Figure 2, Rocklin has a very small number of qualifying block groups based on the 51 percent limit. In 2024, Rocklin could use an area-benefit area in tracts or block groups where at least 41 percent of residents are within the LMI income group. This figure may have been updated since 2024, but exception grantee data for 2026 was not available on the HUD website.
Timing. Most steps for becoming an entitlement jurisdiction are dependent on HUD receiving notification from the U.S. Census that the City’s population has surpassed the 50,000-person threshold. A representative from HUD has suggested that it is estimated that the City will still qualify if it elects to leave the current Urban County agreement.
The City would need to decide on entitlement plans prior to the expiration of the Urban County contract in December 2026. If the City elects not to leave the Urban County contract at this time, the next opportunity to leave the
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agreement will be in three years. According to HUD’s Notice CPD-26-08, the City could negotiate a delayed schedule within the Urban County or include a void clause in the Cooperation Agreement to navigate the potential conflict between the Urban County agreement deadline and the issuance of an entitlement eligibility decision. According to the notice, a void clause in the Cooperation Agreement would state that the Cooperation Agreement would be voided if the City is notified by HUD of its eligibility to become an entitlement jurisdiction and chooses to accept this status.
This clause would need to state that if the agreement is not voided, that the City must participate in the Urban County agreement for the entire three-year period. The deadline for providing a response to SHRA’s decision letter is Wednesday, July 8, 2026. However, SHRA may request a deadline extension from the HUD field office if needed.
Urban County Agreement. An increase in the City’s annual CDBG allocation might be accomplished by renegotiating the City’s contract with the Urban County, rather than pursuing entitlement status. This approach may be beneficial in that the City would realize greater benefit without taking on the administrative burden associated with becoming an entitlement jurisdiction. A critical component of that negotiation would likely require that the City show sufficient knowledge and staff capacity to adequately manage additional funds. The liability for CDBG mismanagement lies with the entitlement agency, and urban counties are ultimately responsible for funds managed through their agreements with participating jurisdictions. Most urban counties are careful to make sure participating jurisdictions are aware of the potential liabilities and can manage CDBG-funded programs in compliance with HUD’s requirements.
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Figure 1: Block Groups in Folsom with Majority Low- and Moderate-Income Population Source: U.S. Department of Housing and Urban Development, 2024
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Figure 2: Block Groups in Rocklin with Majority Low- and Moderate-Income Population Source: U.S. Department of Housing and Urban Development, 2024
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Separation from the Urban County. Should the City decide to seek entitlement, the HUD field office will guide the City’s separation from the Urban County. There is no standard process for this. Each year, HUD publishes “Instructions for Urban County Qualification.” The instructions include expiration dates for all urban county agreements for the next two years, notification and qualification deadlines, and notification requirements.
SAMPLE CASES
PlaceWorks conducted a brief interview with a representative from the City of Lincoln, which recently became an entitlement jurisdiction, and conducted research on the CDBG programs of both Lincoln and Rocklin. Rocklin has been an entitlement city for many years and received its first allocation in 2008.
City of Lincoln (2024 population: 52,956). The City was notified of its eligibility and decided to move forward with the process of becoming an entitlement jurisdiction but was unable to begin the process of completing the required documentation until the second year due to staff capacity limitations. The City had previous CDBG funds from a direct application to the State. The representative noted that the work required to complete the necessary documentation is substantial compared to the amount of money the City receives. Lincoln’s 2026 allocation is $272,325. The City is currently using an outside consultant to complete its initial documentation. The City plans to administer the program in-house and administration and reporting is expected to cost more than the limit of 20 percent of the annual allocation ($54,465) that the City may use on administrative costs. The City is not currently seeking other lines of federal funding.
According to the draft 2026-2030 Consolidated Plan, in its first year, the City intends to spend 20 percent of this amount on administrative costs and the remaining funds on an accessible playground project at McBean Park (see Table 4). As shown in Figure 3, like Folsom, Lincoln has a small number of block groups where at least 51 percent of residents have low or moderate incomes. The proposed playground project is not in one of the area-eligible block groups. However, because the accessibility improvements will serve children with disabilities, the proposed project is pursuing eligibility through a limited clientele benefit rather than an area benefit, meaning that the project’s specific, limited clientele are presumed to be low or moderate income. In future years, the City also intends to use some portion of its funds for public services. According to the representative, the City intends to identify other infrastructure projects, such as sidewalk repairs, and will set up a system for organizations to apply for public services funds. As of May 2026, the Consolidated Plan is still in the public comment period. The City representative noted a potential challenge in using CDBG funds for housing assistance programs, as many community members who are eligible for CDBG-funded programs cannot afford a home even when the purchase is supported by a CDBG-funded program.
Table 4: City of Lincoln Planned Uses of CDBG Funds
ACTIVITY
PROJECTED PROGRAM SPENDING,
PROGRAM YEAR 2026
PERCENTAGE OF
TOTAL ALLOCATION
Planning and Administration $54,465 20%
Public Infrastructure Improvement: McBean Park Accessible Improvements $217,860 80%
Total $ 272,325 100%
Source: City of Lincoln, 2026-2030 Consolidated Plan.
City of Rocklin (2024 Population: 73,327). In 2026, Rocklin’s allocation was $307,853. According to Rocklin’s 2026- 2027 Annual Plan, in addition to using 20 percent of its funds for program administration, the City intends to use 15 percent of its funds for public service projects and the remaining 65 percent for public infrastructure improvements (see Table 5). Public service funds in Rocklin are used to fund a nutrition program for home-bound seniors, to provide mental health services to low- and moderate-income families with children and youth, and to provide therapy services for victims of domestic violence and sexual assault. Infrastructure funds have been used to make accessibility and safety improvements along South Whitney Boulevard between Sunset Boulevard and Five Star Boulevard. The
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infrastructure projects identified will serve persons with disabilities and some projects may be within the extended benefit range permitted by the city’s exception to the LMI area benefit rule.
Table 5: City of Rocklin Planned Uses of CDBG Funds
ACTIVITY
PROJECTED PROGRAM SPENDING,
PROGRAM YEAR 2026
PERCENTAGE OF
TOTAL ALLOCATION
Planning and Administration $61,570 20%
Public Services: Food And Meal Delivery Services for Low-Income, Homebound Elderly, and Disabled Adults $15,393 5%
Public Services: Services for Low- or Moderate-Income Youth $15,393 5% Public Services: Assistance for Victims of Domestic Violence or Sexual Assault $15,393 5%
Public Infrastructure Improvement: Sidewalk Repairs and Accessibility Improvements $200,104 65%
2026 Total $307,853 100%
Source: City of Rocklin, 2026-2027 Draft Annual Action Plan, adjusted to final 2026 allocation amount.
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Figure 3: Block Groups in Lincoln with Majority Low- and Moderate-Income Population Source: U.S. Department of Housing and Urban Development, 2024
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CDBG PROGRAM ADMINISTRATION
Planning and Reporting Requirements. Entitlement jurisdictions are required to prepare a series of plans and reports to inform HUD of the intent, implementation, and results of the local grant program. The City may fund these planning and reporting activities with 20 percent of the annual allocation that may be used for administration.
Consolidated Plan. The City will need to prepare a three- to five-year Consolidated Plan as a condition of eligibility to become an entitlement jurisdiction, and then it must review and update the plan every three to five years for as long as the City continues to receive CDBG funds as an entitlement jurisdiction. The Consolidated Plan must describe the City’s community development priorities and goals based on an assessment of housing and community development needs, an analysis of housing and economic conditions, and existing available resources.
Citizen participation is a critical component of the Consolidated Plan. The City must develop a Citizen Participation Plan as part of the planning process that outlines how it will engage the community in the process of developing and reviewing the proposed Consolidated Plan and in the ongoing implementation of programs. The Citizen Participation Plan is typically part of the final Consolidated Plan.
Annual Action Plan. The Consolidated Plan is carried out through Annual Action Plans, which must provide a concise summary of the actions, activities, and specific resources that will be used to address the priority needs and goals identified in the Consolidated Plan. This plan will need to be updated every year and submitted to HUD for review.
Consolidated Annual Performance and Evaluation Report (CAPER). Entitlement jurisdictions must prepare and submit a CAPER every year. CAPER identifies accomplishments and progress toward meeting goals stated in the Consolidated Plan.
Analysis of Impediments to Fair Housing Choice. Entitlement jurisdictions must prepare and maintain an Analysis of Impediments to Fair Housing Choice. The Analysis of Impediments is a comprehensive review of the City’s regulations, policies, procedures, and practices, and assesses how they affect the location, availability, and accessibility of housing.
The analysis must also consider how current conditions, both private and public, affect fair housing choice. The analysis must be maintained and regularly updated in concert with future Consolidated Plans, and jurisdictions must report on actions taken to overcome impediments in the CAPER.
Program Management. In addition to the formal plans listed in the previous section, the City will need to build on its existing procedures and establish a process for selecting activities to fund, completing environmental reviews, and executing agreements with grant recipients. The City must establish a local administrative “infrastructure” to administer CDBG funds, which includes policies and procedures for:
» Regular and consistent reporting (including quarterly and annual performance reports, semiannual labor compliance reports, and quarterly financial reports)
» Fund management and disbursement
» Subgrantee management and monitoring
» Procurement and contracting
» Compliance
» Technical assistance to subgrantees
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Conclusion
If the City decides to move forward with the process of leaving the Sacramento Urban County agreement and becoming an entitlement city, the next step will be to meet with representatives from the HUD regional office to discuss the path to entitlement. As part of this process, the City should evaluate the projected availability of staffing, staffing priorities, and budget priorities. The City should consider the role that a CDBG program would play in the allocation of staff time and budget resources, knowing that they may be limited and that the potential allocation amount has not yet been determined.
Sources
City of Folsom. 2025, June 24 (adopted). Fiscal Year 2025-2026 Preliminary Budget. https://www.folsom.ca.us/home/showpublisheddocument/22024/638917067942670000.
City of Lincoln. 2026. Telephone and email correspondence.
City of Lincoln. 2026. 2026-2030 Consolidated Plan. https://www.lincolnca.gov/media/w1ofbefu/city-of-lincoln2026-30-consolidated-plan.pdf.
City of Orange. “Community Development Block Grant”. https://www.cityoforange.org/ourcity/departments/community-development/housing/cdbg City of Rocklin. 2026. Fiscal Year (FY) 2026-2027 Annual Action Plan HUD Entitlement: Community Development Block Grant. Draft. https://www.rocklin.ca.us/sites/main/files/fileattachments/2026_draft_annual_action_plan_final.pdf?1769120224.
City of Santa Ana. “Community Development Block Grant”. https://www.santa-ana.org/community-developmentblock-grant/ Nordahl, Nicolas. 2026. HUD San Francisco Field Office. Telephone and email correspondence.
U.S. Census Bureau. 2026, June 3 (accessed). American Community Survey 2020-2024 5-Year Summary. https://data.census.gov/table/ACSDP5Y2024.DP05?q=DP05:+ACS+Demographic+and+Housing+Estimates&g=160XX 00US0624638,0641474,0662364.
United States Department of Housing and Urban Development. “Allocating Staff Costs Between Administrative and Activity Delivery Costs for CDBG Grantees Webinar. CDP Notice #13-07”. https://files.hudexchange.info/coursecontent/allocating-staff-costs-between-administrative--activity-delivery-costs-for-cdbg-granteeswebinar/CDBG%20PAC%20vs%20ADC%20Presentation%20FINAL%203-25.pdf United States Department of Housing and Urban Development. 2012 July. “Basically CDBG, Chapter 7: Public Services”. https://files.hudexchange.info/resources/documents/Basically-CDBG-Chapter-7-Public-Services.pdf U.S. Department of Housing and Urban Development. 2026, June (accessed). Community Development Block Grant Program.
http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/programs.
U.S. Department of Housing and Urban Development. 2026. “FY 2026 Urban County Qualification Deadlines”. https://www.hud.gov/sites/dfiles/CPD/documents/FY-2026-Urban-County-Qualification-Deadlines.pdf U.S. Department of Housing and Urban Development. 2026. Notice CPD-26-08, “Instructions for Urban County Qualification for Participation in the Community Development Block Grant (CDBG) Program.” https://www.hud.gov/sites/default/files/hudclips/documents/CPD-26-08.pdf.
U.S. Department of Housing and Urban Development. 2026. FY 2024 Exception Grantees, Based on 2016-2020 ACS. https://www.hudexchange.info/programs/acs-low-mod-summary-data/acs-low-mod-summary-data-exceptiongrantees/.
06/23/2026 Item No.8.
Folsom City Council
Staff Report
1 MEETING DATE: 6/23/2026
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 11651 - A Resolution Approving a New Staffing Model for the Water and Wastewater Divisions to Improve Operational Efficiencies in the Utilities Department and Appropriation of Funds
FROM: Human Resources Department
RECOMMENDATION / CITY COUNCIL ACTION
It is recommended that the City Council adopt Resolution No. 11651 - A Resolution Approving a New Staffing Model for the Water and Wastewater Divisions to Improve Operational Efficiencies in the Utilities Department and Appropriation of Funds.
BACKGROUND / ISSUE
Providing safe, reliable, and uninterrupted water and sewer service is one of the City’s most critical responsibilities. Water and sewer operations are a 24-hour, 365-day essential service that directly impacts public health, emergency response capabilities, fire protection, regulatory compliance, and overall quality of life for our residents. To maintain these services, state regulations require qualified and properly certified personnel to continuously monitor and operate essential water and sewer system functions.
The department is currently experiencing significant challenges in staffing on-call positions and hiring certified operations staff. At present, only a limited number of employees are available to fulfill these critical assignments, resulting in the same individuals repeatedly carrying on-call responsibilities. This creates operational and safety concerns related to employee fatigue, insufficient recovery time between shifts, and increased risk of human error in a highly sensitive utility environment. Sustaining this model long term is neither operationally effective nor safe for employees or the community we serve.
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2 Updating the staffing model is an operational need that will strengthen service continuity, improve workforce sustainability, improve recruitment efforts, and ensure the City can continue meeting its obligations to residents without interruption. Expanding staffing flexibility will allow employees to be placed into positions that appropriately align with their State of California certifications, training, and qualifications. This creates a more efficient workforce structure while also providing management with the ability to better allocate personnel where operational demands are greatest.
Recruitment and retention are also critical factors in maintaining a resilient and dependable water and wastewater utility program. The proposed model establishes clearer career pathways, promotes employee development, and enhances the City’s ability to attract and retain qualified operators in an increasingly competitive labor market. Without modernization of the current structure, vacancies will remain difficult to fill, placing additional strain on existing staff and increasing the risk of service disruptions.
A successful water and wastewater utility program depends on maintaining a robust and reliable on-call staffing pool. Expanding opportunities and flexibility within the staffing model will help increase employee participation in on-call assignments and ensure adequate coverage during emergencies, after-hours incidents, system failures, and critical infrastructure events. In emergency situations, timely response from qualified personnel is essential not only for maintaining water quality and system integrity, but also for protecting public health and safety.
Reliable staffing in these roles can have implications during fires, infrastructure failures, contamination events, or other critical emergencies. During emergency response events, certified water or wastewater operators may need to respond immediately to system alarms, pressure fluctuations, pump station failures, power outages, water main breaks, sewer overflows, or other operational issues that could impact water or wastewater operations.
Reliable and qualified staffing is therefore not only an operational necessity, but an essential component of protecting the health, safety, and welfare of the community.
In addition to addressing current operational challenges, this proposed staffing model is a proactive investment in the future of the City’s water and wastewater operations. It aligns the department with industry standards and neighboring agencies that have successfully implemented similar flex-series staffing structures to improve operational resiliency, workforce retention, and long-term service delivery outcomes while also establishing a clear and direct career ladder for the Department’s certified operators.
Implementing this model is essential to ensuring the City can continue providing safe, compliant, and uninterrupted water service to the community both now and into the future.
POLICY / RULE
Government Code Title 1, Division 4, Chapter 10, commonly known as the Meyers-MiliasBrown Act (MMBA), requires public agencies to meet and confer in good faith with recognized employee organizations regarding wages, hours, and other terms and conditions of employment.
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3 In accordance with the MMBA, the proposed updates to the staffing model were negotiated with the International Union of Operating Engineers - Stationary Engineers Local 39.
ANALYSIS
The current staffing model for the water and wastewater utility divisions comprise of three (3) different classification levels based on experience and level of certification. While an employee with the required certifications and experience can be promoted within a classification (for example from Maintenance Worker I to Maintenance Worker II), moving to a different classification (for example from Maintenance Worker II to Water Utilities Worker I) requires either a reclassification of the employee’s current position or for the employee to successfully apply to a vacancy in the higher classification. A reclassification study requires input from department staff, Human Resources, Finance and the City Manager, while a vacancy requires the city to complete all steps of the recruitment process, including advertising, review of applications and interviews. Both reclassification and recruitment are time-consuming processes which incur costs for the city. Meanwhile the lengthy processes involved can negatively affect employee morale, impact retention, and provide for a reduced number of staff available for the City’s on-call pool of staff to cover after hours’ incidents.
The Utilities Department recommends updating the water and wastewater utility division classifications to allow employees to be assigned to positions that properly align with their qualifications in a more efficient manner. Creating one series per classification, comprising four classes ranging from trainee level (0) up to journey level (III), establishes a clear career pathway through which employees can be promoted as they gain experience and relevant certifications, which aligns with the State’s requirements for a water or sewer system, the size of the City’s system. By obtaining the required licenses, certificates and experience, a new employee hired at the trainee level can be promoted as deemed appropriate, without the need for lengthy reclassification or vacancy processes. The streamlined process will result in improved employee morale and retention.
Employees who perform critical on-call work are required to hold specific licenses and state certifications. Current job specifications include no requirement to improve knowledge and skills beyond that required for the position held, consequently employees may currently opt to limit their development to a level which makes them ineligible for on-call work. This, in turn, limits the number of employees able to perform this critical service, increasing pressure on and affecting morale of qualified personnel. Effectively, there are less employees that are available to go on-call and more on-call shifts required of the eligible employees.
The proposed specifications include requirements for employees in the lower classes to obtain certifications within a specified period of time. By requiring continued staff development, the department will maintain a workforce of overall higher quality. Ultimately, the pool of employees eligible for performing on-call work will also be increased, improving efficiency and safety of operations.
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4 Under the current model, the application pool for any recruitment is limited by the classification of the vacancy. A vacancy for the entry level position of Maintenance Worker I/II generates applications from candidates with no or very limited experience. A vacancy for the higher-level classes of Water Treatment Plant Operator I/II, Water Distribution Operator I/II, Water Utilities Worker I/II, or Wastewater Collection Technician I/II, generates applications from candidates with some experience and certifications. If the department advertises to hire a higher-level class position, there may be no suitable candidates with the required experience and certifications, but if the department advertises for a Maintenance Worker, it may miss the opportunity to hire an excellent candidate who is an experienced technician.
With the updated staffing model, recruitments will invite applications for all four levels (0, I, II and III) in the relevant class series. A hiring manager can therefore anticipate receipt of applications from a broader range of candidates, with mixed experience and qualifications. A wider pool of applications will help alleviate challenges experienced in the hiring process and improve opportunities to hire candidates who are a good fit for the department. With regional comparable salaries and benefits at other agencies, hiring new employees within the I, II, and III classification has been a challenge for the Utilities Department over the last 3-5 years. To try and minimize the length of time positions remain vacant, the Department has underfilled these operator positions with maintenance worker positions.
Under the current classification system, moving employees from the maintenance worker classification to an operator classification has been difficult. Even more challenging is getting employees to move into the III classification and enter the on-call pool and this limits the number of employees that are available for responding to emergencies after hours.
The proposed model includes a separate, higher classification within each class which requires more advanced technical skills. Incumbents in these positions will be responsible for specialized duties, and promotion to these positions can occur only when there is a vacancy in that specific position. Some examples of the specialized duties for these positions are as follows:
• Water Distribution Operator III (A)
o Assistance in tasks associated with Capital Improvement Projects; preparation of shutdown plans and technical reports; implementation of the Unidirectional Flushing program.
• Water Treatment Plant Operator III (Shift)
o Assigned to a 48-hour shift, responsible for independently monitoring treatment plant processes and performance when supervisory staff are not on site. • Water Utilities Worker III (A)
o Management of division programs including Underground Service Alert, Leak detection and Advanced Metering Infrastructure connectivity. o Water meter testing and calibration
• Wastewater Collection Technician III (A)
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5 o Management of division programs including sewer lateral inspections, fats, oils and grease (FOG) inspection, and Underground Service Alert. o Managing data for state reports.
Different classification steps exist because water and sewer systems differ in complexity, risk, and operational needs. Tiered certification ensures that each operator is qualified for the specific system they operate, protecting public health, meeting legal requirements, and enabling efficient workforce management, including operator expertise or experience in areas that require specific technical knowledge.
FINANCIAL IMPACT
If approved, the additional salary and benefit costs associated with the proposed staffing model are projected at $143,957 for Fiscal Year 2026-27. Of this amount, $48,860 will be funded by the Wastewater Operating Fund (Fund 530) and $95,097 will be funded by the Water Operating Fund (Fund 520). This supports 14 employees and one currently vacant position within the water and wastewater divisions of 41 employees.
Implementation of the new staffing model will require appropriations of $48,860 in the Wastewater Operating Fund (Fund 530) and $95,097 in the Water Operating Fund (Fund 520) for Fiscal Year 2026-27. Sufficient funding is available within each fund to support the additional costs associated with the proposed staffing model.
ATTACHMENTS
1. Resolution No. 11651 - A Resolution Approving a New Staffing Model for the Water and Wastewater Divisions to Improve Operational Efficiencies in the Utilities Department and Appropriation of Funds
2. Current and Proposed Staffing Models
Respectfully Submitted,
Allison Garcia, Human Resources Director
06/23/2026 Item No.9.
Attachment 1
06/23/2026 Item No.9.
Resolution No. 11651
RESOLUTION NO. 11651
A RESOLUTION APPROVING A NEW STAFFING MODEL FOR THE WATER AND
WASTEWATER DIVISIONS TO IMPROVE OPERATIONAL EFFICIENCIES IN THE
UTILITIES DEPARTMENT AND APPROPRIATION OF FUNDS
WHEREAS, water and sewer operations are a 24-hour, 365-day essential service that require qualified and properly certified personnel to continuously monitor and operate essential system functions; and
WHEREAS, the department is currently experiencing staffing challenges that impact the ability to safely and efficiently fulfill these critical assignments; and WHEREAS, the department has proposed an updated staffing model that will improve workforce recruitment and sustainability, the ability to perform critical services, and operational efficiencies; and
WHEREAS, the City and the International Union of Operating Engineers - Stationary Engineers Local 39, have met and conferred in good faith and reached an agreement on the proposed updates; and
WHEREAS, the additional salary and benefit costs associated with the proposed staff model are projected to be $143,957 for Fiscal Year 2026-27 and of this amount, $48,860 will be funded by the Wastewater Operating Fund (Fund 530) and $95,097 will be funded by the Water Operating Fund (Fund 520); and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom approves the new staffing model for the Water and Wastewater Divisions to Improve Operational Efficiencies in the Utilities Department.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the Chief Financial Officer is authorized to appropriate $48,860 in the Wastewater Operating Fund (Fund 530) and $95,097 in the Water Operating Fund (Fund 520) for Fiscal Year 2026-27.
PASSED AND ADOPTED this 23rd day of June, 2026, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
__________________________________
Justin Raithel, MAYOR
ATTEST:
______________________________
Christa Freemantle, CITY CLERK
06/23/2026 Item No.9.
Attachment 2
06/23/2026 Item No.9.
Current Staffing Model
Water Utilities Worker III,
Water Distribution Operator III, Water
Treatment Plant Operator III,
Wastewater Collections Technician III
Water Utilities Worker I/II,
Water Distribution Operator I/II, Water
Treatment Plant Operator I/II,
Wastewater Collections Technician I/II
Maintenance Worker I/II
Proposed Staffing Model
Water Utilities Worker 0/I/II/III,
Water Distribution Operator 0/I/II/III,
Water Treatment Plant Operator 0/I/II/III,
Wastewater Collection Technician 0/I/II/III
Staff would move up in this staffing model
once certification and experience meet the
minimum qualifications for the class
Maintenance
Worker Class
Operator I/II
Class
Operator III
Class
Movement here can only occur if there is a vacancy or if a re-classification study is completed
06/23/2026 Item No.9.
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to facilitate double-sided printing
and minimize paper use.
06/23/2026 Item No.9.
Folsom City Council
Staff Report
1 MEETING DATE: 6/23/2026
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 11652 – A Resolution Authorizing the City Manager to Execute a Purchase Agreement with AllStar Fire Equipment Inc. for the Procurement of Structural Firefighting Protective Turnout Coats and Pants for a Total Not to Exceed Amount of $135,000
FROM: Fire Department
RECOMMENDATION / CITY COUNCIL ACTION
The Fire Department recommends that the City Council adopt Resolution No. 11652 – A Resolution Authorizing the City Manager to Execute a Purchase Agreement with AllStar Fire Equipment Inc. for the Procurement of Structural Firefighting Protective Turnout Coats and Pants for a Total Not to Exceed Amount of $135,000.
BACKGROUND / ISSUE
The Folsom Fire Department makes every effort to issue each member two complete sets of structural firefighting turnout gear (coat and pants) in accordance with NFPA 1851, Standard on Selection, Care, and Maintenance of Protective Ensembles for Structural Fire Fighting and Proximity Fire Fighting. Turnout gear has a maximum service life of ten (10) years from the date of manufacture, after which it must be retired from service regardless of condition. A significant portion of the Department’s current turnout inventory is at or approaching the end of its NFPA 1851 service life and must be replaced to maintain compliance and ensure that personnel are equipped with serviceable, properly fitting protective gear. In July 2022, the International Agency for Research on Cancer (IARC) classified occupational exposure as a firefighter as a Group 1 carcinogen on the basis of sufficient evidence linking the occupation to multiple cancers. Maintaining two sets of NFPA-compliant turnouts per firefighter, paired with on-scene gross decontamination and post-incident cleaning, is recognized as a key cancerPage 197 06/23/2026 Item No.10.
2 risk-reduction practice because it allows soiled gear to be removed from service after a working fire while keeping the firefighter outfitted with a clean second set. Procuring the thirty (30) sets requested in this action will allow the Department to replace gear reaching the end of its service life, maintain the two-set issuance standard, and outfit new and reassigned personnel.
POLICY / RULE
Section 2.36.080, Award of Contracts of the Folsom Municipal Code states, in part, that contracts for supplies, equipment, services, and construction with an estimated value of $77,426 or greater shall be awarded by City Council.
Section 2.36.140, Sole Source Procurement of the Folsom Municipal Code states prior to submitting a purchase request, the requesting department shall conduct a survey of available sources to determine whether there is only one (1) source for the required supply, equipment, service or construction item. Upon review and approval by the Purchasing Agent, the Finance Director and City Manager, a contract may be awarded without competition. The purchasing agent, or his/her designee, shall conduct negotiations, as appropriate, as to price, delivery and terms. The requesting department shall prepare a waiver of bid and submit it to the purchasing agent for filing with the city clerk. (Ord. 723 § 3 (part), 1991).
In accordance with Chapter 2.36.170 of the Folsom Municipal Code, the purchasing agent may enter into cooperative purchasing agreements with other public procurement units without following Sections 2.36.080, 2.36.090, and 2.36.100. These agreements can include joint or multiparty contracts or state contracts extended to the city.
ANALYSIS
Structural firefighting turnout gear is a critical element of personal protective equipment and is required for entry into immediately dangerous to life and health (IDLH) atmospheres. The specified Lion V-Force ensemble supports the following:
• Meets or exceeds NFPA 1971, Standard on Protective Ensembles for Structural Fire Fighting and Proximity Fire Fighting (current edition); • 7-ounce PBI Max outer shell paired with a CROSSTECH® Black moisture barrier, providing high thermal performance and durability for the call profile experienced by Department personnel, plus fluid penetration and viral barrier protection consistent with current best practices for biohazard exposure;
• Glide Ice™ face cloth on the thermal liner to reduce drag, improve donning and doffing speed, and reduce on-scene cardiovascular and thermal strain on the firefighter; and • Configured per Folsom Fire Department specification PSGQ33294, which standardizes panel layout, color, trim, pocket configuration, and reflective striping across the Department’s ensemble inventory to ensure consistency in training and field deployment.
06/23/2026 Item No.10.
3 Following an evaluation of available structural turnout ensembles, fitting trials, and field personnel feedback, staff recommends the continued issuance of the Lion V-Force structural firefighting ensemble configured to Folsom Fire Department specification PSGQ33294.
Key benefits of the Lion V-Force ensemble include the PBI Max outer shell’s superior heat and abrasion resistance relative to standard Nomex/Kevlar blends, the CROSSTECH® Black moisture barrier’s combined thermal protection and viral/fluid barrier performance, the Glide Ice™ liner’s reduction in metabolic load during interior operations, and full conformance to the Department’s existing PSGQ33294 specification so that newly issued ensembles are interoperable and visually identical to gear currently in service.
The Lion V-Force ensemble configured to Folsom specification PSGQ33294 is a proprietary product manufactured by LION Group, Inc., and the Department’s long-established regional supplier for this product is AllStar Fire Equipment, Inc. of Arcadia and Hayward, California.
Because the gear must conform to the existing Folsom specification already in service with Department personnel, and because Lion gear in this configuration is supplied in Northern California through AllStar Fire Equipment, the Fire Department recommends a waiver of bid pursuant to Folsom Municipal Code §2.36.140.
FINANCIAL IMPACT
If approved, the agreement with AllStar Fire Equipment, Inc. would be for an amount not to exceed $135,000. Sufficient funds are budgeted and available in the General Fund, Safety Equipment/Chemicals (Fund 0102221-6103004) for the cost of the agreement. The purchase agreement includes thirty (30) Lion V-Force structural firefighting turnout coats at $2,458.76 each, thirty (30) matched Lion V-Force turnout pants at $1,603.63 each, all configured per Folsom Fire Department specification PSGQ33294, plus California sales tax at 7.75%. The aggregate invoiced cost across the three referenced AllStar Fire Equipment documents is $131,316.76, with the not-to-exceed authorization of $135,000 providing approximately $3,683 in contingency for sizing replacements, accessory items, or measurement-related adjustments.
ENVIRONMENTAL REVIEW
This action is not considered a project under Section 15061(b)(3) of the California Environmental Quality Act Guidelines, and as such is exempt from environmental review.
ATTACHMENTS
1. Resolution No. 11652 - A Resolution Authorizing the City Manager to Execute a
06/23/2026 Item No.10.
4 Purchase Agreement with AllStar Fire Equipment Inc. for the Procurement of Structural Firefighting Protective Turnout Coats and Pants for a Total Not to Exceed Amount of $135,000
2. AllStar Fire Equipment Inc. quotes FFD041726-1 and FFD041726-2 Submitted,
Jason Solak, Fire Chief
06/23/2026 Item No.10.
Attachment 1
Resolution No. 11652 - A Resolution Authorizing the City Manager to Execute a Purchase Agreement with AllStar Fire Equipment Inc. for the Procurement of Structural Firefighting Protective Turnout Coats and Pants for a Total Not to Exceed Amount of $135,000
06/23/2026 Item No.10.
Resolution No. 11652
RESOLUTION NO. 11652
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
PURCHASE AGREEMENT WITH ALLSTAR FIRE EQUIPMENT INC. FOR THE
PROCUREMENT OF STRUCTURAL FIREFIGHTING PROTECTIVE TURNOUT COATS AND PANTS FOR THE TOTAL NOT TO EXCEED AMOUNT OF $135,000 WHEREAS, the Folsom Fire Department makes every effort to issue each member two complete sets of structural firefighting turnout gear in accordance with NFPA 1851; and WHEREAS, turnout gear has a maximum service life of 10 years from the date of manufacture, after which it must be retired from service regardless of condition; and WHEREAS, procuring the 30 sets requested will allow the Department to replace gear reaching the end of its service life, maintain the two-set issuance standard, and outfit new and reassigned personnel; and
WHEREAS, the Lion V-Force ensemble configured to Folsom specification PSGQ33294 is a proprietary product manufactured by LION Group, Inc., and the Department’s long-established regional supplier for this product is AllStar Fire Equipment, Inc.; and WHEREAS, the 30 replacement turnouts purchase agreement total does not exceed the amount of $135,000 providing approximately $3,683 in contingency; and WHEREAS, sufficient funds are budgeted and available in the General Fund, Safety Equipment/Chemicals (Fund 0102221-6103004); and
WHEREAS, the agreement will be in a form acceptable to the City Attorney; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute a purchase agreement with AllStar Fire Equipment Inc. for replacement turnouts for a total not to exceed amount of $135,000.
PASSED AND ADOPTED this 23rd day of June 2026, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
___________________________________
Justin Raithel, MAYOR
ATTEST:
____________________________________
Christa Freemantle, CITY CLERK
06/23/2026 Item No.10.
Attachment 2
AllStar Fire Equipment Inc. quotes FFD041726-1 and FFD041726-2
06/23/2026 Item No.10.
Log Number:
CONFIRMATION
12328 Lower Azusa Road 2613 Barrington Court FFD041726-1 Arcadia, CA 91006 Hayward, CA 94545 Written By
(626) 652-0900 (510) 887-6295 John Murphy
Folsom Fire Department Ship To: Same
535 Glenn Drive Attn: Aaron Hill
Folsom, CA. 95630
Phone: Email:
Date Date Required Cust. Order # Tax Exempt # Terms F.O.B. Salesperson Ship Via Quantity U/M AllStar Cost Price Amount
5 EA 2,458.76 12,293.80
5 EA 1,603.63 8,018.15
Subtotal $20,311.95
Sales Tax 7.750% $1,574.18
Freight $0.00
Total $21,886.13
Bill To:
4/17/2026 Email Aaron Net 30 Drop Ship
Lion V-Force Turnout Coat. PBI Max, 7 oz,
Traditional Liner, Glide Ice™ face cloth.
CROSSTECH® BLACK Moisture Barrier, Color
Black, Per Folsom Spec PSGQ33294
Description
Lion V-Force Turnout Pants. PBI Max, 7 oz,
Traditional Liner, Glide Ice™ face cloth.
CROSSTECH® BLACK Moisture Barrier, Color
Black, Per Folsom Spec PSGQ33294
Destination Cassandra
Vendor: Lion P. O. #
06/23/2026 Item No.10.
Log Number:
CONFIRMATION
12328 Lower Azusa Road 2613 Barrington Court FFD041726-2 Arcadia, CA 91006 Hayward, CA 94545 Written By
(626) 652-0900 (510) 887-6295 John Murphy
Folsom Fire Department Ship To: Same
535 Glenn Drive Attn: Aaron Hill
Folsom, CA. 95630
Phone: Email:
Date Date Required Cust. Order # Tax Exempt # Terms F.O.B. Salesperson Ship Via Quantity U/M AllStar Cost Price Amount
25 EA 2,458.76 61,469.00
25 EA 1,603.63 40,090.75
Subtotal $101,559.75
Sales Tax 7.750% $7,870.88
Freight $0.00
Total $109,430.63
Vendor: Lion P. O. #
Drop Ship
Lion V-Force Turnout Coat. PBI Max, 7 oz,
Traditional Liner, Glide Ice™ face cloth.
CROSSTECH® BLACK Moisture Barrier, Color
Black, Per Folsom Spec PSGQ33294
Description
Lion V-Force Turnout Pants. PBI Max, 7 oz,
Traditional Liner, Glide Ice™ face cloth.
CROSSTECH® BLACK Moisture Barrier, Color
Black, Per Folsom Spec PSGQ33294
Email Aaron Net 30 Destination Cassandra
Bill To:
4/17/2026
06/23/2026 Item No.10.
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to facilitate double-sided printing
and minimize paper use.
06/23/2026 Item No.10.
Folsom City Council
Staff Report
1 MEETING DATE: 6/23/2026
AGENDA SECTION: Consent Calendar
SUBJECT: Consideration of Side Letters of Agreement Between the City of Folsom and the Folsom Police Officers Association (FPOA) i. Resolution No. 11653 – A Resolution Authorizing the City Manager to Execute a Side Letter of Agreement Between the City of Folsom and the FPOA Regarding Union Bank Time
ii. Resolution No.11654– A Resolution Authorizing the City Manager to Execute a Side Letter of Agreement Between the City of Folsom and the FPOA Regarding Salary Schedule
FROM: Human Resources Department
RECOMMENDATION / CITY COUNCIL ACTION
The Human Resources Director recommends that the City Council pass and adopt the following resolutions:
i. Resolution No.11653– A Resolution Authorizing the City Manager to Execute a Side Letter of Agreement Between the City of Folsom and the FPOA Regarding Union Bank Time
ii. Resolution No. 11654– A Resolution Authorizing the City Manager to Execute a Side Letter of Agreement Between the City of Folsom and the FPOA Regarding Salary Schedule
BACKGROUND / ISSUE
The City of Folsom and the Folsom Police Officers Association (FPOA) had a meet and confer in good faith to execute two Side Letters to clarify and update provisions in the current Memorandum of Understanding (MOU), effective January 1, 2026, through December 31, 2028.
The first Side Letter streamlines administrative procedures governing the use of Union Bank Time. It removes the requirement for the FPOA President or designee to approve, fill out and submit a leave request slip for all employees using the Union Bank Time, and clarifies that hours drawn from the Union Bank shall be applied to the employee’s Personal Leave Time
06/23/2026 Item No.11.
2 (PLT) on an hour-for-hour basis. Additionally, any Personal Leave Time (PLT) earned by a member will be subject to the terms set forth in Article X, Section F of the FPOA MOU.
The second Side Letter corrects discrepancies in salary step 11 for the Police Records Supervisor, Police Records Technician, Police Volunteer Coordinator classifications, as well as salary step 7 for the Animal Control Officer classifications within the Police Department.
We have also added the Senior Police Records Technician classification which was inadvertently omitted from the FPOA Memorandum of Understanding.
POLICY / RULE
Government Code Title 1, Division 4, Chapter 10, commonly known as the Meyers-MiliasBrown Act (MMBA), requires public agencies to meet and confer in good faith with recognized employee organizations regarding wages, hours, and other terms and conditions of employment.
The proposed side letters were negotiated in accordance with the MMBA and incorporate language consistent with CalPERS regulations.
ANALYSIS AND FINANCIAL IMPACT
The first Side Letter updates Union Bank Time and removes a procedural requirement governing the use of Union Bank hours. There is no financial impact associated with this action.
The second Side Letter revises Salary Schedule. The salary and benefit impact associated with the step realignment for the Police Records Supervisor, Police Records Technician, Police Volunteer Coordinator, and Animal Control Officer classifications is minimal. The annual increase in salaries for FY 26/27 is approximately $1,031, with a total annual cost of approximately $1,723, including associated benefits. Existing departmental appropriations are sufficient to absorb these costs; therefore, no additional budget appropriation is required.
ATTACHMENTS
1. Resolution No. 11653– A Resolution Authorizing the City Manager to Execute a Side Letter of Agreement Between the City of Folsom and the FPOA Regarding Union Bank Time
2. Side Letter of Agreement Between the City of Folsom and the FPOA Regarding Union Bank Time
3. Resolution No. 11654– A Resolution Authorizing the City Manager to Execute a Side Letter of Agreement Between the City of Folsom and the FPOA Regarding Salary Schedule
4. Side Letter of Agreement Between the City of Folsom and the FPOA Regarding Salary Schedule
5. Revised FPOA Salary Schedule
06/23/2026 Item No.11.
3 Submitted,
Allison Garcia, Human Resources Director
06/23/2026 Item No.11.
Attachment 1
06/23/2026 Item No.11.
Resolution No. 11653
RESOLUTION NO. 11653
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A SIDE
LETTER OF AGREEMENT BETWEEN THE CITY OF FOLSOM AND THE FOLSOM
POLICE OFFICERS ASSOCIATION REGARDING UNION BANK TIME
WHEREAS, the City of Folsom (the “City”) and the Folsom Police Officers Association (FPOA) are parties to a Memorandum of Understanding (MOU) with a term beginning January 1, 2026, and ending December 31, 2028; and
WHEREAS, the City and FPOA have met and conferred in good faith in accordance with the Meyers-Milias-Brown Act (MMBA) concerning the terms and conditions of employment; and WHEREAS, the Parties have mutually agreed to amend Article IV, Section A.2 and Section A.3 of the MOU to reflect a procedural change regarding the use of Union Bank Time; and
WHEREAS, the amended Union Bank Time provides that:
• An FPOA member earning Union Bank Time will submit a Time-Off Earned Form approved by the FPOA President or Designee with their appropriate Time Sheet. The hours earned by the FPOA member will be deducted from the FPOA Union Bank and applied to the employee’s Personal Leave Time (PLT) Bank on an hour for hour basis; and
• Any PLT earned by a member will be subject to the terms set forth in Article X, Section F of this agreement.
WHEREAS, this Side Letter memorializes the agreement between the Parties and supersedes all prior discussions or agreements related to Union Bank Time, while the remainder of the MOU remains in full force and effect;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom approves the Side Letter of Agreement with the Folsom Police Officers Association regarding the Union Bank Time; and
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council authorizes the City Manager to execute said Side Letter of Agreement.
06/23/2026 Item No.11.
Resolution No. 11653
PASSED AND ADOPTED this 23rd day of June 2026, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
Justin Raithel, MAYOR
ATTEST:
_____________________________________
Christa Freemantle, CITY CLERK
06/23/2026 Item No.11.
Attachment 2
06/23/2026 Item No.11.
Side Letter Agreement between
City of Folsom
and
Folsom Police Officers Association
Regarding Union Bank Time
The City of Folsom (hereinafter referred to as “City'") and the Folsom Police Officers Association (hereinafter referred to as "FPOA") entered into a Memorandum of Understanding ("MOU") with a term beginning on January l, 2026, and terminating on December 31, 2028. The City and FPOA are collectively referred to herein as the "'Parties." The Parties mutually agree to amend Article IV, Section A, of the Memorandum of Understanding ("MOU") between the parties and replace with the following:
A. Union Bank Time:
1. Employees in the bargaining unit may, but not required to, donate accrued Annual Leave, or Holiday Leave in no less than one-half (.5) hour increments, into a bank of hours from which designated FPOA representatives may draw time for the purposes of conducting association business, including but not limited to, training programs and seminars. Donated time will be transferred from the donating employee’s accrued Annual Leave or Holiday Leave to the Union Bank as a one-time donation or from Annual Leave on a regular basis each pay period.
2. An FPOA member earning Union Bank Time will submit a Time-Off Earned Form approved by the FPOA President or Designee with their appropriate Time Sheet. The hours earned by the FPOA member will be deducted from the FPOA Union Bank and applied to the employee’s Personal Leave Time (PLT) Bank on an hour for hour basis.
3. Any PLT earned by a member will be subject to the terms set forth in Article X, Section F of this agreement.
The Parties have satisfied their obligations to meet and confer in good faith in accordance with the MeyersMilias-Brown Act (“MMBA") concerning the terms and conditions of this Agreement and its implementation.
This Side Letter memorializes and constitutes the entire agreement between the parties as to all matters referred to and included herein and supersedes and replaces all prior negotiations, proposed discussion, whether written or oral. The MOU shall remain in full force and effect except as specifically modified in this Side Letter.
This Agreement will remain in effect unless it is modified through further negotiations in accordance with the MMBA. This Agreement is executed by the following authorized representatives of each party.
City of Folsom FPOA
Bryan Whitemyer, City Manager Paul Rice, President
Date Date
06/23/2026 Item No.11.
Attachment 3
06/23/2026 Item No.11.
Resolution No. 11654
RESOLUTION NO. 11654
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A SIDE
LETTER OF AGREEMENT BETWEEN THE CITY OF FOLSOM AND THE FOLSOM
POLICE OFFICERS ASSOCIATION REGARDING SALARY SCHEDULE
WHEREAS, the City of Folsom (the “City”) and the Folsom Police Officers Association (FPOA) are parties to a Memorandum of Understanding (MOU) with a term beginning January 1, 2026, and ending December 31, 2028; and
WHEREAS, the City and FPOA have met and conferred in good faith in accordance with the Meyers-Milias-Brown Act (MMBA) concerning the terms and conditions of employment; and WHEREAS, the Parties have mutually agreed to amend the salary step amounts for the classifications of Police Records Supervisor, Police Records Technician, Police Volunteer Coordinator, and Animal Control Officer, including salary and benefits adjustments for the impacted employees; and
WHEREAS, this Side Letter memorializes the agreement between the Parties and supersedes all prior discussions or agreements related to salary schedule, while the remainder of the MOU remains in full force and effect;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom approves the Side Letter of Agreement with the Folsom Police Officers Association regarding the Salary Schedule; and
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council authorizes the City Manager to execute said Side Letter of Agreement.
PASSED AND ADOPTED this 23rd day of June 2026, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
Justin Raithel, MAYOR
ATTEST:
_____________________________________
Christa Freemantle, CITY CLERK
06/23/2026 Item No.11.
Attachment 4
06/23/2026 Item No.11.
Side Letter Agreement between
City of Folsom
and
Folsom Police Officers Association
Regarding Salary Schedule
The City of Folsom (hereinafter referred to as “City'") and the Folsom Police Officers Association (hereinafter referred to as "FPOA") entered into a Memorandum of Understanding ("MOU") with a term beginning on January l, 2026, and terminating on December 31, 2028. The City and FPOA are collectively referred to herein as the "'Parties."
Purpose
The purpose of this side letter is to formalize the corrected salary ranges and to authorize the necessary payroll adjustments to ensure that affected employees are compensated in accordance with the established salary schedule.
The Parties have identified misalignment in the salary step plan for the following four classifications:
Police Records Supervisor (51P), Police Records Technician (33P), Police Volunteer Coordinator (51P) and Animal Control Officer (51P).
The Parties mutually agree to revise the salary ranges to incorporate a 2.5% step increment between salary steps, as set forth in Attachment A, and to adjust salary and benefits of impacted employees.
The Parties have satisfied their obligations to meet and confer in good faith in accordance with the MeyersMilias-Brown Act (“MMBA") concerning the terms and conditions of this Agreement and its implementation.
This Side Letter memorializes and constitutes the entire agreement between the parties as to all matters referred to and included herein and supersedes and replaces all prior negotiations, proposed discussion, whether written or oral. The MOU shall remain in full force and effect except as specifically modified in this Side Letter.
This Agreement will remain in effect unless it is modified through further negotiations in accordance with the MMBA. This Agreement is executed by the following authorized representatives of each party.
City of Folsom FPOA
Bryan Whitemyer, City Manager Paul Rice, President
Date Date
06/23/2026 Item No.11.
Attachment 5
06/23/2026 Item No.11.
Effective UNIT Classification Title Sch Range Salary 1 2 3 4 5 6 7 8 9 10 11 12 13 1/1/2026 FPOA Police Records Technician B 33P Annual 52,545 53,859 55,205 56,585 58,000 59,450 60,936 62,460 64,021 65,622 67,262 67,542 69,231 1/1/2026 FPOA Police Records Supervisor B 51P Annual 64,912 66,535 68,199 69,904 71,651 73,442 75,278 77,160 79,089 81,067 83,093 83,434 85,520 1/1/2026 FPOA Police Volunteer Coord B 51P Annual 64,912 66,535 68,199 69,904 71,651 73,442 75,278 77,160 79,089 81,067 83,093 83,434 85,520 1/1/2026 FPOA Animal Control Officer A/B 47P Annual 61,307 64,411 66,021 67,671 69,363 71,097 72,875 74,696 76,564 78,478 80,440 82,742 84,811 Effective UNIT Classification Title Sch Range Salary 1 2 3 4 5 6 7 8 9 10 11 12 13 1/1/2026 FPOA Senior Police Records Technician B 40P Annual 55,504 56,892 59,722 59,773 61,267 62,798 64,368 65,977 67,627 69,317 71,827 72,827 74,647 1/1/2026 FPOA Police Records Technician B 33P Annual 51,477 52,764 54,083 55,435 56,821 58,242 59,698 61,190 62,720 64,288 65,895 67,542 69,231 1/1/2026 FPOA Police Records Supervisor B 51P Annual 63,589 65,178 66,808 68,478 70,190 71,945 73,743 75,587 77,477 79,413 81,399 83,434 85,520 1/1/2026 FPOA Police Volunteer Coord B 51P Annual 63,589 65,178 66,808 68,478 70,190 71,945 73,743 75,587 77,476 79,413 81,399 83,434 85,520 1/1/2026 FPOA Animal Control Officer A/B 47P Annual 63,062 64,638 66,254 67,911 69,608 71,349 73,132 74,961 76,835 78,755 80,724 82,742 84,811 Effective UNIT Classification Title Sch Range Salary 1 2 3 4 5 6 7 8 9 10 11 12 13 1/1/2027 FPOA Police Records Technician B 33P Annual 54,121 55,474 56,861 58,283 59,740 61,233 62,764 64,333 65,942 67,590 69,280 69,569 71,308 1/1/2027 FPOA Police Records Supervisor B 51P Annual 66,860 68,531 70,245 72,001 73,801 75,646 77,537 79,475 81,462 83,499 85,586 85,937 88,085 1/1/2027 FPOA Police Volunteer Coord B 51P Annual 66,860 68,531 70,245 72,001 73,801 75,646 77,537 79,475 81,462 83,499 85,586 85,937 88,085 1/1/2027 FPOA Animal Control Officer A/B 47P Annual 63,146 66,343 68,001 69,701 71,444 73,230 75,061 76,937 78,861 80,832 82,853 85,225 87,355 Effective UNIT Classification Title Sch Range Salary 1 2 3 4 5 6 7 8 9 10 11 12 13 1/1/2027 FPOA Senior Police Records Technician B 40P Annual 57,170 58,599 60,064 61,565 63,105 64,682 66,299 67,957 69,656 71,397 73,182 75,011 76,887 1/1/2027 FPOA Police Records Technician B 33P Annual 53,021 54,347 55,706 57,098 58,526 59,989 61,489 63,026 64,601 66,216 67,872 69,569 71,308 1/1/2027 FPOA Police Records Supervisor B 51P Annual 65,496 67,134 68,812 70,532 72,296 74,103 75,956 77,855 79,801 81,796 83,841 85,937 88,085 1/1/2027 FPOA Police Volunteer Coord B 51P Annual 65,496 67,134 68,812 70,532 72,296 74,103 75,956 77,854 79,801 81,796 83,841 85,937 88,085 1/1/2027 FPOA Animal Control Officer A/B 47P Annual 64,954 66,577 68,242 69,948 71,697 73,489 75,326 77,209 79,140 81,118 83,146 85,225 87,355 Effective UNIT Classification Title Sch Range Salary 1 2 3 4 5 6 7 8 9 10 11 12 13 1/1/2028 FPOA Police Records Technician B 33P Annual 55,745 57,139 58,567 60,031 61,532 63,070 64,647 66,263 67,920 69,618 71,358 71,656 73,447 1/1/2028 FPOA Police Records Supervisor B 51P Annual 68,866 70,587 72,352 74,161 76,015 77,915 79,863 81,860 83,906 86,004 88,154 88,515 90,728 1/1/2028 FPOA Police Volunteer Coord B 51P Annual 68,866 70,587 72,352 74,161 76,015 77,915 79,863 81,860 83,906 86,004 88,154 88,515 90,728 1/1/2028 FPOA Animal Control Officer A/B 47P Annual 65,040 68,333 70,041 71,792 73,587 75,427 77,313 79,245 81,227 83,257 85,339 87,782 89,976 Effective UNIT Classification Title Sch Range Salary 1 2 3 4 5 6 7 8 9 10 11 12 13 1/1/2028 FPOA Senior Police Records Technician B 40P Annual 58,885 60,357 61,866 63,412 64,998 66,623 68,288 69,995 71,745 73,539 75,377 77,262 79,193 1/1/2028 FPOA Police Records Technician B 33P Annual 54,612 55,977 57,377 58,811 60,281 61,788 63,333 64,917 66,539 68,203 69,908 71,656 73,447 1/1/2028 FPOA Police Records Supervisor B 51P Annual 67,461 69,148 70,876 72,648 74,465 76,326 78,234 80,190 82,195 84,250 86,356 88,515 90,728 1/1/2028 FPOA Police Volunteer Coord B 51P Annual 67,461 69,148 70,876 72,648 74,464 76,326 78,234 80,190 82,195 84,250 86,356 88,515 90,728 1/1/2028 FPOA Animal Control Officer A/B 47P Annual 66,902 68,575 70,289 72,046 73,848 75,694 77,586 79,526 81,514 83,552 85,640 87,782 89,976
CURRENT SCHEDULE
PROPOSED SCHEDULE
PROPOSED SCHEDULE
CITY OF FOLSOM SALARY SCHEDULE - EFFECTIVE 1/1/2026
CITY OF FOLSOM SALARY SCHEDULE - EFFECTIVE 1/1/2027
CITY OF FOLSOM SALARY SCHEDULE - EFFECTIVE 1/1/2028
CURRENT SCHEDULE
PROPOSED SCHEDULE
CURRENT SCHEDULE
06/23/2026 Item No.11.
Folsom City Council
Staff Report
1 MEETING DATE: 6/23/2026
AGENDA SECTION: Consent Calendar
SUBJECT: Resolution No. 11655 – A Resolution Electing the Population and Inflation Factors and Establishing the Fiscal Year 2026-27 Appropriations Limit
FROM: Finance Department
RECOMMENDATION / CITY COUNCIL ACTION
It is recommended that the City Council adopt Resolution No. 11655 – A Resolution Electing the Population and Inflation Factors and Establishing the Fiscal Year 2026-27 Appropriations Limit.
BACKGROUND / ISSUE
The Gann Spending Limitation Initiative (Article XIII B of the State Constitution) adopted as Proposition 4 in June 1979 (and subsequently modified by Proposition 111 in June 1990), requires the City to annually adopt a resolution setting an appropriations limit for the upcoming fiscal year. The Gann Spending Limitation was intended to provide citizen control of government spending and taxation.
The appropriations limit establishes the maximum amount of tax proceeds that may be appropriated each fiscal year. The appropriations limit is adjusted annually based on population and inflation factors provided by the California Department of Finance.
POLICY / RULE
California Government Code, Section 7910 (a) provides that “each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit and make other necessary determinations for the following fiscal year pursuant to Article XIII B of the California Constitution at a regularly scheduled meeting or noticed special meeting….”
06/23/2026 Item No.12.
2 California Constitution, Article XIIIB, Sec. 1 states: “The total annual appropriations subject to limitation of the State and of each local government shall not exceed the appropriations limit of the entity of government for the prior year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article.
ANALYSIS
Information from the California Department of Finance regarding population and per capita personal income has now been received and the calculation for the Gann Spending Limitation is attached. Establishment of the Fiscal Year 2026-27 Appropriations Limit (“Gann Limit”) is necessary to comply with Article XIIIB of the California Constitution.
The Gann Limit restricts the amount of revenue classified as proceeds of taxes that may be appropriated in any fiscal year by a government entity. Certain appropriations are excluded from the limitation, including transfers, capital outlay expenditures, and debt service payments.
The formula for calculating the appropriations limit is based upon Fiscal Year 1978-79 “base year” revenues.
The appropriations limit is adjusted annually based upon the percentage change in California per capita personal income (4.95%) and the percentage change in population (2.47%). The California Department of Finance estimated the total population for the City of Folsom as of January 1, 2026, at 95,680 and, after deducting prison population, estimated the population at 90,825.
The maximum allowable appropriations subject to limitation for Fiscal Year 2026-27 is $165,472,587. Based on the Fiscal Year 2026-27 Operating Budget and Capital Improvement Plan adopted by the City Council on June 9, 2026, and after applicable exclusions, appropriations subject to the limitation total $95,751,312, which is $69,721,275 below the allowable limit.
ATTACHMENTS
1. Resolution No. 11655 – A Resolution Electing the Population and Inflation Factors and Establishing the Fiscal Year 2026-27 Appropriations Limit
2. Gann Appropriations Limit for Fiscal Year 2026-27
Submitted,
___________________________
Stacey Tamagni, Finance Director/CFO
06/23/2026 Item No.12.
Attachment 1
06/23/2026 Item No.12.
Resolution No. 11655
RESOLUTION NO. 11655
A RESOLUTION ELECTING THE POPULATION AND INFLATION FACTORS AND ESTABLISHING THE FISCAL YEAR 2026-27 APPROPRIATIONS LIMIT WHEREAS, Government Code Section 7910 requires the City Council to establish its appropriations limit by resolution and approve the inflation and population factors used in the calculation of the limit; and
WHEREAS, the California Department of Finance has provided the population and inflation factors applicable to the Fiscal Year 2026-27 appropriations limit calculation; and WHEREAS, the Fiscal Year 2026-27 Operating Budget and Capital Improvement Plan includes appropriations subject to limitation that have been calculated using the City population growth factor of
2.47% and the California per capita personal income change factor of 4.95%, as determined by the State of California Department of Finance; and
WHEREAS, the documentation used in the determination of the appropriations limit has been available to the public in the City Clerk’s Office for fifteen days prior to the meeting; and WHEREAS, the City of Folsom’s appropriations limit for the Fiscal Year 2026-27 is calculated to be $165,472,587.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom hereby approves and establishes the Fiscal Year 2026-27 Gann Appropriations Limit in the amount of $165,472,587.
PASSED AND ADOPTED this 23rd day of June 2026, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSTAIN: Councilmember(s):
ABSENT: Councilmember(s):
______________________________
Justin Raithel, MAYOR
ATTEST:
_____________________________
Christa Freemantle, CITY CLERK
06/23/2026 Item No.12.
ATTACHMENT 2
Gann Appropriations Limit for Fiscal Year 2026-27
06/23/2026 Item No.12.
RESOURCES APPROPRIATIONS
PROCEEDS OF TAXES SUBJECT TO LIMITATIONS:
Property Taxes $ 49,194,001
Sales Taxes 28,272,696
Special Taxes 4,710,000
State Subventions 11,762,085
Franchise Taxes 408,400
Business Licenses 903,475
TOTAL PROCEEDS OF TAXES $ 95,250,657 $ 95,250,657
Interest Income 500,655 500,655
TOTAL SUBJECT TO LIMITATIONS $ 95,751,312 $ 95,751,312
NON-PROCEEDS OF TAXES NOT SUBJECT TO LIMITATIONS:
$ 27,912,652
20,685,257 Special Revenue Funds
23,967,595 Capital Project Funds
62,156,303 Enterprise Funds
27,886,639 Internal Service Funds
23,571,029 Trust Funds
- Miscellaneous General Funds
186,179,475 186,179,475
TOTAL ALL RESOURCES $ 281,930,787 $ 281,930,787
Maximum allowable appropriation subject to limitations 2026-2027 fiscal year $165,472,587 Less: Total appropriation subject to limitation for 2026-2027 fiscal year (95,751,312) BALANCE UNDER ARTICLE XIIIB LIMIT: $ 69,721,275
General Fund not financed
with proceeds of taxes
TOTAL NON-PROCEEDS OF ALL
TAXES
06/23/2026 Item No.12.
Folsom City Council
Staff Report
1 MEETING DATE: 6/23/2026
AGENDA SECTION: Consent Calendar
ITEM TITLE: Resolution No. 11660 – A Resolution Authorizing the City Manager to Execute an Agreement with USALCO, LLC for $407,750 from the Water Operating Fund (Fund 520) for the Purchase of Chemicals for the Water Treatment Plant and Approval of the Associated Waiver of Bid
FROM: Utilities Department
RECOMMENDATION / CITY COUNCIL ACTION
The Utilities Department recommends the City Council pass and adopt Resolution No. 11660 – A Resolution Authorizing the City Manager to Execute an Agreement with USALCO, LLC for $407,750 from the Water Operating Fund (Fund 520) for the Purchase of Chemicals for the Water Treatment Plant and Approval of the Associated Waiver of Bid.
BACKGROUND / ISSUE
The City of Folsom’s Water Treatment Plant (WTP) utilizes surface water from Folsom Lake for water supply. The WTP is designed to produce 50 million gallon per day (mgd) of potable water. The treatment processes include rapid mix, pretreatment with a conventional flocculation and sedimentation basin, and an Actiflo system for high rate clarification, a conventional sand/anthracite dual media filter, and solids handling facilities. In order to be consistent with State regulatory requirements and industry best management practices, the City uses a variety of chemicals to aid in the treatment process listed above. These chemicals are vital to these treatment processes.
Several of the chemicals used at the WTP have specific and proprietary properties that necessitate the City to contract directly with a company that can provide these chemicals to meet the City’s water treatment requirements. These chemicals include:
Aluminum Chlorohydrate (ACH) Primary Coagulant
Dry Anionic Polymer
Dry Non-ionic Polymer
Liquid Cationic Polymer
06/23/2026 Item No.13.
2 Liquid Anionic Polymer
Phos Acid (orthophosphate)
This resolution will authorize the City Manager to approve a waiver of bid and execute an agreement with USALCO, LLC for the purchase of chemicals for use at the Water Treatment Plant.
POLICY / RULE
In accordance with Chapter 2.36 of the Folsom Municipal Code, supplies, equipment, services, and construction with a value of $77,426 or greater shall be awarded by City Council.
Section 2.36.140 of the Folsom Municipal Code states, in part, that when the requesting department determines there is only 1 source for the required supply, with approval of the City Manager, the requesting department shall prepare a waiver of bid and a contract shall be awarded without competition.
ANALYSIS
When using coagulants, raw water properties can have a significant effect on the type of coagulant to use in the treatment process. These properties include alkalinity, water temperature, turbidity and filterability. These raw water quality properties are very different depending on the time of year, weather events such as storms and snow melt, and Folsom Lake turnover. Changes in the incoming raw water quality will affect settling rates in filters, sludge production, required chemical dosages, and pretreatment turbidity which can all impact the water quality of the treated water. In addition, City staff operates a conventional flocculation and sedimentation basin, a high rate Actiflo flocculation system, and a solids handling system that require specific chemical additions to properly treat the water.
Using a polymer that can handle the wide range of water properties entering the WTP is important to the treatment operators to maintain consistent water quality.
The current chemicals used by the City in the treatment process are very successful in providing high water quality for the City’s water customers. In order to maintain current water quality standards, any new chemicals must also meet these standards. In order to ensure any new chemicals would be able to meet these standards, the City would have to perform various analytical tests to confirm the new polymer’s ability to perform in a variety of conditions. The process for testing in all seasons of the year, after storm events, during snow melt, and high alkalinity water would be at least a year long process.
In addition to the analytical testing, the City operators would need to inform and follow the State Water Resources Control Board, Division of Drinking Water (DDW) requirements to confirm that changing chemicals would not adversely affect the water quality produced. A year long trial period to confirm the polymer performance, as well as a contingency plan, would be required by DDW.
Furthermore, the City has used specific proprietary chemicals from NTU Technologies, Inc. (NTU) at the WTP for many years, and consistently received quality product and good customer service. In November 2025, NTU officially merged with USALCO, LLC. With the change in organization, USALCO, LLC brought the whole staff from NTU to their company and so continues to supply the same quality of product, customer service, and quick 24 hour response to any problems, as previously experienced.
06/23/2026 Item No.13.
3 WTP staff contacted five water providers in the area, including San Juan Water District, Placer County Water Agency, El Dorado Irrigation District, City of Roseville and City of West Sacramento to discuss chemical purchasing and usage. Through these discussions with other water providers in the area, it became clear that treatment process, water supply, quantity of chemicals purchased, chemical equipment, storage available, and chemical dose all affected which polymer was used at a specific plant. There was no correlation to directly compare polymer usage and pricing.
The table below shows costs for chemicals that Utilities Department staff estimate will be used during fiscal year 2026-27:
The Utilities Department recommends approval of a waiver of bid and requests that the City Council authorize the City Manager to execute an agreement with USALCO, LLC for the purchase of chemicals for the Water Treatment Plant for an amount not to exceed $407,750.
FINANCIAL IMPACT
If approved, the agreement with USALCO, LLC for the purchase of chemicals for the Water Treatment Plant for the not to exceed amount of $407,750 would be funded through the Water Operating Fund (Fund 520). Sufficient funds are budgeted and available in the Water Operating Fund (Fund 520) in Fiscal Year 2026-27 for this agreement.
ENVIRONMENTAL REVIEW
This action is exempt from environmental review under the California Environmental Quality Act (CEQA).
ATTACHMENTS
1. Resolution No. 11660 – A Resolution Authorizing the City Manager to Execute an Agreement with USALCO, LLC for $407,750 from the Water Operating Fund (Fund 520) for the Purchase of Chemicals for the Water Treatment Plant and Approval of the Associated Waiver of Bid
2. Quote from USALCO, LLC
Chemical FY 24-25
$/lb
FY25-26
$/lb
FY26-27
$/lb
Est. cost for
FY 26-27
Aluminum Chlorohydrate,
ACH (Primary) $0.64 $0.69 $0.73 $250,000
Dry Anionic Polymer $3.56 $3.61 $3.68 $60,000
Dry Non-Ionic Polymer $4.30 $4.36 $4.41 $7,750
Liquid Cationic Polymer $2.33 $2.39 $2.44 $10,200
Liquid Anionic Polymer $2.13 $2.16 $2.20 $44,800
Phosphoric Acid $0.78 $0.78 $0.78 $35,000
Fiscal Year Total $ 407,750
06/23/2026 Item No.13.
4 3. Waiver of Bid for USALCO, LLC
Submitted,
Marcus Yasutake, Director
UTILITIES DEPARTMENT
06/23/2026 Item No.13.
Attachment 1
06/23/2026 Item No.13.
Resolution No. 11660
RESOLUTION NO. 11660
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH USALCO, LLC FOR $407,750 FROM THE WATER OPERATING FUND (FUND 520) FOR THE PURCHASE OF CHEMICALS FOR THE WATER
TREATMENT PLANT AND APPROVAL OF THE ASSOCIATED WAIVR OF BID WHEREAS, the City identifies that the purchase is critical to ensuring the treatment of high quality water to be delivered to all customers; and WHEREAS, the City of Folsom has identified this purchase as a priority to maintain the integrity and operation of the water treatment system; and WHEREAS, for many years, the City of Folsom has purchased chemicals from NTU Technologies, Inc. that are specific and proprietary with unique chemical blends optimal for the City’s treatment process, requiring the City purchase these chemicals through a sole source procurement process; and
WHEREAS, the chemicals have proven to provide high water quality with the City’s unique treatment process and variety of incoming water properties; and WHEREAS, in November 2025, NTU Technologies, Inc. officially merged with USALCO, LLC and continued to supply the same quality of product and customer service previously experienced; and
WHEREAS, the Utilities Department has prepared a sole source waiver of bid for USALCO, LLC; and
WHEREAS, sufficient funds have been budgeted and are available in the Water Operating Fund (Fund 520); and
WHEREAS, the agreement will be in a form acceptable to the City Attorney:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute an agreement with USALCO, LLC for the purchase of chemicals for the water treatment plant for an amount not-to-exceed $407,750 and approve the associated waiver of bid.
PASSED AND ADOPTED this 23rd day of June, 2026, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
06/23/2026 Item No.13.
Resolution No. 11660
___________________________________
Justin Raithal, MAYOR
ATTEST:
____________________________________
Christa Freemantle, CITY CLERK
06/23/2026 Item No.13.
Attachment 2
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INNOVATION FLOWS HERE 2601 CANNERY AVENUE, BALTIMORE, MD 21226 USALCO.COM
PRICE QUOTE
City of Folsom
194 Randall Dr
Folsom, CA 95630
June 11, 2026
PRICE QUOTE
Prices Valid July 1, 2026 – June 30, 2027
PRODUCT PACKAGING PRICE QUANTITY AVAILABILITY
932 Bulk Tanker
Truck
$0.71/lb/del1
[Not to exceed
$0.75/lb/del]
4500 Gallons1
(50,000 Pounds)
ARO 7 – 15
Business Days
AE 212P 55-Gallon Drums
(450 Lbs Net)
$2.18/lb/del
[Not to exceed
$2.22/lb/del]
2 DRUM
MINIMUM
ARO 7 – 15
Business Days
CE 212P 55-Gallon Drums
(450 Lbs Net)
$2.41/lb/del
[Not to exceed
$2.46/lb/del]
2 DRUM
MINIMUM
ARO 7 – 15
Business Days
AD 212P 1,000 Lb Super
Sack
$3.63/lb/del
[Not to exceed
$3.70/lb/del]
2 SACK
MINIMUM
ARO 7 – 15
Business Days
AD 101P 55-Lb Bags $4.38/lb/del
[Not to exceed
$4.43/lb/del]
6 Bags Minimum ARO 7 – 15
Business Days
Phosphoric
Acid 75%
Bulk Tanker
Truck
$1.45/lb/del 3,000 Gallons
Minimum
ARO 10 – 20
business days
1 932 weighs 10.84 lbs/gal
Please call to place all orders at (800) 453-2586
- or -
EMAIL: [email protected]
06/23/2026 Item No.13.
Attachment 3
06/23/2026 Item No.13.
To: Christa Freemantle, City Clerk
From: Marcus Yasutake, Utilities Director
Date: June 10, 2026
Subject: Sole Source Waiver of Bid – USALCO, LLC
This shall serve as a “Waiver of Bid Notification” for Sole Source Procurement for the purchase of supplies, as required by Section 2.36.140 of the Folsom Municipal Code.
A variety of chemicals are used at the City of Folsom Water Treatment Plant in the processes to produce potable water for the citizens of Folsom. These chemicals are vital to the treatment processes and facilitate compliance with State regulatory requirements and industry best management practices.
The City currently uses specific proprietary chemicals in the treatment process, supplied by USALCO LLC (formerly NTU Technologies, Inc.). For many years, these chemicals have been successful in providing high water quality for the City’s water customers. In addition to providing a consistent standard product, USALCO LLC provides good customer service, and a quick 24 hour response to any problems.
Any change in the chemicals used in the water treatment process would require analytical tests to confirm performance in various conditions throughout the year.
City operators would also need to inform and follow the State Water Resources Control Board, Division of Drinking Water (DDW) requirements requiring, in part, a year long trial period.
The Utilities Department requests approval of this waiver of bid for sole source procurement of chemicals from USALCO, LLC for use at the Water Treatment Plant. Funds are approved and available in the Fiscal Year 2026-27 budget for this purchase.
______________________________________ __________
Marcus Yasutake, Utilities Director Date
06/23/2026 Item No.13.
______________________________________ __________
Stacey Tamagni, Finance Director Date
______________________________________ __________
Sari Dierking, Interim City Attorney Date
cc: City Clerk, Original
City Manager
Chron File
06/23/2026 Item No.13.
Folsom City Council
Staff Report
1 MEETING DATE: 6/23/2026
AGENDA SECTION: New Business
SUBJECT: Resolution No. 11658 - 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 Northwest Corner of East Bidwell Street and Alder Creek Parkway
FROM: Community Development Department
RECOMMENDATION / CITY COUNCIL ACTION
Move to adopt Resolution No. 11658 – 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 Northwest 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” (also more commonly known as a digital billboard) 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 Amendment 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.
06/23/2026 Item No.14.
2 During development of the OA, the applicants also submitted a Conditional Use Permit application for the Electronic Readerboard Sign. The proposed sign would be located within an easement controlled by the applicant located on the parcel behind where the new UC Davis Medical Center building was built at 14264 Innovation Drive at the northwest corner of Alder Creek Parkway and East Bidwell Street (APN 072-3190-052), which is also known as Parcel 61 in the Folsom Plan Area Specific Plan (FPASP). The CUP for the Electronic Readerboard Sign was approved by the Planning Commission at their April 29, 2026 meeting (as shown in the minutes provided in Attachment 4). 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 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 potential advertisers. The applicant proposed, and the Planning Commission approved, a rectangle design that is standard for billboard marketing.
The preliminary design package for the Digital Billboard Sign (Sign ‘B’ of the overall pylon sign package) is included in Attachment 3.
An OA was originally scheduled for City Council consideration at the May 13, 2025 Council meeting. However, the applicant requested additional discussions regarding the agreement, and the item was continued off-calendar. Staff has since conducted further negotiations with the Developer (Eagle Commercial Properties, LLC), and has crafted an updated OA for use and operation of the Parcel 61 Electronic Readerboard Sign. The OA now incorporates additional subjects covered under the operating agreement approved for a similar electronic readerboard on US Highway 50 (i.e., the CBS Outdoor/Sierra Outdoor readerboard sign now operated by Lamar west of Hazel Avenue along US 50) in Rancho Cordova as well as additional provisions the City has used in recent operational agreements. The updated OA is presented in Attachment
2. Subjects the OA covers that staff found relevant to Council review include the following:
City Payments: The Developer has agreed to pay to the City an up-front deposit of $102,000, and an annual fee for 25 years consisting of $102,000 in year one, and $60,000 in each subsequent year, for a grand total of $1,644,000.
Digital Slots for City Use: The Developer has agreed to allocate one eight second slot per eight available slots to the City of Folsom for no charge. The City would utilize this slot for public service messages and announcements.
Content Prohibition: The City acknowledges that the Readerboard is a private sign and that the City does not dictate nor control the advertising content on the sign. However, the Developer has voluntarily agreed not to advertise adult-related businesses or commercial cannabis-related products, as defined within the operating agreement.
Duty to Maintain, Repair, Restore, or Replace the Sign: This section obliges the Developer to maintain the appearance and functionality of the sign at their own cost, to remove the sign in a timely manner after the agreement is terminated, and that the developer would not be
06/23/2026 Item No.14.
3 responsible for two months of City payments while a damaged sign is non-operational and under repair.
Renewal Terms: The agreement states that a renewal term of no more than 25 years can be sought prior to the end of the initial agreement term. The initial agreement is not subject to automatic renewal.
Default and Termination: This section lays out the rights the Developer and the City have to terminate the agreement. It gives the developer the right to terminate for a broad array of reasons but requires the Developer to pay the City termination fees which would increase the earlier the contract is terminated. The agreement gives the City contract termination rights if the Developer does not pay their fees, if they are in breach of the agreement, if they do not construct the sign in a reasonable timeframe or do not receive their required Caltrans permits, or if they initiate legal challenge against the City.
ANALYSIS
The Developer has agreed to pay the City an up-front deposit of $102,000, and an annual fee for 25 years consisting of $102,000 in year one, and $60,000 in each subsequent year. The obvious benefit to the City is that it will receive a continuous annual stream of income from the presence of the Readerboard. This is much more than the projected revenue that the City would have received under the previously proposed 10 percent advertising revenue share, which was estimated to be between $15,000 and $20,000 during the first full year of operation.
Based on the aforementioned information, staff is in support of the proposed payments described in the operating agreement.
The Parcel 61 Electronic Readerboard Sign Operating Agreement proposes one of eight advertising slots on the Readerboard will be allocated to the City for the purpose of providing public services messages and announcements. This is over double the previously proposed sign share of 5 percent, and equates to an annual savings in advertising funds of $91,666 or the equivalent of at least $2.3 million over the 25-year term of the agreement. Based on the aforementioned consideration, staff is supportive of the public advertising slot outlined in the operating agreement.
While the Developer was willing to voluntarily restrict certain advertising content such as adult-oriented business and cannabis, there are no other limits on advertising and no requirement that Sign advertise local businesses. This is different than the other prior electronic readerboard agreements that the City did for the Palladio and the Folsom Auto Mall; however, this results in substantially higher annual fee amount to the City than those previous agreements. Nevertheless, since the applicant owns most of the commercial and office properties in the Folsom Plan Area it is anticipated that the businesses in the Plan Area will likely benefit the most from freeway-oriented display advertising. Based on the aforementioned factors, staff has determined that the operating agreement adequately addresses third-party advertising content.
06/23/2026 Item No.14.
4 Regarding the Developer’s duty to maintain, repair, restore, or replace the sign, staff is supportive of the proposed terms in that they ensure that the Developer (or their sign operator) keeps the sign in good appearance and functionality at no cost to the City and removes it in a timely manner at the end of the agreement. Staff supports non-payment equating to two months of time if the sign is non-functional due to damage, as the Developer would not be generating revenue during this time and the City would not have its advertising space utilized during that time.
Regarding renewal terms, the Developer had requested automatic renewal provisions after the original 25-year term, but staff was not comfortable with agreeing to that provision. Because the annual fee is being proposed as a flat rate, staff did not want to assume that this rate would necessarily be applicable 25 years in the future. The value of electronic billboard advertising could change significantly in 25 years for many reasons, including shifting economic conditions or laws about digital billboard advertising. Because staff cannot predict what may happen 25 years from now, staff instead agreed to a process to only renew the contract in 25 years with Council approval and potential renegotiation of the terms.
Regarding default and termination provisions, staff worked with the Developer to ensure that each party had fair rights to terminate under certain circumstances. Because the Developer will be the one investing in the sign, they wanted assurances that the City could only terminate due to well-defined reasons. Staff worked to ensure that any fair reason the City could foresee to want to terminate was covered under the agreement. Regarding developer termination, staff wanted assurances that payment would be provided to the City so that the City would have adequate time to budget for the shortfall in the funding provided by the readerboard. Staff also believed that the “sliding scale” termination fee in which more money is owed to the City the earlier in the term the contract is terminated encourages the Developer to comply with the terms of the agreement and stay in the agreement for the full term.
Finally, regarding the Conditional Use Permit, staff provided conditions of approval as approved by the Planning Commission to ensure that the billboard would be constructed and operated as shown in the OA. It also requires that both a Building Permit and Caltrans permitting be obtained and kept in good order. These conditions also addressed environmental concerns associated with construction and operation of the sign, as well as meeting lighting standards and the ability to change lighting technologies as they are improved. The OA requires that the Conditional Use Permit be maintained during the term of the agreement.
ENVIRONMENTAL REVIEW
As noted earlier, the FPASP Amendment was reviewed and approved by the City Council on January 9, 2024. At that time an addendum to the Environmental Impact Report/Environmental Impact Statement (EIR/EIS) for the Folsom Plan Area Specific Plan was prepared by Helix Environmental for the project. The Addendum confirmed that there were no significant environmental effects from the sign and sign amendment beyond those already analyzed in the EIR/EIS. As a result, no further environmental review is required. In addition, staff’s recommendation in this report is for approval of an operating agreement, which is not
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5 considered a project under the California Environmental Quality Act (CEQA) and, even if it is considered a project for any reason, it is exempt from environment review pursuant to CEQA Guidelines section 15061(b)(3).
FINANCIAL IMPACT
The Parcel 61 Electronic Readerboard Sign is expected to provide the City with an up-front deposit of $102,000 upon execution of the agreement, $102,000 in year 1, and $60,000 annually in years 2 through 25 through the duration of the agreement, for a total of $1,644,000.
Furthermore, the free advertising slot for the City equates to a savings of approximately $90,000-$110,000 annually in advertising for 25 years (using current advertising rates).
Finally, 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. 11658 - 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 Northwest Corner of East Bidwell Street and Alder Creek Parkway
2. Proposed Operating Agreement
3. Electronic Readerboard Sign Design Package, Dated April 4, 2025
4. April 29, 2026 Folsom Planning Commission Minutes
Submitted,
PAM JOHNS
Community Development Director
06/23/2026 Item No.14.
Attachment 1
Resolution No. 11658 - 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 Northwest Corner of East Bidwell
Street and Alder Creek Parkway
06/23/2026 Item No.14.
Resolution No. 11658
RESOLUTION NO. 11658
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 NORTHWEST CORNER OF
EAST BIDWELL STREET AND ALDER CREEK PARKWAY
WHEREAS, on January 9, 2024, the City Council approved an amendment to the Folsom Plan Area Specific Plan to allow for an electronic readerboard on Parcel 61 in the Folsom Plan Area with approval of a Conditional Use Permit; and
WHEREAS, on January 9, 2024, the City Council also certified an Addendum to the Environmental Impact Report/Environmental Impact Statement (EIR/EIS) for the specific plan amendment that determined that an electronic readerboard on that parcel would not result in a new significant impact to the environment under the California Environmental Quality Act (CEQA); and WHEREAS, on April 29, 2026, the Planning Commission approved the application for a Conditional Use Permit for the Parcel 61 Electronic Readerboard Sign located on located within an easement controlled by the Developer located on Parcel 61 (APN 072-3190-052) in the Folsom Plan Area Specific Plan (FPASP); 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 for the construction, operation, and maintenance Electronic Readerboard Sign within a Developer-controlled easement on Parcel 61 near US Highway 50; and
WHEREAS, Developer agrees to pay the City an Annual Fee as well as a deposit and bonus in order to construct, operate and maintain the Electronic Readerboard Sign within the City; 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 northwest corner of the intersection of East Bidwell Street and Alder Creek Parkway in a form acceptable to the City Attorney.
PASSED AND ADOPTED this 23
rd day of June, 2026, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
___________________________________
Justin Raithel, MAYOR
06/23/2026 Item No.14.
Resolution No. 11658
ATTEST:
____________________________________
Christa Freemantle, CITY CLERK
06/23/2026 Item No.14.
Attachment 2
Proposed Operating Agreement
06/23/2026 Item No.14.
1 OPERATIONAL AGREEMENT
PARCEL 61 ELECTRONIC READERBOARD SIGN
This Operational Agreement, for the Parcel 61 Electronic Readerboard Sign (“Agreement”), for reference dated , 2026 ("Agreement"), is made by and between the City of Folsom, a California municipal corporation ("City") and Eagle Commercial Properties, LLC, a Delaware limited liability company (“Developer”). City and Developer are sometimes individually referred to herein as "Party", and collectively, as the "Parties".
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 (“Specific Plan Amendment”) on November 15, 2023; and WHEREAS, the City Council of the City of Folsom approved the Specific Plan Amendment on January 9, 2024 (Exhibit "A," attached hereto); and WHEREAS, the Specific Plan Amendment specified that a two-sided LED Electronic Readerboard Sign ("Sign"), as those terms are defined herein, for general advertising and related equipment, could be located on the 13,824-square-foot recorded Signage Easement located Assessor’s Parcel Number 072-3190-052, also known as Parcel 61A-1, Folsom, CA 95630 located at the northwest corner of East Bidwell Street and Alder Creek Parkway ("Premises") and depicted on Exhibit “B” and described on Exhibit “C” attached hereto, subject to issuance of a Conditional Use Permit; and
WHEREAS, a Conditional Use Permit was approved by the Planning Commission on April 29, 2026 (the “CUP”) granting Developer the ability to construct, install, operate and maintain the Sign on the Premises subject to approval of an operational agreement; and WHEREAS, Developer desires to construct, install, operate, and maintain the Sign on the described Premises in compliance with the CUP; and
WHEREAS, the City does not own the Premises, but rather the parcel is owned by the Regents of the University of California, and Developer has entered into an Easement Agreement
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2 with the Regents of the University of California (Exhibit "D," attached hereto) for purposes of constructing, installing, operating, and maintaining the Sign (collectively referred to as “Maintaining the Sign on the Easement”; and
WHEREAS, Developer is solely responsible for meeting any requirements imposed by, and entering into, negotiating, and executing any agreements required by the Regents of the University of California, for purposes of Maintaining the Sign on the Easement; and WHEREAS, Condition No. 7 of the conditions of approval for the Specific Plan Amendment requires Developer to enter into an operation, maintenance, and advertising agreement with the City; and
WHEREAS, Developer intends to contract with a third-party sign operator with expertise in the marketing, operation, and maintenance of the Sign (the “Sign Operator") and agrees Developer is solely responsible for entering into, negotiating, and executing any agreements with the Sign Operator for operations of the Sign; and
WHEREAS, the City finds that a public benefit will accrue to the City by reason of the advertising revenue that will be generated by the Sign and shared with the City, which adds value to the community by enabling the City to undertake projects, programs and other activities for the benefit of the City and its businesses and residents. Furthermore, the advertising slot provided to the City at no charge will provide a public benefit because it will enable the City to advertise City events and provide information to residents and businesses as well as visitors to Folsom.
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:
AGREEMENT
1. Incorporation of Recitals. The Preamble, the Recitals, and all defined terms set forth in both, are hereby incorporated into this Agreement as set forth herein in full.
2. Definitions. This section defines the following terms:
2.1 "Annual Fee" is the fee described in Section 4.3.
2.2 "Caltrans" means the California Department of Transportation.
2.3 "Digital Display Area" means the portion of the Sign that consists of the digital display used for general commercial advertising. The Digital Display Area is more particularly described in Exhibit E.
2.4 "Effective Date" means the date as of which both the City and Developer have signed this Agreement, as indicated by the dates in the signature blocks below.
2.5 "Initial Term" of this Agreement shall consist of two phases:
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3 a. The "Pre-Operations Phase," which begins on the Effective Date and ends on the earlier of (a) the first day of the month after the Sign is fully constructed and permitted (with no appeals having been filed) capable, legally and functionally, of displaying digital advertising and connected to a permanent power supply, or (b) one two (2) years after the Effective Date.
b. The "Operations Phase," which begins when the Pre-Operations Phase ends and ends twenty-five (25) years after the Effective Date. The Operations Phase may be extended by any Renewal Terms.
2.6 “Renewal Term” is any renewal of the Initial Term sought by the Developer and must be approved by the City Council. The Initial Term and all Renewal Terms are collectively referred to herein as the “Term.”
2.7 "Obstruction" means any structure, sound wall, communications antennae, tree, or vegetation within one thousand (1,000) feet of the Sign that blocks the view of the Sign from the viewing public traveling on Highway 50 and that is located on any City-owned or Citycontrolled real property. Obstruction does not include highway interchanges, bridges, or pedestrian overcrossings including, but not limited to, those identified and required by the Folsom Plan Area Specific Plan.
2.8 "Premises" means the recorded 13,824-square-foot signage easement located on Assessor’s Parcel Number 072-3190-052, also known as Parcel 61A-1, Folsom, CA 95630 located at the northwest corner of East Bidwell Street and Alder Creek Parkway and depicted on Exhibit “B” and described on Exhibit “C” attached hereto.
2.9 "Sign" means an electronic readerboard outdoor advertising sign, including all above-ground supporting structures, with one or more digital display areas.
2.10 “Sign Operator” means a third-party sign operator with expertise in the marketing, operation, and maintenance of the Sign.
3. Agreement Between City and Developer.
This Agreement is made with Developer, and shall be binding on Developer, Developer's agents, successors and assigns, including Sign Operator. Developer agrees that in any separate agreement with Sign Operator, Developer shall require the Sign Operator to comply with all Sections of this Agreement. Developer shall have the right to engage a Sign Operator pursuant to a management or operating agreement for the operation of the Sign, and such agreement shall not constitute an assignment or transfer requiring City consent.
4. Payment to City
4.1 Upon execution of this agreement, Developer shall pay to the City an initial deposit of one-hundred two-thousand dollars ($102,000).
4.2 At the conclusion of the first year of the Operations Phase, Developer shall pay the City a second payment of one hundred and two thousand dollars ($102,000).
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4 4.3 Following the second year of the Operations Phase, Developer shall pay an annual fee of sixty-thousand dollars ($60,000) to the City. These sixty thousand dollar ($60,000) payments will be due in arrears and shall be payable by January 31st of each year for the prior calendar year. The total value of the annual payments to the City for the Initial Term is not to exceed one-million four-hundred forty-thousand dollars ($1,440,000), excluding the payments referenced in Sections 4.1 and 4.2 above, and does not include the value of the advertising slot provided to the City at no cost.
4.4 If Developer fails to get a Caltrans permit due to Caltrans rejecting Developer's application or if Developer fails to begin the Operations Phase for any other reason beyond the reasonable control of Developer, and such failure to begin the Operations Phase is not caused by a Developer default under Section 12, the City shall refund the initial one hundred and two thousand dollar ($102,000) deposit to Developer. The refund shall be due and payable by the City to Developer within sixty (60) days after written notice from Developer to the City. The City is not required to refund the initial deposit if Developer fails to submit a permit application to Caltrans.
4.5 Developer shall transmit payment required by this Agreement to City as follows:
Department of Finance, Revenue
Division City of Folsom
50 Natoma Street
Folsom, California 95630
5. Duty to Maintain, Repair, Restore, or Replace.
5.1 Maintenance. Developer shall maintain the Sign and related structures in accordance with the customary standards of the outdoor-advertising industry (“Industry Standards”). Developer's maintenance obligation under this Section 5 includes the obligation to remove as promptly as practicable any graffiti from the Premises and the Sign. Developer shall be obligated to maintain the appearance of the Sign and the property immediately surrounding the Sign in reasonably good visual condition and shall not allow visible forms of decay or deterioration on or adjacent to the Sign or related structure, including, but not limited to, rust, decay, weeds, or abandoned or broken equipment to be visible from the Premises, immediately surrounding the Premises, or from any public right of way, including but not limited to Highway
50. Developer shall as promptly as practicable, repair any and all damage or lack of maintenance which results in visible deterioration of the Premises, the Sign, or the property immediately surrounding the Sign. Developer has represented its intention to employ a Sign Operator to operate and maintain the Sign. If, however, Developer's Sign Operator does not maintain the Sign, then the City may notify Developer in accordance with Section 18 that maintenance is required, and describe the issue in the notice. Developer shall make any repairs and perform any maintenance identified by the City that is in accordance with Industry Standards within fifteen (15) business days of the date of the notice. If Developer or its Sign Operator fails to complete the repairs and/or maintenance so identified by the City within fifteen (15) business days after the notice is given, then the City may cause the maintenance described in the notice to be performed, and Developer shall reimburse the City's costs for all maintenance performed in accordance with Industry Standards.
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5 5.2 Costs. Developer shall fully and promptly pay for all costs related to the Sign, including but not limited to utility charges, maintenance, repairs, installation, or removal attributable to the Sign. The City shall not be responsible for any costs related to the Sign.
5.3 Removal. When the Term of this Agreement ends, whether it expires as scheduled or is terminated early, Developer shall promptly apply for, and diligently pursue issuance of, at no cost to the City, any permits or approvals it needs to remove all above-ground parts of the Sign from the surface of the Premises. Within one-hundred twenty (120) days after obtaining the necessary permits and approvals, Developer shall remove the Sign and all aboveground parts of the Sign. Such removal may be performed by Developer or its Sign Operator, and Developer shall ensure that its Sign Operator has reasonable access to the Premises during such period to remove the Sign and equipment and wind down operations. Following termination of this Agreement but prior to removal of the Sign, Developer and its Sign Operator shall not display digital advertising on the Sign.
5.4 Fee Abatement. If the Sign is materially damaged, as defined in Section
12.3(a)(vii), the Developer shall be entitled to a fee abatement of nine thousand eight hundred fifty-six dollars ($9,856.00) upon written notice to the City and full compliance with this Section. Written notice shall be given to the City within five (5) business days of the Sign being materially damaged. The City shall verify the Sign is materially damaged within five (5) business days of written notice. After the City verifies the Sign is materially damaged, the Developer shall commence repair of the Sign as detailed in Section 5.1 and provide sufficient documentation to the City of such repairs. After repair of the Sign and compliance with this Section, Developer is entitled to the fee abatement described in this Section. The fee abatement amount will be deducted from the next annual payment from the Developer. This section does not alter any rights or responsibilities of the Developer under this Agreement, including but not limited to, Section 5.
5.5 If Developer fails to make any required removal within the applicable time period prescribed herein, the City may, at its option, cause such removal to be made at the sole cost and expense of the Developer.
6. Liens. Developer shall keep the Sign and underlying property, and every part thereof, free and clear of any liens and encumbrances, including but not limited to design professional’s liens, mechanic’s liens, materialmen’s liens, contractor’s liens, and subcontractor’s liens, for materials and services provided for or on behalf of Developer. Developer agrees to protect, defend, indemnify and hold City harmless from and against any and all liens and encumbrances arising from materials and services provided to Developer, and any liability associated therewith or arising therefrom.
7. Use of Site
7.1 Unobstructed Use.
a. The City shall not allow an Obstruction within 1,000 feet of the Sign premises after the Effective Date of this Agreement and while this agreement is in effect. b. If Developer notifies the City in writing that an Obstruction exists,
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6 and if the City authorized or actively caused the Obstruction, then the City shall remove or remedy the Obstruction at its own cost within thirty (30) days after receiving the notice. If the City fails to remove the Obstruction within thirty (30) days after receiving the notice, then the Developer may remove the Obstruction at the City's expense after coordinating with the City's Public Works Department, which coordination shall include, at a minimum, review and approval of Developer's plans to remove the Obstruction prior to Developer commencing work. c. If Developer notifies the City in writing that an Obstruction exists, and if the City did not authorize or actively cause the Obstruction, then the City may remove or remedy the Obstruction at its own cost within thirty (30) days after receiving the notice. If the City does not remove or remedy the Obstruction within the thirty (30) days, then, at no cost to the City, and after coordinating with the Public Works Department, whose coordination shall include, at a minimum, review and approval of Developer's plans to remove the Obstruction prior to Developer commencing work, the Developer may take steps to remove the Obstruction. d. The City is not obligated to remove or seek removal of visual obstructions on private property. Furthermore, this Agreement does not, and cannot, authorize Developer to remove visual obstructions from private property. e. Developer may offset the Annual Fee if Developer has provided notice of an Obstruction under Sections 7(b) and the City has not removed the Obstruction as provided therein. In such event, the Annual Fee shall be offset on a pro-rata basis until such Obstruction is removed.
f. Developer's exercise of its rights under this Section are in addition to any other remedies it may have under this Agreement. g. Any Obstruction that existed prior to the Effective Date of this Agreement shall be exempt from this Subsection 7.1.
8. Permits
8.1 Conditional Use Permit. In addition to the terms contained herein, Developer is subject to all terms in the CUP for operation of the Sign, and all future amendments 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 the Folsom Municipal Code and state law. The revocation of the CUP during the Term of this Agreement for cause shall constitute a default by Developer. “For cause” as used in this Section 8.1 means Developer has materially failed to comply with the conditions of the CUP.
8.2 Caltrans Permit. As soon as practicable after the Effective Date, Developer shall apply to Caltrans for all required Caltrans permits, and the City shall cooperate with Developer in that effort, including the completion of any City-related portion of any Caltrans forms as needed. All Caltrans permits are to be obtained and secured for Developer's sole benefit and are to be issued in Developer's name. Developer shall perform all obligations under the Caltrans permits at no cost to the City. The Developer shall receive and have an active
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7 and valid Caltrans permit before operation of the Sign may commence. The failure of Developer to obtain or maintain in good standing during the Term of this Agreement any required Caltrans permit shall constitute a default by Developer.
9. Advertising Content
9.1 During the Term, Developer will have the exclusive right to enter into agreements for advertising on the Sign, including, but not limited to the management or operating agreement referred to in Section 3, subject to the terms of Section 9.2.
9.2 Prohibited Advertising. In addition to the general limitation on Sign advertising to strictly commercial advertising, Developer may not display any message that:
a. promotes the sale or use of cannabis, whether directly or indirectly; b. promotes Adult-Related Businesses as defined in the Folsom Municipal Code, or related products, conventions, events, or websites; c. contains language that is obscene, as that term is defined in local, California or federal law, vulgar, profane, or scatological, or presents a clear-and-present danger of causing riot, disorder, or other imminent threat to public safety, peace, or order; d. promotes any product, service or activity illegal under federal, state, or local law.
The foregoing restrictions shall be interpreted in accordance with applicable law and applied on an objective basis. City shall not have any right of prior approval over specific advertising copy.
9.3 Amber Alerts and Public Service Messages. At no cost to the City, Developer shall make the Sign available for the purpose of displaying "Amber Alert" messages in accordance with state and federal law. In addition, Developer shall make the Sign available to the City, and to other government agencies without cost, on a time-available basis determined by Developer, for the purpose of displaying public-service messages (e.g., emergency-disaster communications). The “Amber Alert” and other public-service messages referenced in this Section are distinct from and shall not count towards the City Messages described in Section 9.5.
9.4 Local Businesses. Developer agrees to ensure that businesses or organizations located within the City and residents of the City will be able to purchase advertising on the Sign in such manner and at such rates as offered to businesses, organizations or persons located or residing outside of the City.
9.5 City Messages. Developer agrees to provide (or cause the Sign Operator to provide), at no cost to the City, an eight-second digital time slot per eight-slot cycle (one of every eight total slots or 12.5 percent of all advertising slots) for City messages. The placement within the rotation of the eight-slot cycle shall be at the Developer’s (or the Sign Operator’s) discretion.
City represents and warrants that all copy, content and materials supplied by City to Developer for display under this Agreement: (i) are owned or duly licensed by City and do not infringe or misappropriate the rights of any other person or entity; (ii) comply with all applicable federal, state, and local laws, rules and regulations and any industry codes or rules by which City and/or Developer may be bound and do not contain any obscene, libelous, slanderous or otherwise
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8 defamatory materials or refer in an offensive manner to the gender, race or ethnicity of any individual or group; (iii) are accurate and that all claims contained therein have been substantiated; and (iv) do not infringe upon any copyright, trademark or other intellectual property or privacy right of any third party. Any content provided by City shall be owned and belong exclusively to the City, and Developer (or its agents) shall not reproduce, sell, or give away any such content without the advance written consent of the City.
9.6 Operating Time. Developer and the Sign Operator shall have the right, but not the obligation, to operate the Sign’s Digital Display Area up to twenty-four (24) hours per day, consistent with the terms of the CUP and subject to the terms of this Agreement.
10. Taxes. Developer shall pay all taxes assessed against the Sign. Pursuant to California Revenue and Taxation Code section 107.6, Developer is notified that the property interest acquired by Developer through this Agreement may be subject to property taxation as a possessory interest in real property, and Developer may be subject to the payment of property taxes levied on that interest.
11. Renewal. A Renewal Term must be sought at least one (1) year prior to the end of the Initial Term, by notifying the Community Development Director. A Renewal Term shall be no more than twenty-five (25) years. This Agreement shall not be subject to automatic renewal.
To receive a Renewal Term, Developer must notify the Community Development Director no less than one (1) year before the end of the Initial Term. Renewal Terms can only be granted after approval by the City Council.
12. Default and Termination.
12.1 The following will be deemed a default by Developer and a breach of this Agreement: (i) non-payment of the fee identified in Section 4.1 or 4.2 above or the Annual Fee if any such fees remain unpaid for more than thirty (30) days after Developer's receipt of written notice from City of such failure to pay; or (ii) Developer's failure to perform any other term or condition under this Agreement within forty-five (45) days after Developer's receipt of written notice from City specifying the failure; no such failure, however, will be deemed to exist if Developer has commenced to cure such default within such period and provided that such efforts are prosecuted to completion with reasonable diligence. Delay in curing a default other than nonpayment of the fees will be excused if due to causes beyond the reasonable control of Developer, which is limited to the Force Majeure events in Section 20.5. If Developer remains in default beyond any applicable cure period, then City will have the right to exercise any and all rights and remedies available to it under law and equity. Written notice shall be delivered as described in Section 18. City shall provide a copy of any notice of default to the Sign Operator concurrently with delivery to Developer, and the Sign Operator shall have the right, but not the obligation, to cure any such default within the applicable cure period, which cure shall be accepted as if performed by Developer.
12.2 City's Termination Rights. Without prejudice to its other remedies at law or in equity, the City may terminate this Agreement, at any time and in its sole discretion, effective thirty (30) days after the City gives Developer written notice of termination, if any of the following circumstances occur:
a. Developer breaches its obligation to pay the fees described in
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9 Section 4.1 or 4.2 above, or the Annual Fee when due and does not cure the breach within thirty (30) days after the City serves Developer with a written notice of breach. b. Developer breaches its obligation to perform in accordance with any material provision of this Agreement other than the obligation to pay the fees described in Section 4.1 or 4.2 above, or Annual Fee and: (A) does not cure the breach within (thirty) 30 days after the City serves it with a written notice of breach or, if the breach cannot reasonably be cured within thirty (30) days; (B), does not begin work on a cure within thirty (30) days after the City serves it with a written notice of breach and diligently pursue the cure to completion within ninety (90) days after work begins. The Parties may agree to extend the time period to cure the breach by mutual written agreement. The express designation in this Agreement of a provision as “material” does not imply that other provisions are not material. c. Developer does not construct the Sign by the end of the PreOperations Phase and elects not to pay rent after the end of the Pre-Operations Phase . d. Developer fails to obtain a Caltrans Outdoor Advertising Permit or fails to maintain such permit in good standing for the duration of Term of the Agreement. e. Developer initiates legal challenge to the validity of this Agreement provided that this subsection shall not prevent Developer from enforcing this Agreement and the Parties’ obligations hereunder.
12.3 Developer’s Termination Rights.
a. Within years one (1) through five (5) of the Initial Term, Developer shall only be able to terminate this Agreement if any of the following listed under subsection i. through vii. occur. In the event that the Developer elects to terminate, not less than thirty (30) days prior written notice shall be provided to City. i. If the Sign is not constructed by the end of the PreOperations Phase, Developer may either terminate this Agreement or commence paying rent.
ii. Developer cannot use the Premises to construct,
install, maintain, repair, or improve the Sign because of unanticipated physical site conditions, including, but not limited to subsurface, environmental, geotechnical, hydrological, utility-related, archaeological or other physical conditions at, beneath, or affecting the Premises that was not known to Developer, was not reasonably discoverable before execution of this Agreement through commercially reasonable due diligence, or that occurs after execution of this Agreement that cannot reasonably be prevented by Developer, and materially impairs, delays, prevents or materially increases the cost of initial development and/or future maintenance, repair or improvements to the Sign on the Premises.
iii. The view of the Sign from the adjacent portion of
Highway 50 is materially obstructed by an Obstruction on City-owned or City-controlled real property. “Materially obstructed” as used in this Section shall mean at least one-half of one side of the digital display area on the Sign is obstructed.
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10 iv. There is a material diversion of traffic from, or a material reduction or change in the directional flow of traffic on the portion of Highway 50 adjacent to the Premises of thirty-five (35) percent or more, verified by traffic count data provided by Caltrans for the nearest count station(s) to the Premises, and the diversion or disruption continues uninterrupted for at least ninety (90) consecutive days. v. Developer cannot obtain or maintain the required
governmental permits, licenses or approvals required to construct, install, operate, maintain, repair, or improve the Sign, including, but not limited to, the Caltrans permits and the City permits through no fault of developer or any existing terms and conditions of the CUP are modified by the City in such a way that as determined by Developer in its reasonable discretion materially impairs, delays, prevents or materially increases the cost of the Sign’s construction, installation, operation, maintenance, repair or improvements or renders the Sign unsuitable for Developer.
vi. Use of the Premises for the Sign or use of the Sign for its intended purpose is prevented or limited by law, or the Regents of the University of California terminate the Easement Agreement, or Developer is required by any court or other governmental entity, for reasons other than eminent domain, to remove the Sign from the Premises.
vii. The Sign is materially damaged or destroyed and
Developer elects not to repair or replace the Sign. Materially damaged or destroyed shall mean at least one-half of the Sign is damaged or destroyed such that at least one-half of it is fully inoperable.
b. This Agreement may be terminated by Developer for any reason or no reason after the fifth (5th) year of the Initial Term upon not less than twelve (12) months prior written notice to City.
c. Developer shall provide a copy of such notices identified in Subsections 12.3(a) and 12.3(b) to the Sign Operator.
12.4 If a Party remains in default under this Section 12, this Agreement may be terminated by the other Party after expiration of the applicable notice and cure periods and upon giving thirty (30) days prior written notice.
12.5 Notice of either Party’s intent to terminate shall be given to the other Party in writing by certified or registered mail, return receipt requested, or reliable overnight delivery service with a copy by email as provided in Section 18 and shall be effective when properly sent and received or refused, unless returned undelivered, or upon such later date as designated in writing by the Terminating party.
12.6 In the event that this Agreement is terminated by either Party pursuant to the terms of this Agreement, then Developer shall pay City a termination fee as follows:
a. If termination by Developer occurs during years six (6) through ten (10) of the Initial Term, the termination fee shall be an amount equal to three (3) years of the Annual Fee then in effect, unless the reason for termination is listed in Subsection ii. through vi. of
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11 Section 12.3.a., in which event Developer shall pay no termination fee. If termination by City occurs pursuant to Section 12.2.a, the termination fee shall be an amount equal to one (1) year of the Annual Fee then in effect, less any unpaid Annual Fees actually paid to the City from Developer in response to a written notice of breach pursuant to Section 12.2.a or a written notice of termination pursuant to Section 12.2. Payment of such termination fee shall be in full satisfaction of the unpaid Annual Fee owed at the time of termination and Developer shall have no additional financial obligation to City with respect to the unpaid Annual Fee. If termination by City occurs pursuant to Section 12.2.b, the termination fee shall be an amount equal to three (3) years of the Annual Fee then in effect. If termination by the City occurs for any other reason, Developer shall pay no termination fee. The termination fee shall be paid in immediately available funds within thirty (30) days of the effective date of termination. b. If termination by Developer occurs during years eleven (11) through fifteen (15) of the Initial Term, the termination fee shall be an amount equal to two (2) years of the Annual Fee then in effect, unless the reason for termination is listed in Subsection ii. through vi. of Section 12.3.a., in which event Developer shall pay no termination fee. If termination by City occurs pursuant to Section 12.2.a, the termination fee shall be an amount equal to one (1) year of the Annual Fee then in effect, less any unpaid Annual Fees actually paid to the City from Developer in response to a written notice of breach pursuant to Section 12.2.a or a written notice of termination pursuant to Section 12.2. Payment of such termination fee shall be in full satisfaction of the unpaid Annual Fee owed at the time of termination and Developer shall have no additional financial obligation to City with respect to the unpaid Annual Fee. If termination by the City occurs pursuant to Section 12.2.b, the termination fee shall be an amount equal to three (3) years of the Annual Fee then in effect. If termination by the City occurs for any other reason, Developer shall pay no termination fee. The termination fee shall be paid in immediately available funds within thirty (30) days of the effective date of termination.
c. If termination by Developer occurs at any time during years sixteen (16) through twenty-five (25) of the Initial Term, or during any Renewal Term, the termination fee shall be an amount equal to one (1) year of the Annual Fee then in effect, unless the reason for termination is listed in Subsection ii. through vi. of Section 12.3.a., in which event Developer shall pay no termination fee. If termination by City occurs pursuant to Section 12.2.a, the termination fee shall be an amount equal to one (1) year of the Annual Fee then in effect, less any unpaid Annual Fees actually paid to the City from Developer in response to a written notice of breach pursuant to Section 12.2.a or a written notice of termination pursuant to Section 12.2. Payment of such termination fee shall be in full satisfaction of the unpaid Annual Fee owed at the time of termination and Developer shall have no additional financial obligation to City with respect to the unpaid Annual Fee. If termination by City occurs pursuant to Section
12.2.b, the termination fee shall be an amount equal to three (3) years of the Annual Fee then in effect. If termination by the City occurs for any other reason, Developer shall pay no termination fee. The termination fee shall be paid in immediately available funds within thirty (30) days of the effective date of termination.
12.7 If at any time Developer terminates this Agreement for any reason other than Caltrans' failure to issue a Sign permit (see Section 8.2), Developer shall not be entitled to receive a refund of any Fee or deposit paid to City under this Agreement.
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12 13. Destruction of Property.
13.1 The City does not own or control the Premises upon which Developer will build and operate the Sign. If the Premises are destroyed or damaged so as to prevent Developer's effective use of the Premises for the Sign, as determined by Developer in its sole discretion, Developer may elect to terminate this Agreement as of the date of the damage or destruction by notifying the City of its election to terminate the Agreement no more than ninety (90) days following the date of Developer's actual knowledge of the damage or destruction.
13.2 In the event of such a termination, Developer agrees it shall promptly apply for, and diligently pursue issuance of, at no cost to the City, any permits or approvals it needs to remove all above-ground parts and components of the Sign from the surface of the Premises and within one hundred twenty (120) days after obtaining the necessary permits and approvals, Developer shall remove the Sign and all above-ground parts of the Sign. Such removal may be performed by Developer or its Sign Operator. This Section shall survive the expiration, cancellation, or termination of this Agreement.
14. Condemnation
14.1 If a condemning authority takes all of the Premises upon which the Sign is located, or a portion thereof which is sufficient to render the Sign unsuitable for Developer, as determined by Developer in its sole discretion, then this Agreement shall terminate as of the date when possession is delivered to the condemning authority and Developer shall have no obligation to pay City any termination fee. Sale of all or part of the Premises to a purchaser with the power of eminent domain in the face of the exercise of its power of eminent domain shall be treated as a taking by a condemning authority.
14.2 In any condemnation proceeding each party shall be entitled to make a claim against the condemning authority for just compensation recoverable under applicable condemnation law.
15. Insurance. During the Term of this Agreement, Developer shall maintain in effect at all times, at its sole expense, policies of insurance as set forth herein:
15.1 Developer shall maintain the following required insurance: Commercial General Liability with limits of Two Million Dollars ($2,000,000.00) per occurrence and in the aggregate.
15.2 The City and its officers, agents, employees and volunteers shall be included as additional insureds by endorsement with respect to the required Commercial General Liability coverage. Developer shall furnish to City an ACORD form certificate of insurance, or certificates of insurance with required endorsements, with an insurance carrier(s) with a Bests’ rating of no less than A-:VII. Developer shall furnish prior to or contemporaneously with the execution of this Agreement Certificates of Insurance and required endorsements. The certificates and required endorsements for each insurance policy are to be signed by the insured’s broker authorized by the insurer to bind coverage on its behalf.
15.3 The insurance coverage shall be as follows:
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13 a. Commercial general liability insurance coverage which includes, but is not limited to, personal injury, property damage, losses related to independent contractors, products and equipment, explosion, collapse and underground hazards shall be in the amount of Two Million Dollars ($2,000,000) each occurrence and in the aggregate. This insurance shall be primary, and any insurance maintained by City shall be excess of Developer's insurance and shall not contribute to it. To the extent insurance applies, the insurer shall assume the defense of City, its officers, employees, agents and volunteers from suits, actions, damages or claims to which they may be subjected, in whole or in part, by reason of or resulting from the construction or installation of Developer's Facilities, except as respects suits, actions, damages or claims arising out of active negligence or intentional acts of City, its officers, employees, agents or volunteers.
15.4 Each policy of insurance shall be with an insurer with a Best’ rating of no less than A-:VII, and specify that:
a. The inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverages afforded shall apply as if those separate policies had been insured to each insured, and b. It acts as primary insurance and that no insurance held by City shall be called upon to cover either in full or in part, any loss covered under the policy.
15.5 Evidence of Coverage. Each year Developer shall provide to City, at the address specified in Section 4, evidence of coverage and applicable endorsements as required by this Section 15.
16. Assignments, Transfers & Sublicenses.
16.1 Developer may not assign, sell or otherwise transfer (each, a “Transfer”) all or any part of its interest in this Agreement, without the prior written consent of City, the consent for which shall not be unreasonably withheld. For the avoidance of doubt, the engagement of a Sign Operator and entry into a management or operating agreement shall not constitute a Transfer requiring City consent. Notwithstanding the foregoing, no City consent shall be required for: (i) a transfer to an affiliate under common control with Developer; (ii) a transfer in connection with a merger, consolidation, or sale of all or substantially all of Developer’s assets; or (iii) a collateral assignment to a bona fide lender.
16.2 Developer agrees to provide to City a fully executed copy of such transfer and assumption instruments and copies of any other document required by this Agreement including, but not limited to, insurance certificates and endorsements within thirty (30) days following the effective date of the transfer. Upon providing City a copy of such transfer, in writing, Developer will be relieved of all future performance, liabilities and obligations under this Agreement. Any assignee permitted herein shall acknowledge that it must comply with all terms and conditions of this Agreement.
17. Indemnification. Developer hereby agrees to protect, defend (with attorneys acceptable to the City), indemnify and hold City and City's officers, officials, employees, agents, volunteers, attorneys, contractors and subcontractors (collectively, "City Parties") harmless from and against any and all losses, claims, liabilities, actions, suits, penalties, obligations, damages, costs, expenses (including reasonable attorney's fees and court costs) and injuries, including but
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14 not limited to claims for damage to property, environmental claims, personal injury claims, including death, (collectively referred to as "Claims") arising out of, resulting from, or in any way related to or connected with Developer's installation, maintenance, or operation of the Sign.
It is understood that the duty of Developer to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Developer is not obligated to indemnify, defend, or hold harmless City Parties under this Section to the extent the Claims are caused solely by the active negligence or willful misconduct of the City or the City's elected officials, officers, employees, contractors, or agents. Developer understands and agrees that the duty to defend is a separate and distinct obligation from Developer's duty to indemnify and hold harmless. Developer shall be obligated to defend City Parties against Claims arising out of allegations of Developer's or Sign Operator's negligence, recklessness, or willful misconduct, with counsel approved by the City (such approval not to be unreasonably withheld), upon tender to Developer of the Claim. Consistent with the carve-out above, Developer's duty to defend shall not extend to Claims arising solely out of allegations of active negligence or willful misconduct by any City Party. The obligation to defend extends through final judgment, including exhaustion of any appeals. Where any Claim includes allegations of active negligence or willful misconduct by any City Party, Developer shall provide independent counsel to defend such allegations to avoid the conflict of interest that arises when one defense counsel is asked to represent parties whose interests may diverge on fault allocation. If it is finally adjudicated that liability was caused by the comparative active negligence or willful misconduct of any City Party, the Parties shall true up defense cost allocations, indemnity payments, settlement agreement payment amounts, and judgements based on the actual proportionate fault of each Party, and any overpayment by either Party shall be refunded to the overpaying Party within sixty (60) days of final adjudication. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Developer from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Developer acknowledges and agrees to the provisions of this Section and that it is a material element of consideration. The provisions of this Section shall survive the termination, cancellation, or expiration of this Agreement.
18. Notices and Deliveries. Any notice or demand required to be given pursuant to the terms of this Agreement must be in writing and shall be made by certified or registered mail, return receipt requested, or reliable overnight delivery service with a copy by email to the addresses of the respective Parties set forth below, except for notices to Developer as described in the following paragraphs.
For Notices to Developer:
Eagle Commercial Partners, LLC
c/o PCCP
555 California Street, #3450
San Francisco, CA 94105
Attn: Jim Galovan
06/23/2026 Item No.14.
15 With a copy to
Eagle Commercial Partners, LLC
c/o Red Tail Acquisitions
4685 MacArthur Court, Suite 410
Newport Beach, CA 92660
Attn: Tim Kihm
For Notice to City:
City of Folsom
50 Natoma Street
Folsom, CA 95630
Attn: Finance Director
Notices by email to Developer will be effective on the first calendar day after it was sent unless the sender receives an automated message that the email has not been delivered. Electronic mail shall be sent with a read receipt, but a read receipt shall not be required to establish that notice was given and received. All other notices shall be effective when properly sent and received or refused, unless returned undelivered. E-mail alone is not an acceptable method of sending or receiving notices of termination.
Each Party may from time to time designate any other address for notices or deliveries by providing thirty (30) days prior written notice to the other Party.
19. Incidental Beneficiaries. It is expressly understood and agreed that the enforcement of these terms and conditions shall be reserved to City and Developer. Nothing contained in this Agreement shall give or allow any claim or right of action whatsoever by any third party, including but not limited to the Sign Operator. It is the express intent of City and Developer that any such person or entity, other than City and Developer, receiving services or benefits under this Agreement shall be deemed an incidental beneficiary.
20. Miscellaneous.
20.1 Severability. If any term or provision of this Agreement is held to be void, voidable, invalid, or unenforceable by a court of competent jurisdiction, any and all remaining terms and provisions of this Agreement shall remain binding and enforceable to the fullest extent permitted by law.
20.2 Binding Effect. This Agreement shall be binding on and inure to the benefit of the successors and permitted assignees of the respective Parties.
20.3 Authority to Execute. Each Party represents and warrants that said Party has full power and authority, and the person(s) executing this Agreement have full power and authority, to execute and deliver this Agreement and to bind their Party to the performance of its obligations hereunder, and that this Agreement constitutes a valid and binding obligation of each Party, enforceable in accordance with its terms.
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16 20.4 Waiver. In the event that either Party at any time or times waives 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. A receipt by City of Annual Fees with knowledge of the breach of any covenant of this Agreement shall not be deemed a waiver of such breach. No waiver by either Party of any provision of this Agreement shall be deemed to have been made until and unless the waiver is made expressly in writing and signed by the waiving Party.
20.5 Force Majeure.
a. "Force Majeure Event" means a cause of delay that is not the fault of the party who is required to perform under this Agreement and is beyond that party’s reasonable control, including the elements (such as floods, earthquakes, windstorms, and unusually severe weather), fire, energy shortages or rationing, riots, acts of terrorism, war or wardefense conditions, acts of any public enemy, epidemics, the actions or inactions of any governmental entity (excluding the City) or that entity’s agents, litigation, labor shortages (including shortages caused by strikes or walkouts), and materials shortages. b. Except as otherwise expressly provided in this Agreement, if the performance of any act required by this Agreement to be performed by either the City or Developer is prevented or delayed because of a Force Majeure Event, then the time for performance will be extended for a period equivalent to the period of delay specifically caused by the Force Majeure Event, and performance of the act during that period of delay will be excused.
20.6 Governing Law. This Agreement shall be deemed to be made in, and the rights and liabilities of the Parties, and the interpretation and construction of the Agreement governed by and construed in accordance with the laws of the State of California.
20.7 Venue. Any legal action arising out of this Agreement shall be filed in and adjudicated by a state court in Sacramento County, State of California.
20.8 Attorneys' Fees. In the event an action or proceeding is instituted by either Party for the breach or enforcement of any provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees according to law and litigation costs through final resolution on appeal in addition to any other relief that may be granted in the proceedings.
20.9 Survival. In addition to any provision of this Agreement specifically referencing survival, any responsibility of Developer for insurance, indemnity, record keeping, compliance with Laws, and any other terms or conditions of this Agreement which by their sense and context survive the termination, cancellation, or expiration of this Agreement, shall not be invalidated due to the expiration, termination, or cancellation of this Agreement.
20.10 Time. Time is expressly declared to be of the essence in this Agreement.
20.11 Headings. Titles, headings, and similar references contained herein are solely to facilitate reference to various provisions of this Agreement and in no way affect or limit the interpretation of the provisions to which they refer.
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17 21. Entire Agreement. This Agreement and any attachments hereto constitute the entire agreement and understanding between the Parties concerning the subject matter hereof and supersedes all offers, negotiations, and other agreements between the Parties concerning the subject matter contained herein. There are no representations or understandings of any kind not set forth herein.
22. Amendments. Any modification or amendment to any provision of this Agreement must be in writing and must be executed by authorized representatives of both Parties.
23. No Presumptions Regarding Preparation of Agreement. The Parties acknowledge and agree that each of them have been represented by counsel or has had full opportunity to consult with counsel and that each of them has participated in the negotiation and drafting of this Agreement. Accordingly, it is the intention and agreement of the Parties that the language, terms and conditions of this Agreement are not to be construed in any way against or in favor of any Party hereto by reason of the roles and responsibilities of the Parties or their counsel in connection with the preparation of this Agreement.
24. Remedies. The specified remedies to which each Party may resort under the terms of this Agreement are cumulative and are not intended to be exclusive of any other remedies or means of redress to which each Party may be lawfully entitled in case of any breach or threatened breach by Developer of any provision of this Agreement.
25. Compliance with Laws. Developer agrees to comply with all applicable federal, state, and local laws, ordinances, rules, regulations, requirements, and the terms of the CUP.
Developer agrees to acquire and receive, prior to commencing construction and operation of the Sign, all applicable building and City permits for construction and operation of the Sign.
Developer shall maintain and comply with the requirements of all applicable permits throughout the Term of this Agreement. Failure of Developer to maintain or comply with the terms of any applicable permit constitutes a Default under Section 12.1ii. Nothing in the Section shall be construed to limit Developer’s right to terminate this Agreement pursuant to Section 12.3.a.v.
26. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and will become effective and binding upon the Parties at such time as all of the signatories hereto have signed a counterpart of this Agreement.
All counterparts so executed shall constitute one Agreement binding on all of the Parties hereto, notwithstanding that all of the Parties are not signatory to the same counterpart.
END OF TEXT -SIGNATURE PAGE FOLLOWS
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18 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: FUNDING AVAILABLE:
Christa Freemantle, City Clerk Date Stacey Tamagni, Finance Director Date ORIGINAL APPROVED AS TO CONTENT: ORIGINAL APPROVED AS TO FORM:
Pam Johns, Community Development Date
Director
Sari Myers Dierking, Interim City Attorney
Date
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19 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.
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EXHIBIT A
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File 034-21 24-001
Folsom City Council Minutes
January 9, 2024
Approved 1/23/2024
City Council Regular Meeting
MINUTES
January 9, 2024
CALL TO ORDER
The regular City Council meeting was called to order at 6:30 pm with Mayor Mike Kozlowski presiding.
ROLL CALL:
Councilmembers Present: Sarah Aquino, Vice Mayor
YK Chalamcherla, Councilmember
Rosario Rodriguez, Councilmember
Anna Rohrbough, Councilmember
Mike Kozlowski, Mayor
Councilmembers Absent: None
PLEDGE OF ALLEGIANCE
The pledge of allegiance was recited.
AGENDA UPDATE
City Attorney Steven Wang announced that item 3 is to be continued to a future meeting and that additional information had been submitted regarding item 17.
SCHEDULED PRESENTATIONS:
1. A Resolution of Commendation – Celebrating the Folsom Zoo Sanctuary’s 60th Anniversary Mayor Kozlowski presented the resolution of commendation.
2. Sacramento Regional Transit Presentation on Folsom 15-Minute Light Rail Service Project Public Works Director Mark Rackovan introduced the item. Regional Transit representative Craig Norman made a presentation and responded to questions from the City Council.
Speaker Bob Holderness addressed the City Council.
3. Folsom Tourism and Economic Development Corporation (TEDCorp) Quarterly Report Item 3 was continued to a future meeting.
DocuSign Envelope ID: 55A6EE00-8D68-4711-9CFE-791B010BC7CA
06/23/2026 Item No.14.
File 034-21 24-001
Folsom City Council Minutes
January 9, 2024
Approved 1/23/2024
BUSINESS FROM THE FLOOR:
The following speakers addressed the City Council:
Judi Alexander
Steve Heard
Dan Carson
CONSENT CALENDAR:
Items appearing on the Consent Calendar are considered routine and may be approved by one motion. City Councilmembers may pull an item for discussion.
4. Approval of November 14, 2023 Special and Regular Meeting Minutes
5. Approval of November 28, 2023 Special and Regular Meeting Minutes
6. Approval of December 12, 2023 Special and Regular Meeting Minutes
7. Resolution No. 11138 – A Resolution Authorizing the City Manager to Execute an Agreement with Serpa Chiropractic, Inc. for the Acquisition of a Drainage Easement at 513 Natoma Street in Relation to the Natoma Street Drainage Improvement Project, Project No. PW1901, State Project No. 5288(047) and Appropriation of Funds
8. Resolution No. 11149 - A Resolution Authorizing the City Manager to Execute an Agreement with Westnet, Inc. for Fire Station No. 35 First-In Fire Station Alerting System Upgrades
9. Resolution No. 11150 - A Resolution Authorizing the City Manager to Execute an Agreement with Westnet, Inc. for Fire Station No. 34 First-In Fire Station Alerting System
10. Resolution No. 11151 - A Resolution Authorizing the City Manager to Execute a Construction Agreement with Central Valley Engineering & Asphalt, Inc. for the Johnny Cash Trail Cash’s Pick No. 1 Project Construction and Appropriation of Funds
11. pulled for discussion
12. pulled for discussion
13. Resolution No. 11154 - A Resolution Authorizing the City Manager to Execute a Construction Agreement with Precision Emprise LLC dba Precision Concrete Cutting for the District 2 Sidewalk Offset Repair Project
14. Resolution No. 11155 – A Resolution Approving the Application for Grant Funds from the Caltrans Sustainable Transportation Planning Grant Program for a Sustainable Transit Connections to Health Services Planning and Feasibility Study
15. Resolution No. 11156 - A Resolution Authorizing the City Manager to Execute an Agreement with Hasa, Inc. for the Supply of Sodium Hypochlorite for the Water Treatment Plant
16. Resolution No. 11157 – A Resolution Approving a Waiver of City Parade fees for Folsom High School Football Team Celebration
DocuSign Envelope ID: 55A6EE00-8D68-4711-9CFE-791B010BC7CA
06/23/2026 Item No.14.
File 034-21 24-001
Folsom City Council Minutes
January 9, 2024
Approved 1/23/2024
Motion by Vice Mayor Aquino, second by Councilmember Rohrbough to approve Consent Calendar items 4-10, 13-16. Motion passed by the following roll-call vote:
AYES: Aquino, Chalamcherla, Rodriguez, Rohrbough, Kozlowski NOES: None
ABSENT: None
ABSTAIN: None
CONSENT CALENDAR ITEMS PULLED FOR DISCUSSION:
11. Resolution No. 11152 – A Resolution Authorizing the City Manager to Execute a Consultant and Professional Services Agreement with Ghirardelli Associates, Inc. for Inspection and Resident Engineer Services for the East Bidwell/Iron Point Road/US50 Onramp Improvement Project, Project No. PW2203 and Appropriation of Funds
Councilmember Chalamcherla pulled this item to ask about the bidding process. Public Works Senior Civil Engineer Zach Bosch responded.
Motion by Councilmember Chalamcherla, second by Councilmember Rodriguez to approve Resolution No. 11152. Motion passed by the following roll-call vote:
AYES: Aquino, Chalamcherla, Rodriguez, Rohrbough, Kozlowski NOES: None
ABSENT: None
ABSTAIN: None
12. Resolution No. 11153 - A Resolution Authorizing the City Manager to Execute an Amendment to the Agreement with Terracare Associates LLC for the Maintenance of Parks, Trails and Pet Stations, Streetscapes/Public Works areas for the City of Folsom Councilmember Rohrbough pulled this item to propose the matter comes back for further discussion to preserve services and to considering using general fund contingency to cover the difference in budgeted amount and cost.
City Manager Andersen sought and received additional information and clarification from City Attorney Wang.
Motion by Councilmember Rohrbough, second by Councilmember Chalamcherla to continue the item to further discuss the scope of the contract extension and funding options.
The City Council discussed the matter.
DocuSign Envelope ID: 55A6EE00-8D68-4711-9CFE-791B010BC7CA
06/23/2026 Item No.14.
File 034-21 24-001
Folsom City Council Minutes
January 9, 2024
Approved 1/23/2024
Councilmember Rohrbough’s motion failed by the following roll-call vote:
AYES: Chalamcherla, Rohrbough,
NOES: Aquino, Rodriguez, Kozlowski
ABSENT: None
ABSTAIN: None
Motion by Councilmember Aquino, second by Councilmember Rodriguez to approve Resolution No. 11153. Motion passed by the following roll-call vote:
AYES: Aquino, Chalamcherla, Rodriguez, Rohrbough, Kozlowski NOES: None
ABSENT: None
ABSTAIN: None
PUBLIC HEARING:
17. Resolution No. 11139 - A Resolution to Adopt an Addendum to the Folsom Plan Area Specific Plan EIR/EIS and Approve a Specific Plan Amendment to Modify FPASP Table A.7 (Transportation, Communication, Infrastructure) to Add “Electronic Readerboard Sign” as a Conditionally Permitted Use on a Specific Property (Parcel 61 - APN No. 072-3190-052) Located at the Southwest Corner of the Intersection of U.S. Highway 50 and East Bidwell Street within the Folsom Plan Area (continued from the December 12, 2023 meeting)
Principal Planner Steve Banks made a presentation and responded to questions from the City Council.
Mayor Kozlowski opened the public hearing. Hearing no speakers, the public hearing was closed.
Motion by Councilmember Rodriguez, second by Councilmember Chalamcherla to approve Resolution No. 11139. Motion passed by the following roll-call vote:
AYES: Aquino, Chalamcherla, Rodriguez, Rohrbough, Kozlowski NOES: None
ABSENT: None
ABSTAIN: None
DocuSign Envelope ID: 55A6EE00-8D68-4711-9CFE-791B010BC7CA
06/23/2026 Item No.14.
File 034-21 24-001
Folsom City Council Minutes
January 9, 2024
Approved 1/23/2024
NEW BUSINESS:
18. Appointment of Three At-Large Members to the Folsom Historic District Commission Using a ballot process, the City Council unanimously appointed:
John Lane, Historic Preservation Seat
Mark Dascallos, Business Owner with the Sutter Street Subarea Kathleen Cole, Resident of the Historic District
19. Ordinance No. 1341 - An Ordinance of the City Council of the City of Folsom Repealing Chapter
2.42 of the Folsom Municipal Code Pertaining to Initiative, Referendum and Recall Petitions (Introduction and First Reading)
City Attorney Steven Wang made a presentation and responded to questions from the City Council.
Motion by Vice Mayor Aquino, second by Mayor Kozlowski to introduce Ordinance No. 1341.
Motion passed by the following roll-call vote:
AYES: Aquino, Chalamcherla, Rodriguez, Rohrbough, Kozlowski NOES: None
ABSENT: None
ABSTAIN: None
OLD BUSINESS:
20. Potential Sales Tax Measure for November 2024 General Municipal Election and Direction to Staff
1. Sample Ballot Measure to Add a General Sales Tax at the Rate of One Percent (1.0%)
2. Sample Ballot Measure to Add a Special Sales Tax at the Rate of One Percent (1.0%) City Attorney Steven Wang made a presentation and responded to questions from the City Council.
The following speakers addressed the City Council:
Justin Raithel
Mike Reynolds
Loretta Hettinger
Bruce Cline
City Attorney Wang provided additional direction and clarification. The City Council discussed the potential sales tax measure.
The following speaker addressed the City Council:
Bill Romanelli, consultant for citizens’ initiative measure The City Council discussed the potential sales tax measure.
At the conclusion of further discussion, the City Council directed staff to bring back a potential special sales tax measure at the second City Council meeting in March for consideration. Prior to giving that DocuSign Envelope ID: 55A6EE00-8D68-4711-9CFE-791B010BC7CA
06/23/2026 Item No.14.
File 034-21 24-001
Folsom City Council Minutes
January 9, 2024
Approved 1/23/2024
directive, the City Council agreed to present a revenue measure on the November election ballot, and further agreed that the revenue measure should be in the form of a special sales tax.
COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS
Councilmember Rohrbough requested a presentation from Police regarding possible solutions to curtail some of the problems related to homelessness and a presentation regarding impact fee funding for a police substation.
Councilmember Rodriguez requested information regarding regional collaborative work regarding homelessness.
Vice Mayor Aquino requested presentations regarding permissible uses of accessory dwelling units and regarding the possible annexation of the part of American River Canyon that is in the San Juan boundaries into the Folsom Cordova boundaries.
CITY MANAGER REPORTS:
City Manager Andersen wished City Attorney Wang a happy birthday. She spoke of zoo docent training, River District area master planning process, and CAPS volunteers.
COUNCIL COMMENTS:
Councilmember Rodriguez thanked law enforcement. She spoke of the ice-skating rink, the FCUSD board meeting, and the Library Commission’s work.
Councilmember Rohrbough spoke of the FCUSD board meeting.
Councilmember Chalamcherla wished everyone a happy new year and thanked city staff.
Vice Mayor Aquino thanked Folsom Police and suggested using refillable water bottles instead of bottled water at the dais.
Mayor Kozlowski noted the Folsom Bulldog football team’s success.
ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at 9:25 pm.
SUBMITTED BY:
_______________________________
Christa Freemantle, City Clerk
ATTEST:
______________________________
Michael D. Kozlowski, Mayor
DocuSign Envelope ID: 55A6EE00-8D68-4711-9CFE-791B010BC7CA
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EXHIBIT B
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EXHIBIT C
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EXHIBIT D
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iiiimmiin
DOC# 202110191799
10/19/2021
SPACE ABOVE THIS LINE FOR RECORDER'S USE
EASEMENT AGREEMENT (Sign)
RECITALS:
A.
B.
C.
NOW, THEREFORE, Grantor and Grantee covenant and agree as follows:
1. Grant of Easement. Grantor hereby grants to Grantee and its successors and assigns, for the (a) Signage. The construction, installation, operation, repair, maintenance, alteration and Sacramento County
Donna Allred, Clerk/Recorder
4:17:12 PM
Electronic
S65.00
S0.00
S0.00
S65.00
Fees
Taxes
PCOR
Paid
BML
Titles
Pages
RECORDING REQUESTING BY AND
WHEN RECORDED RETURN TO:
benefit of Grantee, other owners of the Grantee Property, and the occupants, tenants and users of the Grantee Property, an easement for the following purposes in, on, over and across the Signage Area and other portions of the Grantor Property to the extent provided for in this Agreement:
Grantee is the owner of that certain real property situated in the City of Folsom, County of Sacramento, State of California, and more particularly described in Exhibit B attached hereto (“Grantee Property”).
replacement of a free-standing pylon or monument sign on or in the Signage Area, having one or more sides and panels (collectively, “Sign”), which will be visible from U.S. Highway 50, for the display of the name of Grantee’s project, development and/or property (collectively, “Project”); the names of Grantee and its affiliates, other owners of the Grantee Property, and occupants, tenants and other users of the Grantee Property; for the advertisement of the Project and the owners, occupants, tenants and other users of the Project; and for other advertising purposes except to the extent limited by Section 6(c) of this Agreement. Grantor and Grantee shall cooperate reasonably and in good faith on the size, scale, type and design of the Sign, which shall be subject to the approval of Grantor and Grantee, not to be unreasonably withheld. Grantor shall have the first right to designate a location on the Sign for a sign for Grantor’s Property, subject to Grantee’s reasonable written approval, and such sign shall be fabricated, installed, repaired and maintained by Grantor at Grantor’s sole cost and expense.
Grantor is the owner of that certain real property situated in the City of Folsom, County of Sacramento, State of California, and more particularly described in Exhibit A attached hereto (“Grantor Property”).
Grantor desires to grant to Grantee an easement over that portion of the Grantor Property described in Exhibit C attached hereto and shown on Exhibit D attached hereto (“Signage Area”), and over other portions of the Grantor Property to the extent provided for in this Agreement, for the purposes and on the terms and provisions contained in this Agreement.
Eagle Commercial Partners, LLC
c/o PCCP, LLC
10100 Santa Monica Boulevard, Suite 1000
Los Angeles, CA 90067
Attention: Servicing
1 16
THIS EASEMENT AGREEMENT (Sign) (“Agreement”) is made and entered into as of October I 2021, by and between THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, a California corporation (“Grantor”), and EAGLE COMMERCIAL PARTNERS, LLC, a Delaware limited liability company (“Grantee”).
Recording Requested By:
Placer Title Company P-413l
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(b) Access, Ingress and Egress. Pedestrian and vehicular access, ingress and egress on, (c) Utilities. The construction, installation, repair, maintenance, alteration and replacement.
2. Nature of Easement. The easement granted by Grantor to Grantee in Section 1 of this
3. Duration of Easement. The easement granted in this Agreement shall be perpetual; provided,
4. Insurance. Throughout the term of this Agreement, Grantee shall maintain in effect with respect .$ Best’s Insurance Reports. As used in this Agreement, “Current Dollars” shall mean a dollar amount 2 over and across the Grantor Property and to and from the Signage Area in locations to be reasonably designated by Grantor as reasonably required by Grantee, its successors and assigns, for the exercise of the easement rights described in Section 1(a) of this Agreement. to the Easement Area a policy of commercial general liability insurance (to include broad form property damage insurance), with a minimum limit of liability of not less than Two Million Dollars ($2,000,000) in Current Dollars (as defined in this Agreement) combined single limit of liability. Grantee shall have the right to maintain such insurance coverage through a blanket insurance policy maintained by Grantee or its affiliate or affiliates, provided that such blanket insurance policy provides coverage with respect to the Easement Area of not less than the insurance coverage required under this Section 4. Grantor shall be named as an additional insured on such policies of insurance, and the insurance maintained by Grantor will apply in excess of, and not contribute with, the insurance provided by Grantee. Grantee’s obtaining of any required insurance shall not be construed to limit Grantee’s liability under this Agreement. Prior to Grantee’s entry onto or use of any of the Easement Area, Grantee shall provide Grantor with certificates evidencing the insurance coverage required to be maintained by Grantee under this Section 4. All insurance required to be maintained by the parties under this Section 6 shall be procured from insurance companies licensed in the State of California and rated not less than A-VII in the most recent edition of calculated by multiplying a dollar amount specified above by a fraction, the numerator of which is the Index last published prior to the most recent anniversary of the Effective Date, and the denominator of which is the Index last published prior to the Effective Date. As used in this Agreement, “Index” means the Consumer Price Index — All Items, for the San Francisco/Oakland/San Jose Area, All Urban Consumers, published by the Bureau of Labor Statistics of the United States Department of Labor (1982-84=100). If the base year of the Index is changed, then the calculation hereunder shall be made utilizing the appropriate conversion factor published by the Bureau of Labor Statistics (or successor agency) to reflect the base year of the Index herein specified. If no such conversion factor is published, then the Parties shall, if possible, make the necessary calculation to achieve such conversion. If such Agreement shall: (a) be appurtenant to the Grantee Property; (b) burden and be binding upon the Grantor Property; and (c) be for the non-exclusive use by Grantee and its affiliates, successors and assigns in the manner contemplated by this Agreement. Grantor shall not grant or assign to any other party any other signage easement in or to the Signage Area. Notwithstanding the foregoing, Grantor shall have the right to use the Signage Area and the other Easement Area for such purposes as shall not be inconsistent with or interfere with the easement rights granted to Grantee in this Agreement, or Grantee’s use and enjoyment of the Signage Area. In no event shall Grantor erect or maintain any wall, fence, barricade or other barrier which would prevent or impair the use or enjoyment by Grantee, its affiliates, successors and assigns of the easements granted in this Agreement. however, that nothing contained in this Agreement shall prevent Grantor and Grantee from causing the termination, amendment or modification of the easement granted herein or any other provisions of this Agreement through the execution, acknowledgment and recordation in the Sacramento County, California Official Records of a quitclaim deed or other instrument of termination, amendment or modification of this Agreement.
The Signage Area and the portions of the Grantor Property subject to Grantee’s rights under Sections 1(b) and 1(c) of this Agreement are sometimes referred to in this Agreement collectively as the “Easement Area”.
including trenching, of electrical, natural gas, telephone and telecommunications, data transmission and other utility lines, systems and facilities in, on, over and across the Grantor Property and to and from the Signage Area in locations to be reasonably designated by Grantor as reasonably required by Grantee, its affiliates, successors and assigns, for the exercise of the easement rights described in Section 1(a) of this Agreement.
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5. indemnity. Grantee shall indemnify, defend and hold harmless Grantor and its employees.
Other Obligations.6.
(a) Repair and Maintenance. Grantee, at Grantee’s sole cost and expense, shall be (b) Property Taxes. Grantor, at Grantor’s sole cost and expense, shall be responsible for the (c) Limitations on Advertising. Notwithstanding Section 1 (a) of this Agreement, the Grantee
7. Miscellaneous.
(a) Runs with Land. Grantor and Grantee hereby covenant and declare that the Grantor 3 calculation is not possible, or if publication of the Index is discontinued, or if the basis of calculating the Index is materially changed, the term “Index” shall mean comparable statistics on the cost of living as computed by an agency of the United States Government performing a function similar to the Bureau of Labor Statistics, or, if none, by a substantial and responsible periodical or publication of recognized authority most closely approximating the result which would have been obtained using the Index.
Property and the Grantee Property and each and every portion thereof or interest therein, is now held and shall hereafter be held, transferred, sold, conveyed, leased, developed, used and timely payment of all general and special real property taxes and assessments imposed upon the Grantor Property, including the Easement Area. Notwithstanding the foregoing, Grantee shall be responsible for the payment of the general and special real property taxes assessed directly against the Sign improvements (but Grantor shall be responsible for the general and special real property taxes and assessments assessed against the land portion of the Signage Area). If the Sign improvements are not separately assessed for real property tax purposes, Grantor shall determine reasonably and in good faith the real property taxes on the Grantor Property allocable to the Sign improvements, subject to Grantee’s reasonable approval, and Grantee shall pay such real property taxes to Grantor or to the appropriate taxing authority, as applicable.
responsible for the repair and maintenance of the Sign and the Signage Area in good condition and repair, subject to the provisions of the last sentence of Section 1 (b) of this Agreement. Grantor, at Grantor’s sole cost and expense, shall be responsible for the repair and maintenance of the other portions of the Grantor Property in good condition and repair. and its successors and assigns shall not, without the prior written consent of Grantor, advertise or display, or offer to advertise or display, on the Sign the brand, identity, marks or services of any person or entity which is engaged in the ownership or operation in the Sacramento Region of any of the following health care facilities: acute care general hospital, medical/surgical hospital, specialty hospital, extended care facility, rehabilitation center or facility, physician group practice, primary or specialty care facility, emergency or urgent care facility, surgery center or facility, oncology center or facility, radiology center or facility, imaging center or facility, respiratory therapy or inhalation therapy center or facility. For purposes of this paragraph, the Sacramento Region is comprised of Sacramento, Yolo, Placer, Sutter, Yuba and El Dorado Counties. The restriction contained in this paragraph shall terminate upon the original Grantor’s transfer or disposition of its entire interest in the Grantor’s Property. agents, contractors, successors and assigns from and against any and all losses, costs, claims, damages, liabilities, and causes of action (including attorneys’ fees and costs) arising out of or in any way connected with (a) the use of the Easement Area by Grantee or its officers, employees, agents, invitees, members, successors or assigns, except to the extent caused by negligence or willful misconduct of Grantor or its officers, employees, agents, members, customers, invitees, successors or assigns, (b) any activity or work caused or permitted by Grantee in or about the Grantor Property, including the Easement Area, (c) any failure by Grantee to perform any of Grantee’s obligations under this Agreement, and/or (d) any other negligent or willful act or omission of Grantee or its officers, employees, agents, invitees, members, successors or assigns with respect to the Grantor Property. All mechanics’ liens or other liens imposed upon all or any part of the Grantor Property, or any interest in the Grantor Property, arising from Grantee’s exercise of any of Grantee’s rights under this Agreement shall be promptly paid and discharged by Grantee, or otherwise removed as liens on the Grantor Property by Grantee. The obligations of Grantee under this Section 5 shall survive any termination of this Agreement or the easement granted under this Agreement.
06/23/2026 Item No.14.
(b) Mortgagee Protection. No breach or default by Grantor or Grantee or any other party (c) Notices. Any notice, demand, approval, consent, or other communication required or Grantee Notice Address:
With a copy to :
Grantor Notice Address:
With a copy to:
4 The Regents of the University of California
255 Cousteau Place
Davis, California 95618
Attention: Executive Director
desired to be given under this Agreement shall be given in writing in the manner set forth below, addressed to the party to be served at the addresses set forth below, or at such other address for which that party may have given notice under the provisions of this Section. Any notice, demand, approval, consent, or other communication given by (i) mail shall be deemed to have been given on the second (2nd) business day immediately following the date it was deposited in the United States mail, first class and postage prepaid; (ii) overnight common carrier courier service shall be deemed to be given on the business day (not including Saturday) immediately following the date it was deposited with such common carrier; (iii) delivery in person or by messenger shall be deemed to have been given upon delivery in person or by messenger; or (iv) electronic transmission shall be deemed to have been given on the date of transmission of the entire communication, provided that (A) such transmission occurs prior to 5:00 p.m. Pacific Time, on a business day, and (B) the sending party deposits a hard copy of the original transmitted document(s) in the United States mail, addressed to the receiving party, first class postage prepaid, not later than the first (1st) business day following such transmission. Notwithstanding the foregoing, if any notice is transmitted by electronic transmission or deposited with a delivery service or in the U.S. Mail after 5:00 p.m. (or such earlier applicable cut-off for outgoing mail) or on a non-business day, then such notice shall be deemed transmitted or deposited, as applicable, on the succeeding business day.
under this Agreement shall defeat, render invalid, impair or affect in any manner the lien of any mortgage or deed of trust made in good faith and for value, but this Agreement and the easements, covenants, conditions and restrictions contained in this Agreement shall be binding upon and effective against any person or entity who acquires title to the Grantor Property, the Grantee Property or any portion thereof or interest therein, whether by judicial or non-judicial foreclosure, trustee’s sale, deed-in-lieu of foreclosure or otherwise. occupied subject to the easements, covenants, conditions and restrictions granted under or created or imposed by this Agreement. Each of such easements, covenants, conditions and restrictions shall be covenants and equitable servitudes running with the land pursuant to applicable law and shall run with each and every portion of the Grantor Property and shall inure to the benefit of and pass with each and every such portion of the Grantee Property, and shall be binding upon Grantor and Grantee and their respective heirs, successors and assigns.
The Regents of the University of California
1111 Franklin Street, 6th Floor
Oakland, California 94607
Attention: Associate Director, Real Estate
Eagle Commercial Partners, LLC
c/o PCCP LLC
100 Pine Street, 29th Floor
San Francisco, California 94111
Attention: Jim Galovan
Eagle Commercial Partners, LLC
c/o PCCP LLC
10100 Santa Monica Boulevard, Suite 1000
Los Angeles, California 90067
Attention: Legal Notices
06/23/2026 Item No.14.
(d) Entire Agreement; Amendments. This Agreement constitutes the entire agreement (e) Attorneys’ Fees. In the event of any legal action arising from or based upon rights or (f) interpretation. The provisions contained in this Agreement shall in all events be (g) Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California.
(h) Consent and Subordination. Grantor acknowledge and agree that, if and to the extent Final Location. Grantee shall further define the location of the Signage Area after (i) Exhibits. Attached hereto are Exhibits A, B, C and D, all of which are incorporated into (i) this Agreement by this reference.
[Signatures follow on next page]
5 that the Grantor Property shall be encumbered by a deed of trust or other lien, Grantor shall obtain from the beneficiary under such deed of trust or the holder of such lien a consent to this Agreement and an agreement to subordinate such deed of trust or lien to this Agreement and the easement granted under this Agreement in a form acceptable to Grantee. construed according to their fair meaning and not strictly for or against Grantor, Grantee or any other party. If any provision of this Agreement shall be held to be invalid or unenforceable in any respect, the invalidity or unenforceability shall in no way affect, impair or invalidate any other provision of this Agreement, all of which shall remain in full force and effect. between Grantor and Grantee related to the easement described in this Agreement. Any prior agreements, promises, negotiations or representations not expressly set forth in this Agreement are of no force or effect. Any amendment to this Agreement shall be of no force or effect unless such amendment shall be in writing and signed by Grantor and Grantee.
Grantee’s construction and installation of the Sign by recording in the Sacramento County California Official Records a “Notice of Final Description” referencing to this instrument and setting forth a precise description of the Signage Area. Such further defined location of the Signage Area shall include the location of the Sign and areas for the operation, repair, maintenance, and alteration and replacement by Grantee of the Sign. obligations contained in this Agreement or the interpretation or enforcement of any provisions hereof, the non-prevailing party in such legal action shall pay to the prevailing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in such legal action. If such prevailing party recovers a judgment in any such legal action, then such costs, expenses and attorneys’ fees shall be included in and as a part of such judgment.
06/23/2026 Item No.14.
GRANTOR:
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GRANTEE:
Signed in Counterpart
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year first above written.
EAGLE COMMERCIAL PARTNERS, LLC,
a Delaware limited liability company
THE REGENTS OF THE UNIVERSITY OF CALIFORNIA,
a California corporation
Name: David Phillips
Title: Associate Vice President,
Capital Programs, Energy & Sustainability
06/23/2026 Item No.14.
GRANTOR:
Signed in Counterpart By:
GRANTEE:
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Title:
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6 By:
Name:
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year first above written.
EAGLE COMMERCIAL PARTNERS, LLC,
a Delaware limited liability company
THE REGENTS OF THE UNIVERSITY OF CALIFORNIA,
a California corporation
—Aaron A. Giovara.—
Authorized Signatory 466 “ 04 3 Jo*
Name: David Phillips
Title: Associate Vice President,
Capital Programs, Energy & Sustainability
AlA AAPON APTHU
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06/23/2026 Item No.14.
State of California
On before me,
Notary Public personally appeared
l
SIGNATURE
15 [
CA-Notary Acknowledgment - One Page
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
County of Yolo
B. WEISS
Notary Public - California
Sacramento County
Commission # 2249893
My Comm. Expires Jul 14, 2022
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06/23/2026 Item No.14.
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WITNESS my hand and official seal Of, 4
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1 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
who proved to me on the basis of satisfactory evidence to be the ’person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. )
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06/23/2026 Item No.14.
EXHIBIT A
LEGAL DESCRIPTION OF GRANTOR PROPERTY
1 All that certain real property situated in the City of Folsom, County of Sacramento, State of California, and more particularly described as follows:
Lot 1 as shown on that certain map entitled "PN 21-043 Parcel Map, Parcel 61” filed for record in the Office of the Recorder of the County of Sacramento, City of Folsom, State of California on October 12, 2021, in Book 245 of Parcel Maps, at Page 2, Sacramento County Records.
06/23/2026 Item No.14.
EXHIBIT B
LEGAL DESCRIPTION OF GRANTEE PROPERTY
Parcel One:
Parcel Two:
1 Excepting therefrom Lots 1 through 4, inclusive of that certain map entitled “PN 21-043 Parcel Map, Parcel 61” filed for record in the Office of the Recorder of the County of Sacramento, City of Folsom, State of California on October 12, 2021, in Book 245 of Parcel Maps, at Page 2, Sacramento County Records.
Said parcel being also designated as "Remainder" on that certain map entitled “PN 21-043 Parcel Map, Parcel 61” filed for record in the Office of the Recorder of the County of Sacramento, City of Folsom, State of California on October 12, 2021, in Book 245 of Parcel Maps, at Page 2, Sacramento County Records.
Lots 2, 3 and 4 as shown on that certain map entitled “PN 21-043 Parcel Map, Parcel 61” filed for record in the Office of the Recorder of the County of Sacramento, City of Folsom, State of California on October 12, 2021, in Book 245 of Parcel Maps, at Page 2, Sacramento County Records.
Parcel 1 of Parcel Map filed January 31, 2015, in Book 224 of Parcel Maps, at Page 14, Sacramento County Records.
All that certain real property situated in the City of Folsom, County of Sacramento, State of California, and more particularly described as follows:
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EXHIBIT C
LEGAL DESCRIPTION OF SIGNAGE AREA
[See attached]
1
06/23/2026 Item No.14.
central angle of 05°06‘55"; »
Containing 13,824 square feet of land, more or less.
See Exhibit “D ”, plat to accompany description, attached hereto and made a part hereof.
Commencing at a 5/8” rebar and plastic cap stamped "LS 9265”, marking the northwesterly corner of said Lot 1; thence along the westerly line of said Lot 1, South 06°05‘02" West a distance of 56.16 feet: thence leaving said westerly line, South 83°54‘58" East a distance of
44.99 feet to the True Point of Beginning; thence from the True Point of Beginning for the following four (4) courses:
Said point lies South 89°01'53" East a distance of 29.93 feet and South 00°58'07" West a distance of 25.00 feet from an angle point on the northerly line of said Lot 1, being the easterly terminus of a line labeled [N86°11‘16"E 177.66’] as shown and so designated on Sheet 4 of 5 of said Parcel Map; thence along said landscape corridor, South 89o01'53" East a distance of 90.00 feet; thence leaving said landscape corridor for the following five (5) courses:
7. South 06°05'02" West a distance of 52.47 feet;
8. North 83°54‘58" West a distance of 255.00 feet;
9. North 06°0410" East a distance of 30.00 feet to the T rue Point of Beginning; All that real property situated in the City of Folsom, County of Sacramento, State of California, being a portion of Section 8, Township 9 North, Range 8 East, Mount Diablo Meridian, and a portion of Lot I as shown and so designated on that certain Parcel Map filed for record on October 12, 2021, in Book 245 of Parcel Maps at Page 2, Sacramento County Records, more particularly described as follows:
5. South 00°58‘07" West a distance of 23.81 feet to a point of curvature;
6. 26.34 feet along the arc of a tangent 295.00 foot radius curve to the right through a 7692.P61
10/18/2021
MJW
1. South 83°54'58" East a distance of 165.00 feet;
2. North 06°05‘02" East a distance of 22.47 feet to a point of curvature;
3. 18.30 feet along the arc of a tangent 205.00 foot radius curve to the left through a central angle of05°06’55";
4. North 00°58‘07" East a distance of 23.81 feet to a point on a 25 foot landscape corridor as shown on said Parcel Map;
EXHIBIT 6C»
DESCRIPTION OF SIGNAGE EASEMENT
PORTION OF LOT 1 - 245 P.M. 2
06/23/2026 Item No.14.
27 LAND
3-3/22 7
*
No. 9265s Date: (0/18/21 OF 6CALY
Paul Ferguson, Jr., PLS 9265
License Expiration Date: 03-31-2022
This legal description was prepared by me or under my supervision pursuant to Section 8729 (2) of the Professional Land Surveyors Act.
7692.P61
10/18/2021
MJW
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0000 / 270
Description prepared by:
MACKAY & SOMPS CIVIL ENGINEERS, INC.
1025 Creekside Ridge Dr., Suite 150, Roseville, CA 95678 P:\7692\_Overall\SRVMapping\Desc\ACCESS ESMT - LOT 1\DESC-ACCESS ESMT-LOT l.docx SlP
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5 7/0
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EXHIBIT D
MAP OF SIGNAGE AREA
[See attached]
1 118951797\-6
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U.S. HIGHWAY 50
£
29.93‘(TIE) P.O.C.
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- -P -
S06°05‘02"W56.16‘(TIE) N00°58‘07"E 23.81’
R=205.00‘ A=5°06‘55" L=18.30‘ P
T.P.O.B.
--- N06°04‘10"E 30.00' 0 SIGNAGE EASEMENT
10 LEGEND
SHEET 1 OF 1 N
LAND <0
* CITY OF FOLSOM ★ A COUNTY OF SACRAMENTO STATE OF CALIFORNIA No. 9265 0 0
ENGINEERS
IACKAY&SOmPS PLANNERS SURVEYORS
1025 Creekside Ridge Drive, Suite 150, Roseville, CA 95678 (916) 773-1189 7692,P61
JOB NO.
10/18/2021
DATE
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DRAWN BY
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P.M.
R.S.
T.P.O.B.
P.A.E.
P.O.C.
(1)
(2)
(3)
REMAINDER
__ P.M._____
IF A DISCREPANCY EXISTS BETWEEN THIS EXHIBIT AND THE ASSOCIATED DESCRIPTION.
THE DESCRIPTION HOLDS. THIS EXHIBIT IS FOR GRAPHIC PURPOSES ONLY.
MONUMENT TIE
N79°14'35"W0.46'
(N67°42‘29"W 0.33’)(1)
5/8" REBAR/CAP "LS 9265" TO BE SET PER (2)
1-1/4" IRON PIPE/CAP "LS 5914" PER (3)
DIMENSION POINT
PARCEL MAP
RECORD OF SURVEY
TRUE POINT OF BEGINNING
PUBLIC ACCESS EASEMENT
POINT OF COMMENCEMENT
224 P.M. 14
245 P.M. 2
71 R.S. 18
1*=60‘
SCALE
S00°58‘07"W 23.81
R=295.00'
A=5°06‘55"—
L=26.34’
$83°5458‘E
44.99(TE)f
[N8G®11*16"E 177.66')
’---- S0005807"W 25.00‘(TIE)
o//2
- —_______ __ 13,824 SF N83°54‘58"W255.00 - - - -
LOT1
245 P.M. 2
18' PAE. (1)-|
S89°0T53''E 90.00* 9 T
2 EXHIBIT "D"
SIGNAGE EASEMENT
LOT 1 - 245 P.M. 2
PORTION OF SECTION 8, T. 9 N, R. 8 E„ M.D.M.
s*
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S89°01‘53"E 25‘LANDSCAPE
CORRIDOR (1)
N06°05'02"E 22.47 S8225458"F 165.00:
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4919-0850-3958.1 011399.076 21
EXHIBIT E
06/23/2026 Item No.14.
Attachment 3
Electronic Readerboard Sign Design Package, Dated
April 4, 2025
06/23/2026 Item No.14.
1051 46th Avenue Oakland, Ca 94601
T. 510.533.7693
F. 510.533.0815 www.arrowsigncompany.com
Date:
Sales:
20676
Design:
File Name/Location:
Rev. Date Description
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
H 11-17-22 Revise layout
I 11-30-23 Add sign area
J 8-2-24 Revise size of message center
K 8-19-24 Revise message
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 Matthews Dark Gray, color TBD
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 El Dorado Stone By others Watchfire
6'
8'
0"
4"
8' 0"
6' 0"
65' overall height
15' 4"
11' 8"
48' 0"
9" 3' 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.
L 9-30-23 Revise design, Stone by Arrow M 10-11-24 Add tenant cabinet N 4-4-25 Change LED image
06/23/2026 Item No.14.
1051 46th Avenue Oakland, Ca 94601
T. 510.533.7693
F. 510.533.0815 www.arrowsigncompany.com
Date:
Sales:
20676
Design:
File Name/Location:
Rev. Date Description
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
A 11-17-22 Revise layout
B 9-30-24 Revise design
C 10-11-24 Revise design
D 4-4-25 Change LED image
06/23/2026 Item No.14.
Attachment 4
April 29, 2026 Folsom Planning Commission Minutes
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06/23/2026 Item No.14.
Folsom City Council
Staff Report
1 MEETING DATE: 6/23/2026
AGENDA SECTION: New Business
ITEM TITLE: Resolution No 11659 – A Resolution Authorizing the City Manager to Execute a Purchase and Sale Agreement with Brian Martell and Moe Hirani in the Amount of $1.55 Million for the Purchase of Assessor’s Parcel Numbers 070-0046-026 and 070-0042-002 and Appropriation of Funds (Folsom Housing Fund 238)
FROM: Community Development Department
RECOMMENDATION / CITY COUNCIL ACTION
Staff respectfully recommends that the City Council approve Resolution No 11659 – A Resolution Authorizing the City Manager to Execute a Purchase and Sale Agreement with Brian Martell and Moe Hirani in the Amount of $1.55 Million for the Purchase of Assessor’s Parcel Numbers 070-0046-026 and 070-0042-002 and Appropriation of Funds (Folsom Housing Fund 238).
BACKGROUND / ISSUE
The two subject properties (Assessors Parcel Numbers 070-0046-026 and 070-042-002) are undeveloped sites located in the Historic District between The Preserve neighborhood and the City’s Corporation Yard along the future extension of Leidesdorff Street as shown below.
Corp Yard
The Preserve
06/23/2026 Item No.15.
2 Table 1 below lists the parcel data in terms of parcel size and the General Plan and Zoning designations. Both parcels are located within the Historic Folsom Mixed Use district, which provides for a mixture of commercial and residential uses, including stand-alone residential uses, designed to preserve and enhance the historic character of Folsom’s old town center. Residential development in this zone must include a minimum density of 20 units/acre. Additionally, the parcels are designated in the Housing Element as one of many sites available to meet the City’s lower income housing needs as part of the Regional Housing Needs Allocation (RHNA) with a specific assumption regarding the number of multifamily units that could be accommodated on the sites.
Assessor’s
Parcel
Number
Parcel Size General Plan
Designation
Zoning
Designation
Minimum
Density
Allowed
Housing
Element
RHNA Site
070-0046-026 1.29 acres HF* HD (PD)** 20 du/ac 35 units 070-0042-002 0.65 acres HF* HD (PD)** 20 du/ac 17 units *HF = Historic Folsom Mixed Use
**HD(PD) = Historic District (Planned Development)
Housing Element Program H-6 (Study the Purchase of Land for Affordable Housing) states that the City shall explore the feasibility of using housing trust fund money to purchase land to support the development of affordable housing. The purchase of this site would represent the second time the City purchased land for the development of affordable housing. The first such purchase was 300 Persifer Street which was purchased in the 1960s and used for a variety of City purposes over several decades. The site was recently sold and transferred to Habitat for Humanity using the housing trust fund for the development of ten for-sale homes affordable to lower income families.
Purchase of this site by the City for future housing using Housing Funds implements several housing element goals, policies, and programs. The purchase of these two parcels also allows the City to find the right partner for future development of the site in a manner that is compatible with the Historic District, the surrounding neighborhood, and the future redevelopment of the City’s Corporation Yard. The City completed an appraisal of the two parcels and the negotiated purchase price of $1.55 million is a qualifying expense well within the unencumbered Folsom Housing Fund balance.
POLICY / RULE
In 2013, Folsom introduced an inclusionary housing in-lieu fee to support affordable housing (Folsom Housing Fund 238). As originally established, the in-lie fee was equivalent to 1% of the lowest-priced unit's sale price in a subdivision, multiplied by the total number of units. In 2025, the City completed a nexus study for this in-lieu fee and City Council amended the fee methodology to a flat fee based on square footage, with a generally comparable fee amount. Per a legal agreement with the Sacramento Housing Alliance, at least 50 percent of the collected fees must fund the construction or major rehabilitation of multi-family rentals affordable to low and
06/23/2026 Item No.15.
3 very low-income households. Purchase and/or sale of property for development of affordable housing is a qualifying expense for Folsom Housing Fund 238.
ANALYSIS
State Housing Element Law (Government Code Section 65580) mandates that local governments must adequately plan to meet the existing and projected housing needs of all economic segments of the community. The City of Folsom Housing Element, which was adopted in August 2021, assesses the city’s future housing needs based on the regional “fair share” allocation in the Regional Housing Needs Allocation (RHNA) prepared by the Sacramento County Council of Governments (SACOG). SACOG, in its RHNA, allocated the City of Folsom a total of 6,363 housing units (2,226 very low-income units and 1,341 low-income units) for the eight-year period from 2021 to 2029. The Housing Element assumes that most affordable housing opportunities in Folsom will be multifamily rental units.
In August 2025, staff presented to City Council a mid-term report on the implementation of the City’s Housing Element. As part of that update, staff reported on the City’s progress in meeting its RHNA and outlined approved and qualifying expenditures for the various housing funds. Table 1 below shows the City’s current RHNA compliance progress at Very Low, Low, Moderate, and Above Moderate Levels.
Income Level RHNA Allocation Progress to Date Remaining RHNA Very Low (0 - 50% AMI) 2,226 225 2,001
Low (51 - 80% AMI) 1,341 347 994
Moderate (81 – 120% AMI) 829 817 12
Above Moderate (> 120%
AMI) 1,967 3,473 --
Total 6,363 4,862 3,007
Since 2019, the City Council has approved $13.7M in long-term low-interest loans to help with gap financing for over 550 deed restricted affordable units in six multifamily affordable housing projects in the City of Folsom. In addition to affordable housing loans, Housing Fund 238 can be used for programs, policy implementation, and the purchase and/or sale of land for affordable housing purposes. At the August 2025 meeting, the City Council stated their interest in utilizing the Folsom Housing Fund (Fund 238) for the purchase of multifamily zoned land and/or to partner with affordable housing builders on existing City-owned land.
Purchase of these two parcels by the City for future housing using Folsom Housing Fund 238 implements several housing element goals, policies, and programs. Specifically, the purchase of these multifamily parcels ensures that this site designated for adequate supply of housing is developed with lower income housing in the future (Goal H-1) and that the housing is located near transit stops, commercial services, employment centers, and schools (Policy H-1.2).
Housing Element Programs H-17 and H-16 call for the use of housing trust fund to purchase land for development of affordable housing dispersed throughout the City and to facilitate affordable housing development on City-owned land. Any future housing development of the site will be
06/23/2026 Item No.15.
4 subject to public review and compliance with City policies, standards, entitlements, and environmental review.
The City hired a local appraiser to appraise the value of the two subject parcels. That appraisal can be found in Attachment 2. While the appraisal identifies an estimated value of $1 million for the two parcels, there’s a recognition that the parcels are unique and not immediately directly accessible for development until the future extension of Leidesdorff Street is complete. There were a few other appraisals of the property completed in the recent past that included two additional parcels along Sutter Street under consideration for a multifamily apartment development opportunity ranging in value between $2 million and $5.38 million for all four parcels. See figure below showing the four parcels that were part of those alternative appraisals.
The red dashed lines represent City right-of-way bifurcating the four parcels.
In addition to implementing Housing Element goals, policies, and programs, the purchase of the two subject parcels represents significant public benefit for the City to control the future housing solution in this prime location within the Historic District and adjacent to the City’s Corporation Yard. With many new State housing laws limiting local control over higher density housing near transit without regard to Historic District designations, the purchase of this site allows the City to be thoughtful about future housing development in the Historic District in general but in this location in particular. The City has taken initial steps for planning/design of the new Corporation Yard and City Council has adopted a vision for redevelopment of the existing Corporation Yard as part of the River District Vision Plan. Purchase of these two parcels allows for consideration and coordination of those future plans relative to future housing development.
06/23/2026 Item No.15.
5 Staff recommend City Council authorize the City Manager to execute a Purchase and Sale Agreement at the negotiated purchase price of $1.55 million for future use as an affordable housing project.
FINANCIAL IMPACT
The purchase of the Property for $1.55 million would be funded by the Folsom Housing Fund (Fund 238), which has sufficient funds available to cover the cost of the purchase. Land purchase for affordable housing development purposes is a qualifying expense of the Folsom Housing Fund and implements Housing Element Program H-17.
ENVIRONMENTAL REVIEW
Staff has reviewed the Property purchase to determine the required level of review under the California Environmental Quality Act (CEQA). The proposed activity is exempt from CEQA under CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). Section 15061(b)(3) states that an activity is covered by the common sense exemption where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
There is no possibility that the proposed property acquisition will result in a physical change in the environment. The Property consists of vacant land within the Historic District designated for future housing at a minimum density of 20 units per acre. The acquisition of the Property does not approve any development project, nor does it disturb the physical environment. The proposed action now is simply a transfer of property ownership. Any future development of the site would be subject to review under FMC Title 17 (Zoning) and CEQA. No change in zoning or allowed use is proposed. The sites are listed in the Housing Element as available to meet the City’s lower income RHNA and none of those designations or the associated underlying assumptions will change as a part of this agreement. Therefore, the proposed purchase is exempt from CEQA review.
ATTACHMENTS
1. Resolution No 11659 – A Resolution Authorizing the City Manager to Execute a Purchase and Sale Agreement with Brian Martell and Moe Hirani in the Amount of $1.55 Million for the Purchase of Assessor’s Parcel Numbers 070-0046-026 and 070-0042-002 and Appropriation of Funds (Folsom Housing Fund 238)
2. Appraisal
Submitted,
Pam Johns
Community Development Director
06/23/2026 Item No.15.
ATTACHMENT 1
A Resolution Authorizing the City Manager to Execute a Purchase and Sale Agreement with Brian Martell and Moe Hirani in the Amount of $1.55 Million for the Purchase of Assessor’s Parcel Numbers 070-0046-026 and 070-0042-002 and Appropriation of Funds (Folsom Housing Fund 238)
06/23/2026 Item No.15.
Resolution No. 11659
RESOLUTION NO. 11659
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
PURCHASE AND SALE AGREEMENT WITH BRIAN MARTELL AND MOE HIRANI IN THE AMOUNT OF $1.55 MILLION FOR THE PURCHASE OF ASSESSOR’S PARCEL NUMBERS 070-0046-026 AND 070-0042-002 AND APPROPRIATION OF FUNDS (FOLSOM HOUSING FUND 238)
WHEREAS, Brian Martell and Moe Hirani are the current owners of real property offered for purchase including Assessor’s Parcel Numbers 070-0046-026 and 070-0042-002 (Property) totaling 1.94 acres; and
WHEREAS, the Property is located in the Historic District between The Preserve neighborhood and the City’s Corporation Yard along the future extension of Leidesdorff Street; and
WHEREAS, the City of Folsom has identified the Property in its Housing Element as an available site to meet the lower-income Regional Housing Needs Allocation consistent with Housing Element Goal H-1 (Adequate Land Supply for Housing) and Policy H-1.2 (Location of Higher-Density Housing Sites); and
WHEREAS, Housing Element Program H-17 (Study the Purchase of Land for Affordable Housing) states that the City shall explore the feasibility and appropriateness to establish a program to use housing trust fund money or other sources to purchase land to support the development of affordable housing dispersed throughout the city; and
WHEREAS, Staff considers the Property a prime location for future, but unspecified, development of an innovative affordable housing development project; and WHEREAS, in light of new State housing laws such as SB79 that allow increased housing densities with limited local control near transit without consideration of impacts to Historic Districts, acquisition of this Property allows the City to be thoughtful about future housing development in this key location with the existing neighborhood and future redevelopment of the City’s Corporation Yard; and
WHEREAS, the purchase of the Property would be funded by the City’s Housing Trust Fund 238, which has sufficient funds available to cover the cost of the purchase; and WHEREAS, the agreement will be in a form acceptable to the City Attorney:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom finds that the acquisition of the Property is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption).
Finding. The acquisition of the Property is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3).
06/23/2026 Item No.15.
Resolution No. 11659
Evidence. There is no possibility that the acquisition of the Property will result in a physical change in the environment. The Property consists of vacant land within the Historic District designated for future housing at a minimum density of 20 units per acre. The acquisition of the Property does not approve any development project, nor does it disturb the physical environment.
The proposed action now is simply a transfer of property ownership. Any future development of the site would be subject to review under FMC Title 17 (Zoning) and CEQA. No change in zoning or allowed use is proposed. The sites are listed in the Housing Element as available to meet the City’s lower income RHNA and none of those designations or the associated underlying assumptions will change as a part of this agreement. Therefore, the proposed purchase is exempt from CEQA review.
BE IT FURTHER RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute a Purchase and Sale Agreement with Brian Martell and Moe Hirani in the amount of $1.55 Million for the purchase of Assessor’s Parcel Numbers 070-0046-026 and 070-0042-002 with funds allocated from the Folsom Housing Fund 238.
BE IT FURTHER RESOLVED that the Finance Director is authorized to appropriate $1.55 million for this agreement. The appropriation will be made in the Folsom Housing Fund (Fund 238).
PASSED AND ADOPTED this 23rd day of June, 2026, by the following roll-call vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
__________________________________
Justin Raithel, MAYOR
ATTEST:
______________________________
Christa Freemantle, CITY CLERK