Folsom City Council
August 11, 2026

08/11/2026 Item No.15.
2 The Willow Hill Dam Valve Replacement Project involves replacing the existing slide gate on the upstream side of the dam at the Willow Hill Reservo ir and replacing the existing isolation valve on the downstream side of the dam, which is required by the Division of Safety of Dams (DSOD).

DSOD requires two working valves on the outlet pipe of the reservoir, one on both sides of the dam. The existing valves on the upstream and downs tream sides of the outlet pipe have reached the end of their serviceable life and are no longer functional and need to be replaced.

In June 2024, the City entered into an Agreement (C ontract No. 173-21 24-015) with HELIX Environmental Planning, Inc. (HELIX) for environmen tal support services for the Willow Hill Dam Valve Replacement Project. Per this agreement, HELIX performed environmental support services during the design phase of the project. Due to the complexity of the design for this project (design services are currently being provided by Water Works Engineers, LLC) and the extended time to coordinate with DSOD for review, the design for this project has taken longer than anticipated. For Amendment No. 1, HELIX Environment al Planning, Inc. will provide additional environmental support services throughout the desig n and construction phases to ensure environmental permit compliance including the Centr al Valley Regional Water Quality Control Board (RWQCB) Section 401 Water Quality Certificati on, U.S. Army Corps of Engineers (USACE) Clean Water Act (CWA) Section 404 Permit, and the California Department of Fish and Wildlife (CDFW) Lake and Streambed Alteration Agreement (LSAA).

This amendment is for environmental support service s related to the Willow Hill Dam Valve Replacement Project only. No additional cost for d esign or construction management services is being requested for the Black Miner’s Bar Waterline Rehabilitation Project or the Rainbow Bridge Waterline Rehabilitation Project. These projects are complete.

This Resolution will authorize the City Manager to execute Amendment No. 1 to the Agreement (Contract No. 173-21 24-015) with HELIX Environment al Planning, Inc. for $136,000 from the Water Operating Fund (Fund 520) for additional envi ronmental support services for the Water System Rehabilitation Project No. 1 (Project WA1603) and Appropriation of Funds.

POLICY / RULE

In accordance with Chapter 2.36 of the Folsom Munic ipal Code, supplies, equipment, services, and construction with a value of $77,426 or greater shall be awarded by City Council.

ANALYSIS

HELIX is uniquely qualified to perform additional environmental support services for this project based on their current involvement with this projec t, understanding and familiarity of the background and requirements of the project, qualifi cations, and experience of coordinating with the design team (Water Works Engineers, LLC).

For the Willow Hill Dam Valve Replacement Project, HELIX will provide additional environmental support services throughout the desig n and construction phases to ensure environmental permit compliance. HELIX will prepare and implement various monitoring plans in support of project construction, perform monitoring and reporting as required by the regulatory

08/11/2026 Item No.15.
3 permits, and consult with the City and various regu latory agencies during project construction.

The following describes the additional services that HELIX will perform:

- Willow Hill Dam Valve Replacement Project
o Coordinate with the City and the designer (Water Works Engineers, LLC) to review construction plans and specifications as related to environmental compliance o Prepare and implement a Fish Relocation Plan (FRP) per the requirements of the California Department of Fish and Wildlife (CDFW) L ake and Streambed Alteration Agreement (LSAA)
 Prepare and submit post-relocation report to CDFW
o Prepare permit compliance notifications required fo r the LSAA, Central Valley Regional Water Quality Control Board (RWQCB) 401, a nd U.S. Army Corps of Engineers (USACE) 404
o Conduct a pre-construction survey of the project si te for sensitive biological resources and prepare a pre-construction survey report
o Prepare a Workers Environmental Awareness Program ( WEAP) training manual describing applicable environmental regulations and permit conditions o Prepare Monthly Compliance Reporting and the Annual Compliance Report for submittal to the RWQCB
o On-site construction monitoring by a HELIX biologis t and preparation of daily monitoring reports during construction
o Environmental coordination during the construction bidding process o Project management and meetings as necessary to com ply with regulatory permit requirements

The total cost to provide additional environmental support services by HELIX Environmental Planning, Inc. as part of the Water System Rehabili tation Project No. 1 (Project WA1603) is $136,000. This resolution will authorize the City Manager to execute Amendment No. 1 to the Agreement (Contract No. 173-21 24-015) with HELIX Environmental Planning, Inc. for additional environmental support services for the Water System Rehabilitation Project No. 1 for a new not- to-exceed total contract amount of $215,500 and appropriation of funds.

FINANCIAL IMPACT

The City Council approved Resolution No. 11187 on April 23, 2024 in the amount of $79,500 for HELIX Environmental Planning, Inc. to perform envir onmental support services for the Water System Rehabilitation Project No. 1 (Project WA1603 ). The Utilities Department recommends that Amendment No. 1 to the agreement (Contract No. 173-21 24-015) for additional environmental support services be executed with HEL IX Environmental Planning, Inc. for an additional $136,000 for a new not-to-exceed contrac t total of $215,500. This project budget will require an appropriation in the amount of $136,000 for this amendment. This will bring the total project budget from $2,725,171 to $2,861,171. Suff icient funds are available in the Water Operating Fund (Fund 520) for the appropriation.

08/11/2026 Item No.15.
4 ENVIRONMENTAL REVIEW

Pursuant to the California Environmental Quality Act (CEQA), the City is required to prepare the environmental documentation for the Water System Re habilitation Project No. 1. The City Council approved Resolution No. 11438 on August 26, 2025 adopting the Initial Study and Mitigated Negative Declaration (IS/MND) for the Willow Hill Dam Valve Replacement Project.

ATTACHMENTS

1. Resolution No. 11684– A Resolution Authorizing the City Manager to Execute Amendment No. 1 to the Agreement (Contract No. 173- 21 24-015) with HELIX Environmental Planning, Inc. for $136,000 from the Water Operating Fund (Fund 520) for Additional Environmental Support Services for the W ater System Rehabilitation Project No. 1 (Project WA1603) and Appropriation of Funds

2. Willow Hill Dam Valve Replacement Project Map

Submitted,

Marcus Yasutake, Director

UTILITIES DEPARTMENT

08/11/2026 Item No.15.

Attachment 1

08/11/2026 Item No.15.

Resolution No. 11684

RESOLUTION NO. 11684

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO. 1 TO THE AGREEMENT (CONTRACT NO. 173-21 24-015) WITH HELIX ENVIRONMENTAL PLANNING, INC. FOR $136,000 FROM THE WATER OPERATING FUND (FUND 520) FOR ADDITIONAL ENVIRONMENTAL SUPPORT SERVICES FOR THE WATER SYSTEM REHABILITATION PROJECT NO. 1 (PROJECT WA1603) AND APPROPRIATION OF FUNDS

WHEREAS, the City identifies projects that are critical to ensuring the delivery of adequate and high quality water supply to all residents and businesses; and

WHEREAS, the City has identified the Willow Hill Dam Valve R eplacement Project, as part of the Water System Rehabilitation Project No. 1 (Project WA1603), as a priority to maintain integrity and operation of the raw water system; and

WHEREAS, HELIX Environmental Planning, Inc. will prepare an d implement various monitoring plans in support of project construction, perform monitoring and reporting as required by the regulatory permits, and consult with the City and various regulatory agencies during project construction; and

WHEREAS, HELIX Environmental Planning, Inc. by reason of the ir knowledge and familiarity with this project, understanding of the background and requirements of the project, and the qualifications and experience of the project te am, are qualified to perform the required additional environmental support services throughout the design and construction phases to ensure environmental permit compliance; and

WHEREAS, the Water System Rehabilitation Project No. 1 (Pro ject WA1603) was included in the FY2026-27 Capital Improvement Plan with a total project budget within the Water Operating Fund (Fund 520) of $2,725,171; and

WHEREAS, an additional appropriation of funds in the amount of $136,000 is needed for a revised project budget of $2,861,171 and sufficie nt funds are available in the Water Operating Fund (Fund 520) for this appropriation; and

WHEREAS , the agreement will be in a form acceptable to the City Attorney:

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute Amendment No . 1 to the Agreement (Contract No. 173- 21 24-015) with HELIX Environmental Planning, Inc. for additional environmental support services for the Water System Rehabilitation Projec t No. 1 (Project WA1603) in the amount of $136,000 and the new not-to-exceed contract total, including Amendment No. 1, is $215,500.

BE IT FURTHER RESOLVED that the Finance Director is authorized to appropr iate $136,000 for this agreement. The appropriation wil l be from the Water Operating Fund (Fund 520) fund balance in the amount of $136,000.

08/11/2026 Item No.15.

Resolution No. 11684

PASSED AND ADOPTED this 11
th day of August, 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

08/11/2026 Item No.15.

Attachment 2

08/11/2026 Item No.15.

Figure 2
Area of Potential Effects Map
T:\PROJECTS\F\FolsomCity_02576\00079_WillowHillDamValveReplacementISMND\Map\Willow Hill Dam Valve Replacement.aprx 10/31/2024 Source: Aerial (Nearmap, 2024)
Willow Hill Valve Replacement Project
Barnhill Dr
Prairie City Rd
Blossom Rock Ln
Bonanza Ct
Sluice Way
0 200 Feet
Legend
Area of Potential Effects - 18.3 Acres
Potential Staging Area
Possible Travel Path for Construction
K
Water level of reservoir will
be lowered during construction
General area of temporary dam,
area between temporary dam and valve
replacement
will be dewatered during construction
General area of dam valve replacement
Dock will be closed during construction
General area of downstream valve
replacement

08/11/2026 Item No.15.

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08/11/2026 Item No.15.

Folsom City Council
Staff Report

1 MEETING DATE:

8/11/2026
AGENDA SECTION:

Consent Calendar
SUBJECT: Resolution No. 11685 – A Resolution of the City Council Approving an Acquisition and Shortfall Agreement for
Community Facilities District No. 22A (Folsom Heights)

FROM: Public Works Department

RECOMMENDATION / CITY COUNCIL ACTION

Staff recommends that the City Council move to adopt Resolution No. 11685 – A Resolution of the City Council Approving an Acquisition and Shortfall Agreement for Community Facilities District 22A (Folsom Heights).

BACKGROUND

On January 28, 2014, the City Council adopted Resolution No. 9298 approving the Folsom Plan Area Specific Plan (FPASP) Public Facilities Financing Plan (PFFP). The PFFP is an $877 million dollar plan that includes the necessary backbone infrastructure and public facility requirements, presents a comprehensive financing strategy , and sets forth the estimated time horizon for the future development of the Folsom Plan Area (FPA).

On November 27, 2018, the City Council adopted Resolution No. 10216 to form City of Folsom Community Facilities District (“CFD”) No. 22 (Folsom Heights) within the Folsom Plan Area to finance, among other authorized facilities, the Acquisition Improvements and, on the same date, a landowner el ection was conducted in which all of the votes were cast unanimously in favor of forming the District.

At the request of the developer, the City agrees to cooperate in abandoning proceedings for CFD 22 and to conduct proceedings to form a new community facilities district with identical boundaries, to be known as CFD 22A.

08/11/2026 Item No.16.
2 POLICY / RULE

Chapter 5 of the Folsom Plan Area (FPA) Public Facilities Financing Plan authorizes the formation of CFDs to finance the construction, acquisition , and servicing of backbone infrastructure and other public improvements.

Section 2.5.3 of the First Amended and Restated Tier 1 Development Agreement authorizes the formation of infrastructure CFDs.

Resolution No. 9282 – A Resolution of the City Council of the City of Folsom Approving Goals and Policies for Community Facilities Districts.

The Mello-Roos Community Facilities Act of 1982 governs the formation of Community Facilities Districts and the acquisition of public infrastructure.

ANALYSIS

For the developer to obtain reimbursement from the proceeds from the sale of bonds for CFD No. 22A for eligible roadway and utility infrastructure and public improvements, approval of an Acquisition and Shortfall Agreement (Agreement) by the City Council is required.

The Agreement establishes the process required for the City to acquire the roadway and utility infrastructure and other various public improvements and the developer's responsibility for funding any construction cost shortfall. A summary of the roadway and utility infrastructure and various public improvements and facilities to be funded by the bond proceeds and acquired by the City is shown in Exhibit A of the attached Acquisition and Shortfall Agreement (See Attachment 2). The public infrastructure authorized to be acquired with CFD No. 2 2A bond proceeds includes roadway, utility, and other municipal improvements. The Agreement requires the developer to complete the required roadway and utility infrastructure and other public improvements to the satisfaction of the City and meet specified thresholds in accordance with the Agreement prior to any reimbursement by the City.

FINANCIAL IMPACT

There is no direct financial impact on the City of Folsom. The CFD No. 22A bonded indebtedness and expenses are solely the responsibility of CFD No. 22A.

ENVIRONMENTAL REVIEW

Environmental review for the public infrastructure subject to this Acquisition and Shortfall Agreement was completed in the FPASP Environmental Impact Report (EIR) dated June 14, 2011. No substantial changes to the public infrastructure subject to this Acquisition and Shortfall Agreement have been proposed and no new significant environmental effects or substantial increases in the severity of previously identified significant effects exist. As a result, no further environmental review is required pursuant to CEQA Guidelines section 15162.

08/11/2026 Item No.16.
3 ATTACHMENTS

1. Resolution No. 11685 – A Resolution of the City Council Approving an Acquisition and Shortfall Agreement for Community Facilities District No. 22A

2. Acquisition and Shortfall Agreement

Respectfully Submitted,

Rebecca Neves, Public Works Director/City Engineer

08/11/2026 Item No.16.

ATTACHMENT 1
Resolution No. 11685 – A Resolution of the City Council Approving an Acquisition and Shortfall Agreement for Community Facilities District No. 22A

08/11/2026 Item No.16.

Resolution No. 11685

RESOLUTION NO. 11685

A RESOLUTION OF THE CITY COUNCIL APPROVING ACQUISITION AND SHORTFALL AGREEMENT FOR COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS)

WHEREAS, the City Council has adopted Resolution No. 11679 declaring its intention to establish a community facilities district and to levy a special tax to pay for certain public improvement and public services in and for such community facilities district; and

WHEREAS, the City Council has adopted Resolution No. 11680 declaring the necessity to incur a bonded indebtedness to finance certain public improvements in and for the City of Folsom Community Facilities District No. 22A (Folsom Heights); and

WHEREAS, Staff has prepared the attached Acquisition and Shortfall Agreement for the proposed eligible public improvements of Community Facilities District No. 22A (Folsom Heights); and

NOW, THEREFORE, BE IT RESOLVED that the Acquisition and Shortfall Agreement for Community Facilities District No. 22A (Folsom Heights) is hereby approved, and the City Manager is authorized to execute said Agreement in a form approved by the City Attorney.

PASSED AND ADOPTED this 11th day of August, 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

08/11/2026 Item No.16.

ATTACHMENT 2
Acquisition and Shortfall Agreement

08/11/2026 Item No.16.

Draft
07/23/2026

4900-5459-7562v3/022919-0002

COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)

ACQUISITION AGREEMENT

BY AND BETWEEN

THE CITY OF FOLSOM
AND
ELLIOTT HOMES, INC.

Dated as of _______, 2026

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ACQUISITION AGREEMENT

City of Folsom Community Facilities District No. 22A
(Folsom Heights)

Recitals
A. The parties to this Acquisition Agreement (the “Agreement”) are the CITY OF FOLSOM, (the “City”), and ELLIOTT HOMES, INC., an Arizona corporation (“Developer”).

B. The effective date of this Agreement is ________, 2026 (“Effective Date”).

C. The Developer intends to construct certain road, water, sewer and other public capital improvements, as more particularly described in Exhibit A attached hereto (collectively, the “Acquisition Improvements”) to serve the development of real property owned by Developer within the Folsom Plan Area and within the boundaries of the District described below. The public capital improvements are to be o wned and operated by the City, and the financing is to be accomplished, in part, with funding to be provided by the District under and pursuant to the Mello- Roos Community Facilities Act of 1982 – California Government Code Sections 53311 and following (the “Act”).

D. On November 27, 2018, the City adopted Resolution No. 10216 to form City of Folsom Community Facilities District No. 22 (Folsom Heights) (“CFD 22”) within the Folsom Plan Area to finance, among other authorized facilities, the Acquisition Improvements and, on the same date, a landowner election was conducted in which all of the votes were cast unanimously in favor of forming the District.

E. At the request of the Developer, the City agrees to cooperate with the developer to abandon proceedings for CFD 22 and to conduct proceedings to form a new community facilities district with coterminous boundaries with the former CFD 22, to be known as Cit y of Folsom Community Facilities District No. 22A (Folsom Heights) (“CFD 22A” or the “District”) , with multiple improvement areas therein.

F. The District intends to levy special taxes and cause the Authority to issue CFD 22A Bonds to fund, among other things, a portion of the costs of the Acquisition Improvements . The proceeds of the District special taxes and CFD 22A Bonds, together with interest earned thereon, are referred to herein as the “Available Developer CFD Amount.” The Available Developer CFD Amount shall include the amount of (i) special taxes, if any, collected for a period of twenty (20) years beginning with the Fiscal Year in which: (a) the first building permit is issued in CFD 22A, or (b) the first series of bonds or other debt is issued in CFD 22A, whichever occurs first, available to fund the direct payment for the acquisition and/or construction of Acquisition Improvements and not related to or required to fund debt service or Administrative Expenses, as defined in and determined in accordance wi th the Rate and Method of Apportionment for the District (the “Available Pay-Go Proceeds”), and (ii) the net acquisition proceeds generated by all CFD 22A Bond sale(s) issued by the Authority and secured by CFD 22A special taxes.

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G. Attached hereto as Exhibit A is a description of the Acquisition Improvements and attached hereto as Exhibit B is a description of certain authorized discrete and usable portions of the Acquisition Improvements that may be acquired from Developer pursuant to Section 53313.51 of the Act. It is understood that the Available Developer CFD Amount may not be sufficient to reimburse the Developer for all of the costs and expenses of the Acquisition Improvements contemplated hereunder, or otherwise finance said improvements. Accordingly, Developer understands and acknowledges that any shortfall in the Available Developer CFD Amount toward the construction and completion of the Acquisition Improvements, unless otherwise provided in a separate agreement (e.g. the funding of costs under an acquisition agreement relating to another community facilities district or improvement area within the Folsom Plan Area), is the Developer’s sole responsibility, and that this Agreement solely provides for the payment of the Acquisition Price from the Available Developer CFD Amount.

H. The parties anticipate that, upon completion of the Acquisition Improvements and subject to the terms and conditions of this Agreement and final acceptance by the City Engineer in writing, the City will acquire the completed Acquisition Improvements.

I. Any and all monetary obligations of the City arising out of this Agreement are the special and limited obligations of the City payable only from the Available Developer CFD Amount, and no other funds whatsoever of the District, the Authority, or the City shall be obligated therefor under any circumstances under this Agreement.

J. Attached to this Agreement are Exhibit A (the Acquisition Improvements), Exhibit B (Eligible Portions of Acquisition Improvements, including related Design Costs), Exhibit C (form of Requisition), and Exhibit D (Insurance Requirements), all of which are incorporated into this Agreement for all purposes.

K. In consideration of the formation of the District and the mutual covenants, undertakings, and obligations set forth in this Agreement, the City and Developer agree as stated below.

Agreement

ARTICLE I

DEFINITIONS; COMMUNITY FACILITIES DISTRICT FORMATION

AND FINANCING PLAN
Section 1.01. Definitions. As used herein, the following capitalized terms shall have the meanings ascribed to them below:
“Acceptable Title” means free and clear of all monetary liens, encumbrances, assessments, whether any such item is recorded or unrecorded, and taxes, except (i) those items which are reasonably determined by the City Engineer, upon consultation with the City Attorney, not to interfere with the intended use and therefore are not required to be cleared from the title , (ii) the lien of the District or any other community facilities district or assessment district. “Acquisition and Construction Fund” means any such fund or account established by the

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City or the District for the purpose of paying the Acquisition Prices of the Acquisition Improvements, which may include acquisition funds or accounts created in connection with the issuance of CFD 22A Bonds.
“Acquisition Improvements” means the Acquisition Improvements described in Exhibit A hereto, as the same may be amended from time to time, to be constructed by or on behalf of the Developer.
“Acquisition Price” means the total amount eligible to be paid to the Developer upon acquisition of the Acquisition Improvements as provided in Section 2.03, including any additional Available Developer CFD Amount collected thereafter that are eligible to be paid to Developer, but not to exceed the Actual Cost of the Acquisition Improvement, together with the CCI adjustment thereon until paid in full as provided herein. “Actual Cost” means the total cost of the Acquisition Improvements, or Eligible Portions thereof, as documented by the Developer to the satisfaction of the City and as certified by the City Engineer in an Actual Cost Certificate including, without limitati on, (a) the Developer’s cost of constructing the Acquisition Improvements or Eligible Portions thereof including grading, labor, material and equipment costs, (b) the Developer’s cost of designing and engineering the Acquisition Improvements, preparing the plans and specifications and bid documents for the Acquisition Improvements, and the costs of inspection, materials testing and construction staking for the Acquisition Improvements, (c) the Developer’s cost of any performance, payment and maintenance bonds and insurance, including title insurance, required hereby for the Acquisition Improvements, (d) the Developer’s cost of any real property or interest therein that is either necessary for the construction of the final and accepted Acquisition Improvements ( such as temporary construction easements or haul roads), or is required to be conveyed with such Acquisition Improvement in order to convey Acceptable Title thereto to the City or its designee, (e) the Developer’s cost of environmental evaluation or mitigation required for the Acquisition Improvements, (f) the amount of any fees actually paid by the Developer to the City and any other governmental agencies in order to obtain permits, licenses or other necessary governmental approvals and reviews for the Acquisition Improvements, (g) the Developer’s cost for construction and project management, administration and supervision services for the Acquisition Improvements, (h) the Developer’s cost for professional services related to the Acquisition Improvements, including engineering, accounting, legal, fi nancial, appraisal and similar professional services, and (i) the costs of construction financing incurred by the Developer with respect to the Acquisition Improvements.
“Actual Cost Certificate” means a certificate prepared by the Developer detailing the Actual Cost of the Acquisition Improvements, or Eligible Portions thereof, to be acquired hereunder, as may be revised by the City Engineer pursuant to Section 2.03. “Agreement” means this Acquisition Agreement, dated as of ________, 2026. “Authority” means the Folsom Ranch Financing Authority. “Available Developer CFD Amount” shall have the meaning assigned to the term in Recital F.

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“Available Pay-Go Proceeds” shall have the meaning assigned to the term in Recital F. “CCI” means the construction cost index reported by the Engineering News Record used by the City to adjust construction costs, currently based on the average of the change in the San Francisco Construction Cost Index and the change in the 20 -city Construction Cost Index for the 12-month period ending in May, or comparable index of annual construction costs for public capital improvements used by the City.
“CFD Administrator” means the administrator of the District appointed by the City. “CFD 22A Bonds” means bonds or other indebtedness issued by the Authority that are to be repaid with District Special Taxes.
“City” means City of Folsom.
“City Engineer” means the City Engineer of the City or his/her designee who will be responsible for administering the acquisition of the Acquisition Improvements hereunder. “Code” means the Government Code of the State of California. “Developer” means Elliott Homes, Inc. an Arizona corporation, its successors and assigns, other than individual homeowners.
“Director” means the Director of the City’s Community Development Department or his/her designee.
“Disbursement Request Form” means a requisition for payment of funds from the Acquisition and Construction Fund for an Acquisition Improvement, or an Eligible Portion thereof, in substantially the form contained in Exhibit C hereto. “District” shall have the meaning assigned to the term in Recital E. “Eligible Portions” means the eligible, discrete and usable portions of the Acquisition Improvements available for acquisition and payment of Installment Payments listed and described in Exhibit B hereto.
“Installment Payment” means an amount approved by the City Engineer as partial payment toward the Actual Cost of an Eligible Portion as shown in Exhibit B -Description of Eligible Portions of Acquisition Improvements.
“Project” means the Developer’s development of the property in the District, including the design and construction of the Acquisition Improvements and the other public and private improvements to be constructed by the Developer within the District. “Special Taxes” means annual special taxes, and prepayments thereof, authorized by and to be levied by the District.

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“Title Documents” means, for the Acquisition Improvements acquired hereunder, a grant deed or similar instrument necessary to transfer title to any real property or interests therein (including easements), or an irrevocable offer of dedication of such real property with interests therein necessary to the operation, maintenance, rehabilitation and improvement by the City of the Acquisition Improvements (including, if necessary, easements for ingress and egress) and a bill of sale or similar instrument evidencing transfer of title to the Acquisition Improvements (other than said real property interests) to the City, where applicable.

Section 1.02. Establishment of Community Facilities District . Developer and the City agree to reasonably cooperate with one another to form the District and improvement areas therein and in the completion of the financing through the issuance of the CFD 22A Bonds in one or more series for each improvement area therein and/or the collection of Special Taxes to generate Available Pay-Go Proceeds.

Section 1.03. Deposit and Use of Available Developer CFD Amount. (a) Developer Pay-Go Proceeds. Available Pay-Go Proceeds collected by the District shall be deposited in the Acquisition and Construction Fund established by the District, and may be disbursed to pay the Acquisition Price and Installment Payments of Acquisition Improvements in accordance with Article II of this Agreement. All funds in the Acquisition and Construction Fund shall be considered a portion of the Available Developer CFD Amount. (b) Application of CFD 22A Bond Series. Upon the delivery of each issue or issues of CFD 22A Bonds, the net proceeds thereof shall be deposited into the Acquisition and Construction Fund for the purpose of holding all funds for the Acquisition Improvements. All earnings on amounts in the Acquisition and Construction Fund shall remain in the Acquisition and Construction Fund for use as provided herein. Money in the Acquisition and Construction Fund shall be available to respond to delivery of a Disbursement Request Form and to be paid to the Developer or its designee to pay the Acquisition Price and Installment Payments of the Acquisition Improvements, or portions thereof, as specified in Article II hereof. (c) Priority Use of Available Developer CFD Amount . The Available Developer CFD Amount will be used primarily to fund the costs of the Acquisition Improvements, and then to fund the costs of any other developer improvements advanced and/or constructed by a developer within the Folsom Plan Area that are authorized for acquisition by the City. The Available Developer CFD Amount shall be used first to fund any of the Acquisition Improvements, in any order, as and when each Acquisition Improvement or Eligible Portion is completed and payment of the Acquisition Price or Installment Payment can be paid to Developer as provided herein. Upon completion of all of the Acquisition Improvements hereunder and payment of the Acquisition Prices therefor, any remaining funds in the Acquisition and Construction Fund (less any amount determined by the City as necessary to reserve for claims against the account) shall be (i) applied or reserved for application to pay the costs of any other authorized developer improvements and, to the extent not so used, (ii) shall be applied by the City to call Bonds or to reduce Special Taxes as the City shall determine.

Section 1.04. No Effect of CFD Funding on SPIF Payments . If and to the extent any of the Acquisition Improvements are also included for financing within the Specific Plan

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Infrastructure Fee Program (the “SPIF Program”), any payments hereunder from Available Developer CFD Amount to Developer for such Acquisition Improvements shall not affect or limit Developer’s ability to obtain and apply fee credits against and/or fee reimbursements from the SPIF Fee Program in consideration of its construction of the Acquisition Improvements that are included for financing in the SPIF Progr am. Developer’s right to any such fee credits and/or fee reimbursements from the SPIF Program would be subject to and contingent upon Developer’s entering into and complying with the requirements of a separate SPIF Fee Reimbursement Agreement to be entered into between the City and Developer for the Acquisition Agreements that are included for financing in the SPIF Program.

Section 1.05. No District or City Liability; City Discretion; No Effect on Other Agreements. In no event shall any actual or alleged act by the District or the City or any actual or alleged omission , negligence, or failure to act by the District or the City with respect to the performance of its obligations hereunder subject the District or the City to any liability therefor, whether monetary or otherwise (except only as to pay any amounts available and payable hereunder from the Available Developer CFD Amount). Further, nothing in this Agreement shall be construed as affecting the Developer’s or the City’s duty to perform their respective obligations under any other agreements between the parties hereto, or the City’s enforcement of applicable laws, ordinances, rules, policies and regulations pertaining to public improvement standards and/or specifications, as well as land use and subdivision requirements related to the Project, all of which are and shall remain independent of the Developer’s and the City’s rights and obligations under this Agreement.

ARTICLE II

DESIGN, CONSTRUCTION AND ACQUISITION OF ACQUISITION IMPROVEMENTS Section 2.01. Letting and Administering Design Contracts. The Developer has awarded and administered, or will award and administer, or through the City has advanced funds for the engineering design contracts for the Acquisition Improvements to be acquired from Developer.

All eligible expenditures of the Developer for design engineering and related costs in connection with the Acquisition Improvements (whether as an advance to the City or directly to the design consultant) incurred prior to the Effective Date, as identified on Exhibit B attached hereto, shall be reimbursed at the time of the first Bond sale, and, thereafter, all additional, eligible design engineering and related costs shall be reimbursed at the time of acquisition of the Acquisition Improvements. The Developer shall be entitled to reimbursement for any design costs of the Acquisition Improvements only out of the Acquisition Price as provided in Section 2.03 and shall not be entitled to any payment for design costs independent of the acquisition of Acquisition Improvements.

Section 2.02. Letting and Administration of Construction Contracts; Indemnification .

Except with respect to Acquisition Improvements completed to the satisfaction of the City prior to the date of formation of the District, Developer agrees to comply with City requirements with respect to contracting for the construction of the Acquisition Improvements. The Developer agrees that all the contracts , other than for Acquisition Improvements completed prior to the date of formation of the District, shall call for compliance with all provisions of the prevailing wage law for “public works” as required by the Labor Code of the State of California and shall require all

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work to be performed by licensed general contractors. The Developer’s indemnification obligation set forth in Section 3.01 of this Agreement shall also apply to any alleged failure to comply with the requirements of this Section, and/or applicable State l aws regarding public contracting and prevailing wage laws applicable to public works.
(a) Plans and Specifications . The Developer represents and covenants that it has obtained or will obtain approval of the plans and specifications for the Acquisition Improvements from all appropriate departments of the City and from any other public entity or public utility from whi ch such approval must be obtained, prior to construction. The Developer further covenants that the Acquisition Improvements will be constructed in full compliance with such approved plans and specifications and any change orders thereto, as approved in th e same manner, and the adopted City Standard Construction Specifications and Improvement Standards.

The Developer shall submit copies of all plans and specifications to the Director or his/her designee.
(b) CEQA. The Developer covenants that it has complied or will comply with the California Environmental Quality Act in conjunction with the construction of the Acquisition Improvements and their conveyance pursuant to the terms set forth herein. (c) Inspection. The Developer covenants that the City, and other public entities or public utilities to whom any of the Acquisition Improvements will be conveyed, will be permitted to inspect the Acquisition Improvements using the same standards which would be applied to a public works project.
(d) Insurance. With respect to the construction of the Acquisition Improvements, the Developer shall furnish to City a certificate or certificates of insurance, with an insurance carrier acceptable to City and in a form satisfactory to the City Attorney, evidencing insurance coverage consistent with Exhibit D attached hereto. (e) Performance and Payment Bonds. Except as otherwise provided herein, the Developer covenants to comply with all applicable performance, labor and materials and completion bond requirements of the City with respect to the construction of the Acquisition Improvements. To the extent bon ds are required, Developer further covenants and agrees to execute and deliver or otherwise cause to be provided to City, prior to construction and in forms acceptable to the City Attorney, a faithful Performance Bond in the amount of 100% of the estimated cost of the Acquisition Improvements and a Labor and Materials Bond in the amount of 100% of the estimated cost of the Acquisition Improvements, from a bonding company with an A.M. Best rating of at least “A -” or its equivalent. Such bonds shall only be released upon full completion of the Acquisition Improvements, the City’s written acceptance of the Acquisition Improvements, and payment of all persons furnishing labor and materials.

Section 2.03. Sale of Acquisition Improvements. The Developer agrees to sell to the City each of the Acquisition Improvements to be constructed by Developer (including any rights -of- way or other easements necessary for the Acquisition Improvements, to the extent not already owned by the City), when e ach of the Acquisition Improvements is completed to the satisfaction of the City and accepted by the City Engineer in writing for an amount not to exceed the lesser of (i) the Available Developer CFD Amount and (ii) the Actual Cost of the Acquisition

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Improvement(s), increased from and after the completion of the Acquisition Improvements until paid in full based on the annual increase, if any, in the CCI from such completion to date of payment (the “Acquisition Price”). Notwithstanding any provision to the contrary, the Developer understands that the Available Developer CFD Amount for the acquisition of the Acquisition Improvements may not be sufficient to reimburse the Developer for all of the costs and expenses constructing the Acquisition Improvements, or otherwise finance said improvements.

Accordingly, Developer understands an d acknowledges that any shortfall in the amount of Available Developer CFD Amount for the construction and completion of the Acquisition Improvements, unless otherwise provided in a separate agreement (e.g. the funding of costs under an acquisition agreement relating to another improvement area within the Folsom Plan Area), is the Developer’s sole responsibility, and that this Agreement solely provides for the payment of the Acquisition Price from the Available Developer CFD Amount.

Exhibit A , attached hereto and incorporated herein, contains a list of the Acquisition Improvements. Portions of the Acquisition Improvements eligible for Installment Payments prior to completion of the entire Acquisition Improvements are described as eligible, discrete and usable portions in Exhibit B (each, an “Eligible Portion”). At the time of completion of each Acquisition Improvement, or Eligible Portion thereof, the Developer shall deliver to the City Engineer a written request for acquisition, accompanied by an Actual Cost Certificate, and by e xecuted Title Documents for the transfer of the Acquisition Improvement where necessary. In the event that the City Engineer finds that the supporting paperwork submitted by the Developer fails to demonstrate the required relationship between the subject Actual Cost and eligible work, the City Engineer shall advise the Developer that the determination of the Actual Cost (or the ineligible portion thereof) has been disallowed and shall request further documentation from the Developer. If the further docume ntation is still not adequate, the City Engineer may update the Actual Cost Certificate to revise or delete any disallowed items and the determination shall be subject to appeal to the Director, whose determination shall be final.

Certain soft costs for the Acquisition Improvements, such as civil engineering, may have been incurred pursuant to single contracts that include work relating also to the private portions of the Project or to multiple Acquisition Improvements. In those instances, the total costs under such contracts will be allocated to each Acquisition Improvement as approved by the City Engineer.

Where a specific contract has been awarded for design or engineering work relating solely to an Acquisition Improvement, one hundred percent (100%) of the costs under the contract will be allocated to that Acquisition Improvement. Soft costs will be allocated to each Acquisition Improvement as approved by the City Engineer. The costs of environmental mitigation required to mitigate the impacts of the public and private portions of the Project will be allocated to each Acquisition Improvement as approved by the City Engineer. Pursuant to Section 2.01, all eligible expenditures of soft costs in connection with the Acquisition Im provements (whether as an advance to the City or directly to the design consultant) incurred prior to the Effective Date, as identified in Exhibit B attached hereto, shall be reimbursed at the time of first Bond sale, and, thereafter, all additional, eligible soft costs shall be reimbursed at the time of acquisition of the Acquisition Improvements.

Section 2.04. Conditions Precedent to Payment of Acquisition Price . Payment to the Developer or its designee of the Acquisition Price for each Acquisition Improvement shall in every case be conditioned first upon the determination of the City Engineer that the Acquisition

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Improvement satisfies all City construction standards and specifications, rules, policies, regulations and ordinances and shall be further conditioned upon satisfaction of the following additional conditions precedent:
(a) Lien Releases . The Developer shall have provided the City with lien releases or other similar documentation satisfactory to the City Engineer as evidence that none of the property (including any rights -of-way or other easements necessary for the operation and maintenance of the Acquisition Improvement, to the extent not already owned by the City) comprising the Acquisition Improvement, and the property which is subject to the Special Taxes of the District, is subject to any prospective mechanics lien claim respecting the Acquisition Improvements.
(b) Payment of Taxes. The Developer shall be current in the payment of all due and payable general property taxes, and all Special Taxes of the District, on property owned by the Developer or under option to the Developer within the Community Facilities District. (c) Certification No Loan Default. The Developer shall certify that it is not in default with respect to any loan secured by any interest in the Project. (d) Title Documents. The Developer shall have provided the City with Title Documents needed to provide the City with Acceptable Title to the site, right-of-way, or easement upon which the subject Acquisition Improvements are situated. All such Title Documents shall be in a form acceptable to the City Attorney and shall convey Acceptable Title. The Developer shall provide a policy of title insurance as of the date of transfer in a form acceptable to the City Attorney insuring the City as to the interests acquired in connection with the acquisition of any interest for which such a policy of title insurance is not required by another agreement between the City and the Developer. Each title insurance policy required hereunder shall be in the amount equal to the Acquisition Pri ce. The amount paid to the Developer or its designee upon satisfaction of the foregoing conditions precedent shall be the Acquisition Price less all Installment Payments paid previously with respect to the Acquisition Improvement. (e) Retention for Punch List Work . In the case of a completed Acquisition Improvement suitable for public use, but for which certain punch list work remains to be completed prior to formal acceptance by the City, the City shall retain from the payment of any Acquisition Price for such Ac quisition Improvement the amount of one hundred and fifty percent (150%) of the value of punch list work not completed. Upon payment and acceptance of the Acquisition Price, less the retention for any punch list work, for each completed Acquisition Improve ment or portion thereof, Developer shall have no further claim for payment from the City with respect to the retentions until completion of the punch list work. The City shall hold the retention amount on all Acquisition Improvements acquired until the punch list work is completed and accepted by the City. Provided, however, in any event, the City will not pay for the acquisition of any completed Acquisition Agreement or portion thereof unless and until the street, drainage or other utility rights of way w here they are located have been irrevocably offered to the City for dedication and the remaining conditions precedent to payment under this Section 2.04 are satisfied. (f) Warranty Bond. The Developer shall provide to City a warranty bond equal to 10% of the Actual Cost of the Acquisition Improvement. Commencement of the one -year

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warranty period shall start at the time of City’s formal acceptance of the Acquisition Improvements in writing.

Section 2.05. Payment for Eligible Portions. The Developer may submit an Actual Cost Certificate to the City Engineer with respect to any Eligible Portion. Payment to the Developer or its designee from the Acquisition and Construction Fund of an Installment Payment with respect to such Eligible Portion shall in every case be conditioned first upon the determination of the City Engineer, that the Eligible Portion has been completed in accordance with all applicable plans and City construction standards and specifications, rules, policies, regulatio ns and ordinances and is otherwise complete and, where appropriate, is ready for acceptance by the City, and shall be further conditioned upon satisfaction of the following additional conditions precedent:
(a) The Developer shall have provided the City with lien releases or other similar documentation satisfactory to the City Engineer as evidence that the property (including any rights-of-way or other easements necessary for the operation and maintenance of the Eligible Portion, to the extent not already owned by the City) comprising the Eligible Portion is not subject to any prospective mechanics lien claim respecting the Eligible Portion. (b) The Developer shall be current in the payment of all due and payable general property taxes, and all Special Taxes of the District, on property owned by the Developer or under option to the Developer within the District.
(c) The Developer shall have provided the City with Title Documents needed to provide the City with Acceptable Title to the site, right -of-way, or easement upon which the subject Eligible Portion is situated. All such Title Documents shall be in a form acceptable to the City Attorney and shall be sufficient, upon completion of the Acquisition Improvements of which the Eligible Portion is a part, to convey Acceptable Title to the Eligible Portion. The Developer shall provide a policy of title insurance as of t he date of transfer in a form acceptable to the City Attorney insuring the City as to the interests acquired in connection with the acquisition of any interest for which such a policy of title insurance is not required by another agreement between the City and the Developer. Each title insurance policy required hereunder shall be in the amount equal to the Installment Payment for the Eligible Portion. (d) Payment and performance bonds, from a bonding company with an A.M.

Best rating of at least “A-” or its equivalent, applying to plans, standards and specifications for the Acquisition Improvements approved by the City Engineer, shall be in place to secure completion of the Acquisition Improvements of which the Eligible Portion is a part. As an alternative thereto, Developer may ask the City to retain and reserve the amount of funds in the Acquisition and Construction Fund equal to the estimated cost to co mplete such Acquisition Improvements in the manner described in Section 2.02(e) above.
(e) The amount paid to the Developer or its designee upon satisfaction of the foregoing conditions precedent shall be the “Installment Payment” with respect to the Eligible Portion.

Section 2.06. Disbursement Request Form. Upon a determination by the City Engineer to pay the Acquisition Price of an Acquisition Improvement pursuant to Section 2.04 or to pay an

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Installment Payment for an Eligible Portion thereof pursuant to Section 2.05, the City Engineer shall cause a Disbursement Request Form substantially in the form attached hereto as Exhibit C to be submitted to the CFD Administrator for payment from the Acquisition and Construction Fund, up to the Acquisition Price or Installment Payment amount, and the CFD Administrator shall authorize such payment directly to the Developer or its designee of the authorized amount.

In the event that the Actual Cost of the Acquisition Improvements or the Installment Payment for an Eligible Portion is in excess of the amounts then available in the Acquisition and Construction Fund, subject to any retention of funds as security for the work pursuant to Section

2.02(e) and/or for punch list work pursuant to Section 2.04(e), the CFD Administrator and/or the City shall withdraw all funds then available in the Acquisition and Construction Fund and shall transfer those amounts to the Developer or its designee. The unpaid portion of the Actual Cost, as adjusted by the CCI, shall be paid from funds that may subsequently be deposited in and/or become available for payment from the Acquisition and Construction Fund. Developer understands that the Available Developer CFD Amount for the acquisition of the Acquisition Improvements may not be sufficient to reimburse the Developer for all of the costs and expenses constructing the Acquisition Improvements, or otherwise finance said improvements. Accordingly, Developer acknowledges and agrees that any shortfall in the Available Developer CFD Amount toward the construction and completion of the Acquisition Improvements is the Developer’s sole responsibility, and that the Acquisition Price will be paid solely from the Available Developer CFD Amount.

Section 2.07. Limitation on Obligations. Notwithstanding any provision to the contrary, in no event shall the District, the Authority or the City be required to pay the Developer or its designee more than the amounts held in the Acquisition and Construction Fund for the Acquisition Improvements under this Agreement.

Section 2.08. Warranties; Maintenance . Developer warrants the Acquisition Improvements as to materials and workmanship and should any failure due to faulty design or materials of the Acquisition Improvements or any parts thereof occur within a period of one (1) year after formal acceptance o f the completed Acquisition Improvements by the City in writing (the “Warranty Period”), Developer shall promptly cause the needed repairs to be made at its sole cost and expense, without any expense or cost to City and without further reimbursement from the City. Developer shall provide to City, at the time of submittal of each payment request, a warranty bond equal to 10% of the value of each Acquisition Improvement.

During the Warranty Period, the City is hereby authorized to make repairs if Developer fails to make, or undertake with due diligence, the aforesaid repairs within twenty (20) calendar days after it is given written notice of such failure. In case of emergency where delay would cause serious hazard to the public, the necessary repairs may be made by City without prior notice to Developer. In all cases of failure of the Acquisition Improvements within the Warranty Period where the City has taken action in accordance with this paragraph, Developer shall reimburse City for any and all costs or expenses, direct and indirect, incurred by the City within thirty (30) calendar days of receiving invoice from the City. If the Deve loper fails to timely pay such reimbursement, the City may recover such costs or expenses from any and all Available Developer CFD Amount in the Acquisition and Construction Fund, in addition to any and all remedies at law or in equity.

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Any warranties, guarantees or other evidence of continuing obligations of third persons with respect to any Acquisition Improvement to be acquired by the City shall be delivered to the Director as part of the conveyance of the Acquisition Improvement. No later than the time for such conveyance, the Developer shall verify and confirm existence of a funding mechanism acceptable to City for the ongoing maintenance of the Acquisition Improvements in accordance with applicable City standards, policies and ordin ances and for such periods as are required by applicable City standards, policies and ordinances.

ARTICLE III

MISCELLANEOUS
Section 3.01. Indemnification and Hold Harmless . The Developer hereby assumes the defense of, and indemnifies and saves harmless the City, the Authority, the District, and their respective officers, directors, employees and agents (collectively, the “Indemnitees”), from and against all actions, damage s, claims, losses or expenses of every type and description including but not limited to personal injury, or bodily injury including death, as well as from claims for property damage which may arise from the operations of the Developer or its contractors, subcontractors, agents, or employees, to which the Indemnitees may be subjected or put, by reason of, or resulting from or alleged to have resulted from the acts or omissions of the Developer or its contractors, subcontractors, agents or employees arising out of any contract for the design, engineering and construction of the Acquisition Improvements entered into by or for the Developer, or arising out of any alleged misstatements of fact or alleged omission of a material fact m ade by the Developer, its officers, directors, employees or agents to the District’s underwriter, financial advisor, appraiser, district engineer or bond counsel or regarding the Developer, its proposed developments, its property ownership and its contract ual arrangements contained in the official statement relating to the District financing (Developer hereby acknowledges that it has been furnished a copy of the official statement for the District and has not objected thereto). Nothing in this Section 3.01 shall limit in any manner the City’s rights against any of the Developer’s architects, engineers, contractors or other consultants. Except as set forth in this Section 3.01, no provision of this Agreement shall in any way limit the extent of the responsibility of the Developer for payment of damages resulting from the operations of the Developer, its agents and employees. Nothing in this Section 3.01 shall be understood or construed to mean that the Developer agrees to indemnify the Indemnitees for any w rongful acts, willful misconduct, active negligence or omissions to act of the Indemnitees. 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. Acceptance by City of any insurance certificates or endorsements 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 foregoing indemnity obligation of the Developer shall survive the termination or expiration of this Agreement.

Section 3.02. Audit. The City shall have the right, during normal business hours and upon the giving of ten days’ written notice to the Developer, to review all books and records of the

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Developer pertaining to costs and expenses incurred by the Developer (for which the Developer seeks reimbursement pursuant to this Agreement) in constructing the Acquisition Improvements.

Section 3.03. Cooperation. The City and the Developer agree to cooperate with respect to the completion of the financing of the Acquisition Improvements by the District through the levy of the Special Taxes and issuance of CFD 22A Bonds. The City and the Developer agree to meet in good faith to resolve any differences on future matters which are not specifically covered by this Agreement.

Section 3.04. General Standard of Reasonableness . Any provision of this Agreement which requires the consent, approval or acceptance of either party hereto or any of their respective employees, officers or agents shall be deemed to require that the consent, approval or acceptance not be unreasonably wi thheld or delayed, unless the provision expressly incorporates a different standard. The foregoing provision shall not apply to provisions in the Agreement which provide for decisions to be in the sole discretion of the party making the decision.

Section 3.05. Third Party Beneficiaries. It is expressly agreed that there are no third party beneficiaries of this Agreement, including without limitation any owners of Bonds, any of the City’s, District’s or Developer’s contractors for the Acquisition Improvements and any of the City’s, District's or the Developer’s agents and employees.

Section 3.06. Conflict with Other Agreements . Nothing contained herein shall be construed as releasing the Developer or the City from any condition of development or requirement imposed by any other agreement between the City and the Developer, and, in the event of a conflicting provision, the othe r agreement shall prevail unless the conflicting provision is specifically waived or modified in writing by the City and the Developer.

Section 3.07. Notices. All invoices for payment, reports, other communication and notices relating to this Agreement shall be mailed or e-mailed to:

If to the City:

Chief Financial Officer
City of Folsom
50 Natoma Street
Folsom, CA 95630
E-mail: [email protected]

With a copy to:

City Attorney
City of Folsom
50 Natoma Street
Folsom, CA 95630
E-mail: [email protected]
If to the Developer:

Price Walker
Elliott Homes, Inc.
340 Palladio Parkway, Suite 521,
Folsom, CA 95630
E-mail: [email protected]

With a copy to:

Chad Roberts
Hefner Law
2150 River Plaza Drive, Suite 450
Sacramento, CA 95833
Email: [email protected]

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Either party may change its address by giving notice in writing to the other party.

Section 3.08. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.

Section 3.09. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. Any action brought relating to this Agreement shall be held exclusively in a state court in the County of Sacramento.

Section 3.10. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s r ight to insist and demand strict compliance by the other party with the terms of this Agreement.

Section 3.11. Singular and Plural; Gender . As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.

Section 3.12. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

Section 3.13. Successors and Assigns. This Agreement is binding upon the heirs, assigns and successors -in-interest of the parties hereto. The Developer may not assign its rights or obligations hereunder, except to successors-in-interest to the property within the District, without the prior written consent of the City, which consent shall not be unreasonably withheld.

Section 3.14. Remedies in General. It is acknowledged by the parties that the City would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or the application thereof, and therefore the Developer hereby waives any and all claims for damages against the City and its officers, agents and employees for breach of this Agreement. This waiver of damages by Developer shall not preclude any action by Developer to specifically enforce the obligations of the City hereunder to review and approve for acceptance and acquisition the Acquisition Improvements constructed by Developer in accordance with the terms hereof and to process applications for payment with the CFD Administrator for payment to Developer from the Acquisition and Construction Fund of the approved Acquisition Price for each of the Acquisition Improvements completed by Developer.

The parties further acknowledge that damages are not a remedy under this Agreement, and thus, while in general each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, the City shall not be liable in damages to the Developer, or to any assignee or transferee of the Developer. The Developer may, without any claim for damages of any kind, in addition to other rights or remedies, institute an action to cure, correct, specifically enforce or remedy any default in the processing of the payments to the Developer specified in this Agreement. Subject to the foregoing, the Developer covenants not to sue for or claim any damages for any alleged breach of, or dispute which arises out of, this Agreement.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written above.

DEVELOPER:

ELLIOTT HOMES, INC.,
an Arizona corporation

By: ________________________
Name: ________________________
Its: ________________________

CITY:

CITY OF FOLSOM, A Municipal Corporation:

Date

Bryan Whitemyer, City Manager

ATTEST:

Christa Freemantle, City Clerk

FUNDING AVAILABLE:

Stacey Tamagni, Chief Financial Officer

ORIGINAL APPROVED AS TO CONTENT:

Rebecca Neves, Director
Public Works Department

ORIGINAL APPROVED AS TO FORM:

Sari Dierking, City Attorney

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EXHIBIT A TO THE ACQUISITION AGREEMENT

DESCRIPTION OF ACQUISITION IMPROVEMENTS AND ESTIMATED AMOUNTS ACQUISITION IMPROVEMENTS1 ESTIMATED AMOUNTS

1. Mass Grading
Any and all mass grading designed to meet the needs of
development within CFD 22A, including:

(a) streets;
(b) parks and open spaces;
(c) drainage facilities, outfalls and water quality measures, detention/retention basins, drainage ways/channels, and access roads, gates and fencing.

$18,330,418

2. Roadway Improvements for Empire Ranch Road
Any and all roadway improvements designed to meet the needs of development within CFD 22A, including:

(a) fine grading and paving, curbs, gutter and sidewalks; (b) city owned sanitary sewer pipe, manholes and
appurtenances;
(d) signing, striping, site lighting, pull boxes and
appurtenances;
(e) storm drain pipe, manholes and appurtenances.
$4,129,237

3. Roadway Improvements for Folsom Heights Phase 1
Any and all roadway improvements designed to meet the needs of development within CFD 22A, including:

(a) fine grading and paving, curbs, gutter and sidewalks; (b) sanitary sewer pipe, manholes and appurtenances for 80 lots in the Phase 1 development;
(c) signing, striping, site lighting, pull boxes and
appurtenances;
(d) storm drain pipe, manholes and appurtenances.
$20,821,793

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EXHIBIT B TO THE ACQUISITION AGREEMENT

DESCRIPTION OF ELIGIBLE PORTIONS

OF ACQUISITION IMPROVEMENTS,

INCLUDING RELATED DESIGN COSTS

[None]

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EXHIBIT C TO THE ACQUISITION AGREEMENT

DISBURSEMENT REQUEST FORM
(Acquisition Improvement or Eligible Portion)

To: Folsom Ranch Financing Authority CFD Administrator (Community Facilities District No. 22A)
Attention: ____________________
E-mail: ____________________
Phone: ____________________
Re: Community Facilities District No. 22A [Improvement Area No. __] Disbursement
The undersigned, a duly authorized officer of the Developer, hereby requests a withdrawal from the City of Folsom Community Facilities District No. 22A [Improvement Area No. __] Acquisition and Construction Fund, as follows:

Request Date: [Insert Date of Request]
Withdrawal Amount: [Insert Acquisition Price/Installment Payment] Acquisition Improvements: [Insert Description of Acquisition Improvement(s)/Eligible Portion(s) from Exhibit A]
Payment Instructions: [Insert Wire Instructions or Payment Address for Construction Lender, or Developer or other Developer
designee provided by the Developer after termination of direct payments to Construction Lender per Section 2.07] The undersigned hereby certifies as follows:

The Withdrawal is being made in accordance with a permitted use of the monies pursuant to the Acquisition Agreement and the Withdrawal is not being made for the purpose of reinvestment.

None of the items for which payment is requested have been reimbursed previously from the Acquisition and Construction Fund.

If the Withdrawal Amount is greater than the funds held in the Acquisition and Construction Fund, the CFD Administrator is authorized to pay the amount of such funds (excluding any amounts being retained therein as directed by the City in lieu of Performance and Payment Bonds and/or for punch list work) and to pay remaining amount(s) as funds are subsequently deposited in and/or become available for payment from the Acquisition and Construction Fund, should that occur.

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Developer:

Elliott Homes, Inc.

Authorized Representative
Approved By:

City of Folsom

City Engineer

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EXHIBIT D TO THE ACQUISITION AGREEMENT

INSURANCE REQUIREMENTS

NOTE: The word “Consultant” in this Exhibit refers to either “Consultant”, “Developer” or “Contractor” as the term is used in the Agreement/Contract to which this Exhibit is attached.

A. During the term of this Agreement, Consultant shall maintain in full force and effect at all times during the term of the contract, at its sole cost and expense, policies of insurance as set forth herein:

1.General Liability:
a. General liability insurance including, but not limited to, protection for claims of bodily injury and property damage liability, personal and advertising injury liability and product and completed operations liability. b. Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage form CG 0001 (occurrence).
c. Claims-made coverage is not acceptable.
d. The limits of liability shall not be less than:

Each occurrence: One Million Dollars ($1,000,000)
Products & Completed Operations: One Million Doll ars ($1,000,000) Personal & Advertising Injury: One Million Dollars ($1,000,000) e. If a general aggregate limit of liability is used, the minimum general aggregate shall be twice the ‘each occurrence’ limit or the policy shall contain an endorsement stating that the general aggregate limit shall apply separately to the project that is the subject of the contract.
f. If a products and completed operations aggregate limit of liability is used, the minimum products and completed operation aggregate shall be twice the ‘each occurrence’ limit or the policy shall contain an endorsement stating that the products and completed operations aggregate limit shall apply separately to the project which is the subject of the contract.
g. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

2.Automobile Liability:
a. Automobile liability insurance providing protection against claims of bodily injury and property damage arising out of ownership, operation, maintenance, or use of owned, hired, and non-owned automobiles.
b. Coverage shall be at least as broad as Insurance Services Office Automobile Liability coverage form CA 0001, symbol 1 (any auto).

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c. The limits of liability per accident shall not be less than:

Combined Single Limit One Million Dollars ($1,000,000)

d. If Automobile Liability coverage, as required above, is provided by the Commercial General Liability form, the General Liability policy shall include an endorsement providing automobile liability as required above.

3. Workers’ Compensation
a. Workers’ Compensation Insurance, with coverage as required by the State of California (unless the Consultant is a qualified self-insurer with the State of California), and Employer’s Liability coverage.
b. Employer’s Liability Coverage with a limit not less than $1,000,000 per accident for bodily injury and disease.
c. Consultant shall sign and file with the City department responsible for this Agreement/Contract the Worker’s Compensation Certificate contained in the Project Manual.

4. Insurance Required in the Supplementary Conditions: Consultant shall be required to comply with all conditions as stipulated in the Standard Construction Specifications, any supplementary conditions and any special provisions as applicable.

5. Professional Liability Insurance: If required, errors and omissions, malpractice or professional liability insurance with coverage of not less than $1,000,000 per occurrence.

6. Other Insurance Provisions:
a. The Consultant’s General Liability and Automobile Liability policies shall contain, or be endorsed to contain, the following provisions:
i. The City, its officials, employees, agents and volunteers shall be covered and specifically named as additional insureds on a separate endorsement as respects liability arising out of activities performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied, or used by the Consultant, or automobiles owned, leased, hired, or borrowed by the Consultant in a form acceptable to the City Attorney.
ii. The Endorsement requirement may be satisfied with express provisions in the insurance policy(ies) which identifies any person or entity required to be included as an insured under the policy. A copy of the declarations page identifying the policy number, and pertinent provisions in the policy providing additional insured coverage shall be provided to the City. iii. The policy shall contain no special limitations on the scope of coverage afforded to the City, its officials, employees, agents or volunteers. b. For any claims related to the project, the Consultant’s General Liability and Automobile insurance coverage shall be primary insurance in their coverage of the City and its officers, officials, employees, agents, or volunteers, and any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

08/11/2026 Item No.16.

4900-5459-7562v3/022919-0002 D-3

c. Any failure to comply with reporting or other provisions of the policies on the part of the Consultant, including breaches of warranties, shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers.
d. The Consultant’s Workers Compensation and Employer’s Liability policies shall contain an endorsement that waives any rights of subrogation against the City, its officers, officials, employees, agents, and volunteers.
e. Each insurance policy shall state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits, non- renewed, or materially changed except after 30 days prior written notice by certified mail has been given to the City. Ten days prior written notice by certified mail shall be given to the City in the event of cancellation due to nonpayment of premium.

7. Acceptability of Insurers: Insurance is to be placed with insurers with a Bests' rating of no less than A:VII.

8. The Consultant shall furnish the City with Certificates of Insurance and endorsements or insurance binders, signed by a person authorized by the insurer to bind coverage on its behalf, evidencing the coverage required by this section, the Stand ard Specifications, Special Provisions and/or any Supplementary Conditions. The Consultant shall furnish complete, certified copies of all required insurance policies, including original endorsements specifically required hereunder if requested.

9. The Consultant shall report, by telephone to the Project Manager within 24 hours, and also report in writing to the City within 48 hours, after Consultant or any Subcontractors or agents have knowledge of, any accident or occurrence involving death of or serious injury to any person or persons, or damage in excess of Ten Thousand Dollars ($10,000) to property of the City or others, arising out of any work done by or on behalf of the Consultant as part of the contract.

10. Such report shall contain:
a. the date and time of the occurrence,
b. the names and addresses of all persons involved, and c. a description of the accident or occurrence and the nature and extent of the injury or damage.

11. The City, at its discretion, may increase the amounts and types of insurance coverage required hereunder at any time during the term of the contract by giving 30 days written notice.

12. If the Consultant fails to procure or maintain insurance as required by this section, the Standard Specifications, and any Supplementary Conditions, or fails to furnish the City with proof of such insurance, the City, at its discretion,

08/11/2026 Item No.16.

4900-5459-7562v3/022919-0002 D-4

may procure any or all such insurance. Premiums for such insurance procured by the City shall be deducted and retained from any sums due the Consultant under the contract.

13. Failure of the City to obtain such insurance shall in no way relieve the Consultant from any of its responsibilities under the contract.

14. The making of progress payments to the Consultant shall not be construed as relieving the Consultant or its Subcontractors of responsibility for loss or direct physical loss, damage, or destruction occurring prior to final acceptance by the City.

15. The failure of the City to enforce in a timely manner any of the provisions of this s ection shall not act as a waiver to enforcement of any of these provisions at any time during the term of the contract.

16. In the event Consultant carries Excess Liability Coverage, the Excess Liability Coverage shall apply to any and all claims related to the project on a primary and non -contributory basis, and the City’s insurance or self- insurance coverage shall be excess to the Consultant’s Excess Liability Coverage.

08/11/2026 Item No.16.

Folsom City Council
Staff Report

1 MEETING DATE:

8/11/2026
AGENDA SECTION:

Consent Calendar
SUBJECT: Resolution No. 11687 – A Resolution Authorizing the City Manager to Execute a Purchase Agreement with Folsom Lake Ford for the Purchase of One Ford Vehicle for $68,664.18, and Use of Funds from Landscaping and Lighting Districts and Community Facility Districts (22-L&L)(9-CFD)

FROM: Parks and Recreation Department

RECOMMENDATION / CITY COUNCIL ACTION

Staff recommends the City Council approve Resolution No. 11687 – A Resolution Authorizing the City Manager to Execute a Purchase Agreement with Folsom Lake Ford for the Purchase of One Ford Vehicle for $68,664.18, and Use of Funds from Landscaping and Lighting Districts and Community Facility Districts (22-L&L)(9-CFD).

BACKGROUND / ISSUE

The Municipal Landscape Services (MLS) Division utilizes fleet vehicles on a daily basis to inspect, maintain, and respond to service requests for the City’s Landscaping and Lighting Districts (L&Ls) and Community Facility Districts (CFDs). One of the Division’s existing vehicles has reached the end of its useful service life due to its age (1999), mileage (84,548), and increasing maintenance needs. As the vehicle continues to age, repair costs and downtime have increased, reducing its reliability and availability for daily operations.

Replacing the existing vehicle will improve operational efficiency, enhance employee safety by providing a more reliable vehicle equipped with current safety features, and reduce ongoing maintenance and repair expenses. The replacement vehicle is intended to serve the same operational purpose as the existing unit and will ensure that MLS staff can continue to effectively perform inspections, respond to maintenance requests, transport personnel and equipment, and maintain the City’s public landscape assets.

08/11/2026 Item No.17.
2 The proposed purchase is a planned fleet replacement and does not expand the City’s fleet inventory. Instead, it replaces an existing vehicle that will be removed from service in accordance with the City’s fleet management practices.

POLICY / RULE

In accordance with Chapter 2.36.120 of the Folsom Municipal Code, contracts for supplies, equipment, services, and construction with an estimated value of $77,426 or greater shall be awarded by the City Council.

The Parks and Recreation Department, in coordination with the City Fleet Division, solicited quotations from Sourcewell and Folsom Lake Ford for the purchase of a Ford F250 truck with a utility bed. Although FMC Section 2.36.170 allows for the purchase of this vehicle directly through the Sourcewell contract number without having to solicit multiple quotes, City staff also solicited a quote from Folsom Lake Ford to compare pricing and to offer an opportunity for a local dealership to bid on the purchase. Folsom Lake Ford submitted the lowest responsive quotation that met the City’s vehicle specifications and operational requirements.

This purchase is under the City Manager’s authority, however multiple departments purchase through Folsom Lake Ford, meaning the total annual purchases from the vendor exceed the City Manager’s approval authority.

ANALYSIS
The proposed vehicle purchase is a scheduled replacement of an aging MLS Division vehicle that has exceeded its useful service life. The existing vehicle has experienced increased maintenance requirements, higher operating costs, and reduced reliability, which can impact staff productivity and the Division's ability to provide timely maintenance and emergency response services. Photographs documenting the current condition of the vehicle are included in Attachment 2.

The replacement vehicle will support the MLS Division's daily operations by providing dependable transportation for staff, tools, equipment, and materials used to maintain landscaped corridors, mini-parks, open space areas, irrigation systems, street lighting, and other Landscaping and Lighting Districts, and Community Facility District assets. A reliable fleet vehicle is essential to maintaining service levels, responding to customer requests, conducting inspections, and performing routine and emergency maintenance activities throughout the City.

Replacing the vehicle at the end of its service life is consistent with the City's fleet management practices and helps minimize long-term maintenance costs while improving operational efficiency. In addition, the new vehicle will include modern safety features that enhance employee safety and reduce the likelihood of unexpected breakdowns and service interruptions.

Approval of this purchase will allow the MLS Division to continue providing efficient, reliable, and cost-effective maintenance services without increasing the overall size of the City's fleet, as the new vehicle will replace an existing unit being removed from service.

08/11/2026 Item No.17.
3 ENVIRONMENTAL REVIEW

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

FINANCIAL IMPACT

If approved, the purchase agreement with Folsom Lake Ford for the purchase of a Ford vehicle for $68,664.18 would be funded through the twenty-two (22) Landscaping and Lighting Districts, and nine (9) Community Facility Districts (Attachment 3 – Funding Breakdown).

Sufficient funds are budgeted and available for the purchase. There is no impact to the General Fund for this purchase.

ATTACHMENTS

1. Resolution No. 11687 – A Resolution Authorizing the City Manager to Execute a Purchase Agreement with Folsom Lake Ford for the Purchase of One Ford Vehicle for $68,664.18, and Use of Funds from Landscaping and Lighting Districts and Community Facility Districts (22-L&L)(9-CFD)

2. Vehicle Photos

3. Funding Breakdown

Submitted,

Kelly Gonzalez,
Parks & Recreation Director

08/11/2026 Item No.17.

Attachment 1

08/11/2026 Item No.17.

Resolution No. 11687

RESOLUTION NO. 11687

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A

PURCHASE AGREEMENT WITH FOLSOM LAKE FORD FOR THE PURCHASE OF ONE FORD VEHICLE FOR $68,664.18, AND USE OF FUNDS FROM LANDSCAPING AND LIGHTING DISTRICTS AND COMMUNITY FACILITES DISTRICTS (22- L&L)(9-CFD)

WHEREAS, the City of Folsom Municipal Landscape Services Division relies on fleet vehicles to inspect, maintain, and respond to service requests involving the Landscaping and Lighting Districts, and Community Facility Districts related to landscape corridors, streetscapes, mini-parks, open spaces, irrigation systems, street lighting, and other public infrastructures; and

WHEREAS, one of the Municipal Landscape Services Division’s existing fleet vehicles has reached the end of its useful service life due to its age, mileage, and increasing maintenance requirements, resulting in reduced reliability and high operating costs; and

WHEREAS, replacing the existing vehicle will improve operational efficiency, enhance employee safety through modern safety features, reduce ongoing maintenance expenses, and ensure the continued delivery of essential municipal landscape maintenance services; and

WHEREAS, the proposed purchase is a planned fleet replacement and will not increase the overall size of the City’s fleet, as the existing vehicle will be removed from service in accordance with the City’s fleet management practices; and

WHEREAS, sufficient funds are budgeted and available within the (22) Landscaping and Lighting Districts and (9) Community Facilities Districts; and

WHEREAS, Folsom Lake Ford provided the lowest quote; and

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute a purchase agreement with Folsom Lake Ford for the purchase of one Ford vehicle for $68,664.18.

PASSED AND ADOPTED this 11th day of August 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

08/11/2026 Item No.17.

Attachment 2

08/11/2026 Item No.17.

Attachment 2

Front of vehicle #475

08/11/2026 Item No.17.

Rear of vehicle #475

08/11/2026 Item No.17.

View of inside cab of vehicle #475

08/11/2026 Item No.17.

View of roof inside vehicle #475

08/11/2026 Item No.17.

Attachment 3

08/11/2026 Item No.17.

Attachment 3

08/11/2026 Item No.17.

Folsom City Council
Staff Report

1 MEETING DATE:

8/11/2026
AGENDA SECTION:

Consent Calendar
SUBJECT: Resolution No. 11688 – A Resolution Rejecting All Proposals for the City Hall Campus Exterior Paint Project
FROM: Parks and Recreation Department

RECOMMENDATION / CITY COUNCIL ACTION
Staff recommends the City Council approve Resolution No. 11688 – A Resolution Rejecting All Proposals for the City Hall Campus Exterior Paint Project.

BACKGROUND / ISSUE
The City of Folsom Facilities Division issued a request for proposals from qualified commercial painting contractors to perform exterior painting services for City Hall, the Folsom Community Center, the Folsom Police Department Headquarters, and the Folsom Public Library.

POLICY / RULE
In accordance with Chapter 2.36 of the Folsom Municipal Code, City Council approval is required for contracts in excess of $77,426.

In accordance with Folsom Municipal Code section 2.36.180, the City Council may reject all proposals when it is for good cause and in the best interest of the City.

ANALYSIS
On June 25, 2026, the Parks & Recreation Department advertised on PublicPurchase.com seeking proposals for the exterior painting of the Folsom City Hall, Community Center, Folsom Police Station, and the Folsom Public Library. The city requested both qualifications and a proposal from contractors for the advertised project.

The overall procurement process consisted of the following steps:
• Posting of the request for proposal package: June 25, 2026 • Pre-Proposal meeting: July 6, 2026
• Proposals Due to City: July 24, 2026 (4:00 PM)

08/11/2026 Item No.18.
2 • Proposals of Qualified Contractors Opened: July 24, 2026 • Anticipated Notice of Award: August 11, 2026

The City received 12 responses to the RFP package from the following vendors:

Company Proposal
Color New Corp $ 170,000
Affordable Quality Painting $ 189,200
Perfection Painting $ 224,000
George Masker Painting $250,000
Primal Painting $289,408
All-Star Painting $333,000
Diamond Painting $381,000
Vivid-Accent Painting $381,900
CMA Painting $385,000
Anchor Singh Painting $426,000
Pacific Rim Painting $515,000
D&H Painting $567,174

The project was publicly advertised, with the intent to recommend award to the lowest responsive and responsible proposer . Twelve proposals were received. During the initial review, Color New Corp. was determined to be non- responsive based on the understanding that only two of the three required signed addenda had been submitted. Consequently, Affordable Quality Painting was identified as the apparent successful proposer, and the results were posted on the Public Purchase procurement portal.

Following the posting of the results, Color New Corp. notified the City that all three required signed addenda had been included in its original submission and requested that the documents be re -evaluated. Upon further review, staff confirmed that all thre e signed addenda were included in the original proposal package and determined that the initial finding of non- responsiveness was made in error.

To preserve the integrity, fairness, and transparency of the public procurement process, staff recommends rejecting all bids and re -advertising the project through the Public Purchase procurement portal. Re-advertising the project will provide all interested vendors with an equal opportunity to compete under a fair and transparent procurement process while eliminating any uncertainty associated with the initial evaluation.

FINANCIAL IMPACT
Funding for this project has been identified and is available within the approved project budget. Staff does not anticipate that rejecting all proposals and re-advertising the project will result in a material financial impact; however, final project costs will be determined upon receipt of new bids or proposals.

08/11/2026 Item No.18.
3 ATTACHMENT
Resolution No. 11688 – A Resolution Rejecting All Proposals for the City Hall Campus Exterior Paint Project.

Submitted,

Kelly Gonzalez,
Parks & Recreation Director

08/11/2026 Item No.18.

Attachment 1

08/11/2026 Item No.18.

Resolution No. 11688

RESOLUTION NO. 11688

A RESOLUTION REJECTING ALL PROPOSALS FOR THE CITY HALL CAMPUS

EXTERIOR PAINT PROJECT

WHEREAS, the City of Folsom solicited proposals for the City Hall Campus Exterior Painting Project through PublicPurchase.com; and

WHEREAS, following the proposal review process, it was determined that the proposal evaluation and resulting tabulation did not accurately reflect all responsive proposals; and

WHEREAS, to ensure a fair, transparent, and consistent procurement process for all proposers, it is in the City's best interest to reject all proposals received and issue a new solicitation; and

WHEREAS, staff will repost the project and invite qualified painting contractors to submit in response to the City’s posting; and

WHEREAS, staff recommends that the City Council reject all proposals received for the City Hall Campus Exterior Painting Project for good cause and authorize the project to be resolicited.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom that all proposals received for the City Hall Campus Exterior Painting Project are hereby rejected for good cause and in the best interests of the City.

PASSED AND ADOPTED this 11
th day of August, 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

08/11/2026 Item No.18.

This page is intentionally left blank
to facilitate double-sided printing
and minimize paper use.

08/11/2026 Item No.18.

Folsom City Council
Staff Report

1 MEETING DATE:

8/11/2026
AGENDA SECTION:

Consent Calendar
ITEM TITLE: Resolution No. 11689 – A Resolution Authorizing the City Manager to Execute a Program Supplement Agreement F029 Rev. 2 to Administering Agency-State Agreement for Federal-Aid Projects No. 03-5288F15 with Caltrans for the Empire Ranch Road Interchange Project, Project No. PW1804, Federal Project No. 5288(043)

FROM: Public Works Department

RECOMMENDATION / CITY COUNCIL ACTION

The Public Works Department recommends that the City Council pass and adopt Resolution No. 11689 – A Resolution Authorizing the City Manager to Execute a Program Supplement Agreement F029 Rev. 2 to Administering Agency-State Agreement for Federal-Aid Projects No. 03-5288F15 with Caltrans for the Empire Ranch Road Interchange Project, Project No. PW1804, Federal Project No. 5288(043).

BACKGROUND / ISSUE

The City first began work on the Empire Ranch Road interchange in 2007/2008, completing much of the preliminary design and environmental clearance using Federal funds. Work on the project was halted, though, when the City shifted its design and funding priorities to the Folsom Lake Crossing Project. In 2016, staff were informed by Caltrans that $1,295,856 in federal funds left over from the prior work on this interchange had been made available for the City’s use. The City executed Program Supplement Agreement F029 with Caltrans to receive the available federal funding.

In November 2017, City Council passed and adopted Resolution No. 10039, authorizing the City Manager to execute a consultant services agreement with Drake, Haglan & Associates (now Dewberry Engineers, Inc.) to prepare the project authorization and environmental documentation for the project and for an appropriation of funds for a not -to-exceed amount of $1,308,950. The

08/11/2026 Item No.19.
2 contract with Dewberry Engineers, Inc. has undergone five amendments to date, each extending the original contract period and necessary additional project budget to complete each phase, bringing the total not -to-exceed contract amount to $1,782,081. Work associated with that agreement is ongoing , and reimbursements in the amount of $ 1,467,724.11 from Caltrans have been received to date.

Through a Highway Infrastructure Program (HIP) grant, funding in the amount of $1,655,404 was made available for the project design, as well as $844,596 through a Regional Surface Transportation Program (RSTP) grant.

In 2021, federal funding in the amount of $2,500,000 was made available for the project design through a grant awarded by the Sacramento Area Council of Governments. City Council passed and adopted Resolution No. 10742 on November 9, 2021, authorizing the City Manager to execute a revision to the previously executed Program Supplement Agreement.

An additional $4,000,000 has been made available for the project through Community Project Funded Congressional Directed Spending (CPFCDS) Program funds.

POLICY / RULE

Execution of an Administering Agency-State Agreement and/or Program Supplement Agreement requires City Council approval.

ANALYSIS

The City of Folsom is required to execute the Program Supplement Agreement with Caltrans Local Assistance to proceed with the preliminary engineering, right -of-way, environmental clearance, and design phases of the Empire Ranch Road Interchange Project . This project is eligible for reimbursement from Caltrans through the various funding sources outlined in the Program Supplement Agreement.

The City must invoice Caltrans to receive any federal or state reimbursement. Before invoicing Caltrans, the City must approve a Program Supplement Agreement for the Empire Ranch Road Interchange Project. This is a Caltrans standard form that has previously been approved by the City Attorney for other projects, including:

• Folsom Boulevard Improvements
• Historic Folsom Station Phase I Project
• Green Valley Road Widening
• Riley Street Safety Improvement Project
• Folsom Lake Crossing Phase II Safety Improvements

The Empire Ranch Road Interchange Project was included in the Fiscal Year 202 6-27 Capital Improvement Plan with a total project budget of $9,282,081, utilizing the Transportation

08/11/2026 Item No.19.
3 Improvement Fund (Fund 446) and Highway 50 Interchange Capital Fund (Fund 444) . The breakdown of total project grant funding is listed below:

High Priority Projects Program (HPP) $ 1,295,856
Highway Infrastructure Program (HIP) $ 1,655,404
Regional Surface Transportation Program (RSTP) $ 844,596 Regional Surface Transportation Program (RSTP) $ 2,500,000 Community Project Funded Congressional Directed Spending (CPFCDS) $ 4,000,000 Total Project Grant Funding $10,295,856

The total grant funding available for the project ($10,295,856) exceeds the current FY 2026–27 CIP project budget ($9,282,081). A CIP budget amendment/appropriation will be brought to City Council in a separate action if needed to align the programmed budget with total available grant allocations.

FINANCIAL IMPACT

If the City Council adopts the resolution authorizing the City Manager to execute a program supplement agreement with Caltrans for the Empire Ranch Road Interchange Project, Project No.

PW1804, this portion of the project process will have no direct financial impact on the City.

ENVIRONMENTAL REVIEW

This action authorizes the City Manager to execute a Program Supplement Agreement with Caltrans for the Empire Ranch Road Interchange Project . Approval of the agreement is an administrative action and not a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(5).

ATTACHMENTS

1. Resolution No. 11689 – A Resolution Authorizing the City Manager to Execute a Program Supplement Agreement F029 Rev. 2 to Administering Agency -State Agreement for Federal-Aid Projects No. 03 -5288F15 with Caltrans for the Empire Ranch Road Interchange Project, Project No. PW1804, Federal Project No. 5288(043)

2. Program Supplement No. F0 29 Rev. 2 for Federal-Aid Project No 03 -5288F15, Federal Project No. 5288(043)

Submitted,

_________________________________________________________________ Rebecca Neves, PUBLIC WORKS DIRECTOR/CITY ENGINEER

08/11/2026 Item No.19.

ATTACHMENT 1
Resolution No. 11689 – A Resolution Authorizing the City Manager to Execute a Program Supplement Agreement F029 Rev. 2 to Administering Agency-State Agreement for Federal-Aid Projects No. 03-5288F15 with Caltrans for the Empire Ranch Road Interchange Project, Project No. PW1804, Federal Project No. 5288(043)

08/11/2026 Item No.19.

Resolution No. 11689

RESOLUTION NO. 11689

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE PROGRAM SUPPLEMENT AGREEMENT F029 REV. 2 TO ADMINISTERING AGENCY-STATE AGREEMENT FOR FEDERAL-AID PROJECTS NO. 03-5288F15 WITH CALTRANS FOR THE EMPIRE RANCH ROAD INTERCHANGE PROJECT, PROJECT NO.

PW1804, FEDERAL PROJECT NO. 5288(043)

WHEREAS, the City of Folsom desires to continue preliminary engineering, right-of-way, and environmental documentation for the freeway interchange on US Highway 50 at Empire Ranch Road (US-50/Empire Ranch Interchange); and

WHEREAS, the City of Folsom previously executed Master Agreement No. 03-5288 for Federal-Funded Projects with the State of California Department of Transportation in order to receive funding; and

WHEREAS, the City of Folsom previously executed Program Supplement Agreement F029 to Administering Agency-State Agreements for Federal-Aid Projects No. 03-5288F15 with Caltrans for Federal Project No. 5288(043) to receive $1,295,856; and

WHEREAS, the City of Folsom previously executed Program Supplement Agreement F029 Rev.1 to Administering Agency-State Agreement for Federal-Aid Projects No. 03-5288F15 with Caltrans for Federal Project No. 5288(043) to receive $2,500,000; and

WHEREAS, the City of Folsom will execute Program Supplement Agreement F029 Rev. 2 to Administering Agency -State Agreement for Federal -Aid Projects No. 03 -5288F15 with Caltrans to Federal Project No. 5288(043) to receive $4,000,000; and

WHEREAS, funds received will be credited to the Transportation Improvement Fund (Fund 446) and the Highway 50 Interchange Capital Fund (Fund 444); and

WHEREAS, the agreement will be in a form acceptable to the City Attorney:

NOW, THEREFORE, BE IT RESOLVED that the City Council of th e City of Folsom Authorizes the City Manager to Execute Program Supplement Agreement F029 Rev. 2 to Administering Agency-State Agreement for Federal -Aid Projects No. 03 -5288F15 with Caltrans for the US -50 at Empire Ranch Road ( Empire Ranch Road Interchange Project), Project No.

PW1804, Federal Project No. 5288(043).

PASSED AND ADOPTED this 11th day of August 2026, by the following roll-call vote:

AYES: Councilmember(s):

NOES: Councilmember(s):

ABSENT: Councilmember(s):

ABSTAIN: Councilmember(s):

08/11/2026 Item No.19.

Resolution No. 11689

__________________________________
Justin Raithel, MAYOR

ATTEST:

______________________________
Christa Freemantle, CITY CLERK

08/11/2026 Item No.19.

ATTACHMENT 2
Program Supplement No. F029 Rev. 2 for Federal-Aid Project No 03- 5288F15, Federal Project No. 5288(043)

08/11/2026 Item No.19.

F029 Rev. 2
FOR FEDERAL-AID PROJECTS NO 03-5288F15
0318000300
June 04, 2026
03-SAC-50-FOL
HPLULN-5288(043)
5288
This Program Supplement hereby adopts and incorporates the Administering Agency-State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 10/18/2016 and is subject to all the terms and conditions thereof. This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the Administering Agency on (See copy attached).

The Administering Agency further stipulates that as a condition to the payment by the State of any funds derived from sources noted below obligated to this PROJECT, the Administering Agency accepts and will comply with the special covenants or remarks set forth on the following pages.

US-50 at Empire Ranch Road
Construct 4 Lane Interchange 0.0(MILES)
Federal FundsEstimated Cost Matching Funds
Z911 $57,477.00
LY10 $1,049,480.00
Z906 $1,176,179.00
Z910 $246,105.00
Z920 $35,130.00
HY10 $246,376.00
Z24E $844,596.00
Z007 $140,513.00
Y230 $2,500,000.00
Y603 $4,000,000.00

CITY OF FOLSOM
By ________________________________ By ________________________________ Title _______________________________
Date _______________________________
Attest _______________________________ Date _______________________________ Division of Local Assistance
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$10,295,856.00 $0.00 $0.00
Chief, Office of Project Management Oversight

STATE OF CALIFORNIA
Department of Transportation
1Page of 7Program Supplement 03-5288F15-F029-R2-Page 338 08/11/2026 Item No.19.

SPECIAL COVENANTS OR REMARKS
03-SAC-50-FOL
HPLULN-5288(043)
Accounting Officer _______________________ Date _______________ $10,295,856.00

1. A. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual.

B. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s).

C. STATE and ADMINISTERING AGENCY agree that any additional funds which might be made available by future Federal obligations will be encumbered on this PROJECT by use of a STATE-approved "Authorization to Proceed" and Finance Letter. ADMINISTERING AGENCY agrees that Federal funds available for reimbursement will be limited to the amounts obligated by the Federal Highway Administration.

D. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days of project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract.

Failure to do so will cause a delay in the State processing invoices for the construction phase.

Attention is directed to Section 15.6 "Award Package" of the Local Assistance Procedures Manual.

E. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumbrances for State funded projects, as well as to suspend invoice payments for any on-going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period.

If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount.

ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a 2 Page of 7Program Supplement 03-5288F15-F029-R2-
06/04/2026

08/11/2026 Item No.19.

SPECIAL COVENANTS OR REMARKS
03-SAC-50-FOL
HPLULN-5288(043)
"Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual.

F. Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal-assisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of Federal-assisted contracts. The Administering Agency's DBE Implementation Agreement is incorporated by reference in this Agreement. Implementation of the DBE Implementation Agreement, including but not limited to timely reporting of DBE commitments and utilization, is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Administering Agency of its failure to carry out its DBE Implementation Agreement, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).

G. Any State and Federal funds that may have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date shown on the State approved project finance letter. Per Government Code Section 16304, all project funds not liquidated within these periods will revert unless an executed Cooperative Work Agreement extending these dates is requested by the ADMINISTERING AGENCY and approved by the California Department of Finance.

ADMINISTERING AGENCY should ensure that invoices are submitted to the District Local Assistance Engineer at least 75 days prior to the applicable fund Reversion Date to avoid the lapse of applicable funds. Pursuant to a directive from the State Controller's Office and the Department of Finance; in order for payment to be made, the last date the District Local Assistance Engineer can forward an invoice for payment to the Department's Local Programs Accounting Office for reimbursable work for funds that are going to revert at the end of a particular fiscal year is May 15th of the particular fiscal year. Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement involving applicable funds that is not received by the Department's Local Programs Accounting Office at least 45 days prior to the applicable fixed fund Reversion Date will not be paid. These unexpended funds will be irrevocably reverted by the Department's Division of Accounting on the applicable fund Reversion Date. 3Page of 7Program Supplement 03-5288F15-F029-R2-Page 340 08/11/2026 Item No.19.

SPECIAL COVENANTS OR REMARKS
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H. As a condition for receiving federal-aid highway funds for the PROJECT, the Administering Agency certifies that NO members of the elected board, council, or other key decision makers are on the Federal Government Exclusion List. Exclusions can be found at www.sam.gov.

2. A. ADMINISTERING AGENCY shall conform to all State statutes, regulations and procedures (including those set forth in the Local Assistance Procedures Manual and the Local Assistance Program Guidelines, hereafter collectively referred to as "LOCAL ASSISTANCE PROCEDURES") relating to the federal-aid program, all Title 23 Code of Federal Regulation (CFR) and 2 CFR Part 200 federal requirements, and all applicable federal laws, regulations, and policy and procedural or instructional memoranda, unless otherwise specifically waived as designated in the executed project-specific PROGRAM SUPPLEMENT.

B. Invoices shall be formatted in accordance with LOCAL ASSISTANCE PROCEDURES.

C. ADMINISTERING AGENCY must have at least one copy of supporting backup documentation for costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.

D. Indirect Cost Allocation Plan/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to STATE (Caltrans Audits & Investigations) for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect costs incurred within each fiscal year being claimed for State and federal reimbursement. ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the Local Assistance Procedural Manual, and the ICAP/ICRP approval procedures established by STATE.

E. STATE will withhold the greater of either two (2) percent of the total of all federal funds encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.

F. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid rank and file STATE employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rates,
4Page of 7Program Supplement 03-5288F15-F029-R2-Page 341 08/11/2026 Item No.19.

SPECIAL COVENANTS OR REMARKS
03-SAC-50-FOL
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ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand within thirty (30) days of such invoice.

G. ADMINISTERING AGENCY agrees to comply with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards.

H. ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors will be obligated to agree, that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items.

I. Every sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR, Part 200, 23 CFR, 48 CFR Chapter 1, Part 31, Local Assistance Procedures, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), and other applicable STATE and FEDERAL regulations.

J. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, 23 CFR, 48 CFR, Chapter 1, Part 31, and other applicable STATE and FEDERAL regulations, are subject to repayment by ADMINISTERING AGENCY to STATE.

K. STATE reserves the right to conduct technical and financial audits of PROJECT WORK and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by the following paragraph:

ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts and ADMINISTERING AGENCY shall furnish copies thereof if requested.

All of the above referenced parties shall make such AGREEMENT, PROGRAM SUPPLEMENT, and contract materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years from the date of submission of the final expenditure report by the STATE to the FHWA.

L. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and 5Page of 7Program Supplement 03-5288F15-F029-R2-Page 342 08/11/2026 Item No.19.

SPECIAL COVENANTS OR REMARKS
03-SAC-50-FOL
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maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices set to or paid by STATE.

M. ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audit Act of 2 CFR 200 if it expends $750,000 or more in Federal Funds in a single fiscal year of the Catalogue of Federal Domestic Assistance.

N. ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting the terms of this AGREEMENT in the schedule of projects to be examined in ADMINISTERING AGENCY's annual audit and in the schedule of projects to be examined under its single audit prepared in accordance with 2 CFR, Part 200.

O. ADMINISTERING AGENCY shall not award a non-A&E contract over $5,000, construction contracts over $10,000, or other contracts over $25,000 [excluding professional service contracts of the type which are required to be procured in accordance with Government Code sections 4525 (d), (e) and (f)] on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. Contracts awarded by ADMINISTERING AGENCY, if intended as local match credit, must meet the requirements set forth in this AGREEMENT regarding local match funds.

P. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain provisions B, C, F, H, I, K, and L under Section 2 of this agreement.

3. In the event that construction of this project of the initial federal authorization for right of way is not started by the close of the twentieth fiscal year following the fiscal year in which the right of way is authorized, the ADMINISTERING AGENCY shall repay the Federal Highway Administration through Caltrans the sum of Federal funds paid under the terms of this agreement.

Authorizing the ROW phase of a project as Advance Construction does not exempt the project from the provisions of 23 U.S.C. 108(a)(2), and 23 CFR 630.112(c)(1).

4. Appendix E of the Title VI Assurances (US DOT Order 1050.2A) During the performance of this agreement, the ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractor, (hereinafter referred to as the "contractor") agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to:

Pertinent Nondiscrimination Authorities:
6Page of 7Program Supplement 03-5288F15-F029-R2-Page 343 08/11/2026 Item No.19.

SPECIAL COVENANTS OR REMARKS
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A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21.

B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); C. Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), (prohibits discrimination on the basis of sex);
D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27; E. The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
F. Airport and Airway Improvement Act of 1982, (49 U.S.C. 4 71, Section 4 7123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or
activities" to include all of the programs or activities of the Federal-aid recipients, subrecipients and contractors, whether such programs or activities are Federally funded or not);
H. Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38; I. The Federal Aviation Administration's Nondiscrimination statute (49 U.S.C. 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); J. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);
K. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq). 7Page of 7Program Supplement 03-5288F15-F029-R2-Page 344 08/11/2026 Item No.19.

Folsom City Council
Staff Report

1 MEETING DATE:

8/11/2026
AGENDA SECTION:

New Business
ITEM TITLE: Presentation of Community Survey and Civic Dialogue Results and Proposed Workplan by Change.org Representatives, and Staff Direction

FROM: City Manager's Office

RECOMMENDATION / CITY COUNCIL ACTION
Receive a report on the results of the Folsom Ideas for Change civic dialogue process, provide initial input on the proposed workplan, and authorize Change.org to reference its work with the City of Folsom in future communications and promotional materials.

BACKGROUND / ISSUE
The City of Folsom partnered with Change.org to gather input from residents on key community issues. This effort provides the City Council with data-informed insights from a broad cross- section of the community to inform future policy, priority, and planning decisions.

Change.org developed its nonprofit "Local Civic Dialogues" platform to help cities collect representative resident feedback. According to Change.org, the platform surfaces common priorities, identifies areas of agreement, broadens participation, and supports local decision- making.

In April 2026, the City Council directed staff to launch the process with Change.org. The initiative, Folsom Ideas for Change, focused on two primary topics: growth and infrastructure.

The process included an online input phase followed by a facilitated civic dialogue with a representative group of residents.

Following the project's conclusion, Change.org delivered the community input results and a proposed workplan for next steps to help guide future City Council decisions.

ANALYSIS
A summary of the engagement process, participation, methodology, and findings is included in Attachment 1.

08/11/2026 Item No.20.
2 Following the civic dialogue process, Change.org reviewed the results and developed the proposed workplan, included as Attachment 2. The workplan outlines near- and longer-term recommendations based on areas of community support. Many of the recommendations align with existing City initiatives, projects, or policy discussions that are already underway or have previously been considered. Change.org has also indicated it is willing to continue supporting implementation efforts at no cost to the City.

The workplan is being presented to the City Council for initial review and input. Implementation of any recommended actions is contingent upon City Council direction, alignment with City priorities, and available funding.

In addition, as part of its previous direction, the City Council requested that the City of Folsom's name not be used in Change.org marketing or promotional materials without prior approval and until the City completed the process and was satisfied with the outcome. With the civic dialogue process now complete and staff satisfied with the results, staff seeks City Council authorization to allow Change.org to identify Folsom as a participating community and reference its work with the City in future communications and promotional materials.

FINANCIAL IMPACT
There was no direct cost to the City to participate in the Change.org civic dialogue process.

Change.org has offered to support workplan implementation projects at no charge. Financial impacts will depend on which specific recommendations are pursued, and items requiring additional funding will return to the City Council for consideration.

ATTACHMENTS

1. Folsom Ideas for Change – Civic Dialogue Results

2. Change.org Proposed Workplan

Submitted,

Bryan Whitemyer
City Manager

08/11/2026 Item No.20.

Attachment 1

08/11/2026 Item No.20.

Civic Dialogue Results
FOLSOM

08/11/2026 Item No.20.
“What would positive
change look like in
Folsom?”
Change.org and the City of Folsom teamed up to start a
conversation that crossed boundaries:

Get over a thousand people
to share their ideas and
vote on the ideas of others.

Identify their common
interests, despite
differences on other issues.

Bring 100 people together
for a conversation about
those resonant issues.

08/11/2026 Item No.20.
430 IDEAS
from 1,039 residents.

Identify consistent, reliable and
adequate funding to maintain parks,
trails, roads, storm drains and open
space to preserve quality of life and
property values.

Less expansion, more focus on
infrastructure.

Don’t build infrastructure unless funding
for future maintenance is earmarked in
the budget.

Adjust the intersection lights along
Folsom Boulevard to match the light rail
trains.

Increase the developer fees to cover the
actual cost of new infrastructure.

Conduct a study of E. Bidwell traffic
patterns to relieve congestion.

Implement traffic flow improvement.

More raw nature, less endless suburban
sprawl.

Develop long-term plan for
financial sustainability that
preserves quality of life for
Folsom residents.

In Phase 1, we received 68,123 votes on

08/11/2026 Item No.20.

Our analysis identified
priorities with broad
support across 3 opinion
groups
Civic Infrastructure
Stewards
Focus on civic infrastructure stewardship — public access, support for aging residents and unhoused neighbors, and preserving Folsom’s independence.

Balanced Growth
Skeptics
Question the city’s current growth model. Push for smarter mobility — transit, walkability, traffic enforcement — and demand new development pay for itself.

Small Town
Traditionalists
Preserve Folsom’s small-town identity — strict
enforcement, slower growth, fewer apartments, and
infrastructure focused on existing residents rather than expansion.

08/11/2026 Item No.20.

CIVIC

INFRASTRUCTURE

STEWARDS
The largest group, they focus on long-term civic
infrastructure stewardship — public access, support for aging residents and unhoused neighbors, and preserving
Folsom’s institutional independence. They favor public
transit investment, inclusive public spaces, and
partnerships with State Parks and tribes. They strongly oppose merging away Folsom’s institutions, speculative
schemes for the city reserve, and stripping resident voice from city decisions.

MAKE OR BREAK
All new playgrounds should focus on inclusivity and accessibility for children and caregivers with various disabilities i.e. ramps to play structures, pour in place instead of bark, tunnels large enough for anyone to go through, fences, etc.

This group: 82% approve vs Others: 64% approve 18% gap
Long-term funding for civic infrastructure (parks, trails, roads, storm drains) Investment in public transit and accessible public spaces Affordable housing for aging residents and shelter for unhoused neighbors Partnerships with State Parks, tribes, and community organizations Preserving Folsom’s independence and voter control over city services

SUPPORTS
Develop long-term plan for financial sustainability that preserves quality of life for Folsom residents. 99% approve There needs to be a long term funding plan for the maintenance of our existing parks and trails. 98% approve Enhance the “ Adopt a Trail” program to enable businesses to sponsor sections of trail through donations.
98% approve

OPPOSES
Diversify 10–20% of the city’s reserve fund into Bitcoin. 98% oppose Change the charter to let council outsource city services (parks, pool, zoo, waste) without voter approval.
84% oppose
Annex land for a data center. 89% oppose

08/11/2026 Item No.20.

BALANCED GROWTH

SKEPTICS
This group questions Folsom’s current growth model
and pushes for smarter mobility, walkability, and traffic enforcement. They favor expanded public transit, native landscaping, and removing parking minimums to reduce
car dependence. They support consolidating services to
reduce costs — but strongly oppose unchecked
commercial development, schemes that strip resident
voice, and speculative reserve-fund bets.

MAKE OR BREAK
Remove parking minimums (aka how many parking spots required for a business)... Improve public transportation so we don’t have to be so reliant on cars.

This group: 96% approve vs Others: 63% approve 33% gap
Remove parking minimums and reduce car dependence
Expand public transit, light rail, and walkable corridors Traffic enforcement (speed cameras, red light cameras)
Consolidate city services to reduce costs (Fire dept merger) Native landscaping and environmental sustainability

SUPPORTS
Slow down new housing development. Maintain oak tree groves and natural green spaces. 100% approve Identify consistent, reliable and adequate funding to maintain parks, trails, roads 100% approve Connect the two bike/walking trails on each side (underneath) of highway 50 along Placerville Road — only 100 yards needs to be constructed.
100% approve

OPPOSES
Build an outdoor mall like the Roseville Galleria 88% oppose Diversify 10–20% of the city’s reserve fund into Bitcoin. 98% oppose Build an automobile race track out past Folsom high school. 83% opposePage 353 08/11/2026 Item No.20.

SMALL TOWN

TRADITIONALISTS
The smallest but most distinct group, they want to
preserve Folsom’s small-town identity. They push for
strict enforcement, slower growth, fewer apartments,
and infrastructure focused on existing residents rather than expansion. They strongly oppose new public transit projects, expanded bus service, light rail on Bidwell, and SO50 development. They are skeptical of
housing-density solutions and most growth-driven
proposals.

MAKE OR BREAK
New light rail on Bidwell to relieve traffic congestion and make Folsom more human-friendly instead of car centric.

This group: 4% approve vs Others: 56% approve 52% gap
Reduce homeless and transient presence in old town
Slow expansion; preserve Folsom’s small-town character
Strict code enforcement and e-bike regulations
Skepticism of new public transit and bus expansion
Infrastructure for existing residents, not new growth

SUPPORTS
Decrease the amount of homeless and transient people hanging out in old town. 100% approve Less expansion, more focus on infrastructure. 96% approve Enforce e-bike rules and regulations. 95% approve

OPPOSES
More shelter options for the 100+ growing population of unhoused citizens 88% oppose New light rail on Bidwell to relieve traffic congestion. 96% oppose Increase affordable housing options specifically for aging adults, in proximity to services and transportation.
83% oppose

08/11/2026 Item No.20.

2. Enforcement of e-bike rules and regulations. Especially around the middle schools at dismissal time. (95%)

3. Less expansion, more focus on infrastructure. (93%)

4. The trash along white rock rd is an issue. I believe it’s mostly from all the construction. Can something be done about it? (91%)

5. Identify consistent, reliable and adequate funding to maintain parks, trails, roads, storm drains and open space to preserve quality of life and property values.(89%)

6. More raw nature, less endless suburban sprawl. (89%)

7. Code enforcement should start fining chronic offenders. (88%)

8. More outreach like this. It’s impossible for most working families to make in person meetings to give city feedback, ignoring large portion of population. (88%)

9. Adjust the intersection lights along Folsom Boulevard to match the light rail trains. (88%)

10. Don’t build infrastructure unless funding for future maintenance is earmarked in the budget. (86%)
Fix the traffic issue at E Bidwell and Hwy 50.
(100% BRIDGING SUPPORT)Unifying Ideas
#1
These are the ideas that were
popular across all groups,
regardless of other differences. *
*Scores reflect the minimum support across the groups;
rankings account for pass/rates.
**Duplicates not included in this list.

08/11/2026 Item No.20.

Resonant Issues: 1-3
The issues that were most important to all groups
01 26

BRIDGING IDEAS
Growth & Development
Long-term financial planning, increase resident access, limit council self-dealing
"Less expansion, more focus on infrastructure"
✓ 93%
bridge
"Don't build infrastructure unless funding for future
maintenance is earmarked in the budget."
✓ 86%
bridge
“Develop a list of 5 critical infrastructure projects. Since we must pay matching funds even with a grant, the city should spend NO money towards ANY project not on that list.”
✓ 73%
bridge
02 23

BRIDGING IDEAS
Streets & Roads
Enforce e-bike rules, build missing sidewalks, complete bike-and-trail connections
"Enforcement of e-bike rules and regulations. Especially around the middle schools at dismissal time"
✓ 95%
bridge
✓ 74%
bridge
✓ 86%
bridge
03 20

BRIDGING IDEAS
City Hall
"Identify consistent, reliable and adequate funding to
maintain parks, trails, roads, storm drains and open
space to preserve and maintain civic infrastructure,
quality of life and property values."
✓ 89%
bridge
"City council should not vote to get their own raise. That decision should come from many-budget analysis, city
manager, public, city planning, non partial committee,
dept mgrs all included, but not for themselves."
✓ 79%
bridge
“More outreach like this. It's impossible for most working families to make in person meetings to give city
feedback, ignoring large portion of population.”
✓ 88%
bridge
✓ % shows cross-group bridging score
Slow housing growth until infrastructure catches up,
make developers pay the full cost of new infrastructure "Focus selective traffic enforcement on red-light running and aggressive driving throughout the city."
"Connect the two bike/walking trails on each side
(underneath) of highway 50 alongside Placerville Road. The two paths are fabulous and only 100 yards or so needs to be constructed."

08/11/2026 Item No.20.

Resonant Issues: 4-6
The issues that were most important to all groups
04 14

BRIDGING IDEAS
Highway Interchanges & US-50 Access
✓ 87%
bridge
"Prioritize construction of the Empire Ranch Road
interchange on US 50. Would relieve traffic at the E.

Bidwell offramp."
✓ 86%
bridge
✓ 70%
bridge
05 12

BRIDGING IDEAS
Parks & Recreation
Maintain parks and trees, reduce litter, fund trail
rehabilitation
"Keep all water fountains at parks working, unclogged & not leaking. Ensure each park has at least one. Many have been broken for years or leak making huge mud pits."
✓ 78%
bridge
"More trees along walking areas. The hot summers are
too much for people to enjoy being out."
✓ 74%
bridge
"Enhance the 'Adopt a Trail' program to enable businesses to sponsor sections of trail through donations, which would be used for trail repairs and improvement projects."
✓ 77%
bridge
06 6

BRIDGING IDEAS
Public Safety
Strengthen code enforcement, develop a long term
funding plan for police and fire, reduce loitering
"Code enforcement should start fining chronic offenders." ✓ 82%
bridge
"Decrease the amount of homeless and transient people
hanging out in old town. It’s become too much. They are sleeping all over the area and loitering into our
neighborhoods."
✓ 88%
bridge
"Enforcing the law/codes to maintain quality of life. Code enforcement should actually enforce violations."
✓ 71%
bridge
✓ % shows cross-group bridging score
Build interchanges and relieve the Bidwell bottleneck
"Prioritize solving the US 50/E. Bidwell overcrossing
traffic nightmare."
"Complete Alder Creek road all the way to prairie city to alleviate traffic on bidwell."

08/11/2026 Item No.20.

Of everything we heard,
Growth & Infrastructure
emerged as the topic to talk about in the dialogue.

RELEVANT
Residents consistently engaged with this topic. Growth and infrastructure resonated strongly across all three opinion groups — making it the central question for Folsom’s future.

ACTIONABLE
Permitting policy, developer agreements, infrastructure maintenance budgets, and zoning are core municipal levers the city can act on.

COMPLEX
Real trade-offs exist between accepting housing growth, requiring developers to fund their own infrastructure, preserving small-town character, and maintaining long-term financial health.

Residents broadly agree the issue matters but disagree about how.

08/11/2026 Item No.20.

The set of policy options they discussed was determined through research and conversations with practitioners. Participants were provided briefing material to ensure a more informed discussion.

Running the Civic Dialogue
On June 24, 2026, 168 Folsom residents came together on Zoom to discuss policies the city should consider to address growth and infrastructure. Change.org specifically recruited a group that reflected the city in terms of age, sex, race, and political leaning.

Discussions were held primarily within small groups of 5-8 residents, over the course of three focused breakout sessions. Each session was focused on a different aspect of Folsom’s growth and infrastructure. Residents were compensated for the time spent to participate in the surveys & dialogue.

08/11/2026 Item No.20.

We found the share of Democrats, Republicans, and
Independents who supported each statement, then
used the lowest of those as the “bridging score.” This
way, we identify policies that all groups significantly
support.

After the Dialogue, we polled all participants on
specific policy positions related to addressing
growth and infrastructure derived from research
on the topic.

Update the fee schedule toward full cost recovery

UNDERSTANDING THE
Bridging Score
X ✓ ✓
X ✓ ✓
X ✓ ✓
✓
X
X
✓
X
✓
88%
MIN. SUPPORT ACROSS GROUPS
Democrat 96%
Republican 88%
Independent 91%
0% 50% 100%

08/11/2026 Item No.20.

Principles to Guide Growth and Infrastructure Decisions High-level directions the dialogue tested, shown with their bridge score (minimum support among political leanings) New growth must pay its own full lifetime cost
Ensure new development comes with
guaranteed revenue covering its full lifetime
infrastructure, maintenance, and service
costs.
96%
D 96
R 100
I 97
Attract the amenities residents want — the right
way
Attract the restaurants, shops, and services
residents want, prioritizing infill over sprawl —
with each project showing it covers the costs
it creates.
91%
D 100
R 95
I 91
Spend more now to catch up on the backlog
Spend more to catch up on the maintenance
backlog already owed, because deferred
repairs only get more expensive. 80%
D 89
R 80
I 82
New revenue — but only after an audit proves the
gap
Pair any new revenue with a binding
precondition: an independent budget audit
and line-item dashboard published first. 73%
D 85
R 73
I 85
Short-term debt for urgent repairs
Where a repair is urgent and delaying it would
cost far more later, use limited, short-term
debt to fix it now. 53%
D 53
R 54
I 56Page 361
08/11/2026 Item No.20.

Policy Recommendations for Growth & Infrastructure
All Policy Recommendations shown alongside their bridge score: the minimum support across all groups Prioritizing Investment
Published infrastructure priority stack 88%
Published road repaving schedule 74%
Minimum maintenance budget 73%
Facility Condition Assessment +
dashboard 70%
Growth Covering Its Costs
Update fee schedule to full cost recovery 88%
Long-horizon cost projections at approval 85%
Services-tier on new CFDs 85%
Inventory underused, already-served
land 74%
Tie housing approvals to commercial 68%
Revenue for Infrastructure
Local small-business retention strategy 79%
Public-private partnerships &
sponsorships 74%
Raise hotel tax (8% → 10–12%) 71%
Half-cent (0.5%) sales tax 68%
Targeted econ-development incentives 68%

08/11/2026 Item No.20.

PRIORITIZING INFRASTRUCTURE INVESTMENTS
#1 Publish the infrastructure priority
stack
Publish the ranked list and methodology city staff already use to weigh competing maintenance and capital projects — life-safety risk, asset condition, service disruption, and cost — not just which projects get funded.
88%
MIN. SUPPORT ACROSS GROUPS
Democrat 100%
Republican 90%
Independent 88%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“What I'm looking for is a prioritized list, effectively a Pareto that says what the items are. Here's the most common, all the way down to the least common. And also an impact analysis that says, what happens if I get this done? What happens if I don't get this done? And what is the cost?”
— Male, age 65+ (Republican)
If you have this one list, it's prioritized — the impact, the costs, the trade-offs — you understand how you're spending money.” — Male, age 65+ (Republican)
“The average resident needs that transparency, because most people don't know where the money is going. That third option would lay it out in a way that's pretty easy to read.”
— Male, age 18-24 (Democrat)

08/11/2026 Item No.20.

GROWTH COVERING THE COST OF MAINTENANCE
#2 Update fee schedule toward full
cost recovery
Make sure development and permit fees actually cover what the service costs the city, so existing residents stop subsidizing developers and applicants — never charging more than the documented cost of providing the service.
88%
MIN. SUPPORT ACROSS GROUPS
Democrat 96%
Republican 88%
Independent 91%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“Does kind of strike me as odd that the permit fees for development don't cover the cost of doing the permitting. That seems a little strange. I mean, it doesn't need to be like a profit-making business, but it does seem like the city should be recouping its losses at least.” — Female, age 25-39 (Democrat)
“I've worked in public service and passed ordinances before, and I've always made sure they're net neutral, where the permit fees cover the cost of inspectors and whatever staff need to go do the work. So I think it's very realistic, and there's precedent that that happens elsewhere.” — Female, age 25-39 (Democrat)
“If we're not recovering the full cost of whatever this fee is providing, then that fee needs to go up.”
— Male, age 65+ (Democrat)

08/11/2026 Item No.20.

GROWTH COVERING THE COST OF MAINTENANCE
#3 Require long-horizon cost projections
at approval
Before the council approves any major new project, require a written 20–30 year forecast of what it will cost the city to operate, maintain, and eventually replace what is built — with a longer horizon for water and sewer.
85%
MIN. SUPPORT ACROSS GROUPS
Democrat 85%
Republican 85%
Independent 85%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“I was looking at this option that I like, which is really good cost projections on the maintenance on different projects.”
— Female, age 65+ (Democrat)
“If they hadn't done a 20-to-30-year cost projection before approval for any new builds — that seems very obvious.”
— Female, age 25-39 (Democrat)
“Requiring those projections would prevent the backlog from growing and keep it more manageable.”
— Male, age 40-65 (Republican)

08/11/2026 Item No.20.

GROWTH COVERING THE COST OF MAINTENANCE
#4 Services-tier on new Community
Facilities Districts
Make it the default in the development-agreement template that every developer-built park, trail, or landscaped median comes with a dedicated annual funding source to maintain it — so the city does not inherit the maintenance bill unfunded.
85%
MIN. SUPPORT ACROSS GROUPS
Democrat 91%
Republican 85%
Independent 97%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“New developers, they have the agreement — it doesn't help with the maintenance, but at least it would help going forward. That they build that in as part of their development, that they fund their own annual maintenance funding for whatever parks or trails or whatnot go into that area.”
— Female, age 40-65 (Democrat)
“I like that one. I think it makes sense to me that a developer would have their own maintenance funding, so the city doesn't have to pay for it.” — Female, age 40-65 (Democrat)
“It's like, if they're going to build it, it needs to be built into the plan that it's going to be maintained, so that further backlog doesn't happen.” — Female, age 40-65 (Independent)

08/11/2026 Item No.20.

REVENUE TO INVEST IN INFRASTRUCTURE
#5 Adopt a local small-business retention
strategy
Reduce permitting barriers, create a small-business incubator program, and offer targeted incentives in key districts — to keep locally owned businesses open, grow the sales-tax base, and strengthen the community.
79%
MIN. SUPPORT ACROSS GROUPS
Democrat 79%
Republican 85%
Independent 82%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“Small business retention is like community character retention.” — Male, age 40-65 (Republican)
“I like the small business retention. Even though it won't have a yield, I do think it's important to invest in small businesses and make sure corporations aren't edging them out.”
— Female, age 25-39 (Democrat)
“The only reason I support that is because when I think about going to shop in old Folsom or the Palladio, it actually does influence whether or not I go — when I see a bunch of shops open or not.”
— Female, age 40-65 (Republican)

08/11/2026 Item No.20.

PRIORITIZING INFRASTRUCTURE INVESTMENTS
#6 Publish a road repaving schedule
Publish a multi-year, street-by-street pavement repair calendar tied to engineering condition data, so any resident can look up their street and see when it is scheduled.
74%
MIN. SUPPORT ACROSS GROUPS
Democrat 74%
Republican 76%
Independent 79%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“The road repaving schedule is the easiest one the city can do. It's not costly, and it's easy to maintain the roads. That will save a lot in terms of car maintenance and people's lives. It's the lowest cost and the highest benefit for the city.”
— Male, age 40-65 (Democrat)
“I agree that publishing the schedule is the easiest thing to do. And I think it makes sense, so people know when their street is going to be repaved and they don't keep asking or feel in the dark.” — Male, age 40-65 (Independent)
“I'd like to see a schedule of what they're going to fix and when.” — Female, age 40-65 (Democrat)

08/11/2026 Item No.20.

GROWTH COVERING THE COST OF MAINTENANCE
#7 Take inventory of underused land
Folsom already has
Take inventory of underused, already-served land to identify where commercial uses could be added — generating tax revenue without new sprawl.
74%
MIN. SUPPORT ACROSS GROUPS
Democrat 74%
Republican 90%
Independent 85%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“I would go back to the commercial discussion, with the land that we own, because there's a lot of good high-tech companies in the city, in the Bay Area, and in LA that are looking for room to expand.” — Male, age 40-65 (Independent)
“I think it'd be good to develop underused land if it's an eyesore — if it would look better to have businesses there.”
— Female, age 40-65 (Independent)
“I'd love to see the whole Intel campus get revitalized, and other underused land put to better use.”
— Male, age 25-39 (Independent)

08/11/2026 Item No.20.

REVENUE TO INVEST IN INFRASTRUCTURE
#8 Public-private partnerships and
corporate sponsorships
Launch a formal sponsorship and naming-rights program for parks, trails, courts, and facilities to help fund maintenance — with no vote and no new tax.
74%
MIN. SUPPORT ACROSS GROUPS
Democrat 77%
Republican 80%
Independent 74%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“I personally would be totally fine if some companies wanted to sponsor parks and have naming rights — as long as it's done tastefully.” — Male, age 25-39 (Democrat)
“I'm all for the sponsorship and naming rights. I think all the political people ought to be removed from the names of the parks and let it go to sponsorships.”
— Male, age 65+ (Republican)
“I'm thinking, for sure, sponsorship and naming rights is something I would want for parks and trails and potentially facilities.” — Female, age 40-65 (Republican)

08/11/2026 Item No.20.

PRIORITIZING INFRASTRUCTURE INVESTMENTS
#9 Adopt a minimum maintenance
budget
Adopt a formal council resolution guaranteeing a minimum maintenance budget every year — a fixed reinvestment floor (about 2% of the city's asset value) phased in over time, to keep infrastructure in sufficiently good condition.
73%
MIN. SUPPORT ACROSS GROUPS
Democrat 85%
Republican 73%
Independent 82%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“I kind of like that idea. It's kind of separate from all the other issues, just because it establishes a floor — and then maybe that puts enough pressure on the whole system that when they deal with the budget each year, they have to actually start solving some of these problems.” — Male, age 65+ (Democrat)
“I think it would also outline the fact that we need a minimum maintenance budget in the first place. People would see all this information and then see — oh, we actually need to allocate this money over time to keep reinvesting in what we've already built.” — Male, age 18-24 (Democrat)
“The audit and the minimum maintenance budget — those two options stood out as the most helpful to get that trust back, for residents to understand where the money's going.”
— Female, age 40-65 (Democrat)

08/11/2026 Item No.20.

REVENUE TO INVEST IN INFRASTRUCTURE
#10 Raise the transient occupancy
(hotel) tax
Raise the existing hotel tax from 8% to 10–12% and tighten enforcement — an added $1–3.65M annually, paid largely by visitors rather than residents.
71%
MIN. SUPPORT ACROSS GROUPS
Democrat 81%
Republican 71%
Independent 85%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“I'm fully on board with that. It'll generate a lot of revenue, especially with how popular Folsom hotels are.”
— Male, age 18-24 (Democrat)
“The hotel tax is paid by visitors, not by us — so do a little more on the hotel side.”
— Male, age 40-65 (Republican)
“Definitely they could go from 8 to 10% to bring in a little bit more revenue. It wouldn't hurt.”
— Female, age 40-65 (Republican)

08/11/2026 Item No.20.

PRIORITIZING INFRASTRUCTURE INVESTMENTS
#11 Publish a Facility Condition
Assessment + dashboard
Commission a formal engineering inventory of every city-owned building, park, street, trail, bridge, and storm drain — rated good/fair/poor with replacement costs and timelines — published on a public website residents can look up.
70%
MIN. SUPPORT ACROSS GROUPS
Democrat 70%
Republican 71%
Independent 74%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“What I really like is that I know they've done some assessments, but it seems like they really need to do an assessment of everything — what the replacement costs truly are — so that people can understand that, and what the timelines could be, and then put it somewhere where we can all see it, like on the website.”
— Female, age 65+ (Democrat)
“I think it's a really good idea to have the assessment performed. I know it's going to cost a little more money just to have it, but having an actual professional independently come in and assess everything would be a much better goal — everything basically mapped out and detailed, so everybody can know what exactly is needed.”
— Female, age 25-39 (Democrat)
“I think this could be a rare example of spending money that could save money in the future. Because if you can identify issues before they become big and expensive to repair, it might end up paying for itself.” — Male, age 40-65 (Republican)

08/11/2026 Item No.20.

GROWTH COVERING THE COST OF MAINTENANCE
#12 Tie residential approvals to
commercial milestones
Require developers to deliver the promised commercial and jobs first, before later housing phases are approved, so Folsom gets the revenue-generating side of growth.
68%
MIN. SUPPORT ACROSS GROUPS
Democrat 81%
Republican 68%
Independent 76%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“If you do it in a pragmatic fashion, like what we talked about — you put the business or the retail before you start working on the residential, so that you've got some form of revenue you're guaranteed to bring in.” — Male, age 65+ (Republican)
“I agree we need to kind of push back and say no. We need to require these developers to commit to this first.”
— Female, age 40-65 (Republican)
“I kind of like the option that says tie housing phases to commercial jobs delivery.”
— Female, age 40-65 (Republican)

08/11/2026 Item No.20.

REVENUE TO INVEST IN INFRASTRUCTURE
#13 A half-cent (0.5%) sales tax
A half-cent sales tax with named projects, citizens' oversight, and published audits — so visitors and outside shoppers help pay for the maintenance backlog, not just Folsom homeowners (about $14M annually).
68%
MIN. SUPPORT ACROSS GROUPS
Democrat 72%
Republican 68%
Independent 68%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“If it had a half-cent sales tax with a 5- or 10-year sunset clause, I think people could get behind that just to clean up the backlog and park maintenance.”
— Male, age 65+ (Republican)
“I don't like to pay more taxes, but if that's going to actually go towards something beneficial, then I'd consider voting for it.” — Male, age 25-39 (Democrat)
“A more successful approach might be a time-limited half-cent sales tax for about 10 years, so they can figure out how to pay for those looming maintenance issues.”
— Female, age 65+ (Democrat)

08/11/2026 Item No.20.

REVENUE TO INVEST IN INFRASTRUCTURE
#14 Targeted economic development
incentives
Use fee credits, expedited permitting, or infrastructure commitments to attract commercial and employment uses on already-served land — which generate tax revenue without new roads or utilities. 68%
MIN. SUPPORT ACROSS GROUPS
Democrat 68%
Republican 73%
Independent 68%
0% 50% 100%
% support for this position
Why Folsom residents support this:
“It's been working really well in the city of Rancho. I have several friends who do business there, and they said Rancho is very business-friendly.

Wish Folsom would think like that too. I think that could help.” — Female, age 40-65 (Independent)
“I think we ought to really work with a team of people to go out and recruit some of those businesses to take a look at building in Folsom, because that's going to be a money-maker.”
— Male, age 40-65 (Independent)
“I think that's a potential way we could expand — making it more friendly to businesses and then growing that revenue, too.” — Female, age 25-39 (Democrat)

08/11/2026 Item No.20.

TRADE-OFFS — WHERE TO SPEND FIRST
Folsom can’t fund every infrastructure need at once. Residents ranked these from the city’s highest to lowest priority.
#1

RANKED PRIORITY
Replacing aging water
and sewer lines
Ranked by priority for each group (1st = top priority) Overall Dem Rep Ind 1 Replacing aging water and sewer lines 1st 1st 1st 2nd 2 Keeping parks, trails, and recreation facilities in operation 2nd 2nd 2nd 1st 3 Resurfacing and pothole repair on existing neighborhood roads 3rd 3rd 3rd 3rd
4 The U.S. 50 / Empire Ranch Road interchange 4th 4th 4th 5th 5 Traffic / congestion improvements on existing corridors 5th 5th 5th 4th 6 The Oak Avenue overcrossing on US-50 6th 7th 6th 7th
7 Sidewalk and ADA accessibility repairs 7th 6th 7th 6th

08/11/2026 Item No.20.

TRADE-OFFS — THE NEXT DOLLAR
If the city secures $1 million in new annual revenue, residents ranked these uses from most to least important.
#1

RANKED PRIORITY
Catching up on deferred
maintenance of existing
parks, trails, roads, and
facilities
Ranked by priority for each group (1st = top priority) Overall Dem Rep Ind 1 Catching up on deferred maintenance of existing parks, trails, roads, and facilities 1st 1st 1st 1st
2 Building new road and traffic infrastructure growth requires (e.g. the Empire Ranch interchange) 2nd 2nd 2nd 2nd
3 Restoring operating services cut recently (such as Engine 38) 3rd 3rd 3rd 3rd 4 Strengthening operating reserves (now at 20%, about $25M) 4th 4th 4th 4th

08/11/2026 Item No.20.

Now that we’re done,
What’s Next?
● We’ve already shared these results with Mayor Raithel and team, who will be using this information to inform his priorities for growth and infrastructure for the city. ● The data from both phases – all of the ideas, votes from Phase 1 plus recommendations from the Civic Dialogue – will be available at www.ideasforchange.org/folsom.

08/11/2026 Item No.20.

Thank you!
To Mayor Raithel, his office, all our community partners, and every person who shared their ideas and enthusiasm throughout this process.

If you have any questions, reach out at [email protected].

08/11/2026 Item No.20.

Attachment 2

08/11/2026 Item No.20.

Folsom Growth & Infrastructure — Proposed Workplan Prepared by Change.org from the June civic dialogue (168 residents) and the follow-up review with Mayor Raithel and City Manager Whitemyer. This lays out the policies with the strongest

community

support,

how

we'd

prioritize

them,

and

how

we

propose

supporting

the

city

on

each.

How we propose working with you Think of us as seconded staff — a supporting agency to the city's infrastructure and fiscal-sustainability work. We're here to take work off your plate, not to drive decisions or represent

the

city.

Concretely

that

looks

like:
● Research: peer cities, precedent ordinances, and what has worked elsewhere ● Policy writing: draft ordinances, model language, and evidence pieces for staff and council ● Coalition building: helping line up the support a policy needs to move, where that's useful How we prioritized We stack-ranked the policies with resident consensus against three criteria. The city's authority to implement and pace lead the ranking; materiality breaks ties. The order sequences the

most

implementable,

near-term

measures

first,

then

works

through

the

remainder.

Criterion The question How we read it City's authority to implement Does the city have the authority to act on its own? How directly the city can implement without relying on a third party. Policies within the city's sole authority, with a clear vehicle, rank higher than those requiring an outside partner, the legislature, or a ballot. Pace How quickly can it be implemented? How soon the policy can reach implementation. Measures already in motion or needing only near-term research rank higher than those needing a ballot, a fee study, or a multi-year build. Materiality How much impact would it have? How much the policy would move Folsom's fiscal sustainability and maintenance condition. Targeted, lower-cost fixes still rank when they are fast and clean, with greater weight to the higher-impact levers.

Priority 1: Provide support on implementation
Policy
Bridge / support by group / criteria

How it gets done (vehicle)

How Change.org would support this

1. Publish the infrastructure priority stack Publish the ranked list and methodology staff already use to weigh competing maintenance and capital projects (life-safety risk, asset condition, service disruption, cost) — not just which projects get funded. 88% bridge Dem 100% Rep 90% Ind 88% Authority: High Pace: High Materiality: Med Administrative Staff publish the existing ranked list and criteria; no ordinance or vote required. ● Provide peer examples of published capital-prioritization criteria to benchmark against, including examples of criteria for rating different types of assets ● Draft the methodology write-up and backup documentation the city flagged as the remaining gap ● Prototype the published format, adapting a peer model to Folsom’s existing ranked list ● Support information sharing end of 2026 / early 2027 ● Benchmark how Folsom’s maintenance investment compares to other cities with similar infrastructure

2. Publish the road repaving schedule 74% bridge Dem 74% Rep 76% Ind 79% Administrative ● Provide peer examples of published road repaving schedules

08/11/2026 Item No.20.

Priority 2: Revisit in three months
Policy
Bridge / support by group / criteria

How it gets done (vehicle)

How Change.org would support this

A multi-year, street-by-street pavement calendar tied to engineering condition data, so any resident can look up their street and see when it is scheduled.

Authority: High Pace: High Materiality: Med
Staff publish the pavement-management schedule; already under way. ● Draft the resident-facing lookup format so any resident can find their street, adapting a peer model to Folsom

3. Adopt a local small-business retention strategy Reduce permitting barriers, create a small-business incubator, and offer targeted incentives in key districts — to keep locally owned businesses open, grow the sales-tax base, and strengthen the community. 79% bridge Dem 79% Rep 85% Ind 82% Authority: High Pace: Med Materiality: Med Administrative / economic-development program Staff-run program; council appropriation if incentives are funded. ● Research small-business retention and incubator models and their sales-tax payback ● Draft a proposal for the City for small-business retention, building on data on what works

4. Public-private partnerships and corporate sponsorships A formal sponsorship and naming-rights program for parks, trails, courts, and facilities — funding maintenance with no vote and no new tax. 74% bridge Dem 77% Rep 80% Ind 74% Authority: High Pace: High Materiality: Low Administrative / council sponsorship policy Staff run it under a council-adopted sponsorship/naming-rights policy. ● Identify best practices and indicative rates for similar naming rights / sponsorship programs ● Draft a model council sponsorship and naming-rights policy adapted from peer cities for staff to tailor

5. Targeted economic-development incentives Fee credits, expedited permitting, or infrastructure commitments to attract commercial and employment uses on already-served land — revenue without new roads or utilities. 68% bridge Dem 68% Rep 73% Ind 68% Authority: High Pace: Med Materiality: Med Administrative + council agreements Staff-negotiated agreements (e.g., sales-tax sharing); council approves specific deals. ● Research options for incentives and their relative efficacy and suitability for Folsom ● Research the net fiscal return of peer sales-tax-sharing agreements and fee-credit structures ● Draft a proposal for the City for a mix of options to implement Policy Bridge / support by group / criteria
How it gets done (vehicle)
How Change.org would support this

6. Services-tier on new Community Facilities Districts Make it the default in the development-agreement template that every developer-built park, trail, or landscaped median comes with a dedicated annual maintenance funding source, so the city doesn't inherit the bill unfunded. 85% bridge Dem 91% Rep 85% Ind 97% Authority: High Pace: High Materiality: High Administrative / development-agreement template Staff embed the services tier in the standard development-agreement template. ● Create a rationale for future negotiators ● Create a comparison of how peer development-agreements structure the dedicated maintenance funding source ● Draft model services-tier language for the development-agreement template, adapted from peer agreements

7. Update fee schedule toward full cost recovery Ensure development and permit fees cover what the service actually costs the city, so 88% bridge Dem 96% Rep 88% Ind 91%
Fee study + council fee resolution
● Compile peer cost-of-service study scopes and cost ranges from comparable cities to provide a realistic benchmark ● Based on those results, prepare a memo justifying investment in a new cost-of-service study

08/11/2026 Item No.20.

Priority 3: Reassess in six months
Policy Bridge / support by group / criteria
How it gets done (vehicle)
How Change.org would support this
existing residents stop subsidizing applicants — never charging more than the documented cost of service.

Authority: High Pace: Med Materiality: High
A cost-of-service (nexus) study, then a council fee resolution. ● Draft the staff report and consultant RFP scope to commission the study ● Draft a model council resolution for a cost-of-service nexus study ● Draft a model council resolution for fee changes

8. Take inventory of underused land Folsom already has Identify where commercial uses could be added on already-served land, generating tax revenue without new sprawl. 74% bridge Dem 74% Rep 90% Ind 85% Authority: High Pace: Med Materiality: Med Administrative Staff (with GIS) compile the inventory; no ordinance required. ● Research options for converting idle parcels to revenue uses ● Prototype a first-pass GIS inventory from public parcel and zoning data as a starting point staff can validate and refine ● Provide peer criteria for classifying “underused” land (e.g., improvement-to-land value ratios, vacancy, service coverage)

9. Facility Condition Assessment + public dashboard A formal engineering inventory of every city-owned building, park, street, trail, bridge, and storm drain — rated good/fair/poor with replacement costs and timelines — published on a public site residents can look up. 70% bridge Dem 70% Rep 71% Ind 74% Authority: High Pace: Med Materiality: High Budget appropriation + procurement Council appropriation to commission the assessment, then build the public dashboard. ● Scope a tiered option: informal staff assessment first, formal engineering inventory where it matters most, to address the cost-vs-value concern ● Research peer FCA costs and dashboard builds for a realistic budget range ● Prototype a public dashboard mock-up from existing city asset data to make the end product concrete before any appropriation

10. Half-cent (0.5%) sales tax With named projects, citizens' oversight, and published audits, so visitors and outside shoppers help pay for the backlog, not just Folsom homeowners (~$14M/yr). 68% bridge Dem 72% Rep 68% Ind 68% Authority: Med (council can place; voters decide) Pace: Low Materiality: High Ballot measure Council places it; a general (unrestricted) tax needs a simple majority, a dedicated (special) tax two-thirds. ● Model options for structure (sunset, oversight, general vs. special) and the majority-vs-two-thirds trade-off ● Research what moved comparable measures from loss to passage ● Down the road: Prepare a plain-language "what changed since Measure G" evidence brief ● Draft the full ordinance/measure package — half-cent rate, sunset clause, citizens’ oversight board, published audits — as a ready-to-review starting point Policy Bridge / support by group / criteria
How it gets done (vehicle)
How Change.org would support this

11. Require long-horizon cost projections at approval Before council approves a major new project, require a written 20–30-year forecast of operating, maintenance, and replacement cost (longer for water and sewer). 85% bridge Dem 85% Rep 85% Ind 85% Authority: High Pace: Med Materiality: High Council policy / resolution A council-adopted policy amending the project-approval checklist. ● Research peer examples of lifecycle-cost-at-approval policies and their templates ● Create a model resolution amending the project-approval checklist ● Create a fill-in forecast template

08/11/2026 Item No.20.

Appendix: policies that did not reach consensus These came up in the dialogue but fell below the 60% bridge threshold, so they are not part of the proposed next steps. ● Put genuinely dormant, unused city land to work (sale / long-term lease) — 53% bridge ● Pursue revenue-positive annexation — 44% bridge ● Independent line-by-line budget audit — 44% bridge ● Full-cent (1%) sales tax (~$29M/yr) — 41% bridge ● Parks and maintenance fixed fee per property ($100–$300) — 38% bridge ● Property transfer tax (0.5–0.75%, ~$3.5–5.25M/yr) — 37% bridge ● Stormwater study + dedicated drainage charge ($2–5M/yr) — 35% bridge ● Citywide maintenance-and-services CFD (~$500–700/yr median home) — 24% bridge ● Time-limited General Obligation bond (~$247/yr on an $800K home) — 28% bridge In addition, tie residential approvals to commercial/employment milestones reached 68% bridge, but as it is unlikely to be successful given development risk, it was held rather than actioned.

12. Minimum maintenance budget (reinvestment floor) A council resolution guaranteeing a minimum annual maintenance budget — a fixed reinvestment floor (~2% of asset value) phased in over time. 73% bridge Dem 85% Rep 73% Ind 82% Authority: High Pace: Med Materiality: High Council resolution A council-adopted resolution setting the floor; phased in. ● Research peer floors including downturn off-ramps ● Create a model resolution with an economic-hardship suspension clause

13. Raise the transient occupancy tax from 8% to 10–12% And tighten enforcement (~$1–3.65M/yr). Incidence falls mostly on visitors. 71% bridge Dem 81% Rep 71% Ind 85% Authority: Low (near-term) Pace: Low Materiality: Med Ballot measure General TOT needs a simple majority; dedicated needs two-thirds. ● Create a revenue model timed to the TBID expiry (~6 years out); and a brief on how a TOT increase would sit alongside the existing TBID commitment

08/11/2026 Item No.20.

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08/11/2026 Item No.20.

Folsom City Council
Staff Report

1 MEETING DATE:

8/11/2026
AGENDA SECTION:

New Business
SUBJECT: City of Folsom Community Facilities District No. 22A (Folsom Heights)

FROM: Finance Department

RECOMMENDATION / CITY COUNCIL ACTION

It is recommended that the City Council adopt the following resolutions:

Resolution No. 11679- A Resolution of the City Council of the City of Folsom Approving a Proposed Boundary Map and Declaring Intention to Form a Community Facilities District to be Named “City of Folsom Community Facilities Distric t No. 22A (Folsom Heights ),” Designate Separate Improvement Areas Therein and Identify Territory Proposed for Annexation to the Community Facilities District in the Future and to Levy Special Taxes therein

Resolution No. 11680 - A Resolution of the City Council of the City of Folsom Declaring the Necessity for Incurring Bonded Indebtedness in and for the City of Folsom Community Facilities District No. 22A (Folsom Heights ) and in and for two Improvement Area s Designated therein and Calling for a Public Hearing thereon

BACKGROUND / ISSUE

The Folsom Plan Area Specific Plan Public Facilities Financing Plan (“PFFP”), approved by the City Council on January 28, 2014 via Resolution 9298, is an $877 million plan that describes the backbone infrastructure and facility requirements, presents a comprehensive financing strategy, and sets forth the estimated time horizon for the development of the Folsom Plan Area (“FPA”). In 2018, at the request of the landowners, City of Folsom Community Facilities District No. 22 (Folsom Heights) (“CFD No. 22”) was formed and special tax

08/11/2026 Item No.21.
2 revenues generated from CFD No. 22 would have helped fund all or a portion of the project’s share of PFFP backbone infrastructure and facilities . Now, at the request of the landowners, CFD No. 22 will be terminated in connection with this formation and replaced by CFD 22A.

Landowners within the FPA requested to form the proposed City of Folsom Community Facilities District No. 2 2A (Folsom Heights ) (“CFD No. 22A ”), including three separate Improvement Areas (“IA”), designated as Improvement Area No. 1, Improvement Area No. 2 and Improvement Area No. 3. A boundary map showing the proposed CFD 22A and the three separate improvement areas is below and included as Attachment 3.

Special tax revenues generated from each IA within CFD No. 2 2A will help fund all or a portion of the project’s share of PFFP backbone infrastructure and facilities. A detailed list of authorized facilities can be found under Exhibit A of Resolution No.11679. A summary of the facilities authorized to be funded by CFD No. 22A include, but are not limited to:
• Transportation Improvements including all public roadway improvement designed to meet the needs of development within CFD N o. 22A, including internal subdivision streets and related underground utilities.

08/11/2026 Item No.21.
3 • Water System Improvements
• Recycled Water System Improvements
• Drainage System Improvements
• Wastewater System Improvements
• Park, Parkway and Open Space Improvements
• Specific Plan Infrastructure Fee Infrastructure
• Other Incidental Expenses and Bond Issuance Costs

In addition, the following project -specific services are anticipated to be funded by CFD No. 22A special taxes:
• Open space maintenance
• Landscape corridors and paseos
• Street light maintenance
• Medians, entries and entry monumentation
• Neighborhood park maintenance, repair and replacement • Community amenities
• Storm water management
• Other miscellaneous costs related to any of the items described above • Anticipated future repairs or replacements costs.
• Public Services for Police, Fire and other emergency services

The proposed CFD No. 22A is located within the FPA and is generally bounded by U.S.

Highway 50 on the north, the El Dorado County line on the east, and White Rock Road on the south. Each IA within CFD No. 2 2A includes several Assessor’s Parcel Numbers , which are identified in the proposed boundary map for CFD No. 22A , included as Attachment 3. The proposed development plan for each IA within CFD No. 22A includes the following:

Improvement
Area

SF/SFHD
Units MLD Units
Non-
Residential
Lots
Total
Residential
Units Total Lots
IA 1 209 53 0 262 262
IA 2 196 72 0 268 268
IA 3 0 0 3 0 3
Total 405 125 3 530 533

The CFD No. 22A funding stream will be a combination of bonded indebtedness and pay- as- you-go (“PAYGO”) funding, both secured by the levy of special taxes upon property within the boundaries of CFD No. 22A.

The resolutions attached begin the proceedings to provide for the creation of CFD No. 22A .

Resolution No. 11679 will approve the boundary map (Attachment 3), declare the intention to form CFD No. 2 2A, designate improvement areas therein , identify the territory proposed for annexation to CFD No. 22A and authorize the City to levy special taxes within the district.

08/11/2026 Item No.21.
4 Resolution No. 11680 declares the necessity to incur bonded indebtedness within IA No. 1 and IA No. 2 of CFD No. 2 2A. It is not currently anticipated that bonded indebtedness will be issued for IA No. 3.

If these resolutions are approved, a Public Hearing will be scheduled, along with an election of owners of property within CFD No. 22A, for September 22, 2026.

POLICY / RULE

Chapter 5 of the Folsom Plan Area Public Facilities Financing Plan authorizes the formation of CFDs to finance the construction, acquisition, and servicing of FPA backbone infrastructure and public facilities

Section 2.5.3 of the First Amended and Restated Tier 1 Development Agreement authorizes the formation of infrastructure CFDs

Resolution No. 9282 – A Resolution of the City Council of the City of Folsom Approving Goals and Policies for Community Facilities Districts

Mello-Roos Community Facilities Act of 1982

ANALYSIS

CFD No. 2 2A will be structured as an extended -term CFD and will provide the necessary funding to help fund all or a portion of the project’s share of PFFP backbone infrastructure and facilities, including related environmental mitigation obligations. The PFFP backbone infrastructure and facilities will be financed using both bond proceeds and PAYGO special tax revenues. The extended-term CFD structure is proposed to help to meet the challenge of high- cost infrastructure and facilities while also align ing the timing of future funding availability with the need for such funding.

The PFFP backbone facilities to be funded via CFD No. 22A, and listed above, were originally anticipated to be funded by either Community Facilities District No. 18 (Folsom Plan Area - Area-Wide Improvements and Services) or funded as part of project specific CFDs established for each development within the FPA.

The special tax revenue generated from taxable parcels within each IA of CFD No. 22A will be comprised of a special tax to fund facilities and a special tax to fund services. The 2026/27 maximum facilities special tax rates, set forth in each IA’s Rate and Method of Apportionment (RMA), for each land use category are provided in the table below:

08/11/2026 Item No.21.
5 Land Use Category Lot Size
Improvement
Area
2026/27
Maximum
Facilities
Special Tax
Rate Per
Single-Family Detached Property – SF Zoning Any 1 $3,500 Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 1 $2,800 Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 1 $2,600 Lot Single-Family Detached Property – MLD Zoning Any 1 $2,000 Lot Other Taxable Property Any 1 $15,000 Acre
Permit Ready Multi-Family/Non-Residential
Property Any 1 $15,000 Acre
Large Lot Property Any 1 $15,000 Acre
Undeveloped Property Any 1 $15,000 Acre
Single-Family Detached Property – SF Zoning Any 2 $3,770 Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 2 $3,067 Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 2 $2,959 Lot Single-Family Detached Property – MLD Zoning Any 2 $2,357 Lot Other Taxable Property Any 2 $15,000 Acre
Permit Ready Multi-Family/Non-Residential
Property Any 2 $15,000 Acre
Large Lot Property Any 2 $15,000 Acre
Undeveloped Property Any 2 $15,000 Acre
Single-Family Detached Property – SF Zoning Any 3 $0 Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 3 $0 Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 3 $0 Lot Single-Family Detached Property – MLD Zoning Any 3 $0 Lot Other Taxable Property Any 3 $0 Acre
Permit Ready Multi-Family/Non-Residential
Property Any 3 $0 Acre
Large Lot Property Any 3 $0 Acre
Undeveloped Property Any 3 $0 Acre

The CFD No. 22A facilities special tax can be levied and collected through Fiscal Year 2086/87. Each fiscal year, commencing with 2027/28, the maximum facilities special tax rate will be increased by 2% annually.

The 2026/27 maximum services special tax rates, set forth in each IA’s RMA for each land use category are provided in the table below:

08/11/2026 Item No.21.
6 Land Use Category Lot Size
Improvement
Area
2026/27
Maximum
Services
Special Tax
Rate Per
Single-Family Detached Property – SF Zoning Any 1 $137 Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 1 $137 Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 1 $137 Lot Single-Family Detached Property – MLD Zoning Any 1 $117 Lot Other Taxable Property Any 1 $645 Acre
Permit Ready Multi-Family/Non-Residential Property Any 1 $645 Acre Large Lot Property Any 1 $645 Acre
Undeveloped Property Any 1 $645 Acre
Single-Family Detached Property – SF Zoning Any 2 $137 Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 2 $137 Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 2 $137 Lot Single-Family Detached Property – MLD Zoning Any 2 $117 Lot Other Taxable Property Any 2 $659 Acre
Permit Ready Multi-Family/Non-Residential Property Any 2 $659 Acre Large Lot Property Any 2 $659 Acre
Undeveloped Property Any 2 $659 Acre
Single-Family Detached Property – SF Zoning Any 3 $137 Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 3 $137 Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 3 $137 Lot Single-Family Detached Property – MLD Zoning Any 3 $117 Lot Other Taxable Property Any 3 $474 Acre
Permit Ready Multi-Family/Non-Residential Property Any 3 $474 Acre Large Lot Property Any 3 $474 Acre
Undeveloped Property Any 3 $474 Acre

The CFD No. 22A services special tax can be levied and collected until the bonds mature, or the “Transition Event”, per the RMA. Each fiscal year, commencing with 2027/2 8, the maximum services special tax rate will be increased by the maximum of two percent (2%) or the June annualized percentage change of the Consumer Price Index for all Urban Consumers, for the San Francisco-Oakland-San Jose area, not to exceed four percent (4%).

After the Transition Event, both the facilities special tax and services special tax levies will cease, and a transition services special tax will replace the prior funding. The transition services special tax will be an amount equal to 50% of the maximum facilities special tax rate the year

08/11/2026 Item No.21.
7 prior to the Transition Event plus the maximum services special tax rate the year prior to the Transition Event. Each fiscal year, commencing with the transition year, the maximum transition services special tax rate will be increased by the maximum of two percent (2%) or the June annualized percentage change of the Consumer Price Index for all Urban Consumers, for the San Francisco-Oakland-San Jose area, not to exceed four percent (4%).

As described above, CFD No. 22A will include an extended- term in order to provide the financing to fund CFD No. 22A authorized facilities through multiple CFD bond issues and the generation of PAYGO special tax revenue from the levy and collection of the special tax.

The primary pledge of CFD No. 22A special tax revenues will be to service outstanding CFD No. 22A debt. Special tax revenues in excess of the annual debt service and administrative expenses will be used on a PAYGO basis. 100% of the PAYGO revenue beginning with CFD No. 22A formation through the 20th fiscal year is intended to be available to the landowners to fund eligible facilities. After that, any PAYGO revenues may be used at the City’s discretion to continue to fund or acquire eligible facilities, or the City may elect to reduce the special tax levy amount to eliminate PAYGO revenues.

Approving the resolutions attached also approves the boundary map for CFD No. 22A . Upon passage of these resolutions, a Public Hearing concerning the formation of CFD No. 22A will be scheduled, along with an election of owners of property within each IA of CFD No. 22A, for September 22, 2026.

FINANCIAL IMPACT

The services special tax for CFD No. 2 2A was structured to include police, fire, and other emergency services as project-specific services.

The CFD No. 22A formation, bonded indebtedness, and expenses are solely the responsibility of CFD No. 22A. The General Fund is not impacted by the CFD No. 22A Rate and Method of Apportionment.

ENVIRONMENTAL REVIEW

An Initial Study and Mitigated Negative Declaration prepared for the Folsom Plan Area Backbone Infrastructure Project were previously prepared for, and adopted by the City Council on February 24, 2015, in accordance with the requirements of the California Environmental Quality Act. Pursuant to CEQA Guidelines section 15378(c), the term “project” does not mean each separate governmental approval for an approved activity which may be subject to several discretionary approvals by governmental agencies. Additionally, the creation of government funding mechanisms which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment is not defined as a “project” under CEQA. CEQA Guidelines Section 15378(b)(4) and 15061(b)(3).

08/11/2026 Item No.21.
8 ATTACHMENTS

1. Resolution No. 11679- A Resolution of the City Council of the City of Folsom Approving a Proposed Boundary Map and Declaring Intention to Form a Community Facilities District to be Named “City of Folsom Community Facilities District No. 22A (Folsom Heights),” Designate Separate Improvement Areas Therein and Identify Territory Proposed for Annexation to the Community Facilities District in the Future and to Levy Special Taxes therein

2. Resolution No. 11680 - A Resolution of the City Council of the City of Folsom Declaring the Necessity for Incurring Bonded Indebtedness in and for the City of Folsom Community Facilities District No. 22A (Folsom Heights) and in and for Two Improvement Areas Designated therein and Territory Proposed for Annexation to the Community Facilities District in the Future and Calling for a Public Hearing thereon.

3. Boundary Map of Proposed CFD No. 22A

Submitted,

Stacey Tamagni
Finance Director/CFO

08/11/2026 Item No.21.

Attachment 1

08/11/2026 Item No.21.

Resolution No. 11679

RESOLUTION NO. 11679

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM

APPROVING A PROPOSED BOUNDARY MAP AND DECLARING

INTENTION TO FORM A COMMUNITY FACILITIES DISTRICT TO BE NAMED “CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT
NO. 22A (FOLSOM HEIGHTS),” DESIGNATE SEPARATE

IMPROVEMENT AREAS THEREIN AND IDENTIFY TERRITORY

PROPOSED FOR ANNEXATION TO THE COMMUNITY FACILITIES

DISTRICT IN THE FUTURE AND TO LEVY SPECIAL TAXES

THEREIN
WHEREAS , in accordance with the provisions of Section 5331 2.7 and 53345.8 of the California Government Code, the City Council (the “ City Council”) of the City of Folsom (the “City”) previously adopted the Local Goals and Poli cies (the “City Goals and Policies”) concerning the use of the Mello-Roos Community Facilities Act of 1982 (the “Act”); and WHEREAS , it is proposed to form a community facilities dis trict within the area of the City known as “Folsom Heights” under the Act; and
WHEREAS , the name of the proposed community facilities dis trict shall be “City of Folsom Community Facilities District No. 22A (Folso m Heights)” (“CFD 22A” or the “CFD”); and
WHEREAS , pursuant to Section 53350 of the Act, it is propo sed to designate two improvement areas within CFD 22A (each, an “Improvement Area”); and WHEREAS , the names of the Improvement Areas shall be “City of Folsom Community Facilities District No. 22A (Folsom Heights) Improv ement Area No. 1” (“Improvement Area No. 1”), “City of Folsom Community Facilities Distr ict No. 22A (Folsom Heights) Improvement Area No. 2” (“Improvement Area No. 2”) and “City of Folsom Community Facilities District No. 22A (Folsom Heights) Improvement Area No. 3” (“Improvement Area No. 3”); and WHEREAS , the proposed boundaries of CFD 22A, and each port ion of CFD 22A designated as an Improvement Area, are shown on the boundary map entitled “Map of Boundaries City of Folsom Community Facilities District No. 22 A (Folsom Heights),” on file with the City Clerk (the “Boundary Map”); and
WHEREAS , the types of public facilities (the “Facilities”) and services (the “Services”) proposed to be financed by CFD 22A are set forth in Exhibits A and B, respectively, attached hereto, and the City finds that the Facilities and Services are necessary to meet increased demands placed upon the City as the result of new development occurring and anticipated within CFD 22A; and
WHEREAS , the types of incidental expenses proposed to be i ncurred are set forth in Exhibit C attached to this resolution;

08/11/2026 Item No.21.

Resolution No. 11679

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom, as follows:

Section 1. The City Council finds and determines that the fore going recitals are true and correct.

Section 2. The City Council hereby finds and determines that C FD 22A, and each Improvement Area, is in compliance with the City Go als and Policies, and to the extent of any non-compliance with the City Goals and Policies, such compliance is hereby waived by the City.

Section 3. It is the intention of the City Council to establis h and the City Council hereby proposes to establish a community facilities district under and pursuant to the terms and provisions of the Act to be known and designated as the “City of Folsom Community Facilities District No. 22A (Folsom Heights)” and to identify territory proposed for annexation to CFD 22A in the future with the unanimous approval of the ow ner or owners of each such parcel or parcels at the time that such parcel or parcels are annexed to CFD 22A (the “Future Annexation Area”).

The boundaries of the territory proposed for inclus ion in CFD 22A, Improvement Area No. 1, Improvement Area No. 2 and Improvement Area No. 3 t herein, and the proposed Future Annexation Area, are more particularly described and shown on the Boundary Map now on file in the office of the City Clerk. The City Council hereby approves the Boundary Map and adopts the boundaries shown on the Boundary Map as describing the extent of the territory included in CFD 22A, each Improvement Area therein, and the Future Annexation Area. The City finds that the Boundary Map is in the form and contains the matters prescribed by Section 3110 of the California Streets and Highways Code and directs the City Clerk to certify the adoption of this resolution on the face of the Boundary Map, and to file a copy of the Boundary Map with the County Recorder for placement in the Book of Maps of Assessment and Community Facilities Districts no later than fifteen (15) days after the adoption of this resolution.

Section 4. It is the intention of the City Council to finance the Facilities and fund the Services described in Exhibits A and B, respectively, attached hereto and made a part hereof. All of the Facilities to be financed will have an estim ated useful life of at least five (5) years. They are public facilities that the City or another governmental entity is authorized by law to construct, own or operate or to which they may contribute reve nue. Pursuant to Government Code § 53313.5(m), the City Council finds and determines that to the extent that mass grading of hillside residential lots requires an integrated grading pro gram that simultaneously establishes slope stability, erosion control, and stormwater conveyan ce serving the broader community, and these elements cannot feasibly be separated from the grad ing of individual lots without compromising the geotechnical integrity of the hillside and the protection of adjacent public infrastructure, such mass grading serves a public purpose and therefore constitutes an eligible public Facility. The Facilities to be financed need not be physically located within CFD 22A.

Section 5. Except where funds are otherwise available, special taxes sufficient to pay for all Facilities and Services will be annually le vied within each Improvement Area. It is the intention of the City Council that a parcel or parc els within the Future Annexation Area may be annexed to CFD 22A and subjected to the special tax es only with the unanimous approval of the owner or owners of such parcel or parcels at the ti me that such parcel or parcels are annexed to CFD 22A. Upon recordation of a notice of special t ax lien pursuant to Section 3114.5 of the

08/11/2026 Item No.21.

Resolution No. 11679

California Streets and Highways Code, a continuing lien to secure the related levy of the special tax shall attach to all nonexempt real property within CFD 22A, and the lien shall continue in force and effect until the special tax obligation (or any portion thereof) is paid or prepaid and permanently satisfied and the related special tax l ien is cancelled in accordance with law or until collection of the related special tax by the City c eases. The rate and method of apportionment of the special tax to be levied in each Improvement Ar ea are set forth in Exhibit D-1, D-2, and D-3, respectively, attached to this resolution. The rate of special taxes, including the maximum special taxes, for a parcel or parcels in the Future Annexa tion Area annexed to CFD 22A with the unanimous approval of the owner or owners of such p arcel or parcels, shall be levied as set forth in Exhibit D-1, D-2 and D-3 in accordance with the Improvement Area to which such area is annexed. The special tax with respect to the Facil ities on any parcel within each Improvement Area shall not be levied after the earlier of (i) Fiscal Year 2086-87 or (ii) the Fiscal Year occurring 50 years following (a) the Fiscal Year in which the first building permit was issued, or (b) the first series of bonds was issued within the respective Improvement Area. The special tax with respect to the Services shall be levied perpetually until the collection of the special tax by the City ceases.

In the case of any special tax to pay for the Facil ities and to be levied against any parcel used for private residential purposes, under no circumstances will the special tax levied against any parcel be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within any Improvement Area by more than 10 percent of the special tax for Facilities that would be levied in that Fiscal Year but for such delinquencies or defaults.

Section 6. Advances of funds or contributions of work in kind from any lawful source, specifically including owners of property within each Improvement Area, may be reimbursed from bond proceeds or from special tax revenue or both t o the extent of the lesser of the value or cost of the contribution, but any agreement to do so shall not constitute a debt or liability of the City.

To the extent the Facilities will not be constructe d by the City, in the opinion of the City Council, the public interest will not be served by allowing the property owners in CFD 22A to intervene in a public bidding process pursuant to Section 53329.5(a) of the Act.

Section 7. The City intends to reserve to itself the right and authority to allow bond tenders from any interested landowner within CFD 22 A to be accepted under Government Code sections 53344.1 and 53356.8 in full or partial pay ment of any installment of the special taxes or the interest or penalties thereon.

Section 8. The City Council hereby sets Tuesday, September 22, 2026, 6:30 p.m., or as soon thereafter as the City Council may reach th e matter, at the City Hall, 50 Natoma Street, Folsom, CA, 95630, as the time and place for the pu blic hearing on the formation of CFD 22A.

At the hearing, oral and written testimony concerni ng the formation of CFD 22A, the extent of CFD 22A and the identification of the Future Annexa tion Area, the designation of the Improvement Areas and the furnishing of the Facilities and Services will be heard and protests will be considered from registered voters residing withi n CFD 22A and persons owning real property within CFD 22A or the Future Annexation Area. Writ ten protests against the formation of CFD 22A or designation of an Improvement Area by a majo rity of the registered voters (if at least six such voters protest) or by the owners of a majority of the land which would be subject to special taxation within the related Improvement Area will r equire the suspension of proceedings to form CFD 22A, to designate the related Improvement Area and to levy the specified special tax for at

08/11/2026 Item No.21.

Resolution No. 11679

least one year. Written protests by fifty percent (50%) or more of the registered voters or six registered voters, whichever is more, residing within the Future Annexation Area, or by the owners of one-half or more of the land area within the Future Annexation Area, will require suspension of the proceedings to authorize the same territory to be annexed to CFD 22A in the future for at least one year. If such protests constitute a majority p rotest and are directed only against a specified type or types of the Facilities and Services or aga inst levying a specified special tax, only those types of Facilities, Services or the specified spec ial tax will be eliminated from the proceedings.

Any protests pertaining to the regularity or suffic iency of the proceedings shall be in writing and shall clearly set forth the irregularities and defe cts to which objection is made. Written protests must be filed with the City Clerk at or before the time fixed for the hearing.

Section 9. Any bonds issued in these proceedings shall be callable in accordance with the provisions of the Act and as more specifically to be set forth in any resolution authorizing the issuance of bonds or indenture authorized thereby.

Section 10. It is anticipated that the special tax will be bill ed as a separate line item on the regular secured property tax bills, and will be subject to the same enforcement mechanism, and the same penalties and interest for late payment, a s regular ad valorem property taxes. However, the City reserves the right, under Section 53340, to utilize any method of collecting the special tax which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing, and when lawfully available, judicial foreclosure of the special tax lien.

Section 11. The City Manager or his/her designee is directed to study CFD 22A and prepare for filing at the public hearing the report required by Section 53321.5 of the Act (the “CFD Hearing Report”). The City Manager may delegate to consultants the duty to perform the study and prepare the CFD Hearing Report.

Section 12. If elections are held in these proceedings, it is t he intention of the City Council that the electors will be the owners of pro perty within CFD 22A pursuant to Sections 53326 and 53350 of the Act.

Section 13. The City Council also intends to establish the annu al appropriations limit for Improvement Area No. 1 at $4,000,000, for Impro vement Area No. 2 at $4,000,000, and for Improvement Area No. 3 at $4,000,000, each for the 2026-27 fiscal year.

Section 14. The City Clerk is hereby directed to have the Notic e of Public Hearing in the form attached to this resolution as Exhibit E p ublished once in a newspaper of general circulation in the vicinity of CFD 22A, no later than ten (10) days prior to the public hearing.

08/11/2026 Item No.21.

Resolution No. 11679

Section 15. This resolution shall take effect from and after its adoption.

PASSED AND ADOPTED this 11th day of August, 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

08/11/2026 Item No.21.

A-1

EXHIBIT A

AUTHORIZED FACILITIES

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)

The Facilities to be financed by CFD 22A include fa cilities designed to meet the needs of development within CFD 22A, whether such facilities are located within or outside the boundaries of CFD 22A, and include but are not limited to the following:

Transportation Improvements
Eligible roadway improvements include, but are not limited to: acquisition of land and easements; roadway design; project management; brid ge crossings and culverts; clearing, grubbing, and demolition; grading, soil import/expo rt, paving (including slurry seal), and decorative/enhanced pavement concrete and/or pavers ; joint trenches, underground utilities and undergrounding of existing utilities; dry utili ties and appurtenances; curbs, gutters, sidewalks, bike trails (including onsite and off-si te), enhanced fencing, and access ramps; street lights, signalization, and traffic signal co ntrol systems; bus turnouts; signs and striping; erosion control; median and parkway landscaping and irrigation; entry monumentation; bus shelters, Bus Rapid Transit improvements including transfer stations and regional public transit improvements; masonry walls; traffic contro l and agency fees; and other improvements related thereto. Eligible improvements for the roa ds listed herein also include any and all necessary underground potable and recycled water, s anitary sewer, and storm drainage system improvements.

Authorized facilities include the following transpo rtation improvements:
- Summit Street
- Prima Drive
- Empire Ranch Road
- Alder Creek Parkway
- Folsom Heights Drive
- Other public roadway improvements designed to meet the needs of development of property within CFD 22, including internal subdivis ion streets and related underground utilities.

08/11/2026 Item No.21.

A-2
Water System Improvements
Authorized facilities include any and all water fac ilities designed to meet the needs of development of property within CFD 22A. These facilities include, but may not be limited to: water storage, treatment and distribution facilities incl uding waterlines and appurtenances, gate valves, pressure reducing stations, flow meters, fire hydrants, and other improvements related thereto such as site clearing, grading and paving; curbs and gutters; booster pump stations and power; stand-by generators; site lighting, drainage, sanitary sewer , and water service; landscaping and irrigation; access gates, and fencing; and striping and signage.

Recycled Water System Improvements
Authorized facilities include any and all recycled water system facilities designed to meet the needs of development of property within CFD 22A . These facilities include, but may not be limited to: treatment and distribution facilities including pipelines and appurtenances, gate valves, flow meters, booster pump pressurization system, and other improvements related thereto - such as site clearing, grading and paving; curbs and gutter s; booster pump stations; stand-by generators; site lighting, drainage, sanitary sewer, and water service; landscaping and irrigation; access gates, and fencing; and striping and signage.

Drainage System Improvements
Authorized facilities include any and all drainage and storm drain improvements designed to meet the needs of development of property within CFD 22A. These facilities include, but may not be limited to: excavation and grading, pipelines and appurtenances, outfalls and water quality measures, detention/retention basins, drainage pret reatment facilities, drainage ways/channels, pump stations, landscaping and irrigation; access roads, gates, and fencing; and striping and signage and other improvements related thereto.

Wastewater System Improvements
Authorized facilities include any and all wastewater facilities designed to meet the needs of development of property within CFD 22A. These faci lities include, but may not be limited to, pipelines and all appurtenances thereto; manholes; tie-in to existing main lines; force mains; lift stations; upgrades to existing lift stations; odor-control facilities; and permitting related thereto; and related sewer system improvements.

Park, Parkway and Open Space Improvements
Authorized facilities include any and all improvements to parks, parkways and open space required for development of property within CFD 22A . These facilities include, but may not be limited to: grading, turf, shrubs and trees, landsc aping irrigation, site lighting, drainage, sanitary sewer and water service, pedestrian and bicycle tra ils, protective fencing (including soundwalls), pedestrian/bicycle bridges, storm drain crossings, wetland mitigation, hawk mitigation for authorized facilities herein, access gates and fenc ing and related open space improvements.

Authorized facilities include acquisition of any an d all parkland as well as open space/bike trail/public access easements required for development of property within CFD 22A.

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A-3
Specific Plan Infrastructure Fee Infrastructure
Authorized facilities include any and all improvements that are included in the Specific Plan Infrastructure Fee Program adopted by the City Council on September 8, 2015, including any future amendments thereto.

Other Incidental Expenses and Bond Issuance Costs
In addition to the above facilities, other incident al expenses as authorized by the Mello- Roos Community Facilities Act of 1982, including, b ut not limited to, the cost of planning and designing the facilities (including the cost of env ironmental evaluation, remediation and mitigation); engineering and surveying; construction staking; utility relocation and demolition costs incidental to the construction of the public facili ties; costs of project/construction management; costs (including the costs of legal services) associated with the formation of the Mello-Roos CFD; issuance of bonds (if any); determination of the am ount of taxes; collection of taxes; payment of taxes; costs of calculating and providing reimburse ments from one-time special tax payments; or costs otherwise incurred in order to carry out the authorized purposes of CFD 22A; and any other expenses incidental to the formation and implementa tion of CFD 22A and to the construction, completion, inspection and acquisition of the authorized facilities.

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EXHIBIT B

AUTHORIZED SERVICES

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)
The authorized services to be funded from the levy and collection of annual special taxes include those set forth below in addition to the costs associated with collecting and administering the special taxes and annual administration of CFD 22A.

CFD 22A will be eligible to fund all or a portion o f the costs of reconstruction and/or rehabilitation, operation, maintenance, repair and replacement, and servicing of the following items not otherwise subject to funding from the City of Folsom Community Facilities District No. 18 (Folsom Plan Area – Area-Wide Improvements and Services):

1. Open Space improvements, operations and manageme nt, monitoring, maintenance (including general maintenance, signage, City owned fence maintenance, trash and debris collection, and bike trails and their appurtenances [drainage culverts or pipes from adjacent subdivisions] within open space), creation and main tenance of fire breaks, Permits, Vandalism/Graffiti, Flood Conveyance (Vegetation/tr ee removals), Beaver dam removals, Outfall/drainage swale maintenance, Erosion control /bank stabilization, Native planting/replanting, Pre and post emergent, maintenance activities as required by a 404 permit and Operations and Management Plan-Conservation and Passive Recreation Open Space, dated June 9, 2017, and repair and replacement of facilities within open space areas in the Project Area.

2. The maintenance of on-site landscape corridors a nd paseos designed to serve land uses within CFD 22A, including general maintenance, masonry walls, accent lighting, water and utility costs.

3. The maintenance of streetlights, including any u tility costs related thereto.

4. The maintenance of medians, entries, and entry m onumentation.

5. Neighborhood park maintenance, and repair and re placement.

6. Community amenities, such as a community clubhou se.

7. Storm water management, water quality structural controls, including drainage swales constructed between storm drain facilities and receiving waters.

8. Miscellaneous costs related to any of the items described above including planning, engineering, GIS, legal, and city and county administration costs.

9. The levy of special taxes to accumulate sinking funds for anticipated future repairs or replacement costs of landscape corridors, irriga tion facilities, medians, entries and entry

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monumentation, lighting, neighborhood parks, storm water management and other facilities maintained by CFD 22A as determined by the Administrator.

Annual maintenance functions and costs generally wi ll include the installation, maintenance and servicing of ground cover, shrubs a nd trees, irrigation systems, street lighting, fencing, sound walls, sidewalks, monuments, enhanced open space maintenance including but not limited to maintaining the enhanced open space areas located adjacent to avoided or created habitat mitigation areas and other buffer areas between the enhanced open space and vertical development, bike trails, walkways, entry signage, street pavers , and labor, materials, supplies, utilities (including water and electricity) and equipment, as applicable, for property owned or maintained by the City. Annual maintenance costs include an allowance for long-term repair and replacement of improvements.

CFD 22A may fund any of the following related to t he maintenance of the services described above: obtaining, repairing, reconstructi ng, furnishing, operating and maintaining equipment, apparatus or facilities related to provi ding the services and/or equipment, apparatus, facilities or fixtures in areas to be maintained, p aying the salaries and benefits of the personnel necessary or convenient to provide the services, an d other related expenses and the provision of reserves for repairs and replacements for the futur e provision of services. It is expected that the services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. CFD 22A may also fund administrative fees of the City related to CFD 22A.

CFD 22A will further be eligible to fund all or a portion of the costs of the following public services:

Police, fire and other emergency services that are in addition to those services that were provided within the boundaries of CFD 22A at the ti me of formation of CFD 22A, including but not limited to (i) the costs of contracting service s, (ii) related equipment, vehicles, ambulances, fire apparatus and supplies, (iii) the salaries and benefits of City and non-City staff that directly provide police, fire and emergency services, and (iv) City and non-City overhead costs associated with providing such services within CFD 22A.

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EXHIBIT C

INCIDENTAL EXPENSES AND BOND ISSUANCE COSTS

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)
It is anticipated that the following incidental expenses may be incurred for CFD 22A:

Engineering services
Special tax consultant services
City review and administration
Bond counsel services
Bond counsel expenses
Disclosure counsel services
Disclosure counsel expenses
Independent municipal advisor services and expenses
Appraiser services
Market absorption study and real estate economist services Initial bond transfer agent, fiscal agent, registrar and paying agent fees Rebate calculation service set up charge
Bond printing
Offering memorandum printing and mailing costs
Publishing, mailing and posting of notices
Underwriter’s discount
Bond reserve fund
Capitalized interest
Bond syndication costs
Governmental notification and filing costs
Credit enhancement costs
Real estate acquisition costs
Rating agency fees
Charges and fees of City other than those waived
Certain annual costs may be included in each annual special tax levy. These include:

Annual bond transfer agent, fiscal agent, registrar and paying agent fees Annual rebate calculation costs
Special tax consultant costs and administration expenses Other necessary consultant costs
Costs of posting and collecting the special taxes
Personnel and Administrative costs of the City
Arbitrage rebate
Continuing disclosure reporting and compliance

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EXHIBIT D-1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA NO. 1

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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 1

RATE AND METHOD OF APPORTIONMENT FOR

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)
IMPROVEMENT AREA 1
A Special Tax, as hereinafter defined, shall be levied on each Assessor's Parcel of Taxable Property within Improvement Area No. 1 of the City of Folsom Community Facilities District No. 22A (Folsom Heights) (CFD No. 22A IA1) and collected each Fiscal Year in an amount determined by the CFD No. 22A IA1 Administrator through the application of the Rate and Method of Apportionment as described below. All of the real property within CFD No. 22A IA1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. GENERAL DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on County records, such as an Assessor’s Parcel Map and secured roll data, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Large Lot Map, Small Lot Final Subdivision Map, condominium plan, record of survey, or other recorded document creating or describing the parcel.

If the preceding maps for a land area are not available, the Acreage of such land area may be determined utilizing available spatial data and GIS. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor of the County designating lots or parcels by an Assessor’s Parcel number.
“Authorized Services” means the services authorized to be financed by CFD No. 22A IA1. “Average Sales Price” means the estimated average net price of new homes with options and upgrades by product category, as identified in the most recent Price Point Study for the CFD 22A IA1 market area.
“Bond Year” means a one-year period beginning on September 2nd in each year and ending on September 1st in the following year, unless defined differently in the applicable Indenture. “Bonds” means any bonds or other debt (as defined in the Act), whether in one or more series, issued by CFD No. 22A IA1 under the Act.
“CFD No. 22A IA1” means City of Folsom Community Facilities District No. 22A IA1 (Folsom Heights). “CFD No. 22A IA1 Administrator” means the City’s Finance Director, or designee thereof, responsible for determining the Facilities Special Tax Requirement, Services Special Tax Requirement, and

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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 2
Transition Services Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“City” means the City of Folsom.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 22A IA1. “County” means the County of Sacramento.
“Developed Property” means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued prior to June 30 of the previous Fiscal Year. “Effective Tax Rate Evaluation” means an evaluation of the Total Effective Tax Rate of Residential Property at the time of such evaluation. The Effective Tax Rate Evaluation will be based upon a prepared Price Point Study to determine the Total Effective Tax Rate for Residential Property, based upon the calculated Total Estimated Tax Burden.
“Effective Tax Rate Evaluation Maximum Facilities Special Tax” means the total maximum annual Facilities Special Tax, as determined during the Effective Tax Rate Evaluation, in accordance with the provisions of Section C.3, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate” means the maximum annual Facilities Special Tax rate for each land use category of Taxable Property that will be set forth in Attachment C, following the Effective Tax Rate Evaluation, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Effective Tax Rate Evaluation Minimum Facilities Revenue” means, following the Effective Tax Rate Evaluation, the total minimum amount of CFD No. 22A IA1 Effective Tax Rate Evaluation Maximum Facilities Special Tax, as adjusted annually by the Facilities Special Tax Escalation Factor after the Fiscal Year in which the Effective Tax Rate Evaluation occurs, less any Effective Tax Rate Evaluation Maximum Facilities Special Tax amounts partially prepaid pursuant to Section L. The Effective Tax Rate Evaluation Minimum Facilities Revenue, based on Planned Development, is set forth in Attachment D of this Rate and Method of Apportionment.
“Exempt Property” means all Assessors’ Parcels that are exempt from the Special Tax pursuant to Section G.
“Facilities Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of the Facilities Special Tax including, but not limited to, the following: the costs of computing the Facilities Special Tax and preparing the annual Facilities Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Facilities Special Taxes (whether by the County, the City, or otherwise); the costs of remitting the Facilities Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 22A IA1, or any designee thereof of complying with arbitrage rebate requirements or responding to questions from the IRS or SEC pertaining to any Bonds or any audit of any Bonds by the SEC or IRS; the costs to the City, CFD No. 22A IA1, or any designee thereof of providing continuing disclosure regarding the Bonds pursuant to

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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 3
applicable state or federal securities law; the costs associated with preparing Facilities Special Tax disclosure statements and responding to public inquiries regarding the Facilities Special Taxes; the costs of the City, CFD No. 22A IA1, or any designee thereof related to any appeal of the levy or application of the Facilities Special Tax; the costs associated with the release of funds from an escrow account, if any; and the costs associated with computing and preparing the Effective Tax Rate Evaluation, including the Price Point Study. Facilities Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22A IA1 for any other administrative purposes, including, but not limited to, attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Facilities Special Taxes. “Facilities Special Tax” means the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Facilities Special Tax Requirement. “Facilities Special Tax Escalation Factor” means two percent (2%) annually. “Facilities Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for CFD No. 22A IA1 to: (i) pay Facilities Administrative Expenses in an amount designated by the City; (ii) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year and known upcoming delinquencies; and (vi) pay for Pay As You Go Costs; less (vii) a credit for funds available to reduce the annual Facilities Special Tax levy as determined by the CFD No. 22A IA1 Administrator pursuant to the Indenture. “Facilities Special Tax Term” means the earlier of Fiscal Year 2086-2087 or the Fiscal Year occurring 50 years following the Fiscal Year in which the first building permit was issued, or the first series of Bonds was issued within CFD No. 22A IA1.
“Fiscal Year” means the period starting July 1 and ending on the following June 30. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Large Lot Map” means a recorded subdivision map creating larger parcels by land use. The Large Lot Map does not create individual lots for which building permits may be issued for single-family Residential Units.
“Large Lot Property” means, for each Fiscal Year, all Taxable Property for which a Large Lot Map was recorded prior to June 30 of the previous Fiscal Year, excluding any portion(s) thereof classified as Developed Property, Small Lot Final Map Property, or Permit Ready Multi-Family/Non-Residential Property. Large Lot Property also means, for each Fiscal Year, all Taxable Property classified as Small Lot Final Map Remainder Property as of June 30 of the previous Fiscal Year.

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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 4
“Maximum Facilities Special Tax” means the total maximum annual Facilities Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Facilities Special Tax Rate” means the maximum annual Facilities Special Tax rate for each land use category of Taxable Property, as shown in Attachment A, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Services Special Tax” means the total maximum annual Services Special Tax, determined in accordance with the provisions of Section D, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Services Special Tax Rate” means the maximum annual Services Special Tax rate for each land use category of Taxable Property, as shown in Attachment A, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Special Tax” means, prior to the Transition Year, the total annual Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) and Maximum Services Special Tax, determined in accordance with the provisions of Section C and Section D, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.

Beginning in the Transition Year, “Maximum Special Tax”, also means the total annual Maximum Transition Services Special Tax, determined in accordance with the provisions of Section D, which may be levied in any Fiscal Year following the Transition Event on any Assessor’s Parcel of Taxable Property. “Maximum Total Effective Tax Rate” means 1.80%, unless the City determines, in its sole discretion, that a higher Maximum Total Effective Tax Rate is appropriate. “Maximum Transition Services Special Tax” means, beginning in the Transition Year, the maximum amount, determined in accordance with the provisions of Section D, which may be levied in any Fiscal Year following the Transition Event on any Assessor’s Parcel of Taxable Property. “Minimum Facilities Revenue” means the minimum amount of total CFD No. 22A IA1 Maximum Facilities Special Tax, as adjusted annually by the Facilities Special Tax Escalation Factor, less any Maximum Facilities Special Tax amounts partially prepaid pursuant to Section L. The Minimum Facilities Revenue, based on Planned Development, is set forth in Attachment B of this Rate and Method of Apportionment. Following the Transition Event, the Minimum Facilities Revenue shall be zero.
“Non-Residential Property” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing non-residential buildings. “Open Space Property” means property within the boundaries of CFD No. 22A IA1 which (a) has been designated with specific boundaries and acreage on a Small Lot Final Subdivision Map as open space, or (b) is classified by the City zoning code or County Assessor as open space, or (c) has been irrevocably offered for dedication as open space to the federal government, the State of California, the County, the City, any other public agency, a private, non-profit organization, or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space.

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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 5
“Other Taxable Property” means all other land uses of Taxable Property, for which a building permit for new construction can be issued. Other Taxable Property does not include Residential Property and Non-Residential Property land use categories.
“Outstanding Bonds” means all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay As You Go Costs” means that portion of the Facilities Special Tax Requirement attributable to the direct payment for the acquisition and/or construction of public improvements, which are authorized to be financed by CFD No. 22A IA1.
“Permit Ready Multi-Family/Non-Residential Property” means an Assessor’s Parcel of Taxable Property zoned for multi-family or non-residential land use for which all discretionary entitlements have been obtained, including, without limitation, development plan review and improvement plan approval, such that building permits may be issued without further approvals for the construction of multi-family Residential Units or non-residential buildings within such Assessor’s Parcel. The City shall have sole discretion, based upon available development information, in classifying an Assessor’s Parcel as Permit Ready Multi-Family/Non-Residential Property. “Planned Development” means the planned number of Residential Lots, Permit Ready Multi- Family/Non-Residential Property Acreage planned within CFD No. 22A IA1, set forth in Attachment B or, following the Effective Tax Rate Evaluation, Attachment D of this Rate and Method of Apportionment, as amended by the future recordation of all Large Lot Maps and Small Lot Final Subdivision Maps within CFD No. 22A IA1.
“Price Point Study” means an analysis, prepared by an independent firm, to verify the estimated Average Sales Price within each land use category of Residential Property given the project location and current market conditions.
“Property Owner Association Property” means any property within the boundaries of CFD No. 22A IA1, which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. “Proportionately” means for Taxable Property that the ratio of the Facilities Special Tax levy to the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) and the Services Special Tax levy to the Maximum Services Special Tax is equal for all Assessors’ Parcels within each classification (Developed Property, Single Family Final Map Property, Permit Ready Multi- Family/Non-Residential Property, Large Lot Property, etc.) within CFD No. 22A IA1. “Public Property” means any property within the boundaries of CFD No. 22A IA1, which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property, which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City, or any other public agency.

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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 6
“Residential Lot” means an individual lot of land for which a building permit could be issued to construct a Residential Unit.
“Residential Property” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing Residential Units, including Single-Family Detached Property – SF/SFHD Zoning, Single-Family Detached Property – MLD Zoning Property. “Residential Unit” means a residential dwelling unit, including accessory dwelling units, as allowed by the City zoning code.
“Services Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of the Services Special Tax including, but not limited to, the following: the costs of computing the Services Special Taxes and preparing the annual Services Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Services Special Taxes (whether by the County, the City, or otherwise); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Services Special Tax; and the costs of the City, CFD No. 22A IA1, or any designee thereof related to any appeal of the levy or application of the Services Special Tax. Services Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22A IA1 for any other administrative purposes related to the Services Special Tax.
“Services Special Tax” means, prior to the Transition Event, the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Services Special Tax Requirement.
“Services Special Tax Escalation Factor” means the maximum of two percent (2%) or the June annualized percentage change of the Consumer Price Index for all Urban Consumers, for the San Francisco-Oakland-Hayward area, not to exceed four percent (4%). “Services Special Tax Requirement” means the amount of Services Special Tax revenue required for CFD No. 22A IA1, before the Transition Year, to (i) pay Services Administrative Expenses in an amount designated by the City; (ii) pay Authorized Services expenses; (iii) pay any amounts required to establish or replenish any repair and contingency funds, capital improvement funds, or reserve funds related to the Authorized Services expenses; (iv) cover any shortfalls that exist if, in any Fiscal Year, the levy of the Facilities Special Tax on each Assessor’s Parcel of Taxable Property is insufficient to pay the Facilities Special Tax Requirement in that Fiscal Year. Facilities Special Tax Requirement shortfalls shall not include Pay As You Go Costs, and (v) pay for reasonably anticipated delinquent Services Special Taxes based on the delinquency rate for Services Special Taxes levied in the previous Fiscal Year; less (vi) a credit for funds available to reduce the annual Services Special Tax levy as determined by the CFD No. 22A IA1 Administrator.
“Single-Family Detached Property – MLD Zoning” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing one or more detached or attached Residential Units with a permitted density range of 7-12 Residential Units per Acre and more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council.

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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 7
“Single-Family Detached Property – SF Zoning” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing one or more Residential Units.

Single-Family Detached Property – SF Zoning shall consist of single-family property with a permitted density range of 1-4 Residential Units per Acre, which is more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council.

Single-Family Detached Property – SFHD Zoning” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing one or more Residential Units.

Single-Family Detached Property – SFHD Zoning shall consist of single-family property with a permitted density range of 4-7 Residential Units per Acre, which is more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council. “Special Tax” means, before the Transition Year, the annual Facilities Special Tax and Services Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Facilities Special Tax Requirement and the Services Special Tax Requirement; and, beginning in the Transition Year, the annual Transition Services Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Transition Services Special Tax Requirement. “Small Lot Final Map Property” means, for each Fiscal Year, all Taxable Property for which a Small Lot Final Subdivision Map was recorded prior to June 30 of the previous Fiscal Year. “Small Lot Final Map Remainder Property” means an Assessor’s Parcel that is created from the subdivision of Large Lot Property by the recordation of a Small Lot Final Subdivision Map that has not yet been mapped for final development approval. Small Lot Final Map Remainder Property is that portion of property for which the Small Lot Final Subdivision Map definition does not apply (i.e., does not contain individual lots for which building permits may be issued for Residential Units without further subdivision of such property). Each Fiscal Year, all Taxable Property classified as Small Lot Final Map Remainder Property, as of June 30 of the previous Fiscal Year, will be considered Large Lot Property.
“Small Lot Final Subdivision Map” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued for Residential Units without further subdivision of such property. “State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 22A IA1 that are not exempt from the CFD No. 22A IA1 Special Tax pursuant to law or Section F below. “Total Effective Tax Rate” means the percentage of the Total Estimated Tax Burden as compared to the estimated average sales price identified in the Price Point Study for each land use category of Residential Property.
“Total Estimated Tax Burden” means the total amount of overlapping property taxes anticipated to be levied upon a Residential Unit, based upon the estimated Average Sales Price identified in the most

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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 8
recently completed Price Point Study and existing property tax rates for the current Fiscal Year.

Existing property tax rates shall reflect the actual property tax rates— excluding utility-related fees and charges and PACE loans— levied upon Taxable Property in the Fiscal Year that the Effective Tax Rate Evaluation is completed.
“Transition Event” means the earlier of (i) Fiscal Year 2086-2087 or (ii) the Fiscal Year when the CFD No. 22A IA1 Administrator determines that both of the following events have occurred (1) all Bonds secured by the levy and collection of the Facilities Special Tax in CFD No. 22A IA1 have been fully repaid and the City determines that no additional Bonds are to be issued, and (2) all Facilities Administrative Expenses have been paid or reimbursed to CFD No. 22A IA1. “Transition Services Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of the Transition Services Special Tax including, but not limited to, the following: the costs of computing the Transition Services Special Taxes and preparing the annual Transition Services Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Transition Services Special Taxes (whether by the County, the City, or otherwise); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Transition Services Special Tax; and the costs of the City, CFD No. 22A IA1, or any designee thereof related to any appeal of the levy or application of the Transition Services Special Tax. Transition Services Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22A IA1 for any other administrative purposes related to the Transition Services Special Tax.
“Transition Services Special Tax” means, after the Transition Event, the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Transition Services Special Tax Requirement.
“Transition Services Special Tax Escalation Factor” means the maximum of two percent (2%) or the June annualized percentage change of the Consumer Price Index for all Urban Consumers, for the San Francisco-Oakland-Hayward area, not to exceed four percent (4%). “Transition Services Special Tax Rate” means, calculated in the Transition Year, the amount equal to the prior Fiscal Year’s Maximum Services Special Tax Rate plus fifty percent (50%) of the prior Fiscal Year’s Maximum Facilities Special Tax Rate. The Transition Services Special Tax Escalation Factor shall be applied beginning in the Transition Year. Following the Transition Year, the Transition Services Special Tax Rate shall be equal to the prior Fiscal Year’s Transition Services Special Tax Rate, increased by the Transition Services Special Tax Escalation Factor. “Transition Services Special Tax Requirement” means the amount of Transition Services Special Tax revenue required for CFD No. 22A IA1, beginning in the Transition Year, to (i) pay Transition Services Administrative Expenses in an amount designated by the City; (ii) pay Authorized Services expenses; (iii) pay any amounts required to establish or replenish any repair, replacement and contingency funds, capital improvement funds, or reserve funds related to the Authorized Services expenses; (iv) pay for reasonably anticipated delinquent Transition Services Special Taxes based on the delinquency rate for Transition Services Special Taxes levied in the previous Fiscal Year; less (v) a credit for funds

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available to reduce the annual Transition Services Special Tax levy as determined by the CFD No. 22A IA1 Administrator.
“Transition Year” means the first year in which the CFD No. 22A IA1 Administrator determines that the Transition Event occurred in the prior Fiscal Year. “Trustee” means the entity appointed pursuant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Small Lot Final Map Property, Permit Ready Multi-Family/Non-Residential Property, or Large Lot Property.
“Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 22A IA1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act.

Pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcels that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Facilities Special Tax.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, using City and County records, City zoning information, and land use development plans, all Assessor’s Parcels within the boundaries of CFD No. 22A IA1 shall be designated as either Taxable Property or Exempt Property.

All Taxable Property shall be further classified as Developed Property, Small Lot Final Map Property, Permit Ready Multi-Family/Non-Residential Property, Large Lot Property, or Undeveloped Property and shall be subject to the levy of the annual Special Tax determined pursuant to Sections C and D below.

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C. FACILITIES SPECIAL TAX
Prior to the Transition Year, a Maximum Facilities Special Tax shall be assigned to all Taxable Property within CFD No. 22A IA1 according to the Maximum Facilities Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment.

Once assigned, the sum of the total Maximum Facilities Special Tax shall be equal to or greater than the Minimum Facilities Revenue, unless adjusted by an Effective Tax Rate Evaluation as described below. The Minimum Facilities Revenue for Fiscal Year 2027-2028 is set forth in Attachment B of this Rate and Method of Apportionment.

C.1. Increase in the Maximum Facilities Special Tax
On each July 1, commencing on July 1, 2028, the Maximum Facilities Special Tax Rates and Minimum Facilities Revenue in effect for the previous Fiscal Year shall be increased by the Facilities Special Tax Escalation Factor.

C.2. Future Assessor’s Parcel Changes – Prior to an Effective Tax Rate Evaluation The Maximum Facilities Special Tax shall be assigned to all future Assessor’s Parcel(s) created from a subdivision, lot line adjustment, or merger of one or more Assessor’s Parcels so that the revised sum of the total Maximum Facilities Special Tax revenue is not less than the Minimum Facilities Revenue set forth in Attachment B of this Rate and Method of Apportionment.

Undeveloped Property Subdividing into Large Lot Property When Undeveloped Property subdivides into Large Lot Property, the Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. The expected Developed Property Maximum Facilities Special Tax for any Large Lot Property and any remaining Undeveloped Property shall be based upon the Planned Development for the Large Lot Property and remaining Undeveloped Property.

If the sum of the total expected Developed Property Maximum Facilities Special Tax generated by all of the Taxable Property is greater than or equal to the Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates for the Large Lot Property created from the Undeveloped Property subdivision.

If the sum of the total expected Developed Property Maximum Facilities Special Tax is less than the Minimum Facilities Revenue, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates shall be uniformly increased on the Large Lot Property created from the Undeveloped Property subdivision until the sum of the total expected Developed Property Maximum Facilities Special Tax is equal to the Minimum Facilities Revenue. Further, if the sum of the total current Maximum Facilities Special Tax is less than the Minimum Facilities Revenue, the Maximum Facilities Special Tax Rates for the Large Lot Property and any remaining Undeveloped Property created from the Undeveloped Property subdivision shall be uniformly increased until the sum of the total current Maximum Facilities Special Tax is equal to the Minimum Facilities Revenue. Attachment B of this

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Rate and Method of Apportionment shall be updated to reflect any increases to the Maximum Facilities Special Tax Rates from the Undeveloped Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi- Family/Non-Residential Property.

Large Lot Property Subdividing into Small Lot Final Map Property and/or Permit Ready Multi- Family/Non-Residential Property
When Large Lot Property subdivides into Small Lot Final Map Property and/or Permit Ready Multi-Family/Non-Residential Property, the Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. If the Large Lot Property subdivision also creates Small Lot Final Map Remainder Property, the expected Developed Property Maximum Facilities Special Tax for the Small Lot Final Map Remainder Property shall be based upon the Planned Development for the Small Lot Final Map Remainder Property. The expected Developed Property Maximum Facilities Special Tax for any remaining Large Lot Property and Undeveloped Property shall be based upon the Planned Development of the Large Lot Property and the Undeveloped Property.

If the sum of the total expected Developed Property Maximum Facilities Special Tax is greater than or equal to the Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Maximum Facilities Special Tax Rates for the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi-Family/Non-Residential Property created from the Large Lot Property subdivision.

If the sum of the total expected Developed Property Maximum Facilities Special Tax is less than the Minimum Facilities Revenue, and such difference is not eliminated by the partial prepayment of the Effective Tax Rate Evaluation Maximum Facilities Special Tax pursuant to Section L, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Maximum Facilities Special Tax Rates shall be Proportionately increased, on the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi-Family/Non-Residential Property created from the Large Lot Property subdivision, until the sum of the total expected Developed Property Maximum Facilities Special Tax is equal to the Minimum Facilities Revenue. Attachment B of this Rate and Method of Apportionment shall be updated to reflect any increases to the Maximum Facilities Special Tax Rates from the Large Lot Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi-Family/Non-Residential Property created prior to the Large Lot Property subdivision.

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C.3. Effective Tax Rate Evaluation
Prior to the issuance of the first series of Bonds within CFD No. 22A IA1 an Effective Tax Rate Evaluation will be completed. Following the Effective Tax Rate Evaluation, Attachment C of this Rate and Method of Apportionment will be updated to reflect the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for all Taxable Property in CFD No. 22A IA1.

Additionally, prior to the issuance of the first series of Bonds, the Developer may, one time, at their discretion, further reduce the Maximum Facilities Special Tax Rate for any or all Taxable Property in CFD No. 22A IA1 to an amount less than the rates produced in the Effective Tax Rate Evaluation. If reduced, the reduction will be applied uniformly by land use category.

Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates As part of the Effective Tax Rate Evaluation, a Price Point Study will be prepared and an estimated Average Sales Price will be established for each Residential Property land use category. Using the estimated Average Sales Price information determined in the Price Point Study, the Total Estimated Tax Burden and Total Effective Tax Rate will be calculated, using the Developed Property Maximum Facilities Special Tax Rates set forth in Attachment A, for each Residential Property land use category. If the calculated Total Effective Tax Rate is less than or equal to the Total Maximum Effective Tax Rate for a Residential Property land use category, the Maximum Facilities Special Tax Rate shall not be adjusted and will be assigned using the Developed Property Maximum Facilities Special Tax Rates set forth in Attachment A. Attachment C of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category.

If the Total Effective Tax Rate for any Residential Property land use category exceeds the Total Maximum Effective Tax Rate, the Developed Property Maximum Facilities Special Tax Rate set forth in Attachment A shall be reduced until the Total Effective Tax Rate is less than or equal to the Total Maximum Effective Tax Rate for that Residential Property land use category.

Attachment C of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category.

Effective Tax Rate Evaluation Minimum Facilities Revenue As a result of the Effective Tax Rate Evaluation, if the calculated Total Effective Tax Rate is less than or equal to the Total Maximum Effective Tax Rate for a Residential Property land use category used in the Minimum Facilities Revenue calculation, the Developed Property Maximum Facilities Special Tax Rate for the applicable Residential Property land use category shall not be adjusted and the Effective Tax Rate Evaluation Developed Property Maximum Facilities Special Tax Rate will be assigned using the Developed Property Maximum Facilities Special Tax Rates set forth in Attachment B. Attachment D of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category and the Effective Tax Rate Evaluation Minimum Facilities Revenue.

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If the calculated Total Effective Tax Rate exceeds the Total Maximum Effective Tax Rate for a Residential Property land use category used in the Minimum Facilities Revenue calculation, the Effective Tax Rate Evaluation Developed Property Maximum Facilities Special Tax Rate will be assigned using the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates set forth in Attachment C. Attachment D of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category and the Effective Tax Rate Evaluation Minimum Facilities Revenue.

C.4. Future Assessor’s Parcel Changes – After an Effective Tax Rate Evaluation The Effective Tax Rate Evaluation Maximum Facilities Special Tax shall be assigned to all future Assessor’s Parcel(s) created from a subdivision, lot line adjustment, or merger of one or more Assessor’s Parcels so that the revised sum of the total Effective Tax Rate Evaluation Maximum Facilities Special Tax revenue is not less than the total Effective Tax Rate Evaluation Minimum Facilities Revenue set forth in Attachment D of this Rate and Method of Apportionment.

Undeveloped Property Subdividing into Large Lot Property When Undeveloped Property subdivides into Large Lot Property, the Effective Tax Rate Evaluation Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. The expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax for any Large Lot Property and any remaining Undeveloped Property shall be based upon the Planned Development for the Large Lot Property and remaining Undeveloped Property.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax generated by all of the Taxable Property is greater than or equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates for the Large Lot Property created from the Undeveloped Property subdivision.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is less than the Effective Tax Rate Evaluation Minimum Facilities Revenue, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall be uniformly increased, on the Large Lot Property created from the Undeveloped Property subdivision, until the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue. Further, if the sum of the total current Effective Tax Rate Evaluation Maximum Facilities Special Tax is less than the Effective Tax Rate Evaluation Minimum Facilities Revenue, the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates for the Large Lot Property and any remaining Undeveloped Property created from the Undeveloped Property subdivision shall be uniformly increased until the sum of the total current Effective Tax Rate Evaluation Maximum

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Facilities Special Tax is equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue.

Attachment D of this Rate and Method of Apportionment shall be updated to reflect any increases to the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates from the Undeveloped Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi-Family/Non-Residential Property.

Large Lot Property Subdividing into Small Lot Final Map Property and Permit Ready Multi- Family/Non-Residential Property
When Large Lot Property subdivides into Small Lot Final Map Property or Permit Ready Multi- Family/Non-Residential Property, the Effective Tax Rate Evaluation Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. If the Large Lot Property subdivision also creates Small Lot Final Map Remainder Property, the expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax for the Small Lot Final Map Remainder Property shall be based upon the Planned Development for the Small Lot Final Map Remainder Property. The expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax for any remaining Large Lot Property and Undeveloped Property shall be based upon the Planned Development of the Large Lot Property and the Undeveloped Property.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is greater than or equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates for the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi-Family/Non-Residential Property created from the Large Lot Property subdivision.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is less than the Effective Tax Rate Evaluation Minimum Facilities Revenue, and such difference is not eliminated by the partial prepayment of the Effective Tax Rate Evaluation Maximum Facilities Special Tax pursuant to Section L, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall be Proportionately increased, on the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi- Family/Non-Residential Property created from the Large Lot Property subdivision, until the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue. Attachment D of this Rate and Method of Apportionment shall be updated to reflect any increases to the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates from the Large Lot Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-

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Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi-Family/Non-Residential Property created prior to the Large Lot Property subdivision.

C.5. Method of Apportionment of Facilities Special Tax
Using the definitions and procedures described herein, the CFD No. 22A IA1 Administrator shall determine the Facilities Special Tax Requirement and levy the Facilities Special Tax until the amount of Facilities Special Taxes equals the Facilities Special Tax Requirement. The Facilities Special Tax shall be levied each Fiscal Year until the Transition Year as follows:

Prior to an Effective Tax Rate Evaluation
First: The Facilities Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Facilities Special Tax for Developed Property in order to satisfy the Facilities Special Tax Requirement.

Second: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Facilities Special Tax for Small Lot Final Map Property.

Third: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first two steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Permit Ready Multi-Family/Non-Residential Property at a rate up to 100% of the Maximum Facilities Special Tax for Permit Ready Multi-Family/Non- Residential Property.

Fourth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first three steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Large Lot Property at a rate up to 100% of the Maximum Facilities Special Tax for Large Lot Property.

Fifth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first four steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Maximum Facilities Special Tax for Undeveloped Property.

After an Effective Tax Rate Evaluation
First: The Facilities Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Developed Property in order to satisfy the Facilities Special Tax Requirement.

Second: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first step has been completed, the Facilities Special Tax

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shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Small Lot Final Map Property.

Third: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first two steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Permit Ready Multi-Family/Non-Residential Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Permit Ready Multi-Family/Non-Residential Property.

Fourth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first three steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Large Lot Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Large Lot Property.

Fifth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first four steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Undeveloped Property.

D. SERVICES SPECIAL TAX
A Services Special Tax shall be assigned to all Taxable Property within CFD No. 22A IA1 according to the Maximum Services Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment.

D.1. Prior to the Transition Event - Increase in the Maximum Services Special Tax Prior to the Transition Event, on each July 1, commencing on July 1, 2027, the Maximum Services Special Tax Rates in effect for the previous Fiscal Year shall be increased by the Services Special Tax Escalation Factor.

D.2. Prior to the Transition Event - Method of Apportionment of Services Special Tax If, in any Fiscal Year prior to the Transition Year, the Facilities Special Tax is levied against each Assessor’s Parcel of Taxable Property within CFD No. 22A IA1 and the Facilities Special Tax revenues generated are insufficient to pay the Facilities Special Tax Requirement, such shortfall shall be deemed a component of the Services Special Tax Requirement in that Fiscal Year, and proceeds from the levy of the Services Special Tax shall first be applied to mitigate the shortfall in the Facilities Special Tax Requirement before being used to pay for Authorized Services. The Services Special Tax revenue shall not be applied to any Facilities Special Tax Requirement shortfalls attributable to Pay As You Go Costs authorized to be financed by CFD No. 22A IA1.

Using the definitions and procedures described herein, the CFD No. 22A IA1 Administrator shall determine the Services Special Tax Requirement and levy the Services Special Tax until the amount of Services Special Tax equals the Services Special Tax Requirement. The Services Special Tax shall be levied each Fiscal Year as follows:

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First: The Services Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Services Special Tax for Developed Property in order to satisfy the Services Special Tax Requirement.

Second: If additional monies are needed to satisfy the Services Special Tax Requirement after the first step has been completed, the Services Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Services Special Tax for Small Lot Final Map Property in order to satisfy the Services Special Tax Requirement.

Third: If additional monies are needed to satisfy the Services Special Tax Requirement after the second step has been completed, the Services Special Tax shall be levied Proportionately on all Permit-Ready Multi-Family/Non-Residential Property, Large Lot Property, and Undeveloped Property at a rate up to 100% of the Maximum Services Special Tax for Permit-Ready Multi- Family/Non-Residential Property, Large Lot Property, and Undeveloped Property in order to satisfy the Services Special Tax Requirement.

E. TRANSITION SERVICES SPECIAL TAX
A Transition Services Special Tax shall be assigned to all Taxable Property within CFD No. 22A IA1 according to the Maximum Transition Services Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment.

E.1. After the Transition Event – Method of Apportionment of Transition Services Special Tax Using the definitions and procedures described herein, the CFD No. 22A IA1 Administrator shall determine the Transition Services Special Tax Requirement and levy the Transition Services Special Tax until the amount of Transition Services Special Tax equals the Transition Services Special Tax Requirement. The Transition Services Special Tax shall be levied each Fiscal Year as follows:

First: The Transition Services Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Transition Services Special Tax for Developed Property in order to satisfy the Transition Services Special Tax Requirement.

Second: If additional monies are needed to satisfy the Transition Services Special Tax Requirement after the first step has been completed, the Transition Services Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Transition Services Special Tax for Small Lot Final Map Property in order to satisfy the Transition Services Special Tax Requirement.

F. DELINQUENCIES
Notwithstanding the above, under no circumstances will the CFD No. 22A IA1 Facilities Special Tax levied against any Assessor’s Parcel of Developed Property classified as Residential Property, in any Fiscal Year, be increased as a consequence of the delinquency or default in the payment of the CFD No. 22A IA1 Facilities Special Taxes by the owner or owners of any other Taxable Property by more than ten percent (10%) above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.

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G. EXEMPTIONS
The CFD No. 22A IA1 Administrator shall classify the following as Exempt Property: Public Property, Property Owner Association Property, Open Space Property, and Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement.

The Maximum Facilities Special Tax obligation or, if applicable, the Effective Tax Rate Evaluation Maximum Facilities Special Tax obligation for Taxable Property which will be transferred or dedicated to a public agency and will be classified as Public Property may be fully prepaid by the seller, pursuant to Section L, prior to the transfer/dedication of such Taxable Property. Until the Maximum Facilities Special Tax obligation or, if applicable, the Effective Tax Rate Evaluation Maximum Facilities Special Tax obligation for any such Taxable Property is prepaid, the Taxable Property shall continue to be subject to the levy of the Facilities Special Tax. An exception to this may be made if an Assessor’s Parcel of Public Property, such as a school site, is relocated to an Assessor’s Parcel of Taxable Property, in which case the Assessor’s Parcel of previously Public Property becomes Taxable Property and the Assessor’s Parcel of previously Taxable Property becomes Public Property. This trading of an Assessor’s Parcel from Taxable Property to Public Property will be permitted to the extent there is no loss in Maximum Facilities Special Tax revenue or, if applicable, Effective Tax Rate Evaluation Maximum Facilities Special Tax revenue, and the transfer is agreed to by the owners of all Assessor’s Parcels involved in the transfer and the City Council.

If the use of an Assessor’s Parcel changes so that such Assessor’s Parcel is no longer eligible to be classified as one of the uses set forth in paragraph 1 of Section G. above that would make such Assessor’s Parcel eligible to continue to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the Special Tax.

No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property; however, pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcel that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Facilities Special Tax.

H. TRANSFERS
Prior to the issuance of the first series of Bonds within CFD No. 22A IA1, the City may permit the transfer of Maximum Facilities Special Tax or Effective Tax Rate Evaluation Maximum Facilities Special Tax from one Assessor’s Parcel to another Assessor’s Parcel. Before recordation of a Small Lot Final Subdivision Map, if a subdivision map is required, the City may permit a transfer if the number of planned Residential Units, Multi-Family Attached Property Acreage, or Non-Residential Property Acreage is transferred from one Assessor’s Parcel(s) to another Assessor’s Parcel(s) in any portion of Large Lot Property. The City may, in its sole discretion, allow for a transfer of the Maximum Facilities Special Tax or Effective Tax Rate Evaluation Maximum Facilities Special Tax from one Assessor’s Parcel to another Assessor’s Parcel provided such a transfer shall be allowed only if (1) all adjustments are

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agreed to in writing by the affected property owners and the City’s Finance Director, and (2) there is no reduction in the sum of the total Maximum Facilities Special Tax or sum of the total Effective Tax Rate Evaluation Maximum Facilities Special Tax as a result of the transfer. Should a transfer result in an amendment to Attachment B or, following an Effective Tax Rate Evaluation, Attachment D of this Rate and Method of Apportionment, the requesting property owner shall bear the costs to affect the transfer in the CFD No. 22A IA1 records and prepare the required amendments to Attachment B or, following an Effective Tax Rate Evaluation, Attachment D of this Rate and Method of Apportionment.

I. INTERPRETATIONS
The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the Rate and Method of Apportionment. In addition, the interpretation and application of any section of this document shall be at the City’s discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

J. REVIEW/APPEALS
The CFD No. 22A IA1 Administrator may establish such procedures, as it deems necessary to undertake the review of any such appeal. The CFD No. 22A IA1 Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any property owner appeals, as herein specified.

Any property owner may file a written appeal of the Special Tax with the CFD No. 22A IA1 Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The CFD No. 22A IA1 Administrator shall review the appeal, meet with the appellant if the CFD No. 22A IA1 Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD No. 22A IA1 Administrator’s decision relative to the appeal, the owner may file a written notice with the City Manager of the City appealing the amount of the Special Tax levied on such Assessor’s Parcel. If following such consultation and action (if any by the City Manager of the City), the property owner believes such error still exists, such person may file a written notice with the City Council appealing the amount of the Special Tax levied on such Assessor’s Parcel. The decision of the City shall be final and binding to all persons. If the decision of the CFD No. 22A IA1 Administrator or subsequent decision by the City Manager of the City or City Council requires the Special Taxes to be modified or changed in favor of the property owner, no cash refund shall be made for prior years’ Special Taxes, but an adjustment shall be made to credit future Special Taxes. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

K. MANNER OF COLLECTION

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 20
The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 22A IA1, may, at the sole discretion of the City, directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor’s Parcels of Taxable Property that are delinquent in the payment of Special Taxes.

L. PREPAYMENT IN PART OF FACILITIES SPECIAL TAX
The Facilities Special Tax obligation of an Assessor’s Parcel of Taxable Property may be partially prepaid as described herein; provided that there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of partial prepayment. An owner of an Assessor’s Parcel intending to partially prepay the Facilities Special Tax obligation shall provide the CFD No. 22A IA1 Administrator with written notice of intent to partially prepay. Within 30 days of receipt of such written notice, the CFD No. 22A IA1 Administrator shall notify such owner of the partial prepayment amount of such Assessor’s Parcel. Any partial prepayment must be submitted at least 60 days before the next occurring bond redemption date, and the proceeds of such prepayment shall be provided to the Trustee for application toward bond redemption in accordance with the Indenture. The CFD No. 22A IA1 Administrator may charge a fee for providing this service.

L.1. Partial Prepayment Amount
The Facilities Special Tax may be prepaid in an amount determined at the time of prepayment based on the portion of Bonds then outstanding; provided, however, that no partial prepayment shall be accepted in an amount equal to an annual Special Tax amount less than the annual Transition Services Special Tax rate escalated to the then current fiscal year less the then current Services Special Tax rate.

The “Partial Prepayment Amount” is calculated as follows:

Step 1: Determine the current Fiscal Year Maximum Facilities Special Tax for the Assessor’s Parcel based on the assignment of the Maximum Facilities Special Tax described in Section C above. If an Effective Tax Rate Evaluation has occurred, determine the current Fiscal Year Effective Tax Rate Evaluation Maximum Facilities Special Tax for the Assessor’s Parcel based on the assignment of the Effective Tax Rate Evaluation Maximum Facilities Special Tax described in Section C above.

If the Assessor’s Parcel is not already classified as Developed Property, the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) shall be assigned as though the Assessor’s Parcel was already designated as Developed Property.

Step 2: Calculate the annual revenue produced, by annually applying the Facilities Special Tax Escalation Factor, from the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) from the date of prepayment through the earlier of the end of the Facilities Special Tax Term or the Transition Event, except that this final date may be amended by the City no later than the time of the calculation of the prepayment. If the final date used in the prepayment calculation is amended by the City, this amended final date shall apply to any and all prepayment calculations from that point forward.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 21
Step 3: Calculate the present value of the Assessor’s Parcel’s annual Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) revenue stream determined in Step 2. The present value shall be calculated using a discount rate that earns a rate of interest that, when the prepayment is invested in City permitted and available investments, would produce annual revenues equal to the amounts calculated in Step 2.

If there are Outstanding Bonds at the time of the Partial Prepayment Amount calculation, the Partial Prepayment Amount shall be first allocated to the Redemption Amount. If the Partial Prepayment Amount is insufficient to fund the Redemption Amount, then the Partial Prepayment Amount shall be increased to equal the Redemption Amount.

The “Redemption Amount” is calculated as follows:

Step 1: Divide the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) computed pursuant to Step 1 of Section L.1 by the total Maximum Facilities Special Taxes (or total Effective Tax Rate Evaluation Maximum Facilities Special Taxes) for the entire CFD No. 22A IA1, based on the Maximum Facilities Special Taxes (or Effective Tax Rate Evaluation Maximum Facilities Special Taxes) that could be charged in the current Fiscal Year if all Taxable Property were designated as Developed Property, excluding any Assessor’s Parcels which have prepaid the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) obligation (the “Prepayment Quotient”).

Step 2: Multiply the Prepayment Quotient by the Outstanding Bonds to compute the amount of Outstanding Bonds to be redeemed (the “Bond Redemption Amount”).

Step 3: Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed.

Step 4: Compute the amount needed to pay interest on the Bond Redemption Amount from the first Bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds.

Step 5: Determine that portion of Facilities Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year to satisfy the Facilities Special Tax Requirement, which have not yet been paid.

Step 6: A reserve fund credit shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture for the Bonds), if any, associated with the redemption of Outstanding Bonds as a result of the partial prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture for the Bonds) in effect after the redemption of Outstanding Bonds as a result of the partial prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. Such reserve fund credit will not decrease the balance in the reserve fund below the new reserve requirement.

Step 7: If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a